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08/12/2024Monday, August 12, 2024 1:00 PM City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Main Library - Council Chambers Pension Trustees Meeting Agenda August 12, 2024Pension Trustees Meeting Agenda 1. Call To Order 2. Approval of Minutes 2.1 Approve the minutes of the June 17, 2024 Pension Trustees meeting as submitted in written summation by the City Clerk. 3. Citizens to be Heard Regarding Items Not on the Agenda 4. New Business Items 4.1 Determine Trustees’ expected rate of return for pension plan investments for the current year, each of the next several years, and for the long term thereafter, in accordance with Florida Statutes 112.661(9). 4.2 Approve the new hires for acceptance into the Pension Plan as listed. 4.3 Approve the following request of Carl Conyers, Police Department, Gerard Grace, Parks and Recreation Department, Timothy Kurtz, Public Works Department, Robert Lazzaro Jr, Police Department, James “Jim” McCulley, Gas Department, and Barry Slack, Public Utilities Department for a regular pension as provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan. 4.4 Approve changes to the PAC Manual, Section IV: Eligibility for Disability Pension, regarding the Firefighter Cancer Presumption Law. 5. Adjourn Page 2 City of Clearwater Printed on 8/5/2024 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0821 Agenda Date: 8/12/2024 Status: Agenda ReadyVersion: 1 File Type: MinutesIn Control: Pension Trustees Agenda Number: 2.1 SUBJECT/RECOMMENDATION: Approve the minutes of the June 17, 2024 Pension Trustees meeting as submitted in written summation by the City Clerk. Page 1 City of Clearwater Printed on 8/5/2024 Pension Trustees Meeting Minutes June 17, 2024 Page 1 City of Clearwater City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Meeting Minutes Monday, June 17, 2024 1:00 PM Main Library - Council Chambers Pension Trustees Draft Pension Trustees Meeting Minutes June 17, 2024 Page 1 City of Clearwater 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. Unapproved 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: Draft Pension Trustees Meeting Minutes June 17, 2024 Page 1 City of Clearwater 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 $16,232,745 14.42% 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. Draft Pension Trustees Meeting Minutes June 17, 2024 Page 1 City of Clearwater 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 I, Solid Waste & Recycling 12/18/2023 Vincent Hollingsworth, S.W. Worker I, Solid Waste & Recycling 12/18/2023 Sarah Davis, Recreation Leader I, 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 I, Library 01/02/2024 Isabella Patton, Library Assistant , Library 01/02/2024 Samantha Reilly, Engineering Specialist III, 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 I, Public Works 01/02/2024 Delaney Rose, Librarian I, Library 01/02/2024 Steven Alejandre-Mar, Marine Facility Operator, Parks & Rec. 01/02/2024 Gregory Perles, Parks Service Supervisor II, Parks & Recreation 01/02/2024 Jason Larson, Police Telecommunicator I, Police 01/02/2024 Terrell Smith, S.W. Equipment Operator, Solid Waste & Recycling 01/08/2024 Raymond Dresch, Engineering Specialist III, Public Works 01/16/2024 Annabella Hullen, Engineer II, 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 I, Parks & Recreation 01/16/2024 Kayla Cowart, Customer Service Rep I, Planning & Development 01/16/2024 Sarah Crowell, Librarian I, Library 01/16/2024 Michael Alberty, Utility Dispatcher I, Gas 01/16/2024 Melissa Adams, Parks Service Technician I, Parks & Recreation 01/16/2024 Dizzmond Kelly, Meter Reader I, Finance & Budget 01/16/2024 Casey O'Day, Recreation Leader I, Parks & Recreation 01/16/2024 Draft Pension Trustees Meeting Minutes June 17, 2024 Page 1 City of Clearwater 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 01/29/2024 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 Draft Pension Trustees Meeting Minutes June 17, 2024 Page 1 City of Clearwater James Schwer, Fleet Mechanic, General Services 02/26/2024 Aaron Lombard, Librarian I, Library 02/26/2024 Jendi Solka, Contracts & Procur Spec, General Services 03/11/2024 Adarius Garland, Solid Waste Equip. Oper, Solid Waste & Recycling 03/11/2024 Daoud 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 03/11/2024 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 03/11/2024 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 03/25/2024 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 03/25/2024 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 04/08/2024 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. Draft Pension Trustees Meeting Minutes June 17, 2024 Page 1 City of Clearwater 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 Draft Pension Trustees Meeting Minutes June 17, 2024 Page 1 City of Clearwater 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 Draft Pension Trustees Meeting Minutes June 17, 2024 Page 1 City of Clearwater 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 21st, 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 Draft Pension Trustees Meeting Minutes June 17, 2024 Page 1 City of Clearwater 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 Draft Pension Trustees Meeting Minutes June 17, 2024 Page 1 City of Clearwater 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. Draft Pension Trustees Meeting Minutes June 17, 2024 Page 1 City of Clearwater 5. Adjourn The meeting adjourned at 2:23 p.m. Chair Employees’ Pension Plan Trustees Attest City Clerk Draft Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0829 Agenda Date: 8/12/2024 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.1 SUBJECT/RECOMMENDATION: Determine Trustees’ expected rate of return for pension plan investments for the current year, each of the next several years, and for the long term thereafter, in accordance with Florida Statutes 112.661(9). SUMMARY: 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. Page 1 City of Clearwater Printed on 8/5/2024 City of Clearwater Employees’ Pension Plan Actuarial Valuation Report as of January 1, 2024 Annual Employer Contribution for the Fiscal Year Ending September 30, 2025 May 6, 2024 Board of Trustees City of Clearwater Employees’ Pension Plan Clearwater, Florida Dear Board Members: The results of the January 1, 2024 Annual Actuarial Valuation of the City of Clearwater Employees’ Pension Plan are presented in this report. This report was prepared at the request of the Board and is intended for use by the Retirement System and those designated or approved by the Board. This report may be provided to parties other than the System only in its entirety and only with the permission of the Board. GRS is not responsible for unauthorized use of this report. The purposes of the valuation are to measure the System’s funding progress and to determine the employer contribution rate for the fiscal year ending September 30, 2025. This report should not be relied on for any purpose other than the purposes described herein. Determinations of financial results, associated with the benefits described in this report, for purposes other than those identified above may be significantly different. The contribution rate in this report is determined using the actuarial assumptions and methods disclosed in Section B of this report. This report includes risk metrics in Section A, but does not include a robust assessment of future experience not meeting the actuarial assumptions. A robust assessment of risks was outside the scope of this assignment. This valuation assumed the continuing ability of the plan sponsor to make the contributions necessary to fund this Plan. A determination regarding whether or not the plan sponsor is actually able to do so is outside our scope of expertise and was not performed. The findings in this report are based on data or other information through December 31, 2023. The valuation was based upon information furnished by the City concerning Retirement System benefits, financial transactions, plan provisions and active members, terminated members, retirees and beneficiaries. We checked for internal and year-to-year consistency, but did not audit the data. We are not responsible for the accuracy or completeness of the information provided by the City. In addition, this report was prepared using certain assumptions approved by the Board as authorized under the Florida and prescribed by the Florida Statutes as described in the section of this report entitled Actuarial Assumptions and Methods. The prescribed assumptions are the assumed mortality rates detailed in the Actuarial Assumptions and Methods section in accordance with Florida Statutes, Chapter 112.63. All actuarial assumptions used in this report are reasonable for purposes of this Board of Trustees May 6, 2024 Page ii valuation. The combined effect of the assumptions, excluding the prescribed assumptions or methods set by law is expected to have no significant bias (i.e. not significantly optimistic or pessimistic). This report was prepared using our proprietary valuation model and related software which in our professional judgment has the capability to provide results that are consistent with the purposes of the valuation and has no material limitations or known weaknesses. We performed tests to ensure that the model reasonably represents that which is intended to be modeled. This report has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Retirement System as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. Peter N. Strong and Trisha Amrose are members of the American Academy of Actuaries. These actuaries meet the Academy’s Qualification Standards to render the actuarial opinions contained herein. The signing actuaries are independent of the plan sponsor. This actuarial valuation and/or cost determination was prepared and completed by us or under our direct supervision, and we acknowledge responsibility for the results. To the best of our knowledge, the results are complete and accurate. In our opinion, the techniques and assumptions used are reasonable, meet the requirements and intent of Part VII, Chapter 112, Florida Statutes, and are based on generally accepted actuarial principles and practices. There is no benefit or expense to be provided by the plan and/or paid from the plan’s assets for which liabilities or current costs have not been established or otherwise taken into account in the valuation. All known events or trends which may require a material increase in plan costs or required contribution rates have been taken into account in the valuation. Gabriel, Roeder, Smith & Company will be pleased to review this valuation and Report with the Board of Trustees and to answer any questions pertaining to the valuation. Respectfully submitted, GABRIEL, ROEDER, SMITH & COMPANY Peter N. Strong, FSA, MAAA Trisha Amrose, MAAA Enrolled Actuary No. 23-6975 Enrolled Actuary No. 23-8010 City of Clearwater Employees’ Pension Plan TABLE OF CONTENTS Section Title Page A Discussion of Valuation Results 1. Discussion of Valuation Results A-1 2. Risks Associated with Measuring the Accrued Liability and Actuarially Determined Contribution A-5 3. Low-Default-Risk Obligation Measure A-8 B Valuation Results 1. Participant Data B-1 2. Actuarially Determined Contribution (ADC) B-4 3. Actuarial Value of Benefits and Assets B-7 4. Calculation of Employer Normal Cost B-10 5. Reconciliation of Credit Balance B-13 6. Liquidation of the Unfunded Actuarial Accrued Liability B-14 7. Actuarial Gains and Losses B-19 8. Recent History of Valuation Results B-25 9. Recent History of Contributions B-26 10. Actuarial Assumptions and Cost Method B-27 11. Glossary of Terms B-40 C Pension Fund Information 1. Statement of Plan Assets at Market Value C-1 2. Reconciliation of Plan Assets C-2 3. Development of Actuarial Value of Assets C-3 4. Allocation of Plan Assets C-4 5. Investment Rate of Return C-5 D Financial Accounting Information 1. FASB No. 35 D-1 E Miscellaneous Information 1. Reconciliation of Membership Data E-1 2. Active Participant Distribution E-2 3. Inactive Participant Distribution E-6 F Summary of Plan Provisions F-1 SECTION A DISCUSSION OF VALUATION RESULTS City of Clearwater Employees’ Pension Plan A-1 DISCUSSION OF VALUATION RESULTS Comparison of Required Employer Contributions The required employer contribution developed in this year's valuation is compared below to last year's results: Required Employer/State Contribution $16,244,745 $13,550,484 $2,694,261 As % of Covered Payroll 14.43 %13.41 %1.02 % Estimated State Contribution 12,000 12,000 0 As % of Covered Payroll 0.01 %0.01 %0.00 % Required Employer Contribution 16,232,745 13,538,484 2,694,261 As % of Covered Payroll 14.42 %13.40 %1.02 % Credit Balance 38,136,025 35,638,663 2,497,362 1/1/2024 Valuation (Decrease) Increase Valuation 1/1/2023 For FYE 9/30/2025 For FYE 9/30/2024 Based onBased on Required Employer Contribution by Group The required employer contribution for each group developed in this year's valuation is shown below: Required Employer Contribution by Group Non-Hazardous $6,269,945 $4,253,423 $2,016,522 As % of Covered Payroll 9.16 %7.26 %1.90 % Hazardous Police 5,127,235 5,128,167 (932) As % of Covered Payroll 21.45 %22.03 %(0.58)% Hazardous Fire 4,835,565 4,156,894 678,671 As % of Covered Payroll 23.85 %21.71 %2.14 % Total 16,232,745 13,538,484 2,694,261 As % of Covered Payroll 14.42 %13.40 %1.02 % Valuation (Decrease) Based on 1/1/2024 Increase Based on 1/1/2023 Valuation For FYE 9/30/2025 For FYE 9/30/2024 City of Clearwater Employees’ Pension Plan A-2 The contribution has been adjusted for interest on the basis that payments are made uniformly during the first two quarters of the City’s fiscal year. The required employer contribution has been computed under the assumption that the amount to be received from the State on behalf of police officers and firefighters in 2024 and 2025 will be $12,000. If the actual payment from the State falls below this amount, then the City must increase its contribution by the difference. The actual Employer and State contributions during the year ending December 31, 2023 were $13,719,333 and $12,000, respectively, for a total of $13,731,333, compared to the required contribution of $13,550,484. The excess contribution of $180,849 was used to increase the credit balance. The minimum required City contribution is 7% of covered payroll. Revisions in Benefits There have been no revisions in benefits since the previous valuation. Revisions in Actuarial Assumptions or Methods Assumed rates of salary increase, retirement, withdrawal, and disability have been revised based on a 5-year experience study performed for the Plan since the prior valuation. Please see the Actuarial Assumptions and Cost Method subsection of this report as well as the Experience Investigation for the Five Years Ended December 31, 2022, dated September 29, 2023 for additional information on the revised assumptions. The new assumptions were adopted by the Pension Board for initial use in this January 1, 2024 Actuarial Valuation Report. In the aggregate, the assumption changes mentioned above increased the required contribution by $1,596,003, or 1.39% of covered payroll. These assumption changes caused the Plan’s funded ratio to increase by approximately 0.08%. There was no change in the mortality assumption since this assumption is mandated by Chapter 112.63 of the Florida Statutes. For informational purposes, if this year’s valuation had been completed using the mortality rates assumed prior to January 1, 2016 (the RP-2000 Combined Healthy Participant Mortality Table for males and females with mortality improvements projected with Scale BB) rather than the mortality rates used by the FRS as mandated by the Florida Statutes, the required City contribution for FY 2025 would have been $17,157,996, or 15.24% of covered payroll, and the funded ratio (excluding the credit balance) as of January 1, 2024 would have been 105.27%. City of Clearwater Employees’ Pension Plan A-3 Actuarial Experience There was a net actuarial experience loss of $3,947,385 during the year, which means that actual experience was less favorable than expected. The loss is predominantly due to liability-related experience losses resulting from salary increase experience (salaries increased by 8.42% on average versus an expected average increase of 4.39%) and mortality experience (an actual decrease in annual retirement benefits of $602,465 versus an expected decrease of $1,270,428). These losses were partially offset by a recognized investment return (on the smoothed actuarial value of assets) above the assumed rate of 6.5%. The investment return on the market value of assets was 13.72%, and the investment return was 7.56% based on the actuarial value of assets. Under Chapter 112.66 of the Florida Statutes, the annual payment to amortize the UAL may not reduce the contribution required to fund the Normal Cost. As a result, since the annual payment to amortize the UAL is below $0 as of January 1, 2024, the actuarial experience loss had no effect on the required employer contribution. The actuarial experience loss did cause the Plan’s funded ratio to decrease by approximately 0.5%. Analysis of Change in Employer Contribution The components of change in the required City contribution are as follows: Contribution Rate Last Year 13.40 % Change in Benefits 0.00 Change in Assumptions and Methods 1.39 Amortization Payment on UAAL 0.00 Normal Cost (0.49) Experience Gain/Loss 0.00 Change in Administrative Expenses 0.12 Change in State Revenue 0.00 Contribution Rate This Year 14.42 Funded Ratio One measure of the Plan’s funding progress is the ratio of the actuarial value of assets to the actuarial accrued liability. Including the credit balance in the actuarial value of assets, the funded ratio is 112.00% this year compared to 111.98% last year. Not including the credit balance in the actuarial value of assets, the funded ratio is 108.74% this year compared to 108.81% last year. Variability of Future Contribution Rates The Actuarial Cost Method used to determine the contribution rate is intended to produce contribution rates which are generally level as a percent of payroll. Even so, when experience differs from the assumptions, as it often does, the employer’s contribution rate can vary significantly from year-to-year. City of Clearwater Employees’ Pension Plan A-4 The Actuarial Value of Assets exceeds the Market Value of Assets by $51,441,117 as of the valuation date (see Section C). This difference will be gradually recognized in the absence of offsetting gains. Relationship to Market Value If Market Value had been the basis for the valuation, the City contribution rate would have remained at 14.42% of covered payroll (since the annual payment to amortize the UAL would have remained at $0 due to Chapter 112.66 of the Florida Statutes), and the funded ratio (excluding the credit balance) would have been 104.34%. The funded ratio based on the market value of assets (excluding the credit balance) last year was 98.81%. Conclusion The remainder of this Report includes detailed actuarial valuation results, financial information, miscellaneous information and statistics, and a summary of plan provisions. City of Clearwater Employees’ Pension Plan A-5 RISKS ASSOCIATED WITH MEASURING THE ACCRUED LIABILITY AND ACTUARIALLY DETERMINED CONTRIBUTION The determination of the accrued liability and the actuarially determined contribution requires the use of assumptions regarding future economic and demographic experience. Risk measures, as illustrated in this report, are intended to aid in the understanding of the effects of future experience differing from the assumptions used in the course of the actuarial valuation. Risk measures may also help with illustrating the potential volatility in the accrued liability and the actuarially determined contribution that result from the differences between actual experience and the actuarial assumptions. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions due to changing conditions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period, or additional cost or contribution requirements based on the Plan’s funded status); and changes in plan provisions or applicable law. The scope of an actuarial valuation does not include an analysis of the potential range of such future measurements. Examples of risk that may reasonably be anticipated to significantly affect the plan’s future financial condition include: 1. Investment risk – actual investment returns may differ from the expected returns; 2. Contribution risk – actual contributions may differ from expected future contributions. For example, actual contributions may not be made in accordance with the plan’s funding policy or material changes may occur in the anticipated number of covered employees, covered payroll, or other relevant contribution base; 3. Salary and Payroll risk – actual salaries and total payroll may differ from expected, resulting in actual future accrued liability and contributions differing from expected; 4. Longevity risk – members may live longer or shorter than expected and receive pensions for a period of time other than assumed; 5. Other demographic risks – members may terminate, retire or become disabled at times or with benefits other than assumed resulting in actual future accrued liability and contributions differing from expected. The effects of certain trends in experience can generally be anticipated. For example if the investment return since the most recent actuarial valuation is less (or more) than the assumed rate, the cost of the plan can be expected to increase (or decrease). Likewise if longevity is improving (or worsening), increases (or decreases) in cost can be anticipated. The computed contribution rate shown on page 1 may be considered as a minimum contribution rate that complies with the Board’s funding policy. The timely receipt of the actuarially determined contributions is critical to support the financial health of the plan. Users of this report should be aware that contributions made at the actuarially determined rate do not necessarily guarantee benefit security. City of Clearwater Employees’ Pension Plan A-6 Plan Maturity Measures Risks facing a pension plan evolve over time. A young plan with virtually no investments and paying few benefits may experience little investment risk. An older plan with a large number of members in pay status and a significant trust may be much more exposed to investment risk. Generally accepted plan maturity measures include the following: 1/1/2024 1/1/2023 Ratio of the market value of assets to total payroll 11.19 11.34 Ratio of actuarial accrued liability to payroll 10.40 11.12 Ratio of actives to retirees and beneficiaries 1.04 1.04 Ratio of net cash flow to market value of assets (3.23)%(3.39)% Ratio of Market Value of Assets to Payroll The relationship between assets and payroll is a useful indicator of the potential volatility of contributions. For example, if the market value of assets is 2.0 times the payroll, a return on assets 5% different than assumed would equal 10% of payroll. A higher (lower) or increasing (decreasing) level of this maturity measure generally indicates a higher (lower) or increasing (decreasing) volatility in plan sponsor contributions as a percentage of payroll. Ratio of Actuarial Accrued Liability to Payroll The relationship between actuarial accrued liability and payroll is a useful indicator of the potential volatility of contributions for a fully funded plan. A funding policy that targets a funded ratio of 100% is expected to result in the ratio of assets to payroll and the ratio of liability to payroll converging over time. The ratio of liability to payroll may also be used as a measure of sensitivity of the liability itself. For example, if the actuarial accrued liability is 2.5 times the payroll, a change in liability 2% other than assumed would equal 5% of payroll. A higher (lower) or increasing (decreasing) level of this maturity measure generally indicates a higher (lower) or increasing (decreasing) volatility in liability (and also plan sponsor contributions) as a percentage of payroll. Ratio of Actives to Retirees and Beneficiaries A young plan with many active members and few retirees will have a high ratio of active to retirees. A mature open plan may have close to the same number of actives to retirees resulting in a ratio near 1.0. A super-mature or closed plan may have significantly more retirees than actives resulting in a ratio below 1.0. Ratio of Net Cash Flow to Market Value of Assets A positive net cash flow means contributions exceed benefits and expenses. A negative cash flow means existing funds are being used to make payments. A certain amount of negative net cash flow is generally expected to occur when benefits are prefunded through a qualified trust. Large negative net cash flows as a percent of assets may indicate a super-mature plan or a need for additional contributions. City of Clearwater Employees’ Pension Plan A-7 Additional Risk Assessment Additional risk assessment is outside the scope of the annual actuarial valuation. Additional assessment may include scenario tests, sensitivity tests, stochastic modeling, stress tests, and a comparison of the present value of accrued benefits at low-risk discount rates with the actuarial accrued liability. City of Clearwater Employees’ Pension Plan A-8 LOW-DEFAULT-RISK OBLIGATION MEASURE Actuarial Standards of Practice No. 4 (ASOP No. 4) was revised and reissued in December 2021 by the Actuarial Standards Board (ASB). It includes a new calculation called a low-default-risk obligation measure (LDROM) to be prepared and issued annually for defined benefit pension plans. The transmittal memorandum for ASOP No. 4 includes the following explanation: “The ASB believes that the calculation and disclosure of this measure provides appropriate, useful information for the intended user regarding the funded status of a pension plan. The calculation and disclosure of this additional measure is not intended to suggest that this is the “right” liability measure for a pension plan. However, the ASB does believe that this additional disclosure provides a more complete assessment of a plan’s funded status and provides additional information regarding the security of benefits that members have earned as of the measurement date.” The following information has been prepared in compliance with this new requirement. Unless otherwise noted, the measurement date, actuarial cost methods, and assumptions used are the same as for the funding valuation covered in this actuarial valuation report. A. Low-default-risk Obligation Measure of benefits earned as of the measurement date: $1,473,845,805 B. Discount rate used to calculate the LDROM: 4.63% based on Fidelity’s “20-Year Municipal GO AA Index” as of September 29, 2023 C. Other significant assumptions that differ from those used for the funding valuation: none D. Actuarial cost method used to calculate the LDROM: Individual Entry-Age Actuarial Cost Method E. Valuation procedures to value any significant plan provisions that are difficult to measure using traditional valuation procedures, and that differ from the procedures used in the funding valuation: none F. Commentary to help the intended user understand the significance of the LDROM with respect to the funded status of the plan, plan contributions, and the security of participant benefits: The LDROM is a market-based measurement of the pension obligation. It estimates the amount the plan would need to invest in low risk securities to provide the benefits with greater certainty. This measure may not be appropriate for assessing the need for or amount of future contributions. This measure may not be appropriate for assessing the sufficiency of plan assets to cover the estimated cost of settling the plan’s benefit obligation. The difference between the two measures (Valuation and LDROM) is one illustration of the savings the sponsor anticipates by taking on the risk in a diversified portfolio. SECTION B VALUATION RESULTS City of Clearwater Employees’ Pension Plan B-1 ACTIVE MEMBERS Number 1,556 1,114 241 201 Covered Annual Payroll $112,602,359 $68,431,837 $23,898,533 $20,271,989 Average Annual Payroll $72,367 $61,429 $99,164 $100,856 Average Age 43.1 44.6 38.4 40.0 Average Past Service 9.5 9.1 10.2 11.0 Average Age at Hire 33.6 35.5 28.2 29.0 RETIREES & BENEFICIARIES Number 1,373 881 292 200 Annual Benefits $56,374,204 $31,649,835 $15,021,983 $9,702,386 Average Annual Benefit $41,059 $35,925 $51,445 $48,512 Average Age 68.9 70.5 64.9 67.4 DISABILITY RETIREES Number 123 32 50 41 Annual Benefits $4,515,526 $727,545 $2,209,490 $1,578,491 Average Annual Benefit $36,712 $22,736 $44,190 $38,500 Average Age 65.7 72.9 60.4 66.5 TERMINATED VESTED MEMBERS Number 91 72 9 10 Annual Benefits $1,983,540 $1,363,467 $357,194 $262,879 Average Annual Benefit $21,797 $18,937 $39,688 $26,288 Average Age 48.3 49.2 44.7 44.6 January 1, 2024 Total Hazardous Fire PARTICIPANT DATA - AFTER ASSUMPTION CHANGES Non-Hazardous Hazardous Police City of Clearwater Employees’ Pension Plan B-2 ACTIVE MEMBERS Number 1,556 1,114 241 201 Covered Annual Payroll $112,336,740 $68,390,828 $23,808,358 $20,137,554 Average Annual Payroll $72,196 $61,392 $98,790 $100,187 Average Age 43.1 44.6 38.4 40.0 Average Past Service 9.5 9.1 10.2 11.0 Average Age at Hire 33.6 35.5 28.2 29.0 RETIREES & BENEFICIARIES Number 1,373 881 292 200 Annual Benefits $56,374,204 $31,649,835 $15,021,983 $9,702,386 Average Annual Benefit $41,059 $35,925 $51,445 $48,512 Average Age 68.9 70.5 64.9 67.4 DISABILITY RETIREES Number 123 32 50 41 Annual Benefits $4,515,526 $727,545 $2,209,490 $1,578,491 Average Annual Benefit $36,712 $22,736 $44,190 $38,500 Average Age 65.7 72.9 60.4 66.5 TERMINATED VESTED MEMBERS Number 91 72 9 10 Annual Benefits $1,983,540 $1,363,467 $357,194 $262,879 Average Annual Benefit $21,797 $18,937 $39,688 $26,288 Average Age 48.3 49.2 44.7 44.6 PARTICIPANT DATA - BEFORE ASSUMPTION CHANGES January 1, 2024 Total Non-Hazardous Hazardous Police Hazardous Fire City of Clearwater Employees’ Pension Plan B-3 ACTIVE MEMBERS Number 1,506 1,079 238 189 Covered Annual Payroll $101,042,598 $58,617,837 $23,273,028 $19,151,733 Average Annual Payroll $67,093 $54,326 $97,786 $101,332 Average Age 43.6 45.0 38.9 41.2 Average Past Service 10.2 9.9 10.4 11.9 Average Age at Hire 33.4 35.1 28.5 29.3 RETIREES & BENEFICIARIES Number 1,324 844 286 194 Annual Benefits $53,432,370 $29,870,641 $14,276,958 $9,284,771 Average Annual Benefit $40,357 $35,392 $49,919 $47,860 Average Age 68.4 70.1 64.5 66.9 DISABILITY RETIREES Number 123 32 50 41 Annual Benefits $4,429,372 $716,793 $2,187,645 $1,524,934 Average Annual Benefit $36,011 $22,400 $43,753 $37,194 Average Age 65.0 71.9 59.7 66.0 TERMINATED VESTED MEMBERS Number 82 65 9 8 Annual Benefits $1,755,469 $1,246,814 $313,273 $195,382 Average Annual Benefit $21,408 $19,182 $34,808 $24,423 Average Age 49.0 50.2 45.1 43.7 PARTICIPANT DATA - PRIOR YEAR January 1, 2023 Total Non-Hazardous Hazardous Police Hazardous Fire City of Clearwater Employees’ Pension Plan B-4 A.Valuation Date B.ADC to Be Paid During Fiscal Year Ending 9/30/2025 9/30/2025 9/30/2025 9/30/2025 C.Assumed Date of Employer Contrib.Evenly during Evenly during Evenly during Evenly during first two quarters first two quarters first two quarters first two quarters of fiscal year of fiscal year of fiscal year of fiscal year D.Annual Payment to Amortize Unfunded Actuarial Liability $0 *$0 *$0 *$0 * E.Employer Normal Cost 15,253,281 5,887,272 4,820,878 4,545,131 F.ADC if Paid on the Valuation Date: D+E 15,253,281 5,887,272 4,820,878 4,545,131 G.ADC Adjusted for Frequency of Payments 16,244,745 6,269,945 5,134,235 4,840,565 H.ADC as % of Covered Payroll 14.43 %9.16 %21.48 %23.88 % I.Assumed Rate of Increase in Covered Payroll to Contribution Year 0.00 %0.00 %0.00 %0.00 % J.Covered Payroll for Contribution Year 112,602,359 68,431,837 23,898,533 20,271,989 K.ADC for Contribution Year: H x J 16,244,745 6,269,945 5,134,235 4,840,565 L.Estimate of State Revenue in Contribution Year 12,000 0 7,000 5,000 M.Required Employer Contribution (REC) in Contribution Year 16,232,745 6,269,945 5,127,235 4,835,565 N.REC as % of Covered Payroll in Contribution Year: M ÷ J 14.42 %9.16 %21.45 %23.85 % O.Credit Balance 38,136,025 18,881,255 11,186,410 8,068,360 ACTUARIALLY DETERMINED CONTRIBUTION (ADC) - AFTER ASSUMPTION CHANGES January 1, 2024 January 1, 2024 January 1, 2024 January 1, 2024 Total Non-Hazardous Hazardous Police Hazardous Fire * The annual payment to amortize the UAL is less than $0; however, under Chapter 112.66 of the Florida Statutes, the annual payment to amortize the UAL may not reduce the contribution below the amount required to fund the Normal Cost. City of Clearwater Employees’ Pension Plan B-5 A.Valuation Date B.ADC to Be Paid During Fiscal Year Ending 9/30/2025 9/30/2025 9/30/2025 9/30/2025 C.Assumed Date of Employer Contrib.Evenly during Evenly during Evenly during Evenly during first two quarters first two quarters first two quarters first two quarters of fiscal year of fiscal year of fiscal year of fiscal year D.Annual Payment to Amortize Unfunded Actuarial Liability $0 *$0 *$0 *$0 * E.Employer Normal Cost 13,754,687 4,643,922 4,967,122 4,143,643 F.ADC if Paid on the Valuation Date: D+E 13,754,687 4,643,922 4,967,122 4,143,643 G.ADC Adjusted for Frequency of Payments 14,648,742 4,945,777 5,289,985 4,412,980 H.ADC as % of Covered Payroll 13.04 %7.23 %22.22 %21.91 % I.Assumed Rate of Increase in Covered Payroll to Contribution Year 0.00 %0.00 %0.00 %0.00 % J.Covered Payroll for Contribution Year 112,336,740 68,390,828 23,808,358 20,137,554 K.ADC for Contribution Year: H x J 14,648,742 4,945,777 5,289,985 4,412,980 L.Estimate of State Revenue in Contribution Year 12,000 0 7,000 5,000 M.Required Employer Contribution (REC) in Contribution Year 14,636,742 4,945,777 5,282,985 4,407,980 N.REC as % of Covered Payroll in Contribution Year: M ÷ J 13.03 %7.23 %22.19 %21.89 % O.Credit Balance 38,136,025 18,881,255 11,186,410 8,068,360 January 1, 2024 January 1, 2024 January 1, 2024 January 1, 2024 ACTUARIALLY DETERMINED CONTRIBUTION (ADC) - BEFORE ASSUMPTION CHANGES Total Non-Hazardous Hazardous Police Hazardous Fire * The annual payment to amortize the UAL is less than $0; however, under Chapter 112.66 of the Florida Statutes, the annual payment to amortize the UAL may not reduce the contribution below the amount required to fund the Normal Cost. City of Clearwater Employees’ Pension Plan B-6 A.Valuation Date B.ADC to Be Paid During Fiscal Year Ending 9/30/2024 9/30/2024 9/30/2024 9/30/2024 C.Assumed Date of Employer Contrib.Evenly during Evenly during Evenly during Evenly during first two quarters first two quarters first two quarters first two quarters of fiscal year of fiscal year of fiscal year of fiscal year D.Annual Payment to Amortize Unfunded Actuarial Liability $0 *$0 *$0 *$0 * E.Employer Normal Cost 12,723,459 3,993,824 4,821,753 3,907,882 F.ADC if Paid on the Valuation Date: D+E 12,723,459 3,993,824 4,821,753 3,907,882 G.ADC Adjusted for Frequency of Payments 13,550,484 4,253,423 5,135,167 4,161,894 H.ADC as % of Covered Payroll 13.41 %7.26 %22.06 %21.73 % I.Assumed Rate of Increase in Covered Payroll to Contribution Year 0.00 %0.00 %0.00 %0.00 % J.Covered Payroll for Contribution Year 101,042,598 58,617,837 23,273,028 19,151,733 K.ADC for Contribution Year: H x J 13,550,484 4,253,423 5,135,167 4,161,894 L.Estimate of State Revenue in Contribution Year 12,000 0 7,000 5,000 M.Required Employer Contribution (REC) in Contribution Year 13,538,484 4,253,423 5,128,167 4,156,894 N.REC as % of Covered Payroll in Contribution Year: M ÷ J 13.40 %7.26 %22.03 %21.71 % O.Credit Balance 35,638,663 17,647,814 10,470,543 7,520,306 ACTUARIALLY DETERMINED CONTRIBUTION (ADC) - PRIOR YEAR January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 Total Non-Hazardous Hazardous Police Hazardous Fire * The annual payment to amortize the UAL is less than $0; however, under Chapter 112.66 of the Florida Statutes, the annual payment to amortize the UAL may not reduce the contribution below the amount required to fund the Normal Cost. City of Clearwater Employees’ Pension Plan B-7 A.Valuation Date B.Actuarial Present Value of All Projected Benefits for 1.Active Members a. Service Retirement Benefits $ 503,299,062 $ 233,443,503 $ 136,139,269 $ 133,716,290 b. Vesting Benefits 60,697,090 43,891,548 10,923,826 5,881,716 c. Disability Benefits 22,612,358 2,818,322 12,252,474 7,541,562 d. Preretirement Death Benefits 6,836,081 4,652,482 1,102,796 1,080,803 e. Return of Member Contributions 3,255,713 1,775,168 938,048 542,497 f. Total 596,700,304 286,581,023 161,356,413 148,762,868 2.Inactive Members a. Service Retirees & Beneficiaries 720,324,807 385,218,082 210,000,146 125,106,579 b. Disability Retirees 58,690,790 7,355,451 31,340,710 19,994,629 c. Terminated Vested Members 22,663,248 13,552,980 5,491,640 3,618,628 d. Total 801,678,845 406,126,513 246,832,496 148,719,836 3. Total for All Members 1,398,379,149 692,707,536 408,188,909 297,482,704 C.Actuarial Accrued (Past Service) Liability 1,170,789,378 595,823,946 339,031,943 235,933,489 D.Actuarial Value of Accumulated Plan Benefits per FASB No. 35 1,073,356,487 530,738,072 324,444,131 218,174,284 E.Plan Assets 1.Market Value 1,259,795,289 635,755,587 371,085,737 252,953,965 2. Actuarial Value 1,311,236,406 661,715,343 386,238,250 263,282,813 3. Actuarial Value Excluding Credit Balance 1,273,100,381 642,834,088 375,051,840 255,214,453 F.Actuarial Present Value of Projected Covered Payroll 1,042,422,377 614,824,187 234,600,418 192,997,772 G.Actuarial Present Value of Projected Member Contributions 91,934,421 49,185,936 23,448,708 19,299,777 H.Accumulated Value of Active Member Contributions 66,583,287 33,969,704 17,355,402 15,258,181 I.Unfunded Actuarial Accrued Liability (UAAL) Based on EAN Method = C. - E.3.(102,311,003) (47,010,142) (36,019,897) (19,280,964) J.Funded Ratio = E.2. / C.112.00%111.06%113.92%111.59% K.Funded Ratio Excluding Credit Balance = E.3. / C.108.74%107.89%110.62%108.17% Total Non-Hazardous Hazardous Police Hazardous Fire ACTUARIAL VALUE OF BENEFITS AND ASSETS - AFTER ASSUMPTION CHANGES January 1, 2024 January 1, 2024 January 1, 2024 January 1, 2024 City of Clearwater Employees’ Pension Plan B-8 A.Valuation Date B.Actuarial Present Value of All Projected Benefits for 1.Active Members a. Service Retirement Benefits $ 478,824,935 $ 211,657,369 $ 142,007,161 $ 125,160,405 b. Vesting Benefits 52,176,448 39,120,897 7,873,673 5,181,878 c. Disability Benefits 26,902,401 4,782,386 13,076,436 9,043,579 d. Preretirement Death Benefits 6,401,860 4,120,005 1,174,939 1,106,916 e. Return of Member Contributions 2,873,999 1,511,597 811,480 550,922 f. Total 567,179,643 261,192,254 164,943,689 141,043,700 2.Inactive Members a. Service Retirees & Beneficiaries 723,863,370 386,657,892 211,157,815 126,047,663 b. Disability Retirees 59,166,424 7,456,555 31,515,099 20,194,770 c. Terminated Vested Members 22,690,951 13,557,038 5,505,923 3,627,990 d. Total 805,720,745 407,671,485 248,178,837 149,870,423 3. Total for All Members 1,372,900,388 668,863,739 413,122,526 290,914,123 C.Actuarial Accrued (Past Service) Liability 1,171,599,704 592,006,732 342,864,654 236,728,318 D.Actuarial Value of Accumulated Plan Benefits per FASB No. 35 1,081,810,838 535,972,767 326,322,739 219,515,332 E.Plan Assets 1.Market Value 1,259,795,289 635,755,587 371,085,737 252,953,965 2. Actuarial Value 1,311,236,406 661,715,343 386,238,250 263,282,813 3. Actuarial Value Excluding Credit Balance 1,273,100,381 642,834,088 375,051,840 255,214,453 F.Actuarial Present Value of Projected Covered Payroll 964,924,885 551,757,419 232,716,088 180,451,378 G.Actuarial Present Value of Projected Member Contributions 85,442,982 44,140,594 23,257,251 18,045,137 H.Accumulated Value of Active Member Contributions 66,583,287 33,969,704 17,355,402 15,258,181 I.Unfunded Actuarial Accrued Liability (UAAL) Based on EAN Method = C. - E.3.(101,500,677) (50,827,356) (32,187,186) (18,486,135) J.Funded Ratio = E.2. / C.111.92%111.77%112.65%111.22% K.Funded Ratio Excluding Credit Balance = E.3. / C.108.66%108.59%109.39%107.81% Total Non-Hazardous Hazardous Police Hazardous Fire ACTUARIAL VALUE OF BENEFITS AND ASSETS - BEFORE ASSUMPTION CHANGES January 1, 2024 January 1, 2024 January 1, 2024 January 1, 2024 City of Clearwater Employees’ Pension Plan B-9 A.Valuation Date B.Actuarial Present Value of All Projected Benefits for 1.Active Members a. Service Retirement Benefits $ 454,853,649 $ 196,302,621 $ 138,832,511 $ 119,718,517 b. Vesting Benefits 46,541,808 34,218,439 7,412,388 4,910,981 c. Disability Benefits 25,160,725 4,216,023 12,502,005 8,442,697 d. Preretirement Death Benefits 5,963,171 3,740,983 1,158,778 1,063,410 e. Return of Member Contributions 2,429,514 1,176,681 769,368 483,465 f. Total 534,948,867 239,654,747 160,675,050 134,619,070 2.Inactive Members a. Service Retirees & Beneficiaries 694,228,568 369,720,677 202,345,021 122,162,870 b. Disability Retirees 58,681,569 7,550,037 31,468,648 19,662,884 c. Terminated Vested Members 19,994,031 12,869,182 4,499,387 2,625,462 d. Total 772,904,168 390,139,896 238,313,056 144,451,216 3. Total for All Members 1,307,853,035 629,794,643 398,988,106 279,070,286 C.Actuarial Accrued (Past Service) Liability 1,123,775,534 563,994,021 331,082,157 228,699,356 D.Actuarial Value of Accumulated Plan Benefits per FASB No. 35 1,043,838,470 519,294,723 314,127,896 210,415,851 E.Plan Assets 1.Market Value 1,146,071,970 581,344,059 335,888,864 228,839,047 2. Actuarial Value 1,258,374,452 638,309,400 368,802,288 251,262,764 3. Actuarial Value Excluding Credit Balance 1,222,735,789 620,661,586 358,331,745 243,742,458 F.Actuarial Present Value of Projected Covered Payroll 862,486,031 469,557,019 224,809,250 168,119,762 G.Actuarial Present Value of Projected Member Contributions 76,828,058 37,564,560 22,451,522 16,811,976 H.Accumulated Value of Active Member Contributions 66,164,180 34,538,637 16,837,687 14,787,856 I.Unfunded Actuarial Accrued Liability (UAAL) Based on EAN Method = C. - E.3.(98,960,255) (56,667,565) (27,249,588) (15,043,102) J.Funded Ratio = E.2. / C.111.98%113.18%111.39%109.87% K.Funded Ratio Excluding Credit Balance = E.3. / C.108.81%110.05%108.23%106.58% Total Non-Hazardous Hazardous Police Hazardous Fire ACTUARIAL VALUE OF BENEFITS AND ASSETS - PRIOR YEAR January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 City of Clearwater Employees’ Pension Plan B-10 A.Valuation Date B.Normal Cost for 1.Service Retirement Benefits $17,657,942 $7,481,716 $5,005,828 $5,170,398 2.Vesting 3,914,959 2,625,437 814,487 475,035 3.Disability Benefits 1,973,738 207,280 1,072,853 693,605 4.Death Benefits 315,174 202,741 51,739 60,694 5.Refund of Contributions 915,093 660,929 154,291 99,873 6.Total for Future Benefits 24,776,906 11,178,103 7,099,198 6,499,605 7.Assumed Amount for Administrative Expenses 363,156 183,716 106,715 72,725 8.Total Normal Cost 25,140,062 11,361,819 7,205,913 6,572,330 C.Expected Member Contributions 9,886,781 5,474,547 2,385,035 2,027,199 D.Employer Normal Cost: B8 - C 15,253,281 5,887,272 4,820,878 4,545,131 E. Employer Normal Cost as % of Covered Payroll 13.55%8.60%20.17%22.42% Total Non-Hazardous Hazardous Police Hazardous Fire CALCULATION OF EMPLOYER NORMAL COST - AFTER ASSUMPTION CHANGES ENTRY AGE NORMAL METHOD January 1, 2024 January 1, 2024 January 1, 2024 January 1, 2024 City of Clearwater Employees’ Pension Plan B-11 A.Valuation Date B.Normal Cost for 1.Service Retirement Benefits $16,188,005 $6,248,164 $5,312,141 $4,627,700 2.Vesting 3,491,957 2,487,978 577,736 426,243 3.Disability Benefits 2,410,370 400,175 1,152,937 857,258 4.Death Benefits 297,784 186,365 52,570 58,849 5.Refund of Contributions 864,419 608,790 141,006 114,623 6.Total for Future Benefits 23,252,535 9,931,472 7,236,390 6,084,673 7.Assumed Amount for Administrative Expenses 363,156 183,716 106,715 72,725 8.Total Normal Cost 23,615,691 10,115,188 7,343,105 6,157,398 C.Expected Member Contributions 9,861,004 5,471,266 2,375,983 2,013,755 D.Employer Normal Cost: B8 - C 13,754,687 4,643,922 4,967,122 4,143,643 E. Employer Normal Cost as % of Covered Payroll 12.24%6.79%20.86%20.58% CALCULATION OF EMPLOYER NORMAL COST - BEFORE ASSUMPTION CHANGES ENTRY AGE NORMAL METHOD Total Non-Hazardous Hazardous Police Hazardous Fire January 1, 2024 January 1, 2024 January 1, 2024 January 1, 2024 City of Clearwater Employees’ Pension Plan B-12 A.Valuation Date B.Normal Cost for 1.Service Retirement Benefits $15,054,225 $5,434,913 $5,222,811 $4,396,501 2.Vesting 3,056,844 2,104,368 550,416 402,060 3.Disability Benefits 2,274,475 340,029 1,117,387 817,059 4.Death Benefits 268,819 159,713 52,376 56,730 5.Refund of Contributions 784,038 538,155 136,716 109,167 6.Total for Future Benefits 21,438,401 8,577,178 7,079,706 5,781,517 7.Assumed Amount for Administrative Expenses 208,594 106,073 60,983 41,538 8.Total Normal Cost 21,646,995 8,683,251 7,140,689 5,823,055 C.Expected Member Contributions 8,923,536 4,689,427 2,318,936 1,915,173 D.Employer Normal Cost: B8 - C 12,723,459 3,993,824 4,821,753 3,907,882 E. Employer Normal Cost as % of Covered Payroll 12.59%6.81%20.72%20.40% Total Non-Hazardous Hazardous Police Hazardous Fire CALCULATION OF EMPLOYER NORMAL COST - PRIOR YEAR ENTRY AGE NORMAL METHOD January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 City of Clearwater Employees’ Pension Plan B-13 Total Non-Hazardous Hazardous Police Hazardous Fire $35,638,663 $17,647,814 $10,470,543 $7,520,306 -13,538,484 -4,253,423 -5,128,167 -4,156,894 +13,719,333 +4,339,756 +5,163,449 +4,216,128 +2,316,513 +1,147,108 +680,585 +488,820 38,136,025 18,881,255 11,186,410 8,068,360 Interest on Credit Balance Credit Balance at End of Year Credit Balance at Beginning of Year Required Employer Contribution Employer Contribution Made Reconcilation of Credit Balance City of Clearwater Employees’ Pension Plan B-14 LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) UAAL Amortization Period and Payments - Non-Hazardous Date Established Source Amount Years Remaining Amount After Assumption Changes Before Assumption Changes 1/1/2015 Fresh Start (2,679,461)$ 14 (4,915,763)$ (512,072)$ (512,072)$ 1/1/2016 (Gain)/Loss 244,325 7 417,210 71,428 71,428 1/1/2016 Assumption Change (2,200,261) 17 (3,744,176) (347,721) (347,721) 1/1/2017 (Gain)/Loss (9,301,995) 8 (14,765,832) (2,277,090) (2,277,090) 1/1/2017 Assumption Change 156,236 18 247,493 22,275 22,275 1/1/2018 (Gain)/Loss (5,692,965) 9 (8,431,519) (1,189,422) (1,189,422) 1/1/2019 (Gain)/Loss 2,983,422 10 4,124,797 538,759 538,759 1/1/2019 Assumption Change 12,955,157 20 17,890,212 1,524,555 1,524,555 1/1/2020 (Gain)/Loss (611,097) 11 (789,762) (96,444) (96,444) 1/1/2020 Assumption Change 5,818,657 21 7,514,996 625,285 625,285 1/1/2021 (Gain)/Loss (26,810,531) 12 (32,427,321) (3,731,979) (3,731,979) 1/1/2021 Assumption Change (4,671,812) 22 (5,649,423) (459,864) (459,864) 1/1/2022 (Gain)/Loss (32,781,512) 13 (37,198,421) (4,061,528) (4,061,528) 1/1/2022 Assumption Change 2,972,002 23 3,372,078 269,009 269,009 1/1/2022 Plan Amendment 2,698,651 15 3,062,159 305,793 305,793 1/1/2023 (Gain)/Loss 10,255,929 14 10,925,035 1,138,055 1,138,055 1/1/2024 (Gain)/Loss 9,540,881 15 9,540,881 952,769 952,769 1/1/2024 Assumption Change 3,817,214 25 3,817,214 293,841 N/A (33,307,160) (47,010,142) (6,934,351) (7,228,192) Original UAAL Current UAAL Payment City of Clearwater Employees’ Pension Plan B-15 UAAL Amortization Period and Payments - Hazardous Police Date Established Source Amount Years Remaining Amount After Assumption Changes Before Assumption Changes 1/1/2015 Fresh Start (1,506,064)$ 14 (2,498,934)$ (260,313)$ (260,313)$ 1/1/2016 (Gain)/Loss 137,330 7 204,230 34,965 34,965 1/1/2016 Assumption Change (1,236,717) 17 (1,918,271) (178,149) (178,149) 1/1/2017 (Gain)/Loss (5,228,439) 8 (7,288,999) (1,124,061) (1,124,061) 1/1/2017 Assumption Change 87,817 18 127,060 11,436 11,436 1/1/2018 (Gain)/Loss (3,199,886) 9 (4,191,319) (591,263) (591,263) 1/1/2019 (Gain)/Loss 1,676,914 10 2,062,576 269,403 269,403 1/1/2019 Assumption Change 7,281,798 20 9,217,027 785,450 785,450 1/1/2020 (Gain)/Loss (343,483) 11 (396,911) (48,470) (48,470) 1/1/2020 Plan Amendment 5,717,584 6 6,375,646 1,236,626 1,236,626 1/1/2020 Assumption Change 3,552,608 21 4,211,986 350,458 350,458 1/1/2021 (Gain)/Loss (10,424,892) 12 (12,635,459) (1,454,183) (1,454,183) 1/1/2021 Assumption Change (5,894,181) 22 (7,138,973) (581,114) (581,114) 1/1/2022 (Gain)/Loss (20,293,771) 13 (23,047,159) (2,516,416) (2,516,416) 1/1/2022 Assumption Change 1,909,879 23 2,168,341 172,980 172,980 1/1/2023 (Gain)/Loss 5,355,386 14 5,707,287 594,525 594,525 1/1/2024 (Gain)/Loss (3,145,314) 15 (3,145,314) (314,097) (314,097) 1/1/2024 Assumption Change (3,832,711) 25 (3,832,711) (295,034) N/A (29,386,142) (36,019,897) (3,907,257) (3,612,223) Original UAAL Current UAAL Payment City of Clearwater Employees’ Pension Plan B-16 UAAL Amortization Period and Payments - Hazardous Fire Date Established Source Amount Years Remaining Amount After Assumption Changes Before Assumption Changes 1/1/2015 Fresh Start (1,027,124)$ 14 (1,891,855)$ (197,074)$ (197,074)$ 1/1/2016 (Gain)/Loss 93,658 7 160,822 27,533 27,533 1/1/2016 Assumption Change (843,431) 17 (1,440,503) (133,779) (133,779) 1/1/2017 (Gain)/Loss (3,565,754) 8 (5,689,752) (877,436) (877,436) 1/1/2017 Assumption Change 59,890 18 95,210 8,569 8,569 1/1/2018 (Gain)/Loss (2,182,297) 9 (3,247,965) (458,186) (458,186) 1/1/2019 (Gain)/Loss 1,143,642 10 1,588,544 207,487 207,487 1/1/2019 Assumption Change 4,966,128 20 6,881,352 586,410 586,410 1/1/2020 (Gain)/Loss (234,253) 11 (304,088) (37,134) (37,134) 1/1/2020 Plan Amendment 4,071 6 5,297 1,027 1,027 1/1/2020 Assumption Change 2,356,236 21 3,053,382 254,057 254,057 1/1/2021 (Gain)/Loss (8,511,064) 12 (10,312,118) (1,186,796) (1,186,796) 1/1/2021 Assumption Change (4,361,137) 22 (5,280,631) (429,844) (429,844) 1/1/2022 (Gain)/Loss (12,467,844) 13 (14,164,800) (1,546,591) (1,546,591) 1/1/2022 Assumption Change 1,202,726 23 1,365,882 108,964 108,964 1/1/2022 Plan Amendment 5,694,243 8 6,472,854 998,201 998,201 1/1/2023 (Gain)/Loss 6,257,592 14 6,670,416 694,854 694,854 1/1/2024 (Gain)/Loss (2,448,182) 15 (2,448,182) (244,480) (244,480) 1/1/2024 Assumption Change (794,829) 25 (794,829) (61,184) N/A (14,657,729) (19,280,964) (2,285,402) (2,224,218) Original UAAL Current UAAL Payment City of Clearwater Employees’ Pension Plan B-17 Amortization Schedule The UAAL is being liquidated as a level dollar amount over the number of years remaining in the amortization period. The expected amortization schedules are as follows: 2024 $(47,010,142) 2025 (42,680,726) 2026 (38,069,890) 2027 (33,159,349) 2028 (27,929,622) 2029 (22,359,964) 2033 - Amortization Schedule - Non-Hazardous Year Expected UAAL 2024 $(36,019,897) 2025 (34,199,966) 2026 (32,261,735) 2027 (30,197,519) 2028 (27,999,130) 2029 (25,657,844) 2034 (8,639,276) 2037 - Amortization Schedule - Hazardous Police Year Expected UAAL City of Clearwater Employees’ Pension Plan B-18 2024 $(19,280,964) 2025 (18,100,270) 2026 (16,842,835) 2027 (15,503,666) 2028 (14,077,451) 2029 (12,558,532) 2034 (3,471,971) 2036 - Amortization Schedule - Hazardous Fire Year Expected UAAL City of Clearwater Employees’ Pension Plan B-19 ACTUARIAL GAINS AND LOSSES The assumptions used to anticipate mortality, employment turnover, investment income, expenses, salary increases, and other factors have been based on long range trends and expectations. Actual experience can vary from these expectations. The variance is measured by the gain and loss for the period involved. If significant long-term experience reveals consistent deviation from what has been expected and that deviation is expected to continue, the assumptions should be modified. The net actuarial gain (loss) for the past year is computed as follows: 1.Last Year's UAAL $(98,960,255)$(56,667,565)$(27,249,588)$(15,043,102) 2.Employer Normal Cost for Contribution Year 12,723,459 3,993,824 4,821,753 3,907,882 3.Last Year's Contributions 13,550,484 4,253,423 5,135,167 4,161,894 4. Interest at the Assumed Rate on: a.1 and 2 for one year (5,605,391)(3,423,793)(1,457,809)(723,789) b.3 from dates paid 55,391 17,280 21,061 17,050 c. a - b (5,660,782)(3,441,073)(1,478,870)(740,839) 5.This Year's Expected UAAL: 1 + 2 - 3 + 4c (105,448,062)(60,368,237)(29,041,872)(16,037,953) 6.This Year's Actual UAAL (Before any changes in benefits and assumptions)(101,500,677)(50,827,356)(32,187,186)(18,486,135) 7.Net Actuarial Gain (Loss): (5) - (6)(3,947,385)(9,540,881)3,145,314 2,448,182 8.Gain (Loss) Due to Investments 13,346,807 9.Gain (Loss) Due to other sources (17,294,192) Hazardous FireA. Derivation of the Current UAAL Total Non-Hazardous Hazardous Police City of Clearwater Employees’ Pension Plan B-20 Gains (losses) in previous years have been as follows: Year Ending Gain 12/31 (Loss) 2009 $32,358,262 (4.89)% 2010 2,311,412 (0.37) 2011 (13,721,771)2.28 2012 (7,015,253)1.15 2013 62,452,347 (11.02) 2014 34,213,347 (6.01) 2015 (475,313)0.07 ** 2016 18,096,188 (2.51)** 2017 11,075,148 (1.48)** 2018 (5,803,978)0.75 ** 2019 1,188,833 (0.14)** 2020 45,746,487 (5.30)** 2021 65,543,127 (7.43)** 2022 (21,868,907)2.30 ** 2023 (3,947,385)0.37 ** Employer Cost Rate* Change in * Before 2015, Change in Normal Cost Rate. ** Before reflecting Chapter 112.66 of the Florida Statutes. Since the annual payment to amortize the UAAL is less than $0, the net effect of these gains and losses on the required employer contribution is $0 or limited after reflecting Chapter 112.66 of the Florida Statutes (the requirement to fund at least the normal cost). City of Clearwater Employees’ Pension Plan B-21 The fund earnings and salary increase assumptions have considerable impact on the cost of the Plan so it is important that they are in line with the actual experience. The following table shows the actual fund earnings and salary increase rates compared to the assumed rates for the last few years: 12/31/1986 N/A 7.00 %7.40 %5.00 % 12/31/1987 N/A 7.00 5.90 5.00 12/31/1988 N/A 7.00 9.10 5.00 12/31/1989 N/A 7.00 8.70 5.00 12/31/1990 N/A 7.00 5.30 5.00 12/31/1991 N/A 7.00 6.10 5.00 12/31/1992 N/A 7.00 6.80 5.00 12/31/1993 7.42 %7.00 1.20 5.00 12/31/1994 6.28 7.00 4.40 5.00 12/31/1995 9.14 7.00 6.40 5.00 12/31/1996 11.54 7.00 6.70 5.00 12/31/1997 13.74 7.00 5.60 5.00 12/31/1998 15.28 7.00 7.40 5.00 12/31/1999 17.96 7.00 4.20 5.00 12/31/2000 12.42 7.00 5.80 5.00 12/31/2001 7.40 7.00 5.90 5.00 12/31/2002 (1.85)7.50 5.80 6.00 12/31/2003 7.45 7.50 6.40 6.00 12/31/2004 2.18 7.50 6.38 6.00 12/31/2005 4.58 7.50 5.49 6.00 12/31/2006 7.87 7.50 5.15 6.00 12/31/2007 10.68 7.50 6.62 6.00 12/31/2008 (10.61)7.50 4.25 6.00 12/31/2009 16.53 7.50 3.29 6.00 12/31/2010 5.98 7.50 1.27 6.00 12/31/2011 4.46 7.50 2.56 6.00 12/31/2012 5.50 7.50 4.48 6.00 12/31/2013 14.04 7.00 3.16 4.07 12/31/2014 11.04 7.00 3.38 4.04 12/31/2015 7.64 7.00 8.65 *4.09 12/31/2016 8.22 7.00 1.23 *4.13 12/31/2017 8.89 7.00 7.35 4.16 12/31/2018 5.76 7.00 4.08 4.18 12/31/2019 7.39 6.75 8.84 4.35 12/31/2020 11.10 6.65 6.05 4.30 12/31/2021 12.46 6.55 6.37 4.24 12/31/2022 6.08 6.50 9.16 4.32 12/31/2023 7.56 6.50 8.42 4.39 Averages 8.06 %---5.64 %--- Investment Return Year Ending Actual Assumed Assumed Salary Increases Actual * Salary for the year ending 12/31/2015 included 27 pay periods rather than 26. The actual investment return rates shown above are based on the actuarial value of assets. The actual salary increase rates shown above are the increases received by those active members who were included in the actuarial valuations both at the beginning and the end of each year. City of Clearwater Employees’ Pension Plan B-22 History of Investment Return Based on Actuarial Value of Assets -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% Plan Year End Actual Assumed History of Salary Increases 0% 5% 10% 15% 0% 5% 10% 15% Plan Year End Compared to Previous Year Actual Assumed City of Clearwater Employees’ Pension Plan B-23 Active Members Year Vested Other End of Ended A E A E A E A E A A A E Year 12/31/2009 49 110 54 57 0 6 0 2 10 46 56 93 1,567 12/31/2010 78 137 68 51 2 6 3 2 15 49 64 85 1,508 12/31/2011 84 124 43 49 6 6 0 2 11 64 75 84 1,468 12/31/2012 119 113 51 52 3 6 1 2 18 40 58 81 1,474 12/31/2013 102 98 27 42 2 3 4 2 11 54 65 79 1,478 12/31/2014 135 131 45 51 5 3 2 2 21 58 79 78 1,482 12/31/2015 145 122 43 52 7 3 1 2 18 53 71 82 1,505 12/31/2016 159 144 49 60 4 3 2 3 18 71 89 89 1,520 12/31/2017 164 161 47 59 2 3 2 2 25 85 110 91 1,523 12/31/2018 207 175 45 65 1 3 0 2 27 102 129 92 1,555 12/31/2019 164 148 38 52 3 4 1 2 13 93 106 99 1,571 12/31/2020 105 135 43 52 0 4 0 2 8 84 92 100 1,541 12/31/2021 168 199 55 56 1 4 2 1 18 123 141 92 1,510 12/31/2022 195 199 59 54 4 4 0 1 20 116 136 90 1,506 12/31/2023 237 187 52 55 2 4 3 1 47 83 130 94 1,556 12/31/2024 46 3 1 118 15 Yr Totals *2111 2183 719 807 42 62 21 28 280 1121 1401 1329 * Totals are through current Plan Year only. Terminations Year Retirement Retirement Death Totals During Service Disability Actual (A) Compared to Expected (E) Decrements Among Active Employees Number Added City of Clearwater Employees’ Pension Plan B-24 Year Ended Number Number 12/31/2009 12 $142,606 16 $313,189 12/31/2010 12 139,508 18 363,242 12/31/2011 13 220,877 19 416,467 12/31/2012 12 232,755 20 466,010 12/31/2013 20 401,192 20 480,787 12/31/2014 16 275,728 21 510,892 12/31/2015 19 385,405 22 558,603 12/31/2016 20 498,746 25 708,907 12/31/2017 15 288,110 26 753,482 12/31/2018 25 762,324 28 831,241 12/31/2019 20 566,781 28 885,857 12/31/2020 27 921,472 29 949,503 12/31/2021 25 781,255 32 1,073,271 12/31/2022 37 (18 with continuing beneficaries) 760,803 34 1,160,759 12/31/2023 30 (12 with continuing beneficaries) 602,465 36 1,270,428 12/31/2024 38 1,395,938 Actual (A) Compared to Expected (E) Deaths Among Retirees and Beneficiaries Actual During Year Annual Pensions Annual Pensions Expected During Year City of Clearwater Employees’ Pension Plan B-25 Active Members Inactive Members 1/1/07 1,692 819 $79,385,090 $559,830,590 N/A N/A N/A $9,192,407 11.58 % 1/1/08 1,641 878 80,371,617 610,979,087 N/A N/A N/A 6,920,400 8.61 1/1/09 1,628 903 82,104,837 536,834,473 N/A N/A N/A 20,005,238 24.37 1/1/10 1,567 955 80,443,199 618,444,906 $647,167,565 $28,722,659 95.6 % 15,879,628 19.74 1/1/11 1,508 1,024 76,505,599 646,956,800 672,786,812 25,830,012 96.2 15,461,725 20.21 1/1/12 1,468 1,072 74,765,020 664,087,199 702,438,432 38,351,233 94.5 17,064,100 22.82 1/1/13 1,474 1,127 74,422,344 688,731,221 774,749,811 86,018,590 88.9 12,845,501 17.26 1/1/14 1,478 1,144 74,254,159 772,411,068 795,927,127 23,516,059 97.0 4,626,039 6.23 1/1/15 1,482 1,194 75,078,542 829,486,793 824,274,144 (5,212,649)100.6 8,194,115 10.91 1/1/16 1,505 1,237 80,250,993 866,598,975 857,177,619 (9,421,356)101.1 8,358,975 10.42 1/1/17 1,520 1,278 79,276,100 908,229,246 880,316,652 (27,912,594)103.2 8,092,922 10.21 1/1/18 1,523 1,334 82,317,307 957,314,542 916,334,666 (40,979,876)104.5 8,236,726 10.01 1/1/19 1,555 1,374 84,608,940 978,492,240 965,611,907 (12,880,333)101.3 9,106,282 10.76 1/1/20 1,571 1,401 90,594,113 1,015,277,332 1,017,746,535 2,469,203 99.8 10,463,285 11.55 1/1/21 1,541 1,422 92,726,419 1,093,182,410 1,034,718,990 (58,463,420)105.7 10,711,397 11.55 1/1/22 1,510 1,469 94,070,686 1,190,146,409 1,076,740,942 (113,405,467)110.5 12,017,928 12.78 1/1/23 1,506 1,529 101,042,598 1,222,735,789 1,123,775,534 (98,960,255)108.8 12,723,459 12.59 1/1/24 1,556 1,587 112,602,359 1,273,100,381 1,170,789,378 (102,311,003)108.7 15,253,281 13.55 Unfunded Actuarial Liability (Entry Age)* RECENT HISTORY OF VALUATION RESULTS Number of Employer Normal Cost* Valuation Date Covered Annual Payroll Actuarial Value of Assets % of PayrollAmount Actuarial Accrued Liability (Entry Age) Funded Ratio * Starting with the January 1, 2015 valuation, the Employer Normal Cost is calculated under the Entry Age Normal Method and the Credit Balance is excluded from the Actuarial Value of Assets. Results before January 1, 2010 are from the January 1, 2009 Report prepared by PricewaterhouseCoopers. City of Clearwater Employees’ Pension Plan B-26 1/1/07 9/30/08 $12,532,399 15.79 %$12,000 0.02 %$12,520,399 15.77 %$12,520,399 $12,000 $12,532,399 1/1/08 9/30/09 10,086,978 12.55 12,000 0.01 10,074,978 12.54 10,074,978 12,000 10,086,978 1/1/09 9/30/10 23,960,586 29.18 12,000 0.01 23,948,586 29.17 23,948,586 12,000 23,960,586 1/1/10 9/30/11 19,373,992 24.08 12,000 0.01 19,361,992 24.07 19,361,992 12,000 19,373,992 1/1/11 9/30/12 18,898,567 24.70 12,000 0.01 18,886,567 24.69 18,886,567 12,000 18,898,567 1/1/12 9/30/13 20,925,720 27.99 12,000 0.02 20,913,720 27.97 20,913,720 12,000 20,925,720 1/1/13 9/30/14 19,608,078 26.35 12,000 0.02 19,596,078 26.33 19,596,078 12,000 19,608,078 1/1/14 9/30/15 10,803,098 14.55 12,000 0.02 10,791,098 14.53 10,791,098 12,000 10,803,098 1/1/15 9/30/16 8,767,703 11.68 12,000 0.02 8,755,703 11.66 8,755,703 12,000 8,767,703 1/1/16 9/30/17 8,944,103 11.15 12,000 0.02 8,932,103 11.13 8,932,103 12,000 8,944,103 1/1/17 9/30/18 8,659,427 10.92 12,000 0.01 8,647,427 10.91 8,647,427 12,000 8,659,427 1/1/18 9/30/19 8,813,297 10.71 12,000 0.02 8,801,297 10.69 8,801,297 12,000 8,813,297 1/1/19 9/30/20 9,720,956 11.49 12,000 0.01 9,708,956 11.48 9,708,956 12,000 9,720,956 1/1/20 9/30/21 11,534,013 12.73 12,000 0.01 11,522,013 12.72 11,522,013 12,000 11,534,013 1/1/21 9/30/22 11,412,994 12.31 12,000 0.01 11,400,994 12.30 11,400,994 12,000 11,412,994 1/1/22 9/30/23 12,799,094 13.61 12,000 0.02 12,787,094 13.59 12,787,094 12,000 12,799,094 1/1/23 9/30/24 13,550,484 13.41 12,000 0.01 13,538,484 13.40 13,538,484 12,000 13,550,484 1/1/24 9/30/25 16,244,745 14.43 12,000 0.01 16,232,745 14.42 --- --- --- % of Payroll Employer State Valuation Date End of Year To Which Valuation Applies Amount Actual Contributions % of Payroll TotalAmount % of PayrollAmount RECENT HISTORY OF REQUIRED AND ACTUAL CONTRIBUTIONS Estimated State Required Contributions Employer & State Net Employer Results before January 1, 2010 are from the January 1, 2009 Report prepared by PricewaterhouseCoopers. City of Clearwater Employees’ Pension Plan B-27 ACTUARIAL ASSUMPTIONS AND COST METHOD Valuation Methods Actuarial Cost Method - Normal cost and the allocation of benefit values between service rendered before and after the valuation date were determined using an Individual Entry-Age Actuarial Cost Method having the following characteristics: (i) the annual normal cost for each individual active member, payable from the date of employment to the date of retirement, is sufficient to accumulate the value of the member’s benefit at the time of retirement; (ii) each annual normal cost is a constant percentage of the member’s year by year projected covered pay. Actuarial gains/(losses), as they occur, reduce (increase) the Unfunded Actuarial Accrued Liability. Financing of Unfunded Actuarial Accrued Liabilities - Unfunded Actuarial Accrued Liabilities (full funding credit if assets exceed liabilities) were amortized by level (principal & interest combined) dollar amount contributions over a reasonable period of future years. Actuarial Value of Assets - The Actuarial Value of Assets phase in the difference between the expected and actual return on market value of assets at the rate of 20% per year. The Actuarial Value of Assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80% of the Market Value of plan assets and whose upper limit is 120% of the Market Value of plan assets. During periods when investment performance exceeds the assumed rate, Actuarial Value of Assets will tend to be less than Market Value. During periods when investment performance is less than assumed rate, Actuarial Value of Assets will tend to be greater than Market Value. Valuation Assumptions The actuarial assumptions used in the valuation are shown in this Section. Both the economic and decrement assumptions were established following the Experience Investigation for the Five Years Ended December 31, 2022, dated September 29, 2023. The mortality assumption is mandated by Chapter 112.63, Florida Statutes. Economic Assumptions The investment return rate assumed in the valuation is 6.5% per year, compounded annually (net rate after investment expenses). City of Clearwater Employees’ Pension Plan B-28 The Inflation Rate assumed in this valuation is 2.40% per year. The Inflation Rate is defined to be the expected long-term rate of increases in the prices of goods and services. This assumption was changed this year (based on the results of a 5-year experience study) from 2.25%. The assumed real rate of return over inflation is defined to be the portion of total investment return that is more than the assumed inflation rate. Considering other economic assumptions, the 6.5% investment return rate translates to an assumed real rate of return over inflation of 4.10%. The rate of salary increase used for individual members can be seen in the tables below. Part of the assumption is for merit and/or seniority increases and productivity increases, and 2.40% recognizes inflation. This assumption is used to project a member’s current salary to the salaries upon which benefits will be based. This assumption was changed this year (based on the results of a 5-year experience study) from the service-based rates used in the prior valuation, which varied from 2.75% to 7.6%. Years of Service Under 5 2.40%7.75% 5 - 14 2.40%6.40% 15 - 19 2.40%5.25% 20 & Over 2.40%4.40%2.00% 5.35% 4.00% 2.85% % Increase in Salary - Firefighters Merit and Seniority Inflation Total Increase Years of Service Under 5 2.40%9.00% 5 - 9 2.40%6.25% 10 - 14 2.40%5.00% 15 & Over 2.40%3.75%1.35% 6.60% 3.85% 2.60% % Increase in Salary - Police Officers Merit and Seniority Inflation Total Increase Years of Service Under 2 2.40%8.00% 2 - 9 2.40%6.00% 10 - 14 2.40%5.75% 15 - 19 2.40%5.00% 20 and Higher 2.40%3.50%1.10% 3.60% 3.35% 2.60% % Increase in Salary - Non-Hazardous Duty Merit and Seniority Inflation Total Increase 5.60% City of Clearwater Employees’ Pension Plan B-29 Demographic Assumptions The mortality tables used in the valuation for Hazardous Duty members are based on the PUB-2010 Headcount Weighted Mortality Tables described below, with mortality improvements projected for healthy lives to all future years after 2010 using Scale MP-2018. No mortality improvement is projected for disabled lives. Pre-Retirement PUB-2010 Table Post-Retirement PUB-2010 Table Female Healthy Headcount Weighted Safety Employee Female Table, set forward 1 year Headcount Weighted Safety Healthy Retiree Female Table, set forward 1 year Male Healthy Headcount Weighted Safety Below Median Employee Male Table, set forward 1 year Headcount Weighted Safety Below Median Healthy Retiree Male Table, set forward 1 year Female Disabled N/A 80% Headcount Weighted General Disabled Retiree Female Table; 20% Headcount Weighted Safety Disabled Retiree Female Table Male Disabled N/A 80% Headcount Weighted General Disabled Retiree Male Table; 20% Headcount Weighted Safety Disabled Retiree Male Table These are the same rates used for Special Risk Class members of the Florida Retirement System (FRS) in the July 1, 2023 FRS Actuarial Valuation Report. Florida Statutes Chapter 112.63(1)(f) mandates the use of the same mortality tables used by the FRS in either of its two most recently published actuarial valuation reports. The following table presents post-retirement mortality rates and life expectancies at illustrative ages. These assumptions are used to measure the probabilities of each benefit payment being made after retirement. City of Clearwater Employees’ Pension Plan B-30 FRS Healthy Post-Retirement Mortality for Special Risk Class Members Sample Attained Ages (in 2024)Men Women Men Women 50 0.42 %0.19 %32.78 36.61 55 0.54 0.35 28.01 31.57 60 0.90 0.59 23.40 26.77 65 1.30 0.91 19.10 22.22 70 2.06 1.42 15.06 17.95 75 3.47 2.36 11.44 14.01 80 6.13 4.04 8.34 10.52 Probability of Future Life Dying Next Year Expectancy (years) The following tables present pre-retirement mortality rates and life expectancies at illustrative ages. These assumptions are used to measure the probabilities of active members dying prior to retirement. All Police and 90% of Firefighters’ deaths before retirement are assumed to be non- service connected. FRS Healthy Pre-Retirement Mortality for Special Risk Class Members Sample Attained Ages (in 2024)Men Women Men Women 50 0.16 %0.10 %35.91 39.81 55 0.25 0.16 30.82 34.66 60 0.42 0.22 25.86 29.58 65 0.68 0.30 21.08 24.56 70 1.16 0.54 16.53 19.64 75 2.04 1.04 12.27 14.93 80 6.13 4.04 8.34 10.52 Probability of Future Life Dying Next Year Expectancy (years) The following table presents disabled post-retirement mortality rates and life expectancies at illustrative ages. FRS Disabled Mortality for Special Risk Class Members Sample Attained Ages Men Women Men Women 50 1.45 %1.25 %24.04 26.84 55 1.91 1.50 20.88 23.54 60 2.37 1.81 17.92 20.32 65 3.00 2.22 15.07 17.17 70 3.91 2.90 12.39 14.10 75 5.30 4.13 9.87 11.22 80 7.66 6.21 7.60 8.67 Probability of Future Life Dying Next Year Expectancy (years) City of Clearwater Employees’ Pension Plan B-31 The mortality tables used in the valuation for Non-Hazardous Duty members are based on the PUB- 2010 Headcount Weighted Mortality Tables described below, with mortality improvements projected for healthy lives to all future years after 2010 using Scale MP-2018. No mortality improvement is projected for disabled lives. Pre-Retirement PUB-2010 Table Post-Retirement PUB-2010 Table Female Healthy Headcount Weighted General Below Median Employee Female Table Headcount Weighted General Below Median Healthy Retiree Female Table Male Healthy Headcount Weighted General Below Median Employee Male Table, set back 1 year Headcount Weighted General Below Median Healthy Retiree Male Table, set back 1 year Female Disabled N/A PUB-2010 Headcount Weighted General Disabled Retiree Female, set forward 3 years Male Disabled N/A PUB-2010 Headcount Weighted General Disabled Retiree Male, set forward 3 years These are the same rates used for Regular Class members (other than K-12 School Instructional Personnel) of the Florida Retirement System (FRS) in the July 1, 2023 FRS Actuarial Valuation Report. Florida Statutes Chapter 112.63(1)(f) mandates the use of the mortality tables from either of the two most recently published actuarial valuation reports of FRS. The following table presents post-retirement mortality rates and life expectancies at illustrative ages. These assumptions are used to measure the probabilities of each benefit payment being made after retirement. FRS Healthy Post-Retirement Mortality for Non-Special Risk Class Members Sample Attained Ages (in 2024)Men Women Men Women 50 0.19 %0.57 %33.44 37.22 55 0.94 0.57 29.07 32.77 60 1.11 0.58 24.95 28.21 65 1.27 0.68 20.87 23.61 70 1.77 1.07 16.82 19.11 75 2.81 1.84 13.09 14.92 80 4.70 3.31 9.79 11.14 Dying Next Year Expectancy (years) Probability of Future Life City of Clearwater Employees’ Pension Plan B-32 The following tables present pre-retirement mortality rates and life expectancies at illustrative ages. These assumptions are used to measure the probabilities of active members dying prior to retirement. All deaths before retirement are assumed to be non-service connected. FRS Healthy Pre-Retirement Mortality for Non-Special Risk Class Members Sample Attained Ages (in 2024)Men Women Men Women 50 0.19 %0.11 %37.96 40.49 55 0.29 0.17 32.95 35.36 60 0.45 0.25 28.09 30.33 65 0.64 0.37 23.38 25.39 70 0.89 0.56 18.81 20.56 75 1.32 0.91 14.36 15.86 80 2.08 1.53 10.05 11.34 Probability of Future Life Dying Next Year Expectancy (years) The following table presents disabled post-retirement mortality rates and life expectancies at illustrative ages. FRS Disabled Mortality for Non-Special Risk Class Members Sample Attained Ages Men Women Men Women 50 2.02 %1.64 %20.99 23.92 55 2.53 1.91 18.18 20.88 60 3.08 2.27 15.50 17.88 65 3.93 2.83 12.94 14.91 70 5.08 3.79 10.53 12.07 75 6.98 5.46 8.29 9.45 80 10.12 8.31 6.33 7.19 Probability of Future Life Dying Next Year Expectancy (years) City of Clearwater Employees’ Pension Plan B-33 The rates of retirement used to measure the probability of eligible members retiring under normal and early retirement eligibility during the next year were as follows: Years of Probability of Service Age Retirement 10 - 19 50 - 54 5 % 55 - 59 15 60 & Over 40 20 - 24 Under 59 15 60 - 64 40 65 & Over 100 25 - 29 Under 55 15 55 - 59 35 60 - 64 40 65 & Over 100 30 & Over 100 Firefighters Retirement Years of Probability of Service Age Retirement 10 - 19 50 - 54 5 % 55 - 59 8 60 - 64 20 65 & Over 100 20 - 29 Under 50 12 50 - 59 20 60 - 64 40 65 & Over 100 30 - 34 Under 55 20 55 - 59 30 60 & Over 100 35 & Over 100 Police Officers Retirement City of Clearwater Employees’ Pension Plan B-34 Years of Probability of Service Age Retirement 5 - 9 65 - 74 20 % 75 & Over 100 10 - 19 65 - 74 30 75 & Over 100 20 - 29 55 - 59 20 60 - 64 15 65 - 69 30 70 & Over 100 30 & Over Under 55 30 55 - 64 20 65 - 69 50 70 & Over 100 Non-Hazardous Duty Retirement This assumption was changed this year (based on the results of a 5-year experience study) from the age-and-service-based rates used in the prior valuation, which varied from 5% to 100%. City of Clearwater Employees’ Pension Plan B-35 Rates of separation from active membership were as shown below (rates do not apply to members eligible to retire and do not include separation on account of death or disability). This assumption measures the probabilities of members separating from employment prior to becoming eligible for retirement. Years of % of Active Members Years of % of Active Members Service Age Separating Within Next Year Service Age Separating Within Next Year Under 2 Under 30 8.0 %All Years Under 40 5.0 % 30 & Over 4.0 40 & Over 2.0 2 - 4 Under 30 5.0 30 & Over 3.0 5 & Over Under 30 8.0 30 & Over 1.8 Firefighter Withdrawal - Males Firefighter Withdrawal - Females Years of % of Active Members Years of % of Active Members Service Age Separating Within Next Year Service Age Separating Within Next Year Under 3 Under 30 7.5 %Under 2 All Ages 14.0 % 30 & Over 4.0 2 - 3 All Ages 6.0 3 - 4 Under 30 5.5 30 & Over 3.5 4 & Over All Ages 3.9 5 & Over Under 30 3.5 30 & Over 2.6 Police Officer Withdrawal - Males Police Officer Withdrawal - Females City of Clearwater Employees’ Pension Plan B-36 Years of % of Active Members Years of % of Active Members Service Age Separating Within Next Year Service Age Separating Within Next Year Under 1 All Ages 20.0 %Under 1 Under 40 25.0 % 40 & Over 12.5 1 - 2 All Ages 18.0 1 - 2 All Ages 17.0 3 - 4 All Ages 12.0 3 - 4 All Ages 12.0 5 - 9 Under 35 9.0 35 - 44 6.0 5 - 9 Under 40 9.0 45 - 54 5.0 40 - 54 7.0 55 & Over 3.5 55 - 59 4.0 60 & Over 3.0 10 & Over Under 35 5.0 35 - 44 3.3 10 & Over Under 45 6.0 45 & Over 3.1 45 - 54 3.5 55 & Over 3.0 Non-Hazardous Duty Withdrawal - FemalesNon-Hazardous Duty Withdrawal - Males This assumption was changed this year (based on the results of a 5-year experience study) from age-and-service-based rates used in the prior valuation, which varied from 1.5% to 25%. Rates of disability among active members (100% of disabilities are assumed to be service- connected). Sample Ages 20 0.22 %0.22 % 25 0.22 0.22 30 0.22 0.22 35 0.26 0.26 40 0.40 0.40 45 0.52 0.52 50 0.52 0.52 55 0.52 0.52 60 0.68 0.68 65 0.88 0.88 70 1.20 1.20 Disabled Within Next Year Males Females Firefighter Duty Disability % of Active Members Becoming City of Clearwater Employees’ Pension Plan B-37 Sample Ages 20 0.30 %0.30 % 25 0.30 0.30 30 0.30 0.30 35 0.35 0.35 40 0.52 0.52 45 0.72 0.72 50 0.72 0.72 55 0.72 0.72 60 0.87 0.87 65 1.10 1.10 70 1.50 1.50 Disabled Within Next Year Males Females Police Officer Duty Disability % of Active Members Becoming Sample Ages 20 0.001 %0.001 % 25 0.011 0.011 30 0.011 0.011 35 0.011 0.011 40 0.021 0.021 45 0.041 0.041 50 0.082 0.082 55 0.165 0.165 60 0.216 0.216 65 0.041 0.041 70 0.041 0.041 Males Females Non-Hazardous Duty Disability % of Active Members Becoming Disabled Within Next Year This assumption was changed this year (based on the results of a 5-year experience study) from age-based rates used in the prior valuation. City of Clearwater Employees’ Pension Plan B-38 Miscellaneous and Technical Assumptions Administrative & Investment Expenses The investment return assumption is intended to be the net return after investment expenses. Annual administrative expenses are assumed to be equal to the administrative expenses of the previous year. Assumed administrative expenses are added to the Normal Cost. Benefit Service Exact fractional service is used to determine the amount of benefit payable. Cost of Living Increases The adjustment is 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. For non-grandfathered members (not eligible for normal retirement on January 1, 2013), there is a five-year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. For Police Officers and Firefighters, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers and Firefighters employed by the City on or after January 1, 2020 and October 1, 2022, respectively. Decrement Operation Disability and mortality decrements operate during retirement eligibility. Decrement Timing Decrements of all types are assumed to occur at the beginning of the year. Eligibility Testing Eligibility for benefits is determined based upon the age nearest birthday and service nearest whole year on the date the decrement is assumed to occur. Forfeitures For vested separations from service, it is assumed that 0% of members separating will withdraw their contributions and forfeit an employer financed benefit. It was further assumed that the liability at termination is the greater of the vested deferred benefit (if any) or the member’s accumulated contributions. Incidence of Contributions Employer contributions are assumed to be made in equal installments during the first two quarters of the fiscal year. Member contributions are assumed to be received continuously throughout the year based upon the computed percent of payroll shown in this report, and the actual payroll payable at the time contributions are made. City of Clearwater Employees’ Pension Plan B-39 Marriage Assumption 75% of males and 65% of females are assumed to be married for purposes of death-in-service benefits and to determine the normal form of benefit when applicable. Male spouses are assumed to be two years older than female spouses for all active members and for members who became inactive before January 1, 2015. For members who became inactive on or after January 1, 2015, spouses ages are based on the beneficiary dates of birth provided by the Plan Administrator. Normal Form of Benefit The normal form of benefit is a life annuity for non-grandfathered non-hazardous duty members. For all other members, the normal form of benefit is a life annuity that includes a survivor benefit where after the participant’s death, 100% is payable to the spouse for five years, after which the benefit is reduced to 50%. Pay Increase Timing End of fiscal year. This is equivalent to assuming that reported pays represent the annual rate of pay on the valuation date. The pay used for the valuation is equal to the greater of the actual pay for the plan year increased by the salary scale assumption rate (which varies by years of service) and the annual rate of pay on the valuation date. Service Credit Accruals It is assumed that members accrue one year of service credit per year. City of Clearwater Employees’ Pension Plan B-40 GLOSSARY Actuarial Accrued Liability (AAL) The difference between the Actuarial Present Value of Future Benefits, and the Actuarial Present Value of Future Normal Costs. Actuarial Assumptions Assumptions about future plan experience that affect costs or liabilities, such as: mortality, withdrawal, disablement, and retirement; future increases in salary; future rates of investment earnings; future investment and administrative expenses; characteristics of members not specified in the data, such as marital status; characteristics of future members; future elections made by members; and other items. Actuarial Cost Method A procedure for allocating the Actuarial Present Value of Future Benefits between the Actuarial Present Value of Future Normal Costs and the Actuarial Accrued Liability. Actuarial Equivalent Of equal Actuarial Present Value, determined as of a given date and based on a given set of Actuarial Assumptions. Actuarial Present Value (APV) The amount of funds required to provide a payment or series of payments in the future. It is determined by discounting the future payments with an assumed interest rate and with the assumed probability each payment will be made. Actuarial Present Value of Future Benefits (APVFB) The Actuarial Present Value of amounts which are expected to be paid at various future times to active members, retired members, beneficiaries receiving benefits, and inactive, nonretired members entitled to either a refund or a future retirement benefit. Expressed another way, it is the value that would have to be invested on the valuation date so that the amount invested plus investment earnings would provide sufficient assets to pay all projected benefits and expenses when due. Actuarial Valuation The determination, as of a valuation date, of the Normal Cost, Actuarial Accrued Liability, Actuarial Value of Assets, and related Actuarial Present Values for a plan. An Actuarial Valuation for a governmental retirement system typically also includes calculations of the Funded Ratio and the Actuarially Determined Contribution (ADC). Actuarial Value of Assets The value of the assets as of a given date, used by the actuary for valuation purposes. This may be the market or fair value of plan assets or a smoothed value in order to reduce the year-to-year volatility of calculated results, such as the funded ratio and the Actuarially Determined Contribution (ADC). City of Clearwater Employees’ Pension Plan B-41 Actuarially Determined Contribution (ADC) The employer’s periodic required contributions, expressed as a dollar amount or a percentage of covered plan compensation. The ADC consists of the Employer Normal Cost and Amortization Payment. Amortization Method A method for determining the Amortization Payment. The most common methods used are level dollar and level percentage of payroll. Under the Level Dollar method, the Amortization Payment is one of a stream of payments, all equal, whose Actuarial Present Value is equal to the UAAL. Under the Level Percentage of Pay method, the Amortization Payment is one of a stream of increasing payments, whose Actuarial Present Value is equal to the UAAL. Under the Level Percentage of Pay method, the stream of payments increases at the rate at which total covered payroll of all active members is assumed to increase. Amortization Payment That portion of the plan contribution or ADC which is designed to pay interest on and to amortize the Unfunded Actuarial Accrued Liability. Amortization Period The period used in calculating the Amortization Payment. Closed Amortization Period A specific number of years that is reduced by one each year, and declines to zero with the passage of time. For example if the amortization period is initially set at 30 years, it is 29 years at the end of one year, 28 years at the end of two years, etc. Employer Normal Cost The portion of the Normal Cost to be paid by the employer. This is equal to the Normal Cost less expected member contributions. Equivalent Single Amortization Period For plans that do not establish separate amortization bases (separate components of the UAAL), this is the same as the Amortization Period. For plans that do establish separate amortization bases, this is the period over which the UAAL would be amortized if all amortization bases were combined upon the current UAAL payment. Experience Gain/Loss A measure of the difference between the normal cost rate from last year and the normal cost rate from this year. Funded Ratio The ratio of the Actuarial Value of Assets to the Actuarial Accrued Liability. Normal Cost The annual cost assigned, under the Actuarial Cost Method, to the current plan year. City of Clearwater Employees’ Pension Plan B-42 Open Amortization Period An open amortization period is one which is used to determine the Amortization Payment but which does not change over time. In other words, if the initial period is set as 30 years, the same 30-year period is used in determining the Amortization Period each year. In theory, if an Open Amortization Period is used to amortize the Unfunded Actuarial Accrued Liability, the UAAL will never completely disappear, but will become smaller each year, either as a dollar amount or in relation to covered payroll. Unfunded Actuarial Accrued Liability The difference between the Actuarial Accrued Liability and Actuarial Value of Assets. Valuation Date The date as of which the Actuarial Present Value of Future Benefits are determined. The benefits expected to be paid in the future are discounted to this date. SECTION C PENSION FUND INFORMATION City of Clearwater Employees’ Pension Plan C-1 Statement of Plan Assets at Market Value 2023 2022 A.Cash and Cash Equivalents (Operating Cash)-$ -$ B.Receivables 1.Member Contributions -$ -$ 2.Employer Contributions 6,752,882 9,203,959 3.Investment Income and Other Receivables 11,544,460 16,829,855 4.Total Receivables 18,297,342$ 26,033,814$ C.Investments 1.Short-Term Investments 29,447,419$ 57,028,678$ 2.Domestic Equities 527,418,800 415,137,134 3.International Equities 163,783,759 180,951,881 4.Domestic Fixed Income 318,494,562 306,695,019 5.International Fixed Income - - 6.Real Estate 120,364,386 134,129,633 7.Infrastructure 93,965,209 56,703,546 8.Private Equity - - 9.Total Investments 1,253,474,135$ 1,150,645,891$ D.Liabilities 1.Benefits Payable -$ -$ 2.Accrued Expenses and Other Payables (11,976,188) (30,607,735) 3.Total Liabilities (11,976,188)$ (30,607,735)$ E.Total Market Value of Assets Available for Benefits 1,259,795,289$ 1,146,071,970$ F.Allocation of Investments 1.Short-Term Investments 2.35%4.96% 2.Domestic Equities 42.08%36.08% 3.International Equities 13.07%15.73% 4.Domestic Fixed Income 25.41%26.65% 5.International Fixed Income 0.00%0.00% 6.Real Estate 9.60%11.65% 7.Infrastructure 7.49%4.93% 8.Private Equity 0.00%0.00% 9.Total Investments 100.00%100.00% December 31 Item City of Clearwater Employees’ Pension Plan C-2 Reconciliation of Plan Assets 2023 2022 A.Market Value of Assets at Beginning of Year 1,146,071,970$ 1,375,042,294$ B.Revenues and Expenditures 1.Contributions a.Employee Contributions 8,994,031$ 8,502,297$ b.Employer Contributions 13,719,333 12,407,212 c.State Contributions 12,000 12,000 d.Total 22,725,364$ 20,921,509$ 2.Investment Income a.Interest, Dividends, and Other Income 21,082,916$ 19,554,092$ b.Net Realized Gains/(Losses)18,611,507 5,974,257 c.Net Unrealized Gains/(Losses)121,717,037 (209,059,896) d.Investment Expenses (6,952,122) (6,580,267) e.Net Investment Income 154,459,338$ (190,111,814)$ 3.Benefits and Refunds a.Refunds (1,431,122)$ (1,500,058)$ b.Regular Monthly Benefits (59,842,370) (56,345,277) c.Partial Lump-Sum Benefits Paid (1,824,735) (1,726,090) d.Total (63,098,227)$ (59,571,425)$ 4.Administrative and Miscellaneous Expenses (363,156)$ (208,594)$ 5.Transfers -$ -$ C.Market Value of Assets at End of Year 1,259,795,289$ 1,146,071,970$ December 31 Item City of Clearwater Employees’ Pension Plan C-3 Development of Actuarial Value of Assets Valuation Date - December 31 2022 2023 2024 2025 2026 2027 A.Actuarial Value of Assets Beginning of Year 1,223,966,639$ 1,258,374,452$ B.Market Value End of Year 1,146,071,970 1,259,795,289 C.Market Value Beginning of Year 1,375,042,294 1,146,071,970 D.Non-Investment/Administrative Net Cash Flow (38,858,510) (40,736,019) E.Investment Income E1. Actual Market Total: B-C-D (190,111,814) 154,459,338 E2. Assumed Rate of Return 6.50%6.50%6.50%6.50%6.50%6.50% E3. Assumed Amount of Return 87,923,357 72,951,505 E4. Amount Subject to Phase-In: E1–E3 (278,035,171) 81,507,833 F.Phase-In Recognition of Investment Income F1. Current Year: 0.2 x E4 (55,607,034) 16,301,567 F2. First Prior Year 15,710,790 (55,607,034) 16,301,567 F3. Second Prior Year 18,752,137 15,710,790 (55,607,034) 16,301,567 F4. Third Prior Year 25,489,010 18,752,137 15,710,790 (55,607,034) 16,301,567 F5. Fourth Prior Year (19,001,937) 25,489,008 18,752,139 15,710,791 (55,607,035) 16,301,565 F6. Total Phase-Ins (14,657,034) 20,646,468 (4,842,538) (23,594,676) (39,305,468) 16,301,565 G.Actuarial Value of Assets End of Year G1. Preliminary Actuarial Value of Assets 1,258,374,452$ 1,311,236,406$ G2. Upper Corridor Limit: 120%*B 1,375,286,364$ 1,511,754,347$ G3. Lower Corridor Limit: 80%*B 916,857,576$ 1,007,836,231$ G4. Funding Value End of Year 1,258,374,452$ 1,311,236,406$ G5. Credit Balance 35,638,663$ 38,136,025$ G6. Final Actuarial Value of Assets 1,222,735,789$ 1,273,100,381$ H.Recognized Investment Earnings 73,266,323$ 93,597,973$ I.Difference between Market & Actuarial Value (112,302,482)$ (51,441,117)$ J.Actuarial Rate of Return 6.08%7.56% K.Market Value Rate of Return -14.02%13.72% L.Ratio of Actuarial Value of Assets to Market Value 109.80%104.08% The Actuarial Value of Assets recognizes assumed investment return (line E3) fully each year. Differences between actual and assumed investment income (Line E4) are phased-in over a closed 5-year period. During periods when investment performance exceeds the assumed rate, Actuarial Value of Assets will tend to be less than Market Value. During periods when investment performance is less than the assumed rate, Actuarial Value of Assets will tend to be greater than Market Value. If assumed rates are exactly realized for 5 consecutive years, Actuarial Value of Assets will become equal to Market Value. City of Clearwater Employees’ Pension Plan C-4 Allocation of Plan Assets by Group Total Non-Hazardous Hazardous Police Hazardous Fire A.Market Value of Assets as of January 1, 2023 1,146,071,970$ 581,344,059$ 335,888,864$ 228,839,047$ B.Contributions (All)22,725,364 9,158,741 7,465,542 6,101,081 C.Net Investment Return 154,459,338 78,139,143 45,388,551 30,931,644 D.Benefit Payments (All)63,098,227 32,702,640 17,550,505 12,845,082 E.Administrative Expenses 363,156 183,716 106,715 72,725 F.Market Value of Assets as of January 1, 2024 1,259,795,289 635,755,587 371,085,737 252,953,965 G.Actuarial Value of Assets as of January 1, 2024 1,311,236,406 661,715,343 386,238,250 263,282,813 H.Actuarial Value of Assets Less Credit Balance 1,273,100,381 642,834,088 375,051,840 255,214,453 Item City of Clearwater Employees’ Pension Plan C-5 Investment Rate of Return Plan Year Ending December 31 1986 13.21 % N/A 1987 10.78 N/A 1988 9.12 N/A 1989 20.84 N/A 1990 6.21 N/A 1991 28.52 N/A 1992 6.49 N/A 1993 9.29 7.42 % 1994 0.89 6.28 1995 23.36 9.14 1996 14.80 11.54 1997 17.49 13.74 1998 16.74 15.28 1999 18.61 17.96 2000 (3.43)12.42 2001 (5.16)7.40 2002 (8.83)(1.85) 2003 20.08 7.45 2004 9.73 2.18 2005 6.67 4.58 2006 11.80 7.87 2007 7.29 10.68 2008 (27.01)(10.61) 2009 30.93 16.53 2010 17.50 5.98 2011 (0.32)4.46 2012 13.92 5.50 2013 16.90 14.04 2014 7.99 11.04 2015 (0.28)7.64 2016 6.70 8.22 2017 16.01 8.89 2018 (2.48)5.76 2019 20.20 7.39 2020 15.12 11.10 2021 12.90 12.46 2022 (14.02)6.08 2023 13.72 7.56 Average returns: Last five years:8.84 % 8.89 % Last ten years:7.10 % 8.59 % All years:8.89 % 8.06 % Actuarial*Market* *Before investment expenses prior to 2013. The above rates are based on the retirement system’s financial information reported to the actuary. They may differ from figures that the investment consultant reports, in part because of differences in the handling of administrative and investment expenses, and in part because of differences in the handling of cash flows. SECTION D FINANCIAL ACCOUNTING INFORMATION City of Clearwater Employees’ Pension Plan D-1 A.Valuation Date B.Actuarial Present Value of Accumulated Plan Benefits 1.Vested Benefits a.Members Currently Receiving Payments $779,015,597 $752,910,137 b.Terminated Vested Members 22,663,248 19,994,031 c.Other Members 250,492,308 251,045,550 d.Total 1,052,171,153 1,023,949,718 2.Non-Vested Benefits 21,185,334 19,888,752 3.Total Actuarial Present Value of Accumulated Plan Benefits: 1d + 2 1,073,356,487 1,043,838,470 4.Accumulated Contributions of Active Members 66,583,287 66,164,180 C.Changes in the Actuarial Present Value of Accumulated Plan Benefits 1.Total Value at Beginning of Year 1,043,838,470 1,003,226,826 2.Increase (Decrease) During the Period Attributable to: a.Plan Amendment 0 3,115,596 b.Change in Actuarial Assumptions (8,454,351)0 c.Latest Member Data, Benefits Accumulated and Decrease in the Discount Period 101,070,595 97,067,473 d.Benefits Paid (63,098,227)(59,571,425) e.Net Increase 29,518,017 40,611,644 3.Total Value at End of Period 1,073,356,487 1,043,838,470 D.Market Value of Assets 1,259,795,289 1,146,071,970 E.Actuarial Assumptions - See page entitled Actuarial Assumptions and Methods FASB NO. 35 INFORMATION January 1, 2024 January 1, 2023 SECTION E MISCELLANEOUS INFORMATION City of Clearwater Employees’ Pension Plan E-1 A. 1.Number Included in Last Valuation 1,506 1,510 2.New Members Included in Current Valuation 233 183 3.Non-Vested Employment Terminations (83)(116) 4.Vested Employment Terminations (47)(20) 5.Service Retirements (52)(59) 6.Disability Retirements (2)(4) 7.Deaths (3)0 8.Rehired Members/Data Corrections 4 12 9.Number Included in This Valuation 1,556 1,506 B. 1.Number Included in Last Valuation 82 79 2.Additions from Active Members 47 20 3.Lump Sum Payments/Refund of Contributions (25)(5) 4.Payments Commenced (11)(12) 5.Deaths 0 0 6.Conversion to Disability/Rehired Members (1)0 7.Data Corrections (1)0 8.Number Included in This Valuation 91 82 C. 1.Number Included in Last Valuation 1,447 1,390 2.Additions from Active Members 54 63 3.Additions from Terminated Vested Members 11 12 4.Deaths Resulting in No Further Payments (17)(19) 5.Deaths Resulting in New Survivor Benefits 3 0 6.End of Certain Period - No Further Payments (1)0 7.Data Correction/Waiver of Benefits (1)1 8.Number Included in This Valuation 1,496 1,447 RECONCILIATION OF MEMBERSHIP DATA Active Members Service Retirees, Disability Retirees and Beneficiaries Terminated Vested Members From 1/1/2022From 1/1/2023 To 1/1/2023To 1/1/2024 City of Clearwater Employees’ Pension Plan E-2 ACTIVE PARTICIPANT DISTRIBUTION ALL ACTIVE MEMBERS Age Group 0-1 1-2 2-3 3-4 4-5 5-9 10-14 15-19 20-24 25-29 30-34 35+Totals 15-19 NO.3 0 0 0 0 0 0 0 0 0 0 0 3 TOT PAY 117,476 0 0 0 0 0 0 0 0 0 0 0 117,476 AVG PAY 39,159 0 0 0 0 0 0 0 0 0 0 0 39,159 20-24 NO.47 20 8 0 0 0 0 0 0 0 0 0 75 TOT PAY 2,254,597 1,012,357 455,315 0 0 0 0 0 0 0 0 0 3,722,269 AVG PAY 47,970 50,618 56,914 0 0 0 0 0 0 0 0 0 49,630 25-29 NO.52 40 29 16 6 23 0 0 0 0 0 0 166 TOT PAY 2,572,717 2,299,992 1,954,495 1,063,159 473,132 1,637,184 0 0 0 0 0 0 10,000,679 AVG PAY 49,475 57,500 67,396 66,447 78,855 71,182 0 0 0 0 0 0 60,245 30-34 NO.36 41 18 16 18 86 10 0 0 0 0 0 225 TOT PAY 1,997,328 2,282,332 1,125,013 920,459 1,282,174 6,445,136 744,107 0 0 0 0 0 14,796,549 AVG PAY 55,481 55,667 62,501 57,529 71,232 74,943 74,411 0 0 0 0 0 65,762 35-39 NO.21 18 13 9 11 66 36 23 1 0 0 0 198 TOT PAY 1,086,892 1,017,640 793,478 580,401 646,710 5,104,319 3,007,649 2,218,814 122,922 0 0 0 14,578,825 AVG PAY 51,757 56,536 61,037 64,489 58,792 77,338 83,546 96,470 122,922 0 0 0 73,630 40-44 NO.17 14 6 9 6 48 25 49 11 0 0 0 185 TOT PAY 848,227 773,036 368,918 525,806 381,816 3,568,782 2,322,128 4,695,227 962,568 0 0 0 14,446,508 AVG PAY 49,896 55,217 61,486 58,423 63,636 74,350 92,885 95,821 87,506 0 0 0 78,089 45-49 NO.12 9 10 4 8 28 24 51 42 8 0 0 196 TOT PAY 545,636 465,126 502,005 192,809 510,449 1,850,317 1,869,492 5,201,593 4,116,331 800,898 0 0 16,054,656 AVG PAY 45,470 51,681 50,200 48,202 63,806 66,083 77,896 101,992 98,008 100,112 0 0 81,912 50-54 NO.22 8 6 6 6 28 20 33 34 21 2 0 186 TOT PAY 1,020,491 442,619 371,787 368,439 402,463 2,000,738 1,501,834 3,031,335 3,369,979 2,438,800 137,060 0 15,085,545 AVG PAY 46,386 55,327 61,964 61,406 67,077 71,455 75,092 91,859 99,117 116,133 68,530 0 81,105 55-59 NO.5 9 8 3 3 15 13 25 22 28 6 0 137 TOT PAY 237,519 487,308 394,938 190,174 132,147 1,052,020 932,687 2,142,428 1,994,229 2,692,957 525,735 0 10,782,142 AVG PAY 47,504 54,145 49,367 63,391 44,049 70,135 71,745 85,697 90,647 96,177 87,622 0 78,702 60-64 NO.11 2 7 4 7 26 19 22 17 12 4 1 132 TOT PAY 571,860 101,441 359,165 276,611 438,125 1,857,372 1,209,954 1,592,697 1,417,374 975,232 395,761 77,681 9,273,273 AVG PAY 51,987 50,720 51,309 69,153 62,589 71,437 63,682 72,395 83,375 81,269 98,940 77,681 70,252 65+ NO.7 1 2 2 0 4 6 8 12 10 1 0 53 TOT PAY 301,706 66,240 81,683 163,421 0 284,188 402,200 514,619 861,932 920,361 148,087 0 3,744,437 AVG PAY 43,101 66,240 40,842 81,710 0 71,047 67,033 64,327 71,828 92,036 148,087 0 70,650 TOT NO.233 162 107 69 65 324 153 211 139 79 13 1 1,556 TOT AMT 11,554,449 8,948,091 6,406,797 4,281,279 4,267,016 23,800,056 11,990,051 19,396,713 12,845,335 7,828,248 1,206,643 77,681 112,602,359 AVG AMT 49,590 55,235 59,877 62,048 65,646 73,457 78,366 91,928 92,412 99,092 92,819 77,681 72,367 Years of Service to Valuation Date City of Clearwater Employees’ Pension Plan E-3 ACTIVE PARTICIPANT DISTRIBUTION NON-HAZARDOUS DUTY MEMBERS Age Group 0-1 1-2 2-3 3-4 4-5 5-9 10-14 15-19 20-24 25-29 30-34 35+Totals 15-19 NO.3 0 0 0 0 0 0 0 0 0 0 0 3 TOT PAY 117,476 0 0 0 0 0 0 0 0 0 0 0 117,476 AVG PAY 39,159 0 0 0 0 0 0 0 0 0 0 0 39,159 20-24 NO.30 16 6 0 0 0 0 0 0 0 0 0 52 TOT PAY 1,325,074 698,833 293,671 0 0 0 0 0 0 0 0 0 2,317,578 AVG PAY 44,169 43,677 48,945 0 0 0 0 0 0 0 0 0 44,569 25-29 NO.36 28 16 9 3 14 0 0 0 0 0 0 106 TOT PAY 1,616,658 1,368,348 856,358 471,874 195,608 798,013 0 0 0 0 0 0 5,306,859 AVG PAY 44,907 48,870 53,522 52,430 65,203 57,001 0 0 0 0 0 0 50,065 30-34 NO.28 33 10 12 7 44 8 0 0 0 0 0 142 TOT PAY 1,492,801 1,644,082 468,784 593,261 336,971 2,515,629 542,510 0 0 0 0 0 7,594,038 AVG PAY 53,314 49,821 46,878 49,438 48,139 57,173 67,814 0 0 0 0 0 53,479 35-39 NO.16 15 10 7 9 32 19 12 1 0 0 0 121 TOT PAY 794,189 768,639 539,109 383,285 470,026 1,924,846 1,192,638 893,831 122,922 0 0 0 7,089,485 AVG PAY 49,637 51,243 53,911 54,755 52,225 60,151 62,770 74,486 122,922 0 0 0 58,591 40-44 NO.14 13 4 8 5 32 12 29 9 0 0 0 126 TOT PAY 690,027 685,071 195,900 436,114 284,850 2,064,957 956,884 2,182,374 656,926 0 0 0 8,153,103 AVG PAY 49,288 52,698 48,975 54,514 56,970 64,530 79,740 75,254 72,992 0 0 0 64,707 45-49 NO.12 9 10 4 8 27 16 21 23 4 0 0 134 TOT PAY 545,636 465,126 502,005 192,809 510,449 1,739,901 1,035,527 1,703,039 1,704,056 289,175 0 0 8,687,723 AVG PAY 45,470 51,681 50,201 48,202 63,806 64,441 64,720 81,097 74,089 72,294 0 0 64,834 50-54 NO.22 8 5 5 5 22 18 22 19 11 2 0 139 TOT PAY 1,020,491 442,619 241,458 254,146 296,020 1,397,154 1,278,683 1,638,454 1,548,923 970,670 137,060 0 9,225,678 AVG PAY 46,386 55,327 48,292 50,829 59,204 63,507 71,038 74,475 81,522 88,243 68,530 0 66,372 55-59 NO.5 9 8 3 3 12 13 19 16 21 4 0 113 TOT PAY 237,519 487,308 394,938 190,174 132,147 748,133 932,687 1,457,328 1,159,257 1,762,319 284,824 0 7,786,634 AVG PAY 47,504 54,145 49,367 63,391 44,049 62,344 71,745 76,701 72,454 83,920 71,206 0 68,908 60-64 NO.11 2 7 4 7 23 19 21 16 10 4 1 125 TOT PAY 571,860 101,441 359,165 276,611 438,125 1,461,239 1,209,954 1,486,063 1,314,844 716,082 395,761 77,681 8,408,826 AVG PAY 51,987 50,721 51,309 69,153 62,589 63,532 63,682 70,765 82,178 71,608 98,940 77,681 67,271 65+ NO.7 1 2 2 0 4 6 8 12 10 1 0 53 TOT PAY 301,706 66,240 81,683 163,421 0 284,188 402,200 514,619 861,932 920,361 148,087 0 3,744,437 AVG PAY 43,101 66,240 40,842 81,711 0 71,047 67,033 64,327 71,828 92,036 148,087 0 70,650 TOT NO.184 134 78 54 47 210 111 132 96 56 11 1 1,114 TOT AMT 8,713,437 6,727,707 3,933,071 2,961,695 2,664,196 12,934,060 7,551,083 9,875,708 7,368,860 4,658,607 965,732 77,681 68,431,837 AVG AMT 47,356 50,207 50,424 54,846 56,685 61,591 68,028 74,816 76,759 83,189 87,794 77,681 61,429 Years of Service to Valuation Date City of Clearwater Employees’ Pension Plan E-4 ACTIVE PARTICIPANT DISTRIBUTION HAZARDOUS POLICE MEMBERS Age Group 0-1 1-2 2-3 3-4 4-5 5-9 10-14 15-19 20-24 25-29 30-34 35+Totals 15-19 NO.0 0 0 0 0 0 0 0 0 0 0 0 0 TOT PAY 0 0 0 0 0 0 0 0 0 0 0 0 0 AVG PAY 0 0 0 0 0 0 0 0 0 0 0 0 0 20-24 NO.6 2 0 0 0 0 0 0 0 0 0 0 8 TOT PAY 363,123 146,026 0 0 0 0 0 0 0 0 0 0 509,149 AVG PAY 60,521 73,013 0 0 0 0 0 0 0 0 0 0 63,644 25-29 NO.8 11 11 5 2 7 0 0 0 0 0 0 44 TOT PAY 492,859 853,043 936,814 422,405 185,880 665,091 0 0 0 0 0 0 3,556,092 AVG PAY 61,607 77,549 85,165 84,481 92,940 95,013 0 0 0 0 0 0 80,820 30-34 NO.6 7 3 2 4 28 2 0 0 0 0 0 52 TOT PAY 391,727 561,259 254,075 179,827 383,461 2,659,988 201,597 0 0 0 0 0 4,631,934 AVG PAY 65,288 80,180 84,692 89,914 95,865 95,000 100,799 0 0 0 0 0 89,076 35-39 NO.2 2 2 2 2 10 9 5 0 0 0 0 34 TOT PAY 117,503 163,130 171,194 197,116 176,684 973,792 923,363 596,647 0 0 0 0 3,319,429 AVG PAY 58,752 81,565 85,597 98,558 88,342 97,379 102,596 119,329 0 0 0 0 97,630 40-44 NO.0 1 2 1 1 9 7 7 2 0 0 0 30 TOT PAY 0 87,965 173,018 89,692 96,966 861,593 734,143 819,758 305,642 0 0 0 3,168,777 AVG PAY 0 87,965 86,509 89,692 96,966 95,733 104,878 117,108 152,821 0 0 0 105,626 45-49 NO.0 0 0 0 0 0 7 15 9 3 0 0 34 TOT PAY 0 0 0 0 0 0 719,176 1,686,767 1,104,684 406,727 0 0 3,917,354 AVG PAY 0 0 0 0 0 0 102,739 112,451 122,743 135,576 0 0 115,216 50-54 NO.0 0 0 0 0 5 2 5 8 8 0 0 28 TOT PAY 0 0 0 0 0 494,651 223,151 599,352 953,709 1,210,259 0 0 3,481,122 AVG PAY 0 0 0 0 0 98,930 111,576 119,870 119,214 151,282 0 0 124,326 55-59 NO.0 0 0 0 0 1 0 3 1 3 2 0 10 TOT PAY 0 0 0 0 0 125,219 0 329,255 149,278 363,379 240,911 0 1,208,042 AVG PAY 0 0 0 0 0 125,219 0 109,752 149,278 121,126 120,456 0 120,804 60-64 NO.0 0 0 0 0 0 0 1 0 0 0 0 1 TOT PAY 0 0 0 0 0 0 0 106,634 0 0 0 0 106,634 AVG PAY 0 0 0 0 0 0 0 106,634 0 0 0 0 106,634 65+ NO.0 0 0 0 0 0 0 0 0 0 0 0 0 TOT PAY 0 0 0 0 0 0 0 0 0 0 0 0 0 AVG PAY 0 0 0 0 0 0 0 0 0 0 0 0 0 TOT NO.22 23 18 10 9 60 27 36 20 14 2 0 241 TOT AMT 1,365,212 1,811,423 1,535,101 889,040 842,991 5,780,334 2,801,430 4,138,413 2,513,313 1,980,365 240,911 0 23,898,533 AVG AMT 62,055 78,758 85,283 88,904 93,666 96,339 103,757 114,956 125,666 141,455 120,456 0 99,164 Years of Service to Valuation Date City of Clearwater Employees’ Pension Plan E-5 ACTIVE PARTICIPANT DISTRIBUTION HAZARDOUS FIRE MEMBERS Age Group 0-1 1-2 2-3 3-4 4-5 5-9 10-14 15-19 20-24 25-29 30-34 35+Totals 15-19 NO.0 0 0 0 0 0 0 0 0 0 0 0 0 TOT PAY 0 0 0 0 0 0 0 0 0 0 0 0 0 AVG PAY 0 0 0 0 0 0 0 0 0 0 0 0 0 20-24 NO.11 2 2 0 0 0 0 0 0 0 0 0 15 TOT PAY 566,400 167,498 161,644 0 0 0 0 0 0 0 0 0 895,542 AVG PAY 51,491 83,749 80,822 0 0 0 0 0 0 0 0 0 59,703 25-29 NO.8 1 2 2 1 2 0 0 0 0 0 0 16 TOT PAY 463,200 78,601 161,323 168,880 91,644 174,080 0 0 0 0 0 0 1,137,728 AVG PAY 57,900 78,601 80,662 84,440 91,644 87,040 0 0 0 0 0 0 71,108 30-34 NO.2 1 5 2 7 14 0 0 0 0 0 0 31 TOT PAY 112,800 76,991 402,154 147,371 561,742 1,269,519 0 0 0 0 0 0 2,570,577 AVG PAY 56,400 76,991 80,431 73,686 80,249 90,680 0 0 0 0 0 0 82,922 35-39 NO.3 1 1 0 0 24 8 6 0 0 0 0 43 TOT PAY 175,200 85,871 83,175 0 0 2,205,681 891,648 728,336 0 0 0 0 4,169,911 AVG PAY 58,400 85,871 83,175 0 0 91,903 111,456 121,389 0 0 0 0 96,975 40-44 NO.3 0 0 0 0 7 6 13 0 0 0 0 29 TOT PAY 158,200 0 0 0 0 642,232 631,101 1,693,095 0 0 0 0 3,124,628 AVG PAY 52,733 0 0 0 0 91,747 105,184 130,238 0 0 0 0 107,746 45-49 NO.0 0 0 0 0 1 1 15 10 1 0 0 28 TOT PAY 0 0 0 0 0 110,416 114,789 1,811,787 1,307,591 104,996 0 0 3,449,579 AVG PAY 0 0 0 0 0 110,416 114,789 120,786 130,759 104,996 0 0 123,199 50-54 NO.0 0 1 1 1 1 0 6 7 2 0 0 19 TOT PAY 0 0 130,329 114,293 106,443 108,933 0 793,529 867,347 257,871 0 0 2,378,745 AVG PAY 0 0 130,329 114,293 106,443 108,933 0 132,255 123,907 128,936 0 0 125,197 55-59 NO.0 0 0 0 0 2 0 3 5 4 0 0 14 TOT PAY 0 0 0 0 0 178,668 0 355,845 685,694 567,259 0 0 1,787,466 AVG PAY 0 0 0 0 0 89,334 0 118,615 137,139 141,815 0 0 127,676 60-64 NO.0 0 0 0 0 3 0 0 1 2 0 0 6 TOT PAY 0 0 0 0 0 396,133 0 0 102,530 259,150 0 0 757,813 AVG PAY 0 0 0 0 0 132,044 0 0 102,530 129,575 0 0 126,302 65+ NO.0 0 0 0 0 0 0 0 0 0 0 0 0 TOT PAY 0 0 0 0 0 0 0 0 0 0 0 0 0 AVG PAY 0 0 0 0 0 0 0 0 0 0 0 0 0 TOT NO.27 5 11 5 9 54 15 43 23 9 0 0 201 TOT AMT 1,475,800 408,961 938,625 430,544 759,829 5,085,662 1,637,538 5,382,592 2,963,162 1,189,276 0 0 20,271,989 AVG AMT 54,659 81,792 85,330 86,109 84,425 94,179 109,169 125,177 128,833 132,142 0 0 100,856 Years of Service to Valuation Date City of Clearwater Employees’ Pension Plan E-6 INACTIVE PARTICIPANT DISTRIBUTION Disabled Retired Total Total Total Total Age Group Number Benefits Number Benefits Number Benefits Number Benefits Under 20 - - - - - - 1 9,803 20-24 - - - - - - 1 43,938 25-29 - - - - - - 1 9,715 30-34 1 6,232 1 38,716 - - - - 35-39 11 178,339 - - - - 4 87,691 40-44 21 535,869 6 278,064 3 118,743 3 102,433 45-49 21 523,941 7 377,201 14 576,807 3 70,832 50-54 25 554,038 14 731,316 58 2,896,264 3 58,719 55-59 6 86,958 12 485,001 127 6,016,926 7 143,005 60-64 6 98,163 13 493,585 198 9,188,753 15 543,208 65-69 - - 23 748,700 265 11,502,180 32 885,561 70-74 - - 19 574,126 259 10,585,178 26 767,028 75-79 - - 14 422,637 180 7,252,756 26 762,984 80-84 - - 6 127,556 54 2,255,029 26 753,255 85-89 - - 7 207,879 36 1,167,891 17 265,317 90-94 - - 1 30,745 7 235,128 2 24,822 95-99 - - - - 1 17,791 4 32,447 100 & Over - - - - - - - - Total 91 1,983,540 123 4,515,526 1,202 51,813,446 171 4,560,758 Average Age 48 66 68 72 Terminated Vested Deceased with Beneficiary SECTION F SUMMARY OF PLAN PROVISIONS City of Clearwater Employees’ Pension Plan F-1 SUMMARY OF PLAN PROVISIONS A. Ordinances The Plan was established under the Code of Ordinances for the City of Clearwater, Florida, Chapter 2, Article V, Division 3 and was most recently amended under Ordinance No. 9620-22 passed and adopted on November 17, 2022. The Plan is also governed by certain provisions of Part VII, Chapter 112, Florida Statutes (F.S.) and the Internal Revenue Code. B. Effective Date Restated Plan Effective Date: January 1, 2013 (previous restated Plan Effective Date was January 1, 1996). C. Plan Year January 1 through December 31. D. Type of Plan Qualified, governmental defined benefit retirement plan; for GASB purposes it is a single employer plan. E. Eligibility Requirements All full-time permanent employees of the City are required to participate and become participants on their date of hire. F. Grandfathered Members Members who are eligible for normal retirement as of January 1, 2013 are grandfathered in the plan provisions in effect before Ordinance No. 8333-12. G. Credited Service Credited Service is measured as the total number of years and fractional parts of years from the date of employment to the date of termination or retirement. No service is credited for any periods of employment for which a participant received a refund of their contributions. City of Clearwater Employees’ Pension Plan F-2 H. Compensation The total compensation for services rendered to the City reportable on the participant’s W-2 form, plus all tax deferred, tax sheltered or tax exempt items of income derived from elective employee payroll deductions or salary reductions, but excluding any lump sum payments of unused vacation and sick leave, pay for off-duty employment, and clothing, car or meal allowances. Effective January 1, 2013: For non-grandfathered hazardous duty members, the amount of overtime included in Compensation is limited to 300 hours per year; For non-grandfathered non- hazardous duty members, Compensation excludes overtime and additional pay above the base rate of pay. I. Average Monthly Compensation (AMC) One-twelfth of the average of Compensation during the highest 5 years out of the last 10 years preceding termination or retirement. J. Normal Retirement Eligibility: For Non-Hazardous Duty A participant hired before January 1, 2013 may retire on the first day of the month coincident with or next following the earliest of: (1) age 55 with 20 years of Credited Service, or (2) 30 years of Credited Service regardless of age, or (3) age 65 with 10 years of Credited Service. A participant hired on or after January 1, 2013 may retire on the first day of the month coincident with or next following the earliest of: (1) age 60 with 25 years of Credited Service, or (2) age 65 with 5 years of Credited Service For Hazardous Duty Police Officers and Firefighters A participant may retire on the first day of the month coincident with or next following the earlier of: (1) age 55 with 10 years of Credited Service, or (2) 20 years of Credited Service regardless of age. City of Clearwater Employees’ Pension Plan F-3 Benefit: 2.75% of AMC multiplied by years of Credited Service. For Non-Hazardous Duty participants hired on or after January 1, 2013, 2.00% of AMC multiplied by years of Credited Service through September 30, 2022 plus 2.50% of AMC multiplied by years of Credited Service after September 30, 2022. Normal Form of Benefit: For Non-Hazardous Duty (Non-Grandfathered) A monthly annuity is paid for the life of the participant. For Hazardous Duty Police Officers and Firefighters (and Grandfathered Non- Hazardous Duty) A monthly annuity is paid for the life of the participant. After the participant’s death, 100% of the Normal Retirement Benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are guaranteed for police officers and firefighters. Optional forms of benefits are available. COLA: 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. For non-grandfathered members (not eligible for normal retirement on January 1, 2013), there is a five- year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. For Police Officers and Firefighters, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers and Firefighters employed by the City on or after January 1, 2020 and October 1, 2022, respectively. K. Early Retirement Eligibility: Police Officers and Firefighters may elect to retire earlier than the Normal Retirement Eligibility upon the attainment of age 50 with 10 years of Credited Service. Benefit: The Normal Retirement Benefit is reduced by 3.0% for each year by which the Early Retirement date precedes age 55. Normal Form of Benefit: A monthly annuity is paid for the life of the participant. After the participant’s death, 100% of the Normal Retirement Benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are guaranteed for police officers and firefighters. Optional forms of benefits are available. City of Clearwater Employees’ Pension Plan F-4 COLA: 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. For non-grandfathered members (not eligible for normal retirement on January 1, 2013), there is a five- year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. For Police Officers and Firefighters, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers and Firefighters employed by the City on or after January 1, 2020 and October 1, 2022, respectively. L. Delayed Retirement Same as Normal Retirement taking into account Compensation earned and service credited until the date of actual retirement. M. Service Connected Disability Eligibility: Any participant who becomes totally and permanently disabled due to an illness or injury contracted in the line of duty and is deemed to be unable to perform useful and efficient service to the City is immediately eligible for a disability benefit. Benefit: For Non-Hazardous Duty Participant’s accrued Normal Retirement Benefit taking into account Compensation earned and service credited until the date of disability. Benefit is guaranteed to be no less than 42% of the participant’s AMC (66 2/3% of the participant’s AMC if grandfathered). Disability benefits, when combined with Worker’s Compensation benefits, cannot exceed and will be limited to 100% of the participant’s AMC on the date of disability. For Hazardous Duty Police Officers and Firefighters Participant’s accrued Normal Retirement Benefit taking into account Compensation earned and service credited until the date of disability. Benefit is guaranteed to be no less than 66 2/3% of the participant’s AMC. Disability benefits, when combined with Worker’s Compensation benefits, cannot exceed and will be limited to 100% of the participant’s AMC on the date of disability. Normal Form of Benefit: For Non-Hazardous Duty (Non-Grandfathered) A monthly annuity is paid for the life of the participant. City of Clearwater Employees’ Pension Plan F-5 For Hazardous Duty Police Officers and Firefighters (and Grandfathered Non- Hazardous Duty) A monthly annuity is paid for the life of the participant. After the participant’s death, 100% of the Normal Retirement Benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are guaranteed for police officers and firefighters. Optional forms of benefits are available. COLA: 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. For non-grandfathered members (not eligible for normal retirement on January 1, 2013), there is a five- year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. For Police Officers and Firefighters, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers and Firefighters employed by the City on or after January 1, 2020 and October 1, 2022, respectively. N. Non-Service Connected Disability Eligibility: Any Hazardous Duty participant who has 10 or more years of Credited Service or Non-Hazardous Duty participant who has 5 or more years of Credited Service, becomes totally and permanently disabled, and is deemed to be unable to perform useful and efficient service to the City is immediately eligible for a disability benefit. Benefit: Participant’s accrued Normal Retirement Benefit taking into account Compensation earned and service credited until the date of disability. Disability benefits, when combined with Worker’s Compensation benefits, cannot exceed and will be limited to 100% of the participant’s AMC on the date of disability. Normal Form of Benefit: For Non-Hazardous Duty (Non-Grandfathered) A monthly annuity is paid for the life of the participant. For Hazardous Duty Police Officers and Firefighters (and Grandfathered Non- Hazardous Duty) A monthly annuity is paid for the life of the participant. After the participant’s death, 100% of the Normal Retirement Benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are guaranteed for police officers and firefighters. Optional forms of benefits are available. City of Clearwater Employees’ Pension Plan F-6 COLA: 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. For non-grandfathered members (not eligible for normal retirement on January 1, 2013), there is a five- year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. For Police Officers and Firefighters, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers and Firefighters employed by the City on or after January 1, 2020 and October 1, 2022, respectively. O. Death in the Line of Duty Eligibility: Any participant whose employment is terminated by reason of death in the line of duty is eligible for survivor benefits. Benefit: Beneficiary will be paid the participant’s accrued benefit based upon Credited Service and AMC as of the date of death. Benefit is guaranteed to be no less than 66 2/3% of the participant’s AMC. Normal Form of Benefit: 100% of the participant’s accrued benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are guaranteed for police officers and firefighters. COLA: 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. For non-grandfathered members (not eligible for normal retirement on January 1, 2013), there is a five- year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. For Police Officers and Firefighters, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers and Firefighters employed by the City on or after January 1, 2020 and October 1, 2022, respectively. In lieu of the benefits described above, the participant’s beneficiary can elect to receive a refund of participant’s accumulated contributions with interest. P. Other Pre-Retirement Death Eligibility: Any Hazardous Duty participant who dies with 10 or more years of Credited Service or Non-Hazardous Duty participant who dies with 5 or more years of Credited Service is eligible for survivor benefits. Benefit: Beneficiary will be paid the participant’s accrued benefit based upon Credited Service and AMC as of the date of death. City of Clearwater Employees’ Pension Plan F-7 Normal Form of Benefit: 100% of the participant’s accrued benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are guaranteed for police officers and firefighters. COLA: 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. For non-grandfathered members (not eligible for normal retirement on January 1, 2013), there is a five- year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. For Police Officers and Firefighters, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers and Firefighters employed by the City on or after January 1, 2020 and October 1, 2022, respectively. In lieu of the benefits described above, a participant’s beneficiary can elect to receive a refund of the participant’s accumulated contributions with interest. Accumulated contributions, plus interest, will be refunded for all Hazardous Duty participants with less than 10 years of Credited Service or Non-Hazardous Duty participants with less than 5 years of Credited Service. Q. Post Retirement Death Benefit determined by the form of benefit elected upon retirement. R. Optional Forms In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees are a Single Life Annuity, a 10 Year Certain and Life Annuity, or the 50%, 66 2/3% (for police officers and firefighters), 75% or 100% Joint and Survivor options. Members may also elect a partial lump sum equal to 10%, 20%, or 30% of the value of the normal retirement benefit with the remaining monthly retirement benefit reduced accordingly. S. Vested Termination Eligibility: A participant has earned a non-forfeitable right to Plan benefits after the completion of 10 years of Credited Service for Hazardous Duty or 5 years of Credited Service for Non-Hazardous Duty provided employee contributions are not refunded. Vesting is determined in accordance with the following tables. Hazardous Duty Members Years of Credited Service % of Normal Retirement Benefits Less Than 10 10 or more 0% 100% City of Clearwater Employees’ Pension Plan F-8 Non-Hazardous Duty Members Years of Credited Service % of Normal Retirement Benefits Less Than 5 5 or more 0% 100% Benefit: The participant’s accrued Normal Retirement Benefit as of the date of termination. Benefit begins on the member’s Normal Retirement date. Alternatively, police officers and firefighters may elect to receive an actuarially reduced Early Retirement Benefit any time after age 50. Normal Form of Benefit: For Non-Hazardous Duty (Non-Grandfathered) A monthly annuity is paid for the life of the participant. For Hazardous Duty Police Officers and Firefighters (and Grandfathered Non- Hazardous Duty) A monthly annuity is paid for the life of the participant. After the participant’s death, 100% of the Normal Retirement Benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are guaranteed for police officers and firefighters. Optional forms of benefits are available. COLA: 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. For non-grandfathered members (not eligible for normal retirement on January 1, 2013), there is a five- year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. For Police Officers and Firefighters, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers and Firefighters employed by the City on or after January 1, 2020 and October 1, 2022, respectively. Hazardous Duty participants with less than 10 years of Credited Service and Nonhazardous Duty participants with less than 5 years of Credited Service will receive a refund of their own accumulated contributions with interest. T. Refunds Eligibility: All Hazardous Duty members terminating employment with less than 10 years of Credited Service and Nonhazardous Duty members terminating employment with less than 5 years of Credited Service are eligible. Optionally, vested members may elect a refund in lieu of the vested benefits otherwise due. City of Clearwater Employees’ Pension Plan F-9 Benefit: Refund of the member’s contributions with 5% simple interest paid in a single lump sum. U. Member Contributions 8% of Compensation for Non-Hazardous Duty participants. 10% of Compensation for Hazardous Duty participants (8% of Compensation if grandfathered). V. Employer Contributions Each plan year, the Employer must contribute a minimum of 7% of the Compensation of all employees participating in the plan, plus any additional amount determined by the actuary needed to fund the plan properly according to State laws. W. Cost of Living Increases 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. For non-grandfathered members (not eligible for normal retirement on January 1, 2013), there is a five-year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. For Police Officers and Firefighters, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers and Firefighters employed by the City on or after January 1, 2020 and October 1, 2022, respectively. X. 13th Check Not Applicable Y. Deferred Retirement Option Plan Not Applicable Z. Other Ancillary Benefits There are no ancillary retirement type benefits not required by statutes but which might be deemed a City of Clearwater Employees’ Pension Plan liability if continued beyond the availability of funding by the current funding source. AA. Changes from Previous Valuation None. Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0938 Agenda Date: 8/12/2024 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.2 SUBJECT/RECOMMENDATION: Approve the new hires for acceptance into the Pension Plan as listed. SUMMARY: Name/ Job Classification/Department Pension Eligibility Date Isabella Arroyo, Human Resources Technician, Human Resources 04/20/2024 Adam Aramino, Survey Assistant I, Public Works 04/22/2024 Darius Hunsicker, Parks Service Technician I, Parks & Recreation 04/22/2024 Christopher Mcfadden, Parks Service Technician I, Parks & Recreation 04/22/2024 Andrew Nolan-Rivera, Parks Service Technician I, Parks & Recreation 04/22/2024 Codey Nygren, Parks Service Technician I, Parks & Recreation 04/22/2024 Loretta Waterworth, Accounting Tech I, Public Utilities 04/22/2024 Miguel Pena, Parks Service Technician I, Parks & Recreation 04/22/2024 Brian Balloon, Solid Waste Equipment Oper, Solid Waste & Recycling 04/22/2024 Kaleb Peterson, Library Assistant I, Library 05/04/2024 Jessica Pryor, Customer Service Rep I, Gas System 05/04/2024 Jacob Speranza, Skilled Tradesworker I, Marine & Aviation 05/04/2024 Jaice Currie, Network Analyst I, Information Technology 05/06/2024 Hadley Johnson, Police Telecommunicator I, Police Department 05/06/2024 Christopher Vera, Police Telecommunicator I, Police Department 05/06/2024 Devin Furlow, Gas Technician I, Gas System 05/06/2024 Adam Borgman, Public Info Coordinator I, Public Communications 05/06/2024 Derrek Rose, Fire Inspector II, Fire Department 05/06/2024 Nicholas Reeves, Parks Service Supervisor I, Parks & Recreation 05/06/2024 Ryan Thomas, Wastewater Coll Tech I, Public Utilities 05/06/2024 Shawn Rodriguez, Streets & Sidewalks Tech I, Public Works 05/06/2024 Samuel Brown, Solid Waste Worker I, Solid Waste & Recycling 05/18/2024 Rico Green, Parks Service Technician I, Parks & Recreation 05/18/2024 Trevor Shultz, Gas Technician I, Gas System 05/20/2024 William Bechtel, Systems Programmer I, Information Technology 05/20/2024 Noah Mayberry, Development Review Tech I, Planning & Dev.05/20/2024 Lester Rivera, Fleet Mechanic, General Supp Services 05/20/2024 Travis Jones, Building & Maint Supv, General Supp Services 05/20/2024 Michael Camarillo, Parks Service Technician I, Parks & Recreation 05/20/2024 James Young, Traffic Sign & Marking Tech I, Public Works 05/20/2024 Monica Lueking, Neighborhoods Coordinator, City Manager 05/20/2024 Jesse Bennett, Stormwater Technician I, Public Works 05/20/2024 Dasril Panko, Wstwtr Trtmnt Plant Oper C, Public Utilities 06/03/2024 Page 1 City of Clearwater Printed on 8/5/2024 File Number: ID#24-0938 Donovan Stewart, Stormwater Technician I, Public Works 06/03/2024 Rossmery Diaz, Human Resources Analyst I, Human Resources 06/03/2024 Terry Barber, Fire Marshal, Fire Department 06/03/2024 Marcus Prescott, Traffic Sign & Marking Tech I, Public Works 06/03/2024 Brandon Hellmann, Solid Waste Equip.Oper, Solid Waste & Recyc.06/03/2024 Verqueze Mitchell, Water Distr Oper Trainee, Public Utilities 06/03/2024 Leanne Bell, Public Info Coordinator I, Public Communications 06/03/2024 Samantha Myers, Engineering Specialist I, Public Utilities 06/17/2024 Shahrzad Takalloo, Planner Iii, Planning & Development 06/17/2024 Elizabeth Brewer, Librarian I, Library 06/17/2024 Keegan Saraceno, Utilities Mechanic, Public Utilities 06/17/2024 Chyna Miller-Robinson, Recreation Leader I, Parks & Recreation 06/17/2024 APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 2 City of Clearwater Printed on 8/5/2024 Interoffice Correspondence Sheet TO: Pension Advisory Committee FROM: Tiffany Makras, Human Resources Director SUBJECT: Recommendation for Acceptance into Pension Plan DATE: April 18, 2024 Subject/Recommendation: Recommend approval of the new hires for acceptance into the Pension Plan as listed. Name Job Classification Department Pension Eligibility Date Isabella Arroyo Human Resources Technician Human Resources 04/20/2024 Adam Aramino Survey Assistant I Public Works 04/22/2024 Darius Hunsicker Parks Service Technician I Parks & Recreation 04/22/2024 Christopher Mcfadden Parks Service Technician I Parks & Recreation 04/22/2024 Andrew Nolan-Rivera Parks Service Technician I Parks & Recreation 04/22/2024 Codey Nygren Parks Service Technician I Parks & Recreation 04/22/2024 Loretta Waterworth Accounting Tech I Public Utilities 04/22/2024 Miguel Pena Parks Service Technician I Parks & Recreation 04/22/2024 Brian Balloon Solid Waste Equipment Oper Solid Waste & Recycling 04/22/2024 Kaleb Peterson Library Assistant I Library 05/04/2024 Jessica Pryor Customer Service Rep I Gas System 05/04/2024 Jacob Speranza Skilled Tradesworker I Marine & Aviation 05/04/2024 Jaice Currie Network Analyst I Information Technology 05/06/2024 Hadley Johnson Police Telecommunicator I Police Department 05/06/2024 Christopher Vera Police Telecommunicator I Police Department 05/06/2024 Devin Furlow Gas Technician I Gas System 05/06/2024 Adam Borgman Public Info Coordinator I Public Communications 05/06/2024 Derrek Rose Fire Inspector Ii Fire Department 05/06/2024 Nicholas Reeves Parks Service Supervisor I Parks & Recreation 05/06/2024 Ryan Thomas Wastewater Coll Tech I Public Utilities 05/06/2024 Shawn Rodriguez Streets & Sidewalks Tech I Public Works 05/06/2024 Samuel Brown Solid Waste Worker I Solid Waste & Recycling 05/18/2024 Rico Green Parks Service Technician I Parks & Recreation 05/18/2024 Trevor Shultz Gas Technician I Gas System 05/20/2024 William Bechtel Systems Programmer I Information Technology 05/20/2024 Noah Mayberry Development Review Tech I Planning & Development 05/20/2024 Lester Rivera Fleet Mechanic General Supp Services 05/20/2024 Travis Jones Building & Maint Supv General Supp Services 05/20/2024 Michael Camarillo Parks Service Technician I Parks & Recreation 05/20/2024 James Young Traffic Sign & Marking Tech I Public Works 05/20/2024 Monica Lueking Neighborhoods Coordinator City Manager 05/20/2024 Jesse Bennett Stormwater Technician I Public Works 05/20/2024 Dasril Panko Wstwtr Trtmnt Plant Oper C Public Utilities 06/03/2024 Donovan Stewart Stormwater Technician I Public Works 06/03/2024 Rossmery Diaz Human Resources Analyst I Human Resources 06/03/2024 Terry Barber Fire Marshal Fire Department 06/03/2024 Marcus Prescott Traffic Sign & Marking Tech I Public Works 06/03/2024 Brandon Hellmann Solid Waste Equipment Oper Solid Waste & Recycling 06/03/2024 Verqueze Mitchell Water Distr Oper Trainee Public Utilities 06/03/2024 Leanne Bell Public Info Coordinator I Public Communications 06/03/2024 Samantha Myers Engineering Specialist I Public Utilities 06/17/2024 Shahrzad Takalloo Planner Iii Planning & Development 06/17/2024 Elizabeth Brewer Librarian I Library 06/17/2024 Keegan Saraceno Utilities Mechanic Public Utilities 06/17/2024 Chyna Miller-Robinson Recreation Leader I Parks & Recreation 06/17/2024 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0943 Agenda Date: 8/12/2024 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.3 SUBJECT/RECOMMENDATION: Approve the following request of Carl Conyers, Police Department, Gerard Grace, Parks and Recreation Department, Timothy Kurtz, Public Works Department, Robert Lazzaro Jr, Police Department, James “Jim” McCulley, Gas Department, and Barry Slack, Public Utilities Department for a regular pension as provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan. SUMMARY: Carl Conyers, Police Officer, Police Department, was employed by the City on May 31, 1994, and his pension service credit is effective on that date. His pension will be effective June 1, 2024. Based on an average salary of approximately $99,902.55 over the past five years, the formula for computing regular pensions and Mr. Conyers’ selection of the Joint and Survivor Annuity, this pension benefit will be approximately $82,419.60 annually. Gerard Grace, Parks Service Tech II, Parks and Recreation Department was employed by the City on November 3, 2003, and his pension service credit is effective on that date. His pension will be effective June 1, 2024. Based on an average salary of approximately $47,071.51 over the past five years, the formula for computing regular pensions and Mr. Grace’s selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $22,970.64 annually. Timothy Kurtz, Construction Division Manager, Public Works Department, was employed by the City on March 22, 1998, and his pension service credit is effective on October 1, 1998. His pension will be effective December 1, 2024. Based on an average salary of approximately $105,861.34 over the past five years, the formula for computing regular pensions and Mr . Kurtz’s selection of the 100% Joint & Survivor Annuity, this pension benefit will be approximately $64,167.24 annually. Robert Lazzaro Jr, Police Officer, Police Department, was employed by the City on September 9, 2002, and his pension service credit is effective on that date. His pension will be effective June 1, 2024. Based on an average salary of approximately $94,009.04 over the past five years, the formula for computing regular pensions and Mr. Lazzaro’s selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $54,641.40 annually. James “Jim” McCulley, Gas Sales Division Manager, Gas Department, was employed by the City on July 11,1988, and his pension service credit is effective on May 13,1989. His pension will be effective May 1, 2024. Based on an average salary of approximately $98,291.32 over the past five years, the formula for computing regular pensions and Mr. McCulley’s selection of the 50% Joint and Survivor Annuity, this pension benefit will be approximately $87,799.80 annually. Barry Slack, Utilities Mechanic, Public Utilities Department, was employed by the City on June Page 1 City of Clearwater Printed on 8/5/2024 File Number: ID#24-0943 1, 2004, and his pension service credit is effective on that date. His pension will be effective July 1, 2024. Based on an average salary of approximately $42,150.08 over the past five years, the formula for computing regular pensions and Mr. Slack’s selection of the Single Life Annuity, this pension benefit will be approximately $23,192.28 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 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. Grace, Mr. Kurtz, Mr. McCulley, and Mr. Slack 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. Conyers and Mr. Lazzaro Jr have met the hazardous duty criteria. APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 2 City of Clearwater Printed on 8/5/2024 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0945 Agenda Date: 8/12/2024 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.4 SUBJECT/RECOMMENDATION: . Approve changes to the PAC Manual, Section IV: Eligibility for Disability Pension, regarding the Firefighter Cancer Presumption Law. SUMMARY: PAC approved changes to the PAC Manual in section IV: Eligibility for Disability Pension Firefighter cancer benefit: pursuant to Florida Statute § 112.1816(3)-(4), if a firefighter is found by the PAC to be permanently and totally disabled due to a diagnosis of cancer, or circumstances that arise out of the treatment of cancer, then the PAC must also find that said disability arose in the line of duty. APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 1 City of Clearwater Printed on 8/5/2024 PENSION ADVISORY COMMITTEE Policies and Procedures Manual TABLE OF CONTENTS Page Introduction 1 Section I Pension Advisory Committee Organization 2 Section II Powers and Duties of the Pension Advisory Committee 5 Section III Processing Normal Retirement ("Years of Service") Pension Requests 6 Section IV Processing Disability Pension Requests 8 Section V Pension Entitlement, Reexamination, and Recall from Disability 15 Section VI Vesting 18 Section VII Administrative Rules Governing Public Participation 20 1 Introduction to Pension Advisory Committee Policies and Procedures Manual Effective Date: January 1, 1996 Revision Date: September 8, 2016 Approved by PAC: October 13, 2016 Policy: The City of Clearwater Pension Advisory Committee (PAC) shall develop and maintain a Policies and Procedures Manual as a means of providing information to all parties interested in the Employees' Pension Plan and to guide the PAC in administering the Plan. Procedures: A. Purpose: This Manual contains statements of PAC policies and procedures. It is intended to serve as a reference document and working guide for PAC members in the conduct of their responsibilities and will help to assure uniformity of action by the PAC. It will also serve to assist City employees in understanding how the PAC functions and the various processes by which employees may apply for pension benefits. B. Procedures Manual, Revisions, and Supplements: Subject to approval of the Pension Plan Trustees, the PAC may establish rules and procedures as are necessary to administer the Plan. From time to time new policies or procedures may be required or existing policies or procedures may be amended. In such an instance, a new or revised PAC Policies and Procedures Manual will be prepared and issued, providing for an effective or revised date. C. Distribution: A copy of this Manual shall be provided to each member of the PAC, the Pension Plan Attorney, City Clerk, the Pension Trustees, the City Manager, Assistant City Managers, City Attorney, Human Resources Director, Finance Director, and Payroll Services Manager. A copy of this Manual shall be posted on the City’s Intranet site. A copy of this Manual shall be provided to the President of the bargaining unit for each Union representing members employed by the City of Clearwater. 2 Section I: Pension Advisory Committee--Organization Effective Date: January 1, 1996 Revision Date: November 14, 2019 Approved by PAC: January 9, 2020 Policy: The Pension Advisory Committee (PAC) shall be organized pursuant to provisions of the Code of Ordinances of the City of Clearwater governing the Employees' Pension Plan. Procedures: A. Members: The PAC shall consist of seven (7) members: three (3) active City employees who are participants in the Plan, three (3) City Council members or appointees, and one (1) resident of the City of Clearwater. (2.413(d)(1)) B. Election/Appointment Process: Members of the PAC representing the employees shall be elected by majority vote of the active employees of the City of Clearwater who are participants in the Pension Plan and who vote in a scheduled, announced election. (2.413(d)(2)) At the PAC meeting each March, the existing employee-elected Committee members shall appoint a five- person nominee group made up of employee Plan participants to conduct the election process with the assistance and in accordance with the written procedures of the Department of Official Records and Legislative Services. The group shall appoint a Chair and advise ORLS of the Chair’s name. Members of the PAC representing the City Council shall be appointed by a majority vote of the City Council. (2.413(d)(2)) The seventh member of the PAC shall be appointed by a majority vote of the other six (6) members of the PAC. (2.413(d)(2)) C. Terms of Office: Terms of office of the PAC members shall overlap as prescribed by the Pension Ordinance. Basic terms shall be two (2) years. (2.413(d)(3)) Any vacancy on the PAC shall be filled for the remainder of the term in the same manner as the original member who vacated the position. (2.413(d)(5)) The Department of Official Records and Legislative Services may provide necessary assistance to the employees for administration of elections to elect their designees. 3 D. PAC Meetings and Public Notice: The PAC shall meet at such times as it may designate and as may be required to carry out its responsibilities as defined by the provisions of the Pension Ordinance. Generally, such meetings of the PAC shall be scheduled for the second Thursday of every other month, provided, however, that the PAC may schedule special meetings as needed. Special meetings may also be called by the Chair of the PAC. The Human Resources Director will notify the PAC members should a monthly meeting not be required. Meetings will only be canceled if supported by a majority of the members. Appropriate public and employee notice of meetings of the PAC shall be provided and business of the PAC shall be conducted in compliance with provisions of Article I, Section 24 of the Florida Constitution and the State of Florida "Government-in-the-Sunshine Law," FS 286 and related statutes. E. PAC Chair Selection: At the 3rd meeting of the year, the PAC shall nominate and select by a simple majority vote members to serve as Chair and Vice Chair for the year. F. Voting: The Chair shall not make or second a motion. Each PAC member shall be entitled to one vote. Four affirmative votes shall be necessary for any decision by the PAC at any meeting {Section 2.413(d)(7)}. G. Financial Disclosure: PAC members, as provided by law, shall file the required State of Florida Financial Disclosure Statement pursuant to law along with any required City of Clearwater Financial Disclosure Statement. H. Prudent Person Rule: PAC members shall exercise their responsibilities with the care, skill, prudence and diligence that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a similar character and with similar aims under the circumstances then prevailing. I. For purposes of the business of the PAC, the Human Resources Director and staff of the Human Resources and Finance departments shall be designated as PAC support staff. J. Independent counsel shall serve as legal adviser to the PAC. K. In the event of a conflict of interest, a PAC member shall declare the conflict, abstain from voting on the matter, and file a memorandum of voting conflict with the City Clerk. L. The Human Resources Director, subject to approval of the City Manager, is authorized to utilize legal counsel to represent the City before the PAC. M. In certain contested benefit applications, including forfeitures and disability cases, it may be necessary to engage an attorney to act as an advocate on behalf of the Pension Fund. Appointment of the advocate shall be authorized by the PAC with the selection to be made by the PAC counsel. Where possible, the advocate shall be an attorney operating within the Clearwater/Tampa/Saint Petersburg/Sarasota area with expertise in dealing with public retirement plans. 4 Members of the PAC who wish to have the advocate pursue a particular course of inquiry shall make such request at a PAC meeting, who shall in turn present them to the advocate. The PAC counsel may, for the purposes of clarity, rephrase a request to address the legal or evidentiary issue presented, but shall not offer an opinion to the advocate regarding the request presented. The PAC counsel shall review the billing invoiced by the advocate to ensure any fees are consistent with the work performed. 5 Section II: Powers and Duties of the Pension Advisory Committee Effective Date: January 1, 1996 Revision Date: August 8, 2019 Approved by PAC: September 12, 2019 Policy: The Pension Advisory Committee (PAC) shall exercise the powers and duties as outlined in the City of Clearwater Employees’ Pension Plan Ordinance. Procedures: The PAC shall have the authority to: A. Arrange for the necessary physicians to pass upon all medical examinations required under the Pension Plan and review such physician's reports. The PAC may delegate responsibility for the ministerial part of these functions to an appropriate designee. (2.413(e)(1)a.) B. Establish, in conjunction with the City and medical consultants, the scope of medical exams and medical standards to be used for the purpose of determining the existence of pre-existing medical conditions and eligibility for disability pensions and to assist examining physicians in reaching conclusions and recommendations. Annually the PAC and the City shall review the scope of the medical exam which is used for such purposes and make such modifications, if any, as are deemed appropriate. C. Investigate and recommend to the Trustees, in conjunction with actuaries, such mortality/service and other tables needed to operate the Plan. (2.413(e)(1)b.) D. Make recommendations to the Trustees for improvements or changes to the Plan. (2.413(e)(1)c.) E. Receive all applications for pension benefits from employees and determine all facts necessary to establish the right of an applicant to Plan benefits. (2.413(e)(1)d.) City staff shall have the authority to process all benefit and other applications, which applications shall be ratified by the Pension Advisory Committee at their next meeting. The term "employee” shall not include persons hired by the City on a contractual basis or persons hired in regular part-time, emergency, seasonal, or provisional positions or persons hired in positions exempt from the City classified civil service system (except that if a person was already a Plan participant prior to promotion to an exempt position, such person shall continue to be an "employee" and Plan participant). F. Investigate and determine the eligibility of participants for disability pension consistent with provisions of the Pension Plan. (2.413(e)(1)f.) 6 G. Submit recommendations to the Trustees as to rules, procedures, forms, and general administrative procedures relating to PAC responsibilities, and for improvements or changes in the Plan. (2.413(e)(1)c.) 7 Section III: Processing Normal Retirement ("Years of Service") Pension Requests Effective Date: January 1, 1996 Revision Date: September 10, 2020 Approved by PAC: December 1, 2020 Policy: It shall be the policy of the Pension Advisory Committee (PAC) to review all requests for normal retirement ("years of service") pensions pursuant to the provisions of the Pension Ordinance and make recommendations to the Pension Plan Trustees. Procedures: A. Employees electing to retire consistent with the "Normal Retirement Benefit" eligibility provisions of the Pension Plan shall complete and submit the following documents to the support staff of the PAC: 1. Pension Entitlement Option Request Form: This form shall note that the request is for a regular pension based on years of service. This form must be filled out completely by the employee and must be notarized. If the employee is extending his/her retirement date as referenced in paragraph 3. below, the employee may submit all required paperwork in the pension application process but will not be required to designate a beneficiary, if applicable, until thirty (30) days prior to the effective date of the pension. 2. Resignation Form: Employees must submit a signed resignation indicating the date of resignation (retirement) as computed by the Human Resources Department in accordance with the employee's last day of work and election of any available option for use of applicable accrued leave time. 3. Other Forms: Such other forms as may be required by the City relating to the use of benefits in extending an employee's retirement date beyond the employee's last day of actual work. The use of benefits to extend the retirement date is generally based upon and applied consistent with the provisions of respective applicable employee collective bargaining agreements or manuals. B. PAC support staff shall review all documentation submitted by the employee in support of the employee’s request for normal retirement benefits and confirm eligibility of the employee for pension based on his/her years of service, age, or other applicable criteria and shall provide such documentation as necessary to the PAC as part of an agenda packet. 8 C. The PAC shall consider the appropriate documentation provided in support of the employee's request for a regular years of service pension based on the following eligibility requirements: 1. Non-Hazardous Duty Regular Pension (2.412) a. If pension entry date is prior to January 1, 2013: i. Twenty (20) years of pension creditable service and at least fifty-five (55) years of age. ii. Thirty (30) years of pension creditable service regardless of employee age. iii. Ten (10) years of pension creditable service and at least sixty-five (65) years of age. b. If pension entry date is on or after January 1, 2013: i. Twenty-five (25) years of pension creditable service and at least sixty (60) years of age. ii. Ten (10) years of pension creditable service and at least sixty-five (65) years of age. 2. Hazardous Duty Regular Pension (2.412) a. Twenty (20) years of pension creditable service in a hazardous duty designated job classification, regardless of employee age. b. Ten (10) years of pension creditable service in a hazardous duty designated job classification and at least fifty-five (55) years of age. Note: Hazardous duty pension eligibility is accrued only for creditable service in a hazardous duty position. An employee with other pension creditable service time in a non-hazardous duty position must accrue a full twenty (20) years of pension creditable service in a hazardous duty position to be eligible to retire under this provision. Hazardous duty positions shall be defined as full-time sworn and certified Police Officers and certified Firefighters as defined in the Pension Plan Ordinance and any other job class designated by the Trustees as hazardous duty. 3. Early Retirement--Hazardous Duty Only (2.417(3)) a. Ten (10) years of pension creditable service in a hazardous duty designated job classification and at least age fifty (50) with a corresponding 3% reduction in the amount of the pension benefit for every year or portion thereof below the age of fifty- five (55) upon retirement, to a maximum reduction of 15%. 9 D. Employees must elect the form in which their retirement benefits will be paid. No change to the option elected is permissible once an employee receives their first retirement benefit payment. 10 Section IV: Processing Disability Pension Requests Effective Date: January 1, 1996 Revision Date: July 11, 2024 Approved by PAC: December 1, 2020 Policy: It shall be the policy of the Pension Advisory Committee (PAC) to review in a thorough and impartial manner all requests for disability pensions to ensure that the employee receives an appropriate review and that the integrity of the Pension Plan and Pension Fund is protected. A copy of this policy shall be provided to each Plan participant who requests a disability pension. Eligibility for Disability Pension: A. Non-hazardous Duty Disability: A non-hazardous duty employee as defined under the Pension Plan shall be considered disabled for purposes of the Plan if the PAC determines based on the information available that the participant is disabled due to sickness or injury, such disability is likely to be continuous and permanent from a cause other than those listed in 2.418d(3), and such disability renders the participant unable to perform any useful, meaningful, and necessary work for the employer in an available position for which the participant is reasonably qualified or for which the participant may be reasonably trained to perform, with or without a reasonable accommodation. (2.418b) B. Police Officer/Firefighter Hazardous Duty Disability: A hazardous duty employee as defined under the Pension Plan shall be considered disabled for purposes of the Plan if the PAC determines based on the information available that the participant is totally and permanently disabled to the extent that he or she is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a police officer or firefighter respectively, with or without a reasonable accommodation. (2.418(2)a.) C. General Disability Exclusions: A participant shall not be eligible for disability pension when such participant's disability was occasioned primarily by the excessive or habitual use of drugs, intoxicants, or alcohol; or from an injury or disease sustained while willfully and illegally participating in fights, riots, or insurrections; or while committing a crime; or while serving in the armed forces; or while working for anyone other than the City; or from disability that results from willful, wanton, or gross negligence of the participant; or that occurred after employment with the City was terminated. (2.418d(3)) D. Pre-existing Injury/Impairment Exclusion: A participant who is not a Police Officer or Firefighter shall not be entitled to a disability benefit because of or due to the existence or aggravation of a specific injury, impairment, or other medical condition pre-existing the employee’s participation in the pension plan. (2.418(2)) E. Firefighter cancer benefit: pursuant to Florida Statute § 112.1816(3)-(4), if a firefighter is found by the PAC to be permanently and totally disabled due to a diagnosis of cancer, or circumstances that arise out of the treatment of cancer, then the PAC must also find that said disability arose in the line of duty. 11 Procedures: A. A participant requesting a disability pension (job-connected or non-job-connected) must first complete and submit the documents indicated in 1.and 2. below to the Human Resources Department. The application and documents must be filed by the employee, except where the employee has been deemed mentally incompetent, in which case the application may be filed by a guardian, relative, or other interested party who has appropriate legal authority to act for the participant. A disability application must be filed while an employee is still a participant in the Pension Plan. 1. Application for Disability Retirement: The Application Form provides for background information relating to the basis for the disability claim and includes a medical waiver and authorization for release of medical records. a. Participants shall attach to the Application Form copies of all medical records and other relevant information which forms the basis for the disability claim. The Application Form and attachments must document the following: i. The diagnosis by a licensed physician of an identifiable medical condition. ii. A deficiency in service with respect to performance, conduct, or attendance. iii. A relationship between the service deficiency and the medical condition such that the medical condition has caused the service deficiency. iv. The duration of the medical condition, both past and expected. v. The participant's inability to render useful and efficient service which arose during the course of current employment with the City. b. Attachments must include letters from at least two (2) licensed medical doctors. The letters required from medical doctors must: i. Be obtained from medical doctors (MD or DO) who are specialists in the area in which the disability exists (e.g. cardiologist for heart condition, etc.). ii. Not be obtained from doctors associated with each other in practice. iii. Not be obtained from a doctor or a doctor’s practice with which the employee or a member of the employee's immediate family or household is associated (e.g., through employment or marriage). 12 iv. Provide the following information: (a.) The specific nature of the injury or illness upon which the disability claim is based; (b.) The medical opinion of the doctor as to the permanency of the injury or illness; (c.) The medical opinion of the doctor as to whether or not improvement in the employee's condition and/or ability to work is expected to occur; (d.) The extent to which the injury or illness renders the employee unable to perform any useful, meaningful, and necessary work for the City by referring to essential job functions which are limited or precluded with respect to the employee’s job performance and essential job functions which the employee can perform with or without a reasonable accommodation (e.g., can lift, can't lift; can drive, can't drive; etc.). Note: The PAC may review and consider findings and recommendations of licensed chiropractors, physical therapists, and other medical related practitioners; however, appropriate weight shall be given to such findings and recommendations. c. Copies of the Application/medical release form will be submitted, as necessary, to physicians and other medical personnel in custody of medical and other records relating to the participant which are deemed relevant to the participant's request for disability pension for the purpose of being provided as part of the background information for the PAC's review. 2. Independent Medical Examination (IME)/Functional Capacity Evaluation (FCE) Consent Form: This form provides for the employee’s consent to an Independent Medical Examination/Functional Capacity Evaluation, including necessary diagnostic tests as may be required by the IME/FCE physician(s), and must be notarized. (2.418(4)) The IME/FCE shall be conducted by one or more specialists in the field of the employee's alleged disability. A copy of this form shall be provided to the IME/FCE physician(s) as needed B. Upon the receipt of the items described in Item A. above, the application and attachments will be forwarded to the outside counsel representing the PAC. C. The counsel representing the PAC shall forward one or more sets of interrogatories to the applicant. The interrogatories shall be returned to the PAC attorney upon completion. The responses shall be notarized. The original set of interrogatories may be expanded and additional interrogatories required at any time based on the review of the original set of interrogatories, IME/FCE results or other medical information, or for other reasonable cause as determined by the PAC attorney. 13 D. Upon receipt of the interrogatory responses, counsel shall request copies of all medical records from doctors and institutions listed in the interrogatories. Additionally, counsel will request copies of the applicant’s personnel records and workers’ compensation records, if applicable. E. Once all the records are received, counsel will schedule the applicant for an IME/FCE. The IME/FCE physician(s) may request that the applicant undergo specialized diagnostic tests as deemed necessary to reach a conclusion; however, the physician shall give due consideration to not repeating invasive type tests that have already been undergone by the applicant, provided the results of such tests are available and, in the judgment of the physician, current. The physician may reevaluate diagnostic tests or have them reevaluated by other specialists as deemed appropriate. The cost of the IME/FCE and any specialized tests required as a part thereof shall be borne by the Pension Fund. F. Upon receipt of the IME/FCE report(s) from the examining professionals, the PAC staff will provide the application and related forms, all records of treating physicians, relevant Workers' Compensation records, the IME/FCE, answers to interrogatories, deposition transcripts, and all other relevant documents to the PAC for inclusion in the pension application file. The PAC shall review each application and determine if the claim meets the criteria for awarding of a pension benefit. The PAC will then set a preliminary disability hearing date to review and rule on the application. Notice of the hearing shall be given to the applicant. The PAC may determine that the applicant is entitled to a disability benefit at the preliminary hearing. The preliminary hearing shall be limited to a review of the application, interrogatories, medical records and other relevant documents. The applicant and/or his or her representative may make a brief presentation. There shall be no testimony from witnesses at the preliminary hearing. If the PAC members determine that it is unclear as to whether disability benefits should be awarded at the preliminary hearing, the PAC may set the matter for a formal hearing. If this occurs, outside counsel may be retained to serve as the advocate for the pension plan and the PAC will provide all of the records to said counsel, as well as to the applicant and/or the applicant’s representative, if applicable. The pension plan advocate and applicant’s representative shall advise when the matter is ready to be set for formal hearing. The PAC shall schedule hearings in a timely manner, considering, however, the need for a fully developed record for PAC review. The costs of any discovery requested by the PAC, the appearance of witnesses at the hearing, and the making of a verbatim record of the proceedings shall be the responsibility of the applicant. The hearing shall generally occur at the next regularly scheduled meeting of the PAC following receipt of the full record; provided, however, that such meeting shall be scheduled at least ten (10) workdays after receipt of all required information. This will allow time for staff to provide copies of and/or electronic access to all materials to the PAC members for their review prior to the scheduled meeting. The PAC, at its discretion, may schedule a special meeting to conduct the hearing. 14 G. The applicant or his/her representative or the PAC may use the deposition procedure in order to obtain discovery and/or to perpetuate testimony. All depositions shall be completed no later than fifteen (15) days prior to the date of the PAC hearing. Such depositions shall be conducted generally pursuant to the provisions of the Florida Rules of Civil Procedure, with the exception that process is not available through the PAC to compel the attendance of witnesses and review by the PAC of questions which a witness declines to answer. H. Each participant who makes application for a disability pension, or the representative thereof, shall be entitled to a hearing before the PAC and to make a presentation to the PAC. The burden of proof shall be on the applicant to show entitlement to disability pension benefits. If the applicant is to be represented by legal counsel, such attorney must file a Notice of Appearance with the Pension Plan attorney not less than ten (10) days preceding the scheduled hearing. All hearings will be conducted in public in accordance with Florida Statutes regarding public meetings. 1. Copies of all documents to be offered into evidence by the applicant and by the pension plan advocate at the hearing, including depositions and a complete witness list with names and addresses of witnesses expected to be called, shall be furnished to the PAC by the parties at least ten (10) days prior to the hearing. Documents not furnished to the PAC within the prescribed time limit may be excluded from evidence at the hearing if a reasonable explanation is not provided for the delay in providing the documents. 2. Testimony at the hearing may be offered in the form of depositions. Depositions furnished to the PAC by the parties at least ten (10) days prior to the hearing will become a part of the record before the PAC at the hearing and need not be read into the record; however, the parties or their representatives may read or refer to depositions in closing arguments. 3. The file maintained by the PAC, including but not limited to the medical reports and other information contained therein, shall become part of the record before the PAC at the hearing. 4. Although the hearing shall not be controlled by strict rules of evidence and procedure, the PAC shall attempt to limit evidence or testimony which is hearsay, irrelevant, repetitive, unduly cumulative, or unfounded in law or fact. The Chair, any PAC member, the applicant, or the Plan advocate may raise an objection to the proposed evidence on the bases listed above. The Chair shall rule on such matters and may request advice from the Pension Plan counsel as to the propriety and admissibility of evidence presented at the hearing. The Chair's rulings shall stand unless overturned by a majority of the PAC members present. Statements of counsel or agents/representatives of the applicant or the Pension Plan shall be considered only as argument and not as testimony, unless based on actual, personal knowledge of the matters which are the subject of the statements. 15 Should an applicant requesting a hearing decide to appeal any decision made by the PAC with respect to any matter considered at such hearing, the applicant requesting a hearing may require a record of the proceedings and to ensure that a verbatim record of the proceedings is made. The applicant requesting a hearing will be responsible for obtaining a court reporter or otherwise making a record of the proceedings before the PAC and for paying the costs thereof. 5. Testimony of witnesses at the hearing shall be under oath or affirmation. Affidavits shall be admissible. Generally, such time limits shall be: Opening statement by Applicant’s Representative (5 minute maximum) Opening statement by Pension Plan Advocate (5 minute maximum) Presentation of evidence by Applicant’s Representative (30 minute maximum) (Cross examination, redirect examination, questions by PAC members) Presentation of evidence by Pension Plan Advocate (30 minute maximum) (Cross examination, redirect examination, questions by PAC members) Rebuttal by Applicant’s Representative Closing statement by Applicant’s Representative (5 minute maximum) Closing statement by Pension Plan Advocate (5 minute maximum) Comments by the Public (3 minutes per person maximum) Discussion and vote by the PAC The PAC may amend time limits during the hearing as it deems necessary in the interest of fairness and due process. The PAC may adjourn the hearing to a later date if it deems that such is necessary. 6. At the conclusion of the presentations by the applicant and the Plan advocate, the PAC shall make a determination as to the request for disability pension. The PAC may approve or reject the disability pension based on its review. In reaching its decision, the PAC may consider only evidence presented at the hearing or in the PAC’s applicant case file and shall base its decision on the competent substantial evidence of record. If the PAC is to determine that the applicant is entitled to a disability pension, it shall so determine consistent with the Pension Ordinance provisions in 2.418: a. The applicant is disabled due to sickness or injury; and b. Such disability is likely to be continuous and permanent; and c. Such disability renders the applicant unable to perform any useful, meaningful, and necessary work for the City in an available position for which the applicant is reasonably qualified or for which the applicant may be reasonably trained to perform or, if a police officer or firefighter, the applicant is unable to perform the essential functions of a police officer or firefighter, with or without a reasonable accommodation; and 16 d. With respect to the availability of alternate positions to which the applicant may be assigned by the City for the purpose of performing useful, meaningful, and necessary work, the City shall be provided the opportunity to make available such position(s) for the applicant. Additionally, prior to the approval of a disability pension, the PAC shall determine that the disability is not the result of an injury, impairment, or medical condition pre- existing the applicant’s participation in the Pension Plan; that it is not inconsistent with the forfeiture of benefits provisions of Section 2.423 of City Ordinance 8333-12; and that the disability was not occasioned primarily by factors referenced in Section 2.418(3) of such Ordinance, such as excessive or habitual use of any drugs, intoxicants, or alcohol. For job-connected disability applications, the PAC shall make the further determination that performance of the job is the factual causation of the applicant’s disability. I. During the pendency of the application process, an applicant who otherwise meets normal retirement eligibility, may commence receipt of his/her normal retirement benefits pending final resolution of their disability application. J. The decisions of the PAC regarding applications for disability pension benefits shall be final and binding. The PAC shall enter a final order setting forth its findings and conclusions, and a copy of the order shall be provided to the applicant. Judicial review of decisions of the PAC shall be sought by the filing of a timely petition for writ of certiorari pursuant to Florida Rule of Civil Procedure 1.630 in the Circuit Court for the Sixth Judicial District. K. No person shall interrupt or disrupt an individual who is addressing the Committee or use loud, offensive, disorderly, threatening, insulting, abusive, or foul language, or behave in an offensive, disorderly, threatening, abusive, or insulting manner, or make personal, impertinent, slanderous, or profane remarks during the meeting. To maintain decorum and order, individuals who disturb the conduct of meetings, or who refuse to conform their discussion to items set in the agenda, may be ejected by the Chair or presiding officer. All remarks shall be addressed to the Committee as a body and not to any member thereof. No person other than a Committee member or the person having the floor shall be permitted to enter into any discussion, without the permission of the Chair or presiding officer. All questions to the Committee shall be directed through the Chair or presiding officer. 17 Section V Pension Entitlement, Reexamination and Recall from Disability Effective Date: January 1, 1997 Revision Date: September 8, 2016 Approved by PAC: October 13, 2016 Policy: It shall be the policy of the PAC to periodically determine the continuing eligibility of all disability pensioners for pension disability benefits and to periodically review physical and medical information relating to the status of each pensioner awarded a disability pension on or after January 1, 1996, to determine if any such pensioner may be returned to employment with the City in an available position for which the pensioner is reasonably qualified, and, if any such pensioner is reasonably qualified to return to employment, to then require such return subject to forfeiture of disability benefits. (2.418(4)b1) Procedures: Pension Entitlement Review and Re-examination Procedure: A. On an annual basis an Annual Certification of Pension Entitlement Form shall be mailed by staff of the PAC to each plan participant. B. The pensioner shall be required to complete and return the sworn Annual Certification of Pension Entitlement Form to the PAC within sixty (60) days of the mailing date of such affidavit. C. If the Annual Certification of Pension Entitlement Form is not returned within sixty (60) days, a second mailing shall be made advising the pensioner that he/she shall be allowed an additional fifteen (15) days to return the form or the pension benefits will be discontinued until the form is received. Such notice shall be sent via certified mail. D. The Annual Certification of Pension Entitlement Form shall include a disability section for the purpose of indicating the status of the pensioner’s disability and his/her current employment status, if applicable. E. The PAC’s administrative staff shall review the completed certification returned by each pensioner and shall determine whether eligibility requirements for continuation of the pension have been met. If the requirements have been met, distribution of pension benefits shall continue. F. If after review of the certification it is determined that standards relating to continuing eligibility for any pension benefits have not been met or are otherwise in question, the PAC shall advise said pensioner(s) of such determination. If the issue of concern is the pensioner's medical status, the Committee shall require that the pensioner submit to an Independent Medical Examination (IME) by a physician designated by the PAC and at a time and date set by the PAC or staff. 18 G. The cost of any IME required by these procedures or otherwise by the PAC shall be paid for by the Pension Fund. IME physician(s) who perform Independent Medical Examinations may request that the pensioner undergo specialized diagnostic tests as deemed necessary to reach a conclusion as to the continued existence of the disability; however, the physician(s) shall give due consideration to not repeating invasive type tests that have already been undergone by the employee, provided the results of such tests are available and, in the judgment of the IME physician(s), current. The IME physician(s) may reevaluate diagnostic tests or have them reevaluated by other specialists as deemed appropriate. H. If the PAC after its review as provided in G. above believes the entitlement to pension benefits may be in question, whether because of possible recovery of the pensioner from the disability, employment by the pensioner in a position similar to that previously held with the City, or other reason as defined in the Pension Plan Ordinance, it shall schedule a hearing on the issue of the pensioner's eligibility for continuance of the pension benefit. Such hearing shall be generally consistent with the provisions outlined in the PAC Policies and Procedures Manual in the section titled "Processing Disability Pension Requests." Failure to Comply with Pension Entitlement Requirements A. If a disability pensioner, regardless of the date of award of his/her pension, engages in employment with another employer in an occupation or line of work similar to the occupation or line of work that resulted in the pensioner being deemed eligible for a disability benefit, the pensioner shall forfeit the right to the disability benefit as provided by the Pension Ordinance. B. If a non-hazardous duty disability pensioner who was awarded a disability pension on or after January 1, 1996, is no longer disabled or is deemed capable of returning to employment with the City in a position for which he/she is able to perform any useful, meaningful, and necessary work for the City with or without a reasonable accommodation and fails to return to employment in such a position when available and upon the request of the Pension Advisory Committee, he/she shall forfeit the right to the disability benefit. C. If a sworn police officer or firefighter hazardous duty disability pensioner who was awarded a disability pension between January 1, 1996, and December 31, 1999, is no longer disabled or is deemed capable of returning to employment with the City in a position for which he/she is able to perform any useful, meaningful, and necessary work for the City with or without a reasonable accommodation and fails to return to employment in such a position when available and upon the request of the Pension Advisory Committee, he/she shall forfeit the right to the disability benefit. D. If a sworn police officer or firefighter hazardous duty disability pensioner who was awarded a disability pension after December 31, 1999, is no longer disabled or is deemed capable of returning to employment as a sworn Police Officer or Firefighter with or without a reasonable accommodation and fails to return to employment in such a position when available and upon the request of the Pension Advisory Committee, he/she shall forfeit the right to the disability benefit. 19 E. Failure to comply with any requirement to undergo an Independent Medical Exam as required by the PAC or such other process as the Committee determines necessary to establish whether a disability continues to exist may result in appropriate action being recommended by the PAC to seek withholding of or forfeiture of the disability benefit. Note: The Plan is specific in relating to benefit forfeiture where the disability no longer exists and where the employee accepts employment with another employer in the same line of work as that which he/she performed for the City, but caution is recommended in proceeding with withholding of or forfeiture of a pension for any other cause, e.g. failing to comply with procedural requirements. Guidance should be sought from the Plan legal counsel. Call Back: A. The City Human Resources Department shall, on an annual basis and except as hereinafter noted, review the disability and employment status of disability pensioners who were awarded disability pension on or after January 1, 1996, and shall compare such disability and employment status with available positions that may allow for such pensioners to be returned to work where appropriate. B. Recommendations shall be provided by staff to the PAC as to those instances wherein a pensioner may be deemed employable in an available position for which the pensioner is reasonably qualified or for which he/she may be reasonably trained to perform. C. The PAC shall thereupon schedule a hearing on the issue of returning the pensioner to his/her former position or to some other available position. Such hearing shall be generally consistent with the provisions outlined in the PAC Policies and Procedures Manual in the Section titled "Processing Disability Pension Requests.” D. Subsequent to the hearing process, if it is determined by the PAC, based on the IME and other documentation, that the pensioner's disability has ceased to exist or if the pensioner may be employed in an available position for which the pensioner is reasonably qualified or may be reasonable trained to perform, the PAC shall recommend to the Trustees that the pensioner be required to return to employment with the City. E. In the event the pensioner is no longer disabled or is deemed capable of returning to employment with the City and does not return to such employment when directed to do so by the Trustees, the pensioner shall forfeit the right to a pension. F. If the pensioner is returned to work, he/she shall be returned at the base rate of pay he/she was last earning while an active employee. Other conditions of employment shall be applied in the same manner as that for an employee who has withdrawn his/her resignation and returned to work. Time during which the individual received pension payments shall not be credited towards future pension credited service time. 20 Section VI: Vesting Effective Date: May 1, 1998 Revision Date: September 8, 2016 Approved by PAC: October 13, 2016 Policy: It shall be the policy of the Pension Advisory Committee (PAC) and of the Pension Trustees that Plan Participants who have earned ten (10) or more years of continuous pension service credit and who by Plan provisions are vested in the Plan shall be provided with a "Request for Refund of Employee's Pension Contributions" form, the related tax notice as required by the IRS, and an "Application for Vested Rights Pension" form, within a reasonable period of time from the date of separation from employment. The former Participant shall be given an additional period of time in which to return their selected form. If no form is submitted within this timeline, the Participant’s contributions will remain with the plan and the Participant will be treated as if he/she vested his/her interest. (2.412) If an employee is not vested in the plan because he/she has earned less than ten (10) years of pension service credit and said employee separates from employment with the City, the Payroll Division will provide a “Request for Refund of Employee’s Pension Contributions” form, the related tax notice as required by the IRS, and in the case of hazardous duty Participants, a “Request to Freeze Pension” form. The City’s Payroll Division shall be authorized to process a refund payment to the former Participant in accordance with IRS guidelines and the procedures described below. Florida Statutes 175.032(6)(b), 185.002(7)(b) Procedures: A. A Participant having a vested pension benefit right based on having earned ten (10) or more years of pension service credit who is separating from the Plan for a reason other than for a regular pension (years of service retirement), a disability pension, or a death benefit must submit a request in writing to either vest his/her pension rights or receive a return of his/her contributions to the Plan. B. A Participant shall complete either an "Application for Vested Rights Pension" form or a "Request for Refund of Employee's Pension Contributions" form or, in the case of hazardous duty participants not otherwise eligible to vest, a “Request to Freeze Pension” whichever is consistent with the employee's selection. C. Upon receipt, the Application for Vested Rights Pension form shall be forwarded to the PAC and Trustees for approval. The former Participant shall not be required to select a pension distribution option at the time of submitting the application form; however, the former Participant shall be notified at least thirty (30) days prior to the effective date of his/her distribution that he/she shall be required to select a pension distribution option. Notice of the former Participant's pension distribution option selection must be in writing. 21 D. A former Participant who has vested or frozen his/her pension benefit pursuant to the above procedures may, prior to the commencement of distribution of benefits, request, in writing, that the vested pension benefit be voided and that he/she receive a return of his/her contributions to the Plan. If the pension was vested on or after January 1, 1996, the former Participant shall receive a return of his/her contributions plus five percent (5%) simple interest. If the vesting occurred prior to January 1, 1996, the former Participant shall receive a return of his/her contributions without interest. E. If a former Participant is not eligible for freezing or vesting, and does not submit, in writing, a request for a return of contributions within a reasonable period of time after receiving the aforementioned forms, the Payroll Division shall be authorized to process a refund of the contributions in accordance with IRS guidelines. F. A Participant who terminates employment prior to the early retirement date or normal retirement date and who elects to receive a return of his/her pension contributions, with or without interest, forfeits his or her interest in the accrued pension benefit upon making the election pursuant to Code Section 2.419(3). G. A hazardous duty participant who opts to freeze his/her pension at the time of separation, has less than ten (10) years of credited service, and who does not return to eligible employment within five years, shall receive a return of contributions. Payroll Division will provide a “Request for Refund of Employee’s Pension Contributions” form and the related tax notice as required by the IRS. If a former Participant does not submit a written request for a return of contributions within a reasonable period of time, the City’s Payroll Division shall be authorized to process a refund payment to the former Participant in accordance with IRS guidelines. H. A Participant who terminates employment prior to his/her early or normal retirement date and receives a distribution of his/her contributions and therefore has no interest in the plan, may be eligible to regain said interest upon re-employment and repayment in accordance with Code Sections 2.414 and 2.419. 22 Section VII: Administrative Rules Governing Public Participation Effective Date: January 1, 2013 Revision Date: September 8, 2016 Approved by PAC: October 13, 2016 PENSION ADVISORY COMMITTEE CITY OF CLEARWATER EMPLOYEES PENSION FUND ADMINISTRATIVE RULES GOVERNING PUBLIC PARTICIPATION Administrative Rules Governing Public Participation: (a) Regular meetings. Public comment shall be placed on each agenda at the beginning of each scheduled meeting, unless the Chair or presiding officer decides to deviate from the meeting agenda on a case by case basis. (b) Special meetings. Public comments at special meetings shall be limited only to the items and matters referred to on the agenda for such special meeting. The Chair or presiding officer may disallow any and all public comments on matters not specifically referred to on the agenda for a special meeting. (c) Order of business for a regular meeting shall ordinarily be: 1. Call to order 2. Minutes of previous meetings 3. Citizens to be heard regarding items not on agenda. Limit to 15 minutes Each speaker will be asked to give their name and address and to limit their comments to a maximum of three minutes. The Committee, by a majority vote, may authorize the extension of time for public discussion until a “time certain.” In the event that members of the public are excluded from speaking due to time limitations, such members of the public shall be entitled to address the Committee at the next regular meeting. 4. New business items A. Recommend approval of new hires for acceptance into Pension Plan B. Recommend approval of employee request(s) to vest pensions C. Recommend approval of employee request(s) for regular pension D. Continue formal hearing for disability pension E. Review and action on survivor/beneficiary request for disability pension F. Formal hearing for employee request for disability pension G. Informal hearing for employee request for disability pension H. Election of officers (annually in April) 23 5. Director’s report 6. Committee members to be heard 7. Adjourn (d) Procedure for persons wanting to speak. Members of the public who wish to speak under public discussion for either a regular or special meeting shall be asked to give their name and address. Members of the public who wish to speak on items on the agenda will be provided the opportunity to speak prior to the vote. (e) Time limitation. Each speaker will limit their comments to a maximum of (3) three minutes. Public comments in support or opposition of items before the PAC shall be limited to a total of 60 minutes, which can be extended upon the PAC approval. Unless otherwise specified, persons speaking before the PAC shall be limited to three minutes per speaker. No person shall speak more than once on the same subject at the same meeting unless granted permission by the PAC. When time limits are set for speakers, unused time cannot be passed from one speaker to another. Extensions of time limits can be given if approved by the Chair. (f) Decorum. No person shall interrupt or disrupt an individual who is addressing the Committee or use loud, offensive, disorderly, threatening, insulting, abusive, or foul language, or behave in an offensive, disorderly, threatening, abusive, or insulting manner, or make personal, impertinent, slanderous, or profane remarks during the meeting. To maintain decorum and order, individuals who disturb the conduct of meetings, or who refuse to conform their discussion to items set in the agenda, may be ejected by the Chair or presiding officer. All remarks shall be addressed to the Committee as a body and not to any member thereof. No person other than a Committee member or the person having the floor shall be permitted to enter into any discussion, without the permission of the Chair or presiding officer. All questions to the Committee shall be directed through the Chair or presiding officer. (g) Scope. These rules shall not apply to any meeting that is exempt from Section 286.011, Florida Statutes, or to any meeting where the Committee is acting in a quasi-judicial capacity.