Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pension Administration topic
No spam. Unsubscribe anytime.
Trustees review draft ordinance to add partial lump-sum option for pension plans
Summary
Board members reviewed a draft ordinance that would add a partial lump-sum benefit option across three plans, requested an actuarial impact statement, and asked staff to circulate identical language and provide member outreach and training before final action.
At a meeting of the Palatka Firefighters' Pension Board, trustees reviewed a draft ordinance to add a partial lump-sum option to plan benefit forms for three related pension plans.
Board member Shannon told trustees the draft “pretty simple, just adds in the lump sum options in with the other, optional benefit forms” and said she had asked staff (Patrick) to produce an actuarial impact statement confirming the change would have no cost to the plans.
Shannon said the ordinance text for the three plans is intended to be identical and that staff will send the draft to the city clerk once the actuarial statement is received. She also said Patrick will attend the next meeting to explain how the option would work.
Trustees raised member-protection and education concerns. One trustee asked whether the language would change benefits across the plans; Shannon replied, “It should not. ... The language that you see being added is exactly the same.” Another trustee urged caution about member training, noting that “a pension is your lifetime benefit” and that larger lump-sum elections — for example, 20% — have significant long-term effects.
Responding, trustees and staff agreed to prepare a cover letter and member outreach materials advising participants to consult tax and financial advisers before electing a lump sum. Staff said they would provide the draft ordinance that consolidates all three plan changes and a forthcoming actuarial impact statement for trustee review prior to submission to the city clerk and city council.
No formal vote was taken at the meeting; trustees instructed staff to obtain the actuarial statement, circulate the consolidated ordinance language, schedule Patrick to present at the next meeting, and draft member communications and training materials.
