05-20-1991
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CITY OF EDGEWATER
FIREMEN'S PENSION BOARD
REGULAR MEETING
MAY 20,1991
CITY HALL CONFERENCE ROOM
6:37 P.M.
CALL TO ORDER:
Chairman
Edgewater
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Ben Wagner called to
Firempn~s Pension Board
order a meeting of the C~ty of
at 6:37 P.M.~ Monday, May 2(l,
ROLL CALL:
Members present were Firefighter William Finch~ Mr. Al Gilbert,
Lt. Larry Carson and Chairman Ben Wagner. Mr. Robert Morin was
absent. Also present was Representative Jack Ascher] and Lisa R.
Miller~ Board Secretary.
APPROVAL OF MINUTES:
The Firemen)s Pension Board ffilnutes for the April 30, 1991
meeting were submitted for approval. Firefighter Finch moved to
approve the minutes. Mr. Gilbert seconded. Motion carried 4-0.
UNFINISHED BUSINESS:
Chairman Wagner stated he talked to the Acting City Manager and
discussed the amount of money they could get from the insurance
rebate monies. Mr. Munoz told him that they may be looking in
the area of 515,000 to 520,000 that they should be holding for
them and should be turned loose in June since we've complied
with their requests. Chairman Wagner stated hopefully the money
would be coming in and they could get some activity going with
it.
NEW BUSINESS:
Representative Jack Ascher} spoke to the Board Members concerning
various options for the FiremenJs Pension Plan, his
qualifications~ and his experience. He stated he was a broker
and could work through different companies. He felt that the
Board's best bet was to go through The Principal Financial Group.
He gave a presentation concelning this company and stated he
would like to wOlk with the Board. He added if the Board was not
interested in this company he would get more information to them
on any other companies they might be interested ~n reVIewing.
The meeting was recessed at 6:5() P.M. due to a rescue call. The
meeting was resumed at 7:07 P.M.
Representative Ascherl spoke concerninq several
been done for other people in other programs.
~~ 1.3'r:'s tr~.a t t;.a.d
Chajrman Wagner questioned if the Board maJ~es a decision to ]oo~::
at other companies~ prDgrams~ could Representative Ascherl give
them the information that they need. Representative Ascherl
stated he is a broker and he wants to represent this Board. He
wjll get information for- them wherever they want him to. He
starts with Principal Mutual for the small to medium sized group.
At this time Representative Asche,} concluded his presentation.
Chairman Wagner called a five minute recess at 7:20 P.M.
resumed at 7:27 P.M.
f"leet ing
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Chairman Wagner stated New Smyrna Beach City Commission does not
allow the Pension Board to make recommendations for changes.
They want any changes that are to be made to come through the
bargaining table with the unIon. }f this Board has the ability
to make recommendations, they should take time to look at what
he has offered. He added if this Board sets up the kind of
investments we want and the J:;ind of plan that we want and the
Board just asl(s Representative Ascherl to handle the paperworJ::
end of it, it might not be a bad deal. Chairman Wagner stated
the Board should take time to lc~o~( at what Representative Ascher1
has offered and they have plenty of time to look at other people
that might want to make presentations. They may also want
Representative Ascherl to come bacJ:: with information from other
companies as well.
Lt. Carson stated the Police Department is looking to get out of
Principal Mutual. He stated he did not have enough time to speak
to the Police Department's Representative to find out why.
Chairman Wagner suggested they mlght want the representatives
from the Police Pension Board and the General Employees Pension
Board to come and speak to them. Mr. Gilbert asked if there was
a problem with the City not wanting to do business with this
company. Lt. Carson stated the City liked to do business with
this company, because they payout less. Chairman Wagner stated
the City has to put in enough to keep the PensIon actuarially
sound. He stated they are required to do it by law. Mr. Gilbert
stated they don't have to put in any more than their minimum. He
added that just because a company makes sound investments and
give a good return. the City should be happy that they don't have
to put any extra money in. Lt. Carson stated it should be the
other way around, the employees shouldn't have to put as much
money in. Chairman Wagner stated that any employee would agree
with that. but it would be a hard thing to sell the City Council.
Mr. Gilbert stated as far as Police and Fire go because of the
severity of the job, you look at how much you put in, the Pension
PI,an compar"ed to the Benefit you receive, you get a lot more out
of it. He stated that whether you put in 2%, 5%, or 7% it is
still your money. Mr. GiltJert stated he has never seen a Pension
Plan yet that got to a place where it didn't have any money.
Chairman Wagner stated he thought it would be a good idea to
approach the people that are already under this plan with the
Police and General Employees and see if they would liJl:e to come
and talk to us at the next meeting. In the meantime if they find
someone who they would like to give a presentation they could go
ahead and hear them or call Representative Ascherl back to give
them some information on other companies. He stated the Board
had time to do this and they wanted to do it right. Mr. Gilbert
agreed.
Mr. Gilbert stated another thing they didn't want to get into was
an open ended contract that would go on forever. It needs to be
put in a 2, 3, Dr 5 year contract. If the person doesn't ma~:e
the projections they would bo gone and they could get a new
J:)er .5c~rl.
Mr. Gilbert added since it is a small amount of money right nDw~
mat::e a contract for two years. If all is going well at tt1at
time~ then extend the contract. If it doesn~t, go for a new
person. Mr. Gilbert stated that the Board could ever, divide the
plan up so that they have four different groups investing your
money and overseeing it.
Lt. Carson stated he understood that if they did it this way they
would have to do away with Chapter 175. He stated the
~nvestments that you ma~(e under Chapter 175 cannot be in stocks
or mortgages or anything like that. They have to be In complete
secure investments. Chairman Wagner stated that 2% of it could
t~e .
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Mr~ Gilbert stated the money from the State was free and no
matter if you had to invest it in secure investments you would
still get a retJrn on It. He added if you don't take that and
try to operate on your $12,000 and the $2,000 to $3,000 input
from the employees and maybe a $1,000 from the City what have you
got to invest. Mr. Gilbert stated not to count the money from
the State out just because you can't invest it in higher return
things. Lt. Carson stated he thought Mr. Ascher] said if they
wanted to go with this plan they had to toss out Chapter 175.
Mr. Gilbert stated no. Chairman Wagner stated they get Chapter
175 in New Smyrna, but they ~an only do the 2% in that area. Mr.
Gilbert stated if you look at what you can invest the City's
money in the high return items you can't get back what the State
is going to give you in Dlle lump sum twice a year. He added if
you take the State's money, the Employees and the City's
contrIbutions and invest only the 2% in high yield investments
and the rest in common stock you would still make out better.
Mr. Gilbert stated they needed to follow the guidelines to keep
Chap te,- 175.
Mr. Gilbert stated you can write this program up any way you
want and do it so that you can make the best choices. Chairman
Wagner stated they should get some other people in to give the
Board some presentations. Mr. Gilbert stated the Board 1S
writing the contract, it is the employees money and they want to
do the best with it they can.
Discussion items
Lt. Carson asked if there were any Pension Conferences coming up
In the near future. Chairman Wagner stated they were on the
mailing list to be notified. Mr. Gilbert stated he had gone to
several of them and they have a lot of information available.
The next meeting was scheduled tor Monday~ June
P.M. in the Conference Room of City Hall.
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Adjournment
There being no additional business
this time Lt. Carson moved to
seconded. Meeting adjourned at 7:56
t.o C.Drne
adjourn.
P . 1'1.
before
the Board at
Firefighter Finch
Minutes respectfully submitted by:
Lisa R. Mille:, Secretary
Firemen\s Pension Board
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