05/03/1999 (2)
PENSION
(TRUSTEES)
Board of Trustees of the Employees'
Pension Fund
I' Minutes
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7. ' Requ'est to buy back previous pension service credit: David Krieger - Continued to
6/1/99. '
t:') 8. Other Business - None.
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ACTION AGENDA
Board of Trustees of the Employees' Pension Fund
May 3, .1999
1., Call to Order - 9:02 Bi.m.
2. Approval of Minutes: 4/12/99 & 3/26/99 joint meeting with PAC - Approved as
submitted.
3. Request for acceptance into membership: Vince Kirkland, Marianna Chmiel, Nicholas
Fritz, Thomas Lulek, Kenneth Euler, David Goldberg, Thomas Dawe, Melissa Harris &
~tevEm Carrao - Approved.
4. Regular Pensions to be granted: David H. Main, Zerry Littles, Richard Helphinstine,
Kenneth Donagan & Robert G. Jones - Approved.
5. Pensions to be vested: Rhett Morgan & John Tucker - Approved.
6. Request to buy back previous pension service credit: Leonard Marotta - Continued to
6/1/99.
9.
Adjourn - 9:25 a.m.
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TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITV OF CLEARWATER
May 3, 1999
Present:
Brian J. Aungst
Ed Hooper
J. B. Johnson
Robert Clark
Ed Hart
Chair
Vi ce-G hair ITru stee
Trustee
Trustee
, Trustee
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Also present: Michael J. Roberto
Pamela K. Akin
> Cynthia E. Goudeau
Patricia O. Sullivan
City Manager
City Attorney
City Clerk
Board Reporter
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The Chair called the J!leetlng to order at 9:02 a.m. at City Hall.
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To provide continuity 'or research, items are in agenda order although not necessarily
discussed in that order.
ITEM #2 - Approval of Minutes:
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Trustee Johnso'1 moved to approve the minutes of the April 1 2, 1999 meeting, and
the March 26, 1999 joint meeting with PAC (Pension Advisory Committee), as recorded
and submitted in written summation by the City Clerk to each Trustee. The motion was
> ' duly seconded and carried unanimously.
ITEf\l1 #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:
Vince Kirkland
Marianna Chmiel
Nicholas Fritz
Thomas Lulek
Kenneth Euler
David Goldberg
Thomas Dawe
Melissa Harris
Steven Carrao
Trustee Hooper moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carr,ied unanimously.
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ITEM #4 - Reauest for Pension:
The City Manager presented the Pension Advisory Committee recommendation that
David H. Main, Zerry Littles, Richard Helphinstine, Kenneth Donagan & Robert G. Jones be
granted regular pensions under Section(s) 2.393 and 2.397 of the Employees' Pension
Plan.
David H. Main was employed on October 7, 1974, and his pension service credit is
effective on that date. His pension will be effective July 1, 1999. Based on an average
salary of approximately $35,107 per year over the past five years, the formula for
computing regular pensions, and Mr. Main's selection of the Life Annuity, this pension will
approximate $25,377 annually.
Zerry Littles was employed on August 2, 1976, and his pension service credit is
effective on that date. His pension will be effective May 1, 1999. Based on an average
salary of approximately $29,248 per year over the past five years, the formula for
computing regular pensions, ~nd Mr. litties' selection of the Joint & Survivor Annuity, this
pension will approximate $18,229 annually.
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Richard L. Helphinstine was employed an April 9, 1979, and his pension service
credit is effective on that date. His pension will be effective May 1, 1999. Based on an
average salary of approximately ,$35,132 per year over the past five years, the formula for
computing regular pensions; and Mr. Helphinstine's selection of the 75% Joint & Survivor
Annuity, this pension will approximate $19,566 annually.
Kenneth H. Donagan was employed on September 11, 1974, 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 $55,752 per year over the past five years, the
formula for computing regular pensions, and Mr. Donagan's selection of the Joint &
Survivor Annuity, this pension will approximate $37,631 annually.
Robert G. Jones was employed on August 28, 1978, 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 $40,335 per year aver the past five years, the formula for
computing regular pensions, and Mr. Jones' selection of the 50% Joint & Survivor Annuity,
this pension will approximate $23,426 annually.
The PAC approved these pensions on April 8, 1999. 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. Messrs. Main,
Littles, and Helphinstine qualify 'mder the age 55 and 20 years of service criteria.
Section 2.393 (p) also 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 Sergeant and
Firefighter/Drive-Operator as meeting the hazardous duty criteria. Messrs. Donagan and
Jones qualify under the hazardous duty criteria.
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Trustee Johnson 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 PAC's recommendation that Rhett Morgan & John
B. Tucker be allowed to vest their pensions under Section(s) 2.397 and 2.398 of the
Employees' Pension Plan.
Rhett Morgan was employed on April 3, 1989, and his pension service credit is
effective on that date. John B. Tucker was employed on March 3, 1975, 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.
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 Officer as meeting the
hazardous duty criteria. Section 2.393 (p) also 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. Morgan would have completed 20 years of service as a Police Officer on April
3,2009. Hifl pension will be effective on May 1,2009. Mr. Tucker would have completed
30 years of service on March 3, 2005. His pension will be effective on April 1, 2005. The
PAC approved these requests to vest pensions on April 8, 1999.
Trustp.e Clark moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
ITEM #6 - Reauest to buy back previous pension service credit: Leonard Marotta
Leonard Marotta was employed by the City as a Police Officer on August 26, 1979.
He resigned on August 26, 1982, and withdrew his $3,890.97 pension contribution.
Under the appropriate Civll Service Rule, Mr. Marotta requested to withdraw his
resignation. Although the request had occurred 1 9 days beyond the 6-month deadline, the
City Manager approved the withdrawal of resignation.
Upon Mr. Marotta's return to work as a Police Officer on April 25, 1983, his
seniority date was adjusted by 241 days, the number of days he was gone, which is the
procedure for employees who withdraw resignations. Also, Mr. Marotta was credited with
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all benefits, Including sick leave and vacation. After requesting to pay back the funds he
had withdrawn from the Plan, the Police Chief advised him this request was denied.
In 1996, Mr. Marotta was advised he could buy back his pension service at a cost
of more than $65,000. On March 11, 1999, Mr. Marotta requested the PAC allow him to
buy back the 3 years. After discussion, the PAC recommended Mr. Marotta be approved
to buy back his years of service plus 5 % annual interest on the $3,890.97 from his
departure date in 1982 until now. This action corrects an inequity caused by an arbitrary
decision. This matter has been forwarded to the Pension Trustees for consideration.
AND
ITEM #7 - Reauest to buy back previous pension service credit: David Krietler
David Krieger was employed by the City as a Police Officer on September 3, 1968.
Mr. Krieger resigned on August 11, 1972, after being denied a leave of absence to attend
school. He withdrew $1,292.62, his $1,615.78 contribution less a 20% administrative
fee. Mr. Krieger return to the City upon completion of his education was delayed as a
hiring freeze was in effect at the time.
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On March 28, 1977, he returned to work as Police Officer and was admitted to the
Pension Plan effective on that date. His request to buy back his pension service was
denied. In 1996, Mr. Krieger was advised he could buy back his pension service at a cost
of more than $76,000. On April 8, 1999, the PAC recommended approval of Mr. Krieger's
request to buy back his years of service plus 5% annual interest for a total of $4,927.91.
This matter was forwarded to the Pension Trustees for consideration.
The City Attorney recommended the Trustees continue Items #6 and #7 until next
month when the board's new counsel will be present and can provide a recommendation.
Staff only received the actuarial numbers related to these requests last Friday.
Trustee Hart moved to continue Items #6 and #7 to June 1, 1999. The motion was
duly seconded.
Andra Dreyfus, representative for David Krieger, reviewed details of his case and
indicated the PAC had approved the request after a thorough discussion. She requested
the Trustees act on the request.
Concern was expressed approval of this request may establish a precedent. The
City Attorney said requests differ and must be considered separately.
It was indicated the difference between the buy back rate of simple interest versus
the actuarial amount must be covered in the plan. Ms. Dreyfus indicated since 1972, the
plan had retained 20% of Mr. Krieger's contribution. The City Attorney recommended
before reaching a decision, the Pension Trustees obtain a legal opinion and consider the
impact on the plan after reviewing the actuarial numbers. In response to a question, Fiscal
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Administrator Margie Simmons indicated the actuarial numbers provided do not account for
, funds withheld from Mr. Krleger's contribution. She will'order a new computation.
, It was felt additional information is necessary before a decision can be made. The
City Attorney agreed a comprehensive evaluation is necessary.
Upon the vote being taken, Trustee Johnson, Clark, Hart, and Chair Aungst voted
,If Aye"; Trustee Hooper voted "Nay/' Motion carried.
ITEM #8 - Other 9usiness - None.
ITEM #9 . Adjournment:
The meeting adjourned at 9:25 a.m.
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