HomeMy WebLinkAboutRes 1994-44RESOLUTION NO.1994-44
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE
TOWN OF FOUNTAIN HILLS,ARIZONA,AUTHORIZING THE
TOWN MANAGER TO ENTER INTO A JOINDER AGREEMENT
WITH THE ARIZONA PUBLIC SAFETY PERSONNEL
RETIREMENT SYSTEM ON BEHALF OF THE FULL-TIME
MUNICIPAL POLICE OFFICERS REGULARLY ASSIGNED TO
HAZARDOUS DUTY OF THE TOWN OF FOUNTAIN HILLS.
WHEREAS,the Town of Fountain Hills did on March 17,1994,pass a resolution
authorizing an actuarial survey to be made to determine the estimated cost of participationin the
Public Safety Personnel Retirement System, and
WHEREAS,the preliminary actuarial survey has been made and it has been deemed
in the best interest of the Town of Fountain Hills to include all full-time, paid municipal police
officers who are regularly assigned to hazardous duty under the Public Safety Personnel
Retirement System Act as set forth in Title 38, Chapter 5, Article 4, Arizona Revised Statutes
as amended 1988;
NOW THEREFORE BE IT RESOLVED by the Town Council of the Town
of Fountain Hills that the Town Manager be authorized to sign a Joinder Agreement with the
Arizona Public Safety Personnel Retirement System Fund Manager.
APPROVED AND PASSED by the Town Council of the Town of Fountain Hills
this 6th day of October,1994.
ATTEST ATTEST
J%j/M.Cutillo,Mayor Cassie B.Hansen,Town Clerk
APPROVED AS TO FORM:REVIEWED BY:
William E.Farrell,Attorney PaulL.Nordin,Town Manager
APPENDIX A
Summary of the
Gabriel,Roeder,Smith
and Company Actuarial
Study
IXJIgg/
Preliminary Computed Contribution Requirements
TOWN OF FOUNTAIN HILLS MARSHALS
MEMBER: 7.65%of covered compensation.
EMPLOYER:6.63%of covered compensation,consisting of 5.63%for normal cost,1.00%for
amortization of unfunded actuarial accrued liabilities.*
COMPOSITION OF COMPUTED NORMAL COST REQUIREMENT
Percents of Covered Compensation
Normal cost requirement
Service Pensions
-members
-survivors of retired members
Disability pensions
Survivors of active members
Refunds of members'contributions
Health insurance
Total normal cost requirement
Less member contribution
Employer normal cost contribution
8.91%
0.95 9.86%
0.83
1.05
1.38
0.16
13.28
7.65
5.63%
*Actuarial accrued liability as of October 31,1994 was computed to be $9,138.Deducting accrued
member and employer assets,$0,resulted in unfunded actuarial accrued liability of $9,138.The23
year amortization paymentwas computed to be 1.00%of covered compensation.
Each $1,000 of accrued assets transferred to the Public Safety Personnel Retirement System will reduce
the 6.63%employer contribution rate indicated above by 0.1% of payroll.
Arizona Public Safety Personnel Retirement System B-l
APPENDIX B
Summary of Benefits
Offered the Officers
Under the Public Safety
Retirement System
PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM 7/94
SUMMARY OF BENEFITS
/-°URPOSE
(j^a provide auniform,consistent and equitable state-wide program for public safety personnel who are regularly assigned hazaroous duty
in the employ of the State of Arizona,or a political subdivision thereof.(A.R.S.Section 38-841)
AVERA6E MONTHLY COMPENSATION
One thirty-sixth of total compensation paid a aeaber during the highest three consecutive years,out of the last twenty years of
credited service. (A.R.S.Section 38-842.4)
COMPENSATION
For purposes of computing retirement benefits,base salary,overtime pay,shift differential pay and holiday pay paid to an employee
on a regular monthly,semimonthly or bi-weekly payroll basis and longevity pay paid to an employee at least every six months for which
contributions are made to the System.(A.R.S.Section 38-842.6)
NORMAL RETIREMENT
First day of month after completion of twenty years of service,or following sixty-second birthday and completion of fifteen years
of service.(A.R.S.Section 38-842.19)
The amount of monthly normal pension is based on credited service and average monthly compensation as follows:
For retirement with twenty years of credited service but less than twenty-five years of credited service,SOX of average monthly
compensation for the first twenty years of credited service,plus 22 of average monthly compensation for each year of credited service
between twenty and twenty-five.(A.R.S.Section 38-845.A.2)
For retirement with twenty years of service,but less than twenty years of credited service,the pension is reduced by a rate of 4X
per year for each year of credited service under twenty years.(A.R.S.Section 38-845.A.1)
For retirement with twenty-five or more years of credited service,5GX of average monthly compensation for the first twenty years of
credited service,plus 2-1/2X of average monthly compensation for each year of credited service above twenty years,up to a maximum
of 802 of average monthly compensation.(A.R.S.Section 38-845.A.2)
L
DEFERRED RETIREMENT
A member with at least ten years of credited service,who terminates employment,may elect to leave their contributions in the System
and receive a deferred retirement allowance,commencing at age sixty-two.Pension is a lifetime monthly annuity,based on twice the
amount of the member's contributions.The benefit is forfeited if the member elects a refund of their contributions.(A.R.S.Section
38-846.01)
ORDINARY DISABILITY RETIREMENT (Not Service Connected)
Physical condition:Total and peraanent disability preventing performance of a reasonable range of duties within the employee's
department.Mental condition:Total and peraanent disability preventing any substantial gainful activity.Benefit is percentage of
normal retirement,based on years of credited service:252 less than seven years,50K,seven to fourteen years,75%,fourteen to twenty
years.(A.R.S.Section 38-842.20 and A.R.S. Section 38-845.C and A.R.S. Section 38-844.B)
ACCIDENTAL DISABILITf RETIREMENT (Service Connected)
Total and presumably permanent disability,incurred in performance of duty,prior to normal retirement date,preventing performance
of a reasonable range of duties within the employee's job classification.No credited service requirement.The pension is 5GX of
average waithly compensation or normal pension amount,whichever is greater.(A.R.S.Section 38-842.1,A.R.S.Section 38-845.C and
A.R.S.Section 38-844.B)
OFFSET OF ACCIDENTAL OR ORDINARY DISABILITY PENSION
Before the teeaber's normal retirement date,an accidental or ordinary disability pension will be reduced if the retiree engages in any
employment and the income'from this employment is greater than the retiree's pension.The reduction is equal to the difference between
the retiree's income from employment and the retiree's pension.
TEMPORARY DISABILITY (Service Connected)
Total and presumably temporary disability,incurred in performance of duty,prior to normal retirement,preventing performance of a
Csonable range of duties within the employee's department.No credited service requirement.Monthly pension is one-twelfth of 5CK
annual compensation at time of disability.Payments terminate after twelve months or return to work.(A.R.S.Section 38-844.6 and
tion 38-845.E and Section 38-842.27)
SURVIVOR PENSION
Z*Z2?ZnTZtZ ££SCrUiCe'"aft"reti^t-a"•»•«*'***"•»«»««ta,=*credited service
We.;5™^:h;^tMrXe^ieS^^rir t "u ,or ridemaL disa6uit>^^-«-*•Ter.inates on death.For a ^ber killed n thTlinl fl ;„^"T ""r"*°f •arr'a9e f°r «""red .ewer's spouse,bee.paid for accidental disabilitv r^t^r^;^WTO^"cZd"'"^*""^~6"~W ^
nsif^^^sj^^^.rs.""^•rtrnj^id ,or accidra;i!"Mi,v rrt,r-"t ^-~shares of three-ninths if .ore than three children)~"ber'°nM"lth of th«•«1™<'—«•'»pension (equal
eU^'cnrZ;??££?SpCTJSe'S ~'Pai'able "l"**-"""-»-"»**"-P."-*««•at least one
TERMINATION REFUND
Upon termination of eaployment,for any reason other than death or retirement a member shall within tu«tw rf~~=,*♦«•••application with the Fund Manager,receive a lump-sum payment,equal to his ^^c^LT^LTZ^^XJ^"less any benefits paid or any a«xmts owed to the System.(A.R.S.Section 38-846.02)C°nXriDUt1°n'^°'the ^te of terswat.on,
TRANSFER OF CONTRIBUTIONS
RE-EMPLOYMENT AND REPAYMENT OF CONTRIBUTIONS
Members who terminate and take a refund of their contributions mav p|Mt nmn —•-,.i*i.»upriorserviceprovidedthattheirre^lov^t is «£,™Z?£i 2£ZZttX,^^^Mnenllec^thtrfydaysafterre-employment to reimburse the Fund within one year.(A.R.S.Section 38-849.C)election within
REDEMPTION OF ?RI0R SERVICE
Active members who had previous service inthis state in a covered position with an employer now covered by the svstea and uhn r,*™.*arefund of accu^lated contributions from the applicable retirement syste.upon teraTnanon or wTn^prL ctsTe "celn^is'yste^£ZIV +1 ^^°f acCU~lated «-tributions fro.this syste.«y elect to redee-any part of the pri^rservicebLy*ncHn~the system the aaounts required in A.R.S. Section 38-853.01.B.service Dy paying into
TRANSFER BETWEEN STATE RETIREMENT SYSTEMS
Meabers of any of the four Arizona state retirement systems or plans who have credited service under another state retirement svste.
to^Ti^^S^f*™^—V^r"!^6"WitH -0p,WBl °f thC fUnd -n-**"ret-—t boardsinvoueo.a reduce^credited service aocu-.t asy t«transferred based on the transfer of the actuarial present value of the creditsserviceunderthepriorsystemorplan.(A.R.S.Sections 38-921 and 38-922>credited
COLA BENEFIT INCREASES
r!l!^Ve JUiX 1 °f f^yCar'aU PSPRS retirees »*»are 55 **"*of ^or older or their survivors and all disability retireesregardlessofagewhowerereceivingbenefitsonorbeforeJune30ofthepreviousyear,may be entitled to a permanent bene^increase in their base benefit in the maxim-amount of four percent (42)of ?he average normal PSpS^itV^T^J^t^preceding June 30 contingent upon sufficient excess investment earnings for the fund.(A.R.S.38-So)^
HEALTH INSURANCE PREMIUM SUBSIDY
«lLSerS tl2'p'!S£cl*?i.haVe 9rOUP £l2!and a"idcnt 1nsurance covera9«Provided and administered by the state or another PSPRSU7ZoermonthT^"L^S8?-50 P"""th f°r P3'*°f the P™*-fo'th««"«irees'individual coverage and an additionalw.xj per month for part of the premium for dependent health and accident insurance coverage.(A.R.S.Section 38-857)
TAXATION OF PSPRS BENEFITS
»!tOX,/Tl co-Bencin9 January 1,1989,all PSPRS retireaent benefits in excess of $2500 annually will be subject to Arizona
ax.(A.R.S.Sections 38-RS?anrf ATUircr?-*JSections38-852 and 43-1022)
APPENDIX C
Copy of the
Town Council Resolution
Authorizing the Manager
To Sign a "Joinder Agreement"
With the Public Safety
Retirement System
\^>/
\fe/
2.jrhe undersigned Employer further agrees that it will make contributions to the
System for such employees which shall be sufficient to meet the normal cost of
benefits for such employees,on a level cost method,and to meet the interest on
its past service cost for such employees,as provided in Title 38,Chapter 5,Article
4,Arizona Revised Statutes.
3.The Fund Manager,by execution of this Joinder Agreement,accepts the Employer
for participation in the System.
4.The undersigned Employer hereby represents that it has taken all action necessary
to terminate any existing retirement program for the designated employees and upon
the effective date hereof,such other program will be terminated.Employer hereby
agrees that all assets in such prior program which are accepted by the Fund Manager
and attributable to such employees shall be transferred to the Fund Manager of the
Arizona Public Safety Personnel Retirement System.Employer agrees to provide a
statement of the accumulated employee contribution accounts in such prior program.
Employer shall deliver possession of said assets within sixty (60)days after the
effective date of this agreement.
IN WITNESS WHEREOF,the Employer has caused to be executed in its behalf by a duly authorized
officer and the Fund Manager has executed this Joinder Agreement this day of
-,19 .
FUND MANAGER:EMPLOYER:
The Fund Manager
Public Safety Personnel Retirement System
TeioK rVianaq^.^
(Official Positron or Title)&
APPENDIX D
Transmittal Letter and
"Joinder Agreement"Applying
For Public Safety Retirement
System
N^j/
October 6,1994
Mr.Jack Cross
Administrator
Public Safety Retirement System
1020 E.Missouri
Phoenix,AZ 85014-2613
Dear Mr.Cross:
The purpose of this letter is to request enrollment of the Fountain Hills Marshals
Department in the Public Safety Retirement System.
Our town council passed a resolution authorizing me to enter into a "Joinder Agreement"
with the Public Safety Retirement System on behalf of our municipal officers.A copy of the
resolution, and a signed copy of the Joinder Agreement are attached for your review.
Based on the Actuarial Study, completed by Gabriel, Roeder, Smith and Company, we
understand that the town's contribution will be 1.00%of covered compensation over the normal
municipal contribution to offsetour "unfunded liability".Total contribution the first year will
be 6.63%from the town and 7.65%from the officers.
If I can be of any further assistance in expediting our application,please feel free to call
on me. Thank you for your consideration in the vital matter.
Sincerely,
Paul L.Nordin
Town Manager
ARIZONA PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM
JOINDER AGREEMENT
THIS AGREEMENT,entered into this day of 19
effective as of the day of 19 /by and between the
undersigned Employer and the Fund Manager of the Arizona Public Safety Personnel Retirement
System
WITNESSETH:
WHEREAS,the Employer is a public body deriving its powers from the legislature of the State
of Arizona which employs certain employees in the field of public safety who are regularly
assigned to hazardous duty,and
WHEREAS,the Employer,after considering its cost requirements to provide retirement and other
benefits to its public safety employees through the Arizona Public Safety Personnel Retirement
System,has determined to provide benefits for such employees through the Arizona Public Safety
Personnel Retirement System and has adopted a resolution and followed such other procedures
as are necessary to elect to join such System, and
Q^REAS,the Fund Manager of the Arizona Public Safety Personnel Retirement System has
considered the request of the undersigned Employer to join the System and has approved the
participation in the System of such Employer;
NOW,THEREFORE,for and in consideration of the premises and the mutual covenants herein
contained,the Employer and the Fund Manager hereby agree as follows:
1.By execution of this Joinder Agreement the undersigned Employer unconditionally
adopts,accepts and agrees to be bound by all the terms and conditions of the Arizona
Public Safety Personnel Retirement System with respect to the following designated
class of employees:
full-time,paid police officers regularly assigned to hazardous duty
and for and onbehalf
of such employees binds them to such System as their sole source of retirement
benefits provided by the Employer,exclusive of Federal Social Security,and hereby
agrees that it will not establish any other retirement program for such employees.