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08/12/2010 PENSION ADVISORY COMMITTEE MEETING MINUTES CITY OF CLEARWATER August 12, 2010 Present: Tom Jensen Vice-Chair John Doran Committee Member/Councilmember Paul Gibson Committee Member/Councilmember Brian De Witt Committee Member Bill Jonson Committee Member/Councilmember Absent: Nathan Hightower Chair John Schmalzbauer Committee Member Also Present: Joe Roseto Human Resources Director Patricia O. Sullivan Board Reporter The Vice-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 regular Pension Advisory Committee meeting of July 8, 2010, as submitted in written summation to each board member Member Doran moved to approve the minutes of the regular Pension Advisory Committee meeting of July 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 3.1. Recommend approval of employee requests for regular pensions, as listed Mark Carlson, Construction Inspector II, Engineering Department , was employed by the City on January 26, 1981, and his pension service credit is effective on that date. His pension will be effective November 1, 2010. Based on an average salary of approximately $50,018 per year over the past five years, the formula for computing regular pensions, and Mr. Carlson’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $40,115 annually. Gregory Wolfe, Gas Technician III, Gas Department , was employed by the City on November 19, 1990, 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 $47,159 per year over the past five years, the formula for computing regular pensions, and Mr. Wolfe’s selection of the 75% Joint & Survivor Annuity, this pension will approximate $26,025 annually. Elaine Muldowney, Customer Service Representative, Gas Department , was employed by the City on September 28, 1987, and her pension service credit is effective on that Pension Advisory 2010-08-12 1 date. Her pension will be effective September 1, 2010. Based on an average salary of approximately $35,980 per year over the past five years, the formula for computing regular pensions, and Ms. Muldowney’s selection of the 10-Year Certain & Life Annuity, this pension will approximate $24,779 annually. Joseph Arrien, Fleet Manager, Solid Waste/General Services Department , was employed by the City on October 4, 1982, 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 $66,645 per year over the past five years, the formula for computing regular pensions, and Mr. Arrien’s selection of the Life Annuity, this pension will approximate $58,547 annually. Muhammad Abdur-Rahim, Stormwater Maintenance Manager, Public Services Department, was employed by the City on March 20, 1974, and his pension service credit is effective on October 3, 1983. His pension will be effective November 1, 2010. Based on an average salary of approximately $70,564 per year over the past five years, the formula for computing regular pensions, and Mr. Abdur-Rahim’s selection of the Joint & Survivor Annuity, this pension will approximate $52,475 annually. Cynthia Goudeau, City Clerk, Official Records & Legislative Services Department , was employed by the City on November 27, 1978, and her pension service credit is effective on October 1, 1979. Her pension will be effective October 1, 2010. Based on an average salary of approximately $96,259 per year over the past five years, the formula for computing regular pensions, and Ms. Goudeau’s selection of the 50% Joint & Survivor Annuity, this pension will approximate $84,583 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. Messrs. Carlson, Wolfe, and Arrien, and Ms. Muldowney, qualify under the 20 years of service and at least age 55 criteria and Ms. Goudeau qualifies under this criteria and the 30 years of service criteria. Member Doran moved to recommend approval of employee requests for regular . pensions, as listedThe motion was duly seconded and carried unanimously. 4 - Review and Action on Employee Requests to Vest Pensions 4.1. Recommend approval of employee requests to vest pensions, as listed Katrina Breedlove, Senior Systems Programmer, Information Technology Department, was employed by the City on June 12, 2000, and began participating in the Pension Plan on that date. Ms. Breedlove terminated from City employment on July 2, 2010. Jim Sokol, Electronics Technician, Engineering Department, was employed by the City on January 8, 1996, and began participating in the Pension Plan on that date. Mr. Sokol terminated from City employment on July 2, 2010. Pension Advisory 2010-08-12 2 Ami Beery, Customer Service Coordinator, Customer Service Department, was employed by the City on January 19, 1999, and began participating in the Pension Plan on that date. Ms. Beery terminated from City employment on August 6, 2010. David Marshall, Police Officer, Police Department, was employed by the City on June 9, 1997, and began participating in the Pension Plan on that date. Mr. Marshall terminated from City employment on July 15, 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 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. Breedlove would have completed 20 years of service and reached age 55 on October 2, 2026. Her pension will be effective November 1, 2026. Mr. Sokol would have completed 10 years of service and reached age 65 on June 16, 2013. His pension will be effective July 1, 2013. Ms. Beery would have completed twenty years of service and reached age 55 on August 14, 2025. Her pension will be effective September 1, 2025. Section 2.393 (p) also 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. Marshall would have completed 20 years of service on June 9, 2017. His pension will be effective July 1, 2017. Member Jonson moved to recommend approval of employee requests to vest pensions, as listed. The motion was duly seconded and carried unanimously. 5 - Approval of New Hires as Plan Members 5.1. Recommend acceptance of new hires into Pension Plan, as listed. Pension Name, Job. Class, & Dept./Div . Hire Date Elig. Date Gervis Ochoa, Administrative Analyst/Public Utilities 06/21/10 06/21/10 Jeremy Kotter, Solid Waste Worker/Solid Waste-General Svcs. 02/15/10 07/17/10 Robert Bostick, Solid Waste Worker/Solid Waste-General Svcs. 03/04/10 07/17/10 Michael Finocchio, WWTP Operator Trainee/Public Utilities 05/24/10 07/17/10 Sean Witherspoon, Electronics Technician/Engineering 07/19/10 07/19/10 Jeremy Kotter originally was hired as temporary on February 15, 2010; status changed to permanent and pension eligible as of July 17, 2010. Robert Bostick originally was hired as temporary on March 4, 2010; status changed to permanent and pension eligible as of July 17, 2010. Michael Finocchio originally was hired as temporary on May 24, 2010; status changed to permanent and pension eligible as of July 17, 2010. Pension Advisory 2010-08-12 3 Member Doran moved to recommend acceptance of new hires into Pension Plan as listed. The motion was duly seconded and carried unanimously. 6 - Director's Report: Human Resources Director Joe Roseto said the City Council had approved moving forward with changes to the Pension Plan. General fund reserves will pay for the process. The goal is to submit changes for referendum in 2012. 7 - Committee Members to be Heard: Members thanked retiring employees for their hard work for the City and its citizens. Special notice was made regarding efforts by Cyndie Goudeau and Muhammad Abdur-Rahim. Members Jonson and Doran will attend fall FPPTA (Florida Public Pension Trustees Association) training. Item not on the Agenda A resident recommended reducing Pension Plan expenses. 8 - Adjourn The meeting adjourned at 9:19 a.m C1 Chair Pension Advisory Committee Pension Advisory 2010-08-12 4