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10/13/2008PENSION TRUSTEES AGENDA Location: Council Chambers - City Hall Date: 10/13/2008- 1:30 PM 1. Call to Order 2. Approval of Minutes 2.1 Approve the minutes of the September 15, 2008 Pension Trustee Meeting as submitted in written summation by the City Clerk. 1B Attachments 3. Pension Trustee Items 3.1 Employees listed below be accepted into membership in the City of Clearwater's Employee's Pension Plan as approved by the Pension Advisory Committee. 1B Attachments 3.2 Dennis Brown, Solid Waste/General Services Department, be granted a regular pension under Section(s) 2.393 and 2.397 of the Employees' Pension Plan as approved by the Pension Advisory Committee. 10 Attachments 4. Other Business 5. Adjourn Pension Trustees Agenda Council Chambers - City Hall Meeting Date: 10/ 13/2008 SUBJECT / RECOMMENDATION: Approve the minutes of the September 15, 2008 Pension Trustee Meeting as submitted in written summation by the City Clerk. SUMMARY: Review Approval: 1) Clerk Cover Memo Item # 1 Attachment number 1 Page 1 of 4 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES CITY OF CLEARWATER September 15, 2008 Present: Frank Hibbard Carlen Petersen n Doran e N. Cretekos 'bson nt: Will . Horne, II Jill rboard Rod Pa . Akin C Goudeau 0. Sullivan Chair Trustee Trustee Trustee Trustee City Manager Assistant City Manager Assistant City Manager City Attorney City Clerk Board Reporter e Chair calle?ng to or?ALat 1:36 p.m. at City Hall. ity for r are in agenda order although not necessan ed in that o 2 -Approval of Minutes Trustee Cretekos moved to al August 18, 2008, as recorded and su Trustee. The motion was duly secon of the P Trustees meeting of ummation e City Clerk to each 3 - Pension Trustee Items 3.1. Discuss the Klausner and Kaufman Benefit-Defined Contribution Issues. ions and efined In their August 2008 memorandum, Pensio rneys Klau aufman, P. reviewed retirement in the City and academic literatu compari d Benefit and Contribution plans. They summarized implications of moving efined Benefit Defined Contribution plan. They focused on advantages a antages of bo ache and set forth practical considerations and theoretical argume In their final a counsel believed maintenance of the current Defined Benefit system was the optimu of providing a meaningful retirement to City employees and represented the ctive tool to insure a stable, well-trained, dedicated workforce. In their Executive Summary, counsel reported while City benefits aliffilWetitive, they are not excessive when compared with the relevant marketplace. Each fea should be evaluated in the context of specific plan objective(s). While there is no single best plan for all Pension Trustees 2008-09-15 Item # 1 Attachment number 1 Page 2 of 4 employees or employers, counsel concluded maintenance of the current Defined Benefit retirement plan was the best alternative for the welfare of the City and employees. Counsel said abandonment or radical curtailment of the City's defined benefit retirement program would be directly contrary to W& employment practices. Pen a Defined E not a pa fundin 6.5°/ p Robert Klausner said taxpayers pay 28 cents on the dollar under e entire dollar under a Defined Contribution plan. Clearwater is Social If the plan were closed, plan obligations would shorten its alf. At the sa the City would have to replace the plan, plus contribute I Security while e es contribute 7%. A study on terminating Los Angeles' ed costs would doubl 4 years, with no savings realized for 24 years. Actuarial lost when retirees take out of the plan and no employees contribute. Mr. Klausner said the bi celing the plan would be ba Land stay here. Jurisdic I ant attrition. Under ndle investme e been rgain taxpayers receive is local government. He said mic planning. A Defined Benefit plan attracts people to t tried Defined Contribution plans have experienced Defined Benefit plan, people who know what they are rely well d efficiently manage the plan, which is a fair one. work short-term professionals, Clearwater's goal has Mr. Klausner said a Co I Wayeans Committee meeting will address local government concerns r IRS interes enefit packages. He will report on that meeting as well as rules p y the State Division of Retirement. Discussion en comments that VW s health is important and reducing employees wo lower pension costs. The cyclical of investments was noted as well as the City's minimum contributio,g any years. The City's actuary will provide with a Defined Contribution plan durir Name, Job Class, & Dept./Div annual re of i Vs Defined B EliM Date Kimberly Pierce, Police Com. Operator Trainee/Police /07/08 07/ Trustee Petersen moved to accept the listed employees into mem in the City of Clearwater's Employees' Pension Plan. The motion was duly seconded an ried unanimously. Pension Trustees 2008-09-15 Christopher Mears, Solid Waste Equip. Operator/Solid 07/07/08 Peter Pulfer, Solid Waste Equipment Operator/Solid Wa 07/07/08 8 Louis Cobb, Solid Waste Worker/Solid Waste 07/21/0 1/08 Todd Deerwester, Solid Waste Worker/Solid Waste 07/21/ /21/08 Maria Roldan, Customer Service Rep./Customer Service 07/0 07/02/08 Item # 1 Attachment number 1 Page 3 of 4 3.3. Dennis Olmstead, Public Service Technician I, Public Services Department; Thomas Cha linsk Senior Plans Examiner Development & Neighborhood Services Department; and Philip Jackson Poli icer Police Department, be ranted regular pensions under Section 2.393 and 2.397 lovees' Pension Plan as aDDroved by the Pension Advisorv Committee. D stead, rvices Technician I, Public Services Department ,was emplo ty on July C i 11, and his pension service credit is effective on that date. His ilSe 7b effective e r 1, 2008. Based on an average salary of approximately $ r yever the past fi rs, the formula for computing regular pensions, and Mr. d's selection of the Joint ivor Annuity, this pension will approximate $38,735 Ily. Thomas Chaplinsky, Se ns Examiner, Development & Neighborhood Department, employed by the City on 1974, and his pension service credit is effective on that His pension will be e ctober 1, 2008. Based on an average salary of ately $60,884 ver the t five years, the formula for computing regular pen selecti 100% Joint & Survivor Annuity, this pension will appro Ily. Philip Jackson, Police O ice De September 1, 1986, and his ervice credW, effective October 1, 2008. n an average sal the past five years, the or computing regu the 100% Joint & Su nuity, this pension will These pensions were approved b i 2008. Section 2.393 provides for nor age 55 and completed twenty years o d se service, or has reached age 65 and c ted ten y Pnt, was employed by the City on effective on that date. His pension will be of approximately $68,325 per year over and Mr. Jackson's selection of 40,809 annually. on Advisory ittee on August 14, ibility whe rticipant has reached provides for normal retirement eligibili n a participa'r credited service or has reached age 55 mpleted to employment described as "hazardous du meeting the hazardous duty criteria. Mr. OI age 55 criteria. Mr. Chaplinsky qualifies under the qualifies under the hazardous duty criteria. lFeted thirty years of vi ce. ecti t dited d a type service as cer as der the 2 an Trustee Doran moved that Dennis Olmstead, Public Se chn 4 - Other Business Services Department; Thomas Chaplinsky, Senior Plans Ex ever Neighborhood Services Department; and Philip Jackson, Po fficer, Pi granted regular pensions under Section(s) 2.393 and 2.397 of e Employ approved by the Pension Advisory Committee. The motion was duly seco unanimously. 5 - Adjourn Pension Trustees 2008-09-15 Item # 1 Attachment number 1 Page 4 of 4 Pension Trustees 2008-09-15 Item # 1 The meeting adjourned at 2:00 p.m. Pension Trustees Agenda Council Chambers - City Hall Meeting Date: 10/ 13/2008 SUBJECT / RECOMMENDATION: Employees listed below be accepted into membership in the City of Clearwater's Employee's Pension Plan as approved by the Pension Advisory Committee. SUMMARY: Pension Name, Job Classification, Department/Division Hire Date Elig Date Samuel Taylor, Solid Waste Worker/Solid Waste 8/4/08 8/4/08 Jane Sloan, Dev. Rev. Tech. I/Dev. & Neigh. Ser. 11/13/07 8/4/08 Kim Trempe, Cust. Service Rep./Customer Service 8/4/08 8/4/08 Kevin Poole, Solid Waste Equip. Oper./Solid Waste 8/18/08 8/18/08 Robert Tucker, Solid Waste Worker/Solid Waste 8/18/08 8/18/08 * originally hired 11/13/07 as temporary; transferred to permanent and pension eligible as of 8/4/08 Review Approval: 1) Clerk Cover Memo Item # 2 Pension Trustees Agenda Council Chambers - City Hall Meeting Date: 10/ 13/2008 SUBJECT / RECOMMENDATION: Dennis Brown, Solid Waste/General Services Department, be granted a regular pension under Section(s) 2.393 and 2.397 of the Employees' Pension Plan as approved by the Pension Advisory Committee. SUMMARY: Dennis Brown, Solid Waste Worker, Solid Waste/General Services Department, was employed by the City on August 20, 1980, and his pension service credit is effective on that date. His pension will be effective October 1, 2008. Based on an average salary of approximately $31,743 per year over the past five years, the formula for computing regular pensions, and Mr. Brown's selection of the 75% Joint & Survivor Annuity, this pension will approximate $24,678 annually. This pension was approved by the Pension Advisory Committee on September 11, 2008. Section 2.393 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. Brown qualifies under the 20 years of service and age 55 criteria. Review Approval: 1) Clerk Cover Memo Item # 3