11/13/2001 (2)
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"',,B,oard'ofr,ritstees of ~heEmpl~yees'
, . Pension Fund' ' "
Minutes
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ACTION AGENDA
Board 'of Trustees of the Employees' Pension Fund
November 13,' 200 1
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, 1., Call to Order ~ 9:23 a.m.
.2. "Minutes Approval - October 15, 2001 - Approved as submitted.
3. '
,Request for acceptance into membership: Kelly Moos, Pharyn Bannister, Carlton
Greene, Peter Fellman, Dobart Thompson, Rachel Perry, Yolanda Rogers, Dwayne
Hickman, Penny Baughn, Douglas Swartz, Denis O'Connor, Wade Bishop,David
"B'uchhotz, Tashadra Rogers,' Julio Plaza. Approved. \,
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4. ~egular. Pensio,n{sl to b~ granted: Calvin Mizell, Gary Fritts, John W'itcomb -
, Approved.
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5. Penslon(s) to be vested:, Joseph Reckenwald - ApprC?ved. ,
6. Award contract to PrlceWaterhouseCoopers LLP for actuarial services for tile ,
Employees' Pension Plan and other relate,d services for the three year period ending
December 31, 2004, at a total cost not to exceed $94,000 '. Approved.
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7. Approve an expenditure in the estimated amount of $5,000 tO,the law firm' of Gray,
Harris, Robinson, Shackleford. & Farrier for legal services and approve the payment
of $21 0.00 pe~ hour to the law firm of Christiansen & Dehner for attendance at all
future'lnvestment Committee meetings (approximately $5,~OO.00). ~ Approved.
8 Other Busin'ess - Mr O'Rourke reported staff will present proposed changes to the
Pension Plan in January.
, 9. ' Adjourn - 9:33 B.m.
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TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
November 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
Pamela K. Akin
Lee Dehner
Paul O'Rourke
Cynthia E. Goudeau
Patricia O. Sullivan
City Manager
City Attorney
Pension Trustees Attorney
Human Resources Administrator
City Clerk
Board Reporter
The Chair called the meeting to order at 9:23 a.m. at City Hall.
To provide continuity for research, Items are in agenda order although not
, , necessarily discussed In that. ord'er.
ITEM #2 - Approval of Minutes:
Trustee Hamilton moved to approve the minutes of ,the October 15, 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 - RCQuest for Acceptance into Membership:,
Human Resources Administrator Paul O'Rourke presented the recommendation of
the Pension Advisory Committee to approve membership for employees: Kelly Moos,
Pharyn Bannister, Carlton Greene, Peter Fellman, Dobert Thompson, Rachel Perry, Xolanda
Rogers, Dwayne Hickman, Penny Baughn, Douglas Swartz, Denis O'Connor, Wade Bishop,
David Buchhotz, Tashadra Rogers, Julio Plaza
Trustee Jonson moved to accept the recommendation of the Pensio.n Advisory
Committee.' The motion was duly seconded and carried unanimously.
ITEM #4. ReQuests for Pension
Mr. 0' Rourke presented the recommendation of the Pension Advisory Committee
that Calvin Mizell, Gary Fritts, and John Whitcomb be granted regular pensions 'under'
Sections 2.393 and 2.397 of the Employees' Pension Plan.
Calvin Mizell was employed on Juno 17, 1976, and his pension service credit is
effective on December 18, 1976. His pension will be' effectlvo on November 1, 2001.
mpf1101
11/13/01
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Based on' an average salary of $36,500 per year over the past 5 years, the formula for
computing regular pensions, and Mr. Mize//' s selection of tile 100 % Joint & Survivor
Annuity, this pension will approximate $25,359 annually.
Gary Fritts was employed on June 18, 1977, and his pension service credit is
effective on that date. His pension will be effective on January 1, 2002. Based on an
average salary of $38,484 per year over the past 5 years, the formula for computing
regular pensions, and Mr. Fritts' selection of the 100% Joint & Survivor Annuity, this
pension will approximate $25,457 annually.
John Whitcomb was employed on January 13, 1972, and his pension service credit
, is effective on that date. . His pension will be effective on February 1, 2002. Based on an
average salary of $29,731 per year over the past 5 years, the formula for computing
regular pensions, and Mr. Whitcomb's selection of the Ufe Annuity, this pension will
approximate $24,530 annually.
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11/13/01
The PAC (Pension Advisory Committee) approved these pensions on October 11,
2001. 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.
Mizell and Mr. Fritts qualify under the age 55 and 20 years of service criteria, and Mr.
Whitcomb qualifies under the 30 years of service criteria.
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TrusteeGray moved to grant regular pensions for Calvin Mizell, Gary Fritts, and
John Whitcomb be granted under Sections 2.393 and 2.397 of the Employees' Pension
Plan, as approved by the PAC accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
ITEM '#5 - Request to Vest Pension
Joseph Reckenwald was employed by the City on October 21, 1974 and
terminated City employment on November " 2001. The Employees Pension Plan provides
that should an employee cease to be an employee of the City after completing te'n or more
years of creditable service and pension participation, then such employee shall acquire a
vested interest in the retirement benefits. Vested pension payments commence on the
first of t~e month following the month in which the employee normally would have been
eligible for retirement. Section 2.393Ip) 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. Reckenwald would have completed 20 years ot service and reached aged 65
. on June 2,.2004. His pension will be effective on July 1, 2004.
Trustee Hamilton moved to allow Joseph Reckenwald to vest his pension under
Sections 2.397 and '2.398 of the Employees Pension Plan as approved by the Pension
Advisory Committee. The motion was duly seconded and carried unanimously.
,r)
ITEM #6 * Award contract to PriceWaterhousoCoopers LLP for actuarial services for the
Employees' Pension Plan and other related services for the three yoar period ending
December 31, 2004, at a'totid cost not to exceed $94,000.
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The a-member evaluation committee, composed of 3 union representatives, one
Pension Advisory Committee representative, and 4 management representatives reviewed
responses to RFP 61-01 and chose PriceWaterhouseCoopers Ll.P. The firm, previously
'Coopers & Lybrand, has performed actuarial services for the Pension Plan for the past 13
years. Fees in the requested "not to exceed" amount include: 1) $19,000, $19,500; and
$20,000 - fixed fees for the annual actuarial report for the three-year period; 2) fee not.to .
exceed $20,000 for a comprehensive review of plan actuarial assumptions; and 3)
actuarial advice to City staff.
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Trustee Jonson moved to award contract to PriceWaterhouseCoopers LLP for
actuarial services for the Pension Plan and other related services for the three-year period
ending December 3', 2004, at a total cost not to exceed $94,000, and that the
appropriate officials be authorized to execute same. The motion was duly seconded and
carried unanimously. . '
ITEM #7 - Approve an expenditure in the estimated amount of'$5,OOO to the law firm of
Gray, Harris, Robinson, Shackleford, & Farrior for legal services and approve the payment
of $210.00 per hour to the law firm of Christiansen & Dehner for attendance at all future
Investment Committee meetings (approximately $5,400.00).
(:;) Staff is reviewing the Pension Plan. As part of the process, several legal issues
need to be reviewed, including analysis of Social Secu'rity obligations under an opt-in
provision and a DROP (Deferred Retirement Option Plan). ,The City has a contract with the
law firm of Gray, Harris, Robinson, Shackleford, & Farrier to perform legal services not
related to pension issues.
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11/13/01
The Trustees of the Employees' Pension Plan approved a budget for the Pension
Plan, which included an estimated $50,000 for legal services. To date, $30,000 has been
committed' to Christiansen & Dehner for legal services. Staff requests authorization to
spend an additional estimated $5,000 from the Pension Plan to allow Kelly Bosecker, Esq.,
from Gray I Harris, et ai, to research the above issues.
Staff also requests approval of an additional estimated $5,400 to .Christiansen &
Dehner for attendance at the Investment Committee meetings.
In response to a question, Human Resources Administrator PaulO' Rourke said
attendance by the Pension Plan's attorney at Investment Committee meetings will assure
fiduciary responsibility and is a standard practice for other Pension Plans. If was
recommended Investment Committee meetings be scheduled on the same day as PAC
(Pension Advisory Committee) meetings so an additIonal trip for the attorney is not
n'ecessary. Mr. O'Rourke said staff will work to coordinate the meetings.
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Trustee Jonson moved t~ approve an expenditure in the. estimated amount of
, $5,000 to the law firm of Gray, Harris, Robinson, Shackleford, & Farrier for legal services
'1 and approve the payment of $210 per hour to the law firm of Christian'sen & Dehner for
attendance at all future Investment Com'mittee meetings (approximately $6,400) from the
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FY 2001/02 budget. The motion was duly seconded. Trustees Gray, Hamilton, Jonson,
and Chair Aungst voted "Aye"; Tru'stee Hart voted "Nay," Motion carried.
, " It was recommended the motion reflect a requirement to coordinate PAC and
",' Investment Corrmiittee meetings 'to save charges for several hours of travel time.' Finance
',', ,Adminh~trator Margie Simmons said scheduling Investment Committee meetings already is'
quite complicated and difficult as travel schedules for several investment consultan~s to'
attend each meeting already must be coordinated. Pension Trustee Attorney Lee Dehner
said his,firm' wi,lI accommodate, any schedule and will try to schedule another area client to
. divide trav~1 expenses. ' '
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~:'>~ ," '." ITEM #8 - Other Business
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..,' Mr. O'Rourke reported staff will present proposed changes 'to the Pension Plan in
Ja~uary . ' I
ITEM #9 - Adjournment
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, The meeting adjourned at 9:33 a.m.
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Chair. (/ L \
Board of Pension Trustees
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