05/08/2008
PENSION ADVISORY COMMITTEE MEETING MINUTES
CITY OF CLEARWATER
May 8, 2008
Present: Tom Jensen Vice-Chair
Carlen Petersen Committee Member/Councilmember
John Doran Committee Member/Councilmember
Stephen Sarnoff Committee Member
Paul Gibson Committee Member/Councilmember
Absent: Nathan Hightower Chair
John Schmalzbauer Committee Member
Also Present: Joe Roseto Human Resources Director
Brenda Moses Board Reporter
The Chair called the meeting to order at 9:06 a.m. at City Hall.
To provide continuity for research, items are in agenda order although not
necessarily discussed in that order.
2. Selection of Chair and Vice-Chair
Consensus was to select a Chair and Vice-Chair at the June 12, 2008 meeting, as two
members are absent.
3. Approval of Minutes of April 10, 2008
Member Petersen moved to approve the minutes of the regular Pension Advisory
Committee meeting of April 10, 2008, as submitted in written summation to each board member.
The motion was duly seconded and carried unanimously.
4. Employees to be Heard – None.
5. Action Items
a. Review and Action on Employee Requests for Regular Pensions:
1. Martha Pages, Engineering
2. Varghese Jolly, Public Utilities
3. Gregory Smith, Gas
Member Doran moved to approve the requests for regular pensions for Martha Pages,
Varghese Jolly, and Gregory Smith. The motion was duly seconded and carried unanimously.
b. Approval of New Hires as Plan Members:
Member Petersen moved to accept the following employees into membership in the
Pension Plan:
Pension
Pension Advisory 2008-05-08 1
Elig.
Name, Job. Class, & Dept./Div. Hire Date Date
Catherine Lee, Planner I/Planning 3/19/08 3/19/08
Cameron Moeller, Sr. Marine Lifeguard/Marine & Aviation 3/30/08 3/30/08
Scott Starkey, Fleet Mechanic/Solid Waste Gen. Svcs. 3/31/08 3/31/08
Shane O’Neill, Planner I/Planning 4/14/08 4/14/08
The motion was duly seconded and carried unanimously.
6. Pending/New Business
a. Set Hearing Date for George Agovino’s Request for Disability Pension
Human Resources Director Joe Roseto said staff has provided the PAC (Pension
Advisory Committee) with packets regarding George Agovino’s request for a disability pension.
He requested the case be scheduled for the June 12, 2008 meeting. If the IME (Independent
Medical Examination) report is not received prior to the next meeting or if after review of the IME
report the City disputes the request, staff may request the case be rescheduled to the following
month.
Member Doran moved to hear George Agovino’s request for a disability pension at the
June 12, 2008 meeting. The motion was duly seconded and carried unanimously.
7. Director’s Reports
Mr. Roseto reviewed items that will be discussed at the May 13, 2008 Pension Trustees
meeting: 1) A request by the PAC attorneys for a fee increase, and 2) A former employee’s
vested pension date.
Mr. Roseto said the law firm of Klausner & Kaufman, PA, has acted as outside counsel
to the PAC and Pension Trustees since 2003 at a rate of $250 per hour. They have requested
a rate increase to $300 per hour. He said the service provided by the firm has been
exceptional. Total costs paid to the firm for the last two years was approximately $153,000.
The majority of expenses are related to the processing of disability applications for plan
participants. Mr. Roseto said staff reviews itemized monthly bills.
Discussion ensued with comments that the hourly rate paid to Klausner & Kaufman is of
less concern than the amount of time they spend to provide services, and that their current fee
is lower than others providing the same services.
Mr. Roseto said a former employee was hired on June 30, 1987, as a part-time
employee and did not become full-time and pension eligible until November 26, 1990. Her
original part-time hire date of June 30, 1987, was entered into the payroll system as her pension
effective date. The employee terminated employment on July 10, 1999. At that time the
incorrect date of June 30, 1987 was erroneously used on her Application for Vested Pension
Rights. Since she was not eligible to participate in the Pension Plan while a part-time
employee, the pension date should have been November 26, 1990. Consequently, she did not
have 10 years of creditable pension service upon her termination.
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After consulting with Klausner & Kaufman, they recommended that the former employee
be allowed to make the required pension contribution on the salary she received as a part-time
employee from June 30,1987, through November 25,1990. During that time she earned
$35,256.71. The 8% employee contribution required at that time would have amounted to
$2,850.54.
Upon payment of the pension contributions, the former employee would be eligible to
receive a pension based on 12 years and 10 days of service. Her base benefit would be
$673.59. She also would be required to sign a waiver stating she will seek no further action
against the City of Clearwater's Employees' Pension Plan. The employee has agreed to these
terms and has provided payment and the signed waiver. Upon approval of the Trustees, her
benefit will be paid retroactively to March 1, 2008.
Discussion ensued with concern that this case would set a precedent if approved by the
Trustees, that there might be other errors in retirees' pension calculations, that the PAC
attorneys have indicated the courts would not decide the case in the City's favor, and that the
former employee received and signed pension retirement papers in good faith. It was remarked
that as the employee has agreed to comply with the terms of the settlement agreement, no
precedent would be set. Mr. Roseto said staff has reviewed all personnel records to ensure no
other errors regarding pension retirement dates have been made.
Finance Director Margie Simmons reviewed items for discussion at the next Pension
Trustees meeting: 1) Annual Actuary Report and staff recommendation; 2) Annual investment
presentation; 3) Extension of Callan Associates contract; and 4) Authorize staff to proceed with
a search for a consultant to perform an asset allocation study.
8. Committee Members to be Heard - None.
9. Adiournment
The meeting adjourned at 9:35 a.m.
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Pension Advisory Committee
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Board Reporter
Pension Advisory 2008-05-08
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