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06/12/2008 PENSION ADVISORY COMMITTEE MEETING MINUTES CITY OF CLEARWATER June 12, 2008 Present: Tom Jensen Vice-Chair John Schmalzbauer Committee Member Carlen Petersen Committee Member/Councilmember John Doran Committee Member/Councilmember Stephen Sarnoff Committee Member Paul Gibson Committee Member/Councilmember Absent: Nathan Hightower Chair Also Present: Joe Roseto Human Resources Director Brenda Moses Board Reporter The Vice-Chair called the meeting to order at 9:04 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 Member Petersen moved to re-appoint Member Hightower as Chair. The motion was duly seconded and carried unanimously. Member Schmalzbauer moved to re-appoint Member Jensen as Vice-Chair. The motion was duly seconded and carried unanimously. 3. Approval of Minutes of May 8, 2008 Member Petersen moved to approve the minutes of the regular Pension Advisory Committee meeting of May 8, 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. Lisa Meagher, Customer Service 2. Patrick Scanlon, Fire Member Sarnoff moved to approve the requests for regular pensions for Lisa Meagher and Patrick Scanlon. The motion was duly seconded and carried unanimously. b. Review and Action on Employee Requests to Vest Pensions: 1. Michael Hurley, Development & Neighborhood Services 2. Karen Backus, Police Pension Advisory 2008-06-12 1 Michael Hurley, Development & Neighborhood Services, has resigned his position after being employed with the City for more than ten years of credited service. He will qualify for his pension beginning January 1, 2011. Karen Backus, Police, has resigned her position after more than ten years of credited service. She will qualify for her pension beginning May 1, 2019. Member Petersen moved to recommend approval of the request by Michael Hurley and Karen Backus to vest their pensions. The motion was duly seconded and carried unanimously. c. Approval of New Hires as Plan Members: Member Schmalzbauer moved to accept the following employees into membership in the Pension Plan: Pension Elig. Name, Job. Class, & Dept./Div. Hire Date Date Christopher Hages, Custodial Worker/Marine & Aviation 1/19/08 4/26/08 Michele Curtis, Police Communications Operator Trainee/Police 4/28/08 4/28/08 Margaret Hasty, Police Communications Operator Trainee/Police 4/14/08 4/14/08 Michael Hasty, Police Communications Operator Trainee/Police 4/14/08 4/14/08 Craig Corlis, Police Communications Operator Trainee/Police 4/28/08 4/28/08 Dawn Lucier, Police Communications Operator Trainee/Police 4/28/08 4/28/08 Christopher Hages was originally hired as part-time on January 19, 2008; transferred to full-time and pension eligible as of April 26, 2008. The motion was duly seconded and carried unanimously. 6. Pending/New Business a. Hearing Date for George Agovino’s Request for Disability Pension – Continue to July 10, 2008 Human Resources Director Joe Roseto requested George Agovino’s hearing date for a disability pension be continued to July 10, 2008. He said the City is contesting the request. Mr. Agovino has retained an attorney. Member Jensen said he would be unable to attend the July meeting. Member Schmalzbauer was unsure if he would be able to attend. Mr. Roseto said PAC (Pension Advisory Committee) members unable to attend the next meeting should contact him. He will ensure Mr. Agovino’s attorney is advised that there may not be a full board at the July meeting. Mr. Agovino has the option to continue the case until a full board is present. Member Doran moved to continue George Agovino’s request for disability pension hearing to July 10, 2008. The motion was duly seconded and carried unanimously. Pension Advisory 2008-06-12 2 7. Director's Reports Mr. Roseto reported that at the August 18, 2008, Pension Trustees meeting and/or the City Council Work Session, the Pension Attorney and the Pension actuary will provide information regarding the pros and cons of a defined benefit pension plan as compared to a defined contribution pension plan. Discussion ensued. Concern was expressed that pension funds might be used to perform studies for the next Trustees meeting and other meetings. It was remarked that years ago, the city of Largo experienced the loss of their employees' pension plan funds when their financial advisors steered them in another direction and ultimately forced employees to extend their retirement dates. It was commented that there has been a nationwide movement to try to eliminate pension plans. Mr. Roseto said it was not contemplated that guest speakers would be invited to the next Trustees meeting or that debate would occur at the meeting. He said that the Trustees had requested staff provide them with detailed information to ensure they understand the specific types of pension plans, including costs, benefits, other municipalities' pension plans, etc. He said there has been no discussion regarding eliminating the Employees' Pension Plan. He said the Pension actuary reports statistics and the PAC attorney represents the employees, not the City. He said PAC members are welcome to attend the Trustees' meeting. 8. Committee Members to be Heard Member Sarnoff said the PAC election is drawing near and he did not know if he would be re-elected. He thanked everyone and said it has been a pleasure serving with them. Member Jensen reminded everyone to complete their disclosure forms. 9. Adiournment c}/ The meeting adjourned at 9:29 a.m. Chair Pension Advisory Com l& d~ Board Reporter Pension Advisory 2008-06-12 3