07/16/2007
PENSION TRUSTEES AGENDA
Location: Council Chambers - City Hall
Date: 7/16/2007- 1 :30 PM
1. Call to Order
2. Approval of Minutes
2.1 Approve the minutes of the June 18, 2007 Pension Trustees meeting as submitted in written summation by
the City Clerk.
~ Attachments
3. Pension Trustee Items
3.1 Employees listed below be accepted into the City of Clearwater's Employees' Pension Plan.
~ Attachments
3.2 Approve the recommended administrative expenditures for fiscal year 2007-08 totaling $334,500.
@ Attachments
3.3 George Hudson, Solid Waste/General Services Department; Barbara Downs, Parks & Recreation
Department; Ellen Foster, Gas Department; Jack Howell, Solid Waste/General Services Department, and
Ronald Heck, Police Department, be granted regular pensions under Section(s) 2.393 and 2.397 of the
Employees' Pension Plan as approved by the Pension Advisory Committee.
@ Attachments
3.4 Daniel Carpenter, Fire Department, be allowed to vest his pension in accordance with Section 2.397 and
2.398 of the Employees' Pension Plan as approved by the Pension Advisory Committee.
I@l Attachments
4. Other Business
5. Adjourn
Meeting Date:7/16/2007
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve the minutes of the June 18,2007 Pension Trustees meeting as submitted in written summation by the City Clerk.
SUMMARY:
Review Approval: 1) Clerk
Cover Memo
Item # 1
Attachment number 1
Page 1 of 4
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES
CITY OF CLEARWATER
June 18, 2007
Unapproved
Present:
Frank Hibbard
Carlen Petersen
John Doran
George N. Cretekos
Paul Gibson
Also Present:
William B. Horne, II
Garry Brumback
Rod Irwin
Pamela K. Akin
Cynthia E. Goudeau
Patricia O. Sullivan
Chair
Trustee
Trustee
Trustee
Trustee
City Manager
Assistant City
Assistant City M
City Attorney
City Clerk
Board Reporter
The Chair called the meeting to order at 1 :30 g
To provide continuity for research, ite
necessarily discussed in that order.
2 - Approval of Minutes
ove the minut
itten sum mati
d unanimously.
C chnician/Engineering
Sh ping Technician/Engineering
Chris municator/Police
Kimber ecommunicator/Police
Melissa ecommunicator/Police
Thomas Le rd, Marine Facility Operator/Marine & Aviation
Kyle Wilson, Solid Waste Worker/Solid Waste
Michael Austin, Solid Waste Worker/Solid Waste
William Duffin, TV Production Specialist/Public Comm.
Pension Trustees 2007-06-18
itted in
007 Pension Trustee
lerk to each Trustee.
of Clearwater's
Pension Eligible
Hire Date Date
04/02/07
04/02/07
04/02/07
04/02/07
04/02/07
03/03/07
04/02/07
04/02/07
04/23/07
04/02/07
04/02/07
04/02/07
04/02/07
04/02/07
03/21/07
04/02/07
04/02/07
04/23/07
Item # 1
Attachment number 1
Page 2 of 4
Thomas Leonard originally was hired as part-time on March 3, 2007; transferred to full-
time and pension eligible as of March 21, 2007.
Trustee Doran moved to accept the listed employees into membership in the City of
Clearwater's Employees' Pension Plan. The motion was duly seconded and carried
unanimously.
Ed Shannahan, Gas Supervisor, Gas Department, was emp
1977, and his pension service credit is effective on that date. His pe
1, 2007. Based on an average salary of approximately $59,082 per y.
years, the formula for computing regular pensions, and Mr. Shanna
Joint & Survivor Annuity, this pension will approximate $48,124 annu
Sherwin Meyer, Wastewater Treatment Plant
was employed by the City on October 26, 1987, an
that date. His pension will be effective Novembe
approximately $49,356 per year over the past fi
pensions, and Mr. Meyer's selection of the Life
annually.
e City on
e nsion will be
,480 per year over the
on's selection of the
annually.
e Pension Advisory Committee on May 10,2007.
Iigibility when a participant has reached age 55
has completed thirty years of credited service,
f credited service. Section 2.393 also
ibility whe participant has completed twenty years of
ge 55 and completed ten years of credited service in a type of
ous duty" and further defines service as a Fire Medic
dous duty criteria. Mr. Shannahan qualifies under the thirty
eyer qualifies under the age 55 and twenty years of service
under the hazardous duty criteria.
os moved that Ed Shannahan, Gas Department; Sherwin Meyer, Public
; and Wendy Cason, Fire Department, be granted regular pensions under
and 2.397 of the Employees' Pension Plan as approved by the Pension Advisory
The motion was duly seconded and carried unanimously.
Pension Trustees 2007-06-18
2
Item # 1
Attachment number 1
Page 3 of 4
3.3 Catherine Borden, Public Utilities Department, be allowed to vest her pension in accordance
with Sections 2.397 and 2.398 of the Emplovees' Pension Plan as approved bv the Pension
Advisorv Committee.
Catherine Borden, Wastewater Treatment Plant Operator A, Public Utilities Department,
was employed by the City on January 1, 1994, and began participating in the Pen ion Plan on
that date. Ms. Borden terminated from City employment on April 11 ,2007. The loyees'
Pension Plan provides that should an employee cease to be an emplo th f
Clearwater after completing ten or more years of creditable service part
employee shall acquire a vested interest in the retirement benefits. d pensio
commence on the first of the month following the month in which t loyee n
have been eligible for retirement.
Section 2.393 (p) provides for normal retirement eligibility whe
reached age 55 and completed twenty years of credited service, ha
credited service, or has reached age 65 and completed ten years of dit
Borden would have completed at least 20 years of service ached age
2023. Her pension will be effective February 1, 2023. was appr
Pension Advisory Committee on May 10, 2007.
Trustee Gibson moved that Catherine B
vest her pension in accordance with Sections
as approved by the Pension Adviso mitt
unanimously.
he Statement of
ding the additio I izen member on the Pension
ts at least quarterly for approximately four to six
al managers and the fund as a whole. In
s needed for the screening and selection of
mendations to changes in the Statement of
ther purposes as needed.
rding the following: 1) Qualifications of citizen member; 2)
d 3) Term of appointment, etc.
ment information. Citizen Member shall be a City resident, have
nancial field, and posses a degree in Finance. The two-year term will
rm limits. The normal application process will be followed.
3.5 Approve the termination of Capital Guardian as a money manaqer and transfer of the
maioritv of the funds to the Northern Trust EAFE Index Fund with the balance to be used to
rebalance the portfolio
Pension Trustees 2007-06-18
3
Item # 1
Attachment number 1
Page 4 of 4
Capital Guardian has had the following performance over the last 4 years:
Year
Cap Guardian Return
Large Cap Core Style
Cap Guardian Ranking93rd
2006
11.36%
16.01 %
54th
2005
6.60%
7.17%
53rd
2004
9.98%
10.15%
1 st
The Pension Investment Committee recently met with Capit
the above performance and the results of that meeting, the commit
termination of Capital Guardian. The majority of the assets of Cap
transferred to Northern Trust's EAFE Index product that is currently
international exposure to bring the international equity allocation up t
guidelines. The Pension Investment Committee believes that it is imR
asset allocation to international equity to bring the exposure up to t
portfolio as soon as possible.
Staff will be bringing items forward at the next B
allocation, performance measures, active vs. passi
upon that discussion, staff will begin the process
Trustees.
Trustee Petersen moved to
manager and transfer of the majori
the balance to be used to reb
unanimously.
Chair
Employee's Pension Plan Trustees
Pension Trustees 2007-06-18
4
Item # 1
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Employees listed below be accepted into the City of Clearwater's Employees' Pension Plan.
SUMMARY:
Name, Job Class, & Dept/Div
Hire Date
Kevin Duffy, WWTP Operator B/Public Utilities
Shaun Cunningham, Systems Programmer/lT
William Slattery, Parking TechnicianlEngineering
Jesse Myers, Police Cadet/Police
4/16/07
4/30/07
4/30/07
4/30/07
Pension
Elig.
Date
4/16/07
4/30/07
4/30/07
4/30/07
Meeting Date:7/16/2007
Review Approval: 1) Clerk
Cover Memo
Item # 2
Meeting Date:7/16/2007
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve the recommended administrative expenditures for fiscal year 2007-08 totaling $334,500.
SUMMARY:
The Employees' Pension Plan does not have a legal requirement to have a budget. The Trustees must approve all expenditures. The
following are routine expenditures that staff is requesting approval for the sake of efficiency.
These expenditures involve routine business matters and are mostly small dollar amounts.
Printing and binding is for the statutorily required annual information distribution to the members of the pension plan. This number has
been decreased due to actual experiences.
Postage is for certified mailings required under a rule passed by the Pension Trustees and other pension related materials.
Membership dues are for the annual dues for the Florida Public Pension Trust Association.
Training is for the mandatory training required by state statute.
Travel is the estimated cost for training.
Klausner & Kaufman is our pension attorney firm. Annual attorney's fees also include medical bills that are for the medical services
authorized by the Pension Advisory Committee.
Reimbursement to the General Fund and the Self Insurance Fund is for the cost of the oversight of the Plan and is recognized as revenue
to the funds. This reimbursement covers the services provided by Human Resources, Payroll, and Finance.
At this time we are not budgeting for a Referendum for the next year. If a referendum is needed approval will be sought at that time.
Money manager, safekeeping, actuary, and other contractual fees are all set by contracts approved by the Trustees and are not included
in this budget.
Type:
Current Year Budget?:
Operating Expenditure
No Budget Adjustment:
None
Budget Adjustment Comments:
Current Year Cost:
Not to Exceed:
For Fiscal Year:
Annual Operating Cost:
Total Cost:
to
Review Approval: 1) Clerk
Cover Memo
Item # 3
Attachment number 1
Page 1 of 1
City of Clearwater
Employees' Pension Plan
Administrative Expenses
Increase/
Description FY 07/08 FY 06/07 Decrease
Printing & Binding $ 400 $ 750
Postage 400 400 0
Memberships 500 500 0
Misc 200 200 0
Training 5,000 5,000 0
Travel Expense 5,000 5,000 0
Medical Bills 0
Reimbursement to Self Insurance Fund (Human Resources) 45,000 44,000 1,000
Physicals 42,000 44,000
Reimbursement to General Fund (Accounting & Finance) 24,500 24,000 500
Reimbursement to General Fund (Payroll) 71,500 63,000 8,500
Klausner & Kaufman (including Medical Bills) 140,000 140,000 0
Costs of conducting a Referendum 70,000
Nov election piggyback $10,000
Standalone election $60,000
$ 334,500 $ 396,850 $ (62,350)
Item # 3
Meeting Date:7/16/2007
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
George Hudson, Solid Waste/General Services Department; Barbara Downs, Parks & Recreation Department; Ellen Foster, Gas
Department; Jack Howell, Solid Waste/General Services Department, and Ronald Heck, Police Department, be granted regular pensions
under Section(s) 2.393 and 2.397 of the Employees' Pension Plan as approved by the Pension Advisory Committee.
SUMMARY:
George Hudson, Solid Waste Equipment Operator, Solid Waste/General Services Department, was employed by the City on July
12, 1971, and his pension service credit is effective on that date. His pension will be effective July 1,2007.
Based on an average salary of approximately $42,283 per year over the past five years, the formula for computing regular pensions, and
Mr. Hudson's selection of the 100% Joint & Survivor Annuity, this pension will approximate $40,307 annually.
Barbara Downs, Staff Assistant, Parks & Recreation Department, was employed by the City on February 5,1996, and her pension
service credit is effective on January 10, 1997. Her pension will be effective July 1,2007.
Based on an average salary of approximately $26,622 per year over the past five years, the formula for computing regular pensions, and
Ms. Downs' selection of the Joint & Survivor Annuity, this pension will approximate $7,665 annually.
Ellen Foster, Senior Service Dispatcher, Gas Department, was employed by the City on January 21, 1974, and her pension service
credit is effective on July 21, 1974. Her pension will be effective May 1,2007.
Based on an average salary of approximately $36,386 per year over the past five years, the formula for computing regular pensions, and
Ms. Foster's selection of the Joint & Survivor Annuity, this pension will approximate $32,795 annually.
Jack Howell, Licensed Electrician, Solid Waste/General Services Department, was employed by the City on June 27, 1977, and his
pension service credit is effective on August 13, 1977. His pension will be effective September 1, 2007.
Based on an average salary of approximately $46,629 per year over the past five years, the formula for computing regular pensions, and
Mr. Howell's selection of the Joint & Survivor Annuity, this pension will approximate $38,469 annually.
Ronald Heck, Police Officer, Police Department, was employed by the City on June 13, 1977, and his pension service credit is
effective on July 30, 1977. His pension will be effective September 1,2007.
Based on an average salary of approximately $67,626 per year over the past five years, the formula for computing regular pensions, and
Mr. Heck's selection of the Joint & Survivor Annuity, this pension will approximate $55,946 annually.
These pensions were approved by the Pension Advisory Committee on June 14,2007. Section 2.393 provides for normal retirement
eligibility when a participant has reached age 55 and completed twenty years of credited service, has completed thirty years of credited
service, or has reached age 65 and completed ten years of credited service. Section 2.393 also provides for normal retirement eligibility
when a participant has completed twenty years of credited service or has reached age 55 and completed ten years of credited service in a
type of employment described as "hazardous duty" and further defines service as a Police Officer as meeting the hazardous duty
criteria. Mr. Hudson and Ms. Foster qualify under both the age 55 and twenty years of service and the thirty years of service
criteria. Mr. Howell qualifies under the thirty years of service criteria. Ms. Downs qualifies under the age 65 and ten years of service
criteria. Mr. Heck qualifies under the hazardous duty criteria.
Cover Memo
lemnff4n
Review Approval: 1) Clerk
Meeting Date:7/16/2007
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Daniel Carpenter, Fire Department, be allowed to vest his pension in accordance with Section 2.397 and 2.398 of the Employees'
Pension Plan as approved by the Pension Advisory Committee.
SUMMARY:
Daniel Carpenter, Administrative Support Manager, Fire Department, was employed by the City on April 18, 1992, and began
participating in the Pension Plan on that date. Mr. Carpenter terminated from City employment on May 8, 2007.
The Employees' Pension Plan provides that should an employee cease to be an employee of the City of Clearwater 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 2.393 (p) provides for normal retirement eligibility when a participant has reached age 55 and completed twenty years of
credited service, has completed 30 years of credited service, or has reached age 65 and completed ten years of credited service. Mr.
Carpenter would have completed at least 30 years of service on April 18, 2022. His pension will be effective May 1,2022. This pension
was approved by the Pension Advisory Committee on June 14,2007.
Review Approval: 1) Clerk
Cover Memo
Item # 5