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HomeMy WebLinkAbout08-23-1994 Minutes GENERAL EMPLOYEES' RETIREMENT TRUST FUND (PENSION MEETING) August 23, 1994 The meeting was called to order at 9:12 a.m. in the Community Center by Chairman Miller. PRESENT: Chairman Miller, Members Grafton, Oliver, and Waldrop. Also present were Attorney Christiansen, Actuary Garrett, and Clerk/Stenographer Lewis. ABSENT: Member Shiver. APPROVAL OF THE MINUTES Member Oliver seconded b Secretar Grafton moved to a. 'rove the minutes of Ma 16 1994. Motion carried 4-0. QUESTIONS/COMMENTS FROM AUDIENCE None APPROVAL/ADOPTION OF FORMS Attorney Christiansen presented a package of forms for handling various administrative matters of the Pension Plan. Each form was discussed with the Board requesting minor changes and adding the social security number on selected forms. Attorney Christiansen will prepare the forms for final approval at the September meeting. Member Miller suggested using a different color paper for each form. AMERICAN DISABILITIES ACT (ADA) Attorney Christiansen explained the American Disabilities Act was a Federal law that was passed by the Legislature to protect the rights of disabled person seeking employment or who are employed and as a result of a disability become unemployed. If someone is making application for employment and has a disability, the ADA requires that an employer is not allowed to not hire a person just because they have a disability. The General Employees' Pension Plan does not have a disability provision. Mr. Christiansen said that while it did not impact the General Plan, it is usually recommended to most Police/Fire Plans to place provisions that would exclude those conditions for eligibility for disability. REPORTS ATTORNEY Attorney Christiansen reported that the Internal Revenue Service (IRS) had passed a provision which placed a cap on the amount of salary that can be used in the calculation of pension benefits not to exceed an annual salary of $150,000. Anyone who is a member of the Plan as of 1996 would be exempt from the cap. He recommended waiting until the end of 1995 to incorporate the $150,000 cap in the plan as the IRS may change the rules again. OTHER BUSINESS L, BILLS AUTHORIZED FOR PAYMENT Secretary Grafton requested approval of the Board to present to Key Trust for payment the General Employees' Retirement Trust Fund (Pension Meeting) August 23, 1994 following bills: 1. Christiansen & Delmer, P.A. $1,304.31 2. Investment Counsel Company 1,063.86 3. Judie Lewis, Clerk/Stenographer (May 1994) 66.20 4. Postage .98 Member Oliver, seconded by Member Waldrop, moved to approve payment of the bills as presented. Motion carried 4-Q General Employees' Board RECESSED TO JOINT MEETING - 10:00 A.M. JOINT MEETING/GENERAL EMPLOYEES'/POLICE OFFICERS'/FIREFIGHTERS' PENSION BOARDS Chairman Reed called the Police Officers/Firefighters' Pension Board to order at 10:00 A.M. PRESENT: Chairman Reed, Members Gledich, Strosnider, Williams, and Wilson. ABSENT: None. Chairman Reed announced that this was a joint session of the Police Officers'/Firefighters and the General Employees' Pension Boards. ACTUARY REPORT Mr. Garrett of Foster and Foster, Inc., presented the quarterly report as of June 30, 1994 for the General Plan and explained the analysis of the investment performance of the Plan. The average annual rate of return for the Fund during this period was 4.6%. This rate of return failed to outperform the composite index of market indicators (40% S&P 500 Composite Stock Index, 55% Lehman Brothers Government/Corporate Bond Index, and 5% U.S. Treasury Bills) which registered a return of 6.4%. During the one year period ending June 30, 1994, the Fund registered an -1.4% rate of return (compared with -0.1% for the composite index of market indicators) and ranked in the 71st percentile of the Cadence Universe of investment managers. The equity portion of the Fund failed to outperform the S&P 500 (-2.4% vs 1.4%) and ranked in the 82nd percentile for the one year period. Mr. Garrett presented the quarterly report for the Police/Fire Plan and explained the average annual rate of return for the Fund during this period was 3.9%. This rate of return failed to outperform the composite index of market indicators (40% S&P 500 Composite Stock Index, 55% Lehman Brothers Government/Corporate Bond Index, and 5% U.S. Treasury Bills) which registered a return of 6.4%. During the one year period ending June 30, 1994, the Fund registered a -1.8% rate of return (compared with -0.1% for the composite index) and ranked in the 77th percentile in the Cadence Universe of investment managers. The equity portion of the 2 General Employees' Retirement Trust Fund (Pension Meeting) August 23, 1994 Fund failed to outperform the S&P 500 (-4.0% vs. 1.4%) and ranked in the 86th percentile for the one year period. ANALYSIS OF INVESTMENT FIRMS Actuary Garrett reported that only a limited number of brokers had responded to the RFP's and recommended that the Board hear the presentations of Davis Hamilton Jackson, Sun Bank, and Nationsbank. Member Oliver, seconded by Secretary Grafton, directed on behalf of the General Employees' Pension Board, that the Actuary contact Sun Bank, Davis Hamilton Jackson, and Nationsbank regarding broker presentation at the September 28, 1994 meeting. Motion carried 4-0. Chairman Reed, seconded by Member Strosnider, directed on behalf of the Police/Fire Pension Board, that the Actuary contact Sun Bank, Davis Hamilton Jackson, and Nationsbank regarding broker presentation at the September 28, 1994 meeting. Motion carried 5-0. MONEY MANAGER Greg Hoperaft, Vice President of The Investment Counsel Company, presented a list of municipal clients that the ICC had built over a long period of time and addressed reasons why the Board should continue with ICC. Member Williams asked who in the ICC makes the decision on how to spend and Mr. Hoperaft said that there are five different people in the firm who make that decision. He will send a chart to Secretary Grafton of a one year rolling return at 3-10-15. Actuary Garrett pointed out that The Investment Counsel did a quality job on larger funds (in comparison to the size of the Ocoee Pension funds). Member Gledich left the meeting at 11:15 A.M. Chairman Miller announced the Pension Boards would meet on September 28, 1994 using the following schedule: at 9:00 a.m., General Employees' Board; 10:00 a.m., Joint Board to hear broker presentations; and the Police/Fire Board will meet one hour after adjournment of the Joint Board. RECESS (POLICE OFFICERS'/FIREFIGHTERS' BOARD) 12:00 - 1:00 P.M. The General Employees' Board reconvened their regular meeting at 12:00 p.m. OTHER BUSINESS Secretary Grafton reported the following: 3 General Employees' Retirement Trust Fund (Pension Meeting) August 23, 1994 1) Ricky Waldrop had been the only General employee to submit a letter to qualify for seat of trustee. There had been no opposition and Mr. Waldrop will serve a two year term beginning October 1, 1994 and ending September 31, 1996. 2) Terri McClung was moving out of state and had resigned from The Investment Council Company. 3) The Summary Plan Descriptions and the Selected Provision to the Operating Rules and Procedures had been signed and delivered to membership. 4) That the Legislation that Attorney Christiansen had discussed earlier had nothing to do with the General Employees'Plan but would affect the Police/Fire Plan. FIDUCIARY INSURANCE Chairman Miller read a letter from the City Manager regarding Fiduciary Insurance and asked the Board to wait until the September meeting to resolve the issue. The insurance was more costly than anticipated and Actuary Garrett will be looking at other options for the Board. He will report the findings to Secretary Grafton. Member Oliver requested Actuary Garrett to report the one year fee, ending July 31, 1994, for services of The Investment Counsel at the next meeting. Mr. Garrett said that he would do the same for the Police/Fire Board. Member Waldrop moved to adjourn the meeting, however, no action was taken. CONFERENCES - Mr. Christiansen announced (1) that the FPPTA conference, September 19-20, 1994 in Palm Beach Gardens at the PGA resort; and (2) that the State of Florida's Division of Retirement Annual Conference, October 11-12, 1994 at the Radison Hotel in Orlando. Chairman Miller asked if anyone would be attending the conference and Secretary Grafton said she would like direction from the Board regarding payment of those attending the conferences. Secretary Grafton, seconded by Member Oliver, moved to authorize the Board Secreta to make arran.ements for members attendin. the conferences in Se.tember and October, 1994 and that the Board will pay their expenses to the conference. Motion carried 4-0. Secretary Grafton explained the City no longer gives employees leave with pay to attend these conferences and asked if the Board needed to change the requirements. Discussion ensued on whether the Fund or the City should pay for educational training of members. Member Waldro e seconded b Member Oliver move to amend the O.eratin. Rules and Procedures Section 1.9, to read "Each Trustee shall be encouraged to attend a seminar or conference ..." Motion carried 4-0. 4 (le General Employees' Retirement Trust Fund (Pension Meeting) August 23, 1994 Chairman Miller directed the Fund's attorney to make such changes and send a copy to the Board Secretary to be kept on file. Attorney Christiansen said he will include the date of the change on the bottom corner of the page. ADJOURNMENT The meeting was adjourned at 12:09 p.m. Respectfully submitted, Judie F. Lewis Clerk/Stenographer L 5 L CITY OF OCOEE GENERAL EMPLOYEES' RETIREMENT TRUST FUND (PENSION MEETING) August 23, 1994 As notice had been posted that the Board would hear comments and questions at 5:00 P.M. from (iv employees regarding the Summary Plan Description and the Selected Provisions of Operating Rules and Procedures of the Board Pertaining to Members of the Plan that had been distributed to each member on July 22, 1994, Secretary Grafton and Clerk/Stenographer Lewis were present to hear and record any questions raised. Present was Mayor Vandergrift. No employees appeared at the meeting. ADJOURNMENT The meeting was adjourned at 5:30 p.m. Respectfully submitted, udie F. Lewis C)‹taii-ALI Clerk/Stenographer L