07/14/2008
PENSION TRUSTEES AGENDA
Location: Council Chambers - City Hall
Date: 7/14/2008- 1 :30 PM
1. Call to 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.
~ Attachments
3. Pension Trustee 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.
I@l Attachments
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.
I@l Attachments
3.3 Approve terminating contract with Denver Investment Advisors.
~ Attachments
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.
~ Attachments
4. Other Business
5. Adjourn
Meeting Date:7/14/2008
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve the minutes of the June 16,2008 Pension Trustees meeting as submitted in written summation by the City Clerk.
SUMMARY:
Review Approval: 1) Clerk
Cover Memo
Item # 1
Attachment number 1
Page 1 of 3
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES
CITY OF CLEARWATER
June 16, 2008
Unapproved
Present:
Frank Hibbard
Carlene Petersen
ohn Doran
orge N. Cretekos
Gibson
Chair
Trustee
Trustee
Trustee
Trustee
City Manager
Assistant City Manager
Assistant City Manager
City Attorney
City Clerk
Board Reporter
ems are in agenda order although not
Trustees meeting of May
Clerk to each Trustee.
3 - Pension Trustees Items
3.1
Em
Name, Job Class, and Department/Division
Catherine Lee, Planner I/Planning
Cameron Moeller, Sr. Marine Lifeguard/Mar. & Aviation
Scott Starkey, Fleet Mechanic/Solid Waste/General Ser.
Shane O'Neill, Planner I/Planning
Trustee Petersen moved to accept the listed employees into me
Clearwater's Employees' Pension Plan. The motion was duly seconded a
unanimously.
3.2 Approve the recommended administrative expenditures totalinq $330,500 for fiscal vear
2008-09.
Pension Trustees 2008-06-16
Hem # 1
Attachment number 1
Page 2 of 3
The Employees' Pension Plan does not have a legal requirement to have a budget. The
Trustees must approve all expenditures. The following are routine expenditures that staff is
requesting approval for the sake of efficiency. These expenditures involve routine business
matters and are mo mall dollar amounts.
Printin
members of
passed b
the an
esti
for the statutorily required annual information distribution to the
ostage is for certified mailings required under a new rule
d other pension related materials. Membership dues are for
Pension Trust Association. Training and travel are for the
tate statute.
vel for FY07 was $0 and for FY08 YTD is $2,162.01.
rney firm. Annual attorney's fees also include medical
thorized by the Pension Advisory Committee. Total paid
D is $30,069.27
ral Fund and the Self Insurance Fund is for the cost of the
venue to the general and insurance funds. This
Human Resources, Payroll, and Finance.
for the next year. If a referendum is needed,
, safekeeping, actuary, and pension
y the Trustees and are not included in
I n response to a
required for changes t
, Finance Director;
nsion plan. She said
ons said a referendum is
ts has remained steady.
Trustee Doran moved to approve
$330,500 for fiscal year 2008-09. The
tive expenditures totaling
arried unanimously.
Martha Pages, Customer Service Rep
employed by the City on May 2, 1994, and her pen
Her pension will be effective June 1, 2008. Based
Varghese Jolly, Water Plant Operator A, Public Utilities epartment,
the City on October 19, 1987, and his pension service credit is effective on
pension will be effective June 1, 2008. Based on an average salary of a
per year over the past five years, the formula for computing regular pens
selection of the 100% Joint & Survivor Annuity, this pension will approxim
oyed by
e. His
ately $56,688
nd Mr. Jolly's
046 annually.
Gregory Smith, Gas Specialist, Gas Department, was employed by the City on
December 4, 1976, 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 $48,085 per year over the
Pension Trustees 2008-06-16
item # 1
Attachment number 1
Page 3 of 3
past five years, the formula for computing regular pensions, and Mr. Smith's selection of the
Joint & Survivor Annuity, this pension will approximate $41,713 annually.
These pensions were approved by the Pension Advisory Committee on May 8, 2008.
Section 2.393 provi
and completed t
or has reache
the 10 year
service c
of servo
r normal retirement eligibility when a participant has reached age 55
of credited service, has completed thirty years of credited service,
mpleted ten years of credited service. Ms. Pages qualifies under
5 criteria. Mr. Jolly qualifies under the age 55 and 20 years of
under the age 55 and 20 years of service and the 30 years
artha Pages, Varghese Jolly, and Gregory Smith be
s(s) 2.393 and 2.397 of the Employees' Pension Plan as
mittee. The motion was duly seconded and carried
Attest:
City Clerk
Pension Trustees 2008-06-16
item # 1
Meeting Date:7/14/2008
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Employees listed below be accepted into membership in the City of Clearwater's Employees' Pension Plan as approved by the Pension
Advisory Committee.
SUMMARY:
Name, Job Class, & Department/Division
Hire Date
Pension Elig.
Date
Christopher Hages, Cust. Wkr./Marine & Aviation
Michele Curtis, Police Com. Oper. TraineeIPolice
Margaret Hasty, Pol. Com. Oper. TraineeIPolice
Michael Hasty, Pol. Com. Oper. TraineeIPolice
Craig Codis, Pol. Com. Oper. Trainee/Police
Dawn Lucier, Pol. Com. Oper. TraineeIPolice
1/19/08
4/28/08
4/14/08
4/14/08
4/28/08
4/28/08
4/26/08 *
4/28/08
4/14/08
4/14/08
4/28/08
4/28/08
* originally hired as part-time on 1/19/08; transferred to full-time and pension eligible as of 4/26/08
Review Approval: 1) Clerk
Cover Memo
Item # 2
Meeting Date:7/14/2008
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
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.
SUMMARY:
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.
Review Approval: 1) Clerk
Cover Memo
Item # 3
Meeting Date:7/14/2008
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve terminating contract with Denver Investment Advisors.
SUMMARY:
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), we need to reduce the
allocation to the mid cap growth space to recommended 5%.
The following is a summary of the two managers respective 3 year rolling average performance, which we use as a performance
benchmark.
Period
Ended Denver Artisan
3/08 57th 43rd
12/07 76th 43rd
9/07 62nd 42nd
6/07 69th 47th
3/07 77th 54th
12/06 57th 39th
9/06 73rd 37th
6/06 79th 55th
3/06 75th 68th
12/05 64th 64th
The following is a summary of their performance by calendar year
Year Denver Artisan
2007 82nd 43rd
2006 17th 34th Cover Memo
2005 95th 76th Item # 4
2004 42nd 25th
2003
26th
57th
2002
7th
23rd
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.
Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) Clerk 6) City Manager 7) Clerk
Cover Memo
Item # 4
Meeting Date:7/14/2008
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
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.
SUMMARY:
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 Department, was 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.
Section 2.393 (p) provides for normal retirement eligibility when a participant has reached age 55 and completed twenty years of
credited service, has completed 30 years of 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.
Review Approval: 1) Clerk
Cover Memo
Item # 5