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09/12/1997TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING CITY OF CLEARWATER September 2, 1997 Rita Garvey Chair J. B. Johnson Trustee Robert Clark Trustee Ed Hooper Trustee Karen Seel Trustee Michael J. Roberto City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Patricia O. Sullivan Board Reporter The Chair called the meeting to order at 9:00 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. ITEM #2 - Approval of Minutes Trustee Johnson moved to approve the minutes of the August 18, 1997, meeting, as recorded and submitted in written summation by the City Clerk to each Trustee. 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 employees listed below: a) John Stone b) Thomas Arruda c) David Laatsch d) Duanne Anderson e) John Memmer f) Darrell Folk g) Sherry Cason h) Richard Kelly i) Tania Alich j) David Derrick k) Jason Deary l) Adam Weinberg m) Christian Zarra n) William Gallagher o) Joseph DeBose p) John Chatman Trustee Clark 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 PAC (Pension Advisory Committee) that Robert Bekker, Paul Reese, Jr., David Hawkins, and Willie Marcus be granted regular pensions under Section(s) 2.393 and 2.397 of the Employees' Pension Plan. Robert Bekker was employed on August 9, 1971, and his pension service credit is effective on that date. His pension will be effective on July 1, 1998. Based on an average salary of approximately $60,334 per year over the past 5 years, the formula for computing regular pensions, and Mr. Bekker’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $43,976 annually. Paul Resse, Jr. was employed on January 14, 1974, and his pension service credit is effective on that date. His retirement will be effective on August 1, 1997. Based on an average salary of approximately $52,460 per year over the past 5 years, the formula for computing regular pensions, and Mr. Reese’s selection of the 100% Joint & Survivor Annuity, this pension will approximate $33,126 annually. David Hawkins was employed on October 10, 1977, and his pension service credit is effective on that date. His retirement will be effective on February 1, 1998. Based on an average salary of approximately $51,588 per year over the past 5 years, the formula for computing regular pensions, and Mr. Hawkins’ selection of the 100% Joint & Survivor Annuity, this pension will approximate $28,134 annually. On August 14, 1997, the PAC approved pensions for Messrs. Bekker, Reese, and Hawkins. Section 2.393 (p) provides for normal retirement eligibility when a participant has completed 20-years of credited service in a type of employment described as “hazardous duty,” and further specifically defines service as a Police Lieutenant, Police Officer, and Fire District Chief as meeting the “hazardous duty” criteria. Willie Marcus was employed on October 16, 1972, and his pension service credit is effective on that date. His retirement was effective on September 1, 1997. Based on an average salary of approximately $22,381 per year over the past 5 years, the formula for computing regular pensions, and Mr. Marcus’ selection of the 50% Joint & Survivor Annuity, this pension will approximate $16,104 annually. On August 14, 1997, the PAC approved a pension for Mr. Marcus. Section 2.393 (p) provides for normal retirement eligibility when a participant has reached age 55 and completed 20-years of credited service or has completed 30-years of credited service. Mr. Marcus qualifies under the age 55 and 20-years of service criteria. Trustee Hooper moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ITEM #5 - Request to Vest Pension: The City Manager presented the recommendation of the Pension Advisory Committee that David C. Watson be allowed to vest his pension under Section(s) 2.397 and 2.398 of the Employees' Pension Plan David C. Watson was employed on January 31, 1983, and his pension service credit is effective on that date. Mr. Watson resigned from City employment effective August 1, 1997, at which time he had approximately 14-years of service and pension participation. The Employee’s Pension Plan provides that employees, who cease being employees of the City after completing 10 or more years of creditable service (pension participation), shall acquire a vested interest in the retirement benefits. Vested pension payments commence at the time an employee normally would have been eligible for retirement. Mr. Watson would have completed 20-years of service on January 31, 2003, in a hazardous duty position. On August 14, 1997, the PAC approved his request to vest his pension which will be effective February 1, 2003. Trustee Johnson moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. ITEM #6 - Approve recommended administrative expenditure budget for Pension Plan for FY 1997/98, and authorize expenditure of funds Upon approval of the recommended administrative expenditure budget for the City of Clearwater Employees’ Pension Plan, proposed expenditures can be paid with appropriate management review. All other expenditures require Trustee approval. Money Manager, Safekeeping Service, Pension Administrator, and Actuary fees are set by contracts approved by the Trustees. Funds budgeted for travel and training will cover expenses for Pension Investment Committee members to attend the Callan Institute, visit Callan, the Pension Plan’s performance measurement firm, and stop by one of the money managers. This year’s trip to the Institute resulted in a fee reduction for one Plan money manager, saving $26,797.33 for the quarter ending June 30, 1997. Printing and Binding expenses cover the distribution of annual information to Pension Plan members. Medical Bills expenses cover PAC authorized medical services. General Fund Reimbursement (010) covers Plan oversight and issuing pension checks. Other Current Charges cover small items, such as name plates. As of June 30, 1997, the Employee’s Pension Plan has assets (investments) totaling $335-million (market value). Deputy City Manager Kathy Rice reported the PAC had not approved transferring the cost of post-employment offer physicals from the City to the Pension Plan. As the physicals are beneficial to both the City and Pension Plan, some PAC members had suggested this cost should be shared. The proposed budget does not include the cost of post-employment offer physicals. If the PAC approves some of these costs, the budget will be amended. Trustee Johnson to approve the recommended administrative expenditure budget for the City of Clearwater Employees’ Pension Plan, and authorize the expenditure of funds. The motion was duly seconded and carried unanimously. ITEM #7 - Other Business - None. ITEM #8 - Adjournment: The meeting adjourned at 9:04 a.m.