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HomeMy WebLinkAboutCity Council Committees - Fireman's Relief and Pension Board - 04/05/1994Firemen's Relief and Pension Board April 5, 1994 5:00 p.m. Present: Boardmembers: Tilley, Johnson, Jacober Others: Leo Higgins, Finance Division Manager Miller, Internal Auditor Huntington, City Attorney Lubovich, Operations Director McFall Approval of Minutes Tilley moved to approve the minutes of March 1, 1994, as written. Jacober seconded and the motion carried. Approval of Financial Transactions Miller distributed copies of a balance sheet as of February 28, 1994, an income statement, a schedule of cash and investment transactions, and a listing of who checks were issued to. Tilley moved to accept,_Jacober seconded and the motion carried. Report on Line -of -Duty Disability Benefits Miller noted that a letter was sent to the Internal Revenue Service asking for a determination on this issue, and distributed copies to all. Tilley moved to make the letter a part of the record. Jacober seconded and the motion carried. Huntington explained for Tilley that the letter requests clarification as to whether duty disabled benefits for the first six months qualify under Washington's Worker's Compensation statute, and said he would like IRS approval in order to avoid liability to the City. Tilley stated that prior to 1985 the state law lumped people who had disabilities incurred in the line of duty with those who had disabilities not incurred in the line of duty. He noted that the LEOFF law was amended in 1985 separating the two types of disa- bilities. He said that the IRS was petitioned to see if that now qualifies as a Worker's Compensation statute, and that it has been approved since 1985. He added that any disability incurred in the line of duty is tax exempt, and there is no need for 1099 forms. He explained that this is not a money issue for the retirees, but a problem in that they have to report it on their income tax and then attach a letter saying it is under Worker's Compensation making it tax exempt. Tilley pointed out that every retiree must declare whether he is retiring in the line of duty or not, so Payroll knows immediately what type of retirement it is and whether or not it is tax exempt. He said the issue could be resolved by simply not issuing W21s or 1099's. Tilley pointed out that the Firemen's Relief & Pension Board has the authority to do whatever is necessary to run the system. He moved that the Payroll Department no longer issue 1099 forms, W2 forms, W4P's or any other tax related documents to retired firefighters who retired with a disability that occurred in the line of duty. McFall pointed out that this Board cannot direct 1 April 5, 1994 city staff to violate IRS rulings, and that the city is attempting to get an IRS ruling. Tilley noted that he has supplied IRS rulings. Lubovich recommended that the Board wait for an answer from the IRS. Miller.noted that an answer is expected within two weeks, and Tilley withdrew his motion. Report on Status of Actuarial Study Miller reported that Robertson & Milliman have begun gathering information and that she will keep the Board informed of their progress. Report on orndorff Deduction Tilley noted that the Board has previously determined that 50% of Darrel Orndorff's check should be deducted and applied to the amount he owes the City due to an overpayment, but that someone decided arbitrarily to take 1000. Lubovich noted that orndorff has been contacted and has agreed with the payment of 100% even though he does not feel he was overpaid. Miller explained for Tilley that Orndorff was inadvertently overpaid when he changed his type of disability. Tilley stated that it must be determined whether the overpayment was made from funds from LEOFF 1 or whether he was overpaid out of the pre-LEOFF system which this Board controls, noting that if he was paid out of LEOFF 1 funds, that Board should collect it. Miller agreed to research this issue. Tilley stated that it is important to follow the guide- lines of the Board, which are legal and binding. He said the city cannot change the Board's decision simply by calling orndorff and making other arrangements. Jacober agreed to research the Board's direction regarding the amount of the deduction. OTHER BUSINESS 1. Tilley noted that Leo Higgins feels he has been underpaid by an amount exceeding $800. Higgins explained that the status of his children has changed and that he is due $217.65 per month starting last December, for a total of $870.60. He added that this is due to a lack of communication between LEOFF and the City. Miller stated that she will research when and how official notice is determined. Tilley noted that in May of each year the State notifies the City of the amounts to be paid each person. 2. Tilley noted that many retired members have contacted him asking for an outside organization to help get some issues resolved. He said that the Retired Firefighters of Washington had been contacted and he distributed copies of a letter outlining the issues and concerns. Tilley moved that the letter from the Retired Firefighters of Washington be 2 April 5, 1994 made a part of the record. Jacober seconded and the motion carried. There was no further business to come before the Board and the meeting adjourned at 5:35 p.m. CLGB �it'it� Brenda Jac er, CMC City Cler 3