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01/13/2011 PENSION ADVISORY COMMITTEE MEETING MINUTES CITY OF CLEARWATER January 13, 2011 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 Bill Jonson Committee Member/Councilmember Also Present: Joe Roseto Human Resources Director 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 – December 9, 2010 Member Jensen moved to approve the minutes of the regular Pension Advisory Committee meeting of December 9, 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 Deborah Lutz, Engineering Department, and Thomas Allegretti, Fire Department, for regular pensions as provided by Sections 2.397 and 2.398 of the Employees’ Pension Plan. Deborah Lutz, Senior Staff Assistant, Engineering Department , was employed by the City on April 11, 1988, 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 $40,491 per year over the past five years, the formula for computing regular pensions, and Ms. Lutz’ selection of the Life Annuity, this pension will approximate $25,289 annually. Thomas Allegretti, Fire Lieutenant, Fire Department , was employed by the City on October 12, 1980, and his pension service credit is effective on that date. His pension will be effective February 1, 2011. Based on an average salary of approximately $76,605 per year over the past five years, the formula for computing regular pensions, and Mr. Allegretti’s selection of the Life Annuity, this pension will approximate $69,490 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. Section 2.397 also provides for normal retirement eligibility when a participant has completed twenty years of credited service or has reached age 55 and completed ten years of credited service in a type of employment described as “hazardous duty” and further defines service as a Fire Lieutenant as Pension Advisory 2011-01-13 1 meeting the hazardous duty criteria. Ms. Lutz qualifies under the age 55 and 20 years of service criteria. Mr. Allegretti qualifies under the hazardous duty criteria. Member Doran moved to recommend approval of requests of employees Deborah Lutz, Engineering Department, and Thomas Allegretti, Fire 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 Jack Bryant, Marine & Aviation Department, to vest his pension as provided by Section 2.397 of the Employees’ Pension Plan. Jack Bryant, Marine Facility Operator, Marine & Aviation Department, was employed by the City on July 24, 1995, and began participating in the Pension Plan on that date. Mr. Bryant will terminate from City employment on January 17, 2011. 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. Bryant would have completed at least 10 years of service and reached age 65 on January 17, 2013. His pension will be effective February 1, 2013. Member Jensen moved to recommend approval of the request of employee Jack Bryant, Marine & Aviation Department, 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 2011-01-13 2 5 - Approval of New Hires as Plan Members 5.1 Recommend acceptance of new hires into Pension Plan as listed Pension Name Job. Class, & Dept./Div. Hire Date Elig. Date Susan Becotte, Senior Accountant/Police 11/22/10 11/22/10 Robert Birdwell, SW Worker/Solid Waste/General Services 09/27/10 11/22/10 Ashlee Sarsano, Crime Scene Technician/Police 12/06/10 12/6/10 JoAnna Fagan, Library Assistant/Library 08/28/10 12/04/10 ** Sandra Wilson, Deputy Police Chief/Police 12/06/10 12/06/10 *originally hired as temporary on 9/27/10; status changed o permanent and pension eligible as of 11/22/10 **originally hired as part-time on 8/28/10; changed to full-time and pension eligible as of 12/4/10 Member Jonson 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 advised the members that the disk they received was for the disability application for Darrell Folk. Mr. Roseto told the members that the actuary was making some additional calculations regarding the pension changes at the request of the Council. There will be executive session on February 3, 2011 to discuss these. Mr. Roseto discussed the pension plan and how it affects the Deputy Police Chief and Assistant Fire Chiefs. 7 - Committee Members to be Heard Member Jonson asked if information could be provided comparing Social Security to the Pension Plan. Members were advised that the actuary report will be received in early April. 8- Adjourn The meeting adjourned at 9:23 a.m. Chair Attest: Pension Advisory Committee Board Reporter/ , Pension Advisory 2011-01-13 3