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HomeMy WebLinkAbout12-01-2016 PBA MinutesCITY OF SEBASTIAN PBA— PENSION PLAN - DROP COLA BUY-BACK PROVISIONS MINUTES OF REGULAR MEETING December 1, 2016 Present: Ken Killgore, Administrative Services Director, City of Sebastian Cynthia Watson, Assistant Administrative Services Director/HR Manager, City of Sebastian Al Boettjer, PBA Union Representative Ken McDonough, Police Officer Union Representative Jason Mills, Police Officer Union Representative Greg Wise, Deputy Chief, Sebastian Police Department Richard Snell, Commander, Sebastian Police Department, Board Member of Police Pension A meeting between the City of Sebastian and the Police Officer Union Representatives for the PBA began at 2:01PM. Ken Killgore brought the meeting to order. Mr. Killgore mentioned that there were contract negotiations this year and part of the provisions of that contract was that we would pursue several benefit changes to the pension plan. The changes that were discussed were changing the factor to three percent for all employees, DROP Program, Buy -Back Program, and COLA increase. Mr. Killgore stated that he did research on various DROP programs from other cities. Discussion took place on these plans. His intention is that if we could reach an agreement that these are the things we would want incorporated in a change to the Pension Ordinance. A meeting is scheduled for December 13, 2016 with the Pension Board and I would introduce that to the Board and say that this is what w, the City, and the PBA have agreed to and they have to give their approval to pass it onto the City Council. Mr. Killgore stated that what he wanted to accomplish today was to review the items and discuss them for agreement or note if there is cause for concern. Mr. Mills asked about the DROP period. He wanted to know if the only way to shorten DROP was by termination or death. Does termination include resignation or early resignation? Mr. Killgore answered, "Yes, or termination for other reasons. You just no longer become an employee." Mr. Killgore stated you have to reach retirement age before you can enter into the DROP Program. Most DROP Programs have been 60 months. Discussion took place on the program having a minimum length of time for the officer to be in the program with a 60 month maximum. Discussion took place on the DROP Program. Mr. Killgore stated there is a Pension Board meeting on December 13, 2016 and if this is approved it could be taken to the Board where he would ask the Pension Board Attorney to put this in Ordinance form. Mr. Mills stated that he would like to find an investment plan that guarantees 3% which would be a sizable increase over 1.3%. Mr. Killgore was asking for names of companies like this and he would do a review. It was suggested to take a week and conduct some research. Mr. Killgore stated he would introduce it to the Pension Board. He mentioned the Pension Board's scheduling. They meet this month and then not for another three (3). He thought he might have to call a special meeting. Mr. Mills stated he would like to give it a week because they want to get this moving. Mr. Mills stated he would do a lot of research in the week and then put something together. Mr. Killgore stated the City would drop the "less than 24 months" if that is in the agreement. It was stated, by the end of the DROP period you can't exceed age 60 so you have to enter at age 55. Discussion took place on where and how to invest the funds and how DROP works. It was decided to research the DROP program from an administrative view as well as what the qualifiers would be and what would be included in the program. Once we have all the information, it will go to the attorney for review. Mr. Killgore discussed COLA. Mr. McDonough questioned the qualifications; minimum age of 62 and retired 60 months before COLA would take effect. Why were they the qualifications? Can they be anything else? Discussion took place on age and length of employment. Mr. Mills recommended saying something like you have to be with the City 20 years before you get a COLA instead of the 60 months. Mr. Killgore didn't state in the COLA a number of years of service. He stated that the Actuary stated that if the COLA was unguaranteed then on a yearly basis the Board would decide if a COLA would be given. Mr. Mills stated that other Agencies require so many years of service. Discussion took place regarding COLA. It was decided that Mr. Killgore would discuss COLA with Actuary. Mr. Mills was suggesting 15 years of service and age 58 to receive COLA. Mr. Killgore discussed the Buy -Back and if someone had four (4) years of military time with honorable service they could purchase those four (4) years of service after they have been with the City five (5) years. He stated that he found the qualifications in some of the plans he researched. The downside would be the cost to the member. Mr. McDonough didn't have a problem with the wording. Mr. Killgore stated the program is "pretty pricey" and when that five (5) years rolls around, they have to have the money. The funds are paid directly to the Pension Plan. They can also buy-back up to 4 years of another agency time. The employee can only buy-back a whole year at a time not less than one year. The person has to pay the full actuarial cost. Mr. Mills asked if there could be a payment plan. Discussion took place. Mr. Killgore stated he doesn't want to hold up the change in the 8% factor. I want to get it to 8% as fast as possible. He wants to take it to the Board on the 13th unless we get it all together before the 13`h. If it's not all together, then Mr. Killgore will still have the Ordinance started with the factor change. A meeting was scheduled for next Friday, December 9, 2016 at 10:00 AM. Mr. Killgore stated that he is adding information regarding any felony offense language and that would kill the DROP program. It was said that if a crime was committed by an officer while on duty then the officer retires and it is found out that the officer committed a felony while working, the officer would have to pay back all the funds from the date of the crime. However, if a crime is committed after retirement, then the officer keeps his pension. There were no public comments. The meeting ended at 3:45 PM.