1975-10-22 Regular Meeting - Laserfiche WebLink

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• 0 0 Special Meeting 10/24/75 0 2 2. JOINT MEETING WITH CITY COMMISSION, FIREMEN'S PENSION (Continued) Mr. May explained that by law it was necessary to have an actuary study made before pension benefits could be increased. The purpose of the study is to determine if the City is actuarily sound to give the proposed increase. Mr. May further stated that La Porte was unique in that ordinarily a study was made to determine what amount could be paid; but La Porte had elected to increase the benefits to a $50.00 a month flat fee to the pensioners or benefactors. The information needed for the study would be provided on all volunteers, those already retired or their benefactors and also those who had completed their 20 years service, but not yet old enough to retire. There was a lengthy discussion regarding the possible amount of funds needed to be considered actuarily sound. It was determined that the $10,000.00 amount budgeted would not be nearly enough. Advance funding is Mr. May was of the whether the amount or even more. necessary rather than pay as you go. opinion that a study was necessary to determine would be $14,000.00, $15,000.00, $18,000.00, FEE TO BE CHARGED - It was determined that a study could be made by Rudd and Wisdom for an amount not to exceed $700.00 which would include a formal presentation in Austin, presented to as many persons as wanted to attend. The study would be started upon receipt of the needed information. Ordinarily a study was completed in 90 days. However, this study would be rushed and completed as soon as possible. Being located in Austin, Mr. May would have close contact with the State Pension Commissioner. Mr. May informed the Commission that he had brought the necessary forms to allow the necessary work to be done immediately, if the study was authorized. A brief question and answer session followed.