03-26-1999
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Edgewater Police Pension Plan
Board of Trustees
P. O. Box 489
Edgewater, Florida 32132
Minutes
A meeting of the City of Edgewater Police Pension Board was called to order by Chairman Gary
Conroy at 1 :02 p.m. on March 26, 1999 at the Edgewater Community Center.
ROLL CALL:
Chairman Gary Conroy
Bret Teitelbaum
Jeanne Delnigro
Ron Prekup, St.
Ruth Garvey
Present
Not present
Present
Present
Present
Also present were Larry Westfall, Jack Ascher!, Deborah Sigler, Personnel Director, Karen
Rickelman, Finance Director, Kenneth Hooper, City Manager and JoAnn Richard, Recording
Secretary .
APPROVAL OF MINUTES:
A motion was made by Mrs. Delnigro to approve the minutes of November 20, 1998 as presented
with second by Mr. Prekup. Motion CARRlED 4-0. A motion was made by Mrs. Delnigro to
approve the minutes of December 4, 1998 as presented with second by Mrs. Garvey. Motion
CARRlED 4-0.
NEW BUSINESS:
Mr. Ascher! reviewed in detail the Expense Statement for the period July 1, 1998 through September
30, 1998. There were no questions.
Mr. Ascher! explained the House Bill 261.
Mr. Ascher! stated that Mr. Westfall had called him questioning the taxability of his disability income.
He explained that it was governed by Federal Law. Principal, as a company, doesn't determine
whether something is taxable or not. It's the IRS or the individual. Principal is responsible to code
those monies so when the accountant sees the 1099 it would be coded to fall into the area of a tax
break. Principal had at one point made an error on his 1099, but when they were advised of it, they
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made the necessary correction for Mr. Westfall.
Mr. Ascherl explained that Mr. Westfall may be talking about a private letter ruling, and that would
be where an individual taxpayer submits their particular specifics to determine the cause and
uniqueness of their situation to whether or not their income would be taxable.
Mr. Conroy asked if an individual reaches the normal retirement age does his status change from
disability to normal retirement
Mr. Ascherl answered yes.
There was discussion regarding how to invest monies and what accounts to invest in for a higher
return.
Mr. Ascherl explained that Principal had a team of professionals that do nothing but work on asset
allocation and make recommendations on how to make it work the best for their clients.
Mrs. Garvey expressed her concern that all they do to accomplish as Board members is thrown out
when it gets to the City Council. Mr. Prekup expressed the same concern, and feels that he is wasting
his time serving on the Board.
Mr. Conroy assured the Mr. Prekup along with the rest of the Board that he felt satisfied with the
Council's decisions in that the Board got everything they proposed except the disability. He stated
that the Edgewater Police Department will now have better benefits then most departments in Central
Florida. He said the Board could work on the disability issue in the future, and that the City Manager
was very perceptive to their needs and wants.
Mr. Conroy asked Mr. Ascherl how the proposed group disability insurance will work. Mr. Ascherl
explained that the major group carriers all function about the same way. If a person has a disability,
their contracts in general integrate with any other form of disability that a person gets except for
individual disability policies. If a person gets workers compensation, pension retirement or social
security then that would reduce the amount the insurance company would pay. It is the insurance
company that would determine whether or not the person is disabled. The definition of disability in
the disability policies state that for the first two (2) years its the inability to perform the substantial
duties of your occupation. After that it will state an occupation reasonably fitted by education,
training, and experience. He explained that the group insurance has a ninety (90) day waiting period
before it begins payments. The plan says that the individual will collect sixty percent (60%) of your
average pay, but they will deduct the forty two percent (42%) that the Pension Board is paying so
you would be getting eighteen percent (18%) from the insurance company.
Mrs. Delnigro asked who was covered by the disability plan and Mr. Ascherl eXplained it would cover
all City employees. Mrs. Delnigro thought the Police Department should remain separate. Mr.
Ascherl explained that they would get a better price if everyone was covered. Mr. Ascherl explained
how it affects the Police Department in that if an employee is receiving forty two percent (42%) of
pay plus social security that could easily be one hundred to one hundred and twenty percent of pay.
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So the disability insurance company would only pay the Hundred Dollar ($100.00) minimum.
Mr. Conroy advised the Board that they had an upcoming FPP A conference in West Palm Beach in
June, and wanted to know if any member was interested in going. Mr. Prekup said he may have a
conflict on dates, but ifhe didn't he would be interested. Mrs. Delnigro made a motion to send Mr.
Prekup to the conference with second by Ruth Garvey. Motion CARRIED 4-0.
Mr. Conroy asked City Manager, Kenneth Hooper if he had anything to add. Mr. Hooper
respectfully requested that the Board go over the Police Retirement Plan and make their
recommendations and vote on what they decide.
Mr. Conroy expressed that he was happy with the outcome of the Council's decision and he felt that
the Police Department made out very well. He thanked Mr. Hooper for his help in accomplishing all
they did. He also said that the Board could build a case and work on the disability section in the
future.
Mr. Conroy said he would be stepping aside as Chairman of the Board on May 1, 1999.
Mrs. Delnigro made a motion to adjourn seconded by Ruth Garvey. Motion CARRIED 4-0.
Meeting was adjourned at 2:31 p.m.
Minutes submitted by:
JoAnn Richard, Board Secretary