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05/02/1994 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING May 2, 1994 The City Commission, meeting as the Board of Trustees of the Employees Pension Fund, met in regular session at City Hall, Monday, May 2, 1994 at 9:00 A.M., with the following members present: Rita Garvey Chairperson Richard Fitzgerald Trustee Sue Berfield Trustee Arthur X. Deegan, II Trustee Fred Thomas Trustee Also Present were: Elizabeth M. Deptula City Manager Alan Zimmet Interim City Attorney Cynthia E. Goudeau City Clerk ITEM #2 - Minutes: Trustee Deegan moved to approve the minutes of the April 18, 1994, 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) Debora L. Merlina b) Louis C. Smith, Jr. c) Richard A. Bunton d) Phillip G. Manson Trustee Fitzgerald 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 Donald McMullen be granted a job-connected disability pension under Section(s) 2.397 and/or 2.399 of the Employees' Pension Plan. Donald McMullen was employed on June 30, 1986 and began participating in the Pension Plan on August 18, 1986. On May 7, 1993, he injured his back in a police cruiser accident while working which is the basis for his request for this job-connected disability pension. Mr. McMullen has submitted letters from Dr. Brian Oliver, dated March 8, 1994; Dr. William Dodson, dated March 15, 1994, and February 14, 1994; Dr. H. B. Angstadt, dated February 25, 1994; and Dr. Joseph Sena, dated March 3, 1993; and an MRI report dated June 25, 1993, in support of his request for a disability pension. This pension will be effective at the expiration of his vacation and sick leave as prorated with Workers' Compensation. The letter from Dr. Oliver states, "The patient has suffered a low back injury associated with his work activity which is permanent in nature. The job requirements ... would not be able to be performed at an adequate level that would be required of a police officer. These activities in his current job could certainly make his medical condition worse." The letter from Dr. Dodson states, "The above captioned patient was involved in an accident on the job on 5/7/93 whose resultant injuries will prevent him from normal police patrol duties, such as repetitive lifting, bending, climbing, running, and jumping, permanently." The letter from Dr. Angstadt states, "... the patient is not a good candidate for further duty due to not having the ability to run, jump, bend forward for any excessive time and not to lift more than 20-30 lbs. at a time." Mr. McMullen's pension was approved by the PAC at its meeting of April 6, 1994. Based on an average salary of approximately $36,513 over the past five years and the formula for computing job-connected disability pensions, Mr. McMullen's pension will approximate $27,385 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $355,124. In response to a question from the Trustees, H. M. Laursen, Human Resources Director, indicated this request was reviewed by the PAC over several meetings. Trustee Deegan pointed out that most of the comments indicate an inability to run, jump, lift, etc. He questioned if there was not some desk job to which the officer could be assigned. Mr. Laursen indicated while he thought there would be such a job, the Chief reassigning an officer would not prevent that individual from requesting a disability pension. He stated it is out of the Chief's ability to control. Trustee Deegan stated the reason he asked the question was that it was also out of the Trustees control once the PAC has indicated approval of a job-connected disability pension. He stated this points out there is something seriously wrong with the Pension Plan. Trustee Thomas agreed, stating he would suggest the pension not be approved as the individual is capable of doing some type of work. He stated there is a tremendous flaw in the disability program. He requested this be placed before the voters as this pension would cost $355,000 at a minimum. Trustee Thomas moved to deny the pension regardless of the consequences. There was no second. Chairperson Garvey stated the City has been through a lawsuit the outcome of which was the PAC has final authority regarding job-connected disability pension requests. Further discussion ensued regarding whether or not this case should be challenged. Deputy City Manager Rice indicated the labor attorneys have advised the City that the best course of action is to change the Pension Plan. She stated that is currently in process and renegotiating the disability portion of the Pension Plan will be the first thing on the table in union negotiations. Trustee Thomas suggested the issue be remanded to the PAC and in the meantime, staff expedite the issue to place Pension Plan changes on the November ballot. Chairperson Garvey stated this was a negotiation item with the unions. Trustee Thomas felt disability should be covered by disability insurance. He stated he is not trying to be unfair to employees, however, the current disability program is unfair to the taxpayers. Chairperson Garvey requested there be a review of the case that was lost regarding disability pension. Alan Zimmet, Interim City Attorney, indicated this was a mental disability that occurred shortly after a shooting incident. He stated the PAC recommended approval, the Trustees denied this, and it was appealed. In a summary judgement the court found the PAC was the final authority in job-connected disabilities. He stated even if the ordinance is changed, it could not be applied retroactively to this individual. Trustee Thomas questioned why changes in the Pension Plan could not go forward to referendum in November. Ms. Rice indicated she had to negotiate the union contracts in good faith. Trustee Deegan moved to remand this item to the PAC, asking them to reconsider whether the patrolman is still not able to perform adequately the job of police officer if certain assignments are made to him. The motion was duly seconded and carried unanimously. Officer McMullen spoke indicating he has not been allowed to work other duties and he has been trying to come back to work since June of last year. He stated Leo Schrader, Risk Manager, will not allow him to do so. He stated he was required to participate in a job search and he is currently working a job at $7 per hour in order to make ends meet. He stated he would be ineligible for promotion if not on full duty as a police officer and he therefore feels his career is at a dead end. He stated the department does not want to pay a full officer's pay when he will be unable to fully fulfill the job requirements. He is out of money and he requested some decision be made regarding his pension, placing him on light duty, or workers compensation supplementing him. Ms. Rice explained when an employee has applied for a pension and has been told by their doctor they can not come back to full duty, light duty is not allowed. She explained light duty is reserved for those individuals that will be returning to work but are temporarily unable to fulfill their requirements. Trustee Thomas questioned if there was any way to place the officer on light duty and not place him in financial jeopardy. Ms. Rice indicated this would be possible if the City Manager were directed to allow light duty placement temporarily. Trustee Thomas moved to direct the City Manager to place the police officer on light duty for 30 days while the PAC and Trustees reviewed all the facts. Trustee Deegan felt it would be more appropriate for the City Manager to review the case and decide how to handle this situation. He also suggested Leo Schrader come before the Trustees and review the workers compensation program. Trustee Thomas withdrew his motion. Trustee Deegan thanked the officer for appearing before them. ITEM #5 - Other Business: - None. ITEM #6 - Adjournment: The meeting adjourned at 9:20 a.m.