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03/08/2001PENSION ADVISORY COMMITTEE MEETING CITY OF CLEARWATER March 8, 2001 Present: Brian Aungst Chair/Mayor J. B. Johnson Vice Chair/Commissioner Pat Greer Committee Member Ed Hart Committee Member/Commissioner John Lee Committee Member John Schmalzbauer Committee Member Absent: Dick Fitzgerald Committee Member Also Present: Lee Christiansen Pension Advisory Committee Attorney Paul O’Rourke Human Resources Administrator Debbie Ford Human Resources Analyst Brenda Moses Board Reporter The Chair called the meeting to order at 9:01 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 of February 8, 2001 Member Johnson moved to approve the minutes of the regular meeting of February 8, 2001, as 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 Review and Action on Employee Requests for Years of Service Pensions Gerald McDevitt, General Support Services Wayne Tiggett, Fire Jerry Worsham, Fire Member Lee moved to approve the requests by Gerald McDevitt, Wayne Tiggett, and Jerry Worsham for a Years of Service Pension. The motion was duly seconded and carried unanimously. Review and Action on Employee Requests to Vest Pensions Albert Chaffer, Police Member Johnson moved to approve the request by Albert Chaffer to vest his pension. The motion was duly seconded and carried unanimously. Review and Action on Employee Requests for Survivor’s Pensions: Dianne Sedrick, Widow of William Sedrick, Police Human Resources Administrator Paul O’Rourke said as a result of William Sedrick’s demise on active duty, he could not be granted his pension option. In the next few months, staff will be proposing a pension amendment that would allow an employee to choose his/her pension plan benefit choice before death, and to provide for more than one option once an employee reaches retirement. It was remarked that there would be no negative effect on the pension plan. Mr. O’Rourke said in this case, Mr. Sedrick had chosen the 100% joint survivor death benefit. Under this option, at the end of 10 years, the pension amount drops to 50% of the original amount. Additionally, under this option, if Ms. Sedrick remarries, she loses her benefits. Mr. O’Rourke said once an election has been made by an eligible employee despite an untimely death, that option is the one that should be granted the survivor. Concern was expressed that the City does not allow employees who are vested and eligible for the pension plan at the 10 year mark to select a pension option. It was remarked it has been more than 2 years since the PAC (Pension Advisory Committee) has requested that staff research these issues. Mr. O’Rourke said no formal recommendation has been made by the PAC regarding an amendment. He said discussions have taken place between the Human Resources Department staff, Legal Department staff, and the PAC attorney. He said this issue was not on the last referendum but would be on the March 2002 referendum. In response to a question, Pension Advisory Committee Attorney Scott Christiansen said had Mr. Sedrick reached his retirement date, he would have selected a different option (Option #6), which provides for a specific higher amount per month for life. However, because he falls under the pre-retirement death provision, Mrs. Sedrick will receive a lesser amount. It was remarked this issue to have been corrected by staff some time ago. Mr. Christiansen said he did not recommend the PAC award benefits that are not permitted in the pension ordinance. It was suggested that a recommendation be made to make Option #6 retroactive upon approval of the forthcoming pension amendment at the March 2002 referendum. Member Johnson moved to approve a request for survivor’s pension for Dianne Sedrick. The motion was duly seconded and upon the vote being taken, Members Johnson, Hart and Aungst voted “aye”; Members Greer, Lee, and Schmalzbauer voted “nay”. Motion failed. Mr. Christiansen said this request is to approve the benefit in the pension plan that was selected by Mr. Sedrick. If the PAC’s motion stands, then Mrs. Sedrick will not receive those benefits. It was remarked that the plan is clear as to her benefits. She could potentially receive more than the current benefit if the amendment is approved next March and a PAC recommendation is made that her request be retroactive. Consensus was that the PAC in its current configuration feels that Ms. Sedrick’s pension benefits should be retroactive if the amendment passes in March 2002. Member Johnson moved to approve a request for survivor’s pension for Dianne Sedrick. The motion was duly seconded and carried unanimously. It was suggested the pension amendment regarding this provision be listed separately on the next referendum. Approval of New Hires as Plan Members As of, February 1, 2001, the City had 1,675.41 FTEs out of 1,799.3 budgeted positions (including the City Commission). Member Greer moved to accept the following employees into membership in the Pension Plan: Date of Pension Employment Elig. Date Suzanne Hamilton, Library Assistant Library 1/27/01 1/27/01 Michele Jaworck, Rec. Leader Parks & Rec. 1/29/01 1/29/01 James West, Pub. Svc. Tech I. Public Utilities 1/29/01 1/29/01 Heather Shell, Staff Assistant I Fire 1/29/01 1/29/01 Jessica McLucas, Systems Analyst Info. Technology 1/29/01 1/29/01 Sheldon Goodloe, Solid Waste Worker Solid Waste 2/12/01 2/12/01 Julian Johnson, Solid Waste Worker Solid Waste 2/12/01 2/12/01 Antonis Magganas, Accounting Clerk Gas 2/12/01 2/12/01 John McQueeney, Gas Tech. I Gas 2/12/01 2/12/01 Tracey Reed, Systems Analyst Library 1/16/01 2/10/01* Gregory Browning, Pub. Svc. Tech I Public Utilities 2/12/01 2/12/01 Derek Higgins, Pub. Svc. Tech I Public Utilities 1/29/01 1/29/01 Tim LaVechia, Field Svc. Rep. Customer Service 1/16/01 1/16/01 Marralyn Malcolm-Smith, Housing Coord. Plng. & Dev. Svc. 2/20/01 2/20/01 Bridgett Vinson, Police information Tech I Police 2/12/01 2/12/01 Travis Lowe, Custodial Worker Parks & Rec. 2/26/01 2/26/01 * Originally hired 1/16/01 as part-time; status changed to full-time and pension eligible as of 2/10/01. The motion was duly seconded and carried unanimously. ITEM #5 – Pending/New Business – None. ITEM #6 – Director’s Reports Mr. O’Rourke said the next Pension Trustees meeting is scheduled for April 2001. Mr. Christiansen said an IME (Independent Medical Examination) is pending for Johnnie Jackson. Because of a lung disease, an IME would be painful for him to undergo. The case will be brought before the PAC at the April 12, 2001, meeting. Mr. Christiansen said PAC members must file a Form 1 financial disclosure within 30 days of serving on the board. Those no longer serving must file the form within 60 days of leaving or pay a $25/day fine. Mr. O’Rourke said an election is being held to fill Member Greer’s position on the PAC. He said he has received a request from a retired pensioner requesting information as to why retirees cannot vote in Pension elections. The PAC attorneys will research the matter. ITEM #7 – Committee Members to be Heard In response to a question, Mr. O’Rourke said although the Pension Trustees will not meet until April, it would not affect Mrs. Sedrick’s pension benefit payments. Member Johnson said he was proud to have served on the PAC. He wished everyone well. ITEM #8 – Adjournment The meeting adjourned at 9:25 a.m.