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PENSION TRUSTEES AGENDA
Location: Council Chambers - City Hall
Date: 9/17/2007- 1 :30 PM
1. Call to Order
2. Approval of Minutes
2.1 Approve the minutes of the August 13, 2007 Pension Trustees meeting as submitted in written summation
by the City Clerk.
I@l Attachments
3. Pension Trustee Items
3.1 Employees listed below be accepted into membership in the City of Clearwater's Employees' Pension
PIan.
@) Attachments
3.2 Thomas B. Stein, Police Department and Robert E. Smyth, Police Department, be granted a regular
pension under Section(s) 2.393 and 2.397 of the Employees' Pension PIan as approved by the Pension
Advisory Committee.
@) Attachments
3.3 David Laatsch, Information Technology Department; Linda Byars, Economic Development Department;
William Kleinsorge, Finance Department; and Gregory Hewett, Public Utilities Department, be allowed to
vest their pensions under Section(s) 2.397 and 2.398 of the Employees' Pension PIan as approved by the
Pension Advisory Committee.
@) Attachments
4. Other Business
5. Adjourn
Meeting Date:9/17/2007
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve the minutes of the August 13, 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 6
TRUSTEES OF THE EMPLOYEES' PENSION FUND SPECIAL MEETING MINUTES
CITY OF CLEARWATER
August 13, 2007
Unapproved
Present:
Frank Hibbard
Carlen Petersen
John Doran
George N. Cretekos
Paul Gibson
Also Present:
William B. Horne, II
Garry Brumback
Pamela K. Akin
Stuart Kaufman
Joe Roseto
Cynthia E. Goudeau
Brenda Moses
The meeting was called to order at 4:00 p.
To provide continuity for research, it
necessarily discussed in that order.
2 - Approval of Minutes
Chair- arrived 4:14 p.m.
Trustee
Trustee
Trustee
Trustee
City Manager
Assistant City
City Attorney
Attorney for the P
Human Resour
City Clerk
Board
,2007, Pension Trustees
ity Clerk to each Trustee.
10 ees' Pension Plan
Hire Date
Pension
Elig.
Date
mmunication Operator/Police
ICS Technician/Public Utilities
Id Waste Worker/Solid Waste
Brian Whit d, Police Officer/Police
Douglas Ambrose, Police Officer/Police
Ronald Wichowski, WWTP Oper. Trainee/Public Utilities
Pension Trustees Special 2007-08-13
4/30/07
6/11/07
6/11/07
6/11/07
6/11/07
6/25/07
4/30/07
6/11/07
6/11/07
6/11/07
6/11/07
6/25/07
Item # 1
Attachment number 1
Page 2 of 6
Trustee Petersen 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.
3.2 Pension Investment Discussion and Direction
ufman review
dministration
'on as required
fiduciary duties,
suggested the Trustees
At the annual pension plan update to the Pension Trustees in May
expressed interest in discussing and providing direction to staff regard'
investments. The white paper outlines recommendations of the As
status with respect to the implementation of those recommendatio
Also provided in the white paper is performance information
investments, including the overall plan performance, performance by
performance by individual manager. The performance is given for thr
periods since that is the criteria that are used to judge a manager's
where the manager is new and not enough history exists for three- a fiv
performance, data for the last quarter and last year have b esented. T
managers that are new and no performance numbers All perfor
the Callan database of active money managers wit ing the be
being the worst.
Additional information is also included i
Current Advisors to the Pension Pia he p
terminate a manager; 5) Current enc rks;
mixes; 7) Allowable investme a trictions; 8) Ot
Investment Objectives and
d Periodic Table of Returns and said no
'rm supports diversifying investments.
D. Hyman, ., said the City has made progress with
nt Pension Plan investment allocations and said it is possible
ent by further diversifying investments.
anager Steve Moskun said over the past year, the Pension Plan
tely 15%. Some items recommended in the 2005 asset allocation
lished. The City still needs to add REITS (Real Estate Investment
bonds to its portfolio.
Trus e Petersen moved to continue implementing the asset allocation study. The
motion was duly seconded.
Pension Trustees Special 2007-08-13
2
Item # 1
Attachment number 1
Page 3 of 6
In response to a questions, Mr. Moskun said staff plans to implement investments in
REITs and emerging markets and then will request another asset allocation study. Mr. Troup
said professional money managers determine specific changes in types of allocations. He said
the standard for reviewing allocations is every three to five years.
Mr. Moskun estimated an asset allocation study costs between $15,000 t
depending upon the firm and amount of detail. A team of partners includin sta
Willoughby, and the PAC (Pension Advisory Committee) monitors inve ts
recommendations to the Trustees if asset allocations and/or studies ed.
to build classes of assets that will provide the best returns over tim
It was recommended that a certain level of proactive re-allo
Kaufman said most public pension plans do not participate in active
said Global Tactical Asset Allocation managers, which shift assets wo
and bonds, can be engaged as active managers. He said a combi
domestic stocks would be less volatile in those classes. It will take t
establish asset allocation goals.
Upon the vote being taken, the motion car
Member Doran moved to continue the 1
conduct a search for a REITS manage a co
Trustees Petersen, Doran, Creteko ibs
Motion carried.
markets and hire an
et search by Dahab.
question, Finance Director Margie Simmons said
et allocation study, recommended an 8%
id by law, only 25% of the City's portfolio can
to approve investing up to 10% of the portfolio in high yield
agers to manage this asset class. The motion was duly
nsued. Mr. Moskun said the professional managers have recommended
e portfolio in high-yield bonds, as it is worth the risk. Staff indicated to them
Invest up to 10% in high-yield bonds.
Upon the vote being taken, the motion carried unanimously.
Pension Trustees Special 2007-08-13
3
Item # 1
Attachment number 1
Page 4 of 6
Trustee Doran moved to continue current benchmarks and retain Northern Trust to
expedite manager terminations. The motion was duly seconded and carried unanimously.
Trustee Cretekos moved to continue with investing 30% in fixed-income as
recommended by the Asset Allocation Study. The motion was duly seconded and carried
unanimously.
It was suggested the Pension Investment Committee consider'
Limited Partnerships).
Staff requested that the Pension Trustees schedule a half-
John Correll, Wastewater Treatment Plant 0
employed by the City on October 26, 1987, and hi
date. His pension will be effective November 1,
approximately $46,809 per year over the past f
pensions, and Mr. Correll's selection 0 10
approximate $25,243 annually.
Ices
n service credit is
ased on an average
rmula for computing
ife Annuity, this pension
ineering Department, was employed by the City
edit is effective on that date. His pension will
ased on a rage salary of approximately $44,873 per year
la for computing regular pensions, and Mr. Bilal's selection of
, this pension will approximate $33,474 annually.
geant, Police Department, was employed by the City on May 16,
credit is effective on that date. His pension will be effective July
ge salary of approximately $82,014 per year over the past five
mputing regular pensions, and Mr. Wentz' selection of the 100% Joint &
pension will approximate $53,662 annually.
Tim y Treble, Police Officer, Police Department, was employed by the City on
February 17,1987, and his pension service credit is effective on June 30,1987. His pension
will be effective July 1,2007. Based on an average salary of approximately $62,726 per year
Pension Trustees Special 2007-08-13
4
Item # 1
Attachment number 1
Page 5 of 6
over the past five years, the formula for computing regular pensions, and Mr. Treble's selection
of the Life Annuity, this pension will approximate $35,642 annually.
These pensions were approved by the Pension Advisory Committee on July 12, 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 cre ited service,
or has reached age 65 and completed ten years of credited service. Section 2.3 Iso
provides for normal retirement eligibility when a participant has comple en of
credited service or has reached age 55 and completed ten years of erv
employment described as "hazardous duty" and further defines se a Police
and Police Officer as meeting the hazardous duty criteria. Messrs. II and B'
under the age 55 and twenty years of service criteria. Mr. Pulfer qu n
and twenty years of service and the age 65 and 10 years of service c
Treble qualify under the hazardous duty criteria.
Services Department,
in the Pension Plan on
7.
isor II, Public Utilities Department, was employed
participating in the Pension Plan on that date.
June 19,2007.
Fire Medic, re Department, was employed by the City on
ating in the Pension Plan on that date. Ms. Haywood Thomas
on March 25, 2007.
n Plan provides that should an employee cease to be an
ater after completing ten or more years of creditable service
ch employee shall acquire a vested interest in the retirement benefits.
ents commence on the first of the month following the month in which the
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. Section
2.393 (p) also provides for normal retirement eligibility when a participant has completed twenty
Pension Trustees Special 2007-08-13
5
Item # 1
Attachment number 1
Page 6 of 6
years of credited service in a type of employment described as "hazardous duty" and further
specifically defines service as a Fire Medic as meeting the hazardous duty criteria. Mr. Nardin
would have completed at least 20 years of service and reached age 55 on August 26,2018. His
pension will be effective September 1, 2018. Mr. Slattery would have completed at least 20
years of service and reached age 55 on February 3, 2015. His pension will be effective March
1,2015. Ms. Haywood would have completed 20 years of hazardous duty servic on May 28,
2016. Her pension will be effective June 1, 2016. These pensions were a prov the
Pension Advisory Committee on July 12, 2007.
Trustee Gibson moved that David Nardin, Development an
Department; Kevin Slattery, Public Utilities Department; and Roby
Department, be allowed to vest their pensions under Section(s) 2.3
Employees' Pension Plan as approved by the Pension Advisory Com
duly seconded and carried unanimously.
4 - Other Business - None.
5 - Adjourn
The meeting adjourned at 5:13 p.m.
Attest:
Pension Trustees Special 2007-08-13
6
Item # 1
Meeting Date:9/17/2007
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Employees listed below be accepted into membership in the City of Clearwater's Employees' Pension Plan.
SUMMARY:
Name, Job Class, & Department/Division
Hire Date
Pension
Elig.
Date
Joel Ojeda, WWTP Operator Trainee/Pub. Util.
Michael Gitchell, Gas Technician I/Gas
Bradley Webster, Police Officer/Police
7/9/07
7/23/07
6/11107
7/9/07
7/23/07
6/11107
Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) Clerk 6) Clerk
Cover Memo
Item # 2
Meeting Date:9/17/2007
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Thomas B. Stein, Police Department and Robert E. Smyth, Police Department, be granted a regular pension under Section(s) 2.393 and
2.397 of the Employees' Pension Plan as approved by the Pension Advisory Committee.
SUMMARY:
Thomas Stein, Police Officer, Police Department, was employed by the City on December 8, 1986, and his pension service credit is
effective on that date. His pension will be effective September 1,2007.
Based on an average salary of approximately $62,608 per year over the past five years, the formula for computing regular pensions, and
Mr. Stein's selection of the 50% Joint & Survivor Annuity, this pension will approximate $36,235 annually.
Robert Smyth, Police Officer, Police Department, was employed by the City on May 11, 1987, and his pension service credit is
effective on that date. His pension will be effective September 1,2007.
Based on an average salary of approximately $70,585 per year over the past five years, the formula for computing regular pensions, and
Mr. Smyth's selection of the 10- Year Certain & Life Annuity, this pension will approximate $41,703 annually.
These pensions were approved by the Pension Advisory Committee on August 9,2007. Section 2.393 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. Stein and Mr. Smyth qualify under the hazardous duty criteria.
Review Approval: 1) Clerk
Cover Memo
Item # 3
Meeting Date:9/17/2007
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
David Laatsch, Information Technology Department; Linda Byars, Economic Development Department; William Kleinsorge, Finance
Department; and Gregory Hewett, Public Utilities Department, be allowed to vest their pensions under Section(s) 2.397 and 2.398 of the
Employees' Pension Plan as approved by the Pension Advisory Committee.
SUMMARY:
David Laatsch, Systems & Programming Manager, Information Technology Department, was employed by the City on June 23,
1997, and began participating in the Pension Plan on that date. Mr. Laatsch terminated from City employment on July 20, 2007.
Linda Byars, Economic Development Coordinator, Economic Development Department, was employed by the City on January 23,
1995, and began participating in the Pension Plan on that date. Ms. Byars terminated from City employment on July 12,2007.
William Kleinsorge, Controller, Finance Department, was employed by the City on January 5, 1987, and began participating in the
Pension Plan on that date. Mr. Kleinsorge terminated from City employment on July 20, 2007.
Gregory Hewett, Public Utilities Supervisor I, Public Utilities Department, was employed by the City on April 27, 1987, and began
participating in the Pension Plan on that date. Mr. Hewett terminated from City employment on August 1,2007.
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.
Laatsch would have completed at least 20 years of service and reached age 55 on May 29, 2017. His pension will be effective June 1,
2017. Ms. Byars would have completed at least 10 years of service and reached age 65 on June 19,2012. Her pension will be effective
July 1,2012. Mr. Kleinsorge would have completed 30 years of service on January 5, 2017. His pension will be effective February 1,
2017. Mr. Hewett would have completed at least 20 years of service and reached age 55 on December 25,2015. His pension will be
effective January 1,2016. These pensions were approved by the Pension Advisory Committee on August 9,2007.
Review Approval: 1) Clerk
Cover Memo
Item # 4