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12/07/1998 (2) , ..' , . " .. ~. " '~", ,: . t , , ," . .;: .', . ,,~,' " ,'..: ' . , '. - .' .' ," .' , ~", , , ' ' " .. " ',' "," .,,', ~ ~ , .,', < .., -"". . ' " ~ ; ~ '," ~ ~' : ",", :', ;,:~:~' :'.' : " c.}'. . ,. I " , . " <I ~. . I . PENSION (TRUSTEES) ~oard of Trustee~ of the Employees' Pension Fund Yvlin utes , , I . I I ., , '. " . ' .,'., " , :.. , " ,. , ' C<,I. ~, ,. ~ ,}. .' .: ~ ' , ,". ' " (. :, .' . " ': . \ Date. . ". ;., '. .1," . . , :, , . :f. ' " , .' :;". {)O(/}! , ' , ~ <, , .' , ',' , c'TI " . " :;;,.,'..1,. I~':.~, ...~ + ; ::,'.~, " .. . ACTION AGENDA Board of Trustees of the Employees I Pension Fund December 7, 1 998 1. Call to Order - 9:25 a.m. 2. . Approval of Minutes: 1 1/2/98 - Approved as submitted. 3. Request for acceptance into membership: Anna Chaplinsky, Daniel Taro, Lisa Murrin, Scott Dempster, Natalie Davis, Peter McCaffrey, Victoria Zenge!, Ken Steinke, Anthony Shaw, Bill Mallette, Antonia Gerli, Timothy Kurtz, Gregory Schuster, Jeffrey Adkisson, Gerald Theisen, Vincent Doran, Harvey Washington, Garry Pritchard, Glenn Igel, Karl Wassmer, Darci Willis, David Barton, & Albert Granville - Approved. 4. Regular Pension(s) to be granted: Richmond Smith, Helen Davis, Jeffrey Kronschnabl, , & Armener White - Approved. 5. Regular Pension(s) to be granted: Jeffrey Harper ~ Approved. 6. Pension(s) to be vested:. Deborah K. Strutt - Approved. 7. Waiver of Vested Pension Rights - Timothy Treble - Approved. '.',.~ ,~ 8. Other Business - None. 9. 'Adjourn ~ 9:46 a.m. " " . / "0'"'' . , - , <,~ 'd . ~ r~ TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING , CITY OF CLEARWATER December 7, 1998 Present: Rita Garvey Ed Hooper J. B. Johnson Robert Clark Karen Seel Chair Vice-Chair/Trustee Trustee Trustee Trustee Also Present: Michael J. Roberto Pamela K. Akin Cynthia E. Goudeau Gwen Legters City Manager City Attorney City Clerk Board Reporter . I The Chair called the meeting to order at 9:25 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily . discussed in that order. ITEM #2 - Minutes Aooroval Trustee Johnson moved to approve the minutes of the November 2, 1998, meeting, ...~ as recorded and submitted in written summation by the City Clerk to each Trustee. The (~1 motion was duly seconded and carried unanimously. ITEM #3 - Reauest for Acceotance into Membership: The City Manager presented the recommendation of the Pension Advisory. Committee to approve membership for the employee(sllisted below: Anna Chaplinsky, Daniel Taro, Lisa Murrin, Scott Dempster, Natalie Davis, Peter McCaffrey, Victoria Zengel,' Ken Steinke, Anthony Shaw, Bill Mallette, Antonia Gerli, Timothy Kurtz, Gregory Schuster, Jeffrey Adkisson, Gerald Theisen, Vincent Doran, Harvey Washington; Garry Pritchard, Glenn Igel, Karl Wassmer, Darei Willis, David Barton, & Albert Granville. Information was requested regarding how many temporary and contract employees are employed by the City. Trustee Hooper moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ~) mpf1298 1 'I 2/07/98 , ~ ITEM #4 - Reauest for Pension: The City Manager presented the recommendation of the Pension Advisory Committee that Richmond Smith. Helen Davis, Jeffrey Kronschnabl. & Armener White be granted regular pensions under Sectlon(s) 2.393 and 2.397 of the Employees' Pension Plan. Richmond Smith was employed on March 11, 1966, and his pension service credit is effective on that date. His pension will be effective April 1, 1999. Based on an average salary of approximately $67,155 per year over the past five years, the formula for computing regular pensions. and Mr. Smith's selection of the Joint and Survivor Annuity, this pension will approximate $60,943 annually. Helen Davis was employed on March 30, 1978, and her pension service credit is effective on that date. Her pension will be effective January 1, 1999. Based on an average salary of approximately $22,931 pcr year over the past five years, the formula for computing regular pensions, and Ms. Davis' selection of the Joint and Survivor Annuity, this pension will approximate $13,034 annually. Jeffrey Kronschnabl was employed on April 17, 1972, and his pension service credit is effective on that date. His pension will be effective November 1, 1998. (':;I;':~ ~~J Based on an average salary of approximately $68,440 per year ovenhe past five years, the formula for computing regular pensions, and Mr. Kronschnabl's selection of the 75% Joint and Survivor Annuity, this pension will approximate $50,215 annually. Armener White was employed on September 26, 1978, and his pension service credit is effective on that date. His pension will be effective February 1, 1999. Based on an average salary of approximately $33,561 per year over the past five years, the formula for computing regular pensions, and Mr. White's selection of the Joint and Survivor Annuity, this pension will approximate $18, 779 annually. These pensions were approved by the PAC on November 12, 1998. Section 2.393 (p) provides for normal retirement eligibility when a participant has reached age 55 and completed twenty years of credited service or has completed thirty years of credited service. Mr. Smith qualifies under both criteria. Ms. Davis and Mr. White qualify under the age 55 and 20 years of service criteria. Section 2.393 (p) also provides for norm,al 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 Pollee Lieutenant as meeting the hazardous duty criteria. Mr. Kronschnabl qualifies under the hazardous duty criteria. .--J mpf1298 2 1 2/07/98 ~ The City Manager said pension is being requested for Jeffrey Kronschnabl, who retired from the Police Department and subsequently accepted a management position with the City. Mr. Kronschnabl will receive Social Security and 401 A income in his new position. Trustee Seel moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ITEM #5 - Reauest for Pension: C) The City Manager presented the recommendation of the Pension Advisory Committee that Jeffrey Harper be granted a regular pension under Section(s) 2.393 and 2.~97 of the Employees' Pension Plan. Jeffrey Harper was employed on October 27, 1969. At the time he was hired, Mr. Harper was not permitted to join the City's Pension Plan. Although there was no provision in the Plan at that time to preclude him from participating, the Assistant City Manager at the time arbitrarily denied him the right to participate. On June 29, 1974, this decision was reversed and Mr. Harper was admitted to the Plan with this effective date. Upon his separation from the City on September 30, 1998, Mr. Harper addressed this issue with City Attorney Pam Akin. This matter was brought before the PAC on October 8, 1998, and approved with the pension eligibility date of October 27, 1969. At that time the PAC was not advised of Mr. Harper's situatiDn. This matter was brought back to the PAC Dn November 12, 1998. Ms. Akin advised the PAC that after a review of this matter and discussion with the City's pension attorney and the actuary, it was determined that Mr. Harper should be given pension service credit back to the October 27, 1969 date, in accordance with IRS regulations. At the conclusion of the discussion, the PAC agreed to forward this to the Trustees for final approval with the pension eligibility date of October 27, 1969, as originally approved by the PAC on October 8, 1998. Mr. Harper's pension will be effective on October 1, 1998. Based on an average salary of approximately $74,604 per year over the past five years, the formula for computing regular pensions, and Mr. Harper's selection of the 100% Joint and Survivor Annuity, this pension will approximate $59,349 annually. Section 2.393 (p) provides for normal retirement eligibility when a participant has reached age 55 and completed twenty years of credited service or has completed thirty years of credited service. Mr. Harper qualifies under the age 55 and 20 years of service criteria. The City Attorney stated it was the pension attorney's opinion that Mr. Harper should be admitted for the time he was precluded from participating. Concerns were expressed with the precedent of paying more than 4.5 years of pension credit to which the employee did not contribute, in addition to the Social Security he will receive for the time he was denied pension. Concern was expressed with the potential exposure to litigation by ,,' '\ ....J mpf1298 3 12/07/98 .,.-, employees with similar experiences. Discussion ensued regarding history of employees being allowed to "buy back" lost pension time with interest. The City Attorney said, while some corrections may be needed with regard to their serviceable time, no employee is in the identical situation of not being admitted for unknown reasons. The City Attorney suggested approving Mr. Harper's regular pension now, less the 4.5 years in question, and examining the issue of the first 4.5 years when the new pension counsel is selected around February 1999. Trustee Clark moved to pay the regular pension owed to Jeffrey Harper, retroactive to his retirement effectivE'} date on October 1/ 1998/ less the first 4.5 years, and to make the payment as expeditiously as possible. The motion was duly seconded and carried unanimously. Discussion of the missing 4.5 years will be scheduled for the next Pension Trustee' s meeting on January 19/ 1999. ITEM #6 - Reauest to Vest Pension: The City Manager presented the recommendation of the Pension Advisory Committee that Deborah K. Strutt be allowed to vest her pension under Section's) 2.397 and 2.398 of the Employees' Pension Plan. . Deborah K. Strutt was employed on April 18/ 1985, and her pension service credit is effective.on that date. The Employees' Pension Plan provides that should an employee cease to be an employee of the City of Clearwater after completing 10 or more years of creditable service (pension participation), then such employee shall acquire a vested interest in the retirement benefits. Vested pension payments commence on the first of the month following the month in which the employee normally would have been eligible for retirement. Ms. Strutt would have completed 30 years of service on April 18/ 2015. This request to vest her pension was approved by the PAC on November 12/ 1998. Her pension will be effective May 1, 2015. In response to a question, Administrative Support Services Administrator Bill Horne said Ms. Strutt is the last of the four City employees who trained with PeopleSoft, to leave City employ. He said Ms. Strutt and one technical specialist have been replaced and are being trained in PeopleSoft support. Trustee Johnson moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. '\ 'J mpf1298 4. 1 2/07/98 ,I . ~ ITEM #7 - Waiver of Vested Pension Riqhts , > The City Manager presented the recommendation of the Pension Advisory Committee that Timothy Treble be allowed to waive his vested pension rights. Timothy Treble was employed as a Police Officer from January 17, 1 987, to May 14, 1998. At such time as he resigned from his employment, Mr. Treble formally requested to vest his pension. Such act!on was approved by the PAC and Trustees. ' On October 26, 1998, Mr. Treble was re-employed by the City as a Police Officer after withdrawing his resignation under provisions of the Civil Service Rules & Regulations. , Upon withdrawal of resignation, an employee's effective hire date and pension 'eligibility date are a~vanced by the number of days the employee was gone, which in Mr. Treble's case was 164. Since Mr. Treble had vested his pension upon resignation, in order for this to occur he has requested his previous vested pension rights be waived. This request was approved by the PAC on November 12, 1998. Upon approval of this request, Mr. Treble's original pension eligibility date of January 17, 1987, will be adjusted by 164 days, making his new pension date June 30, 1987. Trustee Johnson moved that Timothy Treble be allowed to waive his vested pension rights. The motion was duly seconded and carried unanjmousl~'. ITEM #8 - Other Business:' - None. .~ V ITEM #9 - Adiournment: The meeting adjourned at 9:46 a.m. ATTEST:~r:~ . '. City Clerk ,~ mpf1298 5 1 2/07/98