05-17-2000
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Edgewater Police Pension Board
Regular Meeting
Wednesday, May 17,2000
10:12 a.m.
Minutes
CALL TO ORDER:
The Police Pension Board Regular Meeting was called to order on Wednesday, May 17,
2000 by Chairman Teitelbaum at 10.12 a.m. in the City Hall Conference Room.
ROLL CALL:
Members present were: Chairman Bret Teitelbaum, Ms. Rene Green, and Mr. Larry
Loeffier. Corp. Gary McElroy and Mr. David Muth were absent. Also present were Mr.
Larry Westfall, Mr. Mark Cusumano, Principal Financial Group, and Donna Looney,
Recording Secretary.
APPROVAL OF MINUTES:
The minutes from the April 26, 2000 Special Meeting were submitted for approval. Mr.
Larry Loeffier made a motion to approve the minutes, second by Ms. Green. Motion
CARRIED 3-0.
NEW BUSINESS:
Chairman Teitelbaum referred to the copy of the Annual Fund Statement for March 31,
2000. He explained that Mr. Mark Cusumano from Principal Financial Group was
present to answer any questions. There was discussion regarding the return of 4 .16% for
the period of 10/1/99 through 3/31/00.
Mark Cusumano explained the returns of the different funds and how diversification is
most important in the Defined Benefit Plan. They are still in the process of diversifying
the account and it should take about another year.
After further discussion, Mr. Cusumano told the board that it is not time to panic or make
any changes just to monitor, as they are doing.
Chairman Teitelbaum informed the board about payment to the board Attorney, Mr.
Sugarman. The board voted in February to pay him the balance he was owed, the check
has not gone out yet but there is a new balance including the amount from February of
$3,536.25. The new bill is for opinion letters for the process of Mr. Westfall and the
disability procedures and any other assorted services provided by Mr. Sugarman. Ms.
Green made a motion to pay Mr. Sugarman, second by Mr. Loeffier. Motion CARRIED
3-0.
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OLD BUSINESS:
Chairman Teitelbaum updated the board on Larry Westfall's situation. After the last
meeting of April 26, 2000 he telephoned Mr. Sugarman to relay what was discussed at
that meeting. Mr. Sugarman's recommendation was that since Council has placed this
matter on the agenda for June 5, 2000 for clarification, he feels that since Council does
have the authority to change or alter the plan, any action by the board could be booted out
by Council action. The board has the option to make recommendation to the councilor
to make decisions according to the plan.
Mr. Loeffler thinks the board has a responsibility to at least give an opinion. Their job is
to watch out for the police.
Chairman Teitelbaum explained it is the board's job to administer the plan as it is written
and to make sure people are not getting money they are not suppose to, as well as, to
make sure people do get money they are suppose to. Instead of the board doing this they
have hired Principal Financial Group to do the job and the boards function is to make
sure they do that job.
Larry Loeffler made a motion to accept Mr. Sugarman's recommendation letter from
November 22, 1999.
Chairman Teitelbaum recapped Mr. Sugarman's letter, that it does include Mr. Westfall
the way the plan is currently written, not withstanding the City Councils discussion on
April 5th, what's in the document itself.
Mr. Loeffler states that Mr. Sugarman is their attorney and he thinks the board needs to
agree with him or they will be out on their own.
After further discussion Chairman Teitelbaum stated that a letter be written to Mayor and
Council that the board concurs with the opinion from Mr. Sugarman as far as Mr.
Westfall's pension situation. He asked if this accurately states it. Mr. Loeffler answered,
yes. Chairman Teitelbaum stated the motion is on the floor. It was seconded by Mrs.
Green. Motion CARRIED 3-0.
Chairman Teitelbaum spoke about this being on the agenda for the June 5th Council
meeting. He will be out of town but that some members should be present to answer any
questions.
Chairman Teitelbaum referenced the next two items on the agenda (Fiduciary Liability
Insurance and Disability Procedures), he would like to defer discussion to the next
quarterly meeting when there is a full board present. He will get the board members
copies of the procedures Mr. Sugarman has produced and get in contact with the Fire
Pension Board Chairman Jim Jollie and see what they have done with Fiduciary Liability.
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Chairman Teitelbaum and Larry Loeftler had further discussion about Larry Westfall and
Council action on June 5th. Chairman Teitelbaum asked Larry Westfall if he would like
to add anything.
Larry Westfall said the only conflict he wishes to bring to the board is that at the last
meeting Corp. Conroy advised a lot of things transpired in negotiations. The only thing
that was attempted to be negotiated and turned down by the membership was a COLA. It
was suppose to be a disability adjustment for those individuals that were totally disabled
in the line of duty, but some how it evolved into the word COLA which involved
everybody. The cost for that was exorbitant, at which time the COLA section was
dropped. All that is a part of written word, documentation, it was not anything to do with
the back pay, that was already documented. It was in regards to the disability adjustment,
which turned into a COLA, which received a negative response from the manpower of
the police department. Not the other thing which has been suggested.
Chairman Teitelbaum restates that the board will take no further action till they find out
where Council wants to go.
There was discussion on setting the date and time for the next board meeting. Meeting is
scheduled for Monday, July 17,2000 at 4:00 p.m.
ADJOURNMENT:
With no further business Chairman Teitelbaum entertained a motion, Mr. Loeffler made a
motion to adjourn, without any objections Chairman Teitelbaum adjourned the meeting at
10:43 a.m.
Minutes submitted by:
Donna Looney
Recording Secretary
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