08-25-04 Personnel & Finance - Laserfiche WebLink

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r � CommWE cRezo't of t 8ts.onnL and 9inanaE Commiltze of tI cSoutk Bend Common Couned Chief Switaiski noted that persons have 120 days to pay an EMS bill, and thereafter it is sent to collection with the collection agency taking 21%of the monies collected. Fire Pension (Fund#701) 2005 Revenue $4,373,799 2005 Expenditures $4,926,152 Chief Switaiski stated that the same state law governs pensions for police and fire. He provided the committee with a 15-page handout (copy attached) which addresses the 1937 fund, the 1977 fund, and the Deferred Retirement Option Plan (DROP). He noted that the city is required have enough money in the fund to cover everyone who is eligible to retire. For all firefighters hired since 1977, the city is required to pay 21% or $8,400 per firefigher. The current state law which provides for a 50%reimbursement of costs expires in 2007. Chief Switalski noted that the fire pension board trustees are paid, that that a nominal increase is proposed since an increase has not been made since 1992. City Controller Rick 011et is an unpaid member of the board, with the board meeting at 7 am. A death benefit amount of $9,000 is also budgeted under this fund. This budget also reflects the costs for insurance for retirees. The fire department is anticipated more firefighters to enter the DROP program early next January. Chief Switalski noted that 42 of the 244 firefighters on the department could retire and receive benefits. It was noted that in July of this year the fire department lost three (3) firefighters. Firefighters who leave the department before they retire are paid back the 6% which they have paid into the fund. The City's 21%is not paid back in such circumstances. Rick 011ett noted that $2.7 million dollars will disappear if the state law addressing pension reimbursement is not continued. Dr. Varner noted that all Indiana cities and towns with a paid fire and/or police department would be affected by that state law. He questioned whether the City Administration was suggesting that a reserve account should be established. Mr. 011ett stated that such a reserve account would impact capital expenditures. Council Member Dieter thanked the Fire Administration for an excellent presentation. At approximately 5:55 pm the Committee then turned to the police department proposals. Police Pension (Fund#702) 2005 Revenue $4,475,150 2005 Expenditures $5,495,966 Director of Fiscal Management for the Police Department Donald E. Pinckert made the presentation. He noted that the fund is projected to increase by 9.3% which is down from the 2004 increase which was 11.2%. He noted that the Police Pension Board is not permitted to be paid under current state law. The projected deficit can be covered by monies in the reserve Personnel and Finance Committee Meeting of August 25,2004 Page 7