SUBJECT/RECOMMENDATION:
Title
Approve pension plan administrative expenditures for fiscal year 2024 totaling a not-to-exceed amount of $359,400.
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 2024 reflect a $32,600, or 8.3%, decrease over the approved fiscal 2023 expenditures. This net decrease results primarily from a reduction in pension attorney costs, partially offset by an increase in costs of employee physicals and increased costs of Human Resources and Finance administrative staff support.
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. An increased volume of physicals is forecast due to 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 City Attorney’s Office provides primary in-house legal representation for the plan, while the firm of Klausner, Kaufman, Jensen and Levinson currently serves as the Plan’s outside counsel. The firm of Banker, Lopez, Gassler provides outside legal services for 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)