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®CITY OF SOUTH BEND I OFFICE OFTHE CLERK
<br /> in a book and then we dust it off occasionally. We actively work with that strategic plan by
<br /> checking off boxes with those tactical items of which we want to accomplish. We continue to work
<br /> on that as time goes by.
<br /> Gerard Ellis,Captain for the South Bend Fire Department with offices located at 1222 S.Michigan
<br /> Street, stated, I serve as the Pension Secretary for the Fire Fighters Pension Board. Since we do
<br /> have a few new Council Members, I will give a brief history. We have basically three (3) funds
<br /> within the Fire Fighter's Pension Fund. The 1977 fund members, such as myself and the rest of
<br /> the Fire Fighters in the room, we are a State obligation. So once we retire, our payments come
<br /> from the State.I want to focus on the other two(2)funds which is the thirty-seven(37)fund,which
<br /> I will refer to as the old fund and the pink section there in the middle (referencing a slide of a
<br /> presentation which is available in the City Clerk's Office) are converters. These are people who
<br /> converted from the 1937 to the seventy-seven(77)fund but their fiscal obligation still comes from
<br /> the City. Currently, there are one hundred and forty-nine (149) retired Fire Fighters, widows and
<br /> dependents in those two (2) funds. So, once a month when they receive their pension check,
<br /> between those two (2) funds,there are just under one hundred and fifty(15 0)pensioners.
<br /> He continued,The way the revenue comes in for those two(2)funds is called pension relief.Twice
<br /> a year, there is a payment that comes from the State of Indiana and it is based off projections of
<br /> payments from the previous year. So, this ye, we are looking at a pension relief payment of
<br /> around$4.6 million. They have a system of how they calculate that. It is based on what we paid in
<br /> the previous year and then they take into consideration if there are any DROP payments,which is
<br /> a program option for retirees where, once they leave, they can freeze their pay at a certain rate. It
<br /> also takes into consideration a death benefit that is paid to the retiree,widow or dependent. So they
<br /> combine that and that facilitates the revenue for this year.
<br /> He went on, The expenses in the fund have been fixed for quite a few years. There is the Pension
<br /> Secretary pay and then some other minor line-items such as postage and things like that. If you
<br /> look at the chart(referencing a slide in the presentation)and look at each fund,it shows the average
<br /> age for each retiree,widow and dependents, as well as the number of years they were in to receive
<br /> the pension benefit. As I mentioned, there are one hundred and forty-nine (149) currently on the
<br /> pension payroll.
<br /> Committee Chair White asked, Do we have any Fire Fighters who opted for the early DROP
<br /> Program?
<br /> Captain Ellis replied, Currently, on active duty, we have two (2) active members that, once they
<br /> retire, one (1) will be in the thirty-seven (37) fund and one (1) will be in the convertee fund, but
<br /> only one (1) member is DROP eligible. And that amount, whatever that DROP option would be,
<br /> would be reimbursable the following year by the State. But there are only two (2) left.
<br /> Councilmember Teshka asked, Could you explain the DROP Program?
<br /> Captain Ellis replied, So the DROP was started back in 2007. So for example, I am age fifty-two
<br /> (52) and I have twenty (20) years on the job, next ye , and I want to sign up for a three (3) year
<br /> DROP, so next ye I would sign and it locks my pension base,in 2019,and then in three(3)years,
<br /> the State would pay me a DROP estimate. Currently, for my pay rate, it would be around $90,000
<br /> EXCELLENCE I ACCOUNTABILITY ( INNOVATION I INCLUSION I EMPOWERMENT
<br /> 455 County-City Building 227W.Jefferson BvldI South Bend,Indiana 466011p574.235.92211f574.235.91731TTD574.235.5567 www.southbendin.gov
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