HomeMy WebLinkAboutActuarial Impact StatementJune 14, 2018
City of Miami Fire Fighters' Relief
and Pension Fund
2980 N.W. South River Drive
Miami, FL 33125-1146
c/o Andrew McGarrell (office0)miami175.orcI)
Actuarial Impact Statement
The purpose of this letter is to provide the Actuarial Impact Statement for changes to the City
of Miami Fire Fighters' Relief and Pension Fund ("Fund"). 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 changes to the Fund are to comply with the favorable determination letter issued by the
IRS in conjunction with the Fund's tax qualification. The description of these changes are
outlined in Exhibit A.
These amendments do not result in any Actuarial Impact on the City's contribution
requirements for this Fund.
The undersigned is compliant with the continuing education requirements of the Qualification
Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States. In our
opinion this change is in compliance with Section 14, Article X of the State Constitution and with
Section 112.64 Florida Statutes.
Sincerely,
Heath W. Merlak, FSA, FCA, MAAA, EA
Actuary
cc: Pedro A. Herrera(PHerrera(absugarmansusskind.com)
Atlanta • Chicago • Denver • Houston Indianapolis • Kansas City New York • San Diego • St. Louis
t. (317) 845-3500 • 't. (800) 428-7106 • g www,nyhart.com
EXHIBIT A
Section 2, Definitions:
(ee) "Qualified Military Service" means any service in the uniformed service (as defined
in chapter 43 of title 38, United States Code) by any individual if such individual is
entitled to reemployment rights under such chapter with respect to such service (Section
414(u)(5) of the Internal Revenue Code).
(ii) "USERRA" means Uniformed Services Employment and Reemployment Rights Act
(P.L. 103-353).
Section 6, Benefits:
(c) Death Benefits. In the case of a death or disability occurring on or after January 1,
2007, if a participant dies while performing Qualified Military Service, the survivors of the
Participant are entitled to any additional benefits (other than benefit accruals relating to
the period of Qualified Military Service) provided under the plan as if the Participant had
resumed and then terminated employment by the City on account of death.
(k) Direct Rollover of Certain Distributions. Notwithstanding any provision of this Fund to
the contrary that would otherwise limit a Distributee's election under this Section 60), a
Distributee may elect, at the time and in the manner prescribed by the Board, to have
any portion of an Eligible Rollover Distribution paid directly by the Fund to an Eligible
Retirement Plan specified by the Distributee in a Direct Rollover. If a non -spouse
Beneficiary receives a distribution from the Fund, the distribution is not eligible for a 60 -
day (non -direct) rollover.
Section 8, Miscellaneous Provisions:
(g) USERRA. Notwithstanding any provision of this plan to the contrary, contributions,
benefits and service credit with respect to 96ialifiedmilitary GeFViGe Qualified Military
Service will be provided in accordance with Code section 414(u).
(h) Differential Wage Payments. For years beginning after December 31, 2008, (i) an
individual receiving a differential wage payment, as defined in Section 340(h)(2) of the
Internal Revenue Code, shall be treated as an employee of the employer making the
Payment, (ii) the differential wage payment shall be treated as compensation, and (iii)
the plan shall not be treated as failing to meet the requirements of any provision
described in section 414(u)(1)(c) of the Internal Revenue Code by reason of any
contribution or benefit which is based on the differential wage payment.