09-19-2011 GEPB/PPB CITY OF EDGEWATER
GENERAL EMPLOYEES' and POLICE OFFICERS' PENSION BOARD OF TRUSTEES
JOINT SPECIAL MEETING
CITY HALL COUNCIL CHAMBER
104 N. Riverside Drive, Edgewater, Florida 32132
Monday, September 19, 2011
9:30 a.m.
Pursuant to Chapter 286, F.S., if an individual decides to appeal any decision made with respect to any matter considered at a meeting or
hearing, that individual will need a record of the proceedings and will need to insure that a verbatim record of the proceedings is made.
In accordance with the Americans with Disabilities Act, persons needing assistance to participate in any of these proceedings should contact
City Clerk Bonnie Wenzel, 386- 424 -2400 Ext# 1101, prior to the meeting.
I. CALL TO ORDER
II. ROLL CALL/DETERMINATION OF A QUORUM
III. Status Report - Issues with Principal (Milberg LLP and other consultants)
IV. STAFF REPORTS, CONSULTANTS' REPORTS, DISCUSSION /ACTION
• Administrator's report - withholding on after -tax refund of member contribution
in conjunction with retirement
V. TRUSTEES' REPORTS, DISCUSSION, AND ACTION
VI. REQUESTS FROM THE PUBLIC/EMPLOYEES PRESENT
VII. ADJOURNMENT
Ke: rauiette tubby http: // mail. aol.com /34047- 111 /aol- 1 /en -us /mail /PrintMessage.asp
From: Sheila Hutcheson <shutch9750 @aol.com>
To: Tad @foster - foster.com
Cc: niday.tonya @principal.com
Subject: Re: Paulette Tubbs
Date: Mon, Aug 22, 2011 10 :23 am
It is too late to change Ms. Tubbs' as Principal sent her refund with no tax withheld and did not ask for the
information. What concerns me is that, with the same calc. information from F &F, Principal did withhold tax on the
after
tax refund for Gen. retirees Nichols, Hilton, Manzi, and Looney. If we had been asked, we could have sent
this on Tubbs.
Please do so going forward.
Sheila Hutcheson
Pension Plan Administrator
3860 Grantline Road
Mims, FL 32754
321 - 267 -3082
321 - 267 -4728 (facsimile)
shutch9750 @aol.com
Original Message
From: Tad Wasowicz <Tad foster- foster.com>
To: shutch9750
Sent: Mon, Aug 22, 2011 10:16 am
Subject: FW: Paulette Tubbs
Sheila,
On the notification sheet we have already shown her total contributions, and monthly amount that includes
those contributions. I'll just add them in here so you don't have to do any digging, and #3 is the present value of
her payments.
1. 10,068.54
2. 1,876.89
3. 219,032.38
Are you going to need us to show the present value of benefits on future calculations?
Thanks,
Tad
From: Niday, Tonya [ mailto :Niday.Tonya@principal.comj
Sent: Monday, August 22, 2011 10:09 AM
To: 'Sheila Hutcheson'; Tad Wasowicz
Subject: RE: Paulette Tubbs
Yes, if the employee takes their after -tax contributions in a lump sum and monthly annuity separately, I
I of 3 8/22/2011 10:23 A
Re: Paulette Tubbs http: / /mail.aol.com/34047- 111 /aol- 1 /en -us /mail /PrintMessage.asr
will need all 3 items listed below if you would like Principal to calculate the withholding on the lump
sum portion based on IRS Notice 87 -13 or Foster & Foster can provide the taxable /non - taxable amount.
Otherwise, we will assume that any after tax lump sum payment has no withholding applied.
Thank you!
From: Sheila Hutcheson !mailto:shutch9750 @aol.coml
Sent: Monday, August 22, 2011 8:54 AM
To: Niday, Tonya; tad @foster - foster.com
Subject: Fwd: Paulette Tubbs
Tonya,
Please advise. I thought you were going to email what you specifically needed.
Sheila Hutcheson
Pension Plan Administrator
3860 Grantline Road
Mims, FL 32754
321 - 267 -3082
321 - 267 -4728 (facsimile)
shutch9750 @aol.com
Original Message
Subject:Paulette Tubbs
Date:Mon, 22 Aug 2011 09:51:06 -0400
From:Tad Wasowicz <Tad @foster - foster.com>
To: <shutch9750 @aol.com>
Hi Sheila,
I am looking at your e-mail regarding Paulette Tubbs who was wanting to take her after tax contributions in a
lump sum.
According to Tonya Niday they need us to provide:
1. <! - -[if !supportLists]-- ><!-- [endif] - -> Total Contributions
2. <! - -[if ! supportLists ]-- ><!-- [endif] -- >Monthly accrued benefit with those contributions left in
3. <! - -[if ! supportLists ]-- ><!-- [endif] - -> Present value of #2
On our notification sheet we have already provided numbers 1 and 2. Can you confirm that we only need to
provide the present value of her monthly benefits going forward.
Also, is this something we will need to show you on the notification sheet going forward? Please let me know if I
am reading this correct, and if there is any other information I need to provide.
Thanks,
Thaddeus E. Wasowicz
Actuarial Analyst
Foster & Foster, Inc.
13420 Parker Commons Blvd Suite 104
Fort Myers, FL 33912
2 of 3 8/22/2011 10:23 A
tE: Paulette Tubbs - Edgewater General
Subject: RE: Paulette Tubbs - Edgewater General
From: "Niday, Tonya" <Niday.Tonya @principal.com>
Date: 8/19/20113 :30 PM
To: 'Sheila Hutcheson' <shutch9750 @aol.com>
CC: "Fredricks, Jill" <Fredricks.Jill @ principal.com>
Hi Sheila,
If an employee elects to take his /her after tax contributions in a lump sum and a monthly annuity
separately, in order to calculate federal withholding under the Tax Reform Act of 1986 (outlined in
IRS Notice 87 -13), we will need the following information:
1. Total contributions at ACD
2. Monthly accrued benefit at ACD with contributions left in
3. Present value of #2 above.
This is true for both the Police and General Edgewater plans. Without this information, we will
not withhold on the after -tax lump sum payment. Thanks!
Tonya Niday 1 Client Service Manager 11 1 Principal Financial Group 1 PO Box 9394, Des Moines, IA
50306 -9394 1 Overnight: 710 9th Street, Des Moines IA 50309 -15021 Phone (515)246 -4969 (800)543 -4015
ext. 649691 Fax (866)704 -3481 1 niday.tonya @principal.com
From: Sheila Hutcheson [mailto:shutch9750 @ aol.com]
Sent: Wednesday, August 17, 2011 4:09 PM
To: Niday, Tonya; Fredricks, Jill
Subject: Re: Paulette Tubbs - Edgewater General
Tonya,
Per our telecon, please email me specifically the information you need from Foster & Foster to
assess the tax status of after -tax member cont. refunds in conjunction with retirements. As I
stated, the same information from F &F was sent for the retirements of Donna Looney, Joe Manzi,
Wayne Nichols, and Tyna Hilton and tax was withheld on their after -tax refunds. When I had
questioned this in the past, you had sent some IRS information to support Principal's withholding
in this regard. In our conversation today, you said that, perhaps, Principal had requested further
information on Looney, Manzi, Nichols, and Hilton that would account for your withholding. We
are unaware of any such request, so please advise what you need going forward.
Sheila Hutcheson
Pension Plan Administrator
3860 Grantline Road
Mims, FL 32754
1 of 3 9/12/2011 9:40 A
tE: Paulette Tubbs - Edgewater General
321 - 267 -3082
321 - 267 -4728 (facsimile)
shutch9750 @aol.com
On 8/17/2011 12:09 PM, Niday, Tonya wrote:
Sheila,
Attached is a copy of the letter sent to Paulette for the lump sum distribution of her after -tax
contributions. Her annuity payment should follow in the next day or two and Jill or I will
forward a copy to your attention, as well.
Thanks!
Tonya Niday 1 Client Service Manager II 1 Principal Financial Group 1 PO Box 9394, Des Moines, IA
50306 -9394 1 Overnight: 710 9th Street, Des Moines IA 50309-15021 Phone (515)246 -4969
(800)543 -4015 ext. 649691 Fax (866)704 -3481 1 niday.tonya @principal.com
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2 of 3 9/12/2011 9:40 P