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Minutes from the Finance Committee meeting on January 19, 2006.
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Finance & Administration Committee Minutes
Thursday, January 19, 2006
4:00 p.m.
Members Present were: Darrel Dover, John Street, Jim Hargis, Harold Perrin, and Ann Williams. Councilman Alec Farmer was unable to attend.
PRESENTATION
Presentation by Mr. David Clark, LOPFI Executive Director: Mr. Clark discussed how money is put into the retirement account for the retirees on the old plan. He explained the City pays into the account each month and will be paying in at a rate of 25.61% of payroll for 2006. He stated that of that 25.61%, 10.67% is for the unfunded liability portion, which unfunded liabilities are common. He added the City is current and pays the bills in a timely manner, which is not the case with some other employer groups his company deals with. He noted that in 1997 the retirees on the old plan were given an increase to 75% of their salary, but a cost of living increase is not worked into their plans. The people covered by the LOPFI plans have a 3% cost of living increase worked into their benefits. He explained the City can add a cost of living increase, which the City Council would have to recommend. Discussion was held regarding how the state turn back and the millage tax pays for the retirement benefits. Mr. Dan Melton questioned the millage tax and where the money from that goes. Mr. Clark explained he has nothing to do with the millage tax; that it’s handled by the City. Councilman Dover motioned, seconded by Councilman Street, for LOPFI to evaluate the cost of an actuarial study that would determine what it would cost the City to add a 3% cost of living increase and a $100 a month for retirees on the old plan. All voted aye. Mr. Clark stated it would be after February 20 before he could get the cost back to Mr. Larry Flowers. It was also asked for Mr. Flowers to look into the millage tax to determine how much money is made from the tax and how much is paid to LOP...
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