10/18/2004
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
October 18, 2004
Present: Brian Aungst Chair
Frank Hibbard Trustee
Hoyt Hamilton Trustee
William C. Jonson Trustee
Carlen Petersen Trustee
Also Present: Garry Brumback Assistant City Manager
Pamela K. Akin City Attorney
Joe Roseto Human Resources Director
Cynthia E. Goudeau City Clerk
Patricia O. Sullivan Board Reporter
The Chair called the meeting to order at 9:59 a.m. at City Hall.
To provide continuity for research, items are in agenda order although not
necessarily discussed in that order.
Approval of Minutes:
Trustee Hibbard moved to approve the minutes of the September 13, 2004, meeting,
as recorded and submitted in written summation by the City Clerk to each Trustee and the
motion
minutes of the June 14, 2004, meeting, as corrected. The was duly seconded and
carried
unanimously.
Pension Trustees Items
1. Accept the employees listed below into membership in the City of Clearwater's Employees'
Pension Plan: Joseph Hamm, Kenneth Paul, William Anderson, Milisa Schnatterer, Clifton
Long, Christopher Gresham, Timothy Ferlanie, Sam Elliott, Lawrence Divine, Khanh Doan,
Toilea Fetuuaho, Chad Korince, Robert Lee, Matt Lefort, Robert Palisi, Jr., Jim Schaus, Blaise
Sciarra, Raymond Tracy, Che Jean-Pierre, and Brian Wilhite.
The Pension Advisory Committee recommended that these employees be accepted
into membership in the City of Clearwater's Employees' Pension Plan.
Trustee Hamilton moved to accept the recommendation of the Pension Advisory
motioncarried
Committee. The was duly seconded and unanimously.
2. Grant regular pensions to Dorothy A. Reehling, Official Records and Legislative Services
Department; Thomas L. Miller, Police Department; and Steven Burch, Police Department under
Section(s) 2.393 and 2.397 of the Employees’ Pension Plan as approved by the Pension
Advisory Committee.
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Dorothy A. Reehling, City Clerk Specialist, Official Records & Legislative Services
Department, was employed by the City on June 5, 1989, and her pension service credit is
effective on that date. Her pension will be effective December 1, 2004. Based on an average
salary of approximately $31,460 per year over the past five years, the formula for computing
regular pensions, and Ms. Reehling's selection of the Joint & Survivor Annuity, this pension will
approximate $13,254 annually.
Thomas L. Miller, Police Sergeant, Police Department, was employed by the City on
April 5, 1976, and his pension service credit is effective on October 9, 1976. His pension will be
effective September 1,2004. Based on an average salary of approximately $67,043 per year
over the past five years, the formula for computing regular pensions, and Mr. Miller's selection
of the 100 % Joint & Survivor Annuity, this pension will approximate $50,389 annually.
Steven Burch, Police Lieutenant, Police Department, was employed by the City on May
12, 1980, and his pension service credit is effective on that date. His pension will be effective
September 1, 2004. Based on an average salary of approximately $76,258 per year over the
past five years, the formula for computing regular pensions, and Mr. Burch's selection of the
75% Joint & Survivor Annuity, this pension will approximate $51,243 annually.
These pensions were approved by the Pension Advisory Committee on September 9,
2004. 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.
Trustee Jonson moved to grant regular pensions to Dorothy A. Reehling, Official
Records and Legislative Services Department; Thomas L. Miller, Police Department; and
Steven Burch, Police Department, under Section(s) 2.393 and 2.397 of the Employees' Pension
Plan as approved by the Pension Advisory Committee. The motion was duly seconded and
carried unanimously.
3. Approve a contract with Kalson & Associates for Asset Allocation Study for a cost of $12,000
and for appropriate officials to execute same.
The Pension Investment Committee recommends that an asset allocation study be
performed on the pension plan. The purpose of an Asset Allocation Study is to determine the
proper asset mix that will generate the maximum return with an acceptable level of risk and to
determine what rate of return can be expected over time based upon the asset mix. Currently
the Plan's assets allocation is 52% Domestic Equity, 9% International Equity (for a total equity
of 61 %), and 39% Domestic Fixed Income. The actuary assumed rate of return is 7.5%.
Staff obtained price quotes from: 1) Kalson & Associates - $12,000; 2) Palmer & Cay-
$12,500; and 3) Callan Associates - $20,000. These firms were the three finalists in the
Performance Measurement RFP (Request for Proposal) that will be brought forward in the near
future. Staff has met with representatives from Kalson & Associates and reviewed their
approach to the study. Staff also has check Kalson's references. The contract has been
approved by Klausner & Kaufman.
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Trustee Petersen moved to approve a contract with Kalson & Associates for Asset
Allocation Study for a cost of $12,000 and for appropriate officials to execute same. The
motion was duly seconded and carried unanimously.
Other Business: - None.
Adiourn
The meeting adjourned at 10:02 a.m.
Chair
Employee's Pen 'on Plan Trustees
Attest:
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