Police and Fire Pension Fund Board

Summary

Meeting Overview

The Lexington Fayette Urban County Government Policemen's and Fire Fighters' Retirement Fund held a meeting on January 10, 2018, at 9:00 a.m. in the Council Chambers. The meeting addressed 12 agenda items, during which the board took 9 motions and votes and heard 2 public comments.

The board approved several key financial and personnel matters, including the Treasurer's Report, minutes from July through December 2017, and January disbursements. Personnel actions approved included ghost time purchases for Aaron Adams and Christopher Holliday, and military payback requests for Matthew Williams, Kelven Eden, Danny Page, Jeffrey Presley, William Rieker, and Matthew Silver. The board also approved retirements, disabilities, and resignations. A request for rehearing from Kristopher Branham was deferred to a later date.

In addition to action items, the board received informational updates on an IRS determination letter, a letter from the city regarding its stance on employer contribution rates related to a firefighters' lawsuit, tributes, sub-committee updates, and other informational matters.

Attendance

The following individuals were present at the meeting on January 10, 2018:

• John
• Roger
• Dave
• Bill
• Kevin O. MacDonald
• Tommy Puckett
• Larry Kinnard
• Susan Combs
• Omara
• Treve
• Rockley

No attendees were recorded as absent or late.

Votes and Decisions

The following motions were voted on and passed by voice vote during the meeting:

• Approve transfer authorization letter for payroll 11:02 — Passed

• Approve minutes for July, September, October, November, and December 2017 11:32 — Passed

• Approve ghost time purchases for Aaron Adams and Christopher Holliday 12:04 — Passed

• Approve military payback for Matthew Williams, Kelven Eden, Danny Page, Jeffrey Presley, William Rieker, and Matthew Silver 13:23 — Passed

• Approve request for rehearing for Kristopher Branham and set for March 14, 2018 13:59 — Passed

• Approve disbursements for January 2018 34:06 — Passed

• Approve service retirements for police officers 34:38 — Passed

• Approve service retirements for fire department members 35:43 — Passed

• Motion to adjourn 39:30 — Passed

All votes were conducted by voice vote with no recorded abstentions.

Budget and Financial Actions

The following financial actions were approved during the January 10, 2018 meeting:

Appropriations - Payroll disbursement: $5,239,731.90

Contracts - Cavanaugh Macdonald actuary services: $12,144.00 - Wallingford Law (IRS determination): $360.00

Purchases - James Owen IME: $600.00 - Kentucky Bone & Joint IME: $1,200.00

Public Comment

Two members of the public addressed the board regarding officer retirements.

Treve 37:53 spoke about the retirement of officers, asking whether the retirements would have been affected if the board had voted no on the matter. Treve also noted the significant loss of service experience across the police and fire departments.

Rockley 39:30 addressed the total years of service lost due to the retirements. Rockley confirmed that across the police and fire departments combined, 428 years of service experience would be lost. Rockley also expressed gratitude for the contributions made by the retiring officers.

Contested Items

City's Contribution Rate for Firefighter Lawsuit Settlement

Board members divided on the appropriate contribution rate the city should make toward a firefighter lawsuit settlement. The dispute centered on whether the city should have contributed at historical rates rather than the current rate being proposed.

The core concern raised during debate involved the financial implications of the rate decision. Board members expressed worry about potential unfunded liabilities that could result from the chosen contribution level, as well as missed investment gains that might occur depending on the payment structure selected.

To better understand the fiscal impact, a request was made for a detailed breakdown of payments organized by fiscal year. This information was sought to clarify the long-term financial obligations and timeline associated with the settlement under the proposed contribution rate.

The item resulted in a split vote among board members, indicating that consensus could not be reached on the appropriate contribution rate for the city.

Treasurer's Report – Action Required

10:00

O'Meara presented the Treasurer's Report, which included a comprehensive review of the organization's financial status. The report covered fund balances, net assets, financial activity, and bank statements.

The report was approved by voice vote.

Minutes for July, September, October, November and December, 2017

The minutes from July, September, October, November, and December 2017 were presented for approval 11:32.

No discussion took place regarding the minutes. The body proceeded directly to a voice vote on their approval.

Outcome: The minutes were approved by voice vote.

Ghost time purchases for Aaron Adams and Christopher Holliday

12:04

The board considered and approved a motion to purchase ghost time for Aaron Adams and Christopher Holliday. Susan Combs presented this agenda item.

No substantive discussion was recorded beyond the motion and vote. The board approved the purchase without documented debate or concerns raised during the meeting.

Military payback for Matthew Williams, Kelven Eden, Danny Page, Jeffrey Presley, William Rieker and Matthew Silver

13:23

The board considered military payback requests for six individuals: Matthew Williams, Kelven Eden, Danny Page, Jeffrey Presley, William Rieker, and Matthew Silver.

Susan Combs presented this agenda item. The board approved the military payback requests by voice vote.

Request for Rehearing for Kristopher Branham

13:59

The board considered a request for rehearing for Kristopher Branham. Susan Combs presented this agenda item to the board.

The board voted to defer the request to the March 14, 2018 meeting. A motion to approve and set the date for the deferred hearing passed by voice vote.

IRS determination letter

The IRS issued a favorable determination letter confirming the fund's good standing. 14:35

This item was presented for informational purposes only, with no vote required.

Update on letter from city regarding stance on ER contribution rate from FF laws

15:07

A letter from Wyatt Tarrant & Combs was presented regarding the city's position on employer contribution rates related to firefighter laws. The letter stated that the city denied liability and indicated it had paid contributions at the current rate.

The presentation prompted a contentious discussion among board members about the appropriate contribution rates. A key point of contention was whether contributions should have been made at historical rates rather than the current rate at which the city had been paying.

Key speakers in this discussion included: - Roger - Larry Kinnard - Bill - Kevin O. MacDonald

Outcome:

The board requested a detailed breakdown of payments organized by fiscal year to better understand the contribution history and amounts paid over time. This informational item did not result in an immediate decision but rather prompted a request for additional documentation to support further analysis of the contribution rate issue.

Disbursements for January

34:06

The body approved disbursements totaling $5,254,035.90 by voice vote. No discussion or debate regarding the disbursements was documented in the available meeting materials.

Retirements/Disabilities/Resignations

34:38

The board approved the retirements of multiple police and fire department members during this agenda item. Speakers Treve and Rockley presented and discussed the retirements.

The board acknowledged the significant service records of the retiring members, noting that their combined service totaled over 428 years. The board expressed condolences to those retiring from the department.

The retirements were approved by the board.

Tributes

36:47

The board paid tribute to Roberta Dulin, the widow of Bill Dulin, who passed away on December 3, 2017. This was presented as an informational item during the meeting.

Sub-Committee Updates

37:19

Sub-committee updates were presented during this portion of the meeting. Most updates were deferred due to the absence of Tommy Puckett. Larry Kinnard provided a brief update on the organizational subcommittee in Puckett's absence.

No additional details regarding specific concerns, debates, or outcomes beyond the deferral were documented for this agenda item.

Informational Matters

No formal informational matters were presented during this agenda item. The discussion was limited to public comments regarding retirements, which were addressed as part of the informational segment rather than as separate formal presentations 37:53.