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01/22/1985 (2) < J.' -'.' ~ ." ..'. , " " . ,~. .>' .' . ~." , ~ ~~ < ~ I,: .; ; ~n;{.~ffl:)t"N!;~,~;,,?,. :<'Y':'i:i"t ," '.' ,~ 1 I" .. , ~ , . .', ":1,""",' ......:. ',. , .,' ~ ~ c', .;. . ./'. .' ',; l..) . ':1 ~J ....: . . -: r:. <,~' ~:'~.. .. ,::~" ,.{ '~:::~:~~;:7,:'~~;~t;Ti} " , :>. ' .. <I' ~~ ; j; ~ , '. . ',) I, ;',. , ," ,0('. , 'I . ~ .' '.' \<, " .; . ('> : h..... c.' .. ,"L ,. i". c. , : . I... ,d'; ',,' " , . "., , , " '" ,~~, '.,\ ; ~ ..: ':,; I.. ~ ~:"~ ,:':.:.~. . " . ,J' I, ',. , ' ~ . \ , .' <," ,c.1 c',>1 {.o "', \.. ", '/ , ~. , .' 'I,," ..., ,1', \',. :.,l"l> ; .' ' : .' ., . \ . .. , " ,. J :, ,\' '.' '~r. 1 \":. 'o. . . " , , ,;.,'.~'~'~':-'~'(Vf"!;""'t...t'1I.;o1(11"4 (' .......".~... '" ., ". "..... H......'..._...........~>...,. .. '.t !' 'L. . " ." .', '.~ " r ,. ,~ . " . , , J , ' " " , ,: " "POLICE ," SUPPLEMENTARY, , , , " PENSION ',i ., ',',',\.1 .,". , ' ~ . Minutes ') , ' .j " j . ~ DAT'E - d//d",,uf ,;~ .Ih'.s- >6~~: " ,'.'; 'c' I '" .' , " I I' ..~ . . I'.. ~ I ,(':::. ;,: :~~: ' :;>'..:~,.?' . " , ,.1'1 :2 ~'~.; ", ~.:'.; >>1.,:', " ;.1 , . " ..' "'~\.',::!~\ 'C i.;'.:;:,,>:,'.'.'.<::":,},; i,r'i5;~,:,\'.~,i:': ..,,:i'.>:., ",'.~:: ~; ;' ~,;:':i;':':}'::\ ;'b:: i:,L' ...~,... !'..:':::.':); ,'" ^,,', '" do. '-'.' '.'..".."\::. '\ "1""'" '.'. .t,:::',)"""" '-~I"" ..'..1'.....,::'.,..'.,-,.. ,.,' ,..;"..\,,>".. '" \:.:: .:.;:,:: -:', '.' "~.':"l: ":- ,:.;:,.,: ,:!/ ,~'.">:~:"'.:.r y,::,:,:;;":::, :\~::'l< ~~:::',;.:',i':, ':'~ :',:,:::\'!:,~*'/,,:":,(:~';~',>:,:':~~>'.:,\ ,::--::, ,:;::,:,\, .':,:':~,~:'<.',/,"':.):' ~"<.",J!:~~~\"<",,:~:;,,,'<~;i:,:~i,,,:""~:;''''i:::::,:,:;;<"~;'!i:!;::' 'J"',":':.:"::', .', d' ,;:' ',"',.'; ,:\",:. ,'~ : ' c .-. . . " ~ '; . ; I I ." I ;". ".':" \' . . . ~. '", Ie. ., I; ~ . " " , . ,1,1<,' ,I', " :....,. , ".' .":, :" ~:.'." ':;'::';'?,:':;??~ :1 ,:.' i \', . ',.f .: >~. :" 'i . ..' ~.' . , . , . ' {,," '. ;;:'.' . .' f ~ ~ I ' . " .,..- ~.; "f ",IJ. If:. .,'J. ;-. ,:" .', . ' '1, \ . . . . ",' ", ,',1.'- ~t .~.~'.'.:' '.".. . \', .' ',' ;. . .,' ," PI '! , , , -s,' ~ ~.' .', . ~, ..1 " c :' ,I j, j: ; ~ I . '. . 'foit4.r.-.,.'l~ \.,., 'jl~l )' ) ""t~ _. p''- , .-, I" c .' ' . ,. ~,;,,':;I,):;,\' ~"':'~)t~:'~~:;~,~~::/5~tr;~,,~~~1H~fLj,;;""'i'~)jlol{'Y .".' . , . ..", . '. . ,: '. ..-.' '. J' ,~,t.: I,. ~ ."f~}t.~ ...","' ;'" ~~"..u~,.:.~~." ,", "'. . , ~. _I .....H.'f..L.-.~ "~ ,.,., ~ ~". iW . . '...... .t:<',.,.,.,,( '., . <' ~ .".. , ~ : I .':;.; . pl.,.. .':F . ~. '. ....,'~.......;.,..-:-"..,':!'~rt , ') '.t , \-, , ; !":J ' "'-~...<~ . POLICE SUPPLEMENTARY PENSION I, '. , ~~! '. MEETING OF JANUARY 22, 1985 AGENDA .. ,1'. Approval of Minutes of Meeting hel~ october 30, 1984~ 2. Certificates of Deposit Maturing ~ Be~ty Ward. 3. Ratification of business transactions.made by Betty Ward. , . : ~ 'J I' ' 4. Approval of Invoice from Provident for 1984 insurance policy covering Officer Thomas F. Miller, Jr. Amount of Invoice: $110.02 y -~..... ' , .. c\ . .....-"" ~". . '5. Approval of Irivoice from Provident for 1984 insurance Policy for Det. James Little. Amount of Invoice: '$29.43 ' ,6. Correspondence dated December 26, 1984 ,from Dav ld S. Raudman, Vice President, Barnett Bank, Tampa. (Chief Klein). 7. Correspondence dated January 4, 1985 from Rich Matula, Senior Account Representative, North American Investment I Corporation. 8. ,Status of Legal Opinions refer~nce Share Plan Concept ";and Police recruit. '( Robert Walker, Legal Advisor) ,A..,. I ~f}l,a.~: SID KLEIN, Secretary ,Board of Trustees, , \.' '''-..-J ," . , ~0~t:.":;t.,:,. '/'~.. " , ~~ 'I *~:~I' ~.:.:,. ',... .", ,},. " /; , .. '" .:\. ~ .j.... ".', '<.'~ I ',," <' ./ ,:.' ......-."". , , , .- 't: /" , ': ',' ", -:', '" ~ ~.. . ..1': i.;'.: p,"" ,.' ..+ I \" ~. ',' " ," .' . ',1::', ;;J: ~/ ~ ,.1:. . ' :: "\\' ., :1-/ i ", . "1';i :~:;';:, . ~"., r . ,,-/ . , " , " ;1,:'~.r ',I': .', . ,. :':,:t., , '.: L ' .. 'j ~..'/', ! I c'.' . . , CLEARWATER POLICE SUPPLEMENTARY PENSION FUND - MINUTES OF MEETING HELD JANUARY 22, 1985 A meeting of the Board of Trustees was held January 22, 1985 in the second floor Conference Room at Police Headquarters, 644 pierce Street, Clearwater, Florida. The following Trustees were present: Sid Klein, Secretary Donald Hibbard Captain Ray Kaminskas Officer William Sedrick Mayor Kathleen F. Kelly, Chairman (Absent) Also present were Robert G. Walker, Jr., Assistant City Attorney, and Cindy nicks, secretary in Chief Klein's office. Chief Klein acted as Chairman and called the meeting to order at 9:35 A.M., and noted that a quorum was present. The first item on the agenda was the approval of th~ minutes of the meeting held October 30, 1984. Captain Kaminskas made a motion that the minutes be approved. Motion seconded by Officer Sedrick. Motion carried unanimously. The second item on the agenda concerned certificates of deposit matu~ing. Cindy Hicks reported that there is one certificate maturing in January and two in February. Captain Kaminskas made a motion that 'the CD's maturing in January and February be renewed at the best rate possible at maturity. Motion seconded by Donald Hibbard. Motion carried unanimously. Item number three on the agenda was the ratification of business transactions made by Betty Ward. Chief Klein reported that pursuant to the Board's instructions, the 10 CO's which matured in November, December and January had been renewed at interest rates varying between 9% and 10.9%. Donald Hibbard made a motion that the transactions be ratified. Motion seconded by Officer Sedrick. Motion carried unanimously. Item number four on the agenda was approval of an invoice from provident for 1984 insurance policy covering Officer Thomas F. Miller, Jr., in the amount of $110.02.' Captain Kaminskas stated that the extra billing was probably due to provident neglecting to issue a policy because of confusion caused by having two officers named Thomas Miller. Motion was made by Captain Kaminskas that the expenditure be approved. Motion seconded by Officer Sedrick., Motion carried unanimously. Item number five on the agenda was approval of an invoice from provident for 1984 insurance policy for Detective James Little in the amount of $29.43. Chief Klein stated that' Provident had charged 'an incorrect amount for this' pol icy in the orig ioal billing and the additional money was simply to make up the \ '1-'4..........,."....,..\ .\L.+ +.. j". ~,....l < J ~ : t ;.'>c :: '.:' ~,. '. ~,;:;~~,~',~~iii ,~1~~~~~~ : " ,"." .~, +'. 'I ,/.. ~~AA'4<<,' t ,,' , ;:<~~~'.~~: ~ >11 ~ c ' . T 0"(' . l:jI , ' , , . ./' <' , !", , .1' .", I~ , ...... ~ ',,', ,} :.... '.1. 1 ~;-- ,; .~ .' ~-"" ", ' , ' : ~ :: i . J... ~ ,', . ... '."t, ....'. .;1/. ',.' I.,": ".:" ~I I.':'f c"' <./'. '.' ~. t',. : ':. ~./:.~ ....l --,I .... "::. : .1' '~:"~'I; ~ :: . , ' ... " . '.'..- ~ ..,' . .";:': ',0' " . ~. >:', - . . " ',C 'l Clearwater Police Supplementary Pension Fund Minutes of Meeting Held January 22, 1985 Page 2 d~fference. Motion was made by Officer Sedrick that the expen- diture be approved. Motion'seconded by Donald Hibbard. Motion carried unanimously. Item number six on the agenda concerned materials received from David S. Raudman, Vice President; Barnett Bank, Tampa. Chief Klein stated that Mr. Raudman had visited him and presented the materials to him requesting permission to address the Board. Chief Klein suggested to the Board that the matter be tabled until such time as the Board was prepared to accept proposals from other agencies. The Board agreed unanimously. Item number seven on the agenda concerned correspondence from Rich MatUla, Senior Account Representative, North American Investment Corporation. Chief Klein said that this was infor- mation submitted to the Board on conversion to a share plan and could be tabled for the present, along with the materials from Mr. Raudman. Chief Klein said that with the approval of the Board, he would set up a file on these items and maintain the file in his office for future use. The ~oard agreed unanimously. .', Item numbe'r eight on the ~gel)da concerned legal opinions from M~. Walker regarding the share plan concept and the classi- fication of police recruit. Copies of Mr. Walker's legal opinion addressing the issues were distributed to all members of the Board and Mr. Walker briefly summarized his answer to each of the four questions. The original legal opinion submitted by Mr. Walker is attached to these minutes and made a part thereof. , . Captain Kaminskas requested that an addendum to the agenda for this meeting be incorporated into the minutes reflecting the results,of the election for representatives to the Board of Trustees which was held on Noyember 1 and 2, 1984. At that election Captain Kaminskas and Officer Sedrick were re-elected to serve another two year term on the Board. The request was unanimously approved by the Board. There being no further business, a motion was made by Officer Sedrick that the meeting be adjourned. Motion seconded by Donald Hibbard. Motion carried unanimously and the meeting was adjourned at 10:00 A.M. J1-1/~' SID KLEIN, Secretary Board of Trustees C . T. .~: " , , ' ~ .,. ~ c '. \i:;:{.,}:> ,< ":.,,' .'. :"-:':, :::::" '.',":. , " r::'::',}/;;;;i:\:,.'..;':,:)'},i:,:::i;:.'l:iic.'~~{'~~P,N~i?:'::~".~;:)'~.:;::~!:~:f:":,<,,; /;' ....... , :;':!~'.: : ,J ',.1. ,~ I'.: :' ')i! ." ....l " \,'. ~", : " '.' , .;. f:" ,,' I.': ,,": ," .f:, , , :.. ~ . "l) :. " , , ..... ;~'.: : ..... ,":.r ....;j ':~ ~. ~ . .'1. ...,' . .: " , >.....<~ .,.....; " ::. '.1. > ~ l. ".'. .J. ,::: ....." .I~. ", '. ;1 "l..\' , "'"-"" ,'," I,.';L .": ..... , " ~. : ': , .. .:1,. ~ .";.~ . , 't" ,,' ,.) f I CLEARWATER POLICE DEPARTMENT OFFICE OF THE LEGAL ADVISOR LEGAL OPINION #a5~1 TO: Supplementary Pension Board Members FROM: Robert G. Walker, Police Legal A.dvisor'K(~>l.,C) COPIES: Tom Bustin, City Attorney SUBJECT: Supplementary Police Pension DATE: January 21, 1985 , At the meeting of "the Supplementary Pension Board members on October 30, 1984, the fallowing four questions were presented for ~ legal opinion: 1. Does the new police ,"recruit" status/rank affect the entry into the supplementary pension plan? ,2. Would a change in the method of distribution of funds upon retirement (e.g., away from the existing lump sum option to shares in the plan) result in a "termination" of the plan under State Statute 185.37? 3. Could those employees who would'be affected negatively by withdrawing the lump sum settlement option be grand fathered into a subsequent modification? 4. At what point does a member of the plan's rights to benefits vest? These'four questions will be discussed individually. I. Police Recruit Status A "recruit," although considered a "police officer" upon certification by CJSTC and attainment of full-time ,employment by a law enforcement agency, would probably not be considered 'a II permanent, full-time pol ice off icer" since the latter position is superior to, and considered a ' promotion from, the'recruit classification. Thus, a new police' employee must successfully complete' the F.T.O. and academy'programs, be promoted/advanced to the rank of police officer, and complete one year of service in that latter classification and be considered "permanent" to be eligible for participation in the supplementary pension plan. Obviously, 'the qualification period will be longer ,and,any potential members, of the plan whose year of service expires after September 17th will not be able to join th~ plan until the following September 17th. \ \.::<' :;~:~,;: ':.:',:'. t ,~.:':;/::.::" ':.:.~ ,.1 :.:~' '~;.~..>i:;:/ ~\" '~~ '.': 1 \. '.<;;' }::..::.r.... ~.' I. , H' . .'. <'" :.,..... , t .'. ';;}~::{,:~"i{i"!,!\'!:{~,'i~;i;rL:,:;{:';~ii~'!t\l:;,~:.';':~*t,;:,:';:}~;,':~;~./;,,';ii~f,i;~;f;:i~;, "-"!{:',~,:,'\:~; " ,~.:" "': ,e , ~ .~I. , LEGAL OPINION #85-1 Supplementary Police Pension 1':,. ,..-..., ,. , , .1 II. Termination of the Plan This is a wind-down pro~isio~ to distribute the assets of the fund to eligible members and retirees so as to eliminate or diminish the amount which would have to be returned to the State in the event that the fund was discontinued for any reason. "Termination" simply means the abolishment or end of, the supplementary'pension plan, for whatever reason (such as bankruptcy or disincorporation of the city, discontinuatiori of the police department, merger of pensdon plans, changes in the law, etc.). That term has the same meaning in City Ordinance 26.79 as it does in State Statute 185.37. ~ '. I t . . , ,l.~ Changing the method of investment or the method of distributing benefits would not be a "terminationll of the plan since the plan would, continue in effect (albeit in a modified form) and the funding would remain undisturbed. Only a modification which seriously imperilS or threatens the continued existence of the fund'could remotely be considered a constructive termination. ,', ,'\:j III. Grandfathering Provisions . ~; \ ~. ~...."'~ ., I ' '..../~ The City could adopt a "preservation of rights" clause similar to that contained in Florida Statute 121.011, thereby providing for the vesting of certain described members of the plan upon the attainment of certain conditions. I: . . " ,:' A grandfather provision is not necessary unless benefits are to be extended which would not otherwise have been . available. Those employees who are already vested at the time of a change in the plan which would adversely affect them cannot have their benefits diminished. I .~ ~. ..;, ; .' ., .~ , . , '.', \.:J IV. Vesting ',I:;' ,'. ~ " " .Ln. "Vesting" is the term which is used to describe the status, of an employee who has met all the requirements of the statute or ordinance creating the retire~ent system and who has retired or applied for retirement. Such employee having acquired an enforceable right under the terms of such statute or ordinance which may not be affected or adversely alter.ed by subsequent legislation. Once a participating member reaches retirement status, the benefits under the terms of the act in effect at the time of the employee's retirement vest. ;:~\ " \ ~.' ",'.':'; . ~ . I ~'''<J .':. : > .< . ~; ~ ',:.: '., j<',;. ;',. ~""_""/ We must then determine when "vesting" occurs under the current supplement pension plan. That determination is made by reference to the law which creates the plan. The law which applies is Chapter 26 of the City Code, specifically ....... '.' " .... .. ~. ' t/i,' :':':.~.i .... ~ ..' " '."" '14' "/,:: .', . ~ . \. ':', ',' : ".: ~. :/:'i:L :.:" :' :'. >-\':.:>',,~'I:'''!, ::; ...:'; .'.:;'::: >:'/' :, .' ", "{. :c;%t::;?"";~\(}ir?:r;:t\~",:;;'~B?~:~;:~~:>";.~~,,~;::):ci;;i:;j~;;~:..;<W:\0;'}:':,i;;?',::i:;:j ~. ...: ,~:.~1!.~.r..-,'.' ,'~',';::."~:,'!.~ , ;, . ,.' \,:~,,\~-",.}.:,. . . . I > . LEGAL OPINION 185-1 . Supplementary Police Pension . " . ',".c , .. ,.:1 '"r.., ,., '.~' " '.. i. ~ (. 526.16, My reading of that ~ection leads rn~ to the conclusion that no vested rights in the plan occur prior to official retirement after 20 years of' credited service ," Therefore, any officer who is in 'the active service of the City at this time ha~ no vested right in the supplementary' pension plan because, by definition, they cannot be officially retired regardless of the number of years of credited service.' ' '.' " ......' .", , .:) Interested parties should be aware that eligibility for retirement does not necessarily equate with entitlement to any specific benefit. The only claim to any benefit is und~r the law governing and creating ,the fund. There i~ no other property 'right. If the law does not create a property right, there isn't one. Even if mandatory contributions are 'ma~e by the 'employee, . ,there. is no private property.right until the' employee becomes vested in the plan. 'The existing supplementary pension plan is a gratuity for past services and does not constit~te a coritract between the plan member .and the City. No rights' in the plan are acquired prior'to '. :vesting. Any employee with 20 years or more of credited service could obtain~the'benefits of the current supplementary pension plan by retiring from the City prior to the effective date of any revision of this plan. The only other option to preserve the status quo for members who are eligible for retirement would be to establish a grandfather cut-off date, but such a provision would have ,to be drawn with care so as to create a rea~onable classification and not one which is arbitrary or unreasonably discriminatory, I , ' . \' ..:. (: ,'" . . ~. " ~ .,' . 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