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05/30/1989 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING May 30, 1989 The City Commission, meeting as the Board of Trustees of the Employees Pension Fund, met in regular session at the City Hall, Monday, May 30, 1989, at 9:04 A.M., with the following members present: Rita Garvey Chairperson/Trustee Lee Regulski Trustee Don Winner Trustee William Nunamaker Trustee Richard Fitzgerald Trustee Absent: Also Present were: Ron H. Rabun City Manager Milton A. Galbraith, Jr. City Attorney Cynthia E. Goudeau City Clerk ITEM #2 - Minutes: Commissioner Winner moved to approve the minutes of the May 15,1989, meeting. Motion was duly seconded and carried unanimously. ITEM #3 - Request for Acceptance into Membership: The City Manager presented the recommendation of the Advisory Committee to approve membership for six (6) employees listed below: Name Classification Department William Bennett Sanitation Worker Pub. Wks/Util. San. Karen Backus Pol. Com. Oper. Trainee Police Karen Illg Pol. Com. Oper. Trainee Police David Dornbusch Cont. Maint. Worker Pub. Wks/Util. San. Ronald Griffin Maintenance Worker II Pub. Wks/Infra. PS Todd Voight Public Service Technician Pub. Wks/Infra. PS Commissioner Winner moved to accept the recommendation of the Advisory Committee. Motion was duly seconded and carried unanimously. ITEM #4 - Request for Pension: James Ford, Senior Identification Technician of the Police Department has requested a pension. His original application was for an on the job disability however the Pension Advisory Committee determined that an on the job disability was not appropriate. Trustee Regulski moved to grant a non-job connected disability pension under Sec. 26.34 and/or 26.37 of the Employees' Pension Plan to James Ford, Senior Identification Technician of the Police Department. Motion was duly seconded and carried unanimously. ITEM #5 - Amendment to January 1, 1989 Actuarial Study On July 5, 1988 the Trustees awarded a two year contract to Coopers & Lybrand to perform actuarial valuations for January 1, 1988 and January 1, 1989 at fees of $13,000 and $12,000 respectively. Since that time, city staff has been asked to review the possibility of converting some or all the current plan liability to a 401(A) Defined Contribution Plan. In order to better determine the feasibility and or advisability of such a move it would be beneficial to have current plan liabilities broken down by bargaining units so that the impact/benefits to each group can be addressed separately. Coopers and Lybrand has agreed to provide this data in connection with their current study for an additional fee not to exceed $1,000. Trustee Regulski moved to approve the additional expenditure not to exceed, $1,000 so that the January 1, 1989 Actuarial study will provide pension liability segregated by bargaining unit. The motion was duly seconded and carried unanimously. ITEM # 6 - Request of the Pension Advisory Committee to authorize independent legal counsel. John Nicholson, Chairman of the Pension Advisory Committee, stated that the committee feels it needs independent legal counsel. Discussion ensued regarding the need for independent counsel and which entity would be represented by the attorney. Consensus of the Trustees was for the City Manager to investigate the need, to produce a proposed scope of service and that the pros and cons be provided by the City Manager and City Attorney. Item #7 - Procedure to accept Current Employees over Age 45 to Pension Plan (Contd. from May 15, 1989) A November 1988 referendum authorized a change to the Pension Plan which would allow current employees who were over the age of 45 when hired to apply for participation in the Pension Plan as new hires. Staff has been investigating ways to implement this change and this item was discussed at the Trustees Meeting of May 15, 1989 with direction for the Personnel Director to come back with additional information. The Personnel Director indicated that there would be a total of 169 employees that could opt to apply to participate in the plan. He stated he has met with the City Attorney and that the ordinance provides that they shall be admitted as new participants and does not provide for retroactivity. He further stated that in response to the Commissions questions he had found there is an agreement which provides that social security participation ends upon acceptance into the Pension Plan for all employees. He stated they have added 10 days to the six month time period which would allow an individual to make the application within six months but allow an additional 10 days to schedule the physical required. He stated one other change being made to the recommendations is that employees who apply within the six months but fail the physical, be treated as all other new employees in that any time they are able to pass the physical, they will be allowed into the plan. He stated that general notice will be sent out to the employees notifying them of this opportunity. In response to a question he indicated he did not feel that many of the 169 eligible employees would apply to participate in the plan and that the general notice will be dated 6/1/89. Trustee Regulski moved to approve the procedures for current employees over 45 to apply for participation in the Pension Plan. Motion was duly seconded and carried unanimously. Item #8 - Other Business: None. Item #9 - Adjournment: The meeting adjourned at 9:42 A.M.