HomeMy WebLinkAbout35. 22-540DECEMBER 13, 2022 22-540 RESOLUTION
(CARRIED LOST LAID OVER WITHDRAWN )
PURPOSE: CLOSE POLICE PENSION FUND / TRANSFER ASSETS TO THE
WORKERS COMPENSATION FUND
INITIATED BY: FINANCE DEPARTMENT
WHEREAS, the City of Oshkosh began participation in the State of Wisconsin
Retirement System in 1945; and
WHEREAS, beginning April 1, 1978 all pension payments have been made by the
Wisconsin Retirement Fund with the costs for all pensioners whose pension began before
January 1, 1973, or their surviving spouse, billed back to the City of Oshkosh; and
WHEREAS, since May, 2022 there are no more pensioners or surviving spouses
drawing on the Police Pension Fund; and
WHEREAS, it is therefore appropriate to close the Police Pension Fund and
consolidate and move the remaining assets into an existing active fund(s) which are
similar in nature to the inactive Police Pension Fund; and
WHEREAS, the Finance Department has studied the City’s current funds and
determined that the excess funds may be most beneficially transferred to and used in the
Workers Compensation Fund and that the Workers Compensation Fund will provide
benefit to the employees of the City of Oshkosh and is therefore similar in nature to the
pension funds.
NOW, THEREFORE BE IT RESOLVED by the Common Council for the City of
Oshkosh that the Council hereby determines that the Police Pension Fund contains surplus
funding and that the appropriate city officials are hereby authorized and directed to close
the fund and transfer $81,658 from the Police Pension Fund to the Workers Compensation
Fund.
Finance Department
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.ci.oshkosh.wi.us
TO: Honorable Mayor and Members of the Common Council
FROM: Russ Van Gompel, Finance Director
DATE: December 7, 2022
RE: Approve Closing Police Pension Fund
BACKGROUND
The City of Oshkosh began participating in the Wisconsin Retirement System in 1945. Prior to
that, the City maintained a separate Police Pension Fund and Fire Pension Funds. In 1978 the
Wisconsin Retirement System took over payments of former employees and surviving spouses
and would charge back to the City the cost of those payments.
The City used the remaining funds in the Police and Fire Pension Funds to account for the
charges of employees or their spouses who retired before 1973. The last payment made for this
individual in the Police Department was made May 2022. As of November 30, 2022 the Police
Pension Fund had a balance of $81,658.
ANALYSIS
With the closure of the Police Pension Fund, approximately $81,658 will be transferred to the
Worker Compensation Fund. The Workers Compensation Fund has a positive fund balance as
of December 31, 2021 of $235,238.
The closure of the Police Pension Fund was reviewed by the City Attorney and an attorney with
the Law Firm, Buelow, Vetter Buikema, Olson & Vetter, LLC, to ensure the closure and transfer
was consistent with intent of the creation of the fund. Both attorney are comfortable with the
proposed action.
FISCAL IMPACT
The transfer of funds from the Police Pension Fund will restore some of the fund balance
needed in the Workers Compensation Fund.
RECOMMENDATION
Staff recommends that Council adopt this resolution.
Respectfully Submitted, Approved:
Russ Van Gompel, Finance Director Mark Rohloff , City Manager