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01/12/1998 (2) . . .. , ': I ~, . ' ~ '.~. I . . . .... . ~~ ,.' ..' .' ..', " . r . J' ~, . ' ,4, ' .... ,',' .' .'. . ~ I ~. j . ' : " , ' >~,,' 0' ." . . '," 1 I, \,' .. PENSION (TRUSTEES) Board of Trustees of the Employees' Pension Fund Minutes I . I, , , ! 1 l I' .. \' :1. [)()t!J5 r ;. .~ ",.' . ,'. . . ,', .' I '.' .. '., " . ': . ." . . . '" , .. ~, . . ," ,..". " ' . '" " . " ," ...t', L ... ' : '. I:' ,: .'\ , ' " . . ~f';./:~):" ....,r .' i~ ,. . . ! (: ~ T,', r', ;:"", 'l~J~'" ". .l.~ . i. , .; . '~~p't" . '~~ , ., , <r .,;.. 'l~: ~ :>.:".' .. , '~. , , ~ >;.. . :: ~.. '.. \ . .;" ',.. " ' '.:" ., ~ -;, . =..." . ~i' ~~:!~<\; '.1 " , 1~?' \'l.\ . " /" "". " , , ' . ~ 1 .., > f. .. .. .. . ' '" , ' !', 'I"~ . )~> ., ~~. " \~, ~':" ' " , , ~. . ',: o.,~,), . '''" .. , , .' I ," , ' 01, , I '~ >:'. ..:: :.:"'-I-:\.,:~:-,:...:~. . ~,' , . . > t. , ;'., ". .,. .., ':. .}c"" . . ~ .. " ACTION AGENDA , ,Board of Trustees of the Employees' Pension Fund , , January 12, 1998 1. 1 :08 p.m. 2. Approved as submitted. 3. Approved. ',< ,4. Approved. " 5. Approved. ~4i1:A~-.iM'1~.4\.{,.~~'~~~.i~'"./,,)~?:'.\:;:(:,; .I...:~~:~.~t"\...;~:. < .... ....'+!.-. " : ~. ,I.: '! ~1',......\ ~ ... _ .".. . ,. ~'I :':..;,'.,. '. I . :1 ~ ~ , .~.: ~ .~ " , . " ,1 ". , " 1 . . , Call to order 2; Approval of Minutes: 12/1/97 3. Request for acceptance into membership: , , a) Roy Thomen . b)' Kimberly Staggs c), Diane Manni . dJ Caroi Barden e) Gary Kepner f) Michael Fabian ,g) Anthony W. Hall h) Lori Miller i) Janet Roehrich j} Candy' Hansen k) Tammy R. Clarke I) Kimberly Espinosa m) Russell Shawen I. 4., " Requestfot acceptance into membership: a) Lawrence Huffman b) Sandra Lear c) John Olson dJ Eugene Nyland e) Kathleen McMullen f) George Fatulitis' g) Rui Wang' 5.. , Re'gular Pensions to be grant'ed: E. Ream Wilson Fred Lloyd Samuel Collie Ozell George Robert Papa Ezell Hunt Leonard Gogola Joseph Pidala PFA 1/12/98 I I I I '- .., .,..,.. .:. ~ .' +'. ~. ., ~ 1.. '\.. 1 .~ .' . :\ " ~~'Ji(~;ih;!(i :9:;i~:':\\~:~:,)l~: i,'/} ,}:" , ',';' :""': ;ffi...,"" , '"", /," ," , .", - , " , ,!!~i:;'::'f'i';":;;:,,; .. "" " ~'" l~_I-c~j~'.I" r. . ft:"\1 .~ i " ~1t:',~: :.<, .~- . ;" ~')' ~: ,;:",.' ~.'" . i{::::.':,::" \/.."1"" ';'" .1..,~SI'IoI J C~ . ..'" ,,' , "', ,y " ,Ct._ '. " ," ~, ,I Fl~stAmendment to 'Ag~eem~nt with C.oopers & Lybrand to perform .1/1/98 Actuary Valuation " , and Third Party Administrative ,Services during 1998 for pension plan,'amount 'not to exceed $25,550 6. Approved.. 6. 7., 8. .Other, Busine'ss: Adj ou rnme nt: 7. None. 8. 1:10 p.m. ~L/" '~':~: :~:~c~'c.':, ~~Y~';' . , , ~" , ' " "" ~ i c " , . ;;.' ./' :",". ~ ~ ;~lL~.: ..~.:.:.. > ~> ", '~i;:/':;'" " .},~,~../:.: ..~.fc . '.. .. " ," \ ;1. . ,'; , " . '," iii' ~. ,I ", ".t. " f r . ~', i I 't)": :,( ".j ":";0'" E'" . 'f( . ~' ,. , ' , I ,,' : ' " , .' '!. ,I " ".i- 'f' " . ~. . :' :, .,' :. ", "~ , , " ; )' '. ,I ,j I' ~:ZJ , 'PFA lIJ2/98 " :- '!; ~ ~ ~,;,., ;",.:.}t ~:'.':CI.l: ~... c~;..~:' ."'.... t, 'I" ~,,::~ ~~~,'. .; ~ ~i ...d~~.'" J('H ',',. ~...:;~ l.,.. ...~..... ft t< c.~.:,~.:..........l'jo~~ 't~:'~ '.1" . "(,."i:' ....t.i. <..-~ d\ ,~~ .' .' '.," :'. 'k . . . '. : .' . ..' '.:'....'.. ,'t. :. ~ TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING CITY OF CLEARWATER January 12, 1998 Present: Rita Garvey J. B. Johnson Robert Clark Ed Hooper Karen Seel Michael J. Roberto Pamela K. Akin Cynthia E. Goudeau Patricia O. Sullivan Chair Trustee Trustee Trustee Trustee City Manager City Attorney City Clerk Board Reporter The Chair called the meeting to order at 1 :08 p.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 ,~ Trustee Johnson moved to approve the minutes of the December 1, 1997, meeting, as recorded and submitted in written summation by the City Clerk to each Trustee. The motion was duly seconded and carried unanimously. ITEM #3 - Reauest for Acceotance into Membershio: The City Manager presented the recommendation of the Pension Advisory Committee to approve membership for the employee(s) listed below: a) Roy Thomen b) Kimberly Staggs c) Diane Manni d) Carol Barden e) Gary Kepner f) Michael Fabian g) Anthony W. Hall h) Lori Miller i) Janet Roehrich j} Candy Hansen k) Tammy R. Clarke n Kimberly Espinosa m) Russell Shawsn Trustee Johnson to accept the recommendation of the Pension Advisory Committee. 'The motion was duly seconded and carried unanimously. o mpfO 1 98 1 01/12/98 ~~;j1Jl}h~~<:,'~; ;...:~ ::,:<::, '; :::';:,:\ 'L" ' ;, ~ (~ :-) ITEM 114 . ReQuest for Acceotance into Membershio: The City Manager presented the recommendation of the Pension Advisory Committee to approve membership for the employee(s) listed below: a) Lawrence Huffman b) Sandra Lear c) John Olson d) Eugene Nyland e) Kathleen McMullen f) George Fatulitis g) Rui Wang Trustee Hooper to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ITEM #5 - ReQuest for Pension: The City Manager presented the recommendation of the Pension Advisory Committee that E. Ream Wilson, Fred Lloyd, Samuel Collie, Ozell George, Robert Papa, Ezell Hunt, Leonard Gogola, and Joseph Fidara be granted regular pensions under Section(s) 2.393 and 2.397 of the Employees' Pension Plan. E. Ream Wilson was employed on October 2, 1967, and his pension service credit is effective April 2, 1968. His pension will be effective on April 1, 1999. Based on an average salary of approximately $80,683 per year over the past 5 years, the formula for computing regular pensions, and Mr. Wilson's selection of the 100% Joint & Survivor Annuity, this pension will approximate $67,129 annually. Fred Lloyd was employed on October 29, 1971, and his pension service credit is effective April 29, 1972. His retirement will be effective on February 1, 1998. Based on an average salary of approximately $34.500 per year over the past 5 years, the formula for computing regular pensions, and Mr. Floyd's selection of the Joint & Survivor Annuity, this pension will approximate $24,399 annually. Samuel Collie was employed on March 26, 1968, and his pension service credit is effective on that date. His retirement will be effective on April 1 , 1998. Based on an average salary of approximately $42.375 per year over the past 5 years, the formula for , computing regular pensions, and Mr. Collie's selection of the Joint & Survivor Annuity, this pension will approximate $34,962 annually. Ozall George was employed on January 17, 1966, and his pension service credit is effective on that date. His retirement will be effective on February 1, 1998. Based on an average salary of approximately $41,456 per year over the past 5 years, the formula for computing regular pensions, and Mr. George's selection of the 50% Joint & Survivor Annuity, this pension will approximate $37,452 annually. , \ ! I I ! J , mpfO 198 01/12/98 2 ~ Robert Papa was employed on November 8, 1971, and his pension service credit is affective on that date. His retirement will be effective on February 1, 1998. Based on an average salary of approximately $42,931 per year over the past 5 years, the formula for computing regular pensions, and Mr. Papa's selection of the 50% Joint & Survivor Annuity, this pension will approximate $32,380 annually. Ezell Hunt was employed on September 26, 1969, and his pension service credit is effective on that date. His retirement will be effective on July 1, 1998. Based on an average salary of approximately $33,452 per year over the past 5 years, the formula for computing regular pensions, and Mr. Hunt's selection of the Joint & Survivor Annuity, this pension will approximate $26,522 annually. Leonard Gogola was employed on October 12, 1977, and his pension service credit is effective on that date. His retirement will be effective on February 1, 1998. Based on an average salary of approximately $38,944 per year over the past 5 years, the formula for computing regular pensions, and Mr. Gogola's selection of the 100% Joint & Survivor Annuity, this pension will approximate $21,236 annually. Joseph Pidala was employed on October 10, 1977, and his pension service credit is effective on that date. His retirement will be effective on February 1, 1998. Based on an average salary of approximately $62,782 per year over the past 5 years, the formula for computing regular pensions, and Mr. Pidala's selection of the 10-Year Certain & Life Annuity, this pension will approximate $36,452 annually. ;"~ On November 13, 1997, the PAC (Pension Advisory Committee) approved Mr. Wilson's pension. On December 11, 1997, the PAC approved pensions for Messrs. Lloyd, Collie, George, Papa. and Hunt. Section 2.393 (p) provides for normal retirement eligibility when a participant has reached age 55 and completed 20-years of credited service or has completed 30-years of credited service. Messrs. Wilson and Collie qualify under both criteria; Mr. George qualifies under the 30-years of credited service criteria; and Mr. Hunt qualifies under the age 55 and 20-years of service criteria. On December 11, 1997, the PAC approved pensions for Messrs. Gogola and Pidala. Section 2.393 (p) provides for normal retirement eligibility when a participant has completed 20-years of credited service in a type of employment described as uhazardous duty" and further specifically defines service as a Firefighter or Assistant Fire Chief as meeting the hazardous duty criteria. Messrs. Gogola and Pidala qualify under the hazardous duty criteria. Trustee Johnson to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ITEM #6 - First Amendment to Aareement with CODcars & l vbrand to oerform 111/9 B Actuarv Valuation and Third Party Administrative Services during 1998 for oansion Dlan. amount not to exceed $25.55Q 'J mpf0198 3 01/12/98 '~ To assist with the conversion to a qualified pension plan, staff extended Coopers & Lybrand's contract for actuary services to include the 1996 and 1997 reviews. At that time, the intention was to rebid the service for the 1998 review. In 1996, staff determined other professional services were needed to manage new aspects of the Pension Plan, including counseling employees and dealing with the new plan's regulations and tax considerations. A RFP (Request for Proposals) was issued for Third Party Administrative Services and Coopers & Lybrand was selected. During the RFP process. many firms indicated a desire to perform the actuary and administrative services under a single contract. During the year Coopers & Lybrand has served as Third Party Administrator, staff determined a need to adjust the requirements for services. Staff continues to fine-tune service requirements for the administrative services provider and has worked with Coopers & Lybrand to amend the current contract to a 1-year contract for both actuary and administrative services for 1998. Both services will be bid out for 1999. /"" l,<::a' The $13.000 actuary services fee is the same fee paid for each of the 1996 and 1997 valuations. As of December 18, 1997, fees paid to Coopers & Lybrand as Third Party Administrative services provider during 1997, totaled $12.610. Fees for individual services as part of administrative services are the same as 1997 and are estimated at $12,550: 1) $250 - review and amend (if necessary) pre-retirement booklet; 2) $1,000 - individual 'retirement statements; 3) $4,800 . retirement seminars (20 hours @ $240/hour) 4t $3,500 - options counseling up to 1-hour per retiring employee @$1 DO/hour (estimate 35 employees); and 5) $3,000 - staff advise (12.5 hours @ $240/hour). Funding is available in the Employees' Pension Fund Trustee Hooper to approve the First Amendment to the Consultant Services Agreement with Coopers & Lybrand L.L.P.. to perform the January 1. 1998, Actuary Valuation and Third Party Administrative Services during 1998 for the pension plan, at an amount not to exceed $25,550, and that the appropriate officials be authorized to execute same. The motion was duly seconded and carried unanimously. ITEM #7 - Other Business - None. ITEM #8 - Adiournment: The meeting adjourned at 1: 1 0 p.m. , rt-,_~,: . ' ~ ATTEST:~=-~ C. '1J~. ~-- ~. ~- City Clerk .1fb 1/l ~~ mpf0198 4 01/12/98 ; l , I ! I I',