HomeMy WebLinkAbout1981-06-30 MinutesPOLICE PENSION MINUTES
June 30, 1981
Scott Linebaugh, Finance Director, informed the Board that according
to City Attorney Jim McCord the only thing the Police Pension Board could
act upon would be the widow's and children's benefits. He explained
that the other items listed on the summary sheet (attached) could not
be done until the fund was actuarially sound.
Mr. Linebaugh pointed out that the actuarial study indicated
$91,000 being paid in and $80,000 being paid out, thus the conclusion
that the fund is not actuarially sound. However, he stated that with
the new laws the revenues would be increased significantly, and the
fund should be actuarially sound within a couple of years. The city
will begin matching in 1982 with 3%.
Mr. Roberts stated that there are four widows currently receiving
money from the fund. Three of these would be raised to the minimum of
$250.00. However, there was some question about Mrs. McWhorter and the
amount she should receive. The Board asked Mr. Linebaugh to request
an opinion from the City Attorney on this.
Discussion was held on investments.: It was determined that the
bonds held by the Police Pension Board should remain until a time when
an undue loss would not be experienced. This was left up to the judgement
of the Finance Director. Also, Mr. Linebaugh told the Board that all the
investments were in compliance with State law except for these bonds.
A motion was made and carried that all investments since the last police
pension meeting to date be approved.
POLICE PENSION
1. Policemen pension and relief fund have the following additional income:
(a) Fines and forfeitures imposed upon member
(b) Donation
(c) Deductions from salary of member for absence or loss time
(d) All rewards paid
(e) 10% fines and forfeitures
(f) 6% monthly salary
2. Municipality shall;contribute per fire pension schedule
3. Financial report to be filed yearly including:
(a) Summary of benefits available to covered pension
(b) Total employer contributions
(c) Covered employee payroll
(d) Actual employer contribution percent
(e) Actuary's computed contribution percent
(f) Financial activities
(g) Investment return
(h) Results of most .recent actuarial evaluation
4. Funeral expenses not less than $100.00 not more than $2,000.00 may
be given if the Board adopts a policy.
5. Widow or child paid amount "equal to pension attached to the rank of such
deceased police officer at that time",but not "less than $250.00 per month."
Child under 18 shall be paid 5124.00 per month if he has not completed
high school or if full time in college, but not over 23 years old.
In no means shall exceed 1/2 of salary attached to rank at time of death.
6. Board may increase benefits not to exceed 50% of current benefits.
Pnactuarial evaluation must be obtained stating fund will continue to be
actuarily sound.
A copy of Board resolution and actuarial evaluation must be filed with
state auditor and approved before issuance.
Copy of above plus approval by state auditor must be filed with county and
city clerk
7. Policemen may purchase credited service in the system for a period of not
to exceed two years for service in armed forces. He must contribute sum of
money equal to amount he would have contributed had he been a member during
military servicebased upon monthly contribution at the time he first became
member of the retirement system and interest at 6%. He must contribute
amount equal to employer match and interest. He must also participate in
pension for 20 years.
8. Pension fund will receive 66 2/3 foreign insurance premiums received by
state on motor vehicles
Needed Action:
A. Increase widows and children benefit to 5250.00/month and 5125.00/month
respectively