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12/09/2011 PENSION ADVISORY COMMITTEE MEETING MINUTES CITY OF CLEARWATER December 9, 2010 Present: Nathan Hightower Chair Tom Jensen Vice-Chair John Schmalzbauer Committee Member John Doran Committee Member/Councilmember Paul Gibson Committee Member/Councilmember Brian De Witt Committee Member Absent: Bill Jonson Committee Member/Councilmember 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 – November 17, 2010 Member Jensen moved to approve the minutes of the regular Pension Advisory Committee meeting of November 17, 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 requests of employees Jo Ellyn King, Parks & Recreation Department, and Ronald Nessler, Public Utilities Department, for regular pensions as provided by Sections 2.397 and 2.398 of the Employees’ Pension Plan. Jo Ellyn King, Parks Service Supervisor I, Parks & Recreation Department , was employed by the City on November 10, 1980, and her pension service credit is effective on that date. Her pension will be effective January 1, 2011. Based on an average salary of approximately $50,483 per year over the past five years, the formula for computing regular pensions, and Ms. King’s selection of the Life Annuity, this pension will approximate $44,490 annually. Ronald Nessler, Wastewater Treatment Plant Operator A, Public Utilities Department , was employed by the City on July 10, 1980, and his pension service credit is effective on that date. His pension will be effective January 1, 2011. Based on an average salary of approximately $68,862 per year over the past five years, the formula for computing regular pensions, and Mr. Nessler’s selection of the Joint & Survivor Annuity, this pension will approximate $57,710 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 Pension Advisory 2010-12-09 1 service, or has reached age 65 and completed ten years of credited service. Ms. King and Mr. Nessler qualify under the 30 years of service criteria. Member Jensen moved to recommend approval of requests of employees Jo Ellyn King, Parks & Recreation Department, and Ronald Nessler, Public Utilities Department, for regular pensions as provided by Sections 2.397 and 2.398 of the Employees’ Pension Plan. The motion was duly seconded and carried unanimously. 4 – Review and Action on Employee Requests to Vest Pensions 4.1. Recommend approval of the request of employee Mladen Zdjelar, Information Technology, to vest his pension as provided by Section 2.397 of the Employees’ Pension Plan. Mladen Zdjelar, Network Analyst, Information Technology Department, was employed by the City on June 12, 1995, and began participating in the Pension Plan on that date. Mr. Zdjelar terminated from City employment on December 3, 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. Mr. Zdjelar would have completed 20 years of service and reached age 55 on June 12, 2015. His pension will be effective July 1, 2015. Member Doran moved to recommend approval of the request of employee Mladen Zdjelar, Information Technology, to vest his pension as provided by Section 2.397 of the Employees’ Pension Plan. The motion was duly seconded and carried unanimously. Pension Advisory 2010-12-09 2 5 – Approval of New Hires as Plan Members 5.1 Recommend acceptance of new hires into Pension Plan as listed. Pension Name, Job Classification, & Department/Division Hire Date Elig. Date Steven King, Administrative Analyst/Parks & Recreation Dept. 11/15/10 11/15/10 Raymond Croze, Police Officer/Police 10/25/10 10/25/10 Jason Slaughter, SW Equip. Operator/Solid Waste/General Svcs. 11/08/10 11/08/10 Horace Purifoy, Public Utilities Technician I/Public Utilities 11/09/10 11/09/10 Ashley Bailey, SW Worker/Solid Waste/General Services 11/08/10 11/08/10 Kyle Clark, Public Utilities Technician I/Public Utilities 11/08/10 11/08/10 Ermesto Rodriguez, SW Equip. Operator/Solid Waste/Gen. Svcs. 11/08/10 11/08/10 Chaddrick Cann, SW Equip. Operator/Solid Waste/General Svcs. 11/08/10 11/08/10 Martin Lindemann, SW Worker/Solid Waste/General Services 11/08/10 11/08/10 Robert McAnally, Fleet Mechanic/Solid Waste/General Services 11/08/10 11/08/10 Leonardo Aragones, Fleet Mechanic/Solid Waste/General Svcs. 11/08/10 11/08/10 Kevin Wylie, Public Utilities Technician I/Public Utilities 11/08/10 11/08/10 Eric Pickford, Public Utilities Technician I/Public Utilities 11/08/10 11/08/10 Brandi Montgomery, SW Equip. Operator/SW/ General Services 11/08/10 11/08/10 Joseph Czop, Police Officer/Police 10/25/10 10/25/10 Maria Pita, Police Officer/Police 10/25/10 10/25/10 Ronald Hayes, Gas Technician I/Gas 10/25/10 10/25/10 Todd LaBrecque, Warehouse Clerk/Solid Waste/ General Services10/25/10 10/25/10 Mike Mailles, Gas Technician I/ Gas 10/25/10 10/25/10 Ralph Shaw, Recreation Programmer/Parks & Recreation 04/03/10 10/24/10 Alan Tyler, Gas Technician I/ Gas 10/25/10 10/25/10 Paul Thompson, Field Service Representative/Customer Service 11/22/10 11/22/10 Celia Wilcox, Field Service Representative/Customer Service 11/22/10 11/22/10 Brian Palmer, Public Utilities Technician I/Public Utilities 10/26/10 10/26/10 Martin Lindemann originally was hired as temporary on August 10, 2010; transferred to full-time and pension eligible as of November 8, 2010. Ralph Shaw originally was hired as part-time on April 3, 2010; transferred to full-time and pension eligible as of October 24, 2010. Member Jensen moved to recommend acceptance of new hires into the Pension Plan as listed. The motion was duly seconded and carried unanimously. 6 – Director’s Report Joe Roseto said a disability application is in process. In response to a question, he said notes are not taken during Executive Sessions; all materials are made available after bargaining processes are completed. 7 – Committee Members to be Heard Pension Advisory 2010-12-09 3 Discussion ensued regarding the December 6, 2010 Special City Council Work Session where the City's Actuary and Pension Plan Attorneys presented alternatives to change the City's Pension Plan. Disappointment was expressed that two Councilmembers had not been forthcoming with their views. Opinions differed regarding the Special Work Session's purpose: 1) to gather information, not to discuss union bargaining issues in public and 2) to provide guidance to staff to determine the cost of combining alternatives. Staff will provide cost information on four combinations. It was hoped that the City Council's final decision is fair to all. Board Members wished all Happy Holidays. 8- Adjourn The meeting adjourned at 9:15 a.m. 6)= Chair Pension Advisory Pension Advisory 2010 10-9 4