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HomeMy WebLinkAbout08-03-2022 Minutes REVISED�N Di 1' 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: Vrad Hess of AndCo Consulting 1oug Lozen of Foster and Foster, and Pete Prior 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 May 4, 2022 Chairman Brown asked the board if there were any corrections, deletions i or additions to tVe -vi-fills rtotion and the motion passed. Public Comments: Mr. Chris 2.7,J come under the same issues. He stated that a review of the Pension Ordinances indicates that he becomes vested and eligible for a pension, after seven credited years of service (hired after 2017). However, the Foster & Foster report states that he is eligible after five years of service. Is this correct as "early" retirement? Further, assuming that his full vesting period is 7 years the city ordinance states that he will be eligible to receive a normal retirement pension benefit at that time, as he would be vested and have reached the normal retirement age. He stated that he understood that there was some ambiguity in the ordinance, as it states normal retirement requires 10 years of credited service, but he believes this 10- year requirement may have been in place at a time when I 0-year vesting was required. It apparently has since been superseded when the 7-year vesting service was added to the city pension plan ordinance. I believe the Board supports this interpretation as well and will allow for a normal retirement after 7 years with a normal retirement benefit. He asked if the Board agreed? He also asked if he was eligible for a retirement benefit of either early or normal once I have completed five or seven years of credible service since he had already obtained the full retirement age. e asked the Board if he iill su - REM W.M. after five years. The Board discussed this issue at length and noted that the vesting issue with respect to certain members who are Wred after age 40 and have already satisfied 5 years of credited service. They are eligible for early retirement and therefore not subject to the 7-year vesting requirement. Page 1 of 4 Once these members attain Early Retirement Age they are immediately vested in their accrued benefits and eligible for retirement payments once separated. Further, pursuant to the governing ordinance a 3% reduction is provided for per year short of such member's Non-nal Retirement Age based on "actual years of service worked." Therefore, the Board interpreted that section to mean that the reduction would be based on the difference between actual credited service at early retirement and when that member would have attained 10 years of credited service. Mr. McKinstry thanked the Board for allowing him to speak and he thanked the actuary and the attorney for answering his questions, Quarterly Investments Update: Q/E 6/30/2022 AndCo Consulting M H Offilm 0-1 V Realty returned 4,84% vs. the NCREIF ODCE index of 4.55%. Mr. Hess reported that the American Realty portfolio is up 30% for the year and recommends a 700k redemption to the fund, Trustee Moy moved to accept the Consultants' recommendation and Trustee Pace moved seconded the motion and the motion passed. There was a brief discussion to move money to another real estate firm but Mr. Hess stated that he did not recommend it at this time. Mr. Hess also reported that Alger has not been performing well but we should hold on to them for now. When the market rebounds and they do not rebound, then that would be the time to review them and perhaps replace. Mr. Hess stated that Garcia Hamilton has done a great of for this portfolio being defensive on the down turn, ranking in the Vh percentile. That concluded the Consultants' report. NEW BUSINESS: 2022-2023 Proposed Administrative Budget Mr. Prior reviewed the proposed noting that $ 10,000 was added to this year's proposed budget for any miscellaneous expenses for a total of $195,106. That being said, Trustee Pace moved to approve the budget. Trustee Maxwell seconded the motion and the motion passed. �,M Firefighter DROP interest election Attorney Herrera addressed the Board on the interest rate issue noting that the Firefighters Collective Bargaining Agreement also has a clause that mirrors the Police agreement which states that the interest rate calculated if there are losses will be 0 (zero). The effective date of the amendment will be retroactive to October 1, 2021 for the Fire Members, After much discussion, Mr. Herrera noted that an impact statement and ordinance will need to be prepared as well and he will have the Ordinance for Board adoption for the next meeting. He further noted that the contract was agreed to in December but the city still has to bring it before the Commission for approval. Attorney Herrera noted he can address the council with all the amendments at the same time, UNFINISHED BUSINESS: Statement of Policy (Actuary) Mr. Lozen "Lift'i t,#-2iJP1VQ from $ 10,000 to $5,000 per cycle, per unit and this change has been updated. Retirees with Social Security option (Administrator) Mr. Prior re actuary to determine if there were more retirees affected by the Social Security option. He stated that they contacted the actuary and discovered that all other retirees' benefits were adjusted properly. CONSENT AGENDA: For Approval: Warrant #229 Benefits USA, Inc. (Flat Monthly Fee for August 2022) $2,500.00 Brandywine Global (Q2-2022 Mgmt. fte-Iriv #BW6467 dated VW022) $6,456.36 sugartuiul, Susskind ETAL (Legal Fees -Invoice W 170744 dated V5)2022) $3,825.00 $12,781.36 For Ratification: Warrants #227 & 228 allf. ..... ...... Attorney's Report: Attorney Herrera had nothing further to report at this time, Administrator's Report: Mr. Prior reported on FPPTA Trustees School was being held at the Renaissance Sea World on October 2-5, 2022, If anyone wants to attend to please contact the office, MisceRaneous Correspondence: No action was needed. Comments from Trustees. Next Regular Meeting date: Wednesday, November 2, 2022 at 1:00 pm. Adjournment: The meeting adjourned at 2:45 pm. Respectfully submitted by, Chairman U9172m, K1.