05/15/2000
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
May 15, 2000
Present: Brian J. Aungst Chair
J. B. Johnson Vice-Chair/Trustee
Ed Hooper Trustee
Robert Clark Trustee
Ed Hart Trustee
Also present: Michael J. Roberto City Manager
Pamela K. Akin City Attorney
Lee Dehner Pension Trustees Attorney
Paul O'Rourke Human Resources Administrator
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 Johnson moved to approve the minutes of the April 3, 2000, 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 employees listed below:
Sherrie Freemon, Jared Barden, Howard Hanscom, Shawana Wollever, Martin Moran, Laura
Wilson, Alex Battle, Jeffrey Garber, Katherine Schaaf, Lauree Belcher, Andrea Beane, Daniel
Luna, Karl Langefeld, & Anthony Harris
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
Jack Callahan, Robert Dickman, Iracema Drysdale, David Little, James D. Pyatt, Sr.,
that
David A. Foster, and Sarah Hamm regular pensions
be granted under Sections 2.393 and
2.397 of the Employees' Pension Plan.
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Jack Callahan was employed on January 26, 1971, and his pension service credit is
effective on that date. His pension will be effective March 1, 2000. Based on an average
salary of approximately $55,552 per year over the past 5 years, the formula for computing
regular pensions, and Mr. Callahan's selection of the 100% Joint & Survivor Annuity, this
pension will approximate $43,630 annually.
Robert Dickman was employed on February 14, 1977, and his pension service credit is
effective on June 18, 1977. His pension will be effective April 1, 2000. Based on an average
salary of approximately $48,274 per year over the past 5 years, the formula for computing
regular pensions, and Mr. Dickman's selection of the Joint & Survivor Annuity, this pension will
approximate $30,249 annually.
Iracema Drysdale was employed on September 10, 1980, and her pension service
credit is effective on November 16, 1989. Her pension will be effective May 1, 2000. Based
on an average salary of approximately $41,785 per year over the past 5 years, the formula for
computing regular pensions, and Ms. Drysdale's selection of the 50% Joint & Survivor Annuity,
this pension will approximate $7,945.44 annually.
David Little was employed on July 14, 1980, and his pension service credit is effective
on that date. His pension will be effective August 1, 2000. Based on an average salary of
approximately $49,431 per year over the past 5 years, the formula for computing regular
pensions, and Mr. Little's selection of the 100% Joint & Survivor Annuity, this pension will
approximate $26,511 annually.
James D. Pyatt, Sr. was employed on November 5, 1973, and his pension service
credit is effective on May 5, 1974. His pension will be effective June 1, 2000. Based on an
average salary of approximately $41,606 per year over the past 5 years, the formula for
computing regular pensions, and Mr. Pyatt's selection of the 75% Joint & Survivor Annuity, this
pension will approximate $30,041 annually.
David Foster was employed on October 11, 1976, and his pension service credit is
effective on April 11, 1977. His pension will be effective April 1, 2000. Based on an average
salary of approximately $37,873 per year over the past 5 years, the formula for computing
regular pensions, and Mr. Foster's selection of the Joint & Survivor Annuity, this pension will
approximate $23,888 annually.
Sarah Hamm was employed on June 2, 1969, and her pension service credit is
effective on December 2, 1969. Her pension will be effective May 1, 2000. Based on an
average salary of approximately $30,178 per year over the past 5 years, the formula for
computing regular pensions, and Ms. Hamm's selection of the 100% Joint & Survivor Annuity,
this pension will approximate $24,807 annually.
The PAC (Pension Advisory Committee) approved these pensions on April 13, 2000.
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 Fire Lieutenant and Assistant Fire Chief 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 20 years of credited service, has completed 30
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years of credited service, or has reached age 65 and completed 10 years of credited service.
Messrs. Callahan and Dickman qualify under the hazardous duty criteria; Ms. Drysdale
qualifies under the age 65 and 10 years of service criteria; Messrs. Little, Pyatt, and Foster
qualify under the age 55 and 20 years of service criteria; and Ms. Hamm qualifies under the 30
years of service criteria.
Humans Resources Administrator Paul O’Rourke reported David Foster had withdrawn
his pension application to change his option but will soon resubmit.
Trustee Clark moved to accept the recommendation of the Pension Advisory
motioncarried
Committee, less David Foster. The was duly seconded and unanimously.
ITEM #5 - Request to Vest Pension:
The City Manager presented the recommendation of the Pension Advisory Committee
Wayne Millen vest his pension
that be allowed to under Section(s) 2.397 and 2.398 of the
Employees' Pension Plan.
Wayne Millen was employed on June 7, 1989, and his pension service credit is
effective on that date. He resigned on April 14, 2000.
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 20 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.
Mr. Millen would have completed 20 years of service as a Police Officer on June 7,
2009. His pension will be effective July 1, 2009. The PAC approved this request on April 13,
2000.
Trustee Johnson moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
Carol Schmidt to permanent light duty position
ITEM #6 - Approve reassignment of in
Police Department
Carol Schmidt, Police Officer, was injured on August 19, 1998, in an off-duty vehicular
accident. As a result she suffered numerous injuries to her legs and face. The injuries to her
legs required several surgeries, which have left her with a permanent limp, a limited range of
motion, and the inability to walk long distances.
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As documented in letters from her doctors, an independent medical evaluation
performed by Dr. Andrew Wolff, and a functional capacity test performed at Bon Secours
Venice Hospital, Officer Schmidt has physical limitations to the extent that she can not run,
jump, squat, or physically interact with perpetrators. The documentation indicates that Ms.
Schmidt is permanently disabled from performing all the duties of a Police Officer.
Under provisions of the Employees' Pension Plan, if an employee is disabled from her
present job but can be reassigned to another position in order to perform meaningful work for
the City, the employee is not entitled to a disability pension. The Clearwater Police
Department has designated a specific number of positions that are considered to be
"permanent" light duty positions for sworn personnel. Officer Schmidt has been assigned to
one of these positions.
On April 13, 2000, the PAC denied Officer Schmidt's request for a non-job-connected
disability based on the fact she can perform the duties of the position to which she has been
reassigned. The Trustees must approve this permanent appointment in accordance with
Section 2.397 of the Employees' Pension Plan.
Trustee Hart moved to approve the reassignment of Carol Schmidt to a permanent light
motioncarried
duty position in the Police Department. The was duly seconded and
unanimously.
payment of pension benefits & interest from Pension Fund
ITEM #7 - Approve for following
retirees: Larry Hahn, Jr., Judi Acker, Terrence Rowe, Emanuel Hutchinson, Gary Lutman,
John Nicholson, & Michael Dandaneau, for total $84,761.72 including reimbursement to
Central Insurance Fund of $18,453 that has already been paid
Risk Management Specialist Jon Marcin said the City previously had capped disabled
employee earnings from Pension and supplemental benefits at 100% of average weekly
wages. A Florida Supreme Court decision on Acker vs. City of Clearwater and decisions from
the First District Court of Appeals have determined the 100% cap defeats the purpose of a
COLA (Cost of Living Adjustment) on supplemental benefits. The City has to adjust benefits
for seven pension recipients who are totally and permanently disabled and were impacted
previously by the City’s improper computation. Adjustments will include interest. The Workers
Compensation fund will pay related penalties.
In response to a question, Pension Trustees Attorney Dehner said he had not been
requested to offer an opinion on this issue. The City Attorney said delaying this item will result
in the accrual of additional interest. The Supreme Court opinion was forwarded to the City in
late April and mandated the City to pay related pension benefits and interest to Larry Hahn, Jr.,
Judi Acker, and Terrence Rowe by May 19, 2000. The City has made these Pension-related
payments. In response to a question, Mr. Marcin said the ruling only affects recipients who are
affected by the 1989 Barrigan ruling, receive Workers’ Compensation, and are totally and
permanently disabled. It was requested that staff forward all related Supreme Court opinions
to Trustee members in a timely fashion. A clearer definition of the City’s exposure was
requested.
Consensus was for Mr. Dehner to render an opinion regarding this issue.
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motion
Trustee Johnson moved to continue Item #7. The was duly seconded and
carried
unanimously.
ITEM #8 - Other Business:
Mr. O’Rourke reported the Pension Trustees’ contract with Mr. Dehner’s law firm
expires on May 24, 2000. Mr. Dehner said his firm is processing a rate increase for all clients.
He requested the Pension Trustees consider a fee change at the same time the firm institutes
an increase with other municipal clients. He requested the contract be extended on a month-
to-month basis, with no change in fees, until it can be renegotiated in September.
Trustee Hooper moved to extend the contract with Christiansen and Dehner on a
motion
month-to-month basis, with fees remaining unchanged. The was duly seconded and
carried
unanimously.
ITEM #9 - Adjournment:
The meeting adjourned at 9:22 a.m.
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