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PAC
4.: Pension Advisory Committee
Minutes
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PENSION ADVISORY COMMITTEE MEETING
CITY OF CLEARWATER
April 8, 1999
Present: Brian Aungst Chair/Mayor
J. B. Johnson Vice Chair/Commissioner
Pat Greer Committee Member
Pat Shepler Committee Member
John Scacca Committee Member
Ed Hart Committee Member/Commissioner
Absent: Dick Fitzgerald Committee Member
Also Present: Leslie Dougall-Sides Assistant City Attorney
Paul O'Rourke Human Resources Administrator
Rick Ebelke Human Resources Assistant Director
Debbie Ford Administrative Analyst
Patricia 0. Sullivan Board Reporter
The Vice-Chair called the meeting to order at 9:05 a.m. at City Hall.
To provide continuity for research, items are in agenda order although not necessarily
discussed in that order.
ITEM #2 - Selection of New Chair
Member Greer moved tc appoint Mayor Aungst as PAC (Pension Advisory
Committee) Chair. The motion was duly seconded and carried unanimously.
ITEM #3 - Approval of Minutes
Member Johnson moved to approve the minutes of the regular meeting of March
11, 1999, as recorded and submitted in written summation to each board member. The
motion was duly seconded and carried unanimously.
ITEM #4 - Employees to be--Heard - None.
ITEM #5 - Action Items
a) Review and Action on Employee Requests for Years of Service pensions:
1. David H. Main -- Solid Waste Equipment Operator, Solid Waste
2. Richard Helphinstine - Mechanic II, General Support Services
3. Kenneth Donagan - Police Sergeant, Police Department
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4. Robert G. Jones - Firefighter/Driver Operator, Fire Department
5. Zerry Littles - Public Service Technician 11, Public Works
Member Johnson moved to approve Years of Service Pensions for David H. Main,
Richard Helphinstine, Kenneth Donagan, Robert G. Jones, and Zerry Littles. The motion
was duly seconded and carried unanimously.
b) Review and Action on Employee Requests to Vest Pensions
1. Rhett Morgan - Police Department
Rhett Morgan has resigned his position after being employed by the City for more
than 10 years. He will qualify to receive his reduced pension beginning May 1, 2009.
AND
2. John B. Tucker - Parks & Recreation Department
John B. Tucker has resigned his position after being employed by the City for more
than 24 years. He will qualify to receive his reduced pension beginning April 1, 2005.
Member Greer moved to approve the requests by Rhett Morgan and John B. Tucker
to vest their Pensions. The motion was duly seconded and carried unanimously
c) Approval of New Hires as Pension Plan Members
As of April 1, 1999, the City has 1,659.2 FTEs and 1,750 budgeted positions.
Vince Kirkland, originally hired December 21, 1998, as part time, transferred to full-time
and is eligible for pension as of February 15, 1999. Marianna Chmiel, originally hired
August 17, 1998, as part time, transferred to full-time and is eligible for pension as of
February 27, 1999.
Member Hart moved to accept the following employees into membership in the
Pension Plan:
Date of Pension
Employment Elia._Date
?tlP
Vince Kirkland, Custodial Worker
Marianna Chmiel, Custodial Worker
Nicholas Fritz, Maintenance Worker I
Thomas Lulek, Police Recruit
Kenneth Euler, Police Recruit
David Goldberg, Police Recruit
Thomas Dawe, Police Recruit
Melissa Harris, Police: Recruit
Steven Carrao, Police Recruit
General Support Svcs. 12/21/98
Marina 08/17/98
Solid Waste Department. 03/15/99
Police Department. 03/15/99
Police Department 03/15/99
Police Department. 03/15/99
Police Department 03/15/99
Police Department. 03/15/99
Police Department. 03/15/99
02/15/99
02/27/99
03/15/99
03/15/99
03/15/99
03/15/99
03/15/99
03/15/99
03/15/99
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The motion was duly seconded and carried unanimously.
ITEM #6 - PendingLNew Business
a) David Krieger - Request to Buy Back Pension
In his March 11, 1999 memorandum, David E. Krieger requested to buy back his
pension credit. He was employed by the City on September 3, 1968, resigned August 11,
1972, and was reinstated March 28, 1977. He stated in 1972, his requests for a leave of
absence and for the plan to retain his contribution were denied and he withdrew his
contribution, less a 20% fee. Upon being employed again, he was not allowed to buy back
his pension benefits. After the PAC approved buy backs following the 1996 referendum,
his actuarial buyback amount was computed at approximately.$75,000. He requested the
committee reconsider the cost of his buy back.
It was stated to correct past inequities, the PAC had approved several buy backs for
amounts less than the actuarial computations. It was noted when he resigned, David
Krieger had been cautioned his job may not be available upon his return.
Andra Dreyfus, representative for Mr. Krieger, requested a new buy back amount be
considered. She said in 1972, Mr. Kreiger had withdrawn approximately $1,615.78, his
contribution less a fee. She proposed he repay the amount of his withdrawal plus 5%
interest, offset by the 20% retained by the plan. In response to a question, Administrative
Analyst Debbie Ford said policies from that era cannot be located. It was felt this request
does not relate to a past discrimination, a withdrawal of resignation, or a leave of absence.
In response to a question, Assistant City Attorney Leslie Dougall-Sides said the new
ordinance allows buy backs after any length of absence, with repayment within 2 years of
the amount withdrawn plus 6% interest or the actuarial amount, whichever is greater.
None of today's applicants is in this category. Mr. Kreiger could have taken a leave of
absence had the City Manager or Department Director approved one.
It was felt Mr. Kreiger should not be penalized for resigning his position to complete
his education when a leave of absence was not an option. It was noted Mr. Kreiger had
been willing to return earlier but a hiring freeze was in effect. It was felt the actuarial
numbers presented previously are unrealistic.
Member Shepler moved to recommend approval of reestablishing Officer Kreiger's
Pension Plan credit with repayment of the $1,615.78 he had withdrawn previously, plus
5% interest. The motion was duly seconded.
It was noted shift work had prevented Mr. Kreiger from attending college. It was
stated he had tried to return to his position after 2 years. It was recommended the board
not consider the reasons for resignations to avoid establishing a precedent. Staff cannot
access the City's leave policy in 1972. It was stated the proposed actuarial amount was
outrageously high compared with the application of a simple interest formula.
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,I'-) Upon the vote being taken, the motion carried unanimously.
b) Glenn Weaver - Request to Buy Back Pension
In his March 17, 1999 letter, Glenn Weaver requested to buy back his pension . '
credit. He was employed by the City in 1982, resigned in 1987, and was employed again
in 1989. In 1987, he withdrew his contribution of approximately $9,000. Upon
reinstatement, he was not allowed to buy back his pension benefits. After the actuarial
amount he would owe was estimated to be $75,000, he did not pursue a buy back after
the PAC had approved the practice. He requested the committee reconsider the cost of his
buy back.
Concern was expressed a large number of employees may apply for buy backs if a
new formula is applied. It was stated many had not applied for buy backs before the 1996
deadline as actuarial equivalent estimates were too exorbitant to consider. Ms. Dougall-
Sides said approximately 12 employees could qualify for buy backs. Human Resources
Administrator Paul O'Rourke said Financial Services Administrator Margie Simmons had
indicated approval of today's requests would have little effect on the plan. Concern was
expressed the board consider precedents they may be establishing. It was felt the board
should not consider Mr. Weaver's reason for resignation. Concern was expressed the
pension plan could be impacted significantly if exceptions are permitted.
It was noted the numbers Actuary Steve Metz had submitted regarding Jeff
Harper's buy back had differed significantly from actuarial equivalents provided other
employees seeking this opportunity. It was recommended Mr. Metz be requested to
recalculate the numbers for these applicants using the same factors he had used for Mr.
Harper. It was felt Mr. Harper's case has no bearing on these cases.
Member Johnson moved to recommend the Pension Trustees deny Glenn Weaver's
request to extend his pension plan credit. The motion was duly seconded. Members.
Johnson and Hart voted "Aye"; Members Greer, Shepler, Scacca and Mayor Aungst voted
"Nay." Motion failed.
It was recommended Mr. Weaver be allowed to buy back his pension credit with a
recalculated actuarial equivalent.
AND
c) Georgette Summarell - Request to Buy Back Pension
In her March 29, 1999 letter Andra Dreyfus, representative for Georgette
Summarell, indicated Ms. Summarell wished to buy back her pension credit. Ms.
Summarell was employed by the City in April 1976, resigned in August 1991, and was re-
employed in March 1992, after her February 1992 withdrawal of resignation. In September
1991, her contribution of $26,284.71, less amount due Credit Union, was returned to her.
Upon reinstatement, she was not allowed to buy back her pension benefits.
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AND
d) Camille Motley - Request to Buy Back Pension
In her March 30, 1999 letter, Camille Motley requested to buy back her pension
credit. She was employed by the City in March 1977, resigned in April 1981, and was
employed again in August 1982. In 1981, she withdrew her contribution of
$2,307.87. Upon being employed again, she was not allowed to buy back her pension
benefits. After the PAC approved buy backs following the 1996 referendum, her
actuarial buy back amount was computed at $62,939. She requested the committee
reconsider the cost of her buy back.
Member Greer moved to table Items #6b, #6c, and #6d. The motion was duly
seconded and carried unanimously.
It was requested staff develop a form for easy review that includes all relevant
information regarding a request. It was requested Ms. Simmons consider affects on
the plan should the number of requests increase,
e) Kenneth Davenport - Hearing for Non-jab-connected Disability Pension
Assistant City Attorney Leslie Dougall-Sides said the City is not contesting this
request for a non-job-connected disability pension.
Member Shepler moved that Kenneth Davenport be granted a Non-Job-
Connected Disability Pension effective on a date to be determined based on Mr.
Davenport's .disability which is described as depression; associate problems making
him permanently unable to perform his job and documented by numerous medical
statements of Steven E. O'Neal, PhD, Nancy Simons, PhD, Devyani N. Desai, M.D.,
Walter E. Afield, M.D., Richard Forlizzo, D.C., and Richard J. Daly, M.D., IME
(Independent Medical Exam) physician, with accompanying dates of all the doctor
visits. The motion was duly seconded. Members Johnson, Greer, Shepler, and Chair
August voted "Aye"; Members Scacca and Hart abstained. Motion carried.
f) Lester Rent - Set Hearing Date for Job-connected Disability Pension
Ms. Ford said the applicant has requested this pension hearing go forward.
Member Greer moved to schedule a hearing for Lester Rent's application for a
Job-connected Disability Pension for May 13, 1999, provided the City first receives all
necessary documentation. The motion was duly seconded and carried unanimoucly.
ITEM #6 - Cirector's Reports - None.
The next PAC meeting is scheduled for May 13, 1999.
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