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07/17/2000 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING CITY OF CLEARWATER July 17, 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 9:07 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 Hooper moved to approve the minutes of the June 12, 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: Human Resources Administrator Paul O’Rourke presented the recommendation of the Pension Advisory Committee to approve membership for the employees listed below: Jane Ranes, Robert Devore, Jonathan Peskin, Robert Baker, Robin Valveri, William Givens, Christopher Beckham, Lennox Dawkins, Linda Leaghty, Nida Espinosa, Jason Goetz, Joseph DiStefano, Darla Mae Wood, Willard Rodgers, Gary Bonzo, Stephen Cox, Franklin Fleming, Steven Fletcher, Christine Schlerf, Edgardo Vila, Ellyn Miller, & Rodney Johnson Trustee Johnson moved to accept the recommendation of the Pension Advisory motion Committee to approve membership for the listed employees. The was duly seconded carried and unanimously. ITEM #4 - Request for Pension: The City Manager presented the recommendation of the Pension Advisory Committee Earl Dussault, David Harding, David Foster, & Joseph Johnson regular that be granted pensions under Section(s) 2.393 and 2.397 of the Employees' Pension Plan. mpf0700 1 07/17/00 Earl Dussault was employed on March 15, 1977, and his pension service credit is effective on June 18, 1977. His pension will be effective July 1, 2000. Based on an average salary of approximately $36,315 per year over the past 5 years, the formula for computing regular pensions, and Mr. Dussault's selection of the 100% Joint & Survivor Annuity, this pension will approximate $22,305 annually. David Harding was employed on June 19, 1978, 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 $42,081 per year over the past 5 years, the formula for computing regular pensions, and Mr. Harding's selection of the Life Annuity, this pension will approximate $29,151 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 50% Joint & Survivor Annuity, this pension will approximate $25,270 annually. Joseph Johnson was employed on March 16, 1970, and his pension service credit is effective on September 16, 1970. His pension will be effective October 1, 2000. Based on an average salary of approximately $24,965 per year over the past 5 years, the formula for computing regular pensions, and Mr. Johnson's selection of the Life Annuity, this pension will approximate $20,625 annually. On June 8, 2000, the PAC (Pension Advisory Committee) approved these pensions. 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 years of credited service, or has reached age 65 and completed 10 years of credited service. Mr. Dussault, Mr. Harding, and Mr. Foster qualify under the age 55 and 20 years of service criteria and Mr. Johnson qualifies under the 30 years of service criteria. Trustee Clark moved to accept the recommendation of the Pension Advisory Committee that Earl Dussault, David Harding, David Foster, & Joseph Johnson be granted regular pensions under Section(s) 2.393 and 2.397 of the Employees' Pension Plan. The motioncarried was duly seconded and unanimously. ITEM #5 - Request to Vest Pension: Mr. O’Rourke presented the recommendation of the Pension Advisory Committee that G. Ann Gilsdorf vest her pension be allowed to under Section(s) 2.397 and 2.398 of the Employees' Pension Plan. G. Ann Gilsdorf was employed on March 12, 1984, and her pension service credit is effective on that date. She resigned from City employment on June 2, 2000. The Employees’ Pension Plan provides that should an employee cease to be an employee of the City after completing 10 or more years of creditable service (pension mpf0700 2 07/17/00 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 provides for normal retirement eligibility when a participant has completed 20 years of credited service and reached age 55. Ms. Gilsdorf would have completed 20 years of service and reached age 55 on March 12, 2004. Her pension will be effective on April 1, 2004. On June 8, 2000, the PAC approved this request. Trustee Hooper moved to accept the recommendation of the Pension Advisory Committee that G. Ann Gilsdorf be allowed to vest her pension under Section(s) 2.397 and motioncarried 2.398 of the Employees' Pension Plan. The was duly seconded and unanimously. ITEM #6 - Request for Survivor Benefits: Mr. O’Rourke presented the recommendation of the Pension Advisory Committee that Patricia Ermlich, widow of Gerald Ermlich be granted a death benefit as provided for under Section 2.397 of the Employees' Pension Plan. Gerald Ermlich was employed on August 10, 1987, and his pension service credit is effective on that date. Mr. Ermlich passed away on May 22, 2000. Patricia Ermlich, widow of Gerald Ermlich, applied for death benefits on May 30, 2000. Mr. and Mrs. Ermlich were legally married on December 31, 1975, thereby entitling her to death benefits under provisions of the Employees' Pension Plan. On June 8, 2000, the PAC approved Mrs. Ermlich's request for death benefits. The Finance Department will compute the amount of Mrs. Ermlich's pension, which is effective June 1, 2000. Based on an average salary of approximately $35,225 per year over the past five years, this pension will approximate $12,386 annually. Trustee Hooper moved to accept the recommendation of the Pension Advisory Committee that Patricia Ermlich, widow of Gerald Ermlich be granted a death benefit as motion provided for under Section 2.397 of the Employees' Pension Plan. The was duly carried seconded and unanimously. ITEM #7 - Other Business: Terrance B. Griggley In her July 17, 2000, memorandum, the City Attorney reported Terrance B. Griggley, a City employee, had died on June 17,2000. Mr. Griggley did not have a Will. The City has received numerous requests for release of pension moneys by various family members. The City Attorney recommended the City file an interpleader action in circuit court. The City Attorney said by this action, the City will turn the pension funds over to the court, which will determine heirs and how the funds should be distributed. This action protects mpf0700 3 07/17/00 the Pension Plan. In response to a question, she said Mr. Griggley was not vested in the Pension Plan. The subject funds consist of Mr. Griggley’s contributions. Trustee Clark moved approval for the City Attorney to file an interpleader action in motion circuit court, regarding the estate of Terrance B. Griggley. The was duly seconded carried and unanimously. Senate Bill 372 Pension Trustee Attorney Lee Dehner said he is working with staff regarding new State requirements related to the Pension Plan. The changes are not substantive and relate to filing dates, notification and reporting requirements, policies, and educational requirements. ITEM #8 - Adjournment: The meeting adjourned at 9:12 a.m. mpf0700 4 07/17/00