11-13-2000IN
Agenda/Pension
11-13-00
C? ? C?Cn
'a
ACTION AGENDA
Board of Trustees of the Employees' Pension Fund
November 13, 2000
1. Call to Order - 10:15 a.m.
2. Approval of Minutes: 10/16/00 - Approved as submitted.
3. Request for acceptance into membership: Jennifer Howard, Scott McGrail, Richard
Martin, Patricia Rooks, Brian Craig, Ronald Rice, Joseph Smith, Christine Parker, &
Paul Burger - Approved.
4. Regular Pension(s) to be granted: Donn Githens & Patrick Adamson - Approved.
5. Pension(s) to be vested: Dolores Hofer - Approved.
6. Previous Pension Contributions to be allowed: Birgitt Dowd, Lawrence Dowd, Mark
Goheen, Alphonso Hinson, & Carol Harvey - Approved.
7. Accept Actuary's Report for Employees' Pension Plan for plan year beginning 1 /1 /00 -
Accepted.
8. Agreement with Christiansen & Dehner, P.A., legal services for Trustees & PAC,
10/1/00-9/30/01 - Approved.
9. Other Business - None.
10. Adjourn - 10:19 a.m.
Meeting Date:
(1-I3-o0
Approved by Trustees:
CITY OF CLEARWATER
EMPLOYEES' PENSION PLAN/
PENSION ADVISORY COMMITTEE
TO:
FROM:
SUBJECT:
DATE:
Pension Trustees
Pension Advisory Committee
Recommendation for Acceptance into Pension Plan
October 12, 2000
3
As Trustees of the City of Clearwater Employees' Pension Fund, you are hereby notified that the
employee(s) listed below have been Cluly 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
1684.2 of 1795.6 budgeted positions (including the City Commission. There were 19.5 FTE's
added in FY 2000/01.
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
enni er Howard, i rary ssistant/Library 5131T94 8/2UM
Scott McGrail, Senior Marine Lifeguard/Marine 9/11/00 9/11/00
Richard Martin, Development Review Tech. I/Planning & Dev. Ser. 9/18/00 9/18/00
Patricia Rooks, Police Information Technician I/Police 9/25/00 9/25/00
Brian Craig, Recreation Supervisor/Parks & Recreation 9123/00 9123/00
Ronald Rice, Survey Assistant 1, Public Works 9/25100 9/25/00
Joseph Smith, Lead Parking Attendant/Public Works 8/28/00 9/23/00
Christine Parker, Police Service Technician I/Police 9/25/00 9/25/00
Paul Burger, Gas Technician I/Gas 9/25/00 9/25/00
* originally hired as part-time; status changed to full-time and pension eligible as of 8/26/00
originally hired as part-time; status changed to full-time and pension eligible as of 9/23/00
air
en visory committee
Trustees of the Item #
Employees' Pension Plan 11/13/00
Meeting Date:
Agenda Cover Memorandum
SUB) ECT/RECOMMENDATION:
Donn Githens, Police Captain, Police Department, and Patrick Adamson, Police Lieutenant, Police 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.
and that the appropriate officials be authorized to execute same.
SUMMARY:
Donn Githens, Police Captain, Police Department, was employed by the City on
August 20, 1979, and his pension service credit is effective on that date. His pension will be effective
January 1, 2001.
Based on an average salary of approximately $62,696 per year over the past five years, the formula for computing
regular pensions, and Mr. Githens' selection of the 100% Joint & Survivor Annuity, this pension will approximate
$36,147 annually.
Patrick Admason, Police Lieutenant, Police Department, was employed by the City on
August 1, 1977, and his pension service credit is effective on that date. His pension will be effective
January 1, 2001.
Based on an average salary of approximately $62,298 per year over the past five years, the formula for computing
regular pensions, and Mr. Adamson's selection of the 100% Joint & Survivor Annuity, this pension will
approximate $39,217 annually.
These pensions were approved by the Pension Advisory Committee on October 12, 2000. Section 2.393 (p)
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 Captain
and Police Lieutenant as meeting the hazardous duty criteria.
Reviewed by: Originating Dept: Costs
Legal NA Info Tech NA Debbie Ford/Human Resources Total
Budget NA Public Works NA User Dept. Funding Source:
Purchasing NA DCM/ACM Captial Improvement Current Fiscal Year
Risk Mgmt NA Other NA Attachments Operating
Other
Appropriation Code:
Submitted by: ? None
City Manager
Printed on reevcled naner Rev. 2/98
'Trustees of the
Item #
Employees' Pensions Plan Meeting Date: 11/13/00
Agenda Cover Memorandum
SUBJECT/RECOMMENDATION:
Dolores Hofer, Gas Department, be allowed to vest her pension under Section(s) 2.397 and 2.398 of the
Employees' Pension Plan as approved by the Pension Advisory Committee.
and that the appropriate officials be authorized to execute same.
SUMMARY:
Dolores Hofer, Customer Service Representative, Gas Department, was employed by the City on January 6,
1990, and her pension service credit is effective on that date. She resigned from City employment on
September 29, 2000.
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 (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. Ms. Hofer would have completed ten years of service and reached age 65 as of
September 18, 2008.. Her pension will be effective on October 1, 2008. This request was approved by the
Pension Advisory Committee on October 12, 2000.
Reviewed by: Originating Dept: Costs
Legal NA Info Tech NA Debbie Ford/Human Resources Total
Budget NA Public Works NA User Dept. Funding Source:
Purchasing NA DCM/ACM 14L- captial Improvement Current Fiscal Year
Risk Mgmt NA Other NA Attachments Operating
Other
Appropriation Code:
Submitted by: ? None
City Manager
Printed on recycled oaper Rev. 2/98
Trustees of the
Employees' Pension Plan
Agenda Cover Memo},:nslum
Item #
Meeting Date:
69
11/13/00
SUBJECT/RECOMMENDATION:
Birgitt Dowd, Parks & Recreation Department; Lawrence Dowd, Parks & Recreation Department; Mark Goheen,
Finance Department; Alphonso Hinson, Parks & Recreation Department, and Carol Harvey, Parks & Recreation
Department, be allowed to make their previous pension contributions for the time periods indicated as approved
by the Pension Advisory Committee.
and that the appropriate officials be authorized to execute same.
SUMMARY:
The employees listed below were originally employed by the City of Clearwater as permanent part-time.
Although they were classified as permanent part-time employees, it has been determined that they worked full-
time hours during the time periods indicated. When their status was changed to full-time, they became eligible
for pension participation as of that date. During the period of time that they were classified as part-time, they
were ineligible to participate in the City of Clearwater Employees' Pension Plan. Indicated below is the amount
they would have contributed to the Pension Plan during the time they worked full-time hours:
Name Dates Amount
Birgitt Dowd 12/31/73 to 12/31/74 $345.62
Lawrence Dowd 12/18/74 to 12/10/76 $803.32
MarkGoheen 9/6/79 to 9/6/80 $401.15
Alphonso Hinson 11/14/71 to 11/10/72 $263.98
Carol Harvey 7/13/81 to 7/13/82 $436.64
In 1999 the Committee considered a similar request frorn Darold Brink, an employee in the Marine Department,
and approved the payment of his pension contributions for the time he was working full-time hours although
classified as part-time. After distributing information City-wide asking for a response from former part-time
employees who worked 1950 (for a 37.5-hour per week position) or 2080 (for a 40-hour per week position)
hours in a 12-month period, Human Resources received responses from nineteen employees. It was determined
that five of the nineteen were improperly classified as part-time and entitled to pay their contributions to receive
pension credit.
At the Pension Advisory Committee's (PAC's) meeting on October 12, 2000, the Committee approved these
requests to pay contributions to receive service credit with the employees paying 51/6 interest per year. Should
the Trustees approve these requests, the amount owed as of October 31, 2000, for each of these employees is as
follows:
Birgitt Dowd $1,219.34
Lawrence Dowd $2,637.17
Mark Goheen $1,072.87
Alphonso Hinson $1,033.57
Carol Harvey $1,076.06
Reviewed by: Originating Dept: Costs
Legal NA Info Tech NA Debbie Ford/Human Resources Total
Budget NA Public Works NA User Dept. Funding Source:
Purchasing NA DCWACM captial Imprmement Current Fiscal Year
Risk Mgt-tit NA Other NA Attachments Operating
Other
Appropriation Code:
Submitted by: 0 None
City Manager
Printed on recvcled naner Rev. 2/98
Agenda Item-- Pension Buy Backs
Page 2
Section 2.393(1) of the City of Clearwater Code (1980) provided that "All permanent employees of
the city shall be required to pay the assessments provided for in this division and are required to
participate in the fund hereby created. The trustees of this pension plan and fund shall have the right
to determine from time to time which employees are permanent employees of the city ...."
Section 2.3930) of the City of Clearwater Employees' Pension Fund, effective January 1, 1996,
provides that "Employee shall mean any person employed by the Employer as a full-time, permanent
employee." Section 2.395(a)(1) provides that "unless otherwise provided herein, all employees of
the Employer shall be required to make the contributions specified in Section 2.396 and shall be
required to participate in the Plan." Section 2.393(2) provides that the Trustees "shall have the right
to determine from time to time which persons are full-time employees for the purposes of the
Plan...."
This matter is now being forwarded to the Pension Trustees for consideration.
,.....
rf
Employees Pension Plan
Agenda Cover Memorandum 1?
Item #
SUBJECT / RECOMMENDATION:
Meeting Date: 1 I , 1 2 , 00
Accept the Actuary's Report for the Employees' Pension Plan for the plan year beginning I/1/00-
I ] and that the appropriate officials be authorized to execute same.
SUMMARY:
• The 1/1/00 actuarial report for the Employees' Pension Plan indicates a City contribution of $1,722,874 is
required. However, the City Ordinance governing the pension plan requires that the city contribute at least
7% of the compensation of all employees participating in the plan (estimated at $3,565,618).
• The difference between the required contribution of $3,565,618 and the actuarial determined contribution of
$1,722,874 will be added to the existing credit balance, currently at $12,442,498.
• The low contribution requirement is primarily due to the phase in of prior asset gains and the excellent
investment returns realized in 2000. The Employees' Pension Plan experienced a fifth consecutive year of
excellent investment performance. The market value basis performance for the last five years (1995, 1996,
1997) 1998, and 1999, respectively) has been 23.36%, 14.80%, 17.49%, 16.74%, and 18.61%.
• The funded status of the plan decreased from 174% at 1/1/99 to 162% at 1/1/00, primarily due to the plan
amendment, which increased the plans actuarial accrued liabilities by nearly $53 million. This amendment
added a 1.5% annual cost of living increase, and additional normal retirement age of 65 with 10 years of service,
plus additional eligibilities and benefits for police and firefighters as required by 175/185 legislation.
• The draft Actuary Report is available in the City Clerk's Office for review.
Reviewed by: Originating Dept: Costs
Legal N/A Info Srvc N/A Finance i.M Total N/A
Budget Public Works N/A User Dept.
Funding Source:
Purchasing N/A DCvUACM Current CI
FY
Risk Mgmt N/A Other N/A Attachments OP
Other
Submitted by:
City Manager O None
A ro riation Code:
Printed on recvcled naner Rav_ WOR
PPJCEWATERHOUSQOPERS D
October 9, 2000
Ms. Margaret L. Simmons, CPA
Finance Director
Finance Department
City of Clearwater
100 S. Myrtle Avenue
Clearwater, Florida 33758-4748
Dear ?GIs. Simmons:
PricewaterhouseCoopers LLP
101 East Kennedv Boulevard
Suite 1500
Tampa FL 33602-5147
Telephone 813, 229 0221
Facsimile X81 3i 229 3646
Enclosed is a third draft copy of the actuarial valuation and report which sets forth the
costs and liabilities of the City of Clearwater Employees' Pension Plan for the January 1
to December 31, 2000 plan year. 'rhe priman purpose of this report is to provide
management with a budgeting tool to assist in fi,n.Z:ng the plan in a systematic manner.
The City's minimum required contribution to -satisfy Florida Statutes for 2000 is
$1.722,874 (less any portion of the credit balance. currently $12.442,498). However, the
ordinance establishing the plan requires the Cite to contribute at least 7% of payroll. Any
amounts contributed by the City in excess of the minimum of $1.722,874 would increase
the plan's credit balance.
The decrease in the City's required contribution compared to projections made in 1999 is
primarily due to the phase in of prior asset ga:n: and the excellent investment returns
realized in 2000. The return on plan investment was approximately 19% on a market
value basis compared to the assumed rate of 70. o.
Once you have had a chance to review this inforrr_ation. please give us a call if you have
any questions, comments or would like to schedule a meeting to reN-iew the report.
Very truly yours, W
Stephen M. Metz
Associate of the Society of Actuaries
Enrolled Actuary 499-4342
Principal
SMM/dns
Enclosures
DRAFT
ACTUARY'S REPORT FOR THE
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
As of January 1, 2000
To determine annual contribution
For the Plan Year: 01/01/00 - 12131100
To be paid in the Fiscal year: 10/01/00 - 09/30/01
DRAFT
October 9, 2000
City of Clearwater
P.O. Box 4748
Clearwater, FL 33758-4748
Ladies and Gentlemen:
This report presents the results of the January 1, 2000 actuarial valuation of the City of Clearwater Employees'
Pension Plan. It has been prepared primarily to present to management the contribution requirements for 2000
and also the current status of funding of accumulated plan benefits. Section IV of this report includes a
presentation of the information required by the Government Accounting Standards Board (GASB) Statements
No. 25 and 27.
Our calculations were based on financial data and employee data furnished by the Cit\ of Clearwater.
The valuation was based upon generally accepted actuarial methods, and we performed such tests as we
considered necessary to assure the accuracy of the results. To our knowledge there are no benefits or expenses
to be provided by the plan for which a liability or current cost was not established. We certifv that the
amounts presented in the accompanying report have been appropriately determined acc,?rding to the actuarial
assumptions stated herein.
Statement by Enrolled Actuary
This actuarial valuation and/or cost determination was prepared and completed by me or under my direct
supervision, and I acknowledge responsibility for the results. To the best of my knowledge. the results are
complete and accurate, and in my opinion. the techniques and assumptions used are reasonable and meet the
requirements and intent of Part V11. Chapter 112. Florida Statutes. There is no he:-.fit or exrl-nse to the
provided by the plan or paid from the plan's assets for which liabilities or current costs ha\e not been
established or otherwise taken into account in the valuation. All known events or trends which may require a
material increase in plan costs or required contribution rates have been taken into account in the valuation.
Respectfully submitted,
Stephen M. Metz
Associate of the Society of Actuaries
Enrolled Actuary Number 99-4342
Mark E. Knecht
Associate of the Society of Actuaries
Enrolled Actuary Number 99-5471
DRAFT
CONTENTS
SECTION I
SECTION 11
SECTION III
SECTION IV
SECTION V
SECTION VI
SECTION VII
SECTION VIII
SUMMARY
FUNDING
ASSETS
ACCOUNTING
CENSUS DATA
ASSUMPTIONS AND METHODS
SUMMARY OF PLAN PROVISIONS
COMPARATIVE SUMMARY OF
PRINCIPAL VALUATION RESULTS
Pages
I- 7
8-12
13- 16
17- 18
19-23
24 - 25
26-28
29 - 33
DRAFT
CITY OF CLEARWATER EtiIPLOYEES' PENSION PLAIN
SECTION I -- SUMMARY
A.
Actuary's Comments
This report presents the highlights of the January 1. 2000 actuarial valuation prepared to determine the
contribution requirements for the 2000-2001 fiscal year. Since the last actuarial valuation of the plan
on January 1, 1999, there have been no changes in the actuarial assumptions and methods. The plan
provisions were changed effective January 1. 2000 to provide a 1.5% cost of living increase, an
additional normal retirement age of 65 with 10 vears of service, plus additional eligibilities and
benefits for police and firefighters. For a detailed description of the plan provisions, please see Section
VII and for a detailed description of the actuarial assumptions and methods, please see Section VI of
this report.
The minimum required City Contribution for the 2000 plan year is $1.722.874 (excluding the credit
balance of $12,442,498) compared to SO for 1999. As a percentage of payroll, this represents an
increase from 0% to 3.4%. The minimum required contribution was affected by the following factors:
Y The plan amendment increased actuarial accrued liabilities by S?1921,724 and increased the
required contribution from $0 to $1,722,874.
9 an actuarial investment return of 17.96% in comparison to an asswned rate of 7.0%,
• actual salary increases of 4.16% in comparison to an assumed rate of 5.0%, and
• actual expenses for the year were $648.529 more than expected.
The plan's credit balance is currently equal to 512.442,498, providing an additional cushion against
future contributions. Although State La«- does not require employer contributions for 2000. the
ordinance establishing the plan does require a minimum of 7% of payroll. The reconciliation of the
minimum req-,:red contribution from the 1999 plan year level to the 2000 level is as follows:
Minimum Contribution - 1999 0
Increase / (Decrease) in Normal Cost (2.970,325)
Increase / (Decrease) in amoritization payments 33.985.768
Increase / (Decrease) in expected expenses 648,529
(Increase) / Decrease in expected employee contributions (101,670)
Increase / (Decrease) in Net Interest 160,572
Minimum Contribution - 2000 $ 1,722,874
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION I - SUMMARY
A. Actuary's Comments, (continued)
In addition, the market value of assets of the plan exceeds the actuarial value by more than $76
million. Over the next four years this excess will be included in the actuarial value and will help
reduce the funding requirements.
The funded status of the plan decreased compared to the prior year, primarily due to the plan
amendment. The ratio of assets at market value to the actuarial present value of accumulated plan
benefits decreased from 174% at January 1. 1999 to 162% at January 1. 2000.
2
I
f
1
CRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION I -SUMMARY (continued)
B. Contribution Requirements for the Plan Year Ending December 31. 2000
Minimum Required Employer Contribution
Florida Statutes
7% of Payroll
$ 0
$ 3,565.618
The employer contribution is assumed to be made uniformly during the first two quarters of the fiscal
year beginning on October 1. 2000. Differences in the investment return due to contributions actually
being made at any other time will be recognized as an actuarial gain or loss in the following valuation.
The minimum required contribution represents a funding level which %vill satisfy the minimum funding
requirements under Part V11, Chapter 112, Florida Statutes. Please refer to Section VI and VII of the
report for a summan- of the actuarial assumptions and plan provisions. respectively.
3
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION I - SUMMARY (continued)
C. Comparative Summary of Principal Valuation Results
Actuarial Valuation Prepared as of. Jan. 1, 2000 Jan. 1, 1999 Jan. 1, 1998
(a) Participant Data
Number Included
Active Members 1,518 1.465 1,476
Retirees and Beneficiaries 507 497 451
Terminated Vested Participants 35 24 13
Annual Payroll of Actives $50,937,403 $49,666.523 $47,281,198
Annualized Benefits
Retirees and Beneficiaries $9,655.297 $8,736.788 $ 7,434,602
Terminated Vested Participants $ 834.478 $ 609.254 $ 208,617
(b) Actuarial Reserves
Market Value $491,489.099 $416.808.909 $358,473.903
Actuarial Value $414,826,422 $354,088.751 $308,596,133
(c) Liabilities
Present Value of Expected Benefits:
Active Participants:
Retirement Benefits $283,447,057 $235,098.023 $225,106,202
Termination Benefits 16,239,014 14,698.087 14,168,647
Disability Benefits 13,217,260 1 1,750.'52 11,440,100
Death Benefits 3,945,767 3,746.148 3,547,472
Refund of Employee Contributions 1,891,531 1.91 1.990 1,914,673
Total Active $318,740,629 $267,204,600 $256,177,094
Terminated Vested Participants 9,413,395 6,924.622 1,874,204
Retirees and Beneficiaries 124,703,109 96,038,941 82,152,143
Total Present Value of Expected Benefits $452,857,133 $370,168,163 $340,203,441
Liabilities Due and Unpaid $ 0 $ 361,709 $ 282,796
4
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION I - SUMMARY (continued)
C. Comparative Summary of Principal Valuation Results, (continued)
Actuarial Valuation Prepared as of: Jan. 1. 2000 Jan. 1, 1999 Jan. 1, 1998
(c) Liabilities (continued)
Unfunded Actuarial Accrued Liability
Frozen Initial Liab. (FIL)
Supplemental FIL
Supplemental FIL
Supplemental FIL
Supplemental FIL
Supplemental FIL
Supplemental FIL
Asset Valuation Method
Change
Plan Amendment
Plan Amendment
- 1.•'1/79
- 1/1/79
I / 1 /82
1/1/87
I /l/88
1/ 1 /89
- 11 /94
$1.759.058
1.304.186
223,217
(2,771,611)
1.195.238
1.356,771
1,813.879
$ 2,436,537
1,422,814
238,018
(2,930.862)
1.231.458
1.394,067
1,859,232
$ 3.069,696
1.533,681
251,850
(3,079,694)
1.265,308
1.428,923
1.901,618
3,549,242
14.733,735
N/A
- 1'1/96
- 1/1/00
3,442,263
14.355,793
$52.921.724
3,497,561
14,551,155
N/A
$ 24.654,359
$75.600,518
$ 23,699,980
$3,503,365
$6.812,956
$ 3.932.987
(3.485.400)
669,786
245,236
731.596
4.42 1,0.39
476,907
(1.299,185)
3,903.845
275.309
$ 3.932,987
$12.442,498
$ 6,812.956
$216,607,963
Total
(d) Funding Account Credit Balance
Prior Year Amount
Prior Year:
Required Employer Contributions
Employer Contributions Made
Interest on Credit Balance
Total
(e) Actuarial Present Value of Accrued
Benefits (see Subsection VII for detail)
Changes During Prior Year:
Value from Prior Year:
Benefits Paid
Interest, Aging and Benefits Accrued
Change in Assumptions
Change in Plan Provisions
Net Change
$303,443,955
$240,168,855
(9,869,486)
28,828,023
0
44,316,563
63,275,100
$240,168,855
$216,607,963
(8,197,805)
31,758,697
0
0
$ 23,560,892
$202,942,802
(7,694,700)
21,359,861
0
0
$ 13, 665,161
Value at Current Year $303,443,955 $240,168,855 $216,607,963
5
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION I - SUMMARY (continued)
C. Comparative Summary of Principal Valuation Results, (continued)
Actuarial Valuation Prepared as of. Jan. 1, 2000 Jan. 1, 1999 Jan. 1. 1998
(f) Pension Cost for Year
Normal Cost $(3,127,557) $ (94,366) S1.276.592
Amortization of Unfunded Frozen
Initial Liability 6,490.613 2.504,845 2.504.845
Admir;strative Expenses 1,673,570 1,025,041 1.170.974
Shortfall for Expenses in Prior Year 648,529 (145,933) 44,277
Interest Adjustment 112.711 (47.861) 84.993
Total Required Contribution $5,797,866 $ 3,241,726 S 5.081,681
As a Percentage of Payroll 11.4% 6.5% 10.7%
Anticipated Employee Contributions $4,074,992 $ 3,973,322 $ 3,782,496
As a Percentage of Payroll 8.0% 8.0% 8.0%
City Required Contribution $1,722,874 $ 0 S 1.299.185
As a Percentage of Payroll 3.4% 0.0% 2.7%
(g) Prior Year Actual Contributions made by
Employees
City
$4,498.314
4.421.039
$8,919,353
N/A
4.293.961
3.903.8-15
$ 8,197,806
N/A
S 4.108.525
3.669.786
$ 7,778,311
N/A
Total
(h) Gains and Losses
(i) Other Present Values
Present Value of Future Salaries
At attained age
$404,261,700 $417,232,600 $402,814,600
6
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION I - SUMMARY (continued)
C. Comparative Summary of Principal Valuation Results, (continued)
Actuarial Valuation Prepared as of. Jan. 1, 2000 Jan. 1, 1999 Jan.], 1998
(i) Other Present Values (continued)
Present Value of Employee Contributions
At attained age $34,808,865 $ 33,336,186 $ 32,170,725
Present Value of Future Normal Costs $(25,127,309) $ (807,612) $ 10,885,936
0) Comparison of Actual and .-Assumed
Salan, Increases Investment Return
Year Ended Actual Assumed Actual Assumed
Market Value Actuarial Value
12/31/86 7.4% 5.0% 13.21% N/A 7.0%
12/31/87 5.901/0 5.0% 10.78% N/A 7.0%
121'3) 1 /88 9.1% 5.0% 9.120 ,10 N/A 7.0%
12/31/89 8.7% 5.0% 20.84% N/A 7.00/0
12/31/90 5.3% 5.0% 6.21 % N/A 7.0%
12/31/91 6.1% 5.0% 28.52% N/A 7.0%
12/31 /92 6.8% 5.0% 6.49% N/A 7.0%
12/31/93 1.2% 5.0% 9.29% 7.42% 7.0%
12/31/94 4.4% 5.0% 0.89% 6.28% 7.0%
12/31/95 6.4% 5.0% 23.36% 9.14% 7.0%
12/31/96 6.7% 5.0% 14.80% 11.54% 7.0%
12/31/97 5.6% 5.0% 17.490/o 13.74% 7.0%
12/31/98 7.4% 5.0% 16.74% 15.28% 7.0%
12/31/99 4.2% 5.0% 18.61% 17.96% 7.0%
7
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION It - FUNDING
A. Development of the Unfunded Frozen Actuarial Accrued Liability
1. Unfunded Frozen Actuarial Accrued Liability
as of January I, 1999 $ 23,699,980
Interest to Deccember 31. 1999 S 1,658,999
2. Employer Normal Cost* for Year with interest
to December 31, 1999
3. Required Employer Contributions for Period
4. Increase due to plan amendment
5. Unfunded Frozen Actuarial Accrued Liability
as of December 31, 1999 (Items 1 + 2 - 3 + 4)
* Includes Expenses and Adjustments
$25,358,979
( 3,411,781)
( 731,596)
52,921,724
$75,600,518
8
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION II - FUNDING (continued)
B. Development of Normal Cost
The Normal Cost is the portion of the cost of projected benefits «hich is allocated to the current year by the
actuarial cost method. The Normal Cost for the plan years bed=inning January 1, 2000, January 1, 1999 and
January 1, 1998 are determined as follows:
Total Projected Actuarial Liability: Jan. 1. 2000 Jan. 1, 1999 Jan. 1, 1998
The present value as of the beginning of the plan
year of all benefits expected to be paid in the future
to current participants.
• Active participants $31 S.740.629 $267,204.600 $256.177,094
• Terminated vested participants 9.413.395 6,924,622 1,874,204
• Retired and disable participants 1=-1.703.109 96.038.941 82.152.143
• Total Participants $152.857.133 $370.168,163 $310.203,441
Credit Balance: Employer contributions from
prior years reserved for future use. $ 12.442.498 $ 6,812,956 $ 3.932.987
Fund: The actuarial value of fund assets as of the
beginning of the plan year. S41 .826.422 $354.088,751 $308.596,133
Excess of Total Projected Actuarial Liability
Over the Fund ;Minus the Credit Balance: The
portion of the projected total actuarial liability to be
funded in the future. S -50.473.209 $ 22,892,368 $ 35.540,295
This portion is divided into two components:
a. Unfunded Frozen Actuarial Accrued Liability S "5.600.518 $ 23,699,980 $ 24.654,359
b. Present value of future service liability (funded
over the expected future service years of current
participants) $(25,127,309) $ (807,612) $ 10,885,936
Present Value of Future Covered Payroll: . $109,261.700 $417,232,600 $ 402,814,600
9
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION II - FUNDING (continued)
B. Development of Normal Cost, (continued)
Jan. 1, 2000 Jan. 1, 1999 Jan. 1, 1998
Normal Cost Rate: The ratio of the present value
of future service liability to the Present Value of
Future Covered Payroll. (6.14%) (0.19%) 2.70%
Annual Covered Payroll: The reported payroll for
plan participants who have not attained the assumed
retirement age.
S 50,937,403 $ 49,666,523 $ 47,281,198
Normal Cost: The annual cost as of the beginning
of the plan year to fund the future service liability
over the expected future years of service of the
current participants. S(3,127,5 57) $ (94,366) $ 1,276,592
10
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION II - FUNDING (continued)
C. Schedule of Amortization Payments
Initial Jan. 1, 2000 Annual
Date Initial Amortization Unamortized Amorization
Established Reason Amount Period (Years) Amount Payment
1/1 /79 * Frozen Initial
Liability (Fl L) $ 9,726,419 24.5 S 1,759,058 $ 792,558
1 /1 /79 Supplemental
FIL 2,707,962 30.0 1,304,186 203,949
1/1/81 Supplemental
FIL 390,421 30.0 223.217 29,404
1 /l /82 Supplemental
FIL (4,521,985) 30.0 (2,771,611) (340.571)
1 /1 /87 Supplemental
FIL 1,519,142 30.0 1,195,238 114,413
1/1/88 Supplemental
FIL 1,673.738 30.0 1.356.771 126.057
1/1/89 Supplemental
FIL 2,177,772 30.0 1.813.879 164.018
l /l /94 Asset Valuation
Method Change 3,724,296 30.0 3.442,263 280,493
l /l / 96 Plan Amendment 15,063,842 30.0 14,355,793 1,134,524
1/l/00 Plan Amendment 52,921,724 30.0 52,921.724 3.985.768
Total Charges $89,905,316 $78,372,129 S 6,831,184
Total Credits (4,521,985) (2,771,611) (340,571
Total $85,383,331 575,600,518 S 6,490,613
* Established July 1, 1963 and being amortized over a forty year period beginning on that date.
11
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION If -FUNDING (continued)
D. Anticipated Amortization Schedule
Shown below is the anticipated amortization schedule for the Unfunded Frozen Actuarial Accrued Liability
taking into account the plan's funding policy.
Anticipated .-amortization Schedule
Unfunded Frozen
Date Actuarial Accrued Liability
2000 $75,600.518
2001 73,947.598
2002 72,178.974
2003 70,286,547
2030 0
On July 1, 1963, the Unfunded Frozen Actuarial Accrued Liability was established equal to the difference
between the retirement plan's accrued liability, determined under the Entn- Age Normal Funding Method and
the actuarial value of plan assets. According to the plan's funding policy, the initial liability is to be amortized
by a series of level payments over a forty-year period. Subsequent changes in the level of the Frozen Actuarial
Accrued Liability due to plan amendments or changes in actuarial assumptions are to be amortized on a
straialit-line basis over a period of thirty years. By contributing more than the stated funding policy, the
amortization of the Unfunded Frozen Actuarial Accrued Liability can be accelerated.
12
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION III - ASSETS
Comparative Balance Sheet
As of December 31, 1999
ti-larlcet Value Market Value
ASSETS 121/31/199 12/31 /98
Cash
Money Market Accounts
Guaranteed Investment Contracts
Corporate Equity Securities
Bonds
$ 3,202.171 $ 5,825.791
17.962,731 24,012,247
5,000.000 10,509,722
328.850.861 250,102,536
134.116.658 124,344,592
Total Investments $489.132.421 $414,794,888
Receivables:
Interest - pooled cash 105.812 185,842
Employer Contributions 2.250.866 1,828,179
Total Assets $491,489.099 $416,808,909
LIABILITIES AND ACTUARIAL RESERVES
Liabilities:
Accounts Pavable $ 438.474 361.709
Total Liabilities $ 435.474 $ 361,709
Actuarial Resen-es:
Accumulated Member Contributions 3=1.806.865 31,653,064
Balance of Actuarial Reserves 456.243.760 384,794,136
Total Actuarial Resen•es $491.050.625 416.447.200
TOTAL LIABILITIES AND ACTUARIAL RESERVES $491,489,099 $416,808,909
13
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION III -ASSETS (continued)
Schedule of Chances in Actuarial Reserves
For the Plan year Ended December 31, 1999
Market Value
Revenues:
Employee Contributions $4,498,314
Employer Contributions 4,421,039
Earnings on Investments:
Interest 10,456,083
Dividends 2,234,825
Realized Net Gains on Securities Transactions 5-3.403,206
Unrealized Appreciation (Depreciation)
on Investments
Expenses:
Benefits Paid 9.830,699
Refunds of Contributions 38,787
Professional Fees 1,673,570
Other Expenses 0
Net Change in Actuarial Reserves
Actuarial Reserves at Beginning of Plan Year
Actuarial Reserves at End of Plan Year
66,094,1 14
11.209.779
$86,223,246
11,543.056
$74,680,190
$416,808,909
$491,489,099
14
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION III -ASSETS (continued)
Development of Actuarial Value of Assets
1. Actuarial Reserves at Beginning of Plan Year $416,808,909
2. Time Weighted Employee Contributions 2,249,157
(.5 x 4,498,314)
3. Time Weighted Employer Contributions 276,315
(.5 x .125 z 4,421.039)
4. Time Weighted Benefit Payments 4,523,514
(11/24) x (9,869,486)
5. Time Weighted Expenses 836.785
0 x 1,673,570)
6. Time Weighted Value of Actuarial Reserves $413,974,082
(Items 1 +2+3-4-5)
7. Expected Asset Return 28,978,186
(Item 6 x .07)
8. Actual Asset Return 77,303,893
9. Difference of Expected Return over Actual Return (48.325,707)
10. Actuarial Reserves at End of Plan Year 491,489,099
11. Expected Actuarial Reserves at End of Plan Year 443,163,392
(Items 9 + 10)
12. Difference Between Actual and Expected Asset Return $ 48,325,707
(Items 10 - 11)
15
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION III -ASSETS (continued)
Development of Actuarial Value of Assets (continued)
Date Initial Annual Amount Amount Excluded Amount Excluded
Established Amount Recognized Prior Valuation Current Valuation
01/01/96 $ 35,600,142 $ 7,120,030 $(7,120,030) $ (0)
01/01/97 $ 20,905,508 $ 4.181,102 $(8.362.202) $ (4,181,100)
01/01/98 $ 32.148.671 $ 6.429,734 $(19,289.203) $(12,859,469)
01/01/99 $ 34,935.904 $ 6.987.181 $(27,948.723) $(20,961,542)
01/01/00 $48.325.707 $9.665,141 $ 0 $(38,660,566)
Total $(76,662,677)
Actuarial Reserves $491,489,099
Actuarial Value of Assets $414,826,422
16
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION IV - ACCOUNTING
A. Plan Description and Contribution Information
Membership of the plan consisted of the following at January 1, 1999, the date of the latest actuarial valuation:
Retirees and beneficiaries receiving benefits 497
Terminated plan members entitled to but not yet receiving benefits 24
Active plan members 1,465
Total 1.986
Number of participating employers I
17
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION IV - ACCOUNTING (continued)
B. Required Supplementary Information Scheduling of Funding Progress
Actuarial Actuarial
Actuarial Value of Accrued Liability
Valuation Assets (AAL)
Date (a) Frozen Entry Age
(b)
01/01/91
01/01/92
01/01/9-3
01/01/94
01/01/95
Unfunded
AAL
(UAAL)
(b-a)
Funded
Ratio
(a/b)
UAAL as a
Percentage
of Covered
Payroll
( (b-a) / c)
$141,865,764
$184,746,269
$198,315,690
$213,014,474
$225,482.726
$152,118,075
$194,550,126
$207,639,701
$225,549,346
$237,428,796
01/01/96
01/01/97
01/01/98
01/01/99
01/01/00
$244,744,488
$272,346,200
$308,596,133
$354,088,751
$414,826.422
$271,124,381
$297,892,502
$333,250,492
$377,788,731
$490,426,940
S10,252,311
59.803,857
59.324,011
$12.534,872
$11.946,070
526.379,893
525,546,302
$24.654,359
$23,699,980
575.600,518
93%
95%
96%
94%
95%
Covered
Payroll
(c)
$34,532,753
$36,626,332
$38,731,039
$38,710,974
$41,371,332
90% $44,208,964
91% $44,955,348
93% $47,281.198
94% $49,666,523
85% $50.937,403
30%
27%
24%
32%
29%
60%
57%
52%
48%
148%
The information presented in the required supplementan, schedules was detennined as part of the actuarial
valuations at the dates indicated. Additional information as of the latest actuarial valuation follows:
Valuation date 01/01/99
Actuarial cost method Frozen Entry Abe
Amortization method Level Dollar Closed
Remaining amortization periods Various
Asset valuation method Five Year Average *
Actuarial assumptions:
Investment rate of return 7.0%
Projected salary increases 5.0%
Include merit increases 2.0%
Cost-of-living adjustments 3.0%
* Effective January 1, 1994, the asset valuation method was changed from market value to a five
year average method.
18
DRAFT
CI'T'Y OF CLEARWATER EMPLOYEES' PENSION PLAN
SEC'T'ION V - CENSUS DATA
A. Reconciliation of Employee Data
A summary of changes in the employee data from January 1, 1999 through January 1. 2000 follows.
Employees who do not participate in the plan are not included.
Retired
Terminated Participants
Active Vested And
Employees Employees Beneficiaries Total
Participants included in the
January 1, 1999 valuation 1,465 24 497 1,986
Nonvested terminations (63) (63)
Data Revisions (1) 11 10
Vested terminations (16) 16
Deaths without eligible
beneficiary (29) (29)
Retirements (25) (3) 28
Cash settlements
Rehires 1 (1)
New participants 156 156
Participants included in the
January 1, 2000 valuation 1,518 35 507 2,060
Active Participants:
Fully vested 711
Partially vested 0
Non-vested 807
Total 1,518
19
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION V - CENSUS DATA (continued)
B. AQe - Service Distribution of Active Participants as of January 1. 2000
Years of Service
Attained 0-4 5 - 9 10 - 14 15 - 19 N - 24 25 + Total
Age No. No. No. No. No. No. No. Earnings
Under 25 45 0 0 0 0 0 45 $ 700,029
25 to 29 96 30 l 0 0 0 127 $ 3,283,282
30 to 34 102 78 21 2 0 0 203 $ 6,118,845
35 to 39 66 54 89 37 0 0 246 $ 8.577,301
40 to 44 71 59 79 59 22 6 296 $10,287,005
45 to 49 42 32 55 58 55 31 273 $10.673,473
50 to 54 21 31 46 30 36 37 201 $ 7.450,399
55 to 59 8 14 14 19 6 12 73 $ 2.609,895
60 to 64 4 13 5 9 5 5 41 S 1.435,207
65+ 1 ? 2 3 4 1 13 $ 464.110
Total 456 313 312 217 128 92 1518 $51,599,546
Active Participant Statistics
Average Age 42.08 years
Average Service 10.86 years
20
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION V - CENSUS DATA. (continued)
C. A ge - Service Distribution of Active Hazardous Duty Partici pants as of Januar y 1, 2000
Years of Service
Attained 0-4 5-9 10 - 14 15 - 19 20 - 24 25+ Total
Age No. No. No. No. No. No. No. Earnin&s
Under 25 6 0 0 0 0 0 6 $ 114,096
25 to 29 40 9 0 0 0 0 49 $ 1,517,991
30 to 34 35 32 11 0 0 0 78 $ 2,968,734
35 to 39 8 26 44 10 0 0 88 $ 3,959,112
40 to 44 1 4 22 24 9 0 60 $ 2,916,749
45 to 49 0 3 9 14 41 8 75 $ 3,929,287
50 to 54 0 1 2 4 15 18 40 $ 2,068,645
55 to 59 0 0 1 2 3 8 14 $ 695,260
60 to 64 0 0 0 0 0 1 1 S 55,370
65+ 0 0 0 0 0 0 0 S 0
Total 90 .75 89 54 68 35 411 $18,225,242
Active Participant Statistics
Average Age 39.34 years
Average Service 12.49 years
21
CRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION V - CENSUS DATA (continued)
D. Age - Service Distribution of Active Non-Hazardous Dutv Participants as of Januarv 1. 2000
Years of Service
Attained 0-4 5-9 10 - 14 15 - 19 20 - 24 25+ Total
Age No. No. No. No. No. No. No. Earnings
Under 25 39 0 0 0 0 0 39 $ 585,933
25 to 29 56 21 1 0 0 0 78 $ 1,765,291
30 to 34 67 46 10 2 0 0 125 $ 3,150,111
35 to 39 58 28 45 27 0 0 158 $ 4,618,189
40 to 44 70 55 57 35 13 6 236 $ 7,370,256
45 to 49 42 29 46 44 14 23 198 $6,744,186
50 to 54 21 30 44 26 21 19 161 $ 5,381,754
55 to 59 8 14 13 17 3 4 59 $ 1,914,635
60 to 64 4 13 5 9 5 4 40 $ 1,379,837
65 - 1 ? ? 3 1 I 13 $ 464.110
Total 366 238 223 163 60 57 1107 $33,374,302
Active Participant Statistics
Average Age 43.10 years
Average Service 10.26 years
1) 1)
CRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION V - CENSUS DATA (continued)
E. Inactive Participant Count and Benefits as of January 1, 2000
Number of Annual
Participants Benefit
Terminated Vested Participants
Retired Participants and Beneficiaries
35 S 834,978
507 59,655,297
23
DRAF7-
CITY OF CLEARWATER EMPLOY'EES' PENSION PLAN
SECTION VI - ASSUMPTIONS AND METHODS
A. Actuarial Methods
Investment Yield: The investment rate of earnings is assumed to be 7% per annum.
Mortality: Mortality was based on the 1983 Group Annuity Mortality Table for Males with female ages
set back six years.
Withdrawal: Pre-retirement withdrawals are assumed to occur in accordance with standard scales of
moderate turnover rates (Scale 255) for males and heaN-y turnover rates (Scale 355) for females. Simple rates
are shown below:
Rate of Withdrawal
Aye Male Female
20 14.90,lo 37.4%
25 9.9% 22.4%
30 6.9% 14.9%
35 4.9% 10.40/;
40 2.8% 7.4%
45 1.7% 4.3%
50 0.4% 2.7%
55 0.0% 0.9%
60 and over 0.0% 0.0%
Disabilitv: Pre-retirement incidence of disability is assumed to occur in accordance with a standard scale
of moderate disability rates (Class 1, 1952 Inter-Company). Rates for females are assumed to be double that
for males. Sample rates for males are slio-,t?n below:
Age Incidence of Disability
20 .17%
25 .17%
30 .17%
35 .18%
40 .20%
45 .23%
50 .29%
55 .39%
60 .59%
65 1.04%
70 1.74%
Service vs. Non-service: All pre-retirement deaths are assumed to be non-service related. All incidence
of disability is assumed to be service related.
Salary Scale: Future salaries are assumed to increase at the rate of 5% per year, 3% due to cost-of-
living, and 2% due to merit increases.
24
CRAFT
CITY OF CLE ARWATER EMPLOYEES' PENSION PLAN
SECTION VI -- ASSUMPTIONS AND METHODS (continued)
A. Actuarial Assumptions, (continued)
Retirement Rate: Each active participant is assumed to retire on the later of the actuarial valuation date
or his Normal Retirement Date.
Timing of Contribution: The employer contribution is assumed to be made uniformly during the first
two quarters of the fiscal year beginning on the October 1 following the valuation date.
Employees Covered: All participants as of the actuarial valuation date.
Spouses: Eighty-five percent (85%) of the active participants are assumed to be married (or have
dependents eligible for Survivor's Benefits). Fernale spouses are assumed to be five years younger than male
spouses.
Expenses: Expenses are assumed to equal last year's actual expenses.
Completeness of Assumptions:All benefits and expenses to be provided by the Plan are recognized in the
valuation. All known events are taken into account; no current trends are assumed to discontinue n the future.
B. Asset Valuation Method
The Actuarial Value of Assets is based on a five year moving average of assets valued at statement value.
The statement value reflects an amortized value for bonds and market value for equity investments. From the
statement value, actual and expected return on investments is derived. Any difference between the actual
return on investments for a given year and the expected return is spread over five years. After five years tite
entire amount is fully recognized. Ho%\ever, the Actuarial Value of .assets xvill never exceed 1?0% nor fall
below 80% of the market value of assets. The use of a derived value of plan assets rather than current market
value will produce a more stable funding pattern for the plan by partially eliminating the effect of unusual
market fluctuations.
C. Actuarial Cost Method
The actuarial cost method is the Frozen Entryy Age Actuarial Cost Method. Under this method the excess of
the actuarial present value of projected benefits over the sum of the actuarial value of assets plus the Unfunded
Frozen Actuarial Accrued Liability is funded on a level basis over the future compensation of active
employees. The portion of this excess allocated to the current year is called the Normal Cost. The Frozen
Actuarial Accrued Liability is determined using the Entry Age Actuarial Cost Method. This Frozen Actuarial
Accrued Liability is adjusted from time to time to reflect changes in the Plan or in the actuarial assumptions.
The Unfunded Frozen Actuarial Accrued Liability is separately amortized over a fixed number of years.
25
DRAF7-
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION VII - SUNIMARY OF PLAN PROVISIONS
This summary is intended as an outline of plan provisions and does not alter the intent or meaning of the
provisions contained in the contract and / or plan document.
Plan Year: January 1 to December 31.
Eligibility: Any permanent employee shall participate in the plan immediately.
Current Employee Contributions: 8.0% of wages and salaries actually paid to a participant.
Average Monthly Compensation: The total Compensation received during the highest five _Years of
service of the last ten years divided by sixty.
Accrued Benefit: A monthly benefit equal to 2.75% of Average Monthly Compensation multiplied by
the number of years of service to date.
Retirement Benefit:
a. Eligibility (Normal Retirement Date):
• Non-Hazardous Duty: Completion of at least 20 years of service and the attainment of age 55,
completion of at least 10 years of service and the attainment of ace 65 or the completion of 30
years of service.
• Hazardous Duty: Completion of 20 years of service or completion of at least 10 years of service
and the attainment of age 55.
b. Normal Retirement Benefit: The participant's Accrued Benefit payable as of his actual retirement
date on or after his Normal Retirement Date . No adjustment applies for deferred retirement beyond
his Normal Retirement Date.
C. Normal Form of Benefit: A monthly annuity for the life of the participant. After the participant's
death, 100% of the Normal Retirement Benefit shall be paid as a Survivor Annuity to the spouse for
five years. After five years, such Survivor Annuity is reduced to 50% of the original amount. The
Survivor Annuity ceases upon death or remarriage of the spouse. 120 monthly payments are
guaranteed in any case for police and firefighters.
d. Early Retirement Benefit: For police and firefighters, an early retirement benefit is payable to
those participants who have completed 10 years of service and the attainment of age 50. The benefit is
equal to the retirement benefit calculated as of date of early retirement, reduced by 3% per year for
each year below age 55.
26
CRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION VII -SUMMARY OF PLAN PROVISIONS (continued)
e. Cost of Living Increase: All participants commencing annuity benefit payments shall be entitled to a
1.5% increase in their benefit amount each year.
Disabilitv Benefit:
a. Eligibility: Total and permanent disability. If the disability is non-service connected, there is an additional
requirement of the completion of 10 years of service.
b. Disabilitv Benefit: The participant's Accrued Benefit, payable immediately. If the disability is service
connected. the Disability Benefit must be at least 66.67% of Average Monthly compensation.
c. Normal Form of Benefit: A monthly annuity for the life of the participant. After the participant's death, a
Survivor Annuity is provided as described under the Normal Form of Benefit for retirement benefits. 120
monthly payments are guaranteed in any case for police and firefighters.
d. Cost of Living Increase: All participants commencing annuity benefit payments shall be entitled to a
1.5% increase in their benefit amount each year.
Death:
a. Eligibility: Any actively employed participant.
b. Death Benefit: The participant's Accrued Benefit, payable immediately. If death is service
connected, the Death Benefit must be at least 66.67% of Average Monthly Compensation.
c. Form of Benefit: A monthly Survivor Annuity as described under the Normal Form of Benefit.
d. Cost of LiN-in_ Increase: All participants commencing annuity benefit payments shal I be entitled to a
1.5% increase in their benefit amount each year.
Vested Termination:
a. Eligibility: Completion of 10 years of service
b. Termination Benefits: . The participant's Accrued Benefit payable as of his Normal Retirement Date,
provided Employee Contributions are not refunded.
27
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION VII - SUMMARY OF PLAN PROVISIONS
(continued)
c. Form of Payment: A monthly annuity for the life of the participant. After the participant's death, a
Survivor Annuity is provided as described under the Normal Form of Benefit. beginning at the latter of the
participant's Normal Retirement Date or date of death.
d. Cost of Living Increase: All participants commencing annuity benefit payments sliall be entitled to a
1.5% increase in their benefit amount each year.
Non-Vested Termination:
a. Eligibility: Any actively-employed participant
b. Benefit: Refund of Employee Contributions with 5% interest.
c. Form of Benefit: Lump sum.
28
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Trustees of the
Final Agenda Item #
i Employees' Pension Plan 11 /13/00
Meeting Date:
Agenda Cover Memorandum
SUBJECT/RECOMMENDATION:
Award a contract to Christiansen & Dehner, P.A., Sarasota, Florida, in the estimated amount of $30,000 for legal
services for the Board of Trustees of the Employees' Pension Plan during the contract period October 1, 2000, to
September 30, 2001, in accordance with Section 2.564 (1)(g), legal services,
I" and that the appropriate officials be authorized to execute same.
SUMMARY:
In 1999 the Board of Trustees of the City of Clearwater's Employees' Pension Plan entered into an
agreement with the law firm of Christiansen & Dehner, P.A., to provide services to the Board of Trustees
and Pension Advisory Committee. The Pension Advisory Committee and Pension Trustees have been
satisfied with the services provided by the firm.
Christiansen & Dehner, P.A., has submitted a proposal to renew the contract effective October 1, 2000.
The current rates of $180.00 per hour for attorney services and $90.00 per hour for travel time will remain
in effect until January 1, 2001, at which time the rate will be increased to $210.00 per hour and $105.00
per hour respectively. This contract period will run from October 1, 2000, through September 30, 2001.
The renewal of this contract was approved by the Pension Advisory Committee on October 12, 2000. It
now comes before the Board of Trustees for its consideration.
Reviewed by: Originating Dept: Costs $30 ,000
Legal Info Tech NA Debbie Ford/Human Resources Total
Budget Public Works NA User Dept. Funding Source:
Purchasing DCM/ACM AIL Caplial Improvement Current Fiscal Year
Risk blgmt NA Other NA Attachments Operating
Other Pension Fund
Appropriation Code:
Submitted by: ? None 46 07410 530100 585 000
City Mana ter
Printed on recycled Dauer Rev. 2/98
r? 9
S --ee S
-(^r
LEGAL SERVICES AGREEMENT
THIS AGREEMENT is made on the day of , 2000, by and between the
BOARD OF TRUSTEES OF THE EMPLOYEES' PENSION PLAN of the CITY OF
CLEARWATER, FLORIDA, P.O. Box 4748, Clearwater, Florida 33758-4748 (the "Board") and the
law firm of CHRISTIANSEN & DEHNER, P.A., 63 Sarasota Center Boulevard, Suite 107,
Sarasota, Florida 34239 ("Counsel").
WITNESSETH:
WHEREAS, the Board wishes to retain Counsel to provide Pension Attorney Services to
the Board.
NOW, THEREFORE, in consideration of the promises and mutual covenants herein
contained, the parties hereto do hereby agree as follows:
SECTION 1. AUTHORIZATION TO PROCEED AS COUNSEL. Counsel is hereby
authorized to provide pension attorney services as described in and for the professional fees
described in this Agreement.
SECTION 2. SCOPE OF SERVICES. Counsel hereby agrees to provide pension
attorney services to the Board, which shall include legal advice, document and ordinance
preparation, and other services as directed by the Board.
SECTION 3. TERM. This Agreement will be effective from October 1, 2000 through
September 30, 2001.
SECTION 4. PROFESSIONAL FEES FOR SERVICES. The Board and Counsel agree to
a rate of $180.00 per hour for attorney services, and $90.00 per hour for travel time from October
1, 2000 through December 31, 2000, and thereafter shall be $210.00 per hour for attorney
services, and $105.00 per hour for travel time, plus reimbursement for reasonable compensable
expenses subject to Board approval.
SECTION 5. COMPENSABLE EXPENSES. Reimbursement of expenses shall be
made by the Board to the firm for reasonable out-of-pocket expenses as determined by
the Board without markup, including but not limited to long distance calls and facsimiles,
copying or reproducing documents, postage, court costs, parking costs and travel
incurred by Counsel in performance of the duties hereunder. Travel and per diem costs
as well as auto travel expenses shall not exceed that which is available to City of
Clearwater employees.
SECTION 6. INDEMNIFICATION AND INSURANCE. Counsel agrees to protect, defend,
indemnify and hold the Board and its officers, employees and agents free and harmless from and
against any and all losses, penalties, damages, settlements, costs, charges, professional fees or
other expenses or liabilities of every kind and character arising out of or due to any negligent act
or omission of Counsel, its employees, agents and subcontractors in connection with or arising
directly or indirectly out of this Agreement and!or the performance hereof. Without limiting its
liability under this Agreement, Counsel shall procure and maintain during the life of this Agreement
professional liability insurance in an amount of $2,000,000. This provision shall survive the
termination of this Agreement.
SECTION 7. CONFLICT OF INTEREST. It is understood by the Board and Counsel that
Counsel is not aware of any clients of the firm that currently present any conflict between the
interests of the Board and other clients of Counsel. If any potential conflict of interest arises
during the time Counsel is representing the Board, Counsel will promptly inform the Board. The
Board is under no obligation to agree to permit the conflict representation.
SECTION 8. CONSTRUCTION AND AMENDMENTS. This Agreement shall be
governed by and construed in accordance with the laws of the State of Florida. This Agreement
may be amended only by a writing duly entered into by the Board and Counsel.
SECTION 9. CANCELLATION OF AGREEMENT. The Board may cancel or terminate
this Agreement upon ten days advance written notice to Counsel. In the event of cancellation,
Counsel shall immediately cease work hereunder and shall be reimbursed for eligible and
documented reimbursable expenses incurred prior to the date of cancellation. Further, it is
understood and agreed between the Board and Counsel that H. Lee Dehner and Scott R.
Christiansen will be the lead attorneys assigned by the firm to provide the services contained
herein. The Board in its absolute discretion may immediately terminate this Agreement upon
written notice to the firm if the services of this attorney are unavailable to the Board.
IN WITNESS WHEREOF, the Board and Counsel have executed this Agreement as of the
date first written above.
BOARD OF TRUSTEES OF THE
EMPLOYEES' PENSION PLAN OF THE
CITY OF CLEARWATER, FLORIDA
By:
Brian J. Aungst
Chairperson
Approved as to form:
Pamela K. Akin
City Attomey
Attest:
Attest:
Cynthia E. Goudeau
City Clerk
CHRISTIANSEN & DEHNER, P.A.
By:
Its
2