Another Change Made to Grand Island Police Pensions
The Grand Island City Council thought the big police pension question was answered, but while trying to figure out the latest retirees pension options they discovered another flaw that would've cost the city's taxpayers.
The council called for a special meeting Monday night to vote on how police retirees receive the lump sum annuity payment option.
Former Grand Island Police Captain Pete Kortum retired on December 2, and since his retirement the Police Pension Committee has made efforts to figure out the lump sum payout.
Joint Life Annuity practice was determined to be illegal by the City Council Resolution 2013-17(A) which states in part "benefits were and are to be calculated on a straight life annuity basis and any deviation from that standard was incorrect and illegal."
The city's finance treasurer said when they moved from joint life to straight life annuity they discovered they were missing a gender specific clause and if that wasn't put to a vote it could've cost taxpayers hundreds of thousands of dollars.
City Treasurer Jaye Monter said, "The difference is in cost. Females live longer statistically so insurance charges more. If we base the annuity quote on the male those quotes are going to be lower."
The council approved a resolution that directs both the pension committee and the city to make the lump sum police retiree payment to be gender specific.
Kortum said he told the council he just wanted a clear resolution because the issue has been going on too long.
The city council requested to direct the Police Pension Committee and corrected annuity quotes with the following parameters.
1- Straight life annuity
2- Age specific for pensioner only
3- Gender specific for pensioner
4- Both the city and the Police Pension Committee have to receive at least two fully qualified quotes for the purpose of accepting the low quote pursuant to the city of Grand Island procurement rules.