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06-30-2000 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 • • 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. 11:30 a.m. ~~