HomeMy WebLinkAboutResolutions - 1999.09.23 - 25876September 23, 1999
MISCELLANEOUS RESOLUTION # 99254
BY: Personnel Committee, Tom Law, Chairperson
IN RE: OPTIONAL BENEFIT FROM 2% TO 2.2% AND DEFINED CONTRIBUTION
TRANSFER
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the County of Oakland continue to explore
opportunities to control personnel costs while maintaining a
competitive salary and benefit package; and
WHEREAS the Michigan Attorney General, in 1991 Opinion Number
6697, Page 116 confirms that the County may, without violating the
State Constitutional protection of contractual obligations, modify
retirement benefits to current Members if it provides alternative
benefits in their place that are equal to or greater than pension
benefits that would be limited or withdrawn; and
WHEREAS it is permissible to amend the Plan to offer Members
the opportunity to transfer a "Lump-Sum" payment actuarially
equivalent to the present value of their accrued benefit into the
Defined Contribution part of the Retirement System; and
WHEREAS Members will incur no tax consequence if a Member
elects to transfer the Lump-Sum to the Defined Contribution part of
the Retirement System; and
WHEREAS the approval of changes to the Retirement System
requires the approval of the State of Michigan State County Pension
Plan Committee, in addition to authorization by the County Board of
Commissioners; and
WHEREAS it has been the practice of the Oakland County
Retirement Commission to obtain the approval of the U.S. Internal
Revenue Service and to condition any Plan Amendment on obtaining a
determination letter that the proposed Amendment does not adversely
affect the tax-qualified status of the Retirement Plan.
NOW THEREFORE BE IT RESOLVED by the Board of Commissioners of
the County of Oakland approves the Plan initiating an offer to
transfer accrued retirement benefits to Members of the retirement
System who want to transfer their interest in the Defined Benefit
part of the System to the Defined Contribution part; and
BE IT FURTHER RESOLVED that transfer be offered in a Lump-Sum,
thereby allowing a rollover of same to the Defined Contribution
part, effective December 31, 1999; and
Personnel Committee Vote:
Motion carried on unanimous roll call vote with Colasanti absent
BE IT FURTHER RESOLVED that Section 3 shall be amended by
adding Sub-section f(5)- Benefit Group General - Option E. All
members not included in Benefit Group sheriff's Department whose
employment agreements with the county indicate that they are Option
E employees.
BE IT FURTHER RESOLVED that the Board of Commissioners amend
the Defined Benefit part of the Oakland Count Employees' Retirement
System Resolution by adding:
SECTION 34.3 DEFINED CONTRIBUTION TRANSFER OPTION FOR "BENEFIT
GROUP GENERAL - OPTION A."
The Retirement Commission shall undertake the following with
respect to Members of Benefit group general - option A who are
not Represented Employees and represented employees whose
collective bargaining agreement provides for these benefit
modifications.
a. As of December 31, 1999 determined who the Members are
that are eligible to make a current election;
b. Determine each such Member's Pension as defined in
Section 18 of the Defined Benefit Part of the Retirement
System;
c. Determine the present value, as of December 31, 1999 of
the lump-sum actuarial equivalent accrued benefit of each
such vested Member's Pension using all of the Retirement
Commission's actuarial assumptions as in effect for
funding purposes for the September 30, 1999 annual
actuarial valuation;
d. Make the same determination in (c), except without the
use of a Disability factor using for funding purposes;
and
e. Notify each such vested Member in writing that they have
an irrevocable one-time election continuing for no less
than seven (7) days nor more than ninety (90) days in
which to decide as to whether they want to have the
single sum payment of the value determined in (d) on or
about April 1, 2000 in lieu of any further Pension from
this System.
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BE IT FURTHER RESOLVED that Section 17 shall be amended by
adding Subsection (e) thereto, providing:
Section 17. The age and/or service requirements for normal
retirement are:
(e) Benefit Group General - Option E. The individual
has attained age 55 and has 25 or more years of
credited service, or the individual has attained
age 60 years and has 8 or more years of credited
service and member makes a 1% compensation "pickup"
contribution in accordance with Section 52(d).
BE IT FURTHER RESOLVED that Section 18 shall be amended by
adding Subsection (e) thereto, providing:
(e) Benefit Group General - Option E. For members who
make a 1 96 of compensation "pick-up" contribution
after December 18, 1999, or when the employee
completes 14 years of service and makes a 1% of
compensation "pick-up" contribution, 2.0% (.02) of
the member's final average compensation multiplied
by up to 14 years of credited service and years 15
and beyond shall be multiplied by 2.2% (.022) of
the member's final average compensation.
BE IT FURTHER RESOLVED that Section 52 shall be amended by
adding Subsection (d) thereto, providing:
(d) Each Member in Benefit group general-option A shall
be offered the opportunity to make an irrevocable
election to participate in the "pick up part" of
the DB part of the Retirement System effective
January 1, 2000. Such irrevocable election for
each Non-Represented Member and represented members
whose collective bargaining agreement provides for
these benefit modifications shall require a Member
Contribution of 1% of Compensation after completing
14 years of service. Such Contributions shall only
be effective for Compensation paid after December
31, 1999 and will only affect benefits paid to
Members who have credited service after December
31, 1999.
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BE IT FURTHER RESOLVED that Benefit Group General - Option E
remain consistent with Bargaining Group 10, Sheriff's Deputies as
to years of service for contribution and that if the deputies lower
the years of service from 14, then the Benefit Group General -
Option E shall be lowered to the same number.
BE IT FURTHER RESOLVED that Section 41 be amended as follows:
(a) The chairperson of the Board of County
Commissioners or designee by virtue of that office.
(b) The chairperson of the County Finance Committee or
designee by virtue of that office.
BE IT FURTHER RESOLVED that the Secretary of the Retirement
Commission is authorized to have proper application made to the
Treasury Department of the United States to obtain formal approval
of the said Plan in accord with applicable provisions of the
Internal Revenue Code, and to employ competent counsel in the
prosecution of such application, and to do such other acts as shall
be necessary hereunder to put the said Plan in operation; and
BE IT FURTHER RESOLVED that this adoption and authorization of
the Plan be, and the same hereby is, made expressly contingent upon
the approval of same by the Internal Revenue Service in accord with
applicable provisions of the Internal Revenue Code, and that the
Retirement Commission, through its attorneys, promptly submit said
Plan for such approval; and
Chairperson, on behalf of the Personnel Committee, I move the
adoption of the foregoing resolution, subject to the approval of
the State County Pension Plan Committee and the U.S. Internal
Revenue Service.
PERSONNEL COMMITTEE
I a, Lktr-i I
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FISCAL NOTE (M.R. #99254) September 23, 1999
BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON
IN RE: OPTIONAL BENEFIT FROM 2% TO 2.2% AND DEFINED CONTRIBUTION TRANSFER
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed
the above referenced resolution and based on the actuarial analysis finds no
additional funding is required.
FINANCE COMMITTEE
FINANCE COMMITTEE VOTE;
Motion carried unanimously on a roll call vote with Causey-Mitchell absent.
Resolution #99254 September 23, 1999
Moved by Law supported by Sever the resolution be adopted.
AYES: McCulloch, McPherson, Melton, Millard, Moffitt, Obrecht, Palmer,
Patterson, Schmid, Sever, Suarez, Taub, Amos, Appel, Causey-Mitchell, Colasanti,
Coleman, Devine, Dingeldey, Douglas, Galloway, Garfield, Gregory, Jensen,
Law. (25)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
HFREBY AP OV E FOREGOIN(3 RE,OLUTIC
..,rooks-Faon. County Executive Date
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, G. William Caddell, 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 September 23, 1999 with the original
record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the
County of Oakland at Pontiac, Michigan this 23rd day of September, 1999.
William Clgg7