02-23-2000
'-'
..."
Edgewater Police Pension Board
Regular Meeting
Wednesday, February 23, 2000
2:05 p.m.
Minutes
CALL TO ORDER:
The Police Pension Board Regular Meeting was called to order on Wednesday, February
23,2000 by Chairman Teitelbaum at 2:05 p.m. in the City Hall Conference Room.
ROLL CALL:
Members present were: Chairman Bret Teitelbaum, Ms. Rene Green, and Ms. Ruth
Garvey. Corp. Gary McElroy and Mr. Larry Loeffier were absent. Also present was Mr.
Jack Ascherl, Consulting Agent of Record, Mr. Mark Cusumano, Principal Financial
Group, Mr. Kenneth Hooper, City Manager, Ms. Michele Goins, Finance Director, Ms.
Deborah Sigler, Personnel Director, Ms. Robin Matusick, Legal Assistant and Ms. Donna
Looney, Recording Secretary.
APPROVAL OF MINUTES:
Chairman Teitelbaum deferred approval of November 23, 1999 minutes due to only two
members being present from the last meeting.
NEW BUSINESS:
Chairman Teitelbaum asked Ms. Green if she would be interested in being the Board
Secretary. She explained she would like to learn a little more before taking a position.
Appointment of Board Secretary was deferred till next meeting.
Mr. Ascherl reviewed the first quarterly report of October 1, 1999 to December 31, 1999
by going over each investment option. He went on to explain that Principal will be
phasing out the U.S. Stock account in the near future and that 8.1% will be put into the
Index account.
Chairman Teitelbaum explained to the new members how the board chose for Principal
to make investment decisions instead of the board, then at the quarterly meetings the
board looks over how the funds are doing.
Mr. Ascherl and Chairman Teitelbaum discussed, and the board agreed, that they would
let Principal phase out the U.S. Stock account on their own time within the year.
Chairman Teitelbaum talked to the board about upcoming conferences. He encouraged
members to attend expenses to be paid by the board. Ms. Garvey made a motion to send
...,
....,
Ms. Green to the conference March 20th through March 22nd with expenses being covered
by the board, being seconded by Ms. Green. Motion CARRIED 3-0.
Chairman Teitelbaum referred to the letter from Principal on the plan amendments. He
explained to the new members what changes the Council has made to the plan since
September 1999 to improve it due to changes in the law.
Mr. Ascherl explained the State statue changes, which alters the City changes on early
retirement with a 3% discount instead of 5%.
There was a lengthy conversation about the ordinance for pension plan amendments
between Mr. Ascherl, Mr. Hooper, Ms. Matusick and Chairman Teitelbaum concerning
Principal's status, what has taken place and what needs to still be done. Ms. Green made
a motion to prepare a fax to Principal incorporating the changes as stated in the letter, less
the early retirement wording. Seconded by Ms. Garvey. Motion CARRIED 3-0.
There was discussion about the ordinance prepared by Sugarman. Chairman Teitelbaum
stated the motion for Ms. Garvey, to recommend to council that the amendments as
drafted by Mr. Sugarman are passed and language actually stating the basic previsions of
the plan in City ordinance. Seconded by Ms. Green. Motion CARRIED 3-0.
Chairman Teitelbaum called a five- (5) minute recess.
Chairman Teitelbaum called the meeting back to order at 3: 15 p.m.
Chairman Teitelbaum gave an overview of the Disability Benefit and Procedure
document from Mr. Sugarman.
Mr. Ascherl told the board that Principal has all the forms that people need to use to
select settlement options. He stated that he has been doing this for about 30 years and has
not used an attorney in this process before. The board could make it an option to submit
to Sugarman instead of having to go through them.
Chairman Teitelbaum suggested the board digest what Sugarman has written along with
what Mr. Ascherl has presented. They do not have to act hastily on this now but the
board needs to have a plan.
There was further discussion about Mr. Sugarman's disability draft. Mr. Ascherl stated
there are State regulations to follow. Chairman Teitelbaum asked if Mr. Ascherl could
find out other procedures on disability from other cities and bring them to the next
meeting.
Chairman Teitelbaum submitted to the board a bill from Mr. Sugarman in the amount of
$1662.50 for drafting the ordinance.
2
~
.".,
Mr. Hooper asked what authorization does Principal require before making payments.
Chairman Teitelbaum explained a copy of the minutes showing the motion of the board.
Mr. Ascherl stated that each quarter it is listed as an expense payment from the fund. Mr.
Hooper asked who audits the funds spent with Principal. Mr. Ascherl responded the
City's auditors along with the State, each year.
Mr. Hooper cautioned the board to get documentation of authorized spending of money.
There was discussion regarding spending the plans monies.
Chairman Teitelbaum told the board we have a total outstanding balance to Sugarman,
which included review of a letter on fiduciary liability, a letter on retro activity of the
pension and some additional legal research for a grand total of $2,306.25. Ms. Garvey
made a motion to pay Mr. Sugarman. Seconded by Ms. Green. Motion CARRIED 3-0.
OLD BUSINESS:
Chairman Teitelbaum referred to a memo from City Manager Hooper regarding payment
of Board expenses. He explained to the board how the expenses were handled formally
through the City's Finance department. They are now submitted to Principal to be paid
out of the pension fund. Mr. Ascherl explained how the City is responsible to keep the
plan funded.
Chairman Teitelbaum explained what Fiduciary coverage is and that the City formerly
carried the coverage for all three boards at aproxiatmatly $4,000 per year. He has
researched coverage just for the Police Pension Board and the premium would be $1,575.
This coverage as he understands, is for "official acts" if a board member were to be sued.
Mr. Hooper explained the attorney reviewed this and could not find one case in the state,
also the City provides legal defense and they decided not to provide the coverage.
Mr. Ascherl stated he does not know of any official act that the board could take in order
to be sued unless it was in the disability area. Ms. Green stated that if s covered under
Principal's errors and omissions. After further discussion it was agreed to wait until
there is a full board to make a decision on fiduciary coverage.
Chairman Teitelbaum informed the board they have some correspondence reference a
retired/disabled member, Larry Westfall. This is a very involved issue and they have
been here two (2) hours. He suggests they might want to hold a special meeting to discuss
the background with the new members. Mr. Hooper asked what is on the table that the
board needs to decide. Chairman Teitelbaum responded it is to whether the plan is being
administered as written and if Mr. Westfall falls under the revised plan. There is a
lengthy discussion about the difference of opinion between the board attorney, Mr.
Sugarman, and Principals interpretation of the plan and what was the intent of council.
Chairman Teitelbaum again suggested that the new members try and learn what they can
about this issue and if something else comes up and they have to come back, he will call
a special meeting, otherwise they can deal with this at the next regular meeting.
3
~
.,
There was discussion on setting the date and time for the next board meeting. Meeting is
scheduled for Wednesday, May 17, 2000 at 2:00 p.m.
ADJOURNMENT:
With no further business Chairman Teitelbaum entertained a motion, Ms. Garvey made a
motion to adjourn, without any objections Chairman Teitelbaum adjourned the meeting at
4:35 p.m.
Minutes submitted by:
Donna Looney
Recording Secretary
4