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HomeMy WebLinkAboutPension & Audit Committee February 10, 2014 PENSION & AUDIT COMMISSION CHAMBER COMMITTEE February 10, 2014 PRESENT: Hons. Corey Johnson, Mayor Pro Tem; Wayne Guilfoyle, Finance Committee Chairman; Tameka Allen, Interim Administrator; Donna Williams, Finance Director; Marion Williams, Commissioner; Jody Smitherman, Staff Attorney; Nancy Morawski, Deputy Clerk of Commission. ABSENT: Hon. Deke Copenhaver, Mayor. Ms. Williams: We have an addendum item that we need to add. It is a motion to proceed with the legal process to appoint the guardian for a surviving spouse who is receiving benefits under the 1949 Plan. This is something we need to take up today, perhaps at the end of the meeting. Mr. Guilfoyle: So move. Mr. Johnson: Second. Motion carries unanimously. 1.Approve COLA increases for retirees of the RC 1945 Plan, the City of Augusta 1949 Plan and the City of Augusta 1945 Plan in the amount of 1.8% to be effective March 1, 2014. The Bureau of Labor and Statistics published the amount as the increase in the Consumer Price Index for the South Region for 2013. Ms. Williams: Each year we have the cost of living increase for the three pension plans that I’ve mentioned here. The method has changed where we mirror the published increase done by the Bureau of Labor and Statistics for the southeast region. Those numbers were published and the amount was 1.8% in 2013 so we would request that that amount be approved as the cost of living raise for these three plans. After a short discussion, Mr. Johnson: I move to approve the 1.8% increase. Mr. Guilfoyle: Second. Motion carries unanimously. 2.Receive report of investments for the 1945 and 1949 Plans. (Charles May and Heather Seigler – Financial Advisors – Morgan Stanley) At this time Mr. Charles May gave a presentation regarding the status of the investments for the 1945 and 1949 Plans. Mr. Johnson: I make a motion to receive this as information. 1 Mr. Guilfoyle: Second. Motion carries unanimously. 3.Receive request from representative of RC 1945 retirees concerning additional benefits. At this time Mr. J. Lester Newsome made a request on behalf of the Richmond County 1945 retirees for an additional $500 per month for persons under the Plan. He noted that this would not include the people who several years ago were given an additional ten years of time credited. After a short discussion, Mr. Guilfoyle: We need to look at what we can do for them and I move that we receive this item as information. Mr. Johnson: Second. Motion adopted unanimously. The suggestion was made to have another Pension Committee in about a month to receive this information back. 4.Approve 2014 schedule of internal audits. Ms. Williams: Typically at this time of year we put forth a list of proposed projects to be done through the Internal Auditors, Cherry, Bekaert and Holland. You have a list of various projects mainly for departments that are involved in handling a lot of cash. I would also make the suggestion that we do an audit of the timekeeping system since we have not done that. Due to budget cuts we have approximately $50,000 to spend on internal audits this year. Mr. Guilfoyle: I make a motion to move forward. Mr. Johnson: Second. Motion adopted unanimously. Ms. Williams: The last item was the addendum which was a motion to proceed with the process to appoint a guardian for a surviving spouse receiving benefits under the 1949 Plan. Without mentioning the name, there is an individual in this plan that we noticed was not cashing the benefit check. We made contact with them and at that time it seemed a normal – oh, I forgot to go to the bank, etc. A month or so went by and they continued to be there. Made contact again and she said that her purse may have been stolen and we stopped payments on the checks. Both Ms. Burroughs and myself were in contact with this person. Kind of had a bad feeling about it but couldn’t exactly put our finger on it. We offered to meet with them and it went back and forth for a while. I started doing some checking and found that the individual’s house was to be sold at the Sheriff’s sale for back taxes the past couple of years. I talked to Mr. 2 Kendrick and he pulled it off for a while and I told him what the situation was that we were trying to get in touch with this person. We found a daughter and made contact with that individual, explained the plan and told her how to get in touch with Probate and expressed our concerns. Made her an appointment with Probate. That didn’t happen. Tried to contact her again and the daughter has quit returning calls. We talked to Judge Danny Craig who is a friend of the family and knows the person we’re talking about. He has attempted to contact this person. The situation is deteriorating rapidly. The Plan allows for a guardian to be appointed when a beneficiary is deemed no longer able to handle their own affairs. I’m extremely concerned about this person. Judge Craig went out to the house. He could not speak to the person, knew that they were there. Had some contact with some neighbors and they’re uneasy about the situation also. Judge Craig and Judge James know of the situation and have made contact with another individual, another family friend and attorney that is here in town. That is Bo Hunter and he and his wife have agreed to assume guardianship of this individual so that we can pay out the benefits and that he can take care of this person and her affairs. We would like to do something here. Mr. Guilfoyle: Donna, that is above and beyond what most people would do is to reach out and be sure the lady is taken care of. Many people won’t do that and if you hadn’t made a phone call she would be out there on the street and lost everything. I commend you for that. Let’s do whatever it takes to move forward. Mr. Johnson: I concur. I don’t see a problem if Mr. Hunter and his wife are willing to look after her affairs and she is taken care of. Ms. Williams: The application for guardianship is about $400. If it cannot be waived by Probate, I would ask that we pay for this out of the plan proceeds as a legal fee. It would be an allowable expense. I would hate for the guardian to have to take on that expense so I would make that a part of it that I would be requesting from this body to do that. Mr. Guilfoyle: I would make a motion to move forward with it. Mr. Johnson: Second. Motion adopted unanimously. ADJOURNMENT: There being no further business, the meeting was adjourned. Nancy W. Morawski Deputy Clerk of Commission 3 4