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05/12/2011 PENSION ADVISORY COMMITTEE MEETING MINUTES CITY OF CLEARWATER May 12, 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 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 – April 14, 2011 Member Doran moved to approve the minutes of the regular PAC (Pension Advisory Committee) meeting of April 14, 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 Sharon Walton, Finance Department; William Patterson, Public Utilities Department; Barbara Amiro, Engineering Department; and Mark Weaver, Police Department, for a regular pension as provided by Sections 2.397 and 2.398 of the Employees’ Pension Plan. Sharon Walton, Risk Manager, Finance Department, was employed by the City on May 5, 1982, and her pension service credit is effective on that date. Her pension will be effective July 1, 2011. Based on an average salary of approximately $66,114 per year over the past five years, the formula for computing regular pensions, and Mr. Walton’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $51,997 annually. William Patterson, Water Plant Operator A, Public Utilities Department, was employed by the City on December 5, 1983, and his pension service credit is effective on that date. His pension will be effective May 1, 2011. Based on an average salary of approximately $53,300 per year over the past five years, the formula for computing regular pensions, and Mr. Patterson’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $39,348 annually. Barbara Amiro, Traffic Technician, Engineering Department, was employed by the City on December 22, 1986, and her pension service credit is effective on January 11, 1993. Her pension will be effective July 1, 2011. Based on an average salary of approximately $42,113 Pension Advisory 2011-05-12 1 per year over the past five years, the formula for computing regular pensions, and Ms. Amiro’s selection of the Joint & Survivor Annuity, this pension will approximate $21,657 annually. Mark Weaver, Police Officer, Police Department, was employed by the City on May 14, 1988, and his pension service credit is effective on that date. His pension will be effective May 1, 2011. Based on an average salary of approximately $88,204 per year over the past five years, the formula for computing regular pensions, and Mr. Weaver’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $55,131 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 Police Officer as meeting the hazardous duty criteria. Ms. Walton and Mr. Patterson qualify under the age 55 and twenty years of service criteria. Ms. Amiro qualifies under the age 65 and ten years of service criteria. Mr. Weaver qualifies under the hazardous duty criteria. Member Jensen recommended approval of the request of employee Sharon Walton, Finance Department; William Patterson, Public Utilities Department; Barbara Amiro, Engineering Department; and Mark Weaver, 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 Brett Gardner, Engineering Department, to vest his pension as provided by Section 2.397 of the Employees’ Pension Plan. Brett Gardner, Engineering Department,was employed by the City on December 10, 1984, and began participating in the Pension Plan on that date. Mr. Gardner terminated from City employment on April 28, 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. Gardner would have completed at least 20 years of service and reached age 55 on February 21, 2013. His pension will be effective March 1, 2013. Member Gibson moved to recommend approval of the request of employee Brett Gardner, Engineering 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 2011-05-12 2 5. Approval of New Hires as Plan Members 5.1 Recommend approval of new hires for acceptance in the Pension Plan as listed. Patrick Brafford, Water Safety Supervisor/Parks & Recreation 04/04/11 04/04/11 Maurice Vickers, SW Equipment Operator/Solid Waste Gen’l Svcs 04/25/11 04/25/11 Joseph Marshall, SW Equipment Operator/Solid Waste Gen’l Svcs 04/25/11 04/25/11 Stephanie Emrich, Police Communications Oper. Trainee/Police 04/25/11 04/25/11 Joseph Russo, Police Communications Operator Trainee/Police 04/25/11 04/25/11 Andrew Barnes, Police Communications Operator Trainee/Police 04/25/11 04/25/11 Jessica Silvas, Police Communications Operator Trainee/Police 04/25/11 04/25/11 Member Gibson 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 Gary Angell – Non-Job-Connected Disability Application Human Resources Director Joe Roseto reviewed Gary Angell’s application for a non-job- connected disability and Code requirements; none of the listed exclusions applies. The City and Pension Plan attorney find that documentation provided is ample and meets Code criteria without an IME (Independent Medical Exam). Member Doran moved to adopt the submitted doctors’ reports and medical documentation as the IME. The motion was duly seconded and carried unanimously. Consensus was to consider Mr. Angell’s application today. Member Jonson moved to accept into evidence the entire file, inclusive of the personnel file, interrogatories, and the IME. The motion was duly seconded and carried unanimously. Mr. Roseto reported medical documentation indicates that Mr. Angell is totally disabled from performing duties of a heavy equipment operator or useful, meaningful, and necessary work for the City in an available position. Member Schmalzbauer moved that Gary Angell is disabled due to a non-job-connected sickness or injury, such disability is likely to be continuous and permanent from a cause other than those listed as general disability exclusions, and such disability renders the participant unable to perform any useful, meaningful, and necessary work for the employer in an available position for which the participant is reasonably qualified or for which the participant may be reasonably trained to perform. The motion was duly seconded and carried unanimously. Concerns were expressed for Mr. Angell and he was wished best of luck. 7 – Committee Members to be Heard : Pension Advisory 2011-05-12 3 Member Doran said Pension Plan investments have performed well during the last five quarters. Mr. Roseto said the actuary report will be presented at the May 16, 2011, Pension Trustees meeting. Copies of the report will be distributed to PAC members. Chair Hightower cited HIPAA (Health Insurance Portability & Accountability Act) and recommended that the City take care when transmitting medical data. 8 - Adjourn The meeting adjourned at 9:14 a.m. Chair Pension Advisory Com Pension Advisory 2011-05-12 4