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.
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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.
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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
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