MINUTES OF THE SPECIAL BOARD OF TRUSTEES MEETING
July 10, 2012
CALL TO ORDER
President John Jacobsen called the meeting of the Board of Trustees of the Los Angeles Firemen’s Relief Association to order at 9:14 a.m. This special Board meeting had been noticed on June 21, 2012.
ROLL CALL
MEMBERS PRESENT:
- John Jacobsen, President
- Juan Albarran, Vice President
- Andrew Kuljis, Secretary
- Trustee James Coburn
- Trustee Jeff Cawdrey
- Trustee Chris Hart
- Trustee Doak Smith
- Trustee Robert Steinbacher
- Trustee Francisco Hernandez
- Trustee Michael Overholser
- Trustee Steven Domanski
- Trustee Rick Godinez
- Trustee Gary Matsubara
- Trustee Kurt Stabel
- Trustee Mark Akahoshi
- Trustee David Peters
- Trustee David Ortiz
- Trustee Barry Hedberg
- Trustee Tim Larson
- David Ned Smith – Executive Director
- Todd Layfer – Controller
MEMBERS ABSENT:
- Trustee Gene Bednarchik (Excused)
- Trustee David Lowe (Excused)
- Trustee Chris Stine (Excused)
- Trustee Steve Tufts (Excused)
- Trustee Craig White (Excused)
GUESTS:
- Roger Burton, Healthcare Actuaries
- Dawna Gray, Bradawn Inc.
John Jacobsen informed the Board that there would be two topics of discussion for the Special Board meeting agenda. He stated that the first topic of discussion would be the Relief Benefit Study prepared and presented by Roger Burton of Healthcare Actuaries and the second topic would be Mr. Burton’s analysis of the seven year requirement for the Medical Plan.
RELIEF BENEFIT STUDY
Todd Layfer briefly commented that he had worked with Roger Burton in providing him with census data of the membership and the history of benefits paid to members over the last several years. He indicated that they made projections and best guess scenarios based on current circumstances and assumptions.
Roger Burton presented an overview of the study and reviewed the investment balances by fund. He then reviewed the results of the study and addressed the assumptions that went into the study. The report showed projected future benefit payout for the Relief Fund, L & A and the WODFF. It also gave five-year projections on both revenue and how revenue compared to expenses.
After review of the study, it was the Board’s opinion to not add or increase benefits at this time. The report was provided to the Relief committee for their use. After evaluation, the Relief committee has the option of recommending changes to benefits if they feel they are needed and affordable.
Medical Plan 7-year Stipulation Analysis
Jacobsen informed the Board that this analysis was in regards to the requirement that a member be in the PPO Medical Plan for seven years while they are active firemen prior to retiring in order to have the best retiree premium rate. Those who retire without seven years in the PPO Medical plan will be charged a higher premium of approximately 200% until they reach the seven year requirement.
Dawna and Roger reviewed the best case and the worst-case scenarios for modifying the 7-year requirement. She also reviewed the assumptions and discussed healthcare reform and how it would impact the Association.
After review of the analysis, it was the Board’s opinion to refer the issue back to the Medical Committee for further review.
ADJOURNMENT
The Special Board of Trustees meeting adjourned at 12:16pm.
John Jacobsen, President
