CIVILIAN PENSION BOARD

The Civilian Pension Board met on November 21, 2007 at 1:55 p.m. with Chairman Hogan presiding. Members present were Mr. McGiffin, Mr. DePrima, Mrs. Mitchell, Mrs. Rigby, and Mrs. Braun. Mr. Lucas was absent. Others present were Mr. Szyjka and Mrs. McDowell.

AGENDA ADDITIONS/DELETIONS

Mr. McGiffin moved for approval of the agenda, seconded by Mrs. Rigby and unanimously carried.

DISCUSSION - ALTERNATIVES TO THE STANDARD ACROSS THE BOARD PENSION COLA

During their Regular Meeting of January 27, 2000, members directed the City Clerk to maintain a permanent pending agenda item to review a Cost of Living Adjustment (COLA) for City of Dover retirees prior to the third week in February each year. During their review this past year, there seemed to be much confusion, which resulted in the request for the consideration of alternatives to the standards across the board pension COLA.

At the request of the City Manager, Mr. Szyjka, Human Resources Director, provided members with researched information regarding alternatives to the standard across the board pension cost of living adjustments (COLA).

In addition to the research provided, Mr. Hogan suggested that an Internet search be conducted on this matter.

Members also were provided a history of the COLA for City of Dover Retirees (as on file in the Office of the City Clerk).

Mr. DePrima relayed concern with the Board making a determination for providing a COLA that is funded by the General Fund or other City fund. It was his opinion that such a decision would not be a function of the Pension Board; however, if there is a surplus in the Pension Fund, then the Board could submit a recommendation to City Council. It was also his opinion that it is a conflict for the Board to give opinions on budgetary matters.

Responding to Mrs. Rigby, Mr. DePrima confirmed that the Board submits a recommendation regarding a COLA to City Council for their consideration.

Mrs. Mitchell explained that if such a recommendation of the Board is received prior to the submission of the budget, then the City Manager could include it in the draft budget.

Mrs. Rigby explained that the purpose of developing a more standardized COLA is to address some of these concerns. Otherwise, it was her feeling that each year, there will be some kind of issue that will prevent a COLA being provided to retirees.

Mr. DePrima questioned the purpose of the Board, stating his feeling that the purpose of the Board is to take care of the funds that have been entrusted for retiree benefits. It was his opinion that members go beyond their role when they begin determining retiree pension benefits.

Prior to taking action regarding this matter, Mr. Hogan suggested that members be provided the statement of purpose for the Pension Board, as indicated in the Dover Code as well as the legal opinion issued regarding this issue. He also requested that if consideration of a COLA is not to be conducted by the Pension Board, staff provide where and when the discussion is to occur.

As a reminder, Mr. Hogan stated that he would like for staff to conduct an Internet search for the manner, including who and how, pension COLA’s are determined. Mrs. Mitchell suggested that the Actuary be contacted for input regarding this matter.

Mr. DePrima also requested that the motion requiring a COLA review in February be provided to members.

Members suggested that the next meeting be scheduled for February 20, 2007, at 1:30 p.m. to review the material and research regarding the issue of providing a COLA for retirees as well as the review of the Quarterly Investment Performance Analysis Reports by Peirce Park Group.

Mrs. Rigby moved for adjournment, seconded by Mrs. Mitchell and unanimously carried.

Meeting Adjourned at 2:22 P.M.

Respectfully submitted,

Kenneth L. Hogan

Chairman

KLH/TM/jg

S:ClerksOfficeAgendas&MinutesMisc-MinutesPENSION200711-21-2007 - Civilian.wpd