HomeMy WebLinkAboutPension & Audit Committee December 16, 2014
PENSION & AUDIT COMMITTEE COMMISSION CHAMBER
December 16, 2014
PRESENT: Hons. Deke Copenhaver, Mayor; Corey Johnson, Mayor Pro Tem; Wayne
Guilfoyle, Finance Committee Chairman; Janice Jackson, Administrator; Donna Williams,
Finance Director; Lena Bonner, Clerk of Commission.
Ms. Jody Smitherman: We are asking for consent to add an item regarding the retirement
of Calvin Hicks.
Unanimous consent is given to add this item to the agenda.
1.Receive information and cost analysis related to increased benefits requested by
1945 and 1949 plan retirees.
Mr. Bill Karbon of CBIZ presented information regarding the cost analysis regarding the
request for increased benefits for these two pension plans.
Mr. Karbon: If we look at a proposed increase of $250 for all current retirees in the 1945
plan you’d be looking at an increase in liabilities of about $550,000 and an increase in costs of
about $64,000 a year. A similar change in the 1949 plan you’d be looking at an increase in
liabilities of a little over $6 million dollars and an increase in costs of a little over $620,000.
What I have added on to the report are some projections of the assets assuming there are no
changes and with the changes in increase of benefits. Georgia state law says that if you increase
benefits then you have to then funds those benefits over a 20-year period. We’re also
anticipating an increase in plan costs with the change to a more updated mortality table.
After further discussion, Mr. Guilfoyle: I move that we receive this as information.
Mr. Johnson: Second.
After additional discussion, Mr. Steve Sanders: The $55,000 amount that was included in
the budget proposal that was for a $250.00 increase for retirees not including the enhanced
group, is that right?
Ms. Jackson: No, I think that was enough for everybody in the 1945 plan.
Mr. Sanders: So do we not know what the amount would be, the additional cost for a
$250 increase just for the retirees who are not receiving enhanced benefits?
Mr. Karbon: I believe it was about $35,000. $38,000.
Mr. Sanders: That cost that was included in the budget proposal two weeks ago, that
was, had it been adopted as it was proposed, that would have been in the budget for 2015,
correct?
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Ms. Jackson: That’s correct.
Mr. Guilfoyle asked if Mr. Sanders had reached out to the other retirees in the plan to see
if they approved of the request that he is making on behalf of the ten.
Mr. Sanders stated that they had not and had made the request on behalf of the retirees
who are not receiving enhanced benefits.
Ms. Williams explained that those people who chose to retire early under this plan when
consolidation came into effect did receive an extra ten years of credited services for their
retirement benefit calculation.
Motion carries 5-0.
Ms. Smitherman: I wanted to bring to your attention an item where back in 2006
the Board of Assessors hired Calvin Hicks as the Chief Assessor for that board. As part of
his contract which was approved by the Board of Commissioners there was an agreement
in Section 10C that stated that he shall be granted an additional ten years of service in his
contract. The problem that we had was that it was never forwarded to the Pension
Committee to get a plan amendment done to reflect that and now Mr. Hicks is interested in
retiring so at this time we are seeking approval to proceed forward with Mr. Hicks’
retirement with the additional ten years of credited service as provided for in his contract
and to bring forward a plan amendment to reflect the (inaudible).
Mr. Mayor: Can I get a motion to that effect?
Mr. Johnson: I’ll make a motion to approve (inaudible).
Ms. Williams: Second.
Motion adopted 5-0.
ADJOURNMENT: There being no further business, the meeting was adjourned.
Lena J. Bonner
Clerk of Commission
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