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HomeMy WebLinkAbout05-13-1999 Minutes MINUTES OF THE CITY OF OCOEE GENERAL EMPLOYEES' RETIREMENT TRUST FUND MEETING HELD MAY 13,1999 CALL TO ORDER The meeting was called to order by Chairman Dabbs at 10:07 a.m. in the commission chambers conference room at Ocoee City Hall. The roll was called and a quorum ascertained. PRESENT: Chairman Dabbs, Secretary Grafton, Trustee Carter, Trustee Ison and Trustee Oliver. Also present were Attorney Denner; Actuary Ward Foster; Tim Nash, Client Service Officer STI and Fund Custodian Diane Garcia, STI. ABSENT: None APPROVAL OF MINUTES OF FEBRUARY 18, 1999 MEETING. Trustee Oliver, second by Trustee Ison, moved to approve the Minutes of the February 18, 1999 Meeting as presented. Motion carried 5-0. REPORTS Money Manager Mr. Nash indicated the market experienced slower growth for the quarter ending March 31, 1999, only .83%. In April 99 money was taken from technology and pharmaceutical stocks and put in basic materials, commodities and gas stocks. A shift from growth �r oriented stocks to value oriented stocks, with latter out performing the former impacted the GEPB portfolio as well. Our asset allocation remained essentially the same: 24% High Growth Equity; 24% High Growth Income; 4% Mid-Cap; 4% International; 43% High Growth Bonds which also impacted performance along with the conversion to the Euro against which the US dollar lost 10%. Question and answer session followed Mr. Nash's presentation and ended with an explanation of why STI is bullish on international stocks for the next 12-18 months. The full report is on file and available for review. Actuary/Performance Monitor Mr. Foster reported growth over the last 4.25 years has been good; the last quarter very average. His numbers matched STI's and with our asset allocation, our fund against the market indexes is doing well. This is our third consecutive year in which we are in the 11`h percentile. Mr. Foster found no violations of the investment guidelines and commented the money manager was doing a good job. Secretary's Report Secretary Grafton reported request of return of contribution to four employees as well as requesting clarification regarding an employee ( Barbara Holody) who had gone from part-time to full time and back and was also requesting a return of contribution. After discussion by the acting actuary, the attorney and the Board, her request was approved. (iw Secretary Grafton also requested of the actuary a computation of retirement benefits for Peggy Psaladakis based on ages 62,63 and 65. She also noted Ed White wanted a . computation of early retirement and death benefits to his beneficiary. Request for authorization to pay the bills was approved unanimously: Trustee Carter motion, Oliver second. Secretary Grafton also requested and received approval of the Resolution authorizing any two (2) of the Trustees signing disbursements of funds requests to STI. Much discussion as to the efficacy of the Board adopting a DROP Plan took place after Attorney Dehner presented an analysis of public DROP Plans in the state, general practices and procedures of such plans and the most common designs of public plans. Three considerations common to public plans are: 1. No funding cost 2. How long the drop period should be (anywhere from 1-5 years). 3. A stated rate of interest which cannot exceed the actual fund rate After lengthy discussion, the Board authorized Attorney Definer to bring to the next Board meeting a draft of a DROP Plan for the Board's consideration based upon the considerations discussed as being part of public plans. ATTORNEY COMMENTS Attorney Dehner had no comments except to say the operating rules and procedures were adopted at the last meeting and that there was no set time to consider summary plan description changes. MEETING ADJOURNED