HomeMy WebLinkAboutOrdinance 7855 ORDINANCE NO.
AN ORDINANCE APPROPRIATING REVENUE OF THE CITY'
OF THE SUM OF $11, 700 FROM THE FUND BALANCE OF
THE GENERAL FUND TO THE RETIREMENT ADMINISTRATION
(13-90-00) TO FUND A PROFESSIONAL SERVICE AGREE-
MENT TO PERFORM SPECIFIED ACTUARIAL STUDIES ;
PROVIDING A SEVERABILITY CLAUSE; MAKING THIS
ORDINANCE CUMULATIVE OF PRIOR APPROPRIATION
ORDINANCES ; REPEALING ORDINANCES IN CONFLICT
HEREWITH; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS :
SECTION 1.
That the City Manager of the City of Fart Worth shall be
provided with such revenue as may be secured from various sources
included in Ordinance No. 7787 and in the Budget of the City Manager;
and in addition thereto there is appropriated $11, 700 from the Fund
Balance of the General Fund to the Retirement Administration
(13-90-00) for the purpose of funding an authorized professional
service agreement to perform specified actuarial studies .
SECTION 2 .
Should any part, portion, section or part of a section of
this ordinance be declared invalid or inoperative or void for any
reason by a court of competent jurisdiction, such decision, opinion
or judgment shall in no way affect the remaining portions, parts,
sections or parts of sections of this ordinance, which provisions
shall be, remain and continue to be in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance
No. 7787, but all other ordinances and appropriations for which
provision has been heretofore made are hereby expressly repealed
if in conflict with the provisions of this ordinance.
SECTION 4.
That this ordinance shall take effect and be in full
force and effect from and after the date of its passage,
and it is so ordained.
APPROVED AS TO FORM AND LEGALITY:
. P.4��� 1. . 1 .4
Clty Attorney
ADOPTED: I
EFFECTIVE: 1 ,..) - 16 -_,e
City ®j, 1 ort Worth, Texas
Mayor and Council Communication
DATE REFERENCE SUBJECT: Proposed Actuarial Feasibility PAGE
NUMBER
:21,15/ 78Study for The Employees' Retirement 2
C-44 ,5 Fund i of
Presently the City has a contract with the actuarial consulting firm of A, S,
rIa.r.sen, lnc, The Hansen firm and its predecessor companies have provided annual
1._tus_ yal valuations since the inception of the Employees' Retirement Fund,
T"ese consultants have also performed special studies of the Fund from time to
t.rme:
Tvc Employee groups, the Police Officers Association and the Fire Fighters
Association, have requested that the Board of Trustees solicit a proposal from
a firm other than A. S. Hansen, Inc. , to undertake a special study of actuarial
costs of certain proposed additional benefits from the Fund and a general
actuarial review of the Fund,
The areas of cost to be studied are as follows:
1 - To p&rmit retirement at any age with 25 years of service.
To permit retirement at age 55 with 25 years of service without
penalty,
'. To grant a 6% cost-of-living increase to Che pensions of retired
employees and their beneficiaries (Presently 2%) ,
4. Increase the factor used in computing pensions from 1 5/6%
to 2 '„
5, To allow recipients of disability pensions to work at any
occupation and earn up to the amount they earned as active
employees.
The actuarial firm of Gabriel, Roeder, Smith and Company, Detroit, Michigan,
Proposes to perform these cost studies for a fee not to exceed $11,700,
The proposed study is comprised of the following parts and their indicated
costs
Part One, Review the 1970-74 expei:tenc.e study and the September 30, 1977,
actuarial valuation. The review would cover:
utilized for the experience study, (i_,,� W) data and methodology
W)
of the -results of the
e :p'e%r once study to the financial assumptions recommended, (iii) data and
e",,-Lo dology utilized for the valuation, and (iv) cc?nment.s on th results of
�l.le experience study and actuarial valuation, Pari One would be based on the
retained actuary's 1written reports, supplemented by required additional material
and discussicn.s� Part One is the least work that can be done and termed an
actuacial review, No valuation cr experi ence computations are made and the
effect of alternative f nauciai assumptions and/or methods is indicated
qual'.L'La ively qui" not quantitatively, Ccs-, $C ,400,
F
DATE REFERENCE SUBJECT: Proposed Actuarial Feasibility PAGE
NUMBER Study for The Employees' Retirement 2 of 2
12/5/78 C-4435 Fund
Part Two. Actuarial valuation of the contribution requirements associated with
the benefit structure, using alternative combinations of financial assumptions
and methods, including, particularly, future investment returns and pay increases
This valuation work will be done using the same people data used for the most
recent annual actuarial valuation by the retained actuary.
Part Two completes the review begun by Part One and supplies quantitative results
Cost $3,500,
.'a-rt Three, Proposal for Actuarial Valuation of Benefit Changes,
Included in this proposal is the determination of contribution requirements
and the incremental change in past service liabilities associated with each
separate benefit change. Valuations would be made using present financial
assumptions, Comments on the effect of alternative financial assumptions and
methods would be indicated qualitatively. Valuations would be made using the
same people data used for the most recent annual actuarial valuation.
Cost $3,800,
As soon as significant results of the review are obtained, the actuary will
meet with the Board of Trustees to discuss the results in advance of a formal
report, The consultants would be required to meet with the Board following
submission of the report.
The Board of Trustees, Employees' Retirement Fund, has voted to recommend to
the Council that it appropriate $11,700 for the operating budget of the Retire-
ment Fund and to enter into a professional services agreement with Gabriel,
Roeder, Smith and Company to perform the studies outlined above.
Recommendation
It is recommended that the City Council:
1. Adopt an Appropriation Ordinance providing for the transfer
of $11,700 from the Fund Balance of the General Fund to
Retirement Administration (13-90-00) ; and
2, Authorize the City Manager to enter into a professional
service agreement with Gabriel, Roeder, Smith and Company
to perform the studies specified in Parts 1, 2 and 3 above.
RLH:ms
SUB D BY: DISPOSITION BY COUNCIL: PROCESSED BY
�PPROVED El OTHER (DESCRIBE) _
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CITY SECRETARY
` DATE
CITY M AGER