09-16-2002AGENDA
PENSION
TRUSTEES
09/ 16/02
ACTION AGENDA
Board of Trustees of the Employees' Pension Fund
September 16, 2002 - 9:00 a.m.
1. Call to Order - 9:13 a.m.
2. Approval of Minutes: 07/15/02 - Approved
3. Request for acceptance into membership: Jason Long, Stephanie Sansom, Jayshree
Mistry, Matthew Roach, Mark Mariano, Steven Williams, Michael Lopez, Brian Swartz, Jada
McCree, Merlene Taggart, Corinne Bello, Eric Matherly, Karen Helm, Jose Correa, Shannon
Fondaw, Corinne Wells, Thomas Coffey, Fernando Rodiguez-Lamberty, George Shaub,
Jon Russell, James Robinson, Stephen Holwerda, Dennis Aponte, Michael Schrantz, Jarvis
Sheeler, David Clark, John Hunsucker, Victor Roberts, Karen Sowada, Cornelius Legters,
Scott Reid, Mark Richardson, Leah Provost, Elizabeth Westerfield, Carol Larkins, David
Bruneau, Aleksander Gregoire, and Matthew Beery. - Approved
4. Regular Pension(s) to be granted: Nancy Burgarella, Geraldine Jones, Peter Clare and
Mary McCann - Approved
5. Pension(s) to be vested: Cindi Herald and Margaret Schultz - Approved
6. Ratify and confirm an increase in the amount authorized to be spent with Christiansen &
Dehner for legal and related services by $20,000 for a not to exceed cost of $100,400 for
the one-year period ending September 30, 2002, approve extending the contract to
Christiansen & Dehner on a month-to-month basis starting October 1, 2002 for up to
$25,000, and provide direction to staff for acquiring legal services for the plan for FY
2002/03. - Approved
7. Ratify and confirm an increase in the amount authorized to be spent with Gray Harris for
legal and related services by $20,000 for a not exceed cost of $25,000. - Approved
8. Approve changes to the City of Clearwater Employees' Pension Plan relating to the
Economic Growth and Tax Relief Reconciliation Act of 2001 and recommend the City
Commission pass Ordinance 7033-02 on second reading. - Approved
9. Approve the recommended administrative expenditures for fiscal year 2002-03 totaling
$147,500 for the City of Clearwater Employees' Pension Plan - Approved
10. Other Business - Attorney Dehner said new legislation addressing several issues is
being prepared. He also requested the Investment Consultant provide an opinion on how
pension records are handled. Staff will bring forward applicable policies regarding
these matters.
11. Adjourn - 9:30 a.m.
Meeting Date: 9116 D 1'
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 FTE's as of this date to
1720.02 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. & Dept./Div. Hire Date Date
Jason Long, Field Service Representative/Customer Service 3/25/02 3/25/02
Stephanie Sansom, Senior AccountanUEngineering 3/25/02 3/25/02
Jayshree Mistry, Utilities Chemist/Public Utilities 3/25/02 3/25/02
Matthew Roach, Public Utilities Technician I/Public Utilities 3/11/02 3/11/02
Mark Mariano, Planner/Planning & Development Services 4/15/02 4/15/02
Steven Williams, Custodial Worker/Library 4/8/02 4/8/02
Michael Lopez, Development Review Technician I/Planning & Dev. Ser. 4/15/02 4/15/02
ension iso C Chair
Cract?
Meeting Date: q// &/0
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 11, 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 FTE's as of this date to
1720.02 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
mombership.
Pension Elig.
Name, Job. Class. & Dept./Div. Hire Date Date
Brian Swartz, Firefighter/Fire 6/3/02 6/3/02
Jada McCree, Accounting Clerk/Police 6/3/02 6/3/02
Merlene Taggart, Police Information Technician I/Police 6/3/02 6/3/02
Corinne Bello, Development Review Tech. I/Planning & Dev. Services 6/3/02 6/3/02
Eric Matherly, Parks Service Technician I/Parks & Recreation 6/3/02 6/3/02
Karen Helm, Custodial Worker/Parks & Recreation 6/3/02 6/3/02
Jose Correa, Parks Service Technician I/Parks & Recreation 6/3/02 6/3/02
Shannon Fondaw, Field Service Representative/Customer Service 6/17/02 6/17/02
Corinne Wells, Industrial Pretreatment Technician/Public Utilities 6/17/02 6/17/02
Thomas Coffey, Gas Technician I/Gas 6/17/02 6/17/02
Fernando Rodriguez-Lamberty, Senior Auditor/Internal Audit 6/17/02 6/17/02
George Shaub, Industrial Pretreatment Technician/Public Utilities 6/17/02 6/17/02
Jon Russell, Gas Technician I/Gas 6/17/02 6/17/02
James Robinson, Parks Service Technician I/Parks & Recreation 6/17/02 6/17102
Stephen Holwerda, Senior Marine Life Guard/Marine & Aviation 6/1/02 6/1/02
Dennis Aponte, Maintenance Worker II/Police 7/1/02 7/1/02
Michael Schrantz, Senior Electrician/Parks & Recreation 7/1/02 7/1/02
Pension Advis C mm' a air
Meeting Date: 06D I --
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: August 2, 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 FTE's as of this date to
1720.02 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, & Dept./Div. Hire Date Date
Jarvis Sheeler, Parks Service Technician I/Parks & Recreation 4/15/02 7/1/02
David Clark, Senior Electrician/Parks & Recreation 7/1/02 7/1/02
John Hunsucker, Senior Marine Lifeguard/Madne & Aviation 6/29/02 6/29/02
Victor Roberts, Field Service Representative/Customer Service 7/1/02 7/1/02
Karen Sowada, Senior Recreation Supervisor/Parks & Recreation 7/1/02 7/1/02
Cornelius Legters, Senior Plans Reviewer/Planning & Development Ser. 6/29/02 6/29/02 •'
Scott Reid, Police Recruit/Police 7/15/02 7/15/02
Mark Richardson, Senior Recreation Supervisor/Parks & Recreation 7/15/02 7/15/02
Leah Provost, Police Communications Operator Trainee/Police 7/15/02 7/15/02
Elizabeth Westerfield, Accounting Clerk/Gas 7/15/02 7/15/02
Carol Larkins, Police Communications Operator Trainee/Police 7/15/02 7/15/02
David Bruneau, Police Recruit/Police 7/15/02 7/15/02
Aleksander Gregoire, Police Recruit/Police 7/15/02 7/15/02
Matthew Beery, Police Recruit/Police 7/15/02 7/15/02
originally hired on 4/15/02 as temporary; status changed to permanent and pension eligible as of 7/1/02
•' originally hired on 5/21/02 as temporary; status changed to permanent and pension eligible as of 6/29/02
VP'sRon Iso C itt hair
. ti?S?M4 l?
' Trustees of the
Final Agenda Item #
99w.?rEa?`°? Employees' Pension Plan 9/16/02
Agenda Cover Meeting Date:
Memorandum
SUBJECT/RECOMMENDATION:
Nancy Burgarella, Police Department; Geraldine Jones, Public Utilities Department; Peter Clare,
Engineering Department; and Mary McCann, Customer Service 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:
Nancy Burgarella, Police Officer, Police Department, was employed by the City on October 18,
1971, and her pension service credit is effective on April 18, 1972. Her pension will be effective
September 1, 2002.
Based on an average salary of approximately $49,636 per year over the past five years, the formula
for computing regular pensions, and Ms. Burgarella's selection of the 100% Joint & Survivor Annuity,
this pension will approximate $40,888 annually.
Geraldine Jones, Public Service Supervisor II, Public Utilities Department, was employed by the City
on April 14, 1980, and her pension service credit is effective on that date. Her pension will be
effective February 1, 2003.
Based on an average salary of approximately $40,262 per year over the past five years, the formula
for computing regular pensions, and Ms. Jones' selection of the 100% Joint & Survivor Annuity, this
pension will approximate $24,935 annually.
Peter Clare, Parking Technician, Engineering Department, was employed by the City on
September 13, 1976, and his pension service credit is effective on March 19, 1977. His pension will
be effective September 1, 2002.
Reviewed by: Originating Dept. Costs
Legal NA Info Tech NA Debbie Ford/Human Total
Resources
Budget NA Public NA User Dept. Funding Source:
Works
Purchasing NA DCM/ captlal Current Fiscal Year
Impvoverrx-ant
ACM
Risk Mgmt NA Other NA Attachments Operating
Other
Appropriation Code:
Submitted by: ? None
City Manager
Printed on recvcled oaoer Rev.
2/98
Regular Pensions
Page 2
September 16, 2002
Based on an average salary of approximately $34,484 per year over the past five years, the
formula for computing regular pensions, and Mr, Clare's selection of the 10-Year Certain & Life
Annuity, this pension will approximate $27,603 annually.
Mary McCann, Customer Service Representative, Customer Service Department, was
employed by the City on October 25, 1979, and her pension service credit is effective on
May 29, 1980. Her pension will be effective November 1, 2002.
Based on an average salary of approximately $30,508 per year over the past five years, the
formula for computing regular pensions, and Ms. McCann's selection of the 100% Joint &
Survivor Annuity, this pension will approximate $6742 annually.
These pensions were approved by the Pension Advisory Committee on August 2, 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 Police Officer 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 thirty years of
credited service, or has reached age 65 and completed ten years of credited service.
Ms. Burgarella qualifies under the hazardous duty criteria, Ms. Jones and Mr, Clare qualify
under the age 55 and twenty years of service criteria. Ms. McCann qualifies under the age 65
and ten years of service criteria.
Trustees of the
=anal Agenda Item # - 16
99?•+ria`?`°? Employees' Pension Plan
Meeting Date:
Agenda Cover 9/16/02
Memorandum
SUBJECT/RECOMMENDATION:
Cindi Herald, Solid Waste/General Services Department, and Margaret Schultz, Public Utilities
Department, be allowed to vest their pensions 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 some.
SUMMARY:
Cindi Herald, Administrative Analyst, Solid Waste/General Services Department, was employed by
the City on June 2, 1988. Ms. Herald terminated from City employment on September 6, 2002.
Margaret Schultz, Staff Assistant, Public Utilities Department, was employed by the City on July 13,
1992. Ms. Schultz terminated from City employment on July 26, 2002.
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. Herald would have completed
twenty years of service and reached age 55 on June 2, 2008. Her pension will be effective July 1,
2008. Ms. Schultz would have completed ten years of service and reached age 65 on July 14, 2003.
Her pension will be effective August 1, 2003. These pensions were approved by the Pension Advisory
Committee on August 2, 2002.
/ivy
Reviewed by: Originating Dept: Costs
Legal NA Info Tech NA Debbie Ford/Human Total
Resources
Budget NA Public NA User Dept. Funding Source:
Works
Purchasing NA DCM/ cap'a Current Fiscal Year
ACM tmtxovem,gnt
Risk Mgmt NA Other NA Attachments oPe{?'?a
Other
Appropriation Code:
Submitted by: ? None
City Manager
Printed on recycled paper Rev.
2/98
Trustees of the
Final Agenda Item #
99h'AiEaE??? Employees' Pension Plan Meeting Dote: 9/16/02
Agenda Cover
Memorandum
SUBJECT/RECOMMENDATION:
Ratify and confirm an increase in the amount authorized to be spent with Christiansen & Dehner for legal and
related services by S20,000 for a not to exceed cost of $100,400 for the one-year period ending September
30, 2002, approve extending the contract to Christiansen and Dehner on a month-to-month basis starting
October 1, 2002 for up to S25,000, and provide direction to staff for acquiring legal services for the plan for
FY02/03,
R] and that the appropriate officials be authorized to execute some.
SUMMARY:
On 10/15/01, the trustees approved $30,000 for Christiansen and Dehner for legal and related services for
the period 10/1/01 - 9/30/02.
On 11/13/01, the trustees approved an additional $5,400 to Christiansen and Dehner for attendance at
investment committee meetings. To date, $2,681.77 has been spent.
On 1/22/02, the trustees approved an additional $5,000 to Christiansen and Dehner to modify existing money
manager contracts. There have been no expenditures on this item to date.
On 3/18/02, the trustees approved an additional $40,000 for Christiansen and Dehner for general pension
legal services for a new total for general pension legal services of $70,000. Through June 30, 2002,
$62,421.34 has been spent. Leaving a balance of 7,578.66 for the 3 remaining months of this year (July -
Sept 2002). Staff feeis that an additional $20,000 will be needed to complete the year.
The Employee Pension Plan has been using Christiansen and Dehner since May 1999 (over 3 years). Staff
would like direction regarding legal services for the pension plan for fiscal year 2002/03. Options include:
1. Renew the contract with Christiansen and Dehner for the period 10/1/02 - 9/30/03
2. Extend the contract with Christiansen and Dehner on a month to month basis starting 10/1/02 and go
out for an RFP for legal services for the Pension Plan
Reviewed by: Originating Dept: Costs $45,000
Legal Info Tech NA Debbie Ford/Human Total
Resources
Budget Public Works User Dept. Funding Source: $20,000
Purchasing ACM captor
Current Fiscal Year
Improvemont
Risk Mgmt NA Other NA Attachments oporating
01hor X Pension Plan
Appropriation Code:646-07410-530100-585-000
Submitted by:
? N
Cit Manager
one
Rev. 2/98
The legal fees paid from the $70,000 authorization for FY 2001/02 to date are as follows:
Month Amount
Aug-01 567.00
Sep-01 5,210.71
Oct-01 6,843.99
Nov-01 4,500.89
Dec-01 1,902.74
Jan-02 4,387.88
Feb-02 2,756.91
Mar-02 11,138.94
Apr-02 7,443.01
May-02 8,915.89
Jun-02 8,753.38
Jul-02
Aug-02
Sep-02
62,421.34
`fsk a
,,
rEPF`°
Trustees of the
Employees' Pension Plan
Agenda Cover
Memorandum
Final Agenda Item #
Meeting Date: 9/16/02
SUBJECT/RECOMMENDATION:
Ratify and confirm an increase in the amount authorized to be spent with Gray Harris for legal and related
services by $20,000 for a not to exceed cost of $25,000,
Z and that the appropriate officials be authorized to execute some.
SUMMARY:
• On November 13, 2001, the Trustees approved an expenditure in the amount of $5,000 to the law firm of
Gray Harris for legal services related to the pension plan.
• These legal services related to the analysis of Social Security obligations under an opt-in provision and a
DROP (Deferred Retirement Option Plan). The City has a contract with the law firm of Gray Harris to
perform legal services not related to pension issues.
• Unfortunately, the costs for these services exceeded our previous estimate, and an additional sum is
needed. We currently have invoices totaling $18,655.50 with some additional expenses anticipated.
Reviewed by,
p Originating Dept: Costs $25,000
Legal
l,/ Info Tech NA Cynthia Bender/Human
/10129
Total
?Iifv -
Resources CDLD
Budget Public Works NA User Dept. Funding Source: $25,000
Purchasing ACM Vit
? Capital Current Fiscal Year
Imp(ov
ImprOVement
Risk Mgmt NA Other NA Attachments operating
Other X Pension Plan
Appropriation Code:"6-07410-530100.585-000
Submitted by: •
Cit Manager
? None
Rev. 2/98
\1?~
V `\II Q
99?•IT
SUBJECT/RECOMMENDATION:
Trustees of the
Employees' Pension Plan
Agenda Cover
Memorandum
Originating Dept:
Human Resources Je`/c
Approve changes to the City of Clearwater Employees' Pension Plan relating to the Economic Growth and Tay
Relief Reconciliation Act of 2001 and recommend the City Commission pass Ordinance 7033-02 on second reading.
and that the appropriate officials be authorized to execute some.
SUMMARY:
The City of Clearwater Employees' Pension Plan must be amended to comply with the Economic Growth
and Tax Relief Reconciliation Act of 2001. Amendments to the plan that are necessary due to changes in
state or federal law do not need to be passed by referendum.
The following changes to the Plan are recommended:
1. Increase the OBRA '93 annual compensation limit from $150,000.00 to $200,000.00;
2. Increase the maximum amount of annual retirement income payable under the Plan from
$90,000.00 to $160,000.00;
3. Change the rollover provisions for distributions made after January 1, 2002, to allow employees to
roll over any portion of their pension contributions that is includible in their gross income provided
the rollover is made to an individual retirement account or a retirement annuity described in
internal Revenue Code Section 408(b) or to a qualified defined contribution plan described in
Internal Revenue Code Sections 401(a) or 403(a) that agrees to separately account for the
amounts that are Includible (post-tax amount) and the amounts that are not includible (pre-tax
amount).
4. Include as an "eligible retirement plan" any eligible deferred compensation plan described in
Internal Revenue Code Section 457(b) that agrees to separately account for the amounts
transferred from the Pension Plan and an annuity contract described in Internal Revenue Code
Section 403(b). This provision will also apply to rollover distributions to the surviving spouse.
On August 2, 2002, the Pension Advisory Committee recommended that the Trustees approve the
ordinance and forward It to the City Commission for action.
Reviewed by:
Legal Info Tech NA
Budget NA Public NA
Works
Purchasing NA DCM/
ACM
Risk Mgmt NA Other NA
Submitted by: 7W
AAAA ow A 0,
Citv Manaaer ??
Printr3ri nn recycled aaeer
User Dept.
V"
Attachments
Ordinance 7033-02
0 None
Final Agenda Item #
7
Meeting Date: 9116101
Costs
Funding Source:
Total
caps°I Current Fiscal Year
Improvement
Qporohny
nrher
Appropriation Code:
Rev.
2/99
ORDINANCE NO. 7033-02
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 2.393, DEFLYITIONS, BY AMENDING
THE DEFINITION OF "COMPENSATION"; AMENDING
SECTION 2.397, BENEFITS UNDER THE PLAN; AMENDING
SECTION 2.398, TIME AND MANNER OF BENEFIT
PAYMENTS; PROVIDING FOR SEVERABILITY OF
PROVISIONS; REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH AND PROVIDING AN
EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
CLEARWATER, FLORIDA:
SECTION 1: That 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 2.393, Definitions, by amending the definition of "Compensation", subsection
2.a., to read as follows:
(2) a. In addition to other applicable limitations set forth in the plan, and
notwithstanding any other provision of the plan to the contrary, for plan years
beginning on or after January 1, 1996, the annual compensation of each
employee taken into account under the plan shall not exceed the OBRA '93
annual compensation limit. The OBRA '93 annual compensation limit is
$! 59;96f3 69 S200.000.00, as adjusted by the commissioner for increases in
the cost of living in accordance with Section 401(a)(17)(B) of the Internal
Revenue Code. The cost-of-living adjustment in effect for a calendar year
applies to any period, not exceeding 12 months, over which compensation is
determined (determination period) beginning in such calendar year. If a
determination period consists of fewer than 12 months, the OBRA '93 annual
compensation limit will be multiplied by a fraction, the numerator of which
is the number of months in the determination period, and the denominator of
which is 12.
SECTION 2: That Chapter 2, Administration; Article V, Employee Benefits; Division 3,
Employees' Pension Plan of the Code of Ordinances of the City or Clearwater is hereby amended
by amending Section 2.397. Benefits under the plan, subsection (g)(1), Basic limitation, and
subsection (g)(3)a., to read as follows:
(g)(1) Basic Limitation.
Subject to the adjustments hereinafter set forth, the maximum amount of annual
retirement income payable with respect to a participant under this plan shall not ex-
ceed 590;909:90 $160,000.00.
For purposes of applying the above limitation, benefits payable in any form other
than a straight life annuity with no ancillary benefits shall be adjusted, as provided
by Treasury Regulations, so that such benefits are the Actuarial Equivalent of a
straight life annuity. For purposes of this Section, the following benefits shall not be
taken into account:
a. Any ancillary benefit which is not directly related to retirement
income benefits;
b. Any other benefit not required under §415(b)(2) of the code and
regulations thereunder to be taken into account for purposes of the
limitation of §415(b)(1) of the code.
(g)(3) a. In the event the participant's .retirement benefits become payable
before age 62, the $96,066.00 $160.000.00 limitation prescribed by
this section shall be reduced in accordance with regulations issued by
the Secretary of the Treasury pursuant to the provisions of §415(b) of
the code, but not less than $75,000.00, if the benefit begins at or after
age 55. In the event the participant's retirement benefit becomes
payable before age 55, the $75,000.00 limitation shall be reduced
from age 55 in accordance with regulations issued by the Secretary of
the Treasury pursuant to the provisions of §415(b) of the code. A
participant with at least fifteen (15) years of Credited Service may not
have the benefit reduced below $50,000.00.
SECTION 3: 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 (e), Direct rollovers,
to read as follows:
(e) Direct tantfers Qfeligible_ rollovers distributions.
(1) Rollover distributions This section applies to distributions made on or after January
1. 2002. Notwithstanding any provisions of the plan to the contrary that would
otherwise limit a distributee's (as defined below) election under this paragraph, a
distributee may elect, at the time and in the manner prescribed by the committee, to
have any portion of an eligible rollover distribution (as defined below) paid directly
to an eligible retirement plan (as defined below) specified by the distributee in a
direct rollover (as defined below).
(2) For purposes of this paragraph, the following terms shall have the following
meanings:
a. An "eligible rollover distribution" is any distribution of all or any portion of
the balance to the credit of the distributes, except that an eligible rollover
distribution does not include: any distribution that is one of a series of
substantially equal periodic payments (not less frequently than annually)
made for the life (or life expectancy) of the distributee or the joint lives (or
joint life expectancies) of the distributee and the distributee's designated
beneficiary, or for a specified period of ten years or more; any distribution to
the extent such distribution is required under Internal Revenue Code Section
401(a)(9), and the portion of any distribution that is not includable in gross
income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities). Any portion of any
rollover distribution if the distribution i made to an individual retirement
account described in Internal Revenue Code Section 4080). to an individual
retirement annuity described in Internal Revenue Code Section 408(b) or to
a qualified defined contribution plan described in Internal Revenue Code
Section 401(() or 403(x) that agrees to separately account for amount o
b. An "eligible retirement plan" is an individual retirement account described
in Code Section 408(a), an individual retirement annuity described in Internal
Revenue Code Section 408(b), an annuity plan described in Internal Revenue
Code Section 403(a), an eligible deferred compensation olan described in
employer described in Internal Revenue Code Section 457(e).(1).(A) and
which agrees to separately account for amounts transferred into such plan
from this plan, an annuity contract described in Internal Revenue Code
Section 403(b). or a qualified trust described in Internal Revenue Code
Section 401(a), that accepts the distributees eligible rollover distribution to
annuity. This definition hall apply in the
case of an eligible rollover distribution to the surviving?no, L?sP.
C. A "distributee" includes an employee or former employee. In addition, the
employee's or former employee's surviving spouse and the employee's or
former employee's spouse or former spouse who is the alternate payee under
a qualified domestic relations order, as defined in Internal Revenue Code
Section 414(p), are distributees with regard to the interest of the spouse or
former spouse.
d. A "direct rollover" is a payment by the plan to the eligible retirement plan
specified by the distributee.
SECTION 4: 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.
3
SECTION 5: This ordinance shall become effective upon adoption.
PASSED ON FIRST READING September 5, 2002
PASSED ON SECOND AND FINAL
READING AND ADOPTED
Brian Aungst
Mayor-Commissioner
Approved as to form: Attest:
r '? L
Pamela . Akin Cynthia E. Goudeau
City Attorney City Clerk
bm\cl car\gen\07-22.02.ord
4
Employees' Pension Trustee
Agenda Cover Memorandum
Worksession Item #:
Final Agenda Item #
Meeting Date: Cl- 07
SUBJECT/RECOMMENDATION:
Approve the recommended administrative expenditures for fiscal year 2002-03 totaling $147,500 for
the City of Clearwater Employees' Pension Plan,
Z and that the appropriate officials be authorized to execute same.
SUMMARY:
• The Employees' Pension plan does not have a legal requirement to have a budget. The Trustees must
approve all expenditures. The following are routine expenditures that staff is requesting approval for the
sake of efficiency.
• These expenditures involve routine and small dollar amounts.
• Medical Bills is for the medical services that the Pension Advisory Committee authorizes.
• Travel is for two trips. The first is for attendance for two people at the Callan training seminar and visit
Callan, the pension plan's performance measurement firm. Second is for training for two people with our
new custodian.
• 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.
• Money Manager, Safekeeping Service, and Pension Administrator fees are all set by contracts approved
by the trustees and are not included in this administrative budget.
• Reimbursement to the General Fund and Self Insurance fund is for the cost of oversight of the plan and is
recognized as revenue to the General Fund and Self Insurance Fund.
Medical Bills $6,000 Physicals 35,000
Travel Expenses 4,500 Training 1,000
Printing 750 Misc. 250
Reimbursement to General Fund
Reimbursement to the Self Insurance Fund
77,000
23,000
Reviewed by: Originating Dept: Costs
Legal N/A Info Srvc N/A A Finance
j ,,,y,?
" Total $147,500
r f I
sU
S. Moskun
Budget ? Public Works User Dept. Funding Source:
Purch N/A DCM/ACM Finance Current $0 GIP
FY
Risk Mgmt N/A Other Attachments OP
Other Pension
Submitted by:
P
31 ILK-
? None
Y
City Manager Approp riation Code: 646-07410-5xxx00-585-
Prlnted on recvcled oaner Rev.
2/98