Loading...
HomeMy WebLinkAboutStaff Report 301-06City City of Palo Alto Manager’s Report 2 TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: HUMAN RESOURCES DATE:JULY 17, 2006 CMR: 301:06 SUBJECT:RESOLUTION OF INTENTION AND FIRST READING OF AN ORDINANCE TO AMEND THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM CONTRACT TO IMPLEMENT THE PRE- RETIREMENT OPTIONAL SETTLEMENT 2 DEATH BENEFIT FOR THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 1319 RECOMMENDATION Staff recommends that Council approve the attached resolution stating its intent to amend the contract between the California Public Employees’ Retirement System (CalPERS) and the City of Palo Alto to provide Section 21548 Pre-Retirement Optional Settlement 2 Death Benefits for City fire employees. This report also requests that Council hold the first reading of an ordinance to amend said contract as indicated. BACKGROUND The City of Palo Alto contracts with CalPERS to provide a retirement plan and benefits for regular employees. As a contracting agency, the City may amend its contract to provide various optional benefits offered by CalPERS, one of which being the Pre-Retirement Optional Settlement 2 Death Benefit. This benefit was negotiated by the International Association of Firefighters (IAFF), Local 1319 in 2004 when the City agreed to amend its contract with CalPERS to provide IAFF employees Section 21548 Pre-Retirement Optional Settlement 2 Death Benefits no later than June 30, 2006. Council authorized this benefit change when it approved the resolution to adopt the Memorandum of Agreement with IAFF, Local 1319 on August 9, 2004. (CMR 382:04.) DISCUSSION The Pre-Retirement Optional Settlement 2 Death Benefit allows the spouse or domestic partner of a member who dies before retirement but who was age-eligible to retire for service at the time of death to elect an alternative to the lump sum Basic Death Benefit, The alternative provides a monthly allowance equal to the amount the member would have received if he or she had retired from service on the date of death and elected the highest monthly allowancea member can leave a spouse or domestic partner. In order to amend the CalPERS contract to permit this alternative for IAFF members, CalPERS regulations require that Council approve a Resolution of Intention giving public notice of the intention to approve a specified amendment to the CalPERS contract. The CalPERS CMR: 301:06 Page 1 of 3 contract must be amended by ordinance, the first reading of which may be done concurrently with the Resolution of Intention, with a second reading no earlier than 20 days after adoption of the Resolution of Intention. RESOURCE IMPACT Amending the CalPERS contract for City fire members to provide Section 21548, Pre-Retirement Optional Settlement 2 Death Benefit, increases the accrued liability of the retirement plan benefits by $131,296 and increases the present value to $212,404 over a 20-year period. This change will increase the City’s employer contribution rate by 0.118% according to the CalPERS actuarial cost analysis conducted in February 2006, which used 2004 data as the valuation basis. This change represents an increase of approximately $12,000 annually over the City’s current payment for the employer share of pension costs. This increase is in contrast to the previous CalPERS actuarial cost analysis presented in 2004, which used 2002 data as the valuation basis, when CalPERS estimated the increase in the accrued liability of the retirement plan benefits to be $26,428 with an increase in the present value of $43,814, representing an approximate $4,000 increase to the City’s annual pension contribution The resulting increase over the 2002 change to annual cost is estimated at $8,000. According to CalPERS, since the 2002 valuation, its assumptions changed based on the firefighters demographic profile, which now indicates a projected retirement age greater than 50. This change increases the City’s exposure for payment of this death benefit and, accordingly, increases the annual cost. The 2006-2007 Adopted Budget has sufficient funds to cover the $12,000 annual cost for this benefit and no additional budget adjustments are necessary. POLICY IMPLICATIONS This request represents a change to the contract between the California Public Employees’ Retirement System (CalPERS) and the City of Palo Alto~ ENVIRONMENTAL REVIEW This is not a project under the California Environmental Quality Act (CEQA). ATTACHMENTS 1.IAFF, Local 1319 Memorandum of Agreement for the period of July 1, 2004 - June 30, 2006, Article XXIII, Retirement Benefits, Section 4. 2.Resolution of Intention to approve an amendment to the contract between the California Public Employees’ Retirement System (CalPERS) and the City of Palo Alto to provide Section 21548, Pre-Retirement Optional Settlement 2 Death Benefit for local fire employees, IAFF, Local 1319. c 3.Ordinance Authorizing An Amendment to the Contract between the California Public Employees’ Retirement System (CalPERS) and the City of Palo Alto. CMR: 301:06 Page 2 of 3 PREPARED BY: Sandra T.R. Blanch, Risk and Benefits Manager DEPARTMENT HEAD: RUSS CARLSEN Director of Human Resources CITY MANAGER APPROVAL:EMII_k-Y HAR -- ~---7~-- ~4"- RISON Assistant City Manager CMR: 301:06 Page 3 of 3 Attachment 1 ARTICLE XXIII - RETIREMENT BENEFITS Section 1. The current Public Employees’ Retirement System (PERS) benefits, known as the "3 percent at 50" Plan shall continue in effect. Employees in represented classes will make PERS member contributions by payroll deduction. The City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). Section 2. Military Service Credit. The City will provide the Public Employees’ Retirement System benefit known as "Section 20930.3, Military Service Credit as Public Service," Section 3. PERS Retirement Formula. The Citywill maintain a "3% @ 50" formula for IAFF representation unit members. Section 4. Option 2 Death Benefit. No later than June 30, 2006 the City will amend its PERS contract to provide the Pre-Retirement Option Settlement 2 Death Benefit. The Pre-Retirement Optional Settlement 2 Death Benefit provides the spouse of a deceased member, who was eligible to retire for service at the time of death, with an alternate option to the lump sum Basic Death Benefit whereby the surviving spouse can elect a monthly allowance equal to the amount the member would receive if he/she had retired from service on the date of death and elected Optional Settlement 2 (the highest monthly allowance a member can leave a spouse). Section 5. EPMC. The City will continue paying the employees 9% PERS contribution. This payment will be reported to PERS as special compensation making the 9% "PERSable". Effective June 30, 2006, or the closest payroll date, the City will discontinue paying the employees’ 9% PERS conversion, concurrently salaries will be increased by 9%. ARTICLE XXlV - RETIREMENT MEDICAL PLAN Section 1. Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees’ Medical and Hospital Care Act Resolution. Retiree Medical coverage for Unit employees hired after January 1, 2004 shall be as follows: a) Twenty (20) year vesting in PERS system for the full retiree medical benefit, including a minimum of five (5) years with City of Palo Alto. Eligible employees te receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent and Ninety (90%) percent for dependents ef4he-State. The City of Palo Alto’s health premium contribution for eligible post January 1, 2004 hires shall be the minimum contribution set by PERS under Section 22825.5 based on a weighted average of available health plan premiums. 14 ***NOT YET APPROVED*** RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM AND THE CITY COUNCIL, CITY OF PALO ALTO TO IMPLEMENT THE PRE- RETIREMENT OPTIONAL SETTLEMENT 2 DEATH BENEFIT FOR LOCAL FIRE MEMBERS WHEREAS, the Public Employees’ Retirement Law permits the participation of public agencies and their employees in the Public Employees’ Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law; and WHEREAS, one of the steps of the procedures to amend this contract is the adoption by the governing body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the change proposed in said contract; and change: WHEREAS, the following is a statement of the proposed To provide Section 21548 (Pre-Retirement Optional Settlement 2 Death Benefit) for local fire members only. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION i. That the Council of the City of Palo Alto does hereby give notice of intention to approve an amendment to the contract between the City of Palo Alto and the Board of Administration of the Public Employees’ Retirement System, a copy of said amendment being attached hereto, as an "Exhibit" and by this reference made a part hereof. /// /// /// /// 060711 cs 8260289 ***NOT YET APPROVED*** SECTION 2. The Council finds that this is not a project under the California Environmental Quality Act .and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Mayor APPROVED: City Attorney City Manager Director of Human Resources Director of Administrative Services 060711 cs 8260289 CalPERS California Public Employees’ Retirement System EXHIBIT AMENDMENT TO CONTRACT California Between the Board of Administration Public Employees" Retirement and the City Council City of Palo Alto System The Board of Administration, California Public Employees’ Retirement System, hereinafter referred to as Board, and the governing body of the above public agency, hereinafter referred to as Public Agency, having entered into a contract effective January 1, 1942, and witnessed March 9, 1942, and as amended effective January 1, 1948, April 1, 1949, January 1, 1952, July 1, 1954, February 1, 1956, November 1, 1964, September 23, 1968, December 14, 1970, February 1, 1974, July 8, 1974, January 5, 1975, April 1, 1975, September 11, 1977, July 1, 1979, February 21, 1981, July 11, 1981, December 12, 1981, June 12, 1982, September 17, 1983, November 12, 1983, February 11, 1991, October 15, 1994, December 10; 1994, February 27, 1996, October 15, 1998, January 1, 1999, October 14, 1999, July 1, 2000, October 20, 2001 and March 9, 2002 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: Paragraphs 1 through 12 are hereby stricken from said contract as executed effective March 9, 2002, and hereby replaced by the following, paragraphs numbered 1 through 12 inclusive: PLEASE DO NOT SIGN "EXHIBIT ONLY" All words and terms used herein which are defined in the Public Employees’ Retirement Law shall have the meaning as defined therein Unless otherwise specifically provided. "Normal retirement age" shall mean age 55 for local miscellaneous members and age 50 for local safety members. Public Agency shall participate in the Public Employees’ Retirement System from and after January 1, 1942 making its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees’ Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except those, which by express provisions thereof, apply only on the election of a contracting agency. Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement: Local Fire Fighters (herein referred to as local safety members); b.Local Police Officers (herein referred to as local safety members); Employees other than local safety members (herein referred to as local miscellaneous members). In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System: PROJECT PROFESSIONAL; PROJECT MANAGER; PROJECT TECHNICIAN; PROJECT ASSISTANT; PROJECT LABORER; LANDSCAPE MAINTENANCE , TRAINEE; LIBRARY PAGE; RECREATION LEADER; WATER SAFETY INSTRUCTOR/LIFEGUARD; AND POOL MANAGER HIRED ON OR AFTER OCTOBER 14, 1999. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member shall be determined in accordance with Section 21354 of Said Retirement Law (2% at age 55 Full). PLEASE DO NOT SIGN "EXHIBIT ONLY" o ° The percentage of final compensation to be provided for each year of credited prior and current service as a local safety member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). Public Agency elected and elects to be subject to the following optional provisions: a.Section 21571 (Basic Level of 1959 Survivor Benefits). Section 21222.1 (One-Time 5% Increase - 1970). Legislation repealed said Section effective January 1, 1980. Section 21222.2 (One-Time 5% Increase - 1971). Legislation repealed said Section effective January 1, 1980. Section 21319 (One-Time 15% Increase for Local Miscellaneous Members Who Retired or Died Prior to July 1, 1971). Legislation repealed said Section effective January 1, 2002, Section 21325 (One-Time 3% to 15% Increase For Local Miscellaneous Members and Local Safety Members Who Retired or Died Prior to January 1, 1974). Legislation repealed said Section effective January 1, 2002. Section 20042(0ne-Year Final Compensation). Section 21317 (One-Time 15% Increase for Certain Local Safety Members Who Retired for Service Retirement). Legislation repealed said Section effective January 1, 2002. Section 21326 (One-Time 1% to 7% Increase For Local Miscellaneous Members and Local Safety Members Who Retired or Died Prior to July 1, 1974). Legislation repealed said Section effective January 1, 2002. Section 21024 (Military Service Credit as Public Service); Section 20692 (Employer Paid - -Member- Contributions Converted to Payrate During theFinal Compensation Period) for local miscellaneous members and local safety members in the following groups: bu NOT o uN EXHIBIT ONLY" o 10. Local miscellaneous members who are Management and confidential employees; Local police members who are Management and confidential employees; Local fire members who are Management and confidential employees; Local miscellaneous members represented by Local 715, SEIU AFLLCIO and CLC; and Local police members represented by the Palo Alto Peace Officer’s Association. Section 20434.5 ("Local Fire Fighter" shall include any officer or employee of a fire department employed to perform hazardous materials services as described in Government Code Section 20434.5). Section 21548 (Pre-Retirement Optional Settlement 2 Death Benefit) for local fire members only. Public Agency, in accordance With Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on September 11, 1977. Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20834, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20834. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability with respect to local miscellaneous members and local safety members of said Retirement System. Public Agency shall also contribute to said Retirement System as follows: ao A reasonable amount, as fixed by the Board, payable in one installment within 60 days of date of contract to cover the costs of administering said System as it affects the employees of -Public Agency, not including the costsof:special-valuations-or of the periodic investigation and valuations required by law. A reasonable amount, as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic investigation and valuations required by law. " 11.Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees’ Retirement Law, and on account of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law. 12.Contributions required of Public Agency and its .employees shall be paid by Public Agency to the Retirement System within fifteen days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances. Adjustments on account of errors in contributio~required of any employee may be made by direct payments the employee and the Board. B. This amendment shall be on the __ day of BOARD OF ADMINISTRATI(CITY COUNCIL PUBLIC EMPLOYEES’ R iMENT SYSTEM CITY OF.PALO ALTO BY .,.’BY LORI MCG.A~,,.~ND, CHIEF PRESIDING OFFICE~B’~.,.~’(,"~’ EMPLO~I~RVICES DIVISION PUBLIC"I~i~PLOYEES’ RETIREMENTSYSTEM ,,,~,,-:~" ~X~ "~ttest: Clerk AMENDMENT ER# 14 PERS-CON-702A (Rev. 10\05) ***NOT YET APPROVED*** ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM AND THE CITY COUNCIL, CITY OF PALO ALTO TO IMPLEMENT THE PRE-RETIREMENT OPTIONAL SETTLEMENT 2 DEATH BENEFIT FOR LOCAL FIRE MEMBERS The Council of the City of Palo Alto does ORDAIN as follows: SECTION I. Findings and Declarations. The City Council finds and declares as follows: That an amendment to the contract between the City Council of the City of Palo Alto and the Board of Administration, California Public Employees’ Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit, and by such reference made a part hereof as.though herein set out in full. SECTION 2. The Mayor of the City Council, City of Palo Alto, is hereby authorized, empowered, and directed to executesaid amendment for and on behalf of the City of Palo Alto. /// /// /// /// /// /// /// /// 060711 cs 8260290 1 ***NOT YET APPROVED*** SECTION 3. This ordinance shall take effect 31st day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Mayor APPROVED: City Attorney City Manager Director of Human Resources Director of Administrative Services 060711 cs 8260290 CalPERS California Public Employees’ Retirement System EXHIBIT AMENDMENT TO CONTRACT California Between the Board of Administration Public Employees" Retirement and the City Council City of Palo Alto System The Board of Administration, California Public Employees’ Retirement System, hereinafter referred to as Board, and the governing body of the above public agency, hereinafter referred to as Public Agency, having entered into a contract effective January 1, 1942, and witnessed March 9, 1942, and as amended effective January 1, 1948, April 1, 1949, January 1, 1952, July 1, 1954, February 1, 1956, November 1, 1964, September 23, 1968, December 14, 1970, February 1, 1974, July 8, 1974, January 5, 1975, April 1, 1975, September 11, 1977, July 1, 1979, February 21, 1981, July 11, 1981, December 12, 1981, June 12, 1982, September 17, 1983, November 12, 1983, February 11, 1991, October 15, 1994, December 10; 1994, February 27, 1996, October 15, 1998, January 1, 1999, October 14, 1999, July 1, 2000, October 20, 2001 and March 9, 2002 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: - A.- -___Par~a_graphs 1 through i2 are herebystricken from said contract as executed effective March 9, 2002, and hereby replaced by the following, paragraphs numbered 1 through 12 inclusive: PLEASE DO NOT SIGN "EXHIBIT ONLY" All words and terms used herein which are defined in the Public Employees’ Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 55 for local miscellaneous members and age 50 for local safety members. Public Agency shall participate in the Public Employees’ Retirement System from and after January 1, 1942 making its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees’ Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except those, which by express provisions thereof, apply only on the election of a contracting agency. o Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement: Local Fire Fighters (herein referred to as local safety members); b.Local Police Officers (herein referred to as local safety members); Co Employees other than local safety members (herein referred to as local miscellaneous members). In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System: au PROJECT PROFESSIONAL; PROJECT MANAGER; PROJECT TECHNICIAN; PROJECT ASSISTANT; PROJECT LABORER; LANDSCAPE MAINTENANCE -TRAINEE; LIBRARY PAGE; RECREATION LEADER; WATER SAFETY INSTRUCTOR/LIFEGUARD; AND POOL MANAGER HIRED ON OR AFTER OCTOBER 14, 1999. 5.The percentage of final compensation to be provided for each year of credited prior and cuErent service as a local, miscellaneous member ..........................shall--be-determined-~in- accordance- with- Section -2-1354---of - Said Retirement Law (2% at age 55 Full), PLEASE DO NO-[ SIGN "EXHIBIT ONL’{" o The percentage of final compensation to be provided for each year of credited prior and current service as a local safety member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). Public Agency elected and elects to be subject to the following optional provisions: a.Section 21571 (Basic Level of 1959 Survivor Benefits). Do Co do Section 21222.1 (One:Time 5% Increase- 1970). Legislation repealed said Section effective January 1, 1980. Section 21222.2 (One-Time 5% Increase - 1971). Legislation repealed said Section effective January 1, 1980. Section 21319 (One-Time 15% Increase for Local Miscellaneous Members Who Retired or Died Prior to July 1, 1971). Legislation repealed said Section effective January 1, 2002, Section 21325 (One-Time 3% to 15% Increase For Local Miscellaneous Members and Local Safety Members Who Retired or Died Prior to January 1, 1974). Legislat!on repealed said Section effective January 1, 2002. Section 20042(One-Year Final Compensation). Section 21317 (One-Time 15% Increase for Certain Local Safety Members Who Retired for Service Retirement). Legislation repealed said Section effective January 1, 2002. ho Section 21326 (One-Time 1% to 7% Increase For Local Miscellaneous Members and Local Safety Members Who Retired or Died Prior to July 1, 1974). Legislation repealed said Section effective January 1, 2002. Section 21024 (Military Service Credit as Public Service); ..... Section-_~20692_~ (Employer ...... Paid ~Member~Contdbutions. ....... ................. Genverted--to--Payrate During-the-Final-Compensation-Period) .... for local miscellaneous members and local safety members in the following groups: DO hOI iGN "EXHIBIT ONLY" Local miscellaneous members who are Management and confidential employees; Local police members who are Management and confidential employees; Local fire members who are Management and confidential employees; Local miscellaneous members represented by Local 715, SEIU AFL:-CIO and CLC; and Local police members represented by the Palo Alto Peace Officer’s Association. 10. No Section 20434.5 ("Local Fire Fighter" shall include any office~ or employee of a fire department employed to perform hazardous materials services as described in Government Code Section 2.0434.5). Section 21548 (Pre-Retirement Optional Settlement 2 Death Benefit) for local fire members only. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on September 11, 1977. Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20834, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20834. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability with respect to local miscellaneous members and local safety members of said Retirement System. Public Agency shall also contribute to said Retirement System as follows: a.A reasonable amount, as fixed by the Board, payable in one installment within 60 days of date of contract to cover the costs of administering said.- System as Jtaffects~the -employees ~of ...........................Public Agency,--~not-including the-costs oflspecial valuations or of the periodic investigation and valuations required by law. Do A reasonable amount, as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic investigation and valuations required by law. 11. 12. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees’ Retirement Law, and on account of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law. Contributions required of Public Agency and its.employees shall be paid by Public Agency to the Retirement System within fifteen days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances. Adjustments on account of errors in contributiol required of any employee may be made by direct payments the employee and the Board. Bo This amendment shall be on the ~ day of BOARD OF ADMINISTRATI( PUBLIC EMPLOYEES’ R :_MENT SYSTEM LORI MCG~.~ND,..C IEF EM PLOY_EE;b-’ERVlCES DIVISION PUBLIC~.~LOYEES’ RETIREMENT SYSTEM AMENDMENT ER# 14 PERS-CON-702A (Rev. 10\05) Clerk