Estero Fire chief discloses district's retirement plan dilemma to board

Estero Fire Chief Jeff Lindsey and seven other fire district employees could be in violation of state law because they are not enrolled in the proper retirement program.

The eight employees were enrolled in 401(k) plans by the district’s former chief, but as certified firefighters, they legally can be signed up only for the state-approved retirement plan the district has opted to use for employees, Lindsey told fire commissioners Tuesday morning during their board meeting.

It would cost a little more than $1.1 million to switch the employees to the correct plan, and they have agreed to use the money from their 401(k) accounts to pay for the bulk of that cost, he said. If they do not “buy out” their time served, they will not be able to count their years in the 401(k) toward their retirement, he said.

“Basically, you’re asking can the district pick up the balance because they didn’t make a wise investment?” said Commissioner Bob Morris.

The board advised Lindsey to pursue details of the transfer — particularly how much it will cost the district — but did not commit to the buyout.

Commissioner Sam Levy said he also wants the employees to sign another waiver, this one stating they agree to use their 401(k) money to switch to the state-approved plan, which is ultimately more expensive for the district.

“You’re saying Estero Fire Rescue performed an illegal act, according to state law,” Levy said. “Did you sign something saying you wanted to be in the 401(k)?”

The employees were enrolled in the 401(k) plans in 2001 by former Estero Fire Chief Dennis Merrifield, who also “felt pressured” to sign a waiver two years later committing to the 401(k) programs, Lindsey said.

“Even though we had an option (on the waiver), basically the employee was told to sign for the 401(k),” Lindsey said.

The other seven employees are Deputy Operations Chief Ed Dwyer; Emergency Medical Services Chief Bill Clemens; Fire Marshal Mike Cato; Fire Inspector Phillip Green and Shift Commanders Chris Krajic, Larry Nisbet and Scott Vanderbrook.

Also Tuesday, commissioners agreed during an executive session, which is closed to the public, to attend a mediation hearing July 5 with a former employee who filed a lawsuit for wrongful termination.

Nathan Williams sued the district in November 2004. Williams was a probationary firefighter at the time of his dismissal, which means he was employed by the district for less than one year.