03/14/1996 (2)
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PAC
Pension Advisory Committee
Minutes
Date
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PENSION ADVISORY COMMITTEE
CITY OF CLEARWATER
March 14, 1996
Present:
Rita Garvey
Richard Breest
J. B. Johnson
Robert Clark
Pat Greer
Pat Shepler
Empty Seat
Leslie Dougall-Sides
Michael Laursen
Patricia O. Sullivan
Acting Chair/Mayor
Committee Member
Committee Member/Commissioner
Committee Member/Commissioner
Committee Member
Committee Member
Committee Member
Assistant City Attorney
Human Resources Director
Board Reporter
The Acting Chair caUed the meeting to order at 9:00 a.m. at City Hall.
To provide continuity for research, items are In agenda order although not necessarily
discussed In that order.
ITEM #2 - Aocroval of Minutes
Member Johnson moved to approve the minutes of the regular meeting of February
8, 1996, as recorded and submitted in written summation to each member. The motion
i>\I~
(lfop1 was duly seconded and carried unanimously.
ITEM #3 - Action Item~
a) Review and action on Employee Requests for Years of Service Pension
1) Terrance L. Clements - Fire District Chief, Fire Department - 20 years of service
designation - hazardous duty provision
Member Clark moved to approve a Years of Service Pension for Terrance l.
Clements. The motion was duly seconded and carried unanimously.
2) Wayne Vanden Berg - Firefighter - Fire Department - 20 years of service designation -
hazardous duty provision
Member Shepler moved to approve a Years of Service Pension for Wayne Vanden
Berg. The motion was duly seconded and carried unanimously.
3) Albert MVrlck - Equipment Operator III M Public Works Department - 30 years of service
designation
Member Greer moved to approve a Years of Service Pension for Albert Myrick. The
motion was duly seconded and carried unanimously.
o
mpac03a.96
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4) Ellen G. Darrington - Senior Recreation Supervisor - Parks & Recreation Department -
30 years of service designation
Member Clark moved to approve a Years of Service Pension for Ellen G. Darrington.
The motion was duly seconded and carried unanimously.
5) Jack D. Bryant - Police Officer - Police Department - 20 years of service designation -
hazardous duty provision
Member Breest moved to approve a Years of Service Pension for Jack D. Bryant.
The motion was duly seconded and carried unanimously.
b} Review and action on Employee Requests for Job-connected Disability Pension
1} David L. Ford - Spray Technician, Parks & Recreation Department -
'J.,r}
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Additional medical documentation regarding Mr. Ford was distributed. Mr. Laursen
said his January 1996, letter to Mr. Ford advised him the submitted medical
documentation did not verify a connection between Mr. Ford's disability and his job. The
Fords are appealing the Risk Management and State rejection of Mr. Ford's worker's
compensation claim. Mr. Laursen recommended scheduling Mr. Ford for an IME
(Independent Medical Examination) to provide the PAC (Pension Advisory Committee) with
appropriate information and schedule a Special Meeting for the PAC to consider a non-job
connected disability with a proviso to upgrade the rating if a job-connected disability is
established later. Assistant City Attorney Leslie Dougall-Sides said Mr. Ford can amend, in
writing, his application to request a non.job connected disability. In answer to a question,
Mr. Laursen stated a job-connected disabilit~ pays a 66%% pension and non-job connected
disability pays 2.75% times years of service. Mr. Ford is unable to work and has
exhausted all benefits.
Mrs. Ford expressed concern they had not received early notice of this meeting.
She said Mr. Ford will amend his application to a non-job connected disability request with
a provision they can continue pursuing a job-connection. It was suggested that Mr. Ford
visit a medical toxicologist to document cause. It was recommended that employees listed
on the agenda receive timely notification of meetings.
Member Breest moved to schedule a Special Meeting for the week of March 18,
1996, to address David L. Ford.s request for a non-job connected disability. The motion
was duly seconded.
Member Breest reported he will be unable to attend a PAC meeting on March 21,
1996. Mr. Laursen said only a quorum is necessary.
The motion was amended to schedule the Special Meeting for March 21, 1996, at
9:00 a.m. The seconder agreed.
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,~ It was recommended a review of Rick Management files accompany each disability
P application. Mr. Laursen said before the Pension Plan was revised I Mr. Marcin attended
PAC meetings with the Risk Management file that contains all injury forms for discussion
with the Committee. These files are available for Committee review before PAC meetings.
Risk Managemenes presence at the March 21, 1996, meeting was requested.
Upon the vote being taken, the amended motion was carried unanimously.
c) Approval of New Hires as Plan Members
Mr. Laursen said the Committee had directed him to review all new hires and
confirm that doctors had approved the applicants for pension, etc. Ms. Dougall-Sides and
he had checked the ordinance and noted the language states". . .the committee shall
review such physicians' reports. . . ."
In answer to a question, Mr. Laursen said physicians are provided with job
descriptions and medical standards developed by the City. The PAC always has based
approval of new hires on physician recommendation. Ms. Dougall-Sides indicated the PAC
can delegate responsibilitv for reviewing physician recommendations to Mr. Laursen. PAC
members can review this information in the Human Resource offices before PAC meetings.
Concern was expressed that promoted employees are not examined for pension for
new positions. Mr. Laursen said the PAC cannot address that issue. ADA (American with
,f~". Disabilities Act) requires the City to consider only the position a new hire has accepted.
~".,. The revised ordinance states a person cannot receive a disability pension based on a
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preexisting condition. Physical examinations remain on record. It was suggested the form
for physicals list limitations. Ms. Dougall.Sides suggested a mechanism could be initiated
to identify limitations.
Member Clark moved to authorize Mr. Laursen to review all new hire applications
for completeness and confirm that physicians had approved the applicants for pension and
that records will be available for PAC review. The motion was duly seconded and carried
unanimously.
Member Johnson moved to accept the following employees into membership in the
Pension Plan:
\:;)
Michael Aleska. Firefighter Fire Department
Elizabeth Boone, Firefighter Fire Department
Kevin Bowler, Firefighter Fire Department
Dewayne Broadwater, Custodial Wrkr Parks & Rec. Dept.
Timothy Chaplinsky, Custodial Worker Parks & Rec. Dept.
Stephen Coward, Firefighter Fire Department
Paul Cronin, PW Service Worker. I Public Works Dept.
Oscar DelBono, WWTP Operator Trne Engineering Dept./WPC
J..ouis Georgantas, Firefighter Fire Department
Date of
Emolovment
03/04/96
03/04/96
03/04/96
02/21/95
02/20/96
03/04/96
01/22/96
02/20/96
03/04/96
Pension
Elig. Date.
03/04/96
03/04/96
03/04/96
10/16/95
02/20/96
03/04/96
01/22/96
02/20/96
03/04/96
mpac03a.96
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Ronald Horne, PW Service Worker I Public Works Dept.
Donald Gulley, Custodial Worker Parks & Rec. Dept.
Kenneth Smith, PW Service Worker IPublic Works Dept.
01/22/96
02/20/96
02/20/96
01/22/96
02/20/96
02/20/96
The motion was duly seconded and carried unanimously.
ITEM #4 - Pending Business
a) Leo Thompson - Spray Technrcian, Parks & Recreation Department - Job-connected
Disability Pension - Not present
Mr. Laursen reported the former PAC had rejected Mr. Thompson's application
for job-connected disability pension. Mr. Thompson also has a pending claim with
workers' compensation. Mr. Laursen reported Mr. Thompson has reached a settlement
with the City that calls for him to resign, to withdraw his pension monies, and to
release the City from any claims. The City has not yet received the court approved
order. Mr. Thompson's resignation is expected soon.
b) Claim of Kathy Jenkins on behalf of Latisha Renae Carey, a minor, for Survivor
Benefits as the daughter of Robert Mouzon, deceased - Not present
Ms. Dougall-Sides said the City has received competing claims regarding
t,~' Survivor Benefits from Robert Mouzon's estate. If either claim is paid, the Pension
f ~.."~ Fund potentially could be libel for complete payment to the other claimant. The PAC
cannot determine which claimant has the better claim. She recommended filing an
inter-pleader action requesting the court to determine which claimant should receive
the benefits. According to Code, the Commission directs the City Attorney to file suit
on behalf of the City in general civil actions. The Pension Ordinance has no
corresponding provision except the Trustees have ultimate authority to administer the
fund. She suggested including this on the Trustees' next agenda.
Robert Medler, representative for Kathy Jenkins, indicated evidence was
submitted to the City regarding Ms. Carey's claim as Mr. Mouzon's daughter. Ms.
Dougall.Sides said no definition of a dependent exists. In answer to a question, she
said the City is relieved of liability if the circuit court orders the City to pay a specific
claimant. If Clearwater files an inter-pleader action, the City would be the plaintiff, but
a disinterested party.
Member Clark moved to request the Pension Trustees direct the City Attorney
to file an inter-pleader action regarding competing claims for Survivor Benefits in
Robert Mouzon's estate. The motion was duly seconded and carried unanimously.
c) Request of Robert Lockwood to review the application of actuarially reduced
pensions (early retirement provision)
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Steve Metz, actuary for Coopers and Lybrand, referred to Robert Lockwood's
January 2, 1996, memorandum regarding actuarially reduced pensions at age 65 with
10 years of service. Mr. Metz said before the January 1, 1996, change to the Pension
Plan, retiring employees could not collect pension funds until the 20th anniversary of
their start of service. Some employees indicated they wished to collect their pensions
early. An actuarially equivalent pension that 'starts early provides pensioners the
option of receiving their pensions earlier without increasing the Pension Plan's costs.
Actuarial tables calculate an expected benefit that ;s equal in value to the deferred
pension. Pensioners can wait until their 20th anniversary and collect a full pension.
Permitting early collection is a new and added benefit. Pensioners cannot change their
plan once one ;s chosen.
Robert Lockwood expressed concern that senior employees are the only ones
with pensions based on actuarially equivalents. Public safety employees and those
over age 55 can retire after 20 years of service without a reduction to their pensions.
He said SAMP employees did not write or bargain the new plan and pensioners who
collect an actuarially equivalent pension will never receive as much money as they
contributed. He suggested allowing older employees to invest their 8% contribution
independent of the Pension Plan. Mr. Metz said the Plan provides that all employees
will be returned a minimum of their own contribution plus interest. The beneficiary or
estate receives the difference.
Mr. Lockwood was concerned one group of employees is treated differently
than others and referred to the non~djscrimjnation clause. Mr. Metz agreed everyone
does not receive the same benefit from the Plan. This always has been true. A non.
hazardous employee who retires at age 40 after 20 years of service must wait 16
years before collecting pension funds and cannot request an actuarially equivalent
reduced amount. The updated Plan allows employees, at age 65, to receive benefits
of equal value earlier. Every older employee who now retires has actuarially equivalent
options. Mr. Metz felt the term fair is impossible to assign here. Mr. Laursen
concurred and noted some employees have complained the hazardous duty provision is
not fair. Changes to the Plan were directed by the collective bargaining process.
Pat Buzek said retirees are asking for benefits based on the formula (2.75 %
times the number of years). Mr. Laursen said it is difficult to define the subjective
word "unfairly" in the non-discrimination clause. For example, he said the current Plan
identifies Police and Fire as hazardous duties to be treated differently than non-
hazardous duty employees.
Mr. Metz said employees who leave the City after ten years of service, must
wait at least ten years to collect a full pension. Only older employees can receive
payments sooner if they agree to a reduction. According to agreements between the
City, State, and Social Security Administration, all employees must join the Pension
mpac03a.96
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Plan if they pass the pension physical. Before ADA, some employees considered a
poor risk, were denied admission into the Plan. Now, if employees are eligible to
perform their jobs, they are deemed eligible for Plan participation. .
The majority of the Committee felt the Plan is fair and lucrative. Concern was
expressed new committee members have not had the opportunity to review this issue. '
It was noted Mr. Lockwood had expressed concern the actuarial tables were not
distributed until shortly before the referendum. Mr. Lockwood said figures indicate an
employee retiring after 10 years receives an 82% reduction in benefits. He said PAC
can select a different actuary table in conjunction with the actuaries. Mr. Metz said he
was surprised the actuarial tables were requested prior to the referendum. He pointed
out the change increased employees' options by adding an alternative method to
receive their pension benefit. Employees who reject the new option still can receive a
benefit as available from the original Plan. Only older employees have this added
option.
The majority of the Committee agreed not to pursue this issue nor make any
recommendations to the Pension Trustees.
d) Request of Police Sergeant Kenneth Donagan to buy pension service credit
(~
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Mr. Laursen noted Kenneth Donagan had distributed information at t~e February
8, 1996, meeting. Ms. Dougall-Sides said each buyback case should be considered
individually. Regarding Sergeant Donagan's case, the Legal Department did not find
the request viable or that the employee could buy back years due to provisions in the
Pension ordinance and Policies and Procedures Manual. It was noted former Assistant
City Manager Gerald B. Weimer1s November 9, 1983, memorandum to the City
Manager indicated Sergeant Donagan was accepted back on the Police Force but was
not permitted, by law, to buy back into the Pension Plan. This is Sergeant Donagan's
first opportunity to have his buy back request considered.
In answer to a question, Mr. Laursen said the revised Pension Plan allows
employees to buy back into the plan if they return within five years of their resignation
and pay back an actuarially determined amount no later than the second anniversary of
their return. Sergeant Donagan said he wanted to buy back into the Pension Plan in
1983, but was told he had to waive that right because of his age. During his four
month absence, he had celebrated his 39th birthday. At that time, no provision
allowed him to buy back into the Plan 'within two years. Mr. Laursen said the City
previously had to comply with State mandate regarding age requirements for Police
and Fire personnel that set a 39-year age limit for Police officers. That rule
subsequently was challenged and overturned. That mandate was not related to the
City's Pension Plan.
\:J
mpac03a.96
6
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It was noted Sergeant Donagan's request is based on new Pension Plan
language permitting buy backs after breaks in service. Mr. Laursen suggested
imposing a two year limitation for similar requests. He said the new Plan contemplates
someone leaving under the revised ordinance and then returning within five years. The
returning employee has two years to pay back the Pension Fund the greater of: 1) the
actual amount of contributions returned plus interest or 2) the present value of the
benefit.
Ms. DougaU-Sides said her legal opinion was partly based on ordinance language
that indicates repayments must be made by the second anniversary of the participant's
reemployment. She recommended reviewing each case independently. Concern was
expressed regarding City liability to fund the Pension Plan tor someone who requests to
buy back into the plan after being absent many years. Ms. Dougall-Sides questioned if
the Committee can go back beyond the effective date of the ordinance. It was
questioned why Weimer's 1983 memorandum addressed the buy back issue. Mr.
Laursen said the rules of the PAC allowed someone, whose termination was overruled
after they withdrew their pension money, to buy back that time. Those who withdrew
their resignation also could buy back their pension. Sergeant Donagan had withdrawn
his resignation but was denied the ability to buy back his pension even though others
were provided that same opportunity. The age basis, established by the State, for that
denial later was found to be discriminatory. It was felt his denial was based on a law
or a law of the State that was overturned.
r.~
Ms. Dougall-Sides said if Sergeant Donagan is permitted to buy back into the
Plan, other employees will request a similar benefit. She referred to her February 6,
, 996, memorandum and noted payment of City funds covering time periods not
actually worked by the employee raises questions of public purpose. She questioned if
the employee would be requested to pay back the employee and City contributions.
Mr. Laursen said no contributions were made to the Plan during the four months
Sergeant Donagan did not work for the City and recommended not counting that time.
Sergeant Donagan said when he returned, his seniority was restored, less his four
months' absence. He is trying to buy back the 9'V2 years he worked before his
resignation and subsequent withdrawal of same.
It was recommended to allow Sergeant Donagan the option to buy back his 9 ~
years of previous service. Upon approval, Mr. Metz would compute the present value
of the benefit Sergeant Donagan would owe. Concern was expressed the Charter did
not address this issue. Ms. Dougall-Sides said the City's contribution for those 9 Y2
may have been committed to other employees' benefits.
Member Clark moved to grant Sergeant Kenneth Donagants request to buy back
his Pension service credit, if he so chooses, based on the clear understanding that each
case regarding the buyback issue will be considered independently. The motion was
duly seconded and carried unanimously.
~~
mpac03a.96
7
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Member Greer moved for employees to be notified a temporary window to buy
back into the Pension Plan exists for two years after the effective date of the revised
Pension Plan. The motion was duly seconded and carried unanimously.
The meeting recessed from 11 :01 to 11 :11 a.m.
e) Request of Police Officer David Krieger to buy pension service credit
Officer David Krieger said his request for a leave of absence to return to college
had not been granted. His intent was to earn his bachelor's degree and return to the
City within two years. Although he wanted to leave his money in the plan, it was
returned to him less a 20% fee. When he tried to return, a hiring freeze was in place.
Upon his 1977 return, he had been absent four years. His request to buy back his
previous service is based on language in the new Charter.
Member Johnson moved to grant Police Officer David Krieger's request to buy
back his Pension service credit, if he so chooses. The motion was duly seconded and
carried unanimously.
1) Request of Police Lieutenant Wayne Sibbert to be heard regarding claim that new
Pension Plan discriminates against single employees.
I'J,Ha
t~~~ Lieutenant Wayne Sibbert said employees preparing to retire are required to sign
many forms. Based on benefits he built over the years, his time is extended for one
year. He expressed concern he is asked to choose his retirement option now. Many
things can occur within a year that may affect that choice. Lieutenant Sibbert said
Human Resources will not consider his pension until all paperwork is complete. He
recommended changing this procedure.
In answer to a question, Mr. Laursen said Human Resources requests those who
announce retirement plans to select an option and complete their paperwork before
presenting the application to the PAC for approval. Human Resources provides retiring
employees with the actuarial numbers related to their six options. He suggested
Lieutenant Sibbert could choose his option shortly before his last day of pay for
presentation to the PAC. It was noted the PAC approves retiree pensions, not the
options. Mr. Laursen said retirees cannot change their option once one is chosen. He
noted retirees want assurances the PAC will approve their retirement. Lieutenant
Sibbert will contribute to the plan until his last day of pay. Mr. Laursen said staff was
hesitant to bring incomplete Pension applications to the PAC for approval.
Consensus was for retirees who are extending their time to complete paperwork
and choose an option for their pension benefit at least 30 days prior to the completion
of their extended time and start of pension benefits.
(;)
mpac03a.96
8
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Lieutenant Sibbert expressed concern married retirees receive greater benefits
than single retirees even though both contribute the same. The added benefit for
married retirees can be as much as 44%. He said the Pension prohibits discrimination.
Mr. Metz said married employees always have received a more valuable benefit. The
Pension Plan always provided a death benefit to an employeets spouse of 100% for
five years and 50% thereafter. Single employees do not receive a death benefit:
When the Pension Plan was amended, added options did not cost the plan more but
provided employees with additional choice. Married employees who give up the death
benefit upon retirement receive an increased benefit to keep the value the same. Only
employees who are married at death, qualify for death benefits. The new Pension Plan
allows retirees to factor in that value at the time of retirement.
g) Selection of seventh Committee member
Mr. Laursen distributed two memorandums each recommending Dick Fitzgerald
for the seventh seat. Two other nominations were submitted previously by PAC
members. Consensus was to agenda this item for the March 21, 1996 Special
Meeting.
h) Request of Sgt. Paul Noeske to select another option
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Mr. Laursen reported Officer Fred Casale and Sergeant Paul Noeske submitted
their retirement papers and selected their benefit without receiving information
regarding the specific dollar value of the six options. Sergeant Noeske has asked to
reconsider his choice. Ms. Dougall-Sides felt the request is reasonable because the
City did not disclose full information before he considered his option. Only two
employees were not provided dollar figures. Mr. Laursen recommended the PAC honor
Sergeant Noeske's request. He will contact Officer Casale and make a similar offer.
Member Greer moved to allow Officer Fred Casale and Sergeant Paul Noeske to
reconsider their choice of retirement options now that the dollar values are available for
their review. The motion was duly seconded and carried unanimously.
Consensus was to allow the two retirees thirty days to change their retirement
options.
n Discussion of procedures for processing employee disability pensions requests
Mr. Laursen requested PAC support staft's recommendation for procedure: 1) all
disability applicants fill out the application form; 2) applicants submit their medical
documentation; 3) Human Resources refer applicants for an IME and occupational
assessment; 4) applicants complete a set of interrogatories prepared by the Legal
Department; and 5) applicants appear before the PAC. Ms. Dougall-Sides said staff
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has reviewed procedures from other counties and found proceedings range in formality.
Staff recommend a procedure that allows the applicant and City to make a
presentation and not be to'o formal about presenting witnesses and evidence. An
appeal procedure will be included. Employees who are disabled from doing their job
can be reassigned.
Mr. Laursen said staff recommends no longer requiring applicants to submit two
medical statements. It was noted the PAC previously required two meetings to
approve a disability because time may be needed to investigate concerns and contact
doctors. It was suggested that Human Resources advise applicants regarding required
documentation before their case is on the agenda.
Consensus was for Mr. Laursen to submit procedures to the PAC based on this
recommendation.
ITEM #5 - Director's ReDorts
The April PAC meeting was rescheduled for Tuesday, April 16, 1996, at 9:00
a.m.
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ITEM #6 - Adiournment
The meeting adjourned at 1~;~3 p.m. -IJ;:; ~._.__. _ ."
Acting Cha~
Pension Advisory Committee
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