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Council Agenda Item Cover <br />__________________________________________________________ <br />MEETING DATE: <br /> November 5, 2007 <br />AGENDA ITEM TITLE: <br /> Proposed Ordinance Correcting Police & Firefighter <br />Pension Language to the Past Practice Regarding the <br />Vesting Distribution <br />AGENDA SECTION: <br /> New Business <br />CAN THIS ITEM BE RESCHEDULED? : <br />No <br />BACKGROUND REVIEW: <br />The Police and Firefighter Retirement Plan provides <br />that when an employee completes the ten year vesting, there is a distribution of <br />money from the pension plan funds into the employee’s individual investment <br />account. When the new actuary, Steve Siepman with Buck Consultants, <br />calculated the first employee’s distribution of vested funds it became evident that <br />the previous calculations, through the previous actuary, were made in a different <br />way. After much investigation, it was determined that the exact language in the <br />ordinance regarding this distribution does not best describe the previous method <br />of calculation. All employees have received this distribution, except those with <br />less than ten years of service. The result of the few words difference in the <br />ordinance would provide approximately $30,000 less to each employee’s <br />distribution at the time of vesting (ten years). <br />The Pension Board reviewed this matter and believed it would be damaging to <br />treat newly vested employees in a different way than previously vested <br />employees. They voted unanimously to make minor alterations to the language of <br />the ordinance to incorporate the distribution in the method that has been past <br />practice. <br />RECOMMENDATION: <br /> The Pension Board and Staff recommend approving the <br />attached ordinance which alters the language to reflect past practice regarding the <br />distributions at vesting. <br /> <br />