NUMB:
981761
VERS:
SUBSTITUTE 1
REF:
XXBY:
THE CHAIR
TITL:
A substitute charter ordinance relating to the full indemnification of the annuity and pension board and its members and the Milwaukee employes' retirement system and its secretary and executive director, employes and staff in connection with the administration of certain 1995 catch-up and annual cost of living adjustments to the pension benefits of certain retirees.
ANLS:
- Analysis -
This charter ordinance fully indemnifies and holds harmless the annuity and pension board and each past, present and future member thereof, Milwaukee employes' retirement system ("MERS"), and each past, present and future secretary and executive director, staff and employe of MERS (collectively "indemnitees") against all liabilities, damages, losses, costs and expenses, including reasonable attorneys' fees, arising from administration of the catch-up and annual cost of living adjustments (collectively, the "COLA adjustments") adopted by the city in 1995, which administration and a related overpayment of approximately $11 million (the "overpayment") is being challenged in a lawsuit entitled Edward Walsh, et al. vs. city of Milwaukee, et al., case No. 99-CV-001419 (cir. ct. Milwaukee county). This indemnification shall relieve the indemnitees from all fiduciary obligations to:
a) Collect the overpayment from the approximately 4,000 overpaid retirees or survivors thereof.
b) Proceed against Watson-Wyatt, the then acting MERS actuary, for its mistakes.
c) Proceed against the city for indemnification relating to the COLA adjustments.
d) Administer and operate MERS under chapter 36 in its current form as it relates to the COLA adjustments.
The city's global settlement of pension- related issues provides for a temporary stay and eventual dismissal of all litigation involving the city, the board and MERS, including the Walsh litigation involving the Indemnitiees. A temporary stay of the Walsh ...
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