02-14-2000
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Agenda/Pension
2-14-00
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ACTION AGENDA
Board of Trustees of the Employees' Pension Fund
February 14, 2000
following closed bargaining session beginning at 1:00 P.M.
1. Call to Order - 1:25 p.m.
2. Approval of Minutes: 1/18/00 - Approved as submitted.
3. Request for acceptance into membership: Christina M. Byers, Brian Frank, Norine
Borrow, Linda Weglarz, Robert Warnken, Shawn Helms, Judy Beaman, Mason
Merryman, Floyd Thurman, Brian Barker, Richard Rispoli, Allison Griffiths, Gordon
Ross, Kimmie Brooks, James Newman, Paul San Giovanni, Thomas Coyle, &
Stephanie Vilar - Approved.
4. Regular Pension(s) to be granted: Sue C. Creamer, Janice White, & Jay Love -
Approved.
5. Pension(s) to be vested: Charles Esposito, Bryan Makowski, & Thomas Mudano -
Approved.
6. Approve increase in performance measure fees paid to Callan & Associates, from
$14,000 to $31,500 per year - Approved.
7. Authorize staff to conduct search for international equity style manager for Employees
Pension Fund; authorize Callan & Associates to assist with search; authorize cost of
search, including staff travel of approx. $3,500 and Callan's fee of $20,000 to be
paid from pension fund - Authorized.
8. Other Business - None.
9. Adjourn - 1:51 p.m.
Meeting Date: a d-1. D Q
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TO: Pension Trustees
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Approved by Trustees:
CITY OF CLEARWATER
EMPLOYEES' PENSION PLAN/
PENSION ADVISORY COMMITTEE
FROM: Pension Advisory Committee
SUBJECT: Recommendation for Acceptance into Pension Plan
DATE: January 13, 2000
As Trustees of the City of Clearwater Employees' Pension Fund, you are hereby notified that the
employee(s) listed below have been duly examined by a local physician and each has been designated
as a "first class risk". The employment of these individuals brings the number of FTE's as of this
date to 1691.6 out of 1777.5 budgeted positions (including the City Commission).
These employees are eligible for pension membership as noted in the Pension Eligibility Date column
below, and it is the recommendation of the Pension Advisory Committee that they be accepted into
membership.
Pension Elig.
Name, Job. Class, & Dept./Div. Hire Date Date
Christina M. Buyers, Police Communications Operator/Police 11/22/99 11/22/99
Brian Frank, Police Communications Operator/Police .11/22/99 11/22/99
Norine Borrow, Police Social Services Specialist/Police 11/22/99
Linda Weglarz, Police Aide/Police 5/24/99 11 /22/99 *
Robert Warnken, Police Aide/Police 6/27/99 11/22/99 *
Shawn Helms, Parks Service Technician I/Parks & Recreation 1 1 /22/99 1 1 /22/99
Judy Beaman, Staff Assistant !/Planning & Development 12/6/99 12/6/99
Mason Merryman, Police Communications Operator/Police 1 1 /22/99 1 1 /22/99
Floyd Thurman, Mechanic 11, General Support Services 12/6/99 12/6/99
Brian Barker, Engineer II/Public Works 12/6/99 12/6/99
Richard Rispoli, Parks Service Technician I/Parks & Recreation 12/6/99 12/6/99
Allison Griffiths, Police Recruit/Police 12/20/99 12/20/99
Gordon Ross, Parks Service Technician I/Parks & Recreation 12/20/99 12/20/99
Kirnmie Brooks, Parks Service Technician I/Parks & Recreation 12/20/99 12/20/99
James Newman, Senior Marine Lifeguard/Marine 12/18/99 12/18/99
Paul San Giovanni, Parks Service Tech. I/Parks & Recreation 12/20/99 12/20/99
Thomas M. Coyle, Police Recruit/Police 12/20/99 12/20/99
Stephanie Vilar, Police Recruit/Police 12/20/99 12/20/99
* originally hired as part-time; transferred to full-time and pension eligible as of 11 /22/99
Pension Adviso 00mmittee Chair
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Trustees of the
Employees' Pension Plan
Agenda Cover Memorandum
Final Agenda Item #
Meeting Date:
2/14/00
SUBJECT/RECOMMENDATION:
Sue C. Creamer, Police Department; Janice White, Police Department; Jay M. Love, 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.
11 and that the appropriate officials be authorized to execute same.
SUMMARY:
Sue C. Creamer, Police Service Technician, Police Department, was employed by the City on
December 3, 1973, and her pension service credit is effective on July 1, 1974. Her pension will be effective
January 1, 2000.
Based on an average salary of approximately $30,923 per year over the past five years, the formula for computing
regular pensions, and Ms. Creamer's selection of the joint & Survivor Annuity, this pension will approximate
$21,685 annually.
Janice White, Police Officer, Police Department, was employed by the City on
June 12, 1978, and her pension service credit is effective on that date. Her pension will be effective February 1,
2000.
Based on an average salary of approximately $45,340 per year over the past five years, the formula for computing
regular pensions, and Ms. White's selection of the 10-Year Certain and Life Annuity, this pension will
approximate $28,319 annually.
Jay M. Love, Firefighter, Fire Department, was employed by the City . on
August 6, 1979, and his pension service credit is effective on that date. His pension will be effective March 1,
2000.
Based on an average salary of approximately $40,466 per year over the past five years, the formula for computing
regular pensions, and Mr. Love's selection of the 50% Joint & Survivor Annuity, this pension will approximate
$23,528 annually.
These pensions were approved by the Pension Advisory Committee on January 13, 2000. Section 2.393 (p)
provides for normal retirement eligibility when a participant has reached age 55 and completed twenty years of
credited service or has completed 30 years of credited service. Ms. Creamer qualifies under the age 55 and 20
years of service criteria. Section 2.393 (p) also provides for normal retirement eligibility when a participant has
completed twenty years of credited service in a type of employment described as "hazardous duty" and further
specifically defines service as a Police Officer or Firefighter as meeting the hazardous duty criteria. Ms. White
and Mr. Love qualify under the hazardous duty criteria.
Reviewed by: Originating Dept:
r Costs
Legal NA Info Tech NA Human Resources ?® Total
Budget NA Public Works NA User Dept. Funding Source:
Purchasing NA DCM/ACM Captial lmpro%emem Current Fiscal Year
Risk Mgmt NA Other NA Attachments Operating
other
Appropriation Code:
Submitted by: ? None
City Manager
Printed on recvcled saner Rev. 2/98
tl?
Trustees of the
Employees' Pension Plan
Agenda, Cover Memorandwn
Final Agenda Item #
Meeting Date:
5
SUBJECT/RECOMMENDATION:
2/14/00
Charles Esposito, Police Department; Bryan Makowski, Police Department, and Thomas Mudano, Planning &
Development Services, 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.
_El and that the appropriate officials be authorized to execute same.
SUMMARY:
Charles Esposito, Police Officer, Police Department, was employed by the City on August 18, 1986, and his
pension service credit is effective on that date.
Bryan Makowski, Police Officer, Police Department, was employed by the City on
November 7, 1988, and his pension service credit is effective on that date.
Thomas Mudano, Neighborhood Manager, Planning & Development Services Department, was employed by the
City on December 9, 1985, and his pension service credit is effective on that date.
The Employees' Pension Plan provides that should an employee cease to be an employee of the City of Clearwater
after completing ten or more years of creditable service (pension participation), then 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 provides for normal retirement eligibility when a participant has reached age 55 and completed
twenty years of credited service or has completed 30 years of credited service. Section 2.393 also provides for
normal retirement eligibility when a participant has completed twenty years of credited service in a hazardous
duty position and specifically designates the position of Police Officer as hazardous duty.
Mr. Esposito would have completed twenty years of service as a Police Officer on August 18, 2006. His pension
will be effective on September 1, 2006. Mr. Makowski would have completed at least twenty years of service as a
Police Officer on November 7, 2008. His pension will be effective December 1, 2008. Mr. Mudano would have
completed thirty years of service on December 9, 2015. His pension will be effective January 1, 2016. These
requests were approved by the Pension Advisory Committee on January 13, 2000.
Reviewed by: Originating Dept: Costs
Legal NA Info Tech NA Human Resources kdk- Total
Budget NA Public Works NA User Dept. Funding Source:
Purchasing NA DCM/ACM c.tptial Improvement Current Fiscal Year
Risk Mgmt NA Other NA Attachments Operating
Oder
Appropriation Code:
Submitted by: ? None
City Manager
Printed on recvcted saner trey ?/QR
M
Employee's Pension Plan
Trustee's
Agenda Cover Memorandum
Agenda Item #
Meeting Date: 2/14/00
SUBJECT/RECOMMENDATION:
Approve the increase in performance measure fees paid to Callan and Associates from $14,000 to
$31,500 per year,
10 and that the appropriate officials be authorized to execute same.
SUMMARY:
The following is a summary of the pension plan's history with Callan and Associates:
Date Description Annual Fee
10/88 Relationship began $10,200
10/90 Fee increase $14,000
09/91 Eickhoff, Piper & Willoughby repl aced Fla Nat'l Bank $14,000
10/91 Added Shields as a money manag er $14,000
09/96 Added Ark as a money manager $14,000
08/97 Added ARM as a money manager $14,000
07/98 Sirach replaces Shields as money managers $14,000
Currently Callan provides performance measure on the following money managers:
Money Manager Type Style Ca,
Aeltus Investment Management Equities G rowth Large
Ark Asset Management Equities Val Lie Large
ARM Capital Managers Bonds Core N/A
Denver Investment Management Equities Growth Medium
Hanson Investment Management Equities G rowth/vaI ue Large
Eickhoff, Piper & Willoughby Bonds Treasury N/A
Sirach Capital Management, Inc. Bonds Core N/A
• Any manager searches would be at an additional fee, currently $20,000 per search.
• Callan has been requesting an increase in its fee for several years. Staff has been able to postpone a fee
increase until this time.
0 Callan has request a fee increase to $33,500 per year. Staff has been able to reduce that request to
$31,500.
Reviewed by: Originating Dept: Costs
Legal a Info Srvc N/A Finance '-Y . jb•r ucr ,vo Total 31,500
Budget Public Works N/A User Dept. Funding Source:
Purchasing DCM/ACM Finance Current FY 31,500 CI
Risk Mgmt Other Attachments OP
Other 31,500
submitted by:
City Manager ? None --,-Appropriation Code: 646-07410-5 30100-585-000
Printed on recvcled caper Rev. 2/98
• It has been nine years since the last fee increase and the pension plan has added three money managers
since the last increase.
• There are several other firms that provide this type of service. However, the proposed fee is well below the
industry norm for this type of service. The normal fee for pension plans our size range between $64,500
and $86,000 per year, which would include manager searches.
• Staff has been very pleased with Callan's services and performance.
• Callan has offices located in San Francisco, New York, Atlanta, Chicago, and Denver. The Atlanta Office
serves as the City's main contact.
• At September 30, 1999, the plan had investments with a market value of $430 million.
• A copy of the contract is in the City Clerks office.
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Employee's Pension Plan
Trustee's
Agenda Cover Memorandum
Worksession Item #:
Final Agenda Item #
Meeting Date: 2/14/00
SUBJECTIRECOMMENDATION:
Authorize staff to conduct a search for a "international equity" style manager for the Employees Pension
Fund, authorize Callan & Associates to assist with the search, authorize the cost of the search, including
staff travel of approximately $3,500 and Callan's fee of $20,000 to be paid from the pension fund,
I@ and that the appropriate officials be authorized to execute same.
SUMMARY:
• The Investment Committee unanimously recommends the addition of an "international equity" style
manager to better diversify the investments.
0 For the year ending September 30, 1999, the Employees Pension Plan had a rate of return of 17,13%.
• At September 30, 1999, the plan had investments with a market value of $430 million.
• Up to 10% of the plan's assets may be in international investments.
® The Investment Committee is made up of the, Finance Services Administrator, Assistant Finance Director,
Finance Controller, Risk Manager, Senior Accountant and Cash & Investments Manager.
0 The City contracts with Callan & Associates to provide performance measurement and to provide
information on investment managers.
• Callan's fee for the search will be $20,000. Callan's fees are paid by directing investment trades through a
selected broker. Our money managers use this selected broker only if they cannot get better execution
someplace else.
• The cost of committee member travels to investigate/research the top ranked firm (s) is estimated at $3,500.
The actual amount will be affected by the location of the investment manager(s) and the number that needs
to be researched.
• The Investment Committee wil I come back to the Trustees in late summer or early fall with the results of
the search for approval.
Reviewed by: Originating Dept: Costs
Legal N/A Info Srvc N/A Finance Total 23,500
Budget Public Works N/A User Dept. Funding Source:
Purchasing DCM/ACM Finance Current FY 23,500 CI
Risk Mgmt N/ Other Attachments OP
Other 23,500
Submitted by: 646-07410-547200-585-000
City Manager Q None Appropriation Code: 646-07410-530100-585-000
W Printed on recycled paper
Rev. 2/98