05/16/2022 Pension Trustees Meeting Minutes May 16, 2022
City of Clearwater
Main Library- Council Chambers
100 N. Osceola Avenue
Clearwater, FL 33755
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Meeting Minutes
Monday, May 16, 2022
9:00 AM
Main Library - Council Chambers
Pension Trustees
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City of Clearwater
Pension Trustees Meeting Minutes May 16, 2022
Roll Call
Present 5 - Chair Frank Hibbard, Trustee Kathleen Beckman, Trustee Mark Bunker,
Trustee David Allbritton, and Trustee Lina Teixeira
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
The meeting was called to order at 9:00 a.m.
2. Approval of Minutes
2.1 Approve the minutes of the February 14, 2022 Pension Trustees meeting as submitted in
written in summation by the City Clerk.
Trustee Allbritton moved to approve the minutes of the February 14,
2022 Pension Trustees meeting as submitted in written in
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.
Last Name/First Name/Job Classification/Department Pension Eligibility
Date
KINDRED, CHARLES, CUSTODIAL WORKER, POLICE DEPARTMENT 01/03/2022
JOHNSON, CHRISTOPHER, TRAFFIC SIGNAL TECH, ENGINEERING 01/31/2022
CAPONE, MATTHEW, POLICE OFFICER, POLICE DEPARTMENT 01/03/2022
MCCALLUM, BENJAMIN, POLICE OFFICER, POLICE DEPARTMENT 01/03/2022
MENGERINK, ADAM, POLICE OFFICER, POLICE DEPARTMENT 01/03/2022
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City of Clearwater
Pension Trustees Meeting Minutes May 16, 2022
NEGRON, SAMANTHA, POLICE OFFICER, POLICE DEPARTMENT 01/03/2022
NEIGHLY, KATHERN, SR ACCOUNTANT, SOLID WASTE & RECYCLING 01/03/2022
PINSKER, KRISTEN, POLICE OFFICER, POLICE DEPARTMENT 01/03/2022
ROBINSON, ALICIA, DEVELOPMENT REVIEW TECHNICIAN, PLANNING & DEV 01/03/2022
STYLES, LAUREN, POLICE OFFICER, POLICE DEPARTMENT 01/03/2022
KINDRED, CHARLES, CUSTODIAL WORKER, POLICE DEPARTMENT 01/03/2022
TAGGART, STEVEN, WSTWTR TRTMNT PLANT OPER TRN, PUBLIC UTILITIES 01/03/2022
PRINS, DYLAN, PLANNER, PLANNING & DEVELOPMENT 01/10/2022
JOHNSON, BRANDY, CUSTOMER SERVICE REP, UTILITY COST. SERVICE 01/18/2022
BIONDO VITO, METER READER, UTILITY CUSTOMER SERVICE 01/18/2022
SIVANISH, LELAND, SR ACCOUNTANT, ENGR STORMWATER 01/18/2022
BLAUVELT, SHAWNA, CONTRACTS & PROCUREMENT SPEC, ENGINEERING 01/18/2022
WINGFIELD, RYAN, PARKING ENFORCEMENT SPEC, ENGR PARKING 01/18/2022
NINA, JOEL, POLICE CADET, POLICE DEPARTMENT 01/15/2022
PERRY MICHELE, POLICE CADET, POLICE DEPARTMENT 01/15/2022
MITCHELL, JONATHAN, POLICE CADET, POLICE DEPARTMENT 01/15/2022
GREEN MARQUEZ, SOLID WASTE WORKER, SOLID WASTE & RECYCLING 01/31/2022
HARRIS BROOKE, SR SYSTEMS PROGRAMMER, INFORMATION TECH. 01/31/2022
MANNOSSOS, TARA, UTILITY DISPATCHER, GAS SYSTEM 01/31/2022
REICH OWEN POLICE CADET POLICE DEPARTMENT 01/15/2022
WOJCIECHOWSKA, BARBARA, ACCOUNTING TECH.PUBLIC UTLILITIES 01/15/2022
COTHRAN, SAUL, PARKING ENFORCEMENT SPECIALIST, ENGR PARKING 01/15/2022
BUTLER ALEXIS, CUSTOMER SERVICE REP, UTILITY CUSTOMER SERVICE 02/14/2022
BURGETT, JENNIFER, STAFF ASSISTANT, ENGINEERING/STORMWATER 02/14/2022
HOPKINSON, KARRI, GAS TECH APPRENTICE, GAS 02/14/2022
OLSON, TYLER, PARKS SERVICE TECHNICIAN, PARKS & RECREATIONO 2/14/2022
POTTER, JORDAN, CRIME ANALYST, POLICE 02/14/2022
CHADWICK, EVAN, CRIME ANALYST, POLICE 02/14/2022
KLEIN, JANICE, CRIME ANALYST POLICE 02/14/2022
RICE, LLOYD, RECREATION LEADER, PARKS & RECREATION 02/14/2022
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 John Allen, Public Utilities Department,
Benjamin Coccia, Planning and Development Department, Stephen Colbert, Fire
Department, Patrick Conrey, Fire Department, Gerard Devivo, Fire Department, Eric
Gandy, Police Department, Judith Lacosse, Official Records and Legislative Department,
David Larremore, Engineering Department, Charles Jeffries, Public Utilities Department,
Lance Kielich, General Service Department, Denis O'Connor, Fire Department, and Levi
Outley, Parks and Recreation Department for a regular pension as provided by Sections
2.416 and 2.424 of the Employees' Pension Plan.
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City of Clearwater
Pension Trustees Meeting Minutes May 16, 2022
John Allen, Water Distribution Operator, Public Utilities Department, was
employed by the City on September 23,1985, and his pension service credit is
effective on that date. His pension will be effective March 1, 2022. Based on an
average salary of approximately $65,716.79 over the past five years, the formula
for computing regular pensions and Mr. Allen's selection of the Joint and
Survivor Annuity, this pension benefit will be approximately $65,716.80 annually.
Benjamin Coccia, Senior Plans Examiner, Planning and Development
Department, was employed by the City on July 8, 1996, and his pension service
credit is effective on that date. His pension will be effective August 1, 2022.
Based on an average salary of approximately $72,096.64 over the past five
years, the formula for computing regular pensions and Mr. Coccia's selection of
the Single Life Annuity, this pension benefit will be approximately $51,670.20
annually.
Stephen Colbert, Fire Medic, Fire Department, was employed by the City on
December 12, 1994, 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 $93,228.62 over the past five years, the formula for computing
regular pensions and Mr. Colbert's selection of the 100% Joint and Survivor
Annuity with a 30% partial lump sum, this pension benefit will be approximately
$47,594.40 annually.
Patrick Conrey, Fire Lieutenant, Fire Department, was employed by the City on
October 16, 2000, 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 $108,351.24 over the past five years, the formula for computing
regular pensions and Mr. Conrey's selection of the 100% Joint and Survivor
Annuity with a 30% partial lump sum, this pension benefit will be approximately
$43,578.96 annually.
Gerard Devivo, Fire Medic, Fire Department, was employed by the City on
October 4, 1999, and his pension service credit is effective on that date. His
pension will be effective March 1, 2022. Based on an average salary of
approximately $88,194.30 over the past five years, the formula for computing
regular pensions and Mr. Devivo's selection of the Single Life Annuity, this
pension benefit will be approximately $57,722.80 annually.
Eric Gandy, Police Deputy Chief, Police Department, was employed by the City
on July 29, 1991, and his pension service credit is effective on that date. His
pension will be effective March 1, 2022. Based on an average salary of
approximately $135,982.88 over the past five years, the formula for computing
regular pensions and Mr. Gandy's selection of the 100% Joint and Survivor
Annuity, this pension benefit will be approximately $111,732.48 annually.
Judith Lacosse, Staff Assistant, Official Records and Legislative Department,
was employed by the City on February 10, 2003, and her pension service credit
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City of Clearwater
Pension Trustees Meeting Minutes May 16, 2022
is effective on that date. Her pension will be effective April 1, 2022. Based on an
average salary of approximately $36,097.06 over the past five years, the formula
for computing regular pensions and Ms. Lacosse's selection of the Single Life
Annuity, this pension benefit will be approximately $18,928.64 annually.
David Larremore, Traffic Engineering Analyst, Engineering Department, was
employed by the City on March 30, 1998, and his pension service credit is
effective on that date. His pension will be effective November 1, 2022. Based
on an average salary of approximately $66,325.00 over the past five years, the
formula for computing regular pensions and Mr. Larremore's selection of the
Single Life Annuity, this pension benefit will be approximately $44, 762.52
annually.
Charles Jeffries, Water Distribution Operator Lead, Public Utilities Department,
was employed by the City on January 14, 1991, 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 $54,564.65 over the past five years, the
formula for computing regular pensions and Mr. Jeffries' selection of the 50%
Joint and Survivor Annuity, this pension benefit will be approximately $43,538.88
annually.
Lance Kielich, Fleet Operations Trainer, General Services Department, was
employed by the City on February 11, 2002, and his pension service credit is
effective on June 14, 2002. His pension will be effective February 1, 2022.
Based on an average salary of approximately $47,665.73 over the past five
years, the formula for computing regular pensions and Mr. Kielich selection of
the Single Life Annuity, this pension benefit will be approximately $25,731.84
annually.
Denis O'Connor, Firefighter, Fire Department, was employed by the City on
September 24, 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 $78,118.20 over the past five years, the formula for computing
regular pensions and Mr. O'Connor's selection of the 100% Joint and Survivor
Annuity with a 30% partial lump sum, this pension benefit will be approximately
$29,849.40 annually.
Levi Outley, Senior Parks Service Technician, Parks and Recreation
Department, was employed by the City on September 15, 1997, and his
pension service credit is effective on that date. His pension will be effective
April 1, 2022. Based on an average salary of approximately $40,426.18 over the
past five years, the formula for computing regular pensions and Mr. Outley's
selection of the Single Life Annuity this pension benefit will be approximately
$25,910.64 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
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City of Clearwater
Pension Trustees Meeting Minutes May 16, 2022
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. Allen, Mr. Coccia, Ms. Lacosse, Mr. Larremore, Mr. Jeffries, Mr. Kielich, and
Mr. Outley
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. Colbert, Mr. Conrey, Mr.
Devivo, Mr. Gandy, and Mr. O'Connor
Trustee Bunker moved to approve the following request of
employees John Allen, Public Utilities Department, Benjamin
Coccia, Planning and Development Department, Stephen Colbert,
Fire Department, Patrick Conrey, Fire Department, Gerard Devivo,
Fire Department, Eric Gandy, Police Department, Judith Lacosse,
Official Records and Legislative Department, David Larremore,
Engineering Department, Charles Jeffries, Public Utilities
Department, Lance Kielich, General Service Department, Denis
O'Connor, Fire Department, and Levi Outley, Parks 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, 2022 Annual Actuarial Valuation for the Employees' Pension Plan.
Per the actuarial valuation report dated January 1, 2022, a minimum city
employer contribution of$11.70 million, or 12.44% of covered payroll, is required
for fiscal year 2023. This is an increase of approximately $298 thousand over
the fiscal 2022 required contribution of$11.40 million, which represented
12.30% of covered payroll.
The breakout of the required contribution by group is as follows:
Police $ 4,776,753 22.27%
Fire $ 3,380,615 18.97%
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Non-Hazardous $ 3,541,249 6.46%
Total $11,698,617 12.44%
The calendar year 2021 investment return was 12.90%, versus an assumed
rate of 6.55%. The five-year "smoothed" actuarial investment rate of return was
12.46% versus the 6.55% assumption. Calendar 2017 through 2021 investment
returns were 16.01%, (-2.48%), 20.20%, 15.12%, and 12.90%, respectively. As
previously approved by the Trustees, the assumed rate of return will reduce to
6.50% effective January 1, 2022.
The plan experienced a net actuarial experience gain of$65.5 million for the
year. The gain was primarily due to investment returns in excess of the
assumption, with some additional very minor net liability-related gains. The
plan's funded ratio on January 1, 2022 was 114.57% (including the credit
balance) versus 108.70% for the prior year. The market value of assets
exceeds the actuarial value of assets by $151.1 million as of January 1, 2022.
The plan's credit balance, which reflects actual contributions in-excess of
actuarially required contributions in prior years, increased from $31.55 million to
$33.82 million during calendar 2021, 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.
Gabriel Roeder Smith Actuary Pete Strong reviewed the report. He said the
pension plan is in the best condition in the state and has a healthy credit
balance. The City's ordinance requires a 7% minimum contribution, allowing a
credit balance to build up.
In response to a question, Mr. Strong said it is recommended to keep
lowering the 6.5% return assumption because the capital market forecast
estimates, for the next 15-year horizon, have lowered to 6% for similar
portfolios.
Trustee Teixeira moved to accept the January 1, 2022 Annual
Actuarial Valuation for the Employees' Pension Plan. The motion
was duly seconded and carried unanimously.
4.4 Annual review of the Employees' Pension Plan investment performance for the calendar
and plan year ended December 31, 2021.
Annually a presentation of the Plan's calendar year investment performance is
made to the Trustees. For calendar 2021, the Plan realized an investment
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City of Clearwater
Pension Trustees Meeting Minutes May 16, 2022
return of 13.33%, versus a customized benchmark of 14.09%, placing the plan
in the 76th 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
16.36%, versus a benchmark of 12.21%, placing the plan in the 43rd percentile
of public plans.
The investment committee, with the assistance of the Plan's investment
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, Captrust representative Mike Lalone said the City's
fee is approximately$120,000. Captrust is more bullish than Vanguard and
anticipates 5-6% returns in the next five years. Generally, for most asset
classes the company prefers more active indexing. Captrust works
primarily with private real estate versus the REITS**, which are
publicly traded and volatile. The City's allocation is correct, it is
conservative. Anything outside of stocks and bonds are considered
alternatives.
Trustee Allbritton moved to approve the annual review of the
Employees' Pension Plan investment performance for the calendar
and plan year ended December 31, 2021. The motion was duly
seconded and carried unanimously.
4.5 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 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 6.5%, net of investment-related fees, as the expected annual rate of return for
the current year; 6.5% for the next year; and 6.5% for all years thereafter.
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City of Clearwater
Pension Trustees
5. Adjourn
Attest
City of Clearwater
Meeting Minutes May 16, 2022
In response to questions, Finance Director Jay Ravins said the
investment returns are currently down 13-14% year to date. The return will
have to significantly rebound to hit the 6% assumption by end of the
current calendar year. He said, given the current state, it might make
more sense to have a more conservative return. GRS Actuary Pete
Strong said the State of Florida likes to see a match between the City's
assumptions and expectations but the long-term number needs to tie to
the valuation report. He said a lower assumption rate will be fine for the
current year but the mid and long-term assumptions need to match the
valuation report.
Trustee Beckman moved to determine a 0% expected rate of return
for pension plan investments for current year and 6.5% for the
next year and 6.5% for all years thereafter, in accordance with
Florida Statutes 112.661(9). The motion was duly seconded and
carried unanimously.
The meeting adjourned at 9:37 a.m.
1,-P v 74#42A4er
Chair
Employees' Pension Plan Trustees
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