10-13-2008
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Police Pension Board of Trustees
Minutes - Special Meeting
October 13,2008
Page 1 of2
CITY OF EDGEW A TER
POLICE OFFICERS' PENSION BOARD OF TRUSTEES SPECIAL MEETING
MINUTES
Monday, October 13,2008
CALL TO ORDER! ROLL CALL/DETERMINA TION OF A QUORUM
The Edgewater Police Officers' Pension Board held a special meeting on Monday, October 13, 2008
in the Conference Room at Edgewater City Hall, 104 N. Riverside Drive, Edgewater, Florida.
Ferd Heeb
Gary Conroy
Dan Blazi
Lawrence Leaf
Jeanne DelNigro
Sheila Hutcheson
Donna Looney, Personnel Director
Tracey Barlow, City Manager
William Bennett, Police Chief
Fire Lt. Jim Jollie
Police Officer Phil Nebisci
'-> Chairman Blazi called the meeting to order at 10:03 a.m. Members indicated their presence; there was
a quorum, with four members present.
Members Present:
Members Absent:
Plan Administrator:
City Staff:
APPROVAL OF MINUTES - Quarterly Meeting - September IS, 2008
Member Heeb made a motion to approve the minutes of the September 15, 2008 quarterly meeting;
Member Conroy seconded the motion, which passed unanimously, upon a roll call vote.
CONSIDERATION OF IMPACT STUDIES FOR BENEFIT IMPROVEMENTS
As directed at the June 23, 2008 meeting, Actuary Brad Heinrichs had prepared a cost analysis of
benefit improvements and the proposed changes had been discussed by plan members.
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Member Conroy had surveyed the Plan Members regarding proposed benefit improvements. The cost
study was based on the 2006 valuation from Principal and would be updated based on a more current
valuation. He noted that the COLA was structured in a manner to mitigate the cost. The 13th check
benefit was based on the returns, with no cost to the plan. Member Conroy said that he is still working
with the actuary on the share account, which is based on excess State monies, with no cost to the plan.
He continued by noting that the benefit improvement to a 3.5% multiplier was the option preferred by
the members. The next step would be to survey the pension benefit levels of other law enforcement
agencies in the County. Member Heeb discussed the impact on the City when the returns
underperfonn the actuarial assumption and noted that he thought it was unfair to the City to not benefit
from any of the excess monies. Member Conroy stated that it was the Board's responsibility to look
out for the members' interest. Member Heeb commented that the Board's role is to administer the
Plan and he does not think this is a fair proposal. Chairman Blazi pointed out that the 13th check is
common throughout Florida and has no cost impact. He also noted that Member Heeb's point is well
taken; i.e., that the City should also benefit from any excess monies. It was the Board's consensus to
have the actuary make a presentation on the 13th check at a future meeting.
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Police Pension Board of Trustees
Minutes - Special Meeting
October 13,2008
Page 2 of2
Member Conroy made a motion to study industry norms of pension benefits; Member Heeb seconded
the motion, which passed unanimously on a roll call vote. The Plan Administrator said that she would
obtain information from the State Division of Retirement and work with Member Conroy in this
regard.
Discussion continued with Member Conroy outlining the process for implementation of plan changes,
which would be for the Board to research the benefit improvements and then present the results of the
study to the City Council. Chairman Blazi mentioned that some of the benefits have no cost to the
plan, such as the share plan, noting that the Fire Pension Plan already has this benefit. Member
Conroy discussed the lump sum approach of the share plan, noting that it does not continue if the State
money stopped, whereas the monthly payment poses a continuing liability to the City even if the State
money stopped. Fire Lt. Jim Jollie mentioned that the Fire Pension share plan does not have an
adverse impact and Chairman Blazi said he is in favor of the share plan, whether as a lump sum or not.
The consensus of the Board was to present a package proposal to the City Council based upon its cost
in the upcoming valuation.
STAFF REPORTS, DISCUSSION, and ACTION
The Plan Administrator distributed information on the upcoming public hearing (on October 2], 2008)
on Rule 60T; noted that the Plan restatement from Principal had been received; and distributed Board
Member and Consultant lists.
TRUSTEES' REPORTS, DISCUSSION and ACTION
None
REQUESTS FROM THE PUBLICIEMPLOYEES PRESENT
Chief Bennett inquired as to his buy back of prior service and the Plan Administrator discussed the
process and said she would work with the Chief in this regard.
ADJOURNMENT
Member Heeb made a motion to adjourn the meeting; Member Leaf seconded the motion, which
passed unanimously. The meeting was adjourned at 10:42 a.m.
Respectfully Submitted:
Approved:
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Sheila Hutcheson
Plan Administrator
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:?:? ~
Dan 81
Chairman