01/17/2013 Resolutions 2013-16 (B) RESOLUTION 2013-16(B)
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, Section 16-1007(2)(b) of the Nebraska Revised Statutes states in
reference to police pension benefits, "[i]f the minimum pension benefit is paid in a form other
than a straight life annuity, such benefit shall be the actuarial equivalent of the straight life
annuity that would otherwise be paid to the officer..."
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 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; and
WHEREAS, Nebraska law generally limits the filing of a suit to four years from
the event that gave rise to the cause of action;
WHEREAS, within the last four years the City has paid police pension benefits to
Rick Ressel, Dennis Osterman, Roger Philbeck, and Kerry Cole based on a joint life annuity;
and
WHEREAS, the issue of police and fire pension benefits was the subject of a
Study Session meeting of the Council on December 11, 2012, a regular meeting of the Council
on December 18, 2012, and Study Session and Special meetings of the Council on January 15,
2013 ; and
WHEREAS, the Council has determined Messrs. Ressel, Osterman, Philbeck, and
Cole were overpaid for their respective police pension benefits and such overpayments should be
addressed,
Approved as to Form a N,■
January 17,2013 ° Cit r orney
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL
OF THE CITY OF GRAND ISLAND, NEBRASKA,
That the City Legal Department is directed to send individual letters to Messrs. Ressel,
Osterman, Philbeck, and Cole informing them their pension benefits were calculated incorrectly
which resulted in an overpayment of those benefits. The letters are to also state the City is within
its legal rights to seek reimbursement for the overpayment but will not and instead forgive the
overpayment due to the expense and uncertainty of litigation and the City's desire to resolve this
matter immediately.
Adopted by the City Council of the City of Grand Island,Nebraska, January 17, 2013.
rice Mayor
Attest:
PO4M)-Q-- Ea)* 9-
RaNae Edwards, City Clerk
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