12/18/2012 Resolutions 2012-367 (A) Resolution #2012-367 (A) was postponed to the January 15, 2013 Study Session
by,the'City Council at their December 18, 2012 meeting.
RESOLUTION 2012-367 (A)
WHEREAS, Article 10 of Chapter 16 of the Nebraska Revised Statutes sets forth
the laws governing the pensions of Police Officers of First Class Cities; and
WHEREAS, Section 16-1007(1) of the Nebraska Revised Statutes requires the
City of Grand Island to provide pension benefits to retired police officers "in the form of a
straight life annuity or any optional form of annuity benefit established by the retirement
committee"; and
WHEREAS, beginning in 2005 the Police Pension Committee stopped
calculating police pension benefits based on a straight life annuity and began calculating said
benefits based on a joint life annuity; and
WHEREAS, Section 16-1014 of the Nebraska Revised Statutes states in reference
to police pension benefits, "[t]he governing body of the city shall continue to be responsible for
the general administration of such retirement system unless specific functions or all functions
with regard to the administration of the retirement system are delegated, by ordinance, to the
retirement committee."; and
WHEREAS, the Grand Island City Council as the governing body of the City of
Grand Island has never approved the calculation of police retirement benefits based on a joint life
annuity nor has delegated that authority or function to the Police Pension Committee by
ordinance; and
WHEREAS, the Police Pension Committee calculated the police pension benefits
of Sergeant Kerry Cole using a joint life annuity; and
WHEREAS, on November 13, 2012 the Grand Island City Council approved a
claim in the amount of Four Hundred, Fifty-Eight Thousand,Nine Hundred, Nineteen Dollars
and Thirty-Five Cents ($458,919.35) as the City's portion of the lump sum pension payment to
Sergeant Cole; and
WHEREAS, the issues of Sergeant Cole's police pension benefits and police and
fire pension benefits in general were the subject of a Study Session meeting of the Council on
December 11, 2012; and
WHEREAS, the Council has deteimined Sergeant Cole has been overpaid for his
police pension benefits and such overpayment should be corrected,
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL
OF THE CITY OF GRAND ISLAND,NEBRASKA,
That by December 31, 2012, City staff, the Police Pension Committee, and Sergeant Cole are
directed to recalculate Sergeant Cole's lump sum pension benefit using a straight life annuity
pursuant to the procedure set forth in Section 16-1007(2)(c) of the Nebraska Revised Statutes_
Approved as to Form gj
December 18,2012 TO City A orney
That once said recalculation is completed, City staff is to make a formal written demand upon
Sergeant Cole for reimbursement of the difference between his police pension benefits
determined by a joint life annuity and said benefits determined by a straight life annuity.
That the City Legal Department is to use all available methods to insure the City receive
reimbursement from Sergeant Cole for the overpayment of his police pension benefits.
Adopted by the City Council of the City of Grand Island, Nebraska, December 18, 2012.
Jay Vavricek, Mayor
Attest:
RaNae Edwards, City Clerk
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