HomeMy WebLinkAbout05-04-2022 MinutesTHE CITY OF OCOEE POLICE OFFICERS'/FIREFIGHTERS'
RETIREMENT FUND BOARD MEETING — May 4, 2022
Chairman Brown called the meeting of the City of Ocoee Police Officers'/Firefighters' Retirement Trust
Fund to order at 1:00 p.m. in the Commission Chambers of City Hall.
Trustees Present: Chairman Charles Brown, Bryan Pace, Joe Moy and William Maxwell
Absent & Excused: Trey Littlefield
Others present:
Brad Hess of AndCo Consulting, Board Attorney Pedro Herrera of Sugarman Susskind Braswell & Herrera,
Chuck Landers of Saltmarsh, Doug Lozen of Foster and Foster, and Livia Giuliani of Benefits USA, Inc.
Call to Order:
Roll call and determination of quorum: The roll was called and a quorum declared present.
Approval of Minutes from Regular Meeting dated February 2, 2022
Chairman Brown asked the board if there were any corrections, deletions, or additions to the minutes.
Hearing and seeing none Trustee Moy moved to approve the minutes and Trustee Pace seconded the
motion and the motion passed.
Public Comments:
NEW BUSINESS:
Presentation of 9/30/2021 Financial Statements
Mr. Landers addressed the Board and provided an unmodified opinion of the financial statements noting
that the statements presented fairly in all material aspects. Ms. Bittinger reported that the receivables
totaled $122,651; total investments were $77,797,110; prepaid expenses totaled $249,621 and total assets
were $78,169,382. The liabilities totaled $2,604,379 for a net position restricted for pensions of
$75,565,003, an increase from last year of $63,582,550. The employer contributions were $2,459,813 and
Employee contributions were $749,973 totaling $3,209,786. The chapter 175 and 185 monies received
were $391,326 and $402,647 respectively. The net appreciation was $10,820,486, the interest totaled
$378,043, the dividends totaled $785,090, the class action revenue was $20 and the investment expenses
totaled $209,908. The benefit payments for service retirees totaled $2,726,449; disabilities were
$181,068, DROP retirees totaled $675,524; share plan payments were $21,381, refunds of contributions
totaled $82,585 and the administrative expenses totaled $108,030 for the total deductions of $3,795,037.
The City's net position increased to $11,982,453 from last year of $5,721,717. The investment return net
of expenses was 18.78% vs. 10.11% from last year.
Mr. Landers500 reported on the Administrative Expenses noting that the actuary fees were $38,242; the
Administrator's fees were 25,200; the Audit fees were $17,500; the liability insurance was $4,226; dues
and memberships were $3,925; seminars and Travel were $9,204 and the legal fees were $9,733 totaling
$108,030.
Mr. Landers reported on the participant data noting that there are a total of 71 retired members receiving
benefits and 23 vested terminated members. There are currently 159 active members with and 63 vested
members and 96 non -vested members. That concluded Mr. Landers report. That being said, Trustee Moy
moved to approve the 9/30/2021 financial statements and Trustee Maxwell seconded the motion and the
motion passed.
Page 1 of 4
Larry Bras Overpayment
Attorney Herrera reported when a retiree is overpaid it is prudent that the fund attempt to recoup such
overpayments and correct the benefits paid. They can offer a payment plan to make it easier for the
member. He noted that since the member is present at the meeting the Board should allow him to voice
his opinion and preferences for repayment. Mr. Larry Bras noted that he was unaware that his benefit
should have been reduced. He said at the time he retired, no one explained that to him. After a lengthy
discussion, all parties came to an agreement to reduce Mr. Bras benefit by $75 per month for his lifetime.
Retiree Stipend for Beneficiaries
Attorney Herrera reported that based on Section 6(5) of the Ordinance, joint annuitants and beneficiaries
of any member who retired prior to 10/1/08, under the early or normal retirement provision, are entitled to
receive the supplement of $200 or as may be reduced for early retirement. He noted that disability
retirees and vested terminated members shall not receive this supplement. The Board agreed and directed
the Administrator to adjust the benefit for Mrs. Coschignano to reflect the $200 stipend.
Foster and Foster Fee Increase
Mr. Lozen reviewed the fees with the Board noting that they have been representing this fund for over 30
years and they have helped guide the Plan to $74 million. Mr. Lozen noted that the annual fee reflects a
10% discount given that the General Employee's Pension Board is a portal subscriber. There is a one-
time implementation fee of $12,500 which includes an on -site visit to host a member workshop.
Mr. Lozen stated that they are also requesting that their rates be increased effective October 1, 2022 with
automatic CPI increases. Going forward they are requesting that all of these fees be adjusted annually
based upon the CPI for the preceding 12 months ending June 301h. The adjusted fees will go into effect on
October 1, 2022 and each subsequent October Is'based on prior year's CPI increase. Trustee Maxwell
moved to approve the Foster and Foster fee increase and Trustee Moy seconded the motion and it passed.
State of Policy for Actuarial Studies
Mr. Lozen reported on the statement of policy noting that it was the Board's desire to provide funding for
actuarial studies used in collective bargaining negotiations between the City and the Firefighters Union
Local #3623 as well as the Police Benevolent Association. The funding for these studies would be paid
for by the Police and Fire Pension Plan and shall not exceed $10,000 for the duration of the collective
bargaining negotiation cycle every approximately 3 years. It was noted that the threshold amount should
be changed from $10,000 per cycle per unit to $5,000 per cycle per unit. After a brief discussion, Trustee
Pace moved to adopt the policy as amended and Trustee Maxwell seconded the motion and it passed.
UNFINISHED BUSINESS:
There was no Unfinished Business discussed.
Quarterly Investments Update: Q/E 3 /31/2022
AndCo Consulting
Mr. Hess reported on the economy noting that prior to the Ukraine crisis, the global and US economies
grew at a slower rate. For the Vt quarter of 2022, the GDP ranged between 0.5% and 2.0% vs. the 4th
quarter rate of 6.9%. The unemployment rate was 3.6% in March and the Federal Reserve rose interest
rates by 0.25%. Domestic equities declined in the first quarter and international stocks struggled during
the first quarter. The S&P 500 large cap index returned -4.6% vs. mid -cap and small cap of —5.7% and
-7.5% respectively. Developed markets and international equities also posted negative returns with the
EAFE index returning -5.9% vs. the Emerging Markets index of -7.0%.
For the first quarter, the Bond market was negative due to increased inflation. The Bloomberg Barclay's
Aggregate returned -5.9% vs. the Corporate Bonds of -7.7%. US TIPS were the best performing sector
Page 2 of 4
which declined by -3.0%. Mr. Hess reported on the performance noting that the fund returned -4.91% vs.
the policy of -4.19; the equity fund returned -7.17% vs. the equity policy of-5.28%. Brandywine and
DePrince returned -1.44% and -0.16% respectively vs. the Russell 1000 Value index of-0.74%. Alger
and Mar Vista returned-12.45% and -9.46% respectively vs. the Russell 1000 Growth index-9.04%.
Vanguard returned -5.46% vs. the CRSP Total Market index of-5.44%. American Funds Euro Pacific
returned-12.24% vs. the International Equity index of-5.33%. The fixed income fund returned -4.38%
and Garcia Hamilton returned -4.30% vs. the Barclays' Aggregate of-5.93%. PIMCO Diversified
returned -7.10% vs. the Blmbg Global Credit index of-6.67%; PIMCO Global Bond returned -2.39% vs.
the Blmbg Global index of-4.97%. American Realty returned 8.46% vs. the NCREIF ODCE of 7.97%.
Mr. Hess reported that Euro Pacific has continued to underperform and that he would like to complement
the portfolio by adding another mutual fund. After a review and discussion of the international value
manager analysis, Mr. Hess recommended selling 50% of American Funds and purchasing Dodge & Cox.
Trustee Moy moved to follow the Consultant's recommendation to rebalance the portfolio and Trustee
Maxwell seconded the motion and it passed.
CONSENT AGENDA:
For Approval: Warrant #226
Benefits USA, Inc. (Flat Monthly Fee for May 2022) $2,500.00
Foster & Foster (Services Rendered -Invoice #23470 dated 4/22/2022) $7,241.75
Mar Vista (Q1-22 Mgmt Fee; Invoice #10343 dated 4/6/2022) $6,387.05
Sugarman & Susskind (Legal Fees -Invoice #167705 dated 4/18/2022) $1,615.00
Total $17,743.80
For Ratification: Warrants 224-225
Bryan Pace (Mileage expense for FPPTA Ponta Vedra 10/3/2021-10/6/2021)
$153.44
MarVista Investment Partners (Q4-2021 Mgmt Fee -Inv #10175 dated 1/12/2022)
$7,063.63
Professional Indemnity Insurance (2022-2023 Fiduciary Liability Ins. Renewal)
$4,511.36
Total
$11,728.43
AndCo (Q1-2022 Consulting Fee; Invoice #40871 dated 3/31/2022)
$6,250.00
Benefits USA, Inc. (Flat Monthly Fee for March 2022)
$2,500.00
Benefits USA, Inc. (Flat Monthly Fee for April 2022)
$2,500.00
DRZ (Q1-2022 Mgmt Fee- Invoice #202201025 dated 4/6/2022)
$7,413.00
Garcia Hamilton & Assoc. (Q1-2022 Mgmt Fee -Invoice #35513 dated 4/5/2022)
$11,824.13
Sugarman & Susskind (Legal Fees -Invoice #166915 dated 3/22/2022)
$6,545.00
Total
$37,032.13
Pension payments:
Sheila Coschignano (Beneficiary payment effective 3/l/2022) $2,948.06
John Miller (Early Retirement benefit effective 4/l/2022) $2,307.62
Bruce Riggins (Monthly Retirement benefit (DROP exit effective 4/1/2022) $1,457.58
Bruce Riggins (Share plan distribution) $3,706.22
Refunds of Contributions:
Ian Adamich (Refund of Contributions) $8,845.93
Taylor Miller (Refund of Contributions) $9,851.59
Nicholas Wright (Refund of Contributions) $7,287.28
Trustee Maxwell moved to approve the consent agenda as presented and Trustee Moy seconded the
motion and the motion passed.
Page 3 of 4
Attorney's Report:
Attorney Herrera reported that he is working on the ordinance amendment reflecting the most recent
Firefighter's Collective Bargaining agreement as well as updating the Summary Plan description
accordingly and will have them ready for the next meeting. Advised the Board of the July 1 deadline to
file their annual Form 1 Financial Disclosure with the state ethics commission.
Attorney Herrera reported on Educational Opportunities noting that the FPPTA will host their summer
conference on June 26-29, 2022 at the Hilton in Bonnet Creek and the State will not have its school in
middle to late May; however, they will host their conference in November in Orlando.
Administrator's Report:
The Administrator had nothing further to report.
Miscellaneous Correspondence:
No action was needed.
Comments from Trustees:
Next Regular Meeting date: Wednesday, August 3, 2022 at 1:00 pm.
Adjournment: The meeting adjourned at 4:20 pm.
Respectfully submitted by,
Contact the City Clerk's Office to listen to an electronic copy of the complete minutes.
Page 4 of 4