07/14/2008
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES
CITY OF CLEARWATER
July 14, 2008
Present: Frank Hibbard Chair
Carlen Petersen Trustee
John Doran Trustee
George N. Cretekos Trustee
Paul Gibson Trustee
Also Present: William B. Horne, II City Manager
Jill S. Silverboard Assistant City Manager
Rod Irwin Assistant City Manager
Pamela K. Akin City Attorney
Cynthia E. Goudeau City Clerk
Brenda Moses Board Reporter
The Chair called the meeting to order at 2:41 p.m. at City Hall.
To provide continuity for research, items are in agenda order although not
necessarily discussed in that order.
2 - Approval of Minutes
2.1 - Approve the minutes of the June 16, 2008 Pension Trustees meeting as submitted in
written summation by the City Clerk.
Trustee Petersen moved to approve the minutes of the Pension Trustees meeting of
June 16, 2008, as recorded and submitted in written summation by the City Clerk to each
Trustee. The motion was duly seconded and carried unanimously.
3 - Pension Trustees Items
3.1 Employees listed below be accepted into membership in the City of Clearwater’s
Employees’ Pension Plan as approved by the Pension Advisory Committee.
Pension
Elig.
Name, Job Class, and Department/Division Hire Date Date
Christopher Hages, Cust. Wkr./Marine & Aviation 1/19/08 4/26/08
Michele Curtis, Police Com. Oper. Trainee/Police 4/28/08 4/28/08
Margaret Hasty, Pol. Com. Oper. Trainee/Police 4/14/08 4/14/08
Michael Hasty, Pol. Com. Oper. Trainee/Police 4/14/08 4/14/08
Craig Corlis, Pol. Com. Oper. Trainee/Police 4/28/08 4/28/08
Dawn Lucier, Pol. Com. Oper. Trainee/Police 4/28/08 4/28/08
Christopher Hages was originally hired as part-time on 1/19/08; transferred to full-time
and pension eligible as of April 26, 2008.
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Trustee Doran moved to accept the listed employees into membership in the City of
Clearwater's Employees' Pension Plan. The motionwas duly seconded and carried
unanimously.
3.2 Lisa Meagher, Customer Service Department, and Patrick Scanlon, fire Department, be
granted regular pensions under Section(s) 2.393 and 2.397 of the Employees’ Pension Plan as
approved by the Pension Advisory Committee.
Lisa Meagher, Customer Service Representative, Customer Service Department, was
employed by the City on March 8, 1976, and her pension service credit is effective on June 3,
1978. Her pension will be effective July 1, 2008. Based on an average salary of
approximately $35,049 per year over the past five years, the formula for computing regular
pensions, and Ms. Meagher’s selection of the 100% Joint & Survivor Annuity, this pension will
approximate $28,602 annually.
Patrick Scanlon, Firefighter/Driver-Operator, Fire Department, was employed by the
City on October 13, 1980, and his pension service credit is effective on that date. His pension
will be effective July 1, 2008. Based on an average salary of approximately $63,769 per year
over the past five years, the formula for computing regular pensions, and Mr. Scanlon’s
selection of the 100% Joint & Survivor Annuity, this pension will approximate $47,690 annually.
These pensions were approved by the Pension Advisory Committee on June 12, 2008.
Section 2.393 provides for normal retirement eligibility when a participant has reached age 55
and completed twenty years of credited service, has completed thirty years of credited service,
or has reached age 65 and completed ten years of credited service. Section 2.393 also
provides for normal retirement eligibility when a participant has completed twenty years of
credited service or has reached age 55 and completed ten years of credited service in a type
of employment described as “hazardous duty” and further defines service as a
Firefighter/Driver-Operator as meeting the hazardous duty criteria. Ms. Meagher qualifies
under the 30 years of service criteria. Mr. Scanlon qualifies under the hazardous duty criteria.
Trustee Cretekos moved that Lisa Meagher and Patrick Scanlon be granted regular
pensions under Sections(s) 2.393 and 2.397 of the Employees’ Pension Plan as approved by
the Pension Advisory Committee. The motion was duly seconded and carried unanimously.
3.3 Approve terminating contract with Denver Investment Advisors.
The Asset Allocation Study that the pension plan has been implementing has an
allocation of 5% of the pension plan’s assets to the mid cap growth asset class. Currently, the
plan has an allocation of 9.74% to this asset class divided between two managers, Denver and
Artisan. As the plan averages in to the asset classes/new money managers (real estate and
emerging markets), the City needs to reduce the allocation to the mid cap growth space to
recommended 5%.
The following is a summary of the two managers respective three-year rolling average
performance, which we use as a performance benchmark.
Period
Pension Trustees 2008-07-14
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Ended Denver Artisan
thrd
3/08 57 43
th
12/07 76 43rd
ndnd
9/07 62 42
thth
6/07 69 47
thth
3/07 77 54
thth
12/06 57 39
rdth
9/06 73 37
thth
6/06 79 55
thth
3/06 75 68
thth
12/05 64 64
The following is a summary of their performance by calendar year:
Year Denver Artisan
ndrd
2007 82 43
thth
2006 17 34
thth
2005 95 76
ndth
2004 42 25
thth
2003 26 57
thrd
2002 7 23
The Pension Investment Committee is recommending that Denver Investment Advisors
be terminated and the funds be used to rebalance the portfolio and fund new asset
classes/managers.
Trustee Gibson moved to terminate the contract with Denver Investment Advisors. The
motion was duly seconded and carried unanimously.
3.4 Michael Hurley, Development and Neighborhood Services Department, and Karen
Backus, Police Department, be allowed to vest their pensions under Section(s) 2.397 and
2.398 of the Employees’ Pension Plan as approved by the Pension Advisory Committee.
Michael Hurley, Building Construction Inspector, Development and Neighborhood
,
Services Department was employed by the City on June 15, 1987, and began participating in
the Pension Plan on that date. Mr. Hurley terminated from City employment on April 28, 2005.
,
Karen Backus, Police Communications Operator, Police Departmentwas employed by
the City on April 3, 1989, and began participating in the Pension Plan on that date. Ms.
Backus terminated from City employment on April 10, 2006.
The Employees’ Pension Plan provides that should an employee cease to be an
employee of the City of Clearwater or change status from full-time to part-time after completing
ten or more years of creditable service (pension participation), such employee shall acquire a
vested interest in the retirement benefits. Vested pension payments commence on the first of
the month following the month in which the employee normally would have been eligible for
retirement.
Pension Trustees 2008-07-14
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credited service, or has reached age 65 and completed ten years of credited service. Mr.
Hurley would have completed at least 20 years of service and reached age 55 on December 3,
2010. His pension will be effective January 1, 2011. Ms. Backus would have completed 30
years of service on April 3, 2019. Her pension will be effective May 1, 2019. These pensions
were approved by the Pension Advisory Committee on June 12, 2008.
Trustee Petersen moved to allow Michael Hurley and Karen Backus to vest their
pensions under Section(s) 2.397 and 2.398 of the Employees' Pension Plan as approved by the
Pension Advisory Committee. The motion was duly seconded and carried unanimously.
4. . Other Business - None.
5 . Adjourn
The meeting adjourned at 2:43 p.m.
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City lerk
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Pension Trustees 2008-07-14
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Employee's Pension Plan Trustees
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