01-19-1999
.........
.....,
Edgewater Firefighters' Pension Fund
Regular Meeting
Tuesday, January 19, 1999
6:30 p.m.
Call to Order: The Regular Meeting of the Edgewater Firefighters' Pension Board was
called to order Tuesday, January 19, 1999 by Chairman Jollie at 6:30 p.m. in the Training
Room at Fire Station #55. Members present were: Chairman Jim Jollie, Secretary Jill
Klem, Ms. Patricia Richards, Ms. Laura Reilly, and Mr. Gary Butt. Also present were
Mr. Ward Foster from Foster & Foster, Inc. and Ms. Lisa R. Miller, Recording Secretary.
Minutes: The Minutes from the October 20, 1998 Regular Meeting were submitted for
approval. Mr. Butt moved to approve the minutes as submitted. Ms. Reilly seconded.
Motion CARRIED 5 to O.
Actuarial Information: Mr. Foster from Foster & Foster, Inc. went over the Annual
Actuarial Valuation as of October 1, 1998. Mr. Foster noted that the individual
certificates were done for the membership. There was discussion regarding the rate of
investment return. Ms. Klem moved to approve the Annual Actuarial Valuation presented
by Foster & Foster, Inc. Ms. Richards seconded. Motion CARRIED 5 to O. Mr. Foster
noted they would send a copy to the State for their approval.
Old Business: There was discussion regarding the ordinance changes that were to go
before Council. It was noted the changes were sent to Jack Ascher! for review. There
was discussion regarding the changes and the procedure for their approval by Council. It
was noted, after the first reading by Council, the changes would be sent to Foster &
Foster for an actuarial valuation.
New Business: There was discussion regarding the STI investments, employee
contributions, and the rate of return for last year.
Ms. Klem discussed a conversation she had with Attorney Sugarman regarding disability
insurance. She added he had stated in a fund their size to better fund their disability
benefits, it would be easier to purchase additional disability insurance for a few years
until the fund was bigger. Mr. Sugarman had stated it wouldn't have as much of an
impact as if they tried to fund it with contributions. Mr. Foster stated the problem with
getting outside disability insurance was that they don't use the same standards to
determine disability entitlement as the State Statute requires. He stated the statute
requires the person to be totally and permanently disabled from performing duties as a
firefighter. In most insurance policies outside the plan you have to be entitled to Social
Security Disability benefits. Mr. Foster stated the Pension Board could determine the
person met the standards for disability under the Chapter 175, but the insurance company
would not take the word of the Board, they would independently evaluate it. Mr. Foster
stated they may be paying a premium for a coverage they may never be able to use for
that protection. There was discussion regarding disability and retirement age.
Edgewater Firefighters' Pe~n Fund
Minutes 01/19/99
Page 2
....",
There was discussion regarding the addition of eight new members to the Department.
Mr. Foster was pleased that the new members were younger as it lowers the funding rate.
He also added with the increase in the amount of payroll they would get more State
momes.
There was discussion regarding upcoming seminars.
There was no more business to come before the Board at this time.
Mr. Butt moved to adjourn. Ms. Klem seconded. Meeting adjourned at 7:12 p.m.
Minutes respectfully submitted by:
Lisa R. Miller
Recording Secretary
1m