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11/14/1996 PENSION ADVISORY COMMITTEE CITY OF CLEARWATER November 14, 1996 Present: Rita Garvey Chair/Mayor J. B. Johnson Vice Chair/Commissioner Robert Clark Committee Member/Commissioner Pat Greer Committee Member Dick Fitzgerald Committee Member Pat Shepler Committee Member Leslie Dougall-Sides Assistant City Attorney Michael Laursen Human Resources Director Patricia O. Sullivan Board Reporter Absent: Richard Breest Committee Member The Chair called the meeting to order at 9:00 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. ITEM #2 - Approval of Minutes Member Clark moved to approve the minutes of the regular meeting of October 10, 1996, as recorded and submitted in written summation to each member. The motion was duly seconded and carried unanimously. ITEM #3 - Employees to be Heard - None. ITEM #4 - Action Items a.) Review and Action on Employee Requests for Years of Service Pension - None. b) Approval of New Hires as Pension Plan Members Human Resources Director Mike Laursen said he had reviewed all physician recommendations and reported all listed new hires meet Pension Plan criteria. Member Johnson moved to accept the following employees into membership in the Pension Plan: Date of Pension Employment Elig. Date. John Schodtler, Customer Svcs Rep Central Permitting Dept. 10/28/96 10/28/96 Yvonne Reyniers, Staff Assistant II General Services Dept. 11/04/96 11/04/96 James E. McBride, Police Recruit II Police Department 09/30/96 09/30/96 Dave Shenk, Police Recruit II Police Department 09/30/96 09/30/96 Michael Duff, Mechanic II General Services Dept. 09/30/96 09/30/96 Larry K. Jacoby, Police Recruit II Police Department 09/30/96 09/30/96 Rodger Gaston, Police Recruit II Police Department 09/30/96 09/30/96 Dan Dede, Police Recruit II Police Department 09/30/96 09/30/96 Mark Murray, Police Recruit II Police Department 09/30/96 09/30/96 Claudette Pascoe, Staff Assistant II General Services Dept. 09/30/96 09/30/96 Jack DeShazo, Maintenance Worker I Solid Waste Department 09/16/96 09/16/96 Deborah Jensen, Equipment Oper. I Parks & Recreation Dept 10/14/96 10/14/96 Patrick Davis, Equipment Operator I Parks & Recreation Dept 10/14/96 10/14/96 Rory A. Brodil, Maintenance Worker II Parks & Recreation Dept 10/14/96 10/14/96 Rose Castilla, Maintenance Worker II Parks & Recreation Dept 10/14/96 10/14/96 Travis Booker, Custodial Worker Library 10/17/96 10/17/96 Cameron Hill, Firefighter Fire Department 10/14/96 10/14/96 Jeanette Terry, Staff Assistant II Economic Development 09/16/96 09/16/96 Mahshid Arasteh, Engineer III Engineering Department 09/16/96 09/16/96 David Dalton, Police Recruit II Police Department 09/30/96 09/30/96 Lynette Counts, Police Recruit II Police Department 03/18/96 09/30/96 The motion was duly seconded carried unanimously. ITEM #5 - Pending/New Business a) Discussion of draft of periodic examination and call-back procedures Mr. Laursen distributed a revision of the Pension Entitlement Review and Re-examination Procedure draft. In reference to paragraph 3, it was recommended the paragraph state the PAC (Pension Advisory Committee) only accepts medical or osteopathic doctor opinions. Mr. Laursen said in the draft, staff proposes to send to those receiving disability pensions, annual forms, including a medical report form to be completed by a medical doctor regarding related disability conditions and employment status. Second notices are sent to those who do not reply within 45 days. Procedures are designed to be fair and allow due process. The PAC will review these forms and determine if IMEs (Independent Medical Examination) are in order should medical reports be vague, for example. The ultimate decision will be based on IME results and occupational therapy opinion. If an IME confirms someone is no longer disabled, the PAC will make recommendations to the Pension Trustees regarding call-backs. Those who are subject to call-back have the right to appeal their cases before the PAC prior to being directed to return to work. The PAC can determine some disabilities are permanent and exempt them from annual medical review. Mr. Laursen said the Pension Plan contemplates calling back disabled employees to positions other than their original classification. Quarterly, staff will review those whose disabilities were determined by the PAC after January 1, 1996. Staff will compare medical and occupational therapy information regarding pensioners with City job openings, with the intent of filling City positions from the disabled roles when possible. Staff will forward employment recommendations to the PAC. It was recommended the PAC schedule IMEs prior to ordering disabled employees back to work. The Human Resource Department will analyze open positions quarterly and consider the urgency of filling these positions. Staff may propose hiring temporary employees to hold a position open until information from the formal quarterly review can be submitted to the PAC. The City Manager will make the final decision that a position should be filled immediately or can wait for the call-back process. It was noted the call-back process can be delayed by appeals. A reference was made to special restrictions on call-backs of disabled former Fire Department personnel. The Pension Plan designates that five positions will be available in the bargaining unit for disabled firefighters. It was suggested that sixth and future call-backs also be assigned public safety positions as disabled firefighters forced to work in other jobs could lose their disability and firefighter certification. It was noted this issue is a subject for union bargaining. In response to a question, Mr. Laursen said nothing precludes a call-back from being assigned a higher paying position. According to the ordinance, the called-back employee will experience no loss of base pay but the Plan does not address increases in pay. Member Shepler moved to continue discussion of the Pension Entitlement Review and Re-examination Procedure draft until the December 12, 1996, meeting. The motion was duly seconded and carried unanimously. January 1997 PAC meeting Mr. Laursen reported the January 9, 1997, PAC meeting is scheduled on the same day as an evening City Commission meeting. Consensus was that it did not pose a conflict. Update re tax implications of buy-backs Mr. Laursen said the Legal and Payroll departments had indicated no staff member is competent to address the tax implications of buy-backs. As employees are responsible for considering their personal tax implications, it was felt the PAC should not hire a tax attorney to address this issue. Assistant City Attorney Leslie Dougall-Sides stated an attorney's opinion probably would include an addendum directing the employee to contact a tax counselor individually. Change of meeting location Due to construction work planned for City Hall, Mr. Laursen reported the PAC is scheduled to meet in the Human Resources Conference Room in the Municipal Services Building from December 1996 through April 1997. The agenda will reflect this change. ITEM #7 - Director's Reports a) Status of Pension Buy Back Requests Mr. Laursen reviewed Pension buy-back requests. Regarding employees requesting to buy-back Pension service time and within PAC parameters: 1) Donagan - on May 23, 1996, notified actuarial value for 9.4 years service was $247,854. On July 31, 1996, employee indicated wish to pursue buy-back subject to current age discrimination lawsuit with City; 2) Krieger - on May 23, 1996, notified actuarial value for 3.9 years service was $76,063. On August 18, 1996, employee formally declined to pursue buy-back and expressed concern regarding high cost and that 20% of his money remains in the fund; 3) G. Smith - on June 6, 1996, notified actuarial value for 2.0 years service was $41,709. On August 6, 1996, employee formally declined to pursue buy-back; 4) Motley - on June 6, 1996, notified actuarial value for 4.0 years service was $62,939. On August 16, 1996, employee formally declined to pursue buy-back; 5) Lovett - on July 23, 1996, notified actuarial value for 2.0 years service was $40,183. On August 21, 1996, employee indicated wish to pursue buy-back. On September 19, 1996, employee appeared before PAC, requesting an installment repayment plan for his buy-back. The PAC voted to require lump sum payments for all buy-back contributions; 6) Verhoeven - on July 17, 1996, notified actuarial value for 3.0 years service was $147,621. Thirty days have elapsed with no response.; 7) Marotta - on September 17, 1996, notified actuarial value for 3.0 years service was $65,719. Thirty days have elapsed with no response; 8) Summarell - on September 17, 1996, notified actuarial value for 15.0 years of service was $79,949. On September 24, 1996, employee formally declined to pursue buy-back; and 9) McCoy - on September 17, 1996, notified actuarial value for 7.0 years service was $71,100. Thirty days have elapsed with no response. Regarding employees requesting to buy-back Pension service time outside PAC parameters: 1) Charles Selby; 2) Ray Kaval; 3) Tom Taggart; 4) Tom Hackett; 5) Richard Berry; 6) Rosalie Backus; 7) Robert Maran; and 8) Dan Carpenter. An August 16, 1996, memorandum advised these applicants that their requests were outside PAC parameters and did not qualify for buy-backs. On October 10, 1996, Mr. Carpenter submitted a request to the PAC to reconsider. The item was continued with the understanding that an actuary computation of the buy-back would be performed. While Mr. Carpenter had received a $3,315.72 refund when he resigned, the actuarial value was determined to be $2,135. The Pension Plan requires a payback to be the greater: a) full amount previously distributed plus interest at rate of 5% per annum from distribution date to repayment date or b) actuarial present value of accrued benefit previously forfeited. Informational Item Mr. Laursen reported a rumor that a disabled pensioner has accepted a canine officer job with the U.S. Customs department in a position similar to one the pensioner previously held. The pensioner has 10 days to reply to staff's letter that included a pension entitlement form. ITEM #8 - Adjournment The meeting adjourned at 9:35 a.m.