Minutes 11/10/1987 - Laserfiche WebLink

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,507 November 10, 1987 "As you requested, I have had the proposals that were submitted by the Chairman of the Retired Firefighters and Police Officers Association evaluated and the staff, repgrt, which was prepared by the Department of Finance, is enclosed. TWo separate proposals were submitted by Mr. Wells and they represen~ two'options for adjusting the pension increases that were grante'd to retirees in past years. Mr. Wells' proposals specifi~aily-'address-ed only fire and police retirees, however, the staff report includes ~information for other City~'ret-irees as well. I feel that ft would be unfair to retroactively ~adj~s~ pension increases for some of our employees without doing the same for all of them. Therefore, I recommend that Council not grant pension increases for fire and police retirees without also providing the same increases to the former Portsmouth Supplemental Retirement System retirees, who are now in the Virginia Supplemental Retirement System (VSRS). The first of the proposals would bring pension levels up to what they would be now if annual increases had been provided since 1976 equal to the Consumer Price Index (CPI) increase. The cost of this proposal is estimated to be over S3.5 miltion~ This proposal would be extremely favorable to the retirees in that it would'r~pr~sent ihcreases far in excess of those received by either City employees or VSRS retirees during the same period of time. I do not recommend that City Council consider this proposal. The second proposal which includes a 5% annual cap; has an estimated CoSt of $1,043,044. If Council'were~to adopt this proposal, our normal funding~method would require~this -amount to be paid into the retirement system in the year that the-increases were granted. While this is the soundest actuarial method of funding, there is no legal requirement (other than possibly the City Code, which the Council can change) to fully fund~the incre~ih %he year'i~ is granted. The cost could be spread over fut~re"y~rs.~ By deferrihg the cost to future yeers, the minimum that coul'd' be recomme~nde~ to be funded in -the year-~f--adoption would be the first year estimated cost of $153,977. Regardless of whatever action the City Coun~cil might wish to take on this matter, I recommend that no action be taken at this time. If Council wishes to consider this proposal further, I recommend that it be addressed as a matter for consideration in the budget process for the next annual operating bud-get." Councilman Simpson stated that everything possible should be done to catch-:up with other retirees some years ~ago, and that the City Manager_look into the ~atter and a report be furnished. Motion of Mr. Gray and-seconded by Mrs. Webb,~ to. receive the letter from the City Manager and it be considered in the budget process Eot next year, and was adopted by unanimous vo'te. NEW BUSINESS 87-485 - Councilwoman Lucas offered the following nominations for appointments to the following Boards/Commissions: ~'