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HomeMy WebLinkAbout1997-06-11 FPB MINUTES, FIREFIGHTERS PENSION BOARD MEETING June 11, 1997 A regular meeting of the Englewood Firefighters Pension Board was called to order by Chairperson Bill Young at 4:00 p.m. in Conference Room A of the Englewood City Hall, 3400 South Elati Street. Members Present : Members Absent: Others Present: Bill Young, Chairperson, Employee Tom Bums, Mayor (arrived 4:02 p.m.) Mike Gruninger, Employee Representative Frank Gryglewicz, Director of Financial Services Denise Lombardi, Council Appointee Jay Seay, Employee Representative None Don Mazanec, William M. Mercer, Inc. (arrived 4:40 p.m.) Patrick Landry, William M. Mercer, Inc . Dan Brotzman, City Attorney (arrived 4 :02 p.m.) Carol Wescoat, Recording Secretary Gilbert Eggleston, Volunteer Firefighter Retiree (left 4 :20 p.m.) Otto Herald, Volunteer Firefighter Retiree (left 4:20 p.m.) Chris Olson, Employee (arrived 4 :15 p.m., left 5:10 p.m .) A quorum was present. * * * * * Approval ofMinutes MR. GRUNINGER MOVED TO APPROVE OF THE MINUTES OF THE REGULAR PENSION BOARD MEETING OF JULY 24, 1996 . MR. GRYGLEWICZ SECONDED . Ayes : Nays: Absent : The motion carried . Young, Gruninger, Gryglewicz, Lombardi, Seay None Bums MR. GRYGLEWICZ MOVED TO APPROVE OF THE MINUTES OF THE REGULARPENSIONBOARDMEETINGOF JANUARY9, 1997. MR. GRUNINGER SECONDED . Ayes: Nays : Absent : The motion carried . Young, Gruninger, Gryglewicz, Lombardi, Seay None Bums MR. GRYGLEWICZ MOVED TO APPROVE OF THE MINUTES OF THE JOINT PENSION BOARD MEETING OF FEBRUARY 18 , 1997. MR. GRUNINGER SECONDED . Ayes : Nays: Absent : The motion carried. Young, Gruninger, Gryglewicz, Lombardi, Seay None Bums Mayor Bums and Dan Brotzman arrived 4 :02 p .m. * * * * * OLD BUSINESS Review of Fire and Police Pension Association Volunteer Firefighters Actuarial Report The board discussed the January 1, 1997, Fire and Police Pension Association actuarial report for the Volunteer Firefighters MR. GRUNINGER MOVED TO APPROVE A BENEFIT INCREASE FOR THE VOLUNTEER FIREFIGHTERS TO $450 PER MONTH FOR FIREFIGHTER RETIREES AND $225 PER MONTH FOR SURVIVOR RETIREES AS OF JANUARY 1, 1997. MR. SEAY SECONDED. Discussion ensued regarding concern of possibly decreasing future benefits because of lack of funding. Mr. Gryglewicz expressed concern with approving the maximum, as approving the maximum did not allow for market volatility or a downturn. This could possibly result in a later benefit reduction. Mr. Gryglewicz suggested a benefit of $400 and $200 would allow for the volatility of the market. Chairperson Young suggested increasing the benefit to $400/$200 and request that FPP A prepare the actuarial report again after one year to see if the funds could support the maximum benefit. It was determined that the Board will be able to monitor the funds from the FPP A quarterly report. Chris Olson arrived 4 : 15 p. m . Ayes : Nays: Absent : The motion carried. Young, Bums, Gruninger, Lombardi, Seay Gryglewicz None Gilbert Eggleston and Otto Herald, left 4:20 p .m . Firefighters Pension Board Meeting 2 Discussion of legal requirements for the Board to pursue collecting monies erroneously paid to retirees or survivors. Mr. Brotzman distributed a copy of a memo prepared by, Trent Johnson, Law Clerk. The memo references Colorado State Statutes 31-30.5-204 (1996). This section of Statutes addresses the Board's fiduciary duty to preserve and protect pension assets. This duty includes collection of monies erroneously paid . Mr. Gruninger inquired about the differences between Fire and Police Pension Association's (FPPA) spousal benefit and the Firefighters Pension Plan . FPPA's plan provides for a named spousal beneficiary when the retiree selects a payout option . The Colorado State Statutes specify that the beneficiary is the spouse . Discussion of draft plan document changes and review of William M . Mercer. Inc .. January l, 1997. Firefighters Actuarial Report. Mr. Landry reviewed the January 1, 1997 , Firefighter Actuarial Report. Discussion related to the funding of the proposed increase in benefits . Mr. Landry presented the projected funding costs involved with the proposed plan document. Discussion followed related to expected increase in assets either by contribution or earnings . Mr. Gryglewicz reviewed the potential sources of increase funding . Mr. Gruninger presented a copy of "Englewood Firefighters Association 1974 Memorandum of Understanding." The memorandum refers to a portion of the mill levy that was designated for the Firefighters Pension Plan. Mr. Gryglewicz explained that a mill levy from 1974 could not be imposed now and that prior to TABOR, the City Council set the mill levy without a vote. He will research City records to see what actions were taken in accordance with the agreement . Chris Olson left 5 : 10 p .m . Mr. Brotzman stated that it is possible to prepare a ballot question for the July 7, 1997 , City Council meeting . He reminded the Board that the item would be presented to Council at the study session the same evening the ordinance would be read on first r eading . MR. GRUNINGER MOVED TO PROCEED TAKING THE PLAN DOCUMENT TO CITY COUNCIL WITH PROJECTED COSTS, FOR THE JULY 7, 1997 , COUNCIL MEETING. THE COST FUNDING REQUEST WILL BE AS TWO SEPARATE BALLOT QUESTIONS. THE FIRST IS FOR THE COST OF LIVING INCREASE WITH A THREE PERCENT PER YEAR MAXIMUM, AND THE SECOND IS FOR Firefighters Pension Board Meeting 3 THE ADDITIONAL BENEFIT FOR YEARS OF CREDITED SERVICE AFTER 20 YEARS . MS. LOMBARDI SECONDED . Discussion ensued regarding the payment for outside counsel. Mr. Brotzman stated the expense for outside counsel would be included in the City Attorney's budget. Mr. Landry agreed to provide the separate plan costs for each of the increased benefits. Mayor Bums expressed concern with the number of items on the November ballot and does not support proceeding with the requested item be on the ballot. Additional discussion explained the fluctuation of contribution levels based upon the unfunded liability . Ayes : Nays: Absent: The motion carried . Young, Gruninger, Lombardi, Seay Bums, Gryglewicz None Ms. Lombardi stated her concerns with the wording of the ballot questions. Mr. Brotzman and Mr. Gryglewicz explained the language must be a very ridged, harsh format because of TABOR and cannot vary from the required format. Chairperson Young will make the presentation to City Council. Discussion of procedures for determining eligibility for the 20% Supplemental Disability Mr. Gruninger inquired about the status of Ronald Dean and John Blanchard. Neither had returned all of the requested items of proof for continued eligibility. Each has been contacted verbally and by mail . Both were sent a letter stating benefits would cease as of July 1, 1997, if all items were not received. Chairperson Young suggested the discussion focus on procedures for determining eligibility for the 20% Supplemental Disability. Chairperson Young questioned what the Board should do next since there is an ordinance in limbo regarding the guidelines. Mr. Brotzman stated that if the Board wants to make recommendation to City Council they should make a motion explaining why the Board would like to see a change in the proposed ordinance language . Mr. Gryglewicz reminded the Board that City Council is awaiting a letter from Mr. Seay. Mr. Brotzman stated that was a different issue. Firefighters Pension Board Meeting 4 Further discussion clarified the funding source for payment of 20% Supplemental Disability in ordinance. Chairperson Young commented that item G on the ordinance refers to the State Death & Disability and how the contributions will be split between the City and the affected employee through the means that benefits are normally addressed. Since the City's method is collective bargaining, his interpretation is that it should be separate from the 20% Supplemental Disability issue. Discussion ensued regarding whether the 20% Supplemental Disability and the Death and Disability should be in the same ordinance and that the ordinance was presented by an attorney other than Mr. Brotzman with no input from the Firefighters Pension Board. Mr. Brotzman suggested presenting recommendation to City Council that the Board opposes changing the ordinance and prefers to set eligibility guidelines through regulations. MR. GRUNINGER MOVED TO RECOMMEND CITY COUNCIL REMOVE ORDINANCE ITEM G, WIIlCH PERTAINS TO THE STATE DEATH AND DISABILITY BENEFITS, FROM THIS SECTION OF ENGLEWOOD MUNICIPAL CODE . CHAIRPERSON YOUNG SECONDED . Ayes: Nays : Absent: The motion carried . Young, Bums, Gruninger, Gryglewicz, Lombardi, Seay None None Chairperson Young stated when he discussed the 20% Supplemental Disability with independent counsel, it appears the 20% issue is a retirement benefit, and a subject of collective bargaining. Mr. Brotzman commented he may not agree with their issue, however, it does not matter whether the issue is collective bargaining or not, City Council wants the Board's recommendation because the Board administers the benefit. MR. GRUNINGER MOVED TO REQUEST CITY COUNCIL TABLE THE ORDINANCE ON THE 20% SUPPLEMENT AL DISABILITY TO ALLOW THE BOARD AND STAFF TIME TO PREP ARE A RECOMMENDATION TO COUNCIL ON THE MATTER BEFORE AUGUST 1, 1997. Discussion regarding the funding, the payment process, some of the staffs objections to recipients of the benefit, reasons for the Board's delay in proceeding with setting guidelines, and ability to meet with staff as well as Mr. Semple within a restricted period of time . MR.GRYGLEWICZSECONDED. Ayes: Young, Bums, Gruninger, Gryglewicz, Lombardi, Seay Firefighters Pension Board Meeting 5 Nays : None Absent: None The motion carried. NEW BUSINESS Consideration of Paul Jamieson's request for retirement. Paul Jamieson, a firefighter since October 16, 1969, has resigned effective April 19, 1997, and requested retirement benefits. MR GRUNINGER MOVED TO APPROVE MONTIIL Y BENEFITS OF $2,006 .59, FOR PAUL JAMIESON, BEGINNING APRIL 20, 1997. MR. GRYGLEWICZ SECONDED . Ayes: Nays : Absent : The motion carried. Young, Bums, Gruninger, Gryglewicz, Lombardi, Seay None None Notification of 1996 income tax return for Robert Hoover Robert Hoover provided his signed 1996 income tax return and statement of eligibility. The items have been reviewed for eligibility compliance . Ronald Dean and John Blanchard have not provided all the requested infonnation. A letter was sent to each, signed by Mr. Gruninger in Chairperson Young's absence to notify them of the requested items, and that the benefit would be withheld or delayed if the requested items are not received. MR. GRUNINGER MOVED TO DISCONTINUE 20% SUPPLEMENT AL DISABILITY BENEFITS FOR JOHN BLANCHARD AND RONALD DEAN, IF ALL REQUESTED INFORMATION IS NOT RECEIVED . ALL BENEFITS WILL BE REINSTATED UPON RECEIPT OF INFORMATION. MR. SEAY SECONDED. Ayes : Nays: Absent : The motion carried. MEMBERS CHOICE Young, Bums, Gruninger, Gryglewicz, Lombardi, Seay None None * * * * * Firefighters Pension Board Meeting 6 '\ ... ·' Chairperson Young inquired about procedures necessary to contact City Council. Mr. Brotzman explained a copy of the recommendation would be sent to City Council with the meeting minutes. The Board plans attend the July 7, 1997, City Council meeting . MR. SEAY MOVED TO ADJOURN. MR. GRUNINGER SECONDED. Ayes : Nays: Absent: Young, Bums, Gruninger, Gryglewicz, Lombardi, Seay None None Meeting adjourned at 6 :05 p.m . t2uef W~ Carol Wescoat Recording Secretary Firefighters Pension Board Meeting 7