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Home My WebLink About12-16-2020 MinutesCITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND BOARD OF TRUSTEES Wednesday, December 16, 2020 at 1 O:OOAM TRUSTEES PRESENT: Gequita Cowan, Chair Stefanie Wilson, Secretary Patricia Gleason Jean Grafton TRUSTEES ABSENT: Robert Briggs, Vice Chair OTHERS PRESENT: Doug Lozen, Foster & Foster (via phone) Tim Nash, AndCo Consulting (via phone) Pedro Herrera, Sugarman & Susskind (via phone) Kim Kilgore, Foster & Foster The Board M221!2o=02—flon otion carried 4-0. 5. Consent a. Warrants #78, #79 and #80 for ratification b. Quarterly fund activity report for July 30, 2020 to December 9, 2020 The Board rafton and second bv Patricia Gleason- motion carried 4-0. New Business a. Proposed 2021 meeting dates i. By consensus, the board approved the proposed 2021 meeting dates as presented. b. Ebection of officers i. Kim Kilgore stated per the board's operating rubes the election of the board officers happened every two years in November and the last election was November 2018. The board owan as Chair Robert ri s as dice chair and Stetaraie ilsorw as Secrete o on rr�o iorw Ceara Grafton and second to Patricia Gleason' motioned carried 4-0. 7. Old Business — None. 8. BMorts Attorney/Consultants a. Foster & Foster, Doug Lozen, Actuary i. Actuarial study on disability benefit 1. Doug Lozen commented as requested by the board a special actuarial analysis was performed on the cost impact of adding a Disability Retirement benefit provision to the plan. 2. Doug Lozen reviewed the provisions used for this study included the Disability benefit on having an immediate Une-of Duty (LOD) and Not-ln- Une of Duty (NLOD) for vested employees, Doug further reviewed only contributing active employees were considered eligible for this Disability benefit. 1 Doug Lozen reviewed the assumptions methods which were used to value the additional disability benefit. 4. Doug Lozen commented the estimated amlUal cost for the additional Disability benefit wouid be around $80,000 per year for the City. 5, Jean Grafton questioned if most plans had a disability benefit and both Doug Lozen and Pedro Herrera responded most do�. & Conversation ensued amongst the trustees of the current disability coverage the City provided for active employees and how the City rnay not want to fund an additional disability benefit through the pension plan. 7. Gequita Cowan commented she could provide the study to the City Manager to be considered. 8. Pedro Herrera reviewed the process of when an employee applies for a Disability benefit and how the board would make the determination to approve the disability benefit, 9. Stefanie Wilson asked about the additional costs for the board (fund) for each applicant. "10. Pedro Herrera commented there would be costs for the Individual Medical Evaluation (NE), for, holding special board meetings and for plan attorney on the gathering of the appropriate information to present on the case. 11. Pedro Herrera stated to have the City compared their current disability benefit coverage offered to employees versus the disability benefit wNch could be provided through the pension plan. b. AndCo Consulting, Tim Nash, investment ConSUItant i. Quarterly Report as of September 30, 2020 1. Tim Nash reviewed the market environment during the past quarter nofing the S&P 500 1-year performance of 15A0%. 2. The fund' s asset allocation by segment through the quarter were Dornestic Equity 45.90%, pnternafional Equity 14.10%, Domestic Fixed Income 22,40%, Global Fixed Income 5.10%, Real Estate 10.80%, and Cash 1.70%. 1 Tim Nash reviewed the fund's asset allocation through the and of the quarter and stated there was no need to rebalance at this firne. 4. Tim Nash reviewed the total fund balance for the past fiscal year with a beginning total market value of $41,409,301 and ending market value of $43,537,168 showing a $2,993,997 gain. 5, The total fund gross returns for the ci.iarter were 4,64%. Trailing returns for FYTD, 3, and 5-year periods were 7.40%, 7.00%, and 8,56%, respectively. SInce inception (4/1/04), gross returns were 6.99%. 6. 'Tim Nash reviewed each investment manager performance through the past quarter. 7. Tim Nash stated the total annual estimated manager fees were 54 basis points or $236,489. 8, Tim Nash stated as of last night the fund had a market value around $46,7 million and 7.3% return since October Vt. 9. Tim Nash commented he would expect to see some volatility dUring 2021 but felt good with the fund's current manager setup, 10irn Nash reviewed two organizatlonal changes with the fund's current managers Eaton Vance and Aghicouft. Eaton Vance was acquired by Morgan Stanley back in Juiy 2020 and Agincourt sold 70% of thelr firm to Guardian Capital Group Limited. Tim Nash commented in both cases there would be no changes to the current process with the new ownerships. ii. fnvestment policy Statement 1. Tim Nash stated he would present changes to the Investment Policy statement at the next meeting. Sugarman & Susskind, Pedro Herrera, Board Attorney i. New State E-Verify Law 1. Pedro Herrera reviewed a new law enacted by Florida on the mandatory use of "E-Verify" for new hires by public agency beginning January 1, 2021, Pedro fufther reviewed E-Verify( was a federal electronic database to help employers in confirming new employee's ernpioyment eligibility was valid and they were authorized to work in the U.S. 2, Pedro Herrera stated the board would need to have 0 new consultants hired beginniing January ls' to complete a form certifying 'their employees had their employrnent eligibility confirmed through the E-Verify system. 3. Pedro Herrera stated they WOUld draft the E-Verify form for vendors to complete and make the necessary changes to the contracts. k. Ethic Laws on Gifts 1. Pedro Herrera rerninded the board of the State ethic laws for- pUb8ic officials receiving gifts. Pedro stated any gift valued over $25 should be reported by gift giver and if the value was $100 or rnore, 'the trustee should reject. Pedro 'further stated the -trustees should never accept a gift regard9ess of value which might appear to influence a decision made by the board, 9. Staff Reports [11:scusslogi and Action a. Foster & Foster, Kim Kilgore, Ran Administrator i. Kim Kilgore reviewed the upcoming FPPTA Winter Trustee School frorn January 24-27, 2021 in Orlando was cancelled. FPPTA would be replacing the on -site Trustee school with a virtual program over three months in March, April, and May. ii. Kim Kilgore commented the May program would be on the same day as the board's qUafterly meeting and we may need to consider an alternate date or fir ne for, that meeflng. iti. Kim Kflgore commented Foster & Foster increased their cyber liability coverage from $1 nifflion to $2 rani ion per claim, 10, Trustees' R L_ eRoits LRLiscLi@Aion and Action a. Gequita Cowan thanked the board and consultants and commented she enjoyed working with such wonderful people, 11. A .N4jRy1nMgfl1—The meeting adjourned at 11:39AM, 12. Next Meeting — Wednesday, February 3, 2021 at '10:OOAM, quarterly meeting Res Uly s mitted by, A, )proved bya U g Plan Administrator K[ Kilgore, Plan Uita Cow Date Approved by the Pension Board: