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07/09/2001 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING CITY OF CLEARWATER July 9, 2001 Present: Ed Hart Vice-Chair/Trustee Whitney Gray Trustee Hoyt P. Hamilton Trustee William C. Jonson Trustee Absent: Brian J. Aungst Chair Also present: Pamela K. Akin City 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 12:24 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 Gray moved to approve the minutes of the June 18, 2001, 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 PAC (Pension Advisory Committee) recommendation to approve membership for the listed employees: Jack Bruce, Kay Norred, Jennifer Wargin, Anthony Tedesco, Greg Newland, Melody Benbow, Kristin Wolanski, Jeremy Albrecht, Deedra Chatman, Jeffrey Nolan, Thomas Meagher, Brandon Kinnecom, Arnold Retzer, Jr., Cherie Epley, & Rodney Byrd Trustee Gray moved to accept the recommendation of the Pension Advisory motioncarried Committee. The was duly seconded and unanimously. ITEM #4 - Request for Pension: Wallace Green The Interim City Manager presented the PAC recommendation that be regular pension granted a under Section(s) 2.393 and 2.397 of the Employees' Pension Plan. Wallace Green was employed on August 6, 1979, and his pension service credit is effective on that date. His pension will be effective September 1, 2001. Based on an average mpf0701 1 07/09/01 salary of approximately $42,315 per year over the past 5 years, the formula for computing regular pensions, and Mr. Green's selection of the 100% Joint & Survivor Annuity, this pension will approximate $25,295 annually. The PAC approved the pension on June 14, 2001. 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 Firefighter as meeting the hazardous duty criteria. Mr. Green qualifies under the hazardous duty criteria. 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. Trustee Hamilton moved to grant Wallace Green, Fire Department, a regular pension under Section(s) 2.393 and 2.397 of the Employees’ Pension Plan as approved by the motioncarried Pension Advisory Committee. The was duly seconded and unanimously. ITEM #5 - Request to Vest Pension: The Interim City Manager presented the recommendation of the Pension Advisory Lori Metzner vest her pension Committee that be allowed to under Section(s) 2.397 and 2.398 of the Employees' Pension Plan. Lori Metzner previously worked for the City and vested her pension after 10 years of service. She returned to employment on September 6, 1994 and her pension service credit date was adjusted to June 30, 1989. She again terminated from employment on June 1, 2001. 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. Metzner would have completed 20 years of service and reached age 55 on January 1, 2010. Her pension will be effective on February 1, 2010. PAC approved this request on June 14, 2001. Trustee Jonson moved to allow Lori Metzner, Library Department, to vest her pension under Section(s) 2.397 and 2.398 of the Employees' Pension Plan as approved by the Pension motioncarried Advisory Committee. The was duly seconded and unanimously. domestic large cap ITEM #6 - Approve contract with Capital Guardian Trust Company as value equity manager for Employees' Pension Plan Human Resources Administrator Paul O’Rourke stated this item has been pulled. The contract is under review. mpf0701 2 07/09/01 Ord. #6826-01 ITEM #7 - Recommend Commission pass on 1st reading & adopt on 2nd reading which will correct technical errors in Pension Plan It recently was discovered several technical errors are contained in the Pension Plan codification as it appears in the City of Clearwater Municipal Code of Ordinances. On June 14, 2001, the PAC recommended approval of the corrections. Recommended corrections: 1) language in Section 2.397, subsection (f), granting 1.5% cost of living allowance effective April 1, 2000, be added back into the ordinance and current subsections (f) and (g) be renumbered as subsections (g) and (h); 2) Section 2.398, time and manner of benefit payments, subsection (a)(1)c.1. be amended to indicate the guarantee of 120 payments for disability benefits applies only to police officer and firefighter participants; and 3) Section 2.398, time and manner of benefit payments, subsection (b)(2)a.3. be amended to indicate that the 66 2/3 percent payment option applies only to police officer and firefighter participants. Trustee Jonson moved to recommend the City Commission approve Ordinance #6826- motion 01 to correct technical errors in the Employees’ Pension Plan. The was duly seconded carried and unanimously. ITEM #8 - Other Business: Mr. O’Rourke reported Stephen Cypen, of Cypen & Cypen, had replied to the City regarding Police Chief Sid Klein’s attorney’s request for pre litigation mediation related to his application for inclusion in the Pension Plan. The item will be agendaed for August 13, 2001. ITEM #9 - Adjournment: The meeting adjourned at 12:29 p.m. mpf0701 3 07/09/01