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PENSION FUND Administrator Chandler presented the following memo dated October 13, 1992: TO: Board of County CommissionersDATE: October 13, 1992 FILE: SUBJECT: PENSION FUND /James FROME. Chandler REFERENCES: ounty Administrator When the City of Vero Beach Fire Department was transferred to the South County Fire District, employees were extended an option to remain in the city pension plan. There are currently - ten (10) active members in the Plan. The Board of Trustees of the City of Vero Beach Fireman's Relief and Pension Fund has requested that the number of years used in computing the final average earnings for a prospective retiree be reduced from five years to three years. To offset the expense, the Plan's actuary has proposed increasing the investment earning actuarial assumption from 6.5% to 7%. The rate of return during the last 10 years has averaged 12 percent per year. In discussing the proposal -with - Tom Nason, he advised that the Fund is in an extremely sound financial position. With the actuarial assumption modification, he indicated the proposal would not result in any expense to the County. The reduction in years would be a benefit not received by those Fire Department employees in the State Plan. The State Plan provides for the five year average. The State Plan is a non-contributory plan, as opposed to the employee 7% of salary contribution required by the City Plan. Based on that differential and no projected expense to county, I would concur with the proposed increased benefit. If approved by the Commission, the City will schedule a public hearing to consider adopting an ordinance on second reading to provide for the change. ON MOTION by Commissioner Scurlock, SECONDED by Commissioner Bird, the Board unanimously approved the proposed changes in the Fire Department employees Pension Plan, as recommended by staff. 15 1. Boa 87 fA�E 66� OCT 201992