John Keane’s pension has been called excessive by some.
It’s been called illegal by the Office of General Counsel.
But the Police and Fire Pension board decided Friday it’s the cheapest and best option until Keane retires.
After lengthy discussion, the board decided to keep Keane in the senior-staff retirement plan instead of breaking his contract, establishing a defined contribution plan, starting to provide in-service payments or creating a Deferred Retirement Option Plan.
That senior-staff plan is closed for any new members and has only Keane, a surviving spouse and a retiree still included.
Richard Tuten III, the board’s fire representative, admitted Keane’s compensation levels are “a little excessive,” but said the fund needs to have an executive director “and we need to pay him.” Keane is set to receive more than $300,000 a year through different retirement plans he’s been in over his career.
Walt Bussells, the board’s chair who was appointed by City Council, said Keane’s contract runs out in 2017, but the long-time administrator has indicated he would like to retire earlier depending on pension reform. Board member Adam Herbert said finding Keane’s replacement is one of the group’s most important responsibilities.
The board approved passing along to the city qualifications and responsibilities for a successor, but also decided it wants a little clarity when it comes to its budget. For years, City Council and the fund have disputed over whether council could tweak the fund’s budget. Council says yes, the fund says no.
Now, board members want the Attorney General’s Office to decide and next month will seek an opinion for the state’s top lawyer.
While those actions were unanimous Friday, another was not.
The group was split as to whether retired members should receive $2.2 million in holiday bonuses next month. The bonuses come from state chapter funds, which are meant to be used to improve benefit levels for members. A 3 percent bonus would have meant $987 for each member.
Tuten advocated giving at least a 1 percent bonus — equaling $329 per retiree — for those older members, many of whom he said depended on the extra money. He was joined by Larry Schmitt, the police representative, in voting for the bonuses.
Bussells and Herbert voted against the idea and with four of the five members present, the 2-2 vote meant it didn’t proceed. Bussells argued that current public safety employees haven’t received additional compensation and the money could be saved and later applied toward a type of share plan.
For now, the money will stay in reserves.
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