SUBJECT/RECOMMENDATION:
Title
Approve pension plan administrative expenditures for fiscal year 2025 totaling not-to-exceed $369,900.00.
Body
SUMMARY:
The Employees’ Pension Plan does not have a legally required budget. However, all expenditures must be approved by the Trustees. The following are routine administrative expenditures that staff is requesting approval of for administrative efficiency.
The recommended expenditures for fiscal year 2025 reflect a $10,500, or 2.9%, increase over the approved fiscal 2024 expenditures. This net increase results primarily from increased costs of Finance and Human Resources administrative staff support, partially offset by a decrease in volume of projected employee physicals and related costs.
Training and travel are the estimated costs of pension training and related travel, including fiduciary training for the Trustees and Pension Advisory Committee (PAC) members. This is a not-to-exceed amount given uncertainty regarding the number of Trustees and PAC members that may elect to pursue training.
Expenditures for physicals are per the pension ordinance requirement that new employees must pass a comprehensive physical exam to be accepted into the pension plan. A decreased volume of physicals is forecast due to reduced staff turnover and projected new hires.
Reimbursements to the General Fund and Central Insurance Fund are for the cost of oversight and administration of the Plan. The reimbursements are for services provided by Human Resources, Payroll, and Finance personnel, along with related operating expenditures.
The law firm of Klausner, Kaufman, Jensen and Levinson currently represents the Pension plan in certain matters, while the firm of Banker, Lopez, Gassler currently advocates for City administration in formal PAC disability pension claims. Annual attorney fees also include medical bills for medical services authorized by the PAC.
Money manager, performance measurement consulting, custodial/safekeeping, and actuary fees (other than actuary hourly consulting and special projects) are all governed by contracts separately approved by the Trustees and are not included in this agenda item total.
APPROPRIATION CODE AND AMOUNT:
6467410-5xxxxx (various pension plan expenditure codes)
STRATEGIC PRIORITY:
Attract and retain top-quality personnel through the maintenance of a competitive compensation and benefits program.