10/16/2000
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
October 16, 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
Paul O'Rourke Human Resources Administrator
Cynthia E. Goudeau City Clerk
Brenda Moses Board Reporter
The Chair called the meeting to order at 9:45 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 September 5, 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:
Mary Repp, Michael Demps, Thomas Shaffer, Arden Dittmer, Robert Renk, Anthony
Hadley, Stefan Czerwinski, Judith Crawford, Daniel Carter, & Teresa Jeffries
Trustee Johnson moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
ITEM #4 - Request for Pension:
The Interim City Manager presented the recommendation of the Pension Advisory
Brian Baldwinregular pension
Committee that be granted a under Section(s) 2.393 and
2.397 of the Employees' Pension Plan.
Brian Baldwin was employed on August 6, 1979, and his pension service credit is
effective on that date. His pension will be effective March 1, 2000.
mpf1000 1 10/16/00
Based an average salary of approximately $53,629 per year over the past 5 years, the
formula for computing regular pensions, and Mr. Baldwin's selection of the 100% Joint &
Survivor Annuity, this pension will approximate $31,396 annually.
The PAC approved this pension on September 14, 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 Deputy Chief of Operations, Fire Department, as meeting the hazardous duty criteria.
Trustee Hooper moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
ITEM #5 - Request to Vest Pension:
The Interim City Manager presented the recommendation of the Pension Advisory
Nanette Harbison vest her pension
Committee that be allowed to under Section(s) 2.397 and
2.398 of the Employees' Pension Plan.
Nanette Harbison was employed on January 11, 1982, and her pension service credit is
effective on that date. She resigned from City employment on September 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 Fire District Chief as meeting the hazardous duty
criteria.
Ms. Harbison would have completed 20 years of service on January 11, 2002. Her
pension will be effective on February 1, 2002. The PAC approved this request on September
14, 2000.
Trustee Clark moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
ITEM #6 - Agreements with Putnam Investments and Invesco Global Asset Management
non-US equity managers
(N.A.), Inc., to serve as for Employees Pension Plan
The Trustees previously authorized Callan and Associates to conduct a search for an
international “non-U.S.” equity manager. Callan’s recommendations for international equity
managers were: Capital Guardian Trust Company, Invesco Global Asset Management (N.A.),
Inc., Putnam Investments, Sit/Kim International Associates, Inc., Dresdner RCM Global
Investors, LLC, and Lazard Asset Management. After reviewing information provided on these
mpf1000 2 10/16/00
managers, the Investment Committee ranked them and conducted interviews with the top four.
The Investment Committee recommends to the Trustees that two international “non-U.S.”
equity managers be added. Invesco, a value-oriented international “non-U.S.” equity manger,
and Putnam, a growth-oriented international “non-U.S.” equity manager. By adding
international “non-U.S.” equities to the portfolio, the Trustees are reducing the level of risk in it.
By further diversifying between growth and value international “non-U.S.” equities, the risk
level if further reduced. The Investment Committee recommends that each manager be
funded with up to $25 million, which represents slightly less than 10% of the current portfolio.
The ordinance and investment policy allows for a 10% funding (at cost) in international “non-
U.S.” investments. The funds will be taken from growth style domestic equity managers as
follows: Denver $20 million, Aeltus $15 million, and 3 Bridge $15 million. Invesco’s
management fee is .60 of 1% or $150,000 on $25 million per year. Putnam’s management fee
is .8 of 1% or $200,000 on $25 million per year.
Trustee Johnson moved to approve the contracts with Putnam Investments and
Invesco Global Asset Management (N.A.), Inc. as international “non-U.S.” equity managers for
motioncarried
the Employee’s Pension Plan. The was duly seconded and unanimously.
ITEM #7 - Other Business - None.
ITEM #8 - Adjournment:
The meeting adjourned at 9:49 a.m.
mpf1000 3 10/16/00