HomeMy WebLinkAboutCity Council Committees - Fireman's Relief and Pension Board - 01/02/2013 1 KENT
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Firemen's Relief & Pension Board
January 2, 2013
Board Members Present: Suzette Cooke, Sam Grubbs, Al Bond, Les Thomas
Others Present: Paula Barry, Susanne Shaw, Mary Simmons
Mayor Cooke called the special meeting to order at 3:30 p.m., and introductions
were made.
Minutes of October 2 and November 5, 2012. Grubbs moved to approve the
minutes of October 2 and November 5, 2012. Bond seconded and the motion
carried.
Financial Transactions for September, October, November 2012. Barry gave
an overview of the financials and stated that the biggest impact to the revenue was
the higher than usual interest income from the investment that matured earlier in
the year. She noted that the fire tax premiums were down by 4%, and that
expenditures were up by about 5% as compared to the same period last year. She
also noted that pension distributions increased, but not reflected in those numbers
is the money that is coming back to the City from overpayment to the retirees.
Another expense impacting the increase in expenses was the actuarial study done
in 2012. An actuarial study is required every other year.
Grubbs moved to accept the financial transactions for September, October,
November 2012. Bond seconded and the motion carried.
Cost of Living Allowance. Barry said they had done a lot of research regarding
the 11 retiree pensions whose pension is directly related to the firefighter's salary.
According to the RCW the pensions related to those 11 retirees have no bearing on
the 2% CPI minimum. The 2% CPI minimum relates to the firefighters whose
salaries are not tied to the firefighter's salaries. She stated that all retirees have
been notified about the overpayment which was discovered during the 4th quarter
of 2012 as the firefighters salaries schedule changed twice during the year. She
has heard from all retirees who need to repay the overpayment with exception of
two. Barry explained how the City's portion of the calculation was determined.
Using the total of the firefighter's basic salary at the rank last held by the retiree
plus any longevity, the retiree receives either 50% to 60% of that depending on
their years of service. The amount the retiree already receives from LEOFF is
subtracted from the total pension calculated. The result is then the retiree's
monthly pension distribution. It is paid in equal installments twice during the
month. Barry mentioned that she found that Mickelson, whose pension is not
based on the firefighters salary schedule but instead CPI, received an increase
below the 2% minimum during 2010 and 2011. It looks as though he has been
underpaid by approximately $2,400. She will do further research and resolve this
issue. Barry stated that with the issues that have arisen as of late, there will be a
review of the Firefighters Pensions. There was discussion on a manual being done
on procedures for administering the firefighter's retirement plan.
Cost of Living Allowance for 2013. Barry stated that the CPI is 2.7% and
according to the union contract the firefighters will receive an additional 1%
increase, so a total of 3.7% increase in the firefighter's salary schedule. This will
be reflected in the January 1-15 retirement check. Mayor Cooke asked for
clarification that the firefighter's salaries were increased above the CPI in both 2012
and 2013. Barry stated that the 2011-2013 labor contract granted CPI plus the
0.5% for January 1, 2012 and then CPI plus 1% for 2013.
Other Business. There was no other business.
Adiournment. The meeting adjourned at 4:02 p.m.
Mary Simmons
Deputy City Clerk