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City of Muskegon
City C01mnission Worksession
July 9, 2007
City Commission Chambers
5:30PM
AGENDA
I. Resignation and Appointments from Various Boards.
2. Proposed COLA for Retirees.
3. Any Other Business.
4. Adjournment.
City of Muskegon
City Commission Worksession
July 9, 2007
City Commission Chambers
5:30PM
MINUTES
Present: Commissioners Warmington, Davis, Gawron, Shepherd, Spataro, Wierenga,
and Carter.
Absent: None.
2007-56
Resignation and Appointments from Various Boards
Motion by Commissioner Shepherd, seconded by Commissioner Carter to
recommend acceptance of the resignations of Michael Amrhein - Land Reutilization
Committee, Jessica Elsey - DDA, Quintan Cooley - Citizens Police Review Board,
and Craig V. Brown (deceased)- District Library Board.
MOTION PASSES
Motion by Commissioner Wierengo, seconded by Commissioner Davis to
recommend appointment of Barbara Kuipers to the Citizen's Police Review Board.
MOTION PASSES
Motion by Commissioner Wierengo, seconded by Commissioner Shepherd to
recommend appointment of Willie German, Jr. to the Equal Opportunity
Committee.
MOTION PASSES
Proposed COLA for Retirees
Tim Paul, Finance Director, is requesting that MERS be authorized to pay a 1. 80%
COLA to retirees retired five years as of January I, 2007, payable in two equal parts July
I, 2007 and January I, 2008. It is also requested to authorize future COLA adjustments
to be made effective each January I with the next COLA review being January I, 2009.
The Commission will consider the request at its meeting Tuesday, June 12, 2007.
Adjournment
Motion by Commissioner Carter, seconded by Commissioner Shepherd to adjourn
at 5:55 p.m.
MOTION PASSES
~~')\~~ iA'Ali'-,\
Ann Marie Becker, MMC
City Clerk
Date: July 2, 2007
To: Community Relations Committee
From: City Clerk's Office
RE: Resignation and Appointments from Various Boards
SUMMARY OF REQUEST: The following people have resigned from their
respective committees. Applications are attached for those applicants who
expressed an interest to serve on the board:
Land Reutilization Committee: Resignation of Michael Amrhein, term expires January
31, 2009. (Requires a licensed residential contractor). Potential applications attached.
Potential Applicant:
Steve Warmington, Resident, (Application does not indicate licensed contractor)
DDA - Resignation of Jessica Elsey, term expires January 31, 2010. (Required to be a
resident of the district).
No potential applicants.
Citizens Police Review Board - Resignation of Quinlan Cooley, term expires January 31,
2009 (Citizen at Large).
Potential Applicants:
~arbara Kuipers, Resident
Frank Towsley, Resident
District Library Board - Death of Craig V. Brown, term expires June 30, 2011 (Mayor, City
Commission appointment)
Potential Applicant:
Bertha Williams, Non-resident,
Equal Opportunity Committee - Vacancy for Citizen.
Potential Applicant:
~illie German, Jr. Resident
m1chael J.a. amrhe1n
RECEIVED
May 16, 2007 MAY ? 1 7007
CITY OF MUSKEGON
PLANNING DEPARTMENT
City of Muskegon
Department of Planning
P.O. Box 536
Muskegon,MI49443
RE: Land Reutilization Committee
Dept. of Planning:
I am writing to inform the City of Muskegon that, due to my activities in Milwaukee, I am no longer in a
position to serve on the Land Reutilization Committee. Of course, I write this with no great pleasure as I
have found it immensely satisfying to be involved with, and to have worked on behalf of, the committee
and its interests. I will be able to recall fond memories of the association and experiences I have had with
the Staff members, City Commissioners and other volunteers who have also contributed valuable time in
serving the interests of the City and community. I wish success and many more fulfilling experiences for
those who continue to expend time and energies with the Committee.
Regards,
~
Michael J. A. Amrhein
Jss/MJAA
925 East Wells Street Milwaukee, WI 53202
RECEIVED
Fl:B O ?001
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Please Type or Print. Applications will be kept on file for one year. All applicants subject to a background check.
(Street, City, State, Z1 )
HOMEPHONE#: - 0 1 7 55 qq '8'{ WORK PHONE#: ) 3 / 7;)1 q'J,5()
E-MAIL ADDRESS: S-k:.µMn. WQ.JfYI ,yv}xrc,f'\ ffi h[i\{1,,{Cd-\f ,. L- O {VI e
OCCUPATION frSS ,<:;:,\tu)-f-V, Ck...v,es,d~n +-= EMPLOYER: IUA-H'or:c( t/ty P«./J)t_,
(If retired, give former occupation)
EDUCATION: Unclergr,4 (,tJ/ alv--1~/ M!lJ Q/ I f'\ /l-1a../4nn:; ·/ /l1a,_,l'l4.r;e,rv,1-1/-
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PERSONAL REFERENCES: (Please list th~ ame and phone numbers of three personal references)
1. /Ua_r c,; Lou Acl-tk vhoH- J ~ I ~ 7 .)7 -- q It.--/ l/
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PLEASE INDICATE BOARDS/COMMISSIONS/COMMITTEES INTERESTED IN SERVING ON - MARKING #1 AS
YOUR FIRST PREFERENCE:
( ) Board of Canvassers ( ) Housing Code Board of Appeals
( ) Board of Review ( ) Housing Commission
( ) Citizen's Police Review Board ( ) Income Tax Board of Review
( ) City Employees Pension Board W and Reutilization Committee
( ) Civil Service Commission ( ) Leisure Services Board
( ) CDBG-Citizen's District Council ( ) Loan Fund Advisory Committee
( ) Construction Board of Appeals ( ) Local Develop. Finance Authority
( ) District Library Board ( ) Local Officer's Compensation Com.
( ) Downtown Development Authority/Brownfield Board ( ) Planning Commission
( ) Election Commission ( ) Police/Fireman's Pension Board
( ) Equal Opportunity Committee )4:Public Relations Committee
( ) Historic District Commission ( ) Zoning Board of Appeals
( ) Hospital Finance Authority
Are you willing to serve on other boards/committees not checked off above? YES (No (Circle one)
\)
* Attach Additional Sheets or Resume if Desired.
Return this form to: City Clerk's Office, 933 Terrace St., P. 0 . Box 536, Muskegon, Ml 49443-0536
- V -
Page l of I
Potter, Linda
----------------------~-------~--
From: Jessica Elsey [JElsey@nccsweb.org]
Sent: Monday, May 07, 2007 9:05 AM
To: Potter, Linda
Subject: DDNBRA resignation
Hi Linda - I am writing to submit my resignation from the City of Muskegon Downtown Development Authority and Brownfield
Redevelopment Authority Boards. I have started a new job in Fremont and unfortunately can't make it to meetings during the day
in Muskegon anymore.
Thank you - I've enjoyed the opportunity to serve on these boards.
Sincerely,
'J asslca eesay
476 WMuskegon Ave
231-329-0764
5/7/2007
Resignation Letter
To: Denny Powers
From: Quintan Cooley
Date: May 25, 2007
Please be advised that I am voluntarily resigning from my position on the Police Board,
because I started to work for J.B. Hunt, on May 19, 2007, and 1 am presently on the road.
If any questions please call me at (231) 750-2991 cell#.
Thank You
Quinlan Cooley
Date: 5-Jtj -0 7
CITY OF MUSKEGON
TALENT BANK APPLICATION
Please Type or Print. Applications will be kept on file for one year. All applicants subject to a background check.
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PERSO A REFERENCES: (Please list the name and phone numbers of three personal reference!!)
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(Phone Nurriber) 'j_ J, 5·'f
PLEASE INDICATE BOARDS/COMMISSIONS/COMMITTEES INTERESTED IN SERVING ON - MARKING #1 AS
YOUR FIRST PREFERENCE:
{ ) Board of Canvassers ( ) Housing Code Board of Appeals
( ). ~oard of Review ( ) Housing Commission
~itizen's Police Review Board ( ) Income Tax Board of Review
( ) City Employees Pension Board ( ) Land Reutilization Committee
( ) Civil Service Commission ( ) Leisure Services Board
( ) CDBG-Citizen's District Council ( ) Loan Fund Advisory Committee
( ) Construction Board of Appeals ( ) Local Develop, Finance Authority
( ) District Library Board ( ) Local Office~s Compensation Com.
( ) Downtown Development Authority/Brownfield Board ( ) Planning Commission
( ) Election Commission ( ) Police/Fireman's Pension Board
( ) Equal Opportunity Committee ( ) Public Relations Committee
( ) Histortc Distrtct Commission ( ) Zoning Board of Appeals
( ) Hospital Finance Authority
~··\
Are you willing to serve on other boards/committees not checked off above? YES ~ (Circle one)
• Attach Additional Sheets or Resume if Desired.
Return this form to: City Clerk's Office, 933 Terrace St., P. 0. Box 536, Muskegon, Ml 49443-0536
- V -
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HOME PHONE#: ~ ~ , - 7 :J.. "J..- )f ';)..b'-1 WORK PHONE#:._ _ _ _ __ __ _ __
OCCUPATION: Mrt-/tift)){tNcE ·Ice.I/ EMPLOYER: tfs INDusT~tES'
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PERSONAL & coMMUNITY AcT1v1T1Es: flM ttTvcR ~ DJO~ (J/1 ERC€ µc. ~ S-l"g If;cc<: Mo'i I<. C,,
Why would you be a good member of this committee? What do you bring to the committee ?
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PERSONAL REFERENCES: (Please list the name and phone numbers of three personal references)
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PLEASE INDICATE BOARDS/COMMISSIONS/COMMITTEES INTERESTED IN SERVING ON - MARKING #1 AS
YOUR FIRST PREFERENCE:
( ) Board of Canvassers ( ) Housing Code Board of Appeals
( ) Board of Review ( ) Housing Commission
,W..CeFl'lelet)' Gemmittee- ( ) Income Tax Board of Review
- Citizen's Police Review Board ( ) Land Reutilization Committee
( ) City Employees Pension Board ( ) Leisure Services Board
( ) Civil Service Commission ( ) Loan Fund Advisory Committee
( ) CDBG-Citizen's District Council ( ) Local Develop. Finance Authority
( ) Construction Board of Appeals ( ) Local Officer's Compensation Com.
( ) District Library Board ( ) Planning Commission
( ) Downtown Development Authority/Brownfield Board ( ) Police/Fireman's Pension Board
( ) Election Commission ( ) Public Relations Committee
( ) Equal Opportunity Committee ( ) Zoning Board of Appeals
( ) Historic District Commission
( ) Hospital Finance Authority
Are you willing to serve on other boards/committees not checked off above? YES NO (Circle one)
• Attach Additional Sheets or Resume if Desired.
Return this form to: City Clerk's Office, 933 Terrace St., P. 0. Box 536, Muskegon, Ml 49443-0536
- V -
//4n Mz_a,cde'll/
CITY QEMU...'\KE.GQN
I Date:,//2/-c?t'./2 I
TALENT BANK APPLICATION
Please Type or Ptint. Applications will be kept Ofl file for one year. All applicants subject to a background check.
PLEASE INDICATE BOARDS/COMMISSIONS/COMMITTEES INTERESTED IN SERVING ON - MARKING #1 AS
YOUR FIRST PREFERENCE:
(_ ) Bo~f Canvassers
(\.}Board of Review
tJ@ilizen's Police
2 Review
iMrr Board
( ) City.l:mployees Pension Board
(\,}-e"'.!)lil-Service Commission
\\.rCgBG-Citizen's District Council
<µ-e-__311struction Board of Appeals
((.),UJ.Wit! Library Board
(~jlYJAtown Development Authority/Brownfield Board
tvrfjsction Commission
al Opportunity Committee
(l,,j"Fl~c District Commission
~ospital Finance Authority
Are you willing to serve on other boards/committees not checked off above?~ NO (Circle one)
• Attach Additional Sheets or Resume if Desired. l7
Return this form to: City Clerk's Office, 933 Terrace St., P. 0. Box 536, Muskegon, Ml 49443-0536
- V -
CITY OF MUSKEGON
Date: l/g/o '.I
I I
TALENT BANK APPLICATION
Please Type or Print. Applications will be kept on file for one year. All applicants subject to a background check.
NAME:J{;J; l\.1eJ C'rer ma D,,
HOME ADDRESS: //Ji L/0 ~ ntoe&
(Street, City, State, Zip)
HOME PHONE#: c:t-'3 11 i:za ~- :18" 1J. woRKPHONE#: rJJD ~17'1...,abLL<-:
E-MAILA• DREss: w5errnl{n 3 @, ho+ mo 1' I, c.o /VJ
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EDUCATION: Lia.che/or Oe3 re, f2.._; /a Bos; aes s AJrrJ/111 s-irct +1on/fY1,irk.etin3
PERSONAL & COMMUNITY ACTIVITIES: ( 1/.S ft </ -±ra·,nICd W ;+VJ (o rn rrHm I -ht CC)~ (l-+
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PERSONAL REFERENCES: (Please list the name and phone numbers of three personal references)
1. Aor\I
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Qq k:es
(Name) /;) 31 f hone Number)
2. B,-__y~e~Nam:r('..,.,: "- 7'2J. - O,;l S,-.;l
(Phone Number)
3. °"S r- -:Se
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(Phone Number)
7a 7·--ost/1
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PLEASE INDICATE BOARDS/COMMISSIONS/COMMITTEES INTERESTED IN SERVING ON - MARKING #1 AS
YOUR FIRST PREFERENCE:
(0'Board of Canvassers (0'Housing Code Board of Appeals
(-...yBoard of Review ('1'fjousing Commission
(-.,{Citizen's Police Review Board ( ·0ncome Tax Board of Review
( ) City Employees Pension Board (lr{Land Reutilization Committee
(.jcivil Service Commission (vrt,_eisure Services Board
(0 CDBG-Citizen"s District Council ( i(°Loan Fund Advisory Committee
( ) Construction Board of Appeals ('-1(.ocal Develop. Finance Authority
(v(District Library Board ( ) yical Officer's Compensation Com.
('vf'[lowntown Development Authority/Brownfield Board (4"f'lanning Commission
( ¥Iection Commission ( ) Police/Fireman"s Pension Board
(~qual Opportunity Committee (#°ublic Relations Committee
( ) Historic District Commission
(0Hospital Finance Authority n
(y,2oning Board of Appeals
Are you willing to serve on other boards/committees not checked off above?~ NO (Circle one)
* Attach Additional Sheets or Resume if Desired.
Return this form to: City Clerk's Office, 933 Terrace St. , P. 0 . Box 536, Muskegon, Ml 49443-0536
- V -
Date: July 10, 2007
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Proposed COLA for Retirees
SUMMARY OF REQUEST: One of the considerations made when we moved to
MERS was that we would mimic as closely as possible the pension COLA program in place
since the mid-1990's within the structure of MERS. In a nutshell, the old COLA program
provided permanent cost of living increases to pensioners retired five years or more that were
capped at 75% of the CPI. COLA's were payable only in years when investment
performance exceeded actuarial estimates (8%). Due to lagging investment performance, no
COLA payments have been made for the last two years.
Investment performance has improved and, at this time, we are recommending approval of a
1.80% COLA increase payable to pensioners retired five years or more as of 1/1/07.
Standard MERS practice is to implement COLA provisions each January, but they have
agreed to implement this COLA for us as of July 1. We recommend the COLA be divided
into two equal parts with 0.90% awarded 7/1/07 and 0.90% awarded 1/1/08. Future COLA
increases would then be made in January, if warranted.
The 1.80% COLA is based on a MERS actuarial review of investment performance, change
in the CPI for 2006 and staff discussions with actuaries concerning the financial condition of
the account.
FINANCIAL IMPACT: The proposed COLA adjustment will increase the accrued
liability of the retirees' account $546,870 and leave the account just over 101 % funded.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Authorize MERS to pay a 1.80% COLA to retirees
retired five years as of 1/1/07, payable in two equal parts July 1, 2007 and January 1, 2008.
Authorize future COLA adjustments to be made effective each January 1 with the next COLA
review being January 1, 2009.
COMMITTEE RECOMMENDATION: None
248.799.9000 phone
GRS
Gabriel Roeder Smith & Company One Towne Square
Consulrnnts & Actuaries Suire 800 248.799.9020 fax
Southfid<l, MI 48076-3723 W\\.'w.gt1 brit'lrocdcr..:om
June 21, 2007
Ms. Anne M. Wagner
Chief Executive Officer
Municipal Employees' Retirement System
of Michigan
1134 Municipal Way
Lansing, Michigan 48917
Re: Supplemental Valuation for Muskegon, City of (6116), Division(s) 10, 20
Dear Anne:
After conversations with the City of Muskegon, we have been requested to provide additional
information for the attached supplemental with the same date as this letter. The attached supplemental
is a standard MERS supplemental in that the results are based on the results of divisions 10 and 20 as
currently reported in the December 31, 2006 annual valuation.
The attached supplemental values a one-time 2.0% increase in retirement benefits, effective July 1,
2007, for all members in these divisions who have been retired at least five years. The list of retirees
impacted was provided by the City. Certain members eligible for the retirement benefit increase are in
receipt of a $50 monthly benefit, as payment for opting out of retiree healthcare. As requested by the
City, we have not applied the retirement benefit increase to this $50 monthly benefit. The 2.0%
increase in retirement benefits has been applied to the benefit amounts (net of this $50 monthly
benefit) currently in effect, as reported for the December 31, 2006 annual valuation.
It is our understanding that the City is interested in the increase in cost to the System for various one-
time increases for these groups other than the 2.0% valued in the attached supplemental report. The
cost of the various alternatives can be discerned by prorating the results in the "Difference" column of
the 2.0% increase in retirement benefits. For example, the cost of a one-time 1.0% increase in
retirement benefits is one-half the results of the 2.0% increase shown in the "Difference" column.
Ms. Anne M. Wagner
June 2 I, 2007
Page2
When considering the implementation of a Flexible E, one could consider Divisions IO and 20
collectively as one. Were the assets and liabilities for Divisions IO and 20 combined as of December
3 I, 2006 the results of both the December 31, 2006 annual valuation and the June 21, 2007
supplemental valuation would be changed. These changes are summarized in the table below.
2006 Annual Supplemental Dated
Divisions IO and 20 Combined Valuation June 21, 2007 Difference
Actuarial Accrued Liability $42,217,465 $42,825,099 $607,634
Valuation Assets $43,237,006 $43,237,006 0
Unfunded Accrued Liability $ (1,019,541) $ (411,907) $607,634
Percent Funded 102.4% 101.0% (1.4%)
Total Regular Employer Contribution
for the 2008 fiscal year $0 $0 NIA
As seen above, the combined Divisions IO and 20 would be overfunded by $1,019,541 as of
December 3 I, 2006 with $0 contribution due for the 2008 fiscal year for this group. The increase in
liability associated with the proposed 2% one-time benefit adjustment is $607,634. The impact of the
proposed 2% one-time increase valued in the June 21, 2007 supplemental report would reduce the
combined overfunding to $411,907, and the contribution for the combined Division would remain at
$0 for the 2008 fiscal year.
Please feel free to contact me with comments or questions.
Sincerely,
J1~/L
Jim Koss
WJK:Ir
Enclosures
Gabriel Roeder Smith & Company
248.799.9000 phone
GRS Gabriel Roeder Smith & Company One To\Vne Square
Consulrnnts & Ai.:ruarit:s Suite 800 248.799.9020 fax
Southfield, _;vn 48076-3723 www.g,1briclroeder.com
June 21, 2007
Ms. Anne Wagner
Chief Executive Officer
Municipal Employees' Retirement System of Michigan
1134 Municipal Way
Lansing, Michigan 48917
Subject: Supplemental Valuation for Muskegon, City of (6116), Division(s) 10, 20
Dear Anne:
Attached are the results of a supplemental valuation prepared for Muskegon, City of in order to determine the
contributions necessary to support the following Benefit Program under the Municipal Employees' Retirement
System of Michigan, in accordance with Act. No. 427 of the Public Acts of 1984, as amended, and the MERS
plan document as revised:
Division Change in Benefit
General Rct ( 10) Flexible E (one time 2.0% increase for certain retirees)
PLC/Fire Ret (20) Flexible E (one time 2.0% increase for certain retirees)
Please see the Important Comments, innnediately following this cover letter, for important information
which is essential to understanding the results presented in this report. In addition, please review the Impact
of Adopting the Benefits page(s) following the Employer Computed Contributions page(s).
Sincerely,
Rebecca Stouffer
Senior Analyst
Jim Koss, ASA
Actuary
rpc_id: 25260
MERS Supplemental Valuations - Important Comments
1. Effective July 1, 2006, Section 43C of the MERS Plan Document includes the following
requirements, which are not modifiable:
a.) At the time a supplemental actuarial valuation is requested, and at the time a new
benefit provision is adopted, the employer must be current in the payment of all
required employer and member contributions.
b.) Both the requesting division and the participating municipality or court must be
not less than 50% funded on an actuarial basis as of the last December 31
valuation date, based on the actual benefit provisions in effect when the
supplemental valuation is requested or completed. The governing body may
make a cash contribution, or transfer employer assets from a different division, or
both, in order to meet the 5 0% requirement. If the requirement is not met, MERS
and its actuary will not complete the requested supplemental valuation.
c.) The proposed benefit provisions may not be adopted if the results of the
supplemental valuation disclose there would be a funded percentage less than
50% on an actuarial basis (using the same valuation date as in requirement (b.)
for either the division or the entire municipality or court. The governing body
may make a cash contribution, or transfer employer assets from a different
division, or both, in order to meet the 50% requirement.
2. The reader of this report should keep in mind that actuarial calculations are by their
nature imprecise, as they are mathematical estimates based on current data and
assumptions of future events (which may or may not materialize).
3. Actuarial calculations can and do vary from one valuation year to the next, sometimes
significantly if the group valued is very small (less than 30 lives). As a result, the cost
impact of a benefit change may fluctuate over time, as the demographics of the group
changes.
4. The calculations in this report were prepared based on December 31, 2006 demographic
and financial information unless noted elsewhere in the report.
5. The valuation date is December 31, 2006.
6. The valuation methods and Retirement Board-approved assumptions are consistent with
those used in the December 31, 2006 Annual Actuarial Valuation, unless noted
elsewhere in the report.
7. In the event that more than one plan change is being considered, the user of this report
should remember that the results of separate actuarial valuations cannot be added
together. The total can be considerably greater than the sum of the parts due to the
interaction of various plan provisions with each other and with the assumptions used.
8. Retirement benefits and employer contributions are based on a percentage of members'
gross pays, including base pay, overtime pay, longevity pay, and several other
miscellaneous items. If total gross payroll exceeds the reported salaries, the dollar
contribution amounts shown in this report should be increased proportionately. The
above percentages of payroll will not be affected, however.
9. For divisions that are closed to new hires, the Retirement Board has directed that the
amortization period for positive unfunded liabilities is decreased annually by 2 years
until the period reaches 5 years (Amortization Policy for Closed Divisions Within Open
Municipalities, adopted February 12, 2003).
10. The results in this report were based on information provided to the actuary by the
municipality and MERS. The actuary is unaware of any additional information that
would impact these results. If the information in the "Request for Supplemental
Gabriel Roeder Smith & Company -I-
MERS Supplemental Valuations - Important Comments
Valuation" is incorrect or incomplete, the actuary does not assume responsibility for the
accuracy of that information, and the requester (or reader) of this valuation report may
not rely on the results and should advise MERS promptly.
11. The results in this report do not show the potential impact that the adoption of the revised
benefits may have on other post-employment benefits (such as retiree health care
insurance) or ancillary benefits (such as life insurance).
12. If the user of this report is not sure how to interpret certain results in the report or how to
read the report, they should contact the MERS Employer Services Division (800)
767-6377 or MERS' actuary before relying on the results in this report.
Gabriel Roeder Smith & Company -2-
Muskegon, City of (6116) - General Ret (Division 10)
Employer Computed Contributions -- Based on 12/31/2006 Actuarial Valuation
Current Proposed
Benefits Benefits Difference
l. Benefits
a) Benefit Formula B-3 - 80% Max B-3 - 80% Max
b) Normal Retirement Age 60 60
c) Vesting Provision V-5 V-5
d) F50 Ret Condition - -
e) F55 Ret Condition - -
t) F(N) Ret Condition - -
g) Rule ofX - -
h) FAC Period FAC-3 FAC-3
i) RS50 Percent - -
j) DROP+ - -
k) D-2 - -
1) Benefit E - 2.0% (7/1/2007) 2.0% (7/1/2007)
m) Benefit E-1 - -
n) Benefit E-2 - -
o) LoadforSickLeaveinFAC - -
p) Member Contribution Rate 0.00% 0.00%
2. Member Counts
a) Active 0 0 0
b) Retired 156 156 0
c) Vested Former Members 20 20 0
d) Total 176 176 0
$0 $0 $0
3. Annual Payroll
4. Actuarial Value of Assets $13,711,712 $13,711,712 $0
5. Actuarial Accrued Liability
a) Active $0 $0 $0
b) Retired 13,629,021 13,820,740 191,719
c) Vested Former Members 1,040,033 1,040,033 0
d) Pending Refunds 0 0 0
e) Total $14,669,054 $14,860,773 $191,719
6. Unfunded Accrued Liability (UAL) (5e - 4) $957,342 $1,149,061 $191,719
7. Division Percent Funded (4 I Se) 93.5% 92.3% (1.2%)
8. Cost as an Annual Dollar Amount
a) Employer Normal Cost $0 $0 $0
b) Amort. of UAL (over 13 years) 90,636 110,652 20,016
c) Total Long Term Employer Contribution (Sa+ Sb) 90,636 110,652 20,016
d) Overfunding Credit 0 0
e) Total Regular Employer Contribution$ (Sc+ 8d) $90,636 $110,652 $20,016
The preceeding Important Comments pages and concluding Impact of Adopting Benefits page are incorporated by reference herein.
Gabriel Roeder Smith & Company -3-
Muskegon, City of (6116) - PLC/Fire Ret (Division 20)
Employer Computed Contributions -- Based on 12/31/2006 Actuarial Valuation
Current Proposed
Benefits Benefits Difference
l. Benefits
a) Benefit Formula 2.75% - 80% Max 2.75% - 80% Max
b) Normal Retirement Age 60 60
c) Vesting Provision V-10 V-10
d) F50 Ret Condition - -
e) F55 Ret Condition - -
f) F(N) Ret Condition - -
g) Rule ofX - -
h) FAC Period FAC-3 FAC-3
i) RS50 Percent - -
j) DROP+ - -
k) D-2 - -
l) Benefit E - 2.0% (7/1/2007) 2.0% (7/1/2007)
m) Benefit E-1 - -
n) Benefit E-2 - -
o) Load for Sick Leave in FAC - -
p) Member Contribution Rate 0.00% 0.00%
2. Member Counts
a) Active 0 0 0
b) Retired 150 150 0
c) Vested Former Members 8 8 0
d) Total 158 158 0
3. Annual Payroll $0 $0 $0
4. Actuarial Value of Assets $29,525,294 $29,525,294 $0
5. Actuarial Accrued Liability
a) Active $0 $0 $0
b) Retired 26,856,588 27,272,503 415,915
c) Vested Former Members 691,823 691,823 0
d) Pending Refunds 0 0 0
e) Total $27,548,411 $27,964,326 $ 415,915
6. Unfunded Accrued Liability (UAL) (5e - 4) ($ I ,976,883) ($ 1,560,968) $ 415,915
7. Division Percent Funded (4 / 5e) 107.2% 105.6% (1.6%)
8. Cost as an Armual Dollar Amount
a) Employer Normal Cost $0 $0 $0
b) Amert. of UAL (over 13 years)@ (206,352) (162,936) 43,416
c) Total Long Term Employer Contribution (Sa+ Sb) (206,352) (162,936) 43,416
d) Overfunding Credit (49,776) (39,312)
e) Total Regular Employer Contribution$ (Sc+ 8d) $0 $0
The preceeding Important Comments pages and concluding Impact of Adopting Benefits page are incorporated by reference herein.
@ For divisions with assets in excess ofliabilities, the UAL is amortized over 10 years.
Gabriel Roeder Smith & Company -4 -
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