08-02-2006
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EDGEW ATER POLICE PENSION BOARD
REGULAR MEETING
August 2, 2006
City Hall Conference Room
Minutes
CALL TO ORDER:
Chairman Gary Conroy called The Police Pension Board Regular Meeting to order on
.Wednesday August 2,2006 at 1:00 p.m. in the City Hall Conference Room.
ROLL CALL:
Secretary Blazi conducted the Roll Call for the Police Pension Board Meeting. Members
present were Gary Conroy, Daniel Blazi, and Ferdinand Heeb. A quorum was
established. Also present was John Acherl Agent of Record, Dee Finneran of Principal,
City Manager Jon Williams, Personnel Director Debbie Ziegler, Donna Looney from
Personnel, David West from Bogdahn Consulting, and Jeanne DelNegro.
APPROVAL OF MINUTES:
Chairman Conroy Called for a review and approval of the Minutes for the July 12,2006
Edgewater Police Pension Board Regular Meeting, and for the July 21, 2006 Edgewater
Police Pension Board Special Meeting.
MOTION
Ferdinand Heeb made a motion to accept the minutes as read. Daniel Blazi seconded this
motion.
Motion carried unanimously
NEW BUSINESS:
Request for disability pension from Officer Gary McElroy:
Chairman Conroy showed the board a letter from Officer Gary McElroy requesting the
Edgewater Police Pension Board to grant his request for disability retirement as of
October 1, 2006. Officer McElroy suffered a heart attack on March 30, 2006, and Officer
McElroy's treating physician stated he could no longer serve as a police officer. All
applicable paperwork was available from the Personnel Department, and the company
representing Edgewater Worker's Compensation.
MOTION
Ferdinand Heeb made a motion for Chairman Conroy to contact the Plan Attorney to
initiate the process for Officer McElroy's request for a disability pension. Daniel Blazi
seconded this motion.
Motion carried unanimously
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OLD BUSINESS:
Investment Policy Review:
Ferdinand, Heeb read part four of the Investment Policy for the Edgewater Police Pension
for review. Discussion followed.
Miscellaneous:
David West of Bogdahn Consulting presented a report dealing with the overall
indications of attorneys and independent actuaries. West presented a spread sheet
summarizing responses from each of the providers. West stated that the Police Pension
Board's present attorney Ken Harrison was competitive with other attorneys.
City Manager Jon Williams informed the Board that the General Employees Pension
Board had decided to engage the services of Christianson and Deanor, and Foster and
Foster, to prepare an actuarial report, and to evaluate the performance of their plan.
David West made a recommendation to have an actuarial audit of the plan, to help
determine the efficiency of the plan. David West also recommended an unbundling of
the actuary from the investment manager. These recommendations were made as a
representative of Bogdahn Consulting.
Dee Finneran stated to the Board that the General Employees Pension Plan was a closed
plan, and was a different plan from the open Police Pension Plan. Dee Finneran also
stated the General Employees Pension Plan was looking into an actuarial cost method
that the Police Pension Plan was already utilizing.
Chairman Gary Conroy called Attorney Ken Harrison, to help answer legal questions the
Board had presented during discussion. Ken Harrison advised the Board that the
responsibility to administer and operate the plan was the Board's. Ken Harrison also
advised that the City was required to meet with the Board's recommendations to keep the
plan actuarially sound. Ken Harrison stated in his opinion Principal took an ultra
conservative viewpoint on the Plan, and had recommended a separation from Principal.
Ken Harrison concluded by stating that the Fiduciary responsibility of the plan was that
of the Board's.
Chairman Gary Conroy called for a motion to engage an independent actuarial audit of
the Police Pension Plan.
Dee Finneran stated to the Board that the present actuary was bound by law to act on the
behalf of the participants, and to give an unbiased opinion on the actuarial soundness of
the Plan.
MOTION
Ferdinand Heeb made a motion for the Board to engage Foster and Foster to conduct an
independent audit of the actuarial report in its entirety. Daniel Blazi seconded this
motion.
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Motion carried unanimously
Pension Benefits:
Chairman Conroy presented to the Board a request for additional benefits for the
Edgewater Police Pension Plan. This request for additional benefits was forwarded
through the Collective Bargaining Unit, and the City. Chairman Conroy advised the
board that a vote had been taken by the Collective Bargaining members, with a
unanimous vote from Collective Bargaining members to contribute 3% of their pay to
have an increase of a 3.5% multiplier to the Plan. Chairman Conroy called for a motion
that he contact Harrison to write up the 3.5% multiplier into City Ordinance for review
and approval.
MOTION
Dan Blazi made a motion for Chairman Conroy to contact Harrison to write up 3.5%
multiplier into City Ordinance. Ferdinand Heeb seconded this motion.
Motion carried unanimously
ADJOURNMENT:
With no further business to discuss, Chairman Conroy called for a motion to adjourn.
MOTION
Ferdinand Heeb made a motion to adiourn. Daniel Blazi seconded this motion.
Motion carried unanimouslv
The meeting was adjourned at 2:12 p.m.
Secretary Dan Blazi
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