Police and Fire Retirement Board

Item 4. November 14, 2023 CENTER LINE POLICE & FIRE RETIREMENT COMMISSION MINUTES REGULAR MEETING October 10, 2023 Page 1 of 4 The regular meeting of the Center Line Police and Fire Retirement Commission was called to order at 3:00 p.m. by Chairperson Stys. Members Present: Richard Stys, Gregory Suma and Jorge Bermudez. Members Absent: None. Also Present: Thomas Michaud attorney for the Retirement Commission, Gregg Allgeier and Charles Schbert. AGENDA ITEM 2A. – Approval of the Agenda: A. Motion by Trustee Suma to approve the October 10, 2023 agenda was supported by Trustee Bermudez. AYES: 3 NAYS: None Motion carried 3 - 0. ABSENT: Pearl. AGENDA ITEM 3 – Public Comment Seeing there was no one in the audience this item was closed. AGENDA ITEM 4 – Approval of the minutes A. Approval of the Regular Meeting minutes held on September 12, 2023. Trustee Suma made the motion to approve the September 12, 2023 minutes was supported by Trustee Bermudez. AYES: 3 NAYS: None Motion carried 3 - 0. ABSENT: Pearl. AGENDA ITEM 5 – Remembrances of deceased Members and Beneficiaries: A. None. AGENDA ITEM 6 – Presentations:  Item 4. November 14, 2023 CENTER LINE POLICE & FIRE RETIREMENT COMMISSION MINUTES REGULAR MEETING October 10, 2023 Page 2 of 4 A. i. None. Trustee Gregory Pearl arrived at 3:10 p.m. AGENDA ITEM 7 - For Your Information: A. None. AGENDA ITEM 8 – Old Business: A. None. AGENDA ITEM 9 – New Business: A. Discussion on the calculation of the Final Average Compensation for Charles Schubert through July 5, 2023. Trustee Suma said in almost all circumstances an individual’s last year of employment is usually one of their best three years for their final average compensation (FAC) as it has the vacation and sick bank payouts included. In Mr. Schubert’s case it did not work out that way. The three years prior to his last year of employment were his three best years for his FAC. So, his lump sum payouts were not included. Mr. Michaud said he would like to generalize for discussion purpose instead of any specifics. Mr. Michaud said we need to look at the plan design and provisions as it relates to the FAC. Trustee Stys asked if Mr. Schubert was being paid lower or higher than what was anticipated. Mr. Allgeier said lower. Mr. Allgeier started off saying there is a good relationship between labor and management in Center Line but just disagrees about how the sick and vacation banks were applied. Mr. Schubert was given an estimate about a year and a half ago which included estimate sick and vacation payouts and an FAC of $ 132,000.00. Now a year and a half later his FAC is $ 126,000.00 on July 5, 2023. Mr. Schubert in his last year of employment he was on a disability and did not have full earnings reducing his last year of compensation not being included in his FAC. Mr. Allgeier feels Mr. Schubert’s final bank payouts should be included in his FAC years of 2019-2020, 2020-2021 and 2021- 2022 as of July 5th in each year. Mr. Allgeier referred and cited provisions in the Command Officers collective bargaining agreement. The employer is contending the payouts get added to the last year of employment as received and Mr. Allgeier’s position is they get added to the three years identified as the highest FAC. Mr. Allgeier is in agreement about the $ 400.00 monthly reduction by the PBGC rate of 2.25% that impacted Mr. Schubert pension as he took his contributions out of the retirement  Item 4. November 14, 2023 CENTER LINE POLICE & FIRE RETIREMENT COMMISSION MINUTES REGULAR MEETING October 10, 2023 Page 3 of 4 system in the annuity withdrawal provision. Mr. Michaud recommended the Commission to go in to a closed session to discuss this Matter under attorney client privilege. A motion by Trustee Suma to go into close session at 3:16 p.m. was seconded by Trustee Bermudez. Roll call: Suma yes, Bermudez yes, Pearl yes, and Stys yes. Meeting reconvened at 3:44 p.m. Mr. Michaud said the are two questions to be answered, one is, should the lump sick be included in the FAC if the participant does not use the last year in their FAC? and secondly, if the inclusion of lumpsum vacation payout should be added to the FAC. Trustee Suma made the motion to include the sick and vacation lump sum payments to the final average compensation was seconded by Trustee Pearl. AYES: 4 NAYS: None Motion carried 4 - 0. ABSENT: None. Mr. Allgeier thanked the Commission for its time and consideration. AGENDA ITEM 10 – Retirements: A. None. AGENDA ITEM 11 – Annuity Withdrawals: A. None. AGENDA ITEM 12 – Approval of Pension Figures: A. None. AGENDA ITEM 13 – Vouchers: A. September 25, 2023, pensions paid: Pay Report 519 ~ $ 128,342.68.  Item 4. November 14, 2023 CENTER LINE POLICE & FIRE RETIREMENT COMMISSION MINUTES REGULAR MEETING October 10, 2023 Page 4 of 4 A motion by Trustee Pearl pay the September 25, 2023 pensions was seconded by Trustee Bermudez. AYES: 4 NAYS: None Motion carried 4 - 0. ABSENT: None. 14. Commission Members Comments: Mr. Michaud just wanted to inform the Commission that there has been a rash of fraud in the area of direct deposit changes so the Commission should be cognizant of that. AGENDA ITEM 15 – Adjournment: As there was no further business to discuss, a motion by Trustee Suma and supported by Trustee Bermudez that the meeting be adjourned at 3:54 p.m. AYES: 4 NAYS: None Motion carried 4 - 0. ABSENT: None.