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11-23-1999 CITY OF EDGEWATER POLICE PENSION BOARD November 23, 1999 Minutes CALL TO ORDER: Bret Teitelbaum Present Jeanne Delnigro Resigned Ruth Garvey Present Larry Loeffler Present Gary McElroy Present Also present were: Jack Ascherl, Consulting Agent of Record, Mark Cusumano,Principal Representative, and Deborah Sigler,Personnel Director. APPROVAL OF MINUTES: Ruth Garvey moved to approve the minutes of the September 1, 1999 meeting, being seconded by Larry Loeffler. Motion CARRIED 4-0. Ruth Garvey moved to approve the minutes of the October 5, 1999 workshop meeting,being seconded by Gary McElroy. Motion CARRIED 4-0. NEW Jack Ascherl distributed the Annual Fund Statement to the board members. He reviewed the returns on each investment option. He explained that our funds are half invested in bond and mortgage and half in other equities and that the raise in interest rates affected all investment returns. Bret Teitelbaum referred to a letter from Principal regarding the investment options, specifically International Equity and Domestic Equity. Mark Cusumano explained that when considering investments,you can't make determinations on a year to year basis, he suggested long term planning at least up to five years. He added that he would like to put 10% into International Equities if the board allows it. After further discussion, Gary McElroy made a motion to remove the restrictions currently in the investment policy to allow Principal to invest up to 10%in foreign trade. Larry Loeffler seconded the motion. Motion CARRIED 4-0. Jack Ascherl reviewed the Expense Statement for the annual cost of administering the plan. Larry Loeffler reported that the conference he attended was very informative. Bret Teitelbaum suggested members consider membership to the FPPTA, the dues being$200.00. Ruth Garvey moved to continue this membership,being seconded by Larry Loeffler. Motion CARRIED 4-0. Bret Teitelbaum distributed the conference schedule and he suggested members try to attend the June session which he feels is the most informative. Bret Teitelbaum referred to a letter from the City Attorney regarding the City's decision not to renew the fiduciary insurance policy. He reviewed a letter from Attorney Sugarman where it is his opinion that what the City has done now is not equal to the coverage the board had October 1". Bret informed the board that he has done some research with insurance companies for prices to purchase this insurance. He feels this board should initiate it, but the other pension boards could get the advantage of the coverage and the price would be better for one policy to cover all boards. Jack Ascherl commented that the board needs to do what they are comfortable with, but there is really nothing any board member could do which would open them up to a law suit. Legislatures have passed laws to secure board members from liability. Gary McElroy suggested we find out what other cities do. It is his opinion that a breach of fiduciary would be hard and he does not feel comfortable funding the other pension plans. Bret Teitelbaum reminded the members of the new responsibility they now have of determining disabilities, which he feels may hold some risk. He volunteered to obtain some quotes and report to the board. Bret Teitelbaum distributed the 1999 Florida Statute 185.18 Disability Retirement and asked Mr. Ascherl to review the process of determining disabilities. Jack Ascherl explained that the City of New Smyrna Beach follows the law and operates straight from the statute. He reviewed the statutory language with the members. He added the board can choose how formal they want to get, as long as they follow the law. It was agreed that the members need time to digest this and the subject will come up again at the next meeting. Jack Ascherl gave some general information to the members regarding other retirement situations he is currently dealing with, one concerning taxing of retirement benefits which is one of the subjects this board has dealt with in the past. Bret Teitelbaum reminded the members that this board can only function within the boundaries of our plan. Larry Loeffler asked if someone could explain to him why Larry Westfall still has problems with his retirement benefit. Jack Ascherl reviewed the history of what occurred; first the delay in Officer Westfall's pension was due to his not filing for social security sooner. He fell under the old plan where he had to get disability certification from the Div. Of Social Security. Social Security paid him retroactively back to the date he was determined disabled, and then Principal paid him retroactively back to that date also. He had problems with the taxes that were taken out of his retirement benefit, which he needed to have his CPA and Principal straighten out. This board does not determine taxation issues, however he believes the board paid their attorney to assist Mr. Westfall with this problem. He also believes, even though Mr. Westfall was injured prior to the law being in effect, the City Council made a special exception to pay his health insurance for the rest of his life. Bret Teitelbaum informed the board that there is still a bill outstanding to be paid to Attorney Sugarman. After reviewing it, it was determined that $560.00 has already been paid, so it is the remainder he needs the board to vote on. Ruth Garvey moved to pay the bill if we owe it, being seconded by Gary McElroy. Motion CARRIED 4-0. There-was discussion at this time about how bills are going to be paid in the future, whether the City will pay them, or send them to Principal for payment,which will come out of the plan's administration. It was agreed that Mr. Hooper would have to advise the board how the City wishes.to handle this. fret=Teitelbaum asked the members to review the applications for a replacement member to complete Mrs. Delnigro's term. After review of the applications, Gary McElroy moved to appoint Rena Green, being seconded by Ruth Garvey. Motion CARRIED 4-0. ADJOURNMENT: Gary McElroy moved to adjourn, being seconded by Ruth Garvey. Motion CARRIED 4-0. Meeting adjourned at 3:40 p.m. Minutes submitted by: D. Sigler