10/10/1996 (2)
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PAC
Pension Advisory Committee
. Minutes
Date
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PENSION ADVISORY COMMITTEE
CITY OF CLEARWATER
October 10, 1996
Present:
Rita Garvey
Richard Breest
Robert Clark
Pat Greer
Leslie Dougall-Sides
Michael Laursen
Patricia O. Sullivan
Chair/Mayor
Committee Member
Committee Member/Commissioner
Committee Member
Assistant City Attorney
Human Resources Director
BOBrd Reporter
Absent:
J. 8. Johnson
Dick Fitzgerald
Pat Shepler
Vice Chair/Commissioner
Committee Member
Committee Member
The Chair called the meeting to order at 9:02 a.m. at City Hall.
To provide continuity for research, items are in agenda order although not necessarily
discussed in that order.
ITEM #2 - Aooroval of Minutes
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Member Clark moved to approve the minutes of the regular meeting of September
12, 1996, as recorded and submitted in written summation to each member. The motion
was duly seconded and carried unanimously.
ITEM #3 - Review & Action on Emolovee Reauest for Non~job-connected Disabilitv Pension
a.) Hearing on Thomas Murray - Meter Reader, Finance Department - Non-Jab-connected
Disability Pension - Member Greer moved that Thomas Murray be granted a non-job-
connected disability pension effective on a date to be determined based on Mr.
Murray's disability which is described as nonischemic cardiomyopathy, nonsustained
ventricular tachycardia, chronic obstructive pulmonary disease, and anxiety; all these
symptoms making him permanently unable to perform his job and documented by
numerous medical statements of Paul L. Phillips, M.D.; Jose L. Gallastegui, M.D.;
Aland Fernandez, M.D.; and Robert Sanchez, M.D.; with accompanying dates of all the
doctor visits. The motion was duly seconded and carried unanimously.
Human Resources Director Mike Laursen indicated Mr. Murrayts functional
occupational assessment test is on file.
ITEM #4 M Emolovees to be Heard
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Mr. Laursen indicated employees were advised they might not receive immediate
answers upon addressing the PAC unless employees provide the PAC with written
requests in advance for review.
Dan Carpenter questioned why the PAC (Pension Advisory Committee I had denied
his buy-back application and requested they reconsider their position. Mr. Laursen said the
PAC had agreed with Assistant City Attorney Leslie-Dougall-Sides' memorandum indicating
Mr. Carpenter's request did not fall within approved parameters'; buy-backs only were
approved for employees who had returned to their previous positions and had, in essence,
withdrawn their resignations. Mr. Carpenter had resigned his position as a Senior Beach
Guard in the Marine Department and returned to the City as an Accountant in the Finance
Department. It was requested staff redistribute the memorandum addressing this issue.
Van Horton, President of the International Association of Firefighters, questioned if
the policy is a written one or is based on staff interpretation. Ms. Dougall-Sides said the
parameters are based on PAC minutes and consensus. Mr. Laursen said buy-backs are
based on actuary numbers and have no negative impact on the Pension Plan. It was
requested staff request Mr. Metz compute actuary numbers for Mr. Carpenter prior to the
November 14, 1996, meeting when further discussion of this issue will be held.
ITEM #5 - Action Item~
a) Review and Action on Employee Requests for Years of Service Pension - None.
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b) Approval of New Hires as Pension Plan Members
Mr. Laursen said he had reviewed all physician recommendations and reported all
listed new hires meet Pension Plan criteria.
Member Greer moved to accept the following employees into membership in the
Pension Plan:
Date of
Emolovment
Robin I. Gomez, Auditor Internal Audit 09/16/96
Elizabeth Wood, Systm Analyst/Prgrm Information Mgmt. 09/16/96
Jeanette Terry, Staff Assistant II Economic Development 09/16/96
Von Watson, Pub Works Svc Worker I Public Works Dept. 09/16/96
Gregory Anderson, PubWorksSvcWrkrl Public Works Dept. 09/16/96
Darrell Ford, Pub Works Svc Worker I Public Works Dept. 09/16/96
Alan L. Ruud, Tradesworker II. General Services Dept. 08/26/96
Jessie Croskey, Maintenance Worker I Parks & Recreation 10/30/95
Courtney G. Atkinson, Mechanic II General Services Dept. 09/09/96
Jose Leon-Tapia, Maint. Worker I Solid Waste Dept. 09/16/96
Michelle Solaski, Staff Asst. I Legal Department 09/03/96
The motion was duly seconded carried unanimously.
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Mr. Lovett said his buy-back had been computed at approximately $41,000 for 28
months of service. He felt an installment plan would better serve his need to accrue those
funds as it is impossible for him to make a lump sum payment. Mr. Laursen suggested the
employee would benefit from setting aside the amount he intended to deduct from his bi~
weekly pay, earning interest on the investment of that money, and making a lump sum
payment prior to December 31, 1997. Mr. Lovett said he would lose money if he took out
a loan to pay back the money.
,~ ITEM #6 - Pending/New Business
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a) Direction from Committee regarding pension buy~back - lump sum or installment
Mr. Laursen referred to his October 3, 1996, memorandum addressing repayment
of pension buy-backs, noting the Pension Ordinance requires repayment be made no later
than the second anniversary of the participant's reemployment. The PAC had determined
buy-backs of time prior to January 1, 1996, must be concluded by December 31, 1997.
Firefighter Jerry Lovett has requested buying-back his retroactive pension service time
through payroll deduction or installment payments. Consensus of Finance Director Margie
Simmons, Payroll Services Manager Debbie Bailey, and Mr. Laursen was that buy-backs
should be made with a lump sum payment. Mr. Laursen expressed concern benefits would
be difficult to determine if an employee terminates employment, becomes disabled, or dies
in the midst of a buy-back. Current pension contributions by employees are pre-taxed
while previous pension contributions were post*taxed.
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Member Breest moved to require eligible employees make their buy-back
contribution to the Pension Plan in a lump sum payment. The motion was duly seconded.
In answer to a question, Mr. Laursen said approximately 8 employees are eligible for
buy-backs. The City is not required to match the contribution as it had contributed money
during the previous employment; these monies remained in the Plan's fund and continued
earning interest. Mr. Horton suggested the City must match the contribution. Ms.
Dougall-Sides said the City is not required to make a double contribution.
Upon the vote being taken, the motion carried unanimously.
It was requested staff verify if Mr. Lovett qualifies for pre-tax benefits regarding his
buy-back. Ms. Dougall-Sides said an IRS ruling might be needed as the buy-back relates to
the original years of employment.
It was suggested Mr. Lovett be encouraged to seek outside advice regarding his
financial planning. Mr. Laursen reported a RFP (Request for Proposals) has been distributed
for a third party administrator for the Pension Plan to provide counseling to employees.
The third party administrator was a key commitment made at referendum to provide
employees information and review options. A recommendation for this position will be
forwarded to the City Commission in several months.
ITEM #7 * Director's Reoorts
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The meeting adjourned at 10:02 a.m.
Chair
Pension Advisory Committee
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I~ a} Discussion of Draft of Periodic Examination and Call-Back Procedures
Mr. Laursen noted the absence of several committee members' and suggested
continuing discussion on the draft. He requested committee members contact him with
corrections and recommendations.
Member Clark moved to continue Item #7a to November 14, 1996.
ITEM #8 - Adjournment
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