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01/17/2017 Pension Trustees Meeting Minutes January 17, 2017 City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 9 ' e Meeting Minutes Tuesday, January 17, 2017 9:00 AM Council Chambers Pension Trustees Page 1 City of Clearwater Pension Trustees Meeting Minutes January 17, 2017 Roll Call Present 5 - Chair George N. Cretekos, Trustee Doreen Caudell, Trustee Bob Cundiff, Trustee Hoyt Hamilton, and Trustee Bill Jonson Also Present—William B. Horne — City Manager, Jill Silverboard — Deputy City Manager, Pamela K. Akin — City Attorney, Rosemarie Call — City Clerk, Nicole Sprague — Official Records and Legislative Services Coordinator, and Joe Roseto — Human Resources Director 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 9:21 a.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the December 12, 2016 Pension Trustees Meeting as submitted in written summation by the City Clerk. Trustee Jonson moved to approve the minutes of the December 12, 2016 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 Classification/Department Pension Eligibility Date Daniel Ruben, Parks Service Tech I, Parks and Recreation 10/31/2016 Ernest Franks, Public Utilities Tech I, Public Utilities 11/14/2016 Page 2 City of Clearwater Pension Trustees Meeting Minutes January 17, 2017 David Vincent, Fleet Mechanic, General Services 11/14/2016 Ronald Testa, Building Inspection Technician, Planning and Dev. 11/14/2016 Trustee Caudell 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 Jana Hofferle, Engineering Department and Catalina Tefft, Finance Department, to vest their pensions as provided by Section 2.419 of the Employees' Pension Plan. Jana Hofferle, Parking Enforcement Supervisor, Engineering Department, was employed by the City on August 19, 1996, and began participating in the Pension Plan on that date. Ms. Hofferle terminated from city employment on November 23, 2016. Catalina H. Tefft, Procurement Analyst, Finance Department, was employed by the City on March 21, 2005, and began participating in the Pension Plan on that date. Ms. Tefft terminated from city employment on December 15, 2016. 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 Page 3 City of Clearwater Pension Trustees Meeting Minutes January 17, 2017 participant has reached the age of sixty-five years and completed ten years of credited service. Ms. Hofferle will meet the non-hazardous duty criteria and begin collecting a pension in September 2026. Ms. Tefft will meet the non-hazardous duty criteria and begin collecting a pension in September 2026. 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 Cundiff moved to approve the following request of employees Jana Hofferle, Engineering Department and Catalina Tefft, Finance Department, to vest their pensions as provided by Section 2.419 of the Employees' Pension Plan. The motion was duly seconded and carried unanimously. 4.3 Approve the following request of employee Kathleen LaTerza, Parks and Recreation Department for a regular pension as provided by Sections 2.416 and 2.424 of the Employees' Pension Plan. Kathleen LaTerza, Recreation Program Coordinator, Parks and Recreation Department, was employed by the City on December 1, 1986, and her pension service credit is effective on that date. Her pension will be effective January 1, 2017. Based on an average salary of approximately $70,218.79 over the past five years, the formula for computing regular pensions and Ms. LaTerza's selection of the Life Annuity, this pension benefit will be approximately $58,075.32 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. LaTerza has met the non-hazardous duty criteria. Section 2.416 provides for normal retirement eligibility for hazardous duty Page 4 City of Clearwater Pension Trustees Meeting Minutes January 17, 2017 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 Kathleen LaTerza, Parks and Recreation 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. 4.4 Approve revised pension plan expenditures for fiscal year 2017, increasing the previously approved $338,900 by $5,000 for actuarial consulting services and $2,000 for pension benefits calculator software license, for a revised total of$345,900. The Trustees previously approved fiscal year 2017 pension plan routine administration expenditures of$338,900. This item is requesting approval of a revised total due to the addition of actuarial consulting services ($5,000) and annual licensing for the pension benefits software ($2,000). The previous actuarial services agreement and related purchase order included, in addition to fees for the annual actuarial valuations, estimated actuarial consulting services and the software license in a total not-to-exceed amount approved by the Trustees. The new agreement not-to-exceed amount, approved by the Trustees in December, includes the fees for annual actuarial valuations/reporting only. We are consequently requesting approval of a $5,000 contingency for hourly actuarial consulting services and $2,000 for the Gabriel Roeder Smith (GRS) pension benefit calculator software license during fiscal year 2017. The hourly consulting services and the software license, while provided by Gabriel Roeder Smith, are separate services from the annual actuarial valuations that we feel should be disclosed and approved annually by the Trustees. APPROPRIATION CODE AND AMOUNT: 0646-xxxxx-5xxxxx (various pension plan expenditure codes) In response to questions, Finance Director Jay Ravins said expenditures include the pension attorney fees, which are used on an as needed basis and not through an annual contractual amount. The item before the Trustees does not include the actuarial contract that was approved in December. Page 5 City of Clearwater Pension Trustees 5. Adjourn Attest Meeting Minutes January 17, 2017 Trustee Jonson moved to approve revised pension plan expenditures for fiscal year 2017, increasing the previously approved $338,900 by $5,000 for actuarial consulting services and $2,000 for pension benefits calculator software license, for a revised total of $345,900. The motion was duly seconded and carried unanimously. The meeting adjourned at 9:26 a.m. forte \c •-c O5 Chair mployees' Pension Plan Trustees City Clerk City of Clearwater Page 6