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06/03/1996 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING June 3, 1996 The City Commission, meeting as the Board of Trustees of the Employees' Pension Fund, met in regular session at City Hall, Monday, June 3, 1996 at 9:46 A.M., with the following members present: Rita Garvey Chairperson J. B. Johnson Trustee Robert Clark Trustee Ed Hooper Trustee Karen Seel Trustee Also Present were: Elizabeth M. Deptula City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk ITEM #2 - Minutes: Trustee Johnson moved to approve the minutes of the May 13, 1996, 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 the employee(s) listed below: a) Leman Adams b) Thomas Carrick c) Christopher Corino d) Joseph Egger e) John Griffiths f) Christopher Housholder g) Tim Hulbert h) Adrienne Kendrick i) Theodore Miller j) Dawn Musick k) Robert Orton l) Lori Pratt m) Kurt Rodriguez n) Tereasa Roose o) Tanya Smith p) Shawn Stafford q) Charles Wilson Trustee Hooper moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ITEM #4 - Request for Pension: The City Manager presented the recommendation of the Pension Advisory Committee that George Odishoo be granted a regular pension under Section(s) 2.393 and 2.397 of the Employees' Pension Plan. George Odishoo was employed on September 22, 1970, and his pension service credit is effective on that date. His retirement was effective on May 1, 1996. Mr. Odishoo's pension was approved by the PAC on May 9, 1996. Section 2.393 (p) provides for normal retirement eligibility when a participant has completed twenty years of credited service in a type of employment described as “hazardous duty” and further specifically defines service as a Firefighter as meeting the hazardous duty criteria. Based on an average salary of approximately $38,179 over the past five years, the formula for computing regular pensions, and Mr. Odishoo’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $26,622 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $333,328. The estimated pension cost (cash payout over the life of the pensioner and his beneficiary) is $789,775. Chairperson Garvey questioned the need for the calculation of the cost in the agenda item. In response to a question, H. M. Laursen, Human Resources Director, indicated the actuary provides information regarding the needed funding for the pension plan. He also indicated calculating the cost figures requires a significant amount of staff time. Trustee Hooper moved to eliminate the financial information from the rgular pension agenda items. The motion was duly seconded and carried unanimously. Trustee Hooper moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ITEM #5 - Other Business: a) Report re non-job-connected disability pension for Walter J. Blanks by the PAC On May 9, 1996, the PAC approved a non-job-connected disability pension for Mr. Walter Blanks. Pursuant to Section 2.394(e)(1)(G) and 2.397(c)(2) of Ordinance #5890-95, the PAC is authorized to investigate and determine the eligibility of participants for disability pension and to grant final approval. Mr. Blanks was employed on September 26, 1974, and began participating in the Pension Plan on March 26, 1975. His resignation date was May 20, 1996. Mr. Blanks’ pension was approved by the PAC based on his disability which is described as end stage renal disease. Mr. Blanks is a candidate for a kidney transplant, and the PAC determined his current condition precludes him from performing his current job (Equipment Operator III, Public Works Department) or any alternate work assignment for the City. The PAC did note Mr. Blanks might be able to return to the City in some capacity following a successful kidney transplant. His medical status is documented by letters from doctors, Jerry M. Littlefield of Suncoast Internal Medicine Consultants, James E. Lett, of Diagnostic Clinic, and Steven Schwartz. Mr. Littlefield states Mr. Blanks “... is medically disabled and unable to continue his work as a heavy equipment operator (and) It is unlikely there will be any substantial change in his condition until he receives a kidney transplant ...”; Mr. Lett relates, “Based on my observations with the patient’s kidney specialist and evaluation of his current medical status compared to the demands of his job, I feel he requires total and permanent disability”; and Mr. Schwartz states, “Mr. Blanks requires four dialysis exchanges every day ... In view of the above, it is my belief he would require total and permanent disability”. Based on an average salary of approximately $30,564 over the past five years, the formula for computing non-job-connected disability pensions, and Mr. Blanks’ selection of the 100% Joint & Survivor Annuity, this pension will approximate $17,460 annually. Charts from Finance which take into consideration mortality rates and age reflect the "present value cost of financing" this pension will be approximately $230,421. The estimated pension cost (cash payout over the life of the pensioner and his beneficiary) is $576,045. Trustee Seel questioned how this benefit differed from a regular pension. H. M. Laursen reported the non-job-connected disability pension is based on the same formula as a regular pension. However, due to his disability, Mr. Blanks is retiring a couple of years earlier than he would be able to under the regular pension. In response to a question, Mr. Laursen indicated a person has to be in the plan at least 10 years before they can get a non-job-connected disability pension. ITEM #6 - Adjournment: - 9:51 a.m.