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07/14/2011 PENSION ADVISORY COMMITTEE MEETING MINUTES CITY OF CLEARWATER July 14, 2011 Present: Nathan Hightower Chair Tom Jensen Vice-Chair John Doran Committee Member/Councilmember Paul Gibson Committee Member/Councilmember Brian De Witt Committee Member Bill Jonson Committee Member/Councilmember Absent: Daniel Slaughter Committee Member Also Present: Joe Roseto Human Resources Director Nicole Sprague Management Analyst 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 – June 9, 2011 Member Doran moved to approve the minutes of the regular Pension Advisory Committee meeting of June 9, 2011, as submitted in written summation to each board member. The motion was duly seconded and carried unanimously. 3 – Employees to be Heard – None. 4 – Review and Action on Employee Requests for Regular Pension 4.1. Recommend approval of the requests of employees Dirk Curls, Police Department; Stephen Doherty, Engineering Department; and Marlinda Neal, Customer Service Department, for a regular pension as provided by Sections 2.397 and 2.398 of the Employees’ Pension Plan. Dirk Curls, Police Sergeant, Police Department, was employed by the City on January 7, 1985, and his pension service credit is effective on that date. His pension will be effective October 1, 2011. Based on an average salary of approximately $87,439 per year over the past five years, the formula for computing regular pensions, and Mr. Curls’ selection of the 75% Joint & Survivor Annuity, this pension will approximate $64,641 annually. Stephen Doherty, Engineering Specialist I, Engineering Department, was employed by the City on August 19, 1985, and his pension service credit is effective on that date. His pension will be effective September 1, 2011. Based on an average salary of approximately $60,730 per year over the past five years, the formula for computing regular pensions, and Mr. Doherty’s selection of the Life Annuity, this pension will approximate $47,636 annually. Marlinda Neal, Senior Customer Service Representative, Customer Service Department, was employed by the City on August 17, 1981, and her pension service credit is effective on Pension Advisory 2011-07-14 1 that date. Her pension will be effective September 1, 2011. Based on an average salary of approximately $45,253 per year over the past five years, the formula for computing regular pensions, and Ms. Neal’s selection of the 10-year Certain & Life Annuity, this pension will approximate $37,036 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 Sergeant as meeting the hazardous duty criteria. Mr. Doherty qualifies under the age 55 and twenty years of service criteria. Ms. Neal qualifies under the 30 years of service criteria. Mr. Curls qualifies under the hazardous duty criteria. Member DeWitt moved to recommend approval of the requests of employees Dirk Curls, Police Department; Stephen Doherty, Engineering Department; and Marlinda Neal, Customer Service 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. 5 – Review and Action on Employee Requests to Vest Pensions 5.1. Recommend approval of the request of employee Brian Murphree, Parks and Recreation Department, and Steven DeSimone, Gas Department, to vest their pensions as provided by Section 2.397 of the Employees’ Pension Plan. Brian Murphree, Landscape Manager, Parks and Recreation Department, was employed by the City on November 20, 2000, and began participating in the Pension Plan on that date. Mr. Murphree terminated from City employment on June 17, 2011. Steven DeSimone, Gas Technician III, Gas Department, was employed by the City on July 16, 1990, and began participating in the Pension Plan on that date. Mr. DeSimone terminated from City employment on June 23, 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. Murphree would have completed at least 20 years of service and reached age 55 on July 24, 2028. His pension will be effective August 1, 2028. Mr. DeSimone would have completed at least 20 years of service and reached age 55 on September 12, 2016. His pension will be effective October 1, 2016. Pension Advisory 2011-07-14 2 Member Jonson moved to recommend approval of the request of employee Brian Murphree, Parks and Recreation Department, and Steven DeSimone, Gas Department, to vest their pensions as provided by Section 2.397 of the Employees’ Pension Plan. The motion was duly seconded and carried unanimously. 6 – Approval of New Hires as Plan Members 6.1. Recommend approval of new hires for acceptance in the Pension Plan as listed. Sherman Young, Police Officer/Police 05/23/11 05/23/11 Nathaniel Bowne, Custodial Worker/Parks & Recreation 11/15/04 04/09/11 Matthew Jackson, Planner II/Planning & Development 05/31/11 05/31/11 Nathaniel Bowne originally was hired as part-time on November 15, 2004; transferred to full-time and pension eligible as of April 9, 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. 7 – Pending/New Business 7.1. Set a hearing date for the disability applications for John Schmalzbauer and Daniel McCue. Discussion ensued regarding John Schmalzbauer’s disability application. It was stated while the IME (Independent Medical Exam) indicated Mr. Schmalzbauer is able to perform most duties, Police Officers must be able to perform all duties. Support was expressed for Mr. Schmalzbauer’s application based on reports from his doctors and consulting physician. Member Doran moved to accept into evidence the entire file, inclusive of the personnel file, interrogatories, medical records, and the IME. The motion was duly seconded and carried unanimously. Member DeWitt moved that John Schmalzbauer is disabled due to a 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 the duties of a Police Officer. The motion was duly seconded and carried unanimously. Regarding Daniel McCue’s application, concern was expressed that a preexisting condition may exist. It was recommended that the August meeting be rescheduled due to conflicts with the FLC (Florida League of Cities) conference. Member Doran moved to reschedule the August PAC (Pension Advisory Committee) meeting to August 18, 2011, and to direct the Pension attorney to hire an advocate to represent the plan and set a hearing date for Daniel McCue’s application as soon as practical. The motion was duly seconded and carried unanimously. Pension Advisory 2011-07-14 3 8– Director's Report: None. 9–Committee Members to be Heard Committee members sent best wishes to former Member Schmalzbauer. Member DeWitt congratulated retiring employees. 10 -Adjourn The meeting adjourned at 9:21 a.m. \6-).. 7i-21)114? Chair Pension Advisory Committee Attest: / / / / iv':oard Rep. Pension Advisory 2011-07-14 4