12-14-2000 Joint Meeting•
MINUTES
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City of Clermont, Florida
Police OfficerslFirefighters Pension Board of Trustees Joint Meeting
December 14, 2000
(Quarter Ended September 30, 2000)
Meeting started at 9:10 A.M. at the Police Department Community Services Room.
Police Officers trustees present were Keith Mullins (Chairman), Danny Cheatham, David Lofgren,
Oakley Seaver and Mike Scheller. Firefighters trustees present were Paul Anderson (Chairman),
Daryl Hyatt, Keith Mullins and Harold Cummings. City Finance Director Joe Van Zile was also present.
Minutes of the July 18, 2000 Police Officers/Firefighters Pension Board of Trustees Joint Meeting were
approved by the Police Officers Board of Trustees. Motion by Danny Cheatham and seconded by
Oakley Seaver.
Minutes of the July 18, 2000 Police Officers/ Firefighters Pension Board of Trustees Joint Meeting were
approved by the Firefighters Board of Trustees. Motion by Daryl Hyatt and seconded by Harold Cummings.
Joe Van Zile explained the city's pension administrator, Florida League of Cities has recommended the
city adopt a new pension plan document in order to be in compliance with chapters 175 and 185,
Florida Statutes. As a result, the League has provided a draft of anew plan document and adoption
agreement which has already been reviewed for legal compliance with applicable laws. The alternative
would be for the city to obtain a legal review of the city's current plan document for compliance with applicable
laws. Concerns with this approach are based on the fact of the cost of legal fees and time.
The Division of Retirement is withholding state insurance premium tax monies until the city makes the
required changes to the pension plans. The withheld insurance premium tax monies are approximately
$87,000 for the police plan and $53,000 for the firefighters plan. The adoption of the League's proposed
plan document would be the most expedient way to receive the state monies. The Police Officers
trustees approved the plan of reviewing the proposed League proposed plan document and adoption
agreement (motion by Oakley Seaver and seconded by Dave Lofgren}. The Firefighter's trustees
approved the same motion (motion by Daryl Hyatt and seconded by Harold Cummings).
Joe Van Zile discussed some differences between the city's current plan document and the League's
proposed plan document (copy attached). Mr. Van Zile indicated the differences were based on his
limited review of the proposed plan document and not intended to be all inclusive. Mr. Van Zile
suggested each trustee review the proposed plan document and compare to the current plan document
for additional differences. Trustees agreed and suggested that the League's pension representative
should be present at the next meeting to answer any questions or concerns that trustees may have.
The next meeting was scheduled for January 11, 2001 at 9:00 A.M. to further discuss the proposed
plan document.
Mr. Anderson asked whether it would be possible to incorporate voluntary changes in the proposed
plan document as well the required changes. Mr. Van Zile responded that the voluntary changes may
slow down the process and suggested that the required changes only be addressed at this time.
Trustees agreed, but indicated that as soon as the required changes are in place the voluntary
changes should be worked on.
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Meeting adjourned at 9:45 A.M.
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Ghaifman
Secretary /,~"~
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City of Clermont, Florida
Summary of Police and Fire Pension Changes
December 12, 2000
Benefit Changes
>Addition of another normal retirement date option based on age 52 and
25 years of service. (Adoption Agreement Section G. 1.)
>Reduce the benefit reduction for early retirement from the current 5% per year
between ages 50 and 55, to 3% per year. (Adoption Agreement Section G. 4.)
>Cost of above changes:
Police $9,457
Fire $2,573
Other Changes
>Plan entry date is changed from first of month following the date of hire to the date of hire.
(Adoption Agreement Section C.)
>Adds penalty for persons who make false, fraudulent or misleading statements in order
to receive disability benefits.
(Plan Document Article 21)
>Specifically identifies other forms of benefit options
(Plan Document Article 10. A.)
>Provides for certain diseases to be presumed to be suffered in the line of duty.
(Plan Document Article 8.01 8. & C.)
>Clarifies situations regarding when participants receive disability benefits along with
workers compensation payments.
(Plan Document Article 8.06)