06-17-2002Agenda/Pension
6-17-02
. I
ACTION AGENDA
Board of Trustees of the Employees' Pension Fund
June 17, 2002 - 9:00 a.m.
1. Call to Order - 9:11 a.m.
2. Approval of Minutes: 05/13/02 - Approved
3. Request for acceptance into membership: Delaney Mulholland & Joanne Bunton -
Approved
4. Regular Pension(s) to be granted: Frank Hill, III, Jorge Carrasquillo & Michael Gust -
Approved
5. Accept the Actuary's Report for the Employees' Pension Plan for the plan year
beginning 1/1 /02 -Approved
6. Adopt Resolution 02-01 of the Pension Trustees authorizing registration of Metro-
Goldwyn-Mayer Inc. stock in electronic form, correcting scrivener's errors that were
present in Resolution 02-10. - Approved
7. Verdell Powell, widow of James Powell, Public Services Department, be granted a
death benefit under Section 2.397 of the Employees' Pension Plan as approved by the
Pension Advisory Committee - Approved
8. Other Business: - None
9. Adjourn - 9:29 a.m.
Meeting Date: (o-t7-6a- 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: May 9, 2002
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 IFTE's as of this date to
1717.75 of 1834.7 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. & Deat./Div. Hire Date Data
Delaney Mulholland, Gas Technician (/Gas 4/29/02 4/29/02
Joanne Bunton, Library Assistant/Library 4/23/01 4/29/02
originally hired as permanent-part-time; promoted to full-time and pension eligible as of 4/29/02
Arc& " 4 4 PL
Pensio viso mitt alr
UL&
Trustees of the
o Final Agenda Item #
rEEmployees' Pension Plan 6/17/02
Agenda Cover Meeting Date:
Memorandum
SUBJECT/RECOMMENDATION:
Frank Hill III, Fire Department; Jorge Carrasquillo, Police Department; and Michael Gust, Public Works
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 some.
SUMMARY:
Frank Hill III, Fire District Chief, Fire Department, was employed by the City on October 10, 1977, and
his pension service credit is effective on that date. His pension will be effective May 1, 2002.
Based on an average salary of approximately $55,536 per year over the past five years, the formula
for computing regular pensions, and Mr. Hill's selection of the 100% Joint & Survivor Annuity, this
pension will approximate $36,847 annually.
Jorge Carrasquillo, Police Officer, Police Department, was employed by the Cliy on June 23, 1982,
and his pension service credit is effective on that date. His pension will be effective July 1, 2002.
Based on an average salary of approximately $55,769 per year over the past five years, the formula
for computing regular pensions, and Mr. Carrasquillo's selection of the 100% Joint & Survivor Annuity,
this pension will approximate $30,134 annually.,
Michael Gust, Traffic Operations Engineer, Public Works Department, was employed by the City on
April 21, 1980, and his pension service credit is effective on May 12, 1977, His pension will be
effective July 1, 2002.
Based on an average salary of approximately $50,965 per year over the past five years, the formula
for computing regular pensions, and Mr. Gust's selection of the Joint & Survivor Annuity, this pension
will approximate $31,098 annually.
Reviewed by: Originating Dept: Costs
Legal NA Info Tech NA Debbie Ford/Human Total
Resources
Budget NA Public Works NA User Dept. Funding Source:
Purchosin NA DCM/ACM CMI'd Current Fiscal Year
g Improvement
Risk NA Other NA Attachments ope{atng
Mg
mt
other
Appropriation Code:
Submitted by: p None
City Manager
Printed on recvcied oaDer Rev.
2198
Regular Pensions
Page 2
June 17, 2002
These pensions were approved by the Pension Advisory Committee on May 9, 2002. 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 District Chief and Police Officer as meeting the hazardous
duty criteria. Mr. Hill and Mr. Carrasquillo qualify 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 thirty years of credited
service, or has reached age 65 and completed ten years of credited service. Mr. Gust
qualifies under the age 55 and twenty years of service criteria.
Employee's Pension Plan 5
We •:_ession Item
d Trustee's
99K'1iEP?Agenda Covet' Fina:.?yenda Item
Memorandum Meeting Dare: 6/17102
SUBJECT/RECOMMENDATION: Accept the Actuary's Report for the Employees' Pension Plan
for the plan year beginning 1/ 1 /02,
0 and that the appropriate officials be authorized to execute some.
SUMMARY:
• The 1 / 1 /02 actuarial report for the Employees' Pension Plan indicates that a 3% City
contribution is required ($1,766,058), This is an increase from the 2001 valuation, which
required no City contribution. 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 $4,125,071).
• The minimum City contribution was affected by the following factors:
• Changes in actuarial assumptions (this reduced the actuarial required contribution
from 4.5% to 3%);
• Actuarial investment return of 7.4% in comparison to an assumed rate of 7% for plan
year 2001 (2000 actuarial investment return was 12.42%);
• Actual salary increases of 5.9% in comparison to an assumed rate of 5% for plan
year 2001 (2000 actual salary increases were 5.8%);
• Amortization of the plans initial unfunded liability was reduced due to the final
partial year payment towards this liability: and
• Actual expenses for the plan year were $239,578 more than expected.
• The difference between the ordinance required contribution of $4,125,071 and the
actuarial determined contribution of $1,766,058 will increase the existing credit balance,
which is currently $21,360,525. This credit balance can be used to pay additional
actuarial required City contribution above the ordinance required 7%.
Reviewed by: Originating Dept: 1_,M Costs
Legal N/A Info Srvc N/A Finance M. Simmons Total 0
Budget Public Works N/A User Dept. Funding Source:
Purchasing /A DCM/ACM N/A Human Resources Current 0 cl
FY
Risk Mgmt N/A Other Attachments OP
(i.,) 1/ 1 /02 Actuary Report Other
Submitted by: ? None
City Manager A ro nation Code:
Rev. 2/98
• The Plan uses a phase-in approach of prior asset gains (losses) through.a rolling five-year
average used to "smooth" investment performance. The market value basis
performance for the last five years (1997, 1998, 1999, 2000, and 2001, respectively) has
been 17.49%, 16.74%, 18.61%, (3.43)%, and (5.16)%. As a result of the last 2 years poor
investment market performance, the actuarial value of the assets of the plan exceeds
the market value by almost $50 million. This deficit will be included in the actuarial value
and will gradually increase the funding requirements. This is expected to result in the City
required contributions exceeding the current 7% required in the next 4 to 6 years, even
after taking advantage of the credit balance.
• 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 to
137% at 1 /1 /02, primarily due to the poor plan investment performance for calendar
years 2000 and 2001. The plan experienced a negative 3.43% investment return in 2000
and a negative 5.16% in 2001 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.
2
ACTUARY'S REPORT FOR THE
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
As of January 1, 2002
To determine annual contribution
For the Plan Year: 01/01/02 -12/31/02
To be paid in the Fiscal year: 10/01/02 - 09/30/03
DRAFT
May 7, 2002
City of Clearwater
P.O. Box 4748
Clearwater, FL 33758-4748
Ladies and Gentlemen:
This report presents the results of the January 1, 2002 actuarial valuation of the City of Clearwater Employees'
Pension Plan. It has been prepared primarily to present to management the contribution requirements for 2002
and also the current status of funding of accumulated plan benefits. Section IV of this report includes a
presentation of the information required by the Government Accounting Standards Board (GASB) Statements
No. 25 and 27.
Our calculations were based on financial data and employee data furnished by the City of Clearwater.
The valuation was based upon generally accepted actuarial methods, and we performed such tests as we
considered necessary to assure the accuracy of the results. To our knowledge there are no benefits or expenses
to be provided by the plan for which a liability or current cost was not established. We certify that the
amounts presented in the accompanying report have been appropriately determined according to the actuarial
assumptions stated herein.
Statement by Enrolled Actuary
This actuarial valuation and/or cost determination was prepared and completed by me or under my direct
supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the results are
complete and accurate, and in my opinion, the techniques and assumptions used are reasonable and meet the
requirements and intent of Part VII, Chapter 112, Florida Statutes. There is no benefit or expense to the
provided by the plan or paid from the plan's assets for which liabilities or current costs have not been
established or otherwise taken into account in the valuation. All known events or trends which may require a
material increase in plan costs or required contribution rates have been taken into account in the valuation.
Respectfully submitted,
Stephen M. Metz
Associate of the Society of Actuaries DRAF
Enrolled Actuary Number 99-4342
Mark E. Knecht
Associate of the Society of Actuaries
Enrolled Actuary Number 99-5471
CONTENTS
SECTION I
SECTION II
SECTION III
SECTION IV
SECTION V
SECTION VI
SECTION VII
SUMMARY
FUNDING
ASSETS
ACCOUNTING
CENSUS DATA
ASSUMPTIONS AND METHODS
SUMMARY OF PLAN PROVISIONS
Pages
1- 7
8-12
13 - 16
17- 18
19-23
24 - 26
27 - 28
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION I - SUMMARY
A. Actuary's Comments
This report presents the highlights of the January 1, 2002 actuarial valuation prepared to determine the
contribution requirements for the 2002-2003 fiscal year. Since the last actuarial valuation of the plan
on January 1, 2001, there have been no changes in the plan provisions or the actuarial cost method.
The actuarial assumptions were changed in several respects. For a detailed description of the plan
provisions, please see Section VII and for a detailed description of the actuarial assumptions and
methods, please see Section VI of this report. The changes in the actuarial assumptions are
summarized below:
• The investment return was increased from 7.0% to 7.5%,
• The salary scale was increased from 5.0% to 6.0%,
• Employee turnover rates were revised for males and female employees and separate rates were
adopted for hazardous duty employees,
• The mortality table was changed from the 1983 Group Annuity Mortality Table to the 1994
Group Annuity Reserving Table, and
• The retirement age assumption was changed from 100% retirement at first eligibility for
unreduced benefits to a table of decrements at different ages.
The minimum required City Contribution pursuant to Florida Statutes for the 2002 plan year is
$1,766,058 (excluding the credit balance of $21,360,525) compared to $0 for 2001. Prior to the
changes in actuarial assumptions the minimum for 2002 was $2,641,788. Although State law does not
require any contributions for this fiscal year, the City ordinance establishing the Plan requires the City
to contribute at least 7% of payroll. The minimum required contribution was affected by the following
factors:
• Changes in the actuarial assumptions,
• An actuarial investment return of 7.40% in comparison to an assumed rate of 7.0% (for the 2001
plan year),
• Actual salary increases of 5.9% in comparison to an assumed rate of 5.0•/. (for the 2001 plan year),
• Amortization of the plan's initial unfunded liability was reduced due to the final partial year
payment towards this liability, and
• Actual expenses for the year were $239,578 more than expected.
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION I - SUMMARY (Continued)
A. Actuary's Comments, (continued)
The plan's credit balance is currently equal to $21,360,525, providing a cushion against future
contributions. On the negative side, however, the actuarial value of assets of the plan exceeds the
market value by almost $50 million. Over the next four years this deficit will be included in the
actuarial value and will gradually increase the funding requirements.
The funded status of the plan decreased compared to the prior year, primarily due to less than expected
returns on the market value of assets. The ratio of assets at market value to the actuarial present value
of accumulated plan benefits. decreased from 148% at January 1; 2001 to 137% at January 1, 2002.
B. Contribution Requirements for the Plan Year Ending December 31, 2002
Minimum Required Employer Contribution
Florida Statutes
7% of Payroll
$ 1,766,058
$ 4,125,071
The employer contribution is assumed to be made uniformly during the first two quarters of the fiscal
year beginning on October 1, 2002. Differences in the investment return due to contributions actually
being made at any other time will be recognized as an actuarial gain or loss in the following valuation.
The minimum required contribution represents a funding level which will satisfy the minimum funding
requirements under Part VII, Chapter 112, Florida Statutes. Please refer to Section VI and VII of the
report for a summary of the actuarial assumptions and plan provisions, respectively.
DRAFT
2.
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION I - SUMMARY (continued)
C. Comparative Summary of Principal Valuation Results
Actuarial Valuation Prepared as of. Jan. 1, 2002 Jan. 1, 2002 Jan. 1, 2001
After Before
Assumption Assumption
Changes Changes
(a) Participant Data
Number Included
Active Members
Retirees and Beneficiaries
Terminated Vested Participants
Annual Payroll of Actives
Annualized Benefits
Retirees and Beneficiaries
Terminated Vested Participants
1,592
566
47
$58,929,582
S 11,813,227
S 882,207
1,592
566
47
$58,918,790
S 11,813,227
S 882,207
1,538
533
40
S 54,864,584
(b) Actuarial Reserves
Market Value
Actuarial Value
$442,042,923 $442,042,923
$491,859,015 $491,859,015
S 10,504,915
S 881,304
$470,346,592
$461,724,610
(c) Liabilities
Present Value of Expected Benefits:
Active Participants:
Retirement Benefits. 5306,539,097 5331,150,655 $303,155,800
Termination Benefits $26,668,857 $16,757,605 S 16,862,795
Disability Benefits $15,394,022 $14,407,970 5 14,257,361
Death Benefits $3,543,058 $4,103,602 S 4,215,584
Refund of Employee Contributions 52,064,718 51,983,947 S 2,042,267
Total Active
Terminated Vested Participants
$354,209,752 5368,403,779 $340,533,807
$9,264,408 $8,644,737 S .8,189,098
Retirees and Beneficiaries
Total Present Value of Expected Benefits
Liabilities Due and Unpaid
$150,289,355 $155,468,752 $135,310,662
SS 12,763,515 5532,517,268 $484,033,567
$ 456,150 S 456,150 5 414,047
3
"RXF-T
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION I - SUMMARY (continued)
C. Comparative Summary of Principal Valuation Results, (continued)
Actuarial Valuation Prepared as of: Jan. 1, 2002 Jan.], 2002 Jan. 1, 2001
After Before
Assumption Assumption
Changes Changes
(c) Liabilities (continued)
Unfunded Actuarial Accrued Liability
Frozen Initial Liab. (FIL)
Supplemental FIL
Supplemental FIL
Supplemental FIL
Supplemental FIL
Supplemental FIL
Supplemental FIL
Asset Valuation Method
Change
Plan Amendment
Plan Amendment
Assumption Changes
Total
- 1/ 1 n9 $ 258,509 $ 258,509 S 1,034,155
- 1/in9 1,041,436 1,041,436 1,177,254
- I / I /81 190,434 190,434 207,380
- 1/1/82 (2,418,887) (2,418,887) (2,601,213)
- 1/1/87 1,115,015 1,115,015 1,156,483
- 1 / 1/88 1,274,163 1,274,163 1,316,864
- 1/1/89 1,713,426 1,713,426 1,765,351
- 1/1194 3,319,783 3,319,783 3,383,094
- I/l/96
- 1/1/00
-1/l/02
(d) Funding Account Credit Balance
Prior Year Amount
Prior Year.
Required Employer Contributions
Employer Contributions Made
Interest on Credit Balance
Total
(e) Actuarial Present Value of Accrued
Benefits
Changes During Prior Year.
Value from Prior Year
Benefits Paid
Interest, Aging and Benefits Accrued
Change in Assumptions
Change in Plan Provisions
Net Change
13,923,090
51,762,005
(30,846,502)
S 41,332,472
S 15,156,006
0
5,143,599
1,060,920
S21,30,525
S 322,794,259
S 317,663,113
S(11,816,392)
39,571,449
(22,623,911)
0
5,131,146
13,923,090
51,762,005
0
$ 72,178,974
$ 15,156,006
0
5,143,599
1,060,920
S 21,360,525
S 345,418,170
$317,663,113
S(11.816,392)
39,571,449
0
0
27,755,057
14,146,758
52,361,472
0
S 73,947,598
S 12,442,498
(1,722,874)
3,565,407
870,975
S 15,156,006
S 317,663,113
$303,443,955
S(10,651,850)
24,871,008
0'
0
14,219,158
Value at Current Year S 322,794,259 .$ 345,418,170 S 317,663,113
4
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION I -SUMMARY (continued)
C. Comparative Summary of Principal Valuation Results, (continued)
Actuarial Valuation Prepared as of. Jan. 1, 2002 Jan. 1, 2002 Jan. 1, 2001
After Before
Assumption Assumption
Changes Changes
(f) Pension Cost for Year
Normal Cost $100,180 S(1,272,646) S(4,526,328)
Amortization of Unfunded Frozen
Initial Liability 3,758,486 5,956,564 6,490,613
Administrative Expenses 2,270,968 2,270,968, 2,031,390
Shortfall for Expenses in Prior Year 239,578 239,578 357,820
Interest Adjustment 123,213 172,827 (3,337)
Total Required Contribution 56,492,425 $7,367,291 $4,350,158
As a Percentage of Payroll 11.00/0 12.5% 7.90/.
Anticipated Employee Contributions $4,714,367 $4,713,503 $4,389,167
As a Percentage of Payroll 8.00/0 8.00/0 8.00/0
Anticipated State Contributions 5 12,000 $ 12,000 S 12,000
As a Percentage of Payroll 0.0% 0.00/0
City Required Contribution 51,766,058 $2,641,788 $ 0
As a Percentage of Payroll 3.0% 4.5% 0.00/0
(g) Prior Year Actual Contributions
made by
State 5 12,279 S 12,279 S 23,649
Employees 4,905,521 4,905,521 4,749,550
City 5,143,599 5,143,599 3,565,407
Total 510,061,399 $10,061,399 $8,338,606
(h) Gains and Losses N/A N/A N/A
(i) Other Present Values
Present Value of Future Salaries
At attained age $552,303,111 $470,763,126 5442,071,900
Present Value of Future Employee
Contributions
At attained age 544,184,249 $37,661,050 $35,365,763
5 DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION I -SUMMARY (continued)
C. Comparative Summary of Principal Valuation Results, (continued)
Actuarial Valuation Prepared as of: Jan. 1, 2002 Jan. 1, 2002 Jan. 1, 2001
After Before
Assumption Assumption
Changes Changes
(i) Other Present Values (cont.)
Present Value of Future Normal Costs S(4,567,447) $(15,660,196) S(36,482,635)
6) Comparison of Actual and Assumed
Salary Increases Investment Return
Year Ended Actual Assumed Actual Assumed
Market Value Actuarial Value
12/31/86 7.4% 5.0% 13.21% N/A 7.0%
12/31/87 5.9% 5.0% 10.78% N/A 7.0%
12/31/88 9.1% 5.0010 9.12% N/A 7.0%
12/31/89 8.7% 5.00/a 20.84% N/A 7.0%
12/31/90 53% 5.00/0 6.21% N/A 7.0%
12/31/91 6.1% 5.00A 28.52% N/A 7.0%
12/31/92 6.85/o 5.0010 6.49% N/A 7.0%
12/31 /93 Lrlo 5.0% 9.290/9 7.42% 7.06X9
12/31/94 4.4`/9 5.00/9 0.89% 6.28% 7.06/9
12/31/95 6.40% 5.00/0 23.36% 9.14% 7.0%
12/31/96 6.7% 5.0% 14.80% 11.54% 7.0%
12/31/97 5.6% 5.0% 17.490/9 13.74% 7.0%
12/31/98 7.4% 5.0% 16.74% 15.28% 7.0%
12/31/99 4.r/o 5.09A 18.61% 17.96% 7.0%
12/31/00 5.8'/0 5.00/6 (3.43%) 12.42% 7.0%
12/31/01 5.91/o 5.0% (5.16%) 7.40% 7.0%
12/31/02 6.0% 7.5%
6
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION II - FUNDING
A. Development of the Unfunded Frozen Actuarial Accrued Liability
1. Unfunded Frozen Actuarial Accrued Liability
as of January 1, 2001 S 73,947,598
Interest to December 31, 2001 S 5,176,332
2. Employer Normal Cost* for Year with interest
to December 31, 2001
3. Required Employer Contributions for Period
4. UFAAL Before Assumption Changes
5. Increase/(Decrease) Due to Assumption Changes
6. Unfunded Frozen Actuarial Accrued Liability
as of December 31, 2001
* Includes Expenses and Adjustments
S 79,123,930
S (6,995,965)
$ (51,009)
S 72,178,974
$(30,846,502)
S 41,332,472
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION II - FUNDING (continued)
B. Development of Normal Cost
The Normal Cost is the portion of the cost of projected benefits which is allocated to the current year by the
actuarial cost method. The Normal Cost for the plan years beginning January 1, 2002 and January 1, 2001 are
determined as follows:
Total Projected Actuarial Liability: Jan. 1, 2002 Jan. 1, 2002 Jan. 1, 2001
After Before
Assumption Assumption
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 $354,209,752 $368,403,779 $340,533,807
• Terminated vested participants 8,264,408 8,644,737 8,189,098
• Retired and disable participants 150,289,355 155,468,752 135,310,662
• Total Participants $512,763,515 532,517,268 $484,033,567
Credit Balance: Employer contributions from
prior years reserved for future use. S 21,360,525 S 21,360,525 S 15,156,006
Fund: The actuarial value of fund assets as of the
beginning of the plan year. $491,859,015 $491,859,015 $461,724,610
Excess of Total Projected Actuarial Liability
Over the Fund Minus the Credit Balance: The
portion of the projected total actuarial liability to be
funded in the future. 542,265,025 $62,018,778 S37,464,%3
This portion is divided into two components:
a. Unfunded Frozen Actuarial Accrued Liability
b. Present value of future service liability (funded
over the expected future service years of current
participants)
Present Value of Future Covered Payroll
I
$41,332,472 $ 72,178,974 $ 73,947,598
$932,553 $(10,160,196) $(36,482,635)
$552,303,111 $470,763,126 $442,071,900
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION II - FUNDING (continued)
B. Development of Normal Cost, (continued)
Jan. 1, 2002 Jan. 1, 2002 Jan. 1, 2001
After Before
Assumption Assumption
Changes Changes
Normal Cost Rate: The ratio of the present value
of future service liability to the Present Value of
Future Covered Payroll. 0.17% (2.16%) (8.25%)
Annual Covered Payroll: The reported payroll for
plan participants who have not attained the assumed
retirement age. $58,929,582 $58,918,790 $ 54,864,584
Normal Cosh The annual cost as of the beginning
of the plan year to fund the future service liability
over the expected future years of service of the
current participants. $100,180 S(1,272,646) $(4,526,328)
DRAFT
9
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION II -FUNDING (continued)
C. Schedule of Amortization Payments
Initial Jan. 1, 2002 Annual
Date Initial Amortization Unamortized Amorization
Established Reason Amount Period (Years) Amount Payment
1/1/79' Frozen Initial
Liability (FIL) S 9,726,419 24.5 $ 258,509 S 258,509
1/1/79 Supplemental
FIL 2,707,962 30.0 1,041,436 182,906
1/1/81 Supplemental
FIL 390,421 30.0 190,434 27,771
1 /l /82 Supplemental
FIL (4,521,985) 30.0 (2,418,887) (327,812)
1/1/87 Supplemental
FIL 1,519,142 30.0 1,115,015 117,504
1/1/88 Supplemental
FIL 1,673,738 30.0 1,274,163 129,658
1/1/89 Supplemental
FIL 2,177,772 30.0 1,713,426 168,952
1/1/94 Asset Valuation
Method Change 3,724,296 30.0 3,319,783 290,865
I/l/96 Plan Amendment 15,063,842 30.0 13,923,090 1,179,254
1/l/00 Plan Amendment 52,921,724 30.0 51,762,005 4,160,471
1/1/02 Assumption (30,846,502) 30.0 (30,846,502) (2,429,592
Changes
Total Charges $74,597,861 $ 6,515,890
Total Credits (33,265,389) (2,757,404)
Total 541332,472 S 3,758.486
• Established July 1, 1963 and being amortized over a forty year period beginning on that date.
10 DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION II -FUNDING (continued)
D. Anticipated Amortization Schedule
Shown below is the anticipated amortization schedule for the Unfunded Frozen Actuarial Accrued Liability
taking into account the plan's funding policy.
Anticipated Amortization Schedule
Unfunded Frozen
Date Actuarial Accrued Liability
2002 $41,332,472
2003 540,392,035
2004 539,381,065
2005 $38,294,273
2031 S 0
On July 1, 1963, the Unfunded Frozen Actuarial Accrued Liability was established equal to the difference
between the retirement plan's accrued liability, determined under the Entry Age Normal Funding Method and
the actuarial value of plan assets. According to the plan's funding policy, the.initial liability is to be amortized
by a series of level payments over a forty-year period. Subsequent changes in the level of the Frozen Actuarial
Accrued Liability due to plan amendments or changes in actuarial assumptions are to be amortized on a
straight-line basis over a period of thirty years. By contributing more than the stated funding policy, the
amortization of the Unfunded Frozen Actuarial Accrued Liability can be accelerated.
t t DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION III - ASSETS
Comparative Balance Sheet
As of December 31, 2001
Market Value Market Value
ASSETS 12/31/01 12/31/00
Cash S 2,844,922 S 3,724,496
Money Market Accounts 23,109,838 17,377,392
International Equity Securities 369401,038 0
Domestic Corporate Equity Securities 218,945,242 288,233,539
Domestic Bonds 158,759,426 159,418,866
Total Investments S 440,060,466 S 468,744,293
Receivables:
Interest - pooled cash 34,449 (2,041)
Employer Contributions 2,404,158 1,604,340
Total Assets S 442,499,073 S 470,346,592
LIABILITIES AND ACTUARIAL RESERVES
Liabilities:
Accounts Payable S 456,150 S 414,047
Total Liabilities S 456,150 $ 414,047
Actuarial Reserves:
Accumulated Member Contributions 38,390,720 36,779,275
Balance of Actuarial Reserves 403,652,203 433,153,270
Total Actuarial Reserves S 442,042,923 $469,932,545
TOTAL LIABILITIES AND ACTUARIAL RESERVES S 442,499,073 S 470,346,592
DRAFT
12
i1
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION III -ASSETS (continued)
Schedule of Changes in Actuarial Reserves
For the Plan Year Ended December 31, 2001
Market Value
Revenues:
Employee Contributions $4,905,521
Employer Contributions 5,143,599
State Contributions 12,279
$10,061,399
Earnings on Investments:
Interest $11,632,977
Dividends 1,243,106
Realized Net Gains on Securities Transactions (22,742,692)
S(9,866,609)
Unrealized Appreciation (Depreciation)
on Investments S(14,411,099)
Expenses:
Benefits Paid $11,244,186
Refunds of Contributions 572,206
Professional Fees 2,270,968
Other Expenses 0
$14,087,360
Net Change in Actuarial Reserves $(28,303,669)
Actuarial Reserves at Beginning of Plan Year $470,346,592
Actuarial Reserves at End of Plan Year . 5442,042,923
DRAFT
13
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION III -ASSETS (continued)
Development of Actuarial Value of Assets
1. Actuarial Reserves at Beginning of Plan Year $470,346,592
2. Time Weighted Employee Contributions 2,452,761
(.5 x $4,905,521)
3. Time Weighted Employer Contributions 321,475
(.5 x .125 x $5,143,599)
4. Time Weighted State Contributions 6,140
(.5 x $12,279)
5. Time Weighted Benefit Payments 5,415,846
(11/24) x ($11,816,392)
6. Time Weighted Expenses 1,135,494
(.5 x $2,270,968)
7. Time Weighted Value of Actuarial Reserves $466,575,638
(Items 1 +2+3+4-5 -6)
8. Expected Asset Return
532,660,295
(Item 7 x 0.07)
9. Actual Asset Return (24,277,708)
10. Difference of Expected Return over Actual Return $56,938,003
11. Actuarial Reserves at End of Plan Year 442,042,923
12. Expected Actuarial Reserves at End of Plan Year $498,980,926
(items 10 + 11)
13.. Difference Between Actual and Expected Asset Return $ (56,938,003)
(items 11-12)
DRAFT
14
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION III -ASSETS (continued)
Development of Actuarial Value of Assets (continued)
Date
Established Initial
Amount Annual Amount
Recognized Amount Excluded
Prior Valuation Amount Excluded
Current Valuation
01/01/98 S 32,148,671 S 6,429,734 S(6,429,735) S 0
01 /01 /99 $ 34,935,904 $ 6,987,181 S(13,974,361) S(6,987,180)
01/01/00 S 48,325,707 S 9,665,141 S(28,995,425) $ (19,330,284)
01/01/01 S(50,971,924) $(10,194,385) S 40,777,539 S 30,583,154
01/01/02 S(56,938,003) S(11,387,601) $ 0 S 45,550,402
Total S 49,816,092
Actuarial Reserves $442,042,923
Actuarial Value of Assets $491,859,015
DRAFT
is
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION IV - ACCOUNTING
A. Plan Description and Contribution Information
Membership of the plan consisted of the following at January 1, 2001, the date of the latest actuarial valuation:
Retirees and beneficiaries receiving benefits 533
Terminated plan members entitled to but not yet receiving benefits 40
Active plan members 1,538
Total
Number of participating employers 1
1
DRAFT
16
t
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION IV -ACCOUNTING (continued)
B. Required Supplementary Information Scheduling of Funding Progress
Actuarial Actuarial UAAL as a
Actuarial Value of Accrued Liability Unfunded Percentage
Valuation Assets (AAL) AAL Funded Covered of Covered
Date (a) Frozen Entry Age (UAAL) Ratio Payroll Payroll
(b) (b-a) (a/b) (c) ((b-a)/ c)
01/01/91 $141,865,764 $152,118,075 $10,252,311 93% $34,532,753 30%
01/01/92 $184,746,269 $194,550,126 $9,803,857 95% $36,626,332 27%
01/01/93 $198,315,690 $207,639,701 $9,324,011 96% $38,731,039 24%
01/01/94 $213,014,474 $225,549,346 $12,534,872 94% $38,710,974 32%
01/01/95 $225,482,726 $237,428,796 $11,946,070 95% $41,371,332 29%
01/01/96 $244,744,488 $271,124,381 $26,379,893 90% $44,208,964 60%
01/01/97 $272,346,200 $297,892,502 $25,546,302 91%i $44,955,348 57%
01/01/98 $308,596,133 $333,250,492 $24,654,359 93% $47,281,198 52%
01/01/99 $354,088,751 $377,788,731 $23,699,980 94% $49,666,523 48%
01/01/00 $414,826,422 $490,426,940 $75,600,518 85% $50,937,403 148%
01/01/01 $461,724,610 $535,672,208 $73,947,598 86% $54,864,584 135%
01/01/02 $491,859,015 $533,191,487 $41,332,472 92% $58,929,582 70%
The information presented in the required supplementary schedules was determined as part of the actuarial
valuations at the dates indicated. Additional information as of the latest actuarial valuation fo llows:
Valuation date 01/01/01
Actuarial cost method Frozen En try Age
Amortization method Level Dollar Closed
Remaining amortization periods Various
Asset valuation method Five Year Average •
Actuarial assumptions:
Investment rate of return 7.00/6
Projected salary increases 5.00/0
Include merit increases 2.00/a
Cost-of-living adjustments 3.0%
• Effective January 1, 1994, the asset valuation method was changed from market value to a five
year average method.
I
17 DRAFT
I
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION V - CENSUS DATA
A. Reconciliation of Em ployee Data
A summary of changes in the employee data from January 1, 2001 through January 1, 2002 follows.
Employees who do not partici pate in the plan are not included.
Retired
Terminated Participants
Active Vested And
Employees Employees Beneficiaries Total
Participants included in the
January 1, 2001 valuation 1,538 40 533 2,111
Nonvested terminations (7) (7)
Data Revisions I I
Vested terminations (12) 12 0
Deaths without eligible
beneficiary (3) (3)
Retirements (30) (6) 36 0
Cash settlements (59) (59)
Rehires 1 I
New participants 161 161
Participants included in the
January 1, 2002 valuation 1,592 47 566 2,205
Active Participants:
Fully vested 793
Partially vested 0
Non-vested 799
Total 1,592
a DRAFT.
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION V -CENSUS DATA (continued)
B. Ape - Service Distribution of Active Participants as of January
Years of Service 1, 2002
Attained 0-4 5-9 10 - 14 15 - 19 20 - 24 25+ Total
Age No. No. No. No. No. No. No.
Under 25 52 2 0 0 0 0 54
25 to 29 104 31 3 0 0 0 138
30 to 34 109 57 35 0 0 0 201
35 to 39 86 69 75 29 2 0 261
40 to 44 56 52 63 83 21 0 275
45 to 49 51 39 58 51 71 28 298
50 to 54 26 26 39 37 46 43 217
55 to 59 7 14 24 19 14 13 91
60 to 64 6 12 6 10 5 6 45
65+ 0 0 5 2 3 2 12
Total 497 302 308 231 162 92 1592
Active Participant Statistics
Average Age 42.41 years
Average Service 10.82 years
19
DR AFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION V -CENSUS DATA (continued)
C. AQe - Service Distribution of Active Hazardous Dut y Particip ants as of Janua ry 1, 2002
Years of Service
Attained 0-4 5-9 10 - 14 15- 19 20 - 24 25+ Total
Age No. No. No. No. No. No. No.
Under 25 8 1 0 0 0 0 9
25 to 29 49 12 0 0 0 0 61
30 to 34 50 28 21 0 0 0 99
35 to 39 11 30 35 12 0 0 88
40 to 44 3 4 16 33 6 0 62
45 to 49 1 2 8 12 32 7 62
50 to 54 0 1 3 5 13 14 36
55 to 59 0 0 1 3 2 7 13
60 to 64 0 0 0 0 0 2 2
65+ 0 0 0 0 0 0 0
Total 122 78 84 65 53 30 432
Active Participant Statistics
Average Age 38.63 years
Average Service 11.66 years
20
DRAFT
t,
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION V - CENSUS DATA (continued)
D. Age - Service Distribution of Active Non-Hazardous Duty Particip ants as of January 1 , 2002
Years of Service
Attained 0-4 5-9 10 -14 15 - 19 20 - 24 25+ Total
Age No. No. No. No. No. No. No.
Under 25 44 1 0 0 0 0 45
25 to 29 55 19 3 0 0 0 77
30 to 34 59 29 14 0 0 0 102
35 to 39 75 39 40 17 2 0 173
40 to 44 53 48 47 50 15 0 213
45 to 49 50 37 50 39 39 21 236
50 to 54 26 25 36 32 33 29 181
55 to 59 7 14 23 16 12 6 78
60 to 64 6 12 6 10 5 4 43
65+ 0 0 5 2 3 2 12
Total 375 224 224 166 109 62 1160
Active Participant Statistics
Average Age 43.81 years
Average Service 10.51 years
DRAFT
1.
21
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION V- CENSUS DATA (continued)
E. Inactive Participant Count and Benefits as of January 1, 2002
Number of Annual
Participants Benefit
Terminated Vested Participants
Retired Participants and Beneficiaries
22
47 S 882,207
566 $11,813,227
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION VI - ASSUMPTIONS AND METHODS
A. Actuarial Methods
Investment Yield: The investment rate of earnings is assumed to be 7.5% per annum.
Mortality: Mortality was based on the 1994 Group Annuity Reserving Table.
Withdrawal: Pre-retirement withdrawals are assumed to occur in accordance with the following table:
Rate of Withdrawal
General General Hazardous
Age Male Female Py?
25 15% 15% 5%
30 10% 15% 3%
35 5% 10% 3%
40 5% 10% 2%
45 5% 5% 2%
50 5% 5% 0%
55 0% 0% 0%
Disability: Pre-retirement incidence of disability is assumed to occur in accordance with a standard scale
of moderate disability rates (Class 1, 1952 Inter-Company). Rates for females are assumed to be double that
for males. Sample rates for males are shown below:
Age Incidence of Disability
20 .17%
25 .17%
30 .17%
35 .18%
40 .20%
45 .23%
50 .29%
55 .39%
60 .59°/.
65 1.04%
70 1.74%
Service vs. Non-service: All pre-retirement deaths are assumed to be non-service related. All incidence
of disability is assumed to be service related.
Salary Scale: Future salaries are assumed to increase at the rate of 6% per year, 3% due to cost-of-
living, and 3% due to merit increases.
23
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION VI - ASSUMPTIONS AND METHODS (continued)
A. Actuarial Assumptions, (continued)
Retirement Rates: Retirement is assumed to occur in accordance with the following table:
General Hazardous
Age Employces Dy
<45 0% 20%
45 0% 20%
46 0% 20%
47 0% 20%
48 0% 20%
49 0% 20%
50 20% 50%
51 20% 50%
52 25% 75%
53 25% 75%
54 25% 75%
55 50% 100%
56 50% 100%
57 50% 100'/•
58 50% 100%
59 50% 100%
60+ 100% 100%
Timing of Contribution: The employer contribution is assumed to be made uniformly during the first
two quarters of the fiscal year beginning on the October 1 following the valuation date.
Employees Covered: All participants as of the acdrarial valuation date.
Spouses: Eighty-five percent (8510K) of the active participants are assumed to be married (or have
dependents eligible for Survivor's Benefits). Female spouses are assumed to be five years younger than male
spouses.
State Contributions: Assumed to equal $12,000 per year.
Expenses: Expenses are assumed to equal last year's actual expenses.
Completeness of Assumption:All benefits and expenses to be provided by the Plan are recognized in the
valuation. All known events are taken into account; no current trends arc assumed to discontinue in the future.
i
t
2, DRAFT
{
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION VI - ASSUMPTIONS AND METHODS (continued)
B. Asset Valuation Method
The Actuarial Value of Assets is based on a five year moving average of assets valued at statement value.
The statement value reflects an amortized value for bonds and market value for equity investments. From the
statement value, actual and expected return on investments is derived. Any difference between the actual
return on investments for a given year and the expected return is spread over five years. After five years 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 ARe 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.
I
25
DRAFT
I
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 alter the intent or meaning of the
provisions contained in the contract and / or plan document.
Plan Year: January I to December 31.
Eli ibili : Any permanent employee shall participate in the plan immediately.
Current Employee Contributions: 8.0% of wages and salaries actually paid to a participant.
Average Monthly Compensation: The total Compensation received during the highest five years of
service of the last ten years divided by sixty.
Accrued Benefit: A monthly benefit equal to 2.75% of Average Monthly Compensation multiplied by
the number of years of service to date.
Retirement Benefit:
a. Elittibility (Normal Retirement Date):
• Non-Hazardous Duty: Completion of at least 20 years of service and the attainment of age 55,
completion of at least 10 years of service and the attainment of age 65 or the completion of 30
years of service.
• Hazardous Duty: Completion of 20 years of service or completion of at least 10 years of service
and the attainment of age 55.
b. Normal Retirement Benefit: The participant's Accrued Benefit payable as of his actual retirement
date on or after his Normal Retirement Date . No adjustment applies for deferred retirement beyond
his Normal Retirement Date.
C. Normal Form of Benefit: A monthly annuity for the life of the participant. After the participant's
death, 100•/. of the Normal Retirement Benefit shall be paid as a Survivor Annuity to the spouse for
five years. After five years, such Survivor Annuity is reduced to 5011. of the original amount. The
Survivor Annuity ceases upon death or remarriage of the spouse. 120 monthly payments are
guaranteed in any case for police and firefighters.
d. Early Retirement Benefit: For police and firefighters, an early retirement benefit is payable to
those participants who have completed 10 years of service and the attainment of age 50. The benefit is
equal to the retirement benefit calculated as of date of early retirement, reduced by 3% per year for
each year below age 55.
26
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION VII - SUMMARY OF PLAN PROVISIONS (continued)
e. Cost of Living Increase: All participants commencing annuity benefit payments shall be entitled to a
1.5% increase in their benefit amount each year.
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.
b. Disability Benefit: The participant's Accrued Benefit, payable immediately. If the disability is service
connected, the Disability Benefit must be at least 66.67% of Average Monthly compensation.
c. Normal Form of Benefit: A monthly annuity for the life of the participant. After the participant's death, a
Survivor Annuity is provided as described under the Normal Form of Benefit for retirement benefits. 120
monthly payments are guaranteed in any case for police and firefighters.
d. Cost of Living Increase: All participants commencing annuity benefit payments shall be entitled to a
1.5% increase in their benefit amount each year.
Death:
a. Eligibility: Any actively employed participant.
b. Death Benefit: The participant's Accrued Benefit, payable immediately. If death is service
connected, the Death Benefit must be at least 66.67% of Average Monthly Compensation.
c. Form of Benefit: A monthly Survivor Annuity as described under the Normal Form of Benefit.
d. Cost of Living Increase: All participants commencing annuity benefit payments shall be entitled to a
1.5% increase in their benefit amount each year.
Vested Termination:
a. Eligibility: Completion of 10 years of service
b. Termination Benefits: The participant's Accrued Benefit payable as of his Normal Retirement Date,
provided Employee Contributions are not refunded.
27
DRAFT
CITY OF CLEARWATER EMPLOYEES' PENSION PLAN
SECTION VII - SUMMARY OF PLAN PROVISIONS
(continued)
C. Form of Payment: A monthly annuity for the life of the participant. After the participant's death, a Survivor
Annuity is provided as described under the Normal Form of Benefit, beginning at the latter of the participant's
Normal Retirement Date or date of death.
d. Cost of Living Increase: All participants commencing annuity benefit payments shall be entitled to a 1.5%
increase in their benefit amount each year.
Non-Vested Termination:
a. Eli ibili : Any actively-employed participant.
b. Benefit: Refund of Employee Contributions with 5% interest.
c. Form of Benefit: Lump sum
28
DRAFT
SE,AIMa
a
99??TE1?.``\o?
Employee Pension Plan Trustee
Agenda Cover Memorandum
Worksession Item #: _6Q
Final Agenda Item #
Meeting Date: , v a-
SUBJECT/RECOMMENDATION:
Adopt Pension Trustees' Resolution 02-01, correcting scrivener's errors that were present in Resolution
02-10, which was passed and adopted on April 29, 2002.
9 and that the appropriate officials be authorized to execute same.
SUMMARY:
• On May 23, 20001 Denver Investment Advisors participated in a Stock Purchase Program for Metro-
Goldwyn-Mayer, Inc. for 24,700 shares. The shares were delivered in physical form to our safekeeping
custodian in the name of the City of Clearwater. These shares should have been delivered in a Depository
Trust Corporation electronic format.
• On April 29, 2002, the Pension Trustees adopted Resolution 02-10 to authorize the conversion of the
shares to electronic form.
There were scrivener's errors in the Resolution, including the resolution number and title.
Reviewed by: Originating Dept: j?L Costs
Legal Info Srvc N/A Legal Total N/A .
Budget N/A Public Works N/A User Dept. Funding Source:
Purchasing N/A DCM/ACM Finance Current FY N/A Cl
Risk Mgmt N/A Other Attachments OP
Pension Trustees Res 02-01 other
Submitted by: Stock Power
City Manager None
Appropriation Code:
Printed nn recvcled naner Rev. 2/9a
RESOLUTION NO. 02-01
A RESOLUTION OF THE TRUSTEES OF THE EMPLOYEES'
PENSION PLAN OF THE CITY OF CLEARWATER, FLORIDA,
AUTHORIZING THE REGISTRATION OF METRO-GOLDWYN-
MAYER, INC. STOCK IN ELECTRONIC FORM AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Clearwater, Florida, has determined it is in the best interest of
the pension plan that all securities be registered in electronic format,
NOW, THEREFORE, BE IT ADOPTED BY THE TRUSTEES OF THE
EMPLOYEES' PENSION PLAN OF THE CITY OF CLEARWATER, FLORIDA, AS
FOLLOWS:
SECTION 1. The Trustees of the Employees' Pension Plan of the City of
Clearwater hereby authorizes the Finance Director Margaret L. Simmons to undertake
all action necessary to convert the Metro-Goldwyn-Mayer, Inc. stock from physical to
electronic form.
SECTION 2. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this day of , 2002.
Brian J. Aungst, Chairman
Approved as to form: Attest:
Pame a K. Akin, City Attorney Cynthia E. Goudeau, City Clerk
Pension Trustees Resolution No. 02-01
SEAL+. ?.
a
99h'?IT
Trustees of the
Employees' Pension Plan
Agenda Cover
Memorandum
Final Agenda Item # 7
Meeting Date: 6/17/02
SUBJECT/RECOMMENDATION:
Verdell Powell, widow of James Powell, Public Services Department, be granted a death benefit
under Section 2.397 of the Employees' Pension Plan as approved by the Pension Advisory
Committee.
and that the appropriate officials be authorized to execute some,
SUMMARY:
James Powell, Public Services Technician II, Public Services Department, was employed by the City
on September 2, 1980, and his pension service credit was effective on that date, Mr. Powell passed
away on March 21, 2002. Verdell Powell, widow of James Powell, applied for death benefits on
April 9, 2002. Mr. and Mrs. Powell were legally married on October 24,1972, thereby entitling her to
death benefits under provisions of the Employees' Pension Plan,
Mrs. Powell's request for death benefits was approved by the Pension Advisory Committee on May 9,
2001. The amount of Mrs. Powell's pension will be computed by the Finance Department at a later
date. This pension will be effective April 1, 2002.
Based on an average salary of approximately $34,082 per year over the past five years, this pension
will approximate $18,360 annually.
Reviewed by: Originating Dept: Costs
Legal NA Info Tech NA Human Resources Total
Budget NA Public Works NA User Dept. Funding Source:
Purchasin NA DCM/ACM captd Current Fiscal Year
g Improvement
Risk NA Other NA Attachments ooerohn9
Mg
Mt
Appropriation Code:
Submitted by: 0 None
City Manager
Printed on recvcled oaoer Rev.
2/98