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06/08/2006 . . . PENSION ADVISORY COMMITTEE MEETING MINUTES CITY OF CLEARWATER June 8, 2006 Present: Nathan Hightower Tom Jensen John Schmalzbauer Hoyt P. Hamilton Carlen Petersen John Doran Vice-Chair Committee Member Committee Member Committee Member/Councilmember Committee Member/Councilmember Committee Member/Councilmember Absent: John Lee Chair Also Present: Joe Roseto Patricia O. Sullivan Human Resources Director Board Reporter The Vice-Chair called the meeting to order at 9:00 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 Member Petersen moved to approve the minutes of the regular meeting of May 11, 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. Laurel L. Schultz, Marine & Aviation 2. Gregory R. Olson, Public Utilities 3. Denise A. Wilson, City Manager Member Schmalzbauer moved to approve the requests for regular pensions for Laurel L. Schultz, Gregory R. Olson, and Denise A. Wilson. The motion was duly seconded and carried unanimously. Pension Advisory 2006-06-08 1 . . . b. Review and Action on Employee Requests to Vest Pensions: 1. Jennifer Jo Skipper, Police Jennifer Jo Skipper, Police, has resigned her position after being employed by the City for more than 10 years. She will qualify to receive her reduced pension beginning January 1, 2016. Member Schmalzbauer moved to recommend approval of the request by Jennifer Jo Skipper to vest her pension. The motion was duly seconded and carried unanimously. c. Review and Action on Employee Requests for Early Retirement Pensions: 1. Elizabeth A. Alvarez, Police In response to a question, Human Resources Director Joe Roseto reported the monthly benefit for Elizabeth A. Alvarez's early retirement pension will be several hundred dollars less than the disability pension benefit previously paid to her. Elizabeth Alvarez said she had not been notified about today's meeting and requested that Item 4c1 be continued to July 20, 2006. Mr. Roseto recommended approval of this routine item. Approval would convert Ms. Alvarez's disability pension to an early retirement pension, as she had requested. Approval does not waive other issues previously discussed by the committee. Ms. Alvarez objected to a hearing today regarding issues related to the monthly difference between the two benefits. It was stated Ms. Alvarez would be provided sufficient notice should the PAC (Pension Advisory Committee) schedule a hearing regarding the overpayment. Ms. Alvarez withdrew her request to continue Item 4c1. Member Doran moved to approve the request for early retirement pension for Elizabeth A. Alvarez. The motion was duly seconded and carried unanimously. Pension Advisory 2006-06-08 2 . . . d. Approval of New Hires as Plan Members: As of May 19, 2006, the City had 1,821.76 FTEs out of 1,960.3 budgeted positions. Member Petersen moved to accept the following employees into membership in the Pension Plan: Pension Eligible Name. Job. Class. & Deot./Div. Hire Date Sheri Tully, Police Communications Operator Trainee/Police 05/01/06 Natalye Watts, Police Communications Operator Trne/Police 05/01/06 Gina Hulburt, Accounting Clerk! Finance 05/01/06 Christopher Lawrence, Public Services Tech. I/Public Services 05/01/06 Deborah Voigt, Custodial Worker, Library 05/01/06 EdwardTumber, Librarian I, Library 07/25/05 Sean Sizemore, Field Service Rep. 1/ Customer Service 05/15/06 Brody Burke, Public Services Technician I/Public Services 05/15/06 Evelyn Stevens, Public Utilities Coordinator/Public Utilities 05/15/06 Maria Del Pilar Jones Suarez, Information Technician I/Police 05/15/06 Marianne Gearhart, Building Insp. Tech/Dev & Nbrhd Services 05/15/06 Robert Dutton, Survey Assistant I/Engineering 05/15/06 John Fahey, Building Inspection Tech/Dev & Nbrhd Services 05/15/06 Date 05/01/06 05/01/06 05/01/06 05/01/06 05/01/06 04/29/06 05/15/06 05/15/06 05/15/06 05/15/06 05/15/06 05/15/06 05/15/06 Edward Tumber originally was hired as part-time on July 25, 2005; changed to full-time and pension eligible as of April 29, 2006. The motion was duly seconded and carried unanimously. 5 - Pendinq/New Business a. David Koscielniak, Job-connected Disability Hearing Mr. Roseto reported that David Koscielniak's attorney had requested the item be continued to a date uncertain. Member Doran moved to continue the job-connected disability hearing for David Koscielniak to a date uncertain. The motion was duly seconded and carried unanimously. b. Edna Lee - Set Hearing Date for Job-connected Disability Member Hamilton moved to schedule a job-connected disability hearing for Edna Lee on August 10, 2006. The motion was duly seconded and carried unanimously. Pension Advisory 2006-06-08 3 . . . 6 - Director's Report Mr. Roseto reported the Pension Plan's actuary presented his annual report to the Pension Trustees on May 30, 2006. A copy of the report was forwarded to each PAC member. Mr. Roseto said scheduled for consideration by the Pension Trustees are the PAC supported administration rule change requiring an annual verification of pensions and a request for a sum not to exceed $25,000 for the Pension Plan attorney to rewrite the Pension Ordinance, without changes, to make it clearer and easier to administer. 7 - Committee Members to be Heard Member Jensen reminded committee members to submit financial disclosure forms. Member Schmalzbauer reported an employee staffing concern. Mr. Roseto said more than one Human Resource employee is trained to handle retirement issues. Member Hiahtower requested information on City efforts to recoup the overpayment of pension benefits to Ms. Alvarez. Mr. Roseto said after the Pension Trustees approve the conversion of the benefit to an early retirement pension, staff will mail to Ms. Alvarez a letter requesting reimbursement of overpaid benefits, which she did not qualify to receive since she began working in January 2006 as a Pasco County Sheriff Deputy. Finance Director Margie Simmons said the City will request Ms. Alvarez to sign a form allowing monthly deductions from her pension until the overpayment is reimbursed. Discussion ensued regarding the City's inability to recoup its money by garnishing future pension payments without providing due process. An estimate was requested regarding the cost of recouping the overpayment to Ms. Alvarez through the courts, if that should be necessary. Staff will contact PAC Counsel to determine if the PAC could schedule a forfeiture hearing on this issue. It was recommended that the Pension ordinance be amended to include a procedure that allows the City to recover overpayments. Member Schmalzbauer reported he may be unable to attend the July PAC meeting due to family health issues. 8 - Adiournment The meeting adjourned at 9:25 a.m. \}.u- 9Ch' . air Pension Advisory Committee Pension Advisory 2006-06-08 4