11/13/2001
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
November 13, 2001
Present: Brian J. Aungst Chair
Ed Hart Vice-Chair/Trustee
Whitney Gray Trustee
Hoyt P. Hamilton Trustee
William C. Jonson Trustee
Also present: William B. Horne II 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 9:23 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 Hamilton moved to approve the minutes of the October 15, 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:
Human Resources Administrator Paul O’Rourke presented the recommendation of the
Pension Advisory Committee to approve membership for employees: Kelly Moos, Pharyn
Bannister, Carlton Greene, Peter Fellman, Dobert Thompson, Rachel Perry, Yolanda Rogers,
Dwayne Hickman, Penny Baughn, Douglas Swartz, Denis O'Connor, Wade Bishop, David
Buchhotz, Tashadra Rogers, Julio Plaza
Trustee Jonson moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
ITEM #4 - Requests for Pension
Mr. O’Rourke presented the recommendation of the Pension Advisory Committee that
Calvin Mizell, Gary Fritts, and John Whitcombregular pensions
be granted under Sections
2.393 and 2.397 of the Employees' Pension Plan.
Calvin Mizell was employed on June 17, 1975, and his pension service credit is
effective on December 18, 1975. His pension will be effective on November 1, 2001. Based
on an average salary of $36,500 per year over the past 5 years, the formula for computing
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regular pensions, and Mr. Mizell’s selection of the 100% Joint & Survivor Annuity, this pension
will approximate $25,359 annually.
Gary Fritts was employed on June 18, 1977, and his pension service credit is effective
on that date. His pension will be effective on January 1, 2002. Based on an average salary of
$38,484 per year over the past 5 years, the formula for computing regular pensions, and Mr.
Fritts’ selection of the 100% Joint & Survivor Annuity, this pension will approximate $25,457
annually.
John Whitcomb was employed on January 13, 1972, and his pension service credit is
effective on that date. His pension will be effective on February 1, 2002. Based on an
average salary of $29,731 per year over the past 5 years, the formula for computing regular
pensions, and Mr. Whitcomb’s selection of the Life Annuity, this pension will approximate
$24,530 annually.
The PAC (Pension Advisory Committee) approved these pensions on October 11,
2001. 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. Mr. Mizell
and Mr. Fritts qualify under the age 55 and 20 years of service criteria, and Mr. Whitcomb
qualifies under the 30 years of service criteria.
Trustee Gray moved to grant regular pensions for Calvin Mizell, Gary Fritts, and John
Whitcomb be granted under Sections 2.393 and 2.397 of the Employees’ Pension Plan, as
approved by the PAC accept the recommendation of the Pension Advisory Committee. The
motioncarried
was duly seconded and unanimously.
ITEM #5 – Request to Vest Pension
Joseph Reckenwald was employed by the City on October 21, 1974 and terminated
City employment on November 1, 2001. The Employees Pension Plan provides that should an
employee cease to be an employee of the City after completing ten or more years of creditable
service and 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. Mr. Reckenwald would have
completed 20 years of service and reached aged 55 on June 2, 2004. His pension will be
effective on July 1, 2004.
Trustee Hamilton moved to allow Joseph Reckenwald to vest his pension under
Sections 2.397 and 2.398 of the Employees Pension Plan as approved by the Pension
motion carried
Advisory Committee. The was duly seconded and unanimously.
Award contract to PriceWaterhouseCoopers LLP for
ITEM #6 - actuarial services for the
and
Employees' Pension Plan other related services for thethree year period ending
December 31, 2004, at a total cost not to exceed $94,000.
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The 8-member evaluation committee, composed of 3 union representatives, one
Pension Advisory Committee representative, and 4 management representatives reviewed
responses to RFP 61-01 and chose PriceWaterhouseCoopers LLP. The firm, previously
Coopers & Lybrand, has performed actuarial services for the Pension Plan for the past 13
years. Fees in the requested “not to exceed” amount include: 1) $19,000, $19,500, and
$20,000 – fixed fees for the annual actuarial report for the three-year period; 2) fee not-to
exceed $20,000 for a comprehensive review of plan actuarial assumptions; and 3) actuarial
advice to City staff.
Trustee Jonson moved to award contract to PriceWaterhouseCoopers LLP for actuarial
services for the Pension Plan and other related services for the three-year period ending
December 31, 2004, at a total cost not to exceed $94,000, and that the appropriate officials be
motion carried
authorized to execute same. The was duly seconded and unanimously.
Gray,
ITEM #7 - Approve an expenditure in the estimated amount of $5,000 to the law firm of
Harris, Robinson, Shackleford, & Farrier
for legal services and approve the payment of
Christiansen & Dehner
$210.00 per hour to the law firm of for attendance at all future
Investment Committee meetings (approximately $5,400.00).
Staff is reviewing the Pension Plan. As part of the process, several legal issues need
to be reviewed, including analysis of Social Security obligations under an opt-in provision and
a DROP (Deferred Retirement Option Plan). The City has a contract with the law firm of Gray,
Harris, Robinson, Shackleford, & Farrier to perform legal services not related to pension
issues.
The Trustees of the Employees’ Pension Plan approved a budget for the Pension Plan,
which included an estimated $50,000 for legal services. To date, $30,000 has been committed
to Christiansen & Dehner for legal services. Staff requests authorization to spend an
additional estimated $5,000 from the Pension Plan to allow Kelly Bosecker, Esq., from Gray,
Harris, et al, to research the above issues.
Staff also requests approval of an additional estimated $5,400 to Christiansen &
Dehner for attendance at the Investment Committee meetings.
In response to a question, Human Resources Administrator Paul O’Rourke said
attendance by the Pension Plan’s attorney at Investment Committee meetings will assure
fiduciary responsibility and is a standard practice for other Pension Plans. It was
recommended Investment Committee meetings be scheduled on the same day as PAC
(Pension Advisory Committee) meetings so an additional trip for the attorney is not necessary.
Mr. O’Rourke said staff will work to coordinate the meetings.
Trustee Jonson moved to approve an expenditure in the estimated amount of $5,000 to
the law firm of Gray, Harris, Robinson, Shackleford, & Farrier for legal services and approve
the payment of $210 per hour to the law firm of Christiansen & Dehner for attendance at all
future Investment Committee meetings (approximately $5,400) from the FY 2001/02 budget.
motion
The was duly seconded. Trustees Gray, Hamilton, Jonson, and Chair Aungst voted
carried
“Aye”; Trustee Hart voted “Nay.” Motion .
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It was recommended the motion reflect a requirement to coordinate PAC and
Investment Committee meetings to save charges for several hours of travel time. Finance
Administrator Margie Simmons said scheduling Investment Committee meetings already is
quite complicated and difficult as travel schedules for several investment consultants to attend
each meeting already must be coordinated. Pension Trustee Attorney Lee Dehner said his
firm will accommodate any schedule and will try to schedule another area client to divide travel
expenses.
ITEM #8 – Other Business
Mr. O’Rourke reported staff will present proposed changes to the Pension Plan in
January.
ITEM #9 - Adjournment
The meeting adjourned at 9:33 a.m.
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