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04/08/1999PENSION ADVISORY COMMITTEE MEETING CITY OF CLEARWATER April 8, 1999 Present: Brian Aungst Chair/Mayor J. B. Johnson Vice Chair/Commissioner Pat Greer Committee Member Pat Shepler Committee Member John Scacca Committee Member Ed Hart Committee Member/Commissioner Absent: Dick Fitzgerald Committee Member Also Present: Leslie Dougall-Sides Assistant City Attorney Paul O’Rourke Human Resources Administrator Rick Ebelke Human Resources Assistant Director Debbie Ford Administrative Analyst Patricia O. Sullivan Board Reporter The Vice-Chair called the meeting to order at 9:05 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. ITEM #2 – Selection of New Chair Member Greer moved to appoint Mayor Aungst as PAC (Pension Advisory Committee) Chair. The motion was duly seconded and carried unanimously. ITEM #3 - Approval of Minutes Member Johnson moved to approve the minutes of the regular meeting of March 11, 1999, as recorded and submitted in written summation to each board member. The motion was duly seconded and carried unanimously. ITEM #4 - Employees to be Heard - None. ITEM #5 - Action Items a) Review and Action on Employee Requests for Years of Service Pensions: 1. David H. Main – Solid Waste Equipment Operator, Solid Waste 2. Richard Helphinstine – Mechanic II, General Support Services 3. Kenneth Donagan – Police Sergeant, Police Department 4. Robert G. Jones – Firefighter/Driver Operator, Fire Department 5. Zerry Littles – Public Service Technician II, Public Works Member Johnson moved to approve Years of Service Pensions for David H. Main, Richard Helphinstine, Kenneth Donagan, Robert G. Jones, and Zerry Littles. The motion was duly seconded and carried unanimously. b) Review and Action on Employee Requests to Vest Pensions 1. Rhett Morgan - Police Department Rhett Morgan has resigned his position after being employed by the City for more than 10 years. He will qualify to receive his reduced pension beginning May 1, 2009. AND 2. John B. Tucker - Parks & Recreation Department John B. Tucker has resigned his position after being employed by the City for more than 24 years. He will qualify to receive his reduced pension beginning April 1, 2005. Member Greer moved to approve the requests by Rhett Morgan and John B. Tucker to vest their Pensions. The motion was duly seconded and carried unanimously c) Approval of New Hires as Pension Plan Members As of April 1, 1999, the City has 1,659.2 FTEs and 1,750 budgeted positions. Vince Kirkland, originally hired December 21, 1998, as part time, transferred to full-time and is eligible for pension as of February 15, 1999. Marianna Chmiel, originally hired August 17, 1998, as part time, transferred to full-time and is eligible for pension as of February 27, 1999. Member Hart moved to accept the following employees into membership in the Pension Plan: Date of Pension Employment Elig. Date Vince Kirkland, Custodial Worker General Support Svcs. 12/21/98 02/15/99 Marianna Chmiel, Custodial Worker Marina 08/17/98 02/27/99 Nicholas Fritz, Maintenance Worker I Solid Waste Department. 03/15/99 03/15/99 Thomas Lulek, Police Recruit Police Department. 03/15/99 03/15/99 Kenneth Euler, Police Recruit Police Department 03/15/99 03/15/99 David Goldberg, Police Recruit Police Department. 03/15/99 03/15/99 Thomas Dawe, Police Recruit Police Department 03/15/99 03/15/99 Melissa Harris, Police Recruit Police Department. 03/15/99 03/15/99 Steven Carrao, Police Recruit Police Department. 03/15/99 03/15/99 The motion was duly seconded and carried unanimously. ITEM #6 - Pending/New Business a) David Krieger - Request to Buy Back Pension In his March 11, 1999 memorandum, David E. Krieger requested to buy back his pension credit. He was employed by the City on September 3, 1968, resigned August 11, 1972, and was reinstated March 28, 1977. He stated in 1972, his requests for a leave of absence and for the plan to retain his contribution were denied and he withdrew his contribution, less a 20% fee. Upon being employed again, he was not allowed to buy back his pension benefits. After the PAC approved buy backs following the 1996 referendum, his actuarial buy back amount was computed at approximately $75,000. He requested the committee reconsider the cost of his buy back. It was stated to correct past inequities, the PAC had approved several buy backs for amounts less than the actuarial computations. It was noted when he resigned, David Krieger had been cautioned his job may not be available upon his return. Andra Dreyfus, representative for Mr. Krieger, requested a new buy back amount be considered. She said in 1972, Mr. Kreiger had withdrawn approximately $1,615.78, his contribution less a fee. She proposed he repay the amount of his withdrawal plus 5% interest, offset by the 20% retained by the plan. In response to a question, Administrative Analyst Debbie Ford said policies from that era cannot be located. It was felt this request does not relate to a past discrimination, a withdrawal of resignation, or a leave of absence. In response to a question, Assistant City Attorney Leslie Dougall-Sides said the new ordinance allows buy backs after any length of absence, with repayment within 2 years of the amount withdrawn plus 5% interest or the actuarial amount, whichever is greater. None of today’s applicants is in this category. Mr. Kreiger could have taken a leave of absence had the City Manager or Department Director approved one. It was felt Mr. Kreiger should not be penalized for resigning his position to complete his education when a leave of absence was not an option. It was noted Mr. Kreiger had been willing to return earlier but a hiring freeze was in effect. It was felt the actuarial numbers presented previously are unrealistic. Member Shepler moved to recommend approval of reestablishing Officer Kreiger’s Pension Plan credit with repayment of the $1,615.78 he had withdrawn previously, plus 5% interest. The motion was duly seconded. It was noted shift work had prevented Mr. Kreiger from attending college. It was stated he had tried to return to his position after 2 years. It was recommended the board not consider the reasons for resignations to avoid establishing a precedent. Staff cannot access the City’s leave policy in 1972. It was stated the proposed actuarial amount was outrageously high compared with the application of a simple interest formula. Upon the vote being taken, the motion carried unanimously. b) Glenn Weaver - Request to Buy Back Pension In his March 17, 1999 letter, Glenn Weaver requested to buy back his pension credit. He was employed by the City in 1982, resigned in 1987, and was employed again in 1989. In 1987, he withdrew his contribution of approximately $9,000. Upon reinstatement, he was not allowed to buy back his pension benefits. After the actuarial amount he would owe was estimated to be $75,000, he did not pursue a buy back after the PAC had approved the practice. He requested the committee reconsider the cost of his buy back. Concern was expressed a large number of employees may apply for buy backs if a new formula is applied. It was stated many had not applied for buy backs before the 1996 deadline as actuarial equivalent estimates were too exorbitant to consider. Ms. Dougall-Sides said approximately 12 employees could qualify for buy backs. Human Resources Administrator Paul O’Rourke said Financial Services Administrator Margie Simmons had indicated approval of today’s requests would have little effect on the plan. Concern was expressed the board consider precedents they may be establishing. It was felt the board should not consider Mr. Weaver’s reason for resignation. Concern was expressed the pension plan could be impacted significantly if exceptions are permitted. It was noted the numbers Actuary Steve Metz had submitted regarding Jeff Harper’s buy back had differed significantly from actuarial equivalents provided other employees seeking this opportunity. It was recommended Mr. Metz be requested to recalculate the numbers for these applicants using the same factors he had used for Mr. Harper. It was felt Mr. Harper’s case has no bearing on these cases. Member Johnson moved to recommend the Pension Trustees deny Glenn Weaver’s request to extend his pension plan credit. The motion was duly seconded. Members Johnson and Hart voted “Aye”; Members Greer, Shepler, Scacca and Mayor Aungst voted “Nay.” Motion failed. It was recommended Mr. Weaver be allowed to buy back his pension credit with a recalculated actuarial equivalent. AND c) Georgette Summarell - Request to Buy Back Pension In her March 29, 1999 letter Andra Dreyfus, representative for Georgette Summarell, indicated Ms. Summarell wished to buy back her pension credit. Ms. Summarell was employed by the City in April 1976, resigned in August 1991, and was re-employed in March 1992, after her February 1992 withdrawal of resignation. In September 1991, her contribution of $26,284.71, less amount due Credit Union, was returned to her. Upon reinstatement, she was not allowed to buy back her pension benefits. AND d) Camille Motley - Request to Buy Back Pension In her March 30, 1999 letter, Camille Motley requested to buy back her pension credit. She was employed by the City in March 1977, resigned in April 1981, and was employed again in August 1982. In 1981, she withdrew her contribution of $2,307.87. Upon being employed again, she was not allowed to buy back her pension benefits. After the PAC approved buy backs following the 1996 referendum, her actuarial buy back amount was computed at $62,939. She requested the committee reconsider the cost of her buy back. Member Greer moved to table Items #6b, #6c, and #6d. The motion was duly seconded and carried unanimously. It was requested staff develop a form for easy review that includes all relevant information regarding a request. It was requested Ms. Simmons consider affects on the plan should the number of requests increase. e) Kenneth Davenport – Hearing for Non-job-connected Disability Pension Assistant City Attorney Leslie Dougall-Sides said the City is not contesting this request for a non-job-connected disability pension. Member Shepler moved that Kenneth Davenport be granted a Non-Job-Connected Disability Pension effective on a date to be determined based on Mr. Davenport’s disability which is described as depression; associate problems making him permanently unable to perform his job and documented by numerous medical statements of Steven E. O’Neal, PhD, Nancy Simons, PhD, Devyani N. Desai, M.D., Walter E. Afield, M.D., Richard Forlizzo, D.C., and Richard J. Daly, M.D., IME (Independent Medical Exam) physician, with accompanying dates of all the doctor visits. The motion was duly seconded. Members Johnson, Greer, Shepler, and Chair Aungst voted “Aye”; Members Scacca and Hart abstained. Motion carried. f) Lester Rent – Set Hearing Date for Job-connected Disability Pension Ms. Ford said the applicant has requested this pension hearing go forward. Member Greer moved to schedule a hearing for Lester Rent’s application for a Job-connected Disability Pension for May 13, 1999, provided the City first receives all necessary documentation. The motion was duly seconded and carried unanimously. ITEM #6 - Director's Reports - None. The next PAC meeting is scheduled for May 13, 1999. ITEM #7 - Board Members to be Heard – None ITEM #8 - Adjournment The meeting adjourned at 10:02 a.m.