10-15-2002
.\ -.
.., ~
u
CJ
Edgewater Firefighter's Pension Fund
Regular Meeting
Tuesday, October 15, 2002
Station 57, 2628 Hibiscus
5:35 p.m.
Call To Order: Chairman Jollie called to order the regular meeting of the
Edgewater Firefighters' Pension Fund Board on Tuesday, October 15, 2002 at
5:35 p.m. at Station 57.
Roll Call: Members present were Chairman Jim Jollie, Mr. Gary Butt, Ms.
Laura Reilly, Mr. Ron Hayward and Mr. Marty Tse. Also present was Patrick
Donnelly from Foster & Foster.
Approval of Minutes: The minutes of the April 16, 2002 meeting were
submitted for approval. Mr. Butt moved to approve the minutes as submitted.
Ms. Reilly seconded. Motion carried 5-0.
Old Business: Chairman Jollie stated at the last meeting he had been
authorized to go represent the board to choose an external consulting firm. The
frrm of Burgess Chambers and Associates, Inc. was chosen to do a performance
evaluation for the Firefighters' Pension Fund and the Police Officers' Pension
Fund. Finance Director Michelle Goins had provided the board with a bill for
the cost of advertising for the fmancial consultant to do the performance
evaluation in the amount of $175.92. As it was for two boards she requested
the City be reimbursed for half of the amount $87.96 from each board. Ms.
Reilly moved to pay $87.96 to the City for % the amount of the bill. Mr. Butt
seconded. Motion CARRIED 5 to O.
There was discussion regarding Foster and Foster, Inc.'s contract that was sent
to Sugarman and Suskind for their review. The cost of the contract was $2,500
base and $40 for each member and any other costs we may incur. The contract
is for three years. Mr. Hayward moved to accept the contract by Foster and
Foster, Inc. as written and check on spelling errors in paragraph #3. Mr. Tse
seconded. Motion CARRIED 5 to O.
New Business: Mr. Patrick Donnelly from Foster and Foster, Inc. gave an
update on the annual report. Mr. Donnelly discussed the frozen State monies of
the Chapter 99-1 legislation. It says that the State monies are frozen at the
amount from 1998 unless the City makes benefit improvements to the plan. Mr.
Donnelly noted that the fund had received two distribution payments in 1998:
one in July for $27,000, and one in October for $11,000. He added right after
that the fund had made the plan benefit improvement to 20 and out at the
annual cost of $28,214. He stated the new frozen amount is the $27,000 plus
the improvement cost of $28, 214 to a figure around $55,000. Mr. Donnelly
stated that this year, the October distribution was down to $2,208, but the July
distribution was $59,387 which was more than the frozen amount plus the
benefit improvement. There was discussion regarding how the money was
available for the fund to use. Mr. Donnelly stated the assumed 7 %% salary
'" . -...
, ~.
U
Edgewater Firefighters' Pension Fund
Regular Meeting
10/15/02 Page 2
increases and got a 15.6% salary increase and the investment return was 2%.
He added for the fiscal year the plan lost 6.61%. He added since they use the
smoothing technique the annualized return over four years was 2.0%. There
was discussion regarding optional benefit improvements. Mr. Donnelly stated
the board needed to approve the valuation before it can be submitted. It was
decided to postpone approval until they had a chance to read it through. Mr.
Donnelly stated there was no time limit on its approval really until next year.
The bill for 'Foster and Foster was presented which consisted of $3,340 for the
2002 actuarial valuations and $160 for the calculation of refunds for members
who left the plan. Ms. Reilly moved to pay Foster and Foster $3,500 for the
2002 actuarial and calculation of refunds. Mr. Butt seconded. Motion CARRIED
5 to O. Mr. Donnelly stated that he figured Mr. Castetter as a vested terminated
for actuarial purposes, as he did not know the status of the refund.
(.)
Chairman Jollie stated that they had received a letter from Mr. Castetter
requesting his funds payment in full. He added that the process has been
started and Foster & Foster, Inc. presented the City with all of the information
regarding the amount Mr. Castetter would receive. Chairman Jollie stated Mr.
Castetter did come in and sign the paperwork for a cash buyout. Chairman
Jollie stated that Helen Andrews from Foster & Foster had been a great help.
She had made up a form that states if you want yoUr money you will be buying
out all your interest in the plan. Chairman Jollie stated it was a letter that
comes from outside the City entity giving information and he liked that.
Chairman Jollie stated the City received the yearly state contribution in the
amount of $59,387.22.
Discussion Items:
Adjournment: There being no more business to come before the board at this
time, Mr. Tse moved to adjourn. Mr. Hayward seconded. Meeting adjourned at
6:10 p.m.
Minutes respectfully submitted by~
Lisa R. Miller
Recording Secretary
2