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HomeMy WebLinkAbout08-13-1996 Minutes THE CITY OF OCOEE GENERAL EMPLOYEES' RETIREMENT TRUST FUND (PENSION BOARD) MEETING - August 13, 1996 Acting Chairman Grafton called the General Employees' Pension Trust Fund to order at 3:10 p.m. in the Commission Chambers Conference Room of City Hall. The roll was called and a quorum declared present. PRESENT: Chairman Miller, Members Dabbs, Grafton, Oliver, and Waldrop. Also present were Actuary Garrett, Money Manager Ballew, and Clerk/Stenographer Lewis. ABSENT: Attorney Dehner. APPROVAL OF MINUTES This item consisted of the May 14, 1996 Regular Board Meeting,And also, the July 22, 1996 J9 nt Boards Meeting. In response to Clerk Stenographer Lewis, a i ler said that egswits,J e4iad seconded the motion on page 6 of the Minutes of the May 14, 1996 Regular Board Meeting. Member Oliver, seconded by Member Dabbs, moved to approve the Minutes of the Ma 14 1996 General Em.lo ees' Retirement Trust Fund Pension Board meetin. as corrected and also, the Minutes of the July 22, 1996 Joint Pension Board Meeting as presented. Motion carried 4-0. QUESTIONS/COMMENTS FROM AUDIENCE None Chairman Grafton said that Russ Wagner had inquired as to why it was necessary that he place money back into the Plan as it had been placed there for him in prior employment with the City. Actuary Garrett explained that it was not the practice to preserve the asset funds anticipating that an employee would be returning once they terminated, and that those monies contributed to the Fund on Mr. Wagner's behalf during his employment had been spread across the other active lives of the Plan when he left. (In response to Chairman Grafton, Actuary Garrett said that as soon as the City Commission acted upon and passed the Ordinance, Mr. Wagner could request the a benefit calculation for the buy back from the Actuary.) Chairman Miller arrived to the meeting and 3:17 p.m. and took the Chair. REVIEW/CHANGE DISTRIBUTIONS FORM(S) Discussion ensued about various forms currently used in the distribution of a member's contribution. Secretary Grafton explained that one form provided by SunTrust covered everything, and she presented it to the Board. Member Oliver said that it should read "SunTrust, N.A." rather than "Sun Bank, N.A." and under Section One, the following should be deleted: 1) In-Service Withdrawal, and 2) Hardship Withdrawal. Secretary Grafton, seconded b Member Oliver moved to acce.t the distribution form with the e ro•osed chan.es. Motion carried 5-0. General Employees' Retirement Trust Fund August 13, 1996 CONSIDER/DISCUSSION OF ORDINANCE In response to Chairman Miller's request to table this agenda item, Secretary Grafton explained that the Board must adopt the Ordinance if they wanted to present it to the City Commission soon. Actuary Garrett suggested that once the figures of the study from the October 31, 1996 valuation were complete, that they meet with the City to discuss benefit improvements. Ms. Grafton said that the Police/Fire Board had asked for a survey of what other plans were doing and where the City stood among the ranks. Lengthy discussion ensued, and Member Oliver, seconded by Chairman Miller, moved to recommend to City Commission that they adopt the Ordinance with the mandated changes with no benefit improvements, and that a cover letter will say that the Board was not addressing any benefit improvements in this Ordinance (these are changes mandated either by Federal or State law, NICI, etc.)but the Board wants them to know that prior to the budget year of 1997-98, the Board intends to propose some benefit improvements to the Plan. Motion carried 5-0. Secretary Grafton announced that the First and Second Readings of the Ordinance would be August 20 and September 3, and the cover letter was needed from the attorney. Clerk Stenographer Lewis informed the Board that the Police/Fire Board had changed the date for their November meeting. The General Employees' Board scheduled the next regular meeting to November 14, 3:00 p.m., and a 5:00 p.m. meeting with membership. Member Dabbs left the meeting at 4:12 p.m. REPORTS MONEY MANAGER Money Manager Ballew presented the Board with the analysis of the investment performance of the General Employees' Retirement Trust Fund for the period ending June 30, 1996. He also presented a chart on the S&P500:Relative Performance By Sector. Mr. Ballew said that he will discuss mid-cap stocks at the next Board meeting. PERFORMANCE MONITOR Performance Monitor Garrett presented an analysis of the investment of the General Employees' Retirement Trust Fund for the period from January 1, 1995 through June 30, 1996. The rate of return for the quarter was 2.8%. This rate of return outperformed the composite index of market indicators (50% S&P 500 Composite Stock Index, 45% Lehman Brothers Government/Corporate Bond Index, and 5% U.S. Treasury Bills) which registered a return of 2.5%. The rate of return of the Total Fund outperformed the composite index (15.5% vs. 14.8%) and ranked in the 22nd percentile of the Cadence Universe of investment managers for the one year period ended June 30, 1996. The equity portion of the Fund outperformed the S&P 500 over the latest one year period (27.7% vs. 25.9%) and ranked in the 19th percentile of the Cadence Universe. 2 General Employees' Retirement Trust Fund August 13, 1996 ACTUARY There was no report. OTHER BUSINESS BILLS AUTHORIZED FOR PAYMENT Secretary Grafton presented the bills for payment, and then requested approval of the Board to present to SunTrust for payment, the following bills: 1. Foster & Foster, Inc. Analysis and Report of investment performance of Trust Fund for the quarter ending March 31, 1996. $500.00 2. SunTrust Statement of Services Total $4,330.28 3. Christiansen & Dehner, P.A. Billing Date:6-30-96 $1,067.24 4. City of Ocoee Expense Report: May Phone Calls/FAX $ .41 Postage 3.90 June Postage $ 1.92 Phone Calls/FAX $ 2.08 Total Expenses Charged $8.31 5. Judie Lewis, Recording Secretary Preparation of agenda, minutes, notices, etc. for May 14, 1996 Regular Board Meeting, and also the Joint Board Meeting for July 22, 1996. $156.96 Member Oliver, seconded by Member Waldrop, moved to approve payment of the bills as presented by the Secretary. Motion carried 4-0. Secretary Grafton informed the Board that Clerk Steno Lewis had mailed a Confirmation of Receipt of Retirement Benefits form to each retiree or beneficiary. 3 General Employees' Retirement Trust Fund thor August 13, 1996 OTHER BUSINESS ELECTION IN SEPTEMBER Secretary Grafton reported that Donald Carter, Fran Gosnell, Ernie Kovacs, and Ricky Waldrop had qualified for the position currently held by Member Waldrop, and that the ballots will be placed in the September 13 payroll envelope. Discussion ensued about the election process and whether it would be necessary to hold a special meeting to count the ballots. Actuary Garrett said that they must Notice the meeting. Member Oliver, seconded by Chairman Miller, moved that Secretary Grafton and either member, Dabbs, Oliver or Miller, will attend to the counting of the ballots on Friday, September 20, 8:00 a.m. Motion carried 4-0. Secretary Grafton suggested that Member Waldrop be present for this meeting. REPORT/COMMENTS FROM ATTORNEY As the attorney was absent from this meeting, there was no report. ADJOURNMENT The meeting adjourned at 5:11 p.m. Respectfully submitted, 411.„. , • pe(1(1.442--) J• - Lewis, Clerk/Stenographer a:\wp60\GE081396.M\j fl 4