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06/17/2024 Pension Trustees Meeting Minutes June 17, 2024 City of Clearwater Main Library- Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 m ap ® e Meeting Minutes Monday, June 17, 2024 1 :00 PM Main Library - Council Chambers Pension Trustees Page 1 City of Clearwater Pension Trustees Meeting Minutes June 17, 2024 Roll Call Present 5 - Chair Bruce Rector, Trustee Ryan Cotton, Trustee Michael Mannino, Trustee David Allbritton, and Trustee Lina Teixeira Also Present—Jennifer Poirrier—City Manager, Michael Delk — Assistant City Manager, David Margolis - City Attorney, Rosemarie Call — City Clerk, Nicole Sprague — Deputy City Clerk, and Tiffany Makras — 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 Rector The meeting was called to order at 2:10 p.m. 2. Approval of Minutes 2.1 Approve the minutes of the April 15, 2024 Pension Trustees meeting as submitted in written summation by the City Clerk. Trustee Cotton moved to approve the minutes of the April 15, 2024 Pension Trustees meeting 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, 2024 Annual Actuarial Valuation for the Employees' Pension Plan. Per the actuarial valuation report dated January 1, 2024, a minimum City employer contribution of$16.23 million, or 14.42% of covered payroll, is required for fiscal year 2025. This is an increase of approximately $2.69 million over the fiscal 2024 required contribution of$13.54 million, which represented 13.40% of covered payroll. The breakout of the required contribution by group is as follows: Page 1 City of Clearwater Pension Trustees Meeting Minutes June 17, 2024 Police $ 5,127,235 21.45% of covered payroll Fire $ 4,835,565 23.85% of covered payroll Non-public safety $ 6,269,945 9.16% of covered payroll Total $16,232,74514.42% of covered payroll The calendar year 2023 investment return was 13.72%, versus an assumed rate of 6.50%. The five-year smoothed actuarial investment rate of return was 7.56% versus the 6.50% assumption. Calendar 2019 through 2023 investment returns were 20.20%, 15.12%, 12.90%, (-14.02%) and 13.72%, respectively. The increase in the required employer contribution is partially due to the recently completed 5-year experience study and related changes to actuarial assumptions that were adopted for this actuarial valuation. In the aggregate the assumption changes increased the required contribution by approximately $1.6 million. The plan experienced a net actuarial experience loss of$3.9 million for the year. The loss was primarily due to salary increases of 8.42% versus an expected increase of 4.39%; as well as mortality experience loss. Salary increases were impacted by additional FTE's, promotions, and contractual salary increases. These losses were partially offset by investment returns in excess of the 6.5% assumption. This actuarial experience loss had no impact on the required employer contribution but did decrease the funded ratio by approximately 0.5%. The plan's funded ratio at January 1, 2024 was 112.00% (including the credit balance) versus 111.98% for the prior year. The actuarial value of assets exceeds the market value of assets by $51.4 million as of January 1, 2024. This difference will be a gradual "hit" to the plan over subsequent years, in the absence of offsetting gains. The plan's credit balance, which reflects actual contributions in-excess of actuarially required contributions in prior years, increased from $35.64 million to $38.14 million during calendar 2023, 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. Staff is recommending the annual use of the interest earnings on the credit balance (approx. $2.5 million) to reduce the required employer contribution for the foreseeable future, which would effectively maintain the credit balance at the current $38 million level. The use of the interest earnings will help offset the increased cost of the recent assumption changes, as well as recent pension benefit enhancements. Gabriel, Roeder, Smith & Co. Actuary Peter Strong provided a PowerPoint presentation. Page 1 City of Clearwater Pension Trustees Meeting Minutes June 17, 2024 Trustee Teixeira moved to accept the January 1, 2024 Annual Actuarial Valuation for the Employees' Pension Plan. The motion was duly seconded and carried unanimously. 4.2 Approve new hires for acceptance into the Pension Plan as listed. Name/Job Classification/Department Pension Eligibility Date William Perdue, Fleet Operations Trainer, General Services 12/18/2023 Alyssa Allen, Human Resources Analyst , Human Resources 12/18/2023 Michelle Wannike, Librarian , Library 12/18/2023 Mark Still, Code Inspector I , Planning & Development 12/18/2023 Hezekiah Swann, Solid Waste Worker 1, Solid Waste & Recycling 12/18/2023 Vincent Hollingsworth, S.W. Worker 1, Solid Waste & Recycling 12/18/2023 Sarah Davis, Recreation Leader 1, Parks & Recreation 01/02/2024 Modesto Gonzalez, Traffic Engineering Assistant, Public Works 01/02/2024 Sam Wells, Utilities Mechanic, Public Utilities 01/02/2024 Jim Fry, Gas Operations Division Head, Gas 01/02/2024 Patricia Peterson, Librarian 1, Library 01/02/2024 Isabella Patton, Library Assistant , Library 01/02/2024 Samantha Reilly, Engineering Specialist 111, Public Works 01/02/2024 Lloyd Gardner, Industrial Electrician, Public Utilities 01/02/2024 Kemar Bonner, S.W. Equip. Operator, Solid Waste & Recycling 01/02/2024 Jordan Phillips, Stormwater Technician 1, Public Works 01/02/2024 Delaney Rose, Librarian 1, Library 01/02/2024 Steven Alejandre-Mar, Marine Facility Operator, Parks & Rec. 01/02/2024 Gregory Perles, Parks Service Supervisor 11, Parks & Recreation 01/02/2024 Jason Larson, Police Telecommunicator 1, Police 01/02/2024 Terrell Smith, S.W. Equipment Operator, Solid Waste & Recycling 01/08/2024 Raymond Dresch, Engineering Specialist 111, Public Works 01/16/2024 Annabella Hullen, Engineer 11, Public Works 01/16/2024 Darrell Perry, S.W. Equipment Operator, Solid Waste & Recycling 01/16/2024 Kenneth Scherer, Water Plant Operator Trainee, Public Utilities 01/16/2024 William Bridges, Recreation Leader 1, Parks & Recreation 01/16/2024 Kayla Cowart, Customer Service Rep 1, Planning & Development 01/16/2024 Sarah Crowell, Librarian 1, Library 01/16/2024 Michael Alberty, Utility Dispatcher 1, Gas 01/16/2024 Melissa Adams, Parks Service Technician 1, Parks & Recreation 01/16/2024 Dizzmond Kelly, Meter Reader 1, Finance & Budget 01/16/2024 Casey O'Day, Recreation Leader 1, Parks & Recreation 01/16/2024 Page 1 City of Clearwater Pension Trustees Meeting Minutes June 17, 2024 Krista Akers, Parks Service Technician I, Parks & Recreation 01/16/2024 Julie Quattrocki, Customer Service Rep I, Utility Customer Service 01/16/2024 Tracy Boone, Payroll Technician I, Police 01/16/2024 Christopher Corrales, Police Cadet, Police 01/16/2024 Peter Mullady, Police Cadet, Police 01/16/2024 Terry Winthrop, Police Cadet, Police 01/13/2024 Erin McHenry, Police Cadet, Police 01/13/2024 Madison Booth, Police Cadet, Police 01/13/2024 Kenneth Scherer, Water Plant Operator Trainee, Public Utilities 01/29/2024 Seanna White, Crime Analyst I, Police 01/29/2024 Scott Selover, Parks Service Technician I, Parks & Recreation 01/29/2024 Donna Groce,Accounting Technician I, Library 01/29/2024 Deandre Lane, Parks Service Technician I, Parks & Recreation 01/29/2024 Elizabeth Ponga, Police Telecommunicator I, Police 01/29/2024 Anthony Medina, Police Telecommunicator I, Police 01/29/2024 Brian Rautmann, Parking, Facility &Security Aide, Public Works E01/29/2024 Richard Hartman, Transportation Planner, Planning & Dev. 01/29/2024 Michael Gunnin, Wastewater Collection Tech. I, Public Utilities 01/29/2024 Misty Autery,Administrative Assistant , Public Utilities 01/29/2024 William McCoy, S.W. Equipment Oper., Solid Waste &Recycling 01/29/2024 Trustee Allbritton moved to approve new hires for acceptance into the Pension Plan as listed. 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 Brian Rautmann, Parking, Fac& Sec Aide, Public Works 02/10/2024 Michael Gunnin, Wastewater Coll Tech I, Public Utilities 02/12/2024 Briahna McCrary, Customer Service Rep I, Utility Customer Service 02/12/2024 William Mccoy, Solid Waste Equipment Oper, Solid Waste & Recycling 02/12/2024 Taurus Brown, Solid Waste Worker I, Solid Waste & Recycling 02/12/2024 Richard Hartman, Transportation Planner, Planning & Development 02/12/2024 Misty Autery,Administrative Assistant, Public Utilities 02/12/2024 Ben Joseph, Solid Waste Worker I, Solid Waste & Recycling 02/26/2024 Stephen Smith, Solid Waste Equip. Oper, Solid Waste & Recycling 02/26/2024 Daniel Brown, Wstwtr Trtmnt Plant Oper C, Public Utilities 02/26/2024 Francisco Colon, Water Distr Oper Trainee, Public Utilities 02/26/2024 Page 1 City of Clearwater Pension Trustees Meeting Minutes June 17, 2024 James Schwer, Fleet Mechanic, General Services 02/26/2024 [Daoud ron Lombard, Librarian I, Library 02/26/2024 di Solka, Contracts & Procur Spec, General Services 03/11/2024 arius Garland, Solid Waste Equip. Oper, Solid Waste & Recycling 03/11/2024 Adoum, Storeskeeper, Fire Department 03/11/2024 Michael De Koter, Cad &Gis Technician I, Public Works 03/11/2024 Nicholas Spatafora, Parks Service Technician I, Parks& Recreation 03/11/2024 Douglas Costello, Parks Service Technician III, Parks & Recreation 03/11/2024 Matthew Smith, Parks Service Technician III, Parks & Recreation 03/11/2024 Kailey Kinder, Police Telecommunicator I, Police Department EE03/11/2024 Sherrod Morgan, Solid Waste Equip. Oper, Solid Waste & Recycling 03/11/2024 Andrew Covington, Parking, Fac &Sec Aide, Marine &Aviation 03/11/2024 Brianne Defoe,Accounting Tech II, Finance 03/11/2024 Shanna Drake, Police Officer, Police Department 03/11/2024 Sidney Sora, Police Officer, Police Department 03/11/2024 Kayla Garcia, Staff Assistant II, Econ Dev& Housing EE03/11/2024 Alba Horanlli,Administrative Assistant, Planning & Development 03/11/2024 Terrance Scott, Solid Waste Equip. Oper, Solid Waste & Recycling 03/25/2024 Kaliq Campbell, Solid Waste Worker I, Solid Waste & Recycling 03/25/2024 Jayshawn Daniels, Solid Waste Worker I, Solid Waste& Recycling 03/25/2024 Nicholas Finch, Cad &Gis Technician I, Public Works 03/25/2024 Aram Papazian, Utilities Mechanic, Public Utilities EE03/25/2024 Roberto Perez, Fleet Mechanic, General Services 03/25/2024 Damarcus Sims, Solid Waste Worker I, Solid Waste & Recycling 03/25/2024 Eugene Barone, Utility Dispatcher I, Gas System 03/25/2024 Taylor Jaberi, Police Cadet, Police Department 03/25/2024 Halil Yalcinkaya, Police Cadet, Police Department 03/25/2024 Nathaniel Koehler, Police Cadet, Police Department EE03/25/2024 Stefan Pavlovic, Police Cadet, Police Department 03/25/2024 Emily Davis, Compliance Coordinator, Public Utilities 03/25/2024 Patrick Redmond, Solid Waste Equip. Oper, Solid Waste & Recycling 04/08/2024 Edward Pierce, Solid Waste Equip. Oper, Solid Waste & Recycling 04/08/2024 Johnie Singleton, Solid Waste Equip. Oper, Solid Waste & Recycling 04/08/2024 Lorenzo Marry, Wastewater Trtmnt Plant Oper Trn, Public Utilities EE04/08/2024 Robin Boykins,Accounting Tech I, Public Utilities 04/08/2024 Joseph Albee, Tree Trimmer, Public Works 04/08/2024 Maria Nehring,Accountant II, Finance 04/08/2024 Olga Chavez, Librarian I, Library 04/08/2024 Julia Bodolay,Administrative Assistant, Library 04/08/2024 Neil Kummerer, Fire Administrative Chief, Fire Department 04/08/2024 Trustee Mannino moved to approve the new hires for acceptance into the Pension Plan as listed. The motion was duly seconded and carried unanimously. Page 1 City of Clearwater Pension Trustees Meeting Minutes June 17, 2024 4.4 Approve the following request of employees Jason Gray, Public Utilities Department, and Kevin Nurnberger, Planning and Development Department to vest their pension as provided by Section 2.419 of the Employees' Pension Plan. Jason Gray, Water Distribution Supervisor I, Public Utilities Department, was employed by the City on November 18, 2002, and his pension service credit is effective on that date. Mr. Gray terminated from city employment on February 2, 2024. Kevin Nurnberger, Senior Planner, Planning and Development Department, was employed by the City on October 18, 2010, and his pension service credit is effective on that date. Mr. Nurnberger terminated from city employment on September 5, 2023. 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 five or more years (non-hazardous duty) and ten or more years (hazardous duty) 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 (1/1/13), a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of 55 years and completed 20 years of credited service; the date on which a participant has reached age 65 years and completed ten years of credited service; or the date on which a member has completed 30 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 60 years and completed 25 years of credited service; or the date on which a participant has reached the age of 65 years and completed ten years of credited service. Mr. Gray will meet the non-hazardous duty criteria and begin collecting a pension in December of 2032. Mr. Nurnberger will meet the non-hazardous duty criteria and begin collecting a pension in November of 2030. 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 20 years of credited service Page 1 City of Clearwater Pension Trustees Meeting Minutes June 17, 2024 regardless of age, or the date on which the participant has reached 55 years and completed ten years of credited service. Trustee Cotton moved to approve the following request of employees Jason Gray, Public Utilities Department, and Kevin Nurnberger, Planning and Development Department to vest their 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 Stephen Avise, Fire Department, Heath Brenner, Fire Department, Regina Dewitt, City Attorney's Office, Randy Foltz, Public Utilities Department, John Garakop, Solid Waste and Recycling Department, Carol McAnally, Police Department, Howard McChesney, Information Technology Department, Christian Schuele, Fire Department, and Laurie Sullivan, Library Department for a regular pension as provided by Sections 2.416 and 2.424 of the Employees' Pension Plan. Stephen Avise, Firefighter/Driver-Operator, Fire Department, was employed by the City on February 9, 2004, and his pension service credit is effective on that date. His pension will be effective March 1, 2024. Based on an average salary of approximately $83,837.32 over the past five years, the formula for computing regular pensions and Mr. Avise's selection of the 100% Joint and Survivor Annuity with the 30% partial lump sum, this pension benefit will be approximately $31,777.44 annually. Heath Brenner, Fire Lieutenant, Fire Department, was employed by the City on February 9, 2004, and his pension service credit is effective on that date. His pension will be effective March 1, 2024. Based on an average salary of approximately $126,735.92 over the past five years, the formula for computing regular pensions and Mr. Brenner's selection of the 50% Joint and Survivor Annuity with the 30% partial lump sum, this pension benefit will be approximately $49,771.08 annually. Regina Dewitt, Legal Office Administrator, City Attorney's Office, was employed by the City on November 27, 1995, and her pension service credit is effective on that date. Her pension will be effective April 1, 2024. Based on an average salary of approximately $92,521.59 over the past five years, the formula for computing regular pensions and Ms. Dewitt's selection of the 75% Joint & Survivor Annuity, this pension benefit will be approximately $66,199.32 annually. Randy Foltz, Utilities Maintenance Supervisor, Public Utilities Department, was employed by the City on October 30, 1995, and his pension service credit is effective on that date. His pension will be effective March 1, 2024. Based on an average salary of approximately $67,237.22 over the past five years, the formula for computing regular pensions and Mr. Foltz's selection of the 100% Joint and Survivor Annuity with the 10% partial lump sum, this pension benefit will be Page 1 City of Clearwater Pension Trustees Meeting Minutes June 17, 2024 approximately $38,775.84 annually. John Garakop, Welder/Manufacturer, Solid Waste & Recycling Department, was employed by the City on November 28, 2005, and his pension service credit is effective on that date. His pension will be effective May 1, 2024. Based on an average salary of approximately $53,367.67 over the past five years, the formula for computing regular pensions and Mr. Garakop's selection of the 75% Joint and Survivor Annuity, this pension benefit will be approximately $22,553.04 annually Carol McAnally, Police Records Specialist, Police Department, was employed by the City on May 11, 1998, and her pension service credit is effective on that date. Her pension will be effective March 1, 2024. Based on an average salary of approximately $42,372.93 over the past five years, the formula for computing regular pensions and Ms. McAnally's selection of the Single Life Annuity, this pension benefit will be approximately $30,070.08 annually. Howard McChesney, Senior Network Engineer, Information Technology Department, was employed by the City on June 12, 1995, and his pension service credit is effective on that date. His pension will be effective April 1, 2024. Based on an average salary of approximately $100,113.33 over the past five years, the formula for computing regular pensions and Mr. McChesney's selection of the Single Life Annuity, this pension benefit will be approximately $79,289.76 annually. Christian Schuele, Fire Inspector, Fire Department, was employed by the City on March 10, 2003, and his pension service credit is effective on that date. His pension will be effective February 1, 2024. Based on an average salary of approximately $100,034.61 over the past five years, the formula for computing regular pensions and Mr. Schuele's selection of the Single Life Annuity with the 20% partial lump sum, this pension benefit will be approximately $46,234.20 annually. Laurie Sullivan, Library Assistant, Library Department, was employed by the City on May 19, 2003, and her pension service credit is effective on August 21 st, 2006. Her pension will be effective May1, 2024. Based on an average salary of approximately $34,957.88 over the past five years, the formula for computing regular pensions and Ms. Sullivan's selection of the Single Life Annuity, this pension benefit will be approximately $16,994.40 annually. Section 2.416 provides for normal retirement eligibility for non-hazardous duty employees hired prior to the effective date of this reinstatement (1/1/13), a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of 55 years and completed 20 years of credited service; the date on which a participant has reached age 65 years and completed ten years of credited service; or the date on which a member has completed 30 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 Page 1 City of Clearwater Pension Trustees Meeting Minutes June 17, 2024 participant has reached the age of 60 years and completed 25 years of credited service; or the date on which a participant has reached the age of 65 years and completed ten years of credited service. Ms. Dewitt, Mr. Foltz, Mr. Garakop, Ms. McAnally, Mr. McChesney, and Ms. Sullivan 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 20 years of credited service regardless of age, or the date on which the participant has reached 55 years and completed ten years of credited service. Mr. Avise, Mr. Brenner, and Mr. Schuele have met the hazardous duty criteria. Trustee Teixeira moved to approve the following request of Stephen Avise, Fire Department, Heath Brenner, Fire Department, Regina Dewitt, City Attorney's Office, Randy Foltz, Public Utilities Department, John Garakop, Solid Waste and Recycling Department, Carol McAnally, Police Department, Howard McChesney, Information Technology Department, Christian Schuele, Fire Department, and Laurie Sullivan, Library 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. 4.6 Approve the following request of Eric Hannah, Solid Waste and Recycling Department, John Kevin Insco, Police Department, Joseph Ruhlin, Police Department, and Theroun Winston, Solid Waste and Recycling Department for a regular pension as provided by Sections 2.416 and 2.424 of the Employees' Pension Plan. Eric Hannah, Solid Waste Supervisor II, Solid Waste & Recycling Department, was employed by the City on September 13, 1993, and his pension service credit is effective on January 10, 1994. His pension will be effective May 1, 2024. Based on an average salary of approximately $64,536.60 over the past five years, the formula for computing regular pensions and Mr. Hannah's selection of the Single Life Annuity this pension benefit will be approximately $53,725.80 annually. John Kevin Insco, Police Sergeant, Police Department, was employed by the City on September 24, 1990, and his pension service credit is effective on that date. His pension will be effective April 1, 2024. Based on an average salary of approximately $117,750.98 over the past five years, the formula for computing regular pensions and Mr. Insco's selection of the 66 2/3% Joint and Survivor Annuity with the 20% partial lump sum, this pension benefit will be Page 1 City of Clearwater Pension Trustees Meeting Minutes June 17, 2024 approximately $87,553.56 annually. Joseph Ruhlin, Police Officer, Police Department, was employed by the City on October 5, 1992, and his pension service credit is effective on that date. His pension will be effective May 1, 2024. Based on an average salary of approximately $103,834.85 over the past five years, the formula for computing regular pensions and Mr. Ruhlin's selection of the 100% Joint & Survivor Annuity, this pension benefit will be approximately $88,416.12 annually. Theroun Winston, Solid Waste Worker, Solid Waste & Recycling Department, was employed by the City on August 2, 1999, and his pension service credit is effective on that date. His pension will be effective April 1, 2024. Based on an average salary of approximately $41,311.05 over the past five years, the formula for computing regular pensions and Mr. Winston's selection of the Single Life Annuity, this pension benefit will be approximately $27,940.68 annually. Section 2.416 provides for normal retirement eligibility for non-hazardous duty employees hired prior to the effective date of this reinstatement (1/1/13), a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of 55 years and completed 20 years of credited service; the date on which a participant has reached age 65 years and completed ten years of credited service; or the date on which a member has completed 30 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 60 years and completed 25 years of credited service; or the date on which a participant has reached the age of 65 years and completed ten years of credited service. Mr. Hannah and Mr. Winston 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 20 years of credited service regardless of age, or the date on which the participant has reached 55 years and completed ten years of credited service. Mr. Insco and Mr. Ruhlin have met the hazardous duty criteria. Trustee Allbritton moved to approve the following request of Eric Hannah, Solid Waste and Recycling Department, John Kevin Insco, Police Department, Joseph Ruhlin, Police Department, and Theroun Winston, Solid Waste and Recycling 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. Page 1 City of Clearwater Pension Trustees 5. Adjourn Attest Meeting Minutes The meeting adjourned at 2:23 p.m. City of Clearwater Chair Employees' Pension Plan Trustees June 17, 2024 Page 1