07-09-2001Agenda/Pension
7-9-01
ACTION AGENDA
Board of Trustees of the Employees' Pension Fund
July 9, 2001
Call to Order - 12:24 p.m.
2. Approval of Minutes: 6/18/01 - Approved.
3. Request for acceptance into membership: Jack Bruce, Kay Norred, Jennifer Wargin,
Anthony Tedesco, Greg Newland, Melody Benbow, Kristin Wolanski, Jeremy
Albrecht, Deedra Chatman, Jeffrey Nolan, Thomas Meagher, Brandon Kinnecom,
Arnold Retzer, Jr., Cherie Epley, &. Rodney Byrd - Approved.
4. Regular Pension(s) to be granted: Wallace Green - Approved.
5. Pension(s) to be vested: Lori Metzner - Approved.
6. Approve contract with Capital Guardian Trust Company as domestic large cap value
equity manager for Employees' Pension Plan - Pulled.
7. Recommend Commission pass Ord. #6826-01 on 1 st reading & adopt on 2nd reading
which will correct technical errors in Pension Plan - Approved.
8. Other Business - item re Chief Klein's application for inclusion in Pension Plan to be
agendaed for 8/13/01.
9. Adjourn - 12:29 p.m.
pG?S'lut.i
I
Meeting Date: f - 9 . o l Approved by Trustees:
CITY OF CLEARWATER
EMPLOYEES' PENSION PLAN/
PENSION ADVISORY COMMITTEE
TO: Pension Trustees
FROM: Pension Advisory Committee
SUBJECT: Recommendation for Acceptance into Pension Plan
DATE: June 14, 2001
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
1697.45 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
Jack Bruce, Field Service Representative/Customer Service 4/23/01 4/23/01
Kay Norred, TV Production Specialist/Pub. Communications & Marketing 4/23/01 4/23/01
Jennifer Wargin, Firefighter/Fire 517/01 517/01
Anthony Tedesco, Firefighter/Fire 5/7/01 5/7/01
Greg Newland, Firefighter/Fire 517/01 5/7/01
Melody Benbow, Neighborhood Service Coordinator/Planning & Dev. Ser. 5/7/01 5/7/01
Kristin Wolanski, Firefighter/Fire 5/7/01 5/7/01
Jeremy Albrecht, Parks Service Technician I/Parks & Recreation 5/7/01 5/7101
Deedra Chatman, Police Service Technician/Police 5/7/01 5/7/01
Jeffrey Nolan, Network Analyst/Information Technology 5/21/01 5/21/01
Thomas Meagher, Custodial Worker/Parks & Recreation 6/21/00 5/21/01
Brandon, Kinnecom, Maintenance Worker II/General Support Services 5/7/01 5/7/01
Arnold Retzer, Jr., Equipment Operator III/Public Services 517/01 5/7/01
Cherie Epley, Industrial Pretreatment Technician/Public Utilities 5/21/01 5/21/01
Rodney Byrd, Parks Service Technician I/Parks & Recreation 5/21/01 5/21/01
'originally employed as part-time: transferred to full-time and pension eligible as of 5/21/01
ension Advisory ommi air -
'01 Trustees of the Agenda Item
Employees' Pension Plan 7/9/01
Meeting Date:
Agenda Cover Memorandum
SUBJECT/RECOMMENDATION:
Wallace Green, Fire Department, be granted a regular pension 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:
Wallace Green Firefighter, Fire Department, was employed by the City on
August 6, 1979, and his pension service credit is effective on that date. His pension will be effective
September 1, 2001.
Based on an average salary of approximately $42,315 per year over the past five years, the formula for computing
regular pensions, and Mr. Green's selection of the 100% joint & Survivor Annuity, this pension will approximate
$25,295 annually.
This pension was approved by the Pension Advisory Committee on June 14, 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 Firefighter as meeting the
hazardous duty criteria. Mr. Green qualifies under 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.
Reviewed by: Originating Dept: Costs
Legal NA Info Tech NA Debbie Ford/Human Resources Total
Budget NA Public Works A User Dept. Funding Source:
Purchasing NA DCM/AC captal'mproveme"' Current Fiscal Year
Risk Mgmt NA Other Attachments Operating
other
Appropriation Code:
Submitted by: ?:11
+?
^+
7 None
City Manager ?
PriMM nn rrcvr rrd naner Rrv_ 2/9A
.? Is W Q
' Trustees of the
Agenda Item tt+
Employees' Pension Plan Meeting Date: 7/9/01
Agenda Cover Memorandum
SUBJECT/RECOMMENDATION:
Lori Metzner, Library 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:
Lori Metzner, Librarian I, Library Department, was employed by the City on September 6, 1994. Ms. Metzner
previously worked for the City and vested her pension after ten years of service. She returned to City employment
in 1994 and her pension service credit date was adjusted to June 30, 1989. She again terminated from City
employment on June 1, 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. Ms. Metzner would have completed twenty years of service and reached age 55 on
January 1, 2010. Her pension will be effective on February 1, 2010. This request was approved by the Pension
Advisory Committee on June 14, 2001.
Reviewed by: Originating Dept: Costs
Legal NA Info Tech NA Debbie Ford/Human Resources Total
Budget NA Public Works A User Dept. Funding Source:
Purchasing, NA DCM/ACM eaptfal'mprovement Current Fiscal Year
Risk Mgmt NA Other Attachments Operating
Other
Appropriation Code:
Submitted by: F
44 ? None
City Manager
Printed on recvcl ed saner Qav. 714R
a
99?'ATEP.?`???
Employee's Pension Plan
Trustee's
Agenda Cover Memorandum
Final Agenda Item # 6
Meeting Date: 7. q. 0/
SUB JECT/RECOMMENDATION:
Approve the contract with Capital Guardian Trust Company as domestic large cap value equity manager
for the Employee's Pension Plan,
21 and that the appropriate officials be authorized to execute same.
SUMMARY:
• The Trustees previously authorized Callan to conduct a search for a domestic large cap value equity
manager.
• The following is the list of domestic large-cap equity managers that Callan recommended to the Investment
Committee:
* Capital Guardian Trust Company
* Equinox Capital Management, LLC
* GE Asset Management
Institutional Capital Corporation
Iridian Asset management LLC
Sanford C. Bernstein & Co., 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 Capital Guardian Trust Company.
• The Investment Committee recommends that Capital Guardian Trust Company be funded to start with $30
million.
• Capital Guardian's management fee is .50 of 1 % on the first $25 million and .35 of 1 % on the next $25
million per year. The annual fee for $30 million would be .50 of 1 % of $25 million ($125,000) plus .35 of
1 % of $5 million ($17,500), for a total of $142,500. This fee is very competitive. The source of these
funds for investment will be determined as the Investment Committee rebalances the portfolio.
• The contract with Capital Guardian Trust Company is available for review in the City Clerk's Office.
Reviewed by: Originating Dept: Costs
Legal At Info Srvc N/A Finance S. Moskun Total $142,500 Annually on S30 million
Budget Public Works N/ User Dept. Funding Source:
Purchasing DCM/ACM Finance Current $35,625 Cl
FY
Risk Mgmt N/A Other Attachments OP
Other X
Submitted by: None
City Manager Appropriation Code: 646-07410.530100.585-000
CO printed nn recycled uauer Rev. 2/98
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Trustees of the
a
99w?rEt?s?o? Employees' Pension Plan Final Agenda Item #
Agenda Cover Memorandum Meeting Date: T 9. 0
SUBJECT/RECOMMENDATION:
Recommend to the City Commission the passage of Ordinance No. 6826-01 which will
correct technical errors contained in the City of Clearwater Employees' Pension Plan
? and that the appropriate officials be authorized to execute same.
SUMMARY:
It was recently discovered that there are several technical errors contained in the Pension Plan codification as
it appears in the City of Clearwater Municipal Code of Ordinances. These corrections were presented to the
Pension Advisory Committee (PAC) on June 14, 2001, and the PAC recommended the approval of these
corrections.
There are three recommended changes:
1) The language in Section 2.397, subsection (fl, granting a 1.5% cost of living allowance effective
April 1, 2000, be added back into the ordinance and current subsections (f) and (g) be renumbered
as subsections (g) and (h);
2) Section 2.398, Time and manner of benefit payments, subsection (a)Mc.1. be amended to indicate
that the guarantee of 120 payments for disability benefits applies only to police officer and
firefighter participants; and
3) Section 2.398, Time and manner of benefit payments, subsection (b)(2)a.3. be amended to indicate
that the 66 2/3 percent payment option applies only to police officer and firefighter participants.
These changes are being presented to the Trustees for their recommendation to the City Commission
Reviewed by: Originating Dept: Costs
Legal Info Tech NA Human Resources _ Total
Budget NA Public Works NA User Dept. Funding Source:
Purchasing NA DCNAIACM OUAW I1),me "'"' Current Fiscal Year
Risk Nigmt NA Other NA Attachments
Ordinance
Appropriation Code:
Submitted by: ? None
City Manager
Printed an recvcled naoer Rev. 2198
ORDINANCE NO. 6826-01
AN ORDINANCE OF THE CITY OF CLEARWATER,
FLORIDA, AMENDING CHAPTER 2, ADMINISTRATION,
ARTICLE V, EMPLOYEE BENEFITS, DIVISION 3,
EMPLOYEES' PENSION PLAN, OF THE CODE OF
ORDINANCES OF THE CITY OF CLEARWATER; AMENDING
SECTION 2.397, BENEFITS UNDER THE PLAN; AMENDING
SECTION 2.398, TIME AND MANNER OF BENEFIT
PAYMENTS; PROVIDING FOR SEVERABILITY; REPEALING
ALL ORDINANCES IN CONFLICT HEREWITH AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, Ordinance No. 6494-00 was adopted by the City Commission and
approved by referendum of the electorate on March 14, 2000, which ordinance amended
the City of Clearwater Employees' Pension Plan; and
WHEREAS, a portion of Ordinance 6494-00, providing for a cost-of-living
adjustment, was inadvertently omitted from the codification of this ordinance; and
WHEREAS, Ordinance No. 6563-00 was adopted by the City Commission on June
15, 2000 to comply with Chapter 99-01, Laws of Florida, and certain technical corrections
to the ordinance are necessary to clarify the compliance with the state legislation to limit
certain changes to only police officer and firefighter participants; and
WHEREAS, the City Commission desires to make the necessary corrections to the
Employees' Pension Plan; now, therefore,
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY
OF CLEARWATER, FLORIDA, THAT:
Section 1. Chapter 2, Administration, Article V, Employee Benefits, Division 3,
Employees' Pension Plan, of the Code of Ordinances of the City of Clearwater is hereby
amended by amending Section 2.397, Benefits under the plan, to add subsection (f), Cost-
of-living adjustment, as follows and to renumber subsections (f) and (g) as subsections (g)
and (h), respectively:
(a)(1) c. 1. The amount of the disability benefit to. which a participant is
entitled under paragraph (c) of section 2.397 shall commence
as of the end of the month that next follows the later of (1) the
month in which a determination is made as to the participant's
disability or (2) the month in which the participant terminates
employment, continuing as of the last day of each month
thereafter during his lifetime and the lifetime of his beneficiary,
Ordinance 6826-01
Section 2. Chapter 2, Administration, Article V, Employee Benefits, Division 3,
Employees' Pension Plan, of the Code of Ordinances of the City of Clearwater is hereby
amended by amending Section 2.398, Time and manner of benefit payments, subsection
(a)(1)c.1. and subsection (b)(2)a.3., to read as follows:
if any;: With respect to police officer and firefighter
participants. 120 payments shall be guaranteed in any event;
(b) (2) a. 3. Monthly income payments for the life of the participant and,
after his death, a survivor annuity payable for the life of the
participant's designated beneficiary equal to 100 percent, 75
percent, 66 2/3 percent (for police officer and firefighter
participants only) or 50 percent of the amount payable to the
participant. Police officer and firefighter participants shall be
permitted to change his joint annuitant as provided for in
175.171, 175.333, 185.161 and 185.341.
Section 3. If any provision of this ordinance or any policy or order thereunder of the
application of such provision to any person or circumstances shall be held invalid, the
remainder of this ordinance and the application of such provision of this ordinance or of
such policy or order to persons or circumstances other than those to which it is held invalid
shall not be affected thereby.
Section 4. All Ordinances or parts of Ordinances in conflict herewith be and the
same are hereby repealed.
Section 5. This ordinance shall become effective upon adoption except that Section
1 of this ordinance shall be effective retroactively to April 1, 2000 and Section 2 of this
ordinance shall be effective retroactively to December 31, 1999.
PASSED ON FIRST READING
PASSED ON SECOND AND FINAL
READING AND ADOPTED
Approved as to form:
Brian J. Aungst
Mayor-Commissioner
Attest:
Leslie K. Dougall-Sias
Assistant City Attorney
Cynthia E. Goudeau
City Clerk
2
Ordinance 6826-01