HomeMy WebLinkAbout06-25-2012 Agenda CITY OF AUBURN
INTEROFFICE MEMORANDUM
TO: Fire Relief and Pension Board
Mayor Peter B. Lewis, Ghair
JoHn Partridge, Chair of Finance Committee
Shelley Coleman, Finance Director
Bill Petersen, Member
FROM: Danielle Daskam, City Clerk
DATE: June 20,2012
SUBJECT: Fire Relief and Pension Board Agenda for Monday, June 25, 2012
At 4:30 p.m. Council Conference Room,City Hall
FIRE REUEF AND PENSION BOARD
JUNE 25, 2012 4:30 PM
AGENDA
I. CALL TO ORDER
II. APPROVAL OF MINUTES
A. Minutes of the June 23, 2011 Fire Relief and Pension Board meeting'
(Recommendation: Board approve fhe June 23, 2011 minutes as
distributed.)
III. UNFINISHED BUSINESS
IV. NEW BUSINESS
A. Fire Relief and Pension Cost of Living Benefit Increase
(Recommendation: Boerd approve fhe inaease in the annual
pension beneFds to pension bene�ciaries.)
B. Approval of Claims
{Recommendetion: Board approve the 2011 expenses.)
C. Investment Authorization
(Recommendation: Boaid authorize ;he Treasurer of the City to
make such investments as may be appropriate from the Fire
Relief and Pension Fund.) ,
V. ADJOURNMENT
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Page 2
Fire Relief and Pension Board Agenda for Monday; June 25, 2012
Distribution List:
Peter B. Lewis, Mayor
John Partridge, City Council Finance Committee Chair
Shelley Coleman, FinanceDirector
Bill Petersen, Member
Dani Daskam, City Clerk
CITY OF AUBURN
FIRE RELIEF 8 PENSION BOARD
MINUTES
June 23, 2011
L Call to Order
Mayor Peter B. Lewis called the meeting to oMer at 3:00 p.m, in the Council
Conference Room located on the main floor of:Aubum City Hall: Fire Relief and
Pension Board Members present included Mayor Lewis, Member Bill Petersen,
and Finance Director Shelley Coleman. Also present was City Clerk Danielle
Daskam.
II. A�aroval of Minutes
Motion 6y Mem6e� Petersen, second by Director Coleman to approve the
October 18,2010 meeting minutes.
MOTION CARRIED UNANIMOUSLY. 3-0.
III. Unfinished Business
There was no item for review under this section.
IV. New Business
A. Fire Reliefand Pension Cost of Livina Benefit Increase
The Board reviewed a memo dated June 15, 2011 addressed to Finance
Director Coleman from Payroll and Accounts Payable Manager Janice
Davies regarding the.Fire Relief and _Pension benefd increase. The,City'§
cost of living adjustment (COLA), which 'is in effect January 1� consistent
with the Fire Fighters' contract, and compared wi4h 4he State's cost-of-
living increase in April. Any adjustrnents are then made in the April check.
RCW 41.18:102 mandates a proportionate increasebased on the previous
year CPI-U between January and becember 31 of the previous year. The
City applied a 5:0% COLA increase in 2009 and a 2.0% COLA increase in �
2010 consistent with the Fire Fighter collective bargaining agreement:
Motion by Member Petersen, sewnd by Finance Director Coleman to
approve the cost of living increases in annual pension benefits to pension
beneficiaries.
MOTION CARRIED UNANIMOUSLY: .3-0.
Fire Relief and Pension Board Minutes
June 23, 2011
Page 2
Director Coleman noted that in June 2011 all retirees and beneficiaries
were�sent affidavits reques4ing updated personal information. The City
requested that the affidavits be notar¢ed and retumed to the City by the
end of July. Six of the fourteen affidavits have been retumed to date.
B. A�proval of Claims
Board Members briefly reviewed fund expenses in the amourrt of
$143,147 for benefit payments, long term care insurance premiums for
Fire Relief and Pension Members, and administrative expenses. It was
noted that all medical expenses are paid out of the General Fund. The
total 2010 expenses paid from the Fire Relief and Pension Fund and the
General Fund are $318,496.
Motion by Member Petersen, second by Finance Director Coleman to
approve the 2010 expenses of the Fire Relief and Pension Fund.
MOTION CARRIED UNANIMOUSLY. 3=0.
C. Investment Authorization.
Board members briefly�eyiewed the fund assets which include $2,786,279
in cash and cash equivalents. Funds are invested in the Washington
State �Investrnent Pool, treasury notes and bonds, and the average
investrnent retum in 2010 was approximately ,26% down .44% from the
previous year.
Motion by Member Petersen, second by Finance Director Coleman to
authorize the Treasurerof 4he City of Aubum to make such investments as
may be appropriate from the Fire Relief and Pension Fund.
MOTION CARRIED UNANIMOUSLY. 3-0.
D. Actuarial Valuation
Milliman Consultants and Actuaries receiVed data in January 2011 to
_
prepare an actuarial valuation of the Firemen's Pension Fund. In their last
repart, Milliman concluded thaf the fund is fully funded. However, medical,
long-term care and other non-pension benefits will not be charged to this
fund effective January 1;2007 as there are no excess funds available for
these benefds.
E.. House Bill 2097
Member Petesen, commented on HB 2097, which was introduced in the
lasf legislative session. The bill would have joined the LEOFF I and
LEOFF II systems, The bill did not pa§s.
Fire Reliefand Pension Board Minutes
June 23, 2011
Page 3
V. Adioumment
There 6eing no further 6usiness to come before the Fire Relief and Pension
Board, the meeting adjoumed aY3:09 p.m.
Approved this day of , 2012. .
Peter B. Lewis, Mayor Danielle Daskam, Ciry Clerk
iaae�neorrrzo��mo�a�r�aP.doe
cmroF -��* * Interoffice Memorandum
�
" WASHINGTON
To: Shelley Coleman, Finance Director
From: Janioe Davies, Payroll&Aixounts Payable Manager
CC: File
Date: June 14, 2012
Re: Fire Relief and Pension Benefits Increase
The following information is for 4he preserrtation to the Fre Relief and Pension Board at their annual
meeting which is scheduled fw Moriiiay June 25'",2012. I haVe induded infortnation canoeming the COLA
and other ir�formation below.
• Actuarial Valuation
MilUman Consulfar�ts and Actuaries receiyed data in January 2011 to prepare an aduarial valuation of
the Fremen's Pension Fund. The riext valuation would be in January 2013 so the resuRs have not
changed since the last year's report Mlliman conduded in the last repbrt that the fund is fully funded:
However medical, long-tertn care and other norrpension benefits will not be charged to this fund
effective January 1, 2007 as there are not excess funds available for these benefits.
. Annual Aliidavits Verifvino Benefit Eliaibilitv �
In May 2012, all retirees and beneficiaries were serrt affidavits requesting updated personal irifortnatlon.
The City raquested that the Affidadits be riotar¢ed antl retumed to the payroll departrnent by the end of
May. Curtently tweNe affida�iits have been reoeived, out of fourteen.
At this time of the fourteen retirees and benefiaaries twelye are receiving a morrthy pension benefd from
the City.
11lJDURN * MORE THAN YOU IMAGINED
. Cost of Livino for Benefrciartes
The City's Cost of Living increase is in effed January 1ffi consistern with the Fire Fghter's contrad, and
compared with the State's cost of living increase in April. J�1ny adjustrnerds are then made in the April
chedc.
. Pensioners'Benefrciaries Cost of Livina Mcrease.
RCW 41.18.102 mandates a proportionate increase based on the previous year CPI-U beNueen
January and December 31 of the previous year. The aty applied a 2.0%COLA increase in 2010 and
_
9.0°� COLA increase in.2011 consistent with the Fire Fghter agreemerrt. At p�esent payment rates,
this oonstitutes an annual increase for the aty's following perisioner beneficiaries:
Annual Reliree Annual Refiee
Inaease Per Ina�se per
RCW 47.78 Annual Wages RCW 41.18 ,4nnual Wages
� zo�o aorii�.2oio zo��_ ,aorii�.zo»
nnsrmary�anernsey S�,aeo S�s,an s2,eos $�aaBo
Ms Jeenne PeNidge $1,707 $70,558 $1;713 $12,269
Ms RotieR Reno $2,068 $16,748 $2,087 $18,835
The City of Aubum annual wages is the excess of the cdy ot'Aubum's retiree benefd compared to the
State rtior�thly retirement allowance, in axordance with RCW 41:26.
Aooroval of Claims
$191,453 was paid from the Fre Relief Pension Fund, a.inaease of$47,994(33.5%). The increase is due
to the Fre Cordrad COLA and AdministraGon expense inaease due to the expense of Milliman performing
an aduarial valuation of the FR&P Fund in2011.
Note all medical expenses are paid out of ttie,General Fund. The total 2011 expenses paid from the FRP
Fund and General Fund are$375,877 an 18% increase.
Irnestrnent Author¢ation
2U11 fund assets in the amount of $2,674,340 are invested in the Washington State InvestrneM Pool,
treasury notes, and bonds: The average investrnent retum in 2011 was approximatety .18�o down .08%
from the previous year.
t1UDURN * MO[tE THAN YOU 1MAGINED