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HomeMy WebLinkAbout08-13-1998 Minutes MINUTES OF THE CITY OF OCOEE GENERAL EMPLOYEES' RETIREMENT TRUST FUND MEETING HELD AUGUST 13, 1998 CALL TO ORDER Chairman Dabbs called the regular meeting to order at 10:20 a.m. in the commission chambers conference room at Ocoee City Hall, and upon calling the roll, declared a quorum present. Present: Chairman Lester Dabbs, Trustees Donald Carter, Jean Grafton, and Joyce Oliver. Also present were Attorney Lee Dehner, Actuary Ward Foster, STI Administrative Officer Dianne Garcia, and STI Client Service Officer Philip Senderowitz. Absent: Trustee Dan Murphy. APPROVAL OF GENERAL EMPLOYEES'RETIREMENT TRUST FUND MINUTES OF MAY 12, 1998. Trustee Oliver, seconded by Trustee Carter, moved to approve the Minutes of the May 12., 1998 Meeting as presented. Motion carried 4-0. Trustee Murphy was not present. REPORTS MONEY MANAGER Mr. Senderowitz reviewed the contents of the General Employee Investment Report for the period ending June 30, 1998, reporting a portfolio value of$4,249,018.15 and a return for the quarter of 1.82%with the funds allocated 59.03% in Equity Assets and 40.88% in Fixed Assets. The report indicated a 13.05%return for the past 9 months and 19.42% from inception to date. Discussion ensued regarding the advisability of adjusting the policy on investing in small cap and mid cap funds, due to the trend of recent activity in the market, and Mr. Senderowitz advised that up to 10% of the equity portfolio in small cap and 10% in international would be a good spread. Trustee Oliver, seconded by Trustee Carter, moved to change the investment policy to allow up to a total of 20% of the Equity Portfolio (at cost)to be invested in some combination of limited cap and/or international funds effective this date. Motion carried 4-0. Trustee Murphy was not present. Mrs. Garcia said she would send the necessary forms indicating the change to Secretary Grafton for signatures immediately. Mrs. Garcia then reported that STI is working toward year 2000 compliance with a target date of November 1, 1998. ACTUARY/PERFORMANCE MONITOR Mr. Foster reviewed the report for the period ending June 30, 1998 and said the numbers in the STI report are all in order with his figures and that the Fund has accumulated nearly $1.1M more than is needed to meet actuarial expectations. He said the Fund is moving right along with the markets, and when he turned to page 5 of the report to elaborate on the figures, page 5 was not included in the copies presented to the Trustees. He then related his difficulties trying to pick up the reports in his office at 5:00 a.m.,trying to enter his office building with a key that no longer matched the lock. (Clerk's note: The August bill will be closely scrutinized to determine just Ocoee General Employees'Retirement Trust Fund Meeting August 13, 1998 how an actuary disguises stand-up comic routines when preparing an invoice for services rendered.) OTHER BUSINESS AUTHORIZE/RATIFY PAYMENT OF BILLS AND TERMINATED EMPLOYEES' CONTRIBUTIONS RETURNED. Secretary Grafton reported that no employees had retired since the last meeting and presented the following bills and returns of contributions for payment/ratification: City of Ocoee Postage May, 1997 - May , 1998 $29.59 Telephone May, 1997-May, 1998 $ 7.68 $ 37.27 Christiansen & Dehner June 2, 1998 $ 652.56 SunTrust Quarter ending June 30, 1998 $8,540.86 Return of Contributions 1. Shirley Cummins -(November 13, 1997 -July 9, 1998) $1,059.50 2. James W. Korges - (May 27, 1997-May 28, 1998) $1,560.13 3. Dennis McDaniel- (November 19, 1987-July 2, 1998) $8,582.42 (Dennis was fully vested but chose to take his cash.) ,,,. 4. Kenneth Westerfield - (March 3, 1997-March 6, 1998) $1,525.77 5. Stephen Smith - (May 29, 1997-June 26, 1998) $1,734.70 Trustee Oliver, seconded by Chairman Dabbs, moved to approve and ratify the bills and returns of contributions as reported above. Motion carried 4-0. Trustee Murphy was not present. CHAIRMAN DABBS- REPORT ON CONFERENCE AND DROP PLAN. Chairman Dabbs reported that he had found the sessions at the FPPTA Trustee Conference to be very informative and helpful. He briefly described the DROP Plan as a program permitting employees who are ready to retire the opportunity to work an additional five years, during which period the employee would stop accruing benefits through the pension plan and, instead, the employee/employer's contribution would be placed in a mutual fund. This would provide a lump sum upon retirement to go along with the monthly benefits provided in the pension plan. He distributed material for members to review, and then discussed the pros and cons. Mr. Foster explained that this does not necessarily result in more or better retirement benefits for the employee, but instead would provide for a lump sum upon retirement that would not otherwise be available to the retiree. Mr. Dehner reinforced Mr. Dabbs' comments on the advantages/disadvantages of the DROP Plan, noting that employees staying an additional 5 years may prevent advancement of 2 Ocoee General Employees' Retirement Trust Fund Meeting August 13, 1998 younger/capable employees. Also, upon experiencing a bad season with the market, the employee taking advantage of the Plan may wish to revert to the Pension Plan, and, as the step is irreversible, that is not possible. No action was taken at this time to implement the plan. Chairman Dabbs recommended the purchase of Public Sector Investment Practices published by GFOA, and distributed material he had collected at the Institute. SET DATE FOR CANVASSING BOARD TO MEET Secretary Grafton reported that Trustee Carter had run unopposed for reelection and asked that a date be set to certify the election. The date chosen was August 20, 1998 at 8:00 a.m. ATTORNEY COMMENTS Disability Benefits and Rules for Surveillance Mr. Dehner advised that he had given Rules 16 and 17 to Secretary Grafton to be distributed for review at the next meeting. QUESTIONS/COMMENTS FROM AUDIENCE None. ADJOURNMENT The meeting adjourned at 11:45 a.m. .r.__ Al .I.Z1 Grafton, Sect-, ary 3