Marco Island may need to pay out more than $31,000 to support police pensions

— The City of Marco Island may need to pay out more than $31,000 to support the pensions of police officers. The change is due to a more current mortality rate table that is being used to estimate pay outs.

At a special workshop called by City Council Monday, Doug Lozen of Foster and Foster, the city’s actuarial firm, explained that previously, mortality rates were calculated using the Group Annuity Mortality Table which dates back to 1983. However, the Florida Division of Retirement suggests that communities use a more updated chart, which extends life expectancy by two years.

According to Lozen, the initial impact of the change is approximately 1.6 percent of total annual payroll, or about $35,000 per year. The changes are dependent on the actual life expectancy of officers who pay into the plan, which means costs for the city could increase or decrease, but the true amount the city will pay won’t be known for decades. Lozen stated that the initial $35,000 will be felt next fiscal year.

“It’s basically our best guess based on experience,” Lozen told council members regarding the exact amount the city will need to pay out.

Councilors also received an update on investment return assumptions for the police department’s pension plan, which is currently set at eight percent, and is showing a return of eight percent. In March, the state Division of Retirement rejected an eight percent assumption for the city’s fire department pension plan for 2008-09 forcing officials to re-calculate the numbers and resubmit. To avoid a reprise with the police department’s plans, the council asked Lozen to consider what reducing the police pension return assumption to 7.5 percent would mean to the city’s bottom line. According to Lozen’s calculations, the impact would be 3.9 percent of payroll, or approximately $80,000 per year. However if the return on the plan actually remains at eight percent, the city would eventually see a savings which could be redistributed. The city currently pays about $600,000 per year into the plan.

“We’re looking at many decades out before the last check is cashed,” noted Lozen.

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Comments » 23

August8 writes:

"Very Good"

Sound plan,but, it seems that most officer's exit the department and the plan shortly after they are vested, which means that the city is doing a poor job at retention and end up paying out theses officers at 55 five years??

RayPray writes:

"the city is doing a poor job at retention"

Poor MI Keystone Kops job must start with retaining you for even 5 minutes, Sancho....

1adam12 (Inactive) writes:

under the current management the city will never have to pay out to any of the deputies. they will all quit before the pension takes effect. have you noticed all the new faces lately.

August8 writes:

If your vested, you get what has accumulated to that point at 55, DA??
Rayprey still has that Joey's whole Pizza stuck in his mouth, don't talk with your mouth full, bad manners, it will ruin your brain as well.

RayPray writes:

in response to August8:

If your vested, you get what has accumulated to that point at 55, DA??
Rayprey still has that Joey's whole Pizza stuck in his mouth, don't talk with your mouth full, bad manners, it will ruin your brain as well.

"it will ruin your brain as well."

Thanks, Sancho.

Guess that explains your pitiable story....

40dawg writes:

in response to RayPray:

"it will ruin your brain as well."

Thanks, Sancho.

Guess that explains your pitiable story....

Poor Dr. Ray, you were unprofessional in your career and the trend continues. When are the nuptials between you and Klabberzili?

RayPray writes:

in response to 40dawg:

Poor Dr. Ray, you were unprofessional in your career and the trend continues. When are the nuptials between you and Klabberzili?

"Poor Dr. Ray, you were unprofessional in your career"

True!

My greatest failure was when I tried to do exploratory surgery on your brain without a microscope.

(Wow, you cops sure have a lot of free time on your hands!!!)

Marconian writes:

Funny thing is no matter how much you belittle our MIPD if you where in trouble or injured or threatened who would be there to assist you????

Keep up the good work Guys.....

August8 writes:

MarcoIslandwoman?? really a man, right???

marco97 writes:

To answer your question Marconian, CCSO would be here just like they were before Marco Island had a PD. They did a great job and we had no liability as we do with our current police force.

ed34145 writes:

Yeah, CCSO would be there 45 minutes after you called just like they did before we had a PD. I know of 3 robberies where this occurred....one being a robbery in progress....the neighbor watched the robbers do the job while he waited 45 minutes for CCSO to respond. Nice job.

marco97 writes:

Islandeye, do the math, our liability for the CCSO is shared by everyone in Collier County not just the tax payers of our small Island so a multi million judgment against the CCSO cost very little compared to the same judgment against the Marco Island PD. I do not understand the point you are trying to make, we still pay for CCSO plus our own PD. And Ed, the CCSO always had 2 cars on the Island, usually both at the 7-11 at night, I find the 45 minuet wait for CCSO hard to beleave.

40dawg writes:

in response to MarcoIslandWoman:

(This comment was removed by the site staff.)

"You are mot welcome on Marco Island anymore", who was your spelling teacher Klabberzili? Perhaps the old fool Ray? You 2 keep up the good work of keeping me amused. Haha :-

RayPray writes:

in response to 40dawg:

"You are mot welcome on Marco Island anymore", who was your spelling teacher Klabberzili? Perhaps the old fool Ray? You 2 keep up the good work of keeping me amused. Haha :-

Thanks!

But how much effort really does it take to keep an amoeba amused?

August8 writes:

Hummmmm??? So rayprey is and old man?? what would he know about cops or what time his meals are served??

RayPray writes:

in response to August8:

Hummmmm??? So rayprey is and old man?? what would he know about cops or what time his meals are served??

No I'm only 89, not old on Marco. (Careful I don't drool snot on you uniform, Sancho.)

I really like this "meeting of the minds" between a pair of really slooooooow Kops like you, Sancho, and 40dawg.

Must be like some excruciating rare cosmic collision of neutrinos....

August8 writes:

I forgive all his crazy posts, how could you hold anything against a Marco Senior like that?

icdumbpeople writes:

ed34145 writes:

Yeah, CCSO would be there 45 minutes after you called just like they did before we had a PD. I know of 3 robberies where this occurred....one being a robbery in progress....the neighbor watched the robbers do the job while he waited 45 minutes for CCSO to respond. Nice job

Hey Ed ... name one out of your three examples and I will believe you. Otherwise write something you know your facts about and causing problems.

August8 writes:

icdumbpeople

Fist thing you need to learn, the difference between a robbery and a burglary,"it's huge"

icdumbpeople writes:

in response to August8:

Fist thing you need to learn, the difference between a robbery and a burglary,"it's huge
_______________________________________________

Hey August

I do know the difference.
I was going to ask Ed that same question after he answered mine and gave me one of his examples.
Thank you for the class on criminal law BUT you dirrected your comments toward the wrong person. IT's HUGE

August8 writes:

Well ???

Then get facts prior to posting silly information

August8 writes:

Burglary--- entering
Robbery----force

August8 writes:

You are welcome !!!!!

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