01/29/1996 (2)
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PENSION
. (TRUSTEES)
Board of Trustees of the Employees'
Pension Fund
Minutes
Date
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ACTION AGENDA
Board of TrusteEls of the Employees I Pension Fund
January 29, 1996
1.
Call to order,
1. 9:04 a.m.
2.
Approval of Minutes
of 1/16/96
2. Approved as submitted.
3.
Regular Pension to be 'granted:
Robert E. Morrison
3. .Approved.
4.
Regular Pension to be granted:
Elmer E. Willis
4. Approved.
5.
Regular Pension to be granted:
Paul J. Noeske
5. Approved.
6.
Regular Pension to be granted:
Ralph Lucas
6. Approved.
7.
Regular Pension to be granted:
Frederick R. Casale
7. Approved.
8.
Regular Pension to be granted:
Allen H. Edelman
8. Approved.
Trustees directed that LJnless there is a
legal requirement regular pensions can be
approved by the PAC and not have to
come to the Trustees.
9. Other Business:
a) Confirm & authorize Pension
Fund to pay for ouside counsel re
Association of Confederation Life
Contractholders, et al. v.
Commissioner of Insurance of
State of Michigan (regarding
Rehabilitation of Confederation Life
Insurance Company) for an amount
not to exceed $10,000 without
further action
9. . a) Confirmed/Authorized.
10. Adjournment:
10. 9:12a.m.
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TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
January 29, 1996
The City Commission, meeting as the Board of Trustees of the Employees' Pension
Fund, met. in regular session at City Hall, Monday, January 29, 1996 at 9:04 A.M., with
the following members present:
Rita Garvey
Sue Berfield
Fred Thomas
J. B. Johnson
Robert Clark
Chairperson
Trustee
Trustee
Trustee
Trustee
Also Present were:
Elizabeth M. Deptula
Pamela K. Akin
Cynthia E. Goudeau
City Manager
City Attorney
City Clerk
ITEM #2 - Minutes:
Trustee Clark moved to approve the minutes of the January 16, 1996, meeting.
The motion was duly seconded and carried unanimously.
ITEM #3 - ReQuest for Pension:
The City Manager presented the recommendation of the Pension Advisory
Committee that Robert E. Morrison be granted a regular pension under Section(s) 2.393
and 2.397 of the Employees' Pension Plan.
Robert E. Morrison was employed on June 16, 1965, and began participating in the
Pension Plan on that date. His retirement is effective on January 19, 1996.
Mr. Morrison's pension was approved by the PAC on January 11, 1996. Section
2.393 (p) defines normal retirement date as including when a participant has completed
thirty years of credited service regardless of age.
Based on an average salary of approximately $43,395.15 over the past five years,
the formula for computing regular pensions, and Mr. Morrison's selection of the Joint &
Survivor Annuity, this pension will approximate $36,447.36 annually. Charts from Finance
which take into consideration mortality rates and age reflect the "present value cost of
financing" this pension will be approximately $476,499.25. The estimated pension cost
(cash payout over the life of the pensioner and his beneficiary) is $1,166,31 6.
Trustee Thomas moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
mPF01 b.96
1/29/96
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Based on an average salary of approximately $37,949.77 over the past five years,
the formula for computing regular pensions, and Mr. Willis' selection of the Ten Year
Certain & Life Annuity, this pension will approximate $20,892.84 annually. Charts from
Finance which take into consideration mortality rates and age reflect the "present value
cost of financing" this pension will be approximately $239,189.25. The estimated pension
cost (cash payout over the life of the pensioner and his spouse) is $~59,642.
Trustee Berfield moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
(::;, ITEM #5 - Request for Pension:
The City Manager presented the recommendation of the Pension Advisory
Committee that"Paul J. Noeske be granted a regular pension under Section(s) 2.393 and
2.397 of the Employees' Pension Plan.
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ITEM #4 - Request for Pension:
The City Manager presented the recommendation of the Pension Advisory
Committee that Elmer E. Willis be granted a regular pension under Section(s) 2.393 and
2.397 of the Employees' Pension Plan.
Elmer E. Willis was employed on January 21, 1975, and began participating in the
Pension Plan on July 28, 1975. His retirement is effective on January 3D, 1996.
Mr. Willis' pension was approved by the PAC on January 11, 1996. Section 2.393
(p) defines normal retirement date as including when a participant reaches age 55 and has
completed twenty years of credited service.
Paul J. Noeske was employed on January 14, 1974, and his pension service credit
is effective that date. His retirement was effective on January 3, 1996.
Sergeant Noeske's pension was approved by the PAC on January 11, 1996.
Section 2.393 (p) provides for normal retirement eligibility when a participant has
completed twenty years of credited service in a type of employment described as
"hazardous duty" and further specifically defines service as a sworn police officer as
meeting the hazardous duty criteria.
Based on an average salary of approximately $53,136.75 over the past five years,
the formula for computing regular pensions, and Sergeant Noeske's selection o'f the
standard benefit payment (Joint Survivor Annuity), this pension will approximate
$32,094.96 annually. Charts from Finance which take into consideration mortality rates
and age reflect the "present value cost of financing" this pension will be approximately
$435,635.89. The estimated pension cost (ca~h payout over the life of the pensioner and
his spouse) is $1,198,514.
mPF01b.96
2
1/29/96
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Frederick R. Casale was employed' on July 31, 1972, and his pension service credit
is effective that date. His retirement will be effective on September 19, 1996.
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.1 Trustee Johnson moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
ITEM #6 . Request for Pension:
The City Manager presented the recommendation of the Pension Advisory
Committee that Ralph Lucas be granted a regular pension under Section(s} 2.393 and
2.397 of the Employees' Pension Plan.
Ralph Lucas was employed on April 13, 1966; and his pension service credit is
effective that date. His retirement is effective on January 25, 1996.
lieutenant Lucas' pension was approved by the PAC on January 11, 1996. Section
2.393 (p) provides for normal retirement eligibility when a participant has completed
twenty years of credited service in a type of employment described as "hazardous duty"
and further specifically defines service as a Firefighter as meeting the hazardous duty
criteria.
Based on an average salary of approximately $50,833.16 over the past five years;
the formula for computing regular pensions, and lieutenant Lucas' selection of the 100%
Joint & Survivor Annuity, this pension will approximate $40,198.20 annually. Charts from
Finance which take into consideration mortality rates and age reflect the "present value
/,':If.~ cost of financing" this pension will be approximately $567,910.96. The estimated pension
"'\l~/ cost (cash payout over the life of the pensioner and his beneficiary) is $1,849,117.
Trustee Thomas moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
ITEM #7 . Request for Pension:
The City Manager presented the recommendation of the Pension Advisory
Committee that Frederick R. Casale be granted a regular pension under Section(s) 2.393
and 2.397 of the Employees' Pension Plan.
Officer Casale's pension was approved by the PAC on January 11, 1996. Section
2.393 (p) provides for normal retirement eligibility when a participant has completed
twenty years of credited service in a type of employment described as "hazardous duty"
and further specifically defines service as a sworn police officer as meeting the hazardous
duty criteria.
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Based on an average salary of approximately $42,885.25 over the past five years,
the formula for computing regular pensions, and Officer Casale's selection of the standard
benefit payment, this pension will approximate $27,619.56 annually. Charts from Finance
mPF01 b.96
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1/29/96
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which take into consideration mortality rates and age reflect the "present value cost of
financing" this pension will be approximately $352,314.49. The estimated pension cost
(cash payout over the life of the pensioner and his spouse) Is $948,271.
Trustee Clark moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
ITEM #8 - Request for Pension:
The City Manager presented the recommendation of the Pension Advisory
Committee that Allen H. Edelman be granted a regular pension under Section(s) 2.393 and
2.397 of the Employees' Pension Plan.
Allen H. Edelman was employed on a part-time basis on December 21, 1959, and
began participating as a full-time employee in the Pension Plan on November 15, 1965. His
retirement is effective on January 19, 1996.
Mr. Edelman's pension was approved by the PAC on January 11, 1996. Section
2.393 (p) defines normal retirement date as when a participant reaches age 55 and ,has
completed twenty years of credited service or when the participant has completed thirty
years of credited service regardless of age. Mr. Edelman is eligible under either criteria.
Based an an average salary of approximately $40,007.27 over the past five years,
fJ~ the formula for com;Juting regular pensions, and Mr. Edelman's selection of the 100% Joint
f,~ & Survivor Annuity, this pension will approximate $30,826.80 annually. Charts from
Finance which take into consideration mortality rates and age reflect the rtpresent value
cost of financing" this pension will be approximately $382,444.80. The estimated pension
cost (cash payout over the life of the pensioner and his spouse) is $832,324. .
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Trustee Clark moved to accept the recommendation of the Pension Advisory
Committee. The motion was dUly seconded and carried unanimously.
H. M. Laursen, Human Resources Director indicated a question had been raised by
the PAC regarding the necessity of regular pensions being items on the Trustees agenda
now that the new ordinance is in effect. He suggested refering this to the Legal
Department far an opinion.
It was also suggested the City Manager sign off on the pensions.
Discussion ensued regarding whether or not there was an appeal provision from a
PAC decision. The City Attorney will investigate.
Consensus was if Legal determined the code allows the PAC to approve these
pensions, they will not need to come to the Trustees for approval.
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~ ITEM #9 . Other Business:
a) Confirm & authorize Pension Fund to pay for ouside counsel re Association of
Confederation Life Contractholders, et al. v. Commissioner of Insurance of State of,
Michigan (regarding Rehabilitation of Confederation Ufe Insurance Company) for an amount
not 'to exceed $ 1 0,000 without further action ,I
Trustee Thomas moved to confirm and authorize the Pension Fund to pay for ouside
counsel for the case, Association of Confederation Life Contractholders, et al. v.
Commissioner of Insurance of State of Michigan (regarding Rehabilitation of Confederation '
Life Insurance Company) for an amount not to exceed $ 10,000 without further action. The
motion was duly seconded and carried unanimously.
,
ITEM #10 - Adjournment:
The meeting adjourned at 9:12a.m.
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ATrEST: ~'-t-L~ 2.-.lJ..;i1.
, City Clerk
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