12/13/2011PENSION TRUSTEES AGENDA Location: Council Chambers -City Hall Date: 12/13/2011-8:30 AM 1. Call to Order 2. Approval of Minutes 2.1 Approve the minutes of the October 31, 2011 Pension
Trustees Meeting as submitted in written summation by the City Clerk. Attachments 3. Pension Trustee Items 3.1 Approve the new hires for acceptance into the Pension Plan as listed. Attachments
3.2 Approve the request of employee Manuel Pe, Public Utilities Department; Ted Dorman, Gas Department; Anthony Fanelli, Solid Waste/General Services Department; John Oswald, Gas Department,
and James Stephens, Public Utilities Department, for a regular pension as provided by Sections 2.397 and 2.398 of the Employees’ Pension Plan. Attachments 3.3 Approve the termination
of Wellington Management as an emerging markets money manager for the pension plan; approve the transfer of the terminated manager funds to Eaton Vance, the plan’s other emerging markets
money manager; and approve a new target range of 5% to 8% for emerging market securities. Attachments 3.4 Approve contracts with the law firms of Kessler Topaz Melzer and Cheek, LLP
and Saxena White P.A. to provide monitoring of securities in the pension plan investment portfolio in connection with claims for damages against such persons, entities, companies or
associations who may be liable for damages suffered by the pension plan, at no cost to the plan and authorize the appropriate officials to execute same. Attachments 3.5 Approve changes
to the City of Clearwater Employees’ Pension Plan investment policy to add real estate as a separate category under Authorized Investments; to update investment benchmark names; and
to make grammatical corrections and other minor changes to make the policy easier to understand. Attachments 4. Other Business 5. Adjourn
Pension Trustees Agenda Council Chambers -City Hall Meeting Date:12/13/2011 SUBJECT /RECOMMENDATION: Approve the minutes of the October 31, 2011 Pension Trustees Meeting as submitted
in written summation by the City Clerk. SUMMARY: Review Approval: Cover Memo Item # 1
Attachment number 1 \nPage 1 Item # 1
Attachment number 1 \nPage 2 Item # 1
Attachment number 1 \nPage 3 Item # 1
Attachment number 1 \nPage 4 Item # 1
Pension Trustees Agenda Council Chambers -City Hall Meeting Date:12/13/2011 SUBJECT /RECOMMENDATION: Approve the new hires for acceptance into the Pension Plan as listed. SUMMARY: Pension
Name, Job. Class, & Dept./Div. Hire Date Elig. Date Gordon McTaggart, Police Communication Oper./Police 3/27/10 9/24/11 * Michael Andrews, Custodial Worker/Library 4/4/11 9/24/11 **
Priscilla Murphy, Accounting Clerk/Marine & Aviation 9/26/11 9/26/11 Thaaer Altalagani, Public Utilities Tech. I/Public Utilities 9/26/11 9/26/11 Raymond Kader, Field Service Rep./Customer
Service 9/26/11 9/26/11 Elvin Carmona, Solid Waste Wkr/Solid Waste/Gen'l Ser. 9/26/11 9/26/11 Jennifer Shannon, Professional Engineer/Engineering 9/26/11 9/26/11 Carol Anding, WWTP Operator
A/Public Utilities 5/31/03 10/10/11*** Annejolina Darsey, Police Aide/Police 2/27/10 10/8/11 **** Shannon Kasparek, Police Officer/Police 10/10/11 10/10/11 Mercedes Bleattler, Librarian
II/Library 10/10/11 10/10/11 Kelly Brinkman, Police Officer/Police 10/10/11 10/10/11 Jarrett Busa, Police Officer/Police 10/10/11 10/10/11 Lee Curtis, Police Officer/Police 10/10/11
10/10/11 Kurt Hentschel, Police Officer/Police 10/10/11 10/10/11 Christopher Kakalow, Police Officer/Police 10/10/11 10/10/11 Guy Tellier, Parks Service Technician I/Parks & Rec. 10/24/11
10/24/11 *resigned 8/15/11; rescinded resignation and pension eligible as of 9/24/11; hire date adjusted by days gone **originally hired 4/4/11 as permanent part-time; made full-time
and pension eligible as of 9/24/11 ***originally employed 5/31/03; resigned 5/26/11; rescinded resignation, rehired, and pension eligible as of 10/10/11 ****originally hired as part-time
on 2/27/10; status changed to full-time and pension eligible as of 10/8/11 Review Approval: Cover Memo Item # 2
Pension Trustees Agenda Council Chambers -City Hall Meeting Date:12/13/2011 SUBJECT /RECOMMENDATION: Approve the request of employee Manuel Pe, Public Utilities Department; Ted Dorman,
Gas Department; Anthony Fanelli, Solid Waste/General Services Department; John Oswald, Gas Department, and James Stephens, Public Utilities Department, for a regular pension as provided
by Sections 2.397 and 2.398 of the Employees’ Pension Plan. SUMMARY: Manuel Pe, Senior Utilities Chemist, Public Utilities Department, was employed by the City on February 25, 1991,
and his pension service credit is effective on that date. His pension will be effective November 1, 2011. Based on an average salary of approximately $59,084 per year over the past five
years, the formula for computing regular pensions, and Mr. Pe’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $32,8845 annually. Ted Dorman, Gas Technician
II, Gas Department, was employed by the City on June 2, 1986, and his pension service credit is effective on that date. His pension will be effective November 1, 2011. Based on an average
salary of approximately $44,681 per year over the past five years, the formula for computing regular pensions, and Mr. Dorman’s selection of the Joint & Survivor Annuity, this pension
will approximate $31,217 annually. Anthony Fanelli, Welder, General Services/Solid Waste 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 February 1, 2012. Based on an average salary of approximately $45,594 per year over the past five years, the formula for computing
regular pensions, and Mr. Fanelli’s selection of the Joint & Survivor Annuity, this pension will approximate $26,296 annually. John Oswald, Gas Technician III, Gas Department, was employed
by the City on November 11, 1974, and his pension service credit is effective on December 7, 1987. His pension will be effective January 1, 2012. Based on an average salary of approximately
$49,282 per year over the past five years, the formula for computing regular pensions, and Mr. Oswald’s selection of the 100% Joint & Survivor Annuity, this pension will approximate
$32,363 annually. James Stephens, Public Services Trainer, Public Utilities Department, was employed by the City on December 22, 1980, and his pension service credit is effective on
February 8, 1982. His pension will be effective March 1, 2012. Based on an average salary of approximately $53,004 per year over the past five years, the formula for computing regular
pensions, and Mr. Stephens’ selection of the 100% Joint & Survivor Annuity, this pension will approximate $43,037 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. Mr. Pe, Mr. Dorman, Mr. Fanelli, and Mr. Oswald qualify under the age 55 and 20 years of service criteria. Mr. Stephens qualifies under the 30 years of service criteria. Review
Approval: Cover Memo Item # 3
PREFERENCE # 1 PREFERENCE # 2 CITY OF CLEARWATER EMPLOYEES` SEPARATION PAY PREFERENCES Employees can receive a lump sum payment for vacation, floating holiday pay, sick leave incentive,
bonus days ( if applicable), and 1/2 of accrued sick leave at the time of separation from the City. There will be no deduction for pension from this lump sum payment nor will this amount
count as earnings in the calculation of the pension. The last day of work will be the termination date and pension benefits will begin the following month. Employee can extend termination
date by part or all of the time due for vacation, froating holiday pay, sick leave incentive, bonus days Of appricable), and 1/2 of accrued sick leave. Employee may choose to run out
this time in any manner. Balance will be paid in a lump sum on employee' s final paycheck. Termination date will be the final day of extended time. Pension benefits will begin the following
month. Mantic` an employee of the City of Clearwater, hereby apply for pension benefits under the City' s Employees' Pension Plan. I hereby certify that I fully understand the preferences
offered to me. I choose to retire using separation pay preference # andand wish my benefits to be calculated under this preference. Please use my leave in the following manner: Run Out
vacation sick floaters bonus hours Lump Sum 3 { t 4 . vacation C C sick floaters bonus hours I understand that my preference cannot be changed once this form is signed and that my decision
is irrevocable. EMPLOYEE' S SIGNATURE X SOCIAL SECURITY #• W TNESSES: , ADDRESSPHONE: 7/93 3 Y DATERevised 1/02 Form # 9900 -0008 o. r? ci s sob 6P7/File Name: Employee Separation Pay
Pref Item # 3
CITY OF CLEARWATER PENSION ENTITLEMENT OPTION REQUEST FORM SWORN POLICE AND FIRE PERSONNEL i, 64 ' d e i } e. of Clearwater General Employees' Pension Plan. Job Classifica : Cn "Or UN-1
It --IC''s e`1evv,` s Department: 01111111111WI es Division' Benefits Date c! I Date of Hire: /-S//Date of Birth: a /( 4 Co Resignation Date: /aIa17 //1 do hereby apply for retirement
under the City Sex: g F Spouse's Name: Cc. rtgaJ 0, Spouse's Date of Birth: Er//I Y I Sex: M F The type of pension for which I am applying is ( check only one): X Regular Pension based
on years of service Job -connected Disability Pension Non -job-connected Disability Pension Early Retirement The City of Clearwater Employees' Pension Plan provides multiple options
to Plan Participants as to the manner of the pension benefit payment. Option 1 below represents the standard or normal form of retirement benefit. The other optional forms ( #2 -# 7)
shall be computed to be the Actuarial Equivalent of the normal benefit. Option 1 -Joint and Survivor Annuity The normal form of retirement benefit shall be an annuity paid monthly for
the life of the Participant, with a 100% survivor annuity paid monthly for a period of five years following the death of the Participant to the beneficiary, provided that following such
five -year period the survivor annuity shall be reduced to 50% of the original survivor annuity amount, except that, if greater for police officers and firefighters, the normal form
of benefit shall be an annuity paid monthly for the life of the participant with 120 payments guaranteed. [ See section 2.397 ( a) ( 3) ( A)] The Participant's surviving spouse receives
the designated amount for the rest of his /her life or until he /she remarries. If no surviving spouse, dependent children under the age of 18 shall be deemed to be the beneficiary and
receive the designated amount until the age of 18. [ Section 2. 397 ( a) ( 3) and Section 2. 398 ( b) ( 1)] Option 2 -1 ife Annuity The Participant receives his /her pension as long
as he /she lives. Upon the death of the Participant, benefits cease. [ Section 2. 398 ( b) ( 2) ( a) ( 1)] Option 3 -10 Year Certain & Life Annuity -(must designate a beneficiary) The
Participant receives his /her pension as long as he /she lives. If the Participant dies before 120 monthly payments have been made, the remaining payments up to the 120 payments are
made to his /her beneficiary. If payments to the beneficiary commence and he /she dies before the total of 120 payments has been made, the remainder of the payments is paid to the beneficiary's
estate. If the first beneficiary predeceases the participant, he /she may designate a new beneficiary. If no beneficiary is alive at the time of the participant' s death, the participant's
estate will be paid the balance of the 120 payments. [ Section 2.398 (b) ( 2) ( a) ( 2) j Option 4 -50% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives
his /her pension as long as he /she lives. If the Participant dies first, the beneficiary receives 50% of the pension for the rest of his /her life. If the beneficiary dies first, the
Participant continues to receive 100% of his /her pension and upon his /her death, benefits cease. The beneficiary can be changed at any time. [ Section 2.398 ( b) ( 2) ( a) ( 3)] Option
5 -75% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his /her pension as long as he /she lives. If the Participant dies first, the beneficiary receives
75% of the pension for the rest of his /her life. If the beneficiary dies first, the Participant continues to receive 100% of his /her pension and upon his/her death, benefits cease.
The beneficiary can be changed at any time. [ Section 2.398 (b) ( 2) ( a) ( 3)] Item # 3
lntinn F -1n P •. a urvivnr Annuity -(must designate a beneficiary) The Participant receives his /her pension as long as he /she lives. If the Participant dies first, the beneficiary
receives 100% of the pension for the rest of his /her life. If the beneficiary dies first, the Participant continues to receive 100% of his /her pension and upon his /her death, benefits
cease. The beneficiary can be changed at any time. [ Section 2. 398 ( b) ( 2) ( a) ( 3)] Option 7 -66 2/3% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives
his /her pension as long as he /she lives. If the Participant dies first, the beneficiary receives 66 2/3% of the pension for the rest of his /her life. If the beneficiary dies first,
the Participant continues to receive 100% of his /her pension and upon his /her death, benefits cease. The beneficiary can be changed at any time. [ Section 2. 398 ( b) ( 2) ( a) ( 3)]
I have considered the normal form of benefit payment under such Plan ( which is designated on this Form as Option 1) and the various alternative optional benefit payment methods ( Options
2 through 7) under such Plan and have elected to receive my retirement benefits as indicated below. ( Note: Option selection to be indicated both by Number and Description.) I understand
that once my first pension check is received, my decision on this option is irrevocable. If taking Option 1 sign below: Option #: Description: Joint and Survivor Annuity Employee's Signature-Date:
Dependent children under the age of 18 and residing in my household are: Child' s Name Sex Date of Birth If taking Option 2 sign below: Option #: 2 Description: Life Annuity Employee's
Signature: Date: If taking Option 3, 4, 5, 6, or 7 fill in beneficiary information and sign below: Description: /0-c)` o Date of Birth: & ///14/1/Option #: My desivyyated b ne ciary
Name: (= Ci r f' e • Social Security Number: _ Address: og( Employee' s Signature: STATE OF FLORIDA COUNTY OF PINELLAS Rev. 4/08 Form # 9900 -0053 fr-Ur/t1 vo/vino Sex MO u Phone Number:
7d-7/9? V-V 73 7 Li ( 177' 3 6 ¢--s.' Date: 14 /The foreg9inq instrument was afykpowledgeci befRre me this 0///i by f' ) lrnue.(( who is personally known to me or who has provided ,
Notary Public Signature) I . d r' Gt _ t`Z'' 20 ••,,, IGSTgT N Rlotary Printed Deborah L. Ford Gr ` Commission # DD763426 Expires: MAY 15, 2012 LONLZD THRG ATLANTIC BOI DLNG CO., INC.
My Commission expires: File Name: Pension Entitlement Option Form Police & Fire Item # 3
Estimated Pension Worksheet Manuel Pe GROSS CALENDAR PENSION YEAR EARNINGS LAST DATE PAID: 10/27/2011 2006 $ 55,443.65 BENEFITS DATE 2/25/1991 2007 $ 57,652.73 CREDITED SERVICE 20.6722
2008 $ 59, 933. 78 2009 $ 61, 371. 47 2010 $ 61, 020. 18 295,421. 81 ( 5 Year Total) 5/$ 59,084. 36 ( Yearly Avg) 12/$ 4,923.70 ( Monthly Avg) x 0. 0275 ( Benefit Rate) x 20.6722 ( Yrs
of Service) 2, 799.06 ( Est Mtly Pension) Prepared by: Date: Deborah Ford 10/17/2011 Item # 3
City of Clearwater Employees' Pension Plan Actuarial Equivalence Factors 20-Oct -11 sm ESTIMATE clract0l Version: Employee Name: Manuel Pe 1 -4 -96 Employee Date of Birth: 8 2 1946 Marital
Status: m Spouse Date of Birth: 8 1 1941 Beneficiary Date of Birth: 8 1 1941 Benefit Commencement Date : 11 1 2011 Estimated Monthly Normal Retirement Benefit: $ 2, 799. 06 Actuarial
Equivalent Adjustment Factors: Estimated Monthly Benefit Option 1 Normal Form 1. 00000 $ 2, 799.06 Option 2 Life Annuity 1. 09367 $ 3, 061. 24 Option 3 10 Year Certain 1. 04301 $ 2,
919.45 Option 4 50% J &S 1. 03318 $ 2, 891. 94 Option 5 75% J &S 1. 00538 $ 2, 814. 12 Option 6 100% J & S 0. 97904 $ 2, 740.38 ESTIMATE Item # 3
PREFERENCE # 1 PREFERENCE # 2 CITY OF CLEARIl1/A TER EMPLOYEES` SEPARATION PAY PREFERENCES Employees can receive a lump sum payment for vacation, floating holiday pay, sick leave incentive,
bonus days ( if applicable), and 1/2 of accrued sick leave at the time of separation from the City. There will be no deduction for pension from this lump sum payment nor will this amount
count as earnings in the calculation of the pension. The last day of work will be the termination date and pension benefits will begin the following month. Employee can extend termination
date by part or all of the time due for vacation, floating holiday pay, sick leave incentive, bonus days ( if applicable), and 1/2 of accrued sick leave. Employee may choose to run out
this time in any manner. Balance will be paid in a lump sum on employee' s final paycheck. Termination date will be the final day of extended time. Pension benefits will begin the following
month. e bJ na Vl , an employee of the City of Clearwater, hereby apply for pension benefits under the City' s Employees' Pension Plan. I hereby certify that I fully understand the preferences
offered to me. I choose to retire using separation pay preference # C>l, and wish my benefits to be calculated under this preference. Please use my leave in the following manner: Run
Out vacation sick floaters bonus hours Lump Sum ' ( ct-? vacation LOS'S-sick floaters 130, 6 bonus hours I understand that my preference cannot be changed once this form is signed and
t . t v y decision is irrevocable. EMPLOYEE' S SIGNATURE SOCIAL SECURITY #-WITNESSES: ADDRESS-/(>, Presco { 4ue, y.' Revised 1/02 Form # 9900 -0008 at/LA/col cr -FL : 3 7 .S'b PHONE-—
7a1/81 1— S CLIC DATE-i o l i e' tl File Name: Employee Separation Pay [' ref Attachment number 1 \nPage 6 of 25 Item # 3
CITY OF CLEARWATER PENSION ENTITLEMENT OPTION REQUEST FORM I, 1 -73trvy. c.tvi of Clearwater General Employees' Pension Plan. Job Classification: Department: Benefits Date: Date of Birth:
LIS Spouse' s Name: do hereby apply for retirement under the City T—CC/111 VI t \ C.titt 1 Tr— Division: Date of Hire: Co I Resignation Date: I o Sex:0F Spouse' s Date of Birth: Sex:
M F The type of pension for which I am applying is ( check only one): Y— Regular Pension based on years of service Job -connected Disability Pension Non -job-connected Disability Pension
The City of Clearwater Employees' Pension Plan provides multiple options to Plan Participants as to the manner of the pension benefit payment. Option 1 below represents the standard
or normal form of retirement benefit. The other optional forms ( #2 -# 6) shall be computed to be the Actuarial Equivalent of the normal benefit. Option 1 -Joint and Survivor Annuity
The normal form of retirement benefit shall be an annuity paid monthly for the life of the Participant, with a 100% survivor annuity paid monthly for a period of five years following
the death of the Participant to the beneficiary, provided that following such five year period the survivor annuity shall be reduced to 50% of the original survivor annuity amount. [
See section 2. 397 ( a) ( 3) ( A)] The Participant's surviving spouse receives the designated amount for the rest of his /her life or until he /she remarries. If no surviving spouse,
dependent children under the age of 18 shall be deemed to be the beneficiary and receive the designated amount until the age of 18. [ Section 2. 397 ( a) ( 3) and Section 2. 398 ( b)
( 1)] Option 2 -Life Annuity The Participant receives his /her pension as long as he /she lives. Upon the death of the Participant, benefits cease. [Section 2. 398 ( b) ( 2) ( a) ( 1)]
Option 3 -10 Year Certain & Life Annuity -(must designate a beneficiary) The Participant receives his /her pension as long as he /she lives. If the Participant dies before 120 monthly
payments have been made, the remaining payments up to the 120 payments are made to his /her beneficiary. If payments to the beneficiary commence and he /she dies before the total of
120 payments has been made, the remainder of the payments is paid to the beneficiary's estate. If the first beneficiary predeceases the participant, he /she may designate a new beneficiary.
If no beneficiary is alive at the time of the participant's death, the participant's estate will be paid the balance of the 120 payments. [ Section 2. 398 ( b) ( 2) ( a) ( 2)] Option
4 -50% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his /her pension as long as he /she lives. If the Participant dies first, the beneficiary receives
50% of the pension for the rest of his /her life. If the beneficiary dies first, the Participant continues to receive 100% of his /her pension and upon his /her death, benefits cease.
[Section 2.398 ( b) ( 2) ( a) ( 3)] Option 5 -75% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his /her pension as long as he /she lives. If the
Participant dies first, the beneficiary receives 75% of the pension for the rest of his /her life. If the beneficiary dies first, the Participant continues to receive 100% of his /her
pension and upon his /her death, benefits cease. [Section 2. 398 ( b) ( 2) ( a) ( 3)] Item # 3
Option 6 -100% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his /her pension as long as he /she lives. If the Participant dies first, the beneficiary
receives 100% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his /her death, benefits
cease. [Section 2. 398 ( b) ( 2) ( a) ( 3)] I have considered the normal form of benefit payment under such Plan (which is designated on this Form as Option 1) and the various alternative
optional benefit payment methods ( Options 2 through 6) under such Plan and have elected to receive my retirement benefits as indicated below. ( Note: Option selection to be indicated
both by Number and Description.) I understand that once my first pension check is received, my decision on this option is irrevocable. If taking Option 1 sign below: Option #: 1 Employee's
Signature: n: Joint and Survivor Annuity Date: /0//s-b, Dependent children under the age of 18 and residing in my household are: Child' s Name Sex Date of Birth If taking Option 2 sign
below: Option #: 2 Description: Life Annuity Employee's Signature: Date: If taking Option 3, 4, 5, or 6 fill in beneficiary information and sign below: Option #: Description: My designated
beneficiary is: Name: Date of Birth: Sex M F Social Security Number: Phone Number: Address: Employee's Signature: Date: STATE OF FLORIDA COUNTY OF PINELLAS Rev. 4/08 Form # 9900 -0009
The fore oingiiinstrument was acknowledg d before me this Nei 11 by I f vna persona ly known to me or who has provided as i.-ifica on and wh did /ot ak an oath. anature f My Commission
expired?OTARY PUBLIC -STATE OF FLORiL DeLulah t . Fors' Commission # DD763426 Expires: N!LAY 15, 2012 BONDED THRU ATLANTIC E ) N"DLNG CO., INC. fin . who is Notary Public Name of Notary
Printed File Name: Pension Entitlement Option Form Item # 3
Estimated Pension Worksheet Ted Dorman LAST DATE PAID: BENEFITS DATE CREDITED SERVICE 10/28/2011 6/2/1986 25.4056 Prepared by: Deborah Ford Date: 10/18/11 CALENDAR YEAR GROSS PENSION
EARNINGS 2006 $ 43, 264.08 2007 $ 43, 838. 36 2008 $ 45, 792.57 2009 $ 45, 417.98 2010 $ 45,093.00 223,405.99 5/$ 44, 681. 20 12/$ 3,723.43 x 0. 0275 x 25.4056 2,601. 38 5 Year Total)
Yearly Avg) Monthly Avg) Benefit Rate) Yrs of Service) Est Mtly Pension) Item # 3
City of Clearwater Employees' Pension Plan Actuarial Equivalence Factors ESTIMATE Employee Name: Ted Dorman Employee Date of Birth: 11 9 1946 Marital Status: s Spouse Date of Birth:
Beneficiary Date of Birth: 2 20 1993 Benefit Commencement Date : 11 1 2011 18-Oct -11 sm clract0l Version: 1 -4 -96 Estimated Monthly Normal Retirement Benefit: $ 2, 601. 38 Actuarial
Equivalent Adjustment Factors: Option 1 Option 2 Option 3 Option 4 Option 5 Option 6 J &S Annuity Life Annuity 10 Year Certain 50% J &S 75% J &S 100% J &S ESTIMATE 1. 00000 1. 00000
0. 95368 0. 81113 0. 74114 0.68227 Estimated Monthly Benefit 2, 601. 38 2, 601. 38 2,480.88 2, 110.06 1, 928.00 1, 774. 85 Attachment number 1 \nPage 10 of 25 Item # 3
PREFERENCE # 1 PREFERENCE # 2 CITY OF CLEARWATER EMPLOYEES' SEPARATION PAY PREFERENCES Employees can receive a lump sum payment for vacation, floating holiday pay, sick leave incentive,
bonus days ( if applicable), and 1/2 of accrued sick leave at the time of separation from the City. There will be no deduction for pension from this lump sum payment nor will this amount
count as earnings in the calculation of the pension. The last day of work will be the termination date and pension benefits will begin the following month. Employee can extend termination
date by part or all of the time due for vacation, floating holiday pay, sick leave incentive, bonus days if appricable), -and 1/2 of accrued sick leave. Employee may choose to run out
this time in any manner. Balance will be paid in a lump sum on employee' s final paycheck. Termination date will be the final day of extended time. Pension benefits will begin the following
month. i, 4r) i41 OYij fi v,e /1I an employee of the City of Clearwater, hereby apply for pension benefits under the City' s Employees' Pension Plan. I hereby certify that I fully understand
the preferences offered to me. I choose to retire using separation pay preference # /and wish my benefits to be calculated under this preference. Please use my leave in the following
manner: Run Out vacation sick floaters bonus hours Lump Sum /3 )' 3 vacation 61 30 sick c21/-0 floaters bonus hours I understand that my preference cannot be changed once this form is
signed and that my cision is irrevocable. EMPLOYEE' S SIGNATURERevised 1102 Form # 9900 -0008 SOCIAL SECURITY #-jj t. ADDRESS-/3 I S 6-1.1 ' Y+ t WOCSS L e--1 v boa g IP, n /C ' Y c'
9 PHONE 1°27/939" St4 9. DATE-/0 /3 /File Name: Employee Separation Pay Pref Attachment number 1 \nPage 11 of Item # 3
CITY OF CLEARWATER PENSION ENTITLEMENT OPTION REQUEST FORM of Clearwater General r ployees' Pension Plan. Job Classificati Department: Jo ! of Benefits Date: e2 1 ci /Date of Birth:
/f y [ S-2 devdo hereby apply for retirement under the City Sex:( F ene ex( Sir. Division: Spouse' s Name: Spouse' s Date of Birth: Date of Hire: Resignation Date: J . FCrf e//i. 3i
//A, Sex: MO The type of pension for which I am applying is ( check only one): Regular Pension based on years of service Job -connected Disability Pension Non-job-connected Disability
Pension The City of Clearwater Employees' Pension Plan provides multiple options to Plan Participants as to the manner of the pension benefit payment. Option 1 below represents the standard
or normal form of retirement benefit. The other optional forms ( #2 -# 6) shall be computed to be the Actuarial Equivalent of the normal benefit. Option 1 -Joint and Survivor Annuity
The normal form of retirement benefit shall be an annuity paid monthly for the life of the Participant, with a 100% survivor annuity paid monthly for a period of five years following
the death of the Participant to the beneficiary, provided that following such five year period the survivor annuity shall be reduced to 50% of the original survivor annuity amount. [
See section 2. 397 ( a) ( 3) ( A)] The Participant's surviving spouse receives the designated amount for the rest of his /her life or until he /she remarries. If no surviving spouse,
dependent children under the age of 18 shall be deemed to be the beneficiary and receive the designated amount until the age of 18. [ Section 2. 397 ( a) ( 3) and Section 2. 398 ( b)
( 1)] Option 2 -Life Annuity The Participant receives his /her pension as long as he /she lives. Upon the death of the Participant, benefits cease. [Section 2. 398 ( b) ( 2) ( a) ( 1)]
Option 3 -10 Year Certain & Life Annuity -(must designate a beneficiary) The Participant receives his /her pension as long as he /she lives. If the Participant dies before 120 monthly
payments have been made, the remaining payments up to the 120 payments are made to his /her beneficiary. If payments to the beneficiary commence and he /she dies before the total of
120 payments has been made, the remainder of the payments is paid to the beneficiary's estate. If the first beneficiary predeceases the participant, he /she may designate a new beneficiary.
If no beneficiary is alive at the time of the participant's death, the participant's estate will be paid the balance of the 120 payments. [ Section 2. 398 ( b) ( 2) ( a) ( 2)] Option
4 -50% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his /her pension as long as he /she lives. If the Participant dies first, the beneficiary receives
50% of the pension for the rest of his /her life. If the beneficiary dies first, the Participant continues to receive 100% of his /her pension and upon his /her death, benefits cease.
[ Section 2. 398 ( b) ( 2) ( a) ( 3)] Option 5 -75% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his /her pension as long as he /she lives. If the
Participant dies first, the beneficiary receives 75% of the pension for the rest of his /her life. If the beneficiary dies first, the Participant continues to receive 100% of his /her
pension and upon his /her death, benefits cease. [Section 2. 398 ( b) ( 2) ( a) ( 3)] Item # 3
Option 6 -100% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his /her pension as long as he /she lives. If the Participant dies first, the beneficiary
receives 100% of the pension for the rest of his /her life. If the beneficiary dies first, the Participant continues to receive 100% of his /her pension and upon his /her death, benefits
cease. [Section 2. 398 ( b) ( 2) ( a) ( 3) J I have considered the normal form of benefit payment under such Plan ( which is designated on this Form as Option 1) and the various alternative
optional benefit payment methods ( Options 2 through 6) under such Plan and have elected to receive my retirement benefits as indicated below. ( Note: Option selection to be indicated
both by Number and Description.) I understand that once my first pension check is received, my decision on this option is irrevocable. If taking Option 1 sign below: Option #: 1 Descr
Employee's Signature: Joint and Su or A nui Dependent children under the age of 18 a d r siding in my household are: Child' s Name Sex Date: Date of Birth if taking Option 2 sign below:
Option #: 2 Description: Life Annuity Employee's Signature: Date: If taking Option 3, 4, 5, or 6 fill in beneficiary information and sign below: Option #: Description: My designated
beneficiary is: Name: Date of Birth: Sex M F Social Security Number: Phone Number: Address: Employee's Signature: Date: STATE OF FLORIDA COUNTY OF PINELLAS Rev. 4/08 Form # 9900 -0009
The foregoing in trument was acknowledged before me this Ic)/3/li i by ) 41/1 tAttinj % s he-/l /who is personally known to me or who has provided as iden ation and who idnot to an oath.
Signature) e)), oral, My Commission expires: NOTARY PUBLIC -STATE OF FLORIDA Deborah L. Ford Commission # DD763426 Expires: MAY 15, 2012 BONDED THRU ATLANTIC BONDING CO„ INC. Notary
Public Name of Notary Printed File Name: Pension Entitlement Option Form Item # 3
Estimated Pension Worksheet Anthony Fanelli GROSS CALENDAR PENSION YEAR EARNINGS LAST DATE PAID: 1/31/2012 2007 $ 44, 465. 14 BENEFITS DATE 2/11/1991 2008 $ 45, 150.37 CREDITED SERVICE
20. 9722 2009 $ 45, 901. 22 2010 $ 45, 914.97 estimated -pension gross ytd of 39,616. 37 plus 4 x 2011 $ 46, 538. 37 1730.50 227, 970.07 ( 5 Year Total) 5/$ 45, 594.01 ( Yearly Avg)
12/$ 3, 799.50 ( Monthly Avg) x 0. 0275 ( Benefit Rate) x 20. 9722 ( Yrs of Service) 2, 191. 31 ( Est Mtly Pension) Prepared by: Deborah Ford Date: 10/31/11 Item # 3
City of Clearwater Employees' Pension Plan Actuarial Equivalence Factors 31-Oct -11 sm ESTIMATE clract0l Version: Employee Name: Anthony Fanelli 1 -4 -96 Employee Date of Birth: 1 4
1957 Marital Status: m Spouse Date of Birth: 6 2 1965 Beneficiary Date of Birth: 6 2 1965 Benefit Commencement Date : 2 1 2012 Estimated Monthly Normal Retirement Benefit: $ 2, 191.
31 Actuarial Equivalent Adjustment Factors: Estimated Monthly Benefit Option 1 J &S Annuity 1. 00000 $ 2, 191. 31 Option 2 Life Annuity 1. 11144 $ 2,435. 52 Option 3 10 Year Certain
1. 09542 $ 2, 400.40 Option 4 50% J &S 1. 03907 $ 2, 276.93 Option 5 75% J &S 1. 00631 $ 2, 205. 13 Option 6 100% J &S 0. 97555 $ 2, 137. 72 ESTIMATE Attachment number 1 \nPage 15 of
Item # 3
PREFERENCE # 1 PREFERENCE # 2 I `..) 0111/) CITY OF CLEARWA TER EMPLOYEES' SEPARA TION PAY PREFERENCES Employees can receive a lump sum payment for vacation, floating holiday pay, sick
leave incentive, bonus days ( if applicable), and 1/2 of accrued sick leave at the time of separation from the City. There will be no deduction for pension from this lump sum payment
nor will this amount count as earnings in the calculation of the pension. The last day of work will be the termination date and pension benefits will begin the following month. Employee
can extend termination date by part or all of the time due for vacation, floating holiday pay, sick —leave incentive, bonus days cif apple brt7 and 1/2 of accrued sick leave. Employee
may choose to run out this time in any manner. Balance will be paid in a lump sum on employee' s final paycheck. Termination date will be the final day of extended time. Pension benefits
will begin the following month. an employee of the City of Clearwater, hereby apply for pension benefits under the City' s Employees' Pension Plan. I hereby certify that I fully understand
the preferences offered to me. I choose to retire using separation pay preference # and wish my benefits to be calculated under this preference. Please use my leave in the following
manner: 3( 0, 0 vacation sick o2 ' ® floaters bonus hours 9-6' 3 vacation 111' 3 sick floaters 1 ay. O bonus hours Run Out Lump Sum I understand that my preference cannot be changed
once this form is signed and that my decision is irrevocable. EMPLOYEE' S SIGNATURESOCIAL SECURITY #-Circ//U ! V 3 /v^ trcv c c C. -' Aicui Arf-Ai) WITNESSES: ADDRESS -A'g"g 144/() PHONE
7`37/51/6_ ?% O DATE-/1 3///Revised 1/02 Form # 9900 -0008 File Name: Employee Separation Pay Pref Item # 3
CITY OF CLEARWATER PENSION ENTITLEMENT OPTION REQUEST FORM 1, () Ewa (rl of Clearwater General Employees' Pension Plan. dodo hereby apply for retirement under the City Job Classification:
00S J ec, h vi 1c i' qn _LL4 Sex: M Department: s Division: /Benefits Date: /2 -71 6-7 Date of Hire: it ! i /17 4 Date of Birth: /. 71 a 3 /( Resignation Date: /2/3d //i Spouse's Name:
J -171 ab -Spouse's Date of Birth: ii/15f Ytf Sex: MO The type of pension for which I am applying is ( check only one): Regular Pension based on years of service Job -connected Disability
Pension Non -job-connected Disability Pension The City of Clearwater Employees' Pension Plan provides multiple options to Plan Participants as to the manner of the pension benefit payment.
Option 1 below represents the standard or normal form of retirement benefit. The other optional forms ( #2 -# 6) shall be computed to be the Actuarial Equivalent of the normal benefit.
Option 1 -Joint and Survivor Annuity The normal form of retirement benefit shall be an annuity paid monthly for the life of the Participant, with a 100% survivor annuity paid monthly
for a period of five years following the death of the Participant to the beneficiary, provided that following such five year period the survivor annuity shall be reduced to 50% of the
original survivor annuity amount. [ See section 2. 397 ( a) ( 3) ( A)] The Participant's surviving spouse receives the designated amount for the rest of his /her life or until he /she
remarries. If no surviving spouse, dependent children under the age of 18 shall be deemed to be the beneficiary and receive the designated amount until the age of 18. [ Section 2. 397
(a) ( 3) and Section 2. 398 ( b) ( 1)] Option 2 -Life Annuity The Participant receives his /her pension as long as he /she lives. Upon the death of the Participant, benefits cease. [
Section 2. 398 ( b) ( 2) ( a) ( 1)] Option 3 -10 Year Certain & Life Annuity -(must designate a beneficiary) The Participant receives his /her pension as long as he /she lives. If the
Participant dies before 120 monthly payments have been made, the remaining payments up to the 120 payments are made to his /her beneficiary. If payments to the beneficiary commence and
he /she dies before the total of 120 payments has been made, the remainder of the payments is paid to the beneficiary' s estate. If the first beneficiary predeceases the participant,
he /she may designate a new beneficiary. If no beneficiary is alive at the time of the participant's death, the participant's estate will be paid the balance of the 120 payments. [ Section
2. 398 ( b) ( 2) ( a) ( 2)] Option 4 -50% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his /her pension as long as he /she lives. If the Participant
dies first, the beneficiary receives 50% of the pension for the rest of his /her life. If the beneficiary dies first, the Participant continues to receive 100% of his /her pension and
upon his /her death, benefits cease. [Section 2. 398 ( b) ( 2) ( a) ( 3)] Option 5 -75% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his /her pension
as long as he /she lives. If the Participant dies first, the beneficiary receives 75% of the pension for the rest of his /her life. If the beneficiary dies first, the Participant continues
to receive 100% of his /her pension and upon his /her death, benefits cease. [Section 2. 398 ( b) ( 2) ( a) ( 3)] Attachment number 1 \nPage 17 of Item # 3
Option 6 -100% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his /her pension as long as he /she lives. If the Participant dies first, the beneficiary
receives 100% of the pension for the rest of his /her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his /her death, benefits
cease. [Section 2. 398 ( b) ( 2) ( a) ( 3)] I have considered the normal form of benefit payment under such Plan (which is designated on this Form as Option 1) and the various alternative
optional benefit payment methods (Options 2 through 6) under such Plan and have elected to receive my retirement benefits as indicated below. ( Note: Option selection to be indicated
both by Number and Description.) I understand that once my first pension check is received, my decision on this option is irrevocable. If taking Option 1 sign below: Option #: 1 Description:
Joint and Survivor Annuity Employee's Signature: Date: Dependent children under the age of 18 and residing in my household are: Date of Birth Child' s Name Sex if taking Option 2 sign
below: Option #: 2 Description: Life Annuity Employee's Signature: Date: If taking Option 3, 4, 5, or 6 fill in beneficiary information and sign below: Option #: ( o Description: My
design ted en fciary is: Name: -1-5 a. b , 4Cctt r14.. Date of Birth: Social Security Number: Address: 10/Y3 n1— v, Vc 91,7C-"/I //S0-//Sex M0 Phon Number: 7 a 7/I ' ` 7 d C cck 9 FL
3 qG Employee's Signature: STATE OF FLORIDA COUNTY OF PINELLAS Rev. 4/08 Form # 9900 -0009 Date: 1/The foregoing instrument was acknowledged before me this 3 I /by </c.) )1 OS (A./ci
/of' who is personally known to me or who has provided as identi tion and who did/did .not take ap oath. Signature) e_bd ra.`i Notary Public Name of Notary Printed My Commission expires:
No PUBLIC -STATE OF FLORIDA Deborah L. Ford u', = Commission # DD763426 Expires: MAY 15, 2012 BONDED THRU ATLANTIC BONDING CO:, INC File Name: Pension Entitlement Option Form Attachment
number 1 \nPage 18 of Item # 3
11 Estimated Pension Worksheet John Oswald GROSS CALENDAR PENSION YEAR EARNINGS LAST DATE PAID: 12/23/2011 2007 $ 47, 151. 87 BENEFITS DATE 12/7/1987 2008 $ 48, 833. 33 CREDITED SERVICE
24.0444 2009 $ 50, 141. 63 2010 $ 50, 098.27 pension gross ytd of 42, 547.47 plus 4 x b/w base of 2011 $ 50, 186. 99 1909. 88) 246,412.09 ( 5 Year Total) 5/$ 49, 282.42 ( Yearly Avg)
12/$ 4, 106. 87 ( Monthly Avg) x 0. 0275 ( Benefit Rate) x 24. 0444 ( Yrs of Service) 2, 715.55 ( Est Mtly Pension) Prepared by: Deborah Ford Date: 11/3/11 Attachment number 1 \nPage
19 of Item # 3
City of Clearwater Employees' Pension Plan Actuarial Equivalence Factors ESTIMATE Employee Name: John Oswald Employee Date of Birth: 12 23 1956 Marital Status: m Spouse Date of Birth:
11 15 1940 Beneficiary Date of Birth: 11 15 1940 Benefit Commencement Date : 1 1 2012 03-Nov -11 sm clract01 Version: 1 -4 -96 Estimated Monthly Normal Retirement Benefit: $ 2, 715.
55 Actuarial Equivalent Adjustment Factors: Option 1 Option 2 Option 3 Option 4 Option 5 Option 6 J & S Annuity Life Annuity 10 Year Certain 50% J &S 75% J &S 100% J &S ESTIMATE 1. 00000
1. 02844 1. 01361 1. 01048 1. 00173 0.99313 Estimated Monthly Benefit 2, 715. 55 2,792.78 2, 752. 51 2, 744. 01 2,720.25 2,696.91 Attachment number 1 \nPage 20 of Item # 3
PREFERENCE # 1 PREFERENCE # 2 CITY OF CLEARWATER EMPLOYEES' SEPARATION PAY PREFERENCES Employees can receive a lump sum payment for vacation, floating holiday pay, sick leave incentive,
bonus days ( if applicable), and 1/2 of accrued sick leave at the time of separation from the City. There will be no deduction for pension from this lump sum payment nor will this amount
count as earnings in the calculation of the pension. The last day of work will be the termination date and pension benefits will begin the following month. Employee can extend termination
date by part or all of the time due for vacation, floating holiday pay, sick leave incentive, bonus days ( if applicable), and 1/2 of accrued sick leave. Employee may choose to run out
this time in any manner. Balance will be paid in a lump sum on employee' s final paycheck. Termination date will be the final day of extended time. Pension benefits will begin the following
month. an employee of the City of Clearwater, hereby apply for pension benefits under the City' s Employees' Pension Plan. I hereby certify that I fully understand the preferences offered
to me. I choose to retire using separation pay preference # tand wish my benefits to be calculated under this preference. Please use my leave in the following manner: Run Out Lump Sum
a(lo 0 vacation sick floaters vacation 5-5"5' 9' sick floaters Sao. bonus hours bonus hours I understand that my preference cannot be changed once this form is signed and that my decision
is irrevocable. TNESSES: EMPLOYEE' S SIGNATURE: SOCIAL SECURITY #: ADDRESS: Revised 1/02 Form # 9900 -0008 1 FL ? 376 5 PHONE: 7')---7 1.41( 19-6-5'° 7 DATE-/01,7q///Ce /702 7 oa y-Q
File Name: Employee Separation Pay Pref Attachment number 1 \nPage 21 of 25 Item # 3
CITY OF CLEARWATER PENSION ENTITLEMENT OPTION REQUEST FORM I, rnos _ S eptqCV)S of Clearwater General Employees' Pens on Plan. Job Classificati Department: V Benefits Date: Date of Birth:
do hereby apply for retirement under the City k _ v..)tL.e.. c-t1er S in eS Division: Date of Hire: Resignation Date: Spouse' s Name: Spouse' s Date of Birth: 0 Srb ev s Sex: M The type
of pension for which I am applying is (check only one): Regular Pension based on years of service Job -connected Disability Pension Non -job-connected Disability Pension The City of
Clearwater Employees' Pension Plan provides multiple options to Plan Participants as to the manner of the pension benefit payment. Option 1 below represents the standard or normal form
of retirement benefit. The other optional forms ( #2 -# 6) shall be computed to be the Actuarial Equivalent of the normal benefit. Option 1 -Joint and Survivor Annuity The normal form
of retirement benefit shall be an annuity paid monthly for the life of the Participant, with a 100% survivor annuity paid monthly for a period of five years following the death of the
Participant to the beneficiary, provided that following such five year period the survivor annuity shall be reduced to 50% of the original survivor annuity amount. [See section 2. 397
( a) ( 3) ( A)] The Participant's surviving spouse receives the designated amount for the rest of his /her life or until he /she remarries. If no surviving spouse, dependent children
under the age of 18 shall be deemed to be the beneficiary and receive the designated amount until the age of 18. [ Section 2.397 ( a) ( 3) and Section 2. 398 (b) ( 1)] Option 2 -Life
Annuity The Participant receives his /her pension as long as he /she lives. Upon the death of the Participant, benefits cease. [Section 2. 398 ( b) ( 2) ( a) ( 1)] Option 3 -10 Year
Certain & Life Annuity -(must designate a beneficiary) The Participant receives his /her pension as long as he /she lives. If the Participant dies before 120 monthly payments have been
made, the remaining payments up to the 120 payments are made to his /her beneficiary. If payments to the beneficiary commence and he /she dies before the total of 120 payments has been
made, the remainder of the payments is paid to the beneficiary' s estate. If the first beneficiary predeceases the participant, he /she may designate a new beneficiary. If no beneficiary
is alive at the time of the participant's death, the participant's estate will be paid the balance of the 120 payments. [ Section 2. 398 ( b) ( 2) ( a) ( 2)] Option 4 -50% Joint & Survivor
Annuity -(must designate a beneficiary) The Participant receives his /her pension as long as he /she lives. If the Participant dies first, the beneficiary receives 50% of the pension
for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his /her pension and upon his /her death, benefits cease. [ Section 2. 398 (
b) ( 2) ( a) ( 3)] Option 5 -75% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his /her pension as long as he /she lives. If the Participant dies
first, the beneficiary receives 75% of the pension for the rest of his /her life. If the beneficiary dies first, the Participant continues to receive 100% of his /her pension and upon
his/her death, benefits cease. [Section 2. 398 ( b) ( 2) ( a) ( 3)] Attachment number 1 \nPage 22 of Item # 3
Option 6 -100% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his /her pension as long as he /she lives. If the Participant dies first, the beneficiary
receives 100% of the pension for the rest of his /her life. If the beneficiary dies first, the Participant continues to receive 100% of his /her pension and upon his /her death, benefits
cease. [Section 2. 398 ( b) ( 2) ( a) ( 3)] I 1) haavnedctohnesvidaerrioeudsthaeltenronramtivael foorpmtioonfabl ebneenfeitfipt apyamymenetnutnmdeerthsoudcsh (POlapnti o(nwshi2chthisroduegshig6n)a
tuenddeorn sthuicshFPolramn aasndOphtaiovne elected to receive my retirement benefits as indicated below. ( Note: Option selection to be indicated both by Number and Description.) I
understand that once my first pension check is received, my decision on this option is irrevocable. If taking Option 1 sign below: Option #: 1 Description: Joint and Survivor Annuity
Employee's Signature: Date: Dependent children under the age of 18 and residing in my household are: Date of Birth Child' s Name Sex If taking Option 2 sign below: Option #: 2 Employee's
Signature: Description: Life Annuity Date: If taking Option 3, 4, 5, or 6 fill in beneficiary informat onalid sin below: t u/>/, tic/0/Option #: p Description: 0-0 c o \% My desig ated
beneficiary is: Name: Gay gieph er,S Date of Birth: Social Security Number: Address: nut c) 0.)70 inc-6-1/m4 Sex MFO' Phone Number: 7,1 7/G C° 7 — a %S Employee's Signature: STATE OF
FLORIDA COUNTY OF PINELLAS Rev. 4/08 Form # 9900 -0009 The foregoing instrument wasp acknowledged before me this_ by Q/Z7 ' 7 es , 4 Sier hen1 S who is personally known to me or who
has provided l k anoa as iden : atio and who did /d.d not , lj1C/'J, r ignature) My Commission p r, e -J1ATE OF FLORIDA Deborah L. Ford Commission # DD763426 Expires: MAY 15, 2012 Kai=
Mal ATLANTIC BONDING co., INC. File Name: Pension Entitlement Option Form Notary Public Name of Notary Printed Attachment number 1 \nPage 23 of Item # 3
Estimated Pension Worksheet 1I James Stephens GROSS CALENDAR PENSION YEAR EARNINGS LAST DATE PAID: 2/8/2012 2004 $ 51, 857. 13 BENEFITS DATE 2/8/1982 2008 $ 52, 572. 09 CREDITED SERVICE
30.0000 2009 $ 52, 984. 35 2010 $ 53, 011. 34 2011 $ 54, 594. 71 Estimated ( pension gross ytd of $44 265, 019.62 ( 5 Year Total) 5/$ 53, 003. 92 ( Yearly Avg) 12/$ 4,416.99 ( Monthly
Avg) x 0. 0275 ( Benefit Rate) x 30. 0000 ( Yrs of Service) 3, 644.02 ( Est Mtly Pension) Prepared by: Deborah Ford Date: 10/24/11 Attachment number 1 \nPage 24 of Item # 3
City of Clearwater Employees' Pension Plan Actuarial Equivalence Factors ESTIMATE Employee Name: Employee Date of Birth: Marital Status: Spouse Date of Birth: Beneficiary Date of Birth:
Benefit Commencement Date James Stephens 10 24 1961 m 6 18 1964 6 18 1964 3 1 2012 Estimated Monthly Normal Retirement Benefit: $ 3, 644. 02 Option 1 Option 2 Option 3 Option 4 Option
5 Option 6 24-Oct -11 sm clract01 Version: 1 -4 -96 Actuarial Equivalent Adjustment Factors: J &S Annuity Life Annuity 10 Year Certain 50% J &S 75% J &S 100% J &S ESTIMATE 1. 00000 1.
06870 1. 05929 1. 02470 1. 00403 0. 98418 Estimated Monthly Benefit 3, 644.02 3, 894.37 3, 860.06 3, 734.03 3, 658.72 3, 586. 38 Item # 3
Pension Trustees Agenda Council Chambers -City Hall Meeting Date:12/13/2011 SUBJECT /RECOMMENDATION: Approve the termination of Wellington Management as an emerging markets money manager
for the pension plan; approve the transfer of the terminated manager funds to Eaton Vance, the plan’s other emerging markets money manager; and approve a new target range of 5% to 8%
for emerging market securities. SUMMARY: Approve the termination of Wellington Management as an emerging markets money manager for the pension plan; approve the transfer of the terminated
manager funds to Eaton Vance, the plan’s other emerging markets money manager; and approve a new target range of 5% to 8% for emerging market securities. The Pension Investment Committee
is recommending the termination of Wellington Management on the basis of poor performance. The emerging market performance results as of September 30, 2011, are as follows: 9/30/11 9/30/11
YTD 2010 2009 Wellington -24.39% 15.99% 74.44% Eaton Vance -21.00 23.00 67.01 MSCI Emerging Mkts -21.66 19.19 79.02 The most recent asset allocation study, approved by the Trustees on
December 14, 2009, included a target allocation to emerging markets of 3%. This was based on industry standards and a comprehensive asset allocation study of the correlation and risk/return
characteristics of the various plan asset categories. The Pension Investment Policy has a range for total international investments (including emerging markets) of 10% to 25%. The Pension
Investment Committee and Cap Trust, the plan’s performance measurement consultant, concur that a 3% allocation to emerging markets could be increased to take advantage of current market
conditions, without adding significant risk to the plan. A target allocation range of 5% to 8% is recommended. If approved, the plan assets will be reallocated during the normal rebalancing
process so that the pension plan investment portfolio will have no less that 5%, or more than 8%, exposure to emerging markets. Cap Trust and staff are available to answer any questions
the Trustees have. Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Cover Memo Item # 4
Pension Trustees Agenda Council Chambers -City Hall Meeting Date:12/13/2011 SUBJECT /RECOMMENDATION: Approve contracts with the law firms of Kessler Topaz Melzer and Cheek, LLP and Saxena
White P.A. to provide monitoring of securities in the pension plan investment portfolio in connection with claims for damages against such persons, entities, companies or associations
who may be liable for damages suffered by the pension plan, at no cost to the plan and authorize the appropriate officials to execute same. SUMMARY: The plan’s custodian, Northern Trust,
and city staff currently monitor the portfolio for claims for damages and process related claim forms. The pension plan’s attorneys, Klausner, Kaufman, Jensen and Levinson, have recommended
that the plan hire legal firms that specialize in this area. Cap Trust, the plan's performance measurement consultant, and the City issued a Request for Qualifications (RFQ) for pension
monitoring services. Bases on the responses to the RFQ the following three firms were chosen for interviews: l Kessler Topaz Melzer and Cheek, LLP l Saxena White P.A. l Pomerantz Haudek
Grossman and Gross LLP The Pension Investment Committee is recommending the plan hire Kessler Topaz Melzer and Cheek, LLP, to be the primary claims processer as well as provide portfolio
monitoring services. The Pension Investment Committee also recommends that Saxena White P.A. be hired to provide portfolio monitoring. It is very common for pension plans to have multiple
law firms in this role. Both of the firms think very highly of each other and believe two firms working on portfolio monitoring is in the plan's best interests. Both of the legal firms
provide this service at no cost to the plan. During the course of monitoring the portfolio, if either of the firms decides a situation warrants legal action they will bring that recommendation
to staff. If staff feels a situation warrants legal action, a separate written retainer will be negotiated with the law firm based on the particular facts in the case in question. This
will then be brought to the Pension Trustees for their approval. The plan will incur no cost without the prior approval of the Trustees. Type: Other Current Year Budget?: None Budget
Adjustment: None Budget Adjustment Comments: Current Year Cost: Annual Operating Cost: Not to Exceed: Total Cost: For Fiscal Year: to Review Approval: 1) Office of Management and Budget
2) Legal 3) Clerk 4) Assistant City Manager 5) City ManageCr o6v)e rC Mleermko Item # 5
Attachment number 1 \nPage 1 Item # 5
Attachment number 1 \nPage 2 Item # 5
Attachment number 1 \nPage 3 Item # 5
Attachment number 1 \nPage 4 Item # 5
Attachment number 1 \nPage 5 Item # 5
Attachment number 1 \nPage 6 Item # 5
Attachment number 1 \nPage 7 Item # 5
Attachment number 1 \nPage 8 Item # 5
Pension Trustees Agenda Council Chambers -City Hall Meeting Date:12/13/2011 SUBJECT /RECOMMENDATION: Approve changes to the City of Clearwater Employees’ Pension Plan investment policy
to add real estate as a separate category under Authorized Investments; to update investment benchmark names; and to make grammatical corrections and other minor changes to make the
policy easier to understand. SUMMARY: The Pension Plan Investment Policy requires an annual review of the policy by the Pension Investment Committee, with a recommendation to revise
or confirm to the Pension Trustees. The most significant change to the policy per the annual review is the addition of Real Estate as a separate asset class under Authorized Investments.
Previously real estate was allowed under alternative Investments. The names of two performance benchmarks have been updated. The Lehman Brothers Aggregate Bond Index has been renamed
to the Barclay’s Capital Aggregate Index. The Morgan Stanley International EAFE Index has been renamed to the MSCI EAFE Index. Additions have been highlighted in yellow and deletions
are marked as a strike through. Grammatical changes and changes to make the document easier to understand have also been made. Review Approval: 1) Office of Management and Budget 2)
Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Cover Memo Item # 6
STATEMENT OF INVESTMENT OBJECTIVES AND GUIDELINES CITY OF CLEARWATER EMPLOYEES’ PENSION PLAN Proposed December 13, 2011 Adopted April 13, 2011 Attachment number 1 \nPage 1 Item # 6
1 PURPOSE The purpose of this Statement of Investment Objectives and Guidelines hereinafter referred to as the “Policy Statement” or “Policy” is to assist the City of Clearwater Employees’
Pension Plan (hereafter referred to as the fund) in more effectively supervising and monitoring the investment of the Fund's assets. In the various sections of this policy document,
the Fund defines its investment program by: stating in a written document the Fund's attitudes, expectations and objectives in the investment of Fund assets. setting forth an investment
"structure" for managing assets. This structure includes various asset classes and investment management styles that, in aggregate, are expected to produce a prudent level of diversification
and investment return over time. providing guidelines for each investment portfolio that control the level of risk assumed in the portfolio and ensure that assets are managed in accordance
with stated objectives. encouraging criteria to monitor and evaluate the performance results achieved by the investment managers. This Statement represents the Fund's current philosophy
regarding the investment of Fund assets. In addition, although the Fund shall utilize this Policy Statement in making decisions concerning the Fund, it shall not necessarily be bound
solely by its contents. PRUDENCE AND ETHICAL STANDARDS The standard of prudence to be applied by the trustees shall be the "Prudent Person" rule, which states: "Investments shall be
made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation,
but for investment, considering the probable safety of their capital as well as the probable income derived." The "Prudent Person" rule shall be applied in the context of managing the
overall portfolio. The trustees shall also be governed by the fiduciary standard set forth in the Employee Retirement Income Security Act of 1974 at 29U.S.C. s. 1104 (a) (1) (A) – (C).
In the event of a conflict between the Policy and Florida Statutes or City ordinances, the statutes and ordinances shall prevail. Funding Philosophy The Fund's funding objectives are
to be as fully funded as possible so that: the ability to pay all benefits and expense obligations from the Fund when due is ensured; Attachment number 1 \nPage 2 Item # 6
2 there will be no principal erosion of contributed funds or the purchasing power thereof. a "funding cushion" is maintained within the Fund for unexpected developments and for possible
future increases in benefit structure and expense levels; the Fund assets should earn sufficient total rate of return over time to reduce the fund's dependency on employer contributions
to meet all benefit and expense obligations. Investment results within the Fund are considered to be the major critical element in achieving these funding objectives stated above while
reliance on contributions is a secondary element. Liquidity Posture The investment portfolio shall be structured in such a manner as to provide sufficient liquidity to pay obligations
as they come due. Liquidity considerations are low in the short-term and intermediate-term resulting in an immaterial impact upon investment policy, objectives and guidelines. Authorized
Investments The following is a list of authorized investments: Invest and reinvest the assets of the pension fund in annuity (including group annuity contracts of the pension investment
type) and life insurance contracts of legal reserve life insurance companies, in amounts sufficient to provide, in whole or in part, benefits to which all of the participants shall be
or become entitled to under the provisions of the Fund, and pay the initial and subsequent premiums thereon. Provided that the amount invested with a life insurance company shall not
exceed three percent (3%) of the insurance company’s assets. Invest and reinvest the assets of the pension fund in: a. Time deposits, savings accounts, money market accounts, funds,
certificates of deposits, or money market certificates of a national bank, a state bank, or a savings, building and loan association. b. Negotiable direct obligations of, or obligations
the principal and interest of which are unconditionally guaranteed by, and which carry the full faith and credit of the United States Government and its agencies. Investments in this
category would include but not be limited to the following: United States Treasury Bills, Notes and Bonds, and securities issued by the Small Business Administration, Government National
Mortgage Association (Ginnie Mae), Veterans Administration, and Federal Housing Administration. Attachment number 1 \nPage 3 Item # 6
3 c. Fully collateralized United States Agency obligations, which carry an implied guarantee and the implied full faith and credit of the United States government. Investments in this
category would include but not be limited to the following: obligations of the Federal Home Loan Banks System (FHLB) or its distinct banks and Financing Corporation (FICO). d. Other
United States Agency obligations, which carry an implied guarantee (Government Sponsored Entities) and the implied full faith and credit of the United States Government. Investments
in this category would include but not be limited to the following: obligations of the Federal Farm Credit Bank, Federal National Mortgage Association (Fannie Mae), Federal Home Loan
Mortgage Corporation (Freddie Mac), Student Loan Marketing Association (Sallie Mae), Financial Assistance Corporation and Federal Agriculture Mortgage Corporation (Farmer Mac). e. Collateralized
Mortgage Obligations (CMO) and/or Real Estate Mortgage Investment Conduits (REMIC), rated investment grade or equivalent by Standard and Poor's, Moody's Fitch, or other recognized national
rating agencies which are backed by securities otherwise authorized in this ordinance and which are guaranteed as to the timely payment of principal and interest by the U.S. Government
or its agencies. f. Securities of countries, states, municipalities and county governments or their public agencies, which are, rated investment grade or equivalent by Standard and Poor's,
Moody's Fitch, or other recognized national rating agencies. g. Asset-backed securities, which are, rated investment grade or equivalent by Standard and Poor's, Moody's Fitch, or other
recognized national rating agencies. h. Common stocks, preferred stocks and bonds and other evidence of indebtedness issued or guaranteed by a corporation organized under the laws of
the United States, any state, or organized territory of the United States or the District of Columbia or any non-U.S. corporation, provided: 1. The corporation is listed on any one or
more of the recognized national or international stock exchanges and/or in the case of bonds and mortgage backed securities, traded among dealers and investors in a recognized and agreed
upon conventional format; 2. Unless an asset allocation for less than investment grade corporate bonds is established, all corporate bonds shall carry an investment grade rating as established
either by Standard & Poor's, Moody's, Fitch or other recognized rating agencies; and 3. Not more than three percent (3%) of the equity assets of the pension Fund shall be invested in
the common stock or capital stock of any one issuing corporation except to the extent a higher percentage of the same issue is included in a nationally recognized market index, based
on market values, at least as broad as the Standard and Poor's Composite Index of Attachment number 1 \nPage 4 Item # 6
4 500 Companies, or except upon a specific finding by the investment committee that such higher percentage is in the best interest of the Fund; nor shall the non-U.S. investments exceed
twenty five percent (25%) of the pension Fund's assets at market; nor shall the aggregate of the investments under this subparagraph at cost exceed seventy percent (70%) of the pension
Fund's assets at market. i. Real estate including but not limited to REITS, comingled or limited partnerships. Investments in timber through vehicles such as comingled or limited partnerships
are a subclass of real estate. k. Alternative Investments, with no more, in the aggregate, than ten percent (10%) of the Fund in alternative investments, through participation in securities
or investments or an alternative investment vehicle that is not publicly traded and is not otherwise authorized by this section. Alternative Investments include securities which fall
outside the scope of traditional investments (stocks, bonds, and cash) or are strategies investing in securities using alternative means (derivatives, leverage, short selling), or some
combination thereof. Such alternative investments and strategies include, but are not limited to: hedge funds, real estate, and private equity and natural resources. An “alternative
investment vehicle" is a limited partnership, limited liability company, or similar legal structure or investment manager through which the fund invests in a portfolio company. Investments
not listed above in this section are prohibited. Bid Requirements All securities shall be competitively bid where feasible and appropriate. Except as otherwise required by law, the most
economically advantageous bid must be selected. Executions must be made on a best-execution basis. Illiquid Investments The Fund will not invest in illiquid investments. Illiquid investments
being defined as an investment for which there is no generally recognized market or generally accepted pricing mechanism. Once an investment becomes illiquid the money manager will notify
the plan of the illiquid investment. Included in that notification will be how the money manager will handle the illiquid investment. INVESTMENT MANAGEMENT STRUCTURE Five distinct asset
classes will be considered for inclusion in the portfolio which will include Domestic Equities, International Equities, Domestic Fixed Income, Real Estate, and Alternative Investments.
A permanent commitment to these five asset classes will be made to ensure diversification at the Fund level. The Fund may consider investments in other asset classes which offer potential
enhancement to total return at risks no greater than the exposures under the initially selected asset classes. Attachment number 1 \nPage 5 Item # 6
5 It is not the intention of the Fund to become involved in day-to-day investment decisions. Therefore, the assets will be allocated to professional investment managers in a manner consistent
with the Policy's objectives. Each asset class will have its own investment managers. Diversification of the U.S. Market Equity commitment will be achieved through the employment of
managers of complementary investment styles, Growth and Value. In the U.S. Fixed Income market, at least one core bond manager will be utilized to stabilize the Fund. In the International
Equity market, diversified non-U.S. managers will be hired to achieve diversification. In the Real Estate market, the Fund will utilize collective funds or REIT’s for purposes of diversification.
In the Alternatives market, the Fund will hire fund of funds managers to optimize strategies and provide adequate safety of capital and diversification. Cash and cash equivalents will
be managed either by the Investment Managers or the custodian. In addition the City uses the pooling concept to meet the immediate cash needs of the city and to maximize the interest
earnings. All cash placed in the City’s pooled cash account shall be separately accounted for and listed as an asset of the Fund. The Fund will keep sufficient funds in the City’s pooled
cash account to meet the current obligations of the Fund. The guidelines for the allocation of assets, at market, to investment managers are as follows: Asset Class Lower Limit Upper
Limit Market U.S. Market Equities Growth Value 20% 10% 10% 60% 30% 30% Market Market Market International Equity 10% 25% Market Domestic Fixed Income 30% 40% Market Real Estate 0% 15%
Market Alternative Investments 0% 10% Market Because the asset classes do not move in concert, deviations from the normal commitments will occur through normal market activity. The Upper
and Lower Limits define the ranges within which market activity will be allowed to shift the allocations. The ranges are designed to allow for a reasonable period of time to elapse before
rebalancing the portfolio. When the investments are out of policy the assets will be moved from the over-allocated to the under-allocated in a prudent manner. When in market equilibrium,
cash flows will be deployed in a manner that returns the portfolio to its normal commitments. Internal Controls As part of the City’s annual financial audit the external CPA firm will
review the internal controls of the Fund. The hiring or termination of all money managers, consultants or safekeeping custodians must be made by the trustees. No individual associated
with the Fund may authorize any movement of monies or securities without the approval of the trustees, if required, or by the approval of the Pension Investment Committee if trustee
approval is not required. Trustee approval is not required for rebalancing of the portfolio. Internal controls will be designed to prevent losses Attachment number 1 \nPage 6 Item #
6
6 of funds which might arise from fraud, error, and misrepresentation by third parties or imprudent actions by the trustees or City employees. Makeup of the Investment Committee The
Pension Investment Committee shall consist (at a minimum) of the following: Finance Director (Treasurer for the Trustees), Assistant Finance Director, the Cash & Investments Manager
and one member from the general public appointed by the Trustees. The Treasurer for the Trustees shall appoint/remove other Finance professionals as needs warrant. One representative
for each of the unions may also serve on the Investment Committee. The Finance Director or its designee will chair the committee. The Treasurer for the Trustees will make recommendations
to the Trustees as to any changes in the makeup of the committee. Continuing Education The annual budget for the Pension Fund will include sufficient funding for the trustees and members
of the Pension Investment Committee to participate in pension education opportunities. These educational opportunities will include education on the individual’s duties and responsibilities
as well as investments in general. The chief investment officer will complete no less than eight (8) hours of continuing educational opportunities on pension investments each fiscal
year. INVESTMENT RETURN OBJECTIVES In formulating investment return objectives for the Funds’ assets, the Fund placed primary emphasis on the following goals: Achieve investment performance
that exceeds the rate of inflation over time thereby providing a real rate of return. Achieve investment results of at least the actuarial rate of return. Achieve investment performance
that is materially above average when compared to: -Other investment managers -Other investment manager peers of related investment style -Other public retirement plans -Several capital
market indices The Trustees will determine the expected rate of return of the current year, and future years. The expected rate of return for the foreseeable future is 7.5%. The total
Fund and asset segment return expectations are as follows: Attachment number 1 \nPage 7 Item # 6
7 a. Total Fund Return Objectives The following minimum comparative objectives have been established for the total Fund: 1.The total fund should rank in the upper fiftieth (50th) percentile
compared to a recognized performance measure company’s total public plan sponsor database measured over a minimum period of three (3) or maximum five (5) years. 2.The Fund's overall
annualized total return should perform at least at the upper fiftieth (50th) percentile compared to investment style peers of similar type as found in recognized performance measurement
style database for each asset class segment. 3.The Fund's overall annualized total return (which is defined as all price changes plus all income and/or dividends) should exceed the actuarial
assumption over a rolling three (3) or maximum of five (5) year period. 4.The Fund's overall annualized total return should exceed the returns that would have collectively been achieved
if the Fund had been fully invested in the appropriate percentage of: -Standard & Poor's 500 Stock Index -Lehman Brothers Barclay’s Capital Aggregate Bond Index -Morgan Stanley Capital
International EAFE Index This is a custom benchmark that will be calculated relative to the actual collective asset class mix of the Fund measured over a minimum of three (3) or maximum
of five (5) years. b. Equity Segment Return Objectives The following minimum performance goals have been established for the Fund's domestic equity segment: 1.The domestic equity segment
total return should perform at least at the upper fiftieth (50th) percentile compared to a recognized performance measurement company’s total U.S. equity database measured over a minimum
period of three (3) or maximum of five (5) years. 2.The individual domestic equity managers total return should perform at least at the upper fifth (50th) percentile compared to investment
style peers of similar type as found in a recognized performance measure company’s Attachment number 1 \nPage 8 Item # 6
8 total U.S. equity database measured over a minimum period of three (3) or maximum of five (5) years. 3.The domestic equity segment total return should exceed the total return of the
Standard & Poor's 500 Stock Index by at least 100 basis points per year measured over a minimum period of three (3) or maximum of (5) years. c. International Equity Segment Return Objectives
The following minimum performance goals have been established for the Fund's international equity segment: 1. The international equity segment total return should perform at least at
the upper fiftieth (50th) percentile compared to recognized performance measure company’s total non U.S. equity database measured over a minimum period of three (3) or maximum of five
(5) years. 2.The individual international equity managers total return should perform at least at the upper fiftieth (50th) percentile compared to the investment style peers of similar
type as found in a recognized performance measure company’s total non U.S. equity database measured over a minimum period of three (3) or maximum of five (5) years. 3. The international
equity segment total return should exceed the total return of the Morgan Stanley Capital International Europe, Australia, Far East Index (EAFE) by at least 200 basis points per year
over a minimum of three (3) or maximum of five (5) years. d. Fixed Income Segment Return Objectives . The following minimum performance goals have been established for the Fund's domestic
fixed-income segment: 1. The domestic fixed-income segment total return should perform at least at the upper fiftieth (50th) percentile compared to the recognized performance measure
company’s total domestic fixed income database measured over a minimum period of three (3) or maximum of five (5) years. 2.The individual domestic fixed income managers total return
should perform at least at the upper fiftieth (50th) percentile compared to investment style peers of similar type as found in a recognized performance measure company’s total domestic
fixed income database measured over a minimum period of three (3) or maximum of five (5) years. Attachment number 1 \nPage 9 Item # 6
9 3. The domestic fixed income segment total returns should exceed the total return of the Barclays Aggregate Bond Index by at least 50 basis points per year measured over a minimum
period of three (3) or maximum of five (5) years. e. Real Estate Segment Return Objectives The following minimum performance goals have been established for the Fund’s Real Estate Segment:
1. The Real Estate segment total return should perform at least at the upper fiftieth (50th) percentile compared to recognized performance measurement database measured over a minimum
period of three (3) or maximum of five (5) years. 2. The Real Estate managers total return should perform at least at the upper fiftieth (50th) percentile compared to the investment
style peers of similar type as found in a recognized performance measurement company’s database measured over a minimum period of three (3) or maximum of five (5) years. 3. The Real
Estate managers total return should exceed the total return for comparable strategies of the Wilshire RESI Index over a minimum of three (3) or maximum of five (5) years. f. Alternative
Segment Return Objectives The following minimum performance goals have been established for the Fund’s alternative investment segment. 1. The Alternative total return should perform
at least at the upper fiftieth (50th) percentile compared to recognized performance measurement database measured over a minimum period of three (3) or maximum of five (5) years. 2.
The alternative manager’s total return should perform at least at the upper fiftieth (50th) percentile compared to the investment style peers of similar type as found in a recognized
performance measurement company’s database measured over a minimum period of three (3) or maximum of five (5) years. Attachment number 1 \nPage 10 Item # 6
10 3. The alternative manager’s total return should exceed the total return for comparable strategies of the Credit Suisse/Tremont Hedge Fund Index over a minimum of three (3) or maximum
of five (5) years. Criteria for Investment Manager Review Consistent under-performance of the stated target index over rolling 3-year periods. Loss by the Manager of any senior personnel
deemed detrimental to the Manager’s ability to perform required duties or any potentially detrimental organizational issues that may arise and have an effect on the management of the
Plan’s assets. Substantial change in basic investment philosophy by the Manager. Substantial change of ownership of the firm deemed detrimental to the Manager’s ability to perform the
required duties. Failure to observe any guidelines as stated in this policy. ROLES AND RESPONSIBILITIES Responsibilities of the Third Party Custodian A third party custodian will hold
all Fund assets other than commingled accounts. In order to maximize the Fund's return, no money should be allowed to remain idle. Dividends, interest, proceeds from sales, new contributions
and all other monies are to be invested or reinvested promptly. If funds are not reinvested, then they will be placed in money market instruments or a money market Fund immediately by
the designated cash manager working in concert with the custodian. The custodian will be responsible for performing the following functions: Accept daily instructions from the investment
managers; Advise investment managers daily of changes in cash equivalent balances; Immediately advise investment managers of additions or withdrawals from account; Dispositions of holdings;
Resolve any problems that investment managers may have relating to custodial account; Safekeeping of securities; Attachment number 1 \nPage 11 Item # 6
11 Interest and dividend collection; Daily cash sweep of idle principal and income cash balance; Process all investment manager transactions on a delivery vs. payment basis; Collect
proceeds from maturing securities; Provide monthly statements by investment manager account; All securities purchased by the Fund shall be properly designated as an asset of the Fund;
No withdrawal of securities, in whole or in part shall be made except by an authorized member of the committee or the committee’s designee. Responsibilities of Investment Managers The
duties and responsibilities of each of the registered investment advisors retained by the Fund include: Managing the assets under its management in accordance with the policy guidelines
and objectives expressed herein, or expressed in a separate written agreement when deviation is deemed prudent and desirable. Exercising full investment discretion within the guidelines
and objectives stated herein. Such discretion includes decisions to buy, hold or sell securities in amounts and proportions reflective of the manager's current investment strategy and
compatible with investment objectives. Promptly informing the Fund regarding all significant matters pertaining to the investment of the Fund assets, for example: a. changes in investment
strategy, portfolio structure and market value of managed assets; b. the manager's progress in meeting the investment objectives set forth in this document; and c. significant changes
in the ownership, affiliations, organizational structure, financial condition, professional personnel staffing and clientele of the investment management organizations. Attachment number
1 \nPage 12 Item # 6
12 No deviation from guidelines and objectives established in the Statement should occur until after such communication has occurred and the Fund has approved such deviation in writing.
The Fund formally delegates full authority to each investment manager for exercising all proxy and related actions of the Fund’s investment assets assigned to it. Each manager shall
promptly vote all proxies and related actions in a manner consistent with the long-term interests of the Fund and its Participants and Beneficiaries. Each investment manager shall keep
detailed records of all said voting of proxies and related actions and will comply with all regulatory obligations related thereto. The Fund shall periodically audit and review each
investment manager's policies and actions in this area. Each Investment Manager shall utilize the same due care, skill, prudence and diligence under the circumstances then prevailing
that experienced, investment professionals acting in a like capacity, as a fiduciary, and fully familiar with such matters would use in like activities for like Funds with like aims,
while maintaining appropriate diversification to avoid the risks of large losses, in accordance and compliance with all applicable laws, rules and regulations from local, state, federal
and international political entities as it pertains to fiduciary duties and responsibilities. Notifying the Fund of the filing of a lawsuit by a client against the manager alleging breach
of fiduciary duty or other willful conduct. EVALUATION AND REVIEW On a timely basis, but not less than four times a year, the Fund will review actual investment results achieved by each
manager (with a perspective toward a five-year time horizon) to determine whether: the investment managers performed in adherence to the investment philosophy and policy guidelines set
forth herein; and the investment managers performed satisfactorily when compared with: a. the objectives set forth in Appendix "A", as a primary consideration, b. their own previously
stated investment style, c. other investment managers, both in asset class and in style group, d. other retirement funds, Attachment number 1 \nPage 13 Item # 6
13 e. several different market indices. In addition to reviewing each investment manager's results, the Fund will re-evaluate, from time to time, its progress in achieving the total
Fund, equity, fixed-income, international, and cash and equivalents segment objectives previously outlined. The periodic re-evaluation also will involve an evaluation of the continued
appropriateness of: (1) the manager structure set forth in Appendix "A"; (2) the allocation of assets among the managers; and (3) the investment objectives for the Fund's assets. The
Fund may appoint investment consultants to assist in the on-going evaluation process. The consultants selected by the Fund are expected to be familiar with the investment practices of
other similar retirement plans and will be responsible for suggesting appropriate changes in the Fund's investment program over time. Filing of Investment Policy Upon adoption by the
trustees, the investment policy shall be promptly filed with the Department of Management Services, the City Clerk, and the consulting actuary. The effective date of changes to the Investment
policy will be 31 days after the filing date with the city. APPENDIX A: FUND SEGMENT AND INDIVIDUAL MANAGER GUIDELINES Attachment number 1 \nPage 14 Item # 6
14 CITY OF CLEARWATER EMPLOYEES PENSION FUND INVESTMENT STRUCTURE February 12, 2010 December 13, 2011 Target Investment Manager Allocation Domestic Equity Value Orientation 10% -30%
Domestic Equity Growth Orientation 10% -30% International Equity 10% -25% Domestic Fixed Income 30% -40% Real Estate 0% -15% Alternative Investments 0% -10% Attachment number 1 \nPage
15 Item # 6
15 APPENDIX A: FUND SEGMENT AND INDIVIDUAL MANAGER GUIDELINES 1. Manager Structure The Fund will retain investment managers that specialize in the use of particular asset classes. The
targeted distribution of Fund assets among specialist managers will be as illustrated on the previous page. The Fund believes that the established structure: is consistent with the practices
of other similar-sized retirement funds; and offers an appropriate "blend" of investment styles that will produce a sufficient level of diversification and investment return over time.
2. Cash Flow Allocation The allocation of assets is consistent with the Fund’s desire to diversify its investment management program. The Fund intends to review on a periodic basis the
allocation of assets among its investment managers. To the extent that it is practical, it is expected that any cash flow will be allocated to or taken from the managers in the same
proportions that each manager's assets represent to total Fund assets in the target asset allocation outlined previously. 3. Trustee Utilization Restrictions All domestic Fund assets,
in any form, shall be solely and exclusively: (a) settled at, (b) held in custody at, and (c) safe-kept only at custodians designated by the Fund at its sole discretion. International
Fund assets may be held in commingled accounts provided that all of the normal protection of the Fund’s assets is provided for. 4. Transaction Agent Assignment Restrictions Assignment
of specific brokerage firms, dealers, financial institutions, and other transaction execution agents to all investment managers shall be the sole responsibility of the Fund. From time
to time, the Fund at its sole discretion may specify certain transaction agents that investment transactions shall be executed through. 5. Short Selling and Related Restrictions There
shall be no: short selling, non-collateralized and/or non-delivered repurchase agreements, use of financial futures or options, non-marketable direct investments in equity or debt private
placements or lease-backs or any other specialized investment activity without the prior written consent of the Fund. Attachment number 1 \nPage 16 Item # 6
16 6. Liquidity and Marketability Restrictions Liquidity and marketability frequently are perceived to be a function of the quality and the market capitalization of each security holding.
From the Fund's perspective, liquidity and marketability also may be a function of a manager's aggregate holdings in a particular security. The Plan believes that an investment manager
should not buy or hold a security for the Fund’s portfolio if the aggregate holdings among all of that manager's other accounts in that same security would restrict the manager's ability
to expeditiously liquidate the position at any time. From a total Fund perspective, the Fund believes the collective holdings among all Fund managers’ accounts in that same security
would restrict all managers’ collective ability to expeditiously liquidate their respective positions in that same security. Therefore, the Fund retains the sole right to limit any manager's
holding of any security in the Fund at any time in order to prevent the potential for said Fund's collective liquidation and market risk. 7. Usage of Custodian STIF on all Idle Cash
Restrictions Any idle cash not invested by the investment managers shall be invested daily via an automatic sweep STIF managed by the Custodian or by others in behalf of each investment
manager. It is the Fund's objective to have no idle cash at any time in any manager's portfolios. 8. Usage of Cross Asset Segment Investment Guideline Restrictions When a manager's holdings
include Fund assets outside of their primary assigned asset segment assignment (e.g. a primary domestic equity manager also holds some cash equivalents or fixed income securities as
well as equities) the guidelines stated therein for the non primary asset segment shall fully apply to the manager, in addition to the primary asset assigned segment guidelines. 9. Diversification
Restrictions Except for criteria noted elsewhere in this Policy and in specific written contracts with each manager, the appropriate and reasonable diversification of securities by such
factors as geography, region, sovereign risk, native currency, quality, coupon, country risk, maturity, industry, duration, and sector is within the full discretion and responsibility
of the investment managers. 10. Other Objectives, Guidelines and Restrictions Forthcoming The Fund may develop additional objectives, guidelines and restrictions and may amend the Policy
from time to time. Attachment number 1 \nPage 17 Item # 6
17 11. Fund Segment Guidelines Following are guidelines and objectives established for the Fund segments and for each investment manager retained by the Fund. Individual manager guidelines
are designed to be consistent, in aggregate, with the total Fund asset allocation guidelines and investment objectives set forth in the Statement of Investment Objectives and Guidelines.
a. Domestic Equity Segment Each equity manager is expected to adhere to the following guidelines: Equity holdings in any one company (including common and preferred stock, convertible
securities and debt) should not exceed ten percent (10%) of the market value of the manager's portion of the Fund without the consent of the Fund. Equity holdings in any one industry
(as defined by Standard & Poor's) should not exceed fifty percent (50%) of the market value of the manager's portion of the Fund. Cash equivalents and fixed income positions should not
exceed twenty five percent (25%) of the manager's portfolio. A manager may invest in fixed income securities if projected returns on such securities are perceived to be competitive with
potential equity returns. However, fixed income securities will not represent more than twenty-five percent (25%) of a manager's portfolio without the prior written consent of the Fund.
No purchase shall be made by an investment manager that would cause a holding to exceed five percent (5%) of the issue outstanding. b. International Equity Segment Each international
equity manager is expected to adhere to the following minimum guidelines: Equity holdings in any one company and all of its subsidiaries and affiliates (including equities, convertible
securities and debt) should not exceed five percent (5%) of the market value of the manager's portion of the Fund portfolio without the prior written consent of the Fund. Equity holdings
in any one industry should not exceed fifty percent (50%) of the market value of the manager's portion of the Fund portfolio. Equity holdings in any one sector (e.g., consumer cyclical,
energy, technology, etc.) Attachment number 1 \nPage 18 Item # 6
18 should not exceed fifty percent (50%) of the market value of the manager's portfolio without the prior written consent of the Fund. Cash equivalents and fixed income positions should
not exceed fifty percent (50%) of the manager's portion of the Fund assets. A manager may invest in fixed income securities (i.e. securities with more than two years to maturity) if
projected returns on such securities are perceived to be competitive with potential equity returns. The manager may enter into foreign exchange contracts on currency provided that: (a)
such contracts have a maturity of one year or less, and (b) use of such contracts is limited solely and exclusively to hedging currency exposure existing within the manager's portfolio.
The intent is to dampen portfolio volatility and prevent currency loss. There shall be no direct foreign currency speculation or any related investment activity. The manager may purchase
or sell currency on a spot basis to accommodate specific securities settlements. c. Fixed Income Segment Each fixed income manager is expected to adhere to the following guidelines:
All Fixed Income Securities held in each portfolio should have a Moody's, or Standard & Poor's quality rating of no less than Investment Grade from any of these rating services. For
an issue which is split-rated, the lower quality designation will govern. Once a security falls below investment grade the money manager will notify the plan of the downgrade as soon
as practical. Included in that notification will be how the money manager will handle the below investment grade security. The diversification of securities by maturity, quality, sector,
coupon and geography is the responsibility of the manager. The exposure of each manager's portfolio to any single security other than a security backed by the full faith and credit of
the U.S. Government or any of its instrumentalities should be limited to five percent (5%) of the manager's portion of the Fund measured at market value. No purchase shall be made by
a Fixed Income Manager, which would cause a holding to exceed ten percent (10%) of the issue outstanding. Attachment number 1 \nPage 19 Item # 6
19 There shall be no use of options, financial futures, derivatives or other specialized investment activity without the prior written approval of the Fund. Not more than ten percent
(10%) of an investment manager's portfolio, valued at market, shall be invested in certificates of deposit, time deposits, bankers acceptances, commercial paper, or related investments
of a single issuer financial institution or financial institution holding company family. d. Real Estate Segment Each Real Estate manager is expected to adhere to the following guidelines:
REIT managers will limit holdings in any one company to fifteen percent (15%) of the market value of the manager’s fund, cash equivalents and positions in fixed income vehicles should
not exceed twenty five percent (25%) of the managers portfolio and no purchase shall be made that would cause a holding to exceed ten percent (10%) of the issues outstanding. Managers
of direct investments in real estate structured as limited partnerships, limited liability companies or separate accounts will operate strictly within conformance to the regulations
of their state of domicile and comply with any applicable federal or state security laws. Managers of direct investments in real estate may be income oriented or capital gains oriented
but in no event will the manager apply average leverage in excess of forty percent (40%) of the value of the total portfolio. Managers of direct investments in real estate shall seek
to diversify the portfolio in terms of geographic location, tenant usage, and lease schedules. Timberland managers shall maintain portfolios of geographically diversified stands of biological
tree growth with the potential for land value appreciation, alternative use and leasing potential, diversified product opportunities and long term land appreciation possibilities. e.
Alternative Investment Segment Academic research supports the use of alternative investments as a mechanism to potentially reduce the volatility and/or enhance the expected return of
an investment portfolio. However, the use of alternative investments can introduce unique types of risks due to their inherent structure and characteristics which include but are not
limited to: leverage, illiquidity, short sales, derivatives, and lack of transparency and regulation. In light of these unique risks, the Fund does Attachment number 1 \nPage 20 Item
# 6
20 not attempt to define or limit the manager’s discretion as to the use of financial instruments. The Fund will actively monitor the investment manager’s performance and activities
to limit exposure to these unique risks. f. Cash and Equivalents Segment Although investment managers will be retained for their expertise in a certain investment segment, it is expected
that from time-to-time each will have some cash and equivalents in their portfolios as a result of discretionary asset allocation decisions. Any idle cash not invested by the investment
managers shall be invested daily via an automatic sweep STIF managed by the custodian. It is the Fund's objective to have no idle cash at anytime in any manager's portfolio. . g. Pooled
Vehicles To the extent that the Fund invests a portion of the Fund’s assets in commingled vehicles or institutional mutual funds, then the investment guidelines of the fund's prospectus
will be adopted as this fund's guidelines. h. Master Repurchase Agreement The money managers and safekeeping custodian will use a master repurchase agreement whenever appropriate. All
repurchase agreements transactions shall adhere to the requirements of the master repurchase agreement. Attachment number 1 \nPage 21 Item # 6
21 12. Individual Manager Descriptions and Five-Year Expectations All expectations are minimums. All investment managers shall exceed the stated expectations. Investment Manager Percentile
Expectation Relative To Other Managers Percentile Expectation Relative To Style Peers Domestic Equity Specialist Manager Value Orientation 50th 50th Domestic Equity Specialist Manager
Growth Orientation 50th 50th International Equity Specialist Manager 50th 50th Domestic Fixed Income Specialist Manager Core Fixed Income Orientation 50th 50th Real Estate Specialist
Manager 50th 50th Alternatives Specialist Manager 50th 50th In addition, each domestic equity and fixed income manager is expected to achieve positive risk-adjusted (alpha) performance
over a three (3) or five (5) year period. Attachment number 1 \nPage 22 Item # 6
22 13. Reporting Requirements: a. Consultant Reporting The Pension Fund's Consultant will provide quarterly reports to the Pension Fund which, at a minimum, will review the following
information about each Investment Manager and the total Fund: Overview of the most recent quarter and year-to-date investment indicators Total Fund asset allocation Comparison of total
Fund return versus the customized benchmark Performance results by individual Manager and Total Fund compared to appropriate benchmarks. b. Investment Reporting: • On not less than an
annual basis the Trustees will receive a report showing a list of all of the securities held by investment manager. This report will be provided by the safekeeping custodians and shall
include the portfolio by class or type, book value, income earned, and market value as of the date of the report. This report will be filed with the City. c. Proxy Voting: • On not less
than a quarterly basis, money managers will report to the Plan their proxy voting during the last period. 14. Review of Policy This Statement of Investment Policy must be reviewed annually
by the Pension Investment Committee with a recommendation to revise or confirm to the Trustees. 15. Meeting Agenda At each meeting, the written and oral presentations shall cover the
following points: A report of performance for past periods. Standard time periods for each report will be last quarter, last year, year to date, latest twelve (12) months, two years,
three years, etc., and since inception and by calendar year. Returns should be annualized and calculated on a time-weighted basis for the total portfolio. All returns should include
price change plus income and/or dividends. Attachment number 1 \nPage 23 Item # 6
23 Discussion of the rationale for performance results by relating them specifically to investment strategy and tactical decisions implemented during the current review period. Discussion
of the investment manager's specific strategy for the portfolio over the next six to twelve months with specific reference to asset allocation and sector weighting, as appropriate. Supporting
discussion of the next period's strategy with reference to investment manager's capital market and economic assumptions, if applicable. Twelve (12) copies of the written summary should
be received by the Fund at least five (5) business days prior to the meeting. The Fund is interested in fostering an effective working relationship with its investment managers through
a discipline of good communication. The establishment of Objectives, Performance Standards, Policies and Guidelines, and Reporting Requirements is intended to provide the Fund with a
good foundation from which to understand specific management styles and strategies, evaluate results and oversee progress toward overall investment objectives. The Fund shall be using
a third party consultant selected, hired and directed by the Fund to: (1) assist in appraising performance, (2) to provide performance comparison data with other retirement plans, several
capital market indices, and to other investment managers, (3) assist in evaluating manager style discipline and peer comparisons, (4) assist in strategic Funding and management of the
Fund, and (5) other factors the Fund deems appropriate. Investment managers are required to support and assist the consultant with their fullest cooperation. Attachment number 1 \nPage
24 Item # 6
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Meeting Date:
12/13/2011
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve the new hires for acceptance into the Pension Plan as listed.
SUMMARY:
Pension
Name, Job. Class, & Dept./Div. Hire Date Elig. Date
Gordon McTaggart, Police Communication Oper./Police 3/27/10 9/24/11 *
Michael Andrews, Custodial Worker/Library 4/4/11 9/24/11 **
Priscilla Murphy, Accounting Clerk/Marine & Aviation 9/26/11 9/26/11
Thaaer Altalagani, Public Utilities Tech. I/Public Utilities 9/26/11 9/26/11
Raymond Kader, Field Service Rep./Customer Service 9/26/11 9/26/11
Elvin Carmona, Solid Waste Wkr/Solid Waste/Gen'l Ser. 9/26/11 9/26/11
Jennifer Shannon, Professional Engineer/Engineering 9/26/11 9/26/11
Carol Anding, WWTP Operator A/Public Utilities 5/31/03 10/10/11***
Annejolina Darsey, Police Aide/Police 2/27/10 10/8/11 ****
Shannon Kasparek, Police Officer/Police 10/10/11 10/10/11
Mercedes Bleattler, Librarian II/Library 10/10/11 10/10/11
Kelly Brinkman, Police Officer/Police 10/10/11 10/10/11
Jarrett Busa, Police Officer/Police 10/10/11 10/10/11
Lee Curtis, Police Officer/Police 10/10/11 10/10/11
Kurt Hentschel, Police Officer/Police 10/10/11 10/10/11
Christopher Kakalow, Police Officer/Police 10/10/11 10/10/11
Guy Tellier, Parks Service Technician I/Parks & Rec. 10/24/11 10/24/11
*resigned 8/15/11; rescinded resignation and pension eligible as of 9/24/11; hire date adjusted by days gone
**originally hired 4/4/11 as permanent part-time; made full-time and pension eligible as of 9/24/11
***originally employed 5/31/03; resigned 5/26/11; rescinded resignation, rehired, and pension eligible as of 10/10/11
****originally hired as part-time on 2/27/10; status changed to full-time and pension eligible as of 10/8/11
Review Approval:
Cover Memo
Item # 2
Meeting Date:
12/13/2011
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve the request of employee Manuel Pe, Public Utilities Department; Ted Dorman, Gas Department; Anthony Fanelli, Solid
Waste/General Services Department; John Oswald, Gas Department, and James Stephens, Public Utilities Department, for a regular
pension as provided by Sections 2.397 and 2.398 of the Employees Pension Plan.
SUMMARY:
Manuel Pe, Senior Utilities Chemist, Public Utilities Department
, was employed by the City on February 25, 1991, and his pension
service credit is effective on that date. His pension will be effective November 1, 2011.
Based on an average salary of approximately $59,084 per year over the past five years, the formula for computing regular pensions, and
Mr. Pes selection of the 100% Joint & Survivor Annuity, this pension will approximate $32,8845 annually.
Ted Dorman, Gas Technician II, Gas Department
, was employed by the City on June 2, 1986, and his pension service credit is
effective on that date. His pension will be effective November 1, 2011.
Based on an average salary of approximately $44,681 per year over the past five years, the formula for computing regular pensions, and
Mr. Dormans selection of the Joint & Survivor Annuity, this pension will approximate $31,217 annually.
Anthony Fanelli, Welder, General Services/Solid Waste 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 February 1, 2012.
Based on an average salary of approximately $45,594 per year over the past five years, the formula for computing regular pensions, and
Mr. Fanellis selection of the Joint & Survivor Annuity, this pension will approximate $26,296 annually.
John Oswald, Gas Technician III, Gas Department
, was employed by the City on November 11, 1974, and his pension service credit
is effective on December 7, 1987. His pension will be effective January 1, 2012.
Based on an average salary of approximately $49,282 per year over the past five years, the formula for computing regular pensions, and
Mr. Oswalds selection of the 100% Joint & Survivor Annuity, this pension will approximate $32,363 annually.
James Stephens, Public Services Trainer, Public Utilities Department
, was employed by the City on December 22, 1980, and his
pension service credit is effective on February 8, 1982. His pension will be effective March 1, 2012.
Based on an average salary of approximately $53,004 per year over the past five years, the formula for computing regular pensions, and
Mr. Stephens selection of the 100% Joint & Survivor Annuity, this pension will approximate $43,037 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. Mr. Pe, Mr.
Dorman, Mr. Fanelli, and Mr. Oswald qualify under the age 55 and 20 years of service criteria. Mr. Stephens qualifies under the 30
years of service criteria.
Review Approval:
Cover Memo
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Meeting Date:
12/13/2011
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve the termination of Wellington Management as an emerging markets money manager for the pension plan; approve the transfer
of the terminated manager funds to Eaton Vance, the plans other emerging markets money manager; and approve a new target range of
5% to 8% for emerging market securities.
SUMMARY:
Approve the termination of Wellington Management as an emerging markets money manager for the pension plan; approve the transfer
of the terminated manager funds to Eaton Vance, the plans other emerging markets money manager; and approve a new target range of
5% to 8% for emerging market securities.
The Pension Investment Committee is recommending the termination of Wellington Management on the basis of poor performance. The
emerging market performance results as of September 30, 2011, are as follows:
9/30/11
9/30/11 YTD 2010 2009
The Pension Investment Policy has a range for total international investments (including emerging markets) of 10% to 25%.
The Pension Investment Committee and Cap Trust, the plans performance measurement consultant, concur that a 3% allocation to
emerging markets could be increased to take advantage of current market conditions, without adding significant risk to the plan. A
target allocation range of 5% to 8% is recommended.
If approved, the plan assets will be reallocated during the normal rebalancing process so that the pension plan investment portfolio will
have no less that 5%, or more than 8%, exposure to emerging markets.
Cap Trust and staff are available to answer any questions the Trustees have.
Review Approval:
1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk
Cover Memo
Item # 4
Meeting Date:
12/13/2011
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve contracts with the law firms of Kessler Topaz Melzer and Cheek, LLP and Saxena White P.A. to provide monitoring of
securities in the pension plan investment portfolio in connection with claims for damages against such persons, entities, companies or
associations who may be liable for damages suffered by the pension plan, at no cost to the plan and authorize the appropriate officials to
execute same.
SUMMARY:
The plans custodian, Northern Trust, and city staff currently monitor the portfolio for claims for damages and process
related claim forms. The pension plans attorneys, Klausner, Kaufman, Jensen and Levinson, have recommended that
the plan hire legal firms that specialize in this area.
Cap Trust, the plan's performance measurement consultant, and the City issued a Request for Qualifications (RFQ) for
pension monitoring services. Bases on the responses to the RFQ the following three firms were chosen for interviews:
Kessler Topaz Melzer and Cheek, LLP
Saxena White P.A.
Pomerantz Haudek Grossman and Gross LLP
The Pension Investment Committee is recommending the plan hire Kessler Topaz Melzer and Cheek, LLP, to be the
primary claims processer as well as provide portfolio monitoring services. The Pension Investment Committee also
recommends that Saxena White P.A. be hired to provide portfolio monitoring. It is very common for pension plans to
have multiple law firms in this role. Both of the firms think very highly of each other and believe two firms working on
portfolio monitoring is in the plan's best interests.
Both of the legal firms provide this service at no cost to the plan. During the course of monitoring the portfolio, if
either of the firms decides a situation warrants legal action they will bring that recommendation to staff. If staff feels a
situation warrants legal action, a separate written retainer will be negotiated with the law firm based on the particular
facts in the case in question. This will then be brought to the Pension Trustees for their approval. The plan will incur
no cost without the prior approval of the Trustees.
Type:
Other
Current Year Budget?:Budget Adjustment:
NoneNone
Budget Adjustment Comments:
Current Year Cost:Annual Operating Cost:
Not to Exceed:Total Cost:
For Fiscal Year:
to
Cover Memo
Review Approval:
1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk
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Meeting Date:
12/13/2011
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve changes to the City of Clearwater Employees Pension Plan investment policy to add real estate as a separate category under
Authorized Investments; to update investment benchmark names; and to make grammatical corrections and other minor changes to
make the policy easier to understand.
SUMMARY:
The Pension Plan Investment Policy requires an annual review of the policy by the Pension Investment Committee,
with a recommendation to revise or confirm to the Pension Trustees.
The most significant change to the policy per the annual review is the addition of Real Estate as a separate asset class
under Authorized Investments. Previously real estate was allowed under alternative Investments.
The names of two performance benchmarks have been updated. The Lehman Brothers Aggregate Bond Index has been
renamed to the Barclays Capital Aggregate Index. The Morgan Stanley International EAFE Index has been renamed
to the MSCI EAFE Index.
Additions have been highlighted in yellow and deletions are marked as a strike through.
Grammatical changes and changes to make the document easier to understand have also been made.
Review Approval:
1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk
Cover Memo
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