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HomeMy WebLinkAbout1994-01-14 FPB MINUTES• • • FIREFIGHTERS PENSION BOARD l\.1EETING January 14, 1994 A regular meeting of the Englewood Firefighters Pension Board was called to order by Board member Frank Gryglewicz at 3:02 p.m. in Conference Room B of the Englewood City Hall, 3400 South Elati Street. Members Present: Members Absent : Others Present: Jay Seay, Employee Representative Willis Resley, Council Appointee Mike Gruninger, Employee Representative Bill Young, Employee Representative Frank Gryglewicz, Acting Director of Financial Services and Chief Accountant Sheri Gulley, Mayor Rick DeWitt, City Attorney Carol Wescoat, Recording Secretary A quorum was present. * * * * * SEATING OF BOARD MEMBER Mr. Gryglewicz congratulated Mr. Seay on being elected to the pension board. He also expressed appreciation for Clyde Wiggins and Chris Olson's service on the Board. MR. GRYGLEWICZ MOVED TO NOMINATE BILL YOUNG AS CHAIRPERSON FOR THE BOARD. MR. GRUNINGER SECONDED. Ayes: Nays: Abstention Absent : The motion carried. Approval of Minutes Resley, Gruninger, Gryglewicz None Young Gulley * * * * * MR. GRUNINGER MOVED TO APPROVE THE MINUTES OF THE REGULAR MEETING OF OCTOBER 14, 1993. MR. GRYGLEWICZ SECONDED. I Ayes : Nays: Absent: The motion carried . Young, Resley, Gruninger, Gryglewicz None Gulley MR. GRUNINGER MOVED TO APPROVE THE MINUTES OF THE JOINT BOARD MEETING OF OCTOBER 27, 1993 . MR. GRYGLEWICZ SECONDED. Ayes : Nays : Absent : The motion carried. OLD BUSINESS Young, Resley, Gruninger, Gryglewicz None Gulley * * * * * Review of Ordinances for Separate Funding of20% Supplemental Disability Mr. Gryglewicz mentioned a meeting with Bill Young and Mike Gruninger during which they discussed a compromise of paying the current 20% Supplemental Disability Benefit recipients from the pension fund and not transferring any funds to the Health Self Insurance Fund. New recipients would be paid from the Health Self-Insurance. The City would provide funding on a pay-as-you-go basis. This would require amending the ordinance approving the transfer of funds. Mr. DeWitt outlined an agreement with the Firefighters' attorney, Mr. John McNally. He stated that making payments from the pension fund is in conflict with the current Municipal Code and the proposed ordinance. Discussion followed related to the agreement, as set forth in Municipal Code, the attorneys, and the separate discussion by Gryglewicz, Gruninger and Young pertaining the to payment of current recipients. Mr. DeWitt clarified the payment of the 20% Supplemental Disability payments must be from a separate fund and should not be paid from the pension fund. He also stated the City may agree to leave the amount previously designated as 20% Supplemental Disability Funds in the pension fund. MR. GRUNINGER MOVED TO HA VE THE 20% SUPPLEMENTAL DISABILITY FUND REMAIN AT ITS CURRENT STATUS AND THOSE CURRENTLY RECEIVING BENEFITS BE PAID FROM THE PENSION FUND UNTIL THEIR 2 • • • • • • BENEFITS TERMINATE. THE FIREFIGHTERS PENSION FUND AND THE CITY WOULD START A NEW 20% SUPPLEMENTAL DISABILITY FUND FOR THE NEWLY ELIGIBLE RECIPIENTS , FUNDED BY THE CITY. The motion died for lack of a second. Mr. DeWitt explained that the agreement with the attorneys was not what Mr. Gruninger was proposing. The resolution of the agreement is to remove the money from the pension fund and move it to the disability fund . If the City agrees to not transfer all moneys designated as disability funds , the agreement would be separate from the conclusion negotiated by the attorneys . Mr. DeWitt made the point that the attorneys' agreement was that t he funds were improperly paid to the Pension Fund, and the funds should revert to the City t o fund t he 20% Supplemental Disability Benefit. Legally, the attorneys have agreed t here are two plans and the payment of the 20% Supplemental Disability should be from the Health Self-Insurance Fund . Discussion followed clarifying the most recent actuarial report indicates the transfer has been completed. However, the transfer in the actuarial report was for actuarial purposes only. The Board further discussed the legality of payments for the 20% Supplemental Disability Benefit being made from the pension fund. Mr. DeWitt suggested the paperwork be done to leave the 20% Supplemental Disability funds in the pension plan and make payments to the Health Self Insurance fund as necessary for current recipients . Mr. DeWitt proposed the agreement include the following: 1. Continue to pay for current recipients of 20% Supplemental Disability Benefits. 2 . Keep the funds ip pension fund. 3 . Transfer money from the Pension Fund to the Health Self-Insurance Fund on a monthly basis to pay for current recipients . 4 . New recip ients of20% Supplemental Disability Benefits will be paid on a pay- as-you-go basis in the Health Self-Insurance Fund. 5 . When all current recipients have exhausted their eligibility, balance of funds remains in pension fund to reduce unfunded liability. Mr. Gruninger inquired if, after reducing the unfunded liability, there was any possibility of increasing the pension benefits . Mr. DeWitt stated he did not foresee increasing benefits . The actuarial report does not indicate the possibility of increasing benefits. Discussion followed relating to the wording in Code referring to refunding of contributions . Mr. DeWitt explained the refunding of contributions does not apply to the 20% Supplemental Disability Benefit, because the employees do not make contributions, it is funded entirely by the City. 3 Mr. DeWitt agreed to prepare the agreement and revise the ordinances for the Board members to review prior to the next meeting. Section E will change and a resolution to allow Financial Services to transfer funds as necessary. James Haugsness Retirement Benefit Chairperson Young reviewed James Haugsness final retirement benefits calculation (a terminated vested fi r efighter) which began, January 6, 1994, his 50th birthday. Approval of the benefit was completed during the October meeting. Investment Managers Search Mr. Gryglewicz reminded the Board of the investment managers search . The next joint board meeting has not been scheduled. Mr. Gryglewicz suggested the meeting be soon after the next reports from The Boston Company are received . He also stated that Mr. De Witt is researching the restrictions on investments. William M. Mercer, Inc. will provide the Boards with their suggested investment policies after Mr. DeWitt has researched each plans restrictions . Mr. DeWitt stated that State Statutes contain approximately twenty-five sections relating to investment restrictions . * * * * * MEMBERS CHOICE Mr. Seay inquired about the availability and sources of historical records for the pension. Chairperson Young responded most records are available through Financial Services. Chris Olson also has a fairly complete file of the historical records that he will make available to members . Mr. Gruninger inquired why we use William M. Mercer, Inc. Chairperson Young stated we had first used William M . Mercer, Inc ., for the first investment manager search and had remained with them since that time . Mr. Gryglewicz suggested discussion at the next Joint Board Meeting ifthere is an interest in other actuaries. 4 • • • • Mr. Gruninger commented that during the investment managers search process, the statement was made that some of the services provided by William Mercer would be provided by other investment managers with no additional fees . Mr. DeWitt offered his recollection of the use of the actuaries. At one point in time all of the Plans had a substantial loss. The decision was made at that time to separate the investment managers from the actuary. Discussion followed relating to the billable services that William M. Mercer, Inc., provides. MR. GRUNINGER MOVED TO PAY ONE-HALF OF THE FEES TO MCNALLY. Mr. Gruninger commented that the fees should be paid as provided by Code if there is a conflict . Mr. DeWitt did not agree that there had been a conflict. Mr. Gryglewicz would like to wait for a total bill before proceeding. Chairperson Young will provide the amount Mr. Resley would not offer a second until the total bill had been determined. • The motion dies for lack of a second. • MR. GRUNINGER AMENDED THE MOTION TO PAY ONE-HALF OF THE FEES TO MCNALLY NOT TO EXCEED TWENTY-FIVE HUNDRED DOLLARS ($2,500.) MR. RESLEY SECONDED. Ayes : Nays: Abstention Absent: The motion carried. Resley, Gruninger, Gryglewicz Young Seay Gulley Chairperson Young inquired about a token of appreciation to Mayor Wiggins and Chris Olson other than a letter. He would like to see additional recognition for their service. MR. GRUNINGER MOVED TO ADJOURN. MR. GRYGLEWICZ SECONDED . Ayes: Nays: Resley, Gryglewicz, Seay, Young, Gruninger None s Absent: Gulley The motion carried. Meeting adjourned at 4:15 p.m. Carol Wescoat Recording Secretary • • • 6