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09/09/2010 PENSION ADVISORY COMMITTEE MEETING MINUTES CITY OF CLEARWATER September 9, 2010 Present: Nathan Hightower Chair John Doran Committee Member/Councilmember Paul Gibson Committee Member/Councilmember Brian De Witt Committee Member Bill Jonson Committee Member/Councilmember Absent: Tom Jensen Vice-Chair John Schmalzbauer 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 – August 12, 2010 Member Gibson moved to approve the minutes of the regular Pension Advisory Committee meeting of August 12, 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 to Vest Pensions 3.1. Recommend approval of employee requests to vest pensions as listed and as provided by Section 2.393(p) Michael Jackson, Gas Specialist, Gas Department, was employed by the City on June 30, 1986, and began participating in the Pension Plan on that date. Mr. Jackson terminated from City employment on August 16, 2010. Carla Collins, Police Service Technician, Police Department, was employed by the City on January 4, 1989, and began participating in the Pension Plan on that date. Ms. Collins terminated from City employment on August 26, 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. Collins would have completed 20 years of service and reached age 55 on April 13, 2011. Her Pension Advisory 2010-09-09 1 pension will be effective May 1, 2011. Mr. Jackson would have completed twenty years of service and reached age 55 on October 21, 2015. His pension will be effective November 1, 2015. Member Gibson moved to recommend approval of employee requests to vest pensions as listed and as provided by Section 2.393(p). The motion was duly seconded and carried unanimously. 4 – Approval of New Hires as Plan Members 4.1 Recommend acceptance of new hires into Pension Plan as listed. Pension Name, Job Classification, & Department/Division Hire Date Elig. Date Anthony Higgins, WWTP Operator C/Public Utilities 07/26/10 07/26/10 Susan Burns, Police Communications Operator/Police 09/24/93 07/17/10 Sharon Huskey, Library Assistant/Library 03/17/09 07/31/10 Susan Burns originally was employed as part-time on September 24, 1993; changed to full-time and pension eligible as of July 17, 2010. Sharon Huskey originally was employed as temporary on March 17, 1990; changed to permanent part-time on October 10, 2009; promoted to full-time position and pension eligible as of July 31, 2010. Member Doran moved to recommend acceptance of new hires into Pension Plan as listed. The motion was duly seconded and carried unanimously. 5 – Pending/New Business 5.1. Recommend approval of request for survivor’s pension as listed and as provided by Section 2.397. John Coppersmith, Accounting Technician, Finance Department , was employed by the City on May 2, 1988, and his pension service credit was effective on that date. Mr. Coppersmith passed away on August 23, 2010. Edith Coppersmith, widow of John Coppersmith, applied for death benefits on August 30, 2010. Mr. and Mrs. Coppersmith were legally married on April 14, 2000, thereby entitling her to death benefits under provisions of the Employees’ Pension Plan. Based on an average salary of approximately $39,159 per year over the past five years, this pension will approximate $24,023 annually. The actual amount of Mrs. Coppersmith’s pension will be computed by the Finance Department. This pension will be effective September 1, 2010. Member Jonson moved to recommend approval of request for survivor’s pension as listed and as provided by Section 2.397. The motion was duly seconded and carried unanimously. 6 – Director’s Report Human Resources Director Joe Roseto said the actuary has begun reviewing contemplated changes to the Pension Plan to determine potential savings or costs. Once this Pension Advisory 2010-09-09 2 information is presented to the City Council, the collective bargaining process will begin. No PAC (Pension Advisory Committee) review is planned. The goal remains to submit changes for referendum in 2012. In response to questions, Mr. Roseto said two public safety disability applications are being processed. The court has not ruled on Thomas Stubblefield's appeal of the PAC's decision. Mr. Roseto will report if the Pension Plan provides for the recovery of attorney fees if the Plan prevails in court. 7 - Committee Members to be Heard Members expressed condolences to the family of John Coppersmith, a well respected employee. 8 - Adjourn The meeting adjourned at 9:10 a.m. ;,W Chair Pension dvisory Committee Pension Advisory 2010-09-09 3