09/14/2000PENSION ADVISORY COMMITTEE MEETING
CITY OF CLEARWATER
September 14, 2000
Present: Brian Aungst Chair/Mayor
J. B. Johnson Vice Chair/Commissioner
Pat Greer Committee Member
Dick Fitzgerald Committee Member
Ed Hart Committee Member/Commissioner
John Schmalzbauer Committee Member
John Lee Committee Member
Also Present: Paul O’Rourke Human Resources Administrator
Lee Dehner Pension Advisory Committee Attorney
Debbie Ford Human Resources Analyst
Patricia O. Sullivan Board Reporter
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
Reference was made to page 2 of the August 10, 2000 minutes, under Bill 372. It was recommended the sentence read “The primary purpose of this legislation is to assist Charles Slavin,
the actuary for the Division of Retirement, in monitoring expected returns, set by the Pension Trustees, versus assumed returns, based on actuarial computation.“
Member Johnson moved to approve the minutes of the regular meeting of August 10, 2000, as amended, and the Special Meeting of August 31, 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 Pension
1. Brian Baldwin – Deputy Chief of Operations, Fire Department
Member Greer moved to approve a Years of Service Pension for Brian Baldwin. The motion was duly seconded and carried unanimously.
b) Review and Action on Employee Requests to Vest Pension
1. Nanette Harbison – District Fire Chief, Fire Department
Nanette Harbison has resigned her position after being employed by the City for more than 18 years. She will qualify to receive her reduced pension beginning February 1, 2002.
Member Fitzgerald moved to approve the request by Nanette Harbison to vest her Pension. The motion was duly seconded and carried unanimously.
c) Approval of New Hires as Pension Plan Members
As of September 6, 2000, the City had 1684.4 FTEs out of 1776.4 budgeted positions. Mary Repp originally was hired as part-time; status changed to full-time and pension eligible as
of July 17, 2000. Robert Renk originally was hired as part-time; status changed to full-time and pension eligible as of July 29, 2000.
In response to a question, Human Resources Administrator Paul O’Rourke said staff is working on a system that will automatically compute employee net gains and losses. He said the
City typically is staffed at a 95% level.
Member Johnson moved to accept the following employees into membership in the Pension Plan:
Date of Pension Employment Elig. Date
Mary Repp, Recreation Leader Parks & Recreation Dept. 02/18/97 07/17/00
Michael Demps, Parks Service Technician Parks & Recreation Dept. 07/31/00 07/31/00
Thomas Shaffer, Systems Analyst Information Technology 08/07/00 08/07/00
Arden Dittmer, Dev. Review Technician I Planning & Dev. Services 07/31/00 07/31/00
Robert Renk, Utilities Chemist Public Works 04/24/00 07/29/00
Anthony Hadley, Solid Waste Worker Solid Waste 08/14/00 08/14/00
Stefan Czerwinski, Sr. Systems Analyst Information Technology 08/21/00 08/21/00
Judith Crawford, Senior Accountant Public Works 08/28/00 08/28/00
Daniel Carter, Field Service Rep. Customer Service 08/28/00 08/28/00
Teresa Jeffries, Accounting Clerk Economic Development 08/28/00 08/28/00
The motion was duly seconded and carried unanimously.
ITEM #5 - Pending/New Business
a) Part-time/Full-time Employees
Mr. O’Rourke said a memorandum had been distributed to staff regarding part-time employees who previously had worked full-time and qualified for a pension buy back. Of 19 employees
who responded, 12 were ineligible as they did not meet the threshold of working a minimum of 1950 or 2080 hours in a 12-month period. Two were found to be ineligible as they had been
classified as seasonal and did not qualify for Pension participation.
Mr. O’Rourke said staff has determined 5 employees are eligible to buy back pension time for periods that range from 361 days to two years. Buy back amounts range from $1,042.20 to
$2,659.19. Records are not available to verify hours worked. Staff used performance appraisal review dates for verification. All 5 employees had worked for the Parks & Recreation
Department.
It was suggested affected employees be permitted to pay off the buy back amounts via payroll deductions. Once the 5 subject employees state their intentions, staff will report to the
PAC (Pension Advisory Committee).
b) Actuarial Equivalents for Single vs. Married
Pension Plan Actuary Steve Metz reviewed examples comparing the retirement benefits of single and married employees. If a single retiree dies before receiving all contributions, the
remaining contributions will be distributed to the estate. Monthly benefits related to options for married employees are higher than those for single employees. The Plan provides a
form of life insurance and built in benefit for married employees. An employee is not required to list a spouse as beneficiary. The Plan is similar to many private sector plans.
Discussion ensued regarding State and private sector retirement plans. Mr. O’Rourke noted the City subsidizes family health care at higher levels too. New 175 and 185 legislation
changed the beneficiary option for Police and Fire.
ITEM #6 - Director's Reports
Mr. O’Rourke said in October he will report on the eligibility of several employees who requested joining the Plan.
The next PAC meeting is scheduled for October 12, 2000.
ITEM #7 - Committee Members to be Heard
Member Lee requested the PAC Plan consider adding an optional drop plan to the Pension Plan. Mr. O’Rourke reviewed the program, which allows retirees to remain with the City for up
to 5 years while the City’s contribution is invested into an interest bearing account. It is estimated the value of delaying receipt of a $2,200 monthly pension for 5 years would be
a lump sum of $163,000. The tool allows the retention of valuable employees at no cost. In response to a question, Pension Advisory Board Attorney Lee Dehner said taxes on the retirement
fund are paid as they are withdrawn.
Mr. O’Rourke said the option is popular. He will bring it forward to the PAC for discussion.
ITEM #8 - Adjournment
The meeting adjourned at 9:47 a.m.