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09/12/2005 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES CITY OF CLEARWATER September 12, 2005 Present: Frank Hibbard Chair William C. Jonson Trustee Hoyt Hamilton Trustee Carlen Petersen Trustee John Doran Trustee Also Present: William B. Horne, II City Manager Garry Brumback Assistant City Manager Rod Irwin Assistant City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Patricia O. Sullivan Board Reporter The Chair called the meeting to order at 9:22 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. Approval of Minutes: Trustee Doran moved to approve the minutes of the August 15, 2005, regular meeting, as recorded and submitted in written summation by the City Clerk to each Trustee. The motioncarried was duly seconded and unanimously. Pension Trustees Items 1. Accept the employees listed into membership in the City of Clearwater's Employees' Pension Plan: Shannon Shepard, Rebecca Davis, Joseph Fishback, Barry LeCavalier, Thomas Galbo, Jonathan Yuen, Kenneth Hay, Ahmad Jackson, Betty Jane Hoskins, David Pettay, Ryan Lonchar, Robert Bishop, David Rooker, Deidre Jones, Aileen Howard, Darcy Hunt, and Peter Keresztes, The Pension Advisory Committee recommended that these employees be accepted into membership in the City of Clearwater's Employees' Pension Plan. Trustee Petersen moved to accept the recommendation of the Pension Advisory motioncarried Committee. The was duly seconded and unanimously. Pension Trustees 2005-09-12 1 2. Mark F. Cairns, Fire Department, and Mark D. Love, Fire Department, be granted regular pensions under Sections 2.393 and 2.397 of the Employees’ Pension Plan as approved by the Pension Advisory Committee. Mark F. Carins, Firefighter, Fire Department, was employed by the City on September 10, 1973, and his pension service credit is effective on that date. His pension will be effective September 1, 2005. Based on an average salary of approximately $49,540 per year over the past five years, the formula for computing regular pensions, and Mr. Cairns’ selection of the 100% Joint & Survivor Annuity, this pension will approximate $42,962 annually. Mark D. Love, Firefighter/Driver Operator, Fire Department, was employed by the City on August 28, 1978, and his pension service credit is effective on that date. His pension will be effective September 1, 2005. Based on an average salary of approximately $51,635 per year over the past five years, the formula for computing regular pensions, and Mr. Love’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $37,382 annually. These pensions were approved by the Pension Advisory Committee on August 11, 2005. Section 2.393 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 defines service as a Firefighter and Firefighter Driver/Operator as meeting the hazardous duty criteria. Mr. Cairns and Mr. Love qualify under the hazardous duty criteria. Trustee Jonson moved that Mark F. Cairns, Fire Department, and Mark D. Love, Fire Department, be granted regular pensions under Sections 2.393 and 2.397 of the Employees’ motion Pension Plan as approved by the Pension Advisory Committee. The was duly carried seconded and unanimously. 3. Gregory Turman, Public Utilities Department; Glenn Weaver, Engineering Department; and Ronald Reist, General Services Department, be allowed to vest their pensions under Sections 2.397 and 2.398 of the Employees’ Pension Plan as approved by the Pension Advisory Committee. Gregory Turman, Public Utilities Supervisor II, Public Utilities Department, was employed by the City on August 13, 1984, and began participating in the Pension Plan on that date. Mr. Turman terminated from City employment on July 29, 2005. Glenn Weaver, Signal Systems Engineer, Engineering Department, was employed by the City on March 20, 1989, and began participating in the Pension Plan on that date. Mr. Weaver terminated from City employment on July 29, 2005. Ronald Reist, Fleet Mechanic, General Services Department, was employed by the City on January 15, 1991, and began participating in the Pension Plan on that date. Mr. Reist terminated from City employment on August 5, 2005. The Employees’ Pension Plan provides that should an employee cease to be an employee of the City of Clearwater after completing ten or more years of creditable service (pension participation), such employee shall acquire a vested interest in the retirement Pension Trustees 2005-09-12 2 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 2.393 (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. Turman would have completed at least 30 years of service on August 13, 2014. His pension will be effective September 1, 2014. Mr. Weaver would have completed at least 20 years of service and reached age 55 on March 20, 2009. His pension will be effective April 1, 2009. Mr. Reist would have completed at least 20 years of service and reached age 55 on January 15, 2011. His pension will be effective February 1, 2011. These pensions were approved by the Pension Advisory Committee on August 12, 2005. Trustee Petersen moved that Gregory Turman, Public Utilities Department, Glenn Weaver, Engineering Department, and Ronald Reist, General Services Department, be allowed to vest their pensions under Sections 2.397 and 2.398 of the Employees’ Pension motion Plan as approved by the Pension Advisory Committee. The was duly seconded and carried unanimously. 4. Approve the recommended administrative expenditures for Employees' Pension Plan fiscal year 2005-06 totaling $376,500. The Employees’ Pension Plan does not have a legal requirement to have a budget. The Trustees must approve all expenditures. The following are routine expenditures that staff is requesting approval for the sake of efficiency. These expenditures involve routine business matters and are mostly small dollar amounts: 1) Medical bills are the medical services that the Pension Advisory Committee authorizes; 2) Printing and binding is for the statutorily required annual information distribution to the members of the pension plan; and 3) Travel and training is for the mandatory training required by State statute for PAC (Pension Advisory Committee) Members, Trustees, and Investment Committee Members. Included with these numbers is the annual authorization for our pension attorneys, Klausner & Kaufman. Money manager, safekeeping, actuary, and pension administration fees are all set by contracts approved by the Trustees and are not included here. Reimbursement to the General Fund and the Self Insurance Fund is for the cost of oversight of the Plan and is recognized as revenue to the funds. This reimbursement covers the services provided by the Human Resources (some of these employees are paid out of the Self Insurance Fund), Payroll, and Finance Departments. Trustee Hamilton moved to approve the recommended administrative expenditures for motion Employees' Pension Plan fiscal year 2005/06 totaling $376,500. The was duly carried seconded and unanimously. Pension Trustees 2005-09-12 3 . Other Business: - None. Adiourn The meeting adjourned at 9:24 a.m. Attest: c~~~. . . ~ QOr'Dc._ . Pension Trustees 2005-09-12 ~p/~ chair Employee's Pension Plan Trustees 4