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11/01/2010 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES CITY OF CLEARWATER November 1, 2010 Present: Chair/Trustee 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, Rosemarie Call - City Clerk, and Patricia O. Sullivan - Board Reporter. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 1. Call to Order - Chair/Trustee Frank Hibbard The meeting was called to order at 9:06 a.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the October 18, 2010 Pension Trustees meeting as submitted in written summation by the City Clerk. Trustee Bill Jonson moved to approve the minutes of the October 18, 2010 Pension Trustees meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. Pension Trustees 2010-11-01 1 3. Pension Trustee Items 3.1 Approve new hires for membership into Pension Plan as listed. Pension Name, Job. Class, Dept./Div. Hire Date Elig. Date Nicole Allen, Design & Mapping 8/30/10 8/30/10 Tech./Engineering Chris Daugherty, Design & Mapping 8/30/10 8/30/10 Tech./Engineering Kelly Hollinger, Accounting 4/21/03 9/11/10* Clerk/Finance Eric Kelly, Solid Waste Equip. Oper./Solid 9/13/10 9/13/10 Waste/Gen.Ser. Ann Marie Hughes, Accounting Clerk/Finance 9/13/10 9/13/10 Dale Marion, WWTP Operator Trainee/Public 9/13/10 9/13/10 Utilities Kari Connor, Accounting Clerk/Solid Waste/General 9/13/10 9/13/10 Ser. Sheri Bowers, Accounting Clerk/Information 9/20/10 9/20/10 Technology William Olive, Police Com. 9/27/10 9/27/10 Oper./Police Martin Tobin, Systems Prog./Information 9/27/10 9/27/10 Technology Leanne Walker, Library 3/15/10 9/25/10** Assistant/Library *originally hired on 4/21/03 as part-time; voluntarily demoted and pension eligible as of 9/13/10 **originally hired on 3/15/10 as part-time; promoted and pension eligible as of 9/25/10 Trustee John Doran moved to approve new hires for membership into Pension Plan as listed. The motion was duly seconded and carried unanimously. Pension Trustees 2010-11-01 2 3.2 Approve the request of employee Margie Simmons, Finance Department, for a regular pension as provided by Sections 2.397 and 2.398 of the Employees Pension Plan. Margaret Simmons, Finance Director, Finance Department, was employed by the City on September 20, 1982, and her pension service credit is effective on that date. Her pension will be effective March 1, 2011. Based on an average salary of approximately $113,248 per year over the past five years, the formula for computing regular pensions, and Ms. Simmons' selection of the 100% Joint and Survivor Annuity, this pension will approximate $87,475 annually. Section 2.397 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. Ms. Simmons qualifies under the 20 years of service and at least age 55 criteria. Trustee George N. Cretekos moved to approve the request of employee Margie Simmons, Finance Department, for a regular pension as provided by Sections 2.397 and 2.398 of the Employees Pension Plan. The motion was duly seconded and carried unanimously. 3.3 Approve the administrative rule governing the return of employee contributions. The City of Clearwater Employees’ Pension Plan provides for a return of employee contributions upon an employee’s termination should it occur prior to the employee’s early retirement date or normal retirement date. The Plan defines an employee as any person employed as a full-time permanent employee. At times employees will transfer from full-time permanent status to part-time permanent status. Upon this change in status, the employee is no longer eligible to participate in the Plan. There is an ambiguity in the Plan, as full-time employees who have become part- time are not allowed to participate in the Plan. Under these circumstances, the employee should be entitled to a return of his/her contributions. Staff is asking that the Trustees adopt an administrative rule governing the refund of employee contributions. In response to questions, Human Resources Director Joe Roseto said the City does not provide tax advice but encourages employees who request the return of their contributions to contact a tax advisor. Discussion ensued regarding the origin of the ordinance requirement that the plan pay 5% simple interest on returned employee contributions. It was Pension Trustees 2010-11-01 3 recommended that this amount be reviewed when other changes to the pension are considered. Trustee Paul Gibson moved to approve the administrative rule governing the return of employee contributions. The motion was duly seconded and carried unanimously. 4. Other Business - None. 5. Adjourn The meeting was adjourned at 9:12 p.m. Chair Employee's Pension Plan Trustees Pension Trustees 2010-11-01 4