Trustees weigh changing 5‑year vesting rule for buying pension multiplier; counsel says ordinance amendment and bargaining may be needed

Trustees questioned why the local ordinance requires members to be vested for five years before they can purchase the higher multiplier (the buy‑up), noting that allowing purchases earlier could make the option cheaper for new hires and potentially encourage retention.

Pedro, the board attorney, said he had reviewed the plan documents and that the five‑year requirement is contained in the Edgewater ordinance (section 4.08). He said an amendment to the ordinance would be the mechanism to change the rule and that some changes to pension benefits may be a mandatory subject of collective bargaining with the firefighters’ union. "To change it, we would just need to amend the ordinance, and, obviously, there would be an impact statement," Pedro said, adding that the actuary could prepare a cost estimate.

Trustees discussed the practical concerns: if a member buys a multiplier but leaves before vesting, the purchased amounts may be refunded or handled according to plan rules; board members emphasized that any change should be accompanied by clear disclosure to members about financial risks and refund mechanics.

Separately, trustees asked how the 300 hours of overtime used in pension calculations is being recorded and whether built‑in overtime is included; Pedro said payroll/finance would need to explain coding and that Foster & Foster (the actuary) gets payroll data from finance for pensionable overtime calculations.

The board asked staff and counsel to investigate whether the 5‑year requirement can be revised administratively, whether bargaining is required, and to request an actuary impact statement if a change is to be pursued.