05/03/1999
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
May 3, 1999
Present: Brian J. Aungst Chair
Ed Hooper Vice-Chair/Trustee
J. B. Johnson Trustee
Robert Clark Trustee
Ed Hart 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 9:02 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 April 12, 1999 meeting, and the
March 26, 1999 joint meeting with PAC (Pension Advisory Committee), as recorded and
motion
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 Pension Advisory Committee
to approve membership for the employee(s) listed below:
Vince Kirkland
Marianna Chmiel
Nicholas Fritz
Thomas Lulek
Kenneth Euler
David Goldberg
Thomas Dawe
Melissa Harris
Steven Carrao
Trustee Hooper moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
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ITEM #4 - Request for Pension:
The City Manager presented the Pension Advisory Committee recommendation that
David H. Main, Zerry Littles, Richard Helphinstine, Kenneth Donagan & Robert G. Jones
regular pensions
be granted under Section(s) 2.393 and 2.397 of the Employees' Pension
Plan.
David H. Main was employed on October 7, 1974, and his pension service credit is
effective on that date. His pension will be effective July 1, 1999. Based on an average salary
of approximately $35,107 per year over the past five years, the formula for computing regular
pensions, and Mr. Main's selection of the Life Annuity, this pension will approximate $25,377
annually.
Zerry Littles was employed on August 2, 1976, and his pension service credit is
effective on that date. His pension will be effective May 1, 1999. Based on an average salary
of approximately $29,248 per year over the past five years, the formula for computing regular
pensions, and Mr. Littles' selection of the Joint & Survivor Annuity, this pension will
approximate $18,229 annually.
Richard L. Helphinstine was employed on April 9, 1979, and his pension service credit
is effective on that date. His pension will be effective May 1, 1999. Based on an average
salary of approximately $35,132 per year over the past five years, the formula for computing
regular pensions, and Mr. Helphinstine's selection of the 75% Joint & Survivor Annuity, this
pension will approximate $19,566 annually.
Kenneth H. Donagan was employed on September 11, 1974, 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 $55,752 per year over the past five years, the formula for
computing regular pensions, and Mr. Donagan's selection of the Joint & Survivor Annuity, this
pension will approximate $37,631 annually.
Robert G. Jones was employed on August 28, 1978, 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 $40,335 per year over the past five years, the formula for computing regular
pensions, and Mr. Jones' selection of the 50% Joint & Survivor Annuity, this pension will
approximate $23,426 annually.
The PAC approved these pensions on April 8, 1999. Section 2.393 (p) 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. Messrs. Main,
Littles, and Helphinstine qualify under the age 55 and 20 years of service criteria.
Section 2.393 (p) also 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 Police Sergeant and Firefighter/Drive-
Operator as meeting the hazardous duty criteria. Messrs. Donagan and Jones qualify under
the hazardous duty criteria.
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Trustee Johnson moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
ITEM #5 - Request to Vest Pension:
Rhett Morgan & John B.
The City Manager presented the PAC’s recommendation that
Tucker vest their pensions
be allowed to under Section(s) 2.397 and 2.398 of the
Employees' Pension Plan.
Rhett Morgan was employed on April 3, 1989, and his pension service credit is effective
on that date. John B. Tucker was employed on March 3, 1975, and his pension service credit
is effective on that date.
The Employees’ Pension Plan provides that should an employee cease to be an
employee of the City of Clearwater after completing 10 or more years of creditable service
(pension participation), then 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 2.393 (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 Police Officer as meeting 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. Morgan would have completed 20 years of service as a Police Officer on April 3,
2009. His pension will be effective on May 1, 2009. Mr. Tucker would have completed 30
years of service on March 3, 2005. His pension will be effective on April 1, 2005. The PAC
approved these requests to vest pensions on April 8, 1999.
Trustee Clark moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
buy back
ITEM #6 - Request to previous pension service credit: Leonard Marotta
Leonard Marotta was employed by the City as a Police Officer on August 26, 1979. He
resigned on August 26, 1982, and withdrew his $3,890.97 pension contribution. Under the
appropriate Civil Service Rule, Mr. Marotta requested to withdraw his resignation. Although the
request had occurred 19 days beyond the 6-month deadline, the City Manager approved the
withdrawal of resignation.
Upon Mr. Marotta’s return to work as a Police Officer on April 25, 1983, his seniority
date was adjusted by 241 days, the number of days he was gone, which is the procedure for
employees who withdraw resignations. Also, Mr. Marotta was credited with all benefits,
including sick leave and vacation. After requesting to pay back the funds he had withdrawn
from the Plan, the Police Chief advised him this request was denied.
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In 1996, Mr. Marotta was advised he could buy back his pension service at a cost of
more than $65,000. On March 11, 1999, Mr. Marotta requested the PAC allow him to buy back
the 3 years. After discussion, the PAC recommended Mr. Marotta be approved to buy back his
years of service plus 5% annual interest on the $3,890.97 from his departure date in 1982 until
now. This action corrects an inequity caused by an arbitrary decision. This matter has been
forwarded to the Pension Trustees for consideration.
AND
buy back
ITEM #7 - Request to previous pension service credit: David Krieger
David Krieger was employed by the City as a Police Officer on September 3, 1968. Mr.
Krieger resigned on August 11, 1972, after being denied a leave of absence to attend school.
He withdrew $1,292.62, his $1,615.78 contribution less a 20% administrative fee. Mr. Krieger
return to the City upon completion of his education was delayed as a hiring freeze was in
effect at the time.
On March 28, 1977, he returned to work as Police Officer and was admitted to the
Pension Plan effective on that date. His request to buy back his pension service was denied.
In 1996, Mr. Krieger was advised he could buy back his pension service at a cost of more than
$76,000. On April 8, 1999, the PAC recommended approval of Mr. Krieger’s request to buy
back his years of service plus 5% annual interest for a total of $4,927.91. This matter was
forwarded to the Pension Trustees for consideration.
The City Attorney recommended the Trustees continue Items #6 and #7 until next
month when the board’s new counsel will be present and can provide a recommendation.
Staff only received the actuarial numbers related to these requests last Friday.
motion
Trustee Hart moved to continue Items #6 and #7 to June 1, 1999. The was
duly seconded.
Andra Dreyfus, representative for David Krieger, reviewed details of his case and
indicated the PAC had approved the request after a thorough discussion. She requested the
Trustees act on the request.
Concern was expressed approval of this request may establish a precedent. The City
Attorney said requests differ and must be considered separately.
It was indicated the difference between the buy back rate of simple interest versus the
actuarial amount must be covered in the plan. Ms. Dreyfus indicated since 1972, the plan had
retained 20% of Mr. Krieger’s contribution. The City Attorney recommended before reaching a
decision, the Pension Trustees obtain a legal opinion and consider the impact on the plan after
reviewing the actuarial numbers. In response to a question, Fiscal Administrator Margie
Simmons indicated the actuarial numbers provided do not account for funds withheld from Mr.
Krieger’s contribution. She will order a new computation.
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It was felt additional information is necessary before a decision can be made. The City
Attorney agreed a comprehensive evaluation is necessary.
Upon the vote being taken, Trustee Johnson, Clark, Hart, and Chair Aungst voted
carried
“Aye”; Trustee Hooper voted “Nay.” Motion .
ITEM #8 - Other Business – None.
ITEM #9 - Adjournment:
The meeting adjourned at 9:25 a.m.
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