09/05/2000
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
September 5, 2000
Present: Brian J. Aungst Chair
J. B. Johnson Vice-Chair/Trustee
Ed Hooper Trustee
Robert Clark Trustee
Ed Hart Trustee
Also present: William B. Horne II Interim City Manager
Pamela K. Akin City Attorney
Scott Christiansen Pension Trustee 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 9:00 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 August 14, 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 Interim City Manager presented the recommendation of the Pension Advisory
Committee to approve membership for the employees listed below:
Deane Murray, Raymond Minniefield, Anthony McClaney, Mark Matheny, Leroy Bostick, Jamie
Abbott, Donald Brown, Vernon Kearney, Kenneth Saleeba, Laura Whitt, & Lochen Wood
Trustee Clark moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
ITEM #4 - Request to Vest Pension:
The Interim City Manager presented the PAC’s (Pension Advisory Committee)
George Denty vest his pension
recommendation to allow to under Section(s) 2.397 and
2.398 of the Employees' Pension Plan. George Denty was employed on May 15, 1978, and
his pension service credit is effective on that date. He resigned from City employment on July
7, 2000.
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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 and reached age 55.
Mr. Denty would have completed 20 years of service and reached age 55 on January 9,
2001. His pension will be effective on February 1, 2001. The PAC approved this request on
August 10, 2000.
Trustee Hooper moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
ITEM #5 - Approve administrative expenditure budget for Fiscal Year 2000-2001, totaling
$192,600 for Pension Plan
The proposed budget for FY (fiscal year) 2000/01 includes: 1) medical bills for medical
services authorized by the PAC; 2) travel & training for Pension Investment Committee
attendance at the Callan training seminar and a visit to Callan, the Plan’s performance
measurement firm. A $6,000 charge is to conduct a search for two money managers. A
$7,000 charge has been added to facilitate training required by recent changes in Florida
Statutes; and 3) printing & binding covers statutorily required annual information distribution to
Pension Plan members. The increase is due to higher printing costs.
Money manager, safekeeping service, pension administrator, and actuary fees are set
by Trustee approved contracts and are not included in this administrative budget.
Reimbursement to the General fund covers the cost of Plan oversight and is recognized as
revenue to the General Fund.
All other amounts are the same except reimbursements to the General Fund, increased
to $118,200, to more accurately reflect costs. Related costs are $25,612 for Finance and
$92,588 for Human Resources. The total increase is related to the cost of new employee
physicals required by the Pension Plan. Previously, the Pension Plan did not reimburse the
General Fund for these physicals, even though the Plan required them. A physical
examination is not a condition of employment with the City.
It was requested future budgets also forecast next year’s costs.
Trustee Johnson moved to approve an administrative expenditure budget for Fiscal
motion
Year 2000/01, totaling $192,600 for the Pension Plan. The was duly seconded and
carried
unanimously.
ITEM #6 - Approve Investment Policy for Employees' Pension Plan
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The Pension Investment Committee adheres to ordinances relating to the employees’
Pension Plan. The proposed policy identifies PAC responsibilities and complies with Florida
Statute 218.415, effective June 14, 2000. The Pension Investment Committee includes the
Finance Services Administrator, Assistant Finance Director, Finance Controller, Risk Manager,
Senior Accountant, General Services Controller, Fire Administrative Support Manager, and
Cash & Investments Manager. The Pension Investment Committee meets weekly to discuss
financial issues affecting the Plan and quarterly to receive updates from investment managers,
review performance, and discuss investments with Plan consultants. Special meetings are
called as needed. The approximately 60 meetings annually are open to all.
The investment policy: 1) lists types of investments allowed, the allocation of assets,
and target ranges of those allocations; 2) sets minimum performance expectations for money
managers, and 3) defines expectations of money managers and safekeeping service.
It was suggested consideration be delayed so that recent changes can be reviewed.
Cash & Investments Manager Steve Moskun said not changing the policy now would make it
difficult to meet the State’s deadline. Pension Trustee Attorney Scott Christiansen said the
Trustees can revisit the plan in the future. Changes will be go into effect 30 days after Trustee
approval.
Trustee Hooper moved to approve the Investment Policy for the Employees' Pension
motioncarried
Plan. The was duly seconded and unanimously.
ITEM #7 - Other Business – None.
ITEM #8 - Adjournment:
The meeting adjourned at 9:04 a.m.
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