08-12-14 - Special
CITY OF EDGEWATER FIREFIGHTERS’ PENSION BOARD
SPECIAL MEETING MINUTES
City Hall Council Chambers
Tuesday, August 12, 2014 at 6:00PM
TRUSTEES PRESENT: Dominick Fede
Justin Nickels
Scott Hopkins
Gary Butt
Barbara Scott
TRUSTEES ABSENT: None
OTHERS PRESENT: Doug Lozen, Board Actuary
Ferrell Jenne, Plan Administrator
Ken Harrison, Board Attorney
Donna Looney, Personnel Director
John McKinney, Finance Director
Tracey Barlow, City Manager
1. Call to Order Dominick Fede called the meeting to order at 6:00PM
2. Roll Call As reflected above.
3. No Public Comment
4. Review of Proposed Plan Document, Draft #5
a. Ferrell Jenne asks that Ken Harrison verifies that the draft sent over this morning
is Draft #5, watermark indicates Draft #2.
i. While Ken Harrison reviews the document, Doug Lozen discusses the
State Monies and Share Plan.
b. Doug Lozen discusses the uses of State Monies and the history of the Share
Plan.
i. Chairman Fede expresses concern that members have regarding
receiving a distribution from the Share Plan when they retire.
1. Doug Lozen states that the “Naples Letter” has made it easier for
the sponsor to use the State Monies to fund the Plan, but this
does not happen automatically and is still a negotiated item. An
Ordinance modification would also need to happen for a change
in the share plan allocation.
ii. Doug Lozen explains the source of the State Monies.
1. Mr. Lozen explains that the “frozen amount” is the amount that
can be used by the City to fund the Plan. Amounts above the
“frozen amount” are allocated to the Share Plan. The maximum
total State Monies available cannot exceed 6% of payroll. Once
the State Monies distribution occurs, the City has 5 days to
deposit the money into the Trust Fund from receipt.
iii. Doug Lozen reviews the history of the Share Plan.
1. In October 2007, Foster & Foster did an analysis of different
scenarios under which available State Monies may be distributed
in lieu of additional benefits. Board decides at the February 20,
2088 meeting to recommend to the City to start a Share Plan on
September 30, 2008 using $103,554.04 excess State Monies.
The City agreed and Ordinance 2008-O-06 was adopted which
includes the establishment of the Share Plan.
iv. Doug Lozen reviews the basics of the Share Plan.
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1. Share Plan is updated in conjunction with the annual valuation
report.
2. Non-vested members will forfeit their allocation. You must have 5
years of Credited Service and terminate employment with the
City in order to be eligible for a distribution.
3. Each active Member is entitled to one share per complete year
of Credited Service.
4. Ken Harrison confirms that the Share Plan allocation will not
change unless it is negotiated and there is an ordinance change.
c. Ken Harrison discusses draft #5 with the Board.
i. Ken Harrison states that he agrees with the City Manager’s comments
and he has added the stated 6% and will remove paragraphs (4) iii and iv
which appears to be language that belongs in a police plan versus a
firefighter plan.
ii. City Manager questions 30 hours/week as being full-time status.
1. Ken Harrison states that was existing language.
iii. Ken Harrison states that the grammatical errors on page 1 were not
incorporated in draft #5, he will fix this before it goes to first reading.
iv. Ken Harrison states he will add the definition of a bargaining unit on
page #2, as suggested by the City attorney.
v. Ken Harrison will add “he/she” to section 2.02 (1) and 2.03 (2).
vi. Ken Harrison to add “without interest” to Section 4.04 regarding refund of
member contributions.
vii. Ken Harrison explains to the Board that a strikethrough will not show on
the final copy that goes to Council for first reading. The section
references to statues and ordinances (shown in bold and underlined) will
also not show on the final document that goes to Council. Any language
that is underlined is what has been added.
viii. City Manager states that the minimum of 40 hours/week is full-time
status, not 30 hours/week as stated. Ken Harrison states he will make
the change in the document.
ix. City Manager states that on page 25, section 5.02 could be removed
since it is no longer valid.
1. Board stated that they like to see the history since they are a
fairly new Board.
2. Ken Harrison states to leave it in for now to keep things moving
forward, can always take it out later.
Board approves the amended restatement as corrected upon motion made by Barbara
Scott and second by Justin Nickels, motion carried 5-0.
Board directs Doug Lozen to so an actuarial impact statement upon motion made by
Justin Nickels and second by Scott Hopkins, motion carried 5-0.
5. Adjournment The meeting adjourned at 7:30PM.
6. Next Meeting Monday, September 15, 2014 at 6:00PM.
Respectfully submitted by: Approved by:
_______________________________ _____________________________
Ferrell Jenne, Plan Administrator Dominick Fede, Chairman
Date Approved By the Pension Board: _________________________
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