HomeMy WebLinkAbout2006 09 07 Regular 312 Pension Board Communications
City of Winter Springs
Special Meeting - September 7, 2006
Add-On Agenda Item ---Communication With Consultants
COMMISSION AGENDA
ADD-ON
ITEM 312
Regular
September 7, 2006
Special Meeting
MGR.r /DEPT.
Authorization
REQUEST: City Manager requesting the City Commission to provide the City Manager with
directions regarding Pension Board communications with the Pension Plan Consultants.
PURPOSE: This agenda item is needed for the Commission to determine if the City Commission
desires to amend current practices regarding Pension Board Members communicating directly with
Pension Plan Consultants.
CONSIDERATIONS: Currently, the City Manager serves in the capacity of the Pension Plan
Administrator relative to the day to day administration of the Plan.
Currently, Pension Board Member's questions are directed to the City Manager, who directs the
question to the various consultants if he cannot answer them, and then advises the Pension Board of such
inquiries and the answers so that all persons have the advantage of understanding the questions and the
answers.
This process is consistent with the City Charter, and with City budget and procurement rules.
This process is necessary for the following reasons:
1. Under the City Charter no one is allowed to create a financial obligation upon the City other than
the City Manager. This is necessary in this form of government in order to maintain financial
checks and balances. The legislative body appropriates; the executive body spends in
accordance with the appropriation.
2. The Charter further stipulates that no one can direct the work task of persons under the direction
of the City Manager, and that all directives to the City Manager are vested in the City
Commission as a body. Pension Plan consultants work under the direction of the City Manager,
who manages them in accordance with the collective direction of the City Commission.
3. In order for the Pension consultants to be able to coordinate their services with the City in a
consistent manner, they desire to have a central authority to work with.
4. The fiduciary literature I have reviewed seems quite clear regarding the fiduciary's mandate to
act according to established law and practices, discourages trustees from acting as individuals in
the alternative to acting as a collective authority, including giving advice and opinions to
employees and discourages individuals from acting as a spokesman for the Board particularly in
giving advice or direction to employees of the Plan. This kind of language tends to suggest that
individual members of the Board contacting consultants and plan employees regarding pension
matters is to be discouraged in favor of official acts of the Board carried out through the Plan
Administrator.
This Commission could approach this in several ways.
1. The Commission could authorize an appropriation to fund individual inquiries with consultants
that do not exceed a defined cost, and require that the full board be given written copies of the
consultant's response.
2. The Commission could require that all inquiries to consultants be in writing and copies to the
plan administrator and all board members, and that all responses be copied to the plan
administrator and board members.
3. The Commission could direct that all inquiries be made and answered at open board meetings.
4. Continue the current practice of all inquiries being directed to the City Manager acting as the
Plan Administrator.
5. Other appropriate directives consistent with the City charter.
FUNDING: N.A.
RECOMMENDATION: It is recommended that the City Commission provide the City Manager with
direction it deems lawful and appropriate regarding individual pension board members contacting
pension plan consultants.
ATTACHMENTS:
COMMISSION ACTION: