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05/04/1992 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING May 4, 1992 The City Commission, meeting as the Board of Trustees of the Employees Pension Fund, met in regular session at City Hall, Monday, May 4, 1992 at 9:03 A.M., with the following members present: Rita Garvey Chairperson Lee Regulski Trustee Richard Fitzgerald Trustee Sue Berfield Trustee Arthur X. Deegan, II Trustee Also Present were: Michael J. Wright City Manager Milton A. Galbraith, Jr. City Attorney Cynthia E. Goudeau City Clerk ITEM #2 - Minutes: Trustee Fitzgerald moved to approve the minutes of the March 30, 1992, 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) Paul Tavernier b) Marla Evans c) Angela Aldrich d) Debbie Peterson e) Jackie Cofield f) Allen Stidham Trustee Berfield moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ITEM #4 - Request for Pension: The City Manager presented the recommendation of the Pension Advisory Committee that George M. Toran, Jr. be granted a job-connected disability pension under Section 26.35 of the Employees' Pension Plan. Mr. Toran was employed by the City as a Firefighter on April 8, 1983, and began participating in the Employees' Pension Plan on that date. During the course of his employment, he had reported job-related injuries which resulted in his application for a job-connected disability pension. Mr. Toran has submitted letters from two doctors in support of his request. Both doctors report that Mr. Toran has a current medical diagnosis of degenerative joint disease which has been exacerbated by different injuries on the job which precludes his performance of firefighter duties, such as heavy lifting, climbing, carrying and squatting. Notice of Injury Reports are on file which reflect reported injuries on 9/26/91 incurred while making a search for possible victims at a structure fire when he lost his balance, resulting in a injury to his "rt. hip, lower back and left shoulder bruise" and on 1/16/92 when it is reported that "vigorous activities as a firefighter exacerbated and accelerated pain in hips-severe pain, both hips-arthritic condition". Dr. Bernasek states Mr. Toran will need a total hip replacement as treatment and even with surgery will never be able to return to work as a Firefighter. Mr. Toran's disability pension was approved by the PAC at its meeting of April 1, 1992. Mr. Toran claims no children under the age of 18; and, therefore, no supplement to the pension is to be provided for dependent children. In response to questions, H. M. Laursen, Human Resources Director, indicated a very comprehensive physical examination was done prior to Mr. Toran being hired as a firefighter and there was no indication of the degenerative joint disease. Trustee Berfield moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ITEM #5 - Request to Vest Pension: The City Manager presented the recommendation of the Pension Advisory Committee that Joseph P. Egger be permitted to vest his pension under Section 26.49 of the Employees' Pension Plan. Joseph P. Egger was employed by the City on August 20, 1979, and has been a participant in the Employees' Pension Plan since his date of hire. Sergeant Egger has resigned from City employment effective May 1, 1992. As of his resignation in May, he will have 12 years and 8 months of service and pension participation. The Pension Plan provides that should an employee cease to be an employee of the City after completing 10 or more years of creditable service, then such employee shall acquire a vested interest in the retirement benefits. Vested pension payments commence at the time the employee normally would have been eligible for retirement. Sergeant Egger would have completed 20 years of hazardous duty service on August 20, 1999. His vested pension benefits will be scheduled to begin on that date. Pension will be paid based on 12 years and 8 months of service, utilizing the following formula: years of service times average salary for last five years of service times 2.5 percent. Sergeant Egger's vested pension will approximate 31.67 percent of his average salary for his last five years of employment. Trustee Berfield moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ITEM #6 - Amendment to PAC Policies & Procedures Manual The City Manager presented the recommendation of the Pension Advisory Committee to approve an amendment to allow a quorum to vote on disability pensions until such time as the status of the Chairman has been determined. The PAC consists of three employees who are elected by a majority of the City employees covered by City pension. The PAC Policies and Procedures Manual contains a provision in the policy for "Processing Disability Pension Requests" (#9, page 8 of manual) which states that all three members of the Committee must be present when the Committee votes on disability pension requests. The manual was approved by the PAC and the Trustees. The pension ordinance itself does not contain any language relating to a requirement that all PAC members be present when they vote on a disability pension request. A medical situation has incapacitated Mr. John Nicholson, Chairman of the PAC, from active participation with the PAC. This incapacitation may be for a brief time, may be for a long time, or may be such that he will not return to this function. Mr. Nicholson may be able to return as a participating PAC member prior to any projected return to work in his regular capacity within the Fire Department. The PAC (two active members) voted at its meeting of April 22, 1992, to amend the PAC policy, during the absence of the Chairman because of his incapacity, to allow a quorum (two members) to vote on disability pensions and the PAC also requested the approval of the Trustees to temporarily change this policy. The City Attorney's Office has advised that the action of the PAC in proposing a temporary amendment to the policy is reasonable and appropriate. A vote by the PAC under these conditions will require a unanimous vote of the two member quorum. Two votes represent the number of votes that would be required by the PAC to approve a disability pension even with all three members present. Assistant City Attorney, Miles Lance, expressed the view that there is no limitation on the number of PAC members required to vote on establishment and/or modificatino of the PAC policies and procedures; and, therefore, the proposal made by the two current active members in this circumstance is reasonable. H. M. Laursen, Human Resources Director, indicated Mr. Nicholson had a heart attack and is still in the hospital. He reported no disability pensions can be acted upon during his absense unless the policy is changed. Discussion ensued regarding the need to increase the number of members on the PAC. It was indicated this has been agreed to by those discussing and negotiating changes to the Pension Plan but a referendum will be needed to make that change. It was the consensus of the Trustees to direct staff to suggest the PAC consider using an advisory committee to make recommendations to the PAC regarding disability pensions. Trustee Regulski moved to approve an amendment to the Pension Advisory Committee's Policies and Procedures manual for a 90 day period to allow a quorum of the PAC to vote on disability pensions. The motion was duly seconded and carried unanimously. ITEM #7 - Other Business: None. ITEM #8 - Adjournment: The meeting adjourned at 9:20 a.m.