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HomeMy WebLinkAboutMinutes 04-22-24 Police Special MeetingCity of Clermont C LE00N Retirement Plan and Trust for the Police Officers T DRAFT Special Meeting Minutes Clwiee of Charnpio.�s April 22, 2024 1. Jason Sayre called the special meeting of the Retirement Plan and Trust for the Police Officers Board of Trustees to order at 11:02 AM, April 22, 2024 in Council Chambers at the Clermont City Hall. He called roll, and there was a quorum. Those persons present included: TRUSTEES OTHERS Jason Sayre, Chair Scott Baur, Administrator, Resource Centers Kelly Cartier Nadine Ohlinger, Human Resources, City of Clermont Mark Marshall Clermont HR Electronically: Kyle Tintle, Administrator, Resource Centers Stuart Kaufman, Attorney, Klausner Kaufman Jensen & Levinsor Chuck Carr, Actuary, Southern Actuarial Services Aaron Grassi, Clermont Police Officer Evelyn Torres, Pension Beneficiary Brian Rodriguez, son of Ramon Torres 2. Extraordinary (Exigent) Circumstances for Trustees Joining Electronically No Trustee joined the meeting electronically. 3. Reports a) Administrator —Scott Baur (Resource Centers) Mr. Baur provided the reason for the Special Meeting. He presented a brief background on a member buyback calculation that did not result in an additional contribution for the added service. b) Actuary— Chuck Carr (Southern Actuarial Services) Mr. Carr explained the method and assumptions for the service calculation. The individual in question has about 18 years of service and the plan assumes the member will retire at 20 years of service. The member has had substantial pay increases in the past 5 years' final average salary periods. The resulting benefit increases make the benefit at 20 years of service more expensive, though a lesser benefit would be paid sooner. Ms. Jensen had suggested that service credit cannot be given unless the member makes a contribution. Therefore, at a minimum the member should make a minimum contribution for the service. Mr. Kaufman agreed the member can make the regular contribution rate. Jason Sayre addressed the cost calculation and the information already given to the member. Mr. Kaufman addressed estoppel in the situation, which does not apply if the Board clarifies the provisions of the Plan. He recommended the Board require the member to make a nominal contribution on the purchased service. Mr. Kaufman also recommended the Board require an additional contribution or the Board could approve this benefit and establish a policy going forward. Aaron Grassi advised the Board that he already submitted paperwork to separate from employment as of June 6, 2024. Mr. Kaufman stated the Board could make a reasonable interpretation in this situation and estoppel. City of Clermont CLE00 T Retirement Plan and Trust for the Police Officers DRAFT Special Meeting Minutes Clwice of Clrarnpir�;7s April 22,. 2024 Jason Sayre made a motion to approve the member actuarial calculation at no cost but going forward the member must make a contribution. Kelly Cartier seconded the motion. The motion was approved by the Trustees, 3-0. Jason Sayre made a motion that the Board must approve service purchase before the purchase becomes final. Kelly Cartier seconded the motion. The motion was approved by the Trustees, 3-0. Mr. Carr further explained the option for a member to purchase service and methodology at full actuarial cost. He explained the typical method to purchase. Mr. Carr also explained a possible true -up that the actuary could complete at retirement that might result in either an additional cost or a refund to the member. A change to the calculation method might require an ordinance. Jason Sayre offered a hypothetical where someone chooses not to retire if the plan assumes that the member will retire. Mr. Carr explained that choice would result in either a positive or negative experience. The difference depends on the change in the benefit to the member during that time. Jason Sayre asked about possible adjustments if the purchases impact the plan negatively. As a solution, Mr. Carr offered an ordinance amendment for a cost true -up at separation. Mr. Kaufman stated that a true - up could only apply prospectively. Jason Sayre asked for education or workshop on a true -up. He requested additional information if available. Mr. Carr will try to discuss this in the valuation report. Mr. Kaufman said any existing application is grandfathered. c) Beneficiary Payment (Evelyn Torres) Mr. Baur explained the situation regarding Evelyn Torres to the Board. Jason Sayre stated the Board made a clear decision in 2013 in granting a lifetime benefit, and this Board should uphold the prior Board decision. Brian Rodriguez, Ramon Torres's son, addressed the Board. He said the situation has cost Ms. Torres fees and late payment charges of $189. Kelly Cartier made a motion to pay the lifetime benefit to Ms. Torres. The motion received a second from Mark Marshall, approved by the Trustees 3-0. Kelly Cartier made a motion to reimburse Evelyn Torres for expenses resulting from the stopped payment upon receipt of the expenses. Jason Sayre seconded the motion. The motion was approved by the Trustees, 3-0. 6.Other Business No other business. 7. Public Comment No other business. B. The next pension board meeting will be Wednesday, May 22, 2024 at 11:00 AM. Jason Sayre made a motion to adjourn the quarterly meeting. Kelly Cartier seconded the motion. The motion was approved by the Trustees, 3-0. City of Clermont �LEM01W Retirement Plan and Trust for the Police Officers T DRAFT Special Meeting Minutes Cijorte a. Chainpias April 22, 2024 9. Jason Sayre called the meeting adjourned at 12:22 PM. Chair ^—S Secretary Date 08/28/2024 L City of Clermont CLERWIONT Retirement Plan and Trust for the Police Officers ChaiceofChampions DRAFT Special Meeting Minutes April 22, 2024 1. Jason Sayre called the special meeting of the Retirement Plan and Trust for the Police Officers Board of Trustees to order at 11:02 AM, April 22, 2024 in Council Chambers at the Clermont City Hall. He called roll, and there was a quorum. Those persons present included: TRUSTEES OTHERS Jason Sayre, Chair Scott Baur, Administrator, Resource Centers Kelly Cartier Nadine Ohlinger, Human Resources, City of Clermont Mark Marshall Clermont HR Electronically: Kyle Tintle, Administrator, Resource Centers Stuart Kaufman, Attorney, Klausner Kaufman Jensen & Levinsor Chuck Carr, Actuary, Southern Actuarial Services Aaron Grassi, Clermont Police Officer Evelyn Torres, Pension Beneficiary Brian Rodriguez, son of Ramon Torres 2. Extraordinary (Exigent) Circumstances for Trustees Joining Electronically No Trustee joined the meeting electronically. 3. Reports a) Administrator —Scott Baur (Resource Centers) Mr. Baur provided the reason for the Special Meeting. He presented a brief background on a member buyback calculation that did not result in an additional contribution for the added service. b) Actuary — Chuck Carr (Southern Actuarial Services) Mr. Carr explained the method and assumptions for the service calculation. The individual in question has about 18 years of service and the plan assumes the member will retire at 20 years of service. The member has had substantial pay increases in the past 5 years' final average salary periods. The resulting benefit increases make the benefit at 20 years of service more expensive, though a lesser benefit would be paid sooner. Ms. Jensen had suggested that service credit cannot be given unless the member makes a contribution. Therefore, at a minimum the member should make a minimum contribution for the service. Mr. Kaufman agreed the member can make the regular contribution rate. Jason Sayre addressed the cost calculation and the information already given to the member. Mr. Kaufman addressed estoppel in the situation, which does not apply if the Board clarifies the provisions of the Plan. He recommended the Board require the member to make a nominal contribution on the purchased service. Mr. Kaufman also recommended the Board require an additional contribution or the Board could approve this benefit and establish a policy going forward. Aaron Grassi advised the Board that he already submitted paperwork to separate from employment as of June 6, 2024. Mr. Kaufman stated the Board could make a reasonable interpretation in this situation and estoppel. L City of Clermont CLERWIONT Retirement Plan and Trust for the Police Officers ChaiceofChampions DRAFT Special Meeting Minutes April 22, 2024 Jason Sayre made a motion to approve the member actuarial calculation at no cost but going forward the member must make a contribution. Kelly Cartier seconded the motion. The motion was approved by the Trustees, 3-0. Jason Sayre made a motion that the Board must approve service purchase before the purchase becomes final. Kelly Cartier seconded the motion. The motion was approved by the Trustees, 3-0. Mr. Carr further explained the option for a member to purchase service and methodology at full actuarial cost. He explained the typical method to purchase. Mr. Carr also explained a possible true -up that the actuary could complete at retirement that might result in either an additional cost or a refund to the member. A change to the calculation method might require an ordinance. Jason Sayre offered a hypothetical where someone chooses not to retire if the plan assumes that the member will retire. Mr. Carr explained that choice would result in either a positive or negative experience. The difference depends on the change in the benefit to the member during that time. Jason Sayre asked about possible adjustments if the purchases impact the plan negatively. As a solution, Mr. Carr offered an ordinance amendment for a cost true -up at separation. Mr. Kaufman stated that a true - up could only apply prospectively. Jason Sayre asked for education or workshop on a true -up. He requested additional information if available. Mr. Carr will try to discuss this in the valuation report. Mr. Kaufman said any existing application is grandfathered. c) Beneficiary Payment (Evelyn Torres) Mr. Baur explained the situation regarding Evelyn Torres to the Board. Jason Sayre stated the Board made a clear decision in 2013 in granting a lifetime benefit, and this Board should uphold the prior Board decision. Brian Rodriguez, Ramon Torres's son, addressed the Board. He said the situation has cost Ms. Torres fees and late payment charges of $189. Kelly Cartier made a motion to pay the lifetime benefit to Ms. Torres. The motion received a second from Mark Marshall, approved by the Trustees 3-0. Kelly Cartier made a motion to reimburse Evelyn Torres for expenses resulting from the stopped payment upon receipt of the expenses. Jason Sayre seconded the motion. The motion was approved by the Trustees, 3-0. 6. Other Business No other business. 7. Public Comment No other business. 8. The next pension board meeting will be Wednesday, May 22, 2024 at 11:00 AM. Jason Sayre made a motion to adjourn the quarterly meeting. Kelly Cartier seconded the motion. The motion was approved by the Trustees, 3-0. L City of Clermont CLERWIONT Retirement Plan and Trust for the Police Officers ChaiceofChampions DRAFT Special Meeting Minutes April 22, 2024 9. Jason Sayre called the meeting adjourned at 12:22 PM. Chair Secretary Date