01/12/1998
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
January 12, 1998
Present: 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 1:08 p.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 December 1, 1997, meeting, as
motion
recorded and submitted in written summation by the City Clerk to each Trustee. The
carried
was duly seconded and 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) Roy Thomen
b) Kimberly Staggs
c) Diane Manni
d) Carol Barden
e) Gary Kepner
f) Michael Fabian
g) Anthony W. Hall
h) Lori Miller
i) Janet Roehrich
j) Candy Hansen
k) Tammy R. Clarke
l) Kimberly Espinosa
m) Russell Shawen
Trustee Johnson to accept the recommendation of the Pension Advisory Committee.
motioncarried
The was duly seconded and unanimously.
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ITEM #4 - 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) Lawrence Huffman
b) Sandra Lear
c) John Olson
d) Eugene Nyland
e) Kathleen McMullen
f) George Fatulitis
g) Rui Wang
Trustee Hooper to accept the recommendation of the Pension Advisory Committee.
motioncarried
The was duly seconded and unanimously.
ITEM #5 - Request for Pension:
The City Manager presented the recommendation of the Pension Advisory Committee
E. Ream Wilson, Fred Lloyd, Samuel Collie, Ozell George, Robert Papa, Ezell Hunt,
that
Leonard Gogola, and Joseph Pidala regular pensions
be granted under Section(s) 2.393
and 2.397 of the Employees' Pension Plan.
E. Ream Wilson
was employed on October 2, 1967, and his pension service credit is
effective April 2, 1968. His pension will be effective on April 1, 1999. Based on an average
salary of approximately $80,683 per year over the past 5 years, the formula for computing
regular pensions, and Mr. Wilson’s selection of the 100% Joint & Survivor Annuity, this pension
will approximate $67,129 annually.
Fred Lloyd
was employed on October 29, 1971, and his pension service credit is
effective April 29, 1972. His retirement will be effective on February 1, 1998. Based on an
average salary of approximately $34,500 per year over the past 5 years, the formula for
computing regular pensions, and Mr. Floyd’s selection of the Joint & Survivor Annuity, this
pension will approximate $24,399 annually.
Samuel Collie
was employed on March 26, 1968, and his pension service credit is
effective on that date. His retirement will be effective on April 1, 1998. Based on an average
salary of approximately $42,375 per year over the past 5 years, the formula for computing
regular pensions, and Mr. Collie’s selection of the Joint & Survivor Annuity, this pension will
approximate $34,962 annually.
Ozell George
was employed on January 17, 1966, 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 $41,456 per year over the past 5 years, the formula for
computing regular pensions, and Mr. George’s selection of the 50% Joint & Survivor Annuity,
this pension will approximate $37,452 annually.
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Robert Papa
was employed on November 8, 1971, 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 $42,931 per year over the past 5 years, the formula for
computing regular pensions, and Mr. Papa’s selection of the 50% Joint & Survivor Annuity, this
pension will approximate $32,380 annually.
Ezell Hunt
was employed on September 26, 1969, and his pension service credit is
effective on that date. His retirement will be effective on July 1, 1998. Based on an average
salary of approximately $33,452 per year over the past 5 years, the formula for computing
regular pensions, and Mr. Hunt’s selection of the Joint & Survivor Annuity, this pension will
approximate $26,522 annually.
Leonard Gogola
was employed on October 12, 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 $38,944 per year over the past 5 years, the formula for
computing regular pensions, and Mr. Gogola’s selection of the 100% Joint & Survivor Annuity,
this pension will approximate $21,236 annually.
Joseph Pidala
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 $62,782 per year over the past 5 years, the formula for
computing regular pensions, and Mr. Pidala’s selection of the 10-Year Certain & Life Annuity,
this pension will approximate $36,452 annually.
On November 13, 1997, the PAC (Pension Advisory Committee) approved Mr. Wilson’s
pension. On December 11, 1997, the PAC approved pensions for Messrs. Lloyd, Collie,
George, Papa, and Hunt. 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. Messrs. Wilson and Collie qualify under both criteria; Mr. George
qualifies under the 30-years of credited service criteria; and Mr. Hunt qualifies under the age
55 and 20-years of service criteria.
On December 11, 1997, the PAC approved pensions for Messrs. Gogola and Pidala.
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 Firefighter or Assistant Fire Chief as meeting the
hazardous duty criteria. Messrs. Gogola and Pidala qualify under the hazardous duty criteria.
Trustee Johnson to accept the recommendation of the Pension Advisory Committee.
motioncarried
The was duly seconded and unanimously.
Coopers & Lybrand
ITEM #6 - First Amendment to Agreement with to perform 1/1/98 Actuary
Valuation and Third Party Administrative Services during 1998 for pension plan, amount not to
exceed $25,550
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To assist with the conversion to a qualified pension plan, staff extended Coopers &
Lybrand’s contract for actuary services to include the 1996 and 1997 reviews. At that time, the
intention was to rebid the service for the 1998 review.
In 1996, staff determined other professional services were needed to manage new
aspects of the Pension Plan, including counseling employees and dealing with the new plan’s
regulations and tax considerations. A RFP (Request for Proposals) was issued for Third Party
Administrative Services and Coopers & Lybrand was selected. During the RFP process, many
firms indicated a desire to perform the actuary and administrative services under a single
contract. During the year Coopers & Lybrand has served as Third Party Administrator, staff
determined a need to adjust the requirements for services. Staff continues to fine-tune service
requirements for the administrative services provider and has worked with Coopers & Lybrand
to amend the current contract to a 1-year contract for both actuary and administrative services
for 1998. Both services will be bid out for 1999.
The $13,000 actuary services fee is the same fee paid for each of the 1996 and 1997
valuations. As of December 18, 1997, fees paid to Coopers & Lybrand as Third Party
Administrative services provider during 1997, totaled $12,610. Fees for individual services as
part of administrative services are the same as 1997 and are estimated at $12,550: 1) $250 -
review and amend (if necessary) pre-retirement booklet; 2) $1,000 - individual retirement
statements; 3) $4,800 - retirement seminars (20 hours @ $240/hour) 4) $3,500 - options
counseling up to 1-hour per retiring employee @$100/hour (estimate 35 employees); and 5)
$3,000 - staff advise (12.5 hours @ $240/hour). Funding is available in the Employees’
Pension Fund
Trustee Hooper to approve the First Amendment to the Consultant Services Agreement
with Coopers & Lybrand L.L.P., to perform the January 1, 1998, Actuary Valuation and Third
Party Administrative Services during 1998 for the pension plan, at an amount not to exceed
motion
$25,550, and that the appropriate officials be authorized to execute same. The was
carried
duly seconded and unanimously.
ITEM #7 - Other Business - None.
ITEM #8 - Adjournment:
The meeting adjourned at 1:10 p.m.
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