07/13/2010
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
MINUTES
CITY OF CLEARWATER
July 13, 2010
Present: Trustee/Chair Frank Hibbard, Trustee George N. Cretekos, Trustee John
Doran, Trustee Paul Gibson, and Trustee Bill Jonson.
Also William B. Horne II - City Manager, Jill S. Silverboard - Assistant City
present: Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin - City Attorney,
Cynthia E. Goudeau - City Clerk, and Rosemarie Call - Management Analyst.
To provide continuity for research, items are in agenda order although not
necessarily discussed in that order.
1. Call to Order - Trustee/Chair Frank Hibbard
The meeting was called to order at 9:53 a.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the May 17, 2010 Pension Trustees meeting as submitted
in written summation by the City Clerk.
Trustee Paul Gibson moved to approve the minutes of the May 17, 2010 Pension
Trustees meeting as submitted in written summation by the City Clerk. The motion was
duly seconded and carried unanimously.
3. Pension Trustee Items
3.1 Approve New Hires for Membership in Pension Plan
Hire Pension Elig.
Name, Job. Class, & Dept./Div. Date Date
Christopher Buehler, WWTP Oper. Trne./Pub.
Util. 5/8/10 5/8/10
Robert Shulmister, WWTP Oper. Trne./Pub.
Util. 5/10/10 5/10/10
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Gregg Lonkey, Marine Fac. Oper./Marine &
Aviation 4/14/07 5/8/10 *
Frederick Hemerick, Wtr. Treat. Pl. Chief Oper./Pub.
Util. 5/24/10 5/24/10
* Originally hired as part-time on 4/14/07; status changed to full-time and pension
eligible as of 5/8/10
Trustee Bill Jonson moved to accept the employees listed into the City of Clearwater’s
Employees’ Pension Plan as approved by the Pension Advisory Committee. The motion
was duly seconded and carried unanimously.
3.2 Approve Regular Pensions as Submitted by Employees
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.
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
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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.
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.
Pension Trustees 2010-07-13 3
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 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
Pension Trustees 2010-07-13 4
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
Pension Trustees 2010-07-13 5
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 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. Mr. Niemiller,
Mr. Walton, Mr. Bigley, Mr. Nungester, Mr. Lueders, Mr. Yankus, Mr. Harrington,
and Mr. Doyle qualify under the age 55 and 25 years of service criteria. Mr.
Turnbull, Mr. King, Mr. Gundel, Mr. Hooey, Mr. Van Duyne, Mr. 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. Mr. Vaughan, Mr. Stewart, Mr. Kelly, and
Mr. Dawson qualify under the hazardous duty criteria.
Trustee John Doran moved to grant Richard Niemiller, Public Utilities Department; John
Walton, Gas Department; Stephen Bigley, Parks & Recreation Department; James
Nungester, Solid Waste/General Services Department; William Lueders, Parks &
Recreation Department; Bruno Yankus, Public Utilities Department; Michael Harrington,
Public Utilities Department; David Doyle, Police Department; Edward Turnbull, Solid
Waste/General Services Department; Thomas King, Solid Waste/General Services
Department; Robert Gundel, Solid Waste/General Services Department; Roger Hooey,
Public Utilities Department; Robert VanDuyne, Engineering Department; Brian
McLaughlin, Police Department; Cara Cooper, Police Department; Marietta Cooper,
Police Department; Theresa Coffey, Library Department; Virginia Costa, Fire
Department; Gwen Hollander, Legal Department; Elizabeth Robinson, Library
Department; Billy McKeever, Parks & Recreation Department; Dwayne Vaughan, Fire
Department; Gregory Stewart, Police Department; Terence Kelly, Police Department;
and Scott Dawson, Police Department a regular pension under Section 2.393 of the
Employees’ Pension Plan as approved by the Pension Advisory Committee. The motion
was duly seconded and carried unanimously.
3.3 Approve Vested Pension as Submitted by Employee
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
Pension Trustees 2010-07-13 6
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.
Trustee George N. Cretekos moved to allow Thomas Coyle, Police Department, to vest
his pension under Section 2.393 (p) of the Employees Pension Plan as approved by the
Pension Advisory Committee. The motion was duly seconded and carried unanimously.
3.4 Approve changing the performance measurement benchmark for ING Investment
Management Co. (ING IM) from the Standard and Poors 500 Index to the Russell
1000 Growth Index and authorize the appropriate officials to execute same.
ING IM (formerly Aetna Capital Management) was one of the first two domestic
equity managers hired by the pension plan. The benchmark chosen at the time
was the Standard and Poors 500 Index, which was one of the few indexes
available. The Standard and Poors 500 is composed of many of the largest
companies listed on the New York and NASDAQ stock exchanges and includes
both growth and value stocks.
Since hiring ING IM, the pension plan has diversified by adding additional
managers representing various investment styles. ING IM occupies the space in
the portfolio for the large market capitalization (large cap) growth manager. Staff
has been working to update the various benchmarks and recommends that the
more appropriate benchmark for ING IM, as a large cap growth manager, would
be the Russell 1000 Growth Index. This index measures the performance of the
large-cap growth segment of the U.S. equity universe. It includes those Russell
1000 large-cap companies with higher price-to-book ratios and higher forecasted
growth values.
The Pension Investment Committee concurs that the Russell 1000 Growth Index
would provide a better measure of ING Investment Management’s performance
as a large cap growth manager. The pension plan’s attorney has approved the
agreement amendment per the attachment.
Trustee Paul Gibson moved to approve changing the performance measurement
benchmark for ING Investment Management Co. (ING IM) from the Standard and Poors
500 Index to the Russell 1000 Growth Index and authorize the appropriate officials to
execute same. The motion was duly seconded and carried unanimously.
Pension Trustees 2010-07-13 7
4. Other Business
In response to a question, Human Resources Director Joe Roseto said staff will be
asking Council in August to approve a timeline regarding changes to the Pension Plan
for a 2012 referendum.
Finance Director Margie Simmons said the city was notified on Friday that the Small
Cap Growth Manager will discontinue. Staff will be fast tracking the replacement.
5. Adjourn
The meeting was adjourned at 9:59 a.m.
Chair
Employee's Pension Plan Trustees
Attest
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Pension Trustees 2010-07-13 8