City of Atlanta

Police Officers’ Pension Fund

TRUSTEE NEWSLETTER September 6,
2002
Welcome to the 8th edition of the Police Officers’ Pension Fund
Trustee Newsletter.
Editor: Louis Arcangeli, Pension Board Vice-Chairman
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A MESSAGE FROM THE CHAIRMAN

meeting. I have always enjoyed Stockbridge. All APD officers, active
my service to my fellow officers, and retired, are invited!
but working with Lou over the
past few years has been an I am also informed that there is
eye-opening experience and we a North side ROMEO's “Retired
have accomplished great Old Men Eating Out” Breakfast
things. held the third Saturday of odd
numbered months. The next
An election will be held in meetings start at 11:00 am on
November to name Lou’s September 21st and November
successor. The 4-year term of 16th at Ryan’s Steak House in
office for the new trustee will be Canton, off I-575 at exit 20
from January 2003 through (Riverstone Parkway)
December of 2006. To qualify
you must send a certified letter P.O.A.B. If you are not already a
requesting that your name be member I encourage you to sign on
placed on the ballot to Director to the Peace Officer’s Annuity and
Andrea Spears of the Employee Benefit Fund. Instructions are
Benefits Division before provided below.
September 24th, 2002. Watch
Dear Officers and Retirees;
As always, you are invited
the APD Daily Bulletin for formal The APD “OLD TIMER’S”
notification. ROUND-UP will be held on
to attend the meetings of the
Police Pension Fund Board. The Friday, OCTOBER 11, at the
RETIREE BREAKFASTS: Pavillion in Grant Park. See
next meeting is scheduled for
The Southside group of you there!
September 17 at 9:30 AM, in
Atlanta Police Retirees meets at
Committee Room 1 on the 2nd
8:00 AM the SECOND Saturday
floor of City Hall.
of every EVEN numbered Lieutenant
month. Our next breakfast Don Lee
PENSION TRUSTEE
meetings will be held on (Retired)
ELECTION:
October 12 and December Board
Vice-Chair Lou Arcangeli is
14th starting at Chairman
stepping down from the board
8:00 AM at the Golden Corral,
after the December 2002
Hwy 138 at I-675 in
Disclaimer: This newsletter is produced and edited by elected trustees of the Police Officers’ Pension Fund for the sole purpose of fulfilling the fiduciary responsibilities associated with
managing the assets of the fund and improving the services available to fund members. The views expressed herein do not necessarily represent the positions or opinions of the City of Atlanta, the
Pension Board of Trustees, nor the opinions of other members of the Board. Lou Arcangeli
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 Join the Ga Peace Officers Annuity and Benefit Plan
You are making a huge retirement mistake if you are not a member of the
State of Georgia Peace Officers Annuity and Benefit Fund!
The Georgia General Assembly created the Peace Officers’ Annuity and
Benefit (POAB) fund in 1951 to provide a supplemental retirement benefit to
Georgia law enforcement officers. Currently the dues are $10.00 per month
and the retirement benefit is $23.69 per month times the number of years
you are a member. The P.O.A.B. is an excellent supplement to your City of
Atlanta retirement income.
ANNUAL BENEFIT: If you contribute to the P.O.A.B. for 10 years your
supplemental retirement benefit at age 55 is $2,842 a year for life. At 20
years and at age 55 the benefit is $5,685 a year. After 30 years the
retirement benefit is $8,528 a year. Two recently retired APD officers are
drawing $8,500 a year after 30 years of contributions into P.O.A.B. To obtain
this benefit they contributed $120 a year, only $10 a month, to POAB.
I was shocked to learn that less than 50% of APD officers are enrolled in the
Peace Officers’ Annuity and Benefit fund.
Notes
From
The
Vice-
Chair:
Dear Atlanta Police Officers:
The Police Officers Pension Fund investments are
secure and actuarially sound, with over $397,000,000 in cash,
diversified stocks and bonds.
CATASTROPHIC INJURY BENEFITS: The most important
issue regarding our pension in recent years has been the
unacceptable and deplorable treatment of our catastrophically
disabled officers. Councilmember Felicia Moore has introduced
an ordinance to address this problem, and it is pending before
the Finance committee at this time. Please watch for progress
on this measure in the 2003 budget.
NOVEMBER ELECTION: Thank you for electing me to serve
three years as a trustee on the Pension Fund Board. I am not
going to seek another term, and an election will be held in
November to fill the position I am vacating. The term of office for
this board-member will be from January 2003 through
December of 2006. To qualify send a certified letter requesting
that you name be placed on the Police Pension Fund Trustee
ballot to Director Andrea Spears of the Employee Benefits
Division before September 16, 2002.
When you vote to select our next Pension Board
Trustee please examine their experience, credentials,
contributions, and most importantly their integrity. You are
Police Officers’ Pension Fund Trustee Newsletter.
You can learn about the plan online at http://www.state.ga.us/poab/
or call me and make an appointment to pick up an application forms in
my office on the 5th floor of City Hall East. I am grateful to the two
captains who encouraged me to sign up over 15 years ago, and I
would love to see a higher percentage of APD officers signed up for
P.O.A.B. If you are already a P.O.A.B. member, and know someone
who has not yet signed up, please share this information with them
and encourage them to join.
When you begin to draw your retirement from P.O.A.B. you choose
between several options of survivor benefits for your spouse. The
POAB plan also provides life, line-of-duty death and disability
insurance benefits. This plan is particularly important to us since
Police Officers are not eligible for full Social Security benefits because
of the “government pension offset” rule. As a Police Officer you should
not plan on receiving any social security income, making membership
in the P.O.A.B. critical!
Sign up today!
Lou Arcangeli
electing them to a difficult but rewarding job. To see what they
are facing review the history of our pension plan on page 8 and
then select an officer you can trust to handle these types of
challenges to our financial future.
THE FUTURE: There are still opportunities for improvement in
our pension plan, specifically by reducing the age penalties and
lowering the 7% level of officer contribution payments. While
our pension benefits are not on par with DeKalb County and
many other Police Departments, we have significantly closed
the gap that exists between our police brothers and sisters in
neighboring jurisdictions. We can now retire with dignity and not
in poverty, and escape the retirement sentence of so many of
APD’s past retirees who spent their senior years directing traffic,
working as security guards, or living in poverty. If we are to
attract and retain the next generation of police officers we will
need ongoing and competitive pay and pension improvements.
One of the issues that the Board has been working on
is the question of what services we should outsource and
separate from the Finance Department. Jim Rose is working on
this and will need support to implement cost efficient processes.
We have seen the administrative costs charged by the Finance
Department continue to climb and we need to seek long term
solutions.
STATE OF THE PENSION BOARD: I was elected to serve as a
pension fund trustee in 1999 to fill the unexpired term of
Investigator Ken Cullifer after we lost him to cancer. I am
grateful to Mrs. Patsy Cullifer, Ken’s widow, for graciously
sharing all of his pension files. Patsy helped educate me on the
many complex issues facing the Pension Board, and she is one
of many people who have helped all of us over the years.
Please thank everyone who has helped us for their efforts!
Past and current trustees Ken Cullifer, Lee New, Bud
Watson and especially Chairman Don Lee fought against the
corrupt administration of former Mayor Bill Campbell. I am
honored to have had the opportunity to represent you before
City Council, in the press, and in the courts to remove Bill
Campbell’s influence and restore Police Pension Fund integrity.
Every elected Pension Fund Trustee has shared a commitment
Editor: Louis Arcangeli, Pension Board Trustee 2
to making APD’s pension secure our benefits competitive. I am
honored to have worked with such good men, and like them, I
am proud to have served in an uncompromised manner.
I am leaving the Pension Board in very capable hands.
Trustee Jim Rose led the 2001 pension improvement
committee before being elected and has quickly mastered his
responsibilities. Board Chairman, Retired Lieutenant Don Lee,
is the elder statesman of our board, and in his 8 years of service
as “Chairman of the Board” has consistently demonstrated his
wisdom and leadership. Mr. Chairman, it has been fun.
Council, and those who helped me with research, marched on
City Hall, presented information at community meetings, and
met face-to-face with City Council members. You know who
they are, take time to say “Thank you”.
Thank you for the honor of serving as a Police Officers’
Pension Fund Trustee, and for the personal satisfaction that
comes from having made a difference during my career with the
Atlanta Police Department.
Sincerely, and always for a safe Atlanta,

THANK YOU: In looking back over my three years of service on

the board I am proud of initiating and leading the most Louis Arcangeli
significant pension improvement since the 1970’s: The 2001 3% Pension Board Trustee
per-year benefit plan. I am grateful to the men and women who P. O. Box 5445
did the work, and who allowed me to coach and advise them Atlanta, GA 31107
during that time. I ask that you take a moment to thank the City 404-853-4492 E-mail:larcangeli@yahoo.com
~

Unsolicited advice for a financially secure retirement: Have a plan!

1 Plan to live long and live large! Based on the hundreds of healthy, positive and prosperous retirees I know there is life after APD.
2 Maximize your deferred compensation (pre-tax 457 plan) contributions into a group of well-diversified investments.
3 Plan on working for the City of Atlanta until you are 55 to avoid the early retirement penalty.
4 Join the P.O.A.B. and if eligible, sign up to buy back up to 5 years of prior law enforcement service.
5 Plan your retirement. For many of us retirement from policing is considered “half-time” in our lives. It is a time to pursue second
careers or work for our spouses full-time! Retirement is not the end of your working life; it merely expands your choices.
6 Open and put money into a ROTH IRA. (see #2 above) If necessary work extra jobs to fund this invaluable retirement tool!
7 Attend the annual APD “Old Timers Round-up”. Enjoy the fellowship of APD retirees at the regular informal breakfasts.
LA

Pol ice P en si on Fund Inf or ma tion :

Current Elected Trustees Past Elected Trustees
Don Lee 1992-2004 Chairman Bud Watson Ken Cullifer
Lou Arcangeli 1999-2002 Vice-Chair(term expires Lee New E. V. Forrester
December 2002) Jim Mullins George Weaver
Jim Rose 2000-2004 Lamar Harris R. M. Lane
How many officers retire each year?
Since 1994, an average of 40 officers retired each year.
In 2001, there were 44 retirees and 4 non-line-of-duty disability pensions.
In 2002, through August 30 there have been 23 retirements.

Trends in APD Pension Fund Membership 1994 2000 2002

Police pension fund members (Sworn Officers) 1615 1453 1490
Number of retirees/beneficiaries 650 1013 976

INFORMATION ON POLICE RETIREES IN THE FIRST 8 MONTHS OF 2002

 5 have taken full service pensions at age 55 or older.
 14 have taken reduced service pensions (retired before age 55)
 The average length of service for these retirees is 29 years.
 The average age of service retirements is 53 years of age.

 4 have taken early retirement. (before age 50)

 Average length of service for early retirement was 17 years.
 The average age of officers taking early retirement was 40, with a $920 month benefit.

Police Officers’ Pension Fund Trustee Newsletter. Editor: Louis Arcangeli, Pension Board Trustee 3
 ~~
Congratulations to the 2002
Atlanta Police Department Service Pension Retirees (Through August 30, 2002)
Derrick Bailey David Freeman Rhonda McNair
Mike Baker Lonnie Hardin Sandy Padgett
R. T. Baugh Beverly Havard Gerrick Roper
Larry Beard Richard Hawkins Norris Sanders
Vickie Becker Hamp Ingram Leila Shelton
Mike Currence Pat Johnson Joe Veerkamp
Reginal Dukes Bobby Louis Paul Wilburn
David Fiskum Bob Lynn
~
For City of Atlanta Pension Benefit Information call 404-330-6260.
Considering retirement? Have a pension question? Retired and need information about your insurance?
Employees of the Division of Employee Benefits can answer your questions. Call 404-330-6260.
~

Full Salary for Officers with a Line-of-Duty Catastrophic

Disability:
Proposed Ordinance 02-O-0037 No progress to report. Investigator Richard
Williams has met with and discussed this issue with several Council members who have assured
him that they
will support this ordinance and submit it for consideration in the 2003 budget later this year.
LA
~

RUMOR CONTROL Ed it ed by Ca pta in Lou Ar cangel i

Police Officers’ Pension Fund Trustee Newsletter. Editor: Louis Arcangeli, Pension Board Trustee 4
 RUMOR: Overtime does not count toward your salary for pension calculation. TRUE
FACT: In 1986 the pension law was changed so that overtime was no longer used to compute the average
monthly pension benefit.
Superior Court Judge B. Lane has ruled in favor of the City of Atlanta and the Police Officers Board of
Trustees and against Investigator Don Brown in the civil action filed by Inv. Brown in this matter. The
decision confirmed that consistent with the 1986 amendment to the pension plan, overtime cannot be
used to calculate the average salary and therefore serve to increase the pension benefit.

MY
OPINION: I think that the ruling was fair and in the interest of the fiscal security and health of our pension fund.
The huge unfunded liability created by such a decision would have eliminated any possibilty for age
penalty reductions or pension improvements in the future. It could have resulted in a substantial
decrease in benefits for current and future officers. While many officers worked a lot of overtime as a
result of the staffing shortage and federal overtime assignments over the past five years, no pension
contributions were collected from any of that federal overtime money. If the plaintiff had prevailed in the
civil action against the City and the Board it would have been beneficial ONLY to the officers hired
before 1986 who worked overtime. If the civil action against the City and the Pension Board had won it
would have had an extremely negative impact on all officers hired since 1986! If you have
questions about this decision or want a copy of the Judges ruling contact me or Trustee Jim Rose.

~~~~~~~ ~~
RUMOR: The number of Police retirements will increase in 2002 and 2003. Yes.
FACT: This year 23 officers have retired as of August 28. This is consistent with the average of 40 police
officers retiring each year since 1992. However, in the early 1970’s there was a hiring push driven by
the need for APD to fill hundreds of federally funded grant positions. All officers hired in the early
1970’s reach potential retirement age in the next two years. This is of interest to officers on promotional
lists, etc. because of the many career opportunities created by this healthy organizational turnover.

RUMOR: The Pension Fund is being audited. TRUE: The Pension Board voted unanimously for this audit.
FACT: Given past financial improprieties, the 2001 criminal fraud conviction of a former finance department
employee, and increases in administrative costs, the Board of Trustees voted unanimously to hire the
highly respected accounting firm of Banks, Finley and White to conduct a limited audit of the Police
Officers’ Pension Fund. We commissioned this audit to fulfill our fiduciary responsibilities and to
support Mayor Franklin as she works to restore confidence in Atlanta’s finances. The results of the
audit will be presented to the September 17, 2002 meeting of the Pension Fund Board of Trustees.

In the final analysis, the pension fund is secure, retirees received their annual cost of living adjustment
(COLA) of 3% in 2002, and the Police Pension Fund Board has met Georgia requirements in 2002.

RUMOR: Vice-Chairman Arcangeli (That’s me!) is not running for the Pension Board again. TRUE!
An election will be held in November to select the new Police Pension Fund Trustee. See Pg. 2.

NOTE: These facts and opinions represent my best efforts to explain complicated issues. Please call me if there is a rumor you
would like to have confirmed, denied or clarified. Also call me if you are aware of any errors or mis-statements in this newsletter,
I invite you to call me with your corrections, input and suggestions. Lou Arcangeli

Milestones in APD Police Officer’s Pension Fund

History
1933 -City of Atlanta’s Policemen’s Pension Plan was enacted as part of Georgia law.
1937- -Policemen and Firemen Relief fund was formed by Officers to collect money for officers injured
or killed in the line of duty.
1951 -State of Georgia starts the Peace Officer’s Annuity and Benefit pension supplement plan.
1964 -Policeman’s Pension Plan was converted to a pay-related formula.
1978 -Pension plan approved that provides a 2% per year of service pension to police without an age

Police Officers’ Pension Fund Trustee Newsletter. Editor: Louis Arcangeli, Pension Board Trustee 5
 penalty at age 55. Officers hired
before 3-31-1978 have a 15% penalty for retirement at age 50, officers hired after 4-1-1978
have a 30% penalty at age 50.
1986 -Disability and survivor benefits were changed. Disability provisions were reduced from 70% of
salary to 50% for in-line-of-duty
disabilities. Disabled officers, including officers with catastrophic disabilities, cannot take ANY
employment without having their 50%
of their salary disability pension rescinded. Overtime is no longer considered in the pension
benefit calculation. The 1986
amendment allowed widows / surviving spouses of retired officers to continue to draw a
survivor’s pension even if they remarry.
1987 -Councilmember Jaba Simama proposed investing Police Officer’s pension funds in
disadvantaged minority businesses.
Police Pension Fund Trustees lobbied against the measure and it FAILED.
1991 -Police Pension Fund Investment manager Theresa Stanford and politically connected Ray
McClendon set up fraudulent investment
schemes that eventually stole over 15 million dollars from the City’s pension funds.
- Acting on these suspected improprieties, elected Police pension fund trustees Lee New and
Ken Cullifer push for and obtain an
independent financial consultant to remove all investments from the control of the City. Mr.
Bob Reiser of Ballentine and
Associates continues to serve as the Police Pension Fund’s independent financial consultant.
1992 -The City implemented the first of three voluntary incentive programs for early retirement.

1993 -Under the leadership of Chief Eldrin Bell APD reaches 99.8% of assigned strength, 1600+
officers.
1994 -Mayor Bill Campbell increased the employee pension contribution from 4 to 7%. This is a
permanent 3% pay cut to APD officers!
The employee pension contribution payment in 2002 continues to be 7% of salary for officers
with dependents.
1995 - A “Voluntary Incentive Plan” (VIP) for early retirement window further reduces police staffing.
1998 - Mayor Campbell’s third early retirement incentive reduces APD staffing to 1327 officers.
Police recruitment does not keep pace with
retirements and attrition, and police staffing and pension fund contributions are significantly
reduced.
2000 -City of Atlanta Acting Chief Financial Officer Judith Blackwell attempted to improperly withdraw
$3,000,000 in Police Pension fund
assets but was stopped by elected members of the Police Officers’ Pension Fund Board. Mayor
Campbell’s Chief Operating Officer
Larry Wallace stated that this was only an unfortunate mistake and no disciplinary action is
taken against CFO Blackwell.
-Later that year Acting Chief Financial Officer Blackwell resigned.
2000 -The “Law Enforcement Advisory Committee” (LEAC) was formed by Pension Fund Trustee Lou
Arcangeli submits a 5 year plan for
APD benefits improvements to the City Council and Mayor comparing the Atlanta Police
pension plan with adjoining jurisdictions.
The LEAC demonstrated the shared commitment of both the PBA and the IBPO to demand
pension reform.
2001 - Former Chief Operating Officer Larry Wallace was indicted by a Federal Grand Jury.
- Ray McClendon and Theresa Stanford were convicted and begin serving lengthy federal prison
sentences. Former CFO Mike Bell
and Police Pension Fund Trustees Don Lee and Lou Arcangeli called on the City to initiate civil
action to obtain restitution in 1999.
Unfortunately these requests were ignored by Mayor Campbell until all civil statutes- of-
limitations expired, preventing the
recovery of over 15 million dollars from the defendants, their companies, or their insurers.
-Despite 1800 police positions funded by Council, under Mayor Campbell and Chef Havard
Atlanta Police staffing remained below
1400 officers. This cut in police officers significantly reduced police pension fund contributions
Police Officers’ Pension Fund Trustee Newsletter. Editor: Louis Arcangeli, Pension Board Trustee 6
 and long-term pension fund growth.

2001 -The first pension plan improvement since 1978 was passed unanimously by City Council 15-0!
Officer’s pensions are now based on
a 3% per year benefit (80% age calculation cap) at age 55. (Note that DeKalb County has an
82.5% cap, Cobb County an 85% cap.)
2001 -An ordinance was passed that provided officers who have suffered catastrophic disabilities the
opportunity to work without
losing their disability pension (50% of salary). Retired disabled Officer Ryan Phinney, a
paraplegic as a result of a car accident,
secures a job as a computer programmer. Retired disabled Officer Pat Cocciolone begins
to show and sell her hand crafted bird
house creations at folk art shows.
-100 percent pay provision for catastrophic disability (as passed in Houston, Texas) failed to
pass in the Atlanta City Council.
-City of Atlanta adopted a defined contribution pension plan for General Employees. This is
opposed by Police Pension Fund trustees
and is NOT adopted for police officers.
2002 -100% pension provision for catastrophically disabled officers is introduced before the Finance
Committee by Councilmember
Felicia Moore. This proposed ordinance is still held in committee.
2002 With $397 million in assets, the Atlanta Police Officer’s Pension Fund is on target to meet the
year 2018 date specified by Georgia State law for eliminating the City of Atlanta Police Officer’s
Pension unfunded liability.
-

Police Officers’ Pension Fund Trustee Newsletter. Editor: Louis Arcangeli, Pension Board Trustee 7
Dear Fellow Police Officers,

I am looking forward to working for Letter to the Pension

a new pension program in 2003 that will Fund Membership from
eliminate the age penalties that we suffer Trustee Jim Rose
with our present pension plan. It is my
commitment to work for all of you by
In August Chairman D.V. Lee, Vice-
making our pension plan a better and
Chair L. Arcangeli and I had an excellent
fairer plan for all members.
meeting with Chief Richard Pennington. Our
new Chief stated he supported eliminating
I volunteered for this job to
the age penalty in our pension program.
protect our pension assets and to serve
Chief Pennington said that both the
you by making our pension plan one of the
Washington D.C. and New Orleans Departments
best programs in the country. We can do
did not have age penalties and were much
this in three steps:
better pension programs. The Chief gave his
commitment to work for a better pension
1. Make our Department's pension plan
plan.
more competitive so we can attract
and retain officers.
I would also like to thank all the
officers who continue to support us in
2. Insure that our pension plan
making our pension program better and
respects disabled officers by
fairer. I know that our Department and the
providing them the financial
citizens of our great city will benefit from
support to survive...with dignity.
an improved pension program. Future
It is a crime to see our officers
generations of officers and citizens will
who are disabled to the point of
also benefit from our hard work.
being in wheel-chairs and not
having the money to take care of
themselves and their families.
Jim Rose
Trustee
I also feel that we should privatize our
Police Officer's Pension Board
pension to a certain degree to insure that
it is easier for future generations of
board members to manage. Our pension is
very hard to manage at present and we can
save money by copying Mayor Franklin's
lead and seeking competition in the
private sector.
.

1st Annual Survivor Scramble

with a Million Dollar Hole-In-One Contest
Hosted by Pat Cocciolone
September 21, 2002
8 am and 2 pm Best Ball Tournaments
Prizes will be awarded at the end of each Scramble
Bobby Jones Golf Course, Atlanta, Georgia
$75 per golfer/$300 per foursome Clubs may be rented for $20
Pat Cocciolone Million Dollar Hole-In-One Contest sponsored by
APD, Retired Wholly Cow Ice Cream Parlor (Lawrenceville) and Georgia Pacific

Police Officers’ Pension Fund Trustee Newsletter. Editor: Louis Arcangeli, Pension Board Trustee 8
 Pat wanted to find a way to help support the Brain Injury Association of Georgia provide funding for
Camp Hardgrove and other projects
that support people with brain injuries. The "Survivor Scramble," (named by Pat) is planned to be an
annual event for that purpose.

For additional info and to sign up see: http://www.survivorscramble.com

Sponsored by Armada Vans –Georgia Pacific -Wholly Cow -Shadow Grafix

Police Officers’ Pension Fund Trustee Newsletter. Editor: Louis Arcangeli, Pension Board Trustee 9