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09/28/1992 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING September 28, 1992 The City Commission, meeting as the Board of Trustees of the Employees Pension Fund, met in regular session at City Hall, Monday, September 28, 1992 at 9:01 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 September 14, 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) Michael Faulkner b) Michael Sullivant Trustee Regulski moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ITEM #4 - Request for Pension: a) Arthur Carpentieri The City Manager presented the recommendation of the Pension Advisory Committee that Arthur Carpentieri be granted a job-connected disability pension under Section 26.35 of the Employees' Pension Plan. Mr. Carpentieri, Firefighter, Fire Department, was employed by the City on October 16, 1963 and began participating in the Employees' Pension Plan on that date. In October, 1991, Mr. Carpentieri applied for a regular pension based on 28 years of service. With his application for pension, he exercised his option to extend his retirement date by the use of vacation and one-half of his accumulated sick leave. That request was approved by the PAC and the Trustees, resulting in a pension benefit of 70% (28 yrs. x 2 1/5 percent) of his last five years' average salary of $32,917 annually or approximately $23,042 per year. While using his vacation benefits and prior to his extended retirement date, Mr. Carpentieri suffered a heart attack. In January, 1992, Ed Hooper, President of the IAFF, appeared before the PAC as a representative of Mr. Carpentieri to ask that the regular pension be changed to a job-connected disability pension based on provisions of Chapter 112, Florida Statutes, which provides that disabilities due to heart disease, hypertension or tuberculosis are presumed to be job-related for Firefighters. The PAC was receptive to that request; however, they advised Mr. Hooper that the employee would need to submit two letters in support of the disability (pursuant to the PAC Policies & Procedures Manual). In February, 1992, an informational agenda item was submitted to the Trustees to advise them Mr. Carpentieri would be requesting a change from regular pension to job-connected disability. Mr. Carpentieri has submitted letters from Dr. Marshal DeSantis, dated February 13, 1992, and Dr. Akshay Desai, dated February 10, 1992, in support of his request for a job-connected disability pension. The PAC approved Mr. Carpentieri's request at its meeting of September 16, 1992. Mr. Carpentieri's pension will approximate $24,688 annually. Charts from Finance which take into consideration mortality rates and age reflect that the "present value cost of financing" this pension will be approximately $221,777. Mr. Carpentieri has no dependent children under the age of 18. This situation, while seemingly incidental in terms of cost (the difference between the regular and job-connected disability pension for Mr. Carpentieri is but $1,646 annually), raises a major issue which may have considerable cost impact to the Pension Plan in the future. The issue being whether a Firefighter has to be incapacitated while on active duty to have the "presumption law" apply. The employee in this case had retired from active duty status but remained on the payroll through the use of accrued vacation and sick leave benefits and, during the time of use of the extended benefits, suffered a heart attack. The same question could conceivably be raised for a Firefighter who retires, has his last "active" day of work, uses all extended leave benefits, has a formal retirement date, and thereafter suffers a heart attack. While the PAC approved Mr. Carpentieri's request, City staff suggests the above issue warrants further analysis. H. M. Laursen, Human Resources Director, reviewed Mr. Carpentieri's history and stated the question is how long after employment does the assumption apply to firefighters. In response to a question, it was indicated this is the City's first experience of this nature. Kathy S. Rice, Deputy City Manager, indicated the letters from the doctors indicate that Mr. Carpentieri can not return to duty and as he had retired, it was not his intention to return. She stated it is not a major issue due to the difference in amount of the pensions but there are concerns that a precedent would be set. Staff is requesting an opportunity to allow the City's labor attorneys to research this question. In response to a question, it was indicated employees do have the option of taking half of their sick leave and vacation and remaining on the payroll past their last active work day and they are still receiving the majority of their benefits at that time. The City Manager indicated the key point is that these individuals are not returning to work and some stay on the payroll as long as 18 months. Trustee Berfield moved to continue this item to the next Trustees meeting. The motion was duly seconded and carried unanimously. b) John P. Milano The City Manager presented the recommendation of the Pension Advisory Committee that John P. Milano be granted a job-connected disability pension under Section 26.35 of the Employees' Pension Plan. Mr. Milano, Firefighter, Fire Department, was employed by the City on August 28, 1978, and began participating in the Employees' Pension Plan on that date. He injured his right knee on February 21, 1992, while exiting a fire truck. His request for a disability pension is based on this on-the-job injury. Mr. Milano has submitted letters from Dr. Charles Abrahamsen, dated July 20, 1992, and August 11, 1992, and Dr. Steven Moss, dated July 22, 1992, in support of his request for a job-connected disability pension. Mr. Milano's request was approved by the PAC at its meeting of September 16, 1992. Based on an average salary of approximately $29,496 over the past five years and the 75% minimum disability benefit, Mr. Milano's pension will approximate $22,122 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $271,793. Mr. Milano has two children under the age of 18; and, therefore, the dependent child supplement to the pension will be provided for these children. Trustee Regulski moved to grant John P. Milano a job-connected disability pension under Section 26.35 of the Employees' Pension Plan as recommended by the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ITEM #5 - Other Business: None. ITEM #6 - Adjournment: The meeting adjourned at 9:10 a.m.