10-23-2001 Joint Meeting• •
MINUTES
City of Clermont, Florida
Police Officers/Firefighters Pension Board of Trustees Joint Meeting
October 23, 2001
Meeting started at 10:00 A.M. at the Police Department Community Services Room.
Police Officers trustees present were Keith Mullins (Chairman), Oakley Seaver, David Lofgren,
Mike Blackmon and Mike Scheller. Firefighters trustees present were Paul Anderson (Chairman),
Keith Mullins and Richard Bell. Finance Director Joe Van Zile and Pension Plan Actuary Murray
Cohen were also present.
Minutes of the June 12, 2001 Firefighters Pension Board Meeting were approved. Motion by Richard
Bell and seconded by Keith Mullins.
Minutes of the June 12, 2001 Police Officers Pension Board Meeting were approved. Motion by
Oakley Seaver and seconded by Mike Blackmon.
Finance Director Van Zile explained that at the last joint pension meeting, trustees requested
representatives from the pension administrator to be on hand to discuss the following possible
plan enhancements:
>Police
(1) Change the benefit accrual rate from 2.25% to 3.00% effective October 1, 2001
(2) Add another normal retirement option based on twenty (20) years of service,
regardless of age
(3) Change the vesting years requirement from ten (10) years to a graduated five (5)
to ten (10) year schedule
(4) Add a deferred retirement option
>Fire
(1) Change the benefit accrual rate from 2.00% to 2.25% for full-time service prior to
October 1, 2001 and 3.00% for full-time service after October 1, 2001
(2) Add another normal retirement option based on twenty (20) years of service,
regardless of age
(3) Change the vesting years requirement from ten (10) years to a graduated five (5)
to ten (10) year schedule
(4) Add a deferred retirement option
Plan Actuary Murray Cohen discussed the above noted changes. According to the previous cost
estimates prepared by Mr. Cohen, the above changes would cost approximately $71,299 or 8.75%
of payroll for the Police Officers plan and approximately $9,500 or 7.13% of payroll for the Firefighters
plan. As has been discussed in previous pension meetings, both board's trustees were interested in
adjusting the employee contribution rates to cover the estimated cost of changes #2 and #3.
According to Mr. Cohen's estimates, the percentage of payroll cost applicable to changes #2 and #3
were approximately 2.25% of payroll for the Police Officers and 2.00% of payroll for the Firefighters.
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2
After considerable discussion, the consensus of both board's trustees was that the above
noted plan enhancements should be recommended to the City Council for adoption.
The recommendation should also include that the funding for the above noted changes
should be as follows:
> Increase the Police Officers contribution rate from 1.00% to 2.25% of gross wages
> Increase the Firefighters contribution rate from 1.00% to 2.00% of gross wages
> Increase the City's contribution by approximately 6.50% of Police Officers payroll
and 5.13% of Firefighters payroll. It was noted that the Firefighters plan excess
assets are sufficient enough to cover the cost of the City's increased contribution
to the Firefighters plan.
Finance Director Van Zile indicated he would draft a resolution addressing the above noted
enhancements for the next pension meeting.
Meeting adjourned at 11:30A.M.
Paul Anderson
Firefighters Chairman
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Richard Bell
Firefighters Secretary