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08/14/1997 PENSION ADVISORY COMMITTEE CITY OF CLEARWATER August 14, 1997 Present: Rita Garvey Chair/Mayor J. B. Johnson Vice Chair/Commissioner Robert Clark Committee Member/Commissioner Pat Greer Committee Member Dick Fitzgerald Committee Member Leslie Dougall-Sides Assistant City Attorney Michael Laursen Human Resources Director Patricia O. Sullivan Board Reporter Absent: Pat Shepler Committee Member John Scacca 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 Fitzgerald referred to page 8, paragraph 5, sentence 2 of the June 12, 1997, minutes. The sentence should read “. . . and suggested contemplating independent counsel when similar cases are considered.” Member Greer moved to approve the minutes of the regular meeting of June 12, 1997, as amended, and the July 10, 1997, minutes as recorded and submitted in written summation to each board 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 1) Paul E. Reese, Jr. - Police Sergeant, Police Department - hazardous duty provision 2) Robert J. Bekker - Police Lieutenant, Police Department - hazardous duty provision 3) David G. Hawkins - Fire District Chief, Fire Department - hazardous duty provision 4) Willie Marcus - Maintenance Worker I, Public Services Department Member Johnson moved to approve Years of Service Pensions for Paul E. Reese, Jr., Robert J. Bekker, David G. Hawkins, and Willie Marcus. The motion was duly seconded and carried unanimously. b) Review and Action on Employee Request to Vest Pension 1) David C. Watson - Police Officer, Police Department Human Resources Director Michael Laursen said Police Officer David Watson has resigned after 14 ½ years of service and has requested vesting his pension. It was questioned why the PAC (Pension Advisory Committee) acts on this type of request. Assistant City Attorney Leslie Dougall-Sides said language in the Pension Plan suggests vesting is automatic. This action relates to necessary paperwork. Mr. Laursen stated employees who resign after 10 years of service but before retirement can vest their pension or receive a lump sum, consisting of their contributions to the Pension Plan plus 5% interest. Payroll Services needs to record Vested Pensions and take certain steps when payment begins. The department is reviewing files for employees who resigned without formally choosing an alternative. It was recommended staff develop a procedure to address this issue. It was suggested the City contact qualified employees within 30 to 60 days of their resignation. Mr. Laursen said, depending on the ordinance’s legal language, an automatic policy could either vest employees or send them a check. It was recommended this issue be incorporated in exit procedures under development. It was felt a procedure should be instituted now to address future resignations. Ms. Dougall-Sides recommended ascertaining employees’ intentions at the exit interview. In response to a question, Mr. Laursen indicated staff contacts all retirees annually to update City records and could contact all employees who have vested as well. It was recommended the City issue checks to those who had not made a formal decision. Ms. Dougall-Sides said the financial impacts of both options need to be considered. Staff will contact the City’s actuary for a recommendation. It was noted the City should verify an employee’s address prior to cutting and mailing a check. Member Greer moved to approve the request by David C. Watson to vest his Pension. The motion was duly seconded and carried unanimously. c) Approval of New Hires as Pension Plan Members Mr. Laursen said he had reviewed all physician recommendations, noting clinic physicians had failed to indicate these employees meet Pension Plan criteria: 1) Kelly Myrick - Staff Assistant II, Police Department and 2) Jeanmarie Kabala, Computer Education Coordinator, Information Management. He recommended pulling these employees from consideration, contacting the physicians regarding the discrepancies, and presenting their names next month. Regarding pre-existing conditions, Mr. Laursen noted: 1) David Laatsch - System Analyst/Programmer I, Information Management had a broken left elbow; 2) Joseph DeBose - Maintenance Worker I, Parks & Recreation Department had a fractured jaw; and 3) Tania Alich - Police Recruit, Police Department had undergone a left hip replacement. Ms. Dougall-Sides indicated all Police Officers are certified to meet minimum standards. Mr. Laursen said according to the physician recommendations, the 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 Stone, Public Service Technician Public Services Dept. 06/23/97 06/23/97 Thomas Arruda, Computer Rep, Tech Information Management 06/23/97 06/23/97 David Laatsch, System Anal/Prog I Information Management 06/23/97 06/23/97 Duanne Anderson, Life Haz. Safe Insp. Fire Department 07/07/97 07/07/97 John Memmer, Custodial Worker General Services 05/27/97 07/21/97 Darrell Folk, Police Recruit Police Department 07/21/97 07/21/97 Sherry Cason, Police Recruit Police Department 07/21/97 07/21/97 Richard Kelly, Police Recruit Police Department 07/21/97 07/21/97 Tania Alich, Police Recruit Police Department 07/21/97 07/21/97 David Derrick, Police Recruit Police Department 07/21/97 07/21/97 Jason Deary, Police Recruit Police Department 07/21/97 07/21/97 Adam Weinberg, Police Recruit Police Department 07/21/97 07/21/97 Christian Zarra, Police Recruit Police Department 07/21/97 07/21/97 William Gallagher, Police Recruit Police Department 07/21/97 07/21/97 Joseph DeBose, Maintenance Worker I Parks & Recreation Dept 07/21/97 07/21/97 John Chatman, Maintenance Worker I Solid Waste Department 07/21/97 07/21/97 The motion was duly seconded carried unanimously. ITEM #5 - Pending/New Business a) Discussion Re: Pension Physicals Mr. Laursen referred to the Human Resources Department proposal to transfer the cost of pre-employment physicals from the City to the Pension Plan. Staff suggested the PAC make a recommendation to the Pension Trustees regarding this issue for final approval. It was noted the prior City Manager had agreed with this recommendation. Mr. Laursen stated both the City and Pension Plan use the results of the physical examinations and felt it reasonable for both entities to share the costs. In response to a question, he said staff indicated other municipalities are reluctant to share information about their Pension Plans. It was noted this information should be public. In response to a question, Mr. Laursen said more than 99% of Police Officers and Firefighters in Clearwater belong to their respective unions while approximately 20% of general employees in Clearwater belong to their Union. In response to a question, he said employees who pass the post-hire physical are approved for membership in the Pension Plan automatically due to ADA (Americans with Disability Act) regulations unless actuarial data, based on a person’s impairment, indicate the Plan would be unreasonably affected. Ms. Dougall-Sides said the City has no data on denials of employment due to physical problems. Mr. Laursen said few applicants are rejected due to a medical basis. Most of those rejected fail the drug test. In response to a question, Mr. Laursen indicated the City no longer requires agility tests for Firefighters and Police Officers although these employees must meet the certification requirements of the Police or Fire Academy. It was felt PAC should not pay for the physical examinations. It was noted a memorandum from Member Shepler indicated his opposition. Member Clark moved to continue Item #5a until all members are present for discussion. The motion was duly seconded and carried unanimously. Data regarding the practices of local municipalities was requested. ITEM #6 - Director's Reports Mr. Laursen reported staff has forwarded classification descriptions for all City positions to the clinic providing post-offer physical examinations. The packet sent to the clinic for every examination also includes the applicable job classification description. Mr. Laursen reported Fiscal Manager Margie Simmons could not attend today’s meeting to answer questions regarding the fund but will make a future presentation. It was requested invitations to attend be sent to employees who are members of the Plan. As information for the PAC, Mr. Laursen reported Police Officer Robert Heine, who resigned June 13, 1997, was in an automobile accident in which his wife and one of his children were killed. This was prior to the mailing of his first pension check. Payroll staff questioned if he could change his beneficiary. Mr. Laursen contacted the City’s Actuary, Steve Metz, who indicated the Plan is not clear on this issue but felt the beneficiary cannot be changed. In response to a question, Ms. Dougall-Sides said the beneficiary cannot be changed in case of divorce. She suggested if changes are to be allowed, they should be based on hardships. Mr. Laursen noted a Pension’s value is based on the age of the participant and beneficiary. It was recommended staff research this issue further. The next PAC meeting is scheduled for September 11, 1997. ITEM #7 - Adjournment The meeting adjourned at 9:43 a.m.