01/21/2003
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
January 21, 2003
Present: Whitney Gray Vice-Chair/Trustee
Hoyt Hamilton Trustee
Frank Hibbard Trustee
William C. Jonson Trustee
Absent: Brian Aungst Chair
Also Present: William B. Horne II City Manager
Pamela K. Akin City Attorney
Scott Christiansen Pension Plan Attorney
Joe Roseto Human Resources Director
Cynthia E. Goudeau City Clerk
Patricia O. Sullivan Board Reporter
The Chair called the meeting to order at 9:10 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 Hibbard moved to approve the minutes of the November 18, 2002, 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 Director Joe Roseto presented the recommendation of the PAC
(Pension Advisory Committee) to approve membership for employees: Corey O'Neil, Min
Haley, Randy Pothier, John Krysher, Earl Gloster, Jason Gray, Kevin Duffy, William Olive,
Marvin Dodson III, Mark Hunt, Joseph Pruitt, Joel Gray, Waylon Olive, Jessica Collogan, Debra
Lagroix, Frederick Broda, Heather Faessler, John Rist, Rosemarie Alfaro, Darlene Ruud,
Deborah Moore, Tyrone Austin, Jonathan Hunter, Elaine Lewis, Alexander Lane, Jayme
Weaver, Roger Lane, James Beattie, Douglas Ball, Bruno Baiermann, Thomas Cleator,
Lafayette Gillette, and Angel Haines.
Trustee Hamilton moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
ITEM #4 - Requests for Pension
Mr. Roseto presented the recommendation of the Pension Advisory Committee that
Marvin Green, Dale Hoffman, Dennis Camara, Patrick Shepler, John Coleman, and Gerald
Bennett regular pensions
be granted under Sections 2.393 and 2.397 of the Employees'
Pension Plan.
Pension Trustees 2003-0121 01/21/03
1
Marvin Green was employed on January 31, 1983, and his pension service credit is
effective on that date. His pension will be effective on February 1, 2003. Based on an
average salary of approximately $48,060 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 $26,176 annually.
Dale Hoffman was employed on August 27, 1973, and his pension service credit is
effective on that date. His pension will be effective on February 1, 2003. Based on an
average salary of approximately $61,462 per year over the past 5 years, the formula for
computing regular pensions, and Mr. Hoffman’s selection of the 100% Joint & Survivor
Annuity, this pension will approximate $48,803 annually.
Dennis Camara was employed on August 6, 1979, and his pension service credit is
effective on that date. His pension will be effective on February 1, 2003. Based on an
average salary of approximately $56,070 per year over the past 5 years, the formula for
computing regular pensions, and Mr. Camara’s selection of the 100% Joint & Survivor Annuity,
this pension will approximate $35,679 annually.
Patrick Shepler was employed on October 13, 1980, and his pension service credit is
effective on that date. His pension will be effective on February 1, 2003. Based on an
average salary of approximately $60,499 per year over the past 5 years, the formula for
computing regular pensions, and Mr. Shepler’s selection of the 75% Joint & Survivor Annuity,
this pension will approximate $37,337 annually.
John Coleman was employed on January 31, 1983, and his pension service credit is
effective on that date. His pension will be effective on February 1, 2003. Based on an
average salary of approximately $48,284 per year over the past 5 years, the formula for
computing regular pensions, and Mr. Coleman’s selection of the 100% Joint & Survivor
Annuity, this pension will approximate $26,912 annually.
Gerald Bennett was employed on March 2,1971, and his pension service credit is
effective on that date. His pension will be effective on December 1, 2002. Based on an
average salary of approximately $53,738 per year over the past 5 years, the formula for
computing regular pensions, and Mr. Bennett’s selection of the 75% Joint & Survivor Annuity,
this pension will approximate $47,137 annually.
The PAC approved pensions for Messrs. Green and Hoffman on November 14, 2002,
and approved pensions for Messrs. Camara, Shepler, Coleman, and Bennett on December 12,
2002. 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 services as a Police Officer, Fire Lieutenant, and Fire
Lieutenant Rescur/Paramedic as meeting the hazardous duty criteria. Section 2.393 (p) also
provides for normal retirement eligibility when a participant has reached age 55 and completed
twenty years of credited service, has completed thirty years of credited service, or has reached
age 65 and completed ten years of credited service. Messrs. Green, Hoffman, Camara,
Shepler, and Coleman qualify under the hazardous duty criteria. Mr. Bennett qualifies under
the 30 years of service criteria.
Trustee Jonson moved to grant regular pensions for Marvin Green, Dale Hoffman,
Dennis Camara, Patrick Shepler, John Coleman, and Gerald Bennett under Sections 2.393
Pension Trustees 2003-0121 01/21/03
2
and 2.397 of the Employees’ Pension Plan, as approved by the Pension Advisory Committee.
motioncarried
The was duly seconded and unanimously.
Pension Trustees 2003-0121 01/21/03
3
ITEM #5 – Request to Vest Pension
Lee Achterhof was employed by the City on February 3, 1992 and terminated City
employment on August 12, 2002. Mr. Achterhof would have completed 20 years of service
and reached aged 55 on February 3, 2012. His pension will be effective on March 1, 2012.
Douglas Pope was employed by the City on December 18, 1982 and terminated City
employment on November 6, 2002. Mr. Pope would have completed 20 years of service and
reached aged 55 on October 23, 2006. His pension will be effective on November 1, 2006.
Robert Maltas was employed by the City on November 13, 1989 and terminated City
employment on November 1, 2002. Mr. Maltas would have completed 20 years of service and
reached aged 55 on March 30, 2012. His pension will be effective on April 1, 2012.
Etim Udoh was employed by the City on March 25, 1991 and terminated City
employment on October 3, 2002. Mr. Udoh would have completed 20 years of service and
reached aged 55 on March 25, 2011. His pension will be effective on April 1, 2011.
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.
Trustee Hamilton moved to allow Lee Achterhof, Douglas Pope, Robert Maltas, and
Etim Udoh to vest their pensions under Sections 2.397 and 2.398 of the Employees Pension
motion
Plan as approved by the Pension Advisory Committee. The was duly seconded and
carried
unanimously.
ITEM #6 – Approve Investment policy for the Employees' Pension Plan
The Pension Investment Advisory Committee annually reviews the investment policy to
see if any changes are needed. As a result of the latest review, the Pension Investment
Advisory Committee is recommending some minor changes be made. The following is a
summary of the most significant changes: 1) The section on Illiquid Investments has been
expended to require that a money manager notify the city when an investment becomes
illiquid; 2) Previously, all members of the investment committee were referenced by title in the
investment policy. This has been changed to eliminate all titles other than the Finance
Director, Assistant Finance Director, and the Cash & Investments Manager. Under the
proposed change, the Treasurer for the Trustees (Finance Director) appoints/removes other
finance professionals on an as-needed basis. Membership of the committee also has been
expanded to include union representatives; 3) The Fixed Income Segment section has been
expanded to require that a money manager notify the City when a security falls below
“investment grade” (the credit quality standard for the pension plan); 4) A section on Proxy
Voting has been added that requires at least a quarterly reporting to the City on proxy votes;
and 5) That earning rate of the plan has been increased to 7.5%. The firm of Christiansen and
Dehner reviewed this policy.
Pension Trustees 2003-0121 01/21/03
4
Cash & Investment Manager Steve Moskun said future tweaking will address the
Investment Committee membership change. In response to a question, he said Pension Plan
Attorney Lee Dehner had participated in committee meetings and worked to craft the
language.
Trustee Hibbard moved to approve the Investment policy for the Employee’s Pension
motion carried
Plan. The was duly seconded and unanimously.
Pension Plan Attorney Scott Christiansen said changes to the investment policy will go
into effect in 30 days.
ITEM #7 – Other Business
It was reported the PAC has elected a seventh member, Nathan Hightower.
ITEM #8 - Adjournment
The meeting adjourned at 9:15 a.m.
Pension Trustees 2003-0121 01/21/03
5