Fort Walton Beach Council agenda — 04-26-11 regular — reading text

prior to 12/ 11/ 79 receive Credited Service for each full and fractional year of military service up to two years.  APPENDIX A -2 5. Vesting: ( 1) For City Manager, Finance Director or Department Heads, including Chief of Police: Years of Credited Service as a Charter Officer or Vested Department Head Percentage 1 20% 2 40% 3 60% 4 80% 5 100% Years of Credited Service other than as a Charter Officer or Department Head: 10% per year. 2) All other employees: 100% after 10 years of Credited Service. N Compensation: Basic monthly earnings calculated on the basic rate of pay, exclusive of all overtime pay, bonuses, commissions and extra or additional remuneration. 7 Final Average Monthly Earnings: One -twelfth of the average of an Employee' s Compensation for the five best years of the last 15 years of employment. Accrued Benefit: ( 1) For Employees retiring on or before April 5, 1999, a monthly benefit payable for life, starting at the Normal Retirement Date, equal to 2. 50% of Final Average Monthly Earnings times Credited Service, but no greater than 100% of current Compensation. 2) For Employees who are 100% vested as of April 5, 1999, and retire after April 5, 1999, a monthly benefit payable for life starting at the Normal Retirement Date, equal to their choice of: 0 Con_. __.  APPENDIX A -3 a) 2. 75% of Final Average Monthly Earnings times Credited Service, but not greater than 75% of current Compensation, or b) 2. 50% of Final Average Monthly Earnings times Credited Service, but not greater than 100% of current Compensation. 3) For Employees who are less than 100% vested as of April 5, 1999, and retire after April 5, 1999, a monthly benefit payable for life starting at the Normal Retirement Date equal to 2. 75% of Final Average Monthly Earnings times Credited Service, but not greater than 75% of Compensation. 7 Normal Retirement: Eligibility Date - Age 62 and attainment of 100% vesting. Benefit - Accrued Benefit payable as of the Normal Retirement Date. 10 Early Retirement: Age 52 and 10 years of Eligibility Date - Credited Service. Benefit - Accrued Benefit payable as of the Early Retirement Date, reduced by 0. 25% for each month by which the Early Retirement Date precedes the Normal Retirement Date. 11 1999 Early Retirement Incentive: Age 52 and 25 years of Eligibility Date - Credited Service as of December 1, 1998, upon written election submitted on or before April 5, 1999, to retire within 12 months following election. Benefit - A monthly benefit payable for life starting at retirement, equal to 2. 75% of Final Average Monthly Earnings times Credited Service, but not greater than 100% of Final Average Monthly Earnings.  APPENDIX A -4 12. 2005 Early Retirement Incentive: Eligibility Date - Age 52 and 25 years of Credited Service as of September 1, 2005, upon written election submitted within 15 days following June 14, 2005, to retire within 12 months following election. Benefit - A monthly benefit payable for life starting at retirement, equal to 2. 75% of Final Average Monthly Earnings times Credited Service, but not greater than 100% of Final Average Monthly Earnings. 13. Disability Benefit: Accrued Benefit as of the date of disability, subject to the following minimum benefits: Line -of -Duty Disability - for all Employees, 50% of current Compensation. Not -in- Line -of -Duty Disability - for vested Employees only, 40% of current Compensation. Disability benefits are not subject to the cost -of- living increases. Disability benefits terminate on the earliest of i) death; ( ii) cessation of disability; ( iii) the normal retirement date ( age 65 for employees who became disabled at age 60 or less, and five years after disablement for employees who became disabled after age 60). 14. Deferred Retirement: Eligibility Date - After the Normal Retirement Date. Benefit - Accrued Benefit at Deferred Retirement Date. 15. Death Benefit before Retirement: If an Employee with two or more years of Credited Service should die before retirement, the beneficiary shall be entitled to 50% of the benefit the Employee would have received had  APPENDIX A - 5 he( she) survived to the Normal Retirement Date, based on current Compensation at the date of death. For an Employee with less than two years of Credited Service, the benefit shall be a refund of the Employee' s contributions with interest. 16 Death Benefit after Retirement: Subject to the terms of the optional benefit form (if any) elected. 17 Termination Benefit: A terminating Employee with less than 100% vesting will receive a refund of contributions with interest compounded at 3% on the balance at the just previous September 30 to the date of termination and contributions made after the just previous September 30 without interest. A terminating Employee with 100% vesting may elect to receive the lump -sum refund of contributions with interest as described above or to receive the Accrued Benefit as of the termination date payable at the Normal Retirement Date. IM Cost -of-Living Adjustment: Adjustment on April 1 of each year of up to 3% for all retirees. If the Consumer Price Index for December of the preceding year is less than 3 %, the cost -of-living adjustment will be reduced accordingly, but not less than zero. The cost -of-living adjustment does not apply to disability benefits. 19 Normal (Unreduced) Form of Payment: Life annuity.  APPENDIX B -1 CITY OF FORT WALTON BEACH GENERAL EMPLOYEES' RETIREMENT FUND ACTUARIAL ASSUMPTIONS AND ACTUARIAL COST METHOD SUMMARY Actuarial Assumptions 1. Investment Return: 7. 9% per annum, compounded annually. 2 AZe Rate Salary Increase Rate: 24 and under 6. 5% 25- 34 5. 5 35- 44 4.5 45- 54 3. 5 55 and over 3.5 For fiscal year end 2011 and fiscal year end 2012, assumed increase in salaries is limited to 0 %. 3. Mortality Rates: RP -2000 Static Mortality Table Probability of Death Within One Year After Attaining Age Shown A&e Male Female 25 0. 04% 0. 02% 35