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07-18-1980 Regular Meeting1 Mi.4111i Sftores Vi�71 quo PENSION BOARD MEETING July 18, 1980 A meeting of the Miami Shores Pension Board was held on Friday, July 18, 1980, 8:00 a.m. in the Village Hall Council Chambers, with the following Board memebers in attendance: Mayor Henry A. Everett Councilman Herbert Spahn Mr. John McCoy Mr. Joseph Gionfriddo Mr. 0. Sam Ackley, Village Manager Miss Ann Vigneron, employee representative Absent: John Fletcher, Police Chief Also present: Mr. Sri Balgobin, Pension Administrator Mr. Wally Wilson, Wyatt Co. actuary Mr. Walter Wrase, First State Bank Trust Officer The meeting was called to order by Mayor Everett. Minutes of the meeting of March 20, 1980, were amended under paragraph (1) by adding L'monthly" to, the`: $10.;00 ,mi ni�mum ' , and approved as amended by motion made by Mr. Spahn, seconded by Ann Vigneron and passed unanimously. (1) ORDINANCE INCREASING BENEFITS TO RETIREES. An ordinance was presented, prepared by the Wyatt Company, to increase the benefits to retirees by 1/4% for each month since their benefits were commended but no earlier than October 1, 1975, with a maximum increase of 10%. The additional cost of this proposal on a 30 year funding basis is $4,966.00 per year beginning January 1, 1981, as computed by the Wyatt Co.' Mr. Ackley moved that the ordinance be forwarded to Council with the recommenda- tion of the Board. The motion was seconded by Mr. McCoy and passed unanimously. It was further noted that this ordinance increasing benefits must be approved by the State before it is presented to the Council for adoption. (2) STATE CLAIM FOR FIRE DEPT. SETTLEMENT. The Board was informed that the State is again pressing for settle- ment of their claim for moneys due them in the transfer of our Fire personnel to Metro. The State did not accept a previous offer made by the Village Attorney. The Wyatt Co. advised that a compromise offer be made. After further discussion, reconsideration of the State's claim was denied by motion made by Ann Vigneron, seconded by Mr. Ackley and passed unanimously. (3) PLAN FUNDING TO BE MADE IN DECEMBER OF EACH YEAR. Because of a new State law Mr. Wally Wilson advised that the schedule for funding the plan would have to be changed. The Finance Director accepted the annual funding as opposed to quarterly funding which requires that the full amount of the required payment be made in the first quarter of the fiscal year, to comply with the State law. 1 7/18/80 -2- VILLAGE MANAGER'S REQUEST TO PARTICIPATE IN THE ICMA RETIREMENT CORPORATION. Mr. Ackley requested that he be permitted to withdraw from the Miami Shores Village pension plan and that the Village fund his participation in the ICMA Retirement Plan. The Village Attorney had previously advised that the choice to select another plan could be offered to those appointed by Council, ie. Village Manager, Village Clerk and Village Attorney. Mr. Wilson advised that this would not have any real effect on the Plan. Mr. McCoy asked for a written opinion from the City Attorney and draft of an ordinance for this purpose, and that action be deferred until these documents are received. JUSTIFICATION OF 3% INTEREST. Sri Balgobin, Pension Administrator, asked for a justification of the 3% interest that is earned on employee contributions. Mr. Wilson explained that this interest is not taxable until the employee leaves the city and withdraws his money as opposed to interest in a bank account. Mr. Ackley moved that the 3% interest be left as is and that it be explained under Item 9. of the agenda, publication of pension information. The motion was seconded by Mr. Spahn and passed unanimously. DISCUSSION OF VESTING. P.B.A. A request was made by the Police Dept. to change the vesting require- ments of the Plan, to permit vesting in less than 20 years as now required. Comparison figures of other plans were requested for further discussion. QUARTERLY REPORT OF ASSETS. It was noted that there was a $,4ZZ yield. Mr. Wrase, representing the trust company, explained that the plan had made some recovery over the last three months. Following discussion Mr. Ackley moved that we put up to 50% in securities and 50% in fixed investments. The motion was seconded by Mr. Spahn and passed unanimously. PENSION INFORMATION FOR EMPLOYEES. It was requested that a summary be made from the actuary's report of the benefits and requirements of the plan for distribution to the employees. PUTTING CAP ON BREAK IN SERVICE. The Pension Administrator requested that the Board define breaks in service. After discussion Mr. Ackley moved that we place a 12 month cap on any break in service except for those breaks related to mandatory miliary service and authorize the Village Attorney to prepare an ordinance for this 12 month cap on break in service, excluding military service. The motion was seconded by Mr. Spahn and passed unanimously. 1 • 7/18/80 -3- MEETING PLACE AND TIME. There was a consensus of opinion that the Board meetings should be held as a breakfast meeting at 8:00 a.m. MONEY MANAGEMENT FIRM. The Board was asked to discuss a proposal to direct the First State Bank to hire a money management firm. Mr. Wrase discussed this proposal on behalf of the Bank and did not recommend it. No action was taken by the Board. The meeting adjourned at 9:20 a.m. 7ip*i Ann Vi gnergyf, Secretary