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06/12/2000 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING CITY OF CLEARWATER June 12, 2000 Present: Brian J. Aungst Chair J. B. Johnson Vice-Chair/Trustee Ed Hooper Trustee Ed Hart Trustee Absent: Robert Clark Trustee Also present: Michael J. Roberto City Manager Pamela K. Akin City Attorney Scott Christiansen Pension Trustees Attorney Dina Hyson Human Resources Manager Cynthia E. Goudeau City Clerk Patricia O. Sullivan Board Reporter The Chair called the meeting to order at 1:12 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 June 1, 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: Craig Jennings, Vince Kirkland, Kurt Kraus, Michael Head, Earlwin Lewis, Kevin Boaden, James Brent Bronson, Kip Thompson, Rick Wendling, Shawne Palcisko, William Muniz, Patricia Hillman, Harold Gahles, Norma Templeton, Mary Farrand, & Alysha Roberts Trustee Hart moved to accept the recommendation of the Pension Advisory Committee. motioncarried The was duly seconded and unanimously. ITEM #4 - Request for Pension: The City Manager presented the recommendation of the Pension Advisory Committee Thomas Hackettregular pension that be granted a under Section(s) 2.393 and 2.397 of the Employees' Pension Plan. mpf06b00 1 06/12/00 Thomas Hackett was employed on October 20, 1969, and his pension service credit is effective on April 20, 1970. His pension will be effective June 1, 2000. Based on an average salary of approximately $56,689 per year over the past 5 years, the formula for computing regular pensions, and Mr. Hackett's selection of the Joint & Survivor Annuity, this pension will approximate $48,553 annually. The PAC (Pension Advisory Committee) approved this pension on May 11, 2000. Section 2.393 (p) provides for normal retirement eligibility when a participant has reached age 55 and completed 20 years of credited service, has completed 30 years of credited service, or has reached age 65 and completed 10 years of credited service. Mr. Hackett qualifies under the 30 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 Vest Pension: The City Manager presented the recommendation of the Pension Advisory Committee Stephen Bingham vest his pension that be allowed to under Section(s) 2.397 and 2.398 of the Employees' Pension Plan. Stephen Bingham was employed on May 11, 1987, and his pension service credit is effective on that date. He resigned from City employment on May 5, 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. Bingham would have completed 20 years of hazardous duty service on May 11, 2007. His pension will be effective on June 1, 2007. On May 11, 2000, the PAC approved this request. Trustee Hooper moved to accept the recommendation of the Pension Advisory motioncarried Committee. The was duly seconded and unanimously. Catherine Slack to permanent light duty position ITEM #6 - Approve reassignment of in Police Department As a result of injuries received during an on-duty training exercise, Catherine Slack suffered cervical and lumbar injuries. As documented in letters from her doctors, an IME (Independent Medical Evaluation) performed by Dr. G. E. Vega, and a functional capacity mpf06b00 2 06/12/00 test performed at Tampa General Healthcare, Officer Slack has physical limitations to the extent that she cannot physically interact with perpetrators, cannot lift more than 25 pounds to waist level, and cannot lift more than 15 pounds overhead. She also needs to avoid running and training in physical defensive tactics. Under provisions of the Employees' Pension Plan, if employees are disabled from their present jobs but can be reassigned to other positions to perform meaningful work for the City, those employees are not entitled to disability pensions. The Police Department has designated a specific number of positions considered to be "permanent" light duty for sworn personnel. Officer Slack has been assigned to one of these positions. On May 11, 2000, the PAC denied Officer Slack's request for a job-connected disability pension based on the fact that she can perform the duties of the position to which she has been reassigned. The Trustees of the Employees' Pension Plan must approve this permanent appointment. Trustee Johnson moved to approve the reassignment of Catherine Slack to a permanent light duty position in the Police Department as recommended by the Pension Advisory Committee in accordance with Section 2.397 of the Employees' Pension Plan. The motioncarried was duly seconded and unanimously. ITEM #7 - Discussion - Krieger v. City On June 1, 1999, the Pension Trustees had approved a buy back of pension benefits for David Krieger for a pension contribution plus 5% interest instead of the actuarial equivalent rate. After the Trustees rescinded the action on June 7, 1999, Mr. Krieger filed a lawsuit. The judge’s May 22, 2000, decision indicates the Pension Trustees’ original approval constituted a contract. Leonard Marotta experienced the same Pension Trustee decisions and has indicated he will seek litigation. Pension Trustees Attorney Scott Christiansen said the trial attorney who handled the case had recommended against appealing the decision. The City Attorney concurred. In response to a question, he said while Mr. Krieger had paid the approved buy back amount, Mr. Marotta had not taken that action before the Pension Trustees had rescinded their approval. In response to a question, the City Attorney estimated an appeal would cost $7,000. It was questioned if failure to appeal the ruling would set a precedent. The City Attorney said each case has factually distinguishable circumstances. Mr. Christiansen did not foresee future problems as long as the Trustees do not approve something forbidden by the Pension Plan. Trustee Hooper moved to accept the attorney's recommendation and to not appeal the motion decision by the Court in the case Krieger vs. the City of Clearwater Pension Plan. The was duly seconded. Trustees Johnson and Hooper and Mayor Aungst voted “Aye”; Trustee carried Hart voted “Nay.” Motion . ITEM #8 - Other Business – None. mpf06b00 3 06/12/00 ITEM #9 - Adjournment: The meeting adjourned at 1:24 p.m. mpf06b00 4 06/12/00