Attorney Says Retired City Employee's Insurance Coverage Is Unique

July 28, 2016 at 4:25 p.m.

By TERESA SMITH, Times-Union Staff Writer-

When Warsaw fireman Gene Fancil was allowed to remain on city insurance after his retirement three years ago questions were raised by other pensioners who weren't extended the same courtesy.

Fancil, was a fire department driver and his tenure with the city began in 1966. He worked as a volunteer for 11 years and retired after 33 years.

In June 2001 fire chief Matt Warren made the insurance request on Fancil's behalf. Costs covered by the city to carry Fancil and a dependent amount to more than $200 per month.

In July 2001 the board approved a memorandum of understanding regarding insurance coverage for Fancil.

Fancil did not convert his pension plan in 1979 and, thus, did not receive a $22,000 payment in 1999 and other benefits. He is the last member of the 1937 pension plan, according to the memorandum.

The insurance coverage will continue until Fancil reaches age 65 or qualifies for Medicare.

Last month Fort Wayne attorney Loren Allison presented concerns from beneficiaries of the city's police and fire pension plan. Individuals spoke for themselves during the meeting calling the deal with Fancil unfair.

Retired police officers Gerald Oswalt and Mike Hollar addressed the board along with retired fireman Alan Hartman who all asked why one individual was singled out for additional benefits.

Allisson asked who was administrator of the pension fund - the board of works or the fund's board of trustees.

City lawyer Mike Valentine said he would give the board of works members his formal opinion concerning the issue within the next two weeks.

An opinion came from Indianapolis attorney Eric Scroggins in the form of a letter to Allison. Scroggins is employed by Ice, Miller. It did not indicate which board governed the pension plans.

Scroggins communication did identify Fancil as a retired member of the 1937 pension plan and "any benefits provided to Mr. Fancil were done so based upon a set of circumstances unique to Mr. Fancil and his employment with the City."

The letter states Ice, Miller conducted an analysis of I.C. 5-10-8-1 regarding group insurance for public employees and the board has not violated this law. The letter continues to say the city has not violated the provisions of I.C. 5-10-8-2.2(g) regarding group health insurance for retired public safety employees.

The board recognized change orders for sidewalk plantings and renovations downtown have exceeded the 20 percent maximum by $2,421. Costs exceeding 20 percent must be approved by the board of works.

Contractor Clounie Landscaping of Huntington submitted the current change order and Mayor Ernie Wiggins said things had to be done in time for the Sesquicentennial Celebration.

"I see this as somewhat of an emergency because of the parade and other festivities," he said.

Costs of the "streetscape" are now $226,221 higher than the original estimate of $186,500. The city council budgeted $265,000 in the Cumulative Capital Development Fund for phase one - plantings along Center Street from High Street to Washington Street.

The residence at 221 S. Harrison St. has been determined to be unsafe, vacant and in a state of disrepair and building commissioner Todd Slabaugh's request for demolition of the house there was granted.

He said the property has been vacant for two years and unsafe conditions have been recognized by the city since June 1999. Gawthrop Excavating of Leesburg quoted $3,540 for demolition and Walters Excavating of Akron quoted $5,500.

The board also:

• Approved acceptance of a $3,481 grant from the Community Foundation of St. Joseph County to Warsaw Parks and Recreation Department to support summer concerts. Donations will make up the required 50 percent match.

A request to spend $1,000 for radio advertisement for the Country Concert with Talking Stick/WRSW/ESPN 1480 was approved along with an expenditure of $2,600 to Pro Audio Services for additional lighting requirements for the Terri Clark performance during the Country Concert July 23. These funds come from donations.

• Approved a software license agreement with Motorola for radio service and systems at the wastewater treatment plant, as requested by plant supervisor Dave Henderson.

• Approved fire chief Matt Warren's request to advertise for bids for a new ladder truck.

• Approved an in lieu of annexation agreement with Jerry and Norma Ferguson, corner of Archer Road and Bell Drive. The Fergusons own property adjacent to where Biomet plans to build an addition. The agreement allows a sewer line to be extended to the new facility.

• Approved a cellular telephone contract with Verizon for two years for the building and planning department.

Board of works members are Mayor Ernie Wiggins, Jerry Patterson and Charlie Smith. [[In-content Ad]]

When Warsaw fireman Gene Fancil was allowed to remain on city insurance after his retirement three years ago questions were raised by other pensioners who weren't extended the same courtesy.

Fancil, was a fire department driver and his tenure with the city began in 1966. He worked as a volunteer for 11 years and retired after 33 years.

In June 2001 fire chief Matt Warren made the insurance request on Fancil's behalf. Costs covered by the city to carry Fancil and a dependent amount to more than $200 per month.

In July 2001 the board approved a memorandum of understanding regarding insurance coverage for Fancil.

Fancil did not convert his pension plan in 1979 and, thus, did not receive a $22,000 payment in 1999 and other benefits. He is the last member of the 1937 pension plan, according to the memorandum.

The insurance coverage will continue until Fancil reaches age 65 or qualifies for Medicare.

Last month Fort Wayne attorney Loren Allison presented concerns from beneficiaries of the city's police and fire pension plan. Individuals spoke for themselves during the meeting calling the deal with Fancil unfair.

Retired police officers Gerald Oswalt and Mike Hollar addressed the board along with retired fireman Alan Hartman who all asked why one individual was singled out for additional benefits.

Allisson asked who was administrator of the pension fund - the board of works or the fund's board of trustees.

City lawyer Mike Valentine said he would give the board of works members his formal opinion concerning the issue within the next two weeks.

An opinion came from Indianapolis attorney Eric Scroggins in the form of a letter to Allison. Scroggins is employed by Ice, Miller. It did not indicate which board governed the pension plans.

Scroggins communication did identify Fancil as a retired member of the 1937 pension plan and "any benefits provided to Mr. Fancil were done so based upon a set of circumstances unique to Mr. Fancil and his employment with the City."

The letter states Ice, Miller conducted an analysis of I.C. 5-10-8-1 regarding group insurance for public employees and the board has not violated this law. The letter continues to say the city has not violated the provisions of I.C. 5-10-8-2.2(g) regarding group health insurance for retired public safety employees.

The board recognized change orders for sidewalk plantings and renovations downtown have exceeded the 20 percent maximum by $2,421. Costs exceeding 20 percent must be approved by the board of works.

Contractor Clounie Landscaping of Huntington submitted the current change order and Mayor Ernie Wiggins said things had to be done in time for the Sesquicentennial Celebration.

"I see this as somewhat of an emergency because of the parade and other festivities," he said.

Costs of the "streetscape" are now $226,221 higher than the original estimate of $186,500. The city council budgeted $265,000 in the Cumulative Capital Development Fund for phase one - plantings along Center Street from High Street to Washington Street.

The residence at 221 S. Harrison St. has been determined to be unsafe, vacant and in a state of disrepair and building commissioner Todd Slabaugh's request for demolition of the house there was granted.

He said the property has been vacant for two years and unsafe conditions have been recognized by the city since June 1999. Gawthrop Excavating of Leesburg quoted $3,540 for demolition and Walters Excavating of Akron quoted $5,500.

The board also:

• Approved acceptance of a $3,481 grant from the Community Foundation of St. Joseph County to Warsaw Parks and Recreation Department to support summer concerts. Donations will make up the required 50 percent match.

A request to spend $1,000 for radio advertisement for the Country Concert with Talking Stick/WRSW/ESPN 1480 was approved along with an expenditure of $2,600 to Pro Audio Services for additional lighting requirements for the Terri Clark performance during the Country Concert July 23. These funds come from donations.

• Approved a software license agreement with Motorola for radio service and systems at the wastewater treatment plant, as requested by plant supervisor Dave Henderson.

• Approved fire chief Matt Warren's request to advertise for bids for a new ladder truck.

• Approved an in lieu of annexation agreement with Jerry and Norma Ferguson, corner of Archer Road and Bell Drive. The Fergusons own property adjacent to where Biomet plans to build an addition. The agreement allows a sewer line to be extended to the new facility.

• Approved a cellular telephone contract with Verizon for two years for the building and planning department.

Board of works members are Mayor Ernie Wiggins, Jerry Patterson and Charlie Smith. [[In-content Ad]]

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