Title
Resolution to Approve a Contract with Gabriel, Roeder, Smith & Company for Supplemental Benefit Calculations (NTE $30,000.00)
Memorandum
Attached for your review and approval is a resolution to approve a purchase order for professional services with Gabriel, Roeder, Smith & Company (GRS) to provide Supplemental Benefit Calculations related to the early retirement option program for Ann Arbor Police Officers Association and Command Officers Association of Michigan.
GRS is the actuarial firm the City’s pension system utilizes in its annual evaluation of fund status. The City utilized GRS to perform actuarial calculations in relation to the preparation and analysis of the early retirement program. In addition, GRS prepared a report for Council describing the assumptions and impacts of the early retirement program on the pension system. This report is attached to the proposed ordinance amendment on Council’s May 18, 2009 agenda.
GRS performed these services for the same hourly rate it charges the Pension system for professional services. Staff anticipates this work will not exceed $30,000.00. No budget amendment is being requested since staff anticipates offsetting this cost with savings from other items in the Service Area.
Staff
Prepared by: Tom Crawford, Chief Financial Officer
Approved by: Roger Fraser, City Administrator
Body
Whereas, Management needed to prepare and evaluate the financial impacts to the City and the Ann Arbor Employees Retirement System (AAERS) of a possible early retirement option Program;
Whereas, Gabriel, Roeder, Smith & Company is the actuarial firm which the AAERS utilizes and has extensive knowledge of how changes to plan design may affect the value the AAERS liabilities;
Whereas, Competitive bids were not solicited by the Procurement Office of Financial Services since the City was extended the same hourly billing rates as the Pension System from Gabriel Roeder, Smith & Company;
Whereas, Funding for this project is a...
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