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HomeMy WebLinkAbout08-06-1997 Minutes MINUTES OF THE CITY OF OCOEE GENERAL EMPLOYEES' PENSION thw BOARD MEETING HELD AUGUST 6, 1997 CALL TO ORDER In the absence of Chairman Dabbs and Vice Chairman Murphy, Secretary Grafton called the meeting to order at 7:40 a.m. in the commission chambers conference room. The roll was called and a quorum declared present. PRESENT: Trustees Carter, Grafton, and Oliver. Chairman Dabbs arrived at 7:50 and took the chair. Also present were Attorney Denner,Actuary Foster, and Money Manager Ballew. ABSENT: Vice Chairman Murphy. APPROVAL OF GENERAL EMPLOYEES'RETIREMENT TRUST FUND MINUTES OF JUNE 2, 1997. Trustee Carter, seconded by Trustee Grafton,moved to approve the Minutes of the June 2, 1997 meeting as presented. Motion carried 2-0. Trustee Oliver abstained from voting as she had not been present at the June 2 meeting. Chairman Dabbs and Vice Chairman Murphy were not present. QUESTIONS/COMMENTS FROM AUDIENCE There was no audience present. REPORTS MONEY MANAGER Trust Investment Officer Ballew reviewed the contents of the General Employee Investment Performance Report for the period ending June 30, 1997, reporting that growth stock is doing well and value stock not so well with the market and that the General Employee Investments are more active in the growth stock. He advised that, although these investments produced slightly under the S&P 500 Index, the report still was positive overall with a return of 9.96% for the quarter, and 19.31% from inception to date (30 months). The report, showing a book value of$2,306,337.27 and market value of$3,159,198.99 for the period ending June 30, 1997 is on file and available for review. Attorney Dehner asked about the advisability of addressing a change in the investment policy. Mr. Ballew responded that smaller and mid-sized names are available in both growth and value stock and exposure to those would be timely, as they have been doing quite well. Discussion ensued about requesting that the quality restriction be removed by ordinance to give this body the flexibility to direct the investments more in tune with the market. During the discussion it was reported that the increase in the multiplier from 2%to 2.5%was fully funded in the proposed budget,with the City funding one-half of the increase and the employees funding the other half by increasing their contribution from 5%to 71/4%of their salaries. As the ordinance to raise the multiplier is scheduled to be presented to City Commission soon, it was suggested that, if a request to change the investment policy met with favor, it could be included in the same ordinance. Chairman Dabbs, seconded by Trustee Oliver, moved that, concurrent with the GENERAL EMPLOYEES PENSION BOARD MEETING AUGUST 6, 1997 Ordinance going forward to raise the multiplier, we recommend an ordinance change removing the quality restrictions from the equity investments and fixed income investments and to change the equity exposure to 60%. Motion carried 4-0. Trustee Murphy was not present. Attorney Denner will prepare the ordinance and a cover letter requesting such consideration and send it to City Manager Shapiro. Actuary Foster will prepare a new impact statement to accompany the ordinance. ACTUARY/PERFORMANCE MONITOR Actuary Foster reported that the figures in the STI Investment Performance Report are in line with the figures in his report as Performance Monitor and that STI is doing a good job. He reported that the rate of return for the quarter was 10%; however, it failed to outperform the composite index of market indicators which registered a return of 10.2%. The rate of return for the Total Fund underperformed the composite index(19.0%vs. 20.3%) and ranked in the 21st percentile of the Cadence Universe of investment managers for the one year period ended June 30, 1997. The equity portion of the Fund failed to outperform the S&P 500 over the latest one year period(29.5%vs. 34.6%) and ranked in the 31st percentile of the Cadence Universe. Mr. Foster reviewed the specifics in his report, which is on file and available for review. OTHER BUSINESS AUTHORIZE PAYMENT OF BILLS. Bills presented for payment were: Christiansen& Denner $789.81 Foster& Foster $500.00 Trustee Oliver, seconded by Trustee Carter,moved to authorize payment of the bills as presented. Motion carried 4-0. Trustee Murphy was not present. SET CANVASSING BOARD MEETING FOR SEPTEMBER ELECTION.(AFTER 9/17) Secretary Grafton reported that the qualifying period for the Trustee seat open this year started August 1 at noon and would continue until August 15 at noon, and that to date only one candidate had come forward(Jean Grafton). The meeting to count ballots and certify the election for Trustee Grafton's position was set for September 23 at 8:00 a.m. in the commission chambers conference room. SECRETARY'S REPORT ON TERMINATED EMPLOYEES' CONTRIBUTIONS RETURNED AND RETIRED EMPLOYEES' BENEFITS INITIATED. Secretary Grafton reported the following information: 1. FPPTA new address: 2946 Wellington Circle East-Suite A, Tallahassee, 32308 2. Ray Brenner started drawing early retirement July 1, 1997 (at age 50). 460, Page 2 of 3 GENERAL EMPLOYEES PENSION BOARD MEETING AUGUST 6, 1997 3. Jim Beech retired June 27 and his benefits will need to be recalculated when the ordinance changing the multiplier is adopted, as its proposed effective date is June 15. 4. James Miller(11/16/92 - 1/2/97)cannot return to work and decided July 18, 1997 to roll over his contributions to SunTrust Securities. 5. Steven Brown resigned August 1,1997 and asked for his contributions to be returned. The figures will not be available until the August 15 payroll is processed. He was employed from April 15, 1996 to August 1, 1997. 6. Theresa Wallick(General Employee) married Police Officer Billy Adams April 15, 1997. 7. Russ Wagner had inquired again about the buy-back of his previous employment time in order to become vested and Mr. Foster had advised that he would prepare the figures for one month(which could be multiplied according to how much he wished to buy back)upon the receipt of a$25.00 check from Mr. Wagner. ATTORNEY COMMENTS Attorney Dehner reported that there is pending legislation to remove the current law regarding the buy-back of time and the restrictions on the amount of money the person can put in in one year(governed by Section 415.0 of the Internal Revenue Code), which is the lesser of 25%of compensation or$30,000. Also,there is proposed legislation to make the moratorium on non- discrimination testing under Section 401.84 of the Internal Revenue Code permanent so that it will not apply to public plans. ADJOURNMENT At 8:47 a.m. Trustee Oliver, seconded by Trustee Grafton, moved to adjourn. Je A Grafton, Secre "' Page 3 of 3