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11/13/1995 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING November 13, 1995 The City Commission, meeting as the Board of Trustees of the Employees' Pension Fund, met in regular session at City Hall, Monday, November 13, 1995 at 1:20 P.M., with the following members present: Rita Garvey Chairperson Sue Berfield Trustee Fred Thomas Trustee J. B. Johnson Trustee Robert Clark Trustee Also Present were: Elizabeth M. Deptula City Manager Leslie Dougall-Sides Assistant City Attorney Patricia O. Sullivan Board Reporter ITEM #2 - Minutes: Trustee Berfield moved to approve the minutes of the November 2, 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) Richard Hicks b) Anne Green 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 Timothy DeBord be granted a job-connected disability pension under Section 2.397 of the Employees' Pension Plan. Timothy DeBord was employed on October 13, 1980, and began participating in the Pension Plan on that date. On April 29, 1982 Mr. DeBord pulled muscles in his lower back while exercising on duty. On March 11, 1995 he slipped off a motor cover, coming down from filling a tank. His injuries are described as degenerative disc disease complicated by the slip and fall injury which caused permanent damage to his lower back, specifically L5-S1, which is the basis for this request for a job-connected disability pension. On October 18, 1995, the PAC determined Mr. DeBord was eligible for a job-connected disability pension. Letters from Francisco Gomes, M.D., dated 7/20/95 and 7/22/95; Clinton Davis, M.D., dated 8/7/95; Robert Gruber, D.O., dated 10/10/95; and Joseph Papia, D.C., dated 6/28/95, were submitted in support of this request The letters from Dr. Gomes state, "I believe this patient has had long-term degenerative disc disease problems aggravated by the injuries of March 11, 1995. This patient is going to be left with a permanent impairment due to the injuries ... I have determined this patient can no longer be a fire fighter. Mr. DeBord will reach MMI (maximum medical improvement) by October 1, 1995, with a PPI (permanent physical impairment) of 9% to the body as a whole...” Dr. Davis states he reviewed the patient’s MRI scan and, “.. It shows degeneration of the L5-S1 disc with central disc bulging and degeneration of the L4-5 disc with central disc bulging, but no evidence for disc herniation or significant spinal stenosis, nor is there any malalignment of the spine .. I do believe he has reached MMI as of this date and the limitations he has as a result of this injury ... are likely to be permanent...” Dr. Gruber states, “With respect to whether or not his current symptoms are realted to a job-connected injury, it is the opinion of this examiner that they indeed are causally related to the slip and fall of March 11, 1995. The patient did have preexisting degenerative disc disease but extremely mild. Typical symptoms to be expected with such mild degenerative disc disease would be early morning back stiffness relieved with gentle flexibility exercises and not the severity of symptoms which he has demonstrated over the past 7 months.” Dr. Papia states, “In my opinion this patient has reached MMI ... still manifests subjective complaints as well as objective findings which are causally related to the slip and fall accident of March 11, 1995, and are permanent in nature ... I have given Mr. DeBord a 10% impairment of whole person ... He can expect further spinal joint and nerve root complications in the future ...” Based on an average salary of approximately $34,989.92 over the past five years and the formula for computing job-connected disability pensions, this pension will approximate $27,242.44 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $384,159.63. The estimated pension cost (cash payout over the life of the pensioner and his spouse) is $980,155. Trustee Clark 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 Gary Lutman be granted a job-connected disability pension under Section 2.397 of the Employees' Pension Plan. Gary Lutman was employed on June 4, 1984, and began participating in the Pension Plan on that date. Mr. Lutman submitted letters from Gordon Zuerndorfer, M.D.; Gary Muscovitz, M.D.; Michael Evans, M.D.; and Mark Monical, M.D., establishing the existence of multiple impairments resulting from on-the-job circumstances. Those impairments involve the left hip, upper extremities and back and knee which is the basis for this request for a job-connected disability pension. On October 18, 1995, the PAC determined Mr. Lutman is entitled to a job-connected disability pension. The letter from Dr. Zuerndorfer relates, “Regarding his left knee, he has reached what I believe is a MMI ... he will have ongoing problems with intermittent pain, swelling, and limited motion in the knee, and I would rate him a 5% total body disability based on his left knee ...” He further relates with respect to Mr. Lutman’s right hip that, “... options are mainly surgical ones, including possible fusion versus hip replacement, and I am in favor of hip replacement...” Dr. Muscovitz, in letters dated 7/10/95 and 7/25/95, relates, “...He only has one useful extremity which is his (L) upper extremity. He has carpal tunnel syndrome in his (L) upper extremity that precludes him from doing a job as a mechanic...” Dr. Muscovitz gives Mr. Lutman a 6% impairment rating. Dr. Monical’s letter relates, “... Mr. Lutman is not able to perform the duties of his position on a regular and continuous basis. The following and determining factors limit Mr. Lutman from his job: positive pain and HNP lumbar spine, positive pain down left lower extremity, atrophy of the right upper extremity, old brachial plexus injury, carpal tunnel syndrome left hand, degenerative joint disease of both knees and right ankle, arthoroscopy of the left knee, pain down left leg, status/post right hip replacement ...” Mr. Lutman documented four different on-the-job accidents. On July 21, 1992, he slipped on some oil and fell on his left knee. A Notice of Injury was completed on October 1, 1993, relative to continual wear and tear on the hand. On November 11, 1994, he developed pain in his back from pull starting saws. On March 22, 1995, while pull starting an engine, he experienced a pop in his left hip with worsening pain through the day. The City’s Risk Manager, Leo Schrader, in a memo dated July 31, 1995, stated, “When Mr. Lutman’s request of 6/20/95 for an extension of light duty was approved, it had not yet been determined whether or not his back and hip problems were work related. It has now been so determined that such physical problems are work related and the City will be responsible for Mr. Lutman’s back and hip problems. Mr. Lutman continues to be permanently disabled and unable to return to his normal employment duties because of his compensable wrist injury ...” Based on an average salary of approximately $29,043.83 over the past five years and the formula for computing job-connected disability pensions, this pension will approximate $21,782.87 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $289,797.12. The estimated pension cost (cash payout over the life of the pensioner and his spouse) is $740,618. Trustee Berfield moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ITEM #6 - Extend agreement with Coopers & Lybrand to perform actuarial valuations for the General Employees Pension Plan as of 1/1/96 and 1/1/97 for a fee not to exceed $13,000 per year Coopers & Lybrand were first hired in 1988 in response to a RFP for actuarial services. They have successfully performed the last eight actuarial studies. They have also assisted the City in several special projects, including the recent changes to the General Employees Pension Plan. Staff has always been pleased with the quality and timeliness of their work. Discussions held with the Trustees in November, 1993 resulted in the City Manager requesting actuarial services be rebid at least every ten years. Therefore, this will be the final agreement extension and actuarial services will be rebid in 1997. The $13,000 annual fee represents no increase in the prior two year agreement. Funding was anticipated and will be provided from the assets of the pension plan. Trustee Johnson moved to extend the agreement with Coopers & Lybrand to perform actuarial valuations for the General Employees Pension Plan as of 1/1/96 and 1/1/97 for a fee not to exceed $13,000 per year. The motion was duly seconded and carried unanimously. ITEM #7 - Other Business: In response to a question, the City Manager indicated an analysis of how the new rules will affect disability pensions will be provided at the next meeting. ITEM #8 - Adjournment: - 1:23 p.m.