04/12/2021 Pension Trustees Meeting Minutes April 12, 2021
City of Clearwater
Main Library- Council Chambers
100 N. Osceola Avenue
Clearwater, FL 33755
m
Meeting Minutes
Monday, April 12, 2021
9:00 AM
Main Library - Council Chambers
Pension Trustees
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City of Clearwater
Pension Trustees Meeting Minutes April 12, 2021
Roll Call
Present 5 - Chair Frank Hibbard, Trustee David Allbritton, Trustee Hoyt Hamilton,
Trustee Kathleen Beckman, and Trustee Mark Bunker
Also Present—William B. Horne II — City Manager, Micah Maxwell — Assistant
City Manager, Michael Delk — 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— Mayor Hibbard
The meeting was called to order at 9:01 a.m.
2. Approval of Minutes
2.1 Approve the February 16, 2021 Pension Trustees Meeting Minutes as submitted in
written summation by the City Clerk.
Trustee Allbritton moved to approve the February 16, 2021 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
Robert Mitchell, Recreation Leader, Parks and Recreation 01/19/2021
David McMullen, Parking Enforcement Specialist, Engineering 02/16/2021
Hunter Walke, Pool Lifeguard, Parks and Recreation 02/01/2021
Alexa Walling, Customer Service Rep, Customer Service 01/25/2021
Aaron Braley, Sr. Accountant, Marine and Aviation 01/04/2021
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Pension Trustees Meeting Minutes April 12, 2021
Michael MacDonald, Account Collector, Customer Service 01/04/2021
David Kadau, Fire Division Chief, Fire 01/04/2021
Fredy Torres-Carrillo, Parks Service Technician, Parks and Rec. 01/04/2021
Donna Cowley, Customer Service Rep, Customer Service 01/19/2021
Jessica Reyes, Customer Service Rep, Customer Service 01/19/2021
Leonard Sala, Stormwater Technician, Engineering /Stormwater 01/19/2021
Amanda Santiago, Personnel/Payroll Tech, Parks and Recreation 01/19/2021
May Bergeson, Police Telecommunicator, Police 02/01/2021
Avery Fennell, Police Telecommunicator, Police 02/01/2021
Ransome Walker, Solid Waste Worker, Solid Waste 02/01/2021
Caleb Bishoff, Stormwater Technician, Engineering /Stormwater 02/16/2021
Vincent Carlo, Parking Enforcement Specialist, Engineering 02/16/2021
Trustee Beckman 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 Patricia Kuligowski, City Council
Department, Lesa Phillips, Police Department and Brian Swartz, Fire Department to vest
their pensions as provided by Section 2.419 of the Employees' Pension Plan.
Patricia Kuligowski, Executive Assistant, City Council Department, was
employed by the City on November 27, 2006, and began participating in the
Pension Plan on that date. Ms. Kuligowski terminated from City employment on
January 26, 2021.
Lesa Phillips, Police Officer, Police Department, was employed by the City on
January 12, 2004, and began participating in the Pension Plan on that date. Ms.
Phillips terminated from City employment on January 22, 2021.
Brian Swartz, Firefighter/Driver-Operator, Fire Department, was employed by
the City on June 3, 2002, and began participating in the Pension Plan on that
date. Mr. Swartz terminated from City employment on May 28, 2020.
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
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City of Clearwater
Pension Trustees Meeting Minutes April 12, 2021
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. Kuligowski will meet the non-hazardous duty criteria and begin collecting a
pension in February 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. Ms. Phillips will meet the
hazardous duty criteria and begin collecting pension in February 2024 and Mr.
Swartz will meet the hazardous duty criteria and begin collecting pension in July
2022.
Trustee Bunker moved to approve the following request of employees
Patricia Kuligowski, City Council Department, Lesa Phillips, Police
Department and Brian Swartz, Fire 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 Amelia Adams, Financial and Budget
Operations Department, Richard Garbe, Gas Department, Ricky Hess, Engineering
Department, Randy Higgins, Engineering Department, William Howard, Public Utilities
Department, Andre Lambert, Engineering Department, Jean Louis, IT Department,
Donald Magness, Fire Department, Trevor Murray, Fire Department, Kevin O'Neill, Fire
Department and David Powers, Solid Waste and General Services Department, for a
regular pension as provided by Sections 2.416 and 2.424 of the Employees' Pension
Plan.
Amelia Adams, Senior Accounting Technician, Financial and Budget Operations
Department, was employed by the City on January 31, 2011 and her pension
service credit is effective on that date. Her pension will be effective March 1,
2021. Based on an average salary of approximately $32,738.16 over the past
five years, the formula for computing regular pensions and Ms. Adams'
selection of the Life Annuity, this pension benefit will be approximately $9,068.04
annually.
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City of Clearwater
Pension Trustees Meeting Minutes April 12, 2021
Richard Garbe, Gas System Specialist, Gas Department, was employed by the
City on January 13, 1992 and his pension service credit is effective on that date.
His pension will be effective February 1, 2021. Based on an average salary of
approximately $77,071.77 over the past five years, the formula for computing
regular pensions and Mr. Garbe's selection of the 75% Joint and Survivor, this
pension benefit will be approximately $61,857.24 annually.
Ricky Hess, Environmental Code Enforcement Inspector, Engineering
Department, was employed by the City on July 22, 1996 and his pension
service credit is effective on that date. His pension will be effective February 1,
2021. Based on an average salary of approximately $55,800.76 over the past
five years, the formula for computing regular pensions and Mr. Hess' selection
of the 100% Joint and Survivor Annuity, this pension benefit will be
approximately $33,795.12 annually.
Randy Higgins, Stormwater Heavy Equip Operator, Engineering Department,
was employed by the City on May 24, 1999 and his pension service credit is
effective on that date. His pension will be effective May 1, 2021. Based on an
average salary of approximately $41,469.16 over the past five years, the formula
for computing regular pensions and Mr. Higgins' selection of the Life Annuity,
this pension benefit will be approximately $25,016.04 annually.
William Howard, Wastewater Treatment Plant Operator A, Public Utilities
Department, was employed by the City on February 28, 2011 and his pension
service credit is effective on that date. His pension will be effective March 1,
2021. Based on an average salary of approximately $46,631.97 over the past
five years, the formula for computing regular pensions and Mr. Howard's
selection of the 100% Joint and Survivor Annuity, this pension benefit will be
approximately $10,867.32 annually.
Andre Lambert, Traffic Sign and Marking Tech, Engineering Department, was
employed by the City on September 5, 1995 and his pension service credit is
effective on that date. His pension will be effective March 1, 2021. Based on an
average salary of approximately $54,639.53 over the past five years, the formula
for computing regular pensions and Mr. Lambert's selection of the 100% Joint
and Survivor Annuity with a 30% partial lump sum, this pension benefit will be
approximately $23,399.40 annually.
Jean Louis, Sr Systems Programmer, IT Department, was employed by the
City on February 14, 2011, and his pension service credit is effective on that
date. His pension will be effective March 1, 2021. Based on an average salary
of approximately $67,454.02 over the past five years, the formula for computing
regular pensions and Mr. Louis' selection of the 10 Year Certain and Life
Annuity, this pension benefit will be approximately $17,275.44 annually.
Donald Magness, Fire District Commander, Fire Department, was employed by
the City on January 23, 2006 and his pension service credit is effective on that
date. His pension will be effective March 1, 2021. Based on an average salary
of approximately $121,219.61 over the past five years, the formula for
computing regular pensions and Mr. Magness' selection of the 100% Joint and
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Pension Trustees Meeting Minutes April 12, 2021
Survivor Annuity, this pension benefit will be approximately $49,003.20 annually.
Trevor Murray, Fire Medic, Fire Department, was employed by the City on July
24, 1995 and his pension service credit is effective on that day. His pension will
be effective February 1, 2021. Based on an average salary of approximately
$86,643.23 over the past five years, the formula for computing regular pensions
and Mr. Murray's selection of the 100% Joint and Survivor Annuity with a 20%
partial lump sum, this pension benefit will be approximately $47,341.68 annually.
Kevin O'Neill, Fire District Commander, Fire Department, was employed by the
City on January 23, 2006, and his pension service credit is effective on that
date. His pension will be effective April 1, 2021. Based on an average salary of
approximately $115,744.26 over the past five years, the formula for computing
regular pensions and Mr. O'Neill's selection of the 100% Joint and Survivor
Annuity, this pension benefit will be approximately $46,828.68 annually.
David Powers, Division Controller, Solid Waste and Recycling Department, was
employed by the City on June 4, 1998 and his pension service credit is effective
on October 11, 1999. His pension will be effective April 1, 2021. Based on an
average salary of approximately $74,177.50 over the past five years, the formula
for computing regular pensions and Mr. Powers' selection of the 100% Joint and
Survivor Annuity, this pension benefit will be approximately $35,479.92 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. Adams, Mr. Garbe, Mr. Hess, Mr. Higgins, Mr. Howard, Mr. Lambert, Mr.
Louis, and Mr. Powers 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. Magness, Mr. Murray
and Mr. O'Neill have met the hazardous duty criteria.
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City of Clearwater
Pension Trustees Meeting Minutes April 12, 2021
Trustee Hamilton moved to approve the following request of
employees Amelia Adams, Financial and Budget Operations
Department, Richard Garbe, Gas Department, Ricky Hess,
Engineering Department, Randy Higgins, Engineering Department,
William Howard, Public Utilities Department, Andre Lambert,
Engineering Department, Jean Louis, IT Department, Donald
Magness, Fire Department, Trevor Murray, Fire Department, Kevin
O'Neill, Fire Department and David Powers, Solid Waste and General
Services 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 Determination of Expected Investment Rate of Return
Florida Statutes 112.661(9) requires an annual determination of expected rates
of return by 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 assumptions
of 6.55%, net of investment-related fees, as the expected annual rate of return
for the current year; 6.50% for the next year; and 6.50% for all years thereafter.
Finance Director Jay Ravins provided a PowerPoint presentation.
Trustee Allbritton moved to approve the Annual Determination of
Expected Investment Rate of Return. The motion was duly
seconded and carried unanimously.
4.5 Annual review of the Employees' Pension Plan investment performance for the calendar
and plan year ended December 31, 2020.
For calendar 2020, the Plan realized an investment return of 15.68%, versus a
customized benchmark of 12.61%, placing the plan in the 11 th percentile of
public pension plans per the Wilshire Public Plan Sponsor Universe.
For the last three calendar years, the plan had an average annualized return of
10.62%, versus a benchmark of 8.16%, placing the plan in the 10th percentile of
public plans.
The investment committee, with the assistance of the Plan's investment
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City of Clearwater
Pension Trustees
Meeting Minutes April 12, 2021
consultant, CapTrust, meets on at least a quarterly basis to monitor asset
allocation and money manager performance, and will continue to recommend
money manager terminations, replacements, and/or additions when
appropriate.
Finance Director Jay Ravins provided a PowerPoint presentation.
In response to questions, Mr. Ravins said the large cap growth manager
was added this year; their performance was not included because they were
recently hired. The Plan has had a long-term relationship with Voya, who
has typically out -performed the index. He said Voya has recently been
underperforming and if the underperformance continues, a
decision will be needed if the Plan should continue with another active
manager. CapTrust, the investment consultant, screens their universe of
managers and provides a short list of managers that meets the Plan's
parameters. Mr. Ravins said staff looks at a rolling three-year period
when assessing a manager's performance. The Plan's asset allocation is
adjusted after an asset allocation study is completed.
Trustee Hamilton moved to approve the annual review of the
Employees' Pension Plan investment performance for the calendar
and plan year ended December 31, 2020. The motion was duly
seconded and carried unanimously.
5. Director's Report - None
6. Adjourn
Attest
City Clerk
The meeting adjourned at 9:15 a.m.
City of Clearwater
d �d d-/�.d
Chair
Employees' Pension Plan Trustees
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