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04/14/2011 PENSION ADVISORY COMMITTEE MEETING MINUTES CITY OF CLEARWATER April 14, 2011 Present: Nathan Hightower Chair Tom Jensen Vice-Chair John Schmalzbauer Committee Member John Doran Committee Member/Councilmember Paul Gibson Committee Member/Councilmember Absent: Brian De Witt Committee Member 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 – March 10, 2011 Member Doran moved to approve the minutes of the regular Pension Advisory Committee meeting of March 10, 2011, as submitted in written summation to each board member. The motion was duly seconded and carried unanimously. 3– Action Items : 3.1 Recommend approval of the request of employee Eleanor Scharf, Library Department; Isaac Hinson, Parks and Recreation Department; Thomas Madley, Customer Service Department; George Memmer, Solid Waste/General Services Department; Jerry Absher, Solid Waste/General Services Department; Thomas Glenn, Solid Waste/General Services Department; Eddie Adams, Engineering Department; Harry Williams, Fire Department; and Michael Stewart, Police Department, for a regular pension as provided by Sections 2.397 and 2.398 of the Employees’ Pension Plan Eleanor Scharf, Library Assistant Director, Library Department , was employed by the City on April 14, 1981, and her pension service credit is effective on that date. Her pension will be effective May 1, 2011. Based on an average salary of approximately $64,190 per year over the past five years, the formula for computing regular pensions, and Ms. Scharf’s selection of the 50% Joint & Survivor Annuity, this pension will approximate $54,116 annually. Isaac Hinson, Custodial Worker, Parks and Recreation Department , was employed by the City on June 12, 1989, and his pension service credit is effective on April 22, 1991. His pension will be effective May 1, 2011. Based on an average salary of approximately $31,824 per year over the past five years, the formula for computing regular pensions, and Mr. Hinson’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $17,523 annually. Pension Advisory 2011-04-14 1 Thomas Madley, Senior Systems Analyst, Customer Service Department , was employed by the City on May 6, 1991, and his pension service credit is effective on that date. His pension will be effective June 1, 2011. Based on an average salary of approximately $65,818 per year over the past five years, the formula for computing regular pensions, and Mr. Madley’s selection of the Joint & Survivor Annuity, this pension will approximate $36,200 annually. George Memmer, Tradesworker, Solid Waste/General Services Department , was employed by the City on February 11, 1991, and his pension service credit is effective on that date. His pension will be effective June 1, 2011. Based on an average salary of approximately $43,894 per year over the past five years, the formula for computing regular pensions, and Mr. Memmer’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $23,619 annually. Jerry Absher, Tradesworker, Solid Waste/General Services Department , was employed by the City on February 1, 1999, and his pension service credit is effective on that date. His pension will be effective June 1, 2011. Based on an average salary of approximately $31,679 per year over the past five years, the formula for computing regular pensions, and Mr. Absher’s selection of the Life Annuity, this pension will approximate $12,799 annually. Thomas Glenn, Solid Waste Program Coordinator, Solid Waste/General Services Department , was employed by the City on October 19, 1987, and his pension service credit is effective on that date. His pension will be effective July 1, 2011. Based on an average salary of approximately $55,464 per year over the past five years, the formula for computing regular pensions, and Mr. Glenn’s selection of the Joint & Survivor Annuity, this pension will approximate $36,145 annually. Eddie Adams, Drafting and Mapping Technician, Engineering Department , was employed by the City on June 3, 1991, and his pension service credit is effective on that date. His pension will be effective July 1, 2011. Based on an average salary of approximately $44,619 per year over the past five years, the formula for computing regular pensions, and Mr. Adams’ selection of the Life Annuity, this pension will approximate $28,700 annually. Harry Williams, Fire Lieutenant, Fire Department , was employed by the City on December 29, 1990, and his pension service credit is effective on that date. His pension will be effective April 1, 2011. Based on an average salary of approximately $70,811 per year over the past five years, the formula for computing regular pensions, and Mr. Williams’ selection of the 100% Joint & Survivor Annuity, this pension will approximate $38,599 annually. Michael Stewart, Police Officer, Police Department , was employed by the City on September 24, 1990, and his pension service credit is effective on that date. His pension will be effective June 1, 2011. Based on an average salary of approximately $71,680 per year over the past five years, the formula for computing regular pensions, and Mr. Stewart’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $40,411 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 Pension Advisory 2011-04-14 2 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 and Police Officer as meeting the hazardous duty criteria. Ms. Scharf and Messrs. Hinson, Madley, Memmer, Glenn, and Adams qualify under the age 55 and twenty years of service criteria. Mr. Absher qualifies under the age 65 and ten years of service criteria. Messrs. Williams and Stewart qualify under the hazardous duty criteria. Member Schmalzbauer moved to recommend approval of the request of employee Eleanor Scharf, Library Department; Isaac Hinson, Parks and Recreation Department; Thomas Madley, Customer Service Department; George Memmer, Solid Waste/General Services Department; Jerry Absher, Solid Waste/General Services Department; Thomas Glenn, Solid Waste/General Services Department; Eddie Adams, Engineering Department; Harry Williams, Fire Department; and Michael Stewart, Police 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. 4. Review and Action on Employee Request to Vest Pension 4.1 Recommend approval of the request of employee Georgina Ata, Library Department, to vest her pension as provided by Section 2.397 of the Employees’ Pension Plan. Georgina Ata, Librarian III, Library Department, was employed by the City on October 3, 1993, and began participating in the Pension Plan on that date. Ms. Ata will terminate from City employment on June 2, 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. Ms. Ata would have completed at least 10 years of service and reached age 65 on December 6, 2013. Her pension will be effective January 1, 2014. Member Jensen moved to recommend approval of the request of employee Georgina Ata, Library Department, to vest her pension as provided by Section 2.397 of the Employees’ Pension Plan. The motion was duly seconded and carried unanimously. 5. Approval of New Hires as Plan Members 5.1 Recommend approval of new hires for acceptance in the Pension Plan as listed. David Pritchett, SCBA Maintenance Technician/Fire 02/14/11 02/14/11 Zachary Taylor, Wellness Specialist/Parks & Recreation 02/28/11 02/28/11 William Howard, WWTP Operator/Public Utilities 02/28/11 02/28/11 Kelli Dacey, Marine Facility Operator/Marine & Aviation 07/22/06 02/27/11 Matthew Holderness, Public Utilities Technician I/Public Utilities 03/14/11 03/14/11 Pension Advisory 2011-04-14 3 Christopher Bennett, Custodial Worker/Parks & Recreation 03/28/11 03/28/11 Kelli Dacey originally was hired as part-time on July 22, 2006; changed to full-time and pension eligible as of February 27, 2011 Member Doran moved to recommend approval of new hires for acceptance in the Pension Plan as listed. The motion was duly seconded and carried unanimously. 6 - Director's Report Human Resources Director Joe Roseto said several disability cases are being processed. He reported terms for Members Jensen and Schmalzbauer expire on June 30, 2011. Member Jensen will provide names for the election committee. Mr. Roseto said the Pension Plan's actuary will present the annual report at the May 16 Pension Trustees meeting. In response to questions, Finance Director Jay Ravins anticipated a minimal increase to the City's percentage of salary contribution to the plan. As salaries have decreased, the actual contribution amount will be lower. A full assumption study should be done next year. 7 - Committee Members to be Heard: None 8 - Adjourn The meeting adjourned at 9:07 a.m. 0, n`7 Chair Pension Advisory C Pension Advisory 2011-04-14 4