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03/09/2000PENSION ADVISORY COMMITTEE MEETING CITY OF CLEARWATER March 9, 2000 Present: J. B. Johnson Vice Chair/Commissioner Pat Shepler Committee Member – arrived 9:03 a.m. Dick Fitzgerald Committee Member Ed Hart Committee Member/Commissioner John Schmalzbauer Committee Member Absent: Brian Aungst Chair/Mayor Pat Greer Committee Member Also Present: Paul O’Rourke Human Resources Administrator Margie Simmons Financial Services Administrator Scott Christiansen Pension Advisory Committee Attorney Cynthia Bender Human Resources Manager Debbie Ford Administrative Analyst Patricia O. Sullivan Board Reporter The Vice-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 moved to approve the minutes of the regular meeting of February 10, 2000, 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 Pensions: 1. Virgil L. Rush, Firefighter/Driver-Operator – Fire Department 2. Donald O. Parker, Parking Meter Technician – Public Works Department 3. Richard W. Warwick, Firefighter/Driver-Operator – Fire Department 4. Robert F. Lockwood, Administrative Support Manager – Fire Department Member Hart moved to approve employee requests to Years of Service Pensions for Virgil L. Rush, Donald O. Parker, Richard W. Warwick, and Robert F. Lockwood. The motion was duly seconded and carried unanimously. b) Approval of New Hires as Pension Plan Members As of March 2, 2000, the City had 1,674.5 FTEs. Donna Swain-McHughes was employed originally on January 1, 1985, and transferred to full-time and pension eligible on September 25, 1999. It was noted the number of approved positions has increased. Member Schmalzbauer moved to accept the following employees into membership in the Pension Plan: Date of Pension Employment Elig. Date Richard Knoth, Custodial Worker Library 01/31/00 01/31/00 Robin Seats, Network Specialist Police Department 01/31/00 01/31/00 Michael Lockwood, Recreation Progrmer Parks & Recreation 01/31/00 01/31/00 Lorraine Welch, Police Service Technician Police Department 02/03/00 02/03/00 Dennis Castle, Parks Service Tech I Parks & Recreation 02/14/00 02/14/00 Jason Turaniczo, Public Service Tech I Public Works 02/14/00 02/14/00 Donna Swain-McHughes, Police Co, Oper Police Department 01/01/85 09/25/99 Kenneth J. Farrell, Maintenance Worker I General Support Svc 02/14/00 02/14/00 Joann Thompson, Maintenance Worker I General Support Svc 02/14/00 02/14/00 Anthony White, Utilities Chemist Public Works 02/08/00 02/08/00 The motion was duly seconded and carried unanimously. ITEM #5 - Pending/New Business a) Selection of Seventh Member The seventh member of the PAC (Pension Advisory Committee) serves at the pleasure of the other members. Member Fitzgerald’s term has expired. He has expressed interest in reappointment. Member Hart moved to reappoint Dick Fitzgerald as the committee’s seventh member. The motion was duly seconded and carried unanimously. b) Nominating Committee for Pension Election Human Resources Administrator Paul O’Rourke reported Member Shepler’s term expires in June. A nominating committee, appointed by employee PAC members, is required. He requested PAC employee members submit recommendations for this committee. Lawrence Browett, Fire Department, was nominated. c) Presentation on Light Duty Policy Mr. O’Rourke recommended the PAC reassess the Pension disability ordinance, effective January 1996. To reduce the number of disability pensions awarded, the language was made more restrictive and now requires the assignment of injured and ill employees to alternative positions at no loss of base pay. As those approved for non-job connected disabilities must be vested, employees with less than 10 years of service must purchase private insurance for protection. Pension benefits for vested employees with non-job-connected disabilities are based on their years of service. Since 1996, the number of pensions awarded annually has decreased from approximately 10 to approximately 2. While the Police and Fire departments have dedicated a total of 13 positions for alternate placement, no dedicated positions exist for general employees. The CARE (Comprehensive Assistance in Relocating Employees) team, established in 1997, assists disabled employees to return to work in transitional or permanent positions. All employees with job- or non-job-connected injuries, illnesses, and disabilities must participate in the CARE program to qualify for pension benefits. Of 12 current clients, seven were assigned to light duty, two have pending assignments to alternative Police positions, one is in training for possible permanent placement, one is working a regular job with assistance while receiving vocational training, and one is working a regular job with accommodations. Of 13 closed cases, four retired on disability pension, two retired on pension based on years of service, four were terminated, one retired on Social Security, one retired on Workers Compensation Disability, and one was placed successfully in an alternative position. Approximately 75% of City disability claims are non-job-related. The City does not have a good track record at finding alternative work. The general/enterprise fund has been impacted by more than $0.5-million annually for salaries and benefits. Other challenges relate to the limited skills and abilities of participants, their motivation to succeed, the reluctance of departments to accept these workers, and assignments to light duty lasting too long. Employee morale also is a problem for skilled staff who perform excellently but are paid less than a poorly skilled worker whose salary is based on a previous position. Departments are burdened by paying higher wages than budgeted. Most department directors would prefer hiring a qualified employee rather than accommodating the special needs of a CARE participant. In response to a question, he said no revenue stream exists to cover the salary differential. Mr. O’Rourke recommended establishing a Task Force to review and recommend pension disability and administrative policy changes. He suggested Task Force members include the CARE Team, and representatives of the CWA, Fire, and Police departments. He suggested the Task Force could benchmark the best RTW (Return to Work) practices used by other municipalities, recognize short-term disability as less than 6 months and long-term disability as longer than 6 months, and identify alternative funding for “light duty” positions. He also suggested the Task Force establish a specific time frame for temporary “light duty” assignments, hire a disability management coordinator, provide RTW training for supervisors, and hire a fraud investigator on an “as needed” basis. SAMP (Supervisory, Administrative, Managerial, and Professional) and citizen participation on the Task Force were suggested. Mr. O’Rourke stated Civil Service Board members are familiar with related issues and may be interested in serving. Opposition to public participation was expressed. Pension Advisory Committee Attorney Scott Christiansen said the current Pension Plan cannot be used to offset the salary differential. In response to a question, Mr. O’Rourke said all employees should be evaluated according to job standards. In response to a question, Mr. O’Rourke reviewed protections for some SAMP employees. Approximately 100 City employees work “at will.” Mr. O’Rourke will recommend the makeup of the Task Force at next month’s meeting. He will ask the union presidents to appoint representatives. In response to a question, Mr. Christiansen said PAC members can serve on the Task Force without a conflict of interest. Mr. O’Rourke said the PAC attorneys and AON representatives will facilitate the Task Force meetings. It was felt a disinterested party should be included in the Task Force’s membership. ITEM #6 - Director's Reports – None. The next meeting is scheduled for April 13, 2000, at 9:00 a.m. ITEM #7 - Committee Members to be Heard – None. ITEM #8 - Adjournment The meeting adjourned at 9:48 a.m.