03/15/1999
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
March 15, 1999
Present: Rita Garvey Chair
Ed Hooper Vice-Chair
J. B. Johnson Trustee
Robert Clark Trustee
Vacant Seat Trustee
Also present: 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 9:08 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 Clark to approve the minutes of the February 16, 1999, meeting, as recorded
motion
and submitted in written summation by the City Clerk to each Trustee. The was duly
carried
seconded and unanimously.
ITEM #3 - Request for Acceptance into Membership:
The City Manager presented the recommendation of the PAC (Pension Advisory
Committee) to approve membership for the listed employees:
Yvette Poisson
Ami Dicataldo
Jean M. Peeke
Jason Barlet
Miglena Moseley
Erin Driscoll
Trustee Hooper moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
ITEM #4 - Request for Pension:
The City Manager presented the recommendation of the Pension Advisory Committee
Peter St. Martin, Alton W. Brown, Jr., John Downs Steven Kelly
that , and be granted
regular pensions
under Section(s) 2.393 and 2.397 of the Employees' Pension Plan.
mpf0399 1 03/15/99
Peter St. Martin was employed on January 17, 1972, and his pension service credit is
effective on that date. His pension will be effective March 1, 1999. Based on an average
salary of approximately $40,246 per year over the past five years, the formula for computing
regular pensions, and Mr. St. Martin’s selection of the 100% Joint & Survivor Annuity, this
pension will approximate $29,545 annually.
Alton W. Brown, Jr., was employed on December 17, 1973, and his pension service
credit is effective on that date. His pension will be effective March 1, 1999. Based on an
average salary of approximately $41,882 per year over the past five years, the formula for
computing regular pensions, and Mr. Brown’s selection of the 100% Joint & Survivor Annuity,
this pension will approximate $28,329 annually.
John Downs was employed on January 15, 1973, and his pension service credit is
effective on June 15, 1973. His pension will be effective March 1, 1999. Based on an average
salary of approximately $41,202 per year over the past five years, the formula for computing
regular pensions, and Mr. Downs’ selection of the 100% Joint & Survivor Annuity, this pension
will approximate $28,415 annually.
Steven Kelly was employed on October 20, 1971, and his pension service credit is
effective on that date. His pension will be effective April 1, 1999. Based on an average salary
of approximately $42,667 per year over the past five years, the formula for computing regular
pensions, and Mr. Kelly’s selection of the 100% Joint & Survivor Annuity, this pension will
approximate $31,591 annually.
The PAC approved these on February 11, 1999. 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 and Firefighter/Drive-Operator as meeting the hazardous duty criteria. Mr. St.
Martin, Mr. Brown, and Mr. Downs qualify under the hazardous duty criteria. Section 2.393 (p)
also provides for normal retirement eligibility when a participant has reached age 55 and
completed twenty years of credited service or has completed thirty years of credited service.
Mr. Kelly qualifies under the age 55 and twenty years of service criteria.
Trustee Johnson moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
ITEM #5 - Request to Buy Back Previous Pension Service Credit as Approved by the PAC
Kenneth Donagan originally was employed as a Police Officer on April 8, 1974. On
September 2, 1983, after 9½ years of service, he resigned from the City and withdrew his
pension contributions in the amount of $10,614.81. On October 31, 1983, Mr. Donagan
formally requested to withdraw his resignation under the appropriate Civil Service Rule. His
request was approved and he returned to work as a Police Officer on February 6, 1984.
Upon his return, Mr. Donagan’s seniority date was adjusted by 156 days, the number of days
he was actually gone, as is done in any case when an employee withdraws a resignation.
Additionally, Mr. Donagan was credited with all his benefits, including sick leave and vacation.
mpf0399 2 03/15/99
At that time, Mr. Donagan made a request to pay back the funds he had
withdrawn from the Pension Plan. Upon the recommendation of then Assistant City
Manager Gerald Weimer that Mr. Donagan not be allowed to pay back the money due to
the future actuarial impact on the Pension Plan, Mr. Donagan’s request was denied.
Since that time, Mr. Donagan has made several requests to buy back his pension
service credit. On February 11, 1999, Andra Dreyfus, attorney for Mr. Donagan,
presented a request to the PAC that Mr. Donagan be allowed to pay back the amount
withdrawn and be credited for his original period of employment. It was the consensus of
the PAC that Mr. Donagan should be allowed to buy back this time to remedy an inequity
caused by a past arbitrary decision. Upon a motion duly made and seconded, the PAC
unanimously approved this request. This matter has been forwarded to the Pension
Trustees for consideration.
The City Attorney reported the PAC had recommended Mr. Donagan be allowed to pay
back his withdrawn pension contributions without interest. She expressed concern the PAC
has been inconsistent in its decisions related to the interest due on approved pension
contribution pay-backs.
Andra Dreyfus, representing Mr. Donagan, said it would be unfair to charge Mr.
Donagan interest as he had been illegally denied reinstatement in the Pension Plan. She said
the current requirement to repay 5% interest has no bearing on 1983 actions. PAC members
Pat Greer and Pat Shepler spoke in support of Mr. Donagan not being charged interest.
Inconsistencies between cases under consideration were noted.
Trustee Johnson moved to accept the recommendation of the Pension Advisory
motion
Committee with no interest being required. The was duly seconded.
carried
Upon the vote being taken, the motion unanimously.
ITEM #6 - Other Business
The City Attorney said the interest rate of 7% approved by the Pension Trustees for
Jeff Harper’s buy-back should have been a 5% rate. When the issue was discussed, the
approved buy-back amount had included 7% interest. Concern was expressed Mr. Harper was
being charged interest on his pay-back. It was felt Mr. Harper should pay interest as he had
never applied to buy-back his pension service credit prior to his retirement.
Trustee Hooper moved to reduce the interest amount for Jeff Harper’s buy-back into
motion carried
the Pension Plan to 5%. The was duly seconded and unanimously.
ITEM #7 - Adjournment:
mpf0399 3 03/15/99
The meeting adjourned at 9:31 a.m.
mpf0399 4 03/15/99