HomeMy WebLinkAbout1991-07-22 91-297 ORDERDate 7 7-Ql " Item No. 91-297
Item/Subject: withd[evel of Batgot Preparing ImNority frost Cfty's PID at )SNS
Responsible Department: Pure
Commentary:
79e Ieeaing autt,0tity of the City of Begoc fs a compOrent of the City's
ParticiPat g 1,0011 Desstciet Plan M Mane State Retii9lHlC Syatas. Dsa to tLa 21+8
mployec contritsatiar caie, ffe Beaming lwWcity obiaLai an acnerial study fron
MEWS which x spgstled V lettec on [Each 13, 1991. The hWsisg AutLalty is
oayeetmi Ibecil assceptancer of thiec saissantican fnua tie City's cetic®BR plan
and the tsenefer of $238,313 in aseencs which telacenspis ammelated ®p]oyese
(m®DPi) mntdbatfvre. If algrzvred tiia effective date of sepeareartion would 18
5-1-91.
neP^' ere Or.A
Manager's Comments:
c,e6CD j
i; K
,Qlfdrh yri.ardy tS F.man"a %,r✓,n.zG... p{�.r �P.
Associated Information:-
Budget Approval: Nonimal effect on FY93 budget and
unfunded liability at MSBS. -T11111 -Dllector
Legal Approval:
iq$$�. eiiy 5olieimr '
Introduced For -
0Passage
Q First Reading - Page _of_
❑ Referral
91-297
Aeeigwd to Cuuuao Saxl, July 22, 1991'
CITY OF BANGOR
QIW(orbPra_.................._.hditim1raalof Bang Eiousi,y.m,.,,,..ity toss .at3rla..� at
h state letfxmrnt System
By Ms Cies Comm! of Mw ON afBmepmr:
ORDRRRD,
TEAT
PU@IffIS, Ibusim AUUnxity of the City of Banff is a cowponent. of de City
rtioipatio, local district plan at Madre state system; ad
hU�45, the Mouefng Aut ority requested an actuarial study fron dBR.S for
weer UM from the city's PID into its own P ; and
va®mMa, the Board of �iooP s of the lnusi Aut Ity wiai on Sure 19,
1991 to sepaate from the city's plat pec the letter dotal March 13,
1991 b. [QRS{ and
W@18j such see aticn evnald transfer $238,313 in assets from the City's PLD to
the Ibusin9 Autlority's Plan; aril
Mffii8A4, such sepexat&on ani transfer of assets roq.:.ce by the City
of &minor; sM
TfffiR@tl%B BB TT the City of Bangor aocEpts and agree to the a ¢�ioo
Of the ibusing Authority f the city's m a MSPS an l further;
91 8 m rr OP9Hd® mf the City of Bauer accepts aicl agrees to the transfer
of $238,313 of assets frmm the City's Pin v3tich rents the ammtlat i umber
cotrtxlbutims of Housing Authority eaplcyees par the HSPS study noted in thi¢
letter dated Morph 13, 1991, effective 8-1-91. -
In City Council July 22,1991
Passed
� k�
Lity Cle[4
91-29]
ORDER
Title,
Withdrawal of Bangor Housing Authority
......................................
Flom City's PLD e[ Maine Slate Baci[emevt
...Syftffp........ I ....................
Ata CQ.
/��✓^LnA AP" to
......V ..............
Councilman
COMMISSIONERS
DARRELL COOPER
ROBERT MURRAY
LLOYD BROWN
July 9, 1991
Mr. John Quartararo
Director of Finance
City of Bangor
73 Harlow Street
Bangor, Maine 04401
Dear John:
Following up our recent telephone conversation and the March 13th
Tetter from the Maine State Retirement System, our Board of Commissioners
has elected to participate in the retirement system as a separate entity.
Itis now
necessary that the City of Bangor agree to the transfer
s detailedin the March 13th letter. A certified agreement to this
effect will be required by Maine State Retirement System.
If you need any further information, please advise. We are hoping
for an August 1, 1991 separation date.
l y.
ELSIE C. COFFEY
Executive Director
ECC/dl
CC: Kathy J. Morin
Retirement Benefits Specialist
UAM CFM W
Y MAINE STATE RETIREMENT SYSTEMClamle��
JoseahR GalhPernag n,DeipuiyJX tw
4 3
JosgpM1AGana9an, DepuryDirecNr c � �a�. x
Philip H. Gilgrow,AsalstantFxaclAireD)rectw �y
a�V
a gLd�
ePl�ce��'
- L]aNi 13, 1991
ELSIE'C OJFIEY EY.EI2PITIE DIItECIDR
HYMOR H0.5ING AVRORPSY
161 MWIS lm
BANGOR. ^E 04401
Bear M. Coffey:
9 acb a Nus oa¢letoi the sdxty to determine the cost for the Bangor
Housi.ag Authority to become a p rticip ting local district separate fr the
City of By or.
If the Bangor Housing A Uarity does separate from these City of Barger for
retirment systan.porposes, a share of U assets f1w the City of Ba
shwld be tmnsferrat along with the liabilities. xt is recgimeucied that the
vncvnR to be tiansfarmoi be develcpx by first allocating assets from the City
of Bangor to isactives. Airy assets in excess of the amounts reaped for
.i rive me b would he split ano g regular, police ard fire g ops in
laspution to their actuarial liabilities for active xmbers. Then, the mrc+:nt
allocate] to the xaglalar m®twss would be split again, in pm cot n to the
acts iai liability, tet ea the regular sbers mntinuhg in Ute City of
Bangor ant those ih the Bangor Po lg Authority.
Based on the results of the actuarial valuatiaa and the method describei
above, the assecs allolatel to 5"or Hosing Iwrhority wouia be apls'oximateiy
$59,000 at actuarial value. tkxravei, we would always transfer an ampaaat at
least 6 l toaCC1gYUlat6t' 1f.9obPY cwtributions which was estimated at $238,313
for p¢paus Of this study.
dies acUasrial valuation was done bassi on a retirement plan similar to that
of the City of Bangor with two ex3eptions: 1) disability will be unxter the
new rehabilitation plan with b its at the 2/3 level; and 2) survivor
benefits are to be on the incraasixg sc :etule of benefit amounts and include
C.O.L.A. 'Rae owRribution rate, bases Upon the above information, is 19.04%.
A copy of the acba is report is attached for you' perusal.
If the &vgor Housing Authority elects to participate with the mains State
Petirerent System as a separate entity from the City of Bangor, a cartif lost
extract of the copy of the minutes of Uae meeting of the executive body
approvircg participating must to fotvazUed. to the retic t system.
pff?) ia1 1d 1ga MAINEOWs FM', Itpn2WIM
Elsie C. Coffey, Ekeoutive Director
Ba'gor Road J �ity
M9Ych 13, 1991
Page 2
Burl action should he sEecific as to the effective date of participation. she
action � by the B e Hou AuVwrity m specify ao ptance of the
provision clwnge as det 1i in Me above lamgraph. � action must also
specify that Gov_ City of Bangor a Brgcr Fbusirg Authority ogee to the
transfer of monis as previously detaflai. Additionally, we would also require
a copy of the duly certified aqr M City of Brgor wd the
Bangor Bcusflg AUUority relevant to this action.
ff you. taus further qus tics or rego;i additiw Information please
advise.
S' ly,
I'IuVV
yJ
I+e BereEits Specialist
riwoaf
&hclosure
a: JOM Quartarare, City of Ban3or