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Home My WebLink About06-25-2012 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 � Y.klerkVeoH1FR&P�201zFR&PNO&25.doc � 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