01/18/2005
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TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
January 18, 2005
Present:
Vice-ChairlTrustee
Trustee
Trustee
Trustee
William C. Jonson
Hoyt Hamilton
Carlen Petersen
John Doran
Absent:
Frank Hibbard
Chair
Also Present:
Garry Brumback
Pamela K. Akin
Cynthia E. Goudeau
Patricia O. Sullivan
Assistant City Manager
City Attorney
City Clerk
Board Reporter
The Chair called the meeting to order at 9:11 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 Petersen moved to approve the minutes of the December 13, 2004, meeting, as
recorded and submitted in written summation by the City Clerk to each Trustee. The motion
was duly seconded and carried unanimously.
Pension Trustees Items
1. Accept the employees listed into membership in the City of Clearwater's Employees' Pension
Plan: Karl Wielecki, David Rawley, Mitchell Moen, Roy Buss, Patricia Stephen-Zitouni, Adriana
Topel, Zoltan Hortobagyi, Angela Fortney, James Stanley, Soney Louvon, Vincent Montalvo,
Brian Munoz, David Palek, James Reilly, Natalia IIlica, Reba Harrison, Matthew Jackson, and
Josh Hoff.
The Pension Advisory Committee recommended that these employees be accepted into
membership in the City of Clearwater's Employees' Pension Plan.
Trustee Petersen moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
2 - Rosalie Backus. Customer Service Department. and Neil Sickler. Public Utilities
Department. be aranted reaular pensions under Section(s) 2.393 and 2.397 of the Employees'
Pension Plan as approved by the Pension Advisory Committee.
Rosalie Backus, Customer Service Representative, Customer Service Department, was
employed by the City on February 18, 1985, and her pension service credit is effective on
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August 24, 1989. Her pension will be effective December 1, 2004. Based on an average salary
of approximately $32,453 per year over the past five years, the formula for computing regular
pensions, and Ms. Backus' selection of the Joint & Survivor Annuity, this pension will
approximate $12,968 annually.
Neil D. Sickler, Wastewater Collection Superintendent, Public Utilities Department, was
employed by the City on May 16, 1977, and his pension service credit is effective on June 18,
1977. His pension will be effective February 1, 2005. Based on an average salary of
approximately $55,961 per year over the past five years, the formula for computing regular
pensions, and Mr. Sickler's selection of the Joint & Survivor Annuity, this pension will
approximate $42,462 annually.
These pensions were approved by the Pension Advisory Committee on December 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. Ms.
Backus qualifies under the age 65 and ten years of service criteria and Mr. Sickler qualifies
under the age 55 and twenty years of service criteria.
Trustee Petersen moved that Rosalie Backus, Customer Service Department, and Neil
Sickler, Public Utilities 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
motion was duly seconded and carried unanimously.
3 - Award a contract to PriceWaterhouseCoopers LLP for actuarial services for the Emplovees'
Pension Plan and other related services for the five-year period endinq December 31. 2009. at
a total cost not to exceed $217.500. and that the appropriate officials be authorized to execute
same.
PriceWaterhouseCoopers LLP was chosen after evaluation of responses to RFP 26-04.
The five-member evaluation committee was composed of one Pension Advisory Committee
representative, and four management representatives from Finance, Human Resources, and
the City Manager's Office.
The City of Clearwater also will be contracting separately with PriceWaterhouseCoopers
LLP, at a later date, for health and welfare actuarial services as a result of this RFP (Request
for Proposal) process. PriceWaterhouseCoopers has performed actuarial services for the
Employees' Pension Plan for the past sixteen years.
Fees included in the requested "not to exceed" amount include: fixed fees for the annual
actuarial report of $21,000 annually for the five-year period; annual pension plan individual
benefit statements for a fixed annual fee of $2,500; and actuarial advice to City staff over the
five-year period, on an as-needed basis, in the amount of $25,000.
Additional funding of $75,000 is included for cost studies, if needed, to determine the
impact of any pension plan changes proposed via the collective bargaining process.
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In response to a question, Assistant Finance Director Jay Ravins said the PAC (Pension
Advisory Committee) had been provided with information on this item. The PAC discussed it in
detail.
Trustee Petersen moved to approve the award a contract to PriceWaterhouseCoopers
LLP for actuarial services for the Employees' Pension Plan and other related services for the
five-year period ending December 31,2009, at a total cost not to exceed $217,500, and that the
appropriate officials be authorized to execute same. The motion was duly seconded and
carried unanimously.
Other Business:
Human Resources Director Joe Roseto announced a Joint Work Session with the
Pension Trustees and the Pension Advisory Committee is scheduled in Chambers on January
31,2005, at 2:00 p.m.
Adiourn
The meeting adjourned at 9:15 a.m.
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