HomeMy WebLinkAboutResolutions - 1997.06.12 - 25077May 22, 1997
MISCELLANEOUS RESOLUTION #97138
BY: Dennis N. Powers, County Commissioner-District 1
IN RE: RETIREMENT FUND-ONE-TIME DISBURSEMENT TO RETIREES
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the retirees and/or beneficiaries of retirees from
service to Oakland County government have experienced an erosion of
the purchasing power of their benefits due to inflation; and
WHEREAS these retirees and/or beneficiaries are deserving of
a supplement to their benefits in order to partially offset this
inflationary effect; and
WHEREAS the recommended one-time disbursement, detailed on the
attached schedule, ranges from 1 96 of the annual benefit for those
retirees and/or beneficiaries of retirees who retired from 1990 to
1993 to 6 9,7 for those retirees and/or beneficiaries of retirees who
retired prior to 1976; and
WHEREAS the estimated cost of this one-time disbursement is
$166,763.92, and sufficient funds exist in the Retirement Fund to
cover this disbursement; and
WHEREAS the estimated annual cost of this disbursement is
$16,014.24.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners hereby approves the one-time disbursement to those
retirees and/or beneficiaries of retirees as outlined in the
attached schedule.
BE IT FURTHER RESOLVED that the cost of this one-time increase
be paid from the Retirement Fund.
Chairperson, I move the adoptcion of the foregoing resolution.
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Oakland County "13th Check" Proposal
Analysis of General Fund Impact
_ Category
1976 & Prey.
1977 & 1978
1979-81
\1982-1989
1990-9/1993
Base Annual
Count Benefit
186 $609,792.42
56 $228,581.25
97 $336,604.58
445 $4,069,580.19
226 $2,954,338.60
1,010 $8,198,897.04
Base Monthly
Benefit
$50,816.04
$19,048:44
$28,050.38
$339,131.68
$246,194.88
$683,241.42
1 Time %
of Annual One Time
Benefit Cost
6.00% $36,587.55
4.00% $9,143.25
3.00% $10,098.14
2.00% $81,391.60
1.00% $29,543.39
$166,763.92
Avg. Per Annual Gen'l
Retiree Fund Impact*
$196.71 $3,513.48
$163.27 $878.02
$104.10 $969.72
$182.90 $7,815.98
$130.72 $2,837.03
$16,014.24
* Based on financing of payments over 21 years at 7.5% per year.
** The repayment of a disbursement will not begin until second year following it.
Note: This analysis is based on information as of May 20, 1997.
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Resolution #97138 June 12, 1997
The Chairperson referred the resolution to the Finance and Personnel
Committee. There were no objections.