11/29/1994 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
November 29, 1994
The City Commission, meeting as the Board of Trustees of the Employees Pension Fund, met in regular session at City Hall, Tuesday, November 29, 1994 at 9:25 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 Deegan moved to approve the minutes of the November 14, 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) Stephen Reid
b) Cathy Grimm
c) Steven Poppick
d) William Wright
e) Heather Grace
f) Cleveland Lang
g) Billy McKeever
h) Daniel Devol
i) Constance Spinney
j) Michael Furlong
k) Robert Borden
l) Patricia Lafferty
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 Charles Williams be granted a non-job-connected disability pension under Section(s) 2.396 and/or
2.399 of the Employees' Pension Plan.
Charles Williams was employed on December 20, 1976, and began participating in the Employees' Pension Plan on June 20, 1977. On September 19, 1994, he submitted a request to the PAC
for a non-job-connected disability pension. The PAC approved the request on November 2, 1994. Mr. Williams suffers from spinal stenosis and osteoarthritis which is the basis for this
request for pension. Letters from Dr. Gary G. Moskovitz, dated 9/8/94, and 10/20/94, and Dr. Robert Harris, dated 8/3/94, and 9/27/94, were submitted in support of this request.
The letter from Dr. Harris states, "...this gentleman is permanently disabled due to osteoarthritis and we do not believe he can engage in heavy lifting, bending, or stooping." The
letter from Dr. Moskovitz states, "I do not see him being able to do any other job other than a sedentary type of an occupation." and "His condition is that of spinal stenosis ... In
my opinion, he is unable to work in his previous occupation due to his back problem ..."
Based on an average salary of approximately $28,534 over the past five years and the formula for computing non-job-connected disability pensions, this pension will approximate $12,412
annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $164,911. The estimated
pension cost (cash payout over the life of the pensioner and his spouse) is $428,220.
When Mr. Williams 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. Williams chose not to exercise such option.
Trustee Thomas thanked staff for providing the payout calculation as well as the present value cost. He stated this provides the Trustees and public with a clearer understanding of
the financial impact of the pensions.
H. M. Laursen, Human Resources Director, questioned if the Trustees wished to continue to get the detail regarding the payout or just the bottom line. Just the bottom line was requested.
Trustee Berfield 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: - 9:27 a.m.