07-18-2000 Joint Meeting• •
MINUTES
City of Clermont
Police Officers/Firefighters Pension Board of Trustees
Joint Meeting
July 18, 2000
(Quarter Ended June 30, 2000)
Meeting started at 10:00 a.m. at the Police Department Community Services room.
Trustees present were Keith Mullins (Chairman), Danny Cheatham, David Lofgren,
Oakley Seaver and Mike Scheller from the Police Officers Board and Paul
Anderson (Chairman), Daryl Hyatt, Keith Mullins and Bo Waldrop from the
Firefighters Board. City Finance Director Joe Van Zile was also present.
Minutes of the January 7, 2000 Firefighter Pension Board Meeting were approved.
Motion by Keith Mullins and seconded by Bo Waldrop.
Minutes of the January 6, 2000 Police Officers Pension Board Meeting were
approved with the revision of Keith Mullins making the motion and seconded by
Harold Cummings regarding the approval of the minutes pertaining to the
November 16,1999 meeting. Motion by Dave Lofgren and seconded by Oakley
Seaver.
Joe Van Zile explained that the main purpose of this meeting was for the Pension
Administrator and Actuarial Consultant to be present to discuss a first draft of a
revised Pension Plan Document which would incorporate Legislative required plan
changes as well as other suggested technical revisions. Recent discussions with the
Administrator indicated that the revised Plan Document was not available for
discussion at this point. As a result, it was felt that the Administrators and
Actuarial Consultants presence would be better served at a future meeting when the
report is complete.
The Police Officers/Firefighters October 1,1999 Actuarial valuations were
discussed. Components of the valuations which were discussed in detail concern the
following:
- Value of individual plan assets
- Amount of total annual cost for each plan
- Breakdown of contributions between the employees, city and state
- Present value of expected benefits and actuarial value of plan assets
- Investments activity
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Pension Board members felt that it would be better to discuss required changes
upon receipt of the proposed revised plan document from the Pension
Administrator.
Board members requested the Actuarial Consultant to prepare a cost impact study
pertaining to the following possible revisions:
- Change the benefit accrual rate for full-time firefighters from 2.00%
to 3.00% or comparable to police officers.
- Change the benefit accrual rate for volunteer firefighters from $5.00
per year to an amount based on percentage of earnings, with a
minimum of $5.00 per year.
- Change the benefit calculation method pertaining to those volunteer
firefighters who subsequently become full-time firefighters. The
change should provide a method whereas the full-time firefighter
would be able to receive credit as a full-time employee even during a
period serving the City as a volunteer. One method discussed was
that of a "Buy-Back" option, whereas, full-time firefighters would be
able to buy-back time served as a volunteer firefighter and reclassify
it as full-time status.
- Change the minimum years to be vested in the police
officers/firefighters plans from 10 years to 8 or 6 years.
- Provide for an annual cost of living allowance for all police/firefighter
retirees commensurate with the cost of living allowance provided to
the City's active employees.
- Provide a Drop Plan that would allow police officers/firefighters who
would otherwise be entitled to retire and receive benefits to continue
to work and draw a salary for a specific length of time.
- Change the normal retirement age for police officers from age 55 to
50 and to increase the benefit accrual rate accordingly, in order to
maintain the same benefit amount.
- Consider an option where police officers could retire after 20 years,
regardless of age.
- Provide the opportunity for police officers/firefighters to contribute to
the pension plan more than the current 1 %.
Joe Van Zile indicated these changes would be sent to the Pension
Administrator in order to receive cost estimates of their impact.
Mee 'ng ad'ourned at 1 :30 a.m.
Chairman
Secretary