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07/17/1995 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING July 17, 1995 The City Commission, meeting as the Board of Trustees of the Employees' Pension Fund, met in regular session at City Hall, Monday, July 17, 1995 at 10:47 A.M., with the following members present: Rita Garvey Chairperson Sue Berfield Trustee Fred Thomas Trustee J. B. Johnson Trustee Also Present were: William Justice Trustee-elect Elizabeth M. Deptula City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk ITEM #2 - Minutes: Trustee Berfield moved to approve the minutes of the June 12, 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) Howard McChesney b) Mladen Zdjelar c) Mark Beery d) Edward Kutta e) Janie Williams 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 Judith Adriance granted a regular pension under Section 2.396 of the Employees' Pension Plan. Judith Adriance was employed on December 7, 1970, as a part-time employee, and began participating in the Pension Plan on October 30, 1972 when her status was changed to full-time. Her retirement will be effective on May 24, 1996, at the beginning of the day. Ms. Adriance's pension was approved by the PAC at its meeting of June 8, 1995. Based on an average salary of approximately $32,453 over the past five years and the formula for computing regular pensions, this pension will approximate $19,147 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $215,837. The estimated pension cost (cash payout over the life of the pensioner and her spouse) is $478,685. Trustee Berfield 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 Stephen Revello granted a job-connected disability pension under Section(s) 2.397 and/or 2.399 of the Employees' Pension Plan. Stephen Revello was employed on April 18, 1983, and began participating in the Pension Plan on that date. On January 9, 1990, he injured his back picking up a high wheel mower while on duty which is the basis for his request for this job-connected disability pension. He suffered further injuries to his back on April 2, 1992, and July 2, 1993. Mr. Revello submitted letters from Dr. Ralph E. Rydell, dated February 13, 1995; Dr. Joseph M. Sena, dated September 23, 1994; and Dr. Kenneth P. Botwin, dated May 3, 1995. The letter from Dr. Rydell states, "... his symptoms are related to a mild disc bulging at L-4 with nerve root entrapment ... He is then at maximum medical improvement and has a permanent partial disability of 3% of the body as a whole ... I don't feel that he could return to his previous employment which would require heavy lifting with frequent bending and stooping and twisting." The letter from Dr. Sena states, Mr. Revello "sustained injuries at work on 7/2/93 when lifting a lawn mower .. I do not feel that Mr. Revello is capable of returning to his regular work duty job ... He should avoid lifting greater than 50 pounds ... This patient's restrictions include avoiding lifting greater than 50 pounds and avoiding excessive repetitive bending at the low back. This represents a permanent partial disability." The letter from Dr. Botwin states, "I do feel that he has a component of mechanical back pain which is probably related to his disc degeneration at the L4-5 level ... With regards to work restrictions, the patient would be able to work at the light/medium work capacity, which would mean lifting 35 pounds on an occasional basis, lifting 15 pounds on a frequent basis and lifting 7 pounds on a constant basis. These physical demands should not be exceeded." Efforts have been made on the part of the City and Mr. Revello to locate an alternative position for him; however, no position is available that would allow Mr. Revello to work within his physical limitations. Mr. Revello's pension was approved by the PAC at its meeting of June 8, 1995. This pension will be effective on a date to be determined. Based on an average salary of approximately $18,624 over the past five years and the formula for computing job-connected disability pensions, this pension will approximate $13,968 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $223,310. The estimated pension cost (cash payout over the life of the pensioner and his spouse) is $632,417. In response to a question, Ms. Rice indicated if the Pension Plan changes are approved and if there was a job this individual could perform available, this person would be put back to work. Mr. Laursen pointed out the additional benefit for minor children will also be eliminated. Trustee Thomas 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 Gerald Klinske granted a job-connected disability pension under Section(s) 2.397 and/or 2.399 of the Employees' Pension Plan. Gerald Klinske was employed on January 13, 1992, and began participating in the Pension Plan on that date. On January 3, 1994, he was involved in an automobile accident while on duty which resulted in a back injury which is the basis for his request for this job-connected disability pension. Mr. Klinske submitted letters from Dr. William H. Dodson, dated April 5, 1995, and Dr. Dennis M. Lox, dated April 26, 1995. The letter from Dr. Dodson states, "He has a L4 L-5 disc herniation. His current work restrictions are no lifting over 25 pounds, no repetitive lifting, no pushing and no pulling. He has reached Maximum Medical Improvement and his current signs and symptoms are permanent. Review of his job description ... shows that this job involves much bending and lifting which he can not do now, nor will be able to do so in the future." The letter from Dr. Lox states, "Mr. Klinske is seen today for evaluation of injuries sustained on 1/3/94. While in the course of his employment at the Clearwater Gas Company .... He was diagnosed as having a left-sided disc herniation at L-4-5 ... I do not feel that he is capable of returning to work in a full-duty capacity in his previous work at Clearwater Gas Company as a gas technician II ... I do feel that he has sustained a permanent injury and has a permanent impairment ..." Mr. Klinske's pension was approved by the PAC at its meeting on June 8, 1995, and is effective on a date to be determined. Based on an average salary of approximately $20,855 over the past five years and the formula for computing job-connected disability pensions, this pension will approximate $15,641 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $261,648. The estimated pension cost (cash payout over the life of the pensioner and his spouse) is $782,853. Trustee Thomas indicated this pension is similar to the one approved in Item #5. He reported what has upset him in the past regarding the pension plan was that people with partial disability were getting full disability benefits. Trustee Johnson moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ITEM #7 - Other Business: Ms. Rice reported a letter had been received from the unions indicating they wanted to negotiate further regarding the Pension Plan. She has responded to them that the plan has already been negotiated. It was stated changes in the Union contracts were based upon agreed to changes in the Pension Plan. ITEM #8 - Adjournment: The meeting adjourned at 10:55 a.m.