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04/10/2014 PENSION ADVISORY COMMITTEE MEETING MINUTES CITY OF CLEARWATER April 10, 2014 Present: Chair Nathan Hightower, Vice-Chair Daniel Slaughter, Committee Member Tom Jensen, Committee Member/Councilmember Bill Jonson, Committee Member Bill Renfroe, Committee Member/Councilmember Hoyt Hamilton Absent: Committee Member/Councilmember Doreen Hock-DiPolito Also present: 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. Employees/Citizens to be Heard: None. 3. Approval of Minutes 3.1 Approve minutes of March 13, 2014 Pension Advisory Committee meeting as submitted in written summation. Member Slaughter moved to approve Item 3.1. The motion was duly seconded and carried unanimously. 4. Review and Action on Employee Requests for Regular Pension 4.1 Recommend approval of the following request of employees Luis Acosta, Public Utilities Department; Michael Faulkner, Fire Department; and Linda Myers, Finance Department for a regular pension as provided by Sections 2.416 and 2.424 of the Employees Pension Plan. Luis Acosta, Utilities Chemist, Public Utilities Department, was employed by the City on May 30, 1989 and his pension service credit is effective on that date. His pension will be effective May 1, 2014. Based on an average salary of approximately $52,580.06 over the past five years, the formula for computing regular pensions and Mr. Acosta's selection of the 75% Joint and Survivor Annuity, this pension benefit will be approximately $35,831.16 annually. Michael Faulkner, Fire Lieutenant, Fire Department, was employed by the City on September 8, 1992 and his pension service credit is effective on that date. Pension Advisory 4/10/2014 1 His pension will be effective on April 1, 2014. Based on an average salary of approximately $87,248.49 over the past five years, the formula for computing regular pensions, Mr. Faulkner's selection of the 10 Year Certain and Life Annuity and a 30% partial lump sum distribution, this pension benefit will be approximately $36,180 annually. Linda Myers, Accountant, Finance Department, was employed by the City on July 12, 1976 and her pension service credit is effective on that date. Her pension will be effective May 1, 2014. Based on an average salary of approximately $47,816.69 over the past five years, the formula for computing regular pensions and Ms. Myers' selection of the 50% Joint and Survivor Annuity, this pension will be approximately $51,894.72 annually. 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 fifty-five (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. Mr. Acosta and Ms. Myers have met 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 (20) years of credited service regardless of age, or the date on which the participant has reached fifty- five (55) years and completed ten (10) years of credited service. Mr. Faulkner has met the hazardous duty criteria. Member Jensen moved to approve Item 4.1. The motion was duly seconded and carried unanimously. 5. Review and Action on Employee Requests to Vest Pensions 5.1 Recommend approval of the request of employee Elizabeth Pearce, Parks and Recreation Department, to vest her pension as provided by Section 2.419 of the Employees Pension Plan. Pension Advisory 4/10/2014 2 Elizabeth Pearce, Aquatic Programmer, Parks and Recreation Department, was employed by the City on November 20, 1999, and began participating in the Pension Plan on that date. Ms. Pearce terminated from City employment on March 19, 2014. 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 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 fifty-five (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. Pearce will meet the non-hazardous duty criteria and begin collecting a pension in December 2019. Member Jonson moved to approve Item 5.1. The motion was duly seconded and carried unanimously. 6. Approval of New Hires as Plan Members: 6.1 Recommend approval of the new hires for acceptance into the Pension Plan as listed. Name, Job Class, & Dept./Div. Pension Eligible Date Alioune Fall, Meter Reader, Customer Service Department 3/10/2014 Reynold Choo Chew, Accounting Technician, Parks and Rec Dept 3/10/2014 Victor Rosado, Solid Waste Equip. Oper., Solid Waste/Gen Svcs 3/10/2014 John Conyers, Water Plant Operator A, Public Utility Department 3/10/2014 Karla Maffia, Customer Service Representative, Customer Svc Dept 3/10/2014 Caleb Holman, Parks Service Tech I, Parks and Recreation Dept 3/10/2014 Scott Ehlers, Fire Division Chief Emergency Manager, Fire Dept. 3/17/2014 Steve Murphy, Building Construction Inspector, Planning/Dev Dept 3/24/2014 Pension Advisory 4/10/2014 3 Sean Blout, Wastewater Plant Operator C, Public Utilities Dept 3/24/2014 Peter Johnson, Field Service Representative, Customer Svc Dept 3/24/2014 Member Renfroe moved to approve Item 6.1. The motion was duly seconded and carried unanimously. 7. Director's Reports Human Resources Director Joe Roseto said the Plan's advocate had not completed work re Linda Leaghty's disability pension hearing, scheduled for May 8, 2014. Mr. Roseto will email Committee members prior to the May meeting and report if the case will be heard in May or need to be rescheduled. Re Kris Wise's disability pension reapplication, Mr. Roseto said Mr. Wise's attorney was requested to send his records to the Plan's attorney. The records will be forwarded to the IME (Independent Medical Exam) physician for reevaluation. Once the City receives the IME opinion, the Committee can schedule a preliminary hearing. Mr. Roseto said the Employees' Pension Plan Investment and Actuary reports will be presented to the Pension Trustees on April 14, 2014. Finance Director Jay Ravins reported the Plan's investment performance last year was 16.9% net of fees. 8. Committee Members to be Heard Chair Hightower welcomed Member Hamilton. Member Jensen requested information re upcoming PAC (Pension Advisory Committee) election. 9. Adjourn The meeting adjourned at 9:05 a.m. Chair Pension Advisory committee Pension Advisory 4/10/2014 4