10/13/2003
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
October 13, 2003
Present: Brian Aungst Chair
Hoyt Hamilton Vice-Chair/Trustee
Whitney Gray Trustee
Frank Hibbard Trustee
William C. Jonson Trustee
Also Present: William B. Horne II City Manager
Garry Brumback Assistant City Manager
Pamela K. Akin City Attorney
Joe Roseto Human Resources Director
Cynthia E. Goudeau City Clerk
Brenda Moses Board Reporter
The Chair called the meeting to order at 1:22 p.m. at City Hall.
To provide continuity for research, items are in agenda order although not
necessarily discussed in that order.
2. Approval of Minutes: September 15, 2003
Trustee Jonson moved to approve the minutes of the September 15, 2003,
meeting, as recorded and submitted in written summation by the City Clerk to each
motioncarried
Trustee. The was duly seconded and unanimously.
3. Request for Acceptance into Membership: Robert McKnight, Richard McGinley,
Russell Becker, Rachel DeBella, Ian Prior, Gabriel Parra, John Giordano, James
Armstrong, Louis Beem, Bonnie Bagry, Ryan Robinson, Roy Dacke, Philip Harris,
Elizabeth McCluskey, Anthony Martin, Willie Watts, and Jemarall Richards.
Human Resources Director Joe Roseto presented the recommendation of the
PAC (Pension Advisory Committee) to approve membership for employees: Robert
McKnight, Richard McGinley, Russell Becker, Rachel DeBella, Ian Prior, Gabriel Parra,
John Giordano, James Armstrong, Louis Beem, Bonnie Bagry, Ryan Robinson, Roy
Dacke, Philip Harris, Elizabeth McCluskey, Anthony Martin, Willie Watts, and Jemarall
Richards.
Trustee Gray moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
4. Regular Pension(s) to be granted: Fredrick Maier, Firefighter, Fire Department;
Donald Flynn, Firefighter, Fire Department; Thomas Mulder, Police Officer, Police
Department; James Milton Smith, Maintenance Worker II, Public Services; and
Raymond Taylor, Communications Operator, Police Department, be granted regular
pensions under Section(s) 2.393 and 2.397 of the Employees' Pension Plan as approved
by the Pension Advisory Committee.
Pension Trustees 2003-10-13 1 10/13/03
Mr. Roseto presented the recommendation of the Pension Advisory Committee
that Fredrick Maier, Firefighter, Fire Department; Donald Flynn, Firefighter, Fire
Department; Thomas Mulder, Police Officer, Police Department; James Milton Smith,
Maintenance Worker II, Public Services; and Raymond Taylor, Communications
Operator, Police Department, be granted regular pensions under Section(s) 2.393 and
2.397 of the Employees' Pension Plan as approved by the Pension Advisory Committee.
The City employed Fredrick Maier, Firefighter, Fire Department, on October 10,
1977, and his pension service credit is effective on that date. His pension will be
effective October 1, 2003. Based on an average salary of approximately $48,707 per
year over the past five years, the formula for computing regular pensions, and Mr.
Maier's selection of the 100% Joint & Survivor Annuity, this pension will be
approximately $34,284 annually.
The City employed Donald Flynn, Firefighter, Fire Department, on May 29, 1972,
and his pension service credit is effective on that date. His pension will be effective
August 1, 2003. Based on an average salary of approximately $45,038 per year over the
past five years, the formula for computing regular pensions, and Mr. Flynn's selection of
the 100% Joint & Survivor Annuity, this pension will be approximately $37,990 annually.
The City employed Thomas Mulder, Police Officer, Police Department, on March
25, 1974, and his pension service credit is effective on that date. His pension will be
effective September 1, 2003. Based on an average salary of approximately $58,511 per
year over the past five years, the formula for computing regular pensions, and Mr.
Mulder ‘s selection of the 100% Joint & Survivor Annuity, this pension will be
approximately $46,344 annually.
The City employed James Milton Smith, Maintenance Worker II, Public Services
Department, on October 17, 1973, and his pension service credit is effective on April 16,
1974. His pension will be effective November 1, 2003. Based on an average salary of
approximately $25,485 per year over the past five years, the formula for computing
regular pensions, and Mr. Smith's selection of the 100% Joint & Survivor Annuity, this
pension will be approximately $20,196 annually.
Raymond Taylor, Communications Operator, Police Department, was employed
by the City on September 19, 1983, and his pension service credit is effective on that
date. His pension will be effective October 1, 2003. Based on an average salary of
approximately $33,807 per year over the past five years, the formula for computing
regular pensions, and Mr. Taylor’s selection of the Life Annuity, this pension will be
approximately $20,274 annually.
The Pension Advisory Committee approved these pensions on August 28, 2003.
Section 2.393(p) 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.
Section 2.393 also (p) provides for normal retirement eligibility when a participant has
completed twenty years of credited service in a type of employment described as
“hazardous duty” and further specifically defines service as a Police Officer and
Firefighter as meeting the hazardous duty criteria. Mr. Maier, Mr. Flynn and Mr. Mulder
qualify under the hazardous duty criteria. Mr. Smith qualifies under the 20 years of
Pension Trustees 2003-10-13 2 10/13/03
service and age 55 and the 30 years of service criteria. Mr. Taylor qualifies under the 20
years of service and age 55 criteria.
Trustee Hibbard moved to grant regular pensions for Fredrick Maier, Firefighter,
Fire Department; Donald Flynn, Firefighter, Fire Department; Thomas Mulder, Police
Officer, Police Department; James Milton Smith, Maintenance Worker II, Public
Services; and Raymond Taylor, Communications Operator, Police Department, as
motion
approved by the Pension Advisory Committee. The was duly seconded and
carried
unanimously.
5. Pension(s) to be vested: Cynthia Bender, Human Resources Department and
Larry Shefts, Engineering Department be allowed to vest their pensions under Section(s)
2.397 and 2.398 of the Employees' Pension Plan as approved by the Pension Advisory
Committee
Cynthia Bender, Benefits Manager, Human Resources Department was
employed by the City on June 24, 1981, and began participating in the Pension Plan on
that date. Ms. Bender terminated from City employment on June 5, 2003.
Larry Shefts, Parking Technician, Engineering Department, was employed by the
City on December 17, 1990, and began participating in the Pension Plan on that date.
Mr. Shefts terminated from City employment on May 9, 2003.
The Employees' Pension Plan provides that should an employee cease to be an
employee of the City of Clearwater after completing ten or more years of creditable
service (pension participation), 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 completed twenty years of credited service in a type of employment described as
"hazardous duty" and further specifically defines service as a Police Officer as meeting
the hazardous duty criteria. Section 2.393 also (p) provides for normal retirement
eligibility when a participant has reached age 55 and completed twenty years of credited
service, has completed 30 years of credited service, or has reached age 65 and
completed ten years of credited service.
Ms. Bender would have had thirty years of service on June 24, 2011. Her
pension will be effective on July 1, 2011.
Mr. Shefts would have twenty years of credited service and reach age 55 on
December 17, 2010. His pension will be effective January 1, 2011.
The Pension Advisory Committee approved these pensions on August 28, 2003.
Trustee Hamilton moved to allow Cynthia Bender, Human Resources
Department and Larry Shefts, Engineering Department to vest their pensions 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.
6. Review the attached letter from the Pension Plan's attorney (Klausner and
Kaufman) and provide direction to the Plan's attorney for future work priorities.
Pension Trustees 2003-10-13 3 10/13/03
Klausner and Kaufman were hired as the Plan's attorney beginning May 12,
2003. Since that time, they have worked on several projects including disabilities,
review of the investment policy, assisted with contract language for consultants, review
of procedures manuals, etc. Klausner and Kaufman have prepared a written summary
of their work to date and will make a presentation at the Trustee meeting. Direction from
the Trustees is requested as to what projects they would like the firm to work on in the
future. The City Attorney, Finance Director, and Human Resources Director will be
available at the meeting to discuss areas where additional assistance will be requested
from Klausner and Kaufman. The current approval runs from May 12, 2003 - September
30, 2004 for a total of $60,000. This amount was set based on prior experience without
regard to specific tasks that will be required. From May 12, 2003 – August 31, 2003,
$16,827.63 has been spent. After direction is received from the Trustees, an agenda
item will be brought forward to approve a new "not to exceed" amount, if necessary.
Stu Klausner, Klausner and Kaufman, provided an update advising what his firm
has accomplished to date. He said they are performing a comprehensive review of the
pension code and will be bringing forward recommendations in the next two to three
months. Mr. Klausner suggested scheduling a workshop with the Commission regarding
the recommended changes. Mr. Klausner’s firm was complimented for their proactive
stance.
In response to a question, Human Resources Director Joe Roseto said some
recommendations that were previously suggested by the former pension attorney firm
were being reviewed and considered. Due to continuing union negotiations, they have
been postponed until the negotiations have been completed.
7. Approve the following policy with regard to travel for the Employees Pension
Plan: It is the policy of the Trustees of the Employees Pension Plan to follow the City of
Clearwater ordinances and policies with regard to travel including per diem and travel
expenses for travelers; all expenses for travel must be approved in advance by the
Trustees.
The Board of Trustees encourages all Trustees, Pension Advisory Committee
members, Investment Committee members, Pension Fund staff, and other personnel
performing duties on behalf of the Fund to regularly attend seminars, conferences and
schools, which are designed to increase their knowledge of pension administration,
investments, and fiduciary standards.
Section 2.321 through Section 2.332 of the City’s Code of Ordinances governs
City travel. Legislation was passed this year, which enables entities to prescribe their
own rates for reimbursement of travel expenses, and the City is in the process of
updating these codes accordingly. In order to make travel reimbursement consistent
between the City and the Pension Plan, the Trustees should adopt a policy stating that
travel for the pension plan is governed by the same rules and regulations as City travel.
The adoption of this policy is consistent with the obligations set forth in Section
112.661(14), Florida Statutes, concerning continuing education of trustees relating to
investments and board responsibilities. This policy shall also apply to travel related to
due diligence of investment managers. This policy is adopted pursuant to Section
166.021 Florida Statutes, which permits the Board of Trustees to depart from the
provisions of 112.661, Florida Statutes.
Pension Trustees 2003-10-13 4 10/13/03
Trustee Gray moved to approve the travel policy of the Trustees of the
Employees Pension Plan to follow the City of Clearwater ordinances and policies with
regard to travel including per diem and travel expenses for travelers; all expenses for
motion
travel must be approved in advance by the Trustees. The was duly seconded
carried
and unanimously.
8. Other Business – None.
9. Adjourn
The meeting adjourned at 1:31 p.m.
Pension Trustees 2003-10-13 5 10/13/03