HomeMy WebLinkAboutR-2020-144 OPEB Trust Funding PolicyRESOLUTION NO.2020-144
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA
BEACH, FLORIDA, AUTHORIZING THE ADOPTION OF A FUNDING
POLICY FOR THE OTHER POST EMPLOYMENT BENEFITS ("OPEB")
TRUST; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR A
RETROACTIVE EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Dania Beach, Florida provides post -
employment benefits to the City's employees ("Participants"); and
WHEREAS, in 2009 the City established an "Other Post -Employment Benefits"
("OPEB") Trust under Ordinance 2009-010 that provides for specified post -employment benefits
for Participants through the Florida Municipal Pension Trust Fund Master Agreement; and
WHEREAS, the City Commission is vested with the authority to ensure that the costs of
benefits under the OPEB Trust will be funded in an equitable and sustainable manner; and
WHEREAS, a funding policy establishes guidelines for plan funding through actuarial
valuations, contribution timing, and actuarial assumptions; and
WHEREAS, the City currently does not maintain a written policy regarding the amount
of money contributed or distributed from the OPEB Trust or the assumed rate of growth of
OPEB trust assets, and in the absence of such a policy, the most conservative approach has been
reflected in actuarial valuations, resulting in a liability that is neither realistic nor relevant; and
WHEREAS, the adoption of an OPEB Funding Policy is consistent with "best practices"
and fiduciary oversight of the OPEB Trust;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DANIA BEACH, FLORIDA:
Section 1. That the above "Whereas" clauses are true and correct and they are
incorporated by this reference into this Resolution.
Section 2: That the City Commission of the City of Dania Beach hereby establishes
the OPEB Funding Policy, which defines the annual level of contributions made by the City into
the OPEB Trust.
Section 3: That the policy provides for the following assumptions related to OPEB
Trust assets:
i. That the assumed rate of interest earned is at least six and one half percent
(6.50%) annually.
ii. That the annual irrevocable contribution made by the City to the OPEB Trust will
be Two Hundred Thousand Dollars ($200,000.00).
iii. That monthly withdrawals from the OPEB Trust shall commence no sooner than
October 1, 2030, based on incurred retiree claims.
Section 4. That all resolutions or parts of resolutions in conflict with the provisions
of this Resolution are repealed to the extent of such conflict.
Section 5. That this Resolution shall be in force and become effective retroactive to
September 30, 2020.
PASSED AND ADOPTED on November 10, 2020.
ATTEST:
THOMAS SCHNEIDER, CMC LORI LE ELLEN
CITY CLERK A*- ti MAYOR
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APPROVED AS TO FO AND CORRECTNESS:
1 1
THONIAS J. XNS O
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CITY ATT E
2 RESOLUTION #2020-144