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Home My WebLink About02-13-1996 Minutes THE CITY OF OCOEE GENERAL EMPLOYEES' RETIREMENT TRUST FUND (PENSION BOARD MEETING) - February 13, 1996 In the absence of Chairman Miller, Acting Chairman Grafton called the regular meeting of the City of Ocoee General Employees' Retirement Trust Fund to order at 3:08 p.m. in the Commission Chamber Conference Room of City Hall. The roll was called and a quorum declared present. PRESENT: Acting Chairman Grafton, Members Dabbs, Oliver, and Waldrop. Also present were Actuary Garrett, Attorney Christiansen, Money Manager Ballew, and Clerk/Stenographer Lewis. ABSENT: Chairman Miller. APPROVAL OF MINUTES OF NOVEMBER 29, 1995 AND JANUARY 15, 1996. Attorney Christiansen corrected the January 15, 1996 minutes, Conduct of Meeting Via Telecommunication on page 3, to read "...Mr. Cypen..." rather than "...Mr. Syphon..." Member Waldro I seconded b Member Oliver moved to a. 'rove the Minutes of the November 29 1995 as 'resented and also the Janua 15 199: General Em i to ees' Retirement Trust Fund meeting as corrected. Motion carried 3-0. QUESTIONS/COMMENTS FROM AUDIENCE None REPORTS MONEY MANAGER Money Manager Ballew presented the Board with the following: 1) Proxy Voting records from SunTrust. 2) Explained the loss of a $1026.90 error, and said that the Fund had been reimbursed for the loss in International Investments. 3) The analysis of the investment performance of the General Employees' Retirement Trust Fund for the period ending December 31, 1995. Member Dabbs arrived to the meeting at 3:25 p.m. PERFORMANCE MONITOR Performance Monitor Garrett presented an analysis of the investment of the General Employees' Retirement Trust Fund for the period from January 1, 1994 to December 31, 1995. In response to Attorney Christiansen regarding diversification, Monitor Garrett said that, rather than adding another, the monitor wanted to continue using the S&P 500 as the index. It was where they wanted the Plan to be in order to beat it, and by doing it with an equity piece, it still matched in quarterly with the S&P 500. He said that they would report on the international which would increase or decrease volatility, and that it was a choice as long as it was measured as a sum bench mark. General Employees' Retirement Trust Fund February 13, 1996 ACTUARY None No REPO a r ATTORNEY Attorney Christiansen reported the following: 1) That he had checked, only to learn that Money Manager Ballew had also checked, on the repair of the account regarding the International Investment error. 2) Explained that the Investment Policy Statement needed signatures. (Copies were distributed to Dianne Garcia, SunTrust; Christiansen & Delmer; and Secretary Grafton. OTHER BUSINESS 1) Discussion Re:Change in Policy For Secretary to Send Bills to SunTrust. Member Oliver asked if the Board, in meeting less frequently, could change the policy so that the secretary could sign to pay various bills or to authorize SunTrust to pay them. In response to Member Oliver, Attorney Christiansen said that a provision had been placed in the Police Officers/Firefighters Operating Rules as a kind of an S.O.P. for paying expenses. Expenses that are pursuant to a contract" such as the advisor's contracts which are hourly (and can be monitored) could be paid in due course. Statements, upon arrival and less than $250, may be paid pursuant to some authorization that the Board had previously. Those bills that are paid in the quarter should be placed on the next meeting agenda for approval after the fact. Anything else should come before the Board for payment prior to payment. It did not help in a situation with a request for a return of contributions or the one time a year insurance premium, etc. Those would require a special meeting. No action was taken. 2) Pre-Retirement Seminar - Member Oliver reported a very good and informative first session of the seminar. Clerk Stenographer Lewis said that Great West had asked if they could be placed on the seminar agenda. Discussion ensued about changing a seminar that was already organized, and Member Oliver, seconded by Member Waldrop, moved that no one else be allowed to participate in the Pre-Retirement Seminar. Motion carried 4-0. BILLS AUTHORIZED FOR PAYMENT Chairman Grafton presented the bills for payment, and then requested approval of the Board to present to SunBank for payment, the following bills: 1. Foster & Foster, Inc. Actuarial Services, preparation, analysis and report of Investment Performance for the quarter ending December 31, 1995. $1,075.00 2 General Employees' Retirement Trust Fund February 13, 1996 2. Judie Lewis, Recording Secretary Secretarial Services $112.81 3. Judie Lewis, Recording Secretary Pre-Retirement Seminar $179.24 Member Dabbs, seconded by Member Oliver, moved to approve payment of the bills as presented. Motion carried 4-0. REQUEST FOR BUY BACK Chairman Grafton explained that a letter from Russ Wagner requesting a buy-back toward vesting of his prior time (January 2, 1985 - June 23, 1988) as Planning Director with the City had been presented during the February meeting. Attorney Delmer had reported, at that meeting, that he would review the matter but that the request could not be done under the current policy (ordinance). Discussion ensued about the legal rights in the Plan toward buy- back, the costs, etc., and Attorney Christiansen said that it was a policy decision, and that the Board must understand the difference between vesting and credit for benefit eligibility, credit for benefit calculation which was credited service, or did the Board want to give it for a benefit calculation to Mr. Wagner for credited service so that when he retired that those years counted toward the multiplier and the average final compensation for figuring his pension benefit. Attorney Christiansen said that there was already cross-credit for vesting in this Plan with the Police & Fire Plan. The Board and their advisors invited Mr. Wagner to the meeting who confirmed that he was requesting information about a buy-back of prior City service. Attorney Christiansen informed Mr. Wagner, as follows: 1) that vesting (5 years for vesting under the current Plan) meant that once he had 5 years he would have the right to receive a pension benefit at some time in the future (the pension benefit being something more than just his own money) and if the Board just gave him credit for vesting, those 3 yrs, however, would not count when he retired; 2) and they would not count for purposes of calculating his pension benefit. Actuary Garrett explained that there would be no impact to the City by the member paying the calculation fee, and the (total) cost of the buy-back, and for the member to get the benefit credit. In response to Chairman Grafton, Attorney Christiansen said that a change must be made by adding one section at the end of the ordinance, and would have no additional funding costs to the City, and the member would pay the costs of the buy-back at no cost to the City. Member Dabbs said that he would not object as long as the buy-back did not adversely affect the Fund. " 3 General Employees' Retirement Trust Fund February 13, 1996 Attorney Christiansen said if he understood the Board correctly, they were saying that the Board wanted to give credit for "vesting only" purposes for any prior City service, a previous period of employment, to count for vesting purposes. Member Waldrop expressed concern about the buy-back provision. In response to Chairman Grafton, Actuary Garrett said that if approved, an employee would be 100% percent vested if he should leave in 2 to 4 years, and that he would receive only his contribution if he chooses to not leave it in for retirement. Also, the buy-back amount counts as a contribution. Attorney Christiansen said that they will do the ordinance, and he asked for a letter from Mr. Wagner saying that the City's adoption of this ordinance would have no actuarial impact on the pension plan. Member Oliver, seconded by Member Waldrop, moved to direct Christiansen & Definer to chant e the ordinance to allow for a bu -back •rovision of vestin. for all Ci service, and to allow an employee to buy, at no cost to the Plan, those years of service for calculation of benefits, and also to direct Foster& Foster, Inc. to do an actuarial calculation(for Mr. Wagner). Motion carried 4-0. Attorney Christiansen said that in respect to the Ordinance, the buy-back was a buy-back only of previous General Employee time, and once passed, anybody that is here will have six months to buy that time, and then have six additional months to pay. kow ADJOURNMENT Member Dabbs, seconded by Member Waldrop moved to adjourn the meeting at 4:58 p.m. Motion carried unanimously. Respectfully submitted, .i cJ.�a J ` s ie Lewis, Clerk/Stenographer a:\wp60\GE0213.96\j fl tire 4