01/12/1998 (2)
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PENSION
(TRUSTEES)
Board of Trustees of the Employees'
Pension Fund
Minutes
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ACTION AGENDA ,
,Board of Trustees of the Employees' Pension Fund
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January 12, 1998
1. 1 :08 p.m.
2. Approved as submitted.
3. Approved.
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,4. Approved.
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5. Approved.
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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.,
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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..
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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
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Fl~stAmendment to 'Ag~eem~nt
with C.oopers & Lybrand to
perform .1/1/98 Actuary Valuation
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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.
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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
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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.
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01/12/98
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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.
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01/12/98
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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.
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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
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01/12/98
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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.
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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.
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City Clerk
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