MINUTES. Newly appointed Board member Tom Mulligan was not present at the meeting. PRESENTATION OF PLAQUE TO FORMER BOARD MEMBER TONY LANG

Transcription

1 MINUTES POLICE AND FIRE RETIREMENT SYSTEM BOARD OF TRUSTEES OMAHA/DOUGLAS CIVIC CENTER, LEGISLATIVE CHAMBERS 1819 FARNAM STREET, OMAHA, NEBRASKA THURSDAY, MAY 20, 2010, 1:30 P.M. MEMBERS PRESENT: MEMBER ABSENT: James Sklenar, Chairperson Michael Henrich, Vice Chairperson George Merithew, Secretary Richard O Gara, Human Resources Director Pam Spaccarotella, Finance Director Robert A. Mooney, Outside Member Tom Mulligan, Council Member AMONG OTHERS PRESENT: Jo Cavel, Deputy City Attorney Paul Murphy, Human Resources Toni Hansen, Recording Secretary OATH OF OFFICE Newly appointed Board member Tom Mulligan was not present at the meeting. PRESENTATION OF PLAQUE TO FORMER BOARD MEMBER TONY LANG Former Board member Tony Lang was not present at this time for the meeting. MONEY MANAGERS Timbervest Hotchkis & Wiley Denver Investments Fuller & Thaler Lazard Money managers from Timbervest, Hotchkis & Wiley, Denver Investments, and Fuller & Thaler provided their reports to the Board members. Representatives from Lazard were not available to report to the Board. REPORT OF INVESTMENT CONSULTANT Mr. Adam Strumpf with DeMarche Associates gave a brief overview of the markets of the Omaha Police and Fire Pension Fund. Mr. Strumpf reported that at the end of last quarter we started with $403,000,000, ending with $418,000,000, making $15,000,000 this quarter. As far as a return on investment for the portfolio, that translates into an above average return. The relative objective returned 3.4% for the quarter, our portfolio returned 3.9%. Mr. Strumpf stated

2 Page 2 of 10 that more importantly are we achieving the return to meet the long term objective of 8%, which for the quarter would be about 2%. We are returning 4% for the quarter. Mr. Strumpf was happy to report that next quarter will be the 30 th anniversary working with the Police and Fire System. PRESENTATION OF PLAQUE TO FORMER BOARD MEMBER TONY LANG At this time Chairperson Jim Sklenar presented former Board member Tony Lang with a plaque and thanked him for his years of service to the Police and Fire Pension Board. Mr. Lang served on the Board from May, 2003, to February, Mr. Lang spoke to the Board and said it was an honor to serve on the Board and appreciates all of the help he received from everyone over the years. FINANCIAL REPORT Pam Spaccarotella was not present at the meeting at this time. Dick O Gara noted on page 2 of the Financial Report that the numbers for 10/1/09 through 12/31/09 are the same as the numbers for 1/1/10 through 3/31/10. MOTION by O Gara, second by Mooney, to lay over approval of the financial report to the next meeting. VOTING: Aye: Henrich, O Gara, Merithew, Mooney, Sklenar 5-0 (2 absent) INVESTMENT COMMITTEE Chairperson Sklenar reported that the Investment Committee met today with the consultant. Overall, it was a very positive meeting. The first quarter results were encouraging. Chairperson Sklenar reported that Schroder will be funded June 1. APPROVAL OF MINUTES: APRIL 15, 2010, REGULAR MEETING MOTION by O Gara, second by Merithew, to approve the minutes from the April 15, 2010, meeting. VOTING: Aye: Henrich, O Gara, Merithew, Mooney, Sklenar 5-0 (2 absent) OLD BUSINESS REQUEST FOR APPROVAL SERVICE-CONNECTED DISABILITY

3 Page 3 of 10 GRUTTEMEYER, John M.; Fire Captain, Fire Department Age 45 Served 22 years 3 months Retirement Date: Monthly Pension: $4, Captain John Gruttemeyer and his attorney, Mr. Ed Pohren, were present at today s meeting. Mr. Pohren indicated there were many exhibits related to this request for a disability. Mr. Pohren stated he felt what was missing in all of the reports and exhibits was a review by a specialist in Post Traumatic Stress Disorder (PTSD). He introduced Dr. Hunziker s testing and review of Captain Gruttemeyer. Mr. Pohren told the Board that Dr. Hunziker has worked at the Veteran s Administration Hospital for 20 years and as part of his part-time practice he specializes in the treatment of PTSD. Mr. Pohren stated that Captain Gruttemeyer suffers from PTSD that was either lit up or aggravated by an incident that took place in September of Mr. Pohren added that Dr. Hunziker reports that Captain Gruttemeyer is permanently disabled and not capable of returning to work at the present time. Captain Gruttemeyer reminded the Board of the traumatic events of the September 20, 2006, fire in which two people lost their lives. Mr. Pohren presented the Board with an article from Firehouse.com regarding the incident. This article was entered into the record as Exhibit 10. Mr. Pohren referred to clinical notes dated December of 2006 when Captain Gruttemeyer went to the emergency room with chest pains, shortness of breath, and tingling in his hands. Mr. Pohren stated that at the time these symptoms came on for reasons that Captain Gruttemeyer was not aware of but that the symptoms do correlate to having PTSD. These clinical notes were not included in any of the exhibits presented to this point. It was entered into the record as Exhibit 11. The discussion continued regarding the tests that Captain Gruttemeyer underwent, the scoring and results from those tests. George Merithew asked Captain Gruttemeyer if he was being treated for PTSD. Captain Gruttemeyer indicated that he is not currently being treated for PTSD, but continues to see his counselor Dr. Buda Darden. MOTION by Merithew, second by Spaccarotella, to deny the disability pension for Captain Gruttemeyer based on the record before us and the totality of the record. NEW BUSINESS REQUEST FOR APPROVAL REFUND OF PENSION CONTRIBUTIONS

4 Page 4 of 10 Arthur Brumfield Police Department 01/09/95 04/05/10 Amount $132, MOTION by Mooney, second by Merithew, to approve the refund of pension contributions of Arthur Brumfield. REQUEST FOR APPROVAL SERVICE-CONNECTED DISABILITY PRAZAN, Jeffrey J.; Fire Captain, Fire Department Age 47 Served 25 years Retirement Date: 04/30/10 Monthly Pension: $5, Captain Jeffrey Prazan was present at today s meeting. Captain Prazan is requesting a disability pension for Hepatitus C resulting from an incident he thought was in the year He was on worker s compensation for a couple of years. Captain Prazan is full duty at the current time, but he wanted it on the record that he is preserving his right to come back to the Board in the future if his condition worsens. MOTION by Merithew, second by Henrich, to deny the disability based on the fact that Captain Prazan is not disabled at this time and that he preserves his right to come back to the Board at a later date if that status should change. Captain Prazan requested a regular service retirement at this time. Darren Garrean, representative from the Firefighters Union was present and requested that Captain Prazan s retirement be retroactive to April 30 with pension effective May 1. Mr. Garrean indicated that the calculations for Captain Prazan s pension were incorrect because of his comp payout. The Board discussed Captain Prazan s date of retirement and date of pension in regard to the comp payout. Mr. Murphy told the Board that he received confirmation from Payroll that Captain Prazan s comp payout was being made on. Paul Murphy, Benefits & Compensation Manager, indicated that the Board could approve the amount shown today and then Human Resources could research different options. This then could be brought back to the Board as a request for a recalculation.

5 Page 5 of 10 MOTION by Merithew, second by Mooney, to approve the service retirement for Prazan with retirement effective April 30, pension starting May 1 with the ability to amend the calculation. RODINO, Thomas P.; Fire Captain, Fire Department Age 46 Served 25 years Retirement Date: 04/30/10 Monthly Pension: $6, Captain Thomas Rodino was present at today s meeting. Captain Rodino does have some cardiac issues. He has not missed any work, although he should have possibly been light duty for a short time. At this time, Captain Rodino is not claiming a disability but he does want to preserve his right to come back to the Board in the future. MOTION by Merithew, second by Henrich, to deny the service connected disability for Thomas Rodino and allow him to preserve his right in the event his disability should manifest itself. MOTION by Merithew, second by Mooney, to approve the service retirement for Thomas Rodino effective April 30 with pension beginning May 1. REQUEST FOR APPROVAL SERVICE RETIREMENT DATES/PENSION AMOUNTS Employee Title Age Yrs Service Retire Pension $ Date Benak, Ronald J. Battalion Fire Chief yrs 04/30/10 $7, Clifton, Scott E. Fire Captain yrs 05/01/10 $6, Hawley, Richard D. Firefighter yrs 05/01/10 $4, Johnson, Steven E. Fire Captain yrs 04/30/10 $6, Keefer, Timothy J. Fire Captain yrs 6 mos 05/01/10 $5, Moran Jr, Robert F. Fire Apparatus Eng yrs 05/01/10 $5, Nekola Jr, Joseph G. Fire Captain yrs 05/01/10 $5, Pirruccello, John J. Police Officer yrs 6 mos 04/20/10 $5, Quinlan, Thomas M. Battalion Fire Chief yrs 6 mos 04/25/10 $5, Recic, Thomas R. Police Officer yrs 1 mo 04/30/10 $5,248.41

6 Page 6 of 10 Roberts Jr, William P. Fire Captain yrs 04/30/10 $6, Sorich, David M. Fire Captain yrs 05/01/10 $6, Spencer, Charles R. Firefighter yrs 04/30/10 $4, MOTION by Merithew, second by Mooney, to approve the above service retirement dates and pension amounts. REQUEST FOR APPROVAL WIDOW S PENSION KIELTY, Debra A., widow of Police Officer Kirk L. Tynes, who deceased on 04/26/10 Pension Effective: 04/27/10 Monthly Pension: $2, MOTION by Merithew, second by Mooney, to approve the above widow s pension. REQUEST FOR APPROVAL CHILD S PENSIONS TYNES, Elijah T., child of Police Officer Kirk L. Tynes, who deceased on 04/26/10 Pension Effective: 04/27/10 Monthly Pension: $ TYNES, Jordan N., child of Police Officer Kirk L. Tynes, who deceased on 04/26/10 Pension Effective: 04/27/10 Monthly Pension: $ TYNES, Avram N., child of Police Officer Kirk L. Tynes, who deceased on 04/26/10 Pension Effective: 04/27/10 Monthly Pension: $ MOTION by Merithew, second by Mooney, to approve the above three child s pensions. SWANSON, Anthony, child of retired Fire Apparatus Engineer, Donald E. Swanson, who deceased on 04/30/10 Pension Effective: 05/01/10 Monthly Pension: $ Anthony Swanson is an adult child of retired Fire Apparatus Engineer, Donald E. Swanson, who passed away on April 30, 2010.

7 Page 7 of 10 Mr. Murphy informed the Board that in this particular death there was a surviving family member who is currently age 36. Mr. Murphy referred to a report from Alegent Health dated January 30, 2009, in regard to Mr. Swanson s medical status. There is a provision for dependents who are disabled prior to the age of 18. The Board members had questions and concerns as to when Mr. Swanson became disabled and wanted additional medical reports in regard to his disability. MOTION by Merithew, second by O Gara, to lay over the Swanson request for a child s pension to give Paul Murphy time to complete the record. REQUEST FOR APPROVAL PAYMENT OF DEATH BENEFITS KIELTY, Debra A., beneficiary of Police Officer Kirk L. Tynes, who deceased on 04/26/10 Death Benefit: $66, MOTION by Merithew, second by Mooney, to approve the above death benefit. REQUEST FOR APPROVAL RECALCULATION OF PENSION AMOUNT JAIXEN, Daniel J., Police Officer, Police Department Retirement Date: 12/25/09 Original Pension: $4, Recalculated Pension: $3, The Board questioned why Daniel Jaixen s pension was recalculated down. Ms. Spaccarotella was concerned that he has been receiving overpayments since the time of his retirement. Mr. Murphy did not have specific information as to why this was being recalculated. MOTION by O Gara, second by Merithew, to lay over the recalculation of Daniel Jaixen s pension.

8 Page 8 of 10 MEDICAL BILLS Blue Cross Blue Shield $160, Prime Therapeutics $ 13, MOTION by Merithew, second by O Gara, to approve the above two medical bills in the amounts indicated above. FINANCIAL REPORT continued MOTION by Mooney, second by Merithew, to return to the Financial Report. Ms. Spaccarotella reported that the balance at the beginning of April was $400, , total receipts for April were $18,652,467.87, the total expenses were $4,781,632.13, which leaves a balance of $414,743, It was brought to Ms. Spaccarotella s attention that on page 2 of the financial report the numbers for both time frames were the same. Ms. Spaccarotella stated that the bottom numbers are for the year and the top numbers are for the first quarter and since we are in the first quarter, the numbers are the same. Ms. Spaccarotella indicated the heading is incorrect, but the numbers are correct. The dates listed should be through MOTION by Mooney, second by Merithew, to approve the Financial Report. MOTION by Mooney, second by O Gara, to return to the order of the agenda. DISCUSSION/ACTION

9 Page 9 of 10 Approval of contract with Milliman January 1, 2010, Actuarial Valuation Ms. Spaccarotella made a motion to lay this over because Jo Cavel requested changes to the Milliman agreement and we have not received a response in regard to those changes. MOTION by Spaccarotella, second by Merithew, to lay over approval of the contract with Milliman. Pension Overpayments Ms. Spaccarotella provided to the Board overpayment pension policies from several municipalities and states. Ms. Spaccarotella has not drafted a policy and wanted to know if the board was interested in setting up a policy. Mr. O Gara stated there was good information in the policies presented and thought a policy should be put together. Ms. Spaccarotella will put together a draft and present it for discussion at the next meeting. Chairperson Sklenar asked that Ms. Spaccarotella provide Jo Cavel with a copy of the draft. Single Custodian Recommendation Ms. Spaccarotella stated that the investment committee met with US Bank, the custodian for the Police and Fire Retirement System, and Wells Fargo, the custodian for the Civilian Retirement System in regard to the proposal for joint custodial services by a single provider. Ms. Spaccarotella provided a memo to the Board that detailed why the Investment Committee was recommending the approval of Wells Fargo as the single provider of joint custodial services for both the City of Omaha Police and Fire Retirement System and the City of Omaha Employee s Retirement System. MOTION by Merithew, second by O Gara, to approve Wells Fargo as the single provider of joint custodial services. Update RFP for Actuarial Services Ms. Spaccarotella reported that Sheri Larsen from the Finance Department is preparing a draft RFP to send to the committee members for review and commentary. The intention is to engage

10 Page 10 of 10 Milliman for the valuation as of January 1, 2010 and to look for an RFP for actuarial services for a five year contract beginning in ADJOURN MOTION by Merithew, second by Spaccarotella, to adjourn. The meeting adjourned at approximately 4:05 P.M. Toni Hansen Recording Secretary Date APPROVED 5-0 (2 absent) James Sklenar Chairperson Date George Merithew Secretary Date