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01/12/2015 Pension Trustees Meeting Minutes January 12, 2015 City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 e d s w r' �mu Meeting Minutes Monday, January 12, 2015 1 :00 PM Pension Trustees Page 1 City of Clearwater Pension Trustees Meeting Minutes January 12, 2015 Roll Call Present 4 - Chair George N. Cretekos, Trustee Doreen Hock-DiPolito, Trustee Bill Jonson, and Trustee Hoyt Hamilton Absent 1 - Trustee Jay E. Polglaze Also Present: William B. Horne 11- City Manager, Jill S. Silverboard - Assistant City Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk, Nicole Sprague — Official Records and Legislative Services Coordinator To provide continuity for research, items are listed in agenda order although not necessarily discussed in that order. 1. Call To Order— Chair Cretekos The meeting was called to order at 1:08 p.m. at City Hall. It was stated that Councilmember Polglaze was unable to attend due to a family matter. 2. Approval of Minutes 2.1 Approve the minutes of the November 17, 2014 Pension Trustees meeting as submitted in written summation by the City Clerk. Trustee Hamilton moved to approve the minutes of the November 17, 2014 Pension Trustees meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. 3. Citizens to be Heard Regarding Items Not on the Agenda — None. 4. New Business Items 4.1 Approve the new hires for acceptance into the Pension Plan as listed. Name, Job. Class, & Dept./Div. Pension Elig. Date Kelly Violante, Accounting Clerk, General Services Dept 11/17/2014 Page 2 City of Clearwater Pension Trustees Meeting Minutes January 12, 2015 Deanna Foster, Recreation Program Support Tech, Parks and Rec Dept 11/17/2014 Delbert Foster, Solid Waste Worker, Solid Waste Department 11/17/2014 Jeffery Long, Solid Waste Worker, Solid Waste Department 11/17/2014 Deborah Svitak, Senior Accountant, Finance Department 11/17/2014 Norman Runkles, Police Aide, Police Department 11/17/2014 William Smith, Public Utilities Technician I, Public Utilities Department 12/1/2014 Jeffrey Gow, Accounting Technician, Solid Waste Department 12/1/2014 Trustee Jonson moved to approve the new hires for acceptance into the Pension Plan as listed. The motion was duly seconded and carried unanimously. 4.2 Approve the following request of employees Betsy Clement, Public Communications Department; Theron Johnson, Solid Waste General Services Department; John Scott, Customer Service Department; and Keith Shive, Fire Department, for a regular pension as provided by Sections 2.416 and 2.424 of the Employees' Pension Plan. Betsey Clement, Public Information Specialist, Public Communications Department, was employed by the City on August 1, 1990 and her pension service credit is effective on that date. Her pension will be effective February 1, 2015. Based on an average salary of approximately $56,679.15 over the past five years, the formula for computing regular pensions, and Ms. Clement's selection of the 66 2/3% Joint and Survivor Annuity, this pension benefit will be approximately $38,616 annually. Theron Johnson, Solid Waste Service Coordinator, Solid Waste General Services Department, was employed by the City on October 15, 1984 and his pension service credit is effective on that date. His pension will be effective December 1, 2014. Based on an average salary of approximately $59,492.51 over the past five years, the formula for computing regular pensions and Mr. Johnson's selection of the Single Life Annuity, this pension benefit will be approximately $55,468.32 annually. John Scott, Customer Service Director, Customer Service Department, was employed by the City on January 8, 1990 and his pension service credit is effective on that date. His pension will be effective February 1, 2015. Based on an average salary of approximately $92,237.68 over the past five years, the formula for computing regular pensions, and Mr. Scott's selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $59,938.32 annually. Keith Shive, Fire Medic, Fire Department, was employed by the City on January 15, 1990 and his pension service credit is effective on that date. His pension will be effective February 1, 2015. Based on an average salary of Page 3 City of Clearwater Pension Trustees Meeting Minutes January 12, 2015 approximately $74,537.96 over the past five years, the formula for computing regular pensions, and Mr. Shive's selection of the Single Life Annuity with a 10% partial lump sum distribution, this pension benefit will be approximately $46,755 annually. Section 2.416 provides for normal retirement eligibility for non-hazardous duty employees hired prior to the effective date of this reinstatement (January 1, 2013), a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of fifty-five years and completed twenty years of credited service; the date on which a participant has reached age sixty-five years and completed ten years of credited service; or the date on which a member has completed thirty years of service regardless of age. For non-hazardous duty employees hired on or after the effective date of this restatement, a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of sixty years and completed twenty-five years of credited service; or the date on which a participant has reached the age of sixty-five years and completed ten years of credited service. Ms. Clement, Mr. Johnson and Mr. Scott have met the non-hazardous duty criteria. Section 2.416 provides for normal retirement eligibility for hazardous duty employees, a member shall be eligible for retirement following the earlier of the date on which the participant has completed twenty years of credited service regardless of age, or the date on which the participant has reached fifty-five years and completed ten years of credited service. Mr. Shive has met the hazardous duty criteria. Trustee Hock-DiPolito moved to approve the following request of employees Betsy Clement, Public Communications Department; Theron Johnson, Solid Waste General Services Department; John Scott, Customer Service Department; and Keith Shive, Fire Department, for a regular pension as provided by Sections 2.416 and 2.424 of the Employees' Pension Plan. The motion was duly seconded and carried unanimously. 4.3 Approve the following request of employee James Stanley, Solid Waste General Services Department, to vest his pension as provided by Section 2.419 of the Employees' Pension Plan. James Stanley, Communications Technician, Solid Waste General Services Department, was employed by the City on November 1, 2004 and began participating in the Pension Plan on that date. Mr. Stanley terminated from City Page 4 City of Clearwater Pension Trustees Meeting Minutes January 12, 2015 employment on November 15, 2014. The Employees' Pension Plan provides that should an employee cease to be an employee of the City of Clearwater or change status from full-time to part-time 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 2.416 provides for normal retirement eligibility for non-hazardous duty employees hired prior to the effective date of this reinstatement (January 1, 2013), a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of fifty-five years and completed twenty years of credited service; the date on which a participant has reached age sixty-five years and completed ten years of credited service; or the date on which a member has completed thirty years of service regardless of age. For non-hazardous duty employees hired on or after the effective date of this restatement, a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of sixty years and completed twenty-five years of credited service; or the date on which a participant has reached the age of sixty-five years and completed ten years of credited service. Mr. Stanley will meet the non-hazardous duty criteria and begin collecting a pension in January 2019. Section 2.416 provides for normal retirement eligibility for hazardous duty employees, a member shall be eligible for retirement following the earlier of the date on which the participant has completed twenty years of credited service regardless of age, or the date on which the participant has reached fifty-five years and completed ten years of credited service. Trustee Hamilton moved to approve the following request of employee James Stanley, Solid Waste General Services Department, to vest his pension as provided by Section 2.419 of the Employees' Pension Plan. The motion was duly seconded and carried unanimously. 4.4 Adopt the Actuarial Funding Policy for the City of Clearwater Employees' Pension Plan. The Pension Funding Task Force 2013, including GFOA, ICMA, National League of Cities, and various other national organizations, recently Page 5 City of Clearwater Pension Trustees 5. Adjourn Meeting Minutes January 12, 2015 recommended that all defined benefit pension plans adopt a formal funding policy. A formal funding policy provides a long -term road map for plan funding and is a component of prudent financial management of the plan The City's actuary has developed a funding policy for the City of Clearwater Employees' Pension Plan. The Trustees reviewed a draft funding policy at the November 2014 Trustees meeting and all Trustee recommendations have been incorporated into the policy for adoption. Trustee Jonson moved to adopt the Actuarial Funding Policy for the City of Clearwater Employees' Pension Plan. The motion was duly seconded and carried unanimously. The meeting adjourned at 1:11 p.m. -- ReOr\eNcif WS r City of Clearwater Chair Employees' Pension Plan Trustees Page 6