06/13/2006
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TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES
CITY OF CLEARWATER
June 13, 2006
Present:
Frank Hibbard
Carlen Petersen
William C. Jonson
John Doran
Chair
Trustee
Trustee
Trustee
Absent:
Hoyt Hamilton
Trustee
Also Present:
William B. Horne, II
Garry Brumback
Pamela K. Akin
Cynthia E. Goudeau
Brenda Moses
City Manager
Assistant City Manager
City Attorney
City Clerk
Board Reporter
The Chair called the meeting to order at 1 :31 p.m. at City Hall.
To provide continuity for research, items are in agenda order although not necessarily
discussed in that order.
Approval of Minutes - May 30, 2006
Trustee Jonson moved to approve the minutes of the May 30,2006, meeting, as
recorded and submitted in written summation by the City Clerk to each Trustee. The motion
was duly seconded and carried unanimously.
Pension Trustee Items
Accept the employees listed into membership in the City of Clearwater Employees' Pension
Plan.
The PAC (Pension Advisory Committee) recommended the following employees be
accepted into membership in the City of Clearwater's Employees' Pension Plan: Jennifer Bass,
Carolyn Tellier, Anne Willis, Elizabeth Minor, Jesse Switek, Elizabeth Renfroe, Anthony Capria,
Shannon Winthrop, Danielle Smith, Leann Holbrook, Patricia Shields, Adam Kraft, and Michael
Hatch. Elizabeth Renfroe transferred from full-time to part-time and received refund of
contributions on October 15, 2006; transferred to full-time and pension eligible as of April 1,
2006.
Trustee Petersen moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
Alphonso Hinson. Parks & Recreation Department. be aranted a reaular pension under
Section(s) 2.393 and 2.397 of the Employees' Pension Plan as approved by the Pension
Advisorv Committee.
Alphonso Hinson, Recreation Supervisor I, Parks & Recreation Department, was
employed by the City on September 8, 1970, and his pension service credit is effective on June
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7,1977. His pension will be effective August 1, 2006. Based on an average salary of
approximately $49,011 per year over the past five years, the formula for computing regular
pensions, and Mr. Hinson's selection of the 100% Joint & Survivor Annuity, this pension will
approximate $38,374 annually. This pension was approved by the PAC on May 11, 2006.
Section 2.393 provides for normal retirement eligibility when a participant has reached age 55
and completed twenty years of credited service, has completed thirty years of credited service,
or has reached age 65 and completed ten years of credited service. Mr. Hinson qualifies under
the age 55 and twenty years of service criteria.
Trustee Doran moved that Alphonso Hinson, Recreation Supervisor I, Parks &
Recreation Department, be granted a regular pension under Sections 2.393 and 2.397 of the
Employees' Pension Plan as approved by the Pension Advisory Committee. The motion was
duly seconded and carried unanimously.
Adopt the Administrative Rule Governino Annual Certification of Pension Entitlement.
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Under provisions of Section 2.394 of the City of Clearwater Employee's Pension Plan,
the Board of Trustees has jurisdiction over control, management, operation and administration
of the Plan. Section 2.394 (h)(1) specifically authorizes the Trustees to "establish rules and
procedures as are necessary to administer the Plan, which rules and procedures shall be
applied in a uniform and non-discriminatory manner." The foremost purpose of the Pension
Fund is to pay retirement benefits to members of the Fund and their beneficiaries and the
Board of Trustees must ensure that the proper amount is being paid. To fulfill this fiduciary
duty, the Board of Trustees has determined that it is necessary for Plan members and/or their
beneficiaries to submit an annual certification of their entitlement to a retirement benefit from
the Pension Fund. Counsel to the Board has recommended the Board adopt the administrative
rule in this regard.
In response to a question, Human Resources Director Joe Roseto said this rule also
ensures that pensioners or beneficiaries are alive and not employed in similar jobs for which
they are receiving disability benefits.
Trustee Jonson moved to approve adopting the Administrative Rule governing Annual
Certification of Pension Entitlement. The motion was duly seconded and carried unanimously.
Aporove an expenditure not to exceed $25.000 for the law firm of Klausner & Kaufman, PA. to
rewrite the current Pension Plan ordinance.
City staff has requested that the law firm of Klausner & Kaufman, PA, rewrite the current
pension ordinance to simplify the language and clarify provisions of the Pension Plan. In
addition, there are other changes needed to maintain compliance with current and pending
Internal Revenue Code Regulations affecting public plans, as well as compliance with
provisions of Florida Statutes. The City will be charged an hourly rate of $285 for all work
performed relating to the rewrite, including all drafting, attendance at any required City Council
meetings, and any related work. The project cost will not exceed $25,000. Therefore, once the
hourly charges reach this amount, no further fees will be incurred by the City of Clearwater for
this project.
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Trustee Doran moved to approve an expenditure not to exceed $25,000 for the law firm
of Klausner & Kaufman, PA, to rewrite the current Pension Plan ordinance. The motion was
duly seconded.
In response to a question, Mr. Roseto said, as the Administrator of the Pension Plan, he
requested the rewrite to resolve confusing and ambiguous language. He said no changes that
must be negotiated with the employee unions are anticipated. All changes to the pension plan
require referendum approval.
Upon the vote being taken, the motion carried unanimously.
Other Business - None.
Adiourn
The meeting adjourned at 1 :38 p.m.
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"Gt18ir, Pension Trustees
Attest:
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