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06/14/2021 Pension Trustees Meeting Minutes June 14, 2021 City of Clearwater Main Library- Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 m Meeting Minutes Monday, June 14, 2021 9:00 AM Main Library - Council Chambers Pension Trustees Page 1 City of Clearwater Pension Trustees Meeting Minutes June 14, 2021 Roll Call Present 5 - Chair Frank Hibbard, Trustee Hoyt Hamilton, Trustee David Allbritton, 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— Chair Hibbard The meeting was called to order at 9:17 a.m. 2. Approval of Minutes 2.1 Approve the April 12, 2021 Pension Trustees Meeting Minutes as submitted in written summation by the City Clerk. Trustee Hamilton moved to approve the April 12, 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 Accept the January 1, 2021 Annual Actuarial Valuation Report for the Employees' Pension Plan. Per the actuarial valuation report dated January 1, 2021, a minimum city employer contribution of$11.40 million, or 12.30% of covered payroll, is required for fiscal year 2022. This is a decrease of approximately $121 thousand over the fiscal 2021 required contribution of$11.52 million, which represented 12.72% of covered payroll. Page 2 City of Clearwater Pension Trustees Meeting Minutes June 14, 2021 The breakout of the required contribution by group is as follows: Police $ 4,681,293 21.84% Fire $ 3,230,263 18.68% Non-public safety $ 3,489,438 6.46% Total $11,400,994 12.30% The calendar year 2020 investment return was 15.12%, versus an assumed rate of 6.65% for 2020. The five-year smoothed actuarial investment rate of return was 11.10% versus the 6.65% assumption. Calendar 2016 through 2020 investment returns were 6.70%, 16.01%, (2.48%), 20.20%, and 15.12%, respectively. As previously approved by the Trustees, the assumed rate of return will reduce to 6.55% for 2021 and to 6.50% effective January 1, 2022. The plan experienced a net actuarial experience gain of$45.7 million for the year. The gain was primarily due to investment returns, slightly offset by net liability-related experience losses. The net liability-related experience losses included salary and mortality experience losses offset by retirement and disability experience gains. The plan's funded ratio at January 1, 2021 was 108.70% (including the credit balance) versus 102.60% for the prior year. The market value of assets exceeds the actuarial value of assets by $129.6 million as of January 1, 2021. The plan's credit balance, which reflects actual contributions in-excess of actuarially required contributions in prior years, increased from $28.96 million to $31.55 million during calendar 2020, primarily due to interest earned on the credit balance. This credit balance is available to subsidize volatile employer contribution requirements during future investment market downturns. In response to a question, Finance Director Jay Ravins said the investment return assumption is a projection of what the Plan will earn in the future. Trustee Beckman moved to accept the January 1, 2021 Annual Actuarial Valuation Report for the Employees' Pension Plan. The motion was duly seconded and carried unanimously. 4.2 Approve the new hires for acceptance into the Pension Plan as listed. Name/Job Classification/ Department Pension Eligibility Date Kristina Benton, Marine Facility Operator, Marine & Aviation 02/13/2021 Parker Moody, Police Officer, Police 03/01/2021 Robert Jessup, Police Officer, Police 03/01/2021 Dante Cuomo, Police Officer, Police 03/01/2021 Page 3 City of Clearwater Pension Trustees Meeting Minutes June 14, 2021 Luke Ohmer, Police Officer, Police 03/01/2021 Brian Rowell, Police Officer, Police 03/01/2021 Bobby Leahy, Stormwater Technician, Engineering /Stormwater 03/01/2021 Michael Cruz, Fleet Mechanic, General Services 03/01/2021 Kathryn Eaddy, Recreation Leader, Parks & Recreation 03/01/2021 Reed Harvin, Utilities Mechanic, Public Utilities 03/15/2021 Derek Terry, Stormwater Technician, Engineering /Stormwater 03/15/2021 Brandon Johnson, Solid Waste Worker, Solid Waste 03/15/2021 Quinton Tisdale, Recreation Leader, Parks & Recreation 03/15/2021 Cedric McAffee, Parks Service Technician, Parks & Recreation 03/29/2021 Conrad Cummings, Stormwater Tech., Engineering /Stormwater 03/29/2021 Christina Lawson, Utility Dispatcher, Gas 03/29/2021 Aleksander Thorstensen, Utility Dispatcher, Gas 03/29/2021 Javante Scott, Streets & Sidewalks Technician, Parks & Rec. 03/29/2021 Dexter Waters, Solid Waste Worker, Solid Waste 03/29/2021 Jalen Jamison, Meter Reader, Utility Customer Service 03/29/2021 Cassidy Bonovitch, Librarian, Library 03/29/2021 Joshua Engberg, Fire Medic, Fire 04/12/2021 Cody Garcia, Fire Medic, Fire 04/12/2021 Noah Kidd, Fire Medic, Fire 04/12/2021 Braden Martin, Fire Medic, Fire 04/12/2021 David Padilla, Fire Medic, Fire 04/12/2021 Scott Sims, Fire Medic, Fire 04/12/2021 Christopher Vital, Fire Medic, Fire 04/12/2021 John Zawojski, Fire Medic, Fire 04/12/2021 Timothy Palmese, Parks Service Technician, Parks & Recreation 04/12/2021 Michael Williams, Streets & Sidewalks Technician, Parks & Rec. 04/12/2021 Cathy Romeo, Development Review Technician, Planning & Dev. 04/12/2021 Nick Vojvodich, Planner, Planning & Development 04/12/2021 Jonathan Swinney, Development Review Tech., Planning & Dev. 04/12/2021 Jerry Hahn, WWTP Operator, Public Utilities 04/12/2021 Mary-Kaitlyn Arnette, WWTP Operator Trainee, Public Utilities 04/12/2021 Tammy Cummings, Executive Assistant, City Manager's Office 04/12/2021 Samuel Gaston, Police Cadet, Police 04/12/2021 Robert Merck, Police Cadet, Police 04/12/2021 Billy Hooten, Survey Assistant, Engineering 04/26/2021 Jason Goiran, Traffic, Signs & Marking Tech, Engineering/Traffic 04/26/2021 Caelon Booker, Parks Service Tech, Parks & Recreation 04/26/2021 Mackenzie Espinoza, Police Telecom municator, Police 04/26/2021 Monica Stevenson, Police Telecommunicator, Police 04/26/2021 Nicole Warder, Police Telecom municator, Police 04/26/2021 Clinton Harris, Police Telecom municator, Police 04/26/2021 Samuel Lorenczen, WWTP Op Trainee, Public Utilities 04/26/2021 Trustee Bunker moved to approve the new hires for acceptance into the Pension Plan as listed. The motion was duly seconded and carried unanimously. Page 4 City of Clearwater Pension Trustees Meeting Minutes June 14, 2021 4.3 Approve the following request of employees Larry Bruce, Parks and Recreation Department, James Frederick Jr, Police Department and Mary Beth Setter, Finance Department, to vest their pensions as provided by Section 2.419 of the Employees' Pension Plan. Larry Bruce, Parks Service Supervisor, Parks and Recreation Department, was employed by the City on January 22, 2007, and began participating in the Pension Plan on that date. Mr. Bruce terminated from City employment on March 12, 2021. James Frederick Jr, Police Officer, Police Department, was employed by the City on January 19, 2009, and began participating in the Pension Plan on that date. Mr. Frederick terminated from City employment on April 14, 2021. Mary Beth Setter, Accounting Manager, Finance Department, was employed by the City on August 31, 2009, and began participating in the Pension Plan on that date. Ms. Setter terminated from City employment on April 9, 2021. 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. Bruce will meet the non-hazardous duty criteria and begin collecting a pension in September 2023. Ms. Setter will meet the non-hazardous duty criteria and begin collecting a pension in December 2022. Section 2.416 provides for normal retirement eligibility for hazardous duty employees, a member shall be eligible for retirement following the earlier of the Page 5 City of Clearwater Pension Trustees Meeting Minutes June 14, 2021 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. Frederick will meet the hazardous duty criteria and begin collecting pension in February 2029. Trustee Hamilton moved to approve the following request of employees Larry Bruce, Parks and Recreation Department, James Frederick Jr., Police Department and Mary Beth Setter, Finance Department, to vest their pensions as provided by Section 2.419 of the Employees' Pension Plan. The motion was duly seconded and carried unanimously. 4.4 Approve the following request of employees James Charon, Public Utilities Department, Manuel Cordero, Parks and Recreation Department, Laura Damico, Utility Customer Service, Thomas Dawe, Police Department, Benjamin Hailey, Police Department, Richard Kelly, Police Department, Anthony Nellis, Solid Waste and Recycling, Willard Rodgers, Jr, Police Department, Judith Smith, Police Department, Laura Spelman, Police Department and William Valveri, Police Department for a regular pension as provided by Sections 2.416 and 2.424 of the Employees' Pension Plan. James Charon, Machinist/Fabricator, Public Utilities Department, was employed by the City on April 5, 1993, 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 $57,721.36 over the past five years, the formula for computing regular pensions and Mr. Charon's selection of the 10 Year Certain and Life Annuity, this pension benefit will be approximately $43,378.68 annually. Manuel Cordero, Skilled Tradesworker, Parks and Recreation Department, was employed by the City on March 10, 2001, 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 $36,969.50 over the past five years, the formula for computing regular pensions and Mr. Cordero's selection of the 75% Joint and Survivor Annuity, this pension benefit will be approximately $17,785.92 annually. Laura Damico, Senior Business System Analyst, Utility Customer Service Department, was employed by the City on March 25, 1998, and her pension service credit is effective on that date. Her pension will be effective October 1, 2021. Based on an average salary of approximately $76,534.28 over the past five years, the formula for computing regular pensions and Ms. Damico's selection of the Life Annuity, this pension benefit will be approximately $49,495.32 annually. Page 6 City of Clearwater Pension Trustees Meeting Minutes June 14, 2021 Thomas Dawe, Police Sergeant, Police Department, was employed by the City on March 15, 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 $105,917.68 over the past five years, the formula for computing regular pensions and Mr. Dawe's selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $63,471.84 annually. Benjamin Hailey, Police Sergeant, Police Department, was employed by the City on March 12, 2001, 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 $109,421.32 over the past five years, the formula for computing regular pensions and Mr. Hailey's selection of the 100% Joint and Survivor Annuity and a 30% partial lump sum, this pension benefit will be approximately $41,559.36 annually. Richard Kelly, Police Officer, Police Department, was employed by the City on July 21, 1997, 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 $86,244.24 over the past five years, the formula for computing regular pensions and Mr. Kelly's selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $52,882.68 annually. Anthony Nellis, Solid Waste Equipment Operator, Solid Waste and Recycling Department, was employed by the City on February 17, 1997, and his pension service credit is effective on that date. His pension will be effective October 1, 2021. Based on an average salary of approximately $41,935.83 over the past five years, the formula for computing regular pensions and Mr. Nellis' selection of the Life Annuity, this pension benefit will be approximately $28,395.24 annually. Willard Rodgers, Jr, Police Sergeant, Police Department, was employed by the City on May 22, 2000, 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 $106,618.21 over the past five years, the formula for computing regular pensions and Mr. Rodgers' selection of the Life Annuity, this pension benefit will be approximately $66,260.64 annually. Judy Smith, Police Social Services Specialist, Police Department, was employed by the City on September 14, 1987, and her pension service credit is effective on that date. Her pension will be effective May 1, 2021. Based on an average salary of approximately $67,470.87 over the past five years, the formula for computing regular pensions and Ms. Smith's selection of the Joint and Page 7 City of Clearwater Pension Trustees Meeting Minutes June 14, 2021 Survivor Annuity, this pension benefit will be approximately $62,394.60 annually. Laura Spelman, Police Lieutenant, Police Department, was employed by the City on May 31, 1994, and her pension service credit is effective on that date. Her pension will be effective April 1, 2021. Based on an average salary of approximately $120,358.39 over the past five years, the formula for computing regular pensions and Ms. Spelman's selection of the Life Annuity and a 20% partial lump sum, this pension benefit will be approximately $73,208.04 annually. William Valveri, Police Major, Police Department, was employed by the City on March 17, 1986, 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 $124,628.72 over the past five years, the formula for computing regular pensions and Mr. Valveri's selection of the Joint and Survivor Annuity and a 10% partial lump sum, this pension benefit will be approximately $108,045.36 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. Charon, Mr. Cordero, Ms. Damico, Mr. Nellis and Ms. Smith 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. Dawe, Mr. Hailey, Mr. Kelly, Mr. Rodgers, Ms. Spelman and Mr. Valveri have met the hazardous duty criteria. Trustee Allbritton moved to approve the following request of employees James Charon, Public Utilities Department, Manuel Page 8 City of Clearwater Pension Trustees 5. Adjourn Meeting Minutes June 14, 2021 Cordero, Parks and Recreation Department, Laura Damico, Utility Customer Service, Thomas Dawe, Police Department, Benjamin Hailey, Police Department, Richard Kelly, Police Department, Anthony Nellis, Solid Waste and Recycling, Willard Rodgers, Jr, Police Department, Judith Smith, Police Department, Laura Spelman, Police Department and William Valveri, Police 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. The meeting adjourned at 9:27 a.m. ,1,.J17 '.-1'/ Chair Employees' Pension Plan Trustees Page 9 City of Clearwater