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HomeMy WebLinkAbout11-12-1993 Minutes GENERAL EMPLOYEES' RETIREMENT TRUST FUND C (PENSION BOARD MEETING) November 12, 1993 The meeting was called to order at 10:15 a.m. in the community center by Chairman Lewis. PRESENT: Chairman Lewis, Members Grafton, Miller, Oliver, and Waldrop. Also present were Attorney Lee Denner and employee Janet Resnik. ABSENT: None APPROVAL OF MINUTES Members Oliver/Waldro• moved to a s'rove the minutes of the October 12 1993 meetin. as presented. Motion carried 5-0. ATTORNEY REPORT ACTUARY EVALUATION CERTIFICATES The Board discussed the presentation of the actuary evaluation reports to the employees and determined that it would be appropriate to ask Actuary Ward Foster to review the reports with the Board before presenting them to the employees, as it was done last year. Board members asked that the presentation be scheduled for two consecutive half days in January rather than one whole day due to their other responsibilities. C RECORDING SECRETARY In following up on the Board discussion and general approval regarding hiring a recording secretary in the October 12, 1993 meeting, Attorney Dehner advised that his research showed most boards pay about $7.00 per hour for the tasks involved in preparing/posting the agendas and recording/distributing the minutes. Secretary Grafton had asked Clerk/stenographer Judie Lewis to be present and act in that capacity and the Board welcomed her as recording secretary. PROPOSED REVISION RE: EMPLOYEE TRANSFERS FROM GENERAL PLAN TO FIRE/POLICE PLAN In response to Secretary Grafton's inquiry regarding the transfer of a participant from the General Employees Pension Fund to the Fire/Police Pension Fund, Mr. Dehner reviewed the current policy, i.e., (1) to withdraw employee contribution or (2) to leave it in against the possibility of returning, in which case the time in service would be credited toward vesting requirements should the employee return. Mr. Dehner said that it would be possible to change the policy to permit the employee to leave his contribution in the General Employee Fund to count toward vesting time with the Fire/Police department but not to be credited toward the Fire/Police Pension Fund because of the state insurance premium tax rebate program which specifically prohibits the crediting of other funds to the Fire/Police Pension Fund. Should this option be incorporated into the policy, at retirement the employee would receive a check from each fund. An alternative would be to permit the employee to 1 General Employees' Retirement Trust Fund Board Meeting November 12, 1993 withdraw his contribution to the General Fund Pension after achieving the full five year period in the Fire/Police fund. Mr. Dehner advised that it would be necessary to ask the City to amend the controlling ordinance if the Board determines that a change is in order. The question was raised about whether using this method to accumulate the vesting time for the pension would cause a problem with the calculation of retirement time, as a chief may wish to keep an employee as long as possible. It was decided to request that Actuary Foster provide some specifics so that Board could make an informed decision regarding the proposed change. Questions to be considered: 1. Does the Board wish to propose that the time served in each plan be combined for vesting purposes in the case of a transfer from one plan to another? 2. If so, would the normal retirement date be counted from date of employment with City or from the date of transfer to Fire/Police department? (Isn't that a Fire/Police question rather than a General Fund question?) 3. Which accrual rate will be used in calculating at retirement - the one in affect at the time of withdrawal from General Fund or the one in affect in the Fire/Police Fund at retirement? 4. If an employee leaves after 3 years in each plan, is the employee vested? Need to provide clear language here. 5. What is the cost impact of these decisions? Attorney Dehner said that he would confer with the Fire/Police Board to see if they are interested in such a change in the plan. DISCUSSION ON AMENDMENTS TO OPERATING RULES AND PROCEDURES Rules dated October 13, 1992, approved by Board November 20, 1992 and amended by Board to delete the election rule in its entirety September, 1993. As a result of recent experience with a professional who attended board meetings and solicited business during the meetings, the policy with respect to consultants was agreed upon as follows: Should a problem occur with a current consultant, the problem will be discussed with the consultant during a board meeting. If the problem is not resolved the Board would then advertise for a request for proposal (RFP) and consider other consultants. Attorney Dehner suggested that written material or solicitations from consultants and seminars be placed and maintained on file so that the solicitor can be notified should the need arise to send out for RFP's for that particular service. Election Procedures The process of posting notices was reviewed and in order to assure that all employees would be notified it was decided that Mr. Waldrop would post all notices in departments away from City Hall and Secretary Grafton would post all notices at City Hall. 2 General Employees' Retirement Trust Fund Board Meeting November 12, 1993 Ms. Resnik asked that "voting member" be defined for the record. Mr. Dehner defined a voting member as an actively employed full-time employee who is a member of the General Fund Plan who has not retired or transferred to the Fire/Police Fund Plan. Secretary Grafton left the room to get a copy of the Notice for Election used in the last Pension Board election so that it could be used as a pattern for rewording the election procedures. In her absence from the room there was discussion regarding staggering the terms of the employee/members of the Board. It was decided that the method to be used, though not perfect, would be to simply informally cut one term to one year and hold an election to fill that seat for two years. Mr. Waldrop volunteered to be the employee to resign and run again for the seat. The election procedure, page 2, section 1.7. paragraph A was reworded as follows: "Anyone wishing to have their name on the ballot should submit a letter of nomination to the City Clerk in her office. The new term will begin on October 1. Nominations will be received beginning noon on August 1st and ending noon August 15th, excepting if the 15th falls on Saturday/Sunday, noon on the immediately following Monday. Those names received shall be posted on the City Clerk's official bulletin board, the Personnel bulletin board in City Hall and shall be distributed to all department heads for posting by noon on the first working day following the day which nominations close. Ballots shall be distributed with the first pay check in September and shall be returned, in a sealed envelope with the voting member's name on the outside, to the office of the Director of Personnel by 5:00 p.m. the Wednesday immediately following the first payday in September. The ballot box shall be sealed at that time and will be taken to the security of the city safe, where it will remain until delivered by the Director of Personnel to the Board at their next scheduled meeting, at which time the votes shall be counted. Replacement ballots for those who misplace/lose their ballots will be available at the City Clerk's office beginning at 3:00 p.m. the first normal working day in September and will be accepted at the Personnel office until 5:00 p.m. the Wednesday immediately following the first payday in September. Before the votes are counted, the envelopes containing the votes will be carefully screened for duplicates. If duplicates are found any and all votes cast by the same person will be set aside and not counted." Secretary Grafton pointed out that until this action of adopting the amendments to the rules and procedures and the selected excerpts is completed the new employees are not receiving valid and vital information. Member Waldrop raised a question regarding the responsibility of the Board toward a new department head who, in trying to determine whether he wished to become a member, asked for an actuarial evaluation report showing his benefits should he retire at 55-60. Chairman (by 3 General Employees' Retirement Trust Fund Board Meeting November 12, 1993 Lewis pointed out that the Board had stipulated one free report to each member but the matter of such reports for non-members had not been addressed. Attorney Dehner said that the Board had authorized Mr. Foster to communicate with the new employee but that any cost incurred should be paid by the employee. BILLS AUTHORIZED FOR PAYMENT Secretary Grafton presented the following bills for approval: 1. FPPTA Application for membership $ 100.00 2. Christiansen & Dehner, P.A. $1,150.00 3. Member Kit Murphy $2,311.77 Resigned-Approval for lump sum payout return of contribution Oliver/Miller moved to pay the bills as presented. Motion carried 5-0. ADJOURNMENT The meeting adjourned at 11:45 a.m. Respectfully submitted, Judie F. Lewis Clerk/Stenographer 4