CIVILIAN PENSION BOARD

The Civilian Pension Board met on May 8, 2007 at 2:27 p.m. with Chairman Ruane presiding. Members present were Mrs. Braun, Mr. DePrima, Mr. Hogan, Mr. Lucas, Mrs. Mitchell, and Mrs. Rigby.

Agenda Additions/Deletions

Mr. Hogan moved for approval of the agenda, seconded by Mr. Lucas and unanimously carried.

Annual Review of Pension Benefits Paid to All Civilian Retirees (COLA)

During the Civilian Pension Board Meeting of January 27, 2000, members directed the City Clerk to maintain a permanent pending agenda item to review a Cost of Living Adjustment (COLA) for City of Dover retirees prior to the third week in February each year.

Mr. Lucas recommended that all civilian retirees receive a cost of living adjustment and that it be funded out of the general fund, similar to last year’s, rather than adding the cost to the unfunded liability. Mrs. Donna Mitchell, Finance Director, indicated that a one percent (1%) COLA would cost $283,518 and that this amount would need to be added to the Civilian Pension Fund for it to be fully funded.

Mr. DePrima, City Manager, noted that the City Budget is the City Manager’s Budget until forwarded on to Council for approval. He recommended that in the future, the Civilian Pension Board submit a letter to the City Manager’s Office for considering the possibility of a COLA. However, this year, due to time constraints, he suggested that the request be submitted directly to Council for consideration. Mrs. Mitchell stated that she will further review the pension ordinance with regards to this suggestion.

No further action was taken.

(City Clerk’s Office Note: Correspondence was subsequently received from the Civilian members of the Pension Board (Attachment #1) requesting that a meeting be held to continue the COLA review in the manner set forth by the Pension Board on January 27, 2000. Due to several circumstances, members were directed by the City Clerk to submit a letter to Councilman Hogan requesting that a COLA increase be considered during the Budget Hearings.)

Proposed Ordinance Amendment - Chapter 2 - Administration, Article IV - Officers and Employees, Division 7 - General Employee Pension Plan, Subdivision I - In General, Section 2-338 - Benefits to cease upon reemployment; exceptions

Members were provided a proposed ordinance amendment to Chapter 2 - Administration, Article IV - Officers and Employees, Division 7 - General Employee Pension Plan, Subdivision I - In General, Section 2-338 - Benefits to cease upon re-employment; exceptions, of the Dover Code, which would be amended by revising the last sentence, as follows:

The provisions of this section shall not apply to any employee who receives remuneration as a result of being elected or appointed to an elective or appointed office in the city, nor to any employee re-employed by the city in a temporary capacity, so long as city earnings do not result in a reduction of the social security benefits actually received by the employee because the employee exceeded the earnings limit defined by social security for benefit reduction for post-retirement earnings.

Mr. DePrima indicated that while attending a recent ICMA Conference, he found that numerous jurisdictions are amending their ordinances due to the difficulty in filling positions. He stated that when hiring retired employees on a temporary basis, it was found that these employees were exceeding the earnings limit defined by social security for post-retirement earnings even though some were not actually receiving social security benefits. This ordinance amendment would resolve this conflict.

Mr. Frank Szyjka, Human Resources Director, indicated that Mr. William Pepper, Deputy City Solicitor, recommended the above change for the proposed ordinance amendment.

Mr. Hogan moved to recommend adoption of the proposed ordinance amendment (Attachment #2), as recommended by staff. The motion was seconded by Mr. Lucas and unanimously carried.

Mrs. Mitchell moved for adjournment, seconded by Mr. Lucas and unanimously carried.

Meeting Adjourned at 2:52 P.M.

Respectfully submitted,

Eugene B. Ruane

                                                                                    Chairman

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S:ClerksOfficeAgendas&MinutesMisc-MinutesPENSION2007