11-13 - Paris Firefighters Relief & Retirement Fund - Pension Bond - Freeze Fire Pension - Transfer Employees to TMRS

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her returning,equities to fixed income as the plan population eventually only covers retirees. Based on these two considerations, we were asked to also provide the UAAL measurements at a lower discount rate to illustrate the sensitivity of results of this important the asset allocation. could be materially higher or lower than $11.35 million at the point when the proceeds from the pension obligation bond are deposited. As of now, the effective date of the plan amendment is expected to be October 1, 2022. At that time, the AAL, using the 7.25% discount rate, is projected to be approximately $15,750,000 or about $250 thousand higher. At that time, the assets could be higher or lower than the June 30, 2022 value of $4.150 million. I While there is no way to precisely predict the URAL at the time the bond proceeds are deposited, that volatility in the UAAL measurement will exist in the future as well. That is, the actual long-term coast of the Fund won't be known until the last participant passes away, but these estimates should provide the City with the actuarial information needed to determine the size of the bond issuance. Summary of Plan Changes In addition to freezing the benefit as of June 30, 2022, there were a few other changes made to the plan provisions that are listed below: reach... Benefits earned in the Fund will be fully vested. Since service is frozen, Normal Retirement Age will change from age 55 with 20 years of service to age 55, Since all members were hired before age 35, this doesn't result in earlier eligibility, but rather addresses the fact that most active members will never ... The Early Retirement Eligibility, Rule of 80, will be limited to those that already have 20 years of service as of the effective date of the amendment. Going forward, members will be eligible for in-service distributions once they reach retirement eligibility rather than having to terminate, That is, they can start their benefit at age 55 even if they haven't terminated employment yet. ... Since members can commence their benefit at age 55, eligibility for the DROP was frozen to those currently eligible as of the effective date of the plan freeze. ... The pre -retirement death benefit will be based on the frozen benefit without the minimum benefit based on 20 years of service. ... The disability benefit was reduced to the TLFFRA minimum of $1,200 per year until the member reaches age 55, then it reverts to the frozen ... Active members cease making contributions to the Fund.