05/13/2019Monday, May 13, 2019
9:00 AM
City of Clearwater
Main Library - Council Chambers
100 N. Osceola Avenue
Clearwater, FL 33755
Main Library - Council Chambers
Pension Trustees
Meeting Agenda
May 13, 2019Pension Trustees Meeting Agenda
1. Call To Order
2. Approval of Minutes
2.1 Approve the April 15, 2019 Pension Trustees Meeting Minutes 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 Sean Ambrose, Planning and
Development Department, Lisa Goodrich, Human Resources Department,
Lan-Ahn Nguyen, Engineering Department, Robert Tefft, Planning and
Development Department and Douglas Wood, Fire Department to vest their
pensions as provided by Section 2.419 of the Employees’ Pension Plan.
4.3 Approve the following request of employees Kevin D’Amico, Police Department,
Elizabeth Minor, Parks and Recreation Department, John Olson, Solid Waste
General Services and Karl Wassmer, Police Department, for a regular pension
as provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan.
5. Director's Report
6. Adjourn
Page 2 City of Clearwater Printed on 5/10/2019
Cover Memo
City of Clearwater Main Library - Council
Chambers
100 N. Osceola Avenue
Clearwater, FL 33755
File Number: ID#19-6053
Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1
File Type: MinutesIn Control: Pension Trustees
Agenda Number: 2.1
SUBJECT/RECOMMENDATION:
Approve the April 15, 2019 Pension Trustees Meeting Minutes 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 5/10/2019
Pension Trustees Meeting Minutes April 15, 2019
Page 1
City of Clearwater
City of Clearwater
Main Library - Council Chambers
100 N. Osceola Avenue
Clearwater, FL 33755
Meeting Minutes
Monday, April 15, 2019
9:00 AM
Council Chambers - Main Library
Pension Trustees
Pension Trustees Meeting Minutes April 15, 2019
Page 2
City of Clearwater
Roll Call
Present 5 - Chair George N. Cretekos, Trustee Bob Cundiff, Trustee Hoyt
Hamilton, Trustee David Allbritton, and Trustee Jay Polglaze
Also Presen t – William B. Horne II – City Manager, Jill Silverboard Deputy City
Manager, Micah Maxwell – Assistant City Manager, Pamela K.
Akin – City Attorney, Rosem ar ie Call – City Clerk, Nicole
Spra gue – Offic ial Re cords and Le gis lati ve Ser vice s Coo rd in ator,
and Jennifer Poirrier – Human Resources Director
To pro vi de continui ty fo r research, items are li sted in agend a order altho ugh not
necessarily disc ussed in that order.
Unapproved 1. Call to Order – Chair Cretekos
The meeting was called to order at 9:13 a.m. in Council Chambers at the
Main Library.
2. Approval of Minutes
2.1 Approve the March 18, 2019 Pension Trustees Meeting Minutes as submitted in written
summation by the City Clerk.
Trustee Cundiff moved to approve the March 18, 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.
Name/Job Classification/Department Pension Eligibility Date
Alexander Kaye, Police Cadet, Police 02/04/2019
Robert Black, Fleet Mechanic, General Services 02/04/2019
Angel Lopez, Fleet Mechanic, General Services 02/04/2019
Matthew Lentner, Parks Service Technician I, Parks & Recreation 02/04/2019
Brenden Overton, Parks Service Technician I, Parks & Recreation 02/04/2019
Aaron Cowan Jr., Parks Service Technician I, Parks & Recreation 02/04/2019
Brandi Harriman, Police Communication Operator Trainee, Police 02/04/2019
Pension Trustees Meeting Minutes April 15, 2019
Page 3
City of Clearwater
Nikki Webster, Police Communication Operator Trainee, Police02/04/2019
Jason Judd, WasteWater Treatment Plant Operator A, Public Utilities 02/04/2019
Jason Young, Utilities Mechanic, Public Utilities 02/04/2019
Tiison Richardson, Solid Waste Worker, Solid Waste 02/04/2019
Kyahna Roberts, Solid Waste Worker, Solid Waste 02/04/2019
Anthony Foster, Solid Waste Equipment Operator, Solid Waste 02/04/2019
Bernard McNally, Parking, Facility & Security Aide, Marine & Aviation 02/04/2019
Tamela Root, Customer Service Representative, Customer Service02/16/2019
Kieffer Nyland, Drafting & Mapping Technician, Engineering02/19/2019
Richard Berg III, Stormwater Technician I, Engineering02/19/2019
Christopher Hurtt, Parks Service Technician I, Parks & Recreation 02/19/2019
Edward Craft, Utilities Mechanic, Public Utilities 02/19/2019
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 Joseph Assed, Public Utilities Department,
Kevin Bowler, Fire Department, and Sharron Jackson, Park and Recreation Department,
for a regular pension as provided by Sections 2.416 and 2.424 of the Employees’
Pension Plan.
Joseph Assed, Water Distribution Operator, Public Utilities Department, was
employed by the City on February 16, 1988, and his pension service credit is
effective on that date. His pension will be effective March 1, 2019. Based on an
average salary of approximately $55,525.61 over the past five years, the formula
for computing regular pensions and Mr. Assed’s selection of the Joint and
Survivor Annuity, this pension benefit will be approximately $47,399.16 annually.
Kevin Bowler, Fire Lieutenant, Fire Department, was employed by the City on
March 4, 1996, and his pension service credit is effective on that date. His
pension will be effective March 1, 2019. Based on an average salary of
approximately $85,784.93 over the past five years, the formula for computing
regular pensions and Mr. Bowler’s selection of the 50% Joint and Survivor
Annuity, this pension benefit will be approximately $55,332.60 annually.
Sharron Jackson, Recreation Leader II, Parks and Recreation Department, was
employed by the City on March 26, 1979, and her pension service credit is
effective on that date. Her pension will be effective April 1, 2019. Based on an
average salary of approximately $42,595.52 over the past five years, the formula
for computing regular pensions and Ms. Jackson’s selection of the Life Annuity,
this pension benefit will be approximately $46,868.16 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
Pension Trustees Meeting Minutes April 15, 2019
Page 4
City of Clearwater
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. Assed and Ms. Jackson 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. Bowler has met the
hazardous duty criteria.
Trustee Allbritton moved to approve the following request of
employees Joseph Assed, Public Utilities Department, Kevin
Bowler, Fire Department, and Sharron Jackson, Park 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.
4.3 Accept the January 1, 2019 Annual Actuarial Valuation for the Employees’ Pension Plan.
Per the actuary report dated January 1, 2019, a minimum city employer
contribution of $9.71 million, or 11.48% of covered payroll, is required for fiscal
year 2020. This is an increase of approximately $910,000 over the fiscal 2019
required contribution of $8.80 million, or 10.69% of covered payroll.
The calendar year 2018 investment return was a loss of (2.48%), net of
investment fees, versus the assumed rate of 6.75%. The five-year smoothed
investment return based on the actuarial value of the assets was 5.76% versus
the assumed rate of 6.75%. Calendar 2014 through 2018 investment returns
were 7.99%, (0.28%), 6.70%, 16.01%, and (2.48%), respectively.
The plan experienced a net actuarial experience loss of ($5.8) million for the
year. The loss is primarily due to the actuarial loss from the actuarial investment
return of 5.76% versus the assumption of 6.75%.
The Plan's funded ratio at January 1, 2019 was 104.09% (including the credit
Pension Trustees Meeting Minutes April 15, 2019
Page 5
City of Clearwater
balance) versus 106.96% for the prior year. The actuarial value of assets
exceeds the market value of assets by $41.5 million as of January 1, 2019.
The plan's credit balance, which reflects actual contributions in excess of
actuarially required contributions for prior years, increased from $22.8 million to
$26.6 million during calendar 2018. This $3.8 million increase was due to the
City’s budgeted overfunding of the fiscal 2019 required contribution. The City
contributed 13% of covered salaries, versus the actuarially required 10.69%, to
increase the plan’s credit balance reserves in anticipation of future volatility in
required contributions.
The Employees’ Pension Plan is highly leveraged on investment returns in
comparison to most pension plans, which means changes in investment
earnings cause significant increases or decreases in required employer
contributions. This year-to-year volatility necessitates building reserves, such as
the plan’s credit balance, during periods of positive investment earnings
experience. This provides the City the ability to subsidize increased employer
contributions during periods of negative investment earnings experience with
contributions from accumulated reserves.
Gabriel Roeder Smith Actuary Peter Strong reviewed the report. The
assumption changes have increased the contribution rate, mainly due to
the reduction in the assumed investment return assumption, from 7.0% to
6.75%. This assumption change is the first step in a three-year trend to
get the investment return assumption down to 6.5%. The change created
approximately a $1 million increase in the contribution requirement.
In response to questions, Mr. Strong said the Plan recognizes each year
20% of the last 5 years of expected deviations is being added; some
of the deviations are positive and some are negative. Next year a $1.4
million phase-in from 2014 will be dropped off. The 26 million-credit
balance reserve was built up using excess contributions that the City has
made in the past. He said just because the Plan is fully funded now does
not mean it will always remain funded; the reserve can be used to offset
the City's contribution if there is a spike in the contribution. The reserve
can only be used to offset the City's contribution to the Plan. If there was
no credit balance, the City would have to use general revenue funds for
the contribution. Until the most recent bad year in 2018, the City
had good investment returns. He said return seeking assets will have
volatility because that it the risk involved with trying to generate the
expected return rate of 7% or 6.75%. The City's Plan continues to be one
of the best funded plans in the State; the Plan's funded ratio is 101%. Mr.
Strong said it is not expected that the market will provide 10% returns per
Pension Trustees Meeting Minutes April 15, 2019
Page 6
City of Clearwater
year in the future; most economists predict a 6-7% range for the next 20
years.
Trustee Polglaze moved to accept the January 1, 2019 Annual
Actuarial Valuation for the Employees’ Pension Plan. The motion
was duly seconded and carried unanimously.
4.4 Determine Trustees’ expected rate of return for pension plan investments for current year,
each of the next several years, and for the long term thereafter, in accordance with Florida
Statutes 112.661(9).
Florida Statutes 112.661(9) requires an annual determination of expected rates
of return be filed with the Florida Department of Management Services, with the
plan’s sponsor, and with the consulting actuary.
Staff is recommending the current plan investment rate of return assumption of
6.75%, net of investment-related fees, as the expected annual rate of return for
the current year; 6.65% for the next year; 6.55% for the year thereafter; and
6.50% for the long term.
Trustee Cundiff moved to approve 6.75% as the expected rate of
return for pension plan investments for current year; 6.65% for the
next year; 6.55% for the year thereafter; and 6.50% for the long term, in
accordance with Florida Statutes 112.661(9). The motion was duly
seconded and carried unanimously.
5. Director's Report – None. 6. Adjourn
The meeting adjourned at 9:35 a.m.
Chair
Employees’ Pension Plan Trustees
Attest
City Clerk
Cover Memo
City of Clearwater Main Library - Council
Chambers
100 N. Osceola Avenue
Clearwater, FL 33755
File Number: ID#19-6002
Agenda Date: 5/13/2019 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 Classification/Department Pension Eligibility Date
Luis Ravelo,Solid Waste Equipment Operator, Solid Waste 03/04/2019
Andres Villamarzo, Customer Service Representative, Customer Service 03/04/2019
Donna Saxer, Code Enforcement Inspector, Planning & Development 03/04/2019
Alyssa Gagliardi, Senior Payroll Technician, Finance/Payroll 03/18/2019
William Sizemore III, Water Distribution Operator Trainee, Public Utilities 03/18/2019
Deoraj Sabinath, Electronics Technician, Public Utilities 03/18/2019
Victoria McLaughlin, Parks Service Supervisor I, Parks & Recreation 03/18/2019
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
Page 1 City of Clearwater Printed on 5/10/2019
Interoffice Correspondence Sheet
TO: Pension Advisory Committee
FROM: Jennifer Poirrier, Human Resources Director
SUBJECT: Recommendation for Acceptance into Pension Plan
DATE:
Subject/Recommendation: Recommend approval of the new hires for acceptance into the Pension Plan as listed.
Name Job Classification Department Pension
Eligibility Date
Luis Ravelo Solid Waste Equipment Operator Solid Waste 03/04/2019
Andres Villamarzo Customer Service Representative Customer Service 03/04/2019
Donna Saxer Code Enforcement Inspector Planning & Development 03/04/2019
Alyssa Gagliardi Senior Payroll Technician Finance/Payroll 03/18/2019
William Sizemore III Water Distribution Operator Trainee Public Utilities 03/18/2019
Deoraj Sabinath Electronics Technician Public Utilities 03/18/2019
Victoria McLaughlin Parks Service Supervisor I Parks & Recreation 03/18/2019
Cover Memo
City of Clearwater Main Library - Council
Chambers
100 N. Osceola Avenue
Clearwater, FL 33755
File Number: ID#19-6003
Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 2
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.2
SUBJECT/RECOMMENDATION:
Approve the following request of employees Sean Ambrose, Planning and Development
Department, Lisa Goodrich, Human Resources Department, Lan-Ahn Nguyen, Engineering
Department, Robert Tefft, Planning and Development Department and Douglas Wood, Fire
Department to vest their pensions as provided by Section 2.419 of the Employees’ Pension
Plan.
SUMMARY:
Sean Ambrose, Development Review Tech II, Planning and Development Department, was
employed by the City on January 22, 2008, and began participating in the Pension Plan on that
date. Mr. Ambrose terminated from City employment on November 21, 2018.
Lisa Goodrich, Senior Human Resources Analyst, Human Resource Department, was
employed by the City on February 7, 2005, and began participating in the Pension Plan on that
date. Ms. Goodrich terminated from City employment on March 8, 2019.
Lan-Anh Nguyen, Senior Professional Engineer, Engineering Department, was employed by the
City on February 6, 2006, and began participating in the Pension Plan on that date. Ms. Nguyen
terminated from City employment on March 9, 2019.
Robert Tefft, Senior Planner, Planning and Development Department, was employed by the
City on May 16, 2005, and began participating in the Pension Plan on that date. Mr. Tefft
terminated from City employment on March 16, 2019.
Douglas Wood, Fire Medic, Fire Department, was employed by the City on October 16, 2006,
and began participating in the Pension Plan on that date. Mr. Wood terminated from City
employment on March 1, 2019.
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
Page 1 City of Clearwater Printed on 5/10/2019
File Number: ID#19-6003
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. Ambrose will meet the non -hazardous duty criteria and begin collecting a pension in
February 2038. Ms. Goodrich will meet the non-hazardous duty criteria and begin collecting a
pension in March 2025. Ms. Nguyen will meet the non-hazardous duty criteria and begin
collecting a pension in December 2031. Mr. Tefft will meet the non-hazardous duty criteria and
begin collecting a pension in September 2032.
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. Wood
will meet the hazardous duty criteria and begin collecting pension in November 2026.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
Page 2 City of Clearwater Printed on 5/10/2019
Cover Memo
City of Clearwater Main Library - Council
Chambers
100 N. Osceola Avenue
Clearwater, FL 33755
File Number: ID#19-6004
Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 2
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.3
SUBJECT/RECOMMENDATION:
Approve the following request of employees Kevin D’Amico, Police Department, Elizabeth
Minor, Parks and Recreation Department, John Olson, Solid Waste General Services and Karl
Wassmer, Police Department, for a regular pension as provided by Sections 2.416 and 2.424
of the Employees’ Pension Plan.
SUMMARY:
Kevin D’Amico, Police Lieutenant, Police Department, was employed by the City on March 16,
1987, and his pension service credit is effective on that date. His pension will be effective April
1, 2019. Based on an average salary of approximately $105,982.20 over the past five years, the
formula for computing regular pensions and Mr. D’Amico’s selection of the 100% Joint and
Survivor Annuity with a 20% Partial Lump Sum, this pension benefit will be approximately
$72,035.52 annually.
Elizabeth Minor, Recreation Programmer, Parks and Recreation Department, was employed
by the City on April 3, 2006, and her pension service credit is effective on that date. Her
pension will be effective May 1, 2019. Based on an average salary of approximately $32,553.11
over the past five years, the formula for computing regular pensions and Ms. Minor’s selection
of the Life Annuity, this pension benefit will be approximately $11,660.04 annually.
John Olson, Fleet Mechanic, Solid Waste General Services Department, was employed by the
City on November 10, 1997, and his pension service credit is effective on that date. His
pension will be effective May 1, 2019. Based on an average salary of approximately $51,247.82
over the past five years, the formula for computing regular pensions and Mr. Olson’s selection
of the 50% Joint and Survivor Annuity, this pension benefit will be approximately $28,020.00
annually.
Karl Wassmer, Police Officer, Police Department, was employed by the City on October 26,
1998 and his pension service credit is effective on that date. His pension will be effective May
1, 2019. Based on an average salary of approximately $90,668.87 over the past five years, the
formula for computing regular pensions and Mr. Wassmer’s selection of the 50% Joint and
Survivor Annuity, this pension benefit will be approximately $51,862.44 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
Page 1 City of Clearwater Printed on 5/10/2019
File Number: ID#19-6004
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. Minor and Mr. Olson 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.
D’Amico and Mr. Wassmer have met the hazardous duty criteria.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
Page 2 City of Clearwater Printed on 5/10/2019