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06/18/2013 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES CITY OF CLEARWATER June 18, 2013 Present: Chair/Trustee George N. Cretekos, Trustee Paul Gibson, Trustee Doreen Hock-DiPolito, Trustee Bill Jonson, and Trustee Jay E. Polglaze. Also Present: William B. Horne II - City Manager, Jill Silverboard -Assistant City Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk, and Nicole Sprague - Official Records and Legislative Services Coordinator. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 1. Call to Order - Chair George N. Cretekos The meeting was called to order at 9:50 a.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the May 13, 2013 Pension Trustees meeting as submitted in written summation by the City Clerk. Trustee Doreen Hock-DiPolito moved to approve the minutes of the May 13, 2013 Pension Trustees meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. 3. Citizens to be Heard re Items Not on the Agenda - None. 4. Pension Trustee Items 4.1 Approve the request of the new hires for acceptance into the Pension Plan as listed. Pension Name, Job. Class, & Dept./Div. Hire Date Eliq. Date Shannon Hight, Fire Medic, Clwtr Fire and Rescue Dept. 04/06/2013 04/06/2013 William Billups, Fire Medic, Clwtr Fire and Rescue Dept. 04/06/2013 04/06/2013 Michael Remillet, Fire Medic, Clwtr Fire and Rescue Dept. 04/06/2013 04/06/2013 Elizabeth Pierce, Fire Medic, Clwtr Fire and Rescue Dept. 04/06/2013 04/06/2013 James Desaulniers, Fire Medic, Clwtr Fire and Rescue Dept. 04/06/2013 04/06/2013 Pension Trustees 6/18/2013 1 Justin Smith, Fire Medic, Clearwater Fire and Rescue Dept. 04/06/2013 04/06/2013 Justin Suhanovsky, Fire Medic, Clwtr Fire and Rescue Dept. 04/06/2013 04/06/2013 Logan Cruz, Fire Medic, Clearwater Fire and Rescue Dept. 04/06/2013 04/06/2013 Yusupha Touroy, Stormwater Technician I, Engineering Dept. 04/06/2013 04/06/2013 Amanda Kirkpatrick, Rec Leader I, Parks and Rec Dept. 04/06/2013 04/06/2013 Kelly Pierce, Police Comm Oper Trainee, Police Dept. 04/22/2013 04/22/2013 Daniel Knight, Cust Service Rep, Customer Service Dept. 04/22/2013 04/22/2013 Korey Glass, Solid Waste Worker, Solid Waste Dept. 04/22/2013 04/22/2013 Jesus Rolden Trejo, Tradesworker, General Services Dept. 04/22/2013 04/22/2013 Leviticus McKinnon, Sold Waste Worker, Solid Waste Dept. 04/22/2013 04/22/2013 Trustee Jay Polglaze moved to approve the request of the new hires for acceptance into the Pension Plan as listed. The motion was duly seconded and carried unanimously. 4.2 Approve the recommended pension plan expenditures for fiscal year 2014, totaling $321,000. The Employees' Pension Plan does not have a legally required annual budget. However, the Trustees must approve all expenditures. The following are routine expenditures that staff is requesting approval of for administrative efficiency. The recommended expenditures for fiscal year 2014 reflect an $11,000, or 3.3%, decrease from the fiscal year 2013 expenditures of$332,000. This decrease is primarily due to elimination of$15,000 included in the 2013 expenditures for the pension plan referendum. Training and travel are for the estimated costs of pension training and related travel, including fiduciary training for the trustees and Pension Advisory Committee (PAC) members. This is a not-to-exceed amount given uncertainty regarding the number of trustees and PAC members that may elect to attend training conferences. Reimbursement to the General Fund is for the cost of oversight and administration of the Plan, recognized as revenue to the General Fund. The reimbursement is for services provided by Human Resources, Payroll, and Finance personnel. The firm of Klausner, Kaufman, Jensen and Levinson serves as the Plan's pension attorney. Annual attorney fees also include medical bills for medical services authorized by the PAC. Money manager, performance measurement consulting, safekeeping, and actuary fees are all governed by contracts separately approved by the Trustees, and are not included in this agenda item amount. Pension Trustees 6/18/2013 2 Trustee Paul Gibson moved to approve the recommended pension plan expenditures for fiscal year 2014, totaling $321,000. The motion was duly seconded and carried unanimously. 4.3 Approve the request of the following employees Ozell George, Engineering Department; Marjorie Doucette, Finance Department; Robert Barry, Parks and Recreation and Brian Dewitt, Police Department; for a regular pension as Provided by Sections 2.416 and 2.424 of the Employees Pension Plan. Ozell George, Stormwater Supervisor II, Engineering Department, was employed by the City on April 5, 1982 and his pension service credit is effective on that date. His pension will be effective June 1, 2013. Based on an average salary of approximately $67,937.31 per year over the past five years, the formula for computing regular pensions and Mr. George's selection of the 75% Joint and Survivor, this pension will approximate $45,747.12 annually. Marjorie Doucette, Payroll Services Manager, Finance Department, was employed by the City on June 24, 1985 and her pension service credit is effective on that date. Her pension will be effective July 1, 2013. Based on an average salary of approximately $75,443.52 per year over the past five years, the formula for computing regular pensions and Ms. Doucette's selection of the Joint and Survivor Annuity, this pension will approximate $62,258.16 annually. Robert Barry, Administrative Support Manager, Parks and Recreation Department, was employed by the City on September 24, 1979 and his pension service credit is effective on that date. His pension will be effective July 1, 2013. Based on an average salary of approximately $65,287.81 per year over the past five years, the formula for computing regular pensions and Mr. Barry's selection of the Joint and Survivor Annuity, this pension will approximate $60,615.24 annually. Brian Dewitt, Police Officer, Police Department was employed by the City on July 8, 1993 and his pension service credit is effective on that date. His pension will be effective August 1, 2013. Based on an average salary of approximately $72,963.19 per year over the past five years, the formula for computing regular pensions and Mr. Dewitt's selection of the 100% Joint and Survivor Annuity, this pension will approximate $39,569.28 annually. Section 2.416 provides for normal retirement eligibility for non-hazardous duty employees hired prior to the effective date of this reinstatement (January 1, 2013), a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of 55 years and completed twenty years of credited service; the date on which a participant has reached age sixty-five years and completed ten years of credited service; or the date on which a member has completed thirty years of service regardless of age. For non-hazardous duty Pension Trustees 6/18/2013 3 employees hired on or after the effective date of this restatement, a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of sixty years and completed twenty-five years of credited service; or the date on which a participant has reached the age of sixty-five years and completed ten years of credited service. Mr. George, Ms. Doucette and Mr. Barry meet the non-hazardous duty criteria. Section 2.416 provides for normal retirement eligibility for hazardous duty employees, a member shall be eligible for retirement following the earlier of the date on which the participant has completed twenty years of credited service regardless of age, or the date on which the participant has reached fifty-five years and completed ten years of credited service. Mr. Dewitt meets the hazardous duty criteria. Trustee Bill Jonson moved to approve the request of the following employees Ozell George, Engineering Department; Marjorie Doucette, Finance Department; Robert Barry, Parks and Recreation and Brian Dewitt, Police Department; for a regular pension as provided by Sections 2.416 and 2.424 of the Employees Pension Plan. The motion was duly seconded and carried unanimously. 4.4 Approve the request of employee Christopher L. Housholder of the Police Department to vest his pension as provided by Section 2.397 of the Employees Pension Plan. Christopher L. Housholder, Police Officer, Police Department, was employed by the City on April 29, 1996, and began participating in the Pension Plan on that date. Mr. Housholder terminated from City employment on April 10, 2013. Pension Trustees 6/18/2013 4 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 2.416 provides for hazardous duty normal retirement eligibility when a participant has completed twenty years of credited service regardless of their age, or the date on which the participant has reached the age of fifty -five years and completed ten years of credited service. Mr. Housholder would have completed at least 20 years of service on April 29, 2016. Trustee Jay Polglaze moved to approve the request of employee Christopher L. Housholder of the Police Department to vest his pension as provided by Section 2.397 of the Employees Pension Plan. The motion was duly seconded and carried unanimously. 5. Other Business Finance Director Jay Ravins said recently approved state legislation requiring the disclosure of additional information of the City's pension plan. The disclosure must be submitted to the State annually. Additional disclosures include using a specific mortality table and impact of a 200 -basis point decrease on the plan's interest rate assumption, requiring the actuary to provide an additional calculation based on a 5% return assumption. The mortality table required by the State is older than the one used currently by the plan, which is more current and conservative. Mr. Ravins said the additional disclosures have no impact on the Plan's funding or financial statements. 6. Adjourn The meeting adjourned at 10:00 a.m. Attest City Clerk hg_ qeoriRtIeTIAX ko5 Chair Employees' Pension Plan Trustees Pension Trustees 6/18/2013