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HomeMy WebLinkAboutOrdinances Book 17, Page 758, Ordinance Number 71-9-543758/ ORDINANCE NO. 71-9-543 AN ORDINANCE ACCEPTING THE PROPOSAL OF MEIDINGER AND ASSOCIATES, INC. OF LOUISVILLE, KENTUCKY, TO PREPARE A REPORT ON AN ACTUARIAL VALUATION OF THE POLICEMEN'S AND FIREMEN'S PENSION FUND BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the proposal of Meidinger and Assiciates, Inc., Actuaries and Employee Benefit Consultants of Louisville, Kentucky, dated August 27, 1971, to prepare a report to the City of Paducah on an actuarial valuation of the Policemen's and Firemen's Pension Fund, be accepted, said proposal being in part in words and figures as follows, to -wit: "Listed below are the services that we would undertake to provide for the City of Paducah Police and Firemen's Plan: (1) An examination of the actual experience of the plan with regard to trust earnings, mortality, termination, and compensation for the members for the past few years. This examination would enable us to establish the assumptions on which the valuation and study would be based. (2) A detailed actuarial valuation of the plan to determine the current and prospective liabilities of the plan, considering both the current past service liability and the level of prospective liability accruing from benefits to be earned in the future. (3) An actuarial report summarizing in detail the above valuation. If, in our opinion, the plan does not meet minimum funding standards, we would prepare recommendations of possible methods to improve the position of the fund in support of benefit levels. (4) A meeting with appropriate city officials and plan representatives, and any other interested parties determined by you, to explain the results of the valuation and report and to answer any questions that may have arisen in this regard. Our fee structure is designed to reflect the number of employees covered under the plan and the complexity of the services rendered. It has been our experience that municipalities prefer to have services performed on a set fee basis rather than on a "time and expense" basis. For this reason, we would be prepared to perform the services indicated above for a flat fee of $1400, assuming that only the final meeting with city officials is desired. If an additional meeting is desirable in order to discuss actual experience of the plan so that more accurate actuarial assumptions can be established, our fee would be $1600. While it would be more desirable for this initial meeting to be held so that we could better understand the actual experience of the fund, we have in the past found that this portion of the study can be handled adequately by correspondence and telephone. 759 We would anticipate that the entire study and reports could be completed within two months after the data was received by us." SECTION 2. That the City Manager be, and he is hereby, authorized and directed to notify the consultant to proceed with the actuarial study, and he is further authorized to execute any agreement which might be required by the consultant according to the terms and con- ditions as set out in Section 1 above. SECTION 3. This ordinance shall be introduced and remain on file for at least one week for public inspection in the completed form in which it shall be put upon its final passage, and if adopted shall be in full force and effect ten days thereafter. Mayor Introduced by the Board of Commissioners September 144, 1971 Passed by the Board of Commissioners September 28, 1971 Recorded by Sarah Thurman, City Clerk, September 28, 1971.