04/09/1998 (2)� ' . • ,�
. , ' e
� � �_ �. . ' � . . . � .
' . � ' � �. . . . ' � '� • � .
, °'1°' �7r' . .. , ,. , . ... ....� . ., ••.� . , •: � . " ' � . .. . . . , . ' .
. � " . • , , ' ' .
.. t ' ,
F; � . � . .. . . � , , .
- � • ' �. ,' _ . .s • ' , . � � .
i: : . . . , ' . •
,. ,,: , , . � . , . .
��::.: ,� � � . � . ° , � P�nsion Ad�visory Commit�ee � �
,
..� � -� � � � � � Niinutes - � � �
- �. � � .. ;� �. . , , . .. ;
�.; , ,.. �. , � . .
. . . . . ,. .
� . . . � ' � � . E
� S .
• ' . ' .� ,.1' � � • '
. � : � �D�t� � - :. , . .
, , , � _ �
���. , � , � : �
,.; . , � � . .
:., - � . . ,
. ,- - . .� . , . . .�.
. � . - �
},� . � , .._ . - �.��.� ..�� � ..� �
. . . . , � � . . � � �. � � �
.� .. ,.- .., : ., ,, .. . . , ;
�.. , , .. . ,. , ., . :, . ,. , . . ,�
S•, ' .. ' . . . . ' ° . .' ... . ' . �� , i • . .
' S . : , j '' � . . � � i . � ' . � ' �
' � ' � � , � . . � ' � ' , . . 1 . •
� , y ' I � ' � 1 . � '' � , . . . 1 ' '
r ��
� � . . , . . . . �
' . . . , � . ' ' . . � . � " � �
' . • . � . � . ' ' . '' . .
. ' i i ' . . . . . . ° ' i . . . ,
. �
�"'''c"�'.A,i,�r.sa�iwr.,:,r.�a.. • . . , ...�...w ....�.,....o .• . • ` . .. .... . . . .. . � � ._.� ....... ... . . .. ... . . _ ......�.�,... , �. .
� ' S � : . . . . , • ' ' . � . � ' . . . . � .
. ; �
! ,.
�
�.
. ,�
I. '
Present:
p�NSION ADVISORY COMMlTT�� MEETING
CITY �F CE.EARWATER
A�ril 9, 1998
Rita Garvey ChairlMayor
J. B. Johnson Vice ChairlCommissioner
Robert Clark Committes MemberlCommissioner �
Pat Greer Committee Member
Pat Shepler Committee Member
Johri Scacca . Committee Member
Dicit Fitzgerald Committee Member - arrived 9:06 a,m. {foliowing
�ote to reappaint)
Leslie Daugall-Sides Assistant City At#orney
Steve Rasenthal lnterim Human Resources Director
Dobbie Ford . Human Resouress Tecnnician
Patricia O. Sullivan Board Rep�rter
The Chair called the meeting to order at 9:00 a.m. at City Hall.
� To pro�ide continuity 'far research, itetns are in agenda order although not necessarily
discussed in that arder. .
ITEM #2 - Aapraval of Minutes .
��
',; -•� .
Mem�er Johnson moved �o approve the minutes of the regular meeting of March
12, 1998, as recorded and suhmitted in written summatian to each baard member. The
matior� was duly seconded and carried unanimausly.
ITEM �3 - Emplovees to be Heard - None.
� lTEM #4 - Action Items
ai Re�iew and Action on Emplayee Requests far Years a# Service Pension
1 j William H. Zellner - Salid Waste Supervisar I, 5olid Waste Department
2j Jasper W. Campbell, Jr. -�irefighter, 1=ire Department - hazarclous duty provisian
3j Richard J. Jones - Public Service Super�isor, I, P�bf�c Worfcs Department
4j Cal�in Mitchum - Public S�rvices Technician II, P�blic Works Department
Member Clark maved to approve Years af Service Pensions for William H. Zellner,
Jasper W. Campbell� Jr., Richard J. Jones, and Calvin Mitchum. The motion was duly
secandec! and carried unanimously.
�mpac0498
, �
a4109198
. ., ...
i
�
` : �1
r�
b] Approval af New Hires as Pension Pkan Members
Member Greer maved to accept the fioClowing employ�es into membership in thQ
Pension Plan:
Date vf Pension
Empla�ment EEicL, Date.
Catheri�e l�polito, Staff Assistant I Clearwater Gas System 03/02/98 '03/02198
.. Gary 5he#tal, Accaunting Clerk Clearwater Gas System �3102198 03/42/98
Karma Kiilian, Environ. Spec. Supv. Public WorKs Department 03/02/98 43/02/98
: Laura D'Amic�, Accountar�t Clearwater Gas System 03125l98 03/25/98
��� �
r1.''N�
.:>.
The motian was duly secanded and carried unanimously.
ITEM #5 - Pendinct/New B�siness
a� Appointment of Seventh Mem6er
After �he M�rch 12, 1958, mesting, a memorandum was issue to cammittee '
members indicati�g Member Fitzgera�d's term expired on March 2i, 1998. As the City
Commission will consider appointments ta t�e Pension Advisary Committee IPAC} at their
next mesting, it was suggested it may be mare a�propriate ta cansid�r this issue on May
14, 1998.
Consensus was to appoint the seventh meml�er toclay,
It was suggested this position's tsrm be ex#ended slightly so future "se�enth
member" appointments are made after the City Commission considers their representation.
Member Johnson moveci to reappoint Dick Fitzgerafd. The motion was duly
secanded and carriecE unanimously,
b} Vesting Policy
• Human Resaurces Technician Debt�ie F�rd revieweci the vesting pokicy and
procedure drafted by f�rmer Human Resources Dir�ctor Mike taursen in 5eptember 1997.
The drafted policy states Pensian Plan participants, with 7 0 or more years of continuous
Pensio� ser�ice credit who by Plan provisions are �est�d, shall ha�e 6� days from
separation tn submit either form: 1 j AppEication far Vested Rig�ts Pension or 21 Request for
Refund of �mp[oyee`s Pension Contributions. if �a farm is submitted, the Payroll
�epartment shaCi be au#horized to process a Pension refund payment to the farmer
�articipant. Emplay�es who separate fram the City with less than 10 years of ser�ice, wiI!
be refunded their Pension cantril�utions automatically if the Payroll Di�ision does not
rece�ve a refund request within 60 days af their departure.
Ms. Forci statad the City currer�tly has no vehicle to refund Pension contributions,
Those who terminated after tkie January 1, 1996, change to the f'ension Plan, will reaei�e
''� mpac�498
S��j, .
� . - .. .f 1� . .1 ., � ,
il
2
04/09/98
� � 5°�6 simple interest on their total cantrii�ution. Prior to 1995, the Plan had no prov�sion tn
pay interest.
Staff recommends approval af a procedure whereby the Pension Fund refunds
participant cnntributions automatically if the Payroll Division does not receive, wf#hin fi0
days o� separation, art Application #or Vested Righ#s Pansion or Pensinn Re�und Request
from participants who qualify for benefits,
!n res�anse ta a question, Assistant C9ty Attorney �.eslie Dougall-Sides reviewed the
pro�ision to pay interest on ref�nds incEuded in the new Pension Plan� effective .lanuary i,
1996, which s�ecifies ihe payment of 5% simple interest on the total refund, which
i�cludes contributions made prior to '[ 996. Participants wha reco�er tf�eir �ension
cantributions do nat quafify for ratirement benefits,
Mem6er Greer maved to recommend the Pension Trustees apprave the proposed
Vesting �'o4icy �ffecti�e May i'f 998, whereby Pension Plan participants, witf� 10 or mor�
years af continuous Pension service credit who by Plan pravisions are vested, shaf! have 60
days from separation to submit either form: 1} Applicatian f�r Vested Rights Pensian or 2�
Request for Refund of EmpCoyee's Pensian Cor�tributions. If no farm is submitted, the
Payroll Department shall be authorized to process a Pensian refund payment ta the farmer
participant. Employees, who separate fram the City with less than 10 years of service, wil!
, be refunded their Pension contributions automatically i# the Payra�l Divisian does not
receive a rafund request within BO days af their departure. The motion was duly seco�cier!
rf
and carried unanimously.
�r , �.'
"' ITEM #6 - �ir�:ctor's Re arts
Thamas Pearson III
In her April 7, 1998, memorandurr� to the PAC, Ms. Daugall-Sides referred ta City
retiree Thomas Pearson's March 1 fi, 1998, ietter regarding a worker's compensation offset
Risk Management �as sc�eduled to impfement beginning Aprii 1998. Due to the payment
af wage loss benefits, Mr. Pearson`s tot�t payments o� worker's compensation plus
pension benefits exceeded the amount alfnwed under warker's campensatian law, wi�ich is
i 00% of the average montf�ly wage. To recoup the overpayment af $26,708.87, tha Ci�y
is crediting 18.89 months of Mr. Pearson`s benefits ta the City. ln his letter, Mr. Pearson
states the offset,will leave his family without an income and argues a portion of the
manthly benefit in questian should not be withheld s�nce it represents an increased �enefit
basecf on F�is depend�nt child, He requested the PAC rule on the amount of his pension
bene�it and if the dependent child I�enefit was due his daughter.
Ms. Dougall-Sides had reviewed the cases cited by Mr. Pearson, ca5e law, and the
pensian ardi�ar�ce �nds� which Mr. Pearson recei�ed benefiis, and conefudad the ardinance
provides for an increase in the existing ben�fit amount, as apposed to a separate benefit
for dependent chilcfren Past practice has been to issue anly one mnnthly check made
payable to tF�e pensioner. Case law does not suggest differently. Ms, Dougal!-Sides
� mpac0498 3 �41D9196
1
�
. •�
�
���
4
,�,G-
QI
0
concit�ded tha City is legally entitled to offset the entire manthly check amaunt p�ay��blQ to
Mr. Pearson. �
Ms. Dougall Sides said the question regarding child benefits was riot posecf to thc�
courts. T�e Barragan vs. City of Miami case ruled workor's �campensation anr.� pansion
benefits canno# equal more than 100°� af the average'monthEy wage. it was 5i��gc;stacl
the PAC sho�tld have its awn attorney to advise the cnmmittee rsgarding conili�ts hQtw�t.n
errtplayess and the F'lan. �t was felt the issue should be cantinued.
Ms. Dougall Sides said the City had contacted Mr. Pearson regarcling th€s i�sue on
January 17, i 997, He did not contact the PAC u�til March i 998. It was nated tf�r:
dependent chi#d had not received ti�e entitlement directly. Ms. Dougall-Sicles said if ths
intent for a separate k�enefit had exist�d in the, °pnsion Plan, a mechanism wauld havs boen
astab�ished ta separate that k�enefit. fn respGns���to a question, Ms. Ford said Mr. Pearsor�
had ir�dicated previous�y he would return th�:��e funds to tne City once he received Mis
check for appraximately S 144,000 which covered worker's compensation ne was diae.
Member Johnson moved ta accept staff recammendation to r�coup the
overpayrr�ent o# $26,706.87 to Thamas F'sarson IIl by crediting 18.89 month5 of Mr.
Pearsan's Pension benefirs to the City. The mation was duly seconded and carried
unanimously. .
PEacement af d'ssabled wo�kers
Interim Human Resources Directo� Steve Rosenihaf reported 2 disabled em�lr�yse�
t�ave beec� placed in City positions. Staff is v�o�r3;ing ���ith a third employse. H� not�d sorn�
internai resistance by departments due to higi�er salary costs and concem� tHe subje�t
emp[oyees may �oi perform at #�I! patEniial. Staff is drafting a poticy v�ith inc�ntivF� for
departr�ents ta accept tnese a�►oricars ar�s� ir�tegrat� th�m i�t� �,pv� ja�,. Pi��in{� r�isablr=d
tYarkers �� a�aiiablQ �ositior�s sas�es th� Q�r�s+or� Plan s�bst�ntial f��r�ds,
The ne� PAC meetins� i� sch�dul�� f�r !�lay iG, i���.
iT�#ti�9 �7 - Adio�r-r�mer��
Tfi� �ra��rr� �}�rra�d �t �3:�U a,ra�.
,Ar�S;:�
,��r ��� ���f ,, ��'
� .Jv%�'i" / d/.�• i�!'.�
� ��+'f)d�i �'i�'r?Q1Ti�i.-'T
1Rl�:r�Ct1�e•�
,
�
r �� ��
� },, � �3,'� � ����
fi��u
��nsiflrt �.�vas•�r;+ ��rs�mxtZ�� �
'�I.q.�J,�J
m
:,