HomeMy WebLinkAbout2518 RESOLUTION NO. 2518
A RESOLUTION ADOPTING A PROPOSED RETIREMENT PLAN FOR THE NON-UNIFORM
EMPLOYEES OF THE CITY OF LITTLE ROCK, ARKANSAS, SUBJECT TO CERTAIN
CONDITIONS; AUTHORIZING THE CITY MANAGER TO DETERMINE THE NUMBER OF
CITY EMPLOYEES DESIRING TO PARTICIPATE IN SAID PROPOSED PLAN; AND
FOR OTHER PURPOSES .
WHEREAS , it is desired by a number of non-uniform employees of the
City of Little Rock that a Retirement Plan be created for their benefit;
and
WHEREAS , a proposed Retirement Plan for non-uniform employees has
been prepared by the City Manager; and
WHEREAS, provided seventy-five per cent (75%) of the non-uniform
employees of the City of Little Rock agree to participate in said proposed
retirement plan, it is desirable that the plan be created and maintained;
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY
OF LITTLE ROCK, ARKANSAS :
SECTION 1. The Board of Directors of the City of Little Rock hereby
authorizies and adopts, subject to conditions hereinafter set forth, a
Proposed Retirement Plan for Non-Uniform Employees of the City of Little
Rock, Arkansas, as follows :
paWOLD t),r f hihgr-,NT MAN
VIE it.V.PLort.k.s UF GETZ OF LITTLE JCK, ARKANSA..;
Deoisber 8, 1959
FOREWORD
The following pages are in reply to the request for proposals
for a group retirement plan for the employees of the City of Little Rock,
Arkansas. The specifications for the proposed plan have been prepared by
the City.
The attached Table (a) shows the past service pensions tabulated
by present attained age. The cost of these pensions at retirement is also
shown and the present value of these costs is calculated.
Table (b) shows illustrative monthly current service pensions
based on our present deferred annuity purchase rates. Also attached is
the worksheet from which Table (b) was prepared showing separately the il-
lustrative pensions from the employees' contributions and from the City'°
contributions.
The attachei Table (c) shows MONY's earned interest rates back
through 1945. Rates for earlier years can be obtained if necessary but
this will involve arather substantial amount of research. We feel that the
rates shorn indicate the trend in our interest earnings rather clearly. In
connection with Item (c) of the instructions, we attach our annual report
to policyholders for 1958. This summarizes the information and the Annual
Statement f ur . ish e d to New York State and other states in which we do
business.
Also attached is a discussion of Item (d) of the City's instruc-
tions stating the guarantees and options available under the proposed plan.
If any further information is desired by the City, we will be
hippy to amplify any of the attached material as requested.
UTUAL 0 F N EW Y ORK
2987-37 9-57—Ptd. in U.S A.
City of Little Rock - Proposed Retirement Plan
Table (a) - Past Service Cost
Monthly Amount Of Cost Of Present
Past Service Pensions Pension At Value Of
ASS Males Females Retirement Pension
3.34 1 560 1 23
2?
�- 17
�3 - 2.25 377 17
�4 5.18 1.18 94b 7 42
25 5.34 -
26 10.04 2.55 1,869 102
27 6.09 4.05 1,553
28 26.33 1.08 3,959 285
29 15.98 5.10 3,148 248
30 14.91 - 2,140
31
28.73 1.13 4,3i3 407 32 34.18 1.33 5,128 529
498
33 4,
27.39 2.93 1 498
34 60.61 4.46 9,446 685
35 35.53 ••• 5,099 786
36 31.21 5.3C 5,366 1 786
37 55.32 - 7,938 1,201
4�►'^E 6,925 1,671
39 46.90
151.40 12.75
5.33 22,620 4,625
41 12,464 2,762
86.86 � a
42 115.88 - 16,629 3,98,
42 7,181 1,864
43 43.81 5.33
4,
44 120.33 26.85 21 770 6,107
- 12,385 3,752
45 86.31 15,395 5,030
46. 107.28 _ 16,223 5,706
113.05 6,960 2,629-48 48.50 22.95 24,576 9,941
49 144.44 8,023 3,462
51 93.47 28.80 18,243 8,370
51 93.47 23,637 11,497
164.72 - 22,690 11,67b
52 139.44 15.98 1? 676
54 115.76 48.00 25,662 8,408
11.55 17,333
55 107.29 8.40 18,256 10,362
5 G 1.21.41
57 114.51 19.08 16,371 1 10,281 674
58 177.87 - 23,034
59 65.41
4,408
3�03� 1,601
6C; 20.5`. 3.90 15,635 8,718
61 129.86 -
2,712
62 38.16 - 4,597 4,073 2,545
6� 33.83 - 5,837 3,871
64 48.48 ..
b5 91.50 11,017 7,770
$178,970 (Eased on Table 3 of The Actuary's
Total Past Service Pension Handbook and interest at 4%)
Ratio of 2% of Payroll to Past Service Cost 12.34%
Which will fund past service in about 10 years
UTUAL 0 F N EW Y ORE 123
2987-37 9-57-- Ptd ,n U.S.A.
. .tea
City of Little Rook - Proposed Retirement Plan
Table (b) - Illustrative Monthly Current Service Pensions
Ages At Entry
Monthly �..�Males, Females
Sala$200 $89.00 $70.51 5� 4.66 $41.30 $29.93 $20.30 $73.36 58.22 $45.29 $34.28 $ 5
225 100.13 79.32 61.52 46.47 33.67 22.83 82.53 65.49 50.96 38.57 28.07 19.14
250 111.26 88.13 68.35 51.63 37.41 25.38 91.71 72.78 56.62 42.86 31.19 21.28
275 122.38 96.95 75.19 56.78 41.15 27.92 100.87 80.05 62.27 47.13 34.25 23.40
300 133.51 105.76 82.02 61.95 44.89 30.45 110.04 87.33 67.94 51.42 37.43 25.54
325 144.63 114.57 88.86 67.11 48.63 32.99 119.22 94.61 73.60 55.70 40.55 27.66
350 155.76 123.39 95.69 72.28 52.37 35.52 128.39 101.89 79.26 59.59 35.19 29.78
375 166.88 132.20 102.53 77.44 56.11 38.06 137.55 109.16 84.93 64.27 46.79 31.92
400 178.00 141.01 109.36 82.60 59.85 40.50 146.72 116.44 90.59 68.56 49.90 34.04
425 189.14 149.83 116.20 87.76 63.59 43.14 155.90 123.72 96.24 72 :84 53.02 36.06
450 200.26 158.64 123.03 92.92 67.33 45.68 165.07 131.00 101.90 77.13 56.14 38.30
475 211.39 167.45 129.87 98.09 71.07 48.21 174.23 138.27 107.57 81 .41 59.26 40.42
500 222.51 176.27 136.70 103.25 74.83 50.75 183.41 145.56 113.23 85.70 62.38 42.56
525 233.63 185.09 143.54 108.41 78.57 53.29 192.58 152.83 118.89 89.99 65.49 44.68
550 244.76 193.88 150.37 113.58 82.31 55.82 201.75 160.10 124.56 94.27 68.61 46.80
575 255.87 202.69 157.21 118.74 86.05 58.36 210.91 167.38 130.22 98.56 71.73 48.94
600 267.02 211.51 164.04 123.90 89.79 60.90 220.09 174.66 135.87 102.84 74.85 51.06
625 278.14 220.32 170.88 129.06 83.53 63.44 229.26 181.94 141.54 107.13 77.97 53.18
650 289.26 229.13 177.71 134.22 97.27 65.98 238.43 189.21 147.20 111.41 81.08 55.32
675 300.39 237.95 184.55 139.39 101.01 68.51 247.59 196.49 152.86 115.70 84.20 57.44
700 311.51 246.76 191.38 144.55 104.75 71.05 256.77 203.77 158.52 119.98 87.32 59.58
49!737 9-37-Did in U.S.A. M UTUAL 0 F N E W Y ORK
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City of Little Rock - Proposed Retirement Plan
Table (b) Work Sheet
Illustrative Monthly Current Service Pensions
Ages at Entry - Male Lives
25 _ 30 35 40 45 50
Monthly From From From From From From From From From From From From
Salary EMp. CitJ �np. Cites Ea�p. City _post_ City E p. City I np. City
$200 $40.33 $48.67 $32.08 $38.43 $25.04 $29.64 $19.03 $22.27 $13.92 $16.01 $ 9.57 $10.73
225 45.37 54.76 36.09 43.23 28.17 33.35 21.41 25.06 15.66 18.01 10.76 12.07
250 50.42 60.84 40.10 48.03 31.30 37.05 23.79 27.84 17.40 20.01 11.96 13.42
275 55.46 66.92 44.11 52.84 34.43 40.76 26.16 30.62 19.14 22.01 13.16 14.76
300 60.50 73.01 48.12 57.61 37.56 44.46 28.54 33.41 20.88 24.01 14.35 16.10
325 65.54 79.09 52.13 62.44 40.69 48.17 30.92 36.19 22.62 26.01 15.55 17.44
350 70.58 85.18 56.11; 67.25 43.82 51.67 33.30 38.98 24.36 28.01 16.74 18.78
375 75.62 91.26 60.15 72. 05 46.95 55.58 35.68 41.76 26.10 30.01 17.94 20.12
400 80.66 97.34 64.16 76.85 50.08 59.28 38.06 44.54 27.84 32.01 19.14 21.46
425 85.71 103.43 68.17 81.66 53.21 62.99 40.43 47.33 29.58 34.01 20.33 22.81
45o 90.75 109.51 72.18 86.46 56.34 66.69 42.61 50.1.1 31.32 36.01 21.53 24.15
475 95.79 115.60 76.19 91.26 59.47 70.40 45.19 52.90 33.06 38.01 22.72 25.49
500 100.83 121.68 80.20 96.07 62.60 74.10 47.57 55.68 34.81 40.02 23.92 26.83
525 105.87 127.76 84.20 100.87 65.73 77.81 49.95 58.46 36.55 42.02 25.12 28.17
550 110.91 133.85 88.21 105.67 68.86 81.51 52.33 61.25 38.29 44.02 26.31 29.51
575 115.94 139.93 92.22 110.47 71.59 85.22 54.71 64.03 40.03 46.02 27.51 30.85
600 121.00 146.02 96.23 115.28 75.12 88.92 57.08 66.82 41.77 48.02 28.70 32.20
625 126.04 152.10 100.24 120.08 78.25 92.63 59.46 69.60 43.51 50.02 29.90 33.54
650 131.08 158.18 104.25 124.88 31.38 96.33 61.84 72.38 45.25 52.02 31.10 34.88
675 136.12 164.27 108.26 129.69 84.51 100.04 64.22 75.17 46.99 54.02 32.29 36.22
700 141.16 170.35 112.27 134.49 87.64 103.74 66.60 77.95 48.73 56.02 33.49 37.56
Female Lives
200 $34.50 1;38.86 $27.46 $30.76 $21.43 $23.86 $16.28 $18.00 $11.92 $13.03 $ 8.19 $ 8.83
225 38.81 43.72 30.69 34.6o 24.11 26.85 18.32 20.25 13.11 14.66 9.21 9.93
250 43.13 48.58 34.33 38.45 26.79 29.63 20.36 22.50 14.90 16.29 10.24 11.04
275 47.1,1, 53.43 37.76 42.29 29.46 32.81 22.39 24.74 16.39 17.92 11.26 12.14
300 51.75 58.29 41.19 46.14 32.14 35.80 24.43 26.99 17.88 19.55 12.29 13.25
328 56.07 63.15 44•63 49.98 34.82 38.78 26.46 29.24 19.•37 21.18 13.31 14.35
350 60.38 68.01 48.06 53.63 37.50 41.76 28.5o 31.49 20.86 22.81 14.33 15.45
37' 64.69 72.86 51.1'9 57.67 40.18 44.75 30.53 33.74 22.35 24.44 15.36 16.56
400 69.0o 77.72 54.92 61.52 42.86 47.73 32.57 35.99 23.64 26.06 16.38 17.66
425 73.32 82.58 58.36 65.36 45.53 50.71 34.60 38.24 25.33 27.69 17.40 18.76
450 77.63 87.44 61.79 69.21 48.21 53.69 36.64 40.49 26.82 29.32 18.43 19.87
475 81.54 . 92.29 65.22 73.05 50.89 56.68 38.67 42.74 28.31 30.95 19.45 20.97
5,, 86.26 97.15 68.66 76.90 53.57 59.66 40.71 44.99 29.80 32.58 20.48 22.08
52: 20.57 102.01 72.09 80.74 56.25 62.64 42.75 47.24 31.28 34.21 21.50 23.18
550 94.88 106.87 75.52 84.56 58.93 65.63 44.78 49.49 32.77 35.64 22.52 24.28
575 99.19 111.72 78.95 88.43 61.61 68.61 46.82 51.74 34.26 37.47 23.55 25.39
600 103.51 116.58 82.39 92.27 64.28 71.59 48.85 53.99 35.75 39.10 24.57 26.49
625 107.82 121.44 85.82 96.12 66.96 74.58 50.89 56.24 37.24 40.73 25.59 27.59
65o 112.13 126.30 89.25 99.96 69.64 77.56 52.92 58.49 38.73 42.35 26.62 28.70
675 116.44 131.15 92.68 103.81 72.32 80.54 54.96 60.74 40.22 43.98 27.64 29.80
700 120.76 136.01 96.1.2 107.65 75.00 83.52 56.99 62.99 41.71 45.61 28.67 30.91
M UTUAL O F N EW Y ORH
2987-17 9-57-- Ptd. In U.5.A.
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Table (c)
Earned Interest Rates
Gross Yield
Gross Net on New
Yield Yield* Investments&,
on Mean Admitted
Assets
1945 3.04% 2.82% 2.76%
1946 3.05 2.82 2.92
1947 3.01 2.71 3.33
1948 3.02 2.74 3.33
1949 3.12 2.89 3.58
1950 3.22 2.95 3.72
1951 3.41 3.08 3.77
on Mean Admitted
Assets
1952 3.54 3.23 4.15
1953 3.65 3.36 4.40
1954 3.75 3.46 4.35
1955 3.84 3.55 4.27
1956 3.95 3.69 4.55
1957 4.11 3.86 5.10
1958 4.30 4.04 5.25
* Before Federal Income Tax.
-X Excludes temporary investments. From 1946 to 1954,
rates shown are annual rates giving effect to rein-
vestment of income within the year. Thereafter,
they are nominal rates based on cost.
UTUAL 0 F N EW Y ORK
2987.37 9-57- Prd U.5 A.
•
•
Item 3,
•
Outline of Guarantees
It is proposed that the current service pensions will be provided
through a deferred annuity group annuity arrangement. The employee contri-
1:,1:a,ior, and the i .tchic,g City contributions will be applied each year to
purchase paid-up deferred annuity credits and the monthly income at retire-
ment will be the total of these credits. This monthly income will be pay-
able for five year:_. certain and during the retired employee's remaining life-
.
t-"me.
The rates -,t which ehe s deferred annuities will be purchased will
nitially be guaranteed for the purchases made in the first five contract
rs. These rate be based on the male Ga-1951 mortality table projec-
',c 1960 by the ' projection factor and set back five years for females.
.:.crest will be tat- -•n at 3-1/4% per year compounded annually and the expense
and contingency mar ri will be 5% of the gross rate.
The rates t:: 7vide for a refund of the employee contributions with
ir:t.erest at -1/2% per year compounded annually from the end of the year in
which the contribution is received to the date of refund. These refunds are
available only upon death or termination of employment in a covered class of
There is no refund at death with respect to the City contributions
since the rates are discounted for mortality with respect to the City's de-
posts. There is a ref nd, however, if an employee terminates in good health,
equal. ee the City's eeltribut1.ons with 3% interest per year compounded an-
.
nually from the end of the year in whi:h received to the date of refund. Where
the i.e?e te_winaees in 1ese than five years, the City's refund will be
red;ir: ,.1 by n, ,` h
v,�. or a..; ru_'.r_ii to t.,. employee.
In aid .;i-oo. to the margin in the basic purchase rates, there will
be an annual adrzin ie eet ion :,haege equal. to $700 less 2% of the excess
of the aeetal de .,:;ins over $25,000. There will be no such charge for any
year i : "(hi ` Lhy aenua1 depo tits are equal to 360,000 or more. The adminis-
tr'e t io ^,';-f_ an:: the tem.nation credit guarantees mentioned
abee ee ell gv-.a: �:;t�ei wath respect to deposits and charges in the first five
• coot r-A yee .
IL i.s fur'.her proposed that the City's payments toward past service
will be cre i'. :.d an unallocated annuity purchase fund. As employees retire,
their east. ,erri,e nneities will be purchased out of this fund. The rates
an. i tereer. asara:; ees initially applicable with respect to past service bene-
fite a'e as shown on the attached schedule.
The usual options ara available to retiring employees. These are
ildieaeed in the attached outline of optional income retirement arrangements.
•
UTUAL O F N EW ORK
2987-37 9 37 - Nd in U.S A.
• .6 n
Item (d) - Schedule of Rates and Guarantees For Past Service Benefits
ANNUITY PURCHASE RATES
Current annuity purchase rates are shown in the following table:
Cost of an Annuity of $1 a Month
Age Peginning on the Date of Purchase
At And Ending with the Last Payment
Date Due before the Annuitant's Death
Of For First 5 Years Thereafter
Purchase Males ,_ Females Males Females
65 137.31 1b2<00 $140.20 $165.70
of
132,60 157.20 135.10 160.60
6? 127.70 152.30 130.10 155 .60
68 122.90 147.40 125.10 150.50
69 118.10 142.50 120.20 145.30
70 113.30 137.50 115.20 140.20
71 108.60 132.60 110.30 135.10
72 104.00 127.70 105.50 130.10
73 99.30 122.90 100.70 125.10
74 94.80 118.10 96.10 120.20
75 90.30 113.30 91.60 115.20
These rates are based on the Ga=1951 table projected to 1960 by the
"C" projection for male lives, and rated down 5 years for females, with
interest at 3-1%2% for annuities purchased during the first 5 contract
years and 3-1/4% for annuities purchased thereafter. The margin for
expenses and contingencies is 4% of the gross premium. The premiums are
not loaded for State Premium Taxes, Any such taxes are a separate charge
against the annuity purchase fund.
The above rates are guaranteed with respect to annuities purchased
with funds deposited during the first 5 contract years and interest
credited on such deposits,
INTEREST GUARANTEE
Interest is guaranteed at 4-1/2% per year , for the first 5 contract
years, with the right to MONY to reduce this to not less than 3-1/2% for
funds deposited after the fist year. Funds deposited during this period
will contd nue to receive not less than 3% interest after the first 5 con-
tract years until applied tc ;n.e purchase of annuities.
C3uTuAL O F N EW Y ORK
-2-
SECTION 2. The City Manager is hereby authorized and directed to
determine if seventy-five per cent (75%) or more of the non-uniform em-
ployees of the City of Little Rock, Arkansas, will participate in the
Proposed Retirement Plan. If the determination is that less than seventy-
five percent (75%) of said non-uniform employees do not desire to partici-
pate, the plan shall be abandoned and no further proceedings taken in
connection thereto; if seventy-five per cent (75%) or more of the non-
uniform employees express a desire to and commit themselves to participate
in the Proposed Retirement Plan , then the City Manager is authorized and
directed to perfect all details of the said plan and submit same to the
Board of Directors at the earliest possible time for its further consider-
ation .
SECTION 3 . It is specifically declared by the Board of Directors that
the Proposed Retirement Plan for Non-Uniform Employees set forth in Section
1 hereof is not in all details and particulars complete, but that it con-
tains the basic retirement plan and declares the basic rights of the em-
ployees thereunder.
SECTION 4. This Resolution shall be in full force and effect from
and after its adoption .
ADOPTED: April 1+, 1960
ATTEST: APPROVED:
City Clerk May r.