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09/13/2012 PENSION ADVISORY COMMITTEE MEETING MINUTES CITY OF CLEARWATER September 13, 2012 Present: Vice-Chair Tom Jensen, Committee Member/Councilmember Paul Gibson, Committee Member Brian DeWitt, Committee Member/Councilmember Bill Jonson, Committee Member Daniel Slaughter, and Committee Member/Councilmember Doreen Hock-DiPolito Absent: Chair Nathan Hightower, Also present: Joe Roseto – Human Resources Director, Patricia O. Sullivan - Board Reporter 1. Call to Order The Vice-Chair called the meeting to order at 9:00 a.m. 2. Approval of Minutes 2.1 Approve minutes of the July 12, 2012 and August 9, 2012 Pension Advisory Committee meeting as submitted in written summation. Member Jonson moved to approve the minutes of the July 12, 2012 Pension Advisory Committee meeting as submitted in written summation. The motion was duly seconded and carried unanimously. Member DeWitt moved to approve the minutes of the August 9, 2012 Pension Advisory Committee meeting as submitted in written summation. The motion was duly seconded and carried unanimously. 3. Employees to be Heard: None 4. Review and Action on Employee Requests for Regular Pension 4.1 Ratify and confirm the recommendation for the approval of the request of employees George Miller of the Solid Waste Department and Peter Rullo of the Public Utilities Department for a regular pension as provided by Sections 2.397 and 2.398 of the Employees Pension Plan as discussed during the August 9, 2012 PAC meeting. George Miller, Solid Waste Equipment Operator, Solid Waste Department, was employed by the City on August 20, 1980, and his pension service credit is Pension Advisory 9/13/2012 1 effective on that date. His pension will be effective August 1, 2012. Based on an average salary of approximately $47,076.73 per year over the past five years, the formula for computing regular pensions, and Mr. Miller’s selection of the 100% Joint and Survivor Annuity, this pension will approximate $40,185.84 annually. Peter Rullo, Industrial Pretreatment Technician, Public Utilities Department, was employed by the City on July 24, 1989, and his pension service credit is effective on that date. His pension will be effective September 1, 2012. Based on an average salary of approximately $51,692.14 per year over the past five years, the formula for computing regular pension and Mr. Rullo’s selection of the Joint and Survivor Annuity, this pension will approximate $32,813.73 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. Miller qualifies under the thirty years of service criteria and Mr. Rullo qualifies under the age 55 and 20 years of service criteria. Member DeWitt moved to approve Item 4.1. The motion was duly seconded and carried unanimously. 4.2 Recommend approval of the request of employees Cecil Rhodes of the Library/Central Services Department and Frederick Broda of the Engineering/Parking System Department for a regular pension as provided by Sections 2.397 and 2.398 of the Employees Pension Plan. Cecil Rhodes, Library Assistant, Library/Central Services Department was employed by the City on August 5, 1982, and her pension service credit is effective on that date. Her pension will be effective September 1, 2012. Based on an average salary of approximately $33,354.75 per year over the past five years, the formula for computing regular pensions, and Ms. Rhodes’ selection of the 100% Joint and Survivor Annuity, this pension will approximate $27,566.04 annually. Frederick Broda, Parking Technician, Engineering/Parking System Department was employed by the City on October 7, 2002, and his pension service credit is effective on that date. His pension will be effective November 1, 2012. Based on an average salary of approximately $30,343.82 per year over the past five years, the formula for computing regular pension and Mr. Broda’s selection of the 75% Joint and Survivor Annuity, this pension will approximate $8,356.08 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 Pension Advisory 9/13/2012 2 twenty years of credited service, or has reached age 65 and completed ten years of credited service. Ms. Rhodes qualifies under the thirty years of service criteria and Mr. Broda qualifies under the age 65 and 10 years of service criteria. Member Jonson moved to approve of Item 4.2. The motion was duly seconded and carried unanimously. 5. Review and Action on Employee Requests to Vest Pensions 5.1 Recommend approval of the request of employee Walter Miksza of the Gas Systems Department; Roberto Felici of the Police Department; Harry Maisel III of the Police Department; and Douglas Swartz of the Fire Department to vest their pension as provided by Section 2.397 of the Employees Pension Plan. Walter Miksza, Gas Specialist, Gas Systems Department, was employed by the City on September 14, 1987, and began participating in the Pension Plan on that date. Mr. Miksza terminated from City employment on December 28, 2012. Roberto Felici, Police Sergeant, Police Department, was employed by the City on March 7, 1994, and began participating in the Pension Plan on that date. Mr. Felici terminated from City employment on August 16, 2012. Harry Maisel III, Police Communication Operator, Police Department, was employed by the City on March 31, 1986, and began participating in the Pension Plan on that date. Mr. Maisel terminated from City employment on August 7, 2012. Douglas Swartz, Fire Assistant Chief, Fire Department, was employed by the City on September 24, 2001, and began participating in the Pension Plan on that date. Mr. Swartz terminated from City employment on September, 7, 2012. The Employees’ Pension Plan provides that should an employee cease to be an employee of the City of Clearwater or change status from full-time to part-time after completing ten or more years of creditable service (pension participation), such employee shall acquire a vested interest in the retirement benefits. Vested pension payments commence on the first of the month following the month in which the employee normally would have been eligible for retirement. Section 2.397 provides for normal retirement eligibility when a participant has reached age 55 and completed twenty years of credited service, has completed 30 years of credited service, or has reached age 65 and completed ten years of credited service. Mr. Miksza would have completed at least 20 years of service and will reach age 55 on June 12, 2013. His pension will be effective July 1, 2013. Mr. Maisel III would have completed at least 20 years of service and will Pension Advisory 9/13/2012 3 reach age 55 on March 28, 2016. His pension will be effective April 1, 2016. Section 2.397 also provides for normal retirement eligibility when a participant has completed twenty years of credited service in a type of employment described as “hazardous duty” and further specifically defines service as a Police Officer as meeting the hazardous duty criteria. Mr. Felici would have completed at least 20 years of service on March 7, 2014. His pension will be effective April 1, 2014. Mr. Swartz would have completed at least 20 years of service on September 24, 2021. His pension will be effective October 1, 2021. Member Slaughter moved to approve Item 5.1. The motion was duly seconded and carried unanimously. 6. Approval of New Hires as Plan Members: 6.1 Ratify and confirm the recommendation for approval of the new hires for acceptance into the pension plan as listed and discussed during the August 9, 2012 PAC meeting. Name, Job. Class, & Dept./Div Hire Date Elig. Date Ellen Walton, Library Assistant, Library 02/14/2012 06/30/2012* Benjamin Carter, Park Ser Tech I, Parks and Rec 07/02/2012 07/02/2012 Amy Anton, Legal Staff Assistant, Legal Dept 07/02/2012 07/02/2012 Rachel Robledo, Librarian II, Library 07/02/2012 07/02/2012 Carl Allison, WWTP Operator, Public Utilities 07/14/2012 07/14/2012 Paul Mac, Electronic Technician, Public Utilities 07/16/2012 07/16/2012 Katherine Fernandez, Police Info Tech, Police Depart 07/16/2012 07/16/2012 Malik Salam, Public Utilities Technician, Public Utilities 07/16/2012 07/16/2012 *Originally hired as part-time on 02/14/2012; transferred to full-time and pension eligible as of 06/30/2012. Member DeWitt moved to approve Item 6.1. The motion was duly seconded and carried unanimously. 6.2 Recommend approval of the new hires for acceptance into the pension plan as listed. Name, Job. Class, and Dept./Div Hire Date Elig. Date Raymond Hill, Field Service Rep, Customer Service 07/30/2012 07/30/2012 Pension Advisory 9/13/2012 4 Steven Pierucci, Solid Waste Equip Oper, Solid Waste 07/30/2012 07/30/2012 Ben Brubaker, Rec Leader, Parks and Recreation 07/30/2012 07/30/2012 Jermaine Floyd, Solid Waste Equip Oper, Solid Waste 07/30/2012 07/30/2012 Terrell Smith, Solid Waste Equip Oper, Solid Waste 07/30/2012 07/30/2012 Ronald Gemsheim, Asst Chief Health Safety, Fire Dept 08/13/2012 08/13/2012 Ronald Neuberger, Fire Inspector II, Fire Department 08/13/2012 08/13/2012 Sandra McFarlin, Acct Clerk, General Services Dept 08/13/2012 08/13/2012 Christopher Fischer, Survey Assistant, Engineering Dpt 08/13/2012 08/13/2012 Jacques Dixon, Parks Sts and Sidewlks, P and R Dept 08/13/2012 08/13/2012 Sheryl Crutchfield, Rec Sup I, Parks and Rec Dept 08/13/2012 08/13/2012 James Herberson, SW Equip Oper, Solid Waste Dept 08/13/2012 08/13/2012 Alexander Swatzell, SW Worker, Solid Waste Dept 08/13/2012 08/13/2012 Peter Szinger, SW Equip Operator, Solid Waste Dept 08/13/2012 08/13/2012 Member Jonson moved to approve Item 6.2. The motion was duly seconded and carried unanimously. 7. Pending/New Business 7.1 Set hearing date for Kelly O'Brien's non-job connected disability application Human Resources Director Joe Roseto said he had forwarded to members documentation and medical records regarding Kelly O’Brien’s non-job connected disability application; records indicate Ms. O’Brien is permanently disabled. Mr. Roseto said the Pension Attorney had reviewed the correspondence and opined that an IME (Independent Medical Exam) and interrogatories were not necessary as documentation is sufficient to verify Ms. O’Brien’s disability. Member Gibson moved to accept into evidence the entire file, inclusive of the personnel file, documentation, and medical records which serve in place of an IME and interrogatories. The motion was duly seconded and carried unanimously. Mr. Roseto reviewed requirements of the Code and stated none of the listed exclusions applies. Ms. O’Brien’s disability renders her unable to perform any useful, meaningful, and necessary work for the City. Member Slaughter moved that Kelly O’Brien is disabled due to a non-job-connected sickness or injury, such disability is likely to be continuous and permanent from a cause other than those listed as general disability exclusions, and such disability renders the participant unable to perform any useful, meaningful, and necessary work for the employer in an available position for which the participant is reasonably qualified or for which the participant may be reasonably trained to perform. The motion was duly seconded and carried unanimously. Pension Advisory 9/13/2012 5 8. Director's Reports Mr. Roseto reviewed City efforts to publicize proposed changes to the Pension Plan, slated for referendum in November. Mailers will be sent prior to the end of September. Referendum information is available on the City's website. An information telephone number will be available for citizen questions. 9. Committee Members to be Heard Members thanked retiring employees for their service to the City and its residents. Member DeWitt thanked Kelly O'Brien for her service to the Police Department, stating she will be missed. Member Jonson said he will attend the FPPTA (Florida Public Pension Trustees Association) conference in October. He recommended that staff issue a brief statement at October's meeting regarding mandated GASB (Governmental Accounting Standards Board) changes. Member Jensen encouraged members to attend pension training classes. Mr. Roseto said funds are budgeted for training. 10. Adjourn The meeting adjourned at 9:15 a.m. ') 62,dR/ Chair Attes,1101r Pension Advisory ommittee ,__ :oard Repo '- Pension Advisory 9/13/2012