05/13/1996 (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 Trustees of the Employees' Pension Fund
May 13, 1996
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Elizabeth M. Deptula
Pamela K. Akin
Cynthia E. Goudeau
City Manager
City Attorney
City Clerk
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TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
May 13,1996
The City Commission, meeting as the Board of Trustees of the Employees' Pension
Fund, met in regular session at City Hall, Monday, May 13, 1996 at 1 :06 P.M., with the
following members present:
Rita Garvey
J. B. Johnson
Ed Hooper
Karen Seel
Chairperson
Trustee
Trustee
Trustee
Absent:
Robert Clark
Trustee
Also Present were:
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ITEM #2 - Minutes:
Trustee Hooper moved to approve the minutes of the April 15, 1996, meeting. The
motion was duly seconded and carried unanimously.
ITEM #3. ReQuest for Acceptance into Membership:
The City Manager presented the recommendation of the Pension Advisory
Committee to approve membership for the employee(s) listed below:
a) Janet Bennett
b) Michael Burns
c) Daniel Mayer
d) Kimberly NgTang
e) Derek Pike
f) Greg Renaud
Trustee Johnson moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
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mPF05.96
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Edwin D. Hooper was employed on January 17, 1972, and began participating in
the Pension Plan on that date. His retirement was effective on April 1, 1996.
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ITEM #4 - ReQuest for Pension:
The City Manager presented the recommendation of the Pension Advisory
Committee that Edwin D. Hooper be granted a regular pension under Section{s) 2.393 and
2.397 of the Employees' Pension Plan.
Mr. Hooper's pension was approved by the PAC on April 16, 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 $45,427 over the past five years, the
formula for computing regular pensions, and Mr. Hooper's selection of the Joint & Survivor
Annuity, this pension will approximate $30,238 annually. Charts from Finance which take
into consideration mortality rates and age reflect the "present value cost of financing" this
pension will be approximately $407,869. The estimated pension cost (cash payout over
the life of the pensioner and his beneficiary) is $1,088,580.
Trustee Hooper declared a conflict of interest and announced he would abstain from
voting on this item.
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Trustee Johnson moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried with 3 affirmative votes and 1
abstention.
1IEM #5 - Authorize continuation of membership in the Association of Confederation Life
Contractholders IACUe) & payment of membership assessments from the Pension Fund.
for an amount not to exceed $10.000
The Employees' Pension Fund owns $4,000,000 in Guaranteed Investment
Contracts (GIC's) issued by Confederation Life Insurance Company. On August 12, 1994,
Confederation Life filed for bankruptcy.
The Association of Confederation Life Contractholders (ACUC) provides valuable
updates on the status of the GIC's. They are the only source of information on the GIC's.
The best information available (from ACLlC) has put the value of the GIC's at
between $0.92 and $1.03 on the dollar. The City stopped accruing interest on the GIC's
as of August 12, 1994, and is currently carrying the GIC's at $0.90 on the dollar.
ACLlC was created to represent the Gle's holders. The City is a member of ACLle
and paid an assessment of $2,000 in the last fiscal year. The current assessment due is in
the amount of $2,801.69 and is prorated based on the dollar amount of GIC's that each
organization owns.
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Current estimates are that the bankruptcy will last for approximately two more
years and that there will be at least one more assessment after this one.
Trustee Hooper moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
ITEM #6 - Other Business: - None.
ITEM #7 - Adjournment~
The meeting adjourned at 1 :08 p.m.
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ATTEST:
C(f~~: ~,no.,
" City Clerk
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