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01/16/2001 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING CITY OF CLEARWATER January 16, 2001 Present: Brian J. Aungst Chair J. B. Johnson Vice-Chair/Trustee Robert Clark Trustee Ed Hart Trustee F. David Hemerick 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 10:13 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 Hart moved to approve the minutes of the December 4, 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: Kamen Brant, Michael Pizzorusso, Lisa Turcotte, Mark Roberson, Diane Angello, William Dillashaw, Sharon Hofle, James Potts, Michael Anderson, Shizuka Wire, Candy Hansen, Angela Creel, Stephen Agathos, Brian Murphree, James Jerkins, Lynne Pulizotto, & Rodgerick Scott Trustee Hart moved to accept the recommendation of the Pension Advisory Committee. motioncarried The was duly seconded and unanimously. ITEM #4 - Request for Pension: The Interim City Manager presented the recommendation of the Pension Advisory Willie Jeter, Frank Bowler, Douglas Bunting, John H. Donaldson, James H. Committee that Moore, Charles Castanza, & Tami Jo Swain regular pensions be granted under Section(s) 2.393 and 2.397 of the Employees' Pension Plan. mpf01a01 1 01/16/01 Willie Jeter was employed on June 29, 1976, and his pension service credit is effective on December 29, 1976. His pension will be effective February 1, 2001. Based on an average salary of approximately $27,726 per year over the past 5 years, the formula for computing regular pensions, and Mr. Jeter's selection of the 100% Joint & Survivor Annuity, this pension will approximate $17,853 annually. Frank Bowler was employed on June 1, 1981, and his pension service credit is effective on that date. His pension will be effective July 1, 2001. Based on an average salary of approximately $41,984 per year over the past 5 years, the formula for computing regular pensions, and Mr. Bowler's selection of the 75% Joint & Survivor Annuity, this pension will approximate $23,362 annually. Douglas Bunting was employed on May 19, 1975, and his pension service credit is effective on that date. His pension will be effective February 1, 2001. Based on an average salary of approximately $42,647 per year over the past 5 years, the formula for computing regular pensions, and Mr. Bunting's selection of the 100% Joint & Survivor Annuity, this pension will approximate $29,697 annually. John H. Donaldson was employed on August 28, 1978, and his pension service credit is effective on that date. His pension will be effective December 1, 2000. Based on an average salary of approximately $61,153 per year over the past 5 years, the formula for computing regular pensions, and Mr. Donaldson's selection of the Life Annuity, this pension will approximate $37,930 annually. James H. Moore was employed on August 8, 1967, and his pension service credit is effective on that date. His pension will be effective December 1, 2000. Based on an average salary of approximately $59,792 per year over the past 5 years, the formula for computing regular pensions, and Mr. Moore's selection of the 100% Joint & Survivor Annuity, this pension will approximate $53,620 annually. Charles Castanza was employed on March 1, 1976, and his pension service credit is effective on October 9, 1976. His pension will be effective February 1, 2001. Based on an average salary of approximately $44,237 per year over the past 5 years, the formula for computing regular pensions, and Mr. Castanza's selection of the 100% Joint & Survivor Annuity, this pension will approximate $28,961 annually. Tami Jo Swain was employed on October 13, 1980, and her pension service credit is effective on that date. Her pension will be effective December 1, 2000. mpf01a01 2 01/16/01 Based on an average salary of approximately $47,367 per year over the past 5 years, the formula for computing regular pensions, and Ms. Swain's selection of the Joint & Survivor Annuity, this pension will approximate $26,197 annually. These pensions were approved by the PAC on December 14, 2000. 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. Section 2.393 (p) also 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/Driver Operator, Fire Lieutenant/Rescue Paramedic, and Police Officer as meeting the hazardous duty criteria. Mr. Jeter and Mr. Bowler qualify under the age 55 and 20 years of service criteria and Mr. Bunting, Mr. Donaldson, Mr. Moore, Mr. Castanza, and Ms. Swain qualify under 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 Jeffrey L. Patterson vest his pension Committee that be allowed to under Section(s) 2.397 and 2.398 of the Employees' Pension Plan. Jeffrey L. Patterson was employed on October 24, 1983, and his pension service credit is effective on that date. He resigned from City employment on December 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. Section 2.393 (p) also 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 as meeting the hazardous duty criteria. Mr. Patterson would have completed 20 years of service on October 24, 2003. His pension will be effective on November 1, 2003. This request was approved by the PAC on December 14, 2000. Trustee Clark moved to accept the recommendation of the Pension Advisory motioncarried Committee. The was duly seconded and unanimously. Survivor's Pension ITEM #6 - Request for : Rosa Conn, Widow of James Conn mpf01a01 3 01/16/01 The Interim City Manager presented the recommendation of the Pension Advisory Rosa Conn, widow of James Conn death benefit Committee that be granted a under Section 2.397 of the Employees' Pension Plan. James Conn was employed on August 28, 1972, and his pension service credit is effective on February 28, 1973. Mr. Conn passed away on October 21, 2000. Rosa K. Conn, widow of James Conn, applied for death benefits on October 24, 2000. Mr. and Mrs. Conn were legally married on August 28, 1982, thereby entitling her to death benefits under provisions of the Employees' Pension Plan. Mrs. Conn's request for death benefits was approved by the PAC on December 14, 2000. The amount of Mrs. Conn's pension will be computed by the Finance Department at a later date. This pension will be effective November 1, 2000. Based on an average salary of approximately $34,202 per year over the past five years, this pension will approximate $25,998 annually. Trustee Hemerick moved to accept the recommendation of the Pension Advisory motioncarried Committee. The was duly seconded and unanimously. buy back ITEM #7 - Request to previous pension service credit: Leonard Marotta The Interim City Manager presented the recommendation of the Pension Advisory Leonard Marotta Committee that be allowed to buy back his previous pension service credit. Leonard Marotta was originally employed on August 26, 1979. Mr. Marotta resigned on August 26, 1982, after 3 years of service and withdrew his pension contributions in the amount of $3,890.97. Mr. Marotta formally requested a withdrawal of his resignation under the appropriate Civil Service Rule. Although this request was made 19 days past the 6-month deadline, he was granted approval by the City Manager at that time to withdraw the resignation. He returned to work as a Police Officer on April 25, 1983. Upon his return, Mr. Marotta's seniority date was adjusted by 241 days, the number of days he was actually gone, as is done in any case where an employee withdraws a resignation. Additionally, Mr. Marotta was credited with all his benefits, including sick leave and vacation. At that time, Mr. Marotta made a request to pay back the monies he had withdrawn from the Pension Plan. Mr. Marotta was advised by the Police Chief that his request was denied. In 1996, Mr. Marotta made another request to buy back his pension service credit. He was advised that the amount he would have to pay back at that time was in excess of $65,000. At the PAC meeting on March 11, 1999, Mr. Marotta again asked the Committee to allow him to buy back the 3 years. After some discussion, a motion was made and carried that Mr. Marotta be allowed to buy back his previous years of service with interest on the $3,890.97 in the amount of 5% per year from the date he left in 1982 until the present time. On June 1, 1999, the Pension Trustees approved this buy back request. At a subsequent meeting on mpf01a01 4 01/16/01 June 7, 1999, this action of the Trustees, together with the approval of David Krieger's buy back, was rescinded on the advice of Lee Dehner, the Committee's pension attorney, that the ordinance did not provide for such buy back. Mr. Krieger subsequently filed suit in Circuit Court and the action of the Trustees was nullified by the Court and the request to buy back upheld. At the PAC meeting of December 14, 2000, Mr. Marotta renewed his request for buy back pension service on the grounds that he and Mr. Krieger were approved at the same time and he should be entitled to the same relief granted Mr. Krieger. The PAC approved his request to buy back 3 years of service by a vote of 6 to 1. Trustee Johnson moved to accept the recommendation of the Pension Advisory motion Committee. The was duly seconded. Upon the vote being taken, Chair Aungst and carried Trustees Johnson, Clark, and Hemerick voted “aye”; Trustee Hart voted “nay”. Motion . ITEM #8 - Other Business - None. ITEM #9 - Adjournment The meeting adjourned at 10:16 a.m. mpf01a01 5 01/16/01