History Current Plan Status Benefit Enhancement Project.
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Transcript of History Current Plan Status Benefit Enhancement Project.
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Finance DepartmentChristopher M. Quinn, Finance Director, MACC, CPA, CFE, CGFO, CGMAGinger Norberg, Accounti ng Technician IISeptember 10, 2013
City of Palm Coast Volunteer Firefighter’s pension plan share plan project
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• History
• Current Plan Status
• Benefit Enhancement Project
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History
• July 2, 2002 City Council Levies Property Insurance Premium Tax of 1.85% on Insurance Companies, Ordinance Number 2002-15– State restricted for funding of pension benefits
for Firefighters
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History
• February 15, 2005 City Council established City of Palm Coast Volunteer Firefighters Pension Plan (Defined Benefit Plan), Ordinance 2005-08– Established Board of Trustees (5)
2 appointed by Council2 appointed by Volunteers1 appointed by other four
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History
• Ordinance 2005-08 (Continued)– Established Retirement Qualifications - LOSAP
(Length of Service Award Pension Program)– Benefit Amount - $35 per year of credited
service– Establish Pension Eligibility
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LENGTH OF SERVICE AWARD PENSION PROGRAM (LOSAP)
• POINTS ISSUED FOR THE FOLLOWING ACTIVITIESResponse to Paged Calls (25%)Attendance at Drills (50%)Attend Business Meetings (8 Minimum)Position, Activity, Etc. points (50)
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History
• March 3, 2009 City Council revised the City of Palm Coast Volunteer Firefighters Pension Plan, Ordinance 2009-04– Increased benefit amount from $35.00 to $50.00
per year of credited service.
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History
• October 18, 2011 City Council revised the City of Palm Coast Volunteer Firefighters Pension Plan, Ordinance 2011-18– Increased benefit amount from $50.00 to $65.00
per year of credited service
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Received During Fiscal Year
Amount Increase from Previous Year
2003 14,328.55 -
2004 62,129.98 333.6%
2005 96,546.34 55.4%
2006 128,816.42 33.4%
2007 242,231.00 88.0%
2008 380,757.00 57.2%
2009 499,181.00 31.1%
2010 339,246.90 -32.0%
2011 359,373.51 5.9%
2012 377,962.48 5.2%
2013 *236,585.58 *
HISTORY OF PREMIUM TAX RECEIPTS
*partial payment received for FY 2013
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Current Plan Status
Annual Amount from State Tax Collections
($350,000-$400,000)
Current Benefits($144,000)
Reserve for Benefit Improvements
($206,000-$256,000)
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Plan Funding Status
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Funded Ratio
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Required Contributions
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Reserve for Benefit Improvements
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Benefit Enhancement Project
• Goals
No increased potential liability to the City Comply with IRS RegulationsComply with State Pension StatutesTake Advantage of benefit improvement reserve
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Benefit Enhancement Project
• Share Plan ConceptProvide additional amount above current defined
benefit plan ($65.00 per month)Recommendation annually to City Council by
Pension Board to distribute a portion of the benefit enhancement reserve (if any)
Both current volunteers and retirees participateMitigate accumulation of benefit improvement
reserveNo effect on potential City liability
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Benefit Enhancement Project
• Volunteer Firefighter Pension Plan Ordinance
Update to include share plan componentUpdate for IRS compliance
Submit to IRS for Private Letter RulingUpdate for changes in State statutes
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Next Steps
• Apply to IRS for Private Letter Ruling– 9 to 12 month review period
• Present revised Ordinance to City Council for consideration once Private Letter Ruling received
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Questions?