HomeMy WebLinkAbout08-07-2019 MinutesTHE CITY OF OCOEE POLICE OFFICERS'/FIREFIGHTERS'
RETIREMENT FUND BOARD MEETING — August 7, 2019
Chairman Brown called the meeting of the City of Ocoee Police Officers'/Firefighters' Retirement
Trust Fund to order at 1:00 p.m. in the Commission Chambers of City Hall.
Trustees Present: Bryan Pace, Joe Moy, Trey Littlefield and William Maxwell
Absent and Excused: Chairman Charles Brown
Others present:
Tyler Grumbles of AndCo. Consulting, Board Attorney, Pedro Herrera of Sugarman and Susskind,
and Fund Administrator Pete Prior.
Call to Order:
Roll call and determination of quorum
The roll was called and a quorum declared present.
Approval of Minutes from Regular Meeting dated May 1, 2019
Chairman Brown asked the board if there were any corrections, deletions, or additions to the
minutes. Hearing and seeing none Trustee Maxwell moved to approve the minutes and Trustee
Pace seconded the motion and the motion passed.
Public Comments:
James Berish Benefit Option Change
Officer Berish addressed the board regarding the benefit option issue noting that he would like to
change his benefit option to the life only. A lengthy discussion ensued regarding this issue and it
was noted that the Actuary and the Attorney should discuss this issue at length. Trustee Maxwell
moved to have the Attorney and Actuary discuss the matter with the Chairman to determine a
resolution and have a special meeting within 30 days. Trustee Littlefield seconded the motion
and the motion passed.
Alan Savoie
Fire member Savoie addressed the board inquiring on how to determine the cost of increasing the
benefit level back to the previous amount of 3.5% from the 3.25%. Mr. Herrera advised the
member that the board could contact the actuary to determine the costs.
Quarterly Investments Update: Q/E 6/30/19
Mr. Tyler Grumbles addressed the board provided a brief report on the noting that after the end
of the down quarter, the markets came back strongly during the second quarter of 2019. The total
fund earned 3.22% versus the benchmark of 3.53%. The Equity Fund returned 4.19% vs. the
Equity policy of 3.88%. The Domestic Equity returned 4.25% vs. the Domestic Equity policy of
4.10%. GAMCO returned 2.63% vs. the Russell 3000 Value of 3.68%, Vanguard returned
4.09% vs. the CRSP U.S. Total Market index of 4.08%, Alger and Mar Vista returned 5.45% and
6.19% respectively vs. the Russell 1000 growth index of 4.64%. American Funds International
Equity returned 3.87% vs. the MSCI index of 3.22%.
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The total Fixed income return was 1.99% vs. the policy of 3.08%. Garcia Hamilton returned
2.20% vs. the Barclays' Aggregate of 3.08%. Templeton Global returned 0.80% vs. the FTSE
World Government index of 3.57%. American Realty returned 1.53% vs. the NCREIF-ODSE
index of 1.35°/x.
Mr. Grumbles reported on the compliance report noting that there are mostly affirmative with the
exception of GAMCO. He also noted Mr. Nash will review the GAMCO manager with the board
as well as possible replacement managers at the next meeting. Mr. Grumbles thanked the Board
for their business.
Financial Statements
Mr. Cristini and Ms. Bittinger addressed the board regarding the financials of the plan. Mr.
Cristini noted the plan is doing well and found no issues with administration of the plan and is
pleased to provide a clean opinion, which is the highest opinion rendered. Mr. Cristini also
noted that GASB excludes smoothing for the purposes of preparing the audit but the plan does
use the smoothing method. Ms. Bittinger reported that the Employer contributions were
$2,297,293 and Employee contributions were $616,991 totaling $2,914,284. The chapter 175
and 185 monies received were $296,206 and $340,382 respectively. The net appreciation was
$2,682,735, the interest totaled $260,363, the dividends totaled $1,152,990, the investment
expenses totaled $201,407 The benefit payments with service retirees totaled $1,939,466,
disabilities totaling $181,068, DROP retirees totaling $491,045; partial lump sums totaling
$121,210, share plan payments of $11,382, Refunds of contributions totaling $56,291 and the
administrative expenses totaled $132,596 for the total deductions of $4,512,895. At the
beginning of the fiscal year, the net position restricted for pensions was $50,628,179 and at the
end of the fiscal year the net position totaled $55,141,074.
Ms. Bittinger reported on the demographics of the Fund noting that there are a total of 95 retired
members with 69 members receiving benefits and 26 vested terminated members. and the
administrative expenses totaled $132,596. There are currently 121 active members with 58
being vested employees and 73 being non vested employees. Ms. Bittinger reported on the plan
provisions noting that a member may retire with normal benefits after reaching age 55 and 7 or
more years of service or 25 years of service. The benefit multiplier is 3.5% of the member's final
average compensation. The accrual rate for firefighters hired after September 30, 2015 and
police officers hired after May 16, 2017 is 3.25%; the maximum benefit is 81.25% of average
final compensation and the vesting of 7 years of service. A member with 7 or more years of
service is eligible for deferred retirement. The benefits begin upon application or after reaching
age 45 and the benefits are computed the same as normal retirement. Disabilities for police
officers hired after May 16, 2017 for service or non -service related disabilities are calculated at
55% of the average final compensation. Death benefit for any deceased vested employee who is
actively employed and eligible for normal or deferred retirement, the benefit shall be payable to
the members' designated beneficiary at least equal to the annuity of 10 years calculated as of the
date of death. Non -vested death benefits are based on the members' accumulated contributions.
After the presentation, Trustee Moy moved to approve the 10/1/18 financial statements and
Trustee Pace seconded the motion and the motion passed.
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2019 Audit Contract
Ms. Bittinger reported on the merger with the new company Saltmarsh, Cleveland and Gund
noting that the only thing that's changing is the name and that the service will remain the same,.
That being said, Trustee Pace moved to approve the Saltmarsh contract and Trustee Maxwell
seconded the motion and the motion passed.
Ordinance change Re: retired members to be rehired without paying into or losing a
current pension benefit.
The Attorney was given direction to amend the ordinance for allowing in-service distribution
that will allow the police department to re -hire police officers in some capacity to act as a School
Resource Officer with the department.
Presumption of Cancer Ordinance for Adoption
The Attorney reported that Senate Bill 426 provides certain benefits to a firefighter upon receiving a
diagnosis of any of the 21 types of cancer providing certain conditions are met. The Member must be
actively employed for at least 5 years, must have abstained from the use of tobacco products for the last 5
years and providing they were not employed at another department within the last 5 years. It requires an
employer to make certain disability payments to a firefighter in the event of a total and permanent
disability and provides for death benefits to a firefighter's beneficiary if a firefighter dies as a result of
cancer or cancer treatments. Even if the member is covered by their own insurance, this bill provides
timely reimbursements for out of pocket costs, deductibles, copayments or co-insurance cost incurred
during the treatments and provides a one-time cash payment of $25,000.
Proposed Administrative Budget
Mr. Prior noted that the proposed budget was prepared increasing the 2018 expenses by 5% with
the exception of Benefits USA. The total for the 2019-2020 budget is $221,880. He also noted
that because the Fund exceeded the budget for the 2018 expenses that a special meeting was held
to amend the 2018 budget. The revised budget for 2018 was $196,291. Trustee Moy moved to
approve the 2019-2020 administrative budget and Trustee Pace seconded the motion and the
motion passed.
Unfinished Business:
Amended operating rules and procedures
It was noted that the Ordinance in packet did not reflect the new language and this item was tabled.
Consent Agenda:
For Approval: Warrant #183
Benefits USA, Inc. (Administration Fee for August 2019)
Fiduciary Trust (Q2-19 Custodian Fee-GHA; Invoice dated 7/16/19)
Fiduciary Trust (Q2-19 Custodian Fee-GAMCO Invoice dated 7/16/19)
Fiduciary Trust (Q2-19 Custodian Fee -Mar Vista Invoice dated 7/16/19)
Fiduciary Trust (Q2-19 Custodian Fee -R&D Invoice dated 7/16/19)
GAMCO (Q2-19 Mgmt Fee -Inv #20190630-157-4967-A dated 7/11/19)
Mar Vista (Q2-19 Mgmt Fee -Inv #5692; a/c #41247 dated 7/11/19)
Foster and Foster (Services Rendered -Invoice #15084 dated 8/5/19)
Total
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$2,100.00
$1,497.10
$1,261.38
$730.31
$2885.61
$18,921.00
$6,576.33
$10,835.00
$44,806.73
For Ratification: Warrants #180-182
AndCo (2°d Qtr. 19 Consulting Fee -Invoice #32443 dated 6/14/19)
$6,250.00
Benefits USA, Inc. (Administration Fee for June 2019)
$2,100.00
Christiansen & Delmer (Legal Fees -Invoice #33331 dated 5/31/19)
$3,236.13
FPPTA (Annual Conference Registration for William Maxwell)
$700.00
William Maxwell (Per Diem to attend the FPPTA Annual Conference)
$160.00
Total
$12,446.13
Benefits USA, Inc. (Administration Fee for July 2019)
$2,100.00
William Maxwell (Hotel reimbursement for FPPTA Annual Conference)
$604.14
Total
$2,706.14
Garcia Hamilton (Q1-19 Mgmt Fee -Invoice #30376 dated 4/3/19)
$7,351.55
Garcia Hamilton (Q2-19 Mgmt Fee -Invoice #30710 dated 7/8/19)
$7,517.31
Total
$14,868.86
Pension Disbursements for Ratification:
Yancy Cleveland (Monthly Benefit payments effective 7/1/19) $7,343.56
Roxanne Traeger (Refund of Contributions) $14,795.03
Total $22,138.59
Trustee Moy moved to approve the consent agenda and Trustee Pace seconded the motion and
the motion passed.
Attorney's Report:
The Attorney reported on the American Disabilities Act noting that this has become an issue in
some cities. Attorney Herrera noted that any requiring information that is available to all
members of the public, regardless of disabilities must be sent in compliance with the ADA. For
example, if a person is blind, they can send and receive information audibly rather than in
writing. If a document is sent in PDF, it must be in the specific PDF format that complies with
ADA requirements.
Administrator's Report:
Mr. Prior had nothing further to report.
Miscellaneous Correspondence:
No action was needed.
Comments from Trustees:
Next Regular Meeting date: November 6, 2019 at 1:00 pm.
Adjournment: The meeting adjourned at 2:57 pm.
Contact the City Clerk's Office to listen to an electronic copy of the complete minutes.
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