06/16/2003 (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 - CLEARWATER PENSION TRUSTEES MEETING
Monday\ June 16\ 2003 - 9:08 a.m. - Commission Chambers
ITEM #2 - Approval of Minutes - 5/12/02
ACTION:. Minutes approved as submitted.
ITEM #3 -' Request for Acceptance into Membership: Deborah Lemon. Jeffery Schmitt.
, Joseph MiHer, Kimberly Miller, John Sever, Christoph auf dem Kampe. Kari C,onnor,
Felicia Leonard, Floyd Thurman. Ronald Gideon, Christopher Jenkins, Michael Reynolds,
Clifford Fisher, Mark R. Coffin, Lisa Hobin, Dimitrios Tsoustas, Robert FegleYl Zane
Morris, Sharon McAuley, Eddie Marry, and Michael Olsa.
ACTION: Approved
ITEM #4 - Requests for Pension by Charles A. Howard and John M. Hodgden
, ACTION: Approved ' .
ITEM #5 - Request to Vest Pension: Elizabeth L. Garrett
ACTION: Approved
ITEM #6 - Authorize staff to conduct a search for a firm to provide performance
,measurement and other related services for the Pension Plan
ACTION: Approved
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ITEM #7 - Authorize staff to neaotiate a contract with the firm of Charles D. Hvman &
Company for investment consulting services
ACTION: Approv~d
ITEM #8 - Ratify arid confirm the termination of EPW Investment Manager and the
tra'nsfer of the assets under their manaaement to Northern Trust's Lehman Aggregate
Bond Fund
ACTION: Approved
ITEM #9 - Other Business: - None.
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ITEM #10 - Adiournment: 9:14 a,m.
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Pension Trustees Action Agenda 2003-06-16,
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TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
June 16. 2003
Present:
Brian Aungst
Hoyt Hamilton
Whitney Gray
Frank Hibbard
William C. Jonson
Also Present:
William B. Horne II
Garry Brumback
Pamela K. Akin
Joe Roseto
Mary K. (Sue) Diana
Patricia O. Sullivan
Chair
Vice-Chair/Trustee
Trustee
Trustee
Trustee
City Manager
Assistant City'Manager
City Attorney
Human Resources Director
Assistant City Clerk
Board Reporter
The Chair called the meeting to order at 9:08 a.m. at City Hall.
To provide continuity for research. items are in agenda order although not
necessarily discussed in that order.
ITEM #2 - Approval of Minutes:
Trustee Jonson moved to approve the minutes of the May 12. 2003, meeting, as
recorded and submitted in written summation by the City Clerl< to each Trustee. The motion
,was duly seconded and carried unanimously.
ITEM #3 - Request for Acceptance into Membership:
Human Resources Director Joe Roseto presented the recommendation of the PAC
(Pension Advisory Committee) to approve membership for employees: Deborah Lemon, Jeffery
Schmitt, Joseph Miller, Kimberly Miller, John Sever, Christoph auf dem ,Kampe, Kari Connor,
Felicia Leonard, Floyd Thurman, Ronald Gideon, Christopher Jenkins, Michael Reynolds, .
Clifford Fisher, Mark R. Coffin, Lisa Hobin, Dimitrios Tsoustas, Robert Fegley, Zane Morris,
Sharon McAuley, Eddie Marry, and Michael Olsa.
Trustee Gray moved to accept the recommendation of the Pension Advisory Committee.
The motion was duly seconded and carried unanimously.
ITEM #4 - ReQular Pensions to be Qranted
Mr. Roseto presented the recommendation of the Pension Advisory Committee that
Charles A, Howard and John M. Hodgden be granted regular pensions under Sections
2.393 and 2.397 of the Employees' Pension Plan.,
Charles A. Howard, Police Officer, Police Department, was employed on August 18,
1982, and his pension service credit is effective on September 12, 1992. His pension will be
effective May 1,2003. Based on an average salary of approximately $'52,031 per year over the
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Pension Trustees 2003-06-16
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past 5 years, 'the formula for computing regular pensions, and Mr. Howard's selection of the
1000/0 Joint & Survivor Annuity, this pension will approximate $13,298 annually.
John M. Hodgden, Solid Waste Equipment Operator, Solid Waste Department, was
employed on February 16,1981, and his pension service credit is effective on June 6,1983.
His pension will be effective July 1, 2003. Based on an average salary of approximately
$38,114 per year over the past 5 years, the formula for computing regular pensions, and Mr.
Hodgden's selection of the Joint & Survivor Annuity, this pension will approximate $20,962
annually.
The PAC approved these pensions on May 8.2003. Section 2.393 provides for early
retirement eligibility when a participant has reached age 50 and completed ten years of credited
service in a type of employment described as uhazardous duty" and further specifically defines
service as a Police Officer as meeting the hazardous duty criteria. Section 2.393.also 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. Howard qualifies under the hazardous duty criteria.
Mr. Hodgden qualifies under the 20 years of service and age 55 criteria.
Trustee HIbbard moved that Charles A. Howard, Police Department, and John M.
HOdgden, Solid Waste Department, be granted regular pensions under Sections 2.393 and
2.397 of the Employees' Pension Plan, as approved by the Pension Advisory Committee. The
motion was duly seconded and carried unanimously.
ITEM #5 - Reauest to Vest Pension
Elizabeth L. Garrett was employed by the City on January 5, 1987 and terminated City
employment on April 25, 2003. Ms. Garrett would have completed 20 years of service and
reached aged 55 on January 5, 2007. Her pension will be effective on February 1, 2007. The
PAC approved this item on May 8, 2003.
Trustee Hamilton moved that Elizabeth L. Garrett be allowed to vest her 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.
ITEM #6 - Authorize staff to conduct a search for a firm to provide performance measurement
and other related services for the Pension Plan
The Pension Plan has been using the services of Callan Associates to measure the
Plan's performance since 1987. The services of a performance consultant include: 1) provide a
quarterly report of the Plan's investment performance; 2) monitor the Plan's money managers
and notify staff of any changes; 3) conduct new manager searches; 4) provide education
opportunities; 5} monitor asset allocation and make recommendations on changes; 6} monitor
the investment industry and keep staff updated on new developments and trends through .
special reports; and '7) provide special reports, such as manager style drift.
The' Pension Investment Committee recommends undertaking a search for a
performance measurement firm. In response to a question, Cash & Investments Manager
Steve Moskun said the Plan's associate at Callan had retired.
Pension Trustees 2003-06-16
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Trustee Jonson moved to authorize staff to conduct a search for a firm to provide
performance measurement and other related services for the Pension. The motion was duly
seconded and carried unanimously.
ITEM #7 - Authorize staff to negotiate a contract with the firm of Charles D. Hvman & Company
for investment consulting services.
John Willoughby has provided consulting services (i.e. strategic and tactical asset mix,
diversification guidance, economic and market analysis) to the Pension Plan through the firm,
EPW Investment Management. Since the recent buyout of EPW, Mr. Willoughby has moved to
the firm, Charles D. Hyman & Company. -
Currently, the Pension Plan is involved in searches for 1'.\10 fixed-income managers and
a small-capitalization value manager. A RFP (Request for Proposals) for a petiormance
measurement consultant will be issued soon. Given these changes, it would not be feasible to
conduct an additional search for a consultant at this time. Staff requests approval to negotiate
a contract with Charles D. Hyman & Company for Mr. Willoughby's services.
In response to a question, Mr. Moskun said the Pension Advisory Committee member
who had dissented on this item felt the Plan should have one, not two consultants. He
estimated these services cost about $7,000 annually. It was stated while the fee could increase
up to $15,000, the second opinion this consultant provides is worth the cost.
Trustee' Hamilton moved to authorize staff to negotiate a contract with the firm of
Charles D. Hyman & Company for investment consulting services. and that the appropriate
officials be authorized to execute same. The motion was duly seconded and carried
u nani mously.
ITEM #8 - Ratifv and confirm the termination of EPW Investment Manager and the transfer of
the assets under their manaqement to Northern Trust's Lehman Aggregate Bond Fund
On May 28,2003, staff received notice.that the money n,anagement firm, EPW
Investment Manager, was involved in a buyout. In addition, staff was notified that the firm is
changing its focus away from money management and that key individuals were leaving the
firm. John Willoughby, the Plan's consultant, is one of those individuals. A separate agenda
item deals with his services to the Plan.
On May 28, 2003, staff froze Plan assets under EPW's management and made
arrangements for the assets to be transferred to a Lehman Brothers Index Fund (A.K.A.
Lehman Aggregate Bond Fund) at Northern Trust, the Plan's custodian. On May 28,2003,
TPW had $65.8-million of Plan assets under their control.
A fixed-income manager search is underway. A short list of managers has been
developed by Callan Associates. The Pension Investment Committee is meeting this month to
reduce the short list to about four managers and to schedule presentations. The committee will
look for two fixed-income managers, instead of one.
Trustee Jonson moved to ratify and confirm the termination of EPW Investment
Manager and the transfer of the assets under their management to Northern Trust's Lehman
Aggregate Bond Fund. The motion was duly seconded and carried unanimously.
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ITEM #9 - Other Business - NOr:le. '
ITEM #10 - Adiournment ' .
The meeting adjourned at ~:14 a.m.
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Attest:
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/::'( , City Clerk
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Chair
Employee's Pe
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