Board asks staff to draft ordinance allowing partial lump-sum retirement option; actuary says no actuarial cost

The City of Palatka Police Pension Board asked staff to draft an ordinance that would allow retiring members to elect a partial lump-sum payment (examples discussed: 5%, 10%, 15% or 20%) while keeping the remainder as a lifetime benefit.

A board member reported that a general-employee (GE) group had requested such an option. Anna and the actuary said they would prepare an ordinance draft and an actuarial statement showing any financial impact; the actuary told the board he would issue a letter stating the option would have no anticipated negative impact on plan funding because the alternative payout options can be priced to have the same actuarial value under the plan’s assumptions. The board moved to direct staff to prepare the ordinance language for consideration; the transcript shows a motion and a second, and staff said they would proceed to prepare the draft for review and the city commission would need to approve any ordinance change.

Board discussion noted the policy rationale: provide retiring members limited access to a lump sum while preserving the pension’s lifetime income objective; staff and counsel would coordinate drafts so that any change would apply consistently across boards if desired. The board also instructed the actuary to provide a formal letter confirming actuarial neutrality before sending an ordinance to the commission.