08-27-03 Personnel & Finance - Laserfiche WebLink

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Personnel and Finance Committee August 27, 2003 Page 4 Council Member Aranowski speculated that such a concept might"open a pandora's box"for non- bargaining employees. 2004 Fire Pension Fund 2003 Expenditures $ 4,083,698 Fund # 701 2004 Expenditures $ 4,597,355 Asst. Fire Chief Rick Switalski provided a multi-page handout entitled "South Bend Firefighters Pension Fund Proposed Budget 2004" (copy attached). He noted that state law requires that Schedules 1,2 and 3 of the handout be given to the Council each year. He noted that there will be an increase in revenue of 6.3% or$243,916 for a total revenue amount for 2004 of $4,138,170 which sources of income being State Pension Relief Funds, general property taxes, auto excise taxes, commercial vehicle excise taxes, financial institution taxes, firefighters contributions, interest on Indiana's Public Deposit Insurance Fund and other miscellaneous revenue. Asst. Fire Chief Switalski noted that the firefighter 1st Class pension base will reflect a 5.17% increase; that insurance benefits will increase by $49,000 and the Deferred Retirement Option Plan (DROP) currently has four(4) persons in it who have opted to freeze their pension 12-36 months prior. The DROP program was created by Senate Bill No. 60. It requires a firefighter to have twenty (20) years of service and be at least 52 years of age to enter DROP. There are 66 firefighters who meet these requirements. By 2006, there will be 50 in the DROP program, with many waiting to see what the new firefighter's contract will be. DROP allows better budgeting. He noted that he has given Council President White a copy of the 2003 PERF figures. The South Bend Fire Department is listed as 56th in the state and if longevity is added the South Bend Fire Department is 70 of 107 cities and towns. Asst. Chief Switalski stated that the South Bend Fire Department is 2nd last of all of the 2nd class cities in Indiana. 2004 Police Pension Fund 2003 Expenditures $ 4,621,993 Fund # 702 2004 Expenditures $ 5,029,986 Mr. Pinckert noted that he is the new Police Pension Secretary. He provided a multi-page handout entitled "South Bend Police 2004 Pension Budget" (copy attached) which includes the required Schedules 1, 2 and 3. He noted that he has been on the Police Pension Board for the past five (5) years and will be replacing Paul Niezgodski. Mr. Pinckert stated that revenue for 2004 will go up by 7.3%or$284,257 with total revenue being $4,177,690 coming from State Pension Relief Funds, general property taxes, auto excise taxes, commercial vehicle excise taxes, financial institution taxes, Police officers contributions,interest of Indiana's Public Deposit Insurance Fund and miscellaneous revenue. Mr. Pinckert noted that 58 police officers are eligible to retire, with 13 being in the 1925 fund and the rest being in the 1977 fund. DROP has not been utilized as much in the Police Department as in the Fire Department. Those who have signed up all have 32 years or more of service. Many are waiting for the pension base to go up. Dr. Varner inquired if there is a shortfall in the accounts. Tom Skarbek stated that they are carrying the cash balance which covers the deficit. Rick 011ett noted that the State of Indiana provided a one-time infusion of extra monies. He does not