Loading...
HomeMy WebLinkAboutMinutes_Pension Public Safety_4/12/2018 TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND SPECIAL BOARD MEETING MINUTES APRIL 12, 2018 CALL TO ORDER The Regular Quarterly Board Meeting of the Tequesta Public Safety Officers' Pension Trust Fund Board of Trustees was held at the Village Hall Council Chambers, 345 Tequesta Drive, Tequesta, Florida, on April 12, 2018. The meeting was called to order at 9:30 a.m. ROLL CALL A roll call was taken by Pension Administrator Kerry Dutton. In attendance at the meeting were: Chairman Ed Sabin, Secretary John Terzakis, Board Member Kyle Stone, Board Member Ray Giblin and Board Member Ray Korkowski. Also in attendance were Attorney Bonni Jensen, Pension Administrator Kerry Dutton, Finance Director Chris Quirk and Village Employee Michelle Gload. PUBLIC COMMENT There was no public comment at this time. NEW BUSINESS 1. Calculation Request to Determine 185 Eligibility — Bonni Jensen, Klausner, Kaufman, Jensen & Levinson Ms. Jensen reviewed the cost of the 4 to 5 calculations that are needed in order to determine the cost and eligibility if the 185 monies. She stated there is 11 police officers that are eligible to re-enter the plan. She confirmed the members are to make their final election to re-enter the plan or not on June 1, 2018. She reviewed the details on the calculations needed as follows: 1. 10/1/2017 Baseline results 2. Reopen the DB Plan to police officers currently covered under the Village 401(a) Plan as detailed in the agreed upon CBA. The DB Plan benefit will be based on a 2.00% benefit multiplier for years 1 — 3, a 2.35% benefit multiplier for years 4 — 6 and a 2.75% benefit multiplier for year 7 and after. Credited service in the DB Plan will not be applied retroactively for these officers and will start with the effective date of the plan change. 3. Same as #2 with a 2.75% multiplier for all years of service starting with the effective date of the plan change. 4. Reopen the DB Plan to police officers currently covered under the Village 401(a) Plan. The DB Plan benefit will be based on a 2.75% benefit multiplier for both future service and prior service. We will reflect that the 401(a) balances for these officers will be transferred into the DB Plan. Under this scenario the Plan will be eligible to receive future 185 money which will be used to reduce the Village required contribution. 5. Same as #4 but assume the Plan will receive prior Chapter 185 money. She explained the first and second calculations follow the current CBA however it doesn't allow for the 185 money. She stated there has never been another plan to re-enter in to the 185 money however there is another plan that is in process of doing so. Ms. Jensen stated the other calculations are needed to allow for the Village and Union to make an informed decision on the past. Chairman Sabin gave a brief analysis of the differences between a defined benefit plan and a defined contribution plan. There was a discussion on the additional 401 member contributions that would be above what is required to be paid to the pension plan upon re-entry. Chairman Sabin requested the fifth calculation reference the specification that the 185 money has not yet been received. Ms. Jensen suggested the addition of a sixth column that would show the $333,000 used to offset the Village's contributions if members were to be added with service credit retro back to their hire date. Ms. Jensen reviewed the process that will take place once all of the calculations have been completed. She also noted that a draft ordinance will need to be completed and adopted once all parties involved come to an agreeance. MOTION: Board Member Korkowski made a motion to authorize the calculations one through five which is to include a footnote on prior unused reserved funds of $333,000 to be subjected to bargaining. Board Member Terzakis seconded the motion, which carried by unanimous 5-0 vote. ANY OTHER MATTER Board Member Giblin questioned the treated of a specific DROP entry date and the effect on the DROP deposits. Ms. Jensen reviewed the specific language on the first DROP deposit or first pension payment in respect to the DROP/Retirement dates. Board Member Giblin requested clarification on if the supplemental benefit is pro-rated form the member selected retirement date. Ms. Jensen confirmed the need to look into this detail and return with clarification. Board Member Korkowski requested clarification on the final average salary calculations. Ms, Jensen reviewed the process for sick and vacation hours. She explained the pensionable hours are capped at the time of retirement up to the hours held by the member back in 2014. ADJOURNMENT There being no further business, the meeting was adjourned at 9:49 a.m. Res ectfully submitted, Board Member Village of Tequesta Public Safety Officers' Pension Plan