06/15/2015Monday, June 15, 2015
1:00 PM
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
Council Chambers
Pension Trustees
Meeting Agenda
June 15, 2015Pension Trustees Meeting Agenda
1. Call To Order
2. Approval of Minutes
2.1 Approve the minutes of the May 18, 2015 Pension Trustees meeting as
submitted in written summation by the City Clerk.
3. Citizens to be Heard Regarding Items Not on the Agenda
4. New Business Items
4.1 Approve the new hires for acceptance into the Pension Plan as listed.
4.2 Approve the following request of employees Timothy Bartlett, Public Utilities
Department; James Kleinsorge, Police Department; and David Pettay,
Customer Service Department, for a regular pension as provided by Sections
2.416 and 2.424 of the Employees’ Pension Plan.
4.3 Amend the Employee Pension Plan to correct Section 2.412 (Definitions) of the
Clearwater Code of Ordinances.
5. Director's Report
6. Committee Members to be Heard
7. Adjourn
Page 2 City of Clearwater Printed on 6/10/2015
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1393
Agenda Date: 6/15/2015 Status: Agenda ReadyVersion: 1
File Type: MinutesIn Control: Pension Trustees
Agenda Number: 2.1
SUBJECT/RECOMMENDATION:
Approve the minutes of the May 18, 2015 Pension Trustees meeting as submitted in written
summation by the City Clerk.
SUMMARY:
APPROPRIATION CODE AND AMOUNT:
USE OF RESERVE FUNDS:
Page 1 City of Clearwater Printed on 6/10/2015
Pension Trustees Meeting Minutes May 18, 2015
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
Meeting Minutes
Monday, May 18, 2015
1:00 PM
Pension Trustees
Page 1 City of Clearwater Draft
Pension Trustees Meeting Minutes May 18, 2015
Roll Call
Present 4 - Chair George N. Cretekos, Trustee Jay E. Polglaze, Trustee Bill
Jonson, and Trustee Hoyt Hamilton
Absent 1 - Trustee Doreen Hock-DiPolito Also Present - William B. Horne II - City Manager, Jill S. Silverboard - Assistant City
Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin - City
Attorney, 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.
Unapproved
1. Call To Order
The meeting was called to order at 1:33 p.m. at City Hall. 2. Approval of Minutes
2.1 Approve the minutes of the April 13, 2015 Pension Trustees meeting as submitted in
written summation by the City Clerk.
Trustee Hamilton moved to approve the minutes of the April 13,
2015 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.
Pension
Name, Job. Class, & Dept./Div. Elig. Date
Jessica Turner, Accounting Tech., Parks and Recreation Dept 3/07/2015 *
Wayne Johnson, Utilities Mechanic, Public Utilities Dept 3/09/2015
Joshua Jones, Recreation Leader, Parks and Recreation Dept 3/09/2015 **
William Baratta, Solid Waste Equip. Operator, Solid Waste Dept 3/23/2015
Matthew Hess, Beach Lifeguard, Parks and Recreation Dept 3/23/2015 ***
Page 2 City of Clearwater Draft
Pension Trustees Meeting Minutes May 18, 2015
Kathleen Holden, Crime Analyst, Police Dept 3/23/2015
Jose Patino, Public Information Spec., Public Communications Dept 3/23/2015
Susan Pryor, Customer Serv. Rep, Planning and Development Dept 3/23/2015 ****
Eric Rau, Parks Service Tech. I, Parks and Recreation Dept 3/23/2015
* Jessica Turner was employed in a temporary / Event Support Staff
assignment from 06/24/2006 to 11/02/2013, and another temporary
assignment from 01/06/2015 to 03/07/2015. She was hired into a full time
position as of 03/07/2015 and will be eligible for pension as of 03/07/2015.
** Joshua Jones was employed in a temporary assignment from 8/11/2014 to
03/09/2015, and then hired into a full time position as of 03/09/2015. He will be
eligible for pension as of 03/09/2015.
*** Matthew Hess was hired as a seasonal employee from 04/08/1995 to
6/16/2001, from 6/16/2001 to10/6/2001, and from 06/02/2014 to 1/13/2015.
He was hired into a full time position as of 03/23/2015 and will be eligible for
pension as of 03/23/2015.
**** Susan Pryor was hired into a part time position on 02/23/2015, and
transferred to a full-time permanent position as of 3/23/2015; she will be
eligible for pension as of 3/23//2015.
Trustee Polglaze 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 Christopher Cruickshank, Marine and
Aviation Department; Dorothee Morrow, Engineering Department; Suzanne
Sobkowiak, Police Department; Deborah Storey, Police Department; and Rex
Whittenberger, Solid Waste General Services Department for a regular pension as
provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan.
Christopher Cruickshank, Marine Supervisor, Marine and Aviation Department,
was employed by the City on January 11, 1988, and his pension service credit
is effective on that date. His pension will be effective May 1, 2015. Based on
an average salary of approximately $54,943.16 over the past five years, the
formula for computing regular pensions and Mr. Cruickshank’s selection of the
75% Joint and Survivor Annuity, this pension benefit will be approximately
$41,240.88annually.
Dorothee Morrow, Traffic Engineering Assistant, Engineering Department, was
employed by the City on June 27, 1994, and her pension service credit is
effective on that date. Her pension will be effective May 1, 2015. Based on an
Page 3 City of Clearwater Draft
Pension Trustees Meeting Minutes May 18, 2015
average salary of approximately $40,511.88 over the past five years, the
formula for computing regular pensions and Ms. Morrow’s selection of the
Single Life Annuity, this pension benefit will be approximately $23,222.28
annually.
Suzanne Sobkowiak, Police Office Specialist, Police Department, was
employed by the City on January 5, 1998, and her pension service credit is
effective on that date. Her pension will be effective June 1, 2015. Based on an
average salary of approximately $33,299.75 over the past five years, the
formula for computing regular pensions and Ms. Sobkowiak’s selection of the
75% Joint and Survivor Annuity, this pension benefit will be approximately
$14,328.84 annually.
Deborah Storey, Police Property Clerk, Police Department, was employed by
the City on February 1, 1988, and her pension service credit is effective on that
date. Her pension will be effective May 1, 2015. Based on an average salary
of approximately $37,219.34 over the past five years, the formula for
computing regular pensions and Ms. Storey’s selection of the Single Life
Annuity, this pension benefit will be approximately $27,891.24 annually.
Rex Whittenberger, Fleet Mechanic Supervisor, Solid Waste General Services
Department, was employed by the City on March 21, 1987, and his pension
service credit is effective on that date. His pension will be effective April 1,
2015. Based on an average salary of approximately $77,464.91 over the past
five years, the formula for computing regular pensions and Mr. Whittenberger’s
selection of the 50% Joint and Survivor Annuity, this pension benefit will be
approximately $62,636.76 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. Mr. Cruickshank, Ms. Morrow, Ms. Sobkowiak, Ms. Storey
and Mr. Whittenberger have all 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.
Page 4 City of Clearwater Draft
Pension Trustees Meeting Minutes May 18, 2015
Trustee Hamilton moved to approve the following request of
employees Christopher Cruickshank, Marine and Aviation
Department; Dorothee Morrow, Engineering Department; Suzanne
Sobkowiak, Police Department; Deborah Storey, Police
Department; and Rex Whittenberger, Solid Waste General Services
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 agreements hiring Intercontinental Real Estate Corporation and USAA Real
Estate Company as core plus real estate money managers for the pension plan, and
authorize the appropriate officials to execute same.
The plan’s investment committee conducted a manager search for core plus
real estate money managers to further diversify the portfolio and reduce
volatility of investment returns.
The committee chose two core plus real estate money managers, with
contrasting investment strategies, for recommendation to the Trustees:
Intercontinental Real Estate Corporation and USAA Real Estate Company.
Intercontinental Real Estate Corporation offers an investment product, U.S.
Real Estate Investment Fund, LLC (US REIF), investing in a balanced portfolio
of geographically diversified North American yield driven property assets,
including office buildings, multifamily, retail, industrial, senior living, healthcare,
and student housing. Investments targeted are those that provide stable and
predictable cash flow with an opportunity for capital appreciation.
USAA Real Estate Company offers an investment product, US Government
Building Fund, investing in a diversified portfolio of high quality core
government leased office and industrial properties located in major U.S.
markets, with an emphasis in the mid-Atlantic region including Washington,
D.C., Virginia, and Maryland. Investments targeted are those with stable and
reliable cash flows from mission critical governmental tenants that will limit
downside risk associated with real estate cycles.
Management fees for Intercontinental’s US REIF fund are 1.1% on the first $25
million under management, plus a performance based fee of 20% of the total
return in excess of 8%. Fees for USAA’s US Government Building Fund are
1.25% of the first $10 million under management, and 1.10% on the next $15
million.
The pension plan’s investment committee is recommending an allocation of
Page 5 City of Clearwater Draft
Pension Trustees Meeting Minutes May 18, 2015
$10 million to each of the money managers. The monies would be transferred
from the plan’s REIT’s real estate manager, who currently has an allocation of
approximately $50 million.
The plan’s pension attorney, Stu Kaufman with Klausner, Kaufman, Jensen
and Levinson, has reviewed the attached agreements and his recommended
changes have been incorporated.
In response to questions, the City Attorney said the documents were
reviewed by the Pension Board's counsel. Finance Director Jay Ravins
said counsel did not indicate there were any issues with the contract terms.
The Plan has REITS and another brick and mortar real estate money
manager in this category.
Trustee Jonson moved to approve agreements hiring
Intercontinental Real Estate Corporation and USAA Real Estate
Company as core plus real estate money managers for the pension
plan, and authorize the appropriate officials to execute same. The
motion was duly seconded and carried unanimously.
5. Adjourn
The meeting adjourned at 1:38 p.m.
Page 6 City of Clearwater Draft
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1312
Agenda Date: 6/15/2015 Status: Agenda ReadyVersion: 2
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.1
SUBJECT/RECOMMENDATION:
Approve the new hires for acceptance into the Pension Plan as listed.
SUMMARY:
Name, Job. Class, & Dept./Div.Pension Elig. Date
Tomislav Marjanovic, Police Officer, Police Department 3/21/2015*
Gary Brokaw, Recreation Programmer, Parks and Recreation Dept 4/4/2015
Richard Moore, Library Assistant, Library Department 4/4/2015**
Lucas Hutchins, Fleet Mechanic, General Services Dept 4/6/2015
Dwayne Nash, Custodial Worker, Library Department 4/6/2015
Heather Pearson, Accounting Clerk, Finance Department 4/6/2015
Andrew Ross, Water Distribution Operator Trainee, Public Utilities Dept 4/6/2015
Joshua Bender, Fire Medic, Fire Department 4/6/2015
Kyle Brynjulson, Fire Medic, Fire Department 4/6/2015
Austin Dente, Fire Medic, Fire Department 4/6/2015
Jackelyn Koffler, Fire Medic, Fire Department 4/6/2015
Matthew Mauger, Fire Medic, Fire Department 4/6/2015
Fredy Ortiz, Fire Medic, Fire Department 4/6/2015
David Stark, Fire Medic, Fire Department 4/6/2015
Andrew Sullivan, Fire Medic, Fire Department 4/6/2015
Autumn Yanchunis, Fire Medic, Fire Department 4/6/2015
Warren Chriss, Police Officer, Police Department 4/20/2015
Brooke Cunningham, Marine Facility Operator, Marine and Aviation Dept 4/20/2015***
Morgan Douglass, Human Resources Analyst, Human Resources Dept 4/20/2015****
Robert Fahey (Jr.), Traffic Signs and Markings Tech, Engineering Dept 4/20/2015
John Guzzi, Custodial Worker, Marine and Aviation Department 4/20/2015*****
Michael Jenson, Police Officer, Police Department 4/20/2015
Jesse Johnson, Public Utilities Technician I, Public Utilities Dept 4/20/2015
Stephanie Millman, Licensed Electrician, Public Utilities Department 4/20/2015
Daniel Negersmith, Police Officer, Police Department 4/20/2015
Austin Sheldon, Marine Facility Operator, Marine and Aviation Dept 4/20/2015******
Cara Zeph, Police Officer, Police Department 4/20/2015
* Tomislav Marjanovic was previously employed with the City of Clearwater, resigned effective
10/25/2014, rescinded resignation and was rehired 3/21/2015; he will be eligible for pension
as of 3/21/2015.
Page 1 City of Clearwater Printed on 6/10/2015
File Number: ID#15-1312
** Richard Moore was hired into a part time position on 10/21/2013, and transferred to a full
time position effective 4/4/2015; he will be eligible for pension as of 4/4/2015
*** Brooke Cunniingham was employed in a part time position from 5/30/2014 to 4/20/2015,
and transferred to a full time position effective 4/20/2015; she will be eligible for pension as of
4/20/2015.
**** Morgan Douglass was hired as a Human Resources Intern on 10/6/2014, and transferred
to a full time position effective 4/20/2015; she will be eligible for pension as of 4/20/2015.
***** John Guzzi was employed in a part time position from 3/27/1999 to 8/30/1999, a full time
position from 10/23/2000 to 3/27/2006, and then part time again from 10/15/2014 to
11/1/2014, and 11/18/2014 to 4/20/2015. He transferred to a full time position effective
4/20/2015, and will be eligible for pension as of 4/20/2015.
****** Austin Sheldon was employed in a part time position from 3/17/2013 to 4/20/2015, and
transferred to a full time position effective 4/20/2015; he will be eligible for pension as of
4/20/2015.
APPROPRIATION CODE AND AMOUNT:
n/a
USE OF RESERVE FUNDS:
n/a
Page 2 City of Clearwater Printed on 6/10/2015
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1313
Agenda Date: 6/15/2015 Status: Agenda ReadyVersion: 2
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.2
SUBJECT/RECOMMENDATION:
Approve the following request of employees Timothy Bartlett, Public Utilities Department;
James Kleinsorge, Police Department; and David Pettay, Customer Service Department, for a
regular pension as provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan.
SUMMARY:
Timothy Bartlett, Utilities Mechanic Supervisor II, Public Utilities Department, was employed by
the City on May 29, 1985, and his pension service credit is effective on that date. His pension
will be effective June 1, 2015. Based on an average salary of approximately $63,742.75 over
the past five years, the formula for computing regular pensions and Mr. Bartlett’s selection of
the 100% Joint and Survivor Annuity, this pension benefit will be approximately $51,543
annually.
James Kleinsorge, Police Major, Police Department, was employed by the City on August 6,
1994, and his pension service credit is effective on that date. His pension will be effective
June 1, 2015. Based on an average salary of approximately $109,066.69 over the past five
years, the formula for computing regular pensions and Mr. Kleinsorge’s selection of the 100%
Joint and Survivor Annuity, this pension benefit will be approximately $61,313.40 annually.
David Pettay, Customer Service Representative, Customer Service Department, was
employed by the City on July 11, 2005, and his pension service credit is effective on that date .
His pension will be effective August 1, 2015. Based on an average salary of approximately
$26,755.44 over the past five years, the formula for computing regular pensions and Mr .
Pettay’s selection of the Single Life Annuity, this pension benefit will be approximately
$7,398.72 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
Page 1 City of Clearwater Printed on 6/10/2015
File Number: ID#15-1313
credited service. Mr. Bartlett and Mr. Pettay 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.
Kleinsorge has met the hazardous duty criteria.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
Page 2 City of Clearwater Printed on 6/10/2015
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1366
Agenda Date: 6/15/2015 Status: Agenda ReadyVersion: 1
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.3
SUBJECT/RECOMMENDATION:
Amend the Employee Pension Plan to correct Section 2.412 (Definitions) of the Clearwater
Code of Ordinances.
SUMMARY:
The recent adoption of Ordinance 8607-14 amended the Employee Pension Plan, Chapter 2,
Article V, Division 3, Section 2.412 of the Code of Ordinances to comply with changes to IRS
Regulations. Section 2.412 was part of the amended language that was included in the Plan
changes approved at referendum and made effective January 1, 2013.
When the change required by Ordinance 8607-14 was entered into Muni-Code, it replaced
Section 2.412 with the former language in effect prior to the referendum (Section 2.393).
This ordinance will correct that error by entering the correct language contained in the current
Pension Ordinance and will include an additional subsection, restated from Section 2.392,
2a-d, for the definition of compensation as required by IRS regulations.
Page 1 City of Clearwater Printed on 6/10/2015
ORDINANCE NO. 8607-14
AN ORDINANCE OF THE CITY OF CLEARWATER,
FLORIDA, AMENDING THE PROVISIONS OF
CHAPTER 2, ARTICLE V., DIVISION 3., OF THE CITY
OF CLEARWATER CODE OF ORDINANCES TO
COMPLY WITH SECTION 401(a)(31)(B) OF THE
INTERNAL REVENUE CODE; PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City is authorized and empowered to amend the Plan to comply
with changes to Internal Revenue code, NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CLEARWATER, FLORIDA;
Section 1: Section 2.393 as restated in Section 2.412, Division 3 of Article V. of
Chapter 2, is hereby amended to read:
Compensation:
2)d. For limitation years beginning on or after July 1, 2007, and for the purposes of
applying the limits of Section 415 of the Internal Revenue Code, compensation shall
mean the participant's wages, salaries, and other amount received for personal services
actually rendered in the course of employment with the employer to the extent the
amounts are includable in gross income, and other such amounts that are included in
the definition of compensation under Treasury Regulation Section 1.415(c) -2(a). This
definition of compensation shall include any amounts paid by the later of: (1) 2 1/2
months after severance from employment or (2) the end of the limitation year that
includes the date of severance from employment if; (a) absent a severance from
employment, such payments would have been paid to the employee while the employee
continued in employment with the employer and was for regular compensation for
services rendered during the employee's regular working hours; or (b) compensation
was paid for services outside the employee's regular working hours (such as overtime
or shift differential), bonuses or other similar compensation.
Section 2.398 as restated in Section 2.424, Division 3 of Article V. of Chapter 2,
is hereby amended to read:
Ordinance No. 8607 -14
c. Lump sum payment. Notwithstanding anything contained in this plan to the contrary,
any benefit payable under the plan on or after March 28, 2005, the actuarial lump sum
present value of which is not more than $3500.005,000.00, shall be paid in a lump sum
as soon as practicable following the participant's termination of employment. Should
the actuarial lump sum value of such payment be greater than $1000.00, and if the
distributee has not elected to have such distribution paid directly to a specified eligible
retirement plan, the plan administrator shall make such payment to an individual
retirement plan of a designated trustee or issuer and shall notify the distributee in writing
either separately or as part of the notice under section 402(f) of the Code) that the
distribution may be transferred to another individual retirement plan.
Section 2. This ordinance shall take effect immediately upon adoption.
PASSED ON FIRST READING
PASSED ON SECOND AND FINAL
READING AND ADOPTED
Approved as b form:
Ma w M. S
Assistant City Attorney
2
OCT 0 2 2014
OCT 1 5 2014
cteorttrwrk. \ktos
George N. Cretekos
Mayor
Attest:
L4 t /iL V tt: C'&i
Rosemarie Call
City Clerk
Ordinance No. 8607 -14
1 Ordinance 8747-15
ORDINANCE NO. 8747-15
AN ORDINANCE OF THE CITY OF CLEARWATER,
FLORIDA, AMENDING THE PROVISIONS OF CHAPTER 2,
ARTICLE V., DIVISION 3, OF THE CITY OF CLEARWATER
CODE OF ORDINANCES; AMENDING SECTION 2.412,
DEFINITIONS, TO INCLUDE THE PREVIOUS VERSION
OF SECTION 2.412 WHICH TOOK EFFECT JANUARY 1,
2013 AND ADDING SUBSECTION 2A-D UNDER THE
DEFINITION OF COMPENSATION, AS RESTATED FROM
SECTION 2.393, DEFINITION OF COMPENSATION,
SUBSECTION 2A-D; PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF CLEARWATER, FLORIDA;
Section 2.412, Division 3 of Article V. of Chapter 2, is hereby amended to read
Sec. 2.412. - Definitions.
[For the purposes of this division, certain terms shall have the meanings ascribed to
them in this section, unless the context clearly indicates otherwise.]
Accrued benefit shall mean, as of a specified time, the normal retirement benefit as
set forth in section 2.397.2.416.
Accumulated employee contributions shall mean the sum of all amounts deducted
from a member's compensation or picked up by the employer on behalf of a member,
together with regular interest as provided in this division. Accumulated employee
contributions shall also mean any amounts paid by a member for the purchase of
military service credits or other paybacks permitted in this plan.
Actuarial equivalent shall mean a benefit of equivalent current value to the benefit
that would otherwise have been provided to the participant, determined in accordance
with the rules established by the employer and on the basis of appropriate actuarial
methods and the following actuarial assumptions:
(1)Mortality:1983 Group Annuity Mortality Table (Unisex). Mortality table as
recommended by the actuary and approved by the Trustees.
(2)Interest:Seven and one-half percent per annum, compounded annually.
Annual additions shall mean for limitation years beginning on or after December 31,
1986, the sum of:
2 Ordinance 8747-15
(1)The amount of employer contributions allocated to the participant during any
limitation year under any defined contribution plan maintained by an
employer;
(2)The amount of the employee's contributions (other than rollover contributions,
if any) to any contributory defined contribution plan maintained by an
employer or an affiliate;
(3)Any forfeitures allocated to the participant under any defined contribution plan
maintained by an employer or an affiliate; or
(4)Amounts allocated to an individual medical account, as defined in Section
415(l)(2) of the Internal Revenue Code that is part of a pension or annuity
plan maintained by an employer and amounts derived from contributions that
are attributable to post-retirement medical benefits allocated to the separate
account of a key employee (as defined in Section 419A(d)(3) of the Internal
Revenue Code) under a welfare benefit plan (as defined in Section 419(e) of
the Internal Revenue Code) maintained by an employer or an affiliate;
provided, however, the percentage limitation set forth in Section 415(c)(1)(B)
of the Internal Revenue Code shall not apply to: (A) any contribution for
medical benefits (within the meaning of Section 419A(f)(2) of the Internal
Revenue Code) after separation from service which is otherwise treated as an
"annual addition," or (2) any amount otherwise treated as an "annual addition"
under Section 415(l)(1) of the Internal Revenue Code.
Average monthly compensation shall mean one-twelfth of the average
compensation of the five best highest compensated years during of the last ten years of
credited service prior to retirement, termination, or death, or one-twelfth of the career
average compensation of all years as a full-time participant, whichever is greater. A
year shall be 12 consecutive months.
Beneficiary shall mean any person receiving a retirement allowance or other benefit
from the retirement plan.
Benefit shall mean a retirement allowance or other payment provided by the
retirement plan and made to a member, retiree or beneficiary.
Board or board of trustees shall mean the board of trustees of the retirement plan.
Child shall mean the natural or adopted child of a member, but shall not include
foster children or step-children.
City shall mean the City of Clearwater, Florida.
3 Ordinance 8747-15
Committee shall mean the pension advisory committee described in section 2.394
2.413.
Compensation:
(1) Compensation shall mean the total compensation for services rendered to the
city as a participant reportable on the participant's W-2 form, including
indemnity benefits received pursuant to the workers' compensation law, plus
all tax deferred, tax sheltered, or tax exempt items of income derived from
elective employee payroll deductions or salary reductions, but excluding
overtime pay in excess of 300 hours annually for pensionable earnings
accrued on or after the effective date by hazardous duty employees who are
not eligible to retire as of the effective date, overtime pay and any additional
pay or pay differential over and above the base rate of pay for pensionable
earnings accrued on or after the effective date by non-hazardous duty
employees who are not eligible to retire as of the effective date,lump sum
leave pay paid upon retirement, lump sum payments of accrued sick leave
paid upon retirement, pay for off-duty employment, clothing, car, or meal
allowances, relocation expense payments, benefits under this plan, any
amount contributed to any pension, employee welfare, life insurance or health
insurance plan or arrangement, or any other fringe benefits, welfare benefits,
or employer paid deferred compensation. Compensation in excess of the
limitations set forth in Section 401(a)(17) of the Code shall be disregarded.
The limitation on compensation for an "eligible employee" shall not be less
than the amount which was allowed to be taken into account hereunder as in
effect on July 1, 1993. "Eligible employee" is an individual who was a
participant before the first plan year beginning after December 31, 1995.
(2) a.In addition to other applicable limitations set forth in the plan, and
notwithstanding any other provision of the plan to the contrary, for plan
years beginning on or after January 1, 1996, the annual compensation
of each employee taken into account under the plan shall not exceed
the OBRA '93 annual compensation limit. The OBRA '93 annual
compensation limit is $200,000.00, as adjusted by the commissioner for
increases in the cost of living in accordance with Section 401(a)(17)(B)
of the Internal Revenue Code. The cost-of-living adjustment in effect for
a calendar year applies to any period, not exceeding 12 months, over
which compensation is determined (determination period) beginning in
such calendar year. If a determination period consists of fewer than 12
months, the OBRA '93 annual compensation limit will be multiplied by a
fraction, the numerator of which is the number of months in the
determination period, and the denominator of which is 12.
b.For plan years beginning on or after January 1, 1996, any reference in
this plan to the limitation under Section 401(a)(17) of the Internal
Revenue Code shall mean the OBRA '93 annual compensation limit set
forth in this provision.
4 Ordinance 8747-15
c.The limitation on compensation for an "eligible" employee shall not be
less than the amount which was allowed to be taken into account
hereunder as in effect on July 1, 1993. "Eligible employee" is an
individual who was a participant before the first plan year beginning
December 31, 1995.
d.For limitation years beginning on or after July 1, 2007, and for the
purposes of applying the limits of Section 415 of the Internal Revenue
Code, compensation shall mean the participant's wages, salaries, and
other amount received for personal services actually rendered in the
course of employment with the employer to the extent the amounts are
includable in gross income, and other such amounts that are included in
the definition of compensation under Treasury Regulation Section
1.415(c)-2(a). This definition of compensation shall include any amounts
paid by the later of: (1) two and one-half months after severance from
employment or (2) the end of the limitation year that includes the date of
severance from employment if; (a) absent a severance from
employment, such payments would have been paid to the employee
while the employee continued in employment with the employer and
was for regular compensation for services rendered during the
employee's regular working hours; or (b) compensation was paid for
services outside the employee's regular working hours (such as
overtime or shift differential), bonuses or other similar compensation.
(3) For purposes of determining whether compensation exceeds the dollar limit
under Section 401(a)(17) of the Internal Revenue Code, if any employee is a
family member of a highly compensated employee who is one of the ten
highly compensated employees paid the greatest amount of compensation
during the plan year, then such family member shall not be considered as a
separate employee and any compensation paid to such family member shall
be treated as if it were paid to or on behalf of the related highly compensated
employee.
Creditable or credited service shall mean credit for service toward which required
contributions have been made to the plan and upon which a member's eligibility to
receive benefits under the retirement plan is based, or upon which the amount of such
benefits is to be determined.
Early retirement date shall mean the date on which a police officer or firefighter
participant has reached the age of 50 years and completed ten years of credited
service.
Effective date of this amendment and restatement shall mean January 1, 1996 that
date set forth in Ordinance No. 8333-12.
Employee:
5 Ordinance 8747-15
(1) Employee shall mean any person employed by the employer as a full-time
permanent regular employee other than:
a.Individuals who have failed a comprehensive physical exam and by
reason of such fact have not been recommended for acceptance into
the plan by the committee or approved by the trustees, Persons hired
on a contractual basis, and
b.Persons hired on a contractual basis, and Employees hired directly into
non-hazardous duty positions exempt from the employer's civil service
classified service system (unclassified employees) for whom an
employment agreement letter establishes conditions of employment;
provided, however, if a person was a participant in the plan prior to
being employed in a position described in this subparagraph b., he shall
continue to participate in the plan.
c.Employees exempt from the employer's civil service classified service
system (unclassified employees) for whom an employment agreement
letter establishes conditions of employment; provided, however, if a
person was a participant in the plan prior to being employed in a
position described in this subparagraph c., he shall continue to
participate in the plan.
(2) The trustees shall have the right to determine from time to time which persons
are full-time permanent regular employees for purposes of the plan; provided,
however, that all persons covered by the civil service ordinance of the
employer who ar0e employed on a full-time basis shall be considered full-time
permanent regular employees for purposes of the plan.
(3) Permanent Regular part-time, emergency, seasonal and provisional
temporary employees shall not be "employees" eligible to participate in the
plan.
Employer shall mean the City of Clearwater.
Family member of a highly compensated employee shall mean such employee's
spouse, lineal descendant or ascendant, or the spouse of his lineal descendant or
ascendant; provided, however, that for purposes of determining the limit on a highly
compensated employee's compensation under Section 401(a)(17) of the Internal
Revenue Code, the term "family member" shall include only the employee's spouse and
his lineal descendants who have not attained age 19 before the close of the plan year.
Firefighter shall mean an a person actively employed full-time person employed by
the city on a full-time basis, including employment during his initial probationary
employment period, who is certified as a firefighter as a condition of employment in
accordance with the provisions of F.S. § 633.35, and whose duty it is to extinguish fires,
to protect life and to protect property.
Fund shall mean the City of Clearwater Employees' Pension Fund of 2011.
6 Ordinance 8747-15
Hazardous duty shall mean service in a job classification as established by the
employer wherein the participant is required to be a full-time sworn firefighter certified in
accordance with F.S. § 633.35, or a full-time sworn police officer certified in accordance
with F.S. § 943.1395, consistent with the definition of firefighter or police officer herein.
Highly compensated employee shall mean any employee during the plan year or
the immediately preceding plan year:
(1)Whose Section 415 Compensation was more than $75,000.00 (adjusted
under such regulations as may be issued by the secretary of the treasury);
or
(2)Whose Section 415 Compensation was more than $50,000.00 (adjusted
under such regulations as may be issued by the secretary of the treasury),
and who was a member of the "top paid group"; provided, that as used
herein, "top paid group" shall mean all employees who are in the top 20
percent of the employer's work force on the basis of Section 415
Compensation paid during the year; provided, further, that for purposes of
determining the number of employees in the top paid group, employees
described in Section 414(q)(8) of the Internal Revenue Code shall be
excluded.
(3)In determining who is a highly compensated employee, employees who are
nonresident aliens and who receive no earned income (within the meaning
of Section 911(d)(2) of the Internal Revenue Code) from the employer
constituting United States source income (within the meaning of Section
861(a)(3) of the Internal Revenue Code) shall not be treated as employees.
(4)For purposes of this paragraph, the determination of Section 415
Compensation shall be based only on section 415 Compensation that is
actually paid and shall be made by including elective or salary reduction
contributions to a plan described in Section 125 of the Internal Revenue
Code, a plan described in Section 401(k) of the Internal Revenue Code or a
plan described in Section 403(b) of the Internal Revenue Code.
(5)The term "highly compensated employee" shall also mean any former
employee who separated from service (or was deemed to have separated
from service) prior to the plan year, performs no service for the employer
during the plan year, and was an actively employed highly compensated
employee in the separation year or any plan year ending on or after the date
the employee attained age 55.
(6)For purposes of determining whether an employee is a highly compensated
employee, if any employee is a family member of a highly compensated
employee who is one of the ten highly compensated employees paid the
greatest amount of compensation during the plan year, then such family
7 Ordinance 8747-15
member shall not be considered as a separate employee and any
compensation paid to such family member (and any applicable benefit or
contribution on behalf of such family member) shall be treated as if it were
paid to or on behalf of the related highly compensated employee.
Internal Revenue Code shall mean the Internal Revenue Code of 1986 as
amended or any successor statute. Reference to a specific section of the Internal
Revenue Code shall include a reference to any successor provision.
Limitation year shall mean the plan year.
May shall mean a permissive term.
Member shall mean an employee for whom contributions to the retirement plan are
picked up by the employer or otherwise made as required by this plan.
Normal retirement benefit shall mean the monthly income payable to a retired
participant pursuant to the provisions of section 2.397 2.416 of this plan.
Normal retirement date shall mean
(1) For non-hazardous duty employees hired prior to the effective date of this
restatement, the earlier of:
a.The date on which a participant has reached the age of 55 years and
completed 20 years of credited service, or
b.The date on which a participant has completed 30 years of credited
service regardless of age, or
c.The date on which a participant has reached the age of 65 years and
completed ten years of credited service, or.
d.The date on which a participant has completed 20 years of credited
service, or reached the age of 55 and completed ten years of credited
service, which service is of a character or type of employment that is
described below as "hazardous duty" or that the trustees have
designated as hazardous duty.
(2) For this purpose, a participant's service shall be deemed "hazardous duty" if
the participant is a full-time sworn police officer certified in accordance with
F.S. § 943.1395, or a full-time firefighter certified in accordance with F.S. §
633.35, and he is employed in police or fire positions as established by the
employer.
For non-hazardous duty employees hired on or after the effective date of
this restatement, the earlier of:
a.The date on which a participant has reached the age of 60 years and
completed 25 years of credited service, or
b.The date on which a participant has reached the age of 65 years and
completed ten years of credited service.
8 Ordinance 8747-15
(3) For hazardous duty employees, the date on which a participant has
completed 20 years of credited service, or reached the age of 55 years and
completed ten years of credited service, which service is of a character or
type of employment that is described herein as "hazardous duty" or that the
trustees have designated as hazardous duty.
(4)For this purpose, a participant's service shall be deemed "hazardous duty" if
the participant is a full-time sworn police officer certified in accordance with
F.S. § 943.1395, or a full-time sworn firefighter certified in accordance with
F.S. § 633.35, and he is employed in police or fire positions as established by
the employer.
Option shall mean one of several choices available to members with respect to the
manner in which a retirement benefit may be paid.
Participant shall mean any eligible employee of the employer who has commenced
participation and is contributing under the plan. for whom contributions to the retirement
plan are being picked up by the employer or otherwise made as required by this plan.
Pension fund shall mean the pension fund established pursuant to section 2.399.
City of Clearwater Employees’ Pension Fund of 2011.
Pick-up amounts shall mean employer contributions to the plan derived from a
member’s compensation through a reduction in the member’s compensation. For the
purposes of this plan, amounts picked-up shall be considered for state law purposes as
employee contributions.
Plan shall mean the pension plan as herein set forth and as it may be amended
from time to time. City of Clearwater Employees’ Pension Fund of 2011.
Plan year shall mean the 12-month period beginning on January 1 and ending on
December 31.
Police officer shall mean an a person actively employed by the city on a full-time
basis person, employed by the city, including employment during his initial probationary
employment period, whose assigned job classification requires that he be who is
certified as a police officer as a condition of employment in accordance with the
provisions of F.S. § 943.1395, who is vested with authority to bear arms and make
arrests, and whose primary responsibility is the prevention and detection of crime or the
enforcement of the penal, traffic or highway laws of the state.
Pre-existing condition shall mean a condition of health which pre-dated any period
of city employment.
9 Ordinance 8747-15
Regular contributions shall mean amounts picked-up by the city from the
compensation of a member.
Retiree shall mean a former member who is in receipt of benefits from the plan.
Retirement shall mean a member's separation from the service of the employer
upon meeting the requirements to receive a benefit granted to the member pursuant to
the provisions of this plan.
Section 415 Compensation shall mean all compensation as described in Section
1.415-2(d)(2) and Section 1.415-2(d)(3) of the Income Tax Regulations.
Service shall mean active employment as an employee of the city.
Service retirement shall mean a member's retirement from service under
circumstances permitting payment of a retirement benefit without reduction because of
age, length of service, or both, and without special qualifications such as disability.
Spouse shall mean the lawful husband or wife of a member or retiree. This
definition shall be interpreted under Florida choice of law rules.
Surviving spouse means the spouse of the member or retiree at the time the
member or retiree passes away, unless a new designation of beneficiary has been
made in writing to the board in accordance with the provisions of this Plan. This
definition shall be interpreted under Florida choice of law rules.
Trustee or trustees shall mean the individual or individuals, as the context requires,
designated as trustee pursuant to section 2.394.member(s) of the board of trustees of
the plan.
Useful and efficient service shall mean the performance of the regular duties of the
position to which the employee is assigned by the city, or of another established full-
time position within the employ of the city. The board shall determine from the facts of
each disability application whether the member is performing in accordance with this
definition.
Vested benefit shall mean an immediate or deferred benefit to which a member has
gained a non-forfeitable right under the provisions of this plan, without the need for
additional creditable service.
Vesting shall mean the attainment of ten years of creditable service, at which time
the member is entitled to service retirement benefits and non-service disability under the
terms of the plan.
Years of credited service shall mean the total number of years and fractional parts
of years of service credited as an employee of the employer during periods of
10 Ordinance 8747-15
participation in the plan, omitting intervening years or fractional parts of years when an
employee is not employed by the employer or not participating in the plan (except as
may otherwise be provided in rules established by the committee and approved by the
trustees).
PASSED ON FIRST READING _____________________
PASSED ON SECOND AND FINAL _____________________
READING AND ADOPTED
___________________________
George N. Cretekos
Mayor
Approved as to form: Attest:
________________________________________________________
Matthew M. Smith Rosemarie Call
Assistant City Attorney City Clerk