1961-04WILL.IAM M. HOWARD
Box 3081
UNIVERSITY STATION
GAINSVILLE. FLORIDA
Mr. Albert Johnson
City Clerk
Clermont. Florida
Dear Mr. Johnson,
The purpose of this letter is to offer my continuing consulting
services in the administration of the pension plan for employees
of the City of Clermont. the following services are involved:
1. Periodic actuarial calculations to determine annual
deposits to the pension fund.
2. Determination of benefits for retiring employees.
3. Annual written reports on the condition of the plan
based on financial statements of the fund and actuarial
valuation of liabilities.
4. Annual meeting with the Board of City Comissioners to
discusss the condition of the plan. proposed changes. and
recent developments in municipal pension plans.
5. Preparation of reports to the State Treasurer's Dspartment.
6. Assistance with records and administrative procedures.
7. Explanation of the pension plan to employees in group
meetings or to key employees.
Valuation of the plan in 1961 will be particularly important because
of salary increases sranted.since the study based on July, 1960 earn-
ings. Pension credit for service before the inception of the plan
is based on salaries as of November 1, 1960.
The annual charge for tr.e service is $180 plus $3.60 for each of the
first fifty employees and $2.40 for each of the next one hundred
employees. One-twelfth of the annual fee is to be paid each month.
The monthly charge will be $23.70 based on 29 employees. starting
in January. I suggest that the charge be adjusted once each year
for changes in the number of employees.
Expenses for necessary travel are charged at ten cents per mile
and fifteen dollars per day. I arrange to service two or more cities
on each trip when possible and prorate the cost (as I have done twice
Mr. Albert Johnson, page 2
for Clermont). I would expect to make two trips each year to Clermont
in connection with the plan, and will make additional trips if you
wish. Toll calls are charged at cost.
Consulting costs may be paid from the fund or from the general city
funds. whichever city officials prefer. You may wish to instruct
the trustee to pay the monthly charge and to have expenses billed
once each year to simplify your office procedures. If so, I suggest
that the three trust accounts (policeman, firemen. general) be
charged $5.00 plus 30 cents for each employee each month. Under this
arrangement the account for policeman would be charged $6.50, the
account for firemen $5.30 , and the account for general employees
$11.90. Traval and telephone expensed could be divided equally
If you have any questions on these matters I will be glad to answer
them.
Sincerely,
William M. Howard