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10/18/2010 4 PENSION TRUSTEES AGENDA Location: Council Chambers - City Hall Date: 10/18/2010- 9:00 AM 1. Call to Order 2. Approval of Minutes 2.1 Approve the minutes of the September 20, 2010 Pension Trustees Meeting as submittee in written summation by the City Clerk. Attachments 3. Pension Trustee Items 3.1 Approve acceptance of new hires into Pension Plan as listed. Attachments 3.2 Approve the request by Edith Coppersmith, widow of John Coppersmith, Finance Department, to be granted a death benefit under Section 2.397 of the Employees' Pension Plan. Attachments 3.3 Approve the requests of employees Michael Jackson, Gas Department, and Carla Collins, Police Department, to vest their pensions as provided by Section 2.397 of the Employee's Pension Plan. Attachments 4. Other Business 5. Adjourn Meeting Date: 10/18/2010 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the minutes of the September 20, 2010 Pension Trustees Meeting as submittee in written summation by the City Clerk. SUMMARY: Review Approval: 1) Clerk Cover Memo Item # 1 Attachment number 1 Page 1 of 6 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES CITY OF CLEARWATER September 20, 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 Cynthia E. Goudeau - Deputy City Clerk. To provide continuity for research, items are in agenda order and not necessarily discussed in that order. 1. Call to Order The meeting was called to order at 9:37 a.m. at City Hall. 2. Approval of Minutes 2.1 Approve the '2 11 2010 Pension Trustees eeti as submitted in .jr--- ?k : Clerk. Trustee Bill Jonson moved to approve the minutes of the August 16, 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 Pension Trustees 2010-09-20 Item #11 Attachment number 1 Page 2 of 6 were: Eagle Asset Management, Riverbridge Partners, Cortina Asset Management and Lee Munder. The product Lee Munder offered in the search is different from the pension plan's current investment product. Staff worked with Cap Trust and decided to interview the following firms: Eagle Asset Management, Riverbridge Partners and Lee Munder Based on the interviews and other due diligence, the Pension Investment Committee recommends the hiring of Riverbridge Partners as the Pension Plan's small cap growth manager. The fee Riverbridge charges is 0.90% (90 basis points) which represents a special fee Cap Trust negotiated with Riverbridge, as opposed to their standard fee of 1 % (100 basis points). This fee is lower than the average fee comparable managers charge. Staff will work with Northern Trust, the Pension Plan's custodian, to facilitate the transfer of assets from Lee Munder to Riverbridge. It should be noted that during July, staff began the process of rebalancing the portfolio in accordance with the approved assets allocation study results. As part of that rebalancing, more than half of the assets under Lee Munder's management were moved to ING, our large cap growth manager. This limited our exposure to the Lee Munder product during the time when they are moving toward closing the product. Trustee George N. Cretekos moved to approve a contract with Riverbridge Partners as a small cap growth manager for the Employees Pension Plan and authorize the appropriate officials to execute the same. The motion was duly seconded and carried unanimously. 3.2 Approve the t the Pension Plans small cap growth manager ana! a -Hi ials to execute the same. Staff received notice in mid July that the pension plan's current small cap growth manager, Lee Munder, was terminating the product in which a portion of the Pension Plan assets were invested. Staff and Cap Trust, the Pension Plan's consultant, felt it is was more appropriate for another manager to manage this asset class. Staff and Cap Trust are recommending the hiring of Riverbridge to manage these assets under another agenda item It should be noted that during July, staff began the process of rebalancing the portfolio in accordance with the approved assets allocation study results. As part of that rebalancing, more than half of the assets under Lee Munder's management were moved to ING, the pension plan's large cap growth manager. This limited the plan's exposure to the Lee Munder product during the time it was being closed. If the trustees approve these actions, the assets will be removed from Lee Munder to Riverbridge Partners. Northern Trust, the pension plan's custodian, will help facilitate the transfer. Trustee John Doran moved to approve the termination of Lee Munder as the Pension Plans small cap growth manager and authorize the appropriate officials to execute the same. The motion was duly seconded and carried unanimously. Pension Trustees 2010-09-20 Item #21 Attachment number 1 Page 3 of 6 3.36ccet new hires into Pension Plan as listed. Pension Name, Job. Class, & Dept./Div. ervis Ochoa, Administrative Analyst/Public Utilities ire Date 1/10 Jeremy Kotter, Solid Waste Wkr./Sol. Waste-Gen. Ser. Robert Bostick, Solid Waste Wkr./Sol. Waste-Gen. Ser. Michael Finocchio, WWTP Oper. Trainee/Public Utilities Sean Witherspoon, Electronics Technician/Engineering 2/15/10 3/4/10 5/24/10 7/19/10 originally hired as temporary on 2/15/10; status changed to permanent and pension eligible as of 7/17/10 **originally hired as temporary on 3/4/10; status changed to permanent and pension eligible as of 7/17/10 ***originally hired as temporary on 5/24/10; status changed to permanent and pension eligible as of 7/17/10 Pension Elig. Date 6/21/10 7/17/10* 7/17/10** 7/17/10*** 7/19/10 Trustee Paul Gibson moved to approve 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. 3.4 rF, arlsc n_ u1downey, Joseph Arrien, Muhammad a? :ahir )L ' granted re uLr ension_ under Sections ?. ' °s ee ension plan, a; r, mm n( the Pension 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 and 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 and Survivor Annuity, this pension will approximate $26,025 annually. Pension Trustees 2010-09-20 Item #31 Attachment number 1 Page 4 of 6 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 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 and 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 and 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 and Survivor Annuity, this pension will approximate $84,583 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. Mr. Carlson, Mr. Wolfe, Ms. Muldowney, Mr. Arrien and Mr. Abdur-Rahim 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. Trustee Bill Jonson moved to grant Mark Carlson, Gregory Wolfe, Elaine Muldowney, Joseph Arrien, Muhammad Abdur-Rahim and Cynthia Goudeau regular pensions under Sections 2.397 and 2.398 of the employee pension plan, as recommended by the Pension Advisory Committee. The motion was duly seconded and carried unanimously. Pension Trustees 2010-09-20 Item #41 Attachment number 1 Page 5 of 6 Jim Sokal, 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. 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 2.397 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. Sokal 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 also (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. Marshall would have completed 20 years of service on June 9, 2017. His pension will be effective July 1, 2017. Trustee John Doran moved to allow Katrina Breedlove, Jim Sokal, Ami Beery and David Marshall to vest their pensions as provided by Section 2.397 of the Employees' Pension Plan, as recommended by the Pension Advisory Committee. The motion was duly seconded and carried unanimously. Pension Trustees 2010-09-20 Item #51 Attachment number 1 Page 6 of 6 4. Other 5. The meeting was adjourned at 9:40 a.m. Chair Employee's Pension Plan Trustees Attest City Clerk Pension Trustees 2010-09-20 Item #61 Meeting Date: 10/ 18/20 10 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve acceptance of new hires into Pension Plan as listed. SUMMARY: Pension Name, Job Classification, & Department/Division Hire Date Elig Date Anthony Higgins, WWTP Operator C/Public Utilities 7/26/10 7/26/10 Susan Burns, Police Communications Operator/Police 9/24/93 7/17/10 Sharon Huskey, Library Assistant/Library 3/17/09 7/31/10 ** *originally employed as part-time on 9/24/93; changed to full-time and pension eligible as of 7/17/10 **originally employed as temporary on 3/17/90; changed to permanent part-time on 10/10/09; promoted to full-time position and pension eligible as of 7/31/10 Review Approval: 1) Financial Services 2) Human Resources Cover Memo Item # 2 Meeting Date: 10/18/2010 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the request by Edith Coppersmith, widow of John Coppersmith, Finance Department, to be granted a death benefit under Section 2.397 of the Employees' Pension Plan. SUMMARY: 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. Review Approval: 1) Human Resources Cover Memo Item # 3 Page 1 of 2 CITY OF CLEARWATER PENSION APPLICATION--DEATH BENEFIT The General Employees' Pension Plan of the City of Clearwater provides that in the event of the death of a vested Participant in the Plan prior to termination of employment, his/her beneficiary shall be entitled to a death benefit pension OR a return of the contributions made by the Participant along with 5% simple interest. Y y /- I. ECLN4) (210 Ip In eV'S /Y) t''VJ do hereby certify that I am the beneficiary of ?O h+?1 L (20(DUJ('VS?n J _b b . a vested Participant in the Pension Plan whose death occurred on , AV U ST c?-3 70 . WO , (attach certified copy of death certificate) and I elect to receive (check only one item below): Death Benefit Return of Contributions My beneficiary status is that of: Surviving Spouse (attach copy of Marriage Certificate) Dependent Child under the age of 18 (attach Birth Certificate or other relevant documentation), there being no surviving spouse f 4 Applicant's ig ature STATE OF FLORIDA The foregoin instrument was acknowledged before me this COUNTY OF PINELLAS pp 1Ay igi V by (Sl( H) COW261ni who is personally known to me or who has provided as identification and who did/did not take an oath. NOTARY PUBUCSTATB OF FLORIDA "" Deborah L. Ford Notary Public :Commission # DD763426 r Expires: MAY 15, 2012 soNDFD Txxu ATL.,,. rC SONnLNG Co..LNC. O ??A->f 1 f? r? Name of Notary Printed My Commission expires To be completed by Human Resources Department: Employees Job Class Aclc_ounk4kY!? ec-k vl II' e i'a n Sex F Department: %, elq V Division: Benefits Date ff d Date of Hire: t ?1 y&" Item # 3 Attachment num er Page 2 of 2 II Estimated Pension Worksheet II Estate of John Coppersmith LAST DATE PAID: 8/23/2010 BENEFITS DATE 5/2/1988 CREDITED SERVICE 22.3083 Prepared by: Deborah Ford Date: 8/30/10 GROSS CALENDAR PENSION YEAR EARNINGS 2005 $37,020.17 2006 $37,807.54 2007 $39,710.44 2008 $40,085.62 2009 $41,172.92 $195,796.69 (5 Year Total) 5/ $39,159.34 (Yearly Avg) 12/ $3,263.28 (Monthly Avg) x 0.0275 (Benefit Rate) x 22.3083 (Yrs of Service) $2,001.95 (Est Mtly Pension) Item # 3 Meeting Date: 10/18/2010 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the requests of employees Michael Jackson, Gas Department, and Carla Collins, Police Department, to vest their pensions as provided by Section 2.397 of the Employee's Pension Plan. SUMMARY: 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 2.397 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 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. Review Approval: 1) Human Resources Cover Memo Item # 4 4 IE?VED AUG 7 1010 APPLICATION FOR VESTED RIGHTS PENSION H. R. DEPT i ? C-? CLe-1 '< a CL S 0 being a person leaving employment with the T City of Clearwater, Florida, and having completed ten (10) or more years of credited service, soh service having occurred during the period from (date o? entrynto Pension Plan) v? 30? ) 4.to (date of resignation or change of status) uc tJS /6' d m/ d hereby makes application to receive the vested rights pension provi ed for by the City Code of Ordinances. As such former employee, I understand the pension requested will be computed pursuant to the provisions of the City Code of Ordinance in effect on the date of resignation. I hereby further certify that my date of birth is OC ?cr al. 1 q (,.o The date I will begin to receive my pension will be Noa t,-r)b et-- /1 001S Further, I additionally certify that I have made no application seeking to obtain a return of the contributions that I paid into the Pension Fund during the period of my employment set forth above, I have not been convicted of a felony during my period of employment, and I have not received any other type of pension from the City. X . rye j aJ-?- Signature Department/Division Job Classification Social Security Number 03® Ck -7 o Street Address a1vn 4Aol, FL City, State, Zip Code STATE OF FLORIDA The foregoing instrument was acknowledged before COUNTY OF PINELLAS me this 16 day of AV ci U 4- , 20 10 by Mk,C kGte( 'Ta kaa who i ersonally know to me r who has provided as identification and who di id no take an oath. Notary Public L Name of Notary Printed My commission expires: °'°°°"'°'°?'R"?sTiN?s..........' fi? Comm# DD0745115 .0. 1213012011 Fbrm Notary Assn.. W eennan ....°a..........uuu??uu°uu?e Rev. 4/09 Vested PAN' F Page 2 of 2 APPLICATION FOR VESTED RIGHTS PENSION ? j ?'??/? ?? I ?/ being a person leaving employment with the City of Clearwater, Florida, and having completed ten (10) or more years of credited service, Bch service having occurred during the period from (date oA entry into Pension Plan) /V9 to (date of resignation or change of status) u uS f- ? C)L U/ v hereby ak s application to receive the vested rights pension provid for by the City Code of Ordinances. As such former employee, I understand the pension requested will be computed pursuant to the provisions of the City Code of Ordinance in effect on the date of resignation. hereby further certify that my date of birth is Apo'-I` l 134 15 S The date I will begin to receive my pension will be Aq-_? / a U / Further, I additionally certify that I have made no application seeking to obtain a return of the contributions that I paid into the Pension Fund during the period of my employment set forth above, I have not been convicted of a felony during my period of employment, and I have not receiv d any other type f pension from the City. Signature Social Security Number O It CC- Department/Division 3011'cc T.eyol,ce- reCA? Job Classification Street Address City, State, Zip Code STATE OF FLORIDA The foregoing instrument was acknowledged before COUNTY OF PINELLAS me this day of 20 /b by 0 r 1 Gam. (20 / who is personally know to me or who has provided as identification and who did/did not take an oath. _- OL4? Notary Public 64ame of Notary Printed My commission expires: Efe=s OF rW Deborah L. Ford A _4 -Commission #DD763426 Expires: MAY 15, 2012 BONDED MU ATI.A.\"TIC BONDING Co, INC. Rev. 4109 Vested Peh't - F#rm4