HomeMy WebLinkAboutActuarial Impact StatementNovember 3, 2015
Board of Trustees
City of Miami Fire Fighters' and
Police Officers' Retirement Trust
c/o Dania Orta, Administrator (dania@miamifipo.org)
1895 SW 3 Avenue
Miami, FL 33129-1456
Actuarial Impact Statement
Re-employment and In -Service Distributions
(as proposed)
Dear Board Members:
Section 112.63(3) of the Florida Statutes specifies that an Actuarial Impact Statement is to be issued
before a change to retirement benefits is adopted, and that a copy of such statement is to be
forwarded to the Division of Retirement.
The purpose of this letter is to provide an Actuarial Impact Statement, summarizing the results of cost
calculations as of October 1, 2014 for the 2015/2016 Fiscal Year. This Actuarial Impact Statement
reflects the following proposed changes:
Allowing beneficiaries re-employed by the City to receive in-service distributions from the City
of Miami Firefighters' and Police Officers' Retirement Trust, provided:
(i)
(
The in-service distribution complies with Internal Revenue Code requirements, Treasury
regulations, and Internal Revenue Service guidance with respect to in-service distributions,
and
i) The re-employed individual is not employed by the City in the capacity of a police officer
or fire fighter, whether on a full-time or part -tune basis.
There is no immediate or long-term actuarial cost impact of these changes. The proposed wording
adds clarification to the existing administrative practice and allows for automatic compliance to
future IRS and Treasury interpretations and guidance regarding in-service distributions.
The cost calculations are based on the actuarial valuation data as of September 30, 2014. The actuarial
assumptions used are those used in the October 1, 2014 valuation.
2000 RlverEdge Parkway
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www.nyhart,com
An Alliance Benefit Group Licensee
Board of Trustees
City of Miami Fire Fighters' and
Police Officers' Retirement Trust
c/o Dania Orta, Administrator (dania@Iniamifipo.org)
Re: Actuarial Impact Statement (as proposed)
November 3, 2015
Page 2
nyher
None of these changes are benefit improvements mandated by Chapter 99-1 of the Florida Statutes.
In our opinion these changes are in compliance with Section 14, Article X of the State Constitution
and with Section 112.64 of the Florida Statutes.
If there are any questions, or we may help further, please let us know.
Respectively Submitted,
THE NYHART COMPANY, INC.
'*A 71,2„,LL
David D. Harris, ASA, FCA, MAAA, EA
Heath W. Merlak, FSA, FCA, MAAA, EA
Actuary Actuary
DDH/HM/di
501801/740
Attachment
Copy: Tom Gabriel (tomgabe@comcast.net)
Steven H. Cypen, Esq. (scypen@cypen.com)
Q:\DB Dept\DB Clients\050 Atlanta\5018-01 Miami FIPO\Actuarial Impact Statement\2015\Actuarial Impact Statement (Re-
employment and In -Service Distributions) (as proposed) (2015-11-03),docx
nyhart
ATTACHMENT
City of Miami Fire Fighters' and Police Officers' Retirement Trust
Proposed Ordinance Language
Section 40-203
(1)
(4) Notwithstanding any other provision of this Chapter to the contrary, beneficiaries re-employed
by the City shall be permitted to receive an in-service distribution from the System provided they
meet the provisions of this paragraph and provided that the in-service distribution complies with
the applicable requirements of the Internal Revenue Code, Treasury Regulations and guidance
issued by the Internal Revenue Service with respect to in-service distributions. No in-service
distribution shall be made under the provisions of this paragraph to any beneficiary who is re-
employed by the City as a police officer or fire fighter, whether on a full-time or part-time basis.
The provisions of this subsection 40-203(1)(4) shall be retroactive to and effective from the first
date of re-employment of any person eligible under the provisions of this section,