RESOLUTION No. 36416

Direct the City Attorney to draft changes to the City of Portland Charter and other documents necessary for certain reforms to the Fire and Police Disability and Retirement System for referral to voters in November 2006 General Election; and confirm Council commitment to measure the success of the reforms to provide greater accountability to the residents of the City (Resolution)

WHEREAS, the City of Portland acknowledges the important work that police officers and firefighters do to keep our city and its residents safe; and

WHEREAS, the City of Portland affirms its commitment to provide both a fair and a reasonable retirement and disability system for its firefighters and police; and

WHEREAS, the City of Portland reaffirms the need to reform the current Fire and Police Disability and Retirement (FPD&R) System to provide a system that is fiscally responsible to the taxpayers; and

WHEREAS, the City of Portland acknowledges that for the future stability of our City’s finances, and in fairness to future generations of taxpayers in the City, the pensions for future police and firefighters should be pre-funded; and

WHEREAS, the City of Portland acknowledges that the disability system should be managed by independent experts in the field of disability, and that the Board of Trustees and beneficiaries of the system should not be involved in claims decision-making; and

WHEREAS, the City of Portland confirms its commitment to providing greater accountability to the residents of the City of Portland in regards to the FPD&R System; therefore reforms will be monitored, audited, and measured for success; and

WHEREAS, on February 9, 2005, Portland City Council adopted Resolution #36291 which established the Independent Review Committee (IRC) to conduct a comprehensive analysis of the City’s FPD&R system; and

WHEREAS, on January 18^th, 2006, Portland City Council created the Reform Committee in Resolution #36371 to build on the work of the IRC and propose comprehensive reforms to both the pension and disability programs of the FPD&R system; and

WHEREAS, Council has reviewed the recommendations of the Reform Committee and has outlined a package of reforms it intends to submit to the voters in the November 2006 General Election; and

WHEREAS, Council believes these reforms will create a system that is accountable to the voters; fair to public safety officers; and fiscally responsible to the taxpayers.

NOW THEREFORE, BE IT RESOLVED that the City Attorney is directed to draft Charter changes and other necessary agreements as outlined in this resolution. The City Attorney shall work collaboratively with stakeholders to draft the Charter changes.

BE IT FURTHER RESOLVED that the City Attorney should report back to Council on July 5th, 2006 with the proposed Charter changes and associated agreements.

BE IT FURTHER RESOLVED that the pension system for new hires should be pre-funded. All new hires, as of January 1, 2007, would be in the Oregon Public Servant Retirement System (OPSRP) System. Instead of being in the Social Security System, the City would contribute three percent (3%) into the Individual Account Plan (IAP) of OSPRP, over and above the six percent (6%) employee portion the City picks up for other members of the OPSRP system who are members of the Social Security System. Any non-pension related benefits from Social Security would be offset, as the benefits interface with OPSRP system.

BE IT FURTHER RESOLVED that reforms shall be made to the FPD&R Disability System. Reforms would apply to all members of the FPD&R system, including all members with open and current disability claims.

Board of Trustees: The composition of the Board of Trustees would be changed to a 5 Member Board, consisting of:

1.  A Representative of the Fire Bureau;

2.  A Representative of the Police Bureau;

3.  A Citizen member with relevant experience in pension and/or disability systems, nominated by the Mayor and approved by Council;

4.  Another Citizen member with relevant experience in pension and/or disability systems, nominated by the Mayor and approved by Council;

5.  A representative from the City that is either the Mayor or the Mayor’s designee. If it is a designee of the Mayor, that designee would be subject to Council’s approval.

Neither the citizen members, nor the Mayor or the Mayor’s designee can be an active or past member of the Fire and Police Disability and Retirement Fund and cannot have been employed as a Portland firefighter or police officer.

Claims Decision-making: The Administrator of the FPD&R Fund would be the first step in the claims decision-making process. Thus, the Administrator would approve or deny claims.

An appeal would be available to a hearings officer. The Board may choose to appoint an independent panel of three hearings officers to hear appeals from the administrative Hearings Officer decision.

Additional level appeal would be to the Circuit Court, and continuing through the Oregon legal system as provided by state law.

Administrator: The Administrator of the FPD&R System would be nominated by the Mayor, approved by the Board of Trustees, and confirmed by Council.

Administration would be consolidated within the operations of the existing bureau structure at the City, but report directly to the Mayor and the Board.

The Administrator would be terminated by the Mayor, with the advice of the Board of Trustees.

Subrogation: A provision allowing the FPD&R system to pursue subrogation should be added to the Charter.

BE IT FURTHER RESOLVED Council submits that reforms to the FPD& R system will be monitored, audited and assessed for its success. The assessments to be made and the timeline for these assessments are attached at Exhibit A. It is Councils’ intention that these assessments will be available for the public, as well as future Councils.

Adopted by the Council, June 14, 2006          

             GARY BLACKMER

Mayor Tom Potter          Auditor of the City of Portland

Commissioner Sam Adams        By /S/ Susan Parsons

Commissioner Randy Leonard

Commissioner Dan Saltzman        Deputy

Commissioner Erik Sten

BACKING SHEET INFORMATION

AGENDA NO. 779-2006

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 36416