03/18/2019 Pension Trustees Meeting Minutes March 18, 2019
City of Clearwater
Main Library- Council Chambers
100 N. Osceola Avenue
Clearwater, FL 33755
m
ap
® e
Meeting Minutes
Monday, March 18, 2019
9:00 AM
Council Chambers - Main Library
Pension Trustees
Page 1
City of Clearwater
Pension Trustees Meeting Minutes March 18, 2019
Roll Call
Present 3 - Vice Chair Bob Cundiff, Trustee Hoyt Hamilton, and Trustee Jay
Polglaze
Absent 2 - Chair George N. Cretekos, and Trustee David Allbritton
Also Present—William B. Horne II — City Manager, Jill Silverboard Deputy City
Manager, Micah Maxwell — Assistant City Manager, Pamela K.
Akin — City Attorney, Rosemarie Call — City Clerk, Nicole
Sprague — Official Records and Legislative Services Coordinator,
and Jennifer Poirrier— 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— Vice Chair Cundiff
The meeting was called to order at 9:35 a.m. in Council Chambers at the
Main Library.
2. Approval of Minutes
2.1 Approve the February 19, 2019 Pension Trustees Meeting Minutes as submitted in
written summation by the City Clerk.
Trustee Polglaze moved to approve the February 19, 2019
Pension Trustees Meeting Minutes 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.
Page 2
City of Clearwater
Pension Trustees Meeting Minutes March 18, 2019
Name/Job Classification/Department Pension
Eligibility Date
Chelsea Schneiter, Customer Service Representative, Customer Service 01/07/2019
Michael Rivas, Survey Assistant I, Engineering 01/07/2019
David Koleszar, Police Officer, Police 01/07/2019
Corey Roberts, Police Officer, Police 01/07/2019
Paul Durrance, Police Officer, Police 01/07/2019
Alexis Hayward, Police Officer, Police 01/07/2019
Alex Krolick, Police Officer, Police 01/07/2019
Justus Mullin, Police Officer, Police 01/07/2019
Alexander Grant, Solid Waste Equipment Operator, Solid Waste 01/07/2019
Marvin Blythewood, Solid Waste Equipment Operator, Solid Waste 01/07/2019
Wayne Ferrell, Parks Service Supervisor I, Parks & Recreation 01/07/2019
Edward Moralobo, Recreation Leader, Parks & Recreation 01/19/2019
Janelle Vincenty, Staff Assistant, Fire 01/22/2019
Richard Droncheff, Gas Technician I, Gas 01/22/2019
William Bucceri, Tradesworker, Marine &Aviation 01/22/2019
Juliahna Green, Neighborhood Services Coordinator, Planning & Dev. 01/22/2019
Michael Ryder, Heavy Equipment Operator, Parks & Recreation 01/22/2019
Joseph Rotondo, Recreation Leader, Parks & Recreation 01/22/2019
Trustee Hamilton 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 David Huff, Public Utilities Department,
Timothy Keene, Public Utilities Department, Christine Schlerf, Human Resources
Department and Shawn Stafford, Public Communications Department, to vest their
pensions as provided by Section 2.419 of the Employees' Pension Plan.
David Huff, Wastewater Treatment Plant Oper B, Public Utilities Department,
was employed by the City on December 10, 2007, and began participating in the
Pension Plan on that date. Mr. Huff terminated from City employment on
Page 3
City of Clearwater
Pension Trustees Meeting Minutes March 18, 2019
December 7, 2018.
Timothy Keene, Public Utilities Tech III, Public Utilities Department, was
employed by the City on August 4, 1997, and began participating in the Pension
Plan on that date. Mr. Keene terminated from City employment on January 19,
2019.
Christine Schlerf, Human Resources Manager, Human Resources Department,
was employed by the City on May 22, 2000, and began participating in the
Pension Plan on that date. Ms. Schlerf terminated from City employment on
December 19, 2018.
Shawn Stafford, Station Manager, Public Communications Department, was
employed by the City on May 6, 1996, and began participating in the Pension
Plan on that date. Mr. Stafford terminated from City employment on November
3, 2018.
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 participant has
reached the age of sixty-five years and completed ten years of credited service.
Mr. Huff will meet the non-hazardous duty criteria and begin collecting a pension
in December 2026. Mr. Keene will meet the non-hazardous duty criteria and
begin collecting a pension in February 2024. Ms. Schlerf will meet the
non-hazardous duty criteria and begin collecting a pension in January 2022. Mr.
Stafford will meet the non-hazardous duty criteria and begin collecting a pension
in June 2026.
Trustee Hamilton moved to approve the following request of
employees David Huff, Public Utilities Department, Timothy
Page 4
City of Clearwater
Pension Trustees Meeting Minutes March 18, 2019
Keene, Public Utilities Department, Christine Schlerf, Human
Resources Department and Shawn Stafford, Public
Communications 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 employees Vincent Booker, Fire Department, James
Jackson, Parks and Recreation Department, William Jaroszek, Information Technology,
Thomas Jensen, Fire Department and Patricia Meri, Customer Service Department, for a
regular pension as provided by Sections 2.416 and 2.424 of the Employees' Pension
Plan.
Vincent Booker, Fire Lieutenant, Fire Department, was employed by the City on
November 2, 1992, and his pension service credit is effective on that date. His
pension will be effective February 1, 2019. Based on an average salary of
approximately $83,831.58 over the past five years, the formula for computing
regular pensions and Mr. Booker's selection of the 50% Joint and Survivor
Annuity, this pension benefit will be approximately $55,621.20 annually.
James Jackson, Tradesworker, Parks and Recreation Department, was
employed by the City on August 4, 1997, and his pension service credit is
effective on that date. His pension will be effective February 1, 2019. Based on
an average salary of approximately $38,383.58 over the past five years, the
formula for computing regular pensions and Mr. Jackson's selection of the 50%
Joint and Survivor Annuity, this pension benefit will be approximately $22,078.80
annually.
William Jaroszek, Senior Systems Programmer, Information Technology
Department, was employed by the City on August 29, 1990, and his pension
service credit is effective on that date. His pension will be effective February 1,
2019. Based on an average salary of approximately $85,206.82 over the past
five years, the formula for computing regular pensions and Mr. Jaroszek's
selection of the Joint and Survivor Annuity, this pension benefit will be
approximately $66,520.44 annually.
Thomas Jensen, Fire Lieutenant, Fire Department, was employed by the City
on May 26, 1987, and his pension service credit is effective on that date. His
pension will be effective February 1, 2019. Based on an average salary of
approximately $106,223.63 over the past five years, the formula for computing
regular pensions and Mr. Jensen's selection of the 50% Joint and Survivor
Annuity, this pension benefit will be approximately $96,354.84 annually.
Patricia Meri, Senior Customer Service Representative, Customer Service
Department, was employed by the City on August 5, 1985, and her pension
service credit is effective on that date. Her pension will be effective February 1,
Page 5
City of Clearwater
Pension Trustees Meeting Minutes March 18, 2019
2019. Based on an average salary of approximately $49,533.38 over the past
five years, the formula for computing regular pensions and Ms. Meri's selection
of the Single Life Annuity, this pension benefit will be approximately $45,617.52
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. Jackson, Mr. Jaroszek and Ms. Meri 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. Booker and Mr. Jensen
have met the hazardous duty criteria.
Trustee Hamilton moved to approve the following request of
employees Vincent Booker, Fire Department, James Jackson,
Parks and Recreation Department, William Jaroszek, Information
Technology, Thomas Jensen, Fire Department and Patricia Meri,
Customer Service 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 Annual review of the Employees' Pension Plan investment performance for the calendar
and plan year ended December 31, 2018.
Annually a presentation of the Plan's calendar year investment performance is
made to the Trustees. For calendar 2018, the Plan realized a negative
investment return of (2.65%), versus a customized benchmark of negative
(4.62%), placing the plan in the 29th percentile of public pension plans per the
Wilshire Public Plan Sponsor Universe.
Page 6
City of Clearwater
Pension Trustees
Meeting Minutes March 18, 2019
For the last three calendar years, the plan had an average annualized return of
6.41%, versus a benchmark of 5.72 %, placing the plan in the 38th percentile of
public plans.
Staff 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.
The investment committee, with the assistance of the Plan's investment
consultant, CapTrust Advisors, 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 actuarial valuation will
determine the overall impact to the contribution next year. The Plan
had a good year in the drop -off of the 5 -year rolling average, which will
replace this year's poor performance. He hoped that since the City has been
over - contributing to rebuild the credit balance, not much change will be seen
for the required contribution. Mr. Ravins said the City has not used any of the
credit balance to date; pending the result of the actuarial valuation,
the Trustees may be asked to use a portion of the credit balance to offset a
significantly increased required employer contribution. Overall, the Plan
performed very well.
5. Director's Report — None.
6. Adiourn
Attest
City Clerk
The meeting adjourned at 9:48 a.m.
City of Clearwater
.--`20r(VIC((;([.0;
Chair
Employees' Pension Plan Trustees
Page 7