08-14-2000� ,�
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ACTIOlV AGENDA
Board of Trustees of 2he Ernployees' Pension Fund
August 14, 2000
1. Cali to Order - 1:03 p.m.
2. Approval of Minutes: 7/17/00 - Approved as subrnitted.
3. Request for acceptance into mernbership: Joshua Jewett, Siervio Hernandes, Gerald
Dowell, Katrina Breedlove, & Barbara Schiil - Approved.
4. Regul�r Pension(s) to be granted: David Krieger - Appraved.
5. Authorize search for "large cap value & mid cap equity" style managers for Employees
Pension Fund; authorize Callan & Associat�s to assist with search; authorize cost of
search, including staff travel of approx. 56,000 and Callan's fee ofi �30,000 to be
paid from pension fund - Approvecl.
6. Other Business
Steve Cypen approved to provide an opinion re Police Chief Sid iClein and Deputy
Potice Chief Bill Baird's request for inclusion in tfie pension plan.
Update re recent legis(ation provided.
Directed that items coming before the Trustees are to be presented to the PAC prior.
7, Adjourn - 1:38 p.rn.
Meeting Date: � � ' � � ��
TC7:
FROM:
SUBJECT:
DATE:
Pension Trustees
Approved by Trustees:
CITY OF CLEARWATER
EMPLOYEES' PENSION PLAN/
PENSION ADVISORY COMMITTEE
Pension Advisory Committee
Recommendation for Acceptance into Pension Plan
July 13, 2000
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As Trustees of the City of Clearwater Employees' Pension Fund, you are hereby notified that the
ernploye�(s) list�d below have been duly examined by a local physician and each has been designated as a
"first class risk". The employment �f th�se individuats brings the number ofi FTE's as of #his date to
1690.2 of 1779.8 budge�ed positions (inclu�ling the City Commission.
T-nese employ�es are eligible for pension m�mbership as noted in the P�nsion Efigibility Date column
below, and it is the recommendation af the Pension Advisory Committee that they be accepted into
mernbership.
Name, Job. Class, 8� D�pt./Div.
Pension Elig.
Hire Date Date
Joshua Jewett, Police Recruit/Police 5/22/00 5/22J00
Siervio Mernandes, Utilities ChemistlPublic Works 4/24/00 4/24/00
Gerald Dow�1l, Parks Service Technician I/Parks & Recreation 6/5/00 6/5/00
Katrina Breedlove, System Analyst Prog. II/Information Tech. 6/12/00 6/12/00
Barbara Schi{l, Sr. AccountanUFinance 6/19/00 6/19/00
Pension Adviso ommittee ha �
�AIM.
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9��'ATER�'�'
SUB)ECT/RECOMMENDATIOfW:
Trustees o� the
Fmployees' Pension Plan
�ger�da Cover Memorandum
Final Agend�� Item #
Meefin� Datc:
8/14/00
D�,vid Krieger, Police D�partment; be granted a regufar pension under Section(s) 2.393 and 2.39i of the
Empioyees' Pension Pian as appro�ed by the Pension Advisory Committee.
� and that the appropriate officials be autE,orized to execute sarne.
SUMMARY:
David Kri�eger,
March 28, 1977,
August 1, 2000.
Police Officer, Police Departr�ent, was employed by the City on
and his pension service credit is effective on April 9, 1973. His pension witl b� effective
E3ase�d on an average salary of approximately $44,089 per year over the past five years, the formula for computing
regular pensions, and Mr. Krieger's selection of the 75% Joint & Survivor Annuity, this pension will approximate
�33,205 annually.
Mr. Krieger was originally employed by the City of Clearwater as a Police Officer from September 3, 1968, to
August 11, 1972. He was reemployed a5 a Police Officer an March 28, 1977. In 1999 Mr. Kri�ger appli�d to the
Pensi�n Advisory Committee and Pensi�n Trustees to buy back his original period of ernploy��nent in order to
receive pension ser�ice credit. On )une 1, 1999, the Pension Trustees approved tl�is request but rescindecl its
approva! on )��ne 7, 1999. Mr. Krieger subsequently filed suit in the Circuit Court of the Sixtl7 �udicial Circuit;
and, by order dated May 22, 2000, the Court nullified the Trustees' action of )une 7, 1999, and ruled in favor of
Air. Krieger. Mr. Krieger repaid the Pension Plan the amount of $4,962.47 and receivecl credit for 1449 days of
pension service. His pension eligibility datE was adjusted to April 9, 1973.
This pension was approved by the Pension Advisory Cornrnittee on July 13, 2000. Section 2,:i93 (p) provides for
norrnai retirement �ligibility when a parti�ipant has completed twenty years of creclited sen�ice in a rype of
ernployrnent cfescribed as "hazardous duty" and furth�r specifically defines service as a Police OfficEr as meetir�g
the f}azardous duty criteria.
R�eviewed by:
Legal Np` Info Tech
(3sidget NA
Purchasing Nq
Risk Mgirt NA
Submitted by:
Public Works
DCM/ACM
Other
Printed on recycled paper
4riginating Dept:
NA Hurnan Resources
NA User Dept,
NA Attachrnents
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❑ None
Costs
Funding Source:
C�ptial hnprovement
Upr.r:ilin6
o�i,��
Appropriation Cade:
Total
Current Fiscal Year
Rev. 2/9a
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SUB)ECT/REC4MMEN �ATIOI'�l:
E�np�oyee's Pension Pl�,n
�r�istee's
Ag�nd� �over l�emorandum
Agenda Item #
Meeting Date:
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Authorize starf to conduct a search for "large cap value and a rnid cap equity" style managers for the
Ernployees Pension Fund; author�ze Callan & Associates to assist with the search; authorize the cost of
the search, including staff trave) of approximately $6,000 and Callan's fee of $30,000 to be paid from the
pension fur�d,
� and that tlie app�opriate officials be authorized to execute same.
SUM1�i�RY:
• For the twelve rnontF�s ending March 30, 2000, the Employees Pensiori Plan had a rate of return of 19.90%
vs. our benchmark of 11.64% and actuarial expected rate of 7%.
e on March 3d, 2000, the plan had investments with a market value of $5i5 million.
• The Inv�stment Comrnittee has been studying the proper investment allocation appropriate for th�
portfolio. The committee has determined that thc portfolio r�eeds to be rebalanced and investments need
to be moved from "growth" equities into "value" equities as well as frorn 'large" capitalization stocks to
"rnid" capitalization stocics. The portfolio is currently over weighfied in those two areas.
e The two rnoney r�anagers curr�ently serving the portfolio's needs in thase areas have had some perf�rmance
pr�blems. While fif�e performance problems do not justify their termination at this tirne the c�rnrnittee is
not comfortable givir�g thern additionai rnoney to manage.
e The investrnent Cornmittee unanimously recornrnends the addition of "large cap value" and
"rnid ca� equity" style manager s to balance the portfolio to the appropriate level.
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The 1nvQStrnent Cornmittee will continue to monitor the pec�formance of the two rn�nagers with
performance problems and if apNropri�te recomn�end terrnination.
The Irzvestrnent Cornmittee is made up of the, Finance Services .qdministrator, Assistant Finance Director,
Finance Controller, Risk Manager, Senior Accountant and C:ash & Investments Manager.
The City contracts with Caflan & Associates to prc,vide performance measurement and to provide
informatioc� on inv�stment managers.
Callan's fee for the sParcf� wifl be $30,000. A savings of $10,��0 if tlie searches were done separateiy.
Callan's fees are paid by directin� investrnent trades through a select�d broker. Uur money managers use
this selected brokc�:- only if they cannot get �etter execution someplace P!se.
The cost of c�mmittee mernber travel to investigate/researc�� tt�e top ranked firms is estirnated at $5,000.
The actual amount will be affected by the location of the investrnent manager(s) and the number that needs
to be researched.
� The Inv�strnent Committee will cume back to the Trustees in late fa(I or �arly next year with the results of
the search for approval.
Reviewed by: Origi�ating Dept: Costs
Legal N�q Info Srvc ��� Finance �� Moskun Total 36,000
Budget Public Works N/A User Dept. Funding Saurce:
Purchasin6 �.�d7A DCM/ACM Finanee Current FY 0 CI
Risk Mgmt N/A Other Attachments OP
,.+r Other 36,Of10
Subnzitteci by: « 646-07410-547200-Si35-000
City hl�nager C7 None A ro riation Code:b46-07410-53�100-585-000
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