City of Pawtucket Pensions and OPEB Obligations Ad Hoc Committee

 

Minutes

 

NEXT MEETING:  To Be Determined

 

·         The meeting began at 10:05 AM.

 

·         Members in Attendance:  Ernest Almonte, Ronald Wunschel, David Moran, Mark Boisclair, Robert Neill, Peder Schaefer, Gary Sasse, John Galvin and Rosalie DaRosa

 

·         Advising Members in Attendance:  Joanna L’Heureux, Finance Director, and Melissa Malone

 

·         Mr. Almonte asked for approval of the previous minutes.  Mr. Boisclair made a motion to approve and Mr. Galvin seconded the motion.  All were in favor.

 

·         Mr. Almonte introduced Caitlyn Nangle from the City of Providence to go over what Providence prepared for OPEB and talk about obstacles, achievement, and suggestions.

 

·         Caitlyn’s agenda was based on things that were being designed in the City of Providence including:

 

§         Pre-65 Retirees which they are looking at Plan Design Changes.  They are looking to consolidate into something more simplified.  They are proposing different plans taking into consideration best practice, deductibles, Increased Co-pays, and prescription management.

§         Post-65 They are looking to piggy back on the state moving everyone to Medicare by July 1, 2012 except for Police and Fire which needs court approval.  They have broken it down by the following:

 

o        Transition of Current Retirees to Medicare

o        Medical Supplement Plan

o        Part D

o        Funding of HRA – Account Funding Only and Exchange Model

 

Caitlin stressed that it is a very challenging dealing with the retirees and would suggest utilizing extra resources to help through the process of sending out letters and setting up meetings to explain the process to retirees. (Caitlin’s presentation will be posted on the City of Pawtucket’s website under OPEB & Pension Obligations, dated 4/5/12.)

 

·         Mr. Almonte thanked Caitlin and then opened up to the Committee & attendees for questions and comments.

 

·         There were several retirees of both police and fire who shared their opposing thoughts of taking away from them the benefits they worked so hard for and were promised upon retirement.

 

·         Mr. Almonte stated it was not the intent of the City of Providence to look at only money savings.  He thanked all retirees for their service.  He went on to say that the City of Pawtucket has financial problems and must make changes.  We need to look at the Facts and Conditions.

 

·         Mr. Wunschel talked a little about Pawtucket’s Experience Study received from Larry Stone.  Some changes that will be made are retirement rates will be adjusted to use 27 years vs. various years.  Adjusting the Tables and Updating disability incidents.  Mr. Schaeffer asked Mr. Wunschel what the basis was for using a MA table in his assumptions for disability incidences. Mr. Wunschel stated he will get back to him.  Mr. Schaeffer then asked Mr. Wunschel who has the fiduciary responsibility in Pawtucket.  Mr. Wunschel noted that it was the Finance Director and the City Council

 

·         Mr. Almonte asked for all final submissions of scenarios to be given to him today.

 

·         Mr. Almonte asked Mr. Wunschel for a handbook for Police and Fire.  He asked that he review and validate for him and to send a copy to all committee members.  Mr. Almonte wants to incorporate this into the whole scenario for the City.

 

·         Ms. Malone had an update from the last meeting pertaining to fiduciary and education requirements.  She noted that training was provided and there is currently an RFP to have and Audit done.

 

·         Upon conclusion, Mr. Almonte asked if any committee member wanted to make any comments.

 

§         Mr. Moran thanked Mr. Almonte for taking the lead for the City of Pawtucket.

§         Mr. Boisclair shared with the committee that he wanted to put a few things on record before any recommendations were made to the Mayor. (See attached document from Mr. Boisclair.)

§         Mr. Neill thanked everyone and then asked that the labor unions should be taken into consideration and not forced into something.

§         Major Moreau, Chief Kelley and a few retirees all asked that consideration should be be taken into when coming up with the recommendations.  They were all promised by contract certain things that shouldn’t be taken away.  They also reiterated the fact that the City didn’t fund the Pension for years and that their deductions were made.

 

·         Mr. Almonte thanked everyone for their input and stated that an estimated 3 weeks from today a draft will be sent to all Committee members before the next meeting.

 

·         Mr. Almonte asked for a motion to adjourn.  Mr.Boisclair made a motion to adjourn and Mr. Galvin seconded the motion.  All were in favor and the meeting adjourned at 11:40.

 

Respectfully submitted,

 

 

 

Debra McDole

Finance Secretary