HomeMy WebLinkAboutResolutions - 1990.02.08 - 16818From:
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February 8, 1990
MISCELLANEOUS RESOLUTION # 90005
FINANCE COMMITTEE, DR. G. WILLIAM CAD DELL, CHAIRPERSON
IN RE: TREASURER AND DEPARTMENT OF MANAGEMENT AND BUDGET - A REVIEW OF
ACTUARIAL ASSUMPTIONS AND REQUEST AUTHORIZATION FOR RETIREMENT
APPROPRIATION TRANSFER AND ESTABLISHMENT OF RETIREMENT FRINGE
BENEFIT RATES
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS in 1987 the County Board of Commissioners by Miscellaneous
Resolution #87280 established the Retirees' Hospitalization Benefit Fund
(70545) as a mechanism to actuarially fund the liability for vested future
health care benefit payments; and
WHEREAS the County has undertaken a systematic program to fund the
increasing cost of providing medical benefits for current and former
County employees, including imposition of a $136.00 annual charge to
currently active employees, beginning in 1989; and
WHEREAS the County's Actuary, Gabriel, Roeder, Smith & Company, has
determined that the equivalent cost ($136.00) of funding the accrued
liability incurred for Retirees Hospitalization for all retirees as of
December 31, 1988 amounts to $1,080,942 and further indicated that a
surplus existed in the retired life reserve equal to $8.6 million; and
WHEREAS the Retirement Commission, at its June 29, 1989 meeting,
approved the transfer of $1,080,942 from the Retirement Reserve to the
Pension Reserve to fund the increased cost of providing medical benefits
in lieu of a 2% improvement factor in annual pension payments; and
WHEREAS the practical results of the Retirement Commission's action
are to reduce the required 1990 County contribution to the Retirement Fund
for funding pension payments thereby freeing these monies to be used to
supplement funding for the increased costs of Retirees' Hospitalization
Benefits; and
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners authorized the following budget amendment to the Fringe
Benefit Fund to enable a transfer of $1,080,942 to the Retirees'
Hospitalization Benefit Fund (70545) for purposes of funding increased
costs for retirees' medical benefits for all retirees as of December 31,
1988.
BY:
Retirement Contribution Account $(1,080,942)
Retirees' Hospitalization Account $ 1,080,942
-0-
Dardel Canty
Mr. Chairperson, on behalf of the Finance Committee I move adoption of
the foregoing resolution.
FINANCE COMMITTEE
H E:REpY APPROVE THE FOREGOING RESOLUTION
jp4-mrretirefee
February 8, 1990 Resolution # 90005
Moved by Caddell supported by Jensen the resolution be adopted.
AYES: Crake, Ferrens, Gosling, Huntoon, Jensen, Johnson, R. Kuhn, S. Kuhn,
Law, Luxon, McConnell, McCulloch, McPherson, Moffitt, Oaks, Olsen, Pappageorge, Pernick,
Price, Rewold, Skarritt, Wolf, Aaron, Caddell, Chester. (25)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND
I, Lynn D. Allen, Clerk of the County of Oakland, do hereby certify that the foregoing
resolution is a true and accurate copy of a resolution adopted by the Oakland County
Board of Commissioners on February , 1990
with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affled the seal of the County
of Oakland at Pontiac, Michigan this 8th day141/FeblE4W;47, ,ReAy510- 1990
Lynix D. Allen, County Clerk