01/29/1996 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
January 29, 1996
The City Commission, meeting as the Board of Trustees of the Employees' Pension Fund, met in regular session at City Hall, Monday, January 29, 1996 at 9:04 A.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 Clark moved to approve the minutes of the January 16, 1996, meeting. The motion was duly seconded and carried unanimously.
ITEM #3 - 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(s) 2.393 and 2.397 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 is effective on January 19, 1996.
Mr. Morrison’s pension was approved by the PAC on January 11, 1996. Section 2.393 (p) defines normal retirement date as including when a participant has completed thirty years of credited
service regardless of age.
Based on an average salary of approximately $43,395.15 over the past five years, the formula for computing regular pensions, and Mr. Morrison’s selection of the Joint & Survivor Annuity,
this pension will approximate $36,447.36 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension
will be approximately $476,499.25. The estimated pension cost (cash payout over the life of the pensioner and his beneficiary) is $1,166,316.
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 Elmer E. Willis be granted a regular pension under Section(s) 2.393 and 2.397 of the Employees' Pension
Plan.
Elmer E. Willis was employed on January 21, 1975, and began participating in the Pension Plan on July 28, 1975. His retirement is effective on January 30, 1996.
Mr. Willis’ pension was approved by the PAC on January 11, 1996. Section 2.393 (p) defines normal retirement date as including when a participant reaches age 55 and has completed twenty
years of credited service.
Based on an average salary of approximately $37,949.77 over the past five years, the formula for computing regular pensions, and Mr. Willis’ selection of the Ten Year Certain & Life
Annuity, this pension will approximate $20,892.84 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this
pension will be approximately $239,189.25. The estimated pension cost (cash payout over the life of the pensioner and his spouse) is $459,642.
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 Paul J. Noeske be granted a regular pension under Section(s) 2.393 and 2.397 of the Employees' Pension
Plan.
Paul J. Noeske was employed on January 14, 1974, and his pension service credit is effective that date. His retirement was effective on January 3, 1996.
Sergeant Noeske’s pension was approved by the PAC on January 11, 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 $53,136.75 over the past five years, the formula for computing regular pensions, and Sergeant Noeske’s selection of the standard benefit
payment (Joint Survivor Annuity), this pension will approximate $32,094.96 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value
cost of financing" this pension will be approximately $435,635.89. The estimated pension cost (cash payout over the life of the pensioner and his spouse) is $1,198,514.
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 Ralph Lucas be granted a regular pension under Section(s) 2.393 and 2.397 of the Employees' Pension
Plan.
Ralph Lucas was employed on April 13, 1966, and his pension service credit is effective that date. His retirement is effective on January 25, 1996.
Lieutenant Lucas’ pension was approved by the PAC on January 11, 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 $50,833.16 over the past five years, the formula for computing regular pensions, and Lieutenant Lucas’ selection of the 100% Joint & Survivor
Annuity, this pension will approximate $40,198.20 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this
pension will be approximately $567,910.96. The estimated pension cost (cash payout over the life of the pensioner and his beneficiary ) is $1,849,117.
Trustee Thomas moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously.
ITEM #7 - Request for Pension:
The City Manager presented the recommendation of the Pension Advisory Committee that Frederick R. Casale be granted a regular pension under Section(s) 2.393 and 2.397 of the Employees'
Pension Plan.
Frederick R. Casale was employed on July 31, 1972, and his pension service credit is effective that date. His retirement will be effective on September 19, 1996.
Officer Casale’s pension was approved by the PAC on January 11, 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 $42,885.25 over the past five years, the formula for computing regular pensions, and Officer Casale’s selection of the standard benefit payment,
this pension will approximate $27,619.56 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension
will be approximately $352,314.49. The estimated pension cost (cash payout over the life of the pensioner and his spouse ) is $948,271.
Trustee Clark moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously.
ITEM #8 - Request for Pension:
The City Manager presented the recommendation of the Pension Advisory Committee that Allen H. Edelman be granted a regular pension under Section(s) 2.393 and 2.397 of the Employees'
Pension Plan.
Allen H. Edelman was employed on a part-time basis on December 21, 1959, and began participating as a full-time employee in the Pension Plan on November 15, 1965. His retirement is
effective on January 19, 1996.
Mr. Edelman’s pension was approved by the PAC on January 11, 1996. Section 2.393 (p) defines 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. Edelman is eligible under either criteria.
Based on an average salary of approximately $40,007.27 over the past five years, the formula for computing regular pensions, and Mr. Edelman’s selection of the 100% Joint & Survivor
Annuity, this pension will approximate $30,826.80 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this
pension will be approximately $382,444.80. The estimated pension cost (cash payout over the life of the pensioner and his spouse) is $832,324.
Trustee Clark moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously.
H. M. Laursen, Human Resources Director indicated a question had been raised by the PAC regarding the necessity of regular pensions being items on the Trustees agenda now that the new
ordinance is in effect. He suggested refering this to the Legal Department for an opinion.
It was also suggested the City Manager sign off on the pensions.
Discussion ensued regarding whether or not there was an appeal provision from a PAC decision. The City Attorney will investigate.
Consensus was if Legal determined the code allows the PAC to approve these pensions, they will not need to come to the Trustees for approval.
ITEM #9 - Other Business:
a) Confirm & authorize Pension Fund to pay for ouside counsel re Association of Confederation Life Contractholders, et al. v. Commissioner of Insurance of State of Michigan (regarding
Rehabilitation of Confederation Life Insurance Company) for an amount not to exceed $10,000 without further action
Trustee Thomas moved to confirm and authorize the Pension Fund to pay for ouside counsel for the case, Association of Confederation Life Contractholders, et al. v. Commissioner of Insurance
of State of Michigan (regarding Rehabilitation of Confederation Life Insurance
Company) for an amount not to exceed $10,000 without further action. The motion was duly seconded and carried unanimously.
ITEM #10 - Adjournment:
The meeting adjourned at 9:12 a.m.