08-13-2001Agenda/Pension
8-13-01
ACTION AGENDA
Board of Trustees of the Employees' Pension Fund
August 13, 2001
1. Call to Order - 1:08 p.m.
2. Approval of Minutes: 7/9/01 - Approved as submitted.
3. Request for acceptance into membership: Daniel Toro, Anthony Suggs, Connie
Tuisku, Robert Sullivan, Richard Bonton, Andrea Bass, Raymond Minniefield, Dennis
Britt, Kathleen McCauley, Thomas Fears, & Antonio Green - Approved.
4. Regular Pension(s) to be granted: Jeffrey Daniels, Leonard Marotta, & Eddie Griffin -
Approved.
5. Pension(s) to be vested: James Hill - Approved.
6. Agreement with Capital Guardian Trust Company, serve as domestic large cap value
equity manager for Employees' Pension Plan, $142,500 - Approved.
7. Administrative expenditure budget for Fiscal Year 2001-2002 totaling $243,728 for
Employees' Pension Plan - Approved.
8. Other Business - Attorney Cypen recommends no further action re Chief Sid Klein's
request to participate in pension plan.
9. Adjourn - 1:18 p.m.
Meeting Date:" l b 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: July 12, 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
1701.89 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
Daniel Toro, Mechanic II/General Support Services 615/01 6/5/01
Anthony Suggs, Field Service Representative/Customer Service 6/4/01 n 6/4/01
Connie Tuisku, Librarian I/Library 6/4/01 6/4/01
Robert Sullivan, Network Analyst/information Technology 6/4/01 6/4/01
Richard Bonton, Public Services Technician I/Public Utilities 6118/01 6/18/01
Andrea Bass, Customer Service Representative/Public Services 6118/01 6/18/01
Raymond Minniefield, Public Utilities Technician I/Public Utilities 6/18/01 6/18/01
Dennis Britt, Public Services Technician I/Public Services 6118/01 6/18/01
Kathleen McCauley, Police Communications Operator Trainee/Police 6/18/01 6/18/01
Thomas Fears, Engineer II/Public Works 6/25/01 6/25/01
Antonio Green, Solid Waste Equipment Operator/Solid Waste 1/18/00 6/16/01
• originally hired as part-time on 1/18/00; transferred to full-time and pension eligible as of 6/16/01
ension Advisory ommi air
?L a
Trustees of the
Employees' Pension Plan
Agenda Cover Memorandum
Agenda Item Z/
Meeting Date: 8/13/01
SUBJECT/RECOMMENDATION:
Jeffrey Daniels, Fire Department; Leonard Marotta, Police Department; and Eddie Griffin, Police Department, be
granted regular pensions under Section(s) 2.393 and 2.397 of the Employees' Pension Plan as approved by the
Pension Advisory Committee.
and that the appropriate officials be authorized to execute same.
SUMMARY:
Jeffrey Daniels, Fire Inspector, Fire Department, was employed by the City on
January 17, 1972, and his pension service credit is effective on that date. His pension will be effective
July 1, 2001.
Based on an average salary of approximately $50,381 per year over the past five years, the formula for computing
regular pensions, and Mr. Daniels' selection of the joint & Survivor Annuity, this pension will approximate
$40,752 annually.
Leonard Marotta, Police Sergeant, Police Department, was employed by the City on
September 26, 1978, and his pension service credit is effective on April 17, 1980. His pension will be effective
August 1, 2001.
Based on an average salary of approximately $46,908 per year over the past five years, the formula for computing
regular pensions, and Mr. Marotta's selection of the 100% Joint & Survivor Annuity, this pension will
approximate $27,183 annually.
Eddie Griffin, Police Sergeant, Police Department, was employed by the City on
April 19, 1976, and his pension service credit is effective on October 9, 1976. His pension will be effective
August 1, 2001.
Based on an average salary of approximately $62,218 per year over the past five years, the formula for computing
regular pensions, and Mr. Griffin's selection of the 100% Joint & Survivor Annuity, this pension will approximate
$41,711 annually.
These pensions were approved by the Pension Advisory Committee on July 12, 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 Inspector and Police
Sergeant as meeting the hazardous duty criteria. Mr. Daniels, Mr. Marotta, and Mr. Griffin qualify under the
hazardous duty criteria.
Reviewed by: Originating Dept: Costs
Legal NA Info Tech NA Debbie Ford/Human Resources Total
Budget NA Public Works NA User Dept. Funding Source:
Purchasing NA DCM/ACM captial 1111nrovemem Current Fiscal Year
Risk Mgmt NA Other NA Attachments Operating
? Olher
Appropriation Code:
Submitted by: ? None
City Manager
Prinlyd nn rrrvded naner Rev. 2/98
Trustees of the Agenda Item #
9qw,,?•? Employees' Pension Plan 8/1 3/01
Meeting Date:
Agenda Cover Memorandum
SUBJECT/RECOMMENDATION:
James Hill, General Services 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:
James Hill, General Support Services Department, was employed by the City on June 20, 1988. Mr. Hill
terminated from City employment on May 17, 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. Hill would have completed twenty years of service and reached age 55 on
May 8, 2009. His pension will be effective on June 1, 2009. This request was approved by the Pension Advisory
Committee on July 12, 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 captiai improveme"t Current Fiscal Year
Risk Mgmt NA Other NA Attachments Operating
Other
Appropriation Code:
Submitted by: ? None
Ch Manager
Printed on recycled paper Rev. 2/98
sE?tr. r Employee's Pension Plan
Trustee's
Agenda Cover Memorandum Agenda Item #
Meeting Date: F3. 13, cl SUBJECT/RECOMMENDATION:
Approve the contract with Capital Guardian Trust Company as domestic large cap value equity manager
for the Employee's Pension Plan,
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 I- )A Info Srvc N/A Finance S. Moskun Total $142,500 Annually on $30 million
Budget Public Works N/ User Dept. Funding Source:
Purchasing t DCWACM Finance Current $35,625 Cl
FY
Risk Mgmt N/A Other Attachments OP
Other X
Submitted by: 0 None
City Manager Appropriation Code: 646-07410-530100-585-000
Prinlwl nn reevcIM nanpr Qw_ T/Qe
Ste`
Employees' Pension Trustee r
'qw Agenda Cover Memorandum Agenda Item #
Meeting Date:
SUBJECT/RECOMMENDATION:
Approve the recommended administrative expenditure budget for fiscal year 2001-02 totaling $243,728
for the City of Clearwater Employees' Pension Plan,
191 and that the appropriate officials be authorized to execute same.
SUMMARY:
• Attached is the proposed budget for fiscal year 2001 - 2002 including historical numbers.
• Medical Bills is for the medical services that the Pension Advisory Committee authorizes.
• In the past, medical exams were paid by the General Fund and were reimbursed via a transfer to the pension
plan. Starting with this budget they will be paid directly by the pension plan.
• Consultants include the following projects: $10,000 Pension Analysis Update, $10,000 DROP
Modeling/Assessment and $10,000 Assessment of Retiree Health Subsidy.
• Travel is for members of the Pension Investment Committee to attend the Callan training seminar and visit
Callan, the pension plan's performance measurement firm. The decrease was caused by due diligence trips
staff made in FY 00-01 that do not need to be repeated in the next fiscal year.
• Printing and Binding is for the statutorily required annual information distribution to the members of the
pension plan.
• Training is for the mandatory training required by state statute.
• The Actuary contract will be out for Request For Proposals shortly and we anticipate an increase in
miscellaneous consulting fees.
• The legal budget is being increased to reflect actual legal costs.
• An Integrated Disability Management project is being funded at $9,000 for phase one and $10,000 for phase
two.
• Money Manager, Safekeeping Service, and annual actuary report fees are all set by contracts approved by the
trustees and are not included in this administrative budget.
• Reimbursement to the General Fund and the Central Insurance Fund is for the cost of oversight of the plan and
is recognized as revenue to the General Fund and Central Insurance Fund. Reimbursements have been
updated to more accurately reflect costs. This will bring the reimbursements to $80,448. Of this number,
$24,288 is Finance, $ 13,980 is payroll, and $41,180 is Human Resources. The reimbursements will be
$20,630 to the Central Insurance Fund and $59,818 to the General Fund, which is determined by where the
costs are originally charged. The cost of medical exams will be charged directly to the pension Plan and will
no longer be a reimbursement to the General Fund.
Reviewed by: Originating Dept: Costs
Legal N/A Info Srvc N/A Finance Total $243,728
S. Moskun
Budget --WA- Public Works N/A User Dept. M Funding Source:
Purchasing N/A DCM/ACM Finance Current FY $0 CIP
Risk Mgmt N/A Other Attachments OP
Expenditure Worksheet Other Pension
Submitted by:
City Manager O None
Appropriation Code: 646-07410-5xxx00-585-000
Printed on recycled paper Rev. 2/98
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