03-17-2003AGENDA
PENSION
TRUSTEES
03/17/03
AGENDA
Board of Trustees of the Employees' Pension Fund
March 17, 2003 - 9:00 A.M.
1 - Call to Order
2 - Approval of Minutes: 02/18/03
3 - Request for acceptance into membership: James Purdy, Mirna Selva, Jason
Kinney, Sara DeBella, Brian Davis, Carol Anding, Stacy Keenan, Dawn Jenkins,
Andrew Rawlins, Robert Davis, Jr., Charles McAbee, Ann Galluccio, William
Bennett, Joseph Raffo, Michael Hayes, & Michael Roseto.
4 - Regular Pension(s) to be granted: Gertrude Devers, Richard Hodge, Roscoe
Dobson, Jr.,Fredrick Fricke, Melvin Acton, George Johnson, & John Urban.
5 - Approve the change in ownership of EPW Investment Management, Inc.
6 - Authorize staff to conduct a search for a "fixed income" style manager for the
Employees Pension Fund, authorize Callan & Associates to assist with the search
for a fee of $25,000, authorize the cost of the search, including staff travel of
approximately $4,000, to be paid from the pension fund.
7 - Other Business
8 - Adjourn
3.
Meeting Date:
3-i,7-v3
Approved by Trustees:
CITY OF CLEARWATER
EMPLOYEES' PENSION PLAN/
PENSION ADVISORY COMMITTEE
TO:
FROM:
SUBJECT:
DATE:
Pension Trustees
Pension Advisory Committee
Recommendation fc- Acceptance into Pension Plan
February 13, 2003
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
1744.01 of 1844.9 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
James Purdy, TV Production Specialist/Public Communications 12/30/02 12/30/02
Mima Selva, Customer Service Representative/Gas 1/13/03 1/13/03
Jason Kinney, Engineer I/Engineering 1/13/03 1/13/03
Sara DeBella, Human Resources Analyst/Human Resources 1/13/03 1/13/03
Brian Davis, Graphics Technician/Public Communications 1/13/03 1/13/03
Carol Anding, Wastewater Treatment Plant Operator Trainee/Public Utilities 1/13/03 1/13/03
Stacy Keenan, Staff Assistant/Gas 1/13/03 1/13/03
Dawn Jenkins, Recreation Supervisor I/Parks & Recreation 1/13/03 1/13/03
Andrew Rawlins, Parks Service Technician I/Parks & Recreation 1/13/03 1/13/03
Robert Days, Jr., Solid Waste Worker/Solid Waste 1/13/03 1/13/03
Charles McAbee, Solid Waste Worker/Solid Waste 11/12/02 1/13/03'
Ann Galluccio, Library Assistant/Library 1/27/03 1/27/03
William Bennett, Public Service Technician I/Public Services 1/27/03 1/27/03
Joseph Raffo, Public Utilities Technician I/Public Utilities 1/27/03 1/27/03
Michael Hayes, Solid Waste Worker/Solid Waste 1/27/03 1/27/03
Michael Roseto, Field Service Representative/Customer Service 1/27/03 1/27/03
'originally hired as temporary; changed to full-time and pension eligible as of 1/13/03
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Trustees of the
Employees' Pension Plan
Agenda Cover
Memorandum
Final Agenda Item " 9
Meeting Date: 3/17/03
SUBJECT/RECOMMENDATION:
Gertrude Devers, Development Services Department: Richard Hodge, Solid Waste/General Services
Department; Roscoe Dobson, Jr., Fire Department; Fredrick Fricke, Police Department: Melvin Acton,
Fire Department; George Johnson, Fire Department, and John Urban, Fire 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:
Gertrude Devers, Development Review Technician II, Development Services Department, was
employed by the City on June 21, 1971, and her pension service credit is effective on that date. Her
pension will be effective March 1, 2003,
Based on an average salary of approximately $35,668 per year over the past five years, the formula
for computing regular pensions, and Ms. Devers' selection of the 190% Joint & Survivor Annuity, this
pension will approximate $24,195 annually.
Richard Hodge, Solid Waste Supervisor II, Solid Waste/General Services Department, was employed
by the City on October 6, 1978, and his pension service credit is effective on May 30, 1979. His
pension will be effective June 1, 2003.
Based on an average salary of approximately $48,019 per year over the past five years, the formula
for computing regular pensions, and Mr. Hodge's selection of the Joint & Survivor Annuity, this
pension will approximate $31,692 annually.
Roscoe C. Dobson, Jr., Firefighter, 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 February 1,
2003.
Based on an average salary of approximately $50,481 per year over the past five years, the formula
for computing regular pensions, and Mr. Dobson's selection of the 100% Joint & Survivor Annuity, this
pension will approximate $42,088 annually.
Reviewed by: Originating Dept: Costs
Legal NA Info Tech NA Debbie Ford/Humane Total
Resources
Budget NA Public NA User Dept. Funding Source:
Works
Purchasing NA DCM/ copual Current Fiscal Year
ACM Improvement
Risk Mgmt NA Other NA Attachments °poratine
Other
Appropriation Code:
Submitted by: 0 None
City Manager
Printad nn ranvdad nanar Rev.
2/98
Regular Pensions
Page 2
March 17, 2003
Fredrick C. Fricke, Police Office, Police Department, was employed by the City on August 1,
1977, and his pension service credit is effective on that date. His pension will be effective
March 1, 2003.
Based on an average salary of approximately $55,314 per year over the past five years, the
formula for computing regular pensions, and Mr. Fricke's selection of the 10-year Certain & Life
Annuity, this pension will approximate $41,553 annually.
Melvin H. Acton, Fire Lieutenant, Fire Department, was employed by the City on August 27,
1973, and his pension service credit is effective on that date. His pension will be effective
February 1, 2003.
Based on an average salary of approximately $56,358 per year over the past five years, the
formula for computing regular pensions, and Mr. Acton's selection of the Life Annuity, this
pension will approximate $46,263 annually.
George W. Johnson, Firefighter, Fire Department, was employed by the City on May 8, 1974,
and his pension service credit is effective on that date. His pension will be effective
February 1, 2003.
Based on an average salary of approximately $47,991 per year over the past five years, the
formula for computing regular pensions, and Mr. Johnson's selection of the 100% Joint &
Survivor Annuity, this pension will approximate $37,479 annually.
John R. Urban, Firefighter, Fire Department, was employed by the City on January 11, 1982,
and his pension service credit is effective on that date. His pension will be effective March 1,
2003.
Based on an average salary of approximately $49,841 per year over the past five years, the
formula for computing regular pensions, and Mr. Urban's selection of the Joint & Survivor
Annuity, this pension will approximate $28,935 annually.
These pensions were approved by the Pension Advisory Committee on February 13, 2003.
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 thirty years of credited
service, or has reached age 65 and completed ten years of credited service. Section 2.393
also (p) provides for normal retirement eligibility when a participant has completed twenty
years of credited service in a type of employment described as "hazardous duty" and further
specifically defines service as a Fire Lieutenant, Police Officer, and Firefighter as meeting the
hazardous duty criteria. Ms. Devers and Mr. Hodge qualify under the age 55 and 20 years of
service criteria. Mr. Dobson, Mr. Fricke, Mr. Acton, Mr. Johnson, and Mr. Urban qualify under
the hazardous duty criteria.
r--'
Work Session Item #:
Employee's Pension Plan
Trustee's Final Agenda Item #
Agenda Cover Memorandum Meeting Date: -3 - 1 7- 0 3
SUBJECT/RECOMMENDATION:
Approve the change in ownership of EPW Investment Management, Inc.,
19 and that the appropriate officials be authorized to execute same.
SUMMARY:
• EPW Investment Management is a wholly owned subsidiary of United Financial Holding.
• United Financial Holdings is merging with Synovus Financial Corporation.
• Our contract with EPW Investment Management provides that we must approve the assignment of the
contract.
• EPW is a fixed income manager who manages a portfolio of Treasuries for the plan. EPW also
provides equity investment advice to the plan.
• For the year ending December 31, 2002 EPW was ranked in the top 9th percentile. For the last 5 years
they were ranked in the top 33rd percentile.
• There will be no changes at EPW Investment Management.
• The Pension Investment Advisory Committee recommends approval of the change.
Reviewed by: Originating Dept: Costs
Legal Info Srvc N/A Finance Total 0
S. Moskun
Budget N/A Public Works N/A User Dept.
Funding Source:
Purchasing
N/A DCM/ACM N/A Finance Current FY 0 Cl
Risk Mgmt N/A Other N/A Attachments OP
Ordinance Other
Submitted by:
City Manager O None
Appropriation Code:
N/A
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2198
,i,
Employee's Pension Plan
Trustee's
Agenda Cover Memorandum
Work Session Item #: G
Final Agenda Item #
Meeting Date: 3 / 7 - D 3
SUBJECT/RECOMMENDATION:
Authorize staff to conduct a search for a "fixed income" style manager for the Employees Pension
Fund, authorize Callan & Associates to assist with the search for a fee of $25,000, authorize the cost
of the search, including staff travel of approximately $4,000, to be paid from the pension fund,
® and that the appropriate officials be authorized to execute same.
SUMMARY:
• For the year ending December 31, 2002, the Employees Pension Plan had a rate of return of (8.75)%
V.S. the benchmark of (8.86)%.
• While the plan's return beat the customized benchmark last year, two of our three fixed income
managers (Vanderbilt Capital Advisors and Sirach Capital Advisors) performed near the bottom of their
peer group for the last two years.
• Vanderbilt Capital Advisors attributes their poor relative performance to their belief that the corporate
bond sector will out perform all other fixed income sectors. They believe that they were early and time
will prove them right. For the last two years Vanderbilt performed at the 90th and 96th percentile. (1 st
percentile is the best and 100th is the worst performers.)
• Sirach Capital Advisors has had some personnel problems. They have made changes however their
performance has not improved. For the last two years the performed at the 99th and 98th percentile.
• The plan's consultants are also recommending that we move some of the plan's assets from
Treasuries to other fixed income securities. It is their belief the US Treasuries have seen their run and
Treasuries will lag other fixed income sectors in performance.
• The Pension Investment Committee unanimously recommends an additional "fixed income" style
manager.
• The additional fixed income manager is the first step to reduce funding and/or terminate one or both of
the under performing managers.
Reviewed by:
Legal
Budget N/A
Purchasing N/A
Risk Mgmt N/A
Submitted by:
City Manager
0 None
OP
Other
Appropriation Code:
646-07410-547200-585-000
Info Srvc N/A
Public Works N/A
DCM/ACM N/A
Originating Dept: Costs
S. Moskun n ,Finance Total $4,000
User Dept. - Funding Source:
Finance Current FY S4,000 CI
Other N/A I Attachments
(1)
• Callan's fee for the search will be $25,000. This fee will be paid by directing investment trades through
a selected broker and will not be an additional direct expense of the pension plan.
• The Investment Committee will come back to the Trustees in late summer or early fall with the results
of the search for approval.
• The cost of committee member travel to investigate/research the top ranked firm(s) is estimated at
$4,000. The actual amount will be affected by the location of the investment manager(s) and the
number that needs to be researched.