RESOLUTIONS 1985 - Laserfiche WebLink

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I NYHART June 17,1985 Mr, Steve Edwards City of Mooresville Board of Directors 23 South Indiana Mooresville, IN 46158 Dear Mr. Edwards: Proposed Employees' Retirement Plan We have enclosed exhibits which illustrate the projected benefits from three alternate retirement plans at retirement ages of 55, 60 or 65. We have assumed the plan would be designed to comply with all require- ments of a typical corporate qualifed plan with the exception that Judge and Mrs. Knight would be excluded from eligibility. We have assumed all employees who were age 21 and had completed one year of employment as of January 1, 1985 would participate. The benefits illustrated in Exhibits I-A, Band C correspond to the following formulas: Al ternate 1 $10 times years of service, Alternate 2 - 1% of five year average compensation times years of service, Alternate 3 - equivalent benefit from a contribution of 6% of compensation. In general, a defined benefit plan provides higher benefits to older employees or those with significant prior service. Also the actuarial assumptions playa significant part in determining the cost. We have assumed an annual investment return of 8% and that compensation will increase 3% per year, For the funding method we have assumed that the liabilities will be spread over the future service of the employees. There is also a method' where the cost is assumed to have been spread , since the date of hire and there is an unfunded liability for these prior service costs. The estimated annual costs for the two alternate defined benefits for- mulas for each retirement age are: Al ternate 1 Alternate 2 55 $13,029 20,854 60 $ 9,586 17,050 65 $ 6,538 12,924 THE NYHART COMPANY, INC, ernploype bpnefit consult<1nts and éH":tu,uies 3505 norlh washington blvd.. p. 0_ box 88187, indianapolis. indiana 46208 317 923-2391