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Home My WebLink About11-01-2023 MinutesCITY OF OCOEE w IMIJIJ&L jL=L=4j'�EjIREMENT TRUST FUND M733MOM Wednesday, November 1, 2023 — 10:OOAM TRUSTEES PRESENT: Gequita "Gee" Cowan, Chair Robert "Bob" Briggs, Vice Chair Patricia Gleason, Secretary Gary Gleason Steven Sanders OTHERS PRESENT: Pedro Herrera, Sugarman & Susskind Doug Lozen, Foster & Foster Chrissy Stoker, Foster & Foster Brad Hess, AndCo Consulting William Duncan, Plan Retiree Paul Duncan, Member of the Public 1, Call to Order — Gequita "Gee" Cowan called the meeting to order at 10:07AM and a quorum was determined. 2. Roll Call — As reflected above. 3. Public Comments a. Gee Cowan welcomed Steven Sanders to the pension board. Steven was appointed by the City to replace Tammy Brown. 4. Old Business a. Further discussion of retiree overpayment i. Chrissy Stoker gave a brief overview of how overpayments to William Duncan were made and how they were discovered. Mr. Duncan's benefit was reduced to the correct amount effective July 1, 2023. ii. Doug Lozen commented he calculated some repayment options for the Board's consideration and whatever action was taken was ultimately the Board's decision. Doug advised the proposed repayment options took the amount Mr. Duncan was overpaid and spread it out over his expected lifetime using the Plan's mortality assumptions with no interest charged. Doug advised if the Board decided to move forward with one of the repayment options, they needed to provide an effective date. iii. Pedro Herrera commented this pension plan was unique in the sense that it included a form of benefit that changed upon the death of either the retiree or the survivor. Pedro advised the trustees they had a fiduciary responsibility to the Plan and needed to do what was in the best interest of all members. 1 iv. After extensive deliberation, the Board agreed it was in the best interest of the pension plan for the overpaid funds to be returned. 11117711111:9. 5. Approval of Minutes a. August 2, 2023, quarterly meeting Bob Briggs and second by Gary Gleason; motion carried 5-0. a. Payment ratification L Warrants #107 and # 108 b. New invoices for payment approval i. None. c. Fund activity report for July 27, 2023 — October 25, 2023 . K01114:91ML9 . . 66 0 - by Bob Briggs; motion carried 5-0. 7. Reports (Att:orney1Con2yjjggj§) a. AndCo Consulting, Brad Hess, Investment Consultant i. Quarterly Report as of September 30, 2023 1. Brad Hess gave an overview of the market environment over the quarter. 2. The market value of assets as of September 30, 2023, was $44,186,998. 3. Brad Hess reviewed the schedule of investable assets over the last 10 years. 4. Brad Hess advised that ARA had distributed approximately $238,000 of the $1 Million redemption request since August. 5. Brad Hess reviewed the financial reconciliation for the Fund over the quarter. 6. The total fund gross returns for the quarter were -2.75%®. Trailing returns for the 3, 5, and I 0-year periods were 3.73%, 4,40% and 6.53%, respectively. Since inception (411/04), gross returns were 6.48%. 7. Brad Hess reviewed the performance of each manager. He had no recommendations. b. Sugarman & Susskind, Pedro Herrera, Board Attorney i. House Bill 3 update 1. Pedro Herrera advised the Plan needed to file a comprehensive report by December 15, 2023, and every other year thereafter to satisfy new requirements established by House Bill 3. Pedro worked with other attorneys in the state to create a template that could be submitted along with the updated Investment Policy Statement to fulfill the reporting requirement. �� I � I I 1� I I I �� I � I i p�� I i 11''InTgri, =Wn. Z-1111111•1"T 111,1171 •pi • zYMM. Summary Plan Description 1. Pedro Herrera presented the updated document and reviewed the changes. Z Chrissy Stoker requested additional revisions to the "Amount of Early Retirement Benefits" and "DROP" sections. 3. Pedro Herrera confirmed he would add Steven Sanders to the list of trustees in Exhibit A. motion • Bob Briggs and second by Gary Gleason; motion carried 5-0. 8. New Business a. Discussion of airtime provision/eligibility to purchase prior service i. Chrissy Stoker commented Ordinance No. 2012-014 created different provisions for members hired on/after September 18, 2012, including changing the vesting period from 5 years to 7 years, and a member only became eligible to purchase "air time" upon vesting. Chrissy commented it was unclear if members hired on/after September 18, 2012, needed 5 years of service or 7 years of service to be eligible to purchase "air time. ii. Pedro Herrera stated it seemed that this provision should have been changed in 2012 when the referenced ordinance was adopted so it would make sense to update the ordinance to be consistent with the vesting periods. iii. Doug Lozen noted there would be no cost to this ordinance change. iv. Pedro Herrera commented he also needed to update the ordinance with provisions from the federal SECURE Act 2.0 so he would make both changes at once. v. By consensus, the Board authorized the attorney to prepare an ordinance amendment incorporating the SECURE Act 2.0 language and airtime change and send it to the City for adoption. �I 1111p I � I I I pi�iji b. Discussion of travel policy i. Gee Cowan commented the Board's current policy provided trustees must submit receipts for travel reimbursements and it should be amended to reflect how reimbursements were actually done, Pedro Herrera stated he would revise the policy and bring it back to the February meeting. c. Legal services agreement i. Gee Cowan expressed concerns about Pedro Herrera's response time and noted he had not attended a meeting in person in a while. Gee pointed out the new agreement provided he would attend two meetings in person. ii. Pedro Herrera acknowledged the Board's concerns and stated the last several months he was spread quite thin. Pedro assured the Board he would do better and added that his firm hired two associates. iii. Patricia Gleason suggested including a measure of the level of service they were receiving in the contract. Steven Sanders agreed with having a measure of response time to use as a guideline. The Board discussed possib performance measurements and agreed that two business days was reasonable response time window. iv. Pedro Herrera advised he would attend every meeting in person if that wl at the Board wanted, and if he could not attend, someone else from his firm could attend on his behalf. lip I 1111111N�-- •"M02M Gleason and second by Steven Sanders; motion carried 5-0. 9. Staff Reports, Discussion, and Action a. Foster & Foster, Chrissy Stoker, Plan Administrator i. FPPTA Board membership renewal 1. Chrissy Stoker commented the cost to renew the Board's membership for 2024 was $750.00, Chrissy stated for the record Gee Cowan, Patricia Gleason, and Bob Briggs held CPPT certificates, and the cost to renew each certificate was $31.00. III 111111��I � 11111 1'! � 1 J. Educational opportunity 1. All trustees planned to attend the FPPTA Winter School. Gary Gleason would take Advanced courses to complete his CPPT certificate; Steven Sanders would take Basic courses to begin his CPPT certificate; Gee Cowan, Patricia Gleason, and Bob Briggs would attend to obtain CEUs. 11 . Chairperson's Repo a. Gee Cowan thanked Chrissy Stoker for providing the education session today and Brad Hess for the education session last quarter. b. Gee Cowan shared information about the FPPTA Mentor Program, noting it gave her a chance to connect with other experienced trustees and provide support and assistance to newer trustees. Gee thanked the trustees for serving on the pension board and added she was proud to represent them on the FPPTA Education Committee. Respectfully submitted by: Chrissy Stokdt, Plan Administrator zqey�� Approved by: I A eq itatowan, hair tFLI)rtjc,,.,4Lvt, -4, E