HomeMy WebLinkAbout1993-04-08 POPB MINUTES•
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POLICE PENSION BOARD MEETING
April 8, 1993
A regular meeting of the Englewood Police Pension Board was called to order by
Chairperson Norm Wood, at 1 :45 p .m . in the Conference Room of the Englewood
Police/Fire Complex, 3615 South Elati Street.
Members Present:
Members Absent:
Others Present:
Norm Wood, Chairperson
Ralph Allen, Employee Representative
Dave Miller, Employee Representative
James Phelps, Council Appointee
Clyde Wiggins, Mayor
Lorraine Hayes, Director of Financial Services
None
Rick DeWitt, City Attorney,
Don Mazanec, William M . Mercer Inc .
Carol Wescoat , Recording Secretary
A quorum was present.
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Approval ofMinutes
MR . ALLEN MOVED, AND MR. MILLER SECONDED, TO APPROVE THE
MINUTES OF THE REGULAR MEETING OF JANUARY 14, 1993 AND THE JOINT
MEETING OF MARCH 23, 1993 . MS . HAYES MOVED TO AMEND THE DATE
ON THE MINUTES FOR THE MEETING OF MARCH 23 , 1993 TO THE CORRECT
DATE AND MR. WOOD SECONDED.
Ayes :
Nays :
Absent:
Wood, Allen , Miller, Phelps, Wiggins, Hayes,
None
None
The amendment carried.
The board voted on the motion as amended .
Ayes :
Nays:
Absent:
The motion carried.
Wood, Allen , Miller, Phelps, Wiggins , Hayes,
None
None
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SEATING OF NEW :MEMBER
Ms . Hayes welcomed newly appointed Council appointee, James Phelps, to the board .
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OLD BUSINESS
20% Supplemental Disability Benefit
Ms . Hayes and Mr. DeWitt reviewed the draft of the 20% Supplemental Disability
ordinance that is to be presented for discussion at the April 19, 1993 City Council Study
Session . Future funding of the 20% Supplemental Disability will be put into the Health
Selflnsurance Fund . The Police do not currently have any recipients of the benefit, so
there will be no transfer of funds from the Pension Plan to fund any liability . The
Firefighters Pension Plan will fund their current liability for recipients of the benefit.
Mr. Wood questioned the regulation and approval of applications for the 20%
supplemental disability benefit once the funds are no longer a part of the Police Pension
Plan fund .
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Mr . DeWitt stated the administration of the 20% disability benefit will continue to be done
by the Police Pension Board . This provision is reflected in the ordinance draft. •
The members decided to meet again prior to the City Council Study Session on April 19 ,
1993 to discuss the draft ordinances .
Analysis of Boston Company Investments
The members discussed that the Boston Company appears to be performing at below the
industry average . They felt that it would be good to have a Joint Board Meeting to
evaluate the possibility of changing investment companies .
Ms . Hayes offered to provide sales literature she has received from other investment
companies .
Mr. Mazanec suggested the Boards review their current investment policies for possible
changes and view the Joint meeting as an educational meeting .
The meeting will be scheduled during May.
NEW BUSINESS
1992 Actuarial Report
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Mr. Mazanec reviewed the 1992 Actuarial Report Draft noting the change in actuarial
assumptions and procedures on page 1.
Ms . Hayes commented the Contribution Alternatives page was critical as it indicated the
percent of pay that should be contributed has risen from 39.4% to 42 .0%. There has been
no formal request by the board to increase the contribution .
Discussion ensued relating to the probability of the City Manager and City Council
increasing the City's contribution rate . There seems to be a concern with the memberships'
perceived Jack of willingness to contribute to additional funding of the liability . The
Council and management might be more willing to contribute the necessary amount to
reduce the unfunded liability ifthe membership were willing to make an additional
contribution.
Mr. Wood felt the membership might consider an increase in contribution if there were a
cost of living adjustment after retirement.
Mr. Mazanec stated the unfunded liability does not consider a cost of living adjustment. A
rule-of-thumb to follow is every 1 % cost ofliving adjustment increases the liability 10%.
It was decided that a proposal would be prepared for the membership .
Discussion followed on other possible funding mechanisms for the liability .
Attendance of Meetings
Ms . Hayes presented the meeting attendance records to the board. The meeting attendance
record is reviewed by the City Council when appointing a new member .
Mayor Wiggins commented that the board should take action to remove board members
not attending meetings .
Mr. DeWitt suggested the non-attending board members should be given notice after
missing two meetings and provided an opportunity at the next meeting to present their
arguments before being removed from the board .
Clarification of Service for participants who had transferred into plan from within the City
Mr . Wood requested a clarification of service for participants in the plan who, prior to
becoming police officers , had been employed by the City police department as civilians .
Mr. DeWitt will have an opinion for the next meeting .
Discussion ensued relating to the participants who's status would be effected by prior
emplo yment.
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Historical Cash Flow of Plan Funds
Ms . Hayes presented cash flow reports since 1957 and related the reports to the actuarial
report .
Disability Request from Sheryl Shicora
MR. ALLEN MOVED , AND MR. MILLER SECONDED, TO ACCEPT THE
APPLICATION FOR THE 20% SUPPLEMENTAL DISABILITY BENEFIT .
Ayes :
Nays :
Absent:
The motion carried .
Wood, Allen , Miller, Phelps, Wiggins, Hayes,
None
None
Mr. Miller ex plained that Ms . Shicora has completed the FPP A disability hearings . She
had surgery on her knees scheduled as well as physical-therapy . She received an
occupational disability from the FPP A and will be re-evaluated in one year .
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Ms . Shicora will receive a 30% disability income from the FPPA and the medical expenses •
will be paid by workers' compensation .
Discussion followed relating to Ms . Shicora's eligibility for the 20% disability benefit,
according to the code, based on her occupational disability .
Mr. DeWitt stated the 20% Supplemental Disability Benefit is for permanently disabled
police. The information currently available indicates she will not be eligible for the benefit.
Mayor Wiggins asked Mr. Wood to schedule a hearing for Ms . Shicora as soon as
possible.
Ms . Sh icora will be notified of the decision of the board and a tentative time will be
scheduled for April 19 , 1993 , 4 :00 p .m . if she requests a hearing .
MOTION FOR HEARING
Ayes :
Nays :
Absent:
The motion carried .
Wood, Allen , Miller, Phelps, Wiggins , Hayes,
None
None
MR . ALLEN MOVED, AND MS . HA YES SECONDED, TO DENY THE 20%
SUPPLEMENT AL DISABILITY BENEFIT TO SHERYL SHI CORA .
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Ayes :
Nays :
Absent:
The motion carried .
Wood, Allen, Miller, Phelps, Wiggins, Hayes,
None
None
Review oflssue Sheet for 4/19/93 Meeting with City Council
Ms . Hayes reviewed the Issue Sheet for the April 19, 1993 study session .
Mr. Wood will present the issues .
MR. MILLER MOVED, AND MS . HA YES SECONDED, TO ADJOURN .
Ayes :
Nays :
Absent:
Wood, Allen, Miller, Phelps, Wiggins, Hayes,
None
None
The meeting adjourned at 3 :10 p .m.
&id (/2Jo~·
Carol Wescojl
Recording Secretary
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