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08/13/20121. Call to Order PENSION TRUSTEES AGENDA Location: Council Chambers - City Hall Date: 8/13/2012- 1:00 PM 2. Approval of Minutes 2.1 Approve the minutes of the July 16, 2012 Pension Trustees meeting as submitted in written summation by the City Clerk. � Attachments 3. Pension Trustee Items 3.1 Approve the request of the new hires for acceptance into the pension plan as listed. 6� Attachments 3.2 Approve the request of employees Steve Bocho of the Solid Waste/General Services Department; Lawrence G. Gallop of the Engineering Department; Gordon Jerrell of the Gas Department and Russell Carter of the Parks and Recreation Department for a regular pension as provided by Sections 2.397 of the Employees' Pension Plan. 6� Attachments 3.3 Approve the request of employee Douglas Pulver, General Services to vest his pension as provided by Section 2.397 of the Employees' Pension Plan. 6� Attachments 3.4 Approve agreement with Gabriel Roeder Smith and Company, current plan actuary, for completion of a comprehensive experience study related to actuarial assumptions and methods, for a not-to-exceed amount of $25,000, and authorize the appropriate officials to execute same. 6�= Attachments 3.5 Determine that hazardous duty contract employees are eligible for participation in the City of Clearwater Employee Pension Plan and direct they be enrolled in the plan. � Attachments 4. Other Business 5. Adjourn Pension Trustees Agenda Council Chambers - City Hall Meeting Date:8/13/2012 SUBJECT / RECOMMENDATION: Approve the minutes of the July 16, 2012 Pension Trustees meeting as submitted in written summation by the City Clerk. SUMMARY: Review Approval: Cover Memo ��11�:�) Attachment number 1 \nPage 1 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES CITY OF CLEARWATER 1 � � � Present: Chair/Trustee George N. Cretekos, Trustee Doreen Hock�[�iPolito, Trustee Paul Gibson, Trustee Bill Jonson, and Trustee Jay Rolgla� Also Present: William B. Horne II - City Manager, Jill S. Silverboard - Ass Manager, Rod Irwin - Assistant City Manager; Parnela K.,A Attorney, Rosemarie Call - City Clerk, and Nicale Sprague Records and Legislative Services Coordinator. Unapproved To provide continuity for research, ite necessarily discussed in that order. 1. Call to Order — Chair The meeting was cal 2. Approval of N 2.1 Aaarove the m r at 1 the June 1$, 2012 Pension Trustees meetinq as Trustee Bill Jonson mQVed to approve the minutes of the June 18, 2012 Pension Trustees meeting as suk�rnitted in written summation by the City Clerk. The motion w�as duly seconded an�l carried unanimously. 3. Pension Trust�;es Items 3.1 A�proue the request of new hires for acceptance into the Pension Plan as listed. Name. Job. Class. & Dept./Div . Pension Hire Date Eliq. Date Holly Quick, Police Info Technician/Police Dept. 05/07/12 Sotirios Kambourolias, Engineering Tech/Gas Dept 05/07/12 Pension Trustees 2012-07-16 05/07/12 05/07/12 Item # 1 1 Colleen Hanko, Police Communication Operator/Police Frances Leong, Economic Dev Specialist/Economic Dev Scott Burrows, Police Communication Operator/Police Renata Thomas, Police Communication Operator/Police Michael Bostaph, Heavy Equipment Op./Public Utilities Christopher Williams, Police Comm Operator/Police Maria Rosero, Custodian, Parks and Recreation Dept Sean Maxfield, Custodian, Parks and Recreation Dept Barbara Johnson, Dev Review Tech I, Planning and Deu *Employee was originally hired as a part time emplo full time employee and pension eligible on 05/07/12. Trustee Doreen Hock-DiPolito moved to approve the requ acceptance into the Pension Plan as listed. The motion w carried unanimously. 3.2 Approve the request of em Raymond Talbot of the Public Development Department; Vic Forrest Draxten of the Parks a Parks and Recreation �epartr� �eruic�s Department, for � rec pf the'EmalQVe�:s' Pension Rl,� Eil�en Karner of th�' D�:partment; K��r�n �l en�ac�rt of the Hurnan and Georae Puopolo of 05/07/12 05/07/12 05/07/12 05/07/12 05/07/12 Attachment number 1 \nPage 2 05/07/12 05/07/12 05/07/12 05/07/12 05/07/12 05/07/12 05/07/12 03/12/12 05/07/12 * 05/19/12 05/19/12 �a/21/12 Q5/21/12 3/12/12_ Chang�:� to �f r�ew hires for luly sec�nded and ice Departm�nt; c�r of the Plannincl and sc�urces Department: fard Burke of the : Solid Waste/General Eileen Karner, RQ1ice Informatic�n Technician II, Police Department, was employed by the City on April 9; 2041, and her pension service credit is effective on that date. Her pension will be efFective August 1, 2012. Based on an average salary of approximat�:ly $29,598.59 per year over the past five years, the formula for computing regular pensions, and Ms. Karner's selection of the 100% Joint and Survivor Annuity, this pension will approximate $8954.00 annually. Raymond Talbc�t, Water Distribution Operator, Public Utilities Department, was ernployed by th� City on October 14, 1985, and his pension service credit is effectiue on that date. His pension will be effective October 1, 2012. Based on an:av�:rage salary of approximately $44,742.01 per year over the past five years, the formula for computing regular pensions, and Mr. Talbot's selection of the Joint and Survivor Annuity, this pension will approximate $33,101 annually. Kevin, Tucker, Building Construction Inspector, Planning and Development Department, was employed by the City on April 18, 1983, and his pension service credit is effective on that date. His pension will be effective September 1, Item # 1 Pension Trustees 2012-07-16 2 Attachment number 1 \nPage 3 2012. Based on an average salary of approximately $54,371.18 per year over the past five years, the formula for computing regular pensions, and Mr. Tucker's selection of the Joint and Survivor Annuity, this pension will approximate $43,913 annually. Vickie Davenport , Human Resources Technician, Human Resources Department, as employed by the City on May 15, 1989, and her pension service credit is effective on June 17, 1991. Her pension will be effecti�e Jun�; 1, 2012. Based on an average salary of approximately $45,878.2Q per year ca�er fihe past five years, he formula for computing regular pensions, and Ms. DavenpQrt's selection of the Joint and Survivor Annuity, this pension wi11 approximafie $26,43 annually. Forrest Draxten, Equipment Operator, Parks and Recreatic�n Department, was employed by the City on August 10, 1992, and his pension seruice:credit is effective on that date. His pension will be effective September 1; 20`l2. Based on an average salary of approximately $37,706.8� per year over the �a�st five years, the formula for computing regular pensions, and Mr. praxten's selectic�n of the 50% Joint and Survivor Annuity, this pensi�n will apprQ�imate $19,94$ a�nually, Edward Burke, Parks Service Superuasor I, Parks and R�c was employed by the City on April 28; 19�6, and ;his pensi effective on that date. His`pension will be effectiue July 1, ; average salary of approximately $50,548.22 per year over formula for computing r�gular pensions, ancl Mr. Burke's s George PuQpolQ#�; Department, was credit is effective � Based on an aver five years, the fon selection of the 1( $48,745 annually. n �sed on an t fiive years, the of the 100% .y, ihis pension will, ap�aroximate $35,586 annually. /as#e Supervisor II, Sc�licl Waste/General Services ed by the City on July 12, 1982, and his pension service date: His pension will be effective August 1, 2012. ary of approximately $60,723.24 per year over the past r computin�_regular pensions, and Mr. Puopolo's int and Survivor Annuity, this pension will approximate Section 2.397 prc�vides for normal retirement eligibility when a participant has cQmpleted tharky years of credited service, has reached age 55 and completed tw�nty years af credited service, or has reached age 65 and completed ten years of credited service. Ms. Karner qualifies under the age 65 and 10 years of sel�ice criteria. Mr. Talbot, Mr. Tucker, Ms. Davenport, Mr. Draxten and Mr. Burke qualify under the age 55 and twenty years of service criteria. Mr. Puopolo qualifies under the thirty years of service criteria. Trustee Jay Polglaze moved to approve the request of employee Eileen Karner of the Police Department; Raymond Talbot of the Public Utilities Department; Item # 1 Pension Trustees 2012-07-16 3 Attachment number 1 \nPage 4 Kevin Tucker of the Planning and Development Department; Vickie Davenport of the Human Resources Department; Forrest Draxten of the Parks and Recreation Department; Edward Burke of the Parks and Recreation Department; and George Puopolo of the Solid Waste/General Services Department, for a regular pension as provided by Sections 2.397 and 2.398 of the Employees' Pension Plan. The motion was duly seconded and carried unanimously. 4. Other Business — None. �.. The meeting was adjourned at 1:14 p.m. Attest City Clerk Pension Trustees 2012-07-16 Item # 1 4 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the request of the new hires for acceptance into the pension plan as listed. SUMMARY: Name, Job. Class, & Dept./Div. Hire Date Kevin Salzer, Planner IIUPlanning and Development Dept. 06/04/12 Andrew McCarmick, Public Utilities Technician/PU Dept. 06/18/12 Chad Paukert, Parks Service Tech UParks and Rec Dept. 06/18/12 Darla Ismail, Police Comm Oper Trainee/Police Dept. Christopher Dahmer, Police Comm Oper Trainee/PD Roger Beatty, Engineer Specialist,Bngineering Dept. Gina Trieste, HR Analyst/Human Resources Dept. Review Approval: 06/18/12 06/18/12 06/18/12 06/18/12 Pension Eli�. Date 06/04/ 12 06/18/12 06/18/12 06/18/12 06/18/12 06/ 18/ 12 06/18/12 Meeting Date:8/13/2012 Cover Memo Item # 2 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Meeting Date:8/13/2012 Approve the request of employees Steve Bocho of the Solid Waste/General Services Department; Lawrence G. Gallop of the Engineering Department; Gordon Jerrell of the Gas Department and Russell Carter of the Parks and Recreation Department for a regular pension as provided by Sections 2397 of the Employees' Pension Plan. SUMMARY: Steve Bochno, Administrative Analyst, General Services, was employed by the City on January 28, 1991, and his pension service credit is effective on that date. His pension will be effective July 1, 2012. Based on an average salary of approximately $49,377.05 per year over the past five years, the formula for computing regular pensions, and Mr. Bochno's selection of the 100% Joint and Survivor Annuity, this pension will approximate $28,22532 annually. Lawrence G. Gallop, Survey Assistant II, Engineering Department, was employed by the City on Apri123, 1984, and his pension service credit is effective on that date. His pension will be effective August 1, 2012. Based on an average salary of approximately $39,109.50 per year over the past five years, the formula for computing regular pensions, and Mr. Gallop's selection of the Joint and Survivor Annuity, this pension will approximate $30,332.40 annually. Gordon Jerrell, Service Dispatcher, Gas Department, was employed by the City on September 11, 1980, and his pension service credit is effective 7/13/1992. His pension will be effective August 1, 2012. Based on an average salary of approximately $37,972.61 per year over the past five years, the formula for computing regular pensions, and Mr. Jerrell's selection of the Joint and Survivor Annuity, this pension will approximate $20,884.92 annually. Russell Carter, Athletic Field Coordinator, Parks and Recreation Department, was employed by the City on December 21, 1987, and his pension service credit is effective on that date. His pension will be effective October 1, 2012. Based on an average salary of approximately $59,818.14 per year over the past five years, the formula for computing regular pensions, and Mr. Carter's selection of the 100% Joint and Survivor Annuity, this pension will approximate $39,866.88 annually. Section 2397 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. Bochno Mr. Gallop, Mr. Jerrell, and Mr. Carter qualify under the age 55 and 20 years of service criteria. Review Approval: Cover Memo ��11�:�� A#tachment number 1\nPage 1 of 2 �/�� �F �L�ARI/xl`ATER EMPL O YEES' SEPAR.4 T!OlV PA Y PREFERENCES PREFERENCE #� Employees can receive a lump sum payment for vacation, floating holiday pay, sick leave incentive, bonus days (if applicabfe}, 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 wiil this amount count as earnings in the calculation of the pension. The last day of work will be the termination date and pension benefirts wili begin the r'ollowing month. PREFERENGE #2 Empfoyee can extenc! termination date by part or a!1 of the time due for --- ----i vacation, oa �ng o i ay pay, s�c .–leave incen ive, onus ays � apprica e, --"- and 1/2 of accrued sick leave. Ernpioyee may choose to run out this time in any manner. Balance wili 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. - �ti--:- � C�RDo�/ �����'L , an empioyee of the Ciiy oi Ciearwaier, hereby aapiy ior pension benefits under the City's Employees' Pension Plan. I hereby certify that f fully understand the preferences offerE:d ta me. I choose to retire using separation pay preference #�- and wish my benefits to be calc:ulated under this preference. Please use my leave in the following manner: Run Out Lump Sum vacation � vacation �� �� 7SS 7Z sick — floaters x sick � floaters 7�D-''° `� Ot� �- bonus hours �Z� bonus hours I understand tnat my preference cannot be changed once this form is signed and that my decision is irrevocable. ESSES: � Revised 1i02 rorm R9900-0008 EMD1 nvFF'S SIGNATURE: SOC;IAL StCURIT'Y #F: � � ��� ��� ADDRESS: �r —" �'�'�°��/�✓� ��lJ�� lr PHONE��7��'4��0 ✓ b_�— DATE: �.,�—'2�°,�C'�l.Z Fifz tVame: Employee Seoaration Pay Pref Item # 3 CITY OF CLEARWATER PENSION ENTITLEMENT OPTION REQUEST FORM i, �oie�p�J ���e-Jee[.�, _ do hereby apply for retirement under the City af Clearwater General Employees' Pension Plan. Job Classification: ��`t.'��� ��5�{��� Sex:OM F Department: �gS Division: -I�i3��rG�/ Benefits Date: -/ -�1�__ Date of Hire: `�-//-/�y�d Date of Birth: -�� f��,� Resignation Date: -7-/ 3-�ia Spouse's Name: Spouse's Date of Birth: 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 Sex: M F 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 Annuitv 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 hislher 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 8� 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 8� 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)J Item # 3 Option 6-100% Joint 8� Survivor Annuitv -(must designate a beneficiary} The Participant receives hislher pension as long as he/she lives. !f 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.) 1 understand that once my first pension check is received, my decision on this option is irrevocable. If taking Option 1 siqn below: Option #: 1 Description: _ Joint and Survivor Annuitv Employee's Signature: , Date: � %C'�l� Dependent children under the age of 18 and residing in my household are: Child's Name Sex Date of Birth If taking O�tion 2 sign below: Option #: 2 Employee's Signature: If taking O Option #: _ Description: Life Annuitv _ or 6 fill in benefic My designated beneficiary is: Name: Social Security Number: Address: Employee's Signature: Description: information and Date of Birth: Date: gn below: Sex M F Phone Number: _ Date: STATE OF FLORIDA The foregoing instrument was acknowledged before me this COUNTY OF PINELLAS `� 0��. n�/a b C/'�tJyt `J !'?� �� y _ � �' who is personally known to me or who has provided �L �L -� �� ��? -��.3-,-J�f - MICF�ELLE KUTCH NOTARY PllBLIC sTn� oF �.oR�oA . Cdnm# EE201501 � srzsrzo�s Rev. 4/08 Form #9900-0009 as identification and who did/did not take an oath. �y.3-� , .e�-� Notary Public ( �gnature) l7%cl�?.��� ���-��� Name of Notary Printed My Commission expires: J`��Z��Z{�/lo File Name: Pension Entitlement Option Form Item # 3 City of Ciearwater Employees' Pension Plan Actuarial Equivalence Factors ESTIMATE - Rttachmenf number 1\nPage 4 of 2 26-Jun-12 sm clract01 Version: Employee Name: Gordon Jerrell 1-4-96 Employee Date of Birth: 12 3 1951 Marital Status: S Spouse Date of Birth: Beneficiary Date of Birth: Benefit Commencement Date : 8 1 2012 Estimated Monthly Normal Retirement Benefit: $1,740.41 Actuarial Equivalent Adjustment Factors: Option 1 J&S Annuity 1.00000 Option 2 Life Annuity 1.00000 Option 3 10 Year Certain 0.97179 Option 4 50% J&S #DIVlO! Option 5 75% J&S #DIV/0! Option 6 100°lo J&S #DIV/0! ESTIMATE _ _ - Estimated Monthly Benefit $1,740.41 $1,740.41 $1,691.31 #DIV/0! #DIV/0! #DIV/0! I�:�a - Attachment r�umber T\nPage 5 of 2 Estimated Pension Worksheet Gordon Jerrefi LAST DATE PAID: BENEFITS DATE CREDITED SERVICE Prepared by: Date: 7/13/2012 7/1311992 20.0000 Lisa Goodrich 6/1 /2012 GROSS CALENDAR PENSION YEAR EARNINGS 2004 $37,981.29 2006 $37,785.77 2007 $37,556.43 2009 $39,114.78 2011 $37,424.77 $189,863.04 (5 Year Total) 5/ $37,972.61 (Yearly Avg) 12{ $3,164.38 (Monthly Avg) x 0.0275 (Benefit Rate) x 20.0000 (Yrs of Service) $1,740.41 (Est Mtly Pension} . Item # 3 C{TY QF GLEARWATER EIVIPLOYEES' SEP�4RATtQN PAY PREFERENGES Attachment number 1\nPag�6 of 2 PREFERENCE #1 Empioyees can receive a lump sum payment for vacation, floating holiday pay, sick feave incentive, bonus days (if appticable), and 1l2 of accrued sick {eave 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 eamings in the cafculation of the pension. The last day of work wil{ be the termination date and pension benefits wili begin the following month. PREFERENCE #2 Empfoyee 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 witl be the final day of extended time. Pension benefits will begin the following month. _ _ .._. f, �V�, �C..� 1 n � , an employee of the City of Cfearwater, hereby apply for pension benefits under the City's Employees' Pension Plan. ! hereby certify that I fully understand the preferences offered to me. ! 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 Lump Sum va�ation sick _ floaters bonus hours tpc�� Vacation 39s7►���-de�f �.'r� floaters _,�_ bonus haurs I understand that my preference cannot be changed once this form is signed and that my decision is irrevocable. EMPLOYEE'S SIGNATURE: � � .. �.t �,.�_ �•�-- Revised 1/02 Form #9900-0408 SOC{AL SECURITY #: ADDRESS: � --1 D�'C ����� � � �� e- P�,�-� �►�_�:► . �� � ��i�g . p PHONE: �c�� ' � �0��- I'1 1 I.0 DATE: �-� rJ - � � File Name: Employee Separat+on Pay Pref ��11�:�� CITY OF CLEARWATER PENSION ENTITLEMENT OPTION REQUEST FORM I, �`5'1'�V � U Ul�fl C 1 V af Clearwater General Employees' Pension Plan. Job Classifica Department: _ Benefits Date: Date of Birth: Spouse's Name: �' L Spouse's Date of Birth: � do hereby apply for retirement under the City Date of Hire: __ Resignation Date: 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 Disabiliry Pension Sex: U F �fr1 �V � ( Sex: M � 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 st�3ndard 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 annuiry 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) (3j (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) (" )] 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 8� Life AnnuitV -(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 khe 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°/a Joint 8� Survivor Annuity -(must designate a beneficiary) The Participant receives hislher 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 8� Survivor Annuity -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. !f 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)�tem # 3 Option 6-100% Joirrt � Survivor A,nnuity -(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 benefciary 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 optionaf 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 Annuitv Employee's Signature: Date: Dependent children under the age of 18 and residing in my household are: Child's Name Sex Date of Birth !# taking O�tion 2 sign belo�nr: Option #: 2 Employee's Signature: Description: Life Annuity _ Date: If takin Option 3, 4, 5, or 6 fill in beneficia information and si n below: Option #: Description: O z> ..J � My desi ated ben �ciary is: Name: �V � �''�r�� Date of Birth: � — �— ����Sex�M F Social Secunty Number: _ ^ � hone Number: � a� J Ol��' l�i' � Address: � � O� ��-�-�1 � �i � � Employee's Signature: Date: �o � STATE OF FLORIDA The foregoing instrument was ac wledged before me this COUNTY OF PINELLAS y �� �,i_ � �YIE? p��j , �� �, � l(i� who is ersonally�o me or wha has provided as identification and wha�sii�d no _�� an oa j�i.� Rev. 4/08 Form #9900-0009 � Notary Public of Notary Printed My Commission expires: ��N N(?TARY PUBUC STATE OF FLORIDA t�e Comm# EE148949 Expires 1/25/2016 File Name: Pension Entitlement Option Form Item # 3 Steve Bochno LAST DATE PAID: BENEFITS DATE CREDITED SERVICE Estimated Pension Worksheet 6/29/2012 1/28l1991 21.4194 Prepared by: Michelle Sheldon Date: 6/28/12 GROSS GALENDAR PENSION YEAR EARNINGS 2007 $47,222.77 2008 $49,001.70 2009 $50,086.92 2010 $50,086.92 2011 $50,486.92 $246,885.23 (5 Year Total) 5/ $49,377.05 (Yearly Avg) 12/ $4,114.75 (Monthly Avg) x 0.0275 (Benefit Rate) x 21.4194 (Yrs of Service) $2,423.73 (Est Mtly Pension) Item # 3 City of Clearwater Employees' Pension Plan Actuarial Equivalence Factors ESTIMATE 28-Jun-12 sm clract01 Version: Employee Name: Steve Bochno 1-4-96 Employee Date of Birth: 1 7 1950 Marital Status: m Spouse Date of Birth: 10 30 1954 Beneficiary Date of Birth: 10 30 1954 Benefit Commencement Date : 7 1 2012 Estimated Monthly Normal Retirement Benefit: $2,423.73 Actuarial Equivalent Adjustment Factors: Option 1 J&S Annuity 1.00000 Option 2 Life Annuity 1.13869 Option 3 10 Year Certain 1.10239 Option 4 50% J&S 1.04786 Option 5 75% J&S 1.00767 Option 6 100% J&S 0.97045 ESTIMATE Estimated Monthly Benefit $2,423.73 $2,759.87 $2,671.89 $2, 539.73 $2,442.32 $2,352.11 I�:�a GtTY �F CLEARWATER EIEAPLOYEES' SEP�4RATtaN PAY PREFERENCES PREFERENCE #1 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 eamings in the calculation of the pension. The last day of work will be the termination date and pension benefits will begin the following month. PREFERENCE #2 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. I, �-Qa�,TYFLrtc� % t���d9 , 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: . ,.�=:-� �.i Lump Sum vacation q .I7vacation sick �?3.�1 sick floaters floaters �� a S bonus hours bonus hours I understand that my preference cannot be changed once this form is signed and that my decision is irrevocable. EMPLOYEE'S SIGNATURE: SSES: Revised 1/02 Form #9900-0008 SOCIAL SECURI,TY #: _ _ f !(� � ADDRESS: ��T ��-�C�WC.�I!l �l-��r���u� � � `'� �cl � PHONE7�� - Z��'�g3� DATE: �� ��' 1 � File Name: Employee Separation Pay Pref Item # 3 CITY OF CLEARWATER PENSION ENTtTLEMENT OPTION REQUEST FORM �, L�W� .t �i �IQ.��OD of Clearwater General Employees Pension Plan. Job Classification: �U.rv S. � Department: � i�t Benefits Date: � Date of Birth: _%'- `� �° �''7 Spouse's Name: Spouse's Date of Birth: Attachment number 1\nPage 12 of do hereby apply for retire�ent under the City Sex: /1�1 F Division: Date of Hire: _ �/-a 3 -QL! Resignation Date: '7 — G - /,2., The rype of pension for which 1 am applying is (check only one): � Regular Pension based on years of service Job-connected Disability Pension Non-job-connected Disability Pension Sex: M F The City of Clearwater Employees' Pension Plan provides multipie options to Plan Participants as to the manner of the pension benefit payment. Option 1 below represents the standard or normal form of retirement beneft. 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 fo�lowing the death of the Participant to the beneficiary, provided that fo(lowing such five year period ihe survivor annuity shalf 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 unti! he/she remarries. !f 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)J Option 2 - Life Annuity The Participant receives his/her pension as iong as he/she lives. Upon the death of the Participant, benefits cease. [5ection 2.398 (b) (2) (a) (1)] Option 3-10 Year Certain 8� 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, helshe may designate a new beneficiary. If no benefciary 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 S� Survivor Annuitv -(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)] O tion 5- 75% Joint 8� Survivor Annuitv -(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 ��em # 3 Attachment number 1\nPage 13 of Option 6-10U%o Joirrt & Survivar Annuity -(must designate a beneficiary} The Participant receives his/her pension as long as he/she Iives. If the Participant dies first, the beneficiary receives 100% of the pension for the rest of his/her life. (f the beneficiary dies first, the Participant continues to receive 1Q0% 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.) t understand that once my first pension check is received, my decision on this option is irrevocabte. If below: Option #: 1 Description: _Joint and Survivor Annuitv Employee's Signature: Date: �j— 02�7— �� Dependent children under the age of 18 and residing in my household are: Child's Name Sex Date of Birth If taking O�ti Option #: 2 Employee's Signature: If taking O Option #: _ be1�W: Description: Life Annuity _ Date: or 6 fill in beneficiary information and siqn below: My designated beneficiary is: Name: Social Security Number: Address: Empfoyee's Signature: STA7E OF FLORIDA COUNTY OF PINELLAS MICHELLE KUTCH NOTARY PUBLIC STATE OF FLORlDA . Co�r�rn# EEZ01501 �f@S rJi1.�0') s Rev. 4/08 Form #9900-0009 Description: Date of Birth: Sex M F Phone Number: Date: The foregoing instrument was acknowledged before me this o? /��' Ct��� �s� by /..,LL�, Ir.o,��, ����r�_wno is personally known to me or va � G�� as identification and who did/did not take an oath. �/L�e- �.Y��t Notary Pubfic � ( ignature) %�rl'�iO��O. �u�Z�! Name of Notary Printed My Commission expires: �/a�3�o�0�� File Name: Pension Entitlement Option Form Item # 3 Lawrence Gallop LAST DATE PAID: BENEFITS DATE CREDITED SERVICE Estimated Pension Worksheet 7/6/2012 4/23/1984 2s.2o2s Prepared by: Gina Trieste Date: 6/26/12 GROSS CALENDAR PENSION YEAR EARNINGS 2007 $37,36026 2008 $38,678.62 2009 $39,793.40 2010 $39,707.62 2011 $40,007.62 $195,547.52 (5 Year Total) 5! $39,109.50 (Yearly Avg) 12/ $3,259.13 (Monthly Avg) x 0.0275 (Benefit Rate) x 28.2028 (Yrs of Service) $2,527.70 (Est Mtly Pension) Item # 3 City of Clearwater Employees' Pension Plan Actuarial Equivalence Factors ESTIMATE 28-Jun-12 sm clract01 Version: Employee Name: Lawrence Gallop 1-4-96 Employee Date of Birth: 7 3 1957 Marital Status: s Spouse Date of Birth: Beneficiary Date of Birth: Benefit Commencement Date : 8 1 2012 Estimated Monthly Normal Retirement Benefit: $2,527.70 , Actuarial Equivalent Adjustment Factors: Option 1 Normal Form 1.00000 Option 2 Life Annuity 1.00000 Option 3 10 Year Certain 0.98558 Option 4 50% J&S #DIV/0! Option 5 75% J&S #DIV/0! Option 6 100% J&S #DIV/0! ESTIMATE Estimated Monthly Benefit $2,527.70 $2,527.70 $2,491.25 #DIV/0! #DIV/0! #DIV/0! I[�'ii�:�c3 �f�Y �F CL,E�[Ri�/A FEK EMPLOYEES' SEP1�R.4 TlOfV PA Y PREFERENGES Attachment number 1_\nPage 16 PREFERENCE #� Employees can receive a lump sum paymer�t for vacation, floating holiday pay, sick leave incentive, bonus days (if applicabfe), and 1/2 of accrued sick Ieave at the time of separation from the City. There wil! be no deduction for pension from this lump sum .payment nor will this amount count as earnings in the calculation of the pension. The }ast day of work wili be the termination date and pension benefits will begin the following month. PREFERENCE #2 Employee can extend termination date by part or ali of the time due for �-� -- -�---- vacation, oating o i ay pay, sic eave incen ive, onus ays i pa ptica e,-� ---� and 1/2 of accrued sick leave. Erriployee 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 fina! ciay of extended time. Pension benefits will begin the following month. _ --��=�- _ i, A US��O �� t(�Y�"k� , an empioyee of tne C+iy oi Cizarwa�er, hereby aapiy �o� pension benefits under the City's Employees' Pension Plan. ( 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 cafculated under this preference. Please use my leave in the following manner_ Ratt-�tr�- Lump Sum � �ia vacation I understand that my p irrevocable. erence cann � t i ' ol ,�.�, , � - � --' � _ ,' ---�i�7 ►- Revis2d 1/02 F-orm r";9900-0008 � 3� sick —Q floaters _ �� EMPLOYEE'S SIGNATtJRE: �L�o nu s h ou rs ( �(� G�CL�.�') SOCIAL SECURITY #: — — ADDRESS: � � � �� � �� ��r ����� PHONE� � ��o � DATE: �S�—t � —' y File Name: Employee Separation Pay Pref Item # 3 CITY OF CLEARWaTER PENSION ENTITLEMENT OPTION REQUES7 FORM I. K�� �� r� I l ��r+� Q^ af Clearwater General Employees' Pension Plan. Job Classifica Department: J Benefits Date: Date of Birth: Spouse's Name: _�[ Spouse's Date of Birth: 0 --- AttacUment_number 1 \nPage 17 do hereby apply for retirement under the City � Sex: � F Division: Date of Hire: ��7 Resignation Date: dv��p�-.ukhoe- )� 20iZ.. 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 Sex: M Q 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 Annuitv 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 annuiry 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 chifdren under the age of 18 shafl be deemed to be the beneficiary anci receive the designated amount until the age of 18. [Sect+on 2.397 (a) (3) and Section 2.398 (b) (1)j The Participant receives his/her pension as long as cease. [Section 2.398 (b) (2) (a) (1)] Option 3-10 Year Certain � Life Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies before 12Q 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 totaf 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 na beneficiary is alive at the time of the participanYs death, the participanYs estate will be paid the balance of the 120 payments. [Section 2.398 (b) (2) (a) (2)� Option 4- 50% Joint � Survivor Annuitv -(must designate a bene�ciary) The Participant receives his/her pension as long as he/she lives. !f 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. jSection 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 iives. tf the Participant dies first, the beneficiary receives 75% of the pension for the rest of his/her life. If the benefic+ary 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%o Joint & Survivor Annuity - �must designate a benef'rciary) 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 variaus 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 takinq Option 1 sign below: Option #: 1 Description: Joint and Survivor Annuity Employee's Signature: Date: Dependent children under the age of 18 and resiiiing in my household are: Child's Name Sex Date of Birth lf taking Op#ion 2 sian below: Option #: 2 Employee's Signature: If taking O Option #: _ Description: Life Annuity _ 1 in beneficiary information and Description: below: Date: My designa ed beneficiary is: Name: Date of Birth: �% Sex M� Social Security Number. _ __ Phone Number: '10�� ���— c�.q�� .' �`.]� =^,� Address: �� ,�� rni� . DcL ��'7%`�; � Employee's Signature: STATE OF FLORIDA COUNTY OF PINELLAS MtCHELLE SHElDON �`� NOTARY PUBUC STATE OF FLORIDA � , Comm# EE148949 �`�'ce � Expires 1125/2016 Rev. 4/08 Form #9900-0009 Date: � � �/i�• �� The foregoing instrument was acknowledged before me this Y1 ab 1�by I��SS2 �Q'��'C-'� who'is personally known o me or who has provided as identification and who did/did r�attake a oa . Notary Public Name of Notary Printed My Commission expires: � — �� �� � � File Name: Pension Entitlement Option Form Item # 3 Russell Carter LAST DATE PAID: BENEFITS DATE CREDITED SERVICE Prepared by: Date: Estimated Pension Worksheet 9/21/2012 12/21/1987 24.7500 Deborah Ford 5/2l2012 GROSS CALENDAR PENSION YEAR EARNINGS 2007 $56,678.52 2008 $58,909.52 2009 $60,674.40 2010 $61,214.14 2011 $61,614.14 $299,090.72 (5 Year Total) 5/ $59,818.14 (Yearly Avg) 12/ $4,984.85 (Monthly Avg) x 0.0275 (Benefit Rate) x 24.7500 (Yrs of Service) $3,392.81 (Est Mtly Pension) Item # 3 City of Clearwater Employees' Pension Plan Actuarial Equivalence Factors ESTIMATE 07-Jun-12 sm clract01 Version: Employee Name: Russell Carter 1-4-96 Employee Date of Birth: 2 24 1957 Marita! Status: m Spouse Date of Birth: 12 19 1958 Beneficiary Date of Birth: 12 19 1958 Benefit Commencement Date : 10 1 2012 Estimated Monthly Normal Retirement Benefit: $3,392.81 Actuarial Equivalent Adjustment Factors: Option 1 J&S Annuity 1.00000 Option 2 Life Annuity 1.09286 Option 3 10 Year Certain 1.07540 Option 4 50% J&S 1.03291 Option 5 75% J&S 1.00534 Option 6 100% J&S 0.97920 ESTIMATE Estimated Monthly Benefit $3,392.81 $3,707.87 $3,648.62 $3,504.48 $3,410.92 $3,322.24 I[�'ii�:�c3 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Meeting Date:8/13/2012 Approve the request of employee Douglas Pulver, General Services to vest his pension as provided by Section 2397 of the Employees' Pension Plan. SUMMARY: Douglas Pulver, Fleet Mechanic, General Services Department, was employed by the City on May 27, 1986, and began participating in the Pension Plan on that date. Mr. Pulver terminated from City employment on June 18, 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 ar more years of creditable service (pension participation), such employee shall acquire a vested interest in the retirement bene�ts. 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 2393 (p) 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. Pulver would have completed at least 20 years of service and will reach age 55 on July 16, 2013. His pension will be effective August 1, 2013. Review Approval: Cover Memo ��11�:�� APPUCATION FOR VESTED RIGHTS PENSION v,_�v'�i being a person leaving employment with the City of earwater, Florida, and having completed ten (10) or more years of credited service, such sPrvice having occurred during the period from (date of entry into Pension Plan) -a%��-/�91�� to (date of resignation or change of status) �uhP /�, n�d/o�- h reb �nakes application to receive the vested rights pension provided for by the City Code of Ordinances. As such former employee, I understand the pension requested will be computed pursuant to the provisions of the City Code of Ordinance in effect on the date of resignation. I hereby further certify that my date of birth is �� �c.U, ��,� 1S I "'chment number 1 \nPage 1 The date I will begin to receive my pension will be (���(�i�tS �/ Further, I additionally certify that I have made no application seeking to obtain a return of the contributions that I paid into the Pension Fund during the period of my employment set forth above, I have not been convicted of a felony during my period of employment, and I have not received any other type of pension from the City. ;T�°°� ignature Social Security Number ('7an�� ��l�Vl C�.� s Department/Division �C�� 1Y1��G�� �c Job Classification � �� � �S'��.� Street Ad ss �learr.c�.�; �L �.3 °�5�' City, State, Zip Code STATE OF FLORIDA The foregoing instrument was acknowledged before COUNTY OF PINELLAS me th�s�� day of �, , 20 l�. by who is personally known_to me or who has provided Rev. 4/09 as identification and who didldid not take an oath. �- Notary Public �liCl!t�J1%' �� Name of Notary Printed My commission expires �� Kurc.� NOTARY PUgLIC STATE OF FLORtDA . Cw►►+�# EE20150� E�P�e$ 5r23/'1016 �/z 31,��� Vested Pension Form Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Meeting Date:8/13/2012 Approve agreement with Gabriel Roeder Smith and Company, current plan actuary, for completion of a comprehensive experience study related to actuarial assumptions and methods, for a not-to-exceed amount of $25,000, and authorize the appropriate officials to execute same. SUMMARY: Experience studies for review of actuarial assumptions and methods should be performed regularly to assure that actuarial assumptions and methods reflect the evolving Plan experience. Changes in assumptions and actuarial methods can increase or decrease the overall liability of the plan. The goal is to have the most realistic assumptions and methods that will more accurately predict future benefit payouts. Per Government Finance Officers Assn. (GFOA) best practices guidance, comprehensive experience studies should be completed at least every five years. The last experience study for the Employees' Pension Plan was dated September 1, 2006. Staff recommends that an experience study be completed prior to the January 1, 2013, plan actuarial valuation. Review Approval: 1) Off'ice of Management and Budget 2) Lega13) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Cover Memo ��11�:�� R Gabriel Roeder Smith & Company One Easr Broward Bl�d. Constiltant's & Actu�rics Suite SO.S Ft. Lauderdale, FI, 33301-1827 Attachment number 1 \nPage 1 954.527.1616 phone 954.525.0083 fax www.gabrielroedeecom June 14, 2012 Mr. Jay Ravins Finance Director City of Clearwater P. O. Box 4748 Clearwater, FL 33758-4748 Re: City of Clearwater Employees' Pension Plan Dear Jay: ���� ������� ��r4;, � �� 203� F�i::..,�;c= _ ,rv,�,-t��Q�t At the latest Pension Board meeting, we discussed the need for an experience study. Below we have provided an overview of an experience study along with a description of the process and proposed fees and timing. Overview The purpose of the annual actuarial valuation is to keep the funding of the Plan on track. In the annual actuarial valuation, the total liability of the Plan is measured by applying the actuarial assumptions to the census data and the provisions of the Plan. The more accurately the actuarial assumptions predict future events, the better the position the Board will be in to know the financial liability for the ongoing Plan. The importance of the actuarial assumptions in determining the liability cannot be over-emphasized. According to paragraph 10.b. in GASB Statement No 27, "...actuarial assumptions should be based on the actual experience of the covered group, to the extent that credible experience data are available, but should emphasize expected long-tenn future trends rather than give undue weight to recent past experience. The reasonableness of each actuarial assumption should be considered independently based on its own merits, its consistency with each other assumption, and the combined impact of all assumptions." It is highly recommended that experience studies be performed regularly to keep the actuarial assumptions and methods up to date with evolving Plan experience. Current Assumptions The assumptions used for the actuarial valuation that most greatly impact the liability are as follows: Economic assu�n.ptions: • Salary scale � Invesnnent return Non-economic assumptions: � Retirement rates • Turnover rates • Mortality rates • Disability rates I[�'ii�:�7 Attachment number 1 \nPage 2 Mr. Jay Ravins June 14, 2012 Page 2 Process We will take the followii�g steps to perform an experience study: • Examine each assumption individually, for hazardous and non-hazardous members separately. • In the case of retirement and turnover rates, review actual experience from the past five or more years and cotnpare it to the current assumptions. Note: We currently only have census data as of January 1, 2009 through January 1, 2012, so in order to model five years of experience, we will need to collect census data as of January 1, 2007 and January 1, 2008. • Determine whether changes should be made or if an assumption is better off left unchanged. • If a change is required, we will develop a recomrnendation for a new assumption. • We will measure the impact of our recommendations on the annual required contribution. Please note that these changes may increase or decrease the overall liability of the plan. Our goal is to create a set of assumptions that will more accurately predict future benefit payouts, which in turn will allow us to estimate future contributions more precisely. With regard to the non-economic assumptions above, we will look at actual experience and compare this to our assumptions, making changes where we see significant differences. The approach taken for the economic assumptions is somewhat different. We will analyze the actual salary increases. Additionally, we will seek input from the City on any negotiated changes in future salaries. With regard to the investment return assumption, we will conduct a study using our modeling software and capital tnarket assumptions of several large investment consulting firms. The study will be based on the Plan's target allocation of assets. The output will be used to develop a reasonable assumption for future asset returns. Coordination with the Board's consultant is also advisable in selecting the expected long term rate of return. Finally, we will show the change in the required contribution so the Board can see the potential impact the changes in assumptions will have. We will show this on an individual basis (changing one assumption and leaving all others constant) and on an aggregate basis (changing all assumptions at once). Based on the results, the Board can make an infonned decision about the appropriateness and timing of adopting the recommended changes. Proposed Fees and Timing The estimated fee for this study is $22,000 to $25,000. We would complete the study within 60 days after receiving the requested data (the 2007 and 2008 census data). We welcome your questions and comments. � Sincerely yours, � f � k (j�� `� ...��`J,dY-_� �.t,�AP..� �^y . ." ��;"�. •E/ 1 � . Stephen Palmquist, AS Senior Consultant & Actuary JSP/ps �'��O V � , 1 / Peter N. Strong, ASA Consultant & Actuary G3briel Roeder Smith & Comp�my I[�'ii�:�7 Pension Trustees Agenda Council Chambers - City Hall Meeting Date:8/13/2012 SUBJECT / RECOMMENDATION: Determine that hazardous duty contract employees are eligible for participation in the City of Clearwater Employee Pension Plan and direct they be enrolled in the plan. SUMMARY: Section 2393 of the current Pension Ordinance excludes employees hired into contract positions (SAMP 4, 5, 6) from participation in the City's Employee Pension Plan. In 2005, the City began employing individuals from outside the organization to serve as Assistant Fire and Police Chiefs. Because these individuals were hired into contract positions (SAMP 4 and 5), they were treated the same as other similarly situated employees and were enrolled in the City's 401A program instead of the pension plan IAW our Pension ordinance. The Pension Plan Attorney has rendered an opinion regarding this practice that State Statutes requires participation by all �refighters and police of�cers in pension plans governed by Chapters 175 and 185. Since Section 2393 of the current Pension Ordinance conflicts with Chapters 175 and 185 in this instance, the Plan Attorney has opined that Florida statutory provisions prevail. The only exception is for Fire and Police Chiefs who have the option to not participate. It is also their opinion that all Assistant Fire and Police Chiefs be enrolled in the City Pension Plan on a prospective basis and that they be permitted to purchase credited service retroactive to their dates of hire if they so choose. The City can require that the Assistant Chiefs pay the actuarial cost for prior service credit or the equivalent of what would have been their annual employee contribution. They can also be permitted to roll over the balance in their purchase money plan account to pay for prior service credit. The Pension rewrite that will be considered at referendum in November will include a change requiring these employees to participate in the Pension plan when hired. The current Pension ordinance authorizes the Trustees to "determine from time to time which persons are full-time employees for purposes of the plan". Review Approval: 1) Human Resources Cover Memo ��11�:�� Attachment number 1 \nPage 1 KLAUSNER KAUFMAN JENSEN LEVINSON '. Writer's e-mail: stuCa�robertdklausner.com March 13, 2012 Joseph P. Roseto, SPHR Human Resources Director Clearwater Employees' Pension Plan 100 S. Myrtle Avenue Clearwater, Florida 33758-4748 Re: Clearwater Employees' Pension Plan - Membership Issue Our File No. 030014 Dear Mr. Roseto: You have requested an opinion as to whether assistant fire chiefs and deputy police chiefs employed by the City of Clearwater are required to participate in the City of Clearwater Employees' Defined Benefit Retirement Plan. For the reasons which follow, this question is answered in the affirmative. It is my understanding that since approximately 2005, individuals employed by the City cf Clearwater as assistant and/or deputy fire and police chiefs have not been enrolled in the 'z • y n i n _...r�• {,. 1...,. �,....... � i� ..1 ' `.•a r ity d�i�i iCi'. u�i"l��it rCi i�i0i � I�icl(1. i�al� iEi ,�� ic�T I IGYI: ►7.:�i i Ei ifG�ic..� ii i t� 1S viiji s iil�� �cjl purchase plan. As you are aware, in order to receive Chapter 175 and 185 monies from the State of Florida, which are used to fund the share plans for firefighters and police officers, the City's Defined Benefit Pension Plan is required to abide by the provisions set forth in Florida Statutes, Chapters 175 and 185. Chapters 175 and 185, Florida Statutes, requires participation by all firefighters and police officers in municipal firefighter and police pension plans governed by Chapters 175 and 185. The only exception to this requirement is for the fire and police chiefs. Sections 175.032(8)(a) and 185.02(11) provide that any plan may provide that the fire or police chief has an option to participate, or not, in that plan. There is no corresponding provision which provides that assistant or deputy fire or police chiefs have this similar option to opt out of participation in the Defined Benefit Plan. 10059 NoxTxwEST lsr CouxT, PL��NTAT1oN. FLOa1�A 33324 PHOrrE: (954} 916-1202 • Fax: (954) 916-1232 www.robertdklausner.com Item # 6 , � '��„�yzYS� Attachment number 1 \nPage 2 Joseph P. Roseto, SPHR March 13, 2012 Page Two The State Division of Retirement could determine that as the assistant fire and deputy police chiefs are not enrolled in the Defined Benefit Plan, that Chapter monies used to fund the fire and police supplemental plans should be withheld until the assistant and deputy fire and police chiefs are made members of the Defined Benefit Plan. I am aware of the definition of "employee" as set forth in Section 2.393 of the Plan. However, based upon the provisions of Chapters 175 and 185 which directly conflict with Seciion 2.393 in this instance, the Fiorida statutory provisions prevail. Additionally, Section 2.393 authorizes the Trustees to "determine from time to time which persons are full-time employees for purposes of the plan." It is our opinion that all assistant and deputy fire and police chiefs should be enrolled in the Defined Benefit Plan on a prospective basis. It is also our opinion that the assistant and deputy fire and police chiefs be allowed to purchase credited service in the Defined Benefit Plan retroactive to their dates of hire. The City can require that the assistant and deputy fire and police chiefs pay the actuarial cost or other amount such as employee and/or employer contributions for the purchase of the prior service, or the City can make a decision that they can get prior credited service by rolling over the balance in their purchase money plan account. Please call me should you wish to discuss this matte�r�her. rs, A. KAUFMAN SAK:pc W:\Wdocs\LLP\030014\GM\00030353. WPD ��11�:��