CITY COUNCIL AGENDA ITEM
Memo Date: October 28, 2020
Agenda Date: November 10, 2020
Prepared By: Tammy B. Gemmati, PHR, Administrative Services Director
Through: Stockton Whitten, City Manager
Requested Action:
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Approval of Ordinance No. 19-2020/2nd and final reading: Related to Amending Chapter 2, Administration, Article VI General Employees' Retirement Plan due to legislative, Internal Revenue Code compliance changes, and board composition changes amending Section 2-107, Board of Trustees; Section 2-110, Benefit Amounts and Eligibility; Section 2-111, Pre-Retirement Death; Section 2-120, Miscellaneous Provisions; Providing for incorporation into the Code; Providing for severability of provisions; Repealing all ordinances and resolutions in conflict herewith and providing an effective date. End
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BACKGROUND:
The City of Cocoa General Employees' Retirement Plan is currently a closed retirement plan with only two active employee participants, which both are in the Deferred Retirement Option Plan (DROP). All other covered members are already retired from employment. In September 2020, pension board member Vincent Knowles separated from the City upon the end of his DROP, which brought an issue to the pension board's attention that the language in the City's Code involving the make-up of the Board of Trustees needs to be updated due to the low number of active employees in the General Employees' Retirement Plan.
Additionally, in December 2019, United States Congress and President Trump signed into law the "Setting Every Community Up for Retirement Enhancement (SECURE) Act. This Act includes a number of federal tax law changes with the most significant change to increase the age for required minimum distributions in retirement plans from 70 1/2 to 72.
Both of these proposed changes were presented and discussed at the August 19, 2020 pension board meeting and then the board's pension attorney Stu Kaufman drafted an ordinance proposing code...
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