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11/01/2010 4 PENSION TRUSTEES AGENDA Location: Council Chambers - City Hall Date: 11/1/2010- 9:00 AM 1. Call to Order 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. Attachments 3. Pension Trustee Items 3.1 Approve new hires for membership into Pension Plan as listed. Attachments 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. Attachments 3.3 Approve the administrative rule governing the return of employee contributions. Attachments 4. Other Business 5. Adjourn Meeting Date: I 1/ 1/20 10 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the minutes of the October 18, 2010 Pension Trustees meeting as submitted in written summation by the City Clerk. SUMMARY: Review Approval: 1) Clerk Cover Memo Item # 1 Attachment number 1 Page 1 of 3 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES CITY OF CLEARWATER October 18, 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 of research, items are in agenda order although not necessarily discussed in that order. Unapproved Call to Order The meeting was called to order at 9:04 a.m. at City Hall. 2. Approval of Minutes 2.1 pprv the minutes of the September 20, 201 Pension Trustees Meetinq as submitted in written summation by the City Clerk. Trustee Bill Jonson moved to approve the minutes of the September 20, 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 the request by _Edith Coppersmith., widow of John Coppersmith, Finance apart nt, to granted a death benefit under Section 2.397 of the Employees Pension Ian. 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. Pension Trustees 2010-10-18 Item #11 Attachment number 1 Page 2 of 3 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. Trustee John Doran moved to 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. The motion was duly seconded and carried unanimously. 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. Trustee George N. Cretekos moved to 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. The motion was duly seconded and carried unanimously. Pension Trustees 2010-10-18 Item #21 Attachment number 1 Page 3 of 3 3.3 Approve acceptance of new hires into Pension Ian as listed. Name, Job Classification, & Hire Date Pension Elig. Department/Division Date Anthony Higgins, WWTP Operator C/Public 7/26/10 7/26/10 Utilities Susan Burns, Police Communications 9/24/93 7/17/10 Operator/Police Sharon Huskey, Library 3/17/09 7/31/10** Assistant/Library *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 Trustee Paul Gibson moved to approve the employees listed into the Pension Plan. The motion was duly seconded and carried unanimously. 4. Other Business - None. 5. The meeting was adjourned at 9:05 a.m. Chair Employee's Pension Plan Trustees Attest City Clerk Pension Trustees 2010-10-18 Item #31 Meeting Date: I 1/ 1/20 10 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve new hires for membership into Pension Plan as listed. SUMMARY: Name, Job. Class, Dept./Div. Pension Hire Date Elig Date Nicole Allen, Design & Mapping Tech./Engineering Chris Daugherty, Design & Mapping Tech./Engineering Kelly Hollinger, Accounting Clerk/Finance Eric Kelly, Solid Waste Equip. Oper./Solid Waste/Gen.Ser Ann Marie Hughes, Accounting Clerk/Finance Dale Marion, WWTP Operator Trainee/Public Utilities Kari Connor, Accounting Clerk/Solid Waste/General Ser. Sheri Bowers, Accounting Clerk/Information Technology Oper./Police 9/27/10 9/27/10 Martin Tobin, Systems Prog./Information Technology Leanne Walker, Library Assistant/Library 8/30/10 8/30/10 8/30/10 8/30/10 4/21/03 9/11/10 9/13/10 9/13/10 9/13/10 9/13/10 9/13/10 9/13/10 9/13/10 9/13/10 9/20/10 9/20/10 William Olive, Police Com. 9/27/10 9/27/10 3/15/10 9/25/10 ** *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 Review Approval: 1) Clerk Cover Memo Item # 2 Meeting Date: I 1/ 1/20 10 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: 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. SUMMARY: 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. Review Approval: 1) Clerk Cover Memo Item # 3 Attachment number-1- Page 1 of 5 CITY OF CLEARWATER EMPLOYEES' SEPARATION PAY PREFERENCES PREFERENCE #1 Employees can receive a lump sum payment for vacation, floating holiday pay, sick leave incentive, bonus days (if applicable), and 1 /2 of accrued sick leave at the time of separation from the City. There will be no deduction for pension from this lump sum payment nor will this amount count as earnings in the calculation of the pension. The last day of work will be the termination date and pension benefits will begin the following month. PREFERENCE #2 Employee can extend termination date by part or all of the time due for vacation, floating holiday pay, sick leave incentive, bonus days (if applicable), and 1 /2 of accrued sick leave. Employee may choose to run out this time in any manner. Balance will be paid in a lump sum on employee's final paycheck. Termination date will be the final day of extended time. Pension benefits will begin the following month. I, _M CW QjnrC A- 1'(hVY)©r) & , an employee of the City of Clearwater, hereby apply for pension benefits under the City's Employees' Pension Plan. I hereby certify that 1 fully understand the preferences offered to me. I choose to retire using separation pay preference # o2, and wish my benefits to be calculated under this preference. Please use my leave in the following manner: Run Out S? vacation sick floaters Lump Sum _- vacation sick floaters bonus hours bonus hours I understand that my preference cannot be changed once this form is signed and that my decision is irrevocable. EMPLOYEE'S SIGNATURE: SOCIAL SECURITY #: G -Ste- Y90 Vy4TNESqSES-. ADDRESS: 3 / A /" • yrr r'? o le 7 7 L PHONE: -7 a1 h 9?'-S9 yd DATE: / / O Revised 1/02 Form #9900-0008 File Name: Employee Separation Pay Pref Item # 3 Attachment number 1 Page 2 of 5 CITY OF CLEARWATER PENSION ENTITLEMENT OPTION REQUEST FORM i' ?h Vh 0 of Clearwater?General Employees' Pension Plan. Job Classification: ??y•1CtnCe- ?11C Department: Benefits Date: Date of Birth: _ Spouse's Name: Spouse's Date of Birth: do hereby apply for retirement under the City Sex: M l: J ?t Division: Date of Hire: Resignation Date: a? aZS If r Si}??' m o v) g Sex: F -t J The type of pension for which I am applying is (check only one): Regular Pension based on years of service Job-connected Disability Pension Non-job-connected Disability Pension The City of Clearwater Employees' Pension Plan provides multiple options to Plan Participants as to the manner of the pension benefit payment. Option 1 below represents the standard or normal form of retirement benefit. The other optional forms (#2 - #6) shall be computed to be the Actuarial Equivalent of the normal benefit. Option 1 - Joint and Survivor Annuity The normal form of retirement benefit shall be an annuity paid monthly for the life of the Participant, with a 100% survivor annuity paid monthly for a period of five years following the death of the Participant to the beneficiary, provided that following such five year period the survivor annuity shall be reduced to 50% of the original survivor annuity amount. [See section 2.397 (a) (3) (A)] The Participant's surviving spouse receives the designated amount for the rest of his/her life or until he/she remarries. If no surviving spouse, dependent children under the age of 18 shall be deemed to be the beneficiary and receive the designated amount until the age of 18. [Section 2.397 (a) (3) and Section 2.398 (b) (1)] Option 2 - Life Annuity The Participant receives his/her pension as long as he/she lives. Upon the death of the Participant, benefits cease. [Section 2.398 (b) (2) (a) (1)] - (must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies before 120 monthly payments have been made, the remaining payments up to the 120 payments are made to his/her beneficiary. If payments to the beneficiary commence and he/she dies before the total of 120 payments has been made, the remainder of the payments is paid to the beneficiary s estate. If the first beneficiary predeceases the participant, he/she may designate a new beneficiary. If no beneficiary is alive at the time of the participant's death, the participant's estate will be paid the balance of the 120 payments. [Section 2.398 (b) (2) (a) (2)] Option 4 - 50%, Joint & Survivor Annuity - (must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 50% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] Option 5 - 75% Joint & Survivor Annuity - (must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 75% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] Item # 3 nu Attachment mber Page 3 of 5 Option 6 - 1Q0% joint & S1jrviyQr Annuity - (must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 100% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)) I have considered the normal form of benefit payment under such Plan (which is designated on this Form as Option 1) and the various alternative optional benefit payment methods (Options 2 through 6) under such Plan and have elected to receive my retirement benefits as indicated below. (Note: Option selection to be indicated both by Number and Description.) I understand that once my first pension check is received, my decision on this option is irrevocable. Option #: 1 Employee's Signature: Description: Joint and Survivor Annuity Dependent children under the age of 18 and residing in my household are: Child's Name Sex Date: Date of Birth If taking Option 2 sign below: Option #: 2 Description: Life Annuity Employee's Signature: Date: If takina Option 3.4.5. or 6 fill in beneficiary information and siqn below: Option #: v Description: 1&0"Yo -oi)-o( r SV/u?Ur": ,/?hhu, lt-y My des ted be fciary is: Name: PbFff To .'YIvnOOS Date of Birth: 7 dl ?? Sex M F Social Security Number: Phone Number: 7d-7/39e- Y7(16 Address: lc?q 3d g a r ? t , Xfrn#*/10/CF11 FL 33 77L Employee's Signature: x- ?WPf Date: STATE OF FLORIDA The fore n instrument was a know[edged beforT this COUNTY OF PINELLAS -1941i 7/ O by /Ct a ?c4- ?? P'710,'fwho is personally known to me or who has provided as identifice?tion arxi who did/dW not tAke-on path! F/1 17TH/ Notary Public (Signature) - p d,'. ?j -- / 0/r, Name of Notary Printed NOTARY PUBLIC-STATE OF FLORTh My Commission expires: e?i br.- CO j ission # DD763426 •= Expires: MAY 15, 2012 BONDED THRD ATL&YTIC BONDING CO., INC. Rev. 4/08 Form #9900-0009 File Name: Pension Entitlement Option Form Item # 3 -Attachment number 1 Page 4 of 5 11 Estimated Pension Worksheet 11 Margaret Simmons LAST DATE PAID: BENEFITS DATE CREDITED SERVICE 2/25/2011 9/20/1982 28.4306 Signature: Date: od / / a GROSS CALENDAR PENSION YEAR EARNINGS 2006 $108,896.87 2007 $112,131.47 2008 $116,439.93 2009 $114,384.92 2010 $114,384.92 $566,238.11 (5 Year Total) 5/ $113,247.62 (Yearly Avg) 12/ $9,437.30 (Monthly Avg) x 0.0275 (Benefit Rate) x 28.4306 (Yrs of Service) $7,378.46 (Est Mtly Pension) Item # 3 Attach me nt7na m bent Page 5 of 5 City of Clearwater Employees' Pension Plan Actuarial Equivalence Factors 21-Sep-10 sm ESTIMATE clract01 Version: Employee Name: Margaret Simmons 1-4-96 Employee Date of Birth: 2 25 1956 Marital Status: M Spouse Date of Birth: 7 12 1948 Beneficiary Date of Birth: 7 12 1948 Benefit Commencement Date : 3 1 2011 Estimated Monthly Normal Reti rement Benefit: $7,378.46 Actuarial Equivalent Adjustment Factors: Option 1 J&S Annuity 1.00000 Option 2 Life Annuity 1.05129 Option 3 10 Year Certain 1.03613 Option 4 50% J&S 1.01864 Option 5 75% J&S 1.00306 Option 6 100% J&S 0.98795 ESTIMATE Estimated Monthly Benefit $7,378.46 $7,756.89 $7,645.04 $7,515.96 $7,401.03 $7,289.55 Item # 3 Meeting Date: I 1/ 1/20 10 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the administrative rule governing the return of employee contributions. SUMMARY: 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. Review Approval: 1) Clerk 2) Legal 3) Clerk Cover Memo Item # 4 Attachment number 1 Page 1 of 2 BOARD OF TRUSTEES OF THE CITY OF CLEARWATER EMPLOYEES' PENSION FUND ADMINISTRATIVE RULE GOVERNING RETURN OF EMPLOYEE CONTRIBUTIONS 1. Section 2.394(h)(1) provides that: "The trustees and, subject to the approval of the trustees, the committee, may establish rules and procedures as are necessary to administer the plan, which rules and procedures shall be applied in a uniform and non-discriminatory manner." 2. Section 2.397(d)(3) provides for the return of employee contributions for participants who have terminated employment as follows: "A participant who terminates employment with the employer prior to his early retirement date or his normal retirement date may elect to receive the total contributions he has made to the plan, together with five (5%) percent simple interest on such contributions. Upon making such election, the participant's interest in his accrued benefit shall be forfeited." 3. Section 2.393 defines the term "employee" as follows: "(1) Employee shall mean any person employed by the employer as a full-time permanent employee other than: a. Individuals who have failed a comprehensive physical and by reason of such fact have not been recommended for acceptance into the plan by the committee or approved by the trustees. b. Persons hired on a contractual basis, and c. Employees exempt from the employer's civil service classified service system (unclassified employees) for whom an employment agreement letter establishes conditions of employment; provided, however, if a person was a participant in the Plan prior to being employed in a position described in this 00030184. RTF;1 Item # 4 Attachment number 1 Page 2 of 2 subparagraph c., he shall continue to participate in the Plan. (2) The trustees shall have the right to determine from time to time which persons are full-time permanent employees for purposes of the plan; provided, however, that all persons covered by the civil service ordinance of the employer who are employed on full-time basis shall be considered full-time permanent employees for purposes of the plan. (3) Permanent part-time, emergency, seasonal and provisional employees shall not be `employees' eligible to participate in the plan." 4. The Trustees have recognized an ambiguity in the Plan as full-time employees who have become part-time are not allowed to participate in the Plan. Under this circumstance, the Trustees have determined that the employees would be entitled to a return of contributions under Section 2.397 of the Plan. In accordance with the Board of Trustees' administrative authority, the Board adopts the following rules governing the refund of employee contributions: (1) Prior to receiving a refund of employee contributions, the participant who became a part-time employee must first complete a form electing to receive the return of contributions from the Fund. By executing the Board's form, the participant shall acknowledge that they will forfeit and relinquish all accrued rights in the Plan. Such form shall be in addition to other forms or special tax notices required by the IRS. (2) The Board has interpreted Section 2.397 to permit part-time employees to request a refund. Refunds will not be paid to part-time employees, unless they request the refund and properly execute all forms required under subsection (1). (3) By adopting this Administrative Rule the Board is not encouraging part-time employees to seek refunds. Rather, the Board encourages all active and inactive members to consult with a tax advisor, an accountant, or other tax professional. (4) The Board of Trustees reserves the right to amend this Administrative Rule from time to time as it deems appropriate. The Board shall retain the right to exercise its discretion in interpreting this rule and in resolving any disputes that may arise hereunder. This rule was considered by the Board of Trustees at a public hearing and was adopted by vote of the Trustees on , 2010. 00030184. RTF;1 Item # 4