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12/10/2009 PENSION ADVISORY COMMITTEE MEETING MINUTES CITY OF CLEARWATER December 10, 2009 Present: Nathan Hightower Chair Tom Jensen Vice-Chair John Schmalzbauer Committee Member John Doran Committee Member/Councilmember Paul Gibson Committee Member/Councilmember Absent: Carlen Petersen Committee Member/Councilmember Brian De Witt Committee Member Also Present: Joe Roseto Human Resources Director Patricia O. Sullivan Board Reporter The Chair called the meeting to order at 9:00 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 2 - Approval of Minutes – November 12, 2009 Member Jensen moved to approve the minutes of the regular Pension Advisory Committee meeting of November 12, 2009, as submitted in written summation to each board member. The motion was duly seconded and carried unanimously. 3 – Employees to be Heard – None. 4 – Action Items : a. Review and Action on Employee Requests for Regular Pensions 1. Terry Teunis, Police 2. Carol Schmidt, Police Member Schmalbauer moved to recommend approval of the requests for regular pensions for Terry Teunis and Carol Schmidt. The motion was duly seconded. Concern was expressed that current rules are inappropriate and Mr. Teunis’ request represents an ongoing problem; public safety staff boost their pension income by working significant overtime hours just prior to retirement. It was noted that Mr. Teunis had been promoted to Lieutenant in the last five years. Staff will report on the number of overtime hours in Mr. Teunis’ retirement package. Upon the vote being taken, the motion carried unanimously. Pension Advisory 2009-12-10 1 b. Review and Action on Employee Requests to Vest Pensions: 1. Gina Henry, Parks & Recreation Gina Henry, Parks & Recreation, has resigned her position after being employed by the City for more than 10 years. She will qualify to receive her reduced pension beginning March 1, 2013. 2. Jon Marcin, Finance Jon Marcin, Finance, has resigned his position after being employed by the City for more than 10 years. He will qualify to receive his reduced pension beginning July 1, 2011. Member Doran moved to recommend approval of the requests by Gina Henry and Jon Marcin to vest their pensions. The motion was duly seconded and carried unanimously. c. Approval of New Hires as Plan Members: Member Jensen moved to accept the following employee into membership in the Pension Plan: Pension Eligible Name, Job Class, & Dept./Div Hire Date Date Scott Lipp, Park Service Technician I, Parks & Recreation10/26/09 10/26/09 The motion was duly seconded and carried unanimously. 5 – Pending/New Business : None. 6 – Director’s Report Human Resources Director Joe Roseto invited PAC members to attend the December 14, 2009, Pension Trustees meeting when the Pension Attorney will report on pension plan alternatives. Due to State requirements, amendments approved by the Police unions cannot be scheduled for referendum until November 2010. 7 – Committee Members to be Heard: Member Jensen said Congress had adopted a tax benefit in 2006, later approved by the State, to allow public safety retirees to pay toward health insurance costs with pretax pension benefits. Mr. Roseto said those retirees can claim the deduction on their tax return. Finance Director Margie Simmons said staff continues to discuss the City’s ability to provide this optional pretax benefit. Member Schmalzbauer wished his best to retiree Carol Schmidt who had gone through a tough rehabilitation following a serious accident. Pension Advisory 2009-12-10 2 Committee members thanked retirees for their contributions to the City and wished all Happy Holidays. 8 - Adjourn The meeting adjourned at 9:15 a.m. ti./Yll//1 Chair ~ Pension Advisory Committee '- Pension Advisory 2009-12-10 3