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HomeMy WebLinkAbout1992-10-27 POPB MINUTESPOLICE OFFICERS' PENSION BOARD MEETING October 27, 1992 The regular meeting of the Englewood Police Officers' Pension Board was called to order by Chairperson Norm Wood at 4:20 p .m . in the George Perrin Room of the Englewood Public Library, 3400 South Elati Street. Members Present : Members Absent: Others Present : Norm Wood, Chairperson Ralph Allen , Employee Representative Clyde Wiggins, Mayor Lorraine Hayes , Director of Financial Services Tom Vandermee, Employee Representative Rick DeWitt, City Attorney Brenda Castle, Deputy City Clerk Don Mazanec, William M . Mercer, Inc . A quorum was present. * * * * * Approval of Minutes MR. ALLEN MOVED, AND MAYOR WIGGINS SECONDED, TO APPROVE THE MINUTES OF THE REGULAR MEETING OF APRIL 9, 1992 AND THE JOINT MEETING OF MAY 4, 1992. Ayes : Nays : Absent: The motion carried . NEW BUSINESS Wood , Allen , Wiggins , Hayes None Vandermee * * * * * Mr. Wood asked if Council would soon be appointing a new member to fill the vacancy created by the August 30 , 1992 resignation of James Tynan . Mayor Wiggins responded that interviews would be held in December and, hopefully, an appointment will be made at the first of the year. * * * * * Review of 1992 Actuarial Report Don Mazanec of William M . Mercer, Inc . presented a draft of the 1992 Actuarial Report . The 20% Supplemental Disability Benefit was discussed . Mr. Mazanec stated that the benefit has been included in the liabilities of the Old Hire Plan and all the contributions for the funding of this benefit are also in this plan . He requested that a determination be made as to whether the 20% Supplemental Disability Benefit applies to new hires as well as to old hires and whether the assets and liabilities should be moved to a separate fund . Mr. DeWitt was of the firm opinion that the 20% Supplemental Disability Benefit applies to all police officers and that it should be a separate fund . Mr. Wood suggested a study session be held to consider the question. Ms. Hayes stated that would delay completion of the actuarial report . Discussion ensued . MR. ALLEN MOVED, AND MAYOR WIGGINS SECONDED, TO DIRECT THE CITY ATTORNEY AND THE DIRECTOR OF FINANCIAL SERVICES TO DEFINE THE 20% SUPPLEMENTAL DISABILITY BENEFIT FUND BY DETERMINING THE DOLLAR AMOUNT AND THE CORRECT DEFINITION OF THE FUND. Ayes : Nays : Absent: The motion carried . Wood, Allen, Wiggins, Hayes None Vandermee Mr. Mazanec requested the Board review the draft of the actuarial report and send him their comments . He expressed his concern for the plan's unfunded liability for future pension benefit obligations . He also requested that the data on the individual officers be reviewed by the Board or police personnel for accuracy . * * * * * Consideration of Affiliation with FPP A In response to a request from some of Englewood's police officers, Ms. Hayes met with FPPA regarding the possibility of their administering Englewood's plan. She informed the Board that FPP A would require that 65% of the membership of the Police Officers' Pension Plan elect to affiliate. Members would then elect individually whether to keep the benefits of the current plan or to opt for the FPP A benefits provided through its new hire police money purchase plan . FPP A would handle the old and the new plan for all members . All existing assets would be transfered to FPP A, at which time they would determine whether additional assets would be required to fully fund the old plan for 2 ., ' current retirees/beneficiaries and those members electing to retain the old plan's benefits . PPP A would also require that all of the fund's non-liquid assets be liquidated prior to the transfer of the plan, which could result in a loss to the Police Officers' Pension Fund . PPP A would administer the plan and pay benefits to the members per the old plan specifications, conduct future actuarial studies of the old plan, provide account statements for the old and new plans and invest all the plan assets. For those members who opt out of the current plan into the FPPA plan, the annual cost ofliving adjustment would be funded by FPPA at either 3% or the CPI, whichever is lower. Members choosing the new plan would be required to increase their contribution rates from 5% to 8% of pensionable earnings. The new plan would also require officers to work five years longer before retiring . Ms . Hayes explained further the details of the affiliation option . She stated that, if the police officers decided to affiliate, it would be necessary for Council to adopt a Resolution oflntent prior to March 31st of the year before they want to affiliate, so that affiliation can take place the following January 1st. Members would each then have sixty days to irrevocably elect to stay with the old plan or go with the new one. Mr. DeWitt emphasized that there is a one-time chance for the group to affiliate. If an election is held to decide the question of affiliation, the outcome of that election is final. Ms . Hayes suggested the Board talk the matter over with their membership over the next couple of months and decide at the meeting in January which way to go . Further discussion ensued regarding the benefits and disadvantages of affiliating with PPP A Ms. Hayes had also been asked to look at the ICMA 457 Deferred Compensation Plan . Although the Board would not make decisions pertaining to that plan, she wanted to inform them of the request and provide them with the comparative information . * * * * * Election for Expiring Term of Tom Vandermee The Board discussed holding an election to fill vacancy that will be created when Tom Vandermee's term expires December 31 , 1992 . Ms . Hayes will send out nomination forms to the membership . * * * * * MR. ALLEN MOVED, AND MAYOR WIGGINS SECONDED, TO ADJOURN THE MEETING AT 5:23 P.M. Ayes : Nays : Absent: Wood , Allen , Wiggins , Hayes None Vandermee 3 The motion carried . * * * * * 4