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HomeMy WebLinkAboutRetirement Committee - Minutes - 02/26/1988Pi `J • GENERAL EMPLOYEES RETIREMENT COMMITTEE MEETING MINUTES February 26, 1988 PRESENT: Angie Powell Mollie Mercer Deb McClurkin Dennis Sumner Pam Stultz Mike Powers Donna Groves ABSENT: Alan Krcmarik PAM STULTZ Previous to this meeting, Pam forwarded information regarding the Telecommunication Operators and pension options. Until 1975 the dispatchers were certified officers and participated in the police • pension. In 1978 the state FPPA plan came into effect and police dispatchers hired between 1978 and mid-1981 were members. In 1981 it was decided that dispatchers hired from that point forward should not participate in the FPPA, but rather participate in the General Employees Pension. In 1985 one dispatcher applied and was accepted for membership to the FPPA and later two more dispatchers were also accepted. Since that time the legal opinion of the FPPA was that dispatchers were borderline and that the decision to participate in FPPA would be left to the employer. Once the initial paperwork was completed, the FPPA requested that the City or the individual employees indemnify FPPA for service previous to the date of transfer to FPPA. The employees have declined and the alternatives were to have the individuals make requests to Social Security for amounts contributed. At a permanent rule -making hearing on October 15, 1987 the board chose to determine eligibility for membership on a case -by -case basis. There are now six individuals who have been members "in name" only of the FPPA while contributions were made for them to the General Employees Pension Plan and Social Security. It has been proposed to the G.E.R. committee that a transfer of those funds contributed in the names of the six individuals be transferred to the FPPA fund to make them whole. This amounts to $9,276.29 (see the attached memorandum.) Molly Mercer provided a motion that the transfer be made provided • waivers were signed by the individuals involved relinquishing their interest in the General Employees Pension Plan. Dennis Sumner asked if we would be covered legally at a later date in case it cones up. Mike Powers noted that only change would be if Social 11 • Security were to determine that they should have been under their plan then they would come back to us. Dennis then seconded the motion. The motion was passed with a unanimous vote. Employee Development will provide the waivers for the employees involved in this transfer. At this point Pam Stultz left the committee meeting. OLD BUSINESS Employee Benefits Brochure Molly Mercer provided copies of the brochure to committee members during January. Dennis Sumner noted several items he questioned. 1) Page 1, Paragraph 1 "Through the plan, the City sets aside money during the time you are working to provide a lifetime income for you after you retire." Not all options provide lifetime benefits it is proposed to change this to read "... you are working to provide an income for you..." 2) Page 5, DEFINITIONS - should these be rearranged in alphabetical order? It was determined that the order of the definitions followed their position in the first paragraph and no • changes should be made. 3) Page 6, Sentence 1 - "If you leave and then return to employment before a break in service occurs, you will get credit for your service before the break if you repay the fund within 12 months of rehire any amounts you received, plus interest." This applies to individuals who retire and then are rehired which has not happened yet. It is proposed to change this to read "...you will get credit for your prior service if you repay the fund within 12 months..." 4) Page 15, Table - the information pertaining to the asterisk, should this be represented as 469/0*. Molly clarified that even if a beneficiary did not exist, the payments would be made to the estate of the retiree. No change will be made. 5) Page 20 under Maximum Benefits "You will be notified if the maximum is ever applicable to you. It was decided that a footnote would clarify this stating the maximum amount. For example, 'In 1987 the maximum amount is $24,000.' A motion was made by Dennis to make the changes to items 1,3 and 5. The motion was seconded by Deb McClurkin and passed with a unanimous vote. • Questions There are several questions regarding the plan that should be directed to Don Mazanec. 0 Death benefit should not be limited to only a spouse, but include an estate. Is it time to give a cost of living raise to current retirees. As Federal laws change regarding pension benefits, who keeps us apprised, for example, the rights of x-spouses regarding retirement benefits. It was decided that Donna Groves would list the questions and work with Employee Development to address these to Don Mazanec. Investment Report The question of zero interest on the FHLB Discount Note was brought up. Angie will contact Gwyn Strand for an explanation and respond to the committee. NEW BUSINESS • Vice Chairperson Angie asked for input regarding the necessity of having a Vice Chairperson. There may be a time when the Chairperson cannot be present at a meeting and rather than cancel the meeting it would be more beneficial to have a Vice Chairperson conduct the regular meeting. Molly Mercer noted that it would be worthwhile if the Vice Chairperson were in line for the Chairperson position. It was determined that the term of the Chairperson would be two years. Angie Powel motioned that Dennis Sumner assume the responsibility of Vice Chairperson and Deb McClurkin seconded the motion. The motion was passed after a unanimous vote. Next Meeting The General Employees Retirement Committee will meet at 1:30 on May 16 in the Finance Conference Room. Prior to the meeting, questions will be directed to Don Mazanec. pp e - Angie Powell, Chairperson •