HomeMy WebLinkAbout1984-09-25 MinutesMINUTES OF A POLICE PENSION FUND BOARD MEETING
A meeting of the Police Pension Board was held on Vednesday, September
25, 1984 in Roan 313 of City Hall.
PRESENT: Pension Board Members Don Grimes, Scott Linebaugh,
Lt. Eldon Roberts, Sgt. Rick Hoyt, Sgt. Mike Mitchell,
Hollis Spencer
CALL TO ORDER
The meeting was called to order by Don Grimes at 4:00 P.M.
APPROVAL OF MINUTES
The Board reviewed and approved the minutes of the May 2, 1985 meeting,
with the following corrections and changes:
Page 4 - Change In Membership of Board
(1) Line 6 which reads "Four police officers to be elected by
members of the Board. . ." should read "Four police officers
to be elected by members of the Police Department . . ."
(2) Line 8 which reads "A physician to be elected by the chief
executive officer and Finance Director" should read "A physician
to be elected by the Board."
(3) The last line in this section which states: "Roberts pointed
out that this law would eliminate Dan Epperley's position"
should also indicate that Ron Bumpass' position is also
eliminated.
ADDITIONAL $5 PER MONTH: GENE -PHILLIPS
The Board considered Gene Phillips request that he be paid $5.00 per
month for one year extra service retroactive to his retirement date
of May, 1985. With no discussion on this matter, Sgt. Hoyt, seconded
by Lt. Roberts, made the following motion:
That the Board grant Gene Phillips the additional $5.00
per month for the extra year of service retroactive to his
retirement date of May, 1985. The motion passed unanimously.
PENSION FUND RECIPIENTS LIST
The Board reviewed the list of present Pension Fund recipients. It
being the consensus of the Board, the following motion was made .by
Lt. Roberts, seconded by Sgt. Mitchell, and passed unanimously:
That the Board accepts the pension list.
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Police Pension Fund Board
September 25, 1985
Page 2
REPORT OF PENSION FUND ASSETS
The Board considered the report of Pension Fund Assets.
Finance Director Scott Linebaugh noted this is a statement as of August
31 and shows the total investments at that time.
Mr. Grimes stated that according to his calculations, if this statement
represents 2/3 of a year and adding another 1/3 of a year based on
the $359,253 fund total, after deducting expenses, it appears we are
accumulating funds at the rate of about $338,000 per year. Linebaugh
concurred with this.
Linebaugh pointed out that we just got more money than we anticipated
getting in Municipal Court, not because the judge is collecting more
but because of a split -out that has been made in the computer system.
Grimes asked whether the pension share comes out of the court cost.
Linebaugh answered affirmatively.
Sgt. Hoyt, seconded by Lt. Roberts, made a motion that the
report on Pension Fund Assets be accepted. The motion passed
unanimously.
PENSION FUND INVESTMENTS
The Board considered for approval two schedules of Police Pension
investments.
Finance Director Linebaugh pointed out that the schedules show all
investments made from January to September 19, 1985, but the only
ones the Board needs to act on are the ones dated from May 1st to
now because the last Pension Board meeting was held in May. Linebaugh
stated that these investments are made following the policy that the
"old Pension Board" passed which includes investing in treasuries,
savings and loans, and banks, depending on which one bids the highest
interest rates.
Linebaugh also noted that the Pension Fund now has the potential to
earn more because it can now go into more different types of investments.
He suggested that the Board look into investing with money managers
or federal government pools. The federal government pools do not
charge a fee as they are invested through a bank and would earn higher
interest than we get on some of the local banks. Linebaugh went on
to explain the investment process and concluded that all investments
are backed by the Government.
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Police Pension Fund Board
September 25, 1985
Page 3
Mr. Grimes noted that since all investments must be secured this becomes
a burden for the financial institutions. Linebaugh stated that the
Federal Deposit Insurance just covers the fund as a lump because it
secures only up to the vested amount. If a police officer leaves
before his 20th year, he will not receive anything frau the Police
Pension Fund except his own contribution. He is therefore not considered
as vested until that point.
Lt. Roberts noted that a law was passed stating an officer can get
out of police work at 10 years,leave his contributions in the fund,
and be vested and draw his retirement at the age of 55 if the fund
is actuarily sound.
Sgt. Mitchell addressed the Board about the use of money managers
and asked Linebaugh to elaborate on how these work. Linebaugh stated
you have to pay two different fees, one to the money manager and one
per transaction. This averages out to about 3 1/2% of the fund's
assets to the money manager. Linebaugh also stated that he could
set up interviews with some money managers for the Board. He also
noted that if we decide to use a money manager, the Board should diversify
and invest some money in treasury, some with banks and sane with a
money manager. Linebaugh then noted that the Board could go to a
Double A or Triple A insurance company and get a guaranteed interest
which would be a pretty safe investment.
After considerable discussion, and it being the consensus of the Board,
the following motion was made by Sgt. Hoyt, second by Lt Roberts,
and passed unanimously:
That the Board approves the investments made from May 1
to September 19, 1985 and that Finance Director Linebaugh
is directed to continue with the present policy on investing.
RE-ITRalENT CREDIT: JERRY SURLES
The Board%considered the request by Jerry Surles that he be given
credit for 17 months active duty time with the Washington County Sheriff's
Department without being required to pay any additional money into
the Pension Fund.
Linebaugh pointed out that at the April 22, 1983 meeting the Board
voted to adopt a resolution which would allow Washington County Sheriff's
Department time but would require the officer to make contributions
to the Police Pension Fund for that time used. The resolution also
stated that Washington County Sheriff's Dept. time would not be allowed
for new employees hired after September 1, 1979. He responded to
a question stating that City Attorney Jim McCord rendered an opinion
on the legality of this which stated it is completely within the rights
of the Board to do this.
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rilh
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Police Pension Fund Board
September 25, 1985
Page 4
After considerable discussion, and it being the consensus of the Board,
the following motion was made by Mr. Grimes, seconded by Mr. Linebaugh,
and unanimously passed:
That the Board will grant Mr. Surles retirement credit for
active duty time with the Washington County Sheriff's Department
if the additional money is paid into the Pension Bind at
6% of his present salary.
ACTUARIAL VALUATION REPORT
The Board reviewed the Actuarial Valuation Report. Linebaugh summarized
the report and it was agreed that the Board cannot grant additional
benefits until the fund is actuarily sound. Linebaugh also pointed
out that although the plan is not actuarily sound, that does not mean
that it is in trouble. With considerable discussion on this matter,
there was no action taken.
PENSION BDARD MEMBER: PHYSICIAN
The Board discussed appointing a physician to the Board as is required
by law and some members of the Board commented that Dr. James Mashburn,
who was a member of the "old Board" is very well qualified for this
position.
Hollis Spencer, seconded by Sgt. Hoyt, made a motion that
Dr. Mashburn be designated as a Board member. The motion
passed unanimously.
PENSION BDARD MEMBER: SECRETARY
As required by law, the Board must select one of the police members
as secretary of the Board to serve for a period of two (2) years,
as noted by Lt. Roberts.
A motion was made by Sgt. Hoyt and seconded by Mr. Spencer
that Lt. Eldon Roberts be designated as secretary to the
Police Pension Board. The motion passed unanimously.
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Police Pension Fund Board
September 25, 1985
Page 5
F01URE MEETINGS
The Board considered when would be a suitable time for future meetings.
Mr. Grimes pointed out that the minutes from the last meeting indicated.
a suggestion that the Board meet quarterly. After further discussion,
and with no objections expressed, it was the consensus of the Board
that future meetings will be held quarterly on Wednesday afternoon
at 4:00.
OTHER BUSINESS:
ELECTION PROCEDURE
Sgt. Hoyt stated that the Board at some time needs to address the
issue of haw to handle the nextelection of the police members. It
was suggested that ideas could be sent to an impartial party, such
as the Personnel Director and she could suggest some guidelines to
follow. Lt. Roberts suggested that the Board should have some election
rules and regulations in writing.
POLICY
Lt. Roberts reported that Chief Jones would like the Board to adopt
a policy stating that once a person presents a retirement application
to the Board, that the Board has to act on this application within
a certain amount of time.
A motion was made by Sgt. Hoyt and seconded by Lt. Roberts
that future retirement applications will be acted on within
30 days. The motion passed unanimously.
RETIRED OFFICER MEMBERSHIP
Lt. Roberts noted that the law does not clarify how the retired officer
is to be elected to the Board. He suggested that the retired officers
should be allowed to elect their awn member. Mr. Grimes stated that
he agreed with this as long as the retired members are active. Roberts
suggested the Board think about this issue and it be addressed at
the next meeting.
ADJOURNMENT
With no further
by Lt. Roberts,
at approximately
business, a. motion was made by Sgt. Hoyt, seconded
that the meeting be adjourned. Meeting adjourned
5:30 P.M.