11/13/2000
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
November 13, 2000
Present: Brian J. Aungst Chair
J. B. Johnson Vice-Chair/Trustee
Robert Clark Trustee
Ed Hart Trustee
Vacant Seat Trustee
Also present: William B. Horne II Interim City Manager
Pamela K. Akin City Attorney
Lee Dehner Pension Trustees Attorney
Paul O'Rourke Human Resources Administrator
Cynthia E. Goudeau City Clerk
Brenda Moses Board Reporter
The Chair called the meeting to order at 10:15 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 Clark moved to approve the minutes of the October 16, 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:
Jennifer Howard, Scott McGrail, Richard Martin, Patricia Rooks, Brian Craig, Ronald Rice,
Joseph Smith, Christine Parker, & Paul Burger
Trustee Clark moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
ITEM #4 - Request for Pension:
The Human Resources Administrator presented the recommendation of the Pension
Donn Githens and Patrick Adamson regular
Advisory Committee that be granted a
pensions
under Section(s) 2.393 and 2.397 of the Employees' Pension Plan.
Donn Githens was employed on August 20, 1979, and his pension service credit is
effective on that date. His pension will be effective January 1, 2001.
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Based on an average salary of approximately $62,696 per year over the past 5 years,
the formula for computing regular pensions, and Mr. Githen's selection of the 100% Joint &
Survivor Annuity, this pension will approximate $36,147 annually.
Patrick Adamson was employed on August 1, 1977, and his pension service credit is
effective on that date. His pension will be effective January 1, 2001.
Based on an average salary of approximately $62,298 per year over the past 5 years,
the formula for computing regular pensions, and Mr. Adamson's selection of the 100% Joint &
Survivor Annuity, this pension will approximate $39,217 annually.
The PAC approved these pensions on October 12, 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 Police Captain and Police Lieutenant as meeting the hazardous duty 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 Interim City Manager presented the recommendation of the Pension Advisory
Dolores Hofer vest her pension
Committee that be allowed to under Section(s) 2.397 and
2.398 of the Employees' Pension Plan.
Dolores Hofer was employed on January 6, 1990, and her pension service credit is
effective on that date. She resigned from City employment on September 29, 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
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. Ms.
Hofer would have completed 10 years of service and reached age 65 as of September 18,
2008. Her pension will be effective on October 1, 2008. The PAC approved this request on
October 12, 2000.
Trustee Hart moved to accept the recommendation of the Pension Advisory Committee.
motioncarried
The was duly seconded and unanimously.
ITEM #6 - Previous Pension Contributions to be allowed:
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The Human Resources Administrator presented the recommendation of the Pension
Birgitt Dowd, Lawrence Dowd, Mark Goheen, Alphonso Hinson,
Advisory Committee that
and Carol Harvey make their previous pension contributions
be allowed to for specified
time periods.
The employees listed below were originally employed as permanent part-time.
Although they were classified as permanent part-time employees, it has been determined that
they worked full-time hours during the time periods indicated. When their status was changed
to full-time, they became eligible for pension participation as of that date. Indicated below is
the amount they would have contributed to the Pension Plan during the time they worked full-
time hours:
Birgitt Dowd 12/31/73-12/31/74 $345.62
Lawrence Dowd 12/18/74-12/10/76 $803.32
Mark Goheen 9/6/79-9/6/80 $401.15
Alphonso Hinson 11/14/71-11/10/72 $263.98
Carol Harvey 7/13/81-7/13/82 $436.64
In 1999 the PAC considered a similar request from Darold Brink, an employee in the
Marine Department, and approved the payment of his pension contributions for the time he
was working full-time hours although classified as part-time. After distributing information city-
wide asking for a response from former part-time employees who worked 1950 (for a 37.5 hour
per week position) or 2080 (for a 40 hour per week position) hours in a 12 month period,
Human Resources received responses from 19 employees. It was determined that 5 of the 19
were improperly classified as part-time and should be entitled to pay their contributions to
receive pension credit.
At the PAC's meeting on October 12, 2000, the Committee approved these requests to
pay contributions to receive service credit with the employees paying 5% interest per year.
Should the Trustees approve these requests, the amount owed as of October 31, 2000, for
each of these employees is as follows:
Birgitt Dowd $1,219.34
Lawrence Dowd $2,637.17
Mark Goheen $1,072.87
Alphonso Hinson $1,033.57
Carol Harvey $1,076.06
Section 2.393 (1) of the City of Clearwater Code (1980) provided that "All permanent
employees of the City shall be required to pay the assessments provided for in this division
and are required to participate in the fund hereby created. The Trustees of this Pension Plan
and Fund shall have the right to determine from time to time which employees are permanent
employees of the City …"
Section 2.393 (1) of the City of Clearwater Employees' Pension Fund, effective January
1, 1996, provides that "Employee shall mean any person employed by the Employer as a full-
time, permanent employee". Section 2.395 (a)(1) provides that "unless otherwise provided
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herein, all employees of the Employer shall be required to make the contributions specified in
Section 2.396 and shall be required to participate in the Plan". Section 2.393 (2) provides that
the Trustees "shall have the right to determine from time to time which persons are full-time
employees for the purposes of the Plan …"
Trustee Johnson moved to accept the recommendation of the Pension Advisory
motion
Committee. The was duly seconded. Upon the vote being taken, Trustees Johnson,
carried
Clark and Chair Aungst voted "Aye"; Trustee Hart voted "Nay". Motion .
Actuary's Report
ITEM #7 - Accept for Employees' Pension Plan for plan year beginning
1/1/00
The January 1, 2000 actuarial report for the Employees’ Pension Plan indicates a City
contribution of $1,722,874 is required. However, the City Ordinance governing the pension
plan requires the City contribute at least 7% of the compensation of all employees participating
the plan (estimated at $3,565,618). The difference between the required contribution of
$3,565,618 and the actuarial determined contribution of $1,722,874 will be added to the
existing credit balance, currently at $12,442,498. The low contribution requirement is primarily
due to the phase in of prior asset gains and the excellent investment returns realized in 2000.
The Employees’ Pension Plan experienced a fifth consecutive year of excellent investment
performance. The market value basis performance for the last five years (1995, 1996, 1997,
1998, and 1999, respectively) has been 23.36%, 14.80%, 17.49%, 16.74%, and 18.61%. The
funded status of the plan decreased from 174% at January 1, 1999, to 162% at January 1,
2000, primarily due to the plan amendment, which increased the plan’s actuarial accrued
liabilities by nearly $53 million. This amendment added a 1.5% annual cost of living increase,
and additional normal retirement age of 65 with 10 years of service, plus additional eligibilities
and benefits for police and firefighters as required by 175/185 legislation. The draft Actuary
Report is available in the City Clerk’s Office. In response to a question, Deputy Finance
Director Jay Ravens said the City’s contribution is $3.5 million as required by City ordinance.
Trustee Hart moved to accept the Actuary's Report for the Employees' Pension Plan for
motioncarried
the plan year beginning January 1, 2000. The was duly seconded and
unanimously.
legal services
ITEM #8 - Agreement with Christiansen & Dehner, P.A., for Trustees & PAC,
10/1/00-9/30/01
In 1999, the Board of Trustees of the City’s Employees’ Pension Plan entered into an
agreement with the law firm of Christiansen & Dehner, P.A., to provide services to the Board of
Trustees and Pension Advisory Committee. (PAC). The PAC and Pension Trustees have
been satisfied with the services provided by the firm. Christiansen & Dehner, P.A.
has submitted a proposal to renew the contract effective October 1, 2000. The current rates of
$180 per hour for attorney services and $90 per hour for travel time will remain in effect until
January 1, 2001, at which time the rate will be increased to $210 per hour and $105 per hour
respectively. This contract period will run from October 1, 2000, through September 30, 2001.
The PAC approved the renewal of this contract on October 12, 2000. It now comes before the
Board of Trustees for its consideration.
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Trustee Hart moved to approve the agreement with Christiansen & Dehner, P.A. for
motioncarried
legal services for the term 10/1/00-9/30/01. The was duly seconded and
unanimously.
ITEM #9 - Other Business - None.
ITEM #10 - Adjournment
The meeting adjourned at 10:19 a.m.
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