02/05/2013 Resolutions 2013-26 (B) RESOLUTION 2013-26(B)
WHEREAS, Article 10 of Chapter 16 of the Nebraska Revised Statutes sets forth
the laws governing the pensions of police officers of First Class Cities; and
WHEREAS, Section 16-1002(1) of the Nebraska Revised Statutes states in part,
"if benefits under the retirement system are obtained through the purchase of an annuity contract,
the actuarial equivalent of any such fotiii of benefit shall be the amount of pension benefit which
can be purchased or otherwise provided by the police officer's retirement value."; and
WHEREAS, Section 16-1002(10) of the Nebraska Revised Statutes states in part,
"[annnuity contract means the contract or contracts issued by one or more life insurance
companies and purchased by the retirement system in order to provide any of the benefits
described in the act."; and
WHEREAS, Section 16-1007(1) of the Nebraska Revised Statutes requires the
City of Grand Island to provide pension benefits to retired police officers "in the form of a
straight life annuity or any optional form of annuity benefit established by the retirement
committee and provided under a purchased annuity contract"; and
WHEREAS, Section 16-1007(2)(b) of the Nebraska Revised Statutes states in
reference to police pension benefits, "[i]f the minimum pension benefit is paid in a four other
than a straight life annuity, such benefit shall be the actuarial equivalent of the straight life
annuity that would otherwise be paid to the officer..."; and
WHEREAS, Section 16-1007(2)(c) of the Nebraska Revised Statutes states in
part, "[i]f the police officer chooses the single lump-sum payment option, the officer can request
that the actuarial equivalent be equal to the average of the cost of three annuity contracts
purchased on the open market."; and
WHEREAS, Section 16-1014 of the Nebraska Revised Statutes states in reference
to police pension benefits, "[t]he governing body of the city shall continue to be responsible for
the general administration of such retirement system unless specific functions or all functions
with regard to the administration of the retirement system are delegated, by ordinance, to the
retirement committee."; and
WHEREAS, the Grand Island City Council as the governing body of the City of
Grand Island never approved any particular method of seeking annuity bids in order to determine
the calculation of lump sum pension benefits.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL
OF THE CITY OF GRAND ISLAND,NEBRASKA,
Approved as to Form A .1',
February 6,2013 0 City torney
That the Police Pension Committee and City staff are to calculate all pending and future police
retirement benefits using bids based on the following:
a.) Straight Life Annuity
b.) Age Specific for Pensioner Only
c.) Gender Specific for Pensioner
d.) Both the City and the Police Pension Committee to receive at least 2 fully
qualified quotes for the purpose of accepting the low quote.
Adopted by the City Council of the City of Grand Island, Nebraska, February 5, 2013.
imt
-Jay Vavrice Mayor
Attest:
C
RaNae Edwards, City Clerk
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