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HomeMy WebLinkAbout06-26-1995 Minutes THE CITY OF OCOEE GENERAL EMPLOYEES' RETIREMENT TRUST FUND (PENSION BOARD MEETING) - June 26, 1995 Chairman Miller called the meeting of the City of Ocoee General Employees' Retirement Trust Fund to order at 9:55 a.m. in the Commission Chamber Conference Room of City Hall. The roll was called and a quorum declared present. PRESENT: Chairman Miller, Members Dabbs, Grafton, Oliver and Waldrop. Also present was Clerk/Stenographer Lewis. ABSENT: None. DISCUSSION/RECOMMENDATION OF BENEFITS IMPROVEMENTS Chairman Miller said that she had met with City Manager Shapiro, Administrative Services Director Beamer, and Personnel Director Psaledakis on June 16, 1995, regarding a series of letters that had been sent from Christiansen and Dehner on behalf of the Board to the City Manager requesting the recommendations and amendments to the General Employees' Retirement Trust Fund Ordinance and Plan. Ms. Miller also said that the attorney had provided additional information that the City Manager had requested regarding the Internal Revenue Service Codes. The City had no problem with any of the required amendments to the Plan, with the exception of Section 3 which is the benefit accrual rate from 2% to 2.5%. The City Manager's position was that the City could not afford the .5% increase. itow Chairman Miller said that she believed that Chairman Reed of the Police/Fire Plan had met with the City Manager, and had requested a .5% increase but they were also told that the City could not afford the increase. Ms. Miller had then asked Mr. Shapiro if the City would look at other possibilities, such as funding the retirees portion of health benefits. The health benefit would be a substantial savings for retirees and would be more valuable in the future. Lengthy discussion ensued about various improvement in the benefits. Chairman Miller had asked for but had not received figures from the City. Member Waldrop expressed concern over returning a second time to the City in an attempt to increase the rate. He was also concerned about the cost involved to the Fund of attorney and actuarial fees for additional requests. Chairman Miller said that it was too important an issue to let go, and she did not want to give up on the health benefits. Member Grafton said that, presently, she did not want an increase but wanted one that would begin in two years. The City had informed Ms. Grafton that there was no money for two years. As soon as the anticipated money began to flow, she wanted the Fund to receive the money out of the first money, and to begin the insurance coverage now. Member Oliver said that the Board needed to be realistic, and suggested phasing the increase in increments. Member Grafton, seconded by Member Oliver, moved to go with a .5% increase over a three 3 ear .eriod and within the next bud.et ear to •ut somethin. in the Plan for health insurance, beginning with the retirees from the date of the ordinance following. Motion carried 5-0. The City of Ocoee General Employees' Retirement Trust Fund June 26, 1995 In a conference call to Attorney Christiansen, Chairman Miller explained that Mr. Shapiro had informed her that in order for the City Commission to consider the request prior to them starting their budget work session and planning, that it must be placed on the agenda right away. She then reported the decision of the Board and the purpose of the call. Attorney Christiansen said that the State would require the City to fund the entire increase the first year, and it would not gain the Fund anything. Chairman Miller suggested leaving the ordinance as it was, with the choice to amend it, and give them the three (3) years and/or to include within next budget year to add the health benefits, and Attorney Christiansen said that the health benefits could not be put in the Plan. Member Dabbs said that if the City must fund the whole thing, then he believed that it would be better to return to the drawing board and ask for .2% for next year, and return each year. Discussion then ensued regarding other options. Chairman Miller recommended .2% this year, and state in a letter to the City that the Board will return a second and third years with similar requests. Member Oliver, seconded by Member Grafton, moved to ask that the City Commission increase the multiplier .2% this year, and directed Attorney Christiansen to write a letter to the City Manager that the Board would be asking for a similar increase again next year. Motion carried 5-0. In a conference call to Actuary Garrett, Chairman Miller disclosed the Board's actions. Actuary Garrett said that such action would require three impact statements and three separate ordinance changes. It was not the most cost effective way to do the multiplier increase. Mr. Garrett said that the City knew the goal of the Board. He had ran some figures at .25% that had come to about 1.9% increase in payroll. It was not quite half of the increase instead of a 3.6% increase. By cutting the increase in the benefit rate by half the funding increased a little bit more than half. At 2.2%, he said that it would roughly be 42-43% of the increase and was looking at a 3.6% increase (ballpark), and that it would be around 1.7%. The Board directed Actuary Garrett to do a study at 2.2% multiplier and send it next day delivery to Member Grafton. Actuary Garrett confirmed Attorney Dehner's disclosure that the health benefit could not be put into the Plan. The Board could place a supplement into the pension plan, funded by the City, that would pay a certain dollar amount for increased benefits, benefit rate multiplier, in lieu of the insurance. This Pension Plan could not pay out health insurance premiums. Mr. Garrett said that he would do a study to show the cost of what a $200 supplement would be, and Member Dabbs suggested holding off on the study. No action was taken. Another call was placed to Attorney Christiansen, and Chairman Miller presented details of the call with Actuary Garrett who will do a study at 2.2% benefit rate, change the ordinance, along with a letter to the City Manager Shapiro, via Member Grafton, that the Board will return next year with a similar .2% increase. cry 2 The City of Ocoee General Employees' Retirement Trust Fund fitry June 26, 1995 QUESTIONS/COMMENTS FROM AUDIENCE None ADJOURNMENT The meeting was adjourned at 11:15 a.m. Respectfully submitted, Ju ' wis, Clerk tenographer A:\W P60\WPDOCS\GE062695 UFL L Liv 3