09/14/1998 (2)
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PENSION
(TRUSTEES)
Board of Trustees of the Employees'
Pension Fund
Minutes
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1. Call'to order
1. 1 :37 p.m.
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ACTION AGENDA
Board of Trustees of tho Employnas' Pension Fund
S,eptember 14, 1998
2. Approv~1 of Minutes: 8/31/98
2. Approved as submitted.
3. ' Request for acceptance,
into membership:
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3. Approved.
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a) Dale Chappell
,b) Gray Joyce
c) Jeffrey Palmer"
d) LaDrea Young
e) Carol McAnally
f} Joseph Gabay
g) Robert Strieder
h) Linda Truehaft
i) Linda Galioto
j) Mary Ann Stuart
k} Robert Postell
I) Dexter Waters
m) Willie McGee
n) Anthony Gammon
0) Tyrone Floyd
p} Terrance R. Labelle
'q) 'Brett Faulk
r) Yvonne Becker
s} David Robertshaw
t) Kyle Resler
u} Robert Furman
v) Virginia G. Gallon
w) Sharon Marzols
x) Robert Young
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4.
Regular Pensions to be granted:
Richard G. Howard
Robert D. Pease
Stephen M. Brooks
AHen O. Hicks
Lucinda A. Hicks
Carolyn M. Moore
4. Approved.
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5. ,Pensions to be vested:
under, Sees. 2.397 & 2.398 of
, current plan:
Wnllam Held
..John Haffkoss
Gretchen Bush
under Sees. 2.396 & 2.407 of old
plan:
John ,Amlro
1 W~lIiam Mooney
6.
Approve administrative'
'expenditure budget for City of
Clearwater Employees' Pension
Plan
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Other Business:
Adjournment:
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5. Approved.
6. ' Approved.
Directed staff to proceed with
obtaining outside counsel, for Trustees
. & PAC, .
7. None.
8. 2:08 p.m.'
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TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
September 14, 1998
Present~
Rita Garvey
Ed Hooper
J. B. Johnson
Robert Clark
Karen Seel
Michael J. Roberto
Pamela K. Akin
Cynthia E. Goudeau
Gwen Legters
Chair'
Vlce-Chairffrustee
Trustee
Trustee
Trustee
City Manager
City Attorney
City Clerk
Board Reporter
The Chaircalled the meeting to order at 1 :37 p.m. at City Hall,
To provide continuity for research, items are in agenda order although not necessarily
discussed fn that order.
ITEM #2 - Aporoval of Minutes
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Trustee Clark moved to approve the minutes of the August 31, 1998, 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 Acceptance Into Membership:
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The City Manager presented the recommendation of the Pension Advisory
Committee to approve membership for the employee(s) listed below:
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a) Dale Chappell
b) Gray Joyce
c) Jeffrey Palmer
d) LaDrea Young
e) Carol McAnally
1) Joseph Gabay
g) Robert Strieder
h) Linda Trueheft
i) Linda Galioto
n Mary Ann Stuart
k) Robert Postell
I) Dexter Waters
m) Willie McGee
n) Anthony Gammon
0) Tyrone Floyd
p) Terrance R. Labelle
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09/14/98
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q) Brett Faulk
r) Yvonne Becker
s) David Robertshaw
t) Kyle Resler
u) Robert Furman
v) Virginia G. Gallon
w) Sharon Marzola
x) Robert Young
Trustee Johnson moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carrIed unanimously.
ITEM #4 - Reauest for Pension:
The City Manager presented the recommendation.of the Pension Advisory
Committeo that Richard G. Howard, Robert D. Pease, Stephen M. Brooks, Allen O. Hicks,
Lucinda A. Hicks, and Carolyn M. Moore be granted a regular pensions under Section(s)
2.393 and 2.397 of the Employees' Pension Plan.
Richard G. Howard was employed on April 17, 1972, and his pension service credit
is effective that date, His pension will be effective on August 1, 1998.
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Based on an average salary of approximately $49,580 per year over the past five
years, the formula for computing regular pensions, and Mr, Howard's selection of the Joint
and Survivor Annuity, this pension will approximate $35,795 annually.
Robert D. Pease was employed on June 12, 1978, and his pension service credit is
effective that date. His pension will be effective on August 1, 1998.
Based on an average salary of approximat~ly $41,11 5 per year over the past five
years, the formula for computing regular pensions, and Mr. Pease's selection of the 100%
Joint and Survivor Annuity, this pension will approximate $22,380 annually.
Stephen M. Brooks was employed on April 19, 1967, and his pension service credit
is effective that date. His pension will be effective on August 1, 1998,
Based on an average salary of approximately $51,858 per year over the past five
years, the formula for computing regular pensions, and Mr. Brooks' selection of the Joint
and Survivor Annuity, this pension will approximate $37,236 annually,
Allen O. Hicks was employed on April 19, 1967, and his pension service credit is
effective that date. His pension will be effective on August 1, 1998.
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Based on an average salary of approximately $50,556 per year over the past five
years, the formula for computing regular pensions, and Mr. Hicks' selection of the Life
Annuity, this pension will approximate $46,762 annually.
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Lucinda A. Hicks was employed on April 26, 1967, and her pension service credit is
effective that date. Her pension will be effective on August 1, 1998.
Based on an average salary of approximately $31,304 per year over the past five
years, the formula for computing regular pensions, and Ms. Hicks' selection of the Life
Annuity, this pension will approximate $28,414 annually.
Carolyn M, Moore was employed on March 26, 1973, and her pension service credit
is effective November 30, 1973, Her pension will be effective on September 1, 1998.
Based on an average salary of approximately $57,003 per year over the past five
years, the formula for computing regular pensions, and Ms. Moore's selection of the 100%
Joint and Survivor Annuity, this pension will approximate $37,672 annually.
These pensions were approved by the PAC on August 13, 1998,
Section 2.393 (p) provides for normaJ retirement eligibility when a participant has
completed twenty years of credited service in a type of employment described as
"hazardous duty" and further specifically defines service as a Police Officer as meeting the
hazardous duty criteria. Mr. Howard, Mr. Pease, and Mr. Brooks qualify under the
hazardous duty criteria.
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Section 2.393 (p) also provides for normal retirement eligibility when a participant
reaches age 55 and has completed twenty years of credited service or when the participant
has completed thirty years of credited service regardless of age. Mr. Hicks and Mrs. Hicks
qualify under the thirty years of service criteria. Ms. Moore qualifies under the age 55 and
twenty years of service criteria,
Trustee Clarl< moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
ITEM #5 ~ Reauest to Vest Pension:
The City Manager presented the recommendation of the Pension Advisory
Committee that William Held, John Haffkoss, and Gretchen Bush be allowed to vest thoir
pensions under Section(sl 2.397 and 2.398 of the Employees' Pension Plan and that John
Amiro and William Mooney be allowed to vest their pensions under Section(s) 2.396 and
2.407 of the old Employees' Pension Plan.
William C. Held, Jr. was employed on November 9, 1981, and his pension service
credit is effective that date. His pension will be effective on December 1, 2001.
John Haffkoss was employed on December 19, 1983, and his pension service credit
Is effective that date, His pension will be effective on January 1, 2004.
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Gretchen A. Bush was employed on November 21, 1977, and her pension service
credit is effective that date. Her pension will be effective on September 1, 2002.
John Amiro was employed on March 28, 1977, and his pension service credit is
effective that date. His pension will be effective on March 29, 2007.
William Mooney was employed on December 10, 1979, and his pension service
credit is effective that date. His pension will be effective on December 11,1999.
Both the previous and current Employees' Pension Plans provide that should an
employee cease to be an employee after completing ten or more years of creditable service
(pension participation), then such employee shall acquire a vested interest in the retirement
benefits. Under the current plan, vested pension payments commence on the first of the
month following the month in which the employee normally would have been eligible for
retirement. Under the old plan, pensions were effective the day following the date the
employee would have been first eligible to retire.
Mr. Held would have completed at least twenty years of service and reached age 55
on November 9, 2001. Mr. Haffkoss would have completed at least twenty years of
service and reached age 55 on December 19, 2003, Ms. Bush would have completed at
feast twenty years of service and reached age 55 on August 8, 2002. Mr. Amiro would
have completed at least thirty years of service on march 28, 2007. Mr. Mooney would
'dC~ have completed at least twenty years of service and reached age 55 on December 10,
r::';,1 1999.
These requests to vest pensions were approved by the PAC on August 13, 1998.
Trustee Hooper moved to accept the recommendation of the Pension Advisory
Committee. The motion was dUly seconded and carried unanimously.
ITEM #6 - Approve administrative exoenditure budQet for City of Clearwater Emplovees'
Pension Plan
The Employee' Pension Plan has assets (investments) totaling $395 million (market
value) as of 6/30/98. This is an increase of $60 million over last years' number. For the
year ending 6/30/98 the plan had a rate of return of 18.40%.
Money Manager, Safekeeping Service, Pension Administrator and Actuary fees are
all set by contracts approved by the trustees and are not included in this administrative
budget.
Travel and training is for members of the Pension Investment Committee to attend
the Callan training seminar, visit Callan, the pension plan's performance measurement firm,
and a due diligonce visit to one of the money managers.
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Printing and Binding is for the statutorily required annual information distribution to
the members of the plan.
Medical Bills is for the medical services the Pension Advisory Committee authorizes.
Reimbursement to the General Fund is for the cost of oversight of the plan and cost
of issuing pension checks, New for this year is an amount to cover administrAtive
oversight costs incurred by Human Resources and Legal.
Steve Moskun, Finance Department Cash and Investments Manager, stated a
budget is proposed so individual items do not have to be brought forward for Trustees
approval. Increase in reimbursement to the General Fund is proposed to recognize the
costs incurred by the Legal Department and Human Resources Department associated with
the pension plan. Last year only the Finance Department was reimbursed for the cost of its
work regarding the pension plan. Providing a breakdown, Mr. Moskun estimated about
$5,000 is budgeted for Legal; $11,500 for Finance; and about $9,500 for Human
Resources. In the past, the General Fund supported the pension plan with no
reimbursement.
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Discussion ensued regarding whether the PAC should have separate counsel to
avoid placing undue burden on City staff, and to have the ability to seek opinions in a
timely manner. Trustees expressed interest in hiring pension counsel to advise the PAC
and the Pension Trustees. The Legal Department would continue to attend PAC meetings
, as the City's representative. Finance Director Margie Simmons stated this would be an
additional administrative expense to the pension plan. Discussion ensued regarding the
selection process,
Trustee Johnson moved to direct staff to proceed with obtaining outside counsel for
the Pension Advisory Committee. The motion was duly seconded and carried unanimously.
Staff will prepare a Request for Quotation for professional services, going through
PAC for recommendations,
Trustee Clark moved to approve an administrative expenditure budget for the City of
Clearwater Employees' Pension Plan. The motion was duly seconded and carried
unanimously.
ITEM #7 - Other Business: - None.
ITEM #8 - Adjournment:
The meeting adjourned at 2:08 p.rn,
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ATTEST: )'2t:iY~
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