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07/08/2010 PENSION ADVISORY COMMITTEE MEETING MINUTES CITY OF CLEARWATER July 8, 2010 Present: Nathan Hightower Chair Tom Jensen Vice-Chair John Schmalzbauer Committee Member John Doran Committee Member/Councilmember Paul Gibson Committee Member/Councilmember Brian De Witt Committee Member Bill 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 minutes of the June 10, 2010 meeting Member Jensen moved to approve the minutes of the regular Pension Advisory Committee meeting of June 10, 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 Jeanette Paterkiewicz, Staff Assistant, Public Utilities Department , was employed by the City on August 7, 1989, 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 $36,007 per year over the past five years, the formula for computing regular pensions, and Ms. Paterkiewicz’ selection of the Joint & Survivor Annuity, this pension will approximate $20,775 annually. Diana Henderson, Police Service Technician, Police Department , was employed by the City on December 4, 1989, 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 $44,128 per year over the past five years, the formula for computing regular pensions, and Ms. Henderson’s selection of the Joint & Survivor Annuity, this pension will approximate $25,170 annually. Charles Maybin, Parks Service Technician III, Parks & Recreation Department , was employed by the City on January 15, 1990, 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 $43,471 per year over the past five years, the formula for computing regular pensions, and Mr. Maybin’s selection of the 75% Joint & Survivor Annuity, this pension will approximate $24,643 annually. Pension Advisory 2010-07-08 1 Sandra Herman, Planner III, Planning & Development Department , was employed by the City on January 27, 1986, 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 $70,352 per year over the past five years, the formula for computing regular pensions, and Ms. Herman’s selection of the Life Annuity, this pension will approximate $52,195 annually. Beverly Verner, Staff Assistant, Parks & Recreation Department , was employed by the City on November 4, 1985, 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 $35,120 per year over the past five years, the formula for computing regular pensions, and Ms. Verner’s selection of the Joint & Survivor Annuity, this pension will approximate $23,742 annually. Julia Jablonski, Solid Waste Program Coordinator, Solid Waste/General Services Department , was employed by the City on December 28, 1987, and her pension service credit is effective on February 22, 1988. Her pension will be effective August 1, 2010. Based on an average salary of approximately $52,463 per year over the past five years, the formula for computing regular pensions, and Ms. Jablonski’s selection of the Joint & Survivor Annuity, this pension will approximate $32,377 annually. Carl Swigart, Solid Waste Supervisor I, Solid Waste/General Services Department , was employed by the City on February 12, 1981, and his pension service credit is effective on that date. His pension will be effective December 1, 2010. Based on an average salary of approximately $54,412 per year over the past five years, the formula for computing regular pensions, and Mr. Swigart’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $43,533 annually. Alison Johnson, Storeskeeper, Public Utilities Department , was employed by the City on February 2, 1987, 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 $41,621 per year over the past five years, the formula for computing regular pensions, and Ms. Johnson’s selection of the Life Annuity, this pension will approximate $28,390 annually. Sandra Howard, Customer Service Accounting Representative, Customer Service Department , was employed by the City on March 26, 1984, 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 $38,400 per year over the past five years, the formula for computing regular pensions, and Ms. Howard’s selection of the Joint & Survivor Annuity, this pension will approximate $27,820 annually. Kate MacDonald, Police Information Technician II, Police Department , was employed by the City on November 10, 1986, and her pension service credit is effective on that date. Her pension will be effective September 1, 2010. Based on an average salary of approximately $40,254 per year over the past five years, the formula for computing regular pensions, and Ms. MacDonald’s selection of the Joint & Survivor Annuity, this pension will approximate $26,300 annually. Robert Maran, Engineering Specialist III, Engineering Department , was employed by the City on November 19, 1973, and his pension service credit is effective on October 9, 1984. His pension will be effective September 1, 2010. Based on an average salary of approximately Pension Advisory 2010-07-08 2 $71,806 per year over the past five years, the formula for computing regular pensions, and Mr. Maran’s selection of the Life Annuity, this pension will approximate $58,214 annually. William Fairchild, Public Utilities Technician II, Public Utilities Department , was employed by the City on May 23, 1988, 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 $47,694 per year over the past five years, the formula for computing regular pensions, and Mr. Fairchild’s selection of the Joint and Survivor Annuity, this pension will approximate $29,197 annually. William Kunzman, Parking Enforcement Specialist, Engineering Department , was employed by the City on March 23, 1987, and his pension service credit is effective on March 31, 1987. His pension will be effective August 1, 2010. Based on an average salary of approximately $40,514 per year over the past five years, the formula for computing regular pensions, and Mr. Kunzman’s selection of the Life Annuity, this pension will approximate $31,779 annually. Steven Grasso, Tradesworker, Marine & Aviation Department , was employed by the City on October 7, 1982, and his pension service credit is effective on January 5, 1985. His pension will be effective September 1, 2010. Based on an average salary of approximately $47,289 per year over the past five years, the formula for computing regular pensions, and Mr. Grasso’s selection of the Joint and Survivor Annuity, this pension will approximate $33,349 annually. Betsy Clement, Public Information Specialist, Public Communications Department, was employed by the City on August 1, 1990, and her pension service credit is effective on that date. Her pension will be effective September 1, 2010. Based on an average salary of approximately $54,161 per year over the past five years, the formula for computing regular pensions, and Ms. Clement’s selection of the 50% Joint and Survivor Annuity, this pension will approximate $30,851 annually. Patricia Meri, Customer Service Specialist, Customer Service Department , was employed by the City on August 5, 1985, and her pension service credit is effective on that date. Her pension will be effective September 1, 2010. Based on an average salary of approximately $40,946 per year over the past five years, the formula for computing regular pensions, and Ms. Meri’s selection of the Joint and Survivor Annuity, this pension will approximate $28,231 annually. Rick Mishler, Utilities Mechanic, Public Utilities Department , was employed by the City on June 17, 1985, 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 $55,615 per year over the past five years, the formula for computing regular pensions, and Mr. Mishler’s selection of the 75% Joint & Survivor Annuity, this pension will approximate $38,642 annually. Patricia Warren, Administrative Support Manager, Information Technology Department , was employed by the City on July 17, 1978, and her pension service credit is effective on that date. Her pension will be effective September 1, 2010. Based on an average salary of approximately $55,199 per year over the past five years, the formula for computing regular pensions, and Ms. Warren’s selection of the Joint & Survivor Annuity, this pension will approximate $48,743 annually. Pension Advisory 2010-07-08 3 Douglas King, Drafting & Mapping Technician, Engineering Department , was employed by the City on June 12, 1978, 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 $43,945 per year over the past five years, the formula for computing regular pensions, and Mr. King’s selection of the Life Annuity, this pension will approximate $42,601 annually. Richard Hamilton, Professional Land Surveyor, Engineering Department , was employed by the City on January 6, 1975, and his pension service credit is effective on July 7, 1975. His pension will be effective August 1, 2010. Based on an average salary of approximately $59,599 per year over the past five years, the formula for computing regular pensions, and Mr. Hamilton’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $55,704 annually. John Richter III, Construction Inspector II, Engineering Department , was employed by the City on June 30, 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 $44,049 per year over the past five years, the formula for computing regular pensions, and Mr. Richter’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $35,635 annually. Jerry Williams, Solid Waste Equipment Operator, Solid Waste/General Services Department , was employed by the City on August 20, 1980, 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 $35.687 per year over the past five years, the formula for computing regular pensions, and Mr. Williams’ selection of the Joint & Survivor Annuity, this pension will approximate $29,442 annually. Russell Dunning, Public Services Technician III, Public Services Department , was employed by the City on May 21, 1990, and his pension service credit is effective on January 31, 1998. His pension will be effective September 1, 2010. Based on an average salary of approximately $45,942 per year over the past five years, the formula for computing regular pensions, and Mr. Dunning’s selection of the 10-Year Certain and Life Annuity, this pension will approximate $15,054 annually. Barbara Schill, Senior Accountant, Finance Department , was employed by the City on June 19, 2000, and her pension service credit is effective on that date. Her pension will be effective September 1, 2010. Based on an average salary of approximately $45,736 per year over the past five years, the formula for computing regular pensions, and Ms. Schill’s selection of the Joint & Survivor Annuity, this pension will approximate $12,815 annually. Gary Johnson, 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 $61,596 per year over the past five years, the formula for computing regular pensions, and Mr. Johnson’s selection of the 10- year Certain & Life Annuity, this pension will approximate $33,878 annually. Larry Harbert, 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 $68,614 per year over the past Pension Advisory 2010-07-08 4 five years, the formula for computing regular pensions, and Mr. Harbert’s selection of the Joint & Survivor Annuity, this pension will approximate $37,738 annually. Robert Fava, Police Officer, Police Department , was employed by the City on March 29, 1989, 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 $74,450 per year over the past five years, the formula for computing regular pensions, and Mr. Fava’s selection of the Joint & Survivor Annuity, this pension will approximate $43,347 annually. Rodney Wilt, Fire Lieutenant, Fire Department , was employed by the City on October 5, 1987, 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 $70,628 per year over the past five years, the formula for computing regular pensions, and Mr. Wilt’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $43,912 annually. James Thomas, Fire Lieutenant, Fire Department , was employed by the City on January 4, 1988, 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 $76,072 per year over the past five years, the formula for computing regular pensions, and Mr. Thomas’ selection of the 10-year Certain & Life Annuity, this pension will approximate $50,341 annually. Mark Beaudette, Police Officer, Police Department , was employed by the City on May 17, 1989, 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 $70,139 per year over the past five years, the formula for computing regular pensions, and Mr. Beaudette’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $40,286 annually. Robert Wierzba, Police Sergeant, Police Department , was employed by the City on March 23, 1987, 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 $96,958 per year over the past five years, the formula for computing regular pensions, and Mr. Wierzba’s selection of the 100% Joint and Survivor Annuity, this pension will approximate $61,931 annually. Norman Jernigan, Fire Medic Lieutenant, Fire Department , was employed by the City on January 6, 1986, 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 $80,936 per year over the past five years, the formula for computing regular pensions, and Mr. Jernigan’s selection of the 10-Year Certain and Life Annuity, this pension will approximate $54,871 annually. Lawrence Borland, Police Sergeant, Police Department , was employed by the City on October 18, 1982, 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 $82,750 per year over the past five years, the formula for computing regular pensions, and Mr. Borland’s selection of the 100% Joint and Survivor Annuity, this pension will approximate $61,043 annually. James Houck, Police Officer, Police Department , was employed by the City on April 3, 1989, 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 $66,831 per year over the past five Pension Advisory 2010-07-08 5 years, the formula for computing regular pensions, and Mr. Houck’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $38,744 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 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 Police Officer, Fire Lieutenant, Police Sergeant, and Fire Medic Lieutenant as meeting the hazardous duty criteria. Ms. Paterkiewiz, Ms. Henderson, Ms. Herman, Ms. Verner, Ms. Jablonski, Ms. Johnson, Ms. Howard, Ms. MacDonald, Ms. Clement, Ms. Meri, and Messrs. Maybin, Swigart, Maran, Fairchild, Kunzman, Grasso, and Mishler qualify under the age 55 and 25 years of service criteria. Ms. Warren and Messrs. King, Hamilton, Richter, and Williams qualify under the 30 years of service criteria. Mr. Dunning and Ms. Schill qualify under the age 65 and 10 years of service criteria. Messrs. Johnson, Harbert, Fava, Wilt, Thomas, Beaudette, Wierzba, Jernigan, Borland, and Houck qualify under the hazardous duty criteria. Member Schmalzbauer moved to recommend approval of the requests for regular pensions forJeanette Paterkiewicz, Diana Henderson, Charles Maybin, Sandra Herman, Beverly Verner, Julia Jablonski, Carl Swigart, Alison Johnson, Sandra Howard, Kate MacDonald, Robert Maran, William Fairchild, William Kunzman, Steven Grasso, Betsy Clement, Patricia Meri, Rick Mishler, Patricia Warren, Douglas King, Richard Hamilton, John Richter III, Jerry Williams, Russell Dunning, Barbara Schill, Gary Johnson, Larry Harbert, Robert Fava, Rodney Wilt, James Thomas, Mark Beaudette, Robert Wierzba, Norman Jernigan, Lawrence . Borland, and James HouckThe motion was duly seconded and carried unanimously. 4 - Approval of New Hires as Plan Members Member Doran moved to recommend accepting the following employee into membership in the Pension Plan: Pension Name, Job. Class, & Dept./Div . Hire Date Elig. Date Cliff Norris, Recreation Supervisor I/Parks & Recreation 04/03/80 06/10/10 Chris Norris originally was hired on April 3, 1980, and denied pension; reexamined and pension eligible as of June 10, 2010. The motion was duly seconded. Human Resources Director Joe Roseto reviewed previous Pension Plan practices. Several employees, who were denied acceptance into the Pension Plan, contribute to Social Security. The Plan no longer can deny membership to employees with pre-existing conditions; those conditions are recorded in their files. If approved, Mr. Norris’ pension benefits began accruing on June 10, 2010. Upon the vote being taken, the motion carried unanimously. Pension Advisory 2010-07-08 6 6 - Director's Report: Mr. Roseto recognized Brian DeWitt's reelection to the Committee. Mr. Roseto said proposed Pension changes will not go to referendum this fall. The City is considering additional changes. Finance Director Margie Simmons requested members attending the fall FPPTA (Florida Public Pension Trustees Association) training to contact the Finance Department, which needs to make certain that sufficient funds are available. Member Jonson indicated he will attend. 7 - Committee Members to be Heard: Member Jensen reviewed issues discussed at the recent FPPTA conference. Members thanked retirees for their service to the City and citizens of Clearwater. 8 - Adjourn The meeting adjourned at 9:11 a.m. Ile Chair Pension Advisory C mittee Pension Advisory 2010-07-08 7