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HomeMy WebLinkAbout05-22-89 Personnel & Finance Q iunmtttrr â– rpnrt PERSONNEL AND FINANCE COMMITTEE Wn #IC finnuiuin &u ttl at tilt (gnu of*will Snit The May 22, 1989 meeting of the Personnal and Finance Committee was called to order by its Chair Person Council Member John Voorde at 4:10 p.m. in the Council informal meeting room. Persons in attendance included Council Members: Luecke, Duda, Niezgodski, Puzzello, Slavinskas, Zakrzewski, Coleman, Voorde, Soderberg, Chief Taylor, Rick Switalski, John Leisenring, James Wensits, Eunice B. Smith, Marian Tubbs, Janet C. Fortin, Agnes Cunningham, Rose Gadacz, Sophia Laskowski, Annette Olawski, Elinor Andrzewjewski, Rita Hoffman, members of the news media, and Kathleen Cekanski- Farrand. Council Member Voorde noted that the purpose of the meeting was to discuss the widows pension for the police and fire departments. He noted that approximately thirty days ago information was received from Rick Switalski which in turn sent to members of the Council. It was noted that a second memorandum was addressed to Council President Ann Puzzello which was also duplicated for the entire Council. Council Member Vorrde noted that Elinor Andrzejewski, a widow of a former Fire Chief, had contacted him and several other council members with regard to a change in the widow pension system. Council Member Voorde noted that many of the members of the Council were sympathetic to the situation and believed that it should be addressed in some form for the 1989 budget process. Elinor Andrzejewski then introduced all widows who were present. She noted that Marian Tubbs had provided much of the information for the widows. Rick Switalski stated that in 1988 the state law changed which provided that 55% of the monthly benefit would be paid for widows who became widows after January 1, 1989. This state law also contained a proviso that it would not be less than 35% of the annual base of the 1st class firefighter. He sited Mishawaka having a 40% limit, and that the City of Elkhart was currently considering a 40% basis. Rick Switalski further noted that the cost in new dollars for each 5% would be approximately $66,500.00. He noted that there are 55 widows from the Fire Department and 67 widows from the Police Department and that the cost between the police and fire in new dollars would be approximately $244, 000.00. He further noted that the 55% was of the monthly benefit under the new state law with not less than 35% of the salaried yearly basis being the guidelines. Under the 1977 act a provision allowing 60% of the monthly benefits would be paid and there are four widows from the Fire Department in that category. Personnel and Finance Committee Page 2 Elinor Andrzejewski requested a 10% increase for 1990 and a 5% increase for each year thereafter. Rick Switalski clarified the fact of the 55% being based on a monthly benefit whereas the 30% was based on the yearly salary. Council Member Slavinskas questioned whether under the acts of 1937 the number of years were factored into the total amount of benefit. It was noted that they were not. For example Mrs. Tubbs husband died in September of 1988 and had well over 20 years of service on the department. Her benefits went from $1,169 to $474. 00. It was noted that there was no grandfathering in the state law. Council Member Slavinskas also noted that this is a unique group of individuals since they received no social security checks and times and life styles have changed considerably. He voiced support of the 40% proposal. It was noted that budgets are due in the Controller's Office on June 5, 1989. Council Member Voorde noted that the proposal should be looked into further and Rick Switalski confirmed that the cost would be approximately $66,500. 00 for each 5% increase increment. It was noted that 66 firefighters have been budgeted in the 1989 budget as retirees even though 12 to 15 firefighters usually retire on an annual basis. Council President Puzzello voiced support of increasing the percentage to a 40% basis. John Leisenring stated that he would look into the matter. Following favorable discussion, Council Member Luecke made a motion seconded by Council Member Puzzello that Rick Switalski incorporate into the budget for 1990 a 40% figure for the widows and that Tom Deka in the Police Department include a 40% figure in his budget preparation for the police officers widows. The motion passed. There being no further business to come before the committee, the meeting was adjourned at 4:40 p.m. Respectfully submitted, Council Member John Voorde, Chair Person Personnel and Finance Committee JV:srk