04/02/2001
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
April 2, 2001
Present: Brian J. Aungst Chair
Ed Hart Trustee
Whitney Gray Trustee
Hoyt P. Hamilton Trustee
William C. Jonson Trustee
Also present: William B. Horne II Interim City Manager
Pamela K. Akin City Attorney
Scott Christiansen 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 9:01 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 January 25, 2001 special
meeting and the February 12, 2001, regular meeting, as recorded and submitted in written
motioncarried
summation by the City Clerk to each Trustee. The was duly seconded and
unanimously.
ITEM #3 - Request for Acceptance into Membership:
The Human Resources Administrator presented the recommendation of the Pension
approve membership
Advisory Committee to for the employees listed below:
Charles Ashe, Adam Leach, Julie Tynefield, Douglas Lovejoy, Phillip Charles, Maria Quioco,
Suzanne Hamilton, Michele Jaworck, James West, Heather Shell,, Jessica McLucas, Sheldon
Goodloe, Julian Johnson, Antonis Magganas, John McQueeney, Tracey Reed, Gregory
Browning, Derek Higgins, Tim LaVechia, Marralyn Malcolm-Smith, Bridgett Vinson, & Travis
Lowe
Trustee Hart moved to accept the recommendation of the Pension Advisory Committee.
motioncarried
The was duly seconded and unanimously.
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ITEM #4 - Request for Pension:
The Human Resources Administrator presented the recommendation of the Pension
Howard Huff, Gerald McDevitt, Wayne Tiggett, and Jerry
Advisory Committee that
Worsham regular pensions
be granted under Section(s) 2.393 and 2.397 of the Employees'
Pension Plan.
Howard Huff was employed on September 8, 1964, and his pension service credit is
effective on that date. His pension will be effective April 1, 2001.
Based on an average salary of approximately $54,242 per year over the past 5 years,
the formula for computing regular pensions, and Mr. Huff's selection of the 100% Joint &
Survivor Annuity, this pension will approximate $53,251 annually.
Gerald McDevitt was employed on January 20, 1975, and his pension service credit is
effective on July 28, 1975. His pension will be effective April 1, 2001.
Based on an average salary of approximately $49,973 per year over the past 5 years,
the formula for computing regular pensions, and Mr. McDevitt's selection of the Joint &
Survivor Annuity, this pension will approximate $34,466 annually.
Wayne Tiggett was employed on July 23, 1974, and his pension service credit is
effective on January 6, 1981. His pension will be effective February 1, 2001.
Based on an average salary of approximately $50,346 per year over the past 5 years,
the formula for computing regular pensions, and Mr. Tiggett's selection of the 100% Joint &
Survivor Annuity, this pension will approximate $27,402 annually.
Jerry Worsham was employed on February 14, 1977, and his pension service credit is
effective on that date. His pension will be effective March 1, 2001.
Based on an average salary of approximately $54,656 per year over the past 5 years,
the formula for computing regular pensions, and Mr. Worsham's selection of the 100% Joint &
Survivor Annuity, this pension will be approximately $35,522 annually.
These pensions were approved by the PAC on March 8, 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. 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 Fire
District Chief and Fire Deputy Chief/Logistics as meeting the hazardous duty criteria. Mr. Huff
qualifies under the age 55 and 20 years of service and the 30 years of service criteria, Mr.
McDevitt qualifies under the age 55 and 20 years of service criteria, and Mr. Tiggett and Mr.
Worsham qualify under the hazardous duty criteria.
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Trustee Jonson moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
ITEM #5 - Request for Survivor's Pension:
The Human Resources Administrator presented the recommendation of the Pension
Dianne Sedrick death benefit
Advisory Committee that be granted a under Section(s) 2.397
of the Employees' Pension Plan.
William Sedrick was employed by the City on January 8, 1973, and his pension service
credit is effective on that date. Mr. Sedrick passed away on December 21, 2000. Dianne
Sedrick, widow of William Sedrick, applied for death benefits on February 28, 2001. Mr. and
Mrs. Sedrick were legally married on June 26, 1982, thereby entitling her to death benefits
under provisions of the Employees' Pension Plan.
Mrs. Sedrick's request for death benefits was approved by the PAC on March 8, 2001.
The amount of Mrs. Sedrick's pension will be computed by the Finance Department at a later
date. This pension will be effective January 1, 2001.
Based on an average salary of approximately $54,617 per year over the past five
years, this pension will approximate $42,026 annually.
Trustee Hart moved to accept the recommendation of the Pension Advisory Committee.
motioncarried
The was duly seconded and unanimously.
ITEM #6 - Request to Vest Pension:
The Human Resources Administrator presented the recommendation of the Pension
Deborah Earney and Albert Chaffer vest their
Advisory Committee that be allowed to
pensions
under Section(s) 2.397 and 2.398 of the Employees' Pension Plan.
Deborah Earney was employed on March 18, 1985, and her pension service credit is
effective on that date. She terminated from City employment on July 31, 1999.
Albert Chaffer was employed on March 22, 1982, and his pension service credit is
effective on that date. He terminated from City employment on March 9, 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
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credited service, or has reached age 65 and completed 10 years of credited service. Ms.
Earney would have completed 20 years of service and reached age 55 on February 20, 2010.
Her pension will be effective on March 1, 2010. Mr. Chaffer would have completed 20 years of
service and reached age 55 on March 22, 2002. His pension will be effective on April 1, 2002.
These requests were approved by the PAC on March 8, 2001.
Trustee Hamilton moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
ITEM #7 - Request to buy back previous pension service credit:
The Human Resources Administrator presented the recommendation of the Pension
James Kleinsorge's request to buy back previous pension
Advisory Committee that
service credit
be denied.
James Kleinsorge was originally employed on December 30, 1991. Mr. Kleinsorge
resigned from the City on February 11, 1994, and withdrew his pension contributions in the
amount of $4,667.13. Mr. Kleinsorge formally requested a withdrawal of his resignation under
the appropriate Civil Service Rule. His request was granted and he returned to work as a
Police Officer on August 6, 1994. Upon his return, Mr. Kleinsorge's seniority date was
adjusted by 175 days, the number of days he was actually gone, as is done in any case where
an employee withdraws a resignation. Additionally, Mr. Kleinsorge was credited with all his
benefits, including sick leave and vacation.
At that time, although no provision existed in the ordinance, the PAC and the Pension
Trustees established a policy for repayment of contributions when an employee returns to work
after withdrawing a resignation. Under this policy, a returning employee had two weeks from
the date of return to advise the PAC in writing of the intention to repay contributions. Upon
notification to the PAC, the employee had 90 days from the date of return to repay the fund.
By letter dated July 20, 1994, from H. Michael Laursen, Human Resources Director, Mr.
Kleinsorge was provided a copy of this policy. Upon his reemployment, Mr. Kleinsorge took no
action regarding his pension contributions. He was readmitted to the Pension Plan with an
eligibility date of August 6, 1994.
Several years ago when the PAC and Trustees were considering the buy back requests
of David Krieger and Leonard Marotta, Mr. Kleinsorge also made a request to buy back his
previous time. The PAC and Trustees took no action on this request upon the advice of their
pension attorney. On February 8, 2001, Mr. Kleinsorge's attorney, Andra Dreyfus, again
presented his request to the PAC and the request was denied.
Trustee Hart moved to deny James Kleinsorge's request to buy back previous pension
motioncarried
service credit. The was duly seconded and unanimously.
ITEM #8 - Other Business
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Board Attorney Scott Christiansen said Pension Trustees training will be scheduled
regarding investments and Board responsibilities to meet continuing education requirements
as required by new legislation. The training may be combined with other clients in the area.
The Human Resources Administrator said newly elected PAC member Steve Sarnoff
will replace Pat Greer. In June 2001, an election will be held for that seat and Member
Schmalzbauer’s seat.
ITEM #9 - Adjournment:
The meeting adjourned at 9:08 a.m.
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