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06/10/2010 PENSION ADVISORY COMMITTEE MEETING MINUTES CITY OF CLEARWATER June 10, 2010 Present: Nathan Hightower Chair Tom Jensen Vice-Chair John Schmalzbauer Committee Member John Doran Committee Member/Councilmember Paul Gibson Committee Member/Councilmember Brian DeWitt Committee Member William C. Jonson Committee Member/Councilmember 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 2.1. Approve Pension Advisory Committee minutes of the April 8, 2010 meeting Member Doran moved to approve the minutes of the regular Pension Advisory Committee meeting of April 8, 2010, as submitted in written summation to each board member. The motion was duly seconded and carried unanimously. 3 - Review and Action on Employee Requests for Regular Pension Richard Niemiller, Public Utilities Supervisor II, Public Utilities Department, was employed by the City on April 4, 1983, and his pension service credit is effective on that date. His pension will be effective June 1, 2010. Based on an average salary of approximately $62.013 per year over the past five years, the formula for computing regular pensions, and Mr. Niemiller’s selection of the Joint & Survivor Annuity, this pension will approximate $46,301 annually. John Walton , Service Dispatcher, Gas Department, was employed by the City on August 26, 1981, and his pension service credit is effective on that date. His pension will be effective June 1, 2010. Based on an average salary of approximately $42,073 per year over the past five years, the formula for computing regular pensions, and Mr. Walton’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $32,645 annually. Stephen Bigley, Recreation Supervisor I, Parks & Recreation Department, was employed by the City on May 20, 1981, and his pension service credit is effective on that date. His pension will be effective June 1, 2010. Based on an average salary of approximately $56,574 per year over the past five years, the formula for computing regular pensions, and Mr. Bigley’s selection of the Joint & Survivor Annuity, this pension will approximate $33,929 annually. Pension Advisory 2010-06-10 1 James Nungester, Solid Waste Equipment Operator, Solid Waste/General Services Department, was employed by the City on August 13, 1990, and his pension service credit is effective on that date. His pension will be effective September 1, 2010. Based on an average salary of approximately $44,423 per year over the past five years, the formula for computing regular pensions, and Mr. Nungester’s selection of the Joint & Survivor Annuity, this pension will approximate $24,494 annually. William Lueders, Recreation Specialist, Parks & Recreation Department, was employed by the City on September 26, 1984, and his pension service credit is effective on that date. His pension will be effective June 1, 2010. Based on an average salary of approximately $54,108 per year over the past five years, the formula for computing regular pensions, and Mr. Lueders’ selection of the 100% Joint & Survivor Annuity, this pension will approximate $36,969 annually. Bruno Yankus, Wastewater Treatment Plant Operator A, Public Utilities Department, was employed by the City on July 15, 1985, and his pension service credit is effective on that date. His pension will be effective June 1, 2010. Based on an average salary of approximately $56,704 per year over the past five years, the formula for computing regular pensions, and Mr. Yankus’ selection of the 100% Joint & Survivor Annuity, this pension will approximate $37,977 annually. Michael Harrington, Machinist/Fabricator, Public Utilities Department, was employed by the City on October 20, 1980, and his pension service credit is effective on that date. His pension will be effective August 1, 2010. Based on an average salary of approximately $59,081 per year over the past five years, the formula for computing regular pensions, and Mr. Harrington’s selection of the 75% Joint & Survivor Annuity, this pension will approximate $48,444 annually. David Doyle, Police Communications Supervisor, Police Department, was employed by the City on January 28, 1985, and his pension service credit is effective on that date. His pension will be effective June 1, 2010. Based on an average salary of approximately $59,923 per year over the past five years, the formula for computing regular pensions, and Mr. Doyle’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $40,998 annually. Edward Turnbull, Fleet Mechanic, Solid Waste/General Services 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 June 1, 2010. Based on an average salary of approximately $62,138 per year over the past five years, the formula for computing regular pensions, and Mr. Turnbull’s selection of the 10-year Certain & Life Annuity, this pension will approximate $51,092 annually. Thomas King, Solid Waste Supervisor II, Solid Waste/General Services Department, was employed by the City on April 25, 1980, and his pension service credit is effective on that date. His pension will be effective June 1, 2010. Based on an average salary of approximately $57,562 per year over the past five years, the formula for computing regular pensions, and Mr. King’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $46,920 annually. Pension Advisory 2010-06-10 2 Robert Gundel, Fleet Mechanic Supervisor, Solid Waste/General Services Department, was employed by the City on May 5, 1980, and his pension service credit is effective on that date. His pension will be effective June 1, 2010. Based on an average salary of approximately $66,750 per year over the past five years, the formula for computing regular pensions, and Mr. Gundel’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $54,160 annually. Roger Hooey, Wastewater Treat Plant Chief Operator, Public Utilities Department , was employed by the City on December 20, 1979, and his pension service credit is effective on that date. His pension will be effective June 1, 2010. Based on an average salary of approximately $65,672 per year over the past five years, the formula for computing regular pensions, and Mr. Hooey’s selection of the Joint & Survivor Annuity, this pension will approximate $54,937 annually. Robert VanDuyne, Design & Mapping Technician, Engineering Department, was employed by the City on April 14, 1980, and his pension service credit is effective on that date. His pension will be effective July 1, 2010. Based on an average salary of approximately $48,415 per year over the past five years, the formula for computing regular pensions, and Mr. Van Duyne’s selection of the Joint & Survivor Annuity, this pension will approximate $40,116 annually. Brian McLaughlin, Police Communications Supervisor, Police Department, was employed by the City on May 23, 1977, and his pension service credit is effective on July 30, 1977. His pension will be effective August 1, 2010. Based on an average salary of approximately $53,584 per year over the past five years, the formula for computing regular pensions, and Mr. McLaughlin’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $46,769 annually. Cara Cooper, Police Service Technician, Police Department, was employed by the City on May 2, 1978, and her pension service credit is effective on that date. Her pension will be effective August 1, 2010. Based on an average salary of approximately $44,317 per year over the past five years, the formula for computing regular pensions, and Ms. Cooper’s selection of the Joint & Survivor Annuity, this pension will approximate $39,195 annually. Marietta Cooper, Police Service Technician Supervisor, Police Department, was employed by the City on October 21, 1974, and her pension service credit is effective on that date. Her pension will be effective July 1, 2010. Based on an average salary of approximately $50,283 per year over the past five years, the formula for computing regular pensions, and Ms. Cooper’s selection of the Joint & Survivor Annuity, this pension will approximate $49,354 annually. Theresa Coffey, Accounting Technician, Library Department, was employed by the City on May 5, 1980, and her pension service credit is effective on that date. Her pension will be effective July 1, 2010. Based on an average salary of approximately $39,212 per year over the past five years, the formula for computing regular pensions, and Ms. Coffey’s selection of the 50% Joint & Survivor Annuity, this pension will approximate $33,309 annually. Virginia Costa, Personnel/Payroll Technician, Fire Department, was employed by the City on September 29, 1980, and her pension service credit is effective on that date. Her Pension Advisory 2010-06-10 3 pension will be effective October 1, 2010. Based on an average salary of approximately $40,693 per year over the past five years, the formula for computing regular pensions, and Ms. Costa’s selection of the 50% Joint & Survivor Annuity, this pension will approximate $34,415 annually. Gwen Hollander, Legal Staff Assistant, Legal Department, was employed by the City on August 12, 1999, and her pension service credit is effective on that date. Her pension will be effective July 1, 2010. Based on an average salary of approximately $40,739 per year over the past five years, the formula for computing regular pensions, and Ms. Hollander’s selection of the Joint & Survivor Annuity, this pension will approximate $12,112 annually. Elizabeth Robinson, Library Assistant, Library Department, was employed by the City on December 23, 1996, and her pension service credit is effective on that date. Her pension will be effective June 1, 2010. Based on an average salary of approximately $26,960 per year over the past five years, the formula for computing regular pensions, and Ms. Robinson’s selection of the Joint & Survivor Annuity, this pension will approximate $9,964 annually. Billy McKeever, Tradesworker, Parks & Recreation Department, was employed by the City on October 17, 1994, and his pension service credit is effective on that date. His pension will be effective September 1, 2010. Based on an average salary of approximately $34,054 per year over the past five years, the formula for computing regular pensions, and Mr. McKeever’s selection of the Joint & Survivor Annuity, this pension will approximate $14,630 annually. Dwayne Vaughan, Firefighter, Fire Department, was employed by the City on January 10, 1983, and his pension service credit is effective on that date. His pension will be effective June 1, 2010. Based on an average salary of approximately $75,573 per year over the past five years, the formula for computing regular pensions, and Mr. Vaughan’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $55,740 annually. Gregory Stewart, Police Sergeant, Police Department, was employed by the City on November 3, 1989, and his pension service credit is effective on that date. His pension will be effective June 1, 2010. Based on an average salary of approximately $79,833 per year over the past five years, the formula for computing regular pensions, and Mr. Stewart’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $44,344 annually. Terence Kelly, Police Officer, Police Department, was employed by the City on November 3, 1989, and his pension service credit is effective on that date. His pension will be effective June 1, 2010. Based on an average salary of approximately $72,411 per year over the past five years, the formula for computing regular pensions, and Mr. Kelly’s selection of the Life Annuity, this pension will approximate $43,735 annually. Scott Dawson, Police Officer, Police Department, was employed by the City on September 24, 1990, and his pension service credit is effective on that date. His pension will be effective October 1, 2010. Based on an average salary of approximately $72,979 per year over the past five years, the formula for computing regular pensions, and Mr. Dawson’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $39,595 annually. Section 2.393 provides for normal retirement eligibility when a participant has completed thirty years of credited service, has reached age 55 and completed twenty years of credited Pension Advisory 2010-06-10 4 service, or has reached age 65 and completed ten years of credited service. Section 2.393 also 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, Police Sergeant, and Police Officer as meeting the hazardous duty criteria. Messrs. Niemiller, Walton, Bigley, Nungester, Lueders, Yankus, Harrington, and Doyle qualify under the age 55 and 25 years of service criteria. Messrs. Turnbull, King, Gundel, Hooey, Van Duyne, McLauglin, Ms. Cooper, Ms. Cooper, Ms. Coffey, and Ms. Costa qualify under the 30 years of service criteria. Ms. Hollander, Ms. Robinson, and Mr. McKeever qualify under the age 65 and 10 years of service criteria. Messrs. Vaughan, Stewart, Kelly, and Dawson qualify under the hazardous duty criteria. Member Jensen moved to recommend approval of the requests for regular pensions for Richard Niemiller, John Walton, Stephen Bigley, James Nungester, William Lueders, Bruno Yankus, Michael Harrington, David Doyle, Edward Turnbull, Thomas King, Robert Gundel, Roger Hooey, Robert VanDuyne, Brian McLaughlin, Cara Cooper, Marietta Cooper, Theresa Coffey, Virginia Costa, Gwen Hollander, Elizabeth Robinson, Billy McKeever, Dwayne Vaughan, Gregory Stewart, Terence Kelly, and Scott Dawson. The motion was duly seconded and carried unanimously. 4 - Review and Action on Employee Requests to Vest Pensions 4.1. Thomas Coyle, Police Thomas Coyle, Police Officer, Police Department,was employed by the City on December 20, 1999, and began participating in the Pension Plan on that date. Mr. Coyle terminated from City employment on May 21, 2010. 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 completed twenty years of credited service in a type of employment described as “hazardous duty” and further specifically defines service as a Police Officer as meeting the hazardous duty criteria. Mr. Coyle would have completed 20 years of service on December 20, 2019. His pension will be effective January 1, 2020. Member Jensen moved to recommend approval of the request by Thomas Coyle to vest his pension. The motion was duly seconded and carried unanimously. 5 - Approval of New Hires as Plan Members Member Jensen moved to accept the following employees into membership in the Pension Plan: Pension Advisory 2010-06-10 5 Pension Name, Job. Class, & Dept./Div . Hire Date Elig. Date Christopher Buehler, WWTP Operator Trainee/Public Utilities 05/08/10 05/08/10 Robert Shulmister, WWTP Operator Trainee/Public Utilities 05/10/10 05/10/10 Gregg Lonkey, Marine Facility Operator/Marine & Aviation 04/14/07 05/08/10 Frederick Hemerick, Water Treat. Plant Chief Oper./Public Utilities 05/24/10 05/24/10 Ryan Reilly, Parks Service Technician I/Parks & Recreation 03/15/10 03/15/10 Gregg Lonkey originally was hired as part-time on April 14, 2007; status changed to full- time and pension eligible as of May 8, 2010. The motion was duly seconded and carried unanimously. 6 - Pending/New Business 6.1. Selection of New Chair Member Jensen moved to reappoint Nathan Hightower as Chair. The motion was duly seconded and carried unanimously. 6.2. Review and Action on Gary Gustafson’s Request for a non-job connected Disability Pension Human Resources Director Joe Roseto reviewed Gary Gustafson’s application for a non-job connected disability pension; required information was properly filed. This request meets disability criteria in the pension ordinance for a non-job connected disability pension. According to medical reports from Alexander B. Sochet, M.D. and Don Simmler, M.D. and the Department of Veterans Affairs rating decision, Mr. Gustafson’s condition is acute. Prompt approval will allow Mr. Gustafson and his beneficiary to choose the distribution of his pension benefit; approval today would not affect the benefit amount. The Pension Attorney is comfortable with the committee moving forward with this request even though the normal process was not followed. Member Doran moved to accept into evidence the medical reports from Alexander B. Sochet, M.D. and Don Simmler, M.D. and the Department of Veterans Affairs rating decision. The motion was duly seconded and carried unanimously. Member Schmalzbauer moved that the PAC (Pension Advisory Committee) waive its normal procedures and find that Gary Gustafson is disabled due to a non-job connected illness, that such disability renders Mr. Gustafson unable to perform any work for the employer, and that the request meets pension ordinance criteria related to a non-job connected disability. The motion was duly seconded. In response to a question, Mr. Roseto reviewed how pensions are calculated. Upon the vote being taken, the motion carried unanimously. Pension Advisory 2010-06-10 6 7 - Director's Report: None. 8 - Committee Members to be Heard: Member DeWitt requested information regarding proposed Pension changes. Mr. Roseto reviewed referendum deadlines and said no update is available regarding City use of the most recent mortality table. That change requires Ordinance and referendum approval. Concern was expressed that enhanced benefits resulting from use of an outdated mortality table negatively affects the pension plan. Members welcomed Member Jonson to the committee and expressed best wishes to employees who recently retired, including Mr. Gustafson. Member Jonson requested information regarding a FPPTA (Florida Public Pension Trustees Association) conference and a list of components considered when comparing Pension Fund and Social Security costs. It was stated that the FPPTA conference addresses nationwide issues; attendance at fall investment training sessions was recommended. It was noted the WEP (Windfall Elimination Provision) reduces the amount of earned Social Security benefits that pension plan retirees receive. 9 - Adjourn The meeting adjourned at 9:33 a.m. Chair Pension Advisory Co mittee Pension Advisory 2010-06-10 7