Loading...
12/13/2021 Pension Trustees Meeting Minutes December 13, 2021 City of Clearwater Main Library- Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 m Meeting Minutes Monday, December 13, 2021 9:00 AM Main Library - Council Chambers Pension Trustees Page 1 City of Clearwater Pension Trustees Meeting Minutes December 13, 2021 Roll Call Present 5 - Chair Frank Hibbard, Trustee Hoyt Hamilton, Trustee David Allbritton, Trustee Kathleen Beckman, and Trustee Mark Bunker Also Present—Jon Jennings—City Manager, Micah Maxwell — Assistant City Manager, Michael Delk — Assistant City Manager, David Margolis - City Attorney, Rosemarie Call — City Clerk, Nicole Sprague — Deputy City Clerk, 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 9:00 a.m. 2. Approval of Minutes 2.1 Approve the October 18, 2021 Pension Trustees Meeting Minutes as submitted in written summation by the City Clerk. Trustee Hamilton moved to approve the October 18, 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 Award a contract for pension plan actuarial services for the five-year period ending December 31, 2026 to Gabriel, Roeder, Smith and Company for a not-to-exceed total of $284,950 and authorize the appropriate officials to execute same. Annually the pension plan requires an actuarial valuation of the plan to determine the City's funding contribution, as well as annual benefit statements to be provided to all employees participating in the plan. In addition, a separate actuarial valuation is required annually for financial reporting per Governmental Accounting Standards Board (GASB) requirements. The State of Florida also requires separate annual reporting from the actuary per Chapter 112.664 Florida Statutes. Finally, the pension plan ordinance requires an actuarial Page 2 City of Clearwater Pension Trustees Meeting Minutes December 13, 2021 "experience study" at least every six years, analyzing the mortality, service, and compensation experience to determine whether related actuarial assumptions require adjustment. Request for Proposals (RFP) 47-21 was issued in August 2021, with proposals received in September. The RFP selection committee consisting of the HR Director, HR Assistant Director, Finance Director, Finance Assistant Director, and Senior Pension Payroll Analyst unanimously chose Gabriel, Roeder, Smith & Company (GRS) from the eight respondents for pension plan actuarial services. GRS has been the actuary for the pension plan since January 2010. The annual fee for the actuarial valuation for funding purposes, along with employee benefit statements, will be $29,500. The annual fee for the actuarial valuation for financial reporting purposes, per GASB, is $5,900. The fee for annual reporting required per Chapter 112.664 Florida Statutes will be $3,750. Finally, the experience study fee is $24,000. Subsequent fees will be adjusted annually for inflation, not to exceed 3% in any year. As needed, additional services will be provided per various hourly rates provided in the agreement fee schedule, to be adjusted annually. APPROPRIATION CODE AND AMOUNT: Funds are available in cost code 6467410-530100, Professional Services, to fund this contract. In response to a question, Finance Director Jay Ravins said actuarial services for the old fire pension plan were retained for one year on an emergency basis due to the loss of the actuary. Staff will be seeking quotes to competitively secure services for the long run. Trustee Allbritton moved to award a contract for pension plan actuarial services for the five-year period ending December 31, 2026 to Gabriel, Roeder, Smith and Company for a not-to-exceed total of$284,950 and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.2 Approve the termination of large cap growth equity money manager Voya Investment Management and authorize the appropriate officials to execute same. Voya was hired as a large cap growth equity manager for the plan in December 1987. As of September 30, 2021, the market value of the plan's investment in Page 3 City of Clearwater Pension Trustees Meeting Minutes December 13, 2021 Voya's large cap growth equity product totaled $10.5 million, or 0.79% of the Plan's total investment portfolio. Voya's performance has declined in recent years, as detailed below. The Pension Investment Committee unanimously recommends termination at this time. The monies will be moved to the Northern Trust Collective Russell 1000 Growth Index fund. Percentile As of 9/30/2021 Voya Ranking Benchmark Last 3 years 18.97% 72nd 22.00% Last 5 years 20.29% 55th 22.84% Last 10 years 18.64% 51 st 19.68% Trustee Beckman moved to approve the termination of large cap growth equity money manager Voya Investment Management and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.3 Approve the new hires for acceptance into the Pension Plan as listed. Name/Job Classification/Department Pension Eligibility Date Frank Berlingis, Police Records Specialist, Police 9/10/2021 Jennifer Partee, Senior Staff Assistant, Planning & Development 9/10/2021 Julie Baron, Customer Service Trainer, Customer Service 9/10/2021 Kayla Parker, Police Telecommunicator, Police 9/10/2021 Kevin Drielts, Police Records Specialist, Police 9/10/2021 Matthew Gresh, Multi-Media Specialist, Public Communications 9/10/2021 Peter Papjes, Skilled Tradesworker, General Services 9/10/2021 Rebecca Mulder, Code Enforcement Inspector, Planning & Development 9/10/2021 Victor Gaeta, Customer Service Representative, Customer Service 9/10/2021 William Young, Police Telecommunicator, Police 9/10/2021 Azeen Sarkhosh,Police Officer, Police 9/27/2021 Christian Rodriguez, Police Officer, Police 9/27/2021 Christopher Castro, Gas Technician Apprentice, Gas 9/27/2021 Cole Klein, Police Officer, Police 9/27/2021 Cordez Gatheright, Solid Waste Equipment Operator, Solid Waste 9/27/2021 Damian Rios, Police Cadet-Attending Academy, Police 9/27/2021 Daniel Bieber, Police Officer, Police 9/27/2021 James Goldener, Parking, Facility& Security Aid, Engineering/Parking 9/27/2021 Page 4 City of Clearwater Pension Trustees Meeting Minutes December 13, 2021 Jonathan Vangeli, Police Officer, Police 9/27/2021 Joseph Beebe, Skilled Tradesworker, General Services 9/27/2021 Keister Crenshaw, Parks Service Technician, Parks & Recreation 9/27/2021 Malcolm Holmes, Parks Service Technician, Parks & Recreation 9/27/2021 Matthew Bremis, Police Officer, Police 9/27/2021 Michelle Holzhauer, Parking Citation Assistant, Engineering/Parking 9/27/2021 Roxanna Sever, Development Review Technician, Planning & Dev. 9/27/2021 Santana Miller, Parks Service Technician, Parks & Recreation 9/27/2021 Shawn Manspeaker, Parking, Facility&Security Aid, Library 9/27/2021 Tyler Dejong, Survey Assistant, Engineering 9/27/2021 Eric Kelly, Water Distribution Operator Lead, Public Utilities 10/11/2021 Greg McCullough, Senior Auditor, Audit 10/11/2021 Jeffery Elliott, Fleet Mechanic, General Services 10/11/2021 Josh Francis, Parks Service Foreman, Parks & Recreation 10/11/2021 Keith Robertson, Parks Service Technician, Parks & Recreation 10/11/2021 Keona Daniels, Parks Service Technician, Parks & Recreation 10/11/2021 Lisa Diamond, Recreation Coordinator, Parks & Recreation 10/11/2021 Matthew Farkosh, Parks Service Technician, Parks & Recreation 10/11/2021 Michael Jackson, Parks Service Technician, Parks & Recreation 10/11/2021 Trustee Bunker moved to approve the new hires for acceptance into the Pension Plan as listed. The motion was duly seconded and carried unanimously. 4.4 Approve the following request of employee Valerie Craig, Finance Department, to vest her pension as provided by Section 2.419 of the Employees' Pension Plan. Valerie Craig, Senior Procurement Analyst, Finance Department, was employed by the City on December 20, 2010 and began participating in the Pension Plan on August 1, 2011. Ms. Craig terminated from city employment on October 8, 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 Page 5 City of Clearwater Pension Trustees Meeting Minutes December 13, 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. Craig will meet the non-hazardous duty criteria and begin collecting a pension in December 2039. 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. Trustee Hamilton moved to approve the following request of employee Valerie Craig, Finance Department, to vest her pension as provided by Section 2.419 of the Employees' Pension Plan. The motion was duly seconded and carried unanimously. 4.5 Approve the following request of Douglas Alvarez, Parks and Recreation Department, Leonard Aragones, Parks and Recreation Department, and Robert Strieder, Public Utilities Department for a regular pension as provided by Sections 2.416 and 2.424 of the Employees' Pension Plan. Douglas Alvarez, Parks Service Foreman, Parks and Recreation Department, was employed by the City on August 13, 2001, and his pension service credit is effective on that date. His pension will be effective February 1, 2022. Based on an average salary of approximately $47,464.16 over the past five years, the formula for computing regular pensions and Mr. Alvarez's selection of the 10 Year Certain and Life Annuity, this pension benefit will be approximately $26,323.68 annually. Leonard Aragones, Senior Parks Service Tech, Parks and Recreation Department, was employed by the City on November 8, 2010, and his pension service credit is effective on that date. His pension will be effective January 1, 2022. Based on an average salary of approximately $38,557.76 over the past five years, the formula for computing regular pensions and Mr. Aragones' selection of the Single Life Annuity, this pension benefit will be approximately $11,819.76 annually. Robert Strieder, Wastewater Treatment Plant Operator A, Public Utilities Page 6 City of Clearwater Pension Trustees 5. Adjourn Attest -�>t1 tL City Clerk City of Clearwater Meeting Minutes December 13, 2021 Department, was employed by the City on December 8, 1997, and his pension service credit is effective on June 8, 1998. His pension will be effective January 1, 2022. Based on an average salary of approximately $52,848.92 over the past five years, the formula for computing regular pensions and Mr. Strieder's selection of the Single Life Annuity, this pension benefit will be approximately $34,246.44 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 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. Alvarez, Mr. Aragones and Mr. Strieder have met the non -hazardous duty criteria. Trustee Allbritton moved to approve the following request of Douglas Alvarez, Parks and Recreation Department, Leonard Aragones, Parks and Recreation Department, and Robert Strieder, Public Utilities 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 9:05 a.m. Employees' Pension Plan Trustees Page 7