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05/11/2000PENSION ADVISORY COMMITTEE MEETING CITY OF CLEARWATER May 11, 2000 Present: Brian Aungst Chair/Mayor Pat Greer Committee Member Pat Shepler Committee Member Ed Hart Committee Member/Commissioner John Schmalzbauer Committee Member Absent: J. B. Johnson Vice Chair/Commissioner Dick Fitzgerald Committee Member Also Present: Paul O’Rourke Human Resources Administrator Margie Simmons Financial Services Administrator Lee Dehner Pension Advisory Committee Attorney Debbie Ford Administrative Analyst Patricia O. Sullivan Board Reporter The 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 - Approval of Minutes Member Greer moved to approve the minutes of the regular meeting of April 13, 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 Request for Years of Service Pension 1. Thomas R. Hackett, Water Superintendent – Public Works Member Greer moved to approve the request by Thomas R. Hackett for a Years of Service Pension. The motion was duly seconded and carried unanimously. b) Review and Action on Employee Request to Vest Pension 1. Stephen E. Bingham, Police Officer – Police Department Stephen E. Bingham has resigned his position after being employed by the City for 12 years. He will qualify to receive his pension beginning June 1, 2007. Member Johnson moved to approve the request by Stephen E. Bingham to vest his Pension. The motion was duly seconded and carried unanimously. c) Approval of New Hires as Pension Plan Members As of May 3, 2000, the City had 1,667.5 FTEs and 1,779.8 budgeted positions. Harold Gahles was hired as temporary on March 27, 2000, and changed to permanent and pension eligible as of April 22, 2000. Member Greer moved to accept the following employees into membership in the Pension Plan: Date of Pension Employment Elig. Date Craig Jennings, TV Production Specialist Public Comm. 03/27/00 03/27/00 Vince Kirkland, Public Svc. Technician I Public Works 03/27/00 03/27/00 Kurt Kraus, TV Production Specialist Public Comm. 03/27/00 03/27/00 Michael Head, Public Service Technician I Public Works 04/10/00 04/10/00 Earlwin Lewis, Custodial Worker General Services 04/10/00 04/10/00 Kevin Boaden, Firefighter Fire Department 04/17/00 04/17/00 James Brent Bronson, Firefighter Fire Department 04/17/00 04/17/00 Kip Thompson, Firefighter Fire Department 04/17/00 04/17/00 Rick Wendling, Firefighter Fire Department 04/17/00 04/17/00 Shawne Palcisko, Firefighter Fire Department 04/17/00 04/17/00 William Muniz, Firefighter Fire Department 04/17/00 04/17/00 Patricia Hillman, Police Comm. Op. Train Police Department 04/24/00 04/24/00 Harold Gahles, Gas Technician I Gas 03/27/00 04/22/00 Norma Templeton, Police Comm. Op.Train Police Department 04/24/00 04/24/00 Mary Ferrand, Police Comm. Op. Trainee Police Department 04/24/00 04/24/00 Alysha Roberts, Parks Service Tech. I Parks & Recreation 04/22/00 04/22/00 The motion was duly seconded and carried unanimously. ITEM #5 - Pending/New Business a) Catherine Slack – Hearing on Job-connected Disability Pension Request On September 22, 1998, Catherine Slack received an upper back injury during a defensive training exercise. G. E. Vega, M.D., conducted an IME (Independent Medical Examination) on April 18, 2000, and determined Ms. Slack is restricted in some police duties and should avoid physical contact such as subduing a subject. Human Resources Director Paul O’Rourke said Catherine Slack’s injury was job-related. She currently works as a detective and is an outstanding employee. Based on Pension Plan rules, staff recommends the PAC (Pension Advisory Committee) deny Ms. Slack’s request for a disability pension as her skills can be used meaningfully and recommend she be placed in a light duty position on a permanent basis. Joe Corsmeier, representative, announced his presence. Member Hart moved to deny Catherine Slack’s request for a job-connected disability as she can be reassigned to an appropriate light duty assignment at no loss of pay even though she is unable to perform the duties of a Police Officer. The motion was duly seconded and carried unanimously. b) Brian Baldwin – Request for Job-connected Disability Pension At the time of his termination on February 18, 2000, Brian Baldwin requested time to file an application for a disability pension. Pension Advisory Committee Attorney Lee Dehner said Brian Baldwin’s request for a job-connected disability pension does not meet the Plan’s minimum threshold for PAC consideration. He said the claim is not valid and recommended the Committee not spend Plan funds to proceed. According to records submitted, Mr. Baldwin does not qualify for a hearing in front of the Committee. He said Mr. Baldwin’s termination was unrelated to his disability, as required by the Plan for consideration. Michael Keene, representative, said the City had not advised Mr. Baldwin the reason or cause for his termination. During a short administrative leave, he tried to negotiate a severance package. Mr. Keene said Mr. Baldwin had served the City faithfully for many years, but did not file for disability after his on-the-job injury due to the stigma of that action. He said the City had rushed Mr. Baldwin into signing a termination agreement and promised the termination would not preclude a determination of Mr. Baldwin’s application for a disability pension. He said he would approach the City and request the resignation be withdrawn so that Mr. Baldwin’s disability pension application could be considered. In response to a question, Mr. O’Rourke said Mr. Baldwin had 21 days to review his severance and termination. Mr. Baldwin did not broach the subject of his disability until the 20th day. As staff was unable to reach the PAC’s attorney for an opinion, staff allowed Mr. Baldwin to submit his application on the 21st day. Mr. Keene said the City had given Mr. Baldwin a notice of intention to terminate, but did not terminate him until after Mr. Baldwin submitted his disability application. It was felt legitimate disability applications are not submitted as an afterthought. Confirmation was requested of the City’s promise that Mr. Baldwin’s disability pension request would be considered. Assistant City Attorney Leslie Dougall-Sides said at his termination, she had advised Mr. Baldwin that the processing of his pension application was not guaranteed. While agreement language does not preclude the processing of the application, it does not insure that outcome. Mr. Dehner said the Plan does not permit further consideration. Also, the PAC can make no decisions related to his proposed reinstatement. It was suggested Mr. Baldwin could refile the application if the City reinstates him. Discussion ensued regarding Mr. Baldwin’s termination process, his pension application, and the Committee’s fiduciary responsibilities. Member Hart moved to continue Item #5b until the Committee has the authority to consider Brian Baldwin’s disability pension application. The motion was duly seconded and carried unanimously. The Committee recessed from 9:40 to 11:09 a.m. c) Chapter 175 and 185 Changes In his September 14, 1999 letter, to actuary Steve Metz with Price Waterhouse-Coopers, Pension Advisory Committee Attorney Lee Dehner referred to Florida Statutes Chapters 175 and 185 as amended by Chapter 99-1. He reviewed amendments to the City’s Pension Plan to be adopted by December 31, 1999, if the amendments had no cost or are covered by monies in excess of the 1997 amount received from the State. He requested Mr. Metz calculate costs associated with each required change and specify which ones will have no additional funding requirement. Related requirements for firefighters and police officers: 1) early retirement age of 50 & 10 with 3% per year reduction cap; 2) 55 & 10 normal retirement age; 3) normal form of benefit of life with 10-year guarantee, unless current normal form is of greater value; 4) delete pre-existing condition exclusion for disability entitlement; 5) limit workers’ compensation set-off so that Plan disability benefits are not reduced below the greater of 2% per year of service or 42% of average monthly compensation calculated with 2% benefit rate; 6) delete reassignment provision for disability claimants & add provision requiring reassignments be to similar job classification at no reduction in rank or pay; 7) add presumptions for disability incurred in line of duty where claims are based on certain infectious diseases, hypertension, heart disease, & tuberculosis; 8) add optional forms of benefits for disability retirees with normal form having a 10-year guarantee; 9) add 66 2/3% joint & survivor option; 10) add forfeiture provisions for commission of certain specified offenses that are breaches of the public trust & where an attempt is made to obtain a pension benefit by fraud, misrepresentation, or false statements; 11) add buy-back provision allowing members who terminate employment & withdraw their contributions, an opportunity if reemployed, to buy prior service time by depositing contributions with interest within 90 days of reemployment; 12) credited service must be given members who separate from service to go into military active duty & are reemployed within 1 year after discharge for up to 5 years of military service; and 13) if members’ employment is terminated, their contributions remain in the Plan, & they are reemployed within 5 years, their new service time will bridge to their prior service time. Mr. O’Rourke said the State requires the changes to be activated by July 1, 2000. The State adopted the changes on March 12, 1999; Chapter 175 affects firefighters and Chapter 185 affects police officers. In response to a question regarding #1, Mr. Dehner said currently only employees who are at least 65 can retire after 10 years of service. This changes that requirement for firefighters and police officers. He said provisions requiring forfeiture of pension benefits relate to offenses against the public trust and fraudulent attempts to obtain pension benefits. Mr. Dehner recommended against specifying the interest rate for buy backs in the ordinance as circumstance can change. In response to a question, Ms. Simmons said actuarial assumptions included in the impact statement conclude the changes will have an annual impact of $12,000. She recommended approving all changes instead of waiting until the State contribution covers all related costs. ITEM #6 - Director's Reports The next meeting is scheduled for June 8, 2000, at 9:00 a.m. Law Firm Contract Mr. Dehner reported his law firm’s contract with the PAC expires on May 24, 2000. Mr. Dehner said his firm is processing a rate increase for all clients. He requested the PAC consider a fee change at the same time the firm institutes an increase with other municipal clients. He requested the contract be extended on a month-to-month basis, with no change in fees, until it can be renegotiated in late summer. Task Force In reference to the April 21, 2000, letter to Mr. O’Rourke, Dennis Acker, of the Fraternal Order of Police, reported the presidents of the 4 employee unions agreed not to participate in the Pension Task force. As the Pension is a negotiable issue, each union will have a single spokesperson. PAC Election Mr. O’Rourke reported Member Shepler’s term is expiring and an election is scheduled. Results will be available June 20, 2000. Part-Time Workers/Full-Time Hours Mr. O’Rourke reported 21 employees had responded to his memorandum and reported that they had worked full-time while classified as part-time. He hoped a preliminary analysis of staff research will be available next month. He will meet with Mr. Dehner to clarify definitions. FTE Computation In reference to his monthly memorandum regarding the approval of new hires as Pension Plan Members, Mr. O’Rourke said an automated solution to the incorrect computation of FTE positions should be online by next month. Conflict of Interest Mr. Dehner stated members only need to declare a conflict of interest if a vote or discussion would benefit their business, family member, or self. ITEM #7 - Committee Members to be Heard – None. ITEM #8 - Adjournment The meeting adjourned at 11:43 a.m.