01/29/1990 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
January 29, 1990
The City Commission, meeting as the Board of Trustees of the Employees Pension Fund, met in regular session at City Hall, Monday, January 29, 1990 at 9:01 A.M., with the following members
present:
Rita Garvey Chairperson
Lee Regulski Trustee
Don Winner Trustee
William Nunamaker Trustee
Richard Fitzgerald Trustee
Also Present were:
Ron H. Rabun City Manager
Milton A. Galbraith, Jr. City Attorney
Cynthia E. Goudeau City Clerk
ITEM #2 - Minutes:
Trustee Fitzgerald moved to approve the minutes of the January 16, 1990, meeting. The motion was duly seconded and carried unanimously.
ITEM #3 - Request for Acceptance into Membership:
The City Manager presented the recommendation of the Pension Advisory Committee to approve membership for Albert Gryncewicz.
Concerns were expressed regarding the potential of Mr. Gryncewicz suffering another stroke and the fact he continues to smoke.
Trustee Regulski moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded. Upon the vote being taken Trustees Regulski, Winner, Fitzgerald
and Garvey voted "Aye"; Trustee Nunamaker voted "Nay". Motion carried.
ITEM #4 - Request for Acceptance into Membership:
The City Manager presented the recommendation of the Pension Advisory Committee to approve membership for Charles Maybin.
Trustee Winner moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously.
ITEM #5 - Request for Pension:
The City Manager presented the recommendation of the Pension Advisory Committee that the employee(s) listed below be granted a regular pension under Section 26.34 and/or 26.37 of the
Employees' Pension Plan.
a) Robert A. Baker
b) Stuart L. Williams, Jr.
Trustee Regulski moved to grant the regular pensions as recommended by the Pension Advisory Committee. The motion was duly seconded and carried unanimously.
ITEM #6 - Other Business:
6 a) Request to join Pension Plan - Linda Mielke
The Pension Advisory Committee determined that since Linda Mielke is an unclassified employee, the Trustees are the appropriate entity to address the question of whether an unclassified
employee shall be deemed as a permanent employee for the purpose of being eligible to join the pension plan. Its recommendation is that the Trustees review the request and take appropriate
action. Staff recommendation is that unclassified employees should not be deemed permanent employees for the purpose of participation in the pension plan. Section 2.45 of the pension
plan includes a provision that the Trustees shall have the right to determine, from time to time, which employees are permanent employees provided however that all employees covered
by civil service shall be considered permanent.
On November 13, 1989, Linda Mielke, an unclassified employee of the City of Clearwater submitted a memorandum to the Personnel Director requesting a determination of whether her exclusion
from the pension plan was proper. Her request was submitted to the Pension Advisory Committee at its meeting of December 6, 1989 and it was the consensus of the Committee that this
issue should be addressed by the Trustees. Staff is concerned whether it would be appropriate to designate a single unclassified employee as a permanent employee for pension purposes
without making the designation for other similarly situated unclassified employees. A general across the board designation would effectively require all existing unclassified employees
to participate in the pension plan subject to passing the required examination. Such a requirement might adversely impact many current unclassified employees who are covered by Social
Security and have not yet completed eligibility requirements for this program.
Historically, unclassified employees have not been considered permanent employees for the purpose of participating in the employees pension plan except for those initially in the plan
by virtue of first being a classified civil service employee who later promoted into the unclassified service. Unclassified employees of the City who are not in the pension plan receive
a 6% contribution to the ICMA deferred compensation program.
Discussion ensued regarding whether or not unclassified employees should be excluded from the pension plan. It was indicated that if it was the decision to allow Ms. Mielke, or any
other unclassified employee, into the pension plan, the 6% contribution to ICMA would be discontinued. It was pointed out that admitting unclassified employees to the pension plan now
would mean the plan accepting liability of non-job connected disability for those individuals and this has not been taken into account. Ms. Mielke indicated that while she is happy
with the ICMA contribution and her social security contribution, she felt admitting her into the pension plan would cost her, as well as the City less. It was indicated the City contribution
to the pension plan is approximately 13% and that the City's 6% contribution to ICMA coupled with the social security contribution would be about the same. If this change is made it
should be blanket and not just for one person. Legal information is also needed.
Trustee Winner moved to continue this item to allow staff to compile additional information regarding financial and legal impacts. The motion was duly seconded and carried unanimously.
6 b) Process for Conducting Elections for Pension Advisory Committee
Past elections for the Pension Advisory Committee have been held on a designated day established by the PAC or an elections committee appointed by the PAC. All the process of nomination
and campaigning has been established and accepted. The actual election process has been fragmented and difficult for the elections committee to administer. Concerns with location of
a polling place, prohibitions against voting on City time, prohibitions and/or control of City
vehicles being used to transport voters from job site to the polling place, availability of poll workers from employee groups, etc. have all been problems from time to time. The PAC
requested the City Clerk meet with them to discuss how to improve the election process.
The City Clerk met with the PAC at its meeting of December 6, 1989 and it was the consensus of the PAC that the suggestion of a mail ballot would resolve the problems experienced in
the past. Implementation of this process would provide that ballots be mailed to all employees eligible to vote. Such mailing would either be through the city inner-office mail or
to the employees home address. There would be a deadline for return of the ballots and the City Clerk would handle the process and counting. The process would be similar to that used
for absentee balloting in regular elections. The City Clerk indicated that appropriate safeguards would be taken to ensure that only those eligible to vote were voting and there would
not be duplicate ballots.
Trustee Regulski moved that the City Clerk be authorized to conduct future elections for the Pension Advisory Committee through a mail ballot process. The motion was duly seconded
and carried unanimously.
6 c) Appointment of Actuary for 1990 & 1991 valuations
Two years ago, the Trustees authorized staff to undertake a RFP to select an actuary to perform the required annual actuary valuation. A review committee consisting of the finance
director, assistant finance director, cash and investments manager, payroll services manager and a representative from the PAC unanimously recommended the appointment and Coopers & Lybrand
for a two year contract for a total fee of $25,000.00. Coopers & Lybrand have been very responsive and cooperative. When this years valuation produced a higher than expected contribution
they spent considerable additional time reviewing the calculations and the data, all at no additional charge to the City. The proposal for a two year contract at $13,000.00 each year
represents only a $500.00 annual increase over the initial proposal and still compares favorably to the other proposals received two years ago. The City has been very pleased with the
service Coopers & Lybrand have provided to date and recommend approval of an additional two year appointment.
Trustee Regulski moved to approve a two year appointment of Coopers & Lybrand to perform the actuary valuations for the general employees pension plan as of January 1, 1990 and January
1, 1991 for a fee not to exceed $13,000.00 each year and that the appropriate officials be authorized to execute same.
The motion was duly seconded and carried unanimously.
ITEM # 7 - Adjournment:
The meeting adjourned at 9:30 A.M.