06-18-2001Agenda/Pension
6-18-01
ACTION AGENDA
Board of Trustees of the Employees' Pension Fund
June 18, 2001
1. Call to Order - 9:22 a.m.
2. Approval of Minutes: 5/14/01 - Approved as submitted.
3. Request for acceptance into membership: Kimberly McDaniel, Jessica Jameson, Vicki
Duffey, Eileen Karner, Katie Robinson, Michelle Arnold, William Daniel, Manuel
Cordero, Charles Walden, Stanley Conord, Lydia Moreda, James Wagner, & Samantha
Stahl - Approved.
4. Regular Pension(s) to be granted: Richard Vellucci & William Buchenhorst - Approved.
5. Pension(s) to be vested: John Weppler - Approved.
6. Approve addition of 5 members to Investment Advisory Committee, 1 representative
from each union - Approved.
7. Approve contract with Artisan Partners Limited Partnership as domestic mid-cap
equity manager for Employees' Pension Plan - Approved.
8. Accept Actuary's Report for Employees' Pension Plan for plan year beginning 1 /1 /01 -
Accepted.
9. Other Business
a) Chief Sidney Klein's application for inclusion in Pension Plan - Approved retaining
Mr. Cypen on behalf of the Pension Plan to provide an opinion regarding whether to
have pre litigation mediation regarding Chief Klein's application for inclusion in the
Pension Plan.
10. Adjourn -9:33 a.m.
Meeting Date: ?i
TO: Pension Trustees
Approved by Trustees:
CITY OF CLEARWATER
EMPLOYEES' PENSION PLAN/
PENSION ADVISORY COMMITTEE
FROM: Pension Advisory Committee
SUBJECT: Recommendation for Acceptance into Pension Plan
DATE: May 10, 2001
3
As Trustees of the City of Clearwater Employees' Pension Fund, you are hereby notified that the
employee(s) listed below have been duly examined by a local physician and each has been designated as a
"first class risk". The employment of these individuals brings the number of FTE's as of this date to
1695.17 of 1799.3 budgeted positions (including the City Commission).
These employees are eligible for pension membership as noted in the Pension Eligibility Date column
below, and it is the recommendation of the Pension Advisory Committee that they be accepted into
membership.
Pension Elig.
Name, Job. Class, & Dept./Div. Hire Date Date
Kimberly McDaniel, Library Assistant/Library 10/09/00 4/7/01 '
Jessica Jameson, Police Communications Operator Trainee/Police 4/9/01 4/9/01
Vicki Duffey, Police Communications Operator Trainee/Police 4/9/01 4/9/01
Eileen Kamer, Police Information Technician I/Police 4/9/01 4/9/01
Katie Robinson, Parks Service Technician I/Parks & Recreation 4/9/01 4/9/01
Michelle Arnold, Librarian [/Library 4/9/01 4/9/01
William Daniel, Personnel/Payroll Technician/Police 3/26/01 3/26/01
Manuel Cordero, Custodial Worker/Parks & Recreation 3/10/01 3/10/01
Charles Walden, WWTP Operator Trainee/Public Utilities 4/9/01 4/9/01
Stanley Conord, Police Cadet/Police 3/12/01 3/12/01
Lydia Moreda, Seniory Systems Analyst/Planning & Development Services 4/23/01 4/23/01
James Wagner, Development Review Tech. I/Planning & Dev. Services 4/23/01 4/23/01
Samantha Stahl, Police Communications Operator Trainee/Police 4/9/01 419/01
originally hired as permaritent part-time; promoted to full-time and pension eligible as of 4/7/01
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ension wsory om air
Trustees of the
R c Final Agenda Item #
9q?,;9. Employees' Pension Plan 6/18/01
Meeting Date:
Agenda Cover Memorandum
SUBJECT/RECOMMENDATION:
Richard VellUCCi, Fire Department, and William Buchenhorst, Public Utilities 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:
Richard Vellucci, Fire Lieutenant, Fire Department, was employed by the City on
December 17, 1973, and his pension service credit is effective on that date. His pension will be effective
May 1, 2001.
Based on an average salary of approximately $51,103 per year over the past five years, the formula for computing
regular pensions, and Mr. Vellucci's selection of the 100% Joint & Survivor Annuity, this pension will
approximate $37,965 annually.
William Buchenhorst, Wastewater Treatment Plant Lead Operator, Public Utilities Department, was employed
by the City on October 4, 1976, and his pension service credit is effective on that date. His pension will be
effective June 1, 2001.
Based on an average salary of approximately $43,999 per year over the past five years, the formula for computing
regular pensions, and Mr. Buchenhorst selection of the 100% Joint & Survivor Annuity, thi' pension will
approximate $29,156 annually.
These pensions were approved by the Pension Advisory Committee on May 10, 2001. 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 Fire Lieutenant as meeting
the hazardous duty criteria. Section 2.393 (p) also provides for normal retirement eligibility when a participant
has reached age 55 and completed twenty years of credited service, has completed 30 years of credited service,
or has reached age 65 and completed ten years of credited service. Mr. Vellucci qualifies under the hazardous
duty criteria. Mr. Buchenhorst qualifies under the age 55 and 20 years of service 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 DCtYVACM J Captial lmpro%emenl Current Fiscal Year
Risk Mgmt NA Other NA Attachments operaams
olhcf
Appropriation Code:
Submitted by: ? None
City Manager
Prin1M nn rPrvrIM n snrr Rnv_ WOR
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Trustees of the
Final Agenda Item #
Employees' Pension Plan 6/18/01
Meeting Date:
Agenda Cover Memorandum
SUBJECT/RECOMMENDATION:
John Weppler, Gas Department, be allowed to vest his 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:
John Weppler, Gas Technician III, Gas Department, was employed by the City on April 21, 1991, and his
pension service credit is effective on that date. He terminated from City employment on
May 4, 2001.
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. Mr. Weppler would have completed twenty years of service and reached age 55 on
April 21, 2011. His pension will be effective on May 1, 2011. This request was approved by the Pension
Advisory Committee on May 10, 2001.
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 c.'i"'al'mprmen1ew Current Fiscal Year
Risk Mgmt NA Other NA Attachments Operating
Other
Appropriation Code:
Submitted by: 0 None
City Mana er
Printed on recvcted oaner Rev. 2/98
,5.• Employee's Pension Plan
Trustee's
_ o
Agenda Cover Memorandum Final Agenda Item # (p
Meeting Date: ?p • / • O/
SUBJECT/RECOMMENDATION:
Approve the addition of five members to the Investment Advisory Committee, one representative from
each of the unions.
0 and that the appropriate officials be authorized to execute same.
SUMMARY:
• The Investment Advisory Committee meets quarterly to receive updates from investment managers,
review performance and discuss investments with the plan's consultants. In addition, the committee
meets on an as needed basis for items such as manager searches.
• The Investment Advisory Committee is currently composed of the Finance Services Administrator,
Assistant Finance Director, Finance Controller, Risk Manager, Senior Accountant, General Services
Controller, Fire Administrative Support Manager and Cash & Investments Manager.
• Staff is now recommending the one representative for each of the five unions also be formally added to
the committee. Representatives from some of the unions have been regular attendees at the
meetings.
• The meetings are open to anyone who wants to attend.
Reviewed b Originating Dept: Costs
Legal Info Srvc N/A Finance ' •rn S Moskun Total 0
Budget N/A Public Works N/A User Dept. Funding Source:
Purchasing N/A DCM/ACM Finance Current FY 0 CI
Risk Mgmt N/A Other Attachments OP
Other 0
Submitted by:
City Manager O None Appropriation Code:
Printed on recycled paper Rev. 2/98
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?9?ITE ?`o
Employee's Pension Plan
Trustee's
Agenda Cover Memorandum
Final Agenda Item #
Meeting Date: (049,0/
SUBJECT/RECOMMENDATION:
Approve the contract with Artisan Partners Limited Partnership as domestic mid-cap equity manager for
the Employee's Pension Plan,
19 and that the appropriate officials be authorized to execute same.
SUMMARY:
• The Trustees previously authorized Callan to conduct a search for a domestic mid-cap equity manager.
• The following is the list of domestic mid-cap equity managers that Callan recommended to the Investment
Committee:
* Artisan Partners Limited Partnership
MFS Institutional Advisors, Inc.
Seneca Capital Management LLC
Sit Investment Associates, Inc.
Putnam Investments
Morgan Stanley dean Witter Investments Management
T. Rowe Price Associates, Inc.
• After reviewing the information provided on the above managers, the Investment Committee ranked the
managers and conducted interviews with the top three firms listed above (*).
• The Investment Committee recommends to the Trustees that they add Artisan Partners Limited Partnership.
• The Investment Committee recommends that Artisan Partners be funded to start with $30 million and the
funds be taken from growth style domestic equity managers as follows: Denver $15 million, Aeltus $10
million and 3 Bridge $5 million.
• Artisan's management fee is .80 of 1 % or $240,000 on $30 million per year. This is the lowest fee that
that Artisan's charges new customers. While this fee is higher than we pay most of our existing money
managers it is consistent with what other mid cap equity managers are charging new customers.
• The contract with Artisan Partners is available for review in the City Clerk's Office.
Reviewed by: Originating Dept: Costs
Legal ckliL Info Srvc N/A Finance S. Moskun Total $240,000 Annually on $30 million
Budget Public Works N/A User Dept. Funding Source:
Purchasing N/A DCM/ACM N/A Finance L-M.b Current $60,000 Cl
FY
Risk Mgmt N/A Other Attachments OP
Other X
Submitted by:
?
U M'M'1
Cit
M 19 None
?
anager O
y Appropriation Code: 646-07410-530100.585-000
Printed on recvcled n:ruer Rev. 2/98
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Employees Pension Plan
Agenda Cover Memorandum Final Agenda Item #
Meeting Date: 6, - / g • O/
SUBJECT/RECOMMENDATION: Accept the Actuary's Report for the Employees' Pension Plan for the
plan year beginning 0/01,
O and that the appropriate officials be authorized to execute same.
SUMMARY:
• The 1/1/01 actuarial report for the Employees' Pension Plan indicates that no City contribution is
required due to investment performance over the last five years that exceeded the actuarial
assumption. 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
$3,840,521).
• The difference between the legally required contribution of $3,840,521 and the actuarial determined
contribution of $-0- will accrue to the existing credit balance, increasing it from a current level of
$15,156,006.
• The actuarially required contribution of $-0- is primarily due to the phase-in of prior asset gains per
the rolling five year average used to "smooth" investment performance. The market value basis
performance for the last five years (1996, 1997, 1998, 1999, and 2000, respectively) has been
14.80%, 17.49%, 16.74%, 18.61 % and (3.43)%. Although calendar year 2000 investment returns
were negative, the five year average return (in excess of 12%) exceeded the actuarial assumption of
7%.
• The funded status of the plan (ratio of assets at market value to the actuarial present value of
accumulated plan benefits) decreased from 162% at 1/1/00 to 148% at 1/1/01, primarily due to the
plan investment performance for calendar year 2000. The plan experienced a negative 3.43%
investment return for calendar year 2000 due to the downturn in the stock market.
A copy of the draft Actuary's Report is available for review in the City Clerk Department.
Reviewed by: Originating Dept: Costs
Legal N/A Info Srvc N/A Finance Department Total N/A
Budget Public Works N/A Jay Ravins, Deputy Director Funding Source:
Purchasing N/A DCM/ACM User Dept. .6urrent FY CI
Risk Mgmt N/ Marina N/A Finance Department OP X
Finance Other
Submitted by: Attachments: Appropriation Codes:
City Manager None
Printed nn recvcled naner Qe. ?toa