08/13/2001 (2)
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PENSION
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Board of Trustees of the, Employees'
Pension Fund
Minutes
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. , . ACTION AGENDA, ,
'. Board of Trustees of the Einp.l,oyees' Pension Fund'
Augu~t 13, 2001
1.' Call to Order -, 1 :08 p.m.
2~ Approval of Minutes:, 7/9/01 - Approved as submitted.
3.' Request for acceptance into membership: Daniel Taro; Anthony. Suggs, Connra
, Tuisku, Robert Sullivan, Richard Banton, Andrea Bass, Raymond, Mlnnloflold, Donn's
Britt, Kathleen McCauley, Thomas ~ears, & Antonio Green - Approved.'
4. Regular Pens!on(s) 'to be granted: Jeffrey Daniels, Leonard Marotta, & Eddie GrUfln .
Approved.
,5. : Penslon(s) to be vested: James Hill - Approved.
6; . Agreem'entwith Capital Guardian Trust Company, serve as domestic large cap'valuo
equity manager for Employees I Pension ,Plan, $ 142,500 . Approved.
7. Administrative expenditure budget for Fiscal Vear 2001-2002 'totaling '$243,728 for
Emp'oyeesf Pension Plan - Approved.. '
8. . Other B~siness - AttorneyCypen recommends no further action re Chief Sid Kleln.s .
request to participate in pension plan. .
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,.'9. Adjourn - 1:18 p~m.
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TRUSTEES OF THE EMPLOYEES~ PENSION FUND MEETING
CITY OF CLEARWATER
, August 13, 2001
Present:
Brian J. Aungst
Ed Hart
Whitney Gray
Hoyt P. Hamilton
William C. Jonson
Chair
Vice-Chair/Trustee
Trustee
Trustee
Trustee
Also present: William B,. Horne II
, Garry Brumback
Ralph Stone
Pamela K. Akin
Lee Dehner
Paul Q'Rourl<e
Cynthia E. Goudeau
Brenda Moses
City Manager
Assistant City Manager
Assistant City Manager
City Attorney
Pension Trustees' Attorney
Human Resources Administrator
City Clerk,
Board Reporter
, The Chair called the meeting to order at 1 :08 p.m. at City Hall.
To provide continuity for research, items are in agenda order although not necessarily
discussed in that order.
iTEM #2 - AODroval of Minutes:
c Trustee Jonson moved 'to approve the minutes of the July 9, 2001, 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 AcceDtDnce into Membership:
The Human Resources Director presented the recommendation of the Pension'
Advisory Committee to approve membership for the employees listed below:
, ,
Daniel Toro, Anthony Suggs, Connie Tuisku, Robert Sullivan; Richard Banton,
Andrea Bass, Raymond Minniefleld, Dennis Britt, Kathleen McCauley, Thomas Fears, &
Antonio Green
Trustee Gray moved ~o accept the recommendation of the Pension A~vjsory
Committee. The motion was duly seconded and carried unanimously.
ITEM #4 - Reauest for Pension:
The Human Resources Director presented the recommendation of the c Pension
Aqvisory Committee that Jeffrey Daniels. Leonard Marotta, and Eddie Griffin be granted
regular pensions under Sectlon(s) 2.393 and 2.397 of the Employees' Pension Plan.
. mpf0801
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08/13/01
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Jeffrey Daniels was employed on January 17, 1972, and his pension service credit
. 'Is effective on that date. His pension will be effective July 1, 2001.
Based,on an average salary of approximately $50,381 per year over the past 5
years, the formula for computing regular pensions, and Mr. Daniels' selection of. the Joint &
Survivor Annuity, this pension will approximate $40,752 annually.
Leonard Marotta was employed on September 26, 1978, and his pension service
credit is effective on April 17, 1980. His pension will be effective August 1, 2001.
Based on an average salary of approximately $46,908 per year over the past 5
years, the formula for computing regular pensions, and Mr. Marotta's selection of the
100% Joint & Survivor Annuity, this pension will approximate $27,183 annually.
Eddie Griffin was employed on April 19, 1976, and his pension service credit is
effective on October' 9, 1976. His pension will be effective August 1, 2001.
Based on an average salary of approximately $62,218 per year over the past 5
years, the .formula for computing regular pensions, and Mr. Griffin's selection of the 100%
Joint & Survivor Annuity, this pension will approximate $41, 711 annually.
The PAC approved these pensions on July 12, 2001. Section 2.393 (p) provides for
normal retirement eligibility when a participant has completed 20 years of credited service
in a type of employment described as "hazardous duty" and further specifically defines
service as a Fire Inspector and Police Sergeant as meeting the hazardous duty criteria. Mr.
Daniels, Mr. Marotta, and Mr. Griffin qualify under the hazardous duty criteria.
. Trustee Hamilton 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 Human Resources Director presented the recommendation of the Pension
Advisory 'Committee that James Hill be allowed to vest his pension under Section(sl 2.397
and 2.398 of the Employees' Pension Plan.
James Hill was employed on June 20, 1988. Mr. Hill terminated from city
employment on May 17, 2001.
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 retirel!1ent.
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08/13/01
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Section 2.393 (p) provides for normal retirement eligibility when a participant has
reached age 55 and completed 20 years of credited service, has completed 30 years of
credited service, or has reached, age 65 and completed 10 years of credited service. Mr.
Hill would have completed 20 years of service and reached age 55 on May 8, 2009. His
pension will be 'effective on June 1, 2009. The PAC approved this request on July 12,
,2001.
Trustee Jonson moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
, .
ITEM #6 - Aareement with Caoital Guardian Trust Companv, serve as domestic larQe cap
value eauitv manaCler for Emplovees' Pension Plan. $142.500
Cash and Investment Manager Steve Moskun gave an update on the pension
performance for quarter ending June 30, 2001. He said the pension plan needs a balance
between stocks and fixed income. Staff conducted a search with the above firms and is
, recommending the Commission chose Capital Guardian Trust Company as the City's
domestic large cap value equity ma,nager for the Employee's Pension Plan.
, ' The Investment Committee recommends that Capital Guardian Trust Company be
funded to start with $30 million. Capital Guardian's management fee is .50 of '1 % on the
first $25 million and .35 of 1 % on the next $25 million. The annual fee for $30 million
would be .50 of 1 % of $25 million ($125,000) plus .35 of 1 % of $5 million 1$17,500) for
a total of $142,500. The source of these funds for investment will be determined as the
Investment Committee rebalances the portfolio.
" Trustee Jonson moved to approve an agreement with Capital Guardian Trust
Company to serve as the domestic large cap value equity manager for the Employees'
. Pe,nsion Plan in the amount of $142,500. The motion was duly seconded and carried
unanimously.
ITEM #7 - Administrative expenditure budQet for Fiscal Year 2001-2002 totalinq $243.728
for Emplovees' Pension Plan
Ih the past, medical exams were paid by the General Fund and were reimbursed via
a transfer to the pension plan. Starting with this budget they will be paid directly to the
pension plan~
Consultants include the following projects: $10,000 Pension Analysis Update,
$10,000 DROP Modeling/Assessment and $10,000 Assessment of Retiree Health Subsidy.
Travel is for members of the Pension Investment Committee to attend the Callan .
training seminar and visit Callan, the pension plan's performance mea'surement firm. The
decrease was caused by due diligence trips staff made in Fiscal Year 2000.2001 that do
not need to be repeated in the next fiscal year. '
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08/13/01
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~ The Actuary conta,ct will be out tor Request for Proposals shortly and an increase in
miscellaneous consulting fees is anticipated.
The legal budget is being increased to reflect actual legal costs.
An Integrated Disability Management project is being funded at $9,000 for phase
one and $10,000 for phase two. '
Reimbursement to the General Fund and the Central Insurance Fund is for the cost
of oversight of the plan and is recognized as revenue to the General Fund and Central
'" Insurance Fund. Reimbursements have been updated to more accurately reflect costs. this
will bring the reimbursements to $80,448. Of this number, $24,288 is Finance, $13,980
is' payroll, and $41,1 80 is Human Resources. The reimbursements will be $ 20, 630 to the
Central Insurance Fund and $59,818 to the General Fund.
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Mr. Moskun said the major change to the budget is that medical examinations will
be charged to the Employee Pension Plan directly.
Concern was expressed regarding the steep increase in' consulting fees and a
recommendation they be phased in was made. '
Trustee Hamilton moved to approve the administrative expenditure budget for Fiscal
. Year 2001-2002 totaling $243,728 for the Employee's Pension Plan. The motion was'duly
seconded. Upon the vote being taken, Trustees Gray, Jonson, Hamilton and Chair Aungst
voted HAye"; ,Trustee Hart voted "Nay". Motion carried.
ITEM #8 - Other Business;
Human Resources Director Paul O'Rourke said Attorney Steve Cypen, attorney
representing the Trustees in Police Chief Klein's request to be admitted into the Pension
Plan, has advised the City that Chief Klein's legal remedies have been exhausted. Mr.
Cyp~n recommends no action regarding Chief Klein's request for a pre-litigation mediation.
City Attorney Pam Akin said Mr. Cypen states the Trustees are prohibited from
,participating in mediation negotiations. She said what is proposed is a closed session. She
stated Mr. Cypen's opinion is there is no need to mediate. '
M'r. O'Rourke sa'id allowing exempt employees to participate in the Pension Plan is
being considered. Some tax, issues are forthcoming which will make it easier for
employees t~ buy back their pension credit. He said this will come back as part of a larger
issue. .
mpf0801
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08/13/01
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Mr. atRourke sald~t today's Commission Worksesslon, there will be some technical
c<?rrectlons, to"the ordinance that were appro,ved by the Trustees and require, the "
. Comnilsslon's approval.
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ITEM Jl9'Adiournment:
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The meeting adjour~ed at 1 :,18 p.m.,
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