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06/16/2014Monday, June 16, 2014 1:00 pm City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 Council Chambers Pension Trustees Meeting Agenda June 16, 2014Pension Trustees Meeting Agenda 1. Call To Order 2. Approval of Minutes 2.1 Approve the minutes of the May 12, 2014 Pension Trustees meeting as submitted in written summation by the City Clerk. 3. Citizens to be Heard Regarding Items Not on the Agenda 4. New Business Items 4.1 Approve the new hires for acceptance into the Pension Plan as listed. 4.2 Approve the following 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. 4.3 Approve 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. 6. Adjournment Page 2 City of Clearwater Printed on 6/11/2014 Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#14-238 Agenda Date: 6/16/2014 Status: Agenda ReadyVersion: 1 File Type: MinutesIn Control: Pension Trustees Agenda Number: 2.1 SUBJECT/RECOMMENDATION: Approve the minutes of the May 12, 2014 Pension Trustees meeting as submitted in written summation by the City Clerk. SUMMARY: N/A APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 1 City of Clearwater Printed on 6/11/2014 Pension Trustees Meeting Minutes May 12, 2014 Page 1 City of Clearwater City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 Meeting Minutes Monday, May 12, 2014 1:00 pm Pension Trustees Pension Trustees Meeting Minutes May 12, 2014 Page 1 City of Clearwater Present 5 - Chair George N. Cretekos, Trustee Doreen Hock-DiPolito, Trustee Hoyt Hamilton, Trustee Bill Jonson, and Trustee Jay E. Polglaze Also Present: William B. Horne II - City Manager, Jill S. Silverboard - Assistant City Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk, Nicole Sprague - Official Records and Legislative Services Coordinator To provide continuity for research, items are listed in agenda order although not necessarily discussed in that order. Unapproved 1. Call To Order The meeting was called to order at 1:06 p.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the April 14, 2014 Pension Trustees meeting as submitted in written summation by the City Clerk. Trustee Jonson moved to approve the minutes of the April 14, 2014 Pension Trustees meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. 3. Citizens to be Heard Regarding Items Not on the Agenda - None. 4. New Business Items 4.1 Approve 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. 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 Pension Trustees Meeting Minutes May 12, 2014 Page 1 City of Clearwater 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 (January 1, 2013), 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 years of credited service; the date on which a participant has reached age sixty-five years and completed ten years of credited service; or the date on which a member has completed thirty 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 years and completed twenty-five years of credited service; or the date on which a participant has reached the age of sixty-five years and completed ten years of credited service. Ms. Pearce will meet the non-hazardous duty criteria and begin collecting a pension in December 2019. Trustee Hock-DiPolito moved to approve 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. The motion was duly seconded and carried unanimously. 4.2 Approve 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. 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. Pension Trustees Meeting Minutes May 12, 2014 Page 1 City of Clearwater Section 2.416 provides for normal retirement eligibility for non-hazardous duty employees hired prior to the effective date of this reinstatement (January 1, 2013), 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 years of credited service; the date on which a participant has reached age sixty-five years and completed ten years of credited service; or the date on which a member has completed thirty 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 years and completed twenty-five years of credited service; or the date on which a participant has reached the age of sixty-five years and completed ten 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 years of credited service regardless of age, or the date on which the participant has reached fifty-five years and completed ten years of credited service. Mr. Faulkner has met the hazardous duty criteria. Trustee Polglaze moved to approve 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. The motion was duly seconded and carried unanimously. 4.3 Obtain approval for the process to purchase of prior service pension credit for the Clearwater Fire and Rescue Chief and certain Assistant Chiefs and provide direction to staff. In 2005, the City began employing Assistant Fire Chiefs from outside the City. At the time, Section 2.393 of the Pension Ordinance excluded employees hired into contract positions (SAMP 4, 5, 6) from participation in the City's Employee Pension Plan. Because they were hired as contract employees, they were excluded from pension plan participation and enrolled in the City's 401A program established for similarly situated employees per the existing Pension Ordinance. The Pension Trustees approved at the August 13, 2012 Trustee meeting that all hazardous duty contract employees are eligible for participation in the City of Clearwater Employee Pension Plan and directed they be enrolled in the plan accordingly. This was done based on the Pension Plan Attorneys opinion that all firefighters and police officers must participate in the pension plan in order to comply with Chapters 175 and 185 of State Statute. The only exception being the Police Chief and Fire Chief who have the option to not participate in the plan. Pension Trustees Meeting Minutes May 12, 2014 Page 1 City of Clearwater The Trustees were also advised at the time by the City's Pension Plan Attorneys that the affected employees be permitted to purchase credited service in the Pension Plan retroactive to their dates of hire on a voluntary basis and that the City would have the option to require the employees to pay the full actuarial cost or to pay only what would have been their annual contribution for the amount of past service credit to be purchased. The attorneys also indicated that the employees would be permitted to roll over funds from their money purchase pension plan to pay for prior service credit. The City subsequently determined that in order to be entitled to purchase prior service, the employees would be required to contribution the equivalent of 15% of covered salary rather than the actuarial cost for each year or portion thereof that the employees wished to purchase prior service credit. The amount would provide for the normal employee pension contribution in effect at that time as well as the contributions the city made into a 401a plan on behalf of the employees from their date of hire. These contributions would be treated as employee contributions should any of these employees leave employment prior to vesting. In accordance with this approach, the City would make up the balance of the required contribution for the full actuarial cost of the service being purchased for each year. The affected employees were placed in the Employees' Pension Plan in September 2012 and were notified at that time of the process for purchasing prior service credit. They were also provided an estimate, by year, of the amount determined by the City to be required to purchase service credit. The decision to purchase prior service is voluntary. At this time, none of the eligible employees have purchased prior service credit. The 2012 Trustee decision directed that these employees be permitted to participate in the pension plan but did not approve the mechanism that would be used to purchase credit in 2012. The Plan Actuary was recently asked to determine what the actual actuarial cost to the City would be should each affected employee choose to purchase all service credit for which they are eligible. The total cost to the City at this time is $544,600. Therefore, the City recommends the Trustees direct the following: 1. That the affected employees be required to pay 15% of covered salary for every year or portion thereof of service credit they wish to purchase. 2. That the City makes up the difference between this amount and the actuarially calculated amount of the required contribution. (A separate agenda item approved by City Council will provide for this.) 3. That a deadline of 60 days from approval of this action be established to purchase such service credit since the actuarial calculated amount the City will be required to pay increases by approximately $7,000 per month. The City will make a separate contribution to the pension plan for the difference between the actuarially calculated cost and the 15% contribution by the employees. The City has consulted with the State Division of Retirements and they concur with this process and have indicated it complies with State Statute. Pension Trustees Meeting Minutes May 12, 2014 Page 1 City of Clearwater In response to questions, Human Resources Director Joe Roseto said the ten affected employees have been aware of the mechanism since 2012. None of the eligible employees has purchased prior credit. The City has been contributing 8% of salary to a 401a plan until the employees entered the pension plan. The employees are not being asked to buy back the entire 8%. Klausner, Kaufman, Jensen and Levinson attorney Stuart Kaufman said $537,000 is the maximum exposure to the City if all employees decide to buyback. The employees would sign a release waiving any rights. The employees can buyback a portion of their prior service to use toward pension credit. Mr. Roseto said the State Division of Retirements has reviewed the City's proposed process to purchase prior service pension credit and expressed no concerns. Employees who decide not to buyback prior pension credit would be covered by the provisions of the City's pension plan for public safety employees, as they were enrolled in the plan September 2012. Under the City's pension plan, public safety employees may retire at 20 years of service at any age; benefits are vested at ten years of service. The affected employees may use their 401a plan or 457 plan funds to purchase pension credit. Trustee Hamilton moved to approve the process to purchase prior service pension credit for the Clearwater Fire and Rescue Chief and certain Assistant Chiefs. The motion was duly seconded and carried unanimously. 4.4 Approve the new hires for acceptance into the Pension Plan as listed. Name, Job. Class, & Dept./Div.Pension Elig. Date Alioune Fall, Meter Reader, Cust Svc Dept.3/10/2014 Reynold Choo Chew, Accounting Technician, Parks and Rec Dept 3/10/2014 Victor Rosado, Solid Waste Equipment Oper, Solid Waste Dept 3/10/2014 John Conyers, Water Plant Operator A, Public Util Dept 3/10/2014 Karla Maffia, Customer Service Rep, Customer Svc Dept 3/10/2014 Caleb Holman, Parks Service Tech I, Parks and Rec Dept 3/10/2014 Scott Ehlers, Fire Division Chief Emergency Mgr, Fire Department 3/10/2014 Steve Murphy, Building Construction Insp, Planning and Dev Dept 3/10/2014 Sean Blout, Wastewater Plant Operator C, Public Util Dept 3/10/2014 Peter Johnson, Field Service Representative, Customer Svc Dept 3/10/2014 Trustee Jonson moved to approve the new hires for acceptance into the Pension Plan as listed. The motion was duly seconded and carried unanimously. Pension Trustees Meeting Minutes May 12, 2014 Page 1 City of Clearwater 5. Adjournment The meeting adjourned at 1:23 p.m. Chair Employees’ Pension Plan TrusteesAttest City Clerk Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#14-224 Agenda Date: 6/16/2014 Status: Agenda ReadyVersion: 3 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.1 SUBJECT/RECOMMENDATION: Approve the new hires for acceptance into the Pension Plan as listed. SUMMARY: Name, Job. Class, & Dept./Div.Pension Elig. Date John Devore, Stormwater Technician I, Public Utilities Department 04/07/2014 David Morris, Wastewater Operator Trainee , Public Utilities Department 04/07/2014 Jason Flathman, Custodian, Police Department 04/21/2014 Michael Scanlon, Equipment Operator, Parks and Recreation Department 04/21/2014 Stephen Cross, Electronics Technician, Public Utilities Department 04/21/2014 John Chadwick, Waste Water Trt Plant OpTrainee , Public Utilities Dept 04/21/2014 John Phipps, Waste Water Trt Plant Op Trainee, Public Utilities Dept 04/21/2014 Erik Barber, Stormwater Technician I, Public Utilities Department 04/21/2014 Kevin Muscarella, Waste Water Trt Plant OpTrainee , Public Utilities Dept 04/21/2014 David Lawrence, Firefighter, Clearwater Fire and Rescue Department 04/21/2014 Ryan Bessler, Firefighter, Clearwater Fire and Rescue Department 04/21/2014 Andrew Eddinger, Firefighter, Clearwater Fire and Rescue Department 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 Department 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 was originally hired in the Fleet/General Services Department on March 17, 2008 and was approved to be in the pension plan at that time, but will need to now meet the hazardous duty criteria in order to retire from the City under hazardous eligibility requirements. APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 1 City of Clearwater Printed on 6/11/2014 File Number: ID#14-224 Page 2 City of Clearwater Printed on 6/11/2014 Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#14-225 Agenda Date: 6/16/2014 Status: Agenda ReadyVersion: 2 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.2 SUBJECT/RECOMMENDATION: Approve the following 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. SUMMARY: 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 (January 1, 2013), a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of fifty-five years and completed twenty years of credited service; the date on which a participant has reached age sixty -five years and completed ten years of credited service; or the date on which a member has completed thirty 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 years and completed twenty-five years of credited service; or the Page 1 City of Clearwater Printed on 6/11/2014 File Number: ID#14-225 date on which a participant has reached the age of sixty -five years and completed ten years of credited service. Mr. Matthews and Mr. Ortega will meet the non -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 years of credited service regardless of age, or the date on which the participant has reached fifty -five years and completed ten years of credited service. Mr. Keller will meet the hazardous duty criteria and begin collecting pension in August 2015. APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 2 City of Clearwater Printed on 6/11/2014 Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#14-226 Agenda Date: 6/16/2014 Status: Agenda ReadyVersion: 2 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.3 SUBJECT/RECOMMENDATION: Approve 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. SUMMARY: 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. Coombs’ 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 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 (January 1, 2013), a member shall be Page 1 City of Clearwater Printed on 6/11/2014 File Number: ID#14-226 eligible for retirement following the earlier of the date on which a participant has reached the age of fifty-five years and completed twenty years of credited service; the date on which a participant has reached age sixty -five years and completed ten years of credited service; or the date on which a member has completed thirty 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 years and completed twenty -five years of credited service; or the date on which a participant has reached the age of sixty -five years and completed ten years of credited service. Mr. Coombs, Mr. Mohr, and Mr. 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 years of credited service regardless of age, or the date on which the participant has reached fifty -five years and completed ten years of credited service. Mr. Tellone has met the hazardous duty criteria . APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 2 City of Clearwater Printed on 6/11/2014