At the regularly scheduled meeting of the Fire and Police Pension Fund held on the 16th day of April 2015, President Chris Willmore presided. The meeting was held at the Pension Office, 6009 John Douglass Drive, Chattanooga, TN 37421.
The meeting convened at 0900 hours with board members Chris Willmore, Craig Joel, Mark Coffman, Jerome Halbert, Phillip McClain, Kelly Simmons, Brent Goldberg, and Less Lee. Attorney Bill Robinson was also present.
Motion by Phillip McClain and seconded by Jerome Halbert to approve the minutes from the April 9, 2015 meeting. Motion carried unanimously.
Todd Dockery, Madeline Greene, Starla Benjamin of City Human Resources and Chief Chris Adams of the Fire Department appeared before the Board to discuss National Fire Protection Agency Guideline 1582 and a 60 day period of Family Medical Leave that has been implemented for two active duty firefighters for the perceived purpose to finding other employment within the City. Todd Dockery explained that the 60-day rule was implemented because of a unique situation with a single Firefighter He stated they would no longer allow the 60 days of unpaid Family Medical Leave to avoid any future inconsistencies and concerns. The Board thanked him for that clarification.
Chief Adams stated that the City had not officially adopted the NFPA 1582 Guidelines. However the Fire Department has been “going by [NFPA] guideline of physicals in 1582” since 1999. A discussion ensued. All parties agreed that being found not fit for duty and being disabled are not necessarily the same thing. The City only determines if a member is not-fit-for-duty, they do not determine if a member is disabled. Chief Adams stated they are working on organizing a joint task force to discuss and develop fit for duty standards, similar to the NFPA 1582 guidelines with the different groups involved. Todd and Brent Goldberg assured the Board that they would be part of the task force. The Board thanked Chief Adams and the representatives of the Human Resources Dept. for the information.
Jeffrey Williams of Segal Company presented the 5-year Experience Study to the Board. Segal recommended assumption changes to be implemented with the January 2015 Valuation. Updating the mortality tables to bring them more in line with the Fund’s experience represented the greatest adjustment in the required City contribution rate. Motion by Craig Joel and seconded by Phillip McClain to accept Segal’s recommended actuarial assumptions. Motion carried unanimously. Mr. Williams presented multiple scenarios for the Board’s consideration. After discussion of the scenarios, Less Lee made a motion to adopt scenario 5 in the report based on using the lower actuarially Assumed Rate of Return of 7.5%. Motion failed for lack of a second. Motion by Craig Joel and seconded by Phillip McClain to adopt scenario 2 in the Experience Study report. Motion carried. Mr. Williams reminded the Board that under the new State law, the Fund will be required to use Level Dollar Amortization beginning January 1, 2021, which will require increased contributions in future years.
The Board discussed the Funding Policy and changes recommended by the office of the TN Comptroller of the Treasury. The recommendations and revisions will be implemented as discussed and the Funding Policy is expected be submitted for final approval at the next regularly scheduled Board meeting.
Attorney Robinson provided an update for the Dodd lawsuit.
Motion by Mark Coffman and seconded by Craig Joel to approve the following membership changes:
REMOVE FROM THE ROLLS:
Retired Fire Captain Robert J. Carlton, effective 04/30/2015, died 03/12/2015 (2-412)
PAY DEATH BENEFITS:
Brenda (Carlton) Varner and Michele (Carlton) Cunnynham, designated co-beneficiaries of Robert J. Carlton (2-412)
Motion carried unanimously.
The Board reviewed and discussed the bills.
Motion by Phillip McClain and seconded by Jerome Halbert to adjourn at 1146 hours. Motion carried unanimously.
