10-11-2000 Edgewater General Employees Pension Board
Regular Meeting
Wednesday, October 11, 2000
2 :00 p.m.
Minutes
CALL TO ORDER:
Chairman Lichter called the General Pension Board Regular Meeting to order on
Wednesday, October 11, 2000 at 2:00 p.m. in the City Hall Conference Room.
ROLL CALL:
Members present were: Chairman Judy Lichter, Jack Corder, Kathy Cornelius, Lisa Miller
and Mike Tenney. Eric Bosse and Ken Murphy were absent.
Also present were: Jack Ascherl, Consulting Agent of Record, Kenneth Hooper, City
Manager, Michele Goins, Finance Director, Debby Sigler, Personnel Director and Donna
Looney, Recording Secretary.
APPROVAL OF MINUTES:
None
OLD BUSINESS:
Jack Ascherl reviewed the actuarial cost estimates for the proposed changes to the general
employees pension plan. He stated, for the record, these changes will only effect active
employees. The cost estimates are in two parts. Part I includes the following proposed
benefit changes, which were considered the top priority of the proposals:
* Normal retirement age 55 with 5 years of accrual service or at any age with 25 years of
accrual service.
* Average compensation of the highest 3 years out of the latest 10 years of service.
* Lumb sum death benefit payable in a lump sum or other available settlement option
to the designated beneficiary, or, if none, to the estate.
Cost estimate is $411,000.
Part II includes the following proposed changes, which were considered secondary in
priority:
* Early retirement age 50 with 5 years of accrual service or at any age with 20 years of
accrual service.
* Accrued benefit on early retirement reduced by 5% for each year that the early
retirement date precedes normal retirement date.
Cost estimate is $302,000.
City Manager Hooper told the members his intention is to recommend to the City Council
the same arrangement that was made with the Police and Fire departments. Half the cost
of their amended plans was paid for by the City and the members contributed the other
half.
Ms. Miller questioned how the employees pay would be effected, and suggested this be
explained to the membership before this board recommends anything to the City.
Mr. Ascherl explained that from these estimates it appears to be approximately 2 to 2-
1 /2% percent of their salaries.
Ms. Sigler stated that Mr. Ascherl has already ageed to hold a membership meeting once
a year. We could schedule one as soon as possible and she will get notices out to the
employees.
There was further discussion as to how the contribution issue will be accepted by the
membership, and whether a number of employees will retire early with this new plan
provision. Mr. Ascherl explained that Principal takes the worse case scenario into
consideration when they provide costs in their reports, so this has been accounted for.
Noe
Ms. Miller made a motion to take this to the membership and get input to bring back to
the board. Ms. Cornelius seconded the motion. Motion CARRIED 5 -0.
Mr. Ascherl agreed to gather all the information necessary to distribute to the members
of the plan. He again reminded the board that these changes will go into effect October 1,
2001 and doesn't effect anyone who is not an active participant at that time.
NEW BUSINESS:
At this time Mr. Ascherl reviewed a handout with the board members which shows our
fund selections and that Principal has allocated the way we invest and what our target
is as of September 15, 2000.
MISCELLANEOUS
None
ADJOURNMENT
Ms. Miller made a motion to adjourn, being seconded by Ms. Cornelius.
Meeting adjourned 2:15 p.m.
Minutes submitted by:
Personnel Department