05/13/1996 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
May 13, 1996
The City Commission, meeting as the Board of Trustees of the Employees' Pension Fund, met in regular session at City Hall, Monday, May 13, 1996 at 1:06 P.M., with the following members
present:
Rita Garvey Chairperson
J. B. Johnson Trustee
Ed Hooper Trustee
Karen Seel Trustee
Absent:
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 Hooper moved to approve the minutes of the April 15, 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) Janet Bennett
b) Michael Burns
c) Daniel Mayer
d) Kimberly NgTang
e) Derek Pike
f) Greg Renaud
Trustee Johnson 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 Edwin D. Hooper be granted a regular pension under Section(s) 2.393 and 2.397 of the Employees' Pension
Plan.
Edwin D. Hooper was employed on January 17, 1972, and began participating in the Pension Plan on that date. His retirement was effective on April 1, 1996.
Mr. Hooper’s pension was approved by the PAC on April 16, 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 $45,427 over the past five years, the formula for computing regular pensions, and Mr. Hooper’s selection of the Joint & Survivor Annuity,
this pension will approximate $30,238 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension
will be approximately $407,869. The estimated pension cost (cash payout over the life of the pensioner and his beneficiary) is $1,088,580.
Trustee Hooper declared a conflict of interest and announced he would abstain from voting on this item.
Trustee Johnson moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried with 3 affirmative votes and 1 abstention.
ITEM #5 - Authorize continuation of membership in the Association of Confederation Life Contractholders (ACLIC) & payment of membership assessments from the Pension Fund, for an amount
not to exceed $10,000
The Employees’ Pension Fund owns $4,000,000 in Guaranteed Investment Contracts (GIC’s) issued by Confederation Life Insurance Company. On August 12, 1994, Confederation Life filed
for bankruptcy.
The Association of Confederation Life Contractholders (ACLIC) provides valuable updates on the status of the GIC’s. They are the only source of information on the GIC’s.
The best information available (from ACLIC) has put the value of the GIC’s at between $0.92 and $1.03 on the dollar. The City stopped accruing interest on the GIC’s as of August 12,
1994, and is currently carrying the GIC’s at $0.90 on the dollar.
ACLIC was created to represent the GIC’s holders. The City is a member of ACLIC and paid an assessment of $2,000 in the last fiscal year. The current assessment due is in the amount
of $2,801.69 and is prorated based on the dollar amount of GIC’s that each organization owns.
Current estimates are that the bankruptcy will last for approximately two more years and that there will be at least one more assessment after this one.
Trustee Hooper moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously.
ITEM #6 - Other Business: - None.
ITEM #7 - Adjournment:
The meeting adjourned at 1:08 p.m.