TOWN OF I N D I A L A N T I C
Brevard County, Florida 32903
PENSION BOARD OF TRUSTEES

MINUTES 98-3

April 22, 1998, 10:00 A.M. Town Hall

PRESENT:

Alan Coburn, Chairman
Eugene Terkoski, Member
Richard Bailey, Member
Cpl. Kelly Sanders, Police Member
Capt. Dennis Greehy, Fire Member
Shirlee Walker, Secretary

I. CALL TO ORDER

Chairman Coburn called the meeting to order at 10:00 a.m.

II. APPROVAL OF MINUTES NO. 98-2

Mr. Terkoski moved to approve minutes from January 20, 1998 as written. Mr. Bailey seconded. Motion passed unanimously.

III. REPORT FROM AL GLOVER

Mr. Glover reported that as of April 21, 1998, the amount of interest accrued was $79,392. The portfolio is still at 60/40%. He recommended that in the future investments be made to C type Funds which have no fees or penalties for withdrawal.

Mr. Terkoski moved to invest $100,000 into the C type Mutual Fund and maintain a 60/40 balance. Capt. Greehy seconded. Motion passed unanimously.

IV. WARD FOSTER

A. Approval of 96/97 Actuarial Valuation

Mr. Foster presented the actuarial report and answered questions from the Board.

Mr. Greehy moved to accept the Actuarial Valuation. Mr. Terkoski seconded. Motion carried unanimously.


B. Discussion of Special Actuarial Analysis

Town Manager Lynch advised that he would like to earmark some of the revenue from a proposed telecommunication tax to increase benefits in the Town's two retirement plans. Based on a special analysis by Foster & Foster, he will be recommending that the multiplier for the Police/Fire Pension be increased to 3% and that payments for service incurred disabilities be increased to not less than 50% of average monthly earnings. He will propose this to the Town Council. It will take about 9 months to put the tax in place. He noted that there would be no change in employee contributions.

Mr. Terkoski moved that the Board support the position of the Town Manager in his effort to increase the benefit rate from a 2% to a 3% multiplier subject to availability of funds and to increase disability payments from 42% to 50% with no change in employee contribution. Mr. Coburn seconded. Motion passed unanimously.


C. Discussion of Pension Plan amendment regarding tax deferred employee contributions

The Board discussed, with input from Mr. Foster, the options available to make employee contributions tax deferred. Mr. Foster advised that the ordinance would have to be amended to accomplish this.

The Board requested that Mr. Foster draft the necessary wording to present to the Town Council.

V. OTHER

A. Request from Officer Baker to receive credit for interrupted employment with the Town

The Board reviewed a request from Officer Baker to receive credit for previous years of employment with the Town.

It was noted that the current ordinance defines credited service as continuous service and that in some instances there may be a breach of service as in the case of Officer Baker. It was also noted that Officer Baker received a refund of his contributions when he left the Town's employment.

Mr. Terkoski moved to amend the ordinance to allow an employee to repay his original contribution plus 8% interest per year and to receive credit for prior service of up to five years. Mr. Bailey seconded. Motion carried unanimously.

Mr. Foster was requested to draft the necessary wording.

VI. ADJOURNMENT

Chairman Coburn adjourned the meeting at 11:35 a.m.

Alan Coburn, Chairman

Shirlee Walker, Secretary