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TRANSCRIPT
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City of Palm Coast Volunteer Firefighter’s Pension
Plan Share Plan Project
Finance DepartmentChristopher M. Quinn, Finance Director, MACC, CPA, CFE, CGFO, CGMAGinger Norberg, Accounting Technician IIDecember 9 th, 2014
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• History
• Current Plan Status
• Benefit Enhancement Project
• Next Steps
Presentation Outline
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July 2, 2002 City Council Levies Property Insurance Premium Tax of 1.85% on Insurance Companies, Ordinance Number 2002-15• State restricted for funding of pension benefits
for Firefighters
History
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February 15, 2005 City Council established City of Palm Coast Volunteer Firefighters Pension Plan (Defined Benefit Plan), Ordinance 2005-08
Established Board of Trustees (5)• 2 appointed by Council• 2 appointed by Volunteers• 1 appointed by other four
History
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Ordinance 2005-08 (Continued)• Established Retirement Qualifications - LOSAP
(Length of Service Award Pension Program)• Benefit Amount - $35 per year of credited
service• Establish Pension Eligibility
History
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Points Issues for the Following Activities• Response to Paged Calls (25%)• Attendance at Drills (50%)• Attend Business Meetings (8 Minimum)• Position, Activity, Etc. points (50)
HistoryLength of Service Award Pension Program (LOSAP)
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March 3, 2009 City Council revised the City of Palm Coast Volunteer Firefighters Pension Plan, Ordinance 2009-04• Increased benefit amount from $35.00 to
$50.00 per year of credited service
History
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October 18, 2011 City Council revised the City of Palm Coast Volunteer Firefighters Pension Plan, Ordinance 2011-18• Increased benefit amount from $50.00 to
$65.00 per year of credited service
History
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HistoryPremium Tax ReceiptsReceived During Fiscal Year Amount Increase from Previous Year
2003 14,328 -
2004 62,130 333.6%
2005 96,546 55.4%
2006 128,816 33.4%
2007 242,231 88.0%
2008 380,757 57.2%
2009 499,181 31.1%
2010 339,246 -32.0%
2011 359,373 5.9%
2012 377,962 5.2%
2013 364,571 -3.54%
2014 381,967 4.77
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Current Plan Status
Annual Amount from State Tax Collections
($350,000-$400,000)
Current Benefits($144,000)
Reserve for Benefit Improvements
($206,000-$256,000)
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Current Plan StatusPlan Funding
2008 2009 2010 2011 2012 2013$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Assets
Pension Liability
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Current Plan StatusFunded Ratio
2008 2009 2010 2011 2012 2013106%
108%
110%
112%
114%
116%
118%
120%
122%
114%
111%
112%
119%
121% 121%
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Current Plan StatusRequired Contributions
2008 2009 2010 2011 2012 2013$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
Required Contribution
State Con-tribution
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Current Plan StatusReserve for Benefit Improvements
2008 2009 2010 2011 2012 2013$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
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Goals:• No increased potential liability to the City • Comply with IRS Regulations• Comply with State Pension Statutes• Take Advantage of benefit improvement reserve
Benefit Enhancement Project
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Share Plan Concept• Provide additional amount above current
defined benefit plan ($65.00 per month)• Recommendation annually to City Council by
Pension Board to distribute a portion of the benefit enhancement reserve (if any)
• Both current volunteers and retirees participate• Mitigate accumulation of benefit improvement
reserve• No effect on potential City liability
Benefit Enhancement Project
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Volunteer Firefighter Pension Plan Ordinance• Update to include share plan component• Update for IRS compliance
Submit to IRS for Private Letter Ruling IRS Approval Received 11/7/14
• Update for changes in State Statutes
Benefit Enhancement Project
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Apply to IRS for Private Letter Ruling• 9 to 12 month review period
Present revised Ordinance to City Council for consideration• January 2015
Next Steps
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Questions?