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HomeMy WebLinkAbout1993-04-08 FPB MINUTESI FIREFIGHTERS PENSION BOARD l\1EETING April 8, 1993 A regular meeting of the Englewood Firefighters Pension Board was called to order by Board Chairperson Chris Olson at 3 :20 p.m . in the Conference Room of the Englewood Police/Fire Complex, 3615 South Elati Street. Members Present: Members Absent: Others Present: Chris Olson, Chairperson Willis Resley, Council Appointee Mike Gruninger, Employee Representative Bill Young, Employee Representative Clyde Wiggins, Mayor Lorraine Hayes, Director of Financial Services None Rick DeWitt, City Attorney Don Mazanec, William M . Merce r Inc . Carol Wescoat, Recording Secretary A quorum was present. * * * * * Approval of Minutes MAYOR WIGGINS MOVED TO APPROVE THE MINUTES OF THE REGULAR l\1EETING OF JANUARY 12 , 1993 . MS. HAYES SECONDED . Ayes : Nay s : Abs ent: The motion carried . Olson, Young, Resley, Gruninger, Wiggins , Hayes, None None MS . HA YES MOVED TO APPROVE THE MINUTES OF THE JOINT l\1EETING OF MARCH 23 , 19 93 ; WITH THE Al\1END1\1ENT OF THE DATE CORRECTED FROM APRIL 23 , 1993 TO MARCH 23 , 1993 . MAYOR WIGGINS SECONDED. Ayes: Nays : Absent: The motion carried . Olson, Young, Resley, Gruninger, Wiggins, Hayes None None SEATING OF COUNCIL APPOINTEE WILLIS RESLEY Willis "Shorty" Resley's re-appointment by the City Council to the Firefighters Pension Board was acknowledged . Chairperson Olson welcomed Mr. Resley to another term on the Board . OLD BUSINESS Consideration of Approval of amount for Garcilaso retirement benefit Mr. Gruninger questioned Mr . Garcilaso's eligibility to receive benefit if working for another fire agency . Chairperson Olson stated the State statute restricting benefits was overturned last year with FPP A support. MR. GRUNINGER MOVED TO APPROVE A $2, 130.64 MONTHLY RETIREMENT BENEFIT FOR JOHNNY GARCILASO TO BEGIN AT AGE 50. MR. RESLEY SECONDED. Ayes : Nays : Absent: Olson, Young, Resley, Gruninger, Wiggins , Hayes None None Consideration of William Mercer Inc . examples of payout options Mr. Mazanec reviewed the options in the examples and explained the current payout benefit is according to the State statutes : He feels that creating additional payout options could possibly be a problem for IRS . The changes would mean restating the plan. Discussion ensued regarding the change of benefit as it relates to the non-married employee and any discrimination issues as well as the impact on the fund. Changing the payout options would basically provide for the beneficiary of the non-married employee or an increase in monthly benefit if there is no beneficiary . Ms. Hayes pointed out that restating the plan would require a vote of the members and there is a great deal of work involved in restating the plan . Discussion followed related to restating the plan and the probability of approval by the membership . MR. GRUNINGER MOVED TO PROCEED WITH A RESTATEMENT OF THE PLAN FOR ALTERNATIVE FORMS OF PAY-OUT AT RETIREMENT. MR. YOUNG SECONDED . 2 ' 'J Discussion : Ms. Hayes asked ifthere were a middle ground between proceeding with restatement and abandonment of restatement to allow an additional solicitation of the members in support of the restatement through meetings . Chairperson Olson concurred, provided the support of the board members does not encourage an attitude that the City is trying to plunder or actually somehow intending to reduce the firefighters benefits . Ms. Hayes caveat is the. possibility of increasing the employee contribution . Ayes: Nays: Absent: The motion carried . Olson, Young, Resley, Gruninger Hayes, Wiggins None Discussion issued clarifying the process will begin with a meeting of the membership to ensure interest exists in changing the payout option . Mr. Mazanec commented that the retiree benefits will not be changed and questioned the retirees need to vote on the restatement. Consideration of FPPA affiliation Ms. Hayes explained that although consideration of FPP A affiliation was presented at the last board meeting there was not a quorum present at the point of voting . Discussion followed indicating a possibility of not voting on FPP A affiliation at this time because of the FPP A restrictions of a "one time affiliation vote." MR. GRUNINGER MOVED TOT ABLE THE FPPA AFFILIATION VOTE. MAYOR WIGGINS SECONDED . Ayes : Nays : Absent: Olson, Young, Resley, Gruninger, Wiggins, Hayes None None Consideration of reclassification of firefighters positions to correspond with State Statutes Ms . Hayes explained the classification of a first grade firefighter by City standards is the opposite of State statutes and the board may wish to make a formal request to rename the position. MR. GRUNINGER MOVED TO PROCEED WITH A REQUEST TO RENAME FIRST GRADE FIREFIGHTER TO CONFORM WITH STATE STATUTES . MR. YOUNG SECONDED. 3 Ayes: Nays: Absent: The motion carried . Olson, Young, Resley, Gruninger, Wiggins , Hayes None None Mayor Wiggins left at 4:05 p.m. A quorum was retained . Sheridan's acceptance of volunteer firefighters settlement Ms. Hayes stated that Sheridan has accepted the City's offer on the volunteer firefighters settlement and that Mr. DeWitt has drafted an ordinance with an intergovernmental agreement that will go to City Council on April 19th . Mr. DeWitt explained the current amount of $55,890 will change with interest as the actual time of payment is determined . Mr. Gruninger questioned whether the board has the authority to transfer their plan funds to the City of Sheridan without City Cou.ncil approval. Mr. DeWitt explained that an intergovernmental agreement must go before the City Council. Discussion ensued related to the amount and benefit calculation based on the actual years with Englewood and prorating of service. Mr. DeWitt distributed a copy of the present value of benefits to board members . Further discussion related to the board's vote on the issue followed . Chairperson Olson clarified that the board had voted to submit the offer to Sheridan and based on that vote the offer was approved . Chairperson Olson referred to the October 8, 1992 minutes indicating the consensus of the board members present was that the formula had been voted on by a quorum at the March 24 , 1992 meeting . The amount offered was based on that formula and there was no further vote necessary . CHAIRPERSON OLSON MOVED APPROVAL OF THE FIREFIGHTERS PENSION BOARD ATTORNEY SUBMITTING AN ORDINANCE TO THE CITY COUNCIL AUTHORIZING THE TRANSFER OF FUNDS TO SHERIDAN BASED ON THE CALCULATIONS DERIVED BY WILLIAM M . MERCER INC., WHICH WILL BE ACCURATE TO THE DATE THE ORDINANCE TAKES EFFECT . MS. HAYES SECONDED . Ayes : Olson , Young, Resley, Hayes Nays : Gruninger 4 Absent: Wiggins The motion carried . 20% Supplemental Disability Benefit Ms. Hayes and Mr. DeWitt presented the ordinance draft that separates the funds for the 20% Supplemental Disability Benefit from the Firefighters Pension funds . Mr. DeWitt stated that primarily this will be an administrative/accounting change. The ordinance does not change the eligibility nor the amount of the benefit. The ordinance provides the funding for the benefit to be placed in the Health Self Insurance fund . Mr. Mazanec pointed out that currently there are four ( 4) firefighters receiving the benefits and the amount to fund these recipients has been calculated at approximately $100 ,000 . Discussion ensued explaining the benefit and funding . MS . HA YES MOVED THE FIREFIGHTERS PENSION BOARD RECOMMEND TO THE CITY COUNCIL AN ORDINANCE TRANSFERRING THE 20% SUPPLE- MENT AL DISABILITY BENEFIT OUT OF THE OLD HIRE FIRE PENSION FUND TO THE HEALTH SELF INSURANCE FUND. CHAIRPERSON OLSON SECONDED . Discussion : Mr. Gruninger requested the motion be amended to limit the amount. Further discussion specified actual payment calculations in an amount of approximately $152,000 .00 . Mr. Mazanec estimated an actuarial calculation of the liability amounted to approximately $104 ,000 . Mr. DeWitt left at 4 :50 p .m. MR. GRUNINGER MOVED FOR AN AMENDMENT TO THE MOTION RECOMMENDING TO THE CITY COUNCIL AN ORDINANCE TRANSFERRING THE 20% SUPPLEMENT AL DISABILITY BENEFIT OUT OF THE PENSION FUND TO THE HEAL TH SELF INSURANCE FUND IN AN AMOUNT NOT TO EXCEED $104,000 . MR . RESLEY SECONDED. Ayes : Nays: Absent: The motion carried . Young, Resley, Gruninger Hayes, Olson Wig g ins CHAIRPERSON OLSON CALLED FOR A VOTE ON THE MOTION AS AMENDED RECOMMENDING TO THE CITY COUNCIL AN ORDINANCE TRANSFERRING 5 . THE 20% SUPPLEMENT AL DISABILITY BENEFIT OUT OF THE PENSION FUND TO THE HEALTH SELF INSURANCE FUND AN AMOUNT NOT TO EXCEED $104,000. CHAIRPERSON OLSON SECONDED. Ayes : Nays: Absent: The motion carried . Hayes, Olson, Resley Young, Gruninger Wiggins Analysis of Boston Company investments Ms . Hayes has attempted to arrange with the other pension boards a time for a Joint Board meeting . The consensus was sometime in May would be considered . NEW BUSINESS 1993 Actuarial Report Mr. Mazanec reviewed the actuarial report draft . Discussion followed related to the report . Mr. Gruninger questioned the percentage change in contribution amount and Chairperson Olson explained the amount is subject to change . Additional discussion related to the unfunded liability and the change of contribution percentage. Groditski pension to begin at retirement age MR. GRUNINGER MOVED TO APPROVE A $2,022.09 MONTHLY RETIREMENT BENEFIT FOR WALTER GRODITSKI TO BEGIN AT AGE 50. MS . HA YES SECONDED . Attendance of meetings Ms . Hayes reviewed the attendance record distributed to the members . The record is for information purposes and discussion indicated that adequate notification increases attendance . Review oflssue sheet for 4/19/93 meeting with City Council 6 .. ; Ms. Hayes reviewed the issue sheet for the City Council Study Session . Chairperson Olson will present the issues to the Council. MEMBERS CHOICE Mr. Gruninger questioned the lack of State funding for their pension plan. Chairperson Olson explained the City's past decision to not participate in State funding because of an assessment of a property tax mill levy. Mr. Mazanec further outlined some of the loop holes involved in State funding . Mr. Gruninger stated he will pursue the eligibility of receiving State funding on his own. CHAIRPERSON OLSON MOVED TO ADJOURN. MS . HA YES SECONDED. Ayes : Nays: Absent : The motion carried . Young, Resley, Gruninger, Hayes, Olson None Wiggins Meeting adjourned at 5 :50 p .m. -; { 111-t{ lviac ~a >/- caro1 Wescoat Recording Secretary 7