07/14/1999 (2)
",' .
.J q ~..I
,',
':,f:~~.~~';.;':: ; .
:",' ..'
'">,". '
: .~J '
, ','
~. t ,
:'.'1'
",1
j:"tt':'.~ ,. :~'..: J",
jt .'
~ ';
" '
~ ,.
:....
~~ ~~.;:, :...
I~;'" ~" ~' l
't..
i/I,
~1~!: ,
{,>J;~' '.1
,.
"
-F.'::' 'l.'
I ~". ,~ <
.'~' ~ . '.
:.
"
:.~J.-.~: 1:+.,., ",
",
i11'
'\"',-
~. '.' >
{iJ:!: , '.
\.:.,... ., "
J .. " ' , "
;~~. i::, "
t' "
;t('~l,~'
~~::'::>;:"'" "
j';,f'
,:ir: ~. , .
}~'~>:,~;..
.,1." , I
"
,
,~ :
"
I '.q'
.' ,
'.
L.:'
I....., .0+..
,,' :1..,
'.,.I'.1i.
.,
','
~ "f .'
" .
't
',.
1,
"
'"
::'
" l'
~: '.
'..J"'
.'. .
'. .:.
,,'
\' >'
Date
':,'
,)
, . ,
.,'.
. ~ ,:' I..... "
) ~'~..,:.: ~ <
.0,1'
PAC
I'"
,J
..,
",
~~nsion Advisory,Comniittee
Minutes
.'
,',;
"
,;l
;;{87
" '
,.,.
,,'"
~,~"'}
",
"
"
" .
..
, '
, .
, "
PENSION ADVISORY COMMITTEE MEETING
CITY OF CLEARWATER
July 14, 1 999
Present:
Brian Aungst
J. B. Johnson
Pat Greer
Dick Fitzgerald
Ed Hart
Sharon Walton
Chair/Mayor - departed 2:40 p.m.
Vice Chair/Commissioner
Committee Member
Committee Member
Committee Member/Commissioner
Committee Member
To provide continuity for research, items are In agenda order although not necessarily
discussed in that order.
o ITEM #2 - Aooroval of Minutes
Member Johnson moved to approve the minutes of the regular meeting of June 17,
1999, as recorded and submitted in written summation to each board member. The motion
was duly seconded and carried unanimously.
"Q
Absent:
Pat Shepler
Committee Member
Also Present:
Paul O'Rourke
Margie Simmons
Debbie Ford
Lee Dehner
Patricia O. Sullivan
Human Resources Administrator
Financial Services Administrator
Administrative Analyst
Pension Advisory Committee Attorney
Board Reporter
The Chair called the meeting to order at 2:00 p.m. at City Hall.
ITEM #3 - Emolovees to be Heard - None.
ITEM #4 - Action Items
a) Review and Action on Employee Requests for Years of Service Pensions:
1. Duane E. Smith IV - Police Sergeant, Police Department
2. Donald O. Parker - Parking Meter Technician, Public Works
Member Greer moved to approve Years of Service Pensions for Duane E. Smith IV
and Donald O. Parker. The motion was duly seconded and carried unanimously.
b) Review and Action on Employee Requests to Vest Pensions:
1 . Nancy Yank us - Meter Reader II, Customer Service
mpac0799
1
07/14/99
. '
"
~. ",
I"') 'Nancy Yankus has resigned her position after being employed by the City for more
, ",,' than 12 years. She will qualify to roceive her reduced pension beginning March 1, 2008.
Member Greer moved to approve the request by Nancy Yankus to vest her Pension.
The motion was duly seconded and carried unanimously
c) Review and Action on Employee Requests to waive Vested Pensions:
1. Lori Metzner - Librarian I, Library
Lori Metzner was credited pension service credit for time served with the City from
October 25, 1982, to October 30, 1992. She has requested that pension service time be
credited with her current pension service time as an employee of the Library Department
and to continue for such time as she is employed by the City and participates in the
Pension Plan. In a statement signed June 11, 1999, Ms. Metzner waived her rights to a
vested pension with the City based on her original period of employment from 1982 to
1992.
>,
'.
I
l
I
I
l
1
1
!
Member Greer moved to approve waiving a vested pension for Lori Metzner. The
motion was' duly seconded and carried unanimously.
d) Approval of New Hires as Pension Plan Members
0',
100-,
As of July 7, 1999, the City has 1,644.9 FTEs and 1,750 budgeted positions.
Theresa McNeela, Edward Hartman, Daniel Harrison, Lori Metzner, and George Sanores
were hired originally part-time; changed to full-time and eligible for pension as of Pension
eligibility date listed.
Member Greer moved to accept the following employees into membership in the
Pension Plan:
Date of Pension
Emolovment EIiQ. Date
Police Department' OS/27/97
Police Department 07/22/96
Police Department 01/21/97
General Support Services 06/07/99
Fire Department 06/07/99
Library 09/06/94
Marine Department 03/11/98
Police Department 06/07/99
Police Department OS/24/99
Public Works 06/21/99
General Support Services 06/21 /99
Parks & Recreation Dept. 06/21/99
Public Works 06/21/99
, General Support Services 06/21/99
Therese McNeela, Police Aide
Edward Harman, Police Aide
Daniel Harrison, Police Aide.
Earl Ashley, Fleet Service Worker
Elizabeth Lancara, Staff Assistant I
Lori Metzner, Librarian I
George Sanores, Marine Facility Operator
Antoinette DeLuca, Police Info. Tech.
Sylvia Walls, Police Information Tech.
Eric Jenkins, Public Services Tech. I
Luther Mack, Custodial Worker
Rober Mock, Maintenance Worker II
Mark Crellin, Survey Assistant
John Waldman, Air Conditioning Tech.
" ,
U
mpac0799
2
04/24/99
04/24/99
04/24/99
06/07/99
06/07/99
06/05/99
06/05/99
06/07/99
OS/24/99
06/21/99
06/21/99
06/21/99
06/21/99
06/21/99
07/14/99
'~
Lisa Authier, Accounting Clerk General Support Services 06/21/99
Chance Anderson, Public Service Tech. 1 Public Works 06/21/99
Matthew Johnson, Maintenance Wkr. I Parks & Recreation Dept. 06/21/99
06/21/99
06/21/99
06/21/99
The motion was duly seconded and carried unanimously.
ITEM #5 - PendinQ/New Business
a} Early Retirement Issue
"
Human Resources Administrator Paul O'Rourke reported 39 employees between the
ages of 60 and 65 have worked less than 10 years for the City. Prior to 1996, the Pension
Plan had no provision for the collection of retirement benefits prior to the 20th anniversary
of employment. He recommended the PAC (Pension Advisory Committee) attorney and
actuary, Steve Metz, analyze this issue and recommend a course of action. Currently,
older employees can receive an actuarial reduced pension at age 65. Concern was
expressed that amount is significantly reduced and unfair to older workers. It was
suggested the City consider a vested benefit after 5 years of employment.
(~)
Financial Services Administrator Margie Simmons said payments to retirees who
collect benefits before their 20th anniversary of employment are actuarially reduced to
prevent this new benefit from harming the Plan. Mr. O'Rourke said, for example, a 65-
year~old retiring after 10 years of service could receive $229 monthly immediately but
would receive $603 monthly if the person waited until age 75 to begin collecting
retirement benefits.
,')
Concern was expressed plan membership is obligatory for non-exempt positions.
PAC Attorney Lee Dehner said most public plans mandate membership. He said the City's
Plan is unusual as it doe~ not to provide full benefits when members reach retirement age.
Ms. Simmons said if a retiree begins to draw benefits before 20 years have elapsed, the
amount received is reduced actuarially so that lifetime benefits will be the same. She
agreed the total contributions of some retirees in this category would not be returned. It
was noted Social Security recipients are not guaranteed a return on all contributions.
Member Greer moved to request the Pension Trustees to fund an analysis by the
PAC attorney and actuary of Plan retirement benefits that includes a calculation of the
impact of allowing employees to receive full retirement benefits at age 65 after a minimum
of 10 years of employment. The motion was duly seconded and carried unanimously.
b) Discussion Ae: Supplemental Pension Letter
Robert Lockwood referred to his January 2, 1 996, memorandum related to the
actuarial reduction of pension benefits for retirees who worked less than 20 years. He
expressed concern the current plan is not neutral as it reduces benefits by 70% for 65-
year-old retirees who have worked only 10 years.
\~
mpac0799
3
07/14/99
f~ New State Legislation
~
Mr. Dehner reviewed State legislation passed during the last session affecting
Pension Plans similar to the City's. The City's Pension Plan is a General Plan for all City
employees, including firefighters and police officers. The legislation requires adding a
benefit for firefighters and police officers to receive retirement benefits at age 50 after 10
years of service. Reduction of that benefit is capped at 3% per year.
Mr. Dehner said preexisting conditions related to police officers and firefighters also
must be removed. The City can reduce the Worker's Compensation benefit for police
officers and firefighters who receive disability benefits so that payments do not exceed
.100% of the beneficiary's salary. The City also must provide firefighters and police
officers the opportunity to buy-back into the Plan with interest if they are reemployed
within 90 days. Firefighters and police officers who join the military service and return to
their City positions within 1 year of an honorable discharge must be provided up to 5 years
of Plan credit.
c:)
These changes will be paid with State funds that exceed the amount received by
the City in 1997. Mr. Dehner recommended the City implement as many requirements as
possible this year based upon the amount of available funds. He recommended the actuary
calculate the cost of these mandated changes. In response to a question, he said the City
must implement the changes, as State funds become available. The process will continue
next year. Ms. Simmons said the changes benefit no one. In response to a question, she
expressed concern the Plan would be burdened by actuary and legal expenses related to
these changes. Mr. Dehner said the statute is not clear on reimbursement for those costs
but felt related expenses wO!Jld be insignificant.
1
I
I '
Mr. Dehner said changes also require that the rank or pay level of police officers
cannot be reduced if they are reassigned due to a disability.
In response to a question, Ms. Simmons said a review of the Plan's financial
statements will be on August's agenda. The supplemental boards have their own review
committees. Mr. Dehner recommended the PAC choose a member to participate in
meetings with the Firefighters Supplemental Board and Police Officers Supplemental Board.
Consensus was for Member Hart to serve.
ITEM #6 - Director's Reports
Mr. O'Rourke welcomed new Committee member, Sharon Walton.
As Ms. Walton has resigned her position with the City, the PAC's election
committee will reconvene to set up another election.
Mr. O'Rourke said employee contract negotiations are underway with union
representatives. One issue under discussion is the addition of a COLA (Cost of Living
(~)
mpac0799
4
07/14/99
. '",I
.) ", . r ~' ".
o
, ,
\',
,".
.1.'
'I
\~ "
o
o
.,.,. .
Allowance) benefit for Pension Plan beneficiaries. He recommended the actuary analyze
the cost of this benefit for consideration by the City Commission.
Mr. O'Rourke recommended the PAC manual be revised. Mr. Dehner will review the
document and discuss it with PAC members.
In response to a question, Ms. Simmons reviewed the City's 3-year contract with
the actuary, including the negotiation of fees for specific projects. She said the contract's
cost win increase as It had not anticipated services related to legislative changes and
analysis of a COLA benefit. It was felt the COLA should not be considered nor money
spent to analyze it. Mr. O'Rourke said the City must compete to attract and retain good
employees. As the unions had brought forward the proposal, the City needs to analyze it.
'Pension Plans of the State and nearby counties offer 3% COLAs. He recommended the
entire compensation plan be reviewed.
The next meeting is scheduled for August 12, 1999, at 9:00 a.m. ,
Due to Veterans Day, that month's meeting has been rescheduled to November 9,
1999, at 9:00 a.m.
ITEM #7 - Board Members to be Heard
In response to a question, Mr. Dehner said scheduling problems following contract
approval were related to conflicts with other commitments. He did not anticipate future
scheduling conflicts.
I
i
,I
i
ITEM #8 - Adiournment
The meeting adjourned at 2:53 p.m.
~-yA-'\
Chair -cr-
Pension Advisory Committee
-
Bo
mpac0799
5
07/14/99