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City manager raises misuse-of-funds concerns at Police Pension Board; retirees push back, call for audit
Summary
City management told the commission it found potential misuse of Police Pension Trust Fund dollars tied to administrative expenses and an actuarial study. Retired officers and plan stakeholders disputed some claims and urged transparency; commissioners suggested a forensic review or full records disclosure.
City management on Tuesday told the Sunrise City Commission it has serious concerns about the way the Police Pension Board and its plan administrator have used pension trust fund dollars, including payment for an actuarial study related to benefit enhancements and leasing and office expenses the manager described as benefiting a private business.
In a lengthy presentation, the city manager raised multiple issues: an actuarial report the manager said the Police Pension Board funded to analyze proposed pension benefits for active officers; a leased office space paid by the pension fund that the manager said the plan administrator used to run a separate private business; redundant secretarial and data-entry contracts; multiple credit cards tied to plan accounts; and repeated annual 5% cost-of-living increases for plan contractors that the manager said exceeded increases for city retirees.
"The funding of this study is a misuse of pension trust fund dollars," the city manager told the commission. He said the $4,647 actuarial study was paid for by the pension trust fund without public discussion and that the pension board's core fiduciary duty is to administer the trust for the exclusive benefit of participants.
The presentation emphasized two legal points: the statutory composition of police pension boards and limits on "dual office holding." The manager said the board historically selected an active officer as the fifth trustee, which he said runs afoul of dual office-holding prohibitions and attorney-general guidance; staff subsequently worked with outside counsel to revise city code to comply with state statute.
No action required
The item on the agenda was informational; the commission did not vote on pension governance or administration. The city manager said he would make the records he has obtained available on request, but that his office has not yet received all requested records from the plan administrator. He characterized the plan administrator's refusal to provide records as a violation of Florida public records law.
Retiree responses and public comment
Several retired Sunrise police officers and former pension trustees spoke during the public comment portion, calling the presentation a surprise and defending the plan administrator and the long-standing operation of the pension. Retired officers asserted that the plan has performed well and questioned why the city had not intervened earlier if there were problems. One retired sergeant, Neil Ostrander, identified himself as the husband of a long-term board secretary and told the commission his family would not be "financially destitute" if the secretary's position changed.
Other commenters urged an independent forensic examination. Former department captain Pete Eckert, who also testified, recommended pursuing a full, outside investigation "so then this commission ... can make a much better informed decision," and several commissioners suggested that a forensic audit or use of the inspector general to collect records would be an appropriate next step.
Commission response
Commissioners noted the seriousness of the allegations and urged prompt transparency and record production. Deputy Mayor Neil C. Kirch said he supported a forensic audit to protect pension members. Mayor Michael J. Ryan urged the immediate production of any missing records and said that good governance and accountability do not conflict with respecting retirees.
Next steps
Because the pension board is an independent body under state law, the city said it has limited direct authority to change board composition beyond statutory requirements. City staff said they would continue to gather public records, work with legal counsel, and coordinate with the pension board as required. Several commissioners said they expect the board to consider either hiring an independent auditor or allowing the inspector general (or other independent investigator) to examine records and transactions.
Speakers cited in this article include the city manager (item presenter), retiree and former police Captain Pete Eckert, retired sergeant Neil Ostrander, Deputy Mayor Neil C. Kirch, Mayor Michael J. Ryan, Commissioner Joseph A. Scudo, and other retirees who spoke during the public comment period.
