02/16/1999
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PAC
Pension Advisory Committee
Minutes
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ACTION AGENDA
Board of Trustees 'of the Employees' Pension Fund
February 16, ,1999
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2.
3.
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Call to Order - 9:24 a.m.
Approval of Minutes: 1/19/99 - Approved as submitted.
Request for acceptance into membership: Hiep Nguyen, Tim Grosso, Scott Batten,
Michael Vaccal Shirley Kennedy, Kathryn Collart, Kerstin Wilson, Almedina '
Imamovich, Kenneth Schuffert, Steven Katches, Sinta McCall, Harry Kaferlein, Robert
Hays, Louis Lopez, Daron Green & James Cooper - Approved.
Regular Pe'nsion(s} to be granted: Randy Costenbader, Anthony J. Wilhelmi, Amos
Green & Josephine Dixon - Approved. '
Pension(s) to be vested: Joseph W. Reilly, Jr., Sabrina Chute, & James L. McCulley,
Jr.' - Approved" ,
Contract to PricewaterhouseCoopers. LLP for actuarial services for Employees' Pension
Plan & other related services for 3 year period ending 12/31/2001, total cost not to
exceed $105,000 - Approved.
Discuss procedure to be used to select Pension Attorney Services - Joint Meeting of
PAC & Trustees to be scheduled to receive presentations from the respondents of, the
RFP. .
Other Business - None.
Adjourn - 9:29 a.m.
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TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
February 1 6, 1 999
Present:
Rita Garvey
Ed Hooper
J. B. Johnson
Robert Clark
Vacant Seat
Michael J. Roberto
Pamela K. Akin
Cynthia E.' Goudeau
Patricia O. Sullivan
Chair ,
ViceMChair/Trustee
Trustee
Trustee
Trustee
City Manager
City Attorney
City Clerk
Board Reporter
The Chair called the meeting to order at 9:24 a.m. at City Hall.
To provide, continuity for research, Items are in agenda order although not necessarily
discussed in that order.
ITEM #2 - Aporoval of Minutes:
Trustee Clark moved to approve the minutes of the January 19, 1999, 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:
The City Manager presented the recommendation of the Pension Advisory
Committee to approve membership for the employee Is) listed below:
Hiep Nguyen
Tim ,Grosso
Scott Satten
Michael Vacca
Shirley Kennedy
Kathryn Collart
Kerstin Wilson
. Almedina Imamovich
Kenneth Schuffert
Steven Katches
Sinta McCall
Harry Kaferlein
Robert Hays
Louis Lopez
Daron Green
James Cooper
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02/16/99
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. Trustee Johnson moved to accept the recommendation of the Pension Advisory,
Committee. The motion war, duly seconded and carried unanimously.
ITEM #4 - Reauest for Pension:
The City Manager presented the recommendation of the Pension Advisory
Committee that Randy Costenbader. Anthony J. Wilhelmi, Amos Green and Josephine
Dixon be granted regular pensions under Section(s) 2.393 and 2.397 of the Employees'
Pension Plan.
Randy Costenbader was employed on May 2, 1977, and his pension service credit is
effective on that date. His pension will be effective November 1, 1999.
Based on an average salary of approximately $65,088 over the past five years, the
formula for computing regular pensions, and Mr. Costenbader's selection of the Life
Annuity, this pension will approximate $43,517 annually.
Anthony J. Wilhelmi was employed on July 12, 1971, 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 $34,830 over the past five years, the
formula for computing regular pensions, and Mr. Wilhemi's selection of the 100% Joint and
Survivor Annuity, this pension will approximate $25,624 annually.
Amos Green was employed on February 13, 1979, and his pension service credit is
effective on that date. His pension will be effective March 1, 1999.
Based on an average salary of approximately $25,152 over the past five years, the
formula for computing regular pensions, and Mr. Green's selection of the Joint and Survivor
Annuity, this pension will approximate $13,839 annually.
Josephine Dixon was employed on May 14, 1975, and her pension service credit is
effective on that date. Her pension will be effective March 1, 1999.
Based on an average salary of approximately $43,533 over the past five years, the
formula for computing regular pensions, and Ms. Dixon's selection of the Joint and
Survivor Annuity, this pension will approximate $28,426 annually.
The PAC (Pension Advisory Committee) approved these pensions on January 14,
1999.
Section 2.393 (p) provides for normal 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 Captain as meeting the
hazardous duty criteria. Mr. Costenbader qualifies 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 has completed thirty
years of credited service regardless of age. Mr. Wilhemi, Mr. Green, and Ms. Dixon qualify
under the age 55 and twenty years of service criteria.
Trustee Hooper moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
ITEM #5 - ReQuest to Vest Pension:
The City Manager presented the PAC recommendation that Joseph W. Reilly, Jr.,
Sabrina Chute and James L. McCulley, Jr. be allowed to vest their pensions under
Section(s} 2.397 and 2.398 of the Employees' Pension Plan.
Joseph W. Reilly, Jr., was employed on February 19, 1985, and his pension service
credit is effective on that date.
Sabrina Chute was employed on December 12, 1988, and her pension service credit
is effective on that date.
James L. McCulley, Jr.. was employed on July 11, 1988, and his 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.
Mr. Reilly would have completed at least twenty years of service and reached age
55 on February 19, 2005. His pension will be effective on March 1, 2005. Ms. Chute
would have completed at least twenty years of service and reached age 55 on September
7, 2018. Her pension will be effective on October 1, 2018. Mr. McCulley would have
completed at least thirty years of service on July 11, 2018. His pension will be effective
on August 1, 2018. These requests to vest pensions were approve by the PAC on January
14, 1999.
Trustee Hooper moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
ITEM #6 - Contract to PricewaterhouseCoooers LLP for actuarial services for Emplovees'
Pension Plan & other related services for 3 year period ending 12/31/01, total cost 110t to
exceed $105,000
After evaluation of responses to RFP150~98, the five-member evaluation committee,
composed of Human Resources, Public Works Administration, and Finance employees,
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chose PricewaterhouseCoopers LLP. PricewaterhouseCoopers LLP (previously Cooper &
Lybrand) has performed Dctuarial services for the Employees' Pension Plan for the past ten
years.
Fees included in the requested /lnot to exceed/l amount include: fixed fees for the
annual actuarial report of $16,000, $16,500, and $17,000 for the three year period; and
estimated fees for preparation of annual preMretirement workbooks and individual employee
benefit statements, quarterly retirement planning seminars, employee retirement
counseling, and actuarial advice to City staff. Funding is available in the Employees'
Pension Fund.
In response to a question, Finance Administrator Margie Simmons said the
recommendation for award is based on several factors, including qualifications. Cost was
not a primary consideration, although PricewaterhouseCoopers LLP had tendered the
I second lowest bid.
Trustee Johnson moved to approve a contract with PricewaterhouseCoopers Ll.P for
actuarial services Jor the Employees' Pension Plan and other related services for a three
year period ending December 31, 2001 with the total cost not to exceed $105,000. The
motion was duly seconded and carried unanimously.
ITEM #7 - Discuss procedure to be used to select Pension Attorney Services
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The City Attorney reported staff has reviewed the 3 responses received in response
to the RFP (Request for Proposals) issued for PAC attorney services. Consensus was to
schedule a joint meeting of the PAC and Trustees to receive presentations from the
'respondents. If possible, selection will be made at that meeting.
ITEM #8 ~ Other Business - None.
ITEM #9 - Adiournment:
The meeting adjourned at 9:29 a.m.
ATTEST:~~ L ~. 0,-
, . City Clerk
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