PB 05/18/2010 Minutes - Laserfiche WebLink

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Police/Fire Pension Board Meeting May 18, 2010 Page 3 MOTION: Moved by Daniel Glancy to approve the Expenditure Report except for an invoice from Florida Municipal Insurance Trust in the amount of $147.46 for Waiver of Recourse rider & have City pay this insurance direct in the future & reimburse the TOFF pension plan. Motion was seconded by Harold Stewart and carried unanimously by a 5-0 voice vote. 7. Approval of Return of Member Contributions In a letter dated May 18, 2010 from Randy Newlon, Finance Director, the following individuals have terminated their employment with the City and have requested their individual contribution to the Police Officers' and Firefighters' Pension Plan be returned: ® Jeffrey Owen's — May 11, 2010 - $243.90 MOTION: Moved by William Nas to approve the Return of Contributions for Jeffrey Owens as presented in the letter dated May 18, 2010 from the Finance Director. Motion was seconded by Matt Ilettler and carried unanimously on a 5 — 0 voice vote. 8. Attorney's Report — Scott Christiansen Mr. Christiansen advised Board members that financial disclosure forms (form 1) from Board members need to be submitted to the Supervisor of Elections by July 1. There is a fine if not filed ultimately by September 1 of $25per day that the Board member is personally responsible for. There were approximately one dozen bills presented to the State legislature aimed at the reduction pension benefits or the cost to the provider. They included changes to the way average final compensation is calculated, liberalizing the way State money is used and extending key retirement dates out an additional five years. The only bill that passed was change to DROP plan in the Florida Retirement System (FRS). The change is that after July 1, 2010, a person will earn 3% return of their investment while in DROP down from 6.5%. The bill also increases the funding required to FRS. The current contribution rate with FRS is 21-22% of payroll with no additional funding required. Next year's contribution rate is planned to be over 29% of payroll. It has not yet been signed into law by the Governor. Mr. Christiansen was asked at the February 9, 2010 meeting to redraft the ordinance to include only IRS and other administrative changes and excluding pending benefit enhancements. He completed this request and sent the revised document to the City Manager, Ms. Lipscomb, The ordinance will be presented to the City Commission in June. The board will ask Mr. Christiansen to do an updated plan summary once passed for distribution to plan members. The Plan Summary must be adopted every 2 years and it was last done in November, 2007. A letter was sent mailed advising the Board of a proposed increase in fees. No one had the letter, so Mr. Christiansen explained to the Board the reason for the increase. The last time there was an increase was in 2007. Fees for Christiansen & Delmer will go from $290 per hour to $324.80 per hour for a 12% increase. It is also proposed to build in an annual incremental increase of 4% each year going forward all clients of Christiansen & Delmer are charged same rate. Chief Pavlis questioned at what time the contract can be terminated and Mr. Christiansen answered that the agreement between the Police/Fire Pension Board and Christiansen & Delmer can be terminated at any time. Mr. Christiansen stressed that his travel time to come to board meetings is split between 3 organizations he represents in this area. The new rates will take effect July 1, 2010.