UPDATE RE THE 2004 13TH. CHECK IP: 205.188.117.196 Posted on December 15, 2007 at 03:31:53 AM by Larry Vincent
TO ALL RETIREES,
I will try to cover the action of yesterdays meeting as I understand it. At the December 13th meeting, Atty. Ron Cohen was to report to the Trustees the results of a "DE NOVA" review that the Trustees had asked him to complete. The review was to determine if the 13th. Check should be paid and under what conditions.
Atty. Cohen advised that his review shows that the 13th. Check can be paid even though the base fund was still owed money to make up the losses of 2001 and 2002. In order for the 13th. Check benefit to be paid several things must be in place. There needs to be a certification as to the funds financial condition as of September 30, 2004, the triggering points allowing the benefit to be paid must have been met and the fund cannot be in a loss mode. These are the requirements.
Atty. Cohens' review is a departure from the legal opinion in 2004 where the Trustees were told they could not pay the 13th. Check because the base fund was owed money. I think the fund made 18 or 18.1% for that fiscal year.
Atty. Cohen was asked by Trustee Miller if the 13th. Check could be paid without the acturays' certification and Atty. Cohen replied, "NO." He did state that the actuary is working on the certification and he hoped to have it by the January 2008 pension meeting.
Trustee Cindy Miller made a motion for Atty. Cohen to proceed with the certification. Trustee Tracy Walker seconded the motion. The vote was unanimous.
Bottom line, the 13th. Check can be paid if the trigger points are met and the base fund is still owed money. The fund cannot be in a loss mode. In 2004, these conditions were met and a 13th. Check should have been paid.
As we move ahead, there is a lot to be overcome and procedures to be followed. Since the issue is now a subject of a lawsuit and a Judge assigned, any decision re paying the 13th. Check will need input from the assigned Judge. If Atty. Cohen can get the Judge to dismisss the lawsuit, the Trustees could then move ahead and pay the checks to all eligible Retirees.
With that in mind, it should be obvious that there is a lot to be done before the checks arrive in the mail. These are positive steps and move us all closer to the day that the benefit will be paid.
As we continue, I will try my best to provide you all with the most current and accurate information available. Until then,,,,
Larry Vincent
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