10/31/1994 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
October 31, 1994
The City Commission, meeting as the Board of Trustees of the Employees Pension Fund, met in regular session at City Hall, Monday, October 31, 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
Pamela K. Akin City Attorney
Cynthia E. Goudeau City Clerk
ITEM #2 - Minutes:
Trustee Fitzgerald moved to approve the minutes of the October 17, 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) Margarita Lyons
b) Brian Kately
c) Kelly O'Brien
d) Georgina P. Ata
e) Michael J. Hipps
f) David Lane
g) Gregory Burton
h) John Reese
i) Kathryn Bielefeld
j) Basil Ranier
k) Jane Kavenagh
Trustee Deegan 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 Deborah Kanaris, wife of Peter R. Kanaris, Police Officer (deceased). be granted a survivor's pension
under Section(s) 2.398 and/or 2.399 of the Employees' Pension Plan.
Peter R. Kanaris was employed by the City on November 3, 1975, and began participating in the Pension Plan on May 3, 1976. He passed away on September 25, 1994.
Deborah Kanaris, wife of Peter R. Kanaris, on behalf of herself and Mr. Kanaris' two children, has applied for survivor's benefits under provisions of the Pension Plan.
Upon presentation of the appropriate documentation, the PAC approved Mrs. Kanaris' request at its meeting of October 5, 1994. This pension will be effective on September 26, 1994,
at the beginning of the day.
Based on an average salary of approximately $44,031 over the past five years and the formula for computing survivor's benefits, Mrs. Kanaris' pension will approximate $20,695 annually.
Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $226,553.
When Mr. Kanaris was originally employed, pension deductions were not taken for the first six months and employees contributed to Social Security. When employees were given an option
to buy back their first six months of service, Mr. Kanaris chose not to exercise such option.
Trustee Thomas expressed concerns that the $226,553 shown as the cost of this pension is much less than it will actually be. He requested the Trustees consider directing that the methodology
for calculating this cost be reconsidered.
Trustee Deegan questioned if the $226,553 was an actuarial calculation of what the City has to put into the plan to fund this pension. Margaret Simmons, Finance Director, indicated
this is the case. Being the case, Trustee Deegan felt this was an accurate reflection of the cost.
The majority of the Trustees stated they are comfortable with the continued use of the current method for calculating this cost.
Trustee Thomas questioned the validity of Ms. Simmons' response. Ms. Simmons indicated another figure that reflects the expected payout of the pension being approved could be included
in future agenda items.
Trustee Thomas indicated he would like to see that figure included. Chairperson Garvey expressed concern this would require additional work on the part of staff. Ms. Simmons indicated
the expected payout is already calculated by staff.
The majority of the Trustees agreed to including both the actuarial figure and the expected payout in future agenda items.
Trustee Deegan indicated a segment on 60 Minutes the previous evening had pointed out the public's concern regarding the cost of government pensions.
Trustee Thomas moved to accept the recommendation of 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.