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08/08/2013 PENSION ADVISORY COMMITTEE MEETING MINUTES CITY OF CLEARWATER August 8, 2013 Present: Chair Nathan Hightower, Vice-Chair Daniel Slaughter, Committee Member Tom Jensen, Committee Member/Councilmember Paul Gibson, Committee Member/ Councilmember Bill Jonson, Committee Member Bill Renfroe. Absent: Committee Member/Councilmember Doreen Hock-DiPolito Also present: Bob Klausner- Pension Advisory Committee Attorney — arrived 9:22 a.m., Joe Roseto — Human Resources Director, Patricia O. Sullivan - Board Reporter 1. Call to Order The Chair called the meeting to order at 9:00 a.m. at City Hall. 2. Approval of Minutes 2.1 Approve minutes of July 11, 2013, Pension Advisory Committee meeting as submitted in written summation. Member Jonson moved to approve Item 2.1. The motion was duly seconded and carried unanimously. 3. Employees to be Heard: None. 4. Review and Action on Employee Requests to Vest Pensions 4.1 Recommend approval of the request of employee Shannon R. Hladik of the Police Department to vest her pension as provided by Section 2.419 of the Employees Pension Plan. Shannon R. Hladik, Police Officer, Police Department, was employed by the City on December 2, 2002, and began participating in the Pension Plan on that date. Ms. Hladik terminated from City employment on July 20, 2013. 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. Pension Advisory Committee 8/8/2013 1 Section 2.416 provides for normal retirement eligibility for non-hazardous duty employees hired prior to the effective date of this reinstatement (1/1/13), 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 (20) years of credited service; the date on which a participant has reached age sixty five (65) years and completed ten (10) years of credited service; or the date on which a member has completed thirty (30) years of service regardless of age. For non- hazardous duty 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 (60) years and completed twenty five (25) years of credited service; or the date on which a participant has reached the age of sixty five (65) years and completed ten (10) years of credited service. Ms. Hladik will meet the hazardous duty criteria and begin collecting a pension in January 2023. Member Jensen moved to approve Item 4.1. The motion was duly seconded and carried unanimously. 5. Approval of New Hires as Plan Members: 5.1 Recommend approval of the new hires for acceptance into the pension plan as listed. Name, Job. Class, & Dept./Div. Hire Date Elig. Date Melissa Hauck-Baker, Planner II, Planning & Dev 07/08/2013 07/08/2013 Jennifer Milano, Library Assistant, Library Dept 07/13/2013 07/13/2013 Audra Aja, Econ Dev Coordinator, Economic Dev Dept 07/15/2013 07/15/2013 Patricia Hostetler, Police Aide, Library 07/15/2013 07/15/2013 Elizabeth Watts, Police Officer, Police Dept 07/15/2013 07/15/2013 Michael Stanley, Police Officer, Police Dept 07/15/2013 07/15/2013 Sean Phelps, Police Officer, Police Dept 07/15/2013 07/15/2013 Brian Kanicki, Police Officer, Police Dept 07/15/2013 07/15/2013 Brinton George, Police Officer, Police Dept 07/15/2013 07/15/2013 Christopher England, Police Officer, Police Dept 07/15/2013 07/15/2013 Michelle Brunozzi, Police Officer, Police Dept 07/15/2013 07/15/2013 Brad Allen, Police Officer, Police Dept 07/15/2013 07/15/2013 Kevin Whitlow, Rec Specialist, Parks and Rec. Dept 07/15/2013 07/15/2013 Jason Bellinger, Fleet Mechanic, General Svcs. Dept 07/15/2013 07/15/2013 Member Renfroe moved to approve Item 5.1. The motion was duly seconded and carried unanimously. 6. Pending/New Business Pension Advisory Committee 8/8/2013 2 6.1 Approve the revisions to the Pension Advisory Committee Policies and Procedures Manual. Human Resources Director Joe Roseto distributed suggested changes to the Policies and Procedures Manual that clarify the PAC (Pension Advisory Committee) attorney's ability to request additional information from the applicant. Committee Attorney Bob Klausner reviewed proposed language to add to Section IV procedures regarding contested disability benefit applications, indicating the PAC, with advice from Fund counsel, will select the advocate on behalf of the Pension Fund, the advocate shall be an experienced pension attorney, from the area when possible, the Administrator shall direct the advocate, members will forward concerns and questions to the advocate via Fund counsel, and Fund counsel will review billing from the advocate to insure consistency. He said Fund counsel will serve as a clearing house for legal issues to make certain the legal interests of the Plan and PAC are protected. A limited number of pension attorneys practice in Florida. In response to questions, Attorney Klausner said at a disability hearing, Fund counsel represents the PAC and helps members follow the law, the applicant and/or representative presents information advocating approval of the disability pension, and the committee's advocate presents information promoting denial of the disability pension. Fund counsel represents the committee if its decision and Final Order is appealed. Discussion ensued with a recommendation that the word "experience" be replaced with "expertise." It was commented that after the current case is heard, the committee can review language for possible changes. In response to a concern that the disability pension process is lengthy and burdensome to applicants and the City, Attorney Klausner said when the committee reviews language for possible changes, they also can consider ways to speed the process. In response to a question, he estimated the hearing for Kris Wise's disability pension application will not be scheduled for at least two months due to the volume of information related to the case. Attorney Klausner said motions to schedule a hearing to consider a disability pension application should include language directing Fund counsel to hire an attorney to serve as advocate, representing the Plan. Concern was expressed proposed language directs the PAC to obtain Fund counsel advise before it hires an advocate. Staff will forward marked and clean copies of the Policies and Procedures Manual to committee members prior to the September meeting; the document will be placed on the agenda for discussion and approval. 7. Director's Reports Pension Advisory Committee 8/8/2013 3 Mr. Roseto reviewed City policy related to the Sunshine Law; City Council and advisory board members are not to communicate with other members via email but instead should forward information to their liaisons for dissemination to other members. Discussion ensued with concern expressed that the policy does not have to be followed as it is more restrictive than the Sunshine Law. It was stated to avoid crossing any line and possibly creating a public perception of impropriety, it is easier to follow City policy when distributing information. Mr. Roseto said members cannot abstain from a vote unless a Conflict of Interest exists. Attorney Klausner said members can vote for their retirement pensions as a normal course of committee duties but if a committee member's disability pension application is considered, that member should leave the dais and not participate in discussions nor vote. 8. Committee Members to be Heard: None. 9. Adjourn The meeting adjourned at 10:08 a.m. Chair Pension Advisory Committee Pension Advisory Committee 8/8/2013 4