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01/30/1995 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING January 30, 1995 The City Commission, meeting as the Board of Trustees of the Employees Pension Fund, met in regular session at City Hall, Monday, January 30, 1995 at 9:35 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 January 17, 1995, 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) Sean Allaster b) Linda Burch c) Christopher Villano d) Nancy Patula e) David Stoner 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 Lawrence H. Hahn, Jr. be granted a job-connected disability pension under Section(s) 2.397 and/or 2.399 of the Employees' Pension Plan. Lawrence H. Hahn, Jr. was employed on January 4, 1988, and began participating in the Pension Plan on that date. On November 24, 1992, he suffered an injury to his wrist while on duty which is the basis for his request for this job-connected disability pension. Mr. Hahn has submitted letters from Dr. Maria-Carmen B. Wilson, dated 12/6/94; Dr. R. W. Springstead, dated 4/4/94; Dr. John M. Rayhack, dated 2/7/94; and Dr. Joseph M. Sena, dated 1/27/93. The letter from Dr. Wilson states, "Mr. Hahn has reached MMI and has a PPI of 60% of the right upper extremity and 40% of the entire body. This prognosis is the result of an injury Mr. Hahn suffered on November 24, 1992, and are permanent in nature." The letter from Dr. Springstead states, "This 44 year old male had a previous injury to his right hand on his job on November 24, 1992 ... In my opinion, he cannot return to his previous employment as a public service technician ... He has very limited use of his right hand at this time." The letter form Dr. Rayhack states, "Mr. Hahn has very limited finger, forearm, and wrist ROM." Mr. Hahn's job-connected disability pension request was approved by the PAC at its meeting of January 4, 1995. This pension will be effective on January 31, 1995, at the beginning of the day. Based on an average salary of approximately $21,420 over the past five years and the formula for computing job-connected disability pensions, this pension will approximate $13,264 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $185,399. The estimated pension cost (cash payout over the life of the pensioner and his spouse) is $449,169. Trustee Thomas questioned why it was required this individual be given a disability pension. H. M. Laursen, Human Resources Director, indicated the individual has a right to request the disability if he can not perform his particular job classification. He further reported this individual has tried to find another job both inside and outside the City but has been unsuccessful. Trustee Thomas questioned if there weren't other jobs in the City that aren't labor positions. Mr. Laursen indicated there are, however, they require other skills Mr. Hahn does not have. Trustee Thomas questioned whether Mr. Hahn could be trained for another position. Mr. Laursen indicated this could be done if the hiring Department had the time to provide a training period. Trustee Thomas questioned if the problem was due to union contracts. Mr. Laursen indicated it was due to the Pension ordinance. Trustee Thomas questioned if this was not a part of the ongoing negotiations with the unions. Mr. Laursen indicated it was. Chairperson Garvey pointed out that the negotiations were not complete at this time. Trustee Thomas indicated he was aware this was not a completed issue but expressed concern regarding the amount of taxpayers' dollars that would have to be paid out for this 6 year employee and that the employee would have someone "looking over his shoulder" for the rest of his life. Ed Hooper, member of the Pension Advisory Committee, took exception to some of Trustee Thomas' remarks. He indicated the pay out would not be all taxpayers' dollars as the employees also contribute to the plan. He also said no one would be looking over Mr. Hahn's shoulder. He stated Mr. Hahn sought not to retire but was unsuccessful in finding another job either within the City or outside. Mr. Hahn has reluctantly retired. Trustee Thomas pointed out the City has the right to review everyone on a disability pension to assure the disability continues to exist. His point was there are other jobs in the City and he questioned who knows what is available. Mr. Hooper responded the City has worked with this individual and there is no job that he can do in a professional, well manner. He stated he did not disagree there was a need for a change in the Pension ordinance but this is the law under which we currently operate. Trustee Berfield stated this is the current interpretation of the pension code. She questioned if any thought had been given to putting in a training program for individuals like Mr. Hahn. Mr. Laursen indicated one difficulty is that an available budgeted position has to exist to accommodate someone in this circumstance. Trustee Berfield felt that if a person, injured on the job, was willing to work, the City should make some effort to assist them. Mr. Laursen again indicated the City has worked with Mr. Hahn trying to assist him in finding another job. He indicated he could look into the cost of a training program. Trustee Thomas questioned what incentive an individual would have to find work when they will be getting over $400,000 in disability pension. Mr. Laursen stated the $400,000 was over the life of the pension and would only be $13,000 a year. Trustee Thomas agreed there was a need for a retraining program for individuals like Mr. Hahn. Trustee Fitzgerald moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. Trustee Thomas stated direction needed to be given to find a new way to deal with disability pensions. The City Manager stated what was missing from today's discussion was what the City has done in an effort to help this individual. She state the Trustees do not have the whole picture. Trustee Fitzgerald pointed out the Trustees do not know Mr. Hahn's capabilities and that the City can not place him in a job he can not do. He stated looking to make these changes has been a direction from the Trustees for a number of years. Mr. Hooper indicated the Commission will be meeting to discuss bargaining issues later today. He stated the Unions have agreed to substantial changes. ITEM #5 - Other Business: - None. ITEM #6 - Adjournment: The meeting adjourned at 9:57 a.m.