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05/01/1995 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING May 1, 1995 The City Commission, meeting as the Board of Trustees of the Employees Pension Fund, met in regular session at City Hall, Monday, May 1, 1995 at 9:24 A.M., with the following members present: Rita Garvey Chairperson Sue Berfield Trustee Fred Thomas Trustee Michael R. Dallmann Trustee J. B. Johnson Trustee Also Present were: Kathy S. Rice Deputy City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk ITEM #2 - Minutes: Trustee Berfield moved to approve the minutes of the April 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) Janice P. McLaughlin b) James Johnson, Jr. c) Michael Roza d) Roy B. Wilson 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 Norma F. Smith be granted a regular pension under Section 2.396 of the Employees' Pension Plan. Norma F. Smith was employed on October 4, 1971, and began participating in the Pension Plan on that date. Her retirement will be effective on May 4, 1995, at the beginning of the day. Ms. Smith's pension was approved by the PAC at its meeting of April 5, 1995. Based on an average salary of approximately $26,791 over the past five years and the formula for computing regular pensions, this pension will approximate $15,739 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $195,267. The estimated pension cost (cash payout over the life of the pensioner and her spouse) is $424,965. Trustee Johnson moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ITEM #5 - Request for Pension: The City Manager presented the recommendation of the Pension Advisory Committee that Robert E. Morrison be granted a regular pension under Section 2.396 of the Employees' Pension Plan. Robert E. Morrison was employed on June 16, 1965, and began participating in the Pension Plan on that date. His retirement will be effective on March 9, 1996, at the beginning of the day. Mr. Morrison's pension was approved by the PAC at its meeting of April 5, 1995. Based on an average salary of approximately $41,384 over the past five years and the formula for computing regular pensions, this pension will approximate $31,038 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $411,099. The estimated pension cost (cash payout over the life of the pensioner and his spouse) is $1,039,775. Trustee Johnson moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ITEM #6 - Request for Pension: The City Manager presented the recommendation of the Pension Advisory Committee that Michael J. Szuba be granted a job-connected disability pension under Section(s) 2.397 and/or 2.399 of the Employees' Pension Plan. Michael J. Szuba was employed on March 7, 1975, and began participating in the Pension Plan on that date. On May 18, 1992, he suffered chest pains while on duty which is the basis for his request for this job-connected disability pension. Mr. Szuba has submitted letters from Dr. Robert Sanchez, dated February 22, 1995, and March 17, 1995; Dr. H. Andrew Hazlitt, dated February 8, 1995; and Dr. Hugh A. Rutledge, dated March 2, 1995. The letter from Dr. Sanchez states, "Mr. Szuba experiences recurrent supraventricular tachycardia which occurs without warning ... In view of this, I believe that he should no longer be allowed to work as a fire fighter particularly in situations where the life of others, as well as his own life, would be dependent upon his ability to perform ... the result in disability will very likely remain a permanent and long-term problem." The letter from Dr. Hazlitt states, "Due to the symptoms that Mr. Szuba experiences with this tachycardia, I believe he should not be allowed to work as a fire fighter ... This is very likely to be a permanent problem." The letter from Dr. Rutledge states, "Since the patient's job encompasses physical activity, usually under stressful conditions, I do not feel that he should engage in this type of activity concerning his underlying cardiological diagnosis ... Therefore, I recommend that he be considered disabled for his particular job description." The PAC approved Mr. Szuba's pension at its meeting of April 5, 1995, based on the documentation submitted from the doctors and Chapter 112 of the Florida Statutes which is the Firefighters' heart and lung bill which states that any heart disease contracted by a Firefighter is presumed to be job-connected. This pension will be effective on a date to be determined. Based on an average salary of approximately $38,139 over the past five years and the formula for computing job-connected disability pensions, this pension will approximate $28,604 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $400,533. The estimated pension cost (cash payout over the life of the pensioner and his spouse) is $1,244,292. Trustee Thomas questioned the state law mandating granting job-connected disability pensions to fire fighters even if not proven to be job-connected. H. M. Laursen, Human Resources Director, stated the mandate requires evidence to the contrary to be shown. A pre-employment physical of Mr. Szuba did not indicate any problems. Trustee Thomas questioned if genetic history could be looked at. Mr. Laursen stated one doctor's letter indicates genetic history to be negative. Trustee Berfield moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ITEM #7 - Other Business: Deputy City Manager Rice announced the unions have reached a contract settlement and that the pension fund will pay some of the cost. ITEM #8 - Adjournment: The meeting adjourned at 9:27 a.m.