03/13/2017 Pension Trustees Meeting Minutes March 13, 2017
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
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Meeting Minutes
Monday, March 13, 2017
1 :00 PM
Council Chambers
Pension Trustees
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City of Clearwater
Pension Trustees Meeting Minutes March 13, 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, 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 1:28 p.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the February 13, 2017 Pension Trustees Meeting as
submitted in written summation by the City Clerk.
Trustee Jonson moved to approve the minutes of the February 13,
2017 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 Classification/Department Eligibility Date
Alvin Miller, Recreation Leader, Parks and Recreation 12/24/2016
Christopher Fowler, Police Officer, Police 01/07/2017
Daniel Jewett, Police Officer, Police 01/07/2017
Elliot Lightfoot, Police Officer, Police 01/07/2017
Jarik Melendez-Torres, Police Officer, Police 01/07/2017
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City of Clearwater
Pension Trustees Meeting Minutes March 13, 2017
Xavier Rodriguez, Police Officer, Police 01/07/2017
Erin Hollingsworth, Librarian III, Library 01/09/2017
Zachary Cudizio, Parking Enforcement Specialist, Engineering 01/09/2017
Caleb Peterson, Recreation Supervisor, Parks and Recreation 01/09/2017
Albert McCue, Police Information Technician I, Police 01/09/2017
Anthony Pitsenbarger, Public Utilities Technician I, Public Utilities 01/09/2017
Danny Fiber, Police Officer, Police 01/09/2017
Raul Garcia, Public Utilities Technician I, Public Utilities 01/09/2017
Charles Lewis, Stormwater Technician I, Engineering 01/23/2017
Marcus Weaver, Stormwater Technician I, Engineering 01/23/2017
Justin Kristich, Recreation Supervisor I, Parks and Recreation 01/23/2017
Jason Detwiler, Water Distribution Operator Trainee, Public Utilities 01/23/2017
Agustin Menchaca III , Water Distribution Operator Trainee, Public Utilities 01/23/2017
Myra James, Development Review Technician I, Planning and Development 01/23/2017
Kathy Paulsen, Human Resources Office Assistant, Human Resources 01/23/2017
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 Barbara Eigenmann, Fire Department,
Richard Harris, Police Department, Veronica Hunt, Police Department and Joyce
Kirchoffer, Library Department for a regular pension as provided by Sections 2.416
and 2.424 of the Employees' Pension Plan.
Barbara Eigenmann, Staff Assistant, Fire Department, was employed by the
City on January 26, 1987, and her pension service credit is effective on that
date. Her pension will be effective February 1, 2017. Based on an average
salary of approximately $39,383.70 over the past five years, the formula for
computing regular pensions and Ms. Eigenmann's selection of the 50% Joint
and Survivor Annuity, this pension benefit will be approximately $24,831.84
annually.
Richard Harris, Police Lieutenant, Police Department, was employed by the
City on May 27, 1980, and his pension service credit is effective on that date.
His pension will be effective February 1, 2017. Based on an average salary of
approximately $115,265.22 over the past five years, the formula for computing
regular pensions and Mr. Harris' selection of the 100% Joint and Survivor
Annuity, this pension benefit will be approximately $111,646.68 annually.
Veronica Hunt, Police Office Specialist, Police Department, was employed by
the City on December 6, 1985, and her pension service credit is effective
September 28, 1992. Her pension will be effective February 1, 2017. Based on
an average salary of approximately $43,630.25 over the past five years, the
formula for computing regular pensions and Ms. Hunt's selection of the 50%
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City of Clearwater
Pension Trustees Meeting Minutes March 13, 2017
Joint and Survivor Annuity, this pension benefit will be approximately
$30,192.72 annually.
Joyce Kirchoffer, Librarian I, Library Department, was employed by the City on
April 29, 1993, and her pension service credit is effective June 24, 1993. Her
pension will be effective March 1, 2017. Based on an average salary of
approximately $39,166.31 over the past five years, the formula for computing
regular pensions and Ms. Kirchoffer's selection of the Life Annuity, this pension
benefit will be approximately $25,493.76 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. Ms. Eigenmann, Ms. Hunt and Ms. Kirchoffer 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. Harris has met the
hazardous duty criteria.
Trustee Cundiff moved to approve the following request of
employees Barbara Eigenmann, Fire Department, Richard Harris,
Police Department, Veronica Hunt, Police Department and Joyce
Kirchoffer, Library 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 Annual review of the Employees' Pension Plan investment performance for the
calendar and plan year ended December 31, 2016.
Annually a presentation of the Plan's investment performance is made to the
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City of Clearwater
Pension Trustees Meeting Minutes March 13, 2017
Trustees. For calendar 2016, the Plan realized an investment return of 6.63%,
versus the plan's assumed rate of 7.00%, and versus a customized benchmark
of 7.32%, placing the plan in the 79th percentile of public pension plans per the
Wilshire Public Plan Sponsor Universe.
For the last three calendar years period, the plan had an annualized return of
5.42%, versus a benchmark of 5.74%, placing the plan in the 27th percentile of
public plans. For the past five years, the plan had an annualized return of
9.48%, versus a benchmark of 8.93%, placing the plan in the 21 st percentile of
public plans.
During calendar 2016, the Trustees approved a new infrastructure money
manager, as well as the termination of an international equity money manager.
The Pension Investment Committee continues to seek diversification and
decreased volatility in investment returns for the Plan via alternative investment
categories. In recent years, new categories introduced have included timber
investments, core plus real estate, and infrastructure.
A number of money managers underperformed their indexes during calendar
2016. The investment committee, with the assistance of the Plan's investment
consultant, CapTrust, closely monitors underperforming money managers and
will continue to recommend terminations and replacements when appropriate.
Finance Director Jay Ravins provided a PowerPoint presentation.
In response to questions, Mr. Ravins said the total fund performance
was 6.63%, which is under the 7% target. For the past five of ten years,
the fund has outperformed. To some degree, the City's benchmark is
customized to its asset allocation. Mr. Ravins said other plan portfolios
include hedge funds as part of their benchmark, the City's portfolio does
not include hedge funds and the reason why it is not part of its benchmark.
Cap Trust representative John Griffith said on December 31, 2016, the asset
allocation was very close to target, the closest it has been. Mr. Ravins
said despite the plan not meeting its benchmark target, the plan remains
fully funded, the plan has been over 100% funded. 2017 investments are off
to a good start, hitting the 7% assumption. Staff will know for certain if
there is any impact to the City's budget next month when the actuary
report is reviewed. Staff does not anticipate any budgetary impact since
the overall performance was close to 7% and there are accumulated
earnings from prior years.
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City of Clearwater
Pension Trustees
5. Adjourn
Meeting Minutes March 13, 2017
The meeting adjourned at 1:41 p.m.
City of Clearwater
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Chair
Employees' Pension Plan Trustees
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