06/15/2009
,4: PENSION TRUSTEES AGENDA
Location: Council Chambers - City Hall
Date: 6/15/2009- 9:00 AM
1. Call to Order
2. Approval of Minutes
2.1 Approve the minutes of the May 18, 2009 Pension Trustees Meeting as submitted in written summation
by the City Clerk.
Attachments
3. Pension Trustee Items
3.1 Employees listed below be accepted into the City of Clearwater's Employees' Pension Plan.
Attachments
3.2 Clarence Jones, Public Services; Glen Bahnick, Engineering; Louis Dacey, Parks and Recreation;
Kenneth Anderson, Public Services; Mary Case, Public Services; Robert Wile, General Services/Solid
Waste; Arlene Heger, Library; James Seymour, Parks and Recreation; William Phillips, Development and
Neighborhood Services; Cristofor Focsan, Engineering; Jennie Keegan, Finance; Michael Kohn, Public
Services; Margo Walbolt, Parks and Recreation; Jerald Davis, Solid Waste/General Services; Paul Hoven,
Solid Waste/General Services; Terry Schmidt, Parks and Recreation; Sue Diana, Official Records and
Legislative Services; Ronald Hamm, Gas; Susan Phillips, City Manager; Joe Lain, Marine and Aviation;
Milton Bradley, Gas; Bernard Revelia, Fire; Christopher Menendez, Fire; James Ruggiero, Fire; David
Hogan, Fire; Nancy Miller, Police; and Dewey Williams, Police, be granted regular pensions under
Section(s) 2.393 and 2.397 of the Employees' Pension Plan as approved by the Pension Advisory
Committee.
Attachments
3.3 Gwen Hollander, Legal Department; Donna Tormeno, Legal Department; Vincent Mazza, Public Services
Department; and Larry Leffler, Gas Department, be allowed to vest their pensions under Section(s) 2.397
and 2.398 of the Employees' Pension Plan as approved by the Pension Advisory Committee.
Attnchmentc
4. Other Business
5. Adjourn
Meeting Date:6/15/2009
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve the minutes of the May 18, 2009 Pension Trustees Meeting as submitted in written summation by the City Clerk.
SUMMARY:
Review Approval: 1) Clerk
Cover Memo
Item # 1
Attachment number 1
Page 1 of 10
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
MINUTES
CITY OF CLEARWATER
May 18, 2009
Unapproved
Present: Frank Hibbard - Chair, George N. Cretekos - Trustee, John Doran - Trustee,
Paul Gibson - Trustee, and Carlen Petersen - Trustee.
Also William B. Horne II - City Manager, Jill S. Silverboard - Assistant City
present: Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin - City Attorney,
Mary K. Diana - Assistant City Clerk, and Rosemarie Call - Management
Analyst.
1. Call to Order
The Chair called the meeting to order at 9:09 a.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the April 13, 2009 ension Trustees Meeting as submitted
in written summation by the City Clerk.
Trustee Petersen moved to approve the minutes of the April 13, 2009 Pension Trustees
Meeting, as submitted in written summation by the City Clerk to each Trustee. The
motion was duly seconded and carried unanimously.
3. Pension Trustee Items
3. Employees listed low be accepted into the City of CI a at is plo s'
1 Pension Ian.
Name, Job Classification, and Hire
Department/Division Date
Jacqueline Calder, WWTP Operator C/Public Utilities 3/16/09
Benjamin Gibbs, WWTP Operator Trainee/Pub. Util. 3/16/09
Pension Elig. Date
16/09
16/09
Trustee Doran moved to accept the listed employees into membership in the City of
Clearwater's Employees' Pension Plan. The motion was duly seconded and carried
unanimously.
Pension Trustees 2009-05-18 1 Item # 1
Attachment number 1
Page 2 of 10
Gary Costa, Firefighter/Driver-Operator, Fire Department, was employed by the
City on April 2, 1979, and his pension service credit is effective on May 6, 1980.
His pension will be effective May 1, 2009. Based on an average salary of
approximately $71,253 per year over the past five years, the formula for
computing regular pensions, and Mr. Costa's selection of the 100% Joint &
Survivor Annuity, this pension will approximate $55,779 annually.
Wayne Andrews, Police Lieutenant, Police Department, was employed by the City
on October 13, 1980, and his pension service credit is effective on that date. His
pension will be effective April 1, 2009. Based on an average salary of
approximately $91,712 per year over the past five years, the formula for
computing regular pensions, and Mr. Andrews' selection of the 100% Joint &
Survivor Annuity, this pension will approximate $70,550 annually.
Daniel Higgins, Police Officer, Police Department, was employed by the City on
January 17, 1987, and his pension service credit is effective on that date. His
pension will be effective May 1, 2009. Based on an average salary of
approximately $67,609 per year over the past five years, the formula for
computing regular pensions, and Mr. Higgins' selection of the Joint & Survivor
Annuity, this pension will approximate $41,368 annually.
Ronald Flanery, Police Communications Operator Trainee, Police Department,
was employed by the City on August 9, 1993, and his pension service credit is
effective on that date. His pension will be effective July 1, 2009. Based on an
average salary of approximately $43,229 per year over the past five years, the
formula for computing regular pensions, and Mr. Flanery's selection of the 100%
Joint & Survivor Annuity, this pension will approximate $18,852 annually.
Coral D. Lakin, Graphics Designer, Public Communications Department, was
employed by the City on December 15, 1986, and her pension service credit is
effective on that date. Her pension will be effective June 1, 2009. Based on an
average salary of approximately $39,265 per year over the past five years, the
Pension Trustees 2009-05-18 2 Item # 1
Attachment number 1
Page 3 of 10
formula for computing regular pensions, and Ms. Lakin's selection of the Joint &
Survivor Annuity, this pension will approximate $24,230 annually.
Raymond Pelote, Graphics Technician, Public Communications Department, was
employed by the City on August 7, 1989, and his pension service credit is
effective on that date. His pension will be effective September 1, 2009. Based on
an average salary of approximately $36,431 per year over the past five years, the
formula for computing regular pensions, and Mr. Pelote's selection of the 100%
Joint & Survivor Annuity, this pension will approximate $19,654 annually.
Nita Frazier, Accounting Clerk, Finance Department, was employed by the City on
May 30, 1983, and her pension service credit is effective on October 1, 1985. Her
pension will be effective June 1, 2009. Based on an average salary of
approximately $32,319 per year over the past five years, the formula for
computing regular pensions, and Ms. Frazier's selection of the 100% Joint &
Survivor Annuity, this pension will approximate $20,710 annually.
Mary Youngblood, Transfer Station Operator, Solid Waste/General Services
Department, was employed by the City on August 27, 1979, and her pension
service credit is effective on that date. Her pension will be effective June 1,
2009. Based on an average salary of approximately $36,527 per year over the
past five years, the formula for computing regular pensions, and Ms.
Youngblood's selection of the Joint & Survivor Annuity, this pension will
approximate $29,870 annually.
Salvatore Ventura, Public Utilities Technician II, Public Utilities Department, was
employed by the City on December 27, 1983, and his pension service credit is
effective on that date. His pension will be effective April 1, 2009. Based on an
average salary of approximately $42,614 per year over the past five years, the
formula for computing regular pensions, and Mr. Ventura's selection of the Joint &
Survivor Annuity, this pension will approximate $29,610 annually.
Jesse Johnson, Public Utilities Supervisor II, Public Utilities Department, was
employed by the City on December 27, 1983, and his pension service credit is
effective on that date. His pension will be effective June 1, 2009. Based on an
average salary of approximately $52,942 per year over the past five years, the
formula for computing regular pensions, and Mr. Johnson's selection of the Joint
& Survivor Annuity, this pension will approximate $36,988 annually.
Linda Hamrell, Librarian II, Library Department, was employed by the City on May
5, 1986, and her pension service credit is effective on August 4, 1989. Her
pension will be effective October 1, 2009. Based on an average salary of
approximately $55,955 per year over the past five years, the formula for
computing regular pensions, and Ms. Hamrell's selection of the Joint & Survivor
Annuity, this pension will approximate $30,472 annually.
Pension Trustees 2009-05-18 3 Item # 1
Attachment number 1
Page 4 of 10
Patricia Rice, Library Assistant, Library Department, was employed by the City on
August 4, 1988, and her pension service credit is effective on that date. Her
pension will be effective May 1, 2009. Based on an average salary of
approximately $31,196 per year over the past five years, the formula for
computing regular pensions, and Ms. Rice's selection of the Joint & Survivor
Annuity, this pension will approximate $17,847 annually.
Patricia Lafferty, Senior Service Dispatcher, Gas Department, was employed by
the City on October 26, 1988, and her pension service credit is effective on
October 1, 1994. Her pension will be effective June 1, 2009. Based on an
average salary of approximately $42,324 per year over the past five years, the
formula for computing regular pensions, and Ms. Lafferty's selection of the Joint &
Survivor Annuity, this pension will approximate $17,439 annually.
John Henry, Service Dispatcher, Gas Department, was employed by the City on
March 8, 1993, and his pension service credit is effective on December 13, 1993.
His pension will be effective June 1, 2009. Based on an average salary of
approximately $36,486 per year over the past five years, the formula for
computing regular pensions, and Mr. Henry's selection of the Joint & Survivor
Annuity, this pension will approximate $15,496 annually.
Thomas Findley, Recreation Programmer, Parks & Recreation Department, was
employed by the City on April 22, 1991, and his pension service credit is effective
on that date. His pension will be effective May 1, 2009. Based on an average
salary of approximately $33,351 per year over the past five years, the formula for
computing regular pensions, and Mr. Findley's selection of the Joint & Survivor
Annuity, this pension will approximate $16,514 annually.
Howard Selig, Parks Support Specialist, Parks & Recreation Department, was
employed by the City on September 5, 1973, and his pension service credit is
effective on March 11, 1978. His pension will be effective June 1, 2009. Based
on an average salary of approximately $57,369 per year over the past five years,
the formula for computing regular pensions, and Mr. Selig's selection of the Joint
& Survivor Annuity, this pension will approximate $49,223 annually.
These pensions were approved by the Pension Advisory Committee on April 9,
2009. Section 2.393 provides for normal retirement eligibility when a participant
has completed twenty years of credited service or has reached age 55 and
completed ten years of credited service in a type of employment described as
"hazardous duty" and further defines service as a Firefighter Driver/Operator,
Police Lieutenant, and 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 twenty years of credited service,
has completed thirty years of credited service, or has reached age 65 and
completed ten years of credited service. Mr. Costa, Mr. Andrews, and Mr. Higgins
qualify under the hazardous duty criteria. Ms. Lakin, Mr. Pelote, Ms. Frazier, Ms.
Pension Trustees 2009-05-18 4 Item # 1
Attachment number 1
Page 5 of 10
Youngblood, Mr. Ventura, Mr. Johnson, Ms. Hamrell, and Ms. Rice qualify under
the age 55 and 20 years of service criteria. Mr. Selig qualifies under the thirty
years of service criteria. Mr. Flanery, Ms. Lafferty, Mr. Henry, and Mr. Findley
qualify under the age 65 and 10 years of service criteria.
Trustee Cretekos moved that Gary Costa, Fire Department; Wayne Andrews, Police
Department; Daniel Higgins, Police Department; Ronald Flanery, Police Department;
Coral Lakin, Public Communications Department; Raymond Pelote, Public
Communications Department; Nita Frazier, Finance Department; Mary Youngblood,
Solid Waste/General Services Department; Salvatore Ventura, Public Utilities
Department; Jesse Johnson, Public Utilities Department; Linda Hamrell, Library
Department; Patricia Rice, Library Department; Patricia Lafferty, Gas Department; John
Henry, Gas Department; Thomas Findley, Parks and Recreation Department; and
Howard Selig, Parks and Recreation Department, be granted regular pensions under
Section(s) 2.393 and 2.397 of the Employees Pension Plan as approved by the Pension
Advisory Committee. The motion was duly seconded and passed unanimously.
The increase in the required employer contribution is primarily due to a negative
actuarial investment return (5-year moving weighted average) of (10.61) percent
versus the prior year's positive 5-year weighted average return of 10.68 percent.
The plan's expected investment return was 7.5 percent.
Partially offsetting the increase due to investment performance were decreases
due to: a decline in the number of active employees from 1,641 to 1,628; and
actual salary increases of 4.25% versus an expected rate of 6.0% and a rate of
6.62% for the prior year valuation.
The decline in the actuarial investment return is primarily the result of a negative
(27.01) percent return for calendar year 2008. While the simple arithmetic five-
year average investment return for calendar years 2004 through 2008 equals a
positive 1.70 percent, the asset valuation method limits the actuarial value of the
assets to 120 percent of the market value of the assets. Consequently the
adjusted five-year average per this constraint is a negative (10.61) percent.
Pension Trustees 2009-05-18 5 Item # 1
Attachment number 1
Page 6 of 10
The plan has a current "credit balance" of $15.3 million, which can be used to
subsidize future City employer contributions. Staff recommends funding the
employer contribution for fiscal 2010 at 20% of covered payroll, versus the current
required contribution of 29.17%, which would decrease the credit balance by an
estimated $7.5 million.
Staff projects funding the plan at 27% of covered payroll for fiscal 2011, increased
to 30% for fiscal year 2012. This is consistent with the actuary's projection that
contribution rates will be near 30% of covered pay for the next few years.
In response to a question, Pension Plan Actuary Donna White said the City's 7.5%
assumption rate is a little lower than average compared to other municipal plans but not
unrealistic. Assumption rates should be based on historical return.
Trustee Petersen moved to accept the Actuary's report for the Employees' Pension Plan
for the plan year beginning January 1, 2009. The motion was duly seconded and
carried unanimously.
3.4 Discussion of Pension Plan Alternatives
Donna White, Pension Plan actuary with Price Waterhouse Coopers provided a power
point presentation on Retirement Benefits Strategies and Plan Design Alternatives.
Employers in a defined benefit plan control investments, bear investment risk/reward
and assume preretirement inflation risk. In a defined contribution plan, the employee
controls investments, bears investment risk/reward and assumes all preretirement
inflation risk. Ms. White said defined benefit plans provide participants with a
guaranteed retirement income. The City's required contribution for fiscal year beginning
October 1, 2009 is approximately $24 million, or 29% of payroll, due to poor asset
performance over the last year. Pension Plan alternatives include: 1) freeze defined
benefit and replace with defined contribution, 2) creation of a second tier plan in which
new employees receive reduced benefits, and 3) decreasing the multiplier in the current
plan.
In response to questions, Ms. White said participants in a defined contribution plan work longer
due to no pension. Employees in a defined benefit plan are entitled to receive the amount of
money they invest in the plan upon separation with no benefit provided by the City. Ms. White
recommended that Council determine the City's retirement strategy before considering any
changes.
It was noted any changes to the City's Pension Plan would need to be negotiated with the
bargaining units and would require a referendum.
Klausner and Kaufman representative Stu Kaufman said Florida Statutes requires the City to
offer retirees the same premium for health care as employees. Many municipalities are
Pension Trustees 2009-05-18 6 Item # 1
Attachment number 1
Page 7 of 10
considering a second tier plan. He suggested that the City consider a second tier plan and a
reduced COLA (cost of living adjustment) for new hires.
Discussion ensued with concerns expressed regarding future benefits costs.
Staff was requested to provide data regarding the impact of the following changes to the
existing pension plan: limiting years of service in determining benefits; eliminating
overtime pay in excess of 300 hours in determining benefits; modifying the normal form
of payment to life annuity eliminating spousal benefit; and eliminating eligibility for
retirement at 20 years of service for hazardous duty employees and 30 years of service
for non-hazardous employees.
Staff also was directed to provide information regarding a second tier plan with reduced
lower assumptions for new hires.
In response to a question, Ms. White indicated the additional data could be provided in
4-6 weeks.
Ms. Simmons requested an additional $20,000 for further evaluation of the pension plan
by the actuary.
The meeting recessed from 11:12 a.m. to 11:21 a.m.
Trustee Doran moved to authorize an additional $20,000 for further evaluation of the
existing benefit plan. The motion was duly seconded and carried unanimously.
3.5 Review of the pension investment performance forth year ended ece r 319
2008.
It is well known, the economy struggled during the last year. It is hoped the
economy will soon begin to recover and the plan will begin to recoup the losses
suffered. The following is the performance for the Pension Plan for the period
ending December 31, 2008:
Last Year Last 3 Years
Total Fund (27.10%) (4.41%)
Benchmark (28.70%) (5.30%)
These numbers show the plan has beaten its benchmark (which is based upon
the allowable investments for which were invested in during these time periods).
The Investment Committee continues to meet quarterly to monitor the
performance of the plan and the individual managers.
During the last calendar year the following investment styles/managers were
added:
Emerging Markets Eaton Vance
Pension Trustees 2009-05-18 7 Item # 1
Attachment number 1
Page 8 of 10
Emerging Markets Wellington Trust Company
REITs
EAFE
Security Capital
arnest Partners
EAFE Wentworth Hauser
Completing a new asset allocation study is currently in process. The results of
this study will be brought to the Trustees in June for discussion and approval. In
addition, selecting a performance measurement consultant is also currently
underway. As part of these two processes, the pros and cons of strategic verses
tactical asset allocation processes are being discussed and trustees' input is
requested.
Strategic Asset Allocation involves periodically rebalancing the portfolio to a
stated asset allocation model in order to maintain a long-term goal for asset
allocation. Tactical Asset Allocation uses a shorter time horizon and involves
making changes to the asset allocation model on a more frequent basis to try to
take advantage of changes in the financial markets.
Lastly, an update on the plan's securities lending process is provided. Securities
lending is where an entity will loan securities to another entity in exchange for
cash collateral and then invest that collateral during the loaning period to provide
additional income.
1. The city does not participate in securities lending with its operating cash.
2. The pension plan does participate in securities lending of pension assets with
Northern Trust managing the process.
3. The pension plan has made $1,883,223 in additional income due to the
securities lending program. Currently there is an unrealized loss of $1,556,260
in the securities lending portfolio due to the economy. This still leaves this
program with a positive benefit to the plan of $326,963.
Cash & Investments Manager Steve Moskun provided a power point presentation. He
said the plan lost 21.5% due to the volatile market.
Finance Director Margie Simmons said staff would present investment guidelines upon
completion of a new asset allocation study. Allocation studies take 1.5 years to be fully
funded.
Pension Trustees 2009-05-18 8 Item # 1
Attachment number 1
Page 9 of 10
million with Independence. The city has used Independence for the last two years
with mixed results.
The pension plan has a contract in place with Northern Trust where it can use any
of their index funds. The assets at Independence will be transferred to a Northern
Trust small cap growth fund.
An asset allocation study being performed by Callan and Associates is almost
complete. In addition, an RFP process to select a firm to be the Plan's Investment
Measurement & Consulting Services provider (currently Callan) is almost
complete. That contract will be brought forward for Trustees' approval within the
next two months. Once that firm is onboard the asset allocation study can be
completed, it can be determine if it is in the plan's best interest to hire a new small
cap growth firm, continue using an index fund, or to otherwise invest the plans'
assets.
We have consulted with Callan, as well as other consultants being considered in
our RFP process, and the consensus is that this is the best course of action.
Cash & Investments Manager Steve Moskun said the portfolio manager with Northern
Trust does not want a separately managed small cap growth portfolio of this size. Staff
recommended that the monies be transferred to where the portfolio would be managed.
Staff prefers to transfer the monies into a small cap index fund rather than look for a
new manager which may take 4-6 months.
Trustee Cretekos moved to approve staff recommendation to move the money from
Independence investments to a Northern Trust small cap growth index fund and to
terminate the contract with Independence Investments.
Printing and binding is for the statutorily required annual information distribution to
the members of the pension plan.
Postage is for certified mailings required under a new rule passed by the Pension
Trustees and other pension related materials.
Membership dues are for the annual dues for the Florida Public Pension Trust
Pension Trustees 2009-05-18 9 Item # 1
Attachment number 1
Page 10 of 10
Association.
Training and travel are for the estimated cost of training required by state
statute. Klausner & Kaufman is our pension attorney firm. Annual attorney's
fees also include medical bills that are for the medical services authorized by the
Pension Advisory Committee.
Reimbursement to the General Fund and the Self Insurance Fund is for the cost
of the oversight of the Plan and is recognized as revenue to the general and
insurance funds. This reimbursement covers the services provided by Human
Resources, Payroll, and Finance.
At this time we are not budgeting for a Referendum for the next year. If a
referendum is needed, approval will be sought at that time.
Money manager, safekeeping, actuary, and pension administration fees are all set
by contracts approved by the Trustees and are not included in this request.
Trustee Doran moved to approve the recommended administrative expenditures totaling
$321,500 for Fiscal Year 2009-10. The motion was duly seconded and carried
unanimously.
4. None.
Other Business - 5. l rn
The meeting was adjourned at 12:05 p.m.
Chair
Employee's Pension Plan Trustees
Attest
City Clerk
Pension Trustees 2009-05-18 10 Item # 1
Meeting Date:6/15/2009
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Employees listed below be accepted into the City of Clearwater's Employees' Pension Plan.
SUMMARY:
Pension
Name, Job Classification, and Department/Division Hire Date Elig Date
Carol Mathieson, WWTP Operator Trainee/Public Util. 3/30/09 3/30/09
Review Approval: 1) Clerk
Cover Memo
Item # 2
Meeting Date:6/15/2009
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Clarence Jones, Public Services; Glen Bahnick, Engineering; Louis Dacey, Parks and Recreation; Kenneth Anderson, Public Services;
Mary Case, Public Services; Robert Wile, General Services/Solid Waste; Arlene Heger, Library; James Seymour, Parks and Recreation;
William Phillips, Development and Neighborhood Services; Cristofor Focsan, Engineering; Jennie Keegan, Finance; Michael Kohn,
Public Services; Margo Walbolt, Parks and Recreation; Jerald Davis, Solid Waste/General Services; Paul Hoven, Solid Waste/General
Services; Terry Schmidt, Parks and Recreation; Sue Diana, Official Records and Legislative Services; Ronald Hamm, Gas; Susan
Phillips, City Manager; Joe Lain, Marine and Aviation; Milton Bradley, Gas; Bernard Revelia, Fire; Christopher Menendez, Fire; James
Ruggiero, Fire; David Hogan, Fire; Nancy Miller, Police; and Dewey Williams, Police, be granted regular pensions under Section(s)
2.393 and 2.397 of the Employees' Pension Plan as approved by the Pension Advisory Committee.
SUMMARY:
Clarence Jones, Public Services Technician II, Public Services Department, was employed by the City on July 21, 1975, and his
pension service credit is effective on that date. His pension will be effective June 1, 2009.
Based on an average salary of approximately $43,523 per year over the past five years, the formula for computing regular pensions, and
Mr. Jones' selection of the Joint & Survivor Annuity, this pension will approximate $40,498 annually.
Glen Bahnick, Assistant Engineering Director, Engineering Department, was employed by the City on April 18, 1983, and his
pension service credit is effective on that date. His pension will be effective June 1, 2009.
Based on an average salary of approximately $80,444 per year over the past five years, the formula for computing regular pensions, and
Mr. Bahnick's selection of the 75% Joint & Survivor Annuity, this pension will approximate $58,049 annually.
Louis Dacey, Parks Service Technician III, Parks & Recreation Department, was employed by the City on January 17, 1987, and
his pension service credit is effective on that date. His pension will be effective May 1, 2009.
Based on an average salary of approximately $44,360 per year over the past five years, the formula for computing regular pensions, and
Mr. Dacey's selection of the Joint & Survivor Annuity, this pension will approximate $37,864 annually.
Kenneth Anderson, Tradesworker, Public Services Department, was employed by the City on December 12, 1981, and his pension
service credit is effective on that date. His pension will be effective October 1, 2009.
Based on an average salary of approximately $42,884 per year over the past five years, the formula for computing regular pensions, and
Mr. Anderson's selection of the 100% Joint & Survivor Annuity, this pension will approximate $32,928 annually.
Mary Case, Senior Staff Assistant, Public Services Department, was employed by the City on December 22,1980, and her pension
service credit is effective on that date. Her pension will be effective June 1, 2009.
Based on an average salary of approximately $39,560 per year over the past five years, the formula for computing regular pensions, and
Ms. Case's selection of the Joint & Survivor Annuity, this pension will approximate $30,902 annually.
Robert Wile, Solid Waste Worker, Solid Waste/General Services Department, was employed by the City on February 23, 1982,
and his pension service credit is effective on that date. His pension will be effective June 1, 2009.
Based on an average salary of approximately $34,105 per year over the past five years, the formula for computing regular pensions, and
Mr. Wile's selection of the 100% Joint & Survivor Annuity, this pension will approximate $24,978 annually.
Arlene Heger, Library Assistant, Library Department, was employed by the City on March 15, 1986, and her pensCover ervice credit
is effective on July 27, 1989. Her pension will be effective August 1, 2009. Item # 3
Based on an average salary of approximately $31,704 per year over the past five years, the formula for computing regular pensions, and
Ms. Heger's selection of the Joint & Survivor Annuity, this pension will approximate $17,437 annually.
James Seymour, Parks Service Supervisor I, Parks & Recreation Department, was employed by the City on April 21, 1986, and
his pension service credit is effective on that date. His pension will be effective June 1, 2009.
Based on an average salary of approximately $51,496 per year over the past five years, the formula for computing regular pensions, and
Mr. Seymour's selection of the Joint & Survivor Annuity, this pension will approximate $32,697 annually.
William Phillips, Building Construction Inspector, Development & Neighborhood Services Department, was employed by the
City on April 11, 1988, and his pension service credit is effective on that date. His pension will be effective June 1, 2009.
Based on an average salary of approximately $60,570 per year over the past five years, the formula for computing regular pensions, and
Mr. Phillips' selection of the 100% Joint & Survivor Annuity, this pension will approximate $34,185 annually.
Cristofor Focsan, Engineering Specialist III, Engineering Department, was employed by the City on March 11, 1991, and his
pension service credit is effective on that date. His pension will be effective June 1, 2009.
Based on an average salary of approximately $61,774 per year over the past five years, the formula for computing regular pensions, and
Mr. Focsan's selection of the 75% Joint & Survivor Annuity, this pension will approximate $31,462 annually.
Jennie Keegan, Accounting Clerk, Finance Department, was employed by the City on April 9, 1973, and her pension service credit
is effective on November 17, 1989. Her pension will be effective October 1, 2009.
Based on an average salary of approximately $36,914 per year over the past five years, the formula for computing regular pensions, and
Ms. Keegan's selection of the 10-Year Certain & Life Annuity, this pension will approximate $14,351 annually.
Michael Kohn, Public Service Heavy Equipment Operator, Public Services Department, was employed by the City on January 17,
1977, and his pension service credit is effective on that date. His pension will be effective June 1, 2009.
Based on an average salary of approximately $45,677 per year over the past five years, the formula for computing regular pensions, and
Mr. Kohn's selection of the 75% Joint & Survivor Annuity, this pension will approximate $41,005 annually.
Margo Walbolt, Cultural Affairs Manager, Parks & Recreation Department, was employed by the City on May 6, 1974, and her
pension service credit is effective on December 16, 1974. His pension will be effective June 1, 2009.
Based on an average salary of approximately $63,823 per year over the past five years, the formula for computing regular pensions, and
Mr. Walbolt's selection of the Life Annuity, this pension will approximate $65,472annually.
Jerald Davis, Tradesworker, Solid Waste/General Service Department, was employed by the City on July 11, 1994, and his pension
service credit is effective on that date. His pension will be effective October 1, 2009.
Based on an average salary of approximately $39,922 per year over the past five years, the formula for computing regular pensions, and
Mr. Davis' selection of the 100% Joint & Survivor Annuity, this pension will approximate $16,003 annually.
Paul Hoven, Fleet Mechanic Supervisor, Solid Waste/General Services Department, was employed by the City on December 31,
1979, and his pension service credit is effective on that date. His pension will be effective June 1, 2009.
Based on an average salary of approximately $68,827 per year over the past five years, the formula for computing regular pensions, and
Mr. Hoven's selection of the Life Annuity, this pension will approximate $60,119 annually.
Terry Schmidt, Special Events Manager, Parks & Recreation Department, was employed by the City on June 13, 1983, and his
pension service credit is effective on that date. His pension will be effective October 1, 2009.
Based on an average salary of approximately $72,743 per year over the past five years, the formula for computing regular pensions, and
Mr. Schmidt's selection of the 100% Joint & Survivor Annuity, this pension will approximate $51,529 annually.
Mary K. Diana, Assistant City Clerk, Official Records & Legislative Services Department, was employed by the City on May 12,
1986, and her pension service credit is effective on that date. Her pension will be effective October 1, 2009.
Based on an average salary of approximately $71,362 per year over the past five years, the formula for computing regtQWTb inns, and
Ms. Diana's selection of the Joint & Survivor Annuity, this pension will approximate $45,861 annually.
Item # 3
Ronald Hamm, Gas Supervisor, Gas Department, was employed by the City on June 25, 1979, and his pension service credit is
effective on that date. His pension will be effective June 1, 2009.
Based on an average salary of approximately $70,428 per year over the past five years, the formula for computing regular pensions, and
Mr. Hamm's selection of the 100% Joint & Survivor Annuity, this pension will approximate $56,685 annually.
Susan Phillips, Assistant to City Manager, City Manager Department, was employed by the City on February 27, 1986, and her
pension service credit is effective on that date. Her pension will be effective June 1, 2009.
Based on an average salary of approximately $57,987 per year over the past five years, the formula for computing regular pensions, and
Ms. Phillips' selection of the 50% Joint & Survivor Annuity, this pension will approximate $38,344 annually.
Joe Lain, Water Safety Supervisor, Marine & Aviation Department, was employed by the City on October 28, 1987, and his
pension service credit is effective January 2, 1989. His pension will be effective June 1, 2009.
Based on an average salary of approximately $52,941 per year over the past five years, the formula for computing regular pensions, and
Mr. Lain's selection of the Life Annuity, this pension will approximate $32,766 annually.
Milton Bradley, Gas Technician H, Gas Department, was employed by the City on June 6, 1983, and his pension service credit is
effective on that date. His pension will be effective June 1, 2009.
Based on an average salary of approximately $42,115 per year over the past five years, the formula for computing regular pensions, and
Mr. Bradley's selection of the Joint & Survivor Annuity, this pension will approximate $30,070 annually.
Bernard Revelia, Fire Lieutenant, Fire Department, was employed by the City on January 7, 1980, and his pension service credit is
effective on that date. His pension will be effective June 1, 2009.
Based on an average salary of approximately $80,020 per year over the past five years, the formula for computing regular pensions, and
Mr. Revelia's selection of the 100% Joint & Survivor Annuity, this pension will approximate $63,717 annually.
Christopher Menendez, Fire Lieutenant, Fire Department, was employed by the City on February 4, 1980, and his pension service
credit is effective on that date. His pension will be effective May 1, 2009.
Based on an average salary of approximately $80,496 per year over the past five years, the formula for computing regular pensions, and
Mr. Menendez' selection of the 100% Joint & Survivor Annuity, this pension will approximate $63,739 annually.
James Ruggiero, Fire Lieutenant, Fire Department, was employed by the City on March 21, 1983, and his pension service credit is
effective on that date. His pension will be effective June 1, 2009.
Based on an average salary of approximately $70,199 per year over the past five years, the formula for computing regular pensions, and
Mr. Ruggiero's selection of the 100% Joint & Survivor Annuity, this pension will approximate $49,458 annually.
David Hogan, Fire Medic, Fire Department, was employed by the City on July 10, 1989, and his pension service credit is effective on
that date. His pension will be effective August 1, 2009.
Based on an average salary of approximately $63,581 per year over the past five years, the formula for computing regular pensions, and
Mr. Hogan's selection of the 100% Joint & Survivor Annuity, this pension will approximate $34,460 annually.
Nancy Miller, Police Lieutenant, Police Department, was employed by the City on August 20, 1979, and her pension service credit is
effective on that date. Her pension will be effective October 1, 2009.
Based on an average salary of approximately $99,317 per year over the past five years, the formula for computing regular pensions, and
Ms. Miller's selection of the 100% Joint & Survivor Annuity, this pension will approximate $81,413 annually.
Dewey Williams, Deputy Police Chief, Police Department, was employed by the City on March 14, 1977, and his pension service
credit is effective on that date. His pension will be effective October 1, 2009.
Based on an average salary of approximately $99,618 per year over the past five years, the formula for computing regular pensions, and
Mr. Williams' selection of the 100% Joint & Survivor Annuity, this pension will approximate $87,521 annually.
These pensions were approved by the Pension Advisory Committee on May 14, 2009. Section 2.393 provides for normal retirement
over mo
eligibility when a participant has reached age 55 and completed twenty years of credited service, has completed thirty years o credited
service, or has reached age 65 and completed ten years of credited service. Section 2.393 also provides for normal retj i e? ibility
when a participant has completed twenty years of credited service or has reached age 55 and completed ten years of cre i ed service in a
type of employment described as "hazardous duty" and further defines service as a Fire Lieutenant, Fire Medic, Police Lieutenant, and
Deputy Police Chief as meeting the hazardous duty criteria. Mr. Bahnick, Mr. Dacey, Mr. Anderson, Ms. Case, Mr. Wile, Ms. Heger,
Mr. Seymour, Mr. Phillips, Mr. Hoven, Mr. Schmidt, Ms. Diana, Mr. Hamm, Ms. Phillips, Mr. Lain, and Mr. Bradley qualify under the
age 55 and 20 years of service criteria. Mr. Jones, Mr. Kohn, and Ms. Walbolt qualify under the thirty years of service criteria. Mr.
Davis, Mr. Focsan, and Ms. Keegan qualify under the age 65 and 10 years of service criteria. Mr. Revelia, Mr. Menendez, Mr.
Ruggiero, Mr. Hogan, Ms. Miller, and Mr. Williams qualify under the hazardous duty criteria.
Review Approval: 1) Clerk
Cover Memo
Item # 3
Meeting Date:6/15/2009
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Gwen Hollander, Legal Department; Donna Tormeno, Legal Department; Vincent Mazza, Public Services Department; and Larry
Leffler, Gas Department, be allowed to vest their pensions under Section(s) 2.397 and 2.398 of the Employees' Pension Plan as
approved by the Pension Advisory Committee.
SUMMARY:
Gwen Hollander, Legal Staff Assistant, Legal Department, was employed by the City on August 12, 1999, and began participating
in the Pension Plan on that date. Ms. Hollander will terminate from City employment on September 25, 2009.
Donna Tormeno, Paralegal, Legal Department, was employed by the City on March 25, 1991, and began participating in the Pension
Plan on that date. Ms. Tormeno will terminate from City employment on September 25, 2009.
Vincent Mazza, Street Sweeper Operator, Public Services Department, was employed by the City on July 25, 1994, and began
participating in the Pension Plan on that date. Mr. Mazza will terminate from City employment on September 25, 2009.
Larry Leffler, Gas Technician III, Gas Department, was employed by the City on November 19, 1990, and began participating in
the Pension Plan on that date. Mr. Leffler terminated from City employment on May 22, 2009.
The Employees' Pension Plan provides that should an employee cease to be an employee of the City of Clearwater or change status
from full-time to part-time after completing ten or more years of creditable service (pension participation), 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 retirement.
Section 2.393 (p) provides for normal retirement eligibility when a participant has reached age 55 and completed twenty years of
credited service, has completed 30 years of credited service, or has reached age 65 and completed ten years of credited service. Ms.
Hollander would have completed at least 10 years of service and reached age 65 on December 19, 2009. Her pension will be effective
January 1, 2010. Ms. Tormeno would have completed at least 20 years of service and reached age 55 on January 16, 2011. Her pension
will be effective April 1, 2011. Mr. Mazza would have completed 10 years of service and reached age 65 on December 19, 2009. His
pension will be effective January 1, 2010. Mr. Leffler would have completed 10 years of service and reached age 65 on April 30,
2010. His pension will be effective May 1, 2010. These pensions were approved by the Pension Advisory Committee on May 14, 2009.
Review Approval: 1) Clerk
Cover Memo
Item # 4