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'Boatdof Trust~es of the 'Employees~
,Pension Fund
Minutes
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, , ACTION :AGENDA, ,
Board of Trustees of the Employees' Pension Fund
, SpECIAL MEETING - 'January 25, 2001
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Call to Order
9:03 a.m.,
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Request,for lTleimbership In Pension Plan - Pollce Chief Sidney Klein & Deputy Chief
William Baird - Baird's request tabled; Klein,'s request denied. ,', '\" '
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Adjourn '- 9:34 a.m.,
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TRUSTEES OF THE EMPLOYEES' PENSION FUND SPECIAL MEETING
CITY OF CLEARWATER
January 25, 2001
Present:
Brian J. Aungst
J. B. Johnson
Ed Hart
Robert Clark
F. David Hemerick
Chair
Vice-Chair/Trustee
Trustee '
Trustee
Trustee
Also present: William B. Horne II
Pamela K. Akin
Stephen Cypen
Pa'ul O'Rourke
Cynthia E. Goudeau
Interim City Manager
City Attorney
Attorney
, Human Resources Administrator
City Clerk
The Chair called the meeting to C?rder at 9:03 a.m. at City Hall.
ITEM - Reauest for membership in Pension Plan - Police Chief Sidney Klein & Deputy Chief
William Baird
On May 30, 2000, a letter was received from Andra Dreyfus, attorney for Police
Chief Si~ney Klein, requesting he be al10wed to participate in the City of Clearwater
Employees', Pension Plan (EPP). The request was predicated upon Chief Klein's request to'
participate in the Police Supplemental Pension Plan to which he has made application on '
numerous occasions. 'Various opinions received over the years indicate that Chief Klein can
not participate in the supplemental pension plan unless he is a member of a defined benefit
plan'5uch as the EPP.
9n June 14, 2000, Ms. Dreyfus submitted a letter requesting that Deputy Police
Chief William Baird also be allowed to participate in EPP.
At the same time that Ms. Dreyfus submitted the Chief's request to join the EPP,
she also wrote to the City Attorney indicating a possible conflict of interest with the City's
pension attorneys, Christiansen & Dehner, providing an opinion as to Chief Klein's and
Deputy Chief Baird's eligibility since this firm also represents the Police Supplemental
Pension Plan. 'Scott Christiansen had previously rendered an opinion as to the Chief's
ineligibility for participation in the supplemental plan. The Trustees appointed Stephen
Cypen from the law firm of Cypen & Cypen to render an opinion un these requests.
On January 11, 2001, Stephen Cypen appeared before the Pension Advisory
Committee (PAC) to address his written opinion provided via letters dated October 5, 2000
and December 22, 2000. Mr. Cypen's opif)ion was that neither Chief Klein nor Deputy
Chief Baird are, eligible to participate in the EPP based on the fact that by signing numerous
'mpf01.b01
01/25/01
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Employment Agreement'Lette'rs, they both voluntarily opted not to participate and accepted
the alternative retirer:nent provisions available to them. Based on Mr. Cypen's opinion, the
PAC denied the requests of both Chief ,Klein and Deputy Chief Baird to participate in the
EPP.' ' '
Mr. O'Rourke indicated Deputy Chief Baird has asked that his request be tabled.
Mr. Cypen reviewed his background and experience in dealing with pension issues.
He has reviewed additional material sent to him. However"his opinion that Chief Klein is
. ineligible due to voluntarily opting out of the pension plan remains unchanged. He did not
address whether or not the Chief could have legally been excluded from the plan.
. '
, Mr. O'Rourke i~dicated the many documents provided give a history of opinions that
the Police Chief has no standing for admittance into the Pension Plan. In response to a
questi,?n, Mr. O'Rourke reported the PAC unanimously recommended denial of the request.
Andrea Oryfus, representing the Police Chief, gave background relating to the
Chief's request., 'The Chief is not seeking to participate without paying. He was never
given the opportunity to participate in the plan, the'refore never waived his right to
participate., She stated the Chief ha's a constitutional right to participate in the plan.
In response to a question, Ms. Dryfus, explained why she believed the Chief has a
, constitutional right to participate in the plan. Her opinion is that the City's Ordinance is in
conflict with State Statute and therefore would fall. She stated, Mr. Cypen's opinion,
regarding the Chief 'opting out of the plan, is based on a part of the statute that has been
repealed. Sf:1e stated the Chief did not opt out as he was never given the opportunity to
participate. In response to a question, she indicated she does not have written applications
to the general plan but does have witnesses to discussions to get into the plan. Only last
year was the Chief advised that in order to get into the Supplemental Pension Plan he
would have to apply to participate in the Employees' Pension Plan.
Mr. Cypen explained because senior staff are at will employees, they participate in
. defined contribution plans that provide portability instead of defined benefit plans such as
the Employees' Pension Plan. State Statute requires, in order to participate in the
supplemental pension plan, the participants belong to a defined benefit plan.
Discussion ensued regarding varying opinions over the years regarding the Chief's
ability' to participate in the Supplemental 'Pension Plan and whether he should have been
given an opportunity to opt out of the General Employees' Pension Plan.
Trustee Johnson moved to deny Police Chief Sidney Klein's request for membership
in the Employees' P~nsion Plan. The motion was duly seconded and carried unanimously.
mpf01 b01
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01/25/01
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hi response to 8'qu8stion from Mr. O'Rourke; consensus 'was to hold the
present~tions by the City, Manager Search firms at a location other than Chambers.
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Ih response to a"question, the City Attorney reported Mr. Cypen is ,paid hourly and
" his 'fee does not come'out of the,fees paid to 'the Trustees contracted attorney finn.
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''the 'meeting adjourned at 9,:34 a.m.
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