Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
05-30-1995
;t:. ?,1. P?-ryi:', .r rt .. it a; . ,!. ::r` •7 ^•, ?, , '1 i +, P , 'F,, ''R :, ?. ,?t? ,}.1 , •'1 .1 `I .. a ,. `?' IE •St ? .. } ii.' 'r•'V_i`' .[, 'k:dt+'y st;.°,.f;; x-S'r'i.•r:?!?i? ij7?? •?ial:?' •`:; "I' %r s•S r:, ',:f., 'Y:i •W \t'::f':i` 'S `? .7.,a. .5 =?1r '.?:-. ?r S 1 ?.r5, s• .} ,.?' .Y. •ty,: Yf"'... t r`r , .4'? ?Y Z •`ri a?'•' 4 'f ? .b. 1" .J ?'•C.•• .?;, F.°:r.T' ltl :''°`" 'f„'31? ,Ir' fr i+s• •Y' .'r° r ?'`?lt g 5 ''?i IiN`? :i'?. ,'?5;,;. ?,.: er ,j. ?o,, '=i. {' '-I (" S (?, "i. •z']? sal 4 ri t? °t°` .J" Y., X151?' ?C• a ,5'?+;' y r?',?S ??::i: r a•" '.5?: ` .X, ?m t1 i!? ?,;.?.7'•?P E':,t,, seyr .1!!r` ? ;::?i?? .?1, . y .?i ..?+.. r1 '? 'hc. ,g7 1x? ?• _ ''1?' .?-?'"• o-?. }?:,r: :.t: ?'n? i` :?L' e G^j:::''P:.?? s' ,}': 't.. r?srr> ,?•;o.;: '.r. '"??„?d'i 51 ,y r .t ?t ??§- ?`d'i ,{, ,'?'€ ?i,? ' „f; ^t r• t? ? ,;?-i' e. f':^ _ :?f, ??1•?' „>Z ``'`','"° 1`?i'.'.,?•'• -"• ,! 3?•,.. ; ?'',7e:'r Y, AL'.;y Ir.?t, V1?7rM' `r1 ?' ' .?. ?t, . 5» `. fY :'•<S r; l?. ?,1. tc; . I .? • F t f;` ' ?•1, 1' - yyt1 r3', 5:?r;7 'I'? .L E .x- ,'4'1 -r? ,?t,. ar C ':i iP^. `?g;. t' j :?`.,, r°f z.. .:I.•i:. ?'. yjr{ •?a;';' ° d +P'??'?: t;; ?p1 ? 5.,+? yy'' .•5 ?'. ^ q+ttyy }},, ,? i{ .!•? _' ..?:'':`v(:'fit`• ,. I- '?,'_=t ??°,1LE,..,-; 1 '.?+ ? '? t S<;f,},?...i ?,?,'•,5:: `:?'? ??5d't `f.° }.,51'I+ 14: q{S'i f'ry.-F -: 9:5 '+r°P '7.a. .1r•r.`: ?•=: tt: er°,.r ?''.,)?i';.9;,: .,S •? }f:1i;`;`}??j>?rE ?!', E { 'r,j :I . 4:.y., ri {..?g a':??', {{°'k: cr;} ?;, t:#,sr y •,rid ; f? .?"r. :'!'?;: ? ? t''J : :':' "?'S ,t! -r. e' f . .a 41.: ?:'{` ':?••.?,'•r • .. i.: .u?:?'?`?,_M?' :! ? 5'd?. ?' *'° i t'?.1.:' ? 4,?.?,€? r ..!S I .a:y .k,'i ?}: p.. ;'? •"?` ? ij >Ft: •?, ,'.C',i:?, ?•.."t . ? I " .n,-;•,-',r. ? ,' b: • a° ., {'_?i . .?'• .! v. % . S 1((yy?' ;?•L1}.{[. `:°f r_:`S ;F?. '•,1,.{'F`-?1'. .y:.'4.. .r'.1° •r.•.!.{r'';" } ?iJ''11; j, ir: .srl','?. .: :. .L,'r? ??r ;!?P. •SS,: I. k'is h., 9s ..5 ?., r :I" SS }} a' 1'.s '?'r 1. /?1'. J,.e.?j•.' 1 ,? f ?5:?'?: E??.? ?Sf?i l.lt 4j a t: ',r="?,. !•?„'f 'l?,y71 .S ,S lt'Et 1, .?7.q? l4 _ '•Y' w.-ir 4 r'I "i? .r ?1' ??,:: ?P-f' ?.h ` `'1'., S•L:;? .r' ? e ,`! .•re - ,?l; .'y.! 1. 'ri? !, "1°'4f. .? •'I I,F , '! ,Y. i t.,r 1•,1 • r 'fir. t ,'4.:,? ? ,,1, rS.?; { .: ??' {J . ?? »'S /. ? :? r{k 1 . ;?r. •/ ,It it - ', ? {.. I ?... - '' I , .. ` +, r - L/•!•l.. 'rl •Ir 1.?? ;• ?1- t ? e { 1 I ? I ? °? da, ensi on low ..5 3'Omm"95. ' . ' • i , ! ; . I ' ! , 1 ' y - s5,, a?S j'fY1.1'. gt-.yr?! .f, :Sj'?t;`•.47a: . SC'3 e •'.. {(1{???! ' ' "• "; `:F' :., Il' 'il F f •- y. . • - ,a,. f ?>1'e.' n a ' ? F . ..!', .t.< 7 t4' a k- r . ??'!' :i', !4 '. '!, S' ... .. ., ., „ 4 1 '1 . :r . r . eFi? t1 . r % . 1, . . Yo o4 tr r.. •, t.Y. .., .. `i , . . . /f.. l.i twe. ... -•.z••' 4,. .. . . t . . . , l . iS, r r ,' ' .- . .. ' ACTION AG ENDA ?.: ' ' . Board of Trustees of the Em ployees' Pension Fund . ; • Tuesday, May 30, 1995 1:.. Call -to order 1. 9:01 a.m. ` .. 2. Approval of Minutes 2. Approved as'submitted. of 5115/95 3::. (Cont. from'5115/95) Authorize 3. Authorized. ' payment of costs associated with ' services facilitating a review of the ° Pension Plan provided by attorney. r Lee Dehner and actuary Ward Foster ($14,803.19) 4.'- . Job-Connected Disability Pension . 4. Granted, . ' • to be granted: ., Ronald K. Pownall 5.' Request to withdraw retirement 5: Approved withdrawal request: Robert E. Morrison 6. Pension Annual Report and., 6. ' Authorized as stated with the Determination of pension balance of contributions needed to contribution amounts for FY 1995- be deducted from the available 96 - Authorize a continuation of credit balance. the 6% employee contribution through 12/31/95 and designate a city contribution for FY 199596 which is equal to the actual employee contributions for calendar year 1995 7. Other. Business: 7. None. 8, Adjournment: B. 9:18 a.m.. i ' Wit Agenda Cover Memorandum Item # Meeting Date: • s3oq5 Subject: Pension Plan Administrative Costs Recommendation/Motion: Authorize the payment of costs associated with services facilitating a review of the Employees' Pension Plan provided by attorney Lee Dehner and actuary Ward Foster. ® and that the appropriate officials be authorized to execute same. BACKGROUND: During the course of ; collective bargaining with four (4) City unions, the unions formed a coalition to develop a consensus approach relating to proposed changes to the Employees' Pension Plan. The group utilized the services of a pension attorney and actuary who met with the Union and City representatives, as well as with the City's actuary. Because of his expertise, this pension attorney served as an excellent resource and sounding board to the parties and provided professional and technical advice useful in the review process of the Pension Plan and i n establishing- approaches that would improve the Plan. Those Improvements Included such areas as how to reduce the attractiveness of disability pensions and increase retention of employees as active, contributing staff members; the establishment of pre-existing condition waivers to preclude the Plan's cost associated with disabilities 'that relate to such conditions; improvement in the review of disability entitlement review procedures; restructuring the Pension Advisory Committee to reflect representation of employees and elected officials; and many other Items of mutual concern and Interest. Because the pension attorney role was essentially to serve as an expert and facilitator to the parties In mutual review of the Pension Plan leading to the development of proposals that will make it a better and more effective Plan, it has been requested by the coalition that the costs of the pension attorney and actuary be borne by the Plan itself. The cost for those services is $14,803.19. As part of the collective bargaining process with all four employee unions, it was agreed that this request f o r payment of costs associated with consensual review and development of proposed changes to the Pension Plan would be brought forward to the Trustees. Reviewed by: Legal NA Budget Purchasing N'A Risk Mgrnt. NA CIS _ NA ACM Other _ NA_ Submitted by: Originating Dept: City.Manager n User Dept.: Advertised: Date: Paper: ? Not required Affected parties ? Notified ? Not required Costs:$14.803.19 Commission Action: Total ? Approved ? Approved wlconditions Current FY ? Denied. ? Continued lo: Funding Source: ? Capt. Imp. ? Operating ? Other Eenaion Appropriation Code: Attachments: ? None -';?i? .,..r E•', 1. 1 r _' 1 ." .. : . •, t.'? _}..a,: 't f ., 3:..t•' •f ?'' =rti i .,. .PS,,1:. *,, •, r, .f•• s'., .t'. Eil. ',P `f'?? h + 1': '1 ?g44,„°41.,1:• ,)••1, ',.La,l.?::1n,'1j1S, .1:'+ S . el'.Sr"°?`+?7?{?3s1.. 4 rr:I.;h,?'.` ?41??^-olyy ,•_ }•,:r:.;l,., ,e t, • 'y ''} .. , i GOPIES TO: COMMISSION MEMORANDUM MAY 19 7995 . PRESS CLERK / ATTORNEY TO: Mayor and Commissioners FROM: Kathy S. Rice, Deputy City Manager ' COPIES: Betty Deptula, City Manager . . Cyndie Goudeau, City Clerk Pam Akin, City Attorney SUBJECT: Pension Plan Breakdown DATE: May 19, 1995 As you can see, since, 1991 we'have been bargaining pension changes. We have spent -a total of $44,939.56 out of the pension plan. Of this, $12,029.56 is for legal and $2$,710.00 is for, actuarial charges to assist us in bargaining. I Ir '.l ., .f,' , ' , l ?' t • alF. tt A .. l ' 1 .. _ 4 ! . .. . ' t .. i ,lJ vt , ? ' S .. r t . i ` t . t , 1 i 5 • ? % ' • l ,, ' I ' 1 , l , i 1 {i j` .t . i. it . .. .., ; ' ' ( i IS' ' `%+5r? •I ? f ??' i"`l, ` , 1. .> ? 1.. it , s i ? . ,. ???5>.w3.:Y?? ?. ' ., .i ? .,'Sl•t ? - ? '•'' ''' si,.? .'l.r ;.,i w, .r €. ,.,dlr.. I:.v.: , - ,' ? . ' .. ., .rd 'off! a O'O c o cO oo'o? 00 o.o 00 0 SS S SS ONO O tI) O N. 000 rno too Nto '• 14- Q d' C CfJ a `cr Cr) co co co 0 g C) cm ' co co to v . O r CV ' ;tY7 :U)" .0.00000000d 00000 vvtc?ooovoc?Sooooa 8 yO:: C19pjo°SSdSSSSrn°c°v° ?' 51 C ? m CON OCD0LOCriO[11Lo C) V) C-ju ) C6 e a) -F oft ' cD > c c om IM ci • •r- Q..o t? dm C3 i) Z ?-5 4Qc '¢Q?U<<o c ' c? t N N O O tp (D CO U) (D U) (DCVOCDWC7? CV0)a)1,.wm J -rm- CO 4N? Drsn ? O' (D m r-c Jd CO O 0 r. r- ?-- v to w to co 1%. a D 0 C C C C C C C cu tv N (z L c >V... cu dS off 06 ? a'S ?S cd 0 od , cd 0 0 W - YY +y? ,. W st? od " N L- L L L " . L L L ' y w (D CJ CD (D N cU a) O) AD (D 41 N aN Qa? aaaao.' a0--CL -- o•? o oMn o 0 0 0 0. 0 0 0 . U ) Z Y Z U (M) 0C UUUZUUU 3 took. TRUSTEES OF THE EMPLOYEES' PENSION FUND Agenda Cover Memorandum . Item ## Meeting Date: 5/30195 Subject: Pension to be Granted Recommendation/Motion: Ronald K. Pownall, Police Department, be granted a job-connected disability pension under Section(s) 2.397 and/or '2.399 of the Employees' Pension Plan as recommended by the Pension Advisory Committee. ® and that the appropriate officials be authorized to execute same. BACKGROUND. Ronald K. Pownall, Police Sergeant, Police Department, was employed by the City on December 1, 1975 and began participating in the Pension Plan on June 1, 1976. On January 27, 1986, he was involved in an automobile accident while on duty which resulted in a neck injury which is the basis for his request for this jab-connected disability pension. Mr. Pownall submitted letters from Dr. Hank H. Gosch, dated March 27, 1995, and Dr. Patrick J. Logue, dated March 22, 1995. The letter from Dr. Logue states, "He has undergone extensive cervical spine surgery ...It is my considered opinion... that Ronald Pownall cannot return to full time unrestricted duties as a police officer due to his permanent disability and therefore is a candidate for disability retirement on the basis of his inability to perform the job description of his duties. The risk: of additional injury to the cervical spine as a result of the proximity of the injured area to the spinal cord itself ...makes it impossible to consider that this individual could return to the trials and tribulations and risks of a police officer on active duty." The letter from Dr. Gosch states, "A diskectomy and foraminotomy...was performed on 31211995. The injury that had produced this condition was treated unsuccessfully prior to the surgery approximately 9 years prior to the subsequent operation and symptoms were aggravated in Mr. Pownall's employment as a City police officer. There is a permanency to the injury in that the patient has developed spondylosis which, in Mr. Pownall's present employment, would produce future problems in his duties as a police officer in making arrests and having the potential for violent physical engagements in his job duties, which leads us to believe it would be in his best interests to seek a disability retirement. Mr. Pownall's duties as a police officer with his underlying condition and surgical therapy would disqualify him from his present job description. Reviewed by: Legal NA Budget Purchasing _ 1A Risk Mgmt. N? CIS NA ACM Other NA Submittad by: City Manager Originating Dept: Human Resources User Dept.: Advertised: Date: Paper: ® Not required Affected parties ? Notified C@ Not required Costs: 5402.597 Total Current FY Funding Source: ? Capt. imp. ? Operating ® Other Pension Appropriation Code: 636.071_10-5112[10-585- 11.51 Commission Action: ? Approved ? Approved w/conditions ? Denled ? Continued to: Attachments, Letter(s) ? None t•l?, lr?t ' +4. 1 y } 5. r • ' ' ,I ', r ., .1 '' • , • ' •i'li4l.?i?Y's°" ''?aivSJi. 4vge lf. .I :°''u r ?S`' ?:t, +I:; .. ?s,'ti'.`J?3... , 'N!f1tl. ?.s :(?.31:?w.l'ZIFF?}hf N. ?''t?F.?'!'ls?h,?'?sft.: ( ,y 'ff..:i 15.,,' •IA;??F? ti•'. r.?..?1.§, .f,. .rb: .. r ? >•7:?t1•' c' ,i F-., i.:e : C'S zS';•k :,L./ '?.•:x . 7r'- ' a', ' f • : } .???if:, , 1 , t • 'si . .'Fl.'. .,J'' .i' '€''» J , .i .. , i? Agenda' Itcm-Ronald K. Pownall Page 2 May 30,-1995 Mr:. Pownall's pension, was approved by the Pension Advisory Committee at, its meeting ' of t " May 3, 1995. This pension will be effective on a date to be determined. Based on an. average salary of approximately $48;577 over- the past five years and the formula for computing job-connected disability pensions, Mr', . Pownall's pension. wil,l., approximate , $47,363 annually' (this includes 15% each for two., children under the .:age of 18). Charts from . Finance , which take into consideration mortality rates and age reflect the'' "present value 'cost of, financing" this ,pension, .will. be approximately $482,597. T h e r estimated pension cost (cash payout over the' life of the 'pensioner and his/her spouse); is $1;509,846. Note:' ;,When Mr. Pownall was originally employed, pension deductions were not taken for the., first six 'months and employees .'contributed to Social. Security. When employees were. given . an 'option ' to buy back their first six months of service, Mr.' Pownall chose not to, ' exercise. such' option.' F '3 I Human Resourcos [)apartment 613!482'8870 G I T-Y . 0 3F C L E A R W A T E R POST OFF ICE BOX 4748 CLEARWATER, FLORIDA 34 618.4740 TU Honorable Mayor and Members of the City Commission as Trustees of the Employees' Pension Plan FROM., Pension Advisory Committee COPIES: Debbie Bailey, Payroll Services Manager; Risk Management SUBJECT: Pension for Ronald Pownall---Job-Connected. Disability Pension DATE: May 3, 1995 The Pension. Advisory Committee (PAC) received an application for disability pension from Ronald Powall on March 28, 1995. Mr. Pownall has been determined by the Pension Advisory' Committee to meet the requirements -of the Pension Plan for a job-connected disability pension. He was employed by the City on December 1, 1975, and began participating in the Pension Plan on June I. 1976. Further, he has submitted medical documentation, copies of which are attached, relative to his disability which has been reviewed and approved by the PAC, By motion made and duly carried at its meeting of May 3, 1995, the Pension Advisory Committee . approved/recoinin ended the granting of a jab-connecter) disability pension to Mr. Pownall in accordance ? with provisions of' Section 2.397 of the City Code. This pension is to be effective on a date to be determined. The amount of Mr. Pownall's pension will be calculated by the Finance Department according to the formula in the Pension Plan for job-connnected disability pension at such time as his last five years of service and salary can be computed. I hereby certify that the Pension Advisory Committee has approved the granting of a job- connected disability pension for Ronald Pownall and the above dates are correct. Chairman, Pension -A T isory Committee "Equal Employment and Alf irmative Action Employer" f PENSION REQUEST FORM Ronald K. Pownail I do hereby apply for retirement from the City of Clearwater General Employees' Pension Plan. 976 . My benefits date is June 1, 3. (Entry date, into pension- plan). My date ' of hire is December 1, 1775 ; My birthday is February 7, 1954 My, Job classification is Police Sergeant Y. j and I work in the Police Departinent Patrol Division. M y resignation date is to be determined The type of pension for which I am ' applying is (check- only one): Regular' Pension based on years of service " Job connected Disability Pension .Non-job-connected Disability Pension Marie 7/3/53 My spouse's name is: Dependent children under the age of 13 and residing in my s household are: David K.• December 31, 1980 Daniel {Print Child's Pull Name) August 2(p hild'sBDate of Birth) I hereby certify all of the above to be true and correct: March 28, 1995 (Signature) STATE OF FLORIDA COUNTY OF PINELLAS (Date) The fore Ding ' Lngrument. was knowledQewho, before me this ov, Sby is personally known to me or w has produced s identification ho did/di t take an oath. Notary Public (Signature) Commission No.. t?4,41&trk& ~- (Name of Notary Printed) W comA15 o f t:Cr111898 D ' t a 1998 ?- . CITY OF CLEARWATER GENERAL EMPLOYEES' PENSION PLAN OPTIONS - POLICE OFFICERS OPTION #1: Employees can receive a lump sum payment for vacation and holiday 'pay and 112 of accrued sick leave - at the time of separation from the City. There will be no 6% deduction for pension from this lump sum payment nor will this amount c o u n t as earnings in the calculation of the pension. The last day of work will be the termination date and pension benefits will begin the following day. OPTION #2: Employee can extend termination date by the time due for vacation, holiday pay, and I/2 of accrued sick leave. Termination date will be the final day of extended. time. Pension benefits will begin the following day. (Only available 'to employees hired prior to 10/1/94.) OPTION #3: Employees can split, their accumulated sick time at one-quarter pay and one-quarter early retirement time, That portion received as one-quarter pay will not have 6% deducted for pension nor will it count as earnings in the calculation of the pension. The portion applied toward early retirement time will be subject to the 6% pension deduction and will count as earnings for pension calculations. Termination date will be the final day of extended time; pension benefits will begin the following day. (Only available to employees hired prior to 10/1/90.) I, Ronald K. Pownall an employee of the City of Clearwater, hereby apply for pension benefits under the City's Employees' Pension Plan. I hereby certify that I fully understand the two options offered to me. I choose to retire using Option # 3 and wish my benefits to be calculated under this option. I understand that once this form is signed, my decision is irrevocable. EMPLOYEE'S SIGNATU F SOCIAL SECURITY #: 262-17-4735 WITNESSES: ADDRESS: 13871 102nd Terrace North Largo, FL 34644--5328 z e:: DATE: March 28, 1995 •Lw .i ' ¦ 1? . AUTHORIZATION TO RELEASE MEDICAL AND RELATED, RECORDS an applicant' for disability pension under provisions of the Employees'. Pension Plan of thewCity of Clearwater, hereby' authorize any physician or other medical, care provider who examines or treats ••me or who has examined or treated m e or' who in the future examines or treats me to release any and all .medical and related records pertaining to me to the City of Clearwater's Pension Advisory Committee, Pension Trustees, Personnel Director, or authorized employees or agents of the City of Clearwater, Florida. Signature March 28, 1995 D ate STATE OF FLORIDA f egoing in r nt wa acknowledged efore me this COUNTY OF PINELLAS y nnzam at who persgnall? known to me or who has' produced _?r'c dG _i`VA?y?_(. as identification d vho did/did not take an oath. ? 'Notary Public (Signature) Al f, t Commission Vo. V lQ??? I ?1??*?cS (Ni ame of Notary Printed) MYCOWSSM. s IJO SOMXD THRO r' 1A11114AL E. INC. 7 r Notice of lqury 1132 t,;i?: ti: 1 i_ .. ,,i,- :"`? .•.c•,%. STATE OF FLORIDA- DEPARTMENT OF LA13OR AND EMPLOYMENT SECURIT' ' Division of Workers' Compensation, p"•• -.1321 Executive Center Drlve, East '% Tallahassee, Florida 32301- . • 4 ATTENTION--- W C CLAIMS OFFICE Report alt deaths by telephone or telegram within 24 hours. Phone: 1.800.342-1741 EMPLOYER INFORMATION EMPLOYEE INFORMATION' FIRM'S (NAME NAME {First, Middle, Last) :?• SOCIIALSECURtTY NUM E 4 City of Clearwater Ronald Keith Pownall 262-17-:-4735" MAILING ADDRESS (Include ZIP Code) HOME ADDRESS (include zip Code) OCCUPATION P.O.'Box 4748.. 11278 Valencia Ct. " Police'Dfficer-7720 Clearwater; Fla. 33518 Seminole, Fla. 33542 SUPERVISOWS NAME Lt. 0TIIlons ' DEPARTMENT NAME ' Police TELEPHONE TELEPHONE DATE OF BIRTH SEX Area Codes • 813 Number: 462-6500 Area Code: 813 Number. 462r-60013 2/7/54 & M U F LOCATION Same as Mailing Now long Number of hours (kPer week Nurnber of days RATE OF PAY employed? _12?1 175 worked Q ? Aor DnY worked per week $ ? Far Hour 644 Pierce St. It piece work or commission, enter It board, lodging or other 0 Per Day Clearwatert Fla. 33516 average weedy amount tages furnished, enter weakly .48 P r W k 0 amount 0. a ee 9 WORKER'S COMPENSATION COVERAGE BY ?Insutance Company SoI1•Insured GIVE NAME, ADDRESS AND POLICY NUMBER OF INSURANCE COMPANY NATURE OF BUSINESS OR SELF•INSUREDSERVICE COMPANY. Municipal Government FEDERAL EMPLOYER 1.0, NUMBER 59-6000289 ACCIDENT INFORMATION PATE AND TIME OF ACCIDENT DATE AND TIME FIRST REPORTED NAME, ADDRESS AND PHONE NUMBER OF PHYSICIAN 1/27/86 - 1410 1/27/86 - 1410 Dr. Camera PLACE OF ACCIDENT (Street, City, County, st31u4 LAST DATE EMPLOYEE WORKED Largo Medical. Center no time lost RETURNED TO WORK Yes No PHYSICIAN AUTHORIZED BY EMPLOYER (RYes ?NO IF YES, DATE NAME" ADDRESS AND PHONE OF HOSPITAL WVas ?No mare nr ?n Irv Largo Medical Center EMPLOYEE MISSED ONE SHIFT, ONE DAY OR MORE? Ll Yes g] No 201 14th St_ S.W. 16VAS INJURY FATAL? C]Yes WNo 11 Yes, Date of Death Largo * Fla. 33540 EMPLOYEE'S DESCRIPTION OF ACCIDENT (Give details such as, felt, was struck, etc.) DESCAiUE INJURY OR DISEASE AND INDICATE While-in a police cruiser was struck by a PART OF BODY AFFECTED fe.g• Amputation of right index finger at second joint, Fractured ribs, Lead vehicle which ran a stop sign. Poisoning, etc. Laceration on top of head. Bruised ribs right-side. Stiff neck. Tenderness in groin area. Bruised right knee. EMPt_OYI,R: i agree with this description? [XYas E] No If no, explain in comments. COMMENTS: Employee unavailable for signature Any person who, knowingly and with intent to injure, defraud or deceive any employer or employee, insurance company, or self-insured program, files a statement of claim containing any false or misleading information is guilty of a felony of the third degree. y -orm SCLA (Rev. 6.7$) Y EMPLOYER (Read and Sign) 1/28/86 SIGNATURE DATE EMPLOYEE (Read and Slgn? ' SIGNATURE DATE EMPLOYEE c.nPv Mr. Ronald Pownall, a 40 year old City of Clearwater police officer was hospitalized on 3/2/1995 after he had failed, ' conservative treatment of a cervical disc herniation and'cervical. spondylosis. A diskectomy and foraminotomy, C-516 cervical spine, .was performed on 3/2/1995. The injury that had produced this condition was treated unsuccessfully prior to the surgery approximately 9 years prior to the subsequent operation and symptoms were aggravated in Mr. Pownall's employment as a City police officer. There is a permanency to the injury in that the patient had developed spondylosis which, in Mr. Pownall's present employment, would produce future problems in his duties as a 'bolice officer in making arrests and having the potential for violent physical engagements in his job duties, which leads us to believe it would be in his best interests to seek a disability .retirement. Mr. Pownall's duties as a police officer with his underlying condition and surgical therapy would disqualify him from his present job description. We thank you for your attention to this matter. ilicerely yours, Hank Her sch, M.D./jst PATRICK J. LOGUE, M. D. `ORTHOPAEDIC SURGERY, P.A. FORT HARRISON-MEDICAL CENTER 1305 S. FT. HARRISON - BUILDING G FELLOW OF THE CLEARWATER, FLORIDA 34816 AMERICAN ACADEMY OF TELEPHONE (813),446-0000 ORTHOPAEDIC SURGEONS FAX {8131 442-8804, ' w RE: RONALD K. POWNALL f To Whom It May Concern: FELLOW OF THE AMERICAN COLLEGE OF SURGEONS March 22, 1995 This letter is to state that I am an'orthopaedic surgeon and I have cared for the orthopaedic, affairs of the'above mentioned :individual•since 1986 when-he sustained an injury on the job which subsequently resulted in confirmation of a large cervical.. disc syndrome. He has undergone extensive cervical spine surgery with excision .of-the disc material on 3/ 42/95 under the direction of Dr. Hank Gosch, neurosurgeon. It is my considered opinion, and also that of Dr. Gosch, that Ronald Pownall cannot return to full time unrestricted duties as a police officer due to this permanent disability and there- fore is a candidate for disability retirement on the basis of his inability to perform the job description of his duties. The risk of additional injury to the cervical spine as a result of the proximity of the injured area to the spinal cord itself in the cervical spine mattes it impossible to consider that this individual. could return to the trials and tribulations and risks of a police officer on active duty. If further; information is necessary concerning this disability do not hesitate to call upon me. Sincerely, a M0 Patrick J. Logue, M.D. I ¦ •, PJL/mr Enclosure: Office notes and copy of operative report r Trustees of the General Employees' Pension Plan Agenda Cover Memorandum Item .,(e Meeting Date: 051311/95 SUBJECT: Pension Annual Report and Determination of pension contribution amounts for fiscal year 1995-96. RECOMMENDATION /110TION: Authorize a continuation of the 6$ employee contribution through December 31, 1995 and designate a City contribution for fiscal year 1995-96 which is equal to the actual employee contributions for calendar year 1995, with the balance of contributions needed to be deducted from the available credit balance. B and that the appropriate officials be authorized to execute same. BACKGROUND: Actuaky Report The attached draft actuarial valuation and report as of January 1, 1995 calls for a total required contribution is $6,224,184. Employees are currently contributing 6% of salary, anticipated to be $2,482,280. The difference to be contributed by the City of $3,741,904 is an increase of $1,178,158 from last year. Credit Balance The pension fund credit balance was first established in 1991'when actual contributions were in excess of those determined to be required. This resulted primarily due to phenomenal investment returns. The credit balance continued to increase in 1992 and 2993. In 1994, due to increased contribution requirements, approximately $250,000 was deducted from the credit balance. The current pension fund credit balance is approximately $5,675,381. Option 1.(Recommended Option) Since the City is required by ordinance to contribute at least as much as the employees (6% contribution estimated at $2,482,280), the difference of $1,259,624 ($3,741,904 - $2,482,280) can be deducted from the pension fund credit balance of $5,675,381. This would leave a credit balance remaining of $4,415,757. Option 2 Another option would be for the City to increase the City's contribution rate to 7%. This increase of 1% is equal to approximately $413,713. The General Reviewed by: Originating Dept: Costs: Commission Action: Legal Finance TOW ? Approved Budget Purchasing E&E ? Approved w/conditions Risk Mgmt. N/A User Dept: Current Fiscal Yr. ? Denied CIS N/A ? Continued to: ACM Funding Source: Other 17 capital Imp. Advertised: ? Operating At.tachitcnts: Date: ? Other 1995 Actuarial Report Paper: Pages 4, B, and 9 of Callan 0 N R i d Re ort equ ot re p Submitted by: Affected Parties Appropriation Code: ? None ? Notified 8 Not Required City Manager .. 2 .. Fund share of this increased contribution would be approximately $277,0000 or .0687 mills. This would still require a reduction in the credit balance, however the reduction would only be $845,911. This would leave a credit balance of $4,829,470. Inyestments. 1994 was a bad year for pension plan investments. It was one of the worst years that bonds have ever experienced and-stocks did not perform much better. The vast majority of pension plans had a negative return (loss) for 1994. The City's plan had a return of .9%. This return placed the plan at the eleventh percentile, meaning that our performance was better than 89% of all public pension plans. Since the City uses a smoothing approach to asset valuation, the difference between the actual return of .9% and the assumed rate of 7% is spread over 5 years. Based upon this'mothod, our actuarial return for 1994 was 6.6$. This shortfall in the investment return was responsible for approximately $200,000 of,the increase in contributions. Without•this smoothing approach, an additional $1,000,000 in contributions would have been needed. Other factors contributing to the increase in contributions include increased rates of disability and decreased rates of employees turnover. For the first quarter of 1995, the pension plan has better. For the first.quarter, the plan had a retu: too early to predict the return for 1995, there are markets have turned around and that 1995 appears to pension plan than last year. I have included a few quarterly performance measurement report (March 31, Associates Inc. Page 4 - Reflects the asset distribution by The three equity (stock) managers Aetna Capital Management Denver Investment Advisors Hanson Investment Management performed significantly rn of 5.43%. While it is indications that the be a better year for the pages from the most recent 1995) prepared by Callan category and by asset manager. are: Growth Equity Style Middle Capitalization Equity Style Value Equity Style Shields Asset Management invests in fixed income Aa or better bonds, and Eickhoff, Pieper & Willoughby manages guaranteed insurance contracts (GIC's) and United States obligations. Page 8 The pension plan (composite fund) had a first quarter return of 5.43%. Page 9 Plan rankings show the plan in the 55% percentile for the first quarter of this year. Coo ers Coopers & Lybrand L.L.P. 101 East Kennedy Boulevard telephone (813) 229.0221 a professional services i;rm Sulle 1500 V[(,n L rand Tempe, Florida 33602.5194 facsimile (813) 228.0639 Mumen Resource Advisary May 10, 1995 Ms. Margaret L. Simmons, CPA Finance Director City of Clearwater 112 South Osceola Avenue Clearwater, FL 34618-4748 Dear Ms. Simmons: Enclosed are two draft copies 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, 1995 plan year. The primary purpose of this report is to provide management with a budgeting tool to assist in funding the plan in a systematic manner. The City's minimum required contribution to satisfy Florida Statutes for 1995 is $3,741,904 (less any portion of the credit balance, currently $5,304,094). However, the ordinance establishing the plan requires the employees and the City to contribute at least 6% of payroll and up to an additional 2% of payroll, if necessary. Any amounts contributed by the City in excess of the minimum of $3,741,904 would increase the City's credit balance. The increase in the required contribution is primarily due to unfavorable asset performance and demographic changes during 1994. For the 1994 plan year, the return on plan investments was approximately 0.9% compared to the expected rate of 7.0%, actual termination rates were lower than expected and actual rates of disability were greater than expected. As a result of this net unfavorable actuarial experience, the funded status of the plan decreased somewhat. The ratio of plan assets at market value to the actuarial value of accumulated plan benefits has decreased from 144%to131%. Once you have had a chance to review this information, please give us a call if you have any questions or comments. Very truly yours, ? L_.-, YU1 J Stephen M. Metz Associate of the Society of Actuaries Enrolled Actuary #93-4342 Principal SMMllmb Enclosures Coopers & Lybrand L L p, a reg stews limited liability partncrsnip, is a member firm 01 Coopers fs Lybrand Intematlohai ? 11 ?; i' ' '1' I '}. ? ? ' ? f? ?•?? ?`s ? .. t ? ? ? . I E• , k I ` r I ' ? ? I} . „I . ' t?1, ; t S ,.. }1 I 11 L1 . .. ' r ? ? I , ' •' • ? L , . • • -f , , . : 1 . . ,j ? F Ij:' 1 ? t ' .. . ,i ,f ' • t '1, ' ,'IS ` ..i. . I = ?.?•? It ?.?: a ... ! 1 r ? .. ? .. .}1'I? .. ?. I , . a1 ?t'• • ? 1 r I? l, it - , 1, + , .t .. y ? .. ? .. ? .. . ' si: i v ? IZ ' r? •1 ; .. I r .•f,? ?fi1, ,s •.S LL j ;q., . :i `21??!Tjk:.• ''.. .•?.odi'f7C .7.1: a ?i u .:-,lvr,•.I• ..-.-? .....?_ .'[ I I I - ?I .i f e l: 11• 1 ?i rf.l?t .. 'Ii ._.. ,+:° 'ifl'^ I ? , ". <4` I ''I'" ':?r•. ' t: `f' •t's. h .. ?. .. ' •.iI':':'i. . .. .L' p Coopers & lybrind LLP. L brand I -V1 x y s p ft ;0Fw "rVic" hm FOR THE ACTUARY'S REPORT '=tF3?';. CI rim TY OF CLEARWATER EMPLOYEES' PENSION l - i- As of January 1995 ixs,,:, to determine annual contributpn:; 01/95 - 12/31,"/95 for the Plan Year = = 01% to Ve , paid in the FiscaU_'yesie..N 10/01/95"- .9/30 /96 Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft May 10, 199' City of Clearwater P.O. Box 4748 Clearwater, FL 33518-4748 Ladies and Gentlemen: This report presents the results of the January 1, 1995 actuarial valuation of the City of Clearwater. EPension Flan, It has been re ared#.`•kimdril to present to management the contribution requirements for 1995`and also;the current status of funding of accumulated plan benefits. Sectiori..137,`'of this report,: includes the plan's Projected Benefit Obligation as re uired;b j q ytkie- Gavernment'.Accounting Standards Board (GASB) Statement No. 5, s„::w,' Our calculations were based on financi&I:' data and empl.o ''data furnished'-.,6y the City of Clearwater. ?;° - v;?>>f? Y . ti The valuation was based,,,, u generally accepted actuarial metiods, and we performed such tests as we coMidered:•riecessary toV'4ssure .. - 'accuracy of the -results. To our knowledge there are 1.666 benefi is or expenses=-to be-,:provided by the plan for which a liability.,7or current ,c,osr, was not established'." We certify that the amounts presented;;iii,Che accompanying report have.`been appropriately determined according •... ri .S 1 i r.: 4.. . to el, acttiaiial as P, .stated herein, Statement by Enrolled Actuary This act:uariaL-valuation is complete and accurate and in my opinion, the techniques and assumptions' used are reasonable and meet the requirements and intent of Part VII, Chapter 112, Florida Statutes. There is no benefit or expense to be provided by the plan and/or paid from the plan's assets for which liabilities or current costs have not been established or otherwise provided for 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 93-4342 Donna K. White Associate of the Society of Actuaries Enrolled Actuary Number 93-5071 Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft i , •}ff'?^?"irrf .'n;???t 41?{`;?Fy?F.nSH?s,,i"4'. ih.,w .C I 1`•' ` s'fk' F "OD pers Cnopcrn & Lybrand L.L.P. L b d y ran C O N T E N T S' t, Page? SECTION I SUMMARY I-6 SECTION II FUNDING ,. 7_I1 SECTION III ASSETS 12-I5 SECTION. IV ACCOUNTING I6-I8 'SECTION V CENSUS DATA ' I9-21 . . SECTION VI ASSUMPTIONS AND METHODS ?' : };,,$l?r 22_23 r , SECTION VI I SUMMARY OF PLAN PROVISIONS .`,a , • >: •?? '`'`???` `l;f'?, 24-25 SECTION VIII' C OMPABATIVE SUMMARY OF ::; •;'? PRINCIPAL VALUATION RE ULTS , ~''''Xa%^'" ;ryry 6-30 n fr o{ :v.J Yr:.+ y wy t 4i. + k r V t , :. tic ?St tii I 1 Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft I ` . "06 pp?? Coopers b I.ybnnd LLP. ill4' ?lybrand i . ""to"t "rc" CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION I - SUMMARY A. Actuary's Comments This report presents the highlights of the January 1, 1995 actuarial'valuation prepared to determine the contribution requirements for the 1995-96 fiscal year. Since the last actuarial, valuation of the plan of January 1, 1994, there have been no changes in the plan provisions or actuarial assumptions and methods, The minimum required employer contribution for the 1995 plan year (excluding the credit balance) is $3,741,904 compared to $2,563,746 for 1994, a change from 6,62% of payroll to 9.04%. The. increase in the minimum requiredr.coritribution is. primarily due to poor investment performance and demographic" changes, Variables affecting the contribution were: • an actual investment return of 0.9% in cosnparison to'an assumed rate of 7.0%, • employee turnover rates wexe ,significantlyk,,:l4w6f* than expected ? and • disability incidence rates wexe-'.-significant].y`:greater than expected. The actual rat4.• of':.rii1k?n on plan assetss,.on:: a market value basis for 1994 was approximately O;.9%'. Uxr.^an actuarial`: basis;:. however, the rate of return was approximately 6;f3%,-due.to the five=jear+smoothing method used to determine the actuarial value of :asses. Without!i:ti%e% application of this smoothing method the C;ttiy's:; contributiaii . -..requirement ifor 1995 would have been approximately ,. $1,000,t}O greater, The reco6c liation of:,lthe minimum required contribution from the 1994 plan year level to-::floe 1995 level is as follows: ,.1l3nmum Contribution - 1994 $2,563,746 ``Increase/(Decrease) in Normal Cost 1,272,484 Increase/(Decrease) in expected expenses (11,779) (Increase)/Decrease in expected employee contributions (159,622) Increase/(Decrease) in Net Interest 77,075 Minimum Contribution - 1995 $3,741,904 The fi L .tnded status of the plan decreased from the prior year. The, ratio of assets at market value to the actuarial value of accumulated plan benefits was 131% at January 1, 1995 versus 144% as of January 1, 1994. . l Draft For Discussion Purposes'Only-Subject to Revision-Not for Further Distribution Draft CITY OF CLEARWATER EMPLOYEES' PENSION PLAN' 'f SECTION I - SUMMARY (cont<inued) i.` B. Contribution Limits for the Plan Year Endin "December 31, 1995 Minimum Re uired Employer Contribution Florida-Statute's $ 3,741,904* 6x of payroll $ 2,482,280 The employer contribution is assumed to be made uniformly during the first two quarters.of the fiscal year beginning on October 1, 1995: Differences in the investment return due to contributions actually being made at,?,Anyj,`otlier time will be recognized as an actuarial gain or loss in the following v"altiation, The minimum required contribution represents a funding levet which will`s•atisfy the minimum funding requirements under Part VII, Chaipter>?112 , Florida::-,"Statutes. There were no changes in actuarial assumptions or-,.p an provisions. C. Funded Status of Pension Benefit Obliiition as of'January 1.'1995 Present Value of Credited Projected"Plan:-Benefits: tai ?• 't,r. Vested $167,670,497 ';t'Y; Nonvested 20,705,647 Total $18.8 376 144 yr ;;Net Assets Available for Benefits 5217,777,829 * Before application of the credit balance of $5,675,381 ($5,304,094) as of January 1, 1995 plus interesc to December 31, 1995), 2 Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft `Dopers Coopers 3 Lybrand LLP. IYDrand l '"Oft i t "446KOW i on -CITY OF CLEARWATE R EMPLOYEES' PENSI ON PLAN SECTION 1 SUMMARY (continued) D. Comparative Summary of Principal Valuation Results Actuarial Valuation Prepared as of: Jan 1 1995 Jan 1 1994 Jan 1,1993 ' (a) Participant Data Number Included Active Members 1,394 .1,318 1,307 Retirees and Beneficiaries 380 355 w{: -• 348 Terminated Vested Participants 8 9 Annual Payroll of Actives $ 41,371,332 $ 38,710,974 °$;38,731,039 ,,. Annualized Benefits , Retirees and Beneficiaries ' $ 5,228,578.` $;4,669,279 347,670 Terminated Vested Participants $ 72, r?65, 668 rA 's::'t39, 9,370 • (b) Actuarial Reserves Market Value 77, 829 $216'J38,770 $198,315,690 Statement Value $217,,,17.7,829 $216",738,770 $198,315,690 Actuarial Value • • . 223,.4$2;'.726 $213,014,474 $198,315,690 .. ,, r (c) < "ilities t '-.:o } Present Value f Expected; B enefits , Active Participants: Retixemene;.rBene£its $177,680,724 $163,329,708 $151,862,218 Termination Benefits 12,025,628 11,422,359 11,202,452 Disab.iiity, Benefits 10,822,342 9,848,682 9,470,301 Death Benefits 1,814,234 2,784,540 2,648,380 ' Refund of Employee Contributions 1,362,173 1,412,444 1,676,348 T Total,Active $204,705,101 $188,797,733 $176,859,699 Terminated Vested Participants 680,848 556,901 896,393 Retirees and Beneficiaries 58,768,478 52,326,236 49,246,414 Total Present Value of Expected Benefits $264,154,427 $241,680,870 $227,002,506 Liabilities Due and Unpaid. $ 196;231 $ 189,188 $ 185,631 3 Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft Coopers l4 Lybrand LLP. {? E and r CITY'OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION I SUMMARY (continued ) D. Comparative Summary of Principal Valuation Results; (continued)- Actuarial Valuation Prepared as of: Jan 1, 1995 Jan 2, 1994 Jan 1, 1993 (c) Liabilities (continued) Unfunded Actuarial. Accrued Liability . Frozen Initial Liab. (FIL) - 1/1/79 $ 4,731,304. $ 5,214,337 $ 5,665,770 Supplemental FIL - 1/1/79 1,824,632 1,909,213 •3;988,259 Supplemental FIL - 1/1/81 , 288,152 2981705-:`: ` 1 '308,568 Supplemental FIL - 1/1/82 (3,470,278) (3,583,821 1i ,689,936) Supplemental FIL - l/1/87 1, 354,142 ,,,-` :fit 379 , 966 ` `r<<3 ;.404,101 Supplemental FIL = 1/1/88 1520, 396: '.:l,Z; 546,988 x,1;'571, 840 Supplemental FIL - 1/1/89 2:012,85-3 2,045,188 ;075,409 Asset Valuation Method -' 1/1/94 _ Change ;,' ,?. 3, 6841869 ` • 3 ; 724 296 =.' 0 ' Total $'.11 946 , 070 $' 12L, 534 , 872 $ 9,324,011 (d) Funding Account'.Credit"Aalance ' Prior Year Amount • 4, 894,904 ' ' $ 3,865,373 $ 925 , 885 f .b t 5 f. 'Required--Employer Coiitributians (2,563,746) (2,124,675) (447,890) ' loyer 6ontribution'n; Made.', '. 2,630,293 2,883,630 3,322,567 a'rest Ox':',Cxedit Balance t _ _342_s643 270,576 64.811 Curreiit;Year.:;Cxedit Balance $ 5,304,364 $ 4,894,904 $ 3,865,373 (e) Actuarial Present Value of Accrued Benefits (see Subsection I.V for detail) $166,517,705 $150,882,720 $138,526,787 I Changes During Prior Year: Value from Prior Year: $150,882,720 $138•,526,787 $123,602,656 Benefits Paid (5,294,252) (4,973,011) (4,218,520) ' Interest, Aging and Benefits Accrued 20,929,237 17,328,944 19,142,651 Change in Assumptions 0 0 0 Change in Plan'Provisions 0 '0 0 Net Change i $ 15,634,985 $ 12,355,933 $ 14,924,131 Value at Current Year $166,517,705 $150,882,720 $138,526,787 4 Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft 5 r 1} . i , i. <1 1..)..,4 s f i '„' 1 , l?°'Fr'jl••5 ? r•. 'tb, wr • , .. 1.. , . ` i 4a0per5 Caapars 6 Lybrand LLP. ' 4L brand F ' •? CITY OF'-CLEARWATER EMPLOYEES' PENSION PLAN SECTION'I SUMMARY (continued) D.' Comparative Summary of Principal Valuation Results, (continued) -d' Actuarial Valuation Prepared as of: Jan 1. 1995 Jan 1, 1994 Jan 1, 1993 `. (f) Pension Cost for Year Normal Cost $ 3,715,146 $ 2,442,662 $ 2,734,411 Amortization of Unfunded Frozen Initial Liability 1,370,321 1,370,321, 1,089,828 Administrative Expenses 849,675 805,430 _-;x`:705,161 Shortfall for Expenses in Prior Year 44, 24'5 100, 36,466 Interest Adjustment _ 244,797 I67 722-'r: '' 138 4997 Total Required Contribution $ 6 , 224,184 $^:q'<-°4, 886 , 404 $ '4` 804 , 863 i As a Percentage of Payroll 15:0X'? 12.6% 12.4% Anticipated Employee Contributions '' 2 , 482 , 280 2'; 322 , 658 $ . 2,680 ,188 As a Percentage of Payroll 6.0% .`' 6.0% 6.9% , City Required Contr3buti6i:;r,,. 904' $ 563 , 746 2,124,675 { As a Percentage Of ''ayroll'i 9.0X 6.6% 5.5% Prior.-.Year Actual:.": Contributions ' imade rhy ' , i Einployees;< $ 2,630,293 $ 2,883,630 $ 3,322,5)67 2,630,293, 2,883.630 3,322,567 ;';;'Total, $ 5,260,586 $ 5,767,260 $ 6,645,134 (h) Ga`itis'*and Losses N/A N/A N/A (i) Other Present Values r Present Value of Future Salaries At attained age $356,834,700 $333,406.100 $328,954,400 At entry age $284,929,500 $263,646,400 $264,587,000 5 Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft 5, F . CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION I SUMMARY (continued) D.' Comparative Summary of Principal'Valuation Results, (continued) Actuarial Valuati on Prepared as o£:' Jan 1,.1995 'Jan I, 1994 Jan-1, 1993 (i) Other Present Values '(continued) Present Value of Employee Contributions .At attained age $ 20,353,809 $ 19,010,669 $ 25,001,208 At entry age 16 ,106 ,164 14, 893 , 597., 926 , 833 Present Value of Future' Normal' Costs $ 32,029,72.5...$-,,',-2.1,.026,428 $".'',,:2.312280178 Present Value of Benefits Active Employee s - at entr age 54 260 500 49 79b 836 50213 664 (j) Comparison of Acbual` and Assumed ' ;..Salary Incre a'ses Investment R eturn ; ;,.:Yeax` Ended t. ° '.'Actual Ass umed Actual Assumed € ,,`'`,,,?? a.. ..,-y,;?,. ; -.;:;..?4.:',• ;;: :F s'. ' , Market Actuarial .. Value Value 1/86';t' 7'.4X 5.0% 13.21% N/A 7.0% 12%31/87 5.9% 5.0X 10.78% N/A 7.0% 12/31/88 9.1% 5.0% 9.12%. N/A 7.0% 12/31/89 8.7% 5.0% 20.84% N/A. 7.0% 12/31/90 5.3% 5.0% 6.21% ' N/A 7.0% 12/31/91 6.1% 5.0X 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% 0.89X. 6.28% 7.0% 6 Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft SECTION 11 - FUNDING A. 'Development of•the Unfunded Frozen Actuarial Ac crued Liability 1. 'Unfunded'Frozen'Actuarial Accrued Liability as of January 1, 1994 $12,534,872 Interest to December 31, 1994 877,441 $13,412,313 2.'• Employer Normal Cost* for Year with interest to December 31, 1994 L097' 503. w,,, , 3. Required Employer Contributions for Period 563, 746' ' 4. Unfunded Frozen Actuarial Accrued Liability A• _ +i*'-°'" `{" as of ,December 31, 1994 (Items 14 2 - 3) =.•'..'ti $ll.;;.946 070 ' '( 'y':2' 114n •4'3 * Includes Expenses and Adjustments T's[ 7 Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution, Draft s , r ... `) .. , .. . gar-•..... ?? e? Cao?ra b Lybrand LLP'. yUrand I.?,.? iwm i CITY OF CLMWATER EMPLOYEES' PENSION PLAN SECTION II - FUNDING continued) B. Develonment of'Normal Cost The Normal Cost is the portion of the cost of projected benefits which is allocated to the current year by the actuarial cost method. The Normal Cost for the plan years beginning January 1, 1995, 'January 1, 1994 and January 1, 1993 are determined as follows: Jan 1, 1995 Jan 1, 1994 Jan 1, 1993 Total Projected Actuarial Liability: 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 $204,705,101:1..].88,•797,733 $176;'6,59,699 • Terminated vested participants 680 848•r:;:'•:,.;;-';SSb 901 ' B96 393 • Retired and disabled participants ?' L • _ 58.768 , 478 .-52 326 , 236 49:246 , 414 r:<;.;, ,154 427 243,680 870 $227,002,506 • Total participants $ Credit Balance: Ern la er: 'contributions,:. from prior years reserve d<for future use 513(}4, 094 $ 4,894,904 $ ' 3,865,373 Fund:..;?•.T`e:..actuarial value of fund assets-, as°of,, the plan year. :r ..; s $225 , 482 , 726 $213,014P'474 $198,315,690 • ;irk ..;, ,,? e . ,. Excess'm of Total;': Projected:m.Actuari'al Liabil1ty Ovezn';.the Fund `Minus the Credit Balar`?o Thos portion of the projected total°-., riaml liability to be funded in the,fu re. $ 43,975,795 $ 33,561,300 $ 32,552,189 ,,;rvY This portion is divided into two components: a. Unfunded Frozen Actuarial Accrued 'Liability $ 11,946,070 $ 12,534,872 $ 9,324,011 b. Present value of future service liability (funded over the expected future service years of current participants) $ 32,029,725 $ 21,026,428 $ 23,228,178 Present Value of Future Covered payroll: $356,834,700 $333,406,100 $328,954,400 B Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft B. pevela meet of Normal Cost, (Continued) Jan 1, 1995. Jan-1, 1994 Jan 1, 1993 Normal Cost Rate: The ratio of the present' value of futurre service liability to the Present,Value of Future Covered payroll. 8.98% 6.31% 7.06% Annual Covered Payroll: The reported payroll .fox plan participants, who have not attained the assumed retirement age. $ 41,371,332 $ 38, 710, 9,74";'$,:::38;'731, 039 is' {Y'• F ?°ii Normal Cost: The annual cost as of the .beginning, of the plan year to fund the future service liabil.it over the"' expected future e' y ars of service of the ..,? current. Participants. 3,715,146 662 $ 2,734,411 • ,n'?; Vii. s'.l}?tt.": b,.j.;. t?• V'` w-t .. :;;y.3°j1 L: i; r?. bye, t ,•r' t ant 9 Draft For Discussion Purposes Only-Subject to Revision-Nat for Further Distribution Draft 7 Coopers b Lybrand LLP. !00e s p rand Y M ,. ' *w .l yes trm * " CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION II FUNDING (continued) C. Schedule of Amortization Payments Initial. Jan I, 1995 Annual Date Initial Amortizati on Unamortized Amortization Established Reason Amount Period'(Years) Amount Payment 1/l/79* ` Frozen Initial Liability (FIL) $ 9,726,419 24.5 $ 4,731,304 $ 792,558 1%1/79 Supplemental FIL 2,707,962 30.0 1,824,632 N-,?"x.203 949 , '. I/l/81 Supplemental FIL 390,421 30.0 288,152'29,404 l/I/82 Supplemental FIL. (4,521,985) 30.0 ';f{3,470,278) ;x'(340,571) 1/1/87 Supplemental FIL 1,519,142 .30.0 54, 14 2 ; :,:,'114,413 1/1/88 Supplemental • FIL 1, 673 , 7 30.0 38 ' 1, 520, 396 126 , 057 , . ,z + l/l/89 Supplemental"FIL 2 ,177, x;72:" 0 ?,,012,853 164,018 n •? F ;.,_ 1/1/94 Asset V&liiatioiZ; '?' ft ..+" " ` :."4•:: Method. C 31724.29'6": 30.0 _3, 684, 869 280.493 ':`ySZTatal°Ch-?rges .,: .`$21,919,750 $15,416,348 $1,710,892 .Total Credo is (4,521,985) . (3,470,278) (340.57].) Tate -,. y;s $17,397,765 56946 2 070 $1,3701321 * Established July 1, 1963 and being amortized over a forty-year period beginning ' on that date. 10 Draft For Discussion Purposes.. Only-Subject to Revision-Not for Further Distribution Lit Draft 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 1995 11,946,070 t4fr: 19 96 11, 316 , 051 1997 10,641,931 1998 9 , 92 623 :?.,,.•r?. <,:y _?r ° y`<'1?: t. ;.'.. 2024Q :kf+, j' "• :'s . On July 1, 1963, the Unfunded Frozen ALUarial.,Accrued Liability was established equal to the difference bid waen the retirainent?;plan's accruid.,liability, determined under the Entry Age Noxinalfrunding Metl'od'j',?ah s?heactuarial. value. of plan assets: According to the plan's, fuid" policy C a.,.,. n tial:.-liability is to be amortized by a series. :,•of level payayents ;;aver a fort,-year period, Subsequent changes in tYpP 1eve+'o;°kieA.Frozen k6_ Accrued Lability due to `plan amendments or changes in',Rac"Cuarial' assumptions are .ro,:be amortized on a straight-line basis over a period of ',t}ty years. Byt';contrib'uting more than the stated funding policy, the amore ration`}o£;the Un£ubde`t Frozen Actuarial Accrued Liability can be accelerated. 11 . Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft .. `'r??. .. fit. .. 4.. , 'r'.• .. .. .. > ' • •' ??Q p Coopon & Lybrand LLP. Ly brand 1 1 .p, .,t4ww l,M CITY, OF CLEARWATER EMPLOYEES' PENSION PLAN ' SECTION III - ASSETS Comparative Balance Sheet As of December 31, 1994 ` Statement Value Statement Value ASSETS 121.31/94 12L31/93 Total Cash $ 3,505 $ 68008 Receivables: Employer Contributions 1,185,660 1,300,051 ' Accrued Income. 1,723,608 1,780,848 Interest - pooled cash 31 599 ??" 0 . Total Receivables 219401867 t i.. ` t!`:`F"',t 3080,899 , Investments: ' U.S. Government Securities Short-Term 13,151;606 R 3°;866,596 Pooled/Mutual Funds: . Treasury Fund 24 , 443 46 r° 18 , 6.18.; 035 Government Funds 15 , 801 b i 58;„ 12,251 :198 Cash & Equity ;l 9,645,054: 12,029,868 Corporate Debt Instruniahts 0. 0 Corporate Stocks "`°<,: ^::, '*. ; :s:.? .s• ; ;A ;,...,; ' .. ?'< : Preferred '• .. 0 . . :.:, , ::., . 0 ' CoMmgA 101, 989 , 369 120,633,752 Bcirics:Y.. 11,249,185 12,629, 602 talY 'Me-t ., To ,Invest ts 176,279,689 180,029,051 Othex''Assets. ; GIG..+,,s, t°,mxltl Iirsurance Contracts 38,750,000 330-750,000 TOTAL ASSETS 217 974 060 ,$ 216,927,958 LIABILITIES AND ACTUARIAL, RESERVES Liabilities: Payables Plan Claims $ 0 $ 0 Accounts Payable _ 196,231 189,188 Total Liabilities 196,231 189,188 Actuarial Reserves: Accumulated Member•Contributions 25,650,391 24,350,931 Balance of Actuarial Reserves 192,127,438 192,3873839 Total'Actuarial Reserves 217;777,829 216,738,770 TOTAL LIABILITIES AND ACTUARIAL RESERV ES 217,974,060 216,927,958, 12 Draft . Tor Discussion Purposes Only-Subject to Revision-Not for Further D istribution Draft ,i?AS:`•E°.. yf. -)1 S'. r. .i .• U ?- e Coopers b Lybrand LLP. LY ? E ran . a "e"mor ! WAM rrm CITY OF CLEARWATER EMPLOYEES'. PENSION PLAN SECTION III - ASSETS (continued) ' Schedule of Change s in Actuarial Reserves For the Plan Year Ended December 31, 1994 Statement Value Revenues: Employee Contributions $ 2,630,293. Employer Contributions ' 2,630,293 . Earnings on Investments. ? Interest $6,498,783 Dividends 666 1 727 Realized Net Gains on' Securities , , Transactions 6 22 "331"{ ;,..?`, ,.. 14 , 3$7,, 841 ' '•°' o ?. < sit. ' k;•'.: f, Unrealized Appreciation (Depreciation) ?,,=• "?, :. 1 ?' ,, s on Investments (12,465x,441) f?,,..v.•.,.. "yYry' ;:i' 7 182 986 enses: Ex , , p Benefits Paid. :$4` ,993 267 Refunds. of Contribu't'io'ns';" ' , 300, 985. ,Pzofestidhal Fees 842,611 'Other Expenses 21 6.136, 884 Net Change in-LActuarial Reserves 1,046,102 Actuari:al`LR serves & Liabilities at Be ginning of Plan Year 216,927,958 Actuarial Reserves & Liabilities at En d of Plan Year $217,974,060 13 Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft 2. Time Weighted Employee Contribution's (.5 x 2,630,293) 3. Time Weighted Employer Contributions (.5 x .125 x 2,630,293) 4. Time Weighted Benefit Payments (13/24) x (5,294,252) }•': , 5. Time Weighted Expenses •;>, 'v.A.=t:°?;. (.5 x 842,632) ..} 6. Time Weighted Value>3o'fwActuarial R erves'#: " (Items 1 +'2`.x4`:5) 7. Expected Asset Return..:;"' :.. .: ,. ? 8. Actual Asset Return. 9. Differan;•ce ?:;zof Expected .r { Return over ?F~; Actual Return 10 ci axi l n f l . Ac i Reserves at E a d o P an Year 11. Expected Actuarial.Reserves at End of Plan Year (Items 9 + 10) 12. Difference Between Actual and Expected Asset Return (Items 10-11 ) 14 1,315,147 :t 86?, 720 421'`316 214,929,274 15,045,049 1,922,400 13,122,649 217,777,829 230,900,478 $_ 13,122.649 Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft J I— yri'L'i!L?a-aF:r??:'iYf,t"';?. i?r.?:Z`f::e je':.?:£:`''I:.La,S...., .. t:. ?.. ,rlr ... .. _...., .. '.)i s.: -}'.ti?>.r•..,?,••t t.. i. :"it`?j', ;:. ., ., .,' ,: :ooel? Coopers 5 Lybrand LLP: }: .. ,. IYErand r ? aditlOfl? M1!1('?1 rrfll . CITY OF,CLEARWATER EMPLOYEES' PENSION PLAN r. SECTION III ASSETS (continued)' ; ''' :• Development of.Actuarial Value of Assets (continued) ... , . Amount . Amount . Annual Excluded Excluded Date Initial- Amount Prior Current Established Amount Recognized Valuation Valuation 01/01/94 $ 4,655,'370 $ 931,074 $(3;'724,296) $.r(2;793,222) ' its>•x?f.r k?R .01/01/95 $(13',122,649) $(2,624,530) $ s,,f}r'' 0 $:;1Q,498,1I9 Total T `704, 897 z- A Actuarial Reserves, ', ,>. :.? f,r;;1Y,.,rsy,:a,'' •; '':; :v? $217,777.,829 Actuariak Value of Assets,}`=' ,r> $225,482,726 a 15 - ' Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft r, V 4 ers Coopers 6 Lybrand LLP. yErand ! d . Cr r &bul , firm CITY OF CLEARWATER EMPLOYEES'. PEN SION PLAN SECTION IV - ACCOUNTING A. Actuarial Present Value of Credited Projected Benefits* .Jan 1, 1995 Jan 1, 1994 1. Pension Benefit Obligation: Retirees and beneficiaries receiving benefits $ 58,768,478 $ 52,326,236 Former participants 680,848 556,901 Current participants: Employee vested 25',650,391 24,350,931 Employer vested 82,570,780 751•6681036 Employer nonvested 20,705,647 --18-192 789 Total $188 37611W $!7'1,094,893 2. Market value of plan assets at beginning of year '• Oi7',777,829 5216;738,770 3. Unfunded (Assets in Excess of),f;" ' Pension Benefit Obligation [{1);;r-,{2)J (29;4014685) 5 __(45;(343,877) Y fo- Ol.ilO/E.l.? B. Two-Year Historical.',-'Trend Informatfan`t 1 , 1995 Jan Jan l? 1994 - 1. Marketf:;value of plan ,assets as a :.. ;''s 'pexceitt:age of 115.6% 126.7% 2. !(Assets in ,?XCess'• of) '°Unfunded ; , °?';; :. {Pens fln° Benefit Obligation as a ,,_.:,,;:.percentage of covered payroll (71.1X) (117.9)% 3. City contributions as a percentage of covered payroll 9.0% 6.6% * The pension benefit obligation is a standardized disclosure measure of the present: value of pension benefits, adjusted for the effects of projected salary increases and any step-rate benefits, estimated to be payable in the future as a result of service to date. The measure is independent of the plan's actuarial funding method used in determining the annual funding requirement.' The above present values were computed using the applicable actuarial assumptions summarized in Sectibn VI of this report. 16 Draft For Discussion Purposes Only-Subjcct to Revision-Not for Further Distribution Draft 1 .. E CITY OF CLEARWATER EMPLOYEES' ?ENSION PLAN '.' SECTION IV ACCOUNTING (continued) B. Actuarial Present Value of Accumulated Plan Benefits Jan 1, - 1995 Jan__1,- 1994 1. Present value of.accumulated plan benefits:' - •, Vested: Retirees and beneficiaries receiving.benefits $ 58,768,478 $ 52,326,236 ' Terminated participants 680,848 556,901 Active participants 89,871,221 82,914,866 Total. Vested 149 , 320 , 547F".'.135" 798,003' t? t ' Nonvested: r-ly{-:197 158 . 15 084 117 Total ,. 166 517 705 152?-882 , 720 2. Market value of assets at be&inning`3bf%plan year 1217 974,060 216 927 958 .f t, `: Sc :.gyp .a • : i?r•}'s ..:! ' 'i. : >S ? •.; F • 1, f a S f?. s ti::: 'i''?r'v4''t'k ,'> 17 Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft f'!. H;>•*..... ,• ... ... . e .. r a r t ' 1 ",. i. 'i.. 1, 5 •.i f ' ,.r ? Coopers 8 Lybrand L.L.P, L ? d ? " ran a "ftscrW swvcn firm ., CITY OF,CLEARWATER EMPLOYEES' PENSIQN PLAN SECTION IV - ACCOUNTING (continued) C. Statement of Changes in Projected Benefit Oblig ation The, changes" in projected plan benefits from January 1, 1994 to Janua ry 1, 1995 are ` presented below: I.' 'Actuarial present value of projected plan benefits at January 1, 1994 $171,094,893 2. •Incrimase/(decrease) during the plan year ' attributable'to: Benefits paid (5, 294,252) ?7 Benefits, accumulated and increase for interest "'`a}, s:r•;' due to the decrease in the discount period ;F .:: 22575 , 503 ' Change in actuarial assumptions N/A ,) Change in plan provisions N/A c Net increase/ (decXedse )` .: ?•?.?:. .:.<?, $'17,281,251 . . , ' '[`' f• ' 1f ` f? ' ,r ., %. .,i id.?: 1 5:? ': ' 3. Actuarial preseiit~'value"of I ectia' )roj plan , . benefits at Janua-Fy- l;1995 '` •° '' 188 376,344 ' • j ' • ?J. if t: '??;?' ' 18 Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft ' CITY OF CLEARVATER EMPLOYEES' PENSION PLAN SECTION V - CENSUS DATA . ' A. Reconciliation of Employee Data A summary. of changes in the employee data from January 1,,1994 through January 1, '. 1.995 follows. Employees who do not participate in the plan are not included. Retired Terminated Participants Active' Vested and Employees-' Employees Beneficiaries^'.N Total. Participants included in the January 1, 1994 valuation 1,318 7 ,.. ?'=.y. 355°- 'Nonvested terminations (30) (30) Data Revisions 1 3 4 Vested terminations <;'°;""<<;' Deaths with eligibles: bene£ic3ary Deattii='wi:'Chout eligibla*< berieficiarjr, ':'", (6) (8) Ret'iie, ents (2B) 28 Cash nat tlemelits `' Rehi.resJ>' 5 (1) 4 ' New participants 132 132 Participants included in the . January 1, 1995 valuation 1,394 8 380 1,762 Active Participants: Fully vested 609 Partially vested 0 Non-vested 785 Total 1,394 19 Draft For Discussion Purposes Only i -Subject to Revision-Not for Further Distribution Draft CITY OF CLEARWATER EMPLOYEESI?,PENSION PLAN SECTION V CENSUS DATA (continued) ' .B. Age - Service Distribution of Active Participants as of .lanuar l 1995 Years of Service Attained 0'- 4 5 - 9 10-14 15-19 20-24 i -Age No. No. No. No. No. Under 25 34 .0 0 0 0 25 to 29 90 25 0 0 0 30 to 34 79 •102 33 1 0 35, to 39 ' 76 92 '65 2p 3, 40 to 44 40 61' 70 68 >` n 36 ? 45 to 49 43 rSQ.=.?;, 36 } 58 ' ns }x:52 ,, x SQ to 54 20 °: 18 °., 21 %:vTl 25'x., ,ld} . 55... d r •. ?? ,?„ tp,;59.}. 17 ;y.. 7 10 ,.., 11' l2 60!1't6',1-,64 9 S' 10 65 1 0 0 Total ='':;' •:; .w•' 409 376 237 188 138 25+ Total No. No. Earnings 0 34 $ ?,t;763 , 859 ` 0 115 T'Y$ 3 , 241, 230 0 , 215 i $?;6;:802 792 ?s . 41 , .i•f 't.Jt 265 $ 073 i..f ?. 275 $10,621,284 ? i1Y!• }??• 250 $ 8,950,194 } 15 115 $ 4,183,990 13• 70, $ 2,423,317 6 49 $ 1,629,620 1 6 193,533 46 1 ,394 $46,849,892 'Active Participant Statistics Average Age 41,5 years Average Service 10.3 years 20 Draft For Discussion Purposes Only-Subject to Revision-Nat for Further Distribution Draft ' r .5 tj .r.. r r.• , tt n ? Cpvpers Lybrand LLP. C :. L u y rand - - a"iri atil prices form CITY OF CLEARWATER EMPLOYEES' PENSION PLAN ''. SECTION V - CENSUS:DATA (continued) : C.` Inactive Partici ant Count and Benefits as of Januar 1. 1995 Number of Annual Participants Benefit ,'Terminated Vested Participants 8 $ 72,640 Retired Participan ts and Beneficiaries 380 $5,228,578 1 ?• , x 1 fir .'M1 •7 '?r iz. . , .?: '; S :• ?h / i ' • ,"•, : ?'` [s ? t : t y> .. y Y -Aa Draft 21 For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft it ,?? ?? Coopers & Lybrsnd LLP. ' ALyErand pmres= a1 fawtYf firm CITY OF CLEARWATER EMPLOYEES` PENSION-PLAN SECTION VI - ASSUMPTIONS AND METHODS A. Actuarial Assiunntions 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 heavy turnover rates (Scale 355) for females. Sample-rates are shown below: Rate of Withdrawal >+?: Age Male Female 20 14.9% :4x5' 25 9.9% 22``4X E -_ 30 6.9% 35 . 4.9X 1C:.:'4%L-,- 40': A ?2:.8x 74x=': 4W• 45 ,50 22.7V .t'.55••:.;`•. '•r` ?T;;4: VAr'`s•`'3, 0. k 64 and`.tiver 0.0% :.:. Di.sabili.t :i i"Pre-reGiiemr nt,,, incidenc&:-1'.of disability is assumed to occur in adrzordance°1;9"ith a standard`sc le:,of moderate disability rates (Class 1, 1952 Inter- Compa,ny) . Ra:es for fefiia,. `are a'ssumed to be double that for males. . Sample rates <' for =?na3 es are shown below;;: %:l:Y'>i3 AQe Incidence of Disability =.r 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, Salar "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. 22 Draft For Discussion Purposes Only-Subject to Revision-Nat for Further Distribution Draft per Coopers S Lybrand LL.P. 1 ` y ran a ixa+mout so mees firm CITY OF CLEARWATER 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. S t Employees Covered: All participants as of the actuarial valuation°'ait`.` Spouses: Eighty-five percent (85X) of the active participants are assumed to be married (or have dependents eligible for Survivor's Bene£it$s). Female spouses are assumed to be five years younger than male spouses. Expenses: Expenses are assumed to equal'1ast year's actual" 'expenses, ?: >r .4 ; Completeness of Assumptions: All benefl?s'?:and expense tii,be provided by the Plan are recognized in the.'.-Valuation. All :known events are taken into account; no current trends are ;'assumec''ta discontinue, •3ri`: the -'.future. B.,:-'.'Asset 'Valuation Method:t., Effective January 1, 1994, the::Actuarial Value of Assets is based on a five year moving';averagii::of assets valued at statement value. The statement value reflects an amortized:-value for bonds and market value for equity investments. From the statemeiit:;iialiie, actual and expected return an investments is derived. Any differPrice;iluetween the actual return on investments for a given year and the expected"return is spread over five years. After five years the entire amount is fully recognized. However, the Actuarial Value of Assets will never exceed 120% 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 Entry- A a 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. 23 Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft ,Q{)p er CaoAers b Lybrand LLP. tLybrandn,.?,„ ?. . CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION VII - SUMMARY OF PLAN PROVISIONS' This summary is intended as an outline of plan provisions and does not' altor-the intent or meaning of the provisions contained in the contract and/or plan document,. Plan Year: January 1 to December 31. Elic?_ibil U: Any permanent employee shall participate in the plan immediately. Current Emploti•ee Contributions: Wages and salaries actually paid to a participant, from which Employee Contributions are withheld. Avers a Monthl Compensation: The total Compensation received duripi,?li6,'Iast five years of service divided by sixty. ...':_: J. s, Accrued Benefit: A monthly benefit.egual to 2.5% of>Aveiage Monthly Compensation multiplied by the number of years of service to date:`. Normal Retirement: a. Eligibility Normal' Retirement Datt? Non-Hazardous:'butjrCompletiotri,vof'least 20 }?ears of service and the attainment oi;:`age 55 or the catriplet'J6nr' of,: 30 years of service , ;.. :j'• . iazaxdous Duty:' ".Completion of 20 years of service. b, 'Normal Retirement_Beriefit:. The participant's Accrued Benefit payable as of his ;actual r`ettrement date',on or after his Normal Retirement Date. No adjustment 'applies fiii deferred-retirement beyond his Normal Retirement Date. The minimum Normal Retirement Benefit is $300 per month. c. Noi_nael`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, dependent children under 18, or dependent parent(s) for five years. After five years, such Survivor Annuity is reduced to 50% of the original amount (and the $300 minimum is no longer controlling), The Survivor Annuity ceases upon death or remarriage of the spouse or dependent parent(s) or attainment of age 18 by the dependent children, Disability 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, 24 Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft ????ers Coopers 3 Lybrand LLP. X ran d a pro?essio?l Mrv?rfl frrtt CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION VII SUMMARY OF PLAN PROVISIONS (continued) Disability Benefit, continued: b. Disability Benefit: The participant's Accrued Benefit, payable immediately. If the disability is service connected, the Disability Benefit must be at least 75% of Average Monthly Compensation, The minimum Disability Benefit is $300 per month. The Disability Benefit is increased by 15% of'such benefit for each dependent child under 18, but such increments cannot exceed 100% of the original Disability Benefit. C. Form of Benefit: A monthly annuity for the life of the participant:.-:{'After the participant's death, a Survivor Annuity is provided as descritied',.'finder the Normal Form of Benefit. The 15% increments for dependent cliil8ref . under 18 continues to the participant's spouse after his death.'-'as long as the`..children so qualify. Death: a. Eligibility: Any actively- employea?:-".pa:r'ticipant. b: Death Benefit: The: participant'stAccrudd:Benefit, payable immediately. If death is servzae":'connected, the Deailz,,Benefit:,must be''at least 75% of Average Monthly Compensation. 3 ,--,The minimum s Death' $enef.it is $300 per month. C. ;•F(irm',of,-Benefit: ":monthly Survivor.Annuity as described under the Normal From of Beinef i't. Vest ed', 'Terminat'ion: 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. The minimum Termination Benefit is $300 per month. 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. Non-Vested Termination: a. Eligibility: Any actively-employed participant. b. Benefit: Refund of Employee Contributions without interest. C. Form of Benefit: Lump sum. 25 Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft .M"R•r???g?rr 1r 5rr.?1, >. f,.t i. ;S..i.l'rl lf!•. Cyr r. 'klt. ws .. .. ..,. N .e. ,. t ? •t [. ' ,.. I t .DD ers Coopers d Lybrand LLp. ;Lyb rand O?dst?ond •rvKx? &m ? ? v ' p` r+ O N p ?A CO CO ' }e? v M a. .o ri ' M M M W y W M v ? a??? p5exz . x z r ^ ` x x x x ' M r V X N .. ^+[Si K ? K in w x ae Y - m ' ro N a3F y ? • K4 a y , J C bC .- ,r : Ch , L +t ?1N,ryry CO co N M (Vr M ??fyy1 CO V? O ti 40 ?p .p N ? N ifs=.:•:<.< ?'' LLI Ne -C t dc 4C lL O? p -0 CT.ar Z Z z N ? Z xj• 2 x S x 4 ?:^??;.'s.rr`?-r,?'' o v r x z o z z y ? ? ? a c ' x Ni w • o Y o Y d N ^ O Cu! , y U ` el CD °° •? 4) a c m W A O • ? 6 C. d O d A r? T ? l S ?1 C C r? C L to •Q Y W ? a V Cx a . . 4D U M+ ap ca L_ LM 0. C u j i L ? ? ep O C 'O . ?7 U CC + ? C w. r ? F io d 6 d fi N , N a L V s W L d K .y v d d K . r . C IU m~ 7 7 ,to 1] .a w N ro N N N 0. U fu N I t cc C] M F- h- b + 1 ! N C U `J s9 - - ' te 4 x m b . VI {.. a .. x K . Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft Q C7 d r fy %N NNtl N r M J ? P. ?I ptip? 1 + Y?iNG IA N r pO1qp ?0 I??C>`Nr ppp (0 NN V M , N N N r U, '0 '} O r w O x Y ?C Y ??yy ? h•O IOr r O O M m O• M -0?Oeo N M N N VM1 ' N N Y W Gf?.? m C-C 4K m x / il 7x Q ar - Y ? W W a? ? O • RJ. r ? W a W ? pC ' W /•• U1 0 ? v p, QiT ? ' \ tu t;' la ?. fn...'. . r ro" .r `,i>,• ¦ 4n1?oaM h xzx x x ws?°vLn v N 1 N co 'T N N m m N ti p l ? t fti M N r r M C It f? , •,% '• ?^ 0 , . yy ?i: bVSN^N ??pQ N N b 171 © rs .t CO ,.?D s •':.<; •O O m fq M h W •O ?t ? D• { .5? `; y` 2 5• L' . coo 'n C. • N N fD 171 07 ?O O, C •C. Wi't'" ?^K ? 7 0 N 0.ONen 9 rO.4 M D• r M. ••>,' '?O ?D No N'• •' 5 N Naf, a ms d dd 4 d 0 to i:o?.? v zz s z S COO fT !2 L N M ITY fA MI LrI • L Ln r ° N M N w G fll ? M r U M L 0. o u Il " A w. ° d 1 a L. U u 'a M ° to 7 Y ? ? m an ?.. aAJ T 10 W W 0 G w 1?. W j d q ? •- Z L OUC a . Z G x M 99 y L4 N r0 L7 e a. ° ? ... J C cc J 0=r ? - ? 7- 91 > .- 4 N • R w a? L. w N l0 1_ u a 0 • I v a t r. ix o r- 04 Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution. W, Draft .; 1oo?th'+?erss1 4 -flaws a Lybrand LLP. • , i 1l?yb a d I a p)t*ukn&l "most firm a ! .' r N V ^ Q w 00 M; C; }..,, P {fl N r 00%9 611 W1 a N, N N w1 H C! t i • C V , P O S Z Y S N X .} C3 ro ? P r N ! 4 9 ? N N N N• U? ? a 4C dK Mt diC M x z Sc x a' x v 4 in S ?t S O N N N N N s}^?Y; 4 1A ,; i, IL x ri 00 0. 01 N aP m C Co v 4 P t. Y C) Co tv 10 > IA M N ? r f tDi r-.• .. Ui &F gy 44 . 0 44 W p '-;.''? " ' O[ IL O U ,% ..+ . ; } P \ \ \ `i.• 111 . .:.v ??='. >;c7 ' ?: Qr ENO 1n 1nr L ° m P ro .d s x x u1 ?. r , x x. r1 P 7"' tv {A.; . e Q x ? ^ O 0 1n 1n U :•y...: r LA r N r to Z 2 Z " ? ? . ? G S N a' • • r? ? V'1 ?t r „ u! C .O .r a C N N N N N w G G ro ,n v C a) ai 'P G ra p L N U U m « ° • U N y 1n 5 O L w ..- ? a ° ° w 4. G C ..- .p L N VI d - 3 G m a y C u L u a w ,K . G '- ? µ u a y v M . .. lu , \ b t G V d) -E C W _ \ g- to 1- G a U CI ' N k L U L M 1' . N C b .?7 C C C . O C ' pr' 7 i! to L. d t? G a G y Q t. C ?a d 10 , ac a M ??? ? ea 0. IA m } 9 U U G - u ra ? t . u vs r 1 a a UL V C >... ? 41 a ,p,- p ., c . b4 u na u.U a ,rv U o Lo Ca > ? m ., a ' U r U G G •? a?-ca D P O U, C a r .C C a ?+ roa u-» mC G ]e . ?, M L V- ZI I- 4. . L a _ Z U N Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft ., i'•`?,?'r'.??!'.?r;3r <?rl.> rP•`.1? F.e .'rf.C.?„ ??9 `, 'J ' r '? ?. r :00 ers Coopers a Lybrand LLP. ; . < . - , . lygrand 11, rw It we %034 cc s O° ,o M V N 1? ?O V b V1 O M td -QpRr nn W •4 pMpI[[I r M'fMO N &M C2 P? ' . V h O Q ?p .Q N F •O pip Qy Ry r` lit V M7 Sd r» t- Ln M w{{{{{{ t0 iU p? C6 ti Rj N .. ? N '- N N v N N 1ft 1 +F.S .t . y -W N Iti V U W O O O coo ?rf?n a..b?r ?(„ ;??:.h = 4A , r 1' O `' N 1? r p• ry "C Ci -j W pppp,??t Vf o. n ?! v v r+ . r i 6.! S•j?A Af '`f 3Q 4 C O i 1 ?y' ? ti ~ v N N v P w Wlll' Ih RW7 N ~ W": :;"i ' P; rn fu Ln s• 7M N N" ?? N?1h' M LU 44 C4 a tSp Q` r r:: :T 3. W _A "' n i?;; ash V a G t'r :a :c S i':% r. U x'U!-7,o- •¢yi.... .. s,.: r M LA. Y'YS •,; •4?),`; F. '}? •:6" ;:i t, 1. ' Y 16 ?rj`Y`r f d 'L Ui s a C a .. y H .A C •W L r y ? N Z] d L ? m rq ? +d? sai C ? ? ? c Y +'... Q C C C 8 L C L O Y Lft Q L Y L Y L G •O ..? 0 W W U C C G?f p to O m L Y w . La ,? b yr O. U6 U0. .• C w L 7 tr. w .? ri In . •C O L ~L ., 'K ?Lag D K C K O Y C °a CO ??^ (? •Y d U • L N ;; In x 0 Y LM Y C E D u O S G W •C Y at _ r4 Y S d y W X: 1.- W L ' 4? 7 W M ' C G ? O a+ aw p O N E ' W Z d rK dr W 1- ? v Draft For Discussion Purposes Only-Subjcct to Revision-Not for Further Distribution . t { Draft 1?,i?,?\.?. `. ?,. i;? ...:`••'?'F,'W'_??, +4in Y.:t4."..... .. . .. .. 4 .. .. v '\..: ., a ?" , !? .. .- ... , f Caapers & Lybrand LLP. ? ? ? • ? r ' ' rand ygan , , , : , • , w $? Mr- l ?°. •a a" rn P_ .a on m 4A 44 6% 'A o ° ol` a o h 1 O Y1 ft Y )C G vI 01 O C> 31 .. „ 1 p l4 W v M M o v ? Pn° tnM u MM NM ' .r y1 O O CO © to P _ , o ° ?n d rrri tiN Y + o I C3 U% r . LrL , ' { S ? O? F I IR ?T Ih {?1 f frs•?'{ ?. ;`Si??t'Y. "?iM} It C Yi ` ! .. _ M M M 4A {AA M! ': ?ra?''? ' 1;?•?[. s a •,; O C) C5 C3 04 ?T o C3 r. x O ? ti e4 .- `kn `'! Y:" i.t <E ._ • Y C '?° fie } , ... : ' : '? :? ? i • R, ? ::, ' «. L W fMont fT ;. ?n r? M , # . <, ?; VI m ?J a N Q x 4A 6 r 44 'a ! C) C5 O w 4 y w 10 .7 P MuI 'T Ln V_ -T CO r%j 0 C? N N Ch Cc C v W , M N V? ? a+ ' 0? CO " ? 44 M r? M N N ? y W T L U ea .. w 44 > ^ O O • ? t = ; N N A go QP I- a 4 H ? C O < kq O . W v p 0 u . , r p d ty) C Cc a4 ? ] N a v G ? ? ? rC ?, C m m ? a ?m u 0 a+ a+ ?+ a+ ' ' ' L v 4. m w a, W dK W 1 N •+ 7 t md vI OG u m 41 &1 5i t7 " r Ca m I em to m ro ? . w 7 7 ] K ' d vs a+ ?+ w a 3 w ? u ac + +• Draft For Discussion Purposes Only-Subject to Revision-Not for Further Distribution Draft CITY OF CLEARWATER EMPLOYEES PENSION FUND ASSET DISTREBUTION PERIOD ENDED MARCH 31, 1995 Actual Asset Distribution ($ Millions) GIC S37 6.017b Cash an SEquivalents 14 0.9r,n In-Hous52Accot 23.sro . Eickhoff. Pieper 3131195 Ending Asset Category Market Value Equities 5116 Fixed-Income S62 Cash and Equivalents S14 G1Cs S37 TOTAL FUND $230 trio I-Income S62 Manaaer Distribution (S Millions) 20.1 C%6 Denver Investment 3131195 S»5 Ending Asset Allocation. Market Value Aetna Capital Mpnt 544 Denver Investment S:6 Hanson Lnvestment S52 Shields Asset Mgmt S51 Eickhoff. Pieper S55 1 9`"o In-House Account S2 on investment TOTAL FUND 5230 S32 22.217b Shields Asset Mernt Callan Associates Inc. 50.611o Equities 115 19.21io Aetna Capital Mont 5-«4 CITY OF CLEARWATER EMPLOYEES PENSION FUND RECENT PERIODS 12!94-- i I. ,. 1 Aeltus Investment Management Equities 8.2117o 2,289'0 8.371% 1.321o 41.67% Total Fund 7.96 2.88 7.60 1.04 39.67 Denver Investment Advisors Equities 7.331% (0.20)% 20.20% 8.62% ' 7.0.88Tc Total Fund 7.02 0.82 18.79 7.68 68.73 Hanson Investment Management Equities 8.02% (4.51 )% 1.12% 10.92% 40.301c . Total Fund 7.40 (4.27) 0.90 10.56 37.93 Composite Equities I Equities 7.82% (0.38)9o 10.45% 6.35% 50.3517c . Total Fund 7.46 0.20 9.79 5.$6 48.18 i Shields Asset Management Fixed-Income 4,46% (2.69)% 10.09% 8.88% - ? Total Fund 4.39 (2.33) 9.61 8,42 - Eickhoff, Pieper & Willoughby j Fixed-Income 5.37% - - - - GICs 1:68 7.87 9.09 9.02 - Total Fund 2.25 7.00 8.45 8.67 - Composite Fund Total Fund(1) ' 5,431% 1.02;'0 9.3317o 6.65% 29.559c Market Indiraors Standard & Poor's 500 9.731% 1.27% 9.91% 7.69% 30.55% Lehman Brothers Aggregate 5.04 (2.92) 9.75 7.40 16.00 Lehman Brothers Govt/Corp 4.98 (3.51) 11.03 7.59 16.13 Customized Benchmark(2) 4.93. (2.83) 9.43 7.19 15.65 Treasury Bills 1.47 4.32 3.11 3.61 5.80 Consumer Price Index 1.02 2.72 2.50 2.86 2.81 (1) Includes the In-House Account. (2) City of Clearwater ordinance prohibits Shields Asset Management from investing in Fixed-Income below Aa rating. For explanation of market indicators and comparable funds see end of report. CrN OF CLEARWATER EMPLOYEES PENSION FUND RECENT PERIODS 12194- i"? Rr?r??rif Prrirvic ?IQS Median Rates of Return Growth Equity Style .7.95% 0.03% 6.74% 5.97% 39.331'0 .,Middle Capitalization Equity Style '8.58 (1.35) 16.85 12.76 44.99 Value Equity Style 9.46 0.88 13.55. 9.71 28.58 Total Equity Database .8.19 0.22 12.35 8.54 32.13 Core Bond Fixed-Income Style 4.83 (3.10) 11.09 7.77 16.62 Total Fixed-Income Database 4.69 (2.31) 10.43 7.61 16.09 Public Plan Sponsor Database 5.48 (0.91) 12.45 7.01 21.98 Ranking (1-Best,100-Worst) vs. Growth Equity Style Aeltus Jnvestment Management Total Fund 49 16 4l3 94 50 vs. Ivltddle Capitalization Equity Style Denver Investment Advisors Total Fund 75 27 39 76 12 vs. Value Equity Style Hanson Investment Mavagement Total Fund 92 97 97 42 5 vs. Total Equity Database Composite Equities Total Fund 61 50 68 73 12 vs. Core Bond Faced-Income Style Shields Asset Management Total Fund 88 19 83 18 - vs. Total Fixed Income Database Shields Asset Management Total Fund 61 51 62 24 - Eickhoff, Pieper & Wfflougbby Total Fund 97 1 77 21 - ' vs. Public Plan Sponsor Database . Composite Fund Total Fund(1) .55 11 89 56 4 (1) Includes the In-House Account. (2) City of Clearwater ordinance prohibits Shields Asset Management from investing in Fixed-Income below Aa rating. For explanation of market indicators and comparable funds see end of report. C i? in Callan Associates Inc. 9