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07-18-2000 \/, .\~~- \. (j..\.._\~ - ' ..,.. ....., Edgewater Firefighters' Pension Fund IRegular Meeting Thursday, July 18,2000 6:30 p.m. Call to Order: The regular meeting of the Edgewater Firefighters' Pension Board was called to order Tuesday, July 18,2000 by Chairman Jim Jollie at 6:31 p.m. in the Training Room of Fire Station #57. Members present were: Chairman Jim Jollie, Mr. Gary Butt, Ms. Laura Reilly and Mr. Marty Tse. Jill Klem was recorded as absent. Also present was Ms. Sondra M. Pengov, Recording Secretary. Approval of Minutes: The minutes of the April 18, 2000 meeting were presented for approval. Ms. Reilly questioned the cost of $15,000 to implement the fund for additional benefits. Chairman Jollie said Mr. Ward Foster had stated at the previous meeting the State money received by this plan in 1998 was $38,700. He added, between the frozen $38,700 and the $53,700 received in 1999 the benefit improvement that was made in September of 1999 cost at least $15,000 to implement. The fund used the incremental increase of$15,000 to fund additional benefits. Mr. Foster stated that now the frozen amount to figure incremental increases would no longer be the $38,700, it would be the $53,700 figure. Chairman Jollie thought it an appropriate time to bring Marty Tse up to date on the Annual Actuarial Valuation and explained Foster & Foster, Inc.'s role. Chairman Jollie also recapped some of the past activities of the pension plan. A motion to approve the minutes as submitted was made by Laura Reilly with a second from Gary Butt. The motion CARRIED 4-0. Old Business: Chairman Jollie changed the order of Old Business to start with Changes to Ordinance per State Division of Retirement: Chairman Jollie told the Board that Ordinance 2000-0-18 (copy attached) had been provided by the legal department. He explained a letter received from Patricia F. Shoemaker of the Department of Management Services Division of Retirement stated the ordinance had been reviewed to determine compliance with the provisions of Chapter 175. She stated the final Ordinance 99-0-04 did not incorporate the clarification found in Chapter 99- 1 for line of duty benefits. Section 175.19(1) was amended to state that, "A firefighter having 10 or more years of credited service or a firefighter who becomes totally and permanently disabled in the line of duty. regardless of length of service. may retire from the service to the municipality.. .." The letter stated this clarification should be made in the plan (addition of the underscored words.) Chairman Jollie said the amending of Ordinance 99-0-4 is provided in Ordinance 2000-0-18 and entertained a motion from the Board. Ms. Reilly moved to approve Ordinance 2000-0-18 and have it sent to the City Council for first and second reading. Upon approval have it 1 'w' ...., forwarded to the State and the actuary, Mr. Foster. Seconded by Mr. Butt. The motion CARRIED 4-0. Updated summary Plan & Actuary Study: Chairman Jollie made reference to his letter to Mr. Foster concerning the status of the Notification of Benefits for former Chief William Vola. He said he sent this letter as a reminder. Chairman Jollie stated he will contact Mr. Foster as to the status. The Chairman said he wanted to know the procedure to follow if a vested former employee wanted to receive his benefits. He said the actuary sends the employee a notice saying what they will receive and what has to be done to receive it. The Chairman said the updated summary plan was approved at a previous meeting. Chairman Jollie said he would look into the current status of the plan. Fiduciary Liability Insurance: Chairman Jollie said the fund is required by law to have fiduciary liability insurance in case the Board does something that is not monetarily sound. This insurance would prevent anyone from suing the Board members personally. Approximately a year ago, the City decided to eliminate the fiduciary liability insurance and fund it themselves. It has been learned this is not legal. Chairman Jollie spoke with Jennings Insurance of New Smyrna Beach (who previously carried the fiduciary liability insurance.) They said the City is charged $4,100 per year for all three Boards, (Police, General Employees & Firefighters). Jennings said combining the Board is less expensive. However, if the Firefighters were to secure their own insurance it would cost approximately $1,200 per year. There was discussion as to how to get the three Boards together. The Chairman asked for advice as to how the Board wanted him to proceed. The Board members felt the Chairman should try to get the other two Boards to combine with the Firefighters' to purchase fiduciary liability insurance. Chairman Jollie said he would send a letter to the Chairman of each Board explaining their intentions. The Board agreed that several insurance companies should be notified to compare prices. Chairman Jollie said to be able to give actual figures to the insurance companies for estimates, a copy of last years annual report will have to be provided. A motion was made by Gary Butt to allow Chairman Jollie to provide copies of the annual report and get estimates from three different insurance companies. Laura Reilly seconded the motion. Motion CARRIED 4-0. New Business: Annual Report Review: Chairman Jollie made reference to the letter received from the State, dated May 18, 2000. The Chairman said he believes the purpose of the letter referencing the Actuarial Impact Statement, pertained to Mr. Fosters' request for a formal statement. Foster and Fosters' Bill: Chairman Jollie entertained a motion to have the bill paid. There was discussion as to the amount of the bill. Laura Reilly questioned the amount of the bill. The Chairman said there has been a slight increase from last year from $1,500 to this year's charge of $1,625 for the actuarial valuation and report. After brief discussion Laura Reilly moved to pay Foster and Fosters' bill, seconded by Mr. Butt. Motion CARRIED 4-0. Letter from Mr. Foster of April 17, 2000: Chairman Jollie indicated the subject letter had been given to the Board at the last meeting (April 18, 2000). He made reference to the third 2 . '-" ...."" paragraph, which mentions the monies received by the State and what will be done with it. Chairman Jollie said it's not clear what will be done with it. The letter stated it would be necessary to perform an actuarial study, which will compare the benefits of our program with the benefits provided to the City's general employees. Chairman Jollie suggested having the actuarial study done to determine whether the State contributions are being properly used to fund extra benefits. This study will compare the level of benefits of each program. Chairman Jollie said Mr. Foster recommended the Board direct them to conduct the formal actuarial analysis to determine compliance. Chairman Jollie said he would first discuss with the Finance Department the comparison of benefits, then send the information to Foster and Foster, Inc. Chairman Jollie asked if the Board would prefer that he send a letter to Foster and Foster requesting an estimate of what the charges will be to have the study done. After discussion, it was decided that the Chairman would first approach the Finance Director for information and forward it to Foster and Foster and then determine whether a formal study is required. The Board agreed with this approach. Division FPPTA Membership Dues. What Services do they Provide the Board? Discussion was had as to whether these dues had been previously paid. Laura Reilly thought they had and said she will check her records to verify this. Chairman Jollie asked if the Board benefits from this membership? It was determined that the State sends all current and updated information to the Board so they questioned the necessity of the Board being a member. They decided the $200 membership dues could be put to better use elsewhere and agreed to terminate the membership. Pension Schools: There was brief discussion on whether any of the members wished to attend a pension school. All members declined at this time. Chairman Jollie informed Marty Tse of the meeting dates and times Adjournment: There being no additional business to come before the Board a motion was made and approved to adjourn. The meeting adjourned at 7:30 p.m. Minutes respectfully submitted by: Sondra M. Pengov Recording Secretary :smp 7-18-00.Firefighters pension minutes.reg.mtg. 3