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HomeMy WebLinkAboutResolutions - 1971.08.19 - 16009August 19, 1971 RESOLUTION NO. 5788 RE: AMENDMENTS, OAKLAND COUNTY EMPLOYEES' RETIREMENT SYSTEM BY: PERSONNEL PRACTICES COMMITTEE Mr, MairOand TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS MR. CHAIRMAN, LADIES AND GENTLEMEN: WHEREAS, the Oakland County Employees Retirement Commission has recommended that Sections 25, 33, 34 and 34.1 of the Oakland County Employees' Retirement System be amended to increase the maximum age and service and disability pension from 1/2 to 3/4 of the final average compensation and to increase the maximum duty death pension to the greater of (i) $4,800, and (ii) 3/4 of the final average compensation in order to avoid cutbacks in retirement allowances to certain long term employees, and WHEREAS, your Committee concurs in those recommendations. NOW THEREFORE BE IT RESOLVED that Sections 25, 33, 34 and 34.1 be amended to read as follows: Retirement Allowance: Section 25. (a) Upon a member's retirement as provided in this resolu- tion, he shall receive a straight liferetirement allowance. Prior to the date of his retirement he may elect to receive his retirement al- lowance under an option provided in section 27 in lieu of a straight life retirement allowance. His straight life retirement allowance shall con- sist of: (1) An annuity which shall be theHactuarial equivalent of his accumulated contributions standing to his credit in the employees savings fund at the time of his retirement; and (2) A pension which when added to his annuity will provide a re- tirement allowance equal to the number of years, and fraction of a year, of his credited service multiplied by the sum of 1.45 per- cent of the first $4,200 of his final average compensation and 1.7 percent of the portion, if any, of his final average compen- sation which is in excess of $4,200. His pension provided in this paragraph shall not exceed $1,800 ,a year or xxx 3/4 of his final average compensation, whichever is greater. (b) According to such rules and regulations as the Commission may from time to time adopt, any member who retires prior to his attainment of age 65 years may elect to have his straight life retirement allowance actuarilly equated to provide an increased retirement allowance payable to his attain- ment of age 65 years and a reduced retirement allowance payable thereafter. His increased retirement allowance payable to his attainment of age 65 years shall approximate the sum of his reduced retirement allowance to be payable after his attainment of age 65 years and his estimated social security primary insurance amount. This subsection shall not apply to a member who retires prior to his attainment of age • GO years, or who elects to receive his retirement allowance under an option provided in section 27. Duty Disability Retirement Allowance: - Section 33. Upon a member's retirement on account of disability, as provided in section 32, he shall receive a disability retirement -allowance provided in section 25, subsection (a). If his retirement occurs prior to his attainment of age 60 years the credited service used in computing his retirement allowance shall be the sum of (1) his credited service in force at the time of his retirement, and (2) the number of years, and fraction of a : year, in the period from the date of his retirement to the date he would attain age 60 years. His straight life retirement allowance (1) shall not be less thanj7% of his final average compensation nor Shall the pension portion thereof exceed xxx 75 percent of his final average compensation, and (2) shall be subject to sections 35 (a) and 36. Prior to the date of his retirement he may elect to receive his retirement allowance under an option provided in section 27 in lieu of a straight life retirement allowance. Duty Death Benefits: Section 34. In the event (1) a member, dies as the result of a personal injury or disease arising out of and in the course of his employment by the County, or (2) a disability retirant dies prior to his attain- ment of age 60 years and within 3 year's from and after the date of his retirement, as the result of the same injury or disease for which he retired, and in either case his death, injury or disease resulting in death, be found by the Commission to have occurred as the natural and proximate result of causes arising out of and in the course of his actual performance of duty in the employ of the County, the applicable benefits hereinafter provided in this section shall be paid, subject to the condition that workmen's compensation is paid on account of the death of the member or retirant and subject to paragraph (0. (a) In the case of a deceased member, his accumulated contri- butions standing to his credit in the employees savings fund at the time of his death shall be. paid in accordance with sec- tion 37. (b) The widow to whom the deceased member or retirant was married at the time his employment by the County last terminated shall receive a pension equal to her weekly workmen's compensa- tion converted to an annual basis... A widow's pension shall begin upon termination of her workmen's compensation period, if she has not remarried, and shall terminate upon her remarriage or death. (c) Each unmarried child under age 18 years of the deceased member or retirant shall receive a pension equal to the child's weekly workmen's compensation converted to an annual basis. A child's pension shall begin upon termination of his worlmen's compensation period and shall terminate upon his adoption, marriage, attainment of age 18 years, or death, whichever occurs first. Should the widow's pension terminate as provided in sub- section (b) of this section, and 'should the deceased member's or retirant's child or children, eligible to a child's pension pro- vided in this subsection, survive the widow, each such child's pension shall be increased by an equal share of the widow's pension. (d) The parent or parents of the deceased member or retirant shall each receive a pension equal to the parent's weekly work- men's compensation converted to an annual basis. The parent's pension shall begin upon termination of his workmen's compen- sation period and shall terminate upon his remarriage or death. (e) In no case shall the sum of the annual benefits provided in paragraphs (b), (c) and (d) of this section exceed the greater of (i) xxx $4,,800; and (ii) 2% of the deceased member's average final- conpensation multiplied by his credited service not to exceed xxx 37.5 years. Post-Retirement Benefit Increases:. Section 34.1. (a) For a monthly benefit becoming effective on or after January 1, 1969 and beginning with the May first which is at least 12 full months after the effective date of the benefit, the amount of the benefit shall be redetermined effective each May first and such redetermined amount shall be payable for the ensuing year. Subject to the maximum stated in the next sentence, such redeter- mined amount shall be the amount of the benefit otherwise payable multiplied by the following percent: 100.0 percent, plus 1.5 percent for each full year (excluding any fraction of a year) in the period from the effective date of the benefit to the current May first. In no event shall such redetermined amount (i) be less than the amount of the benefit otherwise payable nor (ii) be more than the amount of the benefit otherwise payable multiplied by the following fraction: the numerator shall be the average of the Consumer Price Index for the 12 calendar months in the calendar year immediately preceding such May first (but in no event an amount less than the denominator below) and; the denominator shall be the average of the Consumer Price Index for the 12 calendar months in the calendar year immediately preceding the effective date of the benefit. "The amount of the benefit otherwise payable" means the monthly amount of benefit which • would be payable disregarding these provisions re- determining benefit amounts after retirement. (b) As used herein "Consumer Price Index" means the Con- sumer Price Index for Urban Wage Earners and Clerical Workers, as determined by the United States Department of Labor and in effect January 1, 1968; provided, should such Consumer Price Index be restructured subsequent to 1968 in a manner materially changing its character, the Commission after re- ceiving the advice of the Actuary,shall change the applica- tion of the Consumer Price Index so that as far as is practi- cable the 1968 intent of the use of the Consumer Price Index shall be continued. (c) For a monthly benefit which became effective before January 1, 1969 beginning with the monthly benefit of pay- ment, if any, for the month of January 1969, the amount of the monthly benefit shall be increased by 1% for each full . year (excluding any fraction of a year) in the period from the effective date of the benefit to January 1, 1969, to a maximum increase of 108. In addition, beginning May 1, 1969 the amount of the benefit shall be redetermined effective each May first and such redetermined amount shall be payable for the ensuing year. Subject to the maximum stated in the next sentence, such redetermined amount shall be the amount of the benefit otherwise payable multiplied by the following percent: 100.0 percent, plus 1.5 percent for each full year (excluding any fraction of a year) in the period from May 1, 1969 to the current May first. In no event shall such redetermined amount (i) he less than the amount of the benefit otherwise payable nor (ii) be more than the amount of the benefit otherwise payable multiplied by the following fraction: the numerator shall be the average of the Consumer Price Index for the 12 calendar months in the calendar year immediately preceding such May first (but in no event an amount less than the denominator below) and; the denominator shall be the average of the Consumer Price Index for the 12 calendar months in the calendar year 1967. "The amount of the benefit otherwise payable" means the monthly amount of benefit which would be payabledisregarding these provisions redetermining benefit amounts on and after May 1, 1969. (d) In no event shall the pension portion of annual benefits payable to a retirant, or payable to beneficiaries on behalf of a deceased member, exceed the .greater of (i) xxx $4,800 and (ii) 2% of the former member's final average compensation multi- plied by his years of credited service not to exceed xxx 37-5 years; except, for an age and service retirant the xxx $4,800 amount next above shall be $1,800. .4N 4 4 Wilri—a-m L. MainlaAd, Chairman -.C. The Personnel Practices Committee, by Mr. William L. Mainland, Chairman moves the adoption of the foregoing resolution. PERSONNEL PRACTICES COMMITTEE #5788 Moved by Mainland supported by Daly the resolution be adopted. Mr. Mainland requested that Robert E. Lilly, Executive Secretary of the Oakland County Employees Retirement Commission, be allowed to speak to the Board on the resolution. . There were no objections. Mr. Lilly addressed the Board. Discussion followed. Vote on resolution: AYES: Harrison, Horton, Houghten, Lennon, Mainland, Mathews, Olson, Perinoff, Pernick, Richards, Richardson, Simson, Szabo, Wilcox, Barakat, Brennan, Burley, Coy, Daly, Dearborn, Edwards, Gabler, Hamlin. (23) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) 1, Lynn D. Allen, Clerk of the County of Oakland and having a seal, do hereby certify that 1 have compared the annexed copy of - Resolution #5788 adopted by the Oakland County Board of 0.449 06000••• ••1 OOOOOOOOOOOOOO 000 90•90ser tr••0.0•••••• o" s. e •n ••••••••••• Commissioners at their August 19, 1971 meeting 0 0 9 OOOOO ••••••••••••••••••••••••"0“.•n er 01•911-•••••••••• ................. with the original record thereof now remaining in my office, and that it is a true and correct transcript therefrom, and of the Whole thereof. In Testimony Whereof, I have 1-2reunto set my hand and affixed the seal of said County at Pontiac, Michigan this day of Lynn D. Allen Clerk By Deputy Clerk BOARD ri,EmE3Ens DANIEL T. MURPHY CH Al RN AN RosERT L_ LILLY- VICE CHAIRMAN GEORGE _I_ FuLKERsoN 14 ELM NU2 ROBERT E. CHISHOLM ADM/NI STRATIVE ASSISTANT 0 AIM A NI) COUNTY BOAND CUT" AUDITORS OAKLAND COUNTY COURT HOUSE izoo NOirrH TELEGRAPH ROAD PONTIAC. MICHIGAN 48053 PHONE 338-4751 August 9, 1971 SECRETARY TO f,75AR!) N. ELAINE Mc.:FALL DEPUTY SECRETARIES BETTY J. OCKFRfYIAN CATHERINE SMITH KATHRYN E. GEORGE To All Members of the Oakland County Board of Commissioners 1200 North Telegraph Road Pontiac, Michigan 48053 Ladies and Gentlemen: The attached resolution embodying the technical language prepared by the Actuary of the Oakland County Employees' Retirement Commission and amending the Oakland County Employees' System as below outlined, will be presented by the Personnel Committee at the Autpst 19 Board meeting. Recommended by the Oakland County Employees' Retirement Commission, the amendments are designed to raise, as now permitted by corrective State legislation, the maximum ceiling on the County portion of the over- all service retirement allowance payable to Oakland County retirants from 1/2 of F.A.C. to 3/4 of F.A.C. The purpose of the amendments are to eliminate, in the case of certain long term employees (30 years or more), cutbacks in their County retirement allowances from that which they would normally be paid under the present County Retirement Benefit Formula of 1.45% of the first $4,200 of final average compensation plus 1.7% of final average compensation over $4,200. The Retirement System has been and is presently being funded on the basis of full retirement payments without • the cutbacks above noted, and therefore, no additional funding will be needed to finance these amendments. Very truly yours, , t/ / fi Robert E. Lilly Executive Secretary REL:s1