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02/12/1996 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING February 12, 1996 The City Commission, meeting as the Board of Trustees of the Employees' Pension Fund, met in regular session at City Hall, Monday, February 12, 1996 at 1:40 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 Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk ITEM #2 - Minutes: Trustee Thomas moved to approve the minutes of the January 29, 1996, 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) Kim Jackson b) Linda McPerson c) Lynne Priester d) John Schauder e) Jack Bryant f) Steven Cook g) William Glenn h) Brenda McLaughlin Trustee Thomas 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 Robert G. Hink be granted a regular pension under Section(s) 2.393 and 2.397 of the Employees' Pension Plan. Robert G. Hink was employed on January 15, 1973, and his pension service credit is effective on May 28, 1973. At the time of Mr. Hink’s employment, pension deductions for employees were not immediately commenced. Subsequently, when employees were provided an opportunity to make up pension contributions, he did not elect to do so. His retirement was effective on January 19, 1996. Mr. Hink’s pension was approved by the PAC on January 25, 1996. Section 2.393 (p) provides for normal retirement eligibility when a participant has completed twenty years of credited service in a type of employment described as “hazardous duty” and further specifically defines service as a firefighter as meeting the hazardous duty criteria. Based on an average salary of approximately $38,404.85 over the past five years, the formula for computing regular pensions, and Mr. Hink’s selection of the 75% Joint & Survivor Annuity, this pension will approximate $24,001.08 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $312,988.65. The estimated pension cost (cash payout over the life of the pensioner and his spouse) is $762,034. Trustee Thomas 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 Fred C. Ratley be granted a regular pension under Section(s) 2.393 and 2.397 of the Employees' Pension Plan. Fred C. Ratley was employed on February 9, 1966, and began participating as a full time employee in the Pension Plan on that date. His retirement will be effective on February 16, 1996. Mr. Ratley’s pension was approved by the PAC on January 25, 1996. Section 2.393 (p) provides for normal retirement date as when a participant reaches age 55 and has completed twenty years of credited service or when the participant has completed thirty years of credited service regardless of age. Mr. Ratley is eligible under either criteria. Based on an average salary of approximately $35,843.99 over the past five years, the formula for computing regular pensions, and Mr. Ratley’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $29,139.48 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $387,668.72. The estimated pension cost (cash payout over the life of the pensioner and his spouse) is $990,742. Trustee Clark 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 Richard N. Valentine be granted a regular pension under Section(s) 2.393 and 2.397 of the Employees' Pension Plan. Richard N. Valentine was employed on February 28, 1972, and his pension service credit is effective that date. His retirement was effective on January 19, 1996. Officer Valentine’s pension was approved by the PAC on January 25, 1996. Section 2.393 (p) provides for normal retirement eligibility when a participant has completed twenty years of credited service in a type of employment described as “hazardous duty” and further specifically defines service as a sworn police officer as meeting the hazardous duty criteria. Based on an average salary of approximately $46,168.54 over the past five years, the formula for computing regular pensions, and Officer Valentine’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $29,903.64 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $394,733.21. The estimated pension cost (cash payout over the life of the pensioner and his spouse) is $986,820. Trustee Thomas moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. Chairperson Garvey questioned regular pension requests coming to the Trustees. The City Attorney is to respond. ITEM #7 - Other Business: - None. ITEM #8 - Adjournment: The meeting adjourned at 1:42 p.m.