HomeMy WebLinkAbout2012-08-09 FPB MINUTES..
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FIREFIGHTERS PENSION BOARD MEETING
August 9 , 2012
A regular meeting of the Englewood Firefighters Pension Board was called to order by Chairperson
Lockwood at 4:00 p.m. in the Public Works Conference Room of the Englewood Civic Center, 1000
Englewood Parkway.
Members Present:
Members Absent:
Others Present:
A quorum was present.
Kieth Lockwood , Chairperson , Employee Representative
John Garcilaso , Employee Representative
Frank Gryglewicz, Director of Finance and Administrative Services
Grayson Hartley, Employee Representative
Randy Penn, Mayor
Carolyne Wilmoth, Council Appointee (notice)
Daniel Brotzman , City Attorney
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Seating of Elected Board Member, Grayson Hartley
The Board congratulated Grayson on his election to the Firefighters Pension Board . Mr. Hartley's term
will expire December 31, 2014 .
Approval of Minutes of the February 9, 2012 Regular Meeting
MR. GRYGLEWICZ MOVED TO APPROVE THE FEBRUARY 9, 2012 MINUTES OF THE
REGULAR BOARD MEETING. 'MAYOR PENN SECONDED.
Ayes:
Nays :
Absent:
The motion carried .
Garcilaso, Gryglewicz, Hartley, Lockwood, Woodward
None
Wilmoth
Review ofFPPA Volunteer and Firefighters Plan Statements
The Board reviewed the FPPA quarterly statements.
January l, 2012 Firefighters Actuarial Report
The Board reviewed the January 1, 2012 Firefighters Actuarial Report. The required City contribution for
2013 and 2014 is $237,746. The required contribution increased from $154,023 for 2011 and 2012 .
MR . GARCILASO MOVED TO ACCEPT THE JANUARY 1, 2012 FIREFIGHTER ACTUARIAL
REPORT . MR. GRYGLEWICZ SECONDED.
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Ayes:
Nays :
Absent:
The motion carried.
Garcilaso , Gryglewicz, Hartley, Lockwood , Woodward
None
Wilmoth
Notification of the Death of Jay Seay and Approval of Funeral Benefit
Jay Seay, retired Firefighter, passed away on May 13 , 2012 . No further monthly benefits are due after the
May 31 , 2012 payment.
MR. GRYGLWICZ MOVED TO APPROVE THE $500 FUNERAL BENEFIT FOR JAY SEAY . MR.
HARTLEY SECONDED .
Ayes:
Nays:
Absent:
The motion carried.
Garcilaso, Gryglewicz, Hartley, Lockwood , Woodward
None
Wilmoth
Discussion of 100% Joint and Survivor Payout Option
Mr. Gryglewicz asked Ms . Wescoat to explain the issue.
Ms . Wescoat explained that when the last active firefighter was provided the optional payment
calculations, the FPPA actuary went into great detail to explain that the IRS does not allow the Plan to
provide the beneficiaries a benefit greater than the benefit the retiree was receivin g at the time of death .
The detailed explanation made it clear that the payment option most beneficial to the retiree was the 50 %
Joint and Survivor option. None of the calculations provided to retiring firefighters in the past were
pre sented with the caveat that the beneficiary must receive less than the retiree . The excess amount
comes from the Plan 's death benefit which is a separate calculation from the payment options that are
elected by the retiring firefighter. The separate death benefit is the greater of fifty percent of the retiree 's
benefit or one-third of a first grade firefighter at the time of the firefighter' s retirement.
Ms . Wescoat further commented that when the Plan document was created , the pension attorney at the
time said , the Plan was allowing firefighters to elect an option that provides beneficiaries a benefit greater
than the benefit the retiree was receiving. Since that time , there have been three retirees who elected the
100 % Joint and Survivor payout option for the retirement benefit. The optional payment forms other than
a single lifetime payment to the retiree are 100 % Joint and Survivor, 50% Joint and Survivor or the Five
Year Certain and Lifetime .
When the goal is to provide a survivor benefit, the 100 % Joint and Survivor option provides the retiree
less than the 50% Joint and Survivor when considering the IRS restrictions of not paying death benefits
greater than the retiree 's benefit. The greater benefit of electing the 50% Joint and Survivor option should
have been explained to the retirees. Ms. Wescoat provided an estimate of the difference in benefits the
three retirees could have received had they elected the 50 % Joint and Survivor option .
The Board discussed the legal liability and the options available . The Board agreed to have sample letters
for each of the three retirees impacted at the next meeting. The Board will discuss the issue again at the
November meeting.
Fire fi g hte rs Pe ns ion Board Meet in g
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Discussion of current status of Volunteer Firefighters Plan
Ms . Wescoat stated that considering the number of Volunteer Firefighter Plan recipients who died during
the past year and the overall age of the remaining retirees and survivors , no alternative payment methods
have been researched. The Board agreed to continue monitoring the number of benefit recipients and
determine if there is a need to research alternative payments at a later date.
Consideration of cancelling the November 8, 2012 meeting making the next meeting February 14, 2013
The Board agreed a November meeting is necessary and set the date as November 1, 2012 at 3:00 p.m.
Members Choice
No items were discussed.
MR. GARCILASO MOVED TO ADJOURN. MAYOR PENN SECONDED .
Ayes :
Nays:
Absent:
The motion carried.
Garcilaso, Gryglewicz, Hartley, Lockwood, Woodward
None
Wilmoth
Meeting adjourned at 4:55 p .m .
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Carol Wescoat
Recording Secretary
Firefi g hters Pens ion Bo ard Me etin g
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