Loading...
HomeMy WebLinkAbout1992-10-27 FPB MINUTES! FIREFIGHTERS' RETIREMENT BOARD MEETING October 27, 1992 The regular meeting of the Englewood Firefighters' Retirement Board was called to order by Chairperson Chris Olson at 2 :07 p .m. in the George Perrin Room of the Englewood Public Library, 3400 South Elati Street. Members Present : Members Absent: Others Present : A quorum was present. Approval of Minutes Chris Olson, Chairperson Willis "Shorty" Resley, Council Appointee Loren Ward, Employee Representative Bill Young, Employee Representative Clyde Wiggins, Mayor Lorraine Hayes, Director of Financial Services None Rick DeWitt, City Attorney Brenda Castle, Deputy City Clerk EFF A Members Michael Gruninger Richard Edison Jerry Jarrett * * * * * MAYOR WIGGINS MOVED, AND MS. HA YES SECONDED, TO APPROVE THE MINUTES OF THE REGULAR MEETINGS OF MARCH 24, 1992, MAY 4, 1992 AND OCTOBER 8, 1992, AND THE JOINT MEETING OF MAY 4, 1992. Ayes : Nayes: T he motion carried . OLD BUSINESS Olson , Resley , Ward , Young, Wiggins, Hayes None * * * * * Review of Payout Options Ms. Hayes told the Board that, at the full membership meeting in April, 1992, considerable interest was shown in a plan that would allow for different payout options. Because of that interest, a summary of the options currently available for the non-emergency pension plan was sent to the members of the Firefighters' Pension Board as well as to the membership of the Old Hire Pension Plan asking for their input and ideas. Ms . Hayes pointed out that, on the survey, the option titled Qualified 50% Joint and Survivor Benefit should have shown a beneficiary lifetime benefit equal to 50% of the retirement benefit. Mr. Olson reminded those present that the surveys must be returned by November 6, 1992 and will be discussed at the full membership meeting November 12, 1992 at 7 :00 p.m . in the Safety Services training room. Mr. Gruninger pointed out that the language on the survey refers to "one-third of the salary of a first grade firefighter" which, in Englewood, is the lowest, rather than the highest, grade. He asked if it would be simpler, since the State pension statutes refer to first grade firefighters as the highest rank, to change back to that system. Ms. Hayes noted that erroneous information was used in the actuarial report because the rate of pay for first class firefighters was used. In response to a question by Mr. Edison, Ms. Hayes said the error would not effect the whole report, but would only substantially impact on one of the calculations. Discussion ensued regarding the error and reclassifying the firefighters . Mr. Olson said the matter would be addressed. The error will be corrected and the actuarial report will include the correct information. * * * * * Reminder of Board Member Election Mr. Olson stated that a nomination form was sent to the membership to fill a vacancy created by the expiration of Loren Ward's term December 31, 1992. The nomination form is to be returned by November 6, 1992 . Mr. Ward said he will be out of town for the winter months, approximately November through March, and, although he wouldn't mind serving again, he does not want to create a problem for the Board or the membership. Mr. Olson explained that policies and procedures are not in place to cover extended absences by Board members . Mr. Ward said that, during his winter absence last year, his intention was to call in his vote if the need had arisen. He felt it was ultimately up to the membership whether his absence 2 '· .• was an issue or not Ms. Hayes noted that two of the four regularly scheduled board meetings would occur during Mr. Ward's absence . * * * * * NEW BUSINESS Review of 1992 Actuarial Report Don Mazanec of William M. Mercer, Inc . presented the 1992 Actuarial Report. He addressed the 20% Supplemental Disability Benefit, stating that the benefit has been included in the liabilities of the Old Hire Plan and all the contributions for the disability group are also in this plan . The question is whether the 20% Supplemental Disability applies only to Old Hires and whether the benefits and assets should be moved to a separate fund . City Attorney DeWitt stated his firm opinion that the 20% Supplemental Disability Benefit applies to all firefighters , new, old and to-be-hired . He believes it should be a separate fund. Mr. Olson stated that if a new hire firefighter goes out on disability , it will come out of the fund established for old hires because there is not a separate fund for new hires . Mr. Mazanec said Mercer's actuarial evaluation included all liabilities and all assets and , therefore, the contribution rate that was calculated for the City included the contribution for the disabili ty fund . The problem he ha s is that the report included gross liabilities and assets for old hires and no liability for new hires . Mr. Gruninger said Jim McCurdy, a new hire , is currently drawing from the 20% Supplemental Disability Benefit. Mr. Ward stated that, when the benefit was negotiated, it was intended to be a temporary benefit, not a pension, and not part of the pension plan . He feels the funds never should have been mingled and questioned why they were . Ms. Hayes said it was probably done because it is in the Municipal Code under the section pertaining to the old hire pension plan . Mr. Mazanec stated that he needs direction from the Board as to whether the liability for the 20% should be in a separate fund , and , if so , the amount of the asset values available for t he disability fund. Also, should Fire and Police disability be separated from the respective old hire pension plan and combined as one fund? 3 Ms. Hayes felt it would be a possibility to combine the funds because the entire amount is paid for out of the City's portion, not out of Fire or Police employees' contributions. She noted that the Code would have to be changed . Mr. Edison said he opposes co-mingling of fire disability funds with police funds . Mr. Olson said the 20 % disability benefit contribution belongs to th e City and they can do what they want with it. Mr. Edison asked ifthe language is exactly the same in the Police 20% Supplemental Disability Fund as in Fire's, and Mr. Olson responded affirmatively . MR. OLSON MOVED, AND MR. WARD SECONDED, TO PURSUE WORKING WITH LORRAINE HA YES, THE BOARD, RICK DEWITT AND DON MAZANEC TO ESTABLISH A PROCEDURE AND POLICY FOR SEPARATING OUT THE 20% DISABILITY BENEFIT FROM THE FIREFIGHTERS' PENSION FUND AND, FURTHER, COMBINING THAT 20% FUND WITH THE POLICE 20% DISABILITY SUPPLEMENT FUND. Ayes : Olson, Resley , Ward , Young, Wiggins , Hayes Nays : None The motion carried . The Board discussed the possibility of changing the ordinance so that future hires would not receive the 20% b enefit. Mr. Young said he w ould not support su ch action . Discussion ensued. It was decided that the issue would be researched. * * * * * Validation of Lloyd Cox's Pension Ms. Hayes informed the Board that Mr. Cox left the City's employ in 19 87 , deferring retirement until he reached retirement age in the Fall of 1992 , at which time he began receiving payments . It is customary for the Board to review and validate retirements . MR. WARD MOVED, AND MR. WIGGINS SECONDED, TO VALIDA TE LLOYD COX'S RETIREMENT PAYMENT OF $1,271.98AFTER17.726 YEARS OF SERVICE. Ayes : Olson , Resley, Ward , Young, Wiggins , Hayes Nays : None The motion carri ed . 4 * * * * * Consideration of Affiliation with FPP A At the October 8 , 1992 meeting of the Firefighter's Pension Board, Ms. Hayes mentioned that the old hire police had requested she look into possible affiliation with FPP A. The Board had requested that she provide the firefighters with information as well . She told the members that, if affiliation took place, FPP A would take over administration of the plan . They would receive all the existing assets of the old pension plan for those employees who accept affiliation . Affiliation must be approved by 65% of the membership , after which members will have the option of staying with the old plan or going with FPP A. FPP A would then administer the plan for those who had already retired , the vested employees who haven't yet retired and for the acti v e members who decide to stay with the old plan . A calculation would be done by FPP A at that point to determine how much is then needed to actuarially fund the plan . She further explained the results of the investigation, touching on the services, requirements and procedures that would be in place if FPPA became the administrator. She felt there were both advantages and drawbacks to affiliating . There is a possibility that the old hire plan would be hurt, depending on who opted in and who did not. Mr. Olson suggested , and the Board agreed, sending the information to the current members and discussing the matter at the meeting of November 12 , 1992 . Ms. Hayes said it should be emphasized that there is a one-time chance to affiliate . They would not be given the opportunity again if the vote failed . Mr. Gruninger asked who would make up the difference if the actuarial report showed the fund was short . Ms. Hayes said this had not been determined , but that FPP A would not accept an unfunded liability . Mr. Mazanec said the funding would have to be made up by the employees and/or the City . * * * * * The meeting was adjourned at 3 :05 . p .m . vl/)f d,i o a:r1t2/J_ Deputy City/Jerk 5