HomeMy WebLinkAboutResolutions - 2001.09.06 - 26666COMMITTEE FINANCE COMMITTEE
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MISCELLANEOUS RESOLUTION #01217 September 6, 2001
BY: Finance Committee, Sue Ann Douglas, Chairperson
IN RE: RETIREMENT COMMISSION — CONVERT INVESTMENT ADVISORY,
ACTUARIAL AND CUSTODIAL FEES AND INCIDENTAL EXPENSES FROM
GENERAL FUND TO RETIREMENT FUND
To the Oakland County board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS, under the authority of Act 249 of Public Acts of 1943, as amended, the
Oakland County Employee's Retirement System was established by the Oakland County Board
of Supervisors by adoption of Misc. Resolution #2224, dated December 11, 1945; and
WHEREAS the Retirement Commission administers, manages and is responsible for
proper operation of the retirement system, approves investments, reviews and rules on
applications for retirement benefits, and makes recommendations to the Board of Commissioners
for changes in the system; and
WHEREAS the Retirement Commission employs actuarial funding methods which
consider both contributions from the County and active members, as well as investment income
earned on System assets; and
WHEREAS, according to the September 30, 2000 Actuarial Report prepared by Gabriel,
Roeder, Smith & Company, the funding position of the Retirement System is stated as "The
present value of all future benefit payments net of the value of future member contributions is
135% funded by valuation assets"; and
WHEREAS Oakland County Retirement Commission recommends that Retirement
System expenses related to Investment Advisor, Actuarial and Custodial Fees, as well as
incidental expenses, be defrayed by resources of the Retirement Fund (731) rather than the
County's General Fund (101).
NOW THEREFORE BE IT RESOLVED that the Board of Commissioners adopts the
recommendation of the Oakland County Retirement Commission to defray related Investment
Advisor, Actuarial and Custodial Fees and incidental expenses from the Retirement Fund (731)
rather than the County's General Fund (101).
BE IT FURTHER RESOLVED that the implementation of this resolution become
effective with the adoption of the Oakland County Biennial Budget beginning October 1, 2001.
Chairperson, on behalf of the Finance Committee, I move adoption of the foregoing
resolution.
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote with Taub absent.
L. BROOKS PATTERSON, OAKLAND COUNTY EXECUTIVE
MP
COUNTY MICHIGAN
DEPARTMENT OF MANAGEMENT AND BUDGET
Dennis L. Murphy, Chairman
Oakland County Employees Retirement Commission
1200 N. Telegraph Road
Pontiac, Michigan 48341
Dear Mr. Murphy:
Jeffrey C. Pardee, Director
Laurie Van Pelt, Deputy Director
At the Retirement Commission meeting of July 19, 2001, a proposed resolution was
introduced that would convert Investment Advisory, Actuarial and Custodial Fees, and
incidental expenses from the County General Fund to the Oakland County Employees'
Retirement Fund. The matter was tabled pending further information from my office
regarding the specific financial implications related to implementation of this resolution.
The following schedule reflects the Statement of Changes in Plan Net Assets for the
Defined Benefit Plan Pension Trust Fund for Fiscal Year ending September 30, 2000, as
well as a comparison statement reflecting the Changes in Plan Net Assets incorporating
the proposed changes:
Actual Proposed
Net Assets as of Oct. 1, 1999 $790,888,633 $790,888,633
Additions:
Investment Income $ 86,753,250 $ 86,753,250
Contributions 898,220 898,220
Total Additions $ 87,651,470 $ 87,651,470
Deductions:
Benefits Paid $ 19,269,430 $ 19,269,430
Distribution to DC Plan 18,361,717 18,361,717
Investment Advisor 1,924,151
Custodial Fees 244,662
Monitoring Service 64,500
Actuarial Fees 34,325
Incidental Expenses 44,481
Total Deductions $ 37,631,147 $ 39,943,266
Net Increase $ 50,020,323 $ 47,618,204
Net Assets as of Sept. 30, 2000 $840,908,956 $838,506,837
As can be seen from the foregoing schedule, total deductions would increase by
$2,312,119, reducing Net Assets less than 0.3%. If you have any questions or need for
further information, please contact my office.
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77fffC. Pardee, C.P.F.O.
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Director, Management & Budget
EXECUTIVE OFFICE BUILDING 34 EAST • 1200 N TELEGRAPH RD DEPT 409 • PONTIAC MI 48341-0409 • (248) 858-0487 • FAX (24_,
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Resolution #01217 September 6, 2001
Moved by Douglas supported by Moss the resolutions on the Consent Agenda,
as amended, be adopted (with accompanying reports being accepted).
AYES: Appel, Brian, Buckley, Causey-Mitchell, Coleman, Crawford,
Dingeldey, Douglas, Galloway, Garfield, Gregory, Law, McPherson, Melton,
Millard, Moffitt, Moss, Obrecht, Palmer, Patterson, Sever, Suarez, Taub,
Webster, Amos. (25)
NAYS: None. (0)
A sufficient majority having voted therefore, the resolutions on the
Consent Agenda, as amended, were adopted (with accompanying reports being
accepted).
V;46F30
L. Brooks P Lem
I HEREBY
V/3/0 I 'eon. County Executive Date
OING RESOLUTION
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 6, 2001 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 6;47day4 ' September, 2001.
G. William Caddell, County Clerk