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Home My WebLink AboutSubmittal-GESEPage I of 2 Elena Valdes � From: Sandra E|anbmrg[sandra@gese.org] Sent: Wednesday, September 15.3O1U11:38PK1 To: chho@Qeoe.org;'kruzvvone';Elena Valdes; Oscar Alvarez; Edgard Hernandez; 'Irma Ga|dana'; rnaha@gase.org; enhque@geee.org «� Subject: FW: D8.1G.1OAdditional estimated fees FY2O11due tuplan changes �Y| From: Jose Fernandez [nailto:]oseF@cau/naccmnsu|Ung.conm] Sent: Wednesday, September 15, 2010 10:08 PM To: sandsa@gese.org --~� Cc: Kath|Caspar " Subject: 09'16'10 Additional estimated fees FY 2011 due to plan changes Sandra, Asrequested, vveare writing toprovide afee estimate for fiscal year 2OIO/2U1Ifor our services in connection with the plan changes to the General Employees' and Sanitation Employees' Retirement Trust (GESE). We expect we will be providing special services to: a Revise the October 1, 2009 actuarial valuation report to reflect the impact of the plan changes on the City contribution to GESE for fiscal year 2011. Reflect the plan changes in the October 1, 2010 actuarial valuation of the plan. Assist in the administration of the revised benefits, including interpretation of plan changes, and explanation and preparation of examples of calculation of benefits under the new provisions. Assist in the development and review of changes to the pension software for compliance with the revised benefits. ° Develop worksheet to calculate new benefits to prepare manual calculation of benefits while the pension software iSupdated. • Develop new actuarial equivalent factors for early retirement benefits, optional allowances and service purchase. VVeestimate our fees to provide these services will beapproximately $lSO,O0O. Please understand that at this time it is difficult to predict the scope of services the Retirement Trust will be asking us to provide. Therefore, the actual cost may differ. Let me know if you have any questions. Thank you. Jose 1. Fernandez Principal and Consulting Actuary Cavanaugh Macdonald Consulting, LLC 3550BusbeeParkway, Suite 2SO Kennesaw, GA 30144 Direct 678.388.1718 Cell 678.983.0903 P/27/20I0 NT01' r. RKORD FOR � ON �l Change Request Form I REQUEST FOR CHANGE (This section to be completed by Requester.) I 9/15/10 Miami GESE Annie Kok-enge 305-441-2300 U;lk Description of Change: (If additional space is required, provide a separate attachment) Based on the information provided to LRS in a conference call on 9/16/2010 and based on the information in the attached City of Miami Ordinance, File Number: 10-01093, LRS is providing Miami GESE with a Phase -I estimate for a solution that will address the required changes. This Phase I estimate covers the possible changes that will need to be made for the Miami GESE Fund, This estimate does not cover any changes for the GESE Staff Fund, as it is LRS's understanding that N these new legislative changes do not apply to the GESE Staff Fund. IN I Specific Business Requirements: PHASE I — REQUIREMENTS ANALYSIS Requirements Analysis Time Estimate (This Section to be completed by LRS.) 9/15/2010 - --S—hiela Hemb—erger 9/16/2010 swam AN 4*0 Requirements Analysis Approval (This Section to be filled out by Requester) Authorization is required to proceed with requirements analysis (Phase 1). Phase I will result in a description of a proposed solution and a price to implement the proposed solution (Phase 11). The Ball Park Estimate for Phase If Coding/Testing is an estimate only. The actual price to implement the proposed solution is provided with the Phase 11 solution description. Phase I will be invoiced upon delivery of the completed Phase It solution description. Signature below indicates you have read the Requirements Analysis Approval and agree to pay for the Requirements Analysis cost, LRS Proposed Solution (This Section to be completed by LRS.) Confidential (DI-evi, Ray & Shoup Inc, 1998 Effective Date/Time of SR/CR: 9/16/2010 10:18:00 PM This SR/CR supercedes all previous SR/CRs submitted under this SR/CR Number. SRTPR N> m Page I of 2 ;0 Change Request Form LRS Response/Solution: (If additional space is required, provide a separate attachment) Coding/Testing Cost: Maintenance Fee / Maintenance Fee Basis Impact: Flyes, this change request will affect the maintenance fee No, the change request will not affect the maintenance fee - This CR is valid for 30 days from date submitted to client. After 30 days, if the client still wishes to pursue this change, the client must submit a new CR. It is important to note that previously completed requirements analysis for expired CRs may need to be reviewed due to time delay, resource availability, and/or changes to the client's current version of PG and therefore a change in CR cost may occur. CR Expiration Date: Begin Work Date (Not to Exceed CR Expiration Date): Proposed Solution Approval (This Section to be completed by Requester and LRS.) Approval Signatures Client Signature/Date: LRS Signature/Date: Submitted Into the pub record I connection with item di—/on 5? -27-10 Priscilla A. Th --o--- mpson City Clerk Confidential 01-evi, Ray & Shoup Inc, 1998 Page 2 oft Effective Date/Time of SR/CR: 9/16/2010 10:18:00 PM This SR/CR supercedes all previous SR/CRs submitted under this SR/CR Number. Change Request Form REQUEST FOR CHANGE (This section to be completed by Requester;) 7129/201 Micunr GEESE � � Annie Kokenge � 305441-2300 �( Description of Change: The City of Miami may be changing the Rule of 70 Retirement to a Rule of 64 for Miami GESS Fund only, effective immediately. Anyone who is eligible for the Rule of 64 and wants to take this benefit must do so by 9/30/2010. The Rule of 64 will have ALL the same set up that Rale of 70 Retirement Benefit has now except this new benefit will NOT be eligible for DROP benefit and member's age plus service will equal 64 instead of 70. The people that are eligible for this new benefit type must retire with an effective date on or before 9/30/2010. Anybody retiring after that will fall back under the Rule of 70 Benefit. Annie doesn't care about seeing the Rule of 64 Date on the estimator screen and benefit estimate worksheet since this is a temporary benefit offering. She said it was okay to still see the Rule of 70 Date in these areas or any other area that Rule of 70 is displayed like the Member Statement. Annie stated this new benefit would have the same benefit calc of 3% * FAS * yrs of service. Annie stated that Option 6c payment option has a form factor of 1 and that this is their "normal" form. All payments options will be the same as Rule of 70. Same FAS calc rules should be used with the cutoff date of 1984 to determine who gets High 12 and who gets High 24, r This new benefit type is also eligible for Excess Benefit. Specific Business Requirements: PHASE I — UY, TI. VA ? Requirements Analysis Time Estimate (This Section to be completed by LRS.) 7/29/2010 Shiela Hemberger 8/4/2010 CR43459 SR#:1-128170316 Date Received ', Responded By Response Date SRICR Number 30 $165.00 S4, 950.00 - - � i 1, 550.00 flours for Analysis,= Rate Phase I Total Analysis Cast Ball Park Estimate for Phase U CodinglTesting" Requirements Analysis Approval (This Section to be filled out by Requester) Authorization is required to proceed with requirements analysis (Phase I)_ Phase I will result in a description of a proposed solution and a price to implement the proposed solution (Phase TI). The Ball Park Estimate for Phase 11 CodinglTesting is an estimate only. The actual price to implement the proposed solution is provided with the Phase II solution description_ Phase I will be invoiced upon delivery of the completed Phase 11 solution description_ Signature below indicates you have read the Requirements Analysis Approval and agree to pay for the Requirements Analysis cost_ Date Received Client Diate Received Confidential OLetii, Ray & Shoup Inc, 1998 Effective Date/Time of SR/CR: 8/412010 5:37:00 PM This SR/CR supersedes all previous SR/CRs submitted under this SR/CR Number. Page I of 2 Change Request Form I PHASE H —SOLUTION LRS Proposed Solution (This Section to be completed by LRS.) ----------- - - . .... St Response/Solution: (If additional space is required, provide a separate attachment) CodingtTesting Cost: Maintenance Fee I Maintenance Fee Basis Impact: [DYes, this change request will of the maintenance fee No, the change request will not affect the maintenance fee This CR is vaWfor 30 days from date submitted to client After 30 days, ifthe client still wishes topursue this change, the client Hurst submit anew CR It is important to note that previously completed requirements analysis for expired CRs may need to he reviewed due to time delay, resource availability, andlor changes to the client's current version of PG and therefore a chanre in CR cost may occur. I CR Expiration Date. Begin Work Date (Not to Exceed CR Expiration Date): Proposed Solution Approval (This Section to be completed by Requester and LRS.) Approval Signatures Client Signature/Date: LRS Signature/Date: Submitted Into the public record in connection with item '3k,lf one -Z7-10 Priscilla A. Thompson City Cie* Confidential (DLevi, Pay & Shoup Inc, 1998 Page 2 of 2 Effective Date/Time of SR/CR: 8/4/2010 5:37:00 PM This SR/CR supercedes all previous SR/CRs submitted under this SR/CR Number. rage i ot 1 From: Jose Fernandez PoseF@cavmacconsulting.coml Sent: Monday, August 16, 2010 4:06 PM To: sandra@gese.org; enrique@gese.org Subject: July invoices Attachments: 07.14.10 Freezing Miami GESE (20.9 KB); 07.14.10 Miami. GESE alternatives (45.5 KB); rule of 64 (42.0 KB); 07. 18. 10 Updated GESE study results (23.3 KB); Contribution implications of GESE Plan Freeze (25.5 KB); 07.27.10 Updated GESE study results (27.2 KB); GESE Pension reform (28.5 KB); GESE pension reform (17.7 KB); 07-31-10 Miami GESE.pdf, 07-31-10 Miami GESE— Excess.pdf Sandra and Enrique, Attached are the invoices for services in July. This month the bill includes an unusually large amount due to the work we have been doing on behalf of GESE with respect to the plan changes under study. For your reference, I have attached copies of the many studies we have prepared since you may not have seen them. Thank you, and let me know if you have any questions. Jose 1. Fernandez Principal and Consulting Actuary Cavanaugh Macdonald Consulting, LLC 3550 Busbee Parkway, Suite 250 Kennesaw, GA 30144 Direct 678.388.1718 Cell 678.983.0903 Fax 678.388.1730 J oseF(a)Ca vM acConsulting.com www.CovMacConsulting.com Confidentiality Notice This e-mail, including attachments, is intended only for the use of the individual or entity to which it is addressed and may contain confidential information that is legally privileged and exempt from disclosure under applicable low. If the reader of this message Is not the intended recipient, you are notified that any review, use, disclosure, distribution or copying of the communication is strictly prohibited. If you have received this communication in error, please contact the sender by reply e-mail and destroy all copies of the original message. 9/14/2010 Submitted Into thepap, record in connection vA item on Priscilla A. Thompsm City Cledc Cavanaugh Macdonald Z�0-1 CONSULTING, LLC 77rc experience and dedication You deserve 41W Ms- Sandra Elenberg Pension Administrator City of Miami GESE Ret System 2901 Bridgeport Avenue Coconut Grove, FL 33133-3607 Services Rendered Date Invoice # 7/31/2010 4243 Department Miami (FL) GESE Billing Period: July 2010 Monthly retainer fee for actuarial consulting services for Miami GESE Retirement Trust in accordance with professional services agreement Payment due upon receipt. Payment you for your business! TAX ID #: 61-1489078 Amount Total 339-Y, Please include your invoice number on your check. ) Submitted lnt6the.pUft- Page 1 record in conne 'r2 1-% item. 614- Lon -Z Priscilla A. Thompson City Clerk Cavanaugh Macdonald CONSULTING, LLC The experience and dedication you deserve 2W. Ms. Sandra Elenberg Pension Administrator City of Miami GESS Ret System 2901 Bridgeport Avenue Coconut Grove, FL 33133-3607 Services Rendered Departrneryt I Miami (FL) GESS Billing Period: July 2010 Consulting services in connection with alternatives for GESE plan, including discussions with Charlie Cox and Ron Cohen, work with City actuary to reconcile regular valuation results and work on cost studies of alternatives, including estimate of impact of freezing plan, submitted July 14, preparation of cost studies of 8 alternatives for current members and 8 alternatives for new hires, submitted July 15, estimated impact of Rule of 64 benefits, submitted July 19, new alternatives with graded multipliers for current members and new hires, submitted July 19, calculation of impact of freezing current plan and setting up new defined contribution plan for current members and new hires, submitted July 21, preparation of cost impact of 9 alternative plan changes for current members, results submitted July 27, preparation of cost impact of 2 new alternative plan changes for current members, results submitted July 27, preparation of cost savings for revised alternative, results submitted July 28, preparation for and attendance at meeting on July 28 to discuss various alternatives and proposals Payment due upon receipt. Thank phank you for your business! TAX ID #: 61-1489078 MM7 Date Invoice # 7/31/2010 4243 Amount 63,112.00 Please include your invoice number on your check. 2 Submitted Into the pub Pagelic record in conrwdon with item OR 1 -Y-07-lo Priscilla A. Thompson -A�40 City Clerk Cavanaugh Macdonald CONSULTING, LLC The experience and dedication Yov desenv RM Ms. Sandra Elenberg Pension Administrator City of Miami GESE Ret System 2901 Bridgeport Avenue Coconut Grove, FL 33133-3607 Billing Period: July 2010 Date Invoice # 7/31/2010 4243 I Services Rendered I Amount I Services in connection with preparation of benefit calculation worksheet for Ride of 64, submitted July 23 Consulting services in connection with legal and administrative issues in relation to setting -up excess benefit plan under Staff Pension Plan Payment due upon receipt. Thank you for your business! TAX ID #: 61-1489078 Total 1,692.00 358,50 Please include your invoice number on your check. Page 3 Submitted Into the PuW record in connection% ft'' Item fbH-11 on F Priscilla A. Thompson Cit, Clerk Cavanaugh Macdonald CONSULTING, LLC The experience and dedhation'vou deserve Bill TO Ms. Sandra Elenberg Pension Administrator City of Miami GESE Ret System 2901 Bridgeport Avenue Coconut Grove, FL 33133-3607 Services Rendered Date Invoice # 8/31/2010 4512 Department] Miami (FL) GESE Billing Period: August 2010 Monthly retainer fee for actuarial consulting services for Miami GESE Retirement Trust in accordance with professional services agreement Consulting services in connection with alternatives for GESE plan, including discussions with Charlie Cox and Ron Cohen, work with City actuary on cost studies of alternatives, including estimate of cost of alternative submitted August 10, and five-year projected costs, submitted August 10, work on preliminary impact statement based on our understanding of changes agreed to by the City and the unions, work on estimated impact of Rule of 64 benefits, including potential savings to City, submitted August 10, and analysis of City Commission meeting and actions on August 31 Services in connection with preparation of actuarial impact statement for Rule of 64 "Is Payment due upon receipt. Yin -Marik you for your business! Thank [:T:hnk TAX ID 4: 61-1489078 Amount 8,949.00 2,016.00 Please include your invoice number on your check. Page 1 Submilted Into the pubHo' record in connection w.dh on Priscilla • City Clerk I CavanauLyh Macdonald cl� CQ N S U LTI N G, LCC The experience and dedication You deserve Bill To Ms. Sandra Elenberg Pension Administrator City of Miami GESE Ret System 2901 Bridgeport Avenue Coconut Grove, FL 33133-3607 Services Rendered Date Invoice 8/31/2010 4512 Department I Miami (FL) GESE Billing Period: August 2010 Amount Consulting services in connection with legal and administrative issues in relation to DROP under Staff Pension Plan, including review of application and investment forms and plan information summary, comments submitted August 7, review of question with respect to 10% penalty on early distributions, review of lCMA material, comments submitted August 16 and review of DROP language, comments submitted August 16 Services in connection with City's audit of GESE, including review of Memorandum of Understanding, discussions and comments submitted August 9 Payment due upon receipt, Thank you for your business! TAX ID R: 61-1489078 Total 1,980.00 630.00 Please include your invoice number on your check. Page 2 Submitted Into the public record in connection with item D -H- _!/on 9-Z 2-10 Priscilla A. Thompson City Clerk Cavanaugh Macdonald Cavanaugh CONSULTING, LLC The experience and dedicai ion You deserve am Ms. Sandra Elenberg Pension Administrator City of MiarW'GESE Ret System 2901 Bridgeport Avenue Coconut Grove, FL 33133-3607 Services Rendered Date Invoice # 8/31/2010 4512 Departmerrt Miami (FL) GESE Billing Period: August 2010 Consulting services in connection with service purchase calculations for Mary De La Fuente and Luz Garcia, including review of prior calculations and calculation of purchase amounts to buy back different service periods for Ms. De La Fuente under revised payment schedule, comments and results submitted August 11, 12 and 23, and calculation for Ms. Garcia of purchase amount required to qualify for Rule of 70 under two alternative retirement dates, comments and results submitted August 25 IN Payment due upon receipt. Thankyoufor your business! TAX ID #: 61-1489078 Amount 1,950.00 $21,358.33 Please include your invoice ce number on your check. Page 3 Submitted Int6 the public record in -conn o ' n item I I onc� 15r'iscilla A. Th-ompson City Clerk