11/14/1996 (2)
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PAC
, Pension Advisory Committee
Minutes
Date
) 10 I
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PENSION ADVISORY COMMITTEE
CITY OF CLEARWATER
November 14, 1996
Present:
Rita Garvey
J. B. Johnson
Robert Clark
Pat Greer
Oick Fitzgerald
Pat Shepler
Leslie Dougall-Sides
Michael Laursen
Patricia o. Sullivan
Absent:
Richard Breest
Chair/Mayor
Vice Chair/Commissioner
Committee Member/Commissioner
Committee Member
Committee Member
Committee Member
Assistant City Attorney
Human Resources Director
Board Reporter
Committee Member
The Chair called 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 - AQprQval of Minute~
Member Clark moved to approve the minutes of the regular meeting of October 10,
1996, as recorded and submitted in written summation to each member. The motion was
duly seconded and carried unanimously.
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ITEM #3 - Ernoloveas to be Heard - None.
ITEM 114 - ActiQn Items
a.} Review and Action on Employee Requests for Years of Service Pension - None.
b) Approval of New Hires as Pension Plan Members
Human Resources Director Mike Laursen said he had reviewed all physician
recommendations and reported ell listed new hires meet Pension Plan criteria.
Member Johnson moved to accept the following employees into membership in the
Pension Plan:
John Schodtler, Customer Svcs Rap
Yvonne Reyniars, Staff Assistant II
James E. McBride, Police Recruit II
Dave Shenk, Police Recruit II
Michael Duff, Mechanic II
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General Services Dept. 11/04/96
Police Department 09/30/96
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General Services Dept. 09/30/96
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Larry K. Jacoby, Police Recruit II
Rodger Gaston, Police Recruit II
Dan Dede, Police Recruit II
Mark Murray, Police Recruit II
Claudette Pascoe, Staff Assistant II
Jack DeShazo. Maintenance Worker I
Deborah Jensen, Equipment Oper, I
Patrick Davis, Equipment Operator I
Rory A. Brodil, Maintenance Worker II
Rose Castilla, Maintenance Worker II
Travis Booker. Custodial Worker
Cameron Hill, Firefighter
Jeanette Terry, Staff Assistant II
Mahshld Arasteh, Engineer III
David Dalton, Police Recruit II
Lynette Counts, Police Recruit II
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Police Department
Police Department
Police Department
Police Department
General Services Dept.
Solid Waste Department
Parks & Recreation Dept
Parks & Recreation Dept
Parks & Recreation Dept
Parks & Recreation Dept
Library
Fire Department
Economic Development
Engineering Department
Police Department
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The motion was duly seconded carried unanimously.
ITEM #5 . Pending/New Business
a) Discuss'ion of draft of periodic examination and call-back procedures
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Mr. Laursen distributed a revision of the Pension Entitlement Review and Re-examination
Procedure draft. In reference to paragraph 3, it was recommended the paragraph state the PAC
(Pension Advisory Committee) only accepts medical or osteopathic doctor opinions. Mr.
Laursen said in the draft, staff proposes to send to those receiving disability pensions, annual
forms. including a medical report form to be completed by a medical doctor regarding related
disability conditions and employment status. Second notices are sent to those who do not
reply within 45 days. Procedures are designed to be fair and allow due process. The PAC will
review these forms and determine if IMEs (Independent Medical Examination) are in order
should medical reports be vague, for example. The ultimate decision will be based on IME
results and occupational therapy opinion. If an IME confirms someone is no longer disabled, the
PAC will make recommendations to the Pension Trustees regarding call-backs. Those who are
subject to call-back have the right to appeal their cases before the PAC prior to being directed
to return to work. The PAC can determine some disabilities are permanent and exempt them
from annual medical review.
Mr. Laursen said the Pension Plan contemplates calling back disabled employees to
pOSitions other than their original classification. Quarterly, staff will review those whose
disabilities were determined by the PAC after January 1, 1996. Staff will compare medical and
occupational therapy Information regarding pensioners with City job openings, with the intent of
filling City positions from the disabled roles when possible. Staff will forward employment
recommendations to the PAC. It was recommended the PAC schedule IMEs prior to ordering
disabled employees back to work.
The Humar.'Resource Department wlll analyze open positions quarterly and consider the
urgency of filling these positions. Staff may propose hiring temporary employees to hold a
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position open until information from the formal quarterly review can be submitted to the PAC.
The City Manager will make the final decision that a position should be filled immediately or can
walt for the call. back process. It was noted the call.back process can be delayed by appeals.
A reference was made to special restrictions on call.backs of disabled former Fire
Department parsonnel. The Pension Plan designates that five positions will be available in the
bargaining unit for disabled firefighters. It was suggested that sixth and future call-backs also
be assigned public safety positions as disabled firefighters forced to work in other jobs could
lose their disability and firefighter certification. It was noted this issue is a subject for union
bargaining.
In response to a question, Mr. Laursen said nothing precludes a call-back from being
assigned a higher paying position. According to the ordinance, the called-back employee will
experience no loss of base pay but the Plan does not address increases in pay.
Member Shepler moved to continue discussion of the Pension Entitlement Review and
Ae-examination Procedure draft until the December 12, 1996, meeting. The motion was duly
seconded and carried unanimously.
January 1997 PAC meeting
Mr. Laursen reported the January 9, 1997, PAC meeting is scheduled on the same day
as an evening City Commission meeting. Consensus was that it did not pose a conflict.
....)
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Update ra tax implications of buy.backs
Mr. Laursen said the Legal and Payroll departments had indicated no staff member is
competent to address the tax implications of buy-backs. As employees are responsible for
considering their personal tax implications, it was felt the PAC should not hire a tax attorney to
address this Issue. Assistant City Attorney Leslie Dougall-Sides stated an attorney's opinion
probably would Include an addendum directing the employee to contact a tax counselor
Individually.
Change of meeting location
Due to construction work planned for City Hall, Mr. Laursen reported the PAC is
scheduled to meet in the Human Resources Conference Room In the Municipal Services Building
from December 1996 through April 1997. The agenda will reflect this change.
ITEM #7 - Director's Reoorts
a) Status of Pension Buy Back Requests
Mr. Laursen reviewed Pension buy-back requests. Regarding employees requesting to
buy-back Pension service time and within PAC parameters: 1) Oonogon . on May 23, 1996,
notified actuarial value for 9.4 years service was $247,854. On July 31, 1996, employee
indicated wish to pursue buy-back subject to current age discrimination lawsuit with City: 2)
Krieger - on May 23, 1996, notified actuarial value for 3.9 years service was $76,063. On
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August 18, 1996, employee formally declined to pursue buy-back and expressed concern
regarding high cost and that 20% of his money remains In the fund; 3) G. Smith - on June 6,
1996, notified actuarial value for 2.0 years service was $41 i 709. On August 6, 1996,
employee formally declined to pursue buy-back; 4) Motley - on June 6, 1996, notified actuarial
value for 4.0 years service was $62,939. On August 16, 1996, employee formally declined to
pursue buy-back; 5) Lovett - on July 23, 1996, notified actuarial value for 2.0 years service
was $40,183. On August 21, 1996, employee indicated wish to pursue buy-back. On
September 19, 1996, employee appeared before PAC, requesting an Installment repayment plan
for his buy-back. The PAC voted to require lump sum payments for all buy-back contributions;
6} Verhoeven - on July 17,1996, notified actuarial value for 3.0 years service was $147,621.
Thirty days have elapsed with no response.; 7) Marotta - on September 17, 1996, notified
actuarial value for 3.0 years service was $65,719. Thirty days have elapsed with no response;
8) SummareU - on September 17, 1996, notified actuarial value for 15.0 years of service was
$79,949. On September 24, 1996, employee formally declined to pursue buy-back; and 9)
McCoy - on September 17, 1996, notified actuarial value for 7.0 years service was $71,100.
Thirty days have elapsed with no response.
Regarding employees requesting to buy-back Pension service time outside PAC
parameters: 1) Charles Selby; 2) Ray Kaval; 3) Tom Taggart; 4) Tom Hackett; 5) Richard Berry;
6) Rosalie Backus; 7) Robert Maran; and 8) Dan Carpenter. An August 16, 1996,
memorandum advised these applicants that their requests were outside PAC parameters and did
not qualify for buy-backs.
On October 10, 1996, Mr. Carpenter submitted a request to the PAC to reconsider.
The item was continued with the understanding that an actuary computation of the buy-back
would be performed. While Mr. Carpenter had received a $3,315.72 refund when he resigned,
the actuarial value was determined to be $2,135. The Pension Plan requires a payback to be
the greater: a) full amount previously distributed plus Interest at rate of 5% per annum from
distribution date to repayment date or b) actuarial present value of accrued benefit previously
forfeited.
Infonnatlonal Item
Mr. Laursen reported a rumor that a disabled pensioner has accepted a canine officer job
with the U.S. Customs department in a position similar to one the pensioner previously held.
The pensioner has 10 days to reply to staWs letter that included a pension entitlement form.
ITEM #8 - Adiournment
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The meeting adjourned at 9:35 a.m.
Pension Advisory Committee
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