10-18-1994
i
J ..
........
...
Edgewater Firefighters' Pension Fund
Minutes
Regular Meeting, October 18, 1994
Fire Administration Office, 1605 S. Ridgewood Avenue
6:38 p.m.
Call to Order: The Regular Meeting of the Edgewater Firefighters' Pension Fund was
called to Order at 6:38 p.m. in the Fire Administration Office at 1605 South Ridgewood
A venue, Edgewater.
Roll Call: Members present were: Mr. William Vola, Mr. Fred Munoz, Firefighter
Michael Hayes, and Ms. Patricia Richards. Chairman Al Gilbert was absent. Also present
was Mr. Steve Burkhalter from Smith Barney and Recording Secretary Lisa R. Miller.
Minutes: The Minutes of the June 28, 1994 Regular Meeting were submitted for
approval. Firefighter Hayes moved to approve the Minutes as submitted. Mr. Vola
seconded. Motion CARRIED 4-0.
Investment Report: Mr. Burkhalter from Smith Barney provided the new Board
members with information as to where the Fund stood financially at this time. He also
stated the account value is currently slightly over $160,000. He added the current cash
position was approximately $15,900. Mr. Burkhalter presented his proposal to the Board
at this time. There was discussion regarding his proposal. Mr. Munoz moved to purchase a
Freddie Mac at 8 % with an average life of 5 years in the amount of $15,000. Ms. Richards
seconded. Motion CARRIED 4-0. It was noted that at this time only two Board members
could sign on the account and that new signature cards needed to be filed with Smith
Barney. Mr. Vola stated that as Chairman Gilbert had resigned he needed guidance as to
who could fill out the purchase authorization. He was informed that all five board members
were authorized to sign on the account and that only two were needed for the authorization.
Mr. Munoz asked about the cut off values for the State Report. Mr. Burkhalter stated the
account was now set up so that statements included the end of the month so this should not
be a problem. He also stated last year they used the remaining face values as opposed to the
market values to get it to balance. Mr. Munoz stated the City carried on its books things at
face values and that the only time they are required to make adjustments is if the
investments are permanent and they are going to realize them. Mr. Burkhalter offered his
help if it was needed to figure out the values for the State report. Mr. Munoz stated
someone should have received the Annual Report to fill out. Mr. Munoz stated the Fund is
now a Local Option Plan and the deadline to file the Annual Report had been extended by a
month. The Board thanked Mr. Burkhalter and he left at this time. There was some
discussion regarding investment options at this time.
Old Business: Mr. Sugarman's bill was presented in the amount of $37.50. There was
discussion regarding the bill and to what it was actually for. Mr. Munoz moved to postpone
the payment of Mr. Sugarman's bill until they could get back up on this bill. Ms. Richards
seconded. Motion CARRIED 4-0.
Mr. Vola stated a Summary Plan document is required by the Department of Insurance and
the Division of Pensions and the Board is required to give every member of the plan a
summary of what the plan is, what the benefits are, and what the accrual is and the process
by which they can access those funds. He added at time this pension plan has no such
document in force. Mr. Vola stated this document also provided for the steps to follow to
achieve due process. There was discussion regarding the status of the Summary Plan. An
estimate was presented from Foster and Foster to complete the Summary Plan description
with all the required exhibits for a fee of $450. There was discussion regarding this
estimate. Mr. Munoz moved to get the Summary Plan done by Foster and Foster for the
fixed fee of $450 to bring the Board into compliance with the State. Firefighter Hayes
seconded. Motion CARRIED 4-0.
New Business: Mr. Vola stated as a result of recent Council action the plan is no longer
a State Plan, but has become a Local Option Plan. He added the State said if they were
going to change their status, change their benefits, or go over $100,000 balance in your
account an actuarial impact study was needed. Mr. Vola stated in a letter to Karen
Rickel man, Foster and Foster stated that the actuarial impact study would cost $1,000.
There was discussion regarding the actuarial study. Firefighter Hayes moved to contract
with Foster and Foster to do the actuarial study for a maximum price in the amount of
$1,000. Mr. Munoz seconded. Motion CARRIED 4-0. Mr. Vola stated there was a
memorandum from the Department of Management Services division of Retirement that
deals with actuarial studies regulations as they deal with Pension Plans. There was
discussion regarding this document.
..
'w'
Edgewater Firefighters' Pension Fund
10/18/94 Minutes
Page 2
...,
Mr. Vola stated for the record the Board had officially received a letter of resignation from
Mr. Gilbert who was Chairman of the Edgewater Firefighters' Pension Plan. He felt it
would be appropriate to honor Mr. Gilbert's request and accept his resignation. Mr. Munoz
moved to accept Chairman Gilbert's resignation and to send a letter thanking him for his
previous involvement in the pension plan. Ms. Richards seconded. Motion CARRIED 4-0.
There was discussion regarding how to choose the fifth member of the Board. This
member of the Board is selected by the four Board members and is confirmed by Council.
Mr. Vola asked each of the Board members to look for someone who they thought would
be a good candidate for that position. He added that the fifth member must be a resident of
the City of Edgewater but there were no other requirements.
Mr. Vola stated that an interim Chairman would need to be appointed until a fifth member
could be found. Mr. Munoz moved to make Firefighter Hayes the Acting Chairman. Ms.
Richards seconded. Motion CARRIED 4-0.
Mr. Munoz asked if the Board stilI wanted a separate opinion of the audit from the same
auditors or if they could save the money since there was no reason for it. Mr. Vola stated
he was unhappy with the previous decision to pay for a separate audit. The consensus of
the Board was to use the City's audit and save the money and to ask for additional copies
of the audit for the Board.
There was discussion regarding the date of the next meeting. It was decided to meet
Tuesday, December 6th at 6:30 p.m.
Adjournment: There being no more business to come before the Board at this time
Firefighter Hayes moved to adjourn the meeting. Mr. Munoz seconded. Meeting adjourned
at 7:42 p.m.
Minutes Respectfully Submitted By:
Lisa R. Miller, Recording Secretary
2