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HomeMy WebLinkAboutCity Council Committees - Fireman's Relief and Pension Board - 08/03/1993 Firemen ' s Relief & Pension Board August 3 , 1993 Present: Boardmembers: Mayor Kelleher, Councilmember Houser, Assis- tant Fire Chief Berg, Retired Firefighter Tilley, City Clerk Jacober Others: Acting Finance Director Miller, Chief Administrative Officer McCarthy, Assistant City Attorney Haenel, Alternate Boardmember Grenstad, Field Auditor Huntington, Council- member Orr Approval of. Mihutes . Tilley moved that the minutes of the last meet- ing be accepted as written. Houser seconded and the motion carried. Survey of How Other Cities Handle Board Business . Berg noted that he had called other cities and he distributed the results of his survey. He noted that three cities have by-laws and standard operating proce- dures and that copies had been requested but haver.not been received. Haenel noted that the Board in Auburn meets once a year and that Renton and Tukwila meet monthly. He added that none use resolutions and that all actions are verbal and informal . It was decided to delay action on this item until receipt of information from other cities . I Report on Revised Retirement Payment Calculations. Miller reported on how calculations were done , noting that for Mr . Tilley the 5% interest amount lso $141. 10. Tilley stated that it was his understand- ing that a flat 5% would be added to whatever was owing, rather than using a complicated formula. He noted that the difference between Finance' s calculations and his amounts to $19 . 39 . McCarthy noted that the formula used by Finance is not complicated and is an existing formula on the computer. Haenel pointed out that there is no legal obligation to pay 5% . Berg noted that the way this is calculated could make quite a difference to people who have been retired for a number of years . McCarthy said he felt the interest should be computed back over the years and that a flat 5% is not fair to people who have been retired a long time. Houser suggested not taking action until the amount owed is calculated both ways so that the difference can be determined. The Mayor agreed. Tilley pointed out that the City has done a good job in calculating the base amount due, and it is just the interest he is concerned with. McCarthy opined that a flat 5% would be the correct way to calculate a penalty, but not interest. Upon Haenel ' s suggestion, it was decided to pay Tilley the base amount owed him now, and to pay the interest at a later date. Approval of Payment and Investments Since December 18 , 1989 . Miller explained the figures on the material which was distributed with the agenda regarding the payments and investments since the last Board meeting in 1989 . There were no concerns or alternate suggestions regarding this issue and Tilley moved to accept the payments and investments since December 18 , 1989 . Berg seconded and the motion carried. I August 3 , 1993 Page Two Other Business . Tilley proposed that an actuarial study be done, not- ing that it was last done in 1989 . There were no objections and it was so ordered. Miller suggested using the same company other cities in the area use, since they already have formulas set up. Tilley agreed. Tilley noted that at the last meeting it was not determined which Firefighter Boardmember would serve a one year term and which would serve a two year term. He said he would like to serve a one year term. Berg agreed to serve for two years. There was no objection. Tilley pointed out that Section 41. 18 . 104 relates to an annual increase for firefighters who retired with a non-duty disability. He said that such persons are not entitled to an escalator clause, but do receive cost of living increases . He noted that the Board is to meet between March and June of each year to calculate the cost of living and make a timely adjustment, and pointed out that the City has missed that review period this year. He noted that the statute states that these people will be given a minimum increase of 2% . It was clarified that this is as of January for the previous year. Upon Haenel ' s suggestion, Tilley moved to adopt the increase effective as of July 1, 1993 , sub- ject to agreement on the exact figure : Berg seconded and the motion carried. Tilley reiterated that the calculations need to be done for the twelve retired members and spouses . He noted that the City has not paid the additional benefits until April when LEOFF kicks in, and the law says it is to be done whenever there is a difference in pay, which is in January. Haenel said that a cutoff date must be established and the appropriate time would be either the time of the last meeting (1989) or three years , since that it the statute of limitations for fraud. He added that the only other statue of limitations that would apply would be a contractual statute of limitations which is six years . Mayor Kelleher asked Miller to stay after the meeting to determine what information is to be brought back to the next meeting. There were no other items to discuss and the meeting adjourned at 5: 55 p.m. X2 Brenda Jacober,/ City Clerk Board Secretar i