04/01/1996
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. PENSION
(TRUSTEES)
. . Board of Trustees of the Employees'
Pension Fund
Minutes
Date
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-- ACTION AGENDA
Board of Trustees of the Employees' Pension Fund
April 1, 1996
1. Call to order 1. 9:00 a.m.
2. Approval of Minutes: 3/4/96 2. Approved as submitted.
3. Request for acceptance 3. Approved.
into membership:
a) Michael Aleska
b) Elizabeth Boone
c) Kevin Bowler
d) Dewayne Broadwater
e) Timothy Chaplinsky
f) Stephen Coward
g) Paul Cronin
h) Oscar DelBono
i) Louis Georgantas
j) Ronald Horne
k) Donald Gulley
I) Kenneth Smith
(:> 4. Regular Pension to be granted: 4. Approved.
Jack D. Bryant
5. Regular Pension to be granted: 5. Approved.
Terrance L. Clements
6. Regular Pension to be granted: 6. Approved.
Ellen G. Darrington
7. Regular Pension to be granted: 7. Approved.
Wayne Vanden Berg
8. Regular Pension to be granted: 8. Approved.
Albert Myrick
9. Confirm engagement of Godwins 9. Confirmed.
Booke & Dickenson to provide
consulting services regarding
administration of a qualified
pension plan for an amount not to
exceed $5,000
10. Other Business 10. None.
11. Adjournment 11. ;9:05 a.m.
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TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
April 1, 1996
The City Commission, meeting as the Board of Trustees of the Employees' Pension
Fund, met In regular session at City Hall, Monday, April 1 , 1996 at 9:00 A.M., with the
following members present:
Rita Garvey
J. B. Johnson
Robert Clark
Chairperson
Trustee
Trustee
Absent:
Sue Berfield
Fred Thomas
Trustee
Trustee
Also Present were:
0,
Elizabeth M. Deptula
Pamela K. Akin
Ed Hooper
Karen Seel
Mary K. Diana
City Manager
City Attorney
Trustee-elect
Trustee-elect
Assistant City Clerk
ITEM #2 - Minutes:
Trustee Clark moved to approve the minutes. of the March 4, 1996, meeting. The
motion was duly seconded and carried unanimously.
ITEM #3 - ReQuest for Acceptance into Membership:
The City Manager presented the recommendation of the Pension Advisory
Committee to approve membership for the employee(s) listed below:
a) Michael Aleska
b) Elizabeth Boone
c) Kevin Bowler
d) Dewayne Broadwater
e) Timothy Chaplinsky
f) Stephen Coward
g) Paul Cronin
h} Oscar Del Bono
i) Louis Georgantas
j) Ronald Horne
k) Donald Gulley
I) Kenneth Smith
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Trustee Clark moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
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Trustee Johnson moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
ITEM #4 - Request for Pension:
The City Manager presented the recommendation of the Pension Advisory
Committee that Jack D. Bryant be granted a regular pension under Section(s) 2.393 and
2.397 of the Employees' Pension Plan.
Jack D. Bryant was employed on December 8, 1969, and began participating in the
Pension Plan on that date. His retirement will be effective on April 16, 1996.
Mr. Bryant's pension was approved by the PAC on March 14, 1996. 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.
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Based on an average salary of approximately $45,904 over the past five years, the
formula for computing regular pensions, and Mr. Bryant's selection of the Joint & Survivor
Annuity, this pension will approximate $33,274 annually. Charts from Finance which take
into consideration mortality rates and age reflect the "present value cost of financing" this
pension will be approximately $428,892. The estimated pension cost (cash payout over
the life of the pensioner and his beneficiary) is $1 ,028,713.
ITEM #5 - Request for Pension:
The City Manager presented the recommendation of the Pension Advisory
Committee Terrance L. Clements be granted a regular pension under Section(s) 2.393 and
2.397 of the Employees' Pension Plan.
Terrance L. Clements was employed on January 8, 1971, and began participating in
the Pension Plan on that date. His retirement will be effective on April 13, 1996.
Mr. Clements' pension was approved by the PAC on March 14, 1996. 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 as meeting the hazardous
duty criteria.
Based on an average salary of approximately $54,808 over the past five years, the
formula for computing regular pensions, and Mr. Clements' selection of the 100% Joint &
Survivor Annuity, this pension will approximate $37,312 annually. Charts from Finance
which take into consideration mortality rates and age reflect the "present value cost of
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financing" this pension will be approximately $497,380. The estimated pension cost (cash
payout over the life of the pensioner and his beneficiary) is $1,337,021.
Trustee Johnson moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
ITEM #6 - ReQuest for Pension:
The City Manager presented the recommendation of the Pension Advisory
Committee Ellen G. Darrington be granted a regular pension under Section(s) 2.393 and
2.397 of the Employees' Pension Plan.
Ellen G. Darrington was employed on September 8, 1 960, in a part-time status. She
changed to full-time on April 7, 1969, and began participating in the Pension Plan on that
date. Her retirement will be effective on February 14, 1997.
Ms. Darrington's pension was approved by the PAC on March 14, 1996. Section
2.393 (p) defines normal retirement date as when a participant reaches age 55 and has
completed twenty years of credited service or when the participant has completed thirty
years of credited service regardless of age. Ms. Darrington is eligible under the age 55 and
twenty years of service criteria.
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Based on an average salary of approximately $35,530 over the past five years, the
formula for computing regular pensions, and Ms. Darrington's selection of the 50% Joint &
Survivor Annuity, this pension will approximate $25,444 annually. Charts from Finance
which take into consideration mortality rates and age reflect the "present value cost of
financing" this pension will be approximately $305,307. The estimated pension cost (cash
payout over the life of the pensioner and her beneficiary) is $763,333.
Trustee Clark moved to accept the recommendation of the Pension Advisory
Committee. The motion was dUly seconded and carried unanimously.
ITEM #7 - ReQuest for Pension:
The City Manager presented the recommendation of the Pension Advisory
Committee Wayne Vanden Berg be granted a regular pension under Section(s) 2.393 and
2.397 of the Employees. Pension Plan.
Wayne Vanden Berg was employed on March 31, 1966, and began participating in
the Pension Plan on September 30, 1966. His retirement was effective on March 31,
1996.
Mr. Vanden Berg's pension was approved by the PAC on March 14, 1996. Section
2.393 cpt provides for normal retirement eligibility when a participant has completed
twenty years of credited s.ervice in a type of employment described as "hazardous duty"
and further specifically defines service as a Firefighter as meeting the hazardous duty
criteria.
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Albert Myrick was employed on October 26, 1965, and began participating in the
Pension Plan on that date. His retirement was effective on March 29, 1996,
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Based on an average salary of approximately $43,047 over the past five years, the
formula for computing regular pensions, and Mr. Vanden Berg's selection of the 100%
Joint & Survivor Annuity, this pension will approximate $34,026 annually. Charts from
Finance which take into consideration mortality rates and age reflect the "present value
cost of financing" this pension will be approximately $456,319. The estimated pension
cost (cash payout over the life of the pensioner and his beneficiary) is $1,222,105.
At the time of Mr. Vanden Berg's employment, pension deductions were not
immediately commenced. Subsequently, when employees were provided an opportunity to
make up pension contributions, he did not elect to do so. He began contributing to the
plan on September 30, 1966.
Trustee Johnson moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
ITEM #8 - Request for Pension:
The City Manager presented the recommendation of the Pension Advisory
Committee Albert Myrick be granted a regular pension under Section(s) 2.393 and 2.397 of
the Employees' Pension Plan.
Mr. Myrick's pension was approved by the PAC on March 14, 1996. Section 2,393
(p) defines normal retirement date as when a participant reaches age 55 and has completed
twenty years of credited service or when the participant has completed thirty years of
credited service regardless of age. Mr. Myrick is eligible under either criteria.
Based on an average salary of approximately $30,524 over the past five years, the
formula for computing regular pensions, and Mr. Myrick's selection of the 100% Joint &
Survivor Annuity, this pension will approximate $24,889 annually. Charts from Finance
which take into consideration mortality rates and age reflect the "present value cost of
financing" this pension will be approximately $322,824. The estimated pension cost leash
p~yout over the life of the pensioner and his beneficiary) is $771,565.
Trustee Clark moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
ITEM #9 - Confirm engagement of Godwins Booke & Dickenson to provide consulting
services regarding administration of a Qualified pension plan for an amount not to exceed
$5.000
On January 1, 1996, the Employees' Pension Plan became a qualified plan. The
City intended to have a third-party pension administrator on board immediately to handle
the pension plan due to the complicated legal and tax implications of a qualified plan. An
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RFP was issued but unfortunately, only two proposals were received and both were
unacceptable to the City.
It became imperative the City obtain immediate, competent help to assist with the
in-house implementation until a third-party administrator could be hired. Godwins Booke &
Dickenson (formerly Ogle & Waters) is a firm with an excellent reputation for employee
benefits consulting services. They are located in Clearwater and previously contracted
with and assisted the City with the implementation of the Section 125 Program.
Godwins Booke & Dickenson were contacted and were available to provide
immediate assistance. Funds are available in the Employees' Pension Fund.
Discussion ensued regarding the many technical issues involved with the
administration of the pension plan due to it being an IRS qualified plan and the City not
having the expertise in-house to deal with them. In response to a question, Debbie Bailey,
Payroll Manager, said the firm being considered did not respond to the RFP. She said the
City is looking at whether it wants to handle the pension plan in-house or go outside. If the
,City goes with an outside party, it will still be doing about 90 percent of the work in
providing information. If the City decides to handle the plan, a full time employee may be
required as there are a lot of intricacies involved in the plan's administration.
In response to a question, Ms. Bailey indicated the not to exceed $5,000 is a
negotiated amount to obtain assistance in the interim until the City decides what to do.
<::> Trustee Clark moved to confirm engagement of Godwins Booke & Dickenson to
provide consulting services regarding administration of a qualified pension plan for an
amount not to exceed $5,000. The motion was duly seconded and carried unanimously.
ITEM #10 - Other Business: - None.
ITEM #11 ~ Adjournment:
The meeting adjourned at 9:05 a.m.
ATTEST:
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istant City Clerk
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