05/11/2006
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PENSION ADVISORY COMMITTEE MEETING MINUTES
CITY OF CLEARWATER
May 11 , 2006
Present:
Nathan Hightower
John Schmalzbauer
Carlen Petersen
John Doran
Vice-Chair
Committee Member
Committee Member/Councilmember
Committee Member/Councilmember
Absent:
John Lee
Tom Jensen
Hoyt P. Hamilton
Chair
Committee Member
Committee Member/Councilmember
Also Present:
Joe Roseto
Stuart Kaufman
Patricia O. Sullivan
Human Resources Director
Pension Advisory Committee Attorney
Board Reporter
The Chaircalled the meeting to order at 9:17 a.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 - April 13, 2006
Member Petersen moved to approve the minutes of the regular meeting of April 13,
2006, as submitted in written summation to each board member. The motion was duly
seconded and carried unanimously.
3 - Emplovees to be Heard - None.
4 - Action Items:
a. Review and Action on Employee Requests for Regular Pensions:
1. Thomas E. Downes, Solid Waste/General Resources
2. Alphonso Hinson, Parks & Recreation
Member Petersen moved to approve the requests for regular pensions for Thomas E.
Downes and Alphonso Hinson. The motion was duly seconded and carried unanimously.
b. Approval of New Hires as Plan Members:
As of April 26, 2006, the City had 1823.01 FTEs out of 1899.2 budgeted positions.
Member Schmalzbauer moved to accept the following employees into membership in
the Pension Plan:
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Name. Job. Class. & Dept./Div.
Hire Date
Jennifer Bass, Neigh. Svcs. Coor./Dev & Neighborhood Svcs.
Carolyn Tellier, Accounting Technician/Engineering
Anne Wills, City Manager Office Assistant/City Manager
Elizabeth Minor, Recreation Programmer/Parks & Recreation
Jesse Switek, Systems Analyst/Finance
Elizabeth Renfroe, Police Communications Operator/Police
Anthony Capria, Water Plant Operator Trainee/Public Utilities
Shannon Winthrop, Parks Service Tech. I/Parks & Recreation
Danielle Smith, Water Plant Operator Trainee/Public Utilities
Leann Holbrook, Customer Service Rep. /Customer Service
Patricia Shields, Accounting Clerk/General Services
Adam Kraft, Police Cadet/Police
Michael Hatch, Police Cadet/Police
04/03/06
04/03/06
04/03/06
04/03/06
04/03/06
10/15/05
03/20/06
04/17/06
04/17/06
04/17/06
04/17/06
04/17/06
04/17/06
Pension Eligible
Date
04/03/06
04/03/06
04/03/06
04/03/06
04/03/06
04/01/06
03/20/06
04/17/06
04/17/06
04/17/06
04/17/06
04/17/06
04/17/06
Elizabeth Renfroe transferred from full-time to part-time and received refund of
contributions on 10/15/05; transferred to full-time and pension eligible as of 04/01/06.
The motion was duly seconded and carried unanimously.
5 - Pendino/New Business
a. Elizabeth A. Alvarez - Pension Forfeiture
Human Resources Director Joe Roseto reported that today's pension forfeiture hearing
is not necessary as Elizabeth Alvarez has requested conversion of her disability pension to
early retirement, for which she qualifies.
PAC (Pension Advisory Committee) Attorney Stuart Kaufman reported the City became
aware that Elizabeth Alvarez was working as a Police Officer while collecting non-job connected
disability pension payments from Clearwater. In response to a question, Mr. Roseto reported
the payment for disability is higher than for early retirement, and estimated the overpayment at
less than $800. Mr. Kaufman said the cost of pursuing recovery of the overpayment would be
economically unfeasible.
Concern was expressed that Ms. Alvarez had violated the terms of the City's Pension
Plan. It was suggested that the issue be remedied by forfeiture of the early retirement benefit
based qn Ms. Alvarez's conduct. Mr. Kaufman said a hearing would be necessary to provide
due process before taking funds from Ms. Alvarez. The Code does not require forfeiture under
these circumstances. It was recommended that counsel mail a letter to Ms. Alvarez requesting
repayment and that the board discuss the issue further if Ms. Alvarez does not respond.
Elizabeth Alvarez said that she had reported to the City that she was working as a Police
Officer. She said she had initiated contact with the City, requesting information regarding the
conversion of her disability pension to an early retirement pension. She said she always will
have PTSD (Post-Traumatic Stress Disorder) and met requirements for recall with the City of
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Clearwater. She thought the issue was resolved and that staff had never mentioned the
repayment of funds. She said she would not repay the money.
It was stated that Ms. Alvarez should not have received funds she was not entitled to.
Ms. Alvarez said the City of Clearwater should have offered her job back to her. She requested
the PAC approve her conversion as requested. The conversion will be on the June 8.2006
agenda. Mr. Roseto said while Ms. Alvarez had inquired regarding the conversion, she had not
advised the City of her current employment, which was discovered after receiving an
anonymous tip. Ms. Alvarez said she was hired after her inquiry, while she awaited the City's
response. Mr. Roseto said his reply, sent before he was aware of Ms. Alvarez's new position,
had indicated that her disability pension would be subject to forfeiture if she became employed
in the same job as she previously held with the City.
Mr. Roseto reported that Ms. Alvarez did not report her current position on her latest
annual certification, received by the City on January 26, 2006. Human Resources Analyst Deb
Ford said Ms. Alvarez was employed as a Police Officer for Pasco County on January 30, 2006.
b. Annual Certification of Pension Entitlement Forms
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Mr. Kaufman referenced a draft of the Administrative Rule Governing Annual
Certification of Pension Entitlement. While Code language does not require annual certification,
administrative rules requiring certification can be adopted to protect the plan from fraud. Forms
are sent annually, and require completion and return within 60 days. The City sends additional
forms via certified mail to those who have not replied. While it has been the City's legal practice
to withhold pensions payments until forms are returned, that procedure has not been formalized.
Ms. Ford said of 720 pension recipients, 120 receive disability pensions. Staff sent
second forms, not certified, to the 80 recipients who did not return their form. Ten forms had to
be resent yesterday, this time certified. It was suggested that recipients, who do not reply to the
initial request, be charged the cost of obtaining this information. Mr. Kaufman said due process
must be provided before the City can take money.
Mr. Roseto said the form now requires disabled pensioners to report if they are
employed. Mr. Kaufman said the City must pay benefits until it is determined at a hearing that
the recipient no longer qualifies for benefits. Concern was expressed that the City continues to
pay full benefits until a hearing, and then does not recapture those funds because it costs too
much to do so. It was suggested that benefits be escrowed until a final determination is made
at a hearing. It was recommended that the Code be amended to require pension forfeiture if a
disability recipient is found to be working in a similar position. Mr. Roseto expressed concern
that the cost of enacting that requirement would be high. The amendment could be included
during the next Code rewrite.
It was requested that Mr. Kaufman report how other pension plans deal with disability
fund recipients who do not report accepting employment positions that violate the plans. It was
requested that staff report on the amount of Ms. Alvarez's overpayment.
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Member Petersen moved to recommend approval of the Administrative Rule Governing
Annual Certification of Pension Entitlement. The motion was duly seconded and carried
unanimously.
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Concern was expressed that the City depends on recipients to report their employment.
Mr. Roseto said recipients are required to submit notarized forms. The recipient must certify
that the disability still exists and still prevents the recipient from performing work and must
swear that the information is true. Concern was expressed that requiring medical recertification
would be cost prohibitive.
6 - Director's Reoort
a. FPPTA Conference
It was requested that PAC members contact staff if they are interested in attending the
FPPTA (Florida Public Pension Trustees Association) Conference, scheduled for June 24 - 28,
2006, at the Buena Vista Palace.
Soecial Pension Trustees Meetina
Mr. Roseto encouraged non-council members to attend the Special Pension Trustees
Meeting on May 30, 2006, for presentation of the Pension Plan's actuary report.
David C. Koscielniak
Mr. Roseto requested that a disability hearing be scheduled for David C. Koscielniak.
Member Schmalzbauer moved to schedule a disability hearing for David C. Koscielniak
for June 8, 2006. The motion was duly seconded and carried unanimously.
Julv PAC meetina
As PAC counsel is unavailable on July 13, 2006, Mr. Roseto requested that the July
PAC meeting be rescheduled.
Member Schmalzbauer moved to reschedule the July PAC meeting to July 20, 2006.
The motion was duly seconded and carried unanimously.
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8 - Committee Members to be Heard
Member Schmalzbauer thanked the City Council for attending the recent Police
memorial.
9 - Adiournment
The meeting adjourned at 9:54 a.m.
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