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06-12-2001 Joint Meetingc: MINUTES • City of Clermont, Florida Police Officers/Firefighters Pension Board of Trustees Joint Meeting June 12, 2001 Meeting started at 9:00 A.M. at the Police Department Community Services Room. Police Officers trustees present were Keith Mullins (Chairman), Oakley Seaver, David Lofgren, and Mike Blackmon. Firefighters trustees present were Paul Anderson (Chairman), Keith Mullins, Richard Bell and Harold Cummings. Finance Director Joe Van Zile was also present. Minutes of the May 22, 2001 Firefighters Pension Board Meeting were approved. Motion by Keith Mullins and seconded by Richard Bell. Minutes of the May 22, 2001 Police Officers Pension Board Meeting were approved. Motion by Dave Lofgren and seconded by Oakley Seaver. At the May 22nd meeting, the trustees requested an additional cost study for each plan based on the following possible combined changes: >Police -Change the benefit accrual rate from 2.25% to 3.00% effective October 1, 2001 -Add another normal retirement option based on twenty (20) years of service, regardless of age -Add a deferred retirement option -Change the vesting years requirement from ten (10) years to a graduated five (5) to ten (10) year schedule >Fire -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 -Add another normal retirement option based on twenty (20) years of service, regardless of age -Add a deferred retirement option -Change the vesting years requirement from ten (10) years to a graduated five (5) to ten (10) year schedule Finance Director Van Zile discussed the actuary cost estimates of the above changes. The actuary estimate for the above changes indicated there would be a cost increase of 8.75% of payroll for the Police Officers plan and 7.13% for the Firefighters plan. It was noted that since the Firefighters plan was overfunded that the proposed changes would not result in a cash contribution from the City. Responsibility for the proposed contributions was discussed. Based on previous discussions, it was the consensus of the trustees that the city should be responsible for the cost increase associated with the benefit accrual rate increase and the employees should be responsible for the cost increase pertaining to the 20 years of service normal retirement option and the graduated vesting schedule. • • Accordingly, the responsibility for the contribution percentage increase for the Police Officers plan would be 6.50% (city) and 2.25% (employees); and for the Firefighters plan, 5.13% (city) and 2.00% (employees). Concerns were raised that some current employees may not benefit from the 20 years of service option and that it would be unfair to require employees to pay for an enhancement that would not benefit them. The idea of allowing all current employees to choose if they want to pay for the 20 year option and require all future employees to have the 20 year option was discussed. The consensus of the trustees was that it would be beneficial to have the city's pension administrator or actuary be present at the next meeting to further discuss this issue and also to provide more information regarding the DROP plan. The next meeting would be scheduled upon discussing this issue with the pension administrator. Meeting adjourned t 9:45 A.M. l n / ~ ~J r r /~ i 'i K~t~i Mullins Police Officers Chairman i~~%~~ Mike Scheller Police Officers Secretary