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1987.02.24_BTRB_Minutes_Regular V TOWN OF HIGHLAND BEACH, FLORIDA RETIREMENT BOARD OF TRUSTEES MEETING - MINUTES STuesday, February 24, 1987 1:00 p.m. A Meeting of the Town of Highland Beach Retirement Board of Trustees was called to order by Mayor Edward J. Sullivan at 1:00 p.m. at Town Hall. Other members in attendance were: Commissioners John J. Basso and Betty Jean Stewart, Sgt. Abraham Widelitz, and Elizabeth Ulitsch. Also present were: Town Manager Hugh D. Williams, Town Clerk Mary Ann Mariano, and Finance Director Rebecca L. Morse. Finance Director Morse stated that in reviewing the Retirement Board activity for the period of 10/1/85 to 9/30/86, she found various errors in vesting and interest calculations and their posting. Commissioner Stewart questioned why a Financial Statement regarding the Retirement Plan was not available for the members for today's meeting, since one had not been received since 9/30/86. The Finance Director stated that a Financial Statement was awaiting action by this Board as to over-payment and under-payment in order that a correct report could be distributed. She also stated that if she was directed to have a Financial Statement ready for this meeting, she would have done so. Commissioner Basso felt that the Board should have had such a statement even if it was not accurate. Town Manager Williams stated that the Board would have a copy of this statement by the end of the day. Town Manager Williams stated that some employees who are no longer with the Town were either over-paid or under-paid, a difference of $1,400.00 which the Town had to pay out. Town Manager Williams questioned whether or not the existing Retirement Plan would comply with the new tax code. The Town auditors, Coopers & Lybrand, would charge a fee of approximately $1,000.00 to assess the plan. In a letter from the Town Attorney, whose office looked at the plan, it was stated that the feeling was that the Town Plan did not comply and was deficient in some areas with the regulations that now exist. The Town Manager stated that the Board needs to decide whether to stay with the existing plan, an in-house type of retirement system, or take it to an outside retirement system. The recent Town Audit also pointed out the need for a second party, preferably an outside party, to check the calculations made on the present Retirement Plan and when an employee withdraws for whatever reason, some time should be allowed to pay the employee, Mr. Williams stated. When Mr. Williams stated that he felt the Financial Advisory Board should be asked to make recommendations regarding this matter, Commissioner Stewart stated that according to the F.A.B. Minutes, they have already been discussing this for four months and felt the matter should be addressed today. \ I r TOWN OF HIGHLAND BEACH Retirement Board of Trustees - Minutes of Meeting February 24, 1987 Page 2 of 3 Mayor Sullivan said he felt the Town should not pursue getting back over-payments and should pay any balance owed due to under-payment. Commissioner Stewart felt the integrity of the Retirement Plan needs to be addressed and should show that the people involved in administering the plan are doing it fairly. Participants should not feel their monies are taken away without having a voice in the matter. Elizabeth Ulitsch stated that she had not been involved in the calculations but those who were were Town employees and felt that the Town should stand behind their employees, whatever mistake was made. She felt that the monies for the over and under-payments should be drawn from the funds forfeited by the employees who leave before they are fully vested in the Retirement Plan, since the over and under- payment errors were made in good faith. Retired Lt. Maher's account was discussed. Sgt. Widelitz verified that Lt. Maher had bought back one year with his money at the beginning of his tenure but records do not show this and involves the amount of $1,200.00. Mr. Williams stated that this did happen even though the plan does not allow it . Mr. Williams stated the smount of shortfall is $1,400.00. Rebecca Morse stated that if forfeited funds will be used, it does not take funds from anyone's account. MOTION was made by Commissioner Stewart, seconded by Sgt. Widelitz, to pay those who were under-paid what is owed and use the forfeited funds and not try to collect the over-paid funds. The Retirement Board was polled and all five members voted AYE. The MOTION carried unanimously. Commissioner Basso felt that Retirement Plans are complicated and it may cost the Town money if an outside expert were hired to study the Retirement Plan. The Finance Director stated that the present plan provides for this and would pay 50% and the Town would pay for 50% for such a study. After much discussion, MOTION was made by Commissioner Basso, seconded by Commissioner Stewart, to request the Financial Advisory Board to look into alternatives or if the Town should continue to provide a Retirement Plan in its' present form and make a recommendation as soon as possible. The Retirement Board was polled and all five members voted AYE. The MOTION carried unanimously. Mayor Sullivan stated that the F.A.B. would be advised of this. Commissioner Stewart felt that the Board should have a Financial Statement for each meeting, showing activity and balances, where the accounts are and how much they are ( producing. Mr. Williams stated he would make sure it was done. The Board was reminded of the F.A.B. Memorandum of 6/23/86 which stated "any employee wishing TOWN OF HIGHLAND BEACH Retirement Board of Trustees - Minutes of Meeting February 24, 1987 Page 3 of 3 to withdraw from the plan was to give 30 days notice prior to withdrawal." The Town would have 30 days to fund it and make the correct calculations. Attorney Sliney stated that no amendments would be made to the present Retirement Plan until the F.A.B. submits their recommendations within approximately 30 days. There being no further business to discuss, MOTION was made by Commissioner Stewart, seconded by Sgt. Widelitz, to adjourn the Retirement Board Meeting at 1:20 p.m. Respectfully submitted, Elizabeth L. Kolek, Deputy Town Clerk APPROVED: . 3I a1 Iri Edward J. Sullivan, Mayor Jon Ba alit 9.4.1 1110 Bette/ Stewart, Commissioner irn E izab h U itsc Zdj09....g,.. Abraham Widelitz ATTEST: W44.211a-42e.4-$ DATE: 3 c1f/ cc: Town Manager Finance Director 0, L. I