HomeMy WebLinkAboutCity Council Committees - Fireman's Relief and Pension Board - 08/02/1994 (3)August 2, 1994
Present: Boardmembers White, Johnson, Tilley, Grenstad and
Jacober, City Attorney Lubovich, Finance Manager Miller, Laurie
Murray, Don Fronsdahl and James Snail
Mayor White called the meeting to order at 5:00 p.m.
Election. It was announced that Gary Tilley has been re-elected to
the Board for a two-year term.
Minutes. Approval of the minutes of the May 10, 1994, meeting was
deferred until the next meeting.
Approval of Financial Transactions. Laurie Murray of the Finance
Division distributed information including a financial statement
for April, May and June, a balance sheet, details of investments,
an income statement, and revenues and expenditures. Tilley moved
to accept the report. Johnson seconded and the motion carried.
Report on Line -of -Duty Disabilities. Laurie Murray provided copies
of a letter from Alton White of the IRS which determines that
disability leave and disability supplemental payments are taxable
for income tax and social service, whether duty or non -duty
related. She recommended obtaining a formal determination from the
national office in regard to the taxability of the disability
leave, which will cost $250.00. Tilley stated that the District
Director's opinion conflicts with this determination and moved to
authorize payment of $250.00 from the Firemen's Relief & Pension
Fund to obtain a formal determination from the national office.
Grenstad seconded and the motion carried.
Report on Higgins Underpayment. Murray noted that the LEOFF Board
sent a new comparison going back to June 1991 and distributed
copies. She noted that retro adjustments had been made because of
children in school, and because some children were no longer
eligible, and that the net result is that Higgins is owed $704.89.
She recommended adding that to the next payroll, and changing his
benefits to the current amount, which is $125.98 per month. Tilley
moved to accept the recalculations and to pay Leo Higgins $704.89.
Johnson seconded and the motion carried.
Report on Underpayment of Pension Benefits. Murray distributed
copies of the comparison of benefits as of April 1, 1994, which
takes into consideration the consumer price index. She noted that
the allowances went down, with the exception of Leo Higgins,
because the fire union contract is not settled, and that after it
is) amounts will go back up. She outlined options as follows:
1) leave benefits as is, with the exception of Leo Higgins, and
when the union settles, recalculate all retroactive to January 1,
or 2) reduce the amounts to the new benefit, which are all less
except for Higgins, and adjust them again when the union settles.
Tilley noted that these figures do indeed fluctuate and that all
have been overpaid in April, May, June, and July. He moved to
recalculate the month of August and leave the retroactive pay from
April to July until the union settles, and then recalculate.
Grenstad seconded and the motion carried.
Copies of a letter from Mary Berg regarding records which would
help in the determination of any benefits, and suggesting that a
CPA be hired to determine the amounts owing, were distributed.
Murray noted that Berg had suggested paying for the CPA from the
Firemen's Relief & Pension Fund. She explained that staff would be
used only to show the CPA where the records are. Miller pointed
out that they do not yet have the records, and Murray noted that
Berg has indicated he has found records dating back to 1970.
Johnson moved to accept Berg's recommendation to hire an outside
CPA and/or accountant, Jacober seconded and the motion carried.
Don Fronsdahl asked whether there will be a timeline on hiring a
CPA, since it has already been 90 days. It was determined that May
Miller will be in charge of hiring someone, and she agreed to
report back at the next meeting as to the time frame. Murray added
that a report will also be made as to what records are available.
Report on Orndorff Deduction. Murray distributed copies of a new
comparison of benefits received from the LEOFF Retirement System
and noted that there had been a mistake on the monthly retirement
allowance they had reported to the city. She stated that the
$43.12 which the city was paying prior to April 1994 was correct,
and starting April 1, 1994, the retirement allowance is zero. She
noted that Orndorff had been overpaid $1,517.72, and that he is now
left with a balance of $1,194.32. She pointed out that since the
retirement allowance is zero, nothing can be withheld. She asked
how the Board wants to handle the balance of $1,194.32, and the
Board decided to let it ride. It was clarified that due to the
action taken at this meeting, Orndorff will no longer have any
money coming, and that when the union contract is settled and there
is a positive cash flow, the 50% deduction will be reinstituted to
pay the balance. Murray noted that nothing has been paid in since
April 1993 and that she will rectify that on this payroll.
Actuarial Study. Miller noted for Tilley that the firm recently
hired is working on the actuarial study and that she will report on
their progress at the next meeting. She also agreed to provide the
date that the firm was hired and a time when the study will be
completed.
There was no further business and the meeting adjourned at
5:25 p.m.
Gc,G
Brenda Jac er, CMC
City Cler
2