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HomeMy WebLinkAboutCity Council Committees - Fireman's Relief and Pension Board - 07/03/1996 i Firemen' s Relief & Pension Board July 3 , 1996 i Present: Boardmembers Berg, Johnson, Jacober and Grubbs Others: Laurie Murray and Karen Steffen The meeting was called to order at 4 : 00 p.m. by Chief Berg. Approval of Minutes. Johnson moved to approve the minutes of the meeting of June 5, 1996. Grubbs seconded and the motion carried. Approval of Financial Transactions. Murray outlined the documents which were provided with the agenda prior to this meeting, noting that they fall in line with the norm. Grubbs moved to accept the May financial transactions. Johnson seconded and the motion carried. FFCB Figure. In response to a question brought up at the last meeting on the FFCB figure, Murray explained that that investment was purchased at a premium to achieve a better coupon rate. She said that the market value moves up more slowly, but is offset by the extra value in the investment. July 1st COLAs. Murray noted that only Celestine Bridge, Sidney Mickelson, Gale Randall, Robert See and Phyllis Simms will receive an increase. She pointed out that adjustments for overpayments were made and outlined the amounts to be paid monthly. Murray noted that the others will remain the same. Actuarial Study. Murray introduced Karen Steffen from Milliman & Robertson, who noted that since both pension and medical benefits were studied two years ago, only pension benefits were studied this time. She explained that the plan pays an excess benefit, which is the difference between what the old fire plan guaranteed to these members and what the state LEOFF is currently providing. She noted that between 1994 and 1996, the liabilities went from approximately $1, 700, 000 to approximately $2 , 300, 000. She added that in 1994, $129, 000 was paid out in medical and that $118 , 000 can be provided in medical at this time. She concluded that the fund covers all the pension and medical obligations. It was clarified that medical benefits are not covered for LEOFF 2 members. Steffen noted that Table 1 illustrates the value of all the future benefits, and Table 2 compares the value of the benefits to the assets and shows the fire insurance premium taxes . She noted that there have been changes in the GASB Accounting Standards and offered to work with John Hillman on this. Johnson moved to accept the actuarial study. Grubbs seconded and the motion carried. Adjournment. After noting that the next meeting will be held on Wednesday, August 7th, the meeting adjourned at 4 : 20 p.m. r Brenda Jacp�er City Clerk/Bpardmember