05-28-1991
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CITY OF EDGEWATER
POLICE PENSION BOARD SPECIAL MEETING
MAY 28, 1991
7:00 P.M.
SQUAD ROOM, POLICE DEPARTMENT
A meeting of the Board of Trustees of the City of Edgewater Police Retirement
Board was called to order by Chairwoman, Ruth Garvey, at 7:00 p.m. in the
Squad Room of the Edgewater Police Department.
ROLL CALL:
Members present were Sgt. Larry Westfall,
Ruth O'Rourke and Chairwoman Ruth Garvey.
Munoz, and Alice Ball, Secretary.
Sgt. William Bennett, Kenneth Smith,
Also present was Jack Ascherl, Fred
APPROVAL OF MINUTES:
There were no minutes from last meeting (April 1, 1991). It was a very short
meeting to re-affirm appointment of Ruth O'Rourke as member of Board.
There being no OLD BUSINESS, Chairwoman Ruth Garvey turned the meeting over to
Sgt. Westfall, who in turn, turned meeting over to Jack Ascherl.
Jack Ascherl explained the Quartly Report, stating that is shows all the money
in the General Account. He explained how the account has grown; 100% of assets
are invested in the one account. In 1990, the return on the account was 10.24%.
He explained that there were other accounts that are available to participate
in the Board wishes to diversify. We are right at 1/2 million dollars now.
We could start looking at investing in some of the other assets if we want.
He said that 10.24% is not a bad return under the circumstances. It has been a
good conservative return. The money market account is quite low, we use it
to park money in until we move it some were else.
Mr. Ascherl explained CD accounts, state contributions and said that before too
long we would be collecting an estimated $35,000. or so, from the State and it
would be deposited into this account. We also have roll-over money, money
invested in the past in Bonds and mortgages that is maturing. We will be in-
vesting it in that same General Account again.
The City will need to see that the total amount of money that has to be deposited
by September 30, 1991, is there for the new changes in the plan (25 year retire-
ment or age 55/ and the 5 year and the 3 year average compensation). Thats all
in the Actuarial Review. The employees put in a little bit, State puts in add-
itional contributions from insurance premiums from this area. The City has the
responsibility to keep the plan financially sound.
Mr. Ascherl explained the Actuarial and explained that all figures are based
on assumptions. He stated that we are in great shape, as far as funding. The
plan has a slight credit, slightly over minimum funding.
Mr. Ascherl stated that our 5 year vesting is a very early vesting schedule.
The state plan is 10 years, New Smyrna is 10 years. Ours is the only 5 year
plan in this area.
Sgt. Westfall asked about penalties for leaving with only your 5 year vesting.
Mr Ascherl explained there is no penalties, only if you take early retirement
would you take a drop in what it would be at full retirement. It is not really
a penalty, it is adjusted.
Mr. Ascherl explained disability benefits with our plan. It is lower than
some of the other plans, ours being 25% of average compensation. Other plans
pay 42 % for on the job, 25% off the job. Ours is 25% on or off the job.
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Police Pension Board~ecial Metting
May.28, 1991
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Ruth Garvey asked about COLAS. Mr. Ascherl stated they are none in this plan.
The general employees are looking at it, it is very costly.
Sgt. Westfall voiced concern that money is "being filtered" from the State through
the City to the pension plan; the City is not putting any money in.
Mr. Munoz explained the State money was, in fact, the City's, as it is money from
the people in Edgewater that the State money is coming form. The State Statue
allows for the tax, but the City ordinance is what allows it to come back to
the City for the pension fund, so it is coming form the City. The City provides
the mechanism for the money to be returned. Otherwise, the money would stay
with the state.
Mr. Ascherl suggested that the Board concentrate on improving the benefits to
the existing plan, basicly it is a good plan. He said he would be glad to come
and speak to all employees and explain the benefits of our plan vs benefits
of the State plan, but feels it is a better idea to improve our benefits rather
than changing plans.
Sgt. Westfall requested that all members present a list of goals so we could
put something together to present to the City. He said one of the things we
wanted was to get away from averaging and make it the single highest year
instead of the top 3 years.
Sgt. Bennett suggested asking officers to list benefits they would be interested
in seeing added to our plan.
Sgt. Westfall told Mr. Ascherl that the Board would put together the requests
and present then to him. He stated that by this time next month, each would
have a list of goals and try to put them together and supply them to Mr. Ascherl.
You can let us know how much it will cost and how many runs will have to be
made to get the results so we can present them to the City and go from there.
That cost is going to have to be okayed by us before it can be done anyway.
Sgt. Westfall turned meeting back to Chairwoman Ruth Garvey, who stated that
if there were no changes, the next meeting would be June 26, at 7:00 PM,
Tuesday. Ruth advised the Board that Christi Watkins would be taking over the
duties of secretary.
ADJOURNMENT:
There being no additional business to come before the Board, a motion was made
by Kenneth Smith to adjourn. The motion was seconded by Sgt. Westfall. The
meeting adjourned at 9:35 PM.
Minutes respectfully submitted by:
Alice (Ball) Andrasco, Secretary
Police Pension Board
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