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HomeMy WebLinkAbout1997 12 16 Board of Trustees Special Minutes MINUTES BOARD OF TRUSTEES - PENSION PLAN DECEMBER 16, 1997 - SPECIAL MEETING 1. CALL TO ORDER The Board of Trustees - Pension Plan Special Meeting was called to order Tuesday, December 16, 1997 at 7:37 p.m. in the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). 2. ROLL CALL Jim Ryan, Vice Chairman, absent Robert Nippes, present Vernon Rozelle, present Ron Warble, absent Larry Nadrowski, present ALSO PRESENT John Drago, Administrative Assistant Tom Lang, Attorney 3. REVIEW OF THE EMPLOYEE'S LONG TERM DISABILITY PACKAGE John Drago, Administrative Assistant began the meeting by explaining to the Board that this meeting had been called to review the Long Term Disability bids that the City had solicited. It was the City Commission's intent to provide the City's employees with a better retirement package, especially in regards to long term disability. (The Commission has also agreed to increase life insurance benefits). Mr. Drago continued saying that there has been discussion with the City Manager, (although no decision has been made), about "The possibility of the City providing the funding for the long term disability policy to the Pension Board to kind of..monitor and oversee". He further stated that the City has budgeted $20,000 for the policy, and he gave the Board a spreadsheet of the bids. There were three companies that had submitted bids under $20,000 and Mr. Drago focused on the three companies in this range. The analysis had been given to Attorney Tom Lang for his review, and the Board was now being asked for their recommendation on this issue. Mr. Drago then opened the floor for questions. MINUTES BOARD OF TRUSTEES - PENSION PLAN DECEMBER 16, 1997 - SPECIAL MEETING PAGE20F3 Board Member Robert Nippes asked if Standard Insurance Company was missing a rating, and if that was important? Mr. Drago explained that insurance companies "Subscribe to different rating organizations, and I guess the more you subscribe to, and the higher your ratings are, then I guess the more prestigious you are, but it does serve as a benchmark to indicate to the lay person...I guess the financial stability and strength of the company over the long haul". Mr. Drago continued speaking on the criteria required to determine the true merits of various insurance companies, including how long a company had been in business, previous track records, size of staff, and specialization. Mr. Nippes asked if" Anybody talked to any of the other people that are covered like the City of Maitland...and a few of the other areas to see if they've had good experience"? Mr. Drago said that the City has not checked with other cities, but he would be double- checking on the company, if the item is approved to go to the Commission. He added that based on information provided by the insurance agent that handles this company, that other public sector groups have been covered by Standard Insurance Company for quite a few years. There was further discussion regarding a "stock" company versus a "mutual" company; the appropriated budget; disability criteria; the wide variance in bids received; and who prepared the bid package. Mr. Drago added that a census had been included in the bid package, and that the City had asked for a rate of payroll in determining the bids. Attorney Lang asked "Was there a difference in waiting periods"? Mr. Drago responded by saying "The bid package called for a 180 day waiting period, standard across the board". Mr. Drago added that four different plans were requested: "One that went up to age sixty-five, with or without social security integration; and I asked for two plans, lifetime, with or without social security integration. Nobody quoted me lifetime, they all quoted sixty-five, but Standard was the one only that quoted without social security integration...which is Plan 2, which is better...better for the employees". There was further discussion about canceling in two or three years time; re-bidding the policy; exceptions and pre-existing conditions; why the City requested a specimen contract; and coverage amounts. Board Member Larry Nadrowski confirmed with Mr. Drago that other public sectors that are covered will be contacted. MINUTES BOARD OF TRUSTEES - PENSION PLAN DECEMBER 16, 1997 - SPECIAL MEETING PAGE30F3 Motion: "I'd like to make a motion that...that...we recommend to the Board to use the Standard Insurance Company for Plan 2". Motion by Nippes. Second by Rozelle. Mr. Nadrowski did add his approval of the motion with the understanding that other areas would be contacted for their approval of the recommended insurance company. There was continued discussion on how the bid package was organized; what the criteria was (including pre-existing conditions); employee census; insurance agent interaction, and comparing insurance companies. A vote on the motion was called. Ron Warble. Robert Nippes, aye. Jim Ryan. Vernon Rozelle, aye. Larry Nadrowski, aye. Motion passed. There was additional discussion. Mr. Drago mentioned to the Board that after Attorney Lang completes his review, that there will probably be another meeting, (most likely in January). Lastly, there was discussion regarding the Board's responsibilities and liabilities, along with Attorney Lang's representation to the Board. Attorney Lang gave the Board his address as: Tom Lang Allen, Lang, Morrison and Curotto 405 East Robinson Street, Orlando, Florida 32802 Telephone: (407) 422-8250 Facsimile: (407) 422-8262 E-mail: ucftom@aol.com There was further discussion regarding defined benefit plans, other cities' pension plans, benefit packages, the state retirement system, salary comparisons, and other Florida cities. 6. ADJOURNMENT The meeting was adjourned at 8:35 p.m. with consensus of the Board. Minutes respectfully submitted by: Andrea Lorenzo-Luaces, Deputy City Clerk City of Winter Springs, Florida BOARDS/trnsteeslfY9798/minuteslI21697.doc