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05/08/2014 PENSION ADVISORY COMMITTEE MEETING MINUTES CITY OF CLEARWATER May 8, 2014 Present: Chair Nathan Hightower, Committee Member Tom Jensen, Committee Member/Councilmember Bill Jonson, Committee Member/Councilmember Doreen Hock-DiPolito, Committee Member Bill Renfroe, Committee Member/Councilmember Hoyt Hamilton Absent: Vice-Chair Daniel Slaughter 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 April 10, 2014 Pension Advisory Committee meeting as submitted in written summation. Member Jonson 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 John Coombs, Gas Department, Vincent Mohr, Police Department, Allen Stidham, Parks and Recreation Department, and Robert Tellone, Fire Department, for a regular pension as provided by Sections 2.416 and 2.424 of the Employees Pension Plan. John Coombs, Gas Technician II, Gas Department, was employed by the City on December 13, 1993 and his pension service credit is effective on that date. His pension will be effective June 1, 2014. Based on an average salary of approximately $45,963.69 over the past five years, the formula for computing regular pensions and Mr. Coomb's selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $24,180 annually. Vincent Mohr, Communications Supervisor, Police Department, was employed Pension Advisory 5/8/2014 1 by the City on October 12, 1987 and his pension service credit is effective on that date. His pension will be effective on August 1, 2014. Based on an average salary of approximately $56,871.99 over the past five years, the formula for computing regular pensions and Mr. Mohr's selection of the 10 Year Certain and Life Annuity with a 30% Lump Sum Distribution, this pension benefit will be approximately $28,992.36 annually. Allen Stidham, Parks Service Supervisor I, Parks and Recreation Department, was employed by the City on November 4, 1991 and his pension service credit is effective on that date. His pension will be effective June 1, 2014. Based on an average salary of approximately $48,762.39 over the past five years, the formula for computing regular pensions and Mr. Stidham's selection of the 50% Joint and Survivor Annuity, this pension benefit will be approximately $31,800.48 annually. Robert S. Tellone, Fire Medic Lieutenant, Fire Department, was employed by the City on September 28, 1987 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 $97,540.73 over the past five years, the formula for computing regular pensions and Mr. Tellone's selection of the Single Life Annuity, this pension benefit will be approximately $75,387.84 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. Messrs. Coombs, Mohr, and Stidham 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. Tellone has met the hazardous duty criteria. Pension Advisory 5/8/2014 2 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 employees James Keller, Fire Department, Oliver Matthews, Solid Waste and General Services Department and Marco Ortega, Parks and Recreation Department, to vest their pensions as Provided by Section 2.419 of the Employees Pension Plan. James Keller, Fire Inspector II, Fire Department, was employed by the City on March 22, 2004, and began participating in the Pension Plan on that date. Mr. Keller terminated from City employment on April 19, 2014. Oliver Matthews, Solid Waste Worker, Solid Waste and General Services Department, was employed by the City on June 27, 1994 and began participating in the Pension Plan on that date. Mr. Oliver terminated from City employment on April 5, 2014. Marco Ortega, Heavy Equipment Operator, Parks and Recreation Department, was employed by the City on September 12, 1998 and began participating in the Pension Plan on that date. Mr. Ortega terminated from City employment on April 17, 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. Messrs. Matthews and Ortega will meet the non- Pension Advisory 5/8/2014 3 hazardous duty criteria and begin collecting pensions in July 2014 and October 2018, respectively. 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. Keller will meet the hazardous duty criteria and begin collecting pension in August 2015. Member Hamilton 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. Pension Name, Job. Class, & Dept./Div Eligibility Date John Devore, Stormwater Technician I, Public Utilities Department 04/07/2014 David Morris, Wastewater Operator Trainee, Public Utilities Dept 04/07/2014 Jason Flathman, Custodian, Police Department 04/21/2014 Michael Scanlon, Equipment Operator, Parks and Recreation Dept 04/21/2014 Stephen Cross, Electronics Technician, Public Utilities Department 04/21/2014 John Chadwick, Waste Water Trtmt Plant Op Trainee, Pub Util Dept 04/21/2014 John Phipps, Waste Wtr Trtmt Plant Op Trainee, Public Utilities Dept 04/21/2014 Erik Barber, Stormwater Technician I, Public Utilities Department 04/21/2014 Kevin Muscarella, Waste Wtr Trtmt Plant Op Trainee, Pub Util Dept 04/21/2014 David Lawrence, Firefighter, Clearwater Fire and Rescue Dept 04/21/2014 Ryan Bessler, Firefighter, Clearwater Fire and Rescue Department 04/21/2014 Andrew Eddinger, Firefighter, Clearwater Fire and Rescue Dept 04/21/2014 Michael Billian, Firefighter, Clearwater Fire and Rescue Department 04/21/2014* Michael Jaso, Firefighter, Clearwater Fire and Rescue Department 04/21/2014 Simeon Johnson, Firefighter, Clearwater Fire and Rescue Dept 04/21/2014 Victoria Martin, Firefighter, Clearwater Fire and Rescue Department 04/21/2014 Collin Ettienne, Firefighter, Clearwater Fire and Rescue Department 04/21/2014 *Mr. Billian is transferring from a non-hazardous duty position to a hazardous duty position. He originally was hired in the Fleet/General Services Department on 3/17/2008 and was approved to be in the pension plan at that time, but now will need to meet the hazardous duty criteria in order to retire from the City under hazardous eligibility requirements. Pension Advisory 5/8/2014 4 Member Renfroe moved to approve Item 6.1. The motion was duly seconded and carried unanimously. 7. Pending/New Business 7.1 PAC Procedures and the Pension Ordinance state that the board shall annually elect members to serve as Chair and Vice Chair. Member Hamilton moved to reappoint Nathan Hightower as Chair. The motion was duly seconded and carried unanimously. Member Renfroe moved to reappoint Daniel Slaughter as Vice-Chair. The motion was duly seconded and carried unanimously. 7.2 Set hearing date for Jeff Gifford for non-mob-connected disability pension. Human Resources Director Joe Roseto reviewed Jeff Gifford's application for a non-job- connected disability pension and requirements of the Code. None of the listed exclusions applied. There was no meaningful work available for him and no expectation that Mr. Gifford would return to work from his extended absence. The IME (Independent Medical Exam) determined that Mr. Gifford was totally and permanently disabled. The City did not contest the application, which met all criteria of the Code. Member Jensen moved to accept into evidence the entire file, inclusive of the personnel file, interrogatories, medical records, and the IME. The motion was duly seconded and carried unanimously. Member Hamilton moved that Jeff Gifford was eligible for a disability pension as he was disabled due to a non-job-connected sickness or injury, such disability was likely to be continuous and permanent from a cause other than those listed as general disability exclusions, and such disability rendered Mr. Gifford unable to perform any useful, meaningful, and necessary work for the employer in an available position for which the participant was reasonably qualified or for which the participant could be reasonably trained to perform. The motion was duly seconded and carried unanimously. The Committee extended their appreciation to Mr. Gifford for his service to the City and wished him well. 7.3 Formal hearing for Linda Leaghty for non-mob-connected disability pension Mr. Roseto reported Linda Leaghty had retained an attorney; the Plan's advocate and her attorney were conferring and not yet prepared for the hearing. The earliest the case could be scheduled was July. Pension Advisory 5/8/2014 5 Concerns were expressed that hand - written documents from Joseph C. Shanklin M.D. were unreadable and details at the bottom of some pages were missing. Mr. Roseto said staff had requested legible replacement copies. 8. Director's Reports Mr. Roseto reported the IME had not submitted his reevaluation of additional information provided him re Kris Wise's application for a job- connected disability. Consensus was that hearings for disability applications by Ms. Leaghty and Mr. Wise could be scheduled for the same meeting to expedite their cases. It was noted several members could not attend the July 10, 2014 meeting. Member Hamilton moved to reschedule the July Pension Advisory Committee meeting to July 8, 2014, at 9:00 a.m. The motion was duly seconded and carried unanimously. 9. Committee Members to be Heard: None 10. Adjourn The meeting adjourned at 9:19 a.m. Chair Pension Advisory Committee Pension Advisory 5/8/2014 6