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HomeMy WebLinkAbout05-16-1994 Minutes POLICE OFFICERS' /FIREFIGHTERS' RETIREMENT TRUST FUND `..r (PENSION MEETING) May 16, 1994 JOINT BOARD At 10:40 a.m. the Police /Fire Board joined with the General Employees meeting which was in progress. The joint meeting was called to order in the Community Center by Chairman Reed. PRESENT: Chairman Reed, Members Strosnider and Williams. Also present were Chairman Miller, Members Grafton, Oliver, Waldrop, Attorney Dehner, Actuary Foster, and Clerk/Stenographer Lewis. ABSENT: Members Gledich, Shiver, and Wilson. Chairman Reed announced that this was a joint session of the Police Officers' /Firefighters and the General Employees' Pension Boards. Actuary Foster said he had explained during the General Employees' meeting that he had contacted several brokerage firms. Only one firm had been interested in meeting with the Joint Boards but there had been a conflict with the meeting dates and they were unable to attend this meeting. Mr. Foster had then suggested giving the Actuarial and Money Manager Reports in the time period that had been scheduled for brokerage firms. loft'' Before the reports were given Chairman Reed gave details of a meeting with the City Manager concerning the audit. Mr. Reed said Administrative Services Director Beamer had indicated some of the City figures are not the same as those supplied by Foster and Foster, Inc. to keep the plan solvent. The City numbers consistently come up lower than those of the actuary. Ms. Beamer was concerned about where the numbers are coming from and this was the reason for suggesting an audit. Ms. Beamer and Ms. Psaledakis will be in attendance for the afternoon meeting of the Police /Fire Board and an explanation will be given at that time. Actuary Foster said the actuary had developed the numbers that determine the funding requirements and those are the amounts that must be contributed from City, State, and other sources. Member Strosnider asked if this reflects a shortage of the State. Actuary Foster said an assumption is made on what the State money is going to be, and if the State money comes in lower the City is required to make up the difference. That may be an adjustment they are not making which could make it look like their numbers, in total, are lower than the actuarial numbers. All evaluation reports have been State accepted by both bureaus that review the reports. The State has approved the annual report which is an independent presentation of contributions that were made. The Actuary will coordinate with the Finance Department to be sure the numbers are interpreted correctly. Chairman Reed had notifications where the State had accepted their reports. Actuary Foster had received a listing of all members from the City, including the member N, contributions that had been deposited during the year. The total contribution figures were Police Officers /Firefighters Retirement Trust Fund Board Meeting 'tow May 16, 1994 different from the amount in the Key Trust statements as contributions deposited for the year. The annual report numbers, which is the member contributions deposited to the funds during the plan year, must match the total of member contributions that were contributed on the employee census. There had been several thousand dollars difference there. Mr. Poston's retirement had created a vacuum there. The difference had been reconciled but is the reason the report was late. If those numbers did not match the State would have returned the report. Before sending the report to State the actuary must make sure it is correct. Chairman Miller said if the two funds were a part of the City audit the Boards should receive copies of the audit. Attorney Dehner pointed out that the Police /Fire Board receives a copy of their fund' s audits and it might be appropriate for the Board to obtain a copy of the 1993 City audit for review. ACTUARY Actuary Foster presented an actuarial report from the March 31, 1994 quarter which covers the time that the Investment Counsel Company has been acting as the investment advisor. He directed attention to the dates of March 1, 1992 through March 31, 1994 that showed how the assets accumulated over this time period. Actuary Foster expressed concern about the performances of the funds. The stock side shows a deteriorating, rather than improving, performance pattern. It is usually recommended that the Boards not "fiddle around" alternative managers or even investigate alternative managers until each have been through a market cycle of at least a three year period with a manager. He thinks it might be in the best interest of both Boards to at least take a closer look at what else is out there. It will take a dramatic turn around in both funds to bring these returns of a relative performance basis up to even something in a median level of performance over a three year period. Their goal, for the total fund, is to out perform their custom index which is 40% stocks, 55 % bonds, and 5% cash over any rolling three year period. In looking at this period, it is almost two years and in looking at the General Fund 5.6% vs. 7.5%. That is almost a 2% per year deficit. In the case of the Police /Fire, they are looking at a 2.5% per year deficit that would need to be made up in really about another year. Actuary Foster said the Boards did not have to do any kind of a full blown investment manager search but he could provide the Board with more detailed information about the performance numbers that are generated by the funds in order for the Boards to be completely aware of what else is going on. He did not think that the 32 -33 out of 35 ranking had changed much since September, 1993. Analyst Resnik asked if Actuary Foster could tell the performance numbers on other municipal �.► 2 Police Officers /Firefighters Retirement Trust Fund Board Meeting `, May 16, 1994 accounts. Actuary Foster said almost all of them have 30 -40% exposure to stocks. There are only a couple of accounts that are as high as 50 -60% and only one or two have a 10% exposure. Thirty- seventy, or 60 -40 is a pretty typical asset allocation for the funds they are monitoring so it is a pretty conservative mix. MONEY MANAGER Money Manager McClung presented the quarterly report for the quarter ending March 31, 1994 and did not like the performance of this particular fund. The market as a whole had been down. An explanation was given on the different sectors of the market for the 1993 -94 performance indicating the market had been volatile over the last 12 months. The ICC had talked to a number of different managers and consultants that handle money or funds, and all were hurting right now. She understood the Boards' concern but as the Actuary had said on the three years, even if they came up 10% before September, their numbers are still not going to look very good. Ms. McClung reviewed the Total Return Summary Report and described the differences between the plans. Analyst Resnik asked if the Money Manager had any municipal funds with five or more years so the Boards could compare performances to those on the list. Ms. McClung will prepare another municipal fund's performance report for review. 'r.. Actuary Foster explained the size of the fund makes a difference. The Board may consider the investment manager to have a co- mingled fund where you are buying a piece of the fund, like a mutual fund, where the smallest fund has the same diversification as the largest fund. That divergence of returns is not seen among the funds that use the co- mingle funds. He suggested that if the Boards wanted to investigate alternatives, there would no obligation on the part of the Boards to hire an alternative manager or replacement manager. He said it may be prudent to take a closer look at what is out there because the fund's accounts are deviating from the Universe in a big way with both funds. Ms. McClung said the trustees of the funds must also consider that should an employee asked the Board why the returns are so low, members could then be informed that other alternatives are being reviewed. Actuary Foster agreed with Ms. McClung and said such action should at least satisfy any member of the plan that you are being diligent. To be aware of what else is out there is the Board's main concern. Secretary Grafton asked if the Board should give direction to someone. For the record Attorney Definer said there are several important points that need to be made from the legal fiduciary side: 1) The data that the Actuary presented with respect to the Board's manager, the 3 year number was a 15 % number, the 5 years number was a 12+ number, which indicates the top third or better. Those were numbers that the Board looked at and the numbers that the Board saw in making the decision to retain this manager. It is very important, for the Now 3 Police Officers /Firefighters Retirement Trust Fund Board Meeting May 16, 1994 record, to reflect that the Board did exactly the appropriate procedures of processes. When choosing the existing investment manager the Board had data that made that prudent decision for the selection at the time. Those numbers back up the deterioration and unfortunately, it has occurred in the two years since April, 1992, and since about the time the Board hired the manager. Market conditions have been indicated to be one of the reasons. 2) It is through the fulfilling of the Board's fiduciary duties by receiving this information on a periodic basis as has been discussed over several meetings. The Board is now to a point to determine if this is the time where the Board needs to take another step. That is important and is an indication that the Board is doing their job properly. 3) With respect to the Manager doing what the Board had asked the manager to do, it needs to be noted that the Board does not manage the fund, it does not have that expertise, and you have not given specific investment directives to the manager, you have been provided fraud policy guidelines. Part of the information that you have been presented with by Actuary Foster acting as your monitor has been within those guidelines. 4) With the recommendation from the monitor that the Boards begin to send out RFP's. The .• Board was not making a decision at this point but you are going to make a change. He felt it would be appropriate to go ahead, send out the RFP's, get the information in on other managers for review, and determine at that point whether you want to talk in person with any other managers. He also recommended that the Boards talk further with ICC, then make a determination at that time on what the Board would like to do. Member Waldrop expressed concern on getting up into the high numbers but thought everyone was doing bad. Chairman Reed said the Board should look at other managers just to see how they have weathered this cycle. He thought a lot had to do with the size of our fund which is not diversified enough to weather the storm yet. He would be interested in seeing how funds similar to ours have weathered the storm. He also expressed concern over the down of the percentile. Actuary Foster said the Boards could use the March 31, 1994 as the time period for comparison purposes, so the Boards can see how this bad market has been approached by other managers. Attorney Definer said it would be appropriate for each Board, by motion, to ask Actuary Foster to prepare and send RFP's to managers, then submit a recommendation with a list of managers he thinks would be appropriate for this fund. Mr. Dehner recommended that he show each Board that list in the event that the Board members have been contacted or may want to add into his survey and inform him of that. He cautioned the Trustees to be sure that anybody they are interested in looking at be covered in this study. ` o 4 Police Officers /Firefighters Retirement Trust Fund Board Meeting May 16, 1994 Graf in moved to direc A . Fo ter o • re • are and end RFP' o mone managers. Member Waldrop inquired as to the expense of preparing the RFP's. Actuary Foster said preparation of the RFP's, analyzing the responses, meeting with the Board to review the responses, would cost approximately $1500 total, for both funds. If the managers simply come in and make presentations, then it would just be the time involved, meeting, and listening to them and could probably be done in half a day. Attorney Dehner said to outline the entire procedure, in the event you would go through a whole process, if the Boards so authorize, the Actuary will send an RFP (developing pertinent questions with respect to money manager to this fund) to potential manager candidates, (to also include names submitted by members of the Boards that they would like to take a look at), he will then receive responses back by designated date from the managers, at that point then he will prepare chart or summary fashion with the responses, and bring them back to the Board and take a look at them at the July 18 meeting (Clerk's note: date was later changed), give the Board an opportunity to take a look at the numbers on the various candidates and then make a determination on whether the Board would like to talk to some small group of them in more detail about what they can offer, and then interviews will be set at that time. The Boards would have another meeting and talk with the money managers in person. At the end of the interview meeting the Boards would make a decision to stay with the existing manager or select another one. Secretary Grafton said this could all be done in the July 18 meeting. Actuary Foster said the actuary could probably have a short list ready for that meeting and whether or not you wanted to pursue, get to the point of listening to the presentation which possibly could be done at the September meeting. • r . ry raf in s - c o nded b M • m i • r Ili • r of he G n - ral Em.lo ees Fund moved to dir h Actu, o or .,re .n s - nd RFP's to mane manager Motion carries 4 -0. sec •• nd by Member Strosnider of the Police Officers' /Firefi . hters' Fund, moved to direct the Actua to prepare and send RFP's to money mana i ers. Motion carried 4 -0. Actuary Foster recommended postponing the July 18 meeting until the Board sees what it is going to do with the Investment Counsel Company. It is possible that broker affiliation may not be needed if the Board chooses to make a switch. The money managers will not be present. Discussion ensued concerning a time for the joint and separate Board meetings on July 18. Ms. McClung said the Board would probably not want the money manager in attendance at the July 18 meeting but she would have the June 30 report. Secretary Grafton asked that she mail the report. Actuary Foster said the July 18 meeting date would not give them enough time to do the June 30 performance report as they do not receive the Cadence Universe data until the end of July. If the Board held the meeting in August the actuary would have more information and the 5 Police Officers /Firefighters Retirement Trust Fund Board Meeting Nosy May 16, 1994 Boards could make a decision to interview managers. The actuary could also have two full years of information for comparison purposes. It might be best, even though it may postpone things 30 days to have as much information as possible for a decision making process. The July meeting was cancelled and re- scheduled to Tuesday, August 23, 9:00 a.m., General Employees Trust Fund, 10:00 a.m., Joint Board, 11:00 a.m., the Investment Counsel Company, and 1:00 p.m., Police /Firefighters Trust Fund. RECESS (POLICE OFFICERS'/FIREFIGHTERS' BOARD) 12:00 - 1:00 P.M. The meeting was reconvened at 1:00 p.m. by Chairman Reed. PRESENT: Chairman Reed, Members Gledich, Strosnider, Williams, and Wilson. Also present were Attorney Dehner, Actuary Foster, and Terri McClung of The Investment Counsel Company, John Boyd, Personnel Director Psaledakis, Administrative Services Director Beamer, Finance Manager Horton, and Clerk/Stenographer Lewis. ABSENT: None. APPROVAL OF MINUTES Member Strosnider. seconded by Member Williams. moved to approve the minutes of March 21. 1994 as presented. Motion carried 5 -0. CONSIDERATION /ADOPTION OF SELECTED PROVISIONS FROM THE OPERATING RULES AND PROCEDURES - THIS ITEM WAS PULLED AND PLACED AFTER ITEM III. Member Williams. seconded by Member Strosnider. moved to amend the agenda to consider item VI before item III. Motion carried 5 -0. DISCUSSION /ORDINANCE - BENEFIT IMPROVEMENTS WITH ITEM J. Chairman Reed said he had met with City Manager Shapiro, Personnel Director Psaledakis, and Administrative Services Director Beamer on April 21 concerning improvements to the Police /Fire Pension Fund. The administrators had explained that the cost of improvements was too great to the City for a plan that was in its infancy. Director Beamer had also questioned City dollars not matching the actuarial figures of the Pension Plan, adding that her figures always came in lower than those of the Actuarial. Personnel Director Psaledakis explained that the City Manager had been appreciative of the Board' s concern to add certain enhancements to the Plan but they were premature to the 6 Police Officers /Firefighters Retirement Trust Fund Board Meeting tiway May 16, 1994 Police /Fire Fund as well as the General Employees Fund at this time. The City Manager was not saying there is nothing in the future and the Fund may want to review it again at a later date. The City may investigate some type of medical insurance continuation for the employees only, but not the employees and their defendants. The Board was instructed on the procedural process in requesting action of the Mayor and City Commissioners in adopting an ordinance. Director Psaledakis said there had been a modification in the Plan affecting Police Chief John Boyd's retirement that Actuary Foster will be dealing with. When an employee retires from the City, under the pension provision, a copy of the Pension fund paper work must be placed in the personnel file. The City and the Board must work together in determining whether the proper benefit has been received. Administrative Services Director Beamer explained the City tries to base calculations on the budgeted salary figure but when the actuarial is done a catch -up has to be included in the next year that would either cover investments that were low, or for people who have left who did not put in their percentage. The City must pay and include the costs in the next year increments that were short the prior year. The administration wanted to know, with some frequency, what the Actuary has done in terms of evaluation of the Fund's investment. While Ms. Beamer had requested an audit it had been incorrect terminology. From the City side the auditors look at what is "going out" the Pension Plan, dollars from the City and Pension Plan, dollars from its employees. City \.► auditors are not paid to do an overall evaluation of the plan itself. To better understand the investments Director Beamer then requested an evaluation report by Foster and Foster. Chairman Reed announced the quarterly performance and the money manager reports had been given during the Joint meeting. The Board was inviting solicitations, as a result of the downturn in the market, from other Investment Managers to see how other funds are doing at this time. He asked if the Police /Fire Pension Fund is audited as part of the City's annual report. Ms. Beamer explained that it is audited as to the money that is going out from the City, whether it be employee or employer, to the pension plan itself. Actuary Foster said that the Actuary had reviewed the City audit report and the Fund is audited independently by an outside CPA firm. The activity is in line but the City's concern is that the Actuary did the evaluation as of October 1, 1993 that was delivered to the Board in January, 1994. The City had already budgeted a contribution for the 1993 -94 year and the Actuary evaluation, which isn't available until January, gives precise funding requirements for the year which is past the budgeting process. The Actuary needs to help the City in forecasting the requirements for the 1994 -95 year now based on assumptions about the results of the October 1, 1993 evaluation. This fund has exhibited remarkable stability as in the 1992's evaluation, the City's cost was estimated, and actually was 16.9% of payroll; and in the October 1, 1993 evaluation it was also 16.9% of payroll. Determining the forecasted payroll of the members covered under this plan for the 1994 - *sr„ 7 Police Officers /Firefighters Retirement Trust Fund Board Meeting May 16, 1994 95 year and applying 16.9% to that would be a good solid budget amount, because the Actuary is making a very conservative assumption that there will not be any increases in the State money between now and next year. Between 1992 -93 the State money went up $12,000. Mr. Foster said that 17% or 16.9% of the projected 1994 -95 payroll would be a conservative estimate of the City's funding obligation. The problem the Actuary is having in getting anything more precise than that is the program is in its third year and although it appears that the State contribution amounts are accelerating very quickly he cannot anticipate what the future level of State contributions is going to be. The Fund saw a 50% increase in the State contribution in a one year period so he thinks that is about as precise as they can get. If the City would provide the Actuary projected payroll information he would be happy to provide a letter that "pinned down" a dollar amount they could feel comfortable with, if that would be helpful. The Actuary's problem is that the State does not allow the Actuary to project dollar amounts more than 12 months beyond the evaluation date as the payroll may grow too quickly and would understate the liability. Chairman Reed asked who the Fund's performance evaluations should be forwarded to and Ms. Beamer said it should be forwarded to Wanda Horton, Finance Supervisor. Member Gledich asked that Director Psaledakis look into the continuation of medical premium insurance. Director Psaledakis explained it is nothing definite but they review insurance's `ir annually in preparation for the budget sessions. The City usually likes to see a track study of about 5 years to see what is happened with the investment of the Pension Plan. There are many variables and the City is involved in other areas that need improvement City wide. She fully supported both groups. It might be reconsidered in the future but the money was not available right now. Member Strosnider asked Actuary Foster the amount of State money the Fund had received. Actuary Foster said it went from $24,000 to $36,000. Actuary Foster said it was an indication that the State is starting to accurately tax and collect all the premiums from the citizens paying taxes on their insurance policies. Member Williams asked Actuary Foster to review the percentages in employee versus City contributions. Mr. Foster said the total contribution is right at 24 % of payroll, total required from City, State, and member sources. Members are contributing 5%, the City is contributing 17% which means the State contribution currently is only 2% of payroll. State money is typically in the 6 -10% range. It is distributed on a per capita basis for the area you live in. If the Fund was getting just 6% of payroll as a State contribution, the City's cost would go down 4% of payroll which would just about fund the benefit improvements which was 4.2 %. In the next few years if the Fund receives State money at a level more consistent with other cities than it may be possible to fund the improvements with the increases in State money. Member Strosnider. Nor 8 Police Officers /Firefighters Retirement Trust Fund Board Meeting May 16, 1994 Nur seconded b Member Williams. moved to withdraw the consideration of benefit improvements at this time. Motion carried 5 -0. The Board directed Attorney Dehner to write a letter to the City Manager withdrawing the request of benefit improvements. SELECTED PROVISIONS From The OPERATING RULES AND PROCEDURES. Although Attorney Christiansen had reviewed the Selected Provisions at the last meeting, Attorney Definer said the Operating Rules and Procedures had been adopted on March 21, 1994. He explained the provisions are verbatim excerpts from those rules that the Board felt would be of interest to the membership and it would be appropriate for adoption and distribution to membership. M • i • • r , _ ni • • r s - and - d b M • m • r 1 • • i h move. • ado r he - 1 - Provisions of the Opera ing Rules and Procedures. as presented. Motion carried 5 - 0. Discussion /Adoption - SUMMARY PLAN DESCRIPTION Attorney Dehner explained that the ordinance had passed on the Family Medical Leave and the transferability of the Plans. The Board has until November for distribution of the Summary Plan Description (SPD). He will return with a draft of the revised Summary Plan Description for the August meeting. Chairman Reed informed the Board of the Joint Meeting scheduled for August 23, 10:00 a.m., and the Police /Fire Board at 1:00 p.m. v Attorney Dehner did not recommend, because of the differences in the plans, distribution during a Joint meeting of Boards. The Police /Fire Board had adopted and distributed it's last SPD in November, 1992. The Statutory requirement for distribution is that the Board distribute upon employment and every other year thereafter which will be November, 1994. The General Employees' is on a March time frame and are set for distribution under the provisions of the Statute. Member Gledich suggested a general meeting for sometime in September to include the Selected Provisions as well as the Summary Plan. Chairman Reed said that a meeting is scheduled for August 23 with the Joint Board to cover the short list of brokers and the money manager's performance on our investment with ICC. Actuary Foster will solicit RFP's for those companies to meet 10:00 a.m., and the Police /Fire Board will meet at 1:00 p.m. It would be prudent at that time to incorporate a general meeting with membership at the 1:00 p.m. meeting. Attorney Dehner said the August meeting could be used for review and to adopt the SPD with distribution to the membership in September. For the record, Attorney Dehner said, now that the SPD has been adopted, according to the Rules, Section 16.2, the Board must provide certain documents to the Personnel Director including the Summary Plan Description, Beneficiary Designation, acceptance of the terms of the system, the Selected excerpted Provision of the Operating Rules, and an acknowledgement of the receipt of the documents in order for that office to provide current documents to new employees. 'taw 9 Police Officers /Firefighters Retirement Trust Fund Board Meeting Now May 16, 1994 The Board should not wait in providing Personnel with a current copy of this package and send under a cover letter to Director Psaledakis with the current date, saying "Enclosed are items from Section 6.2 of the Rules A -E for your use with respect to new employees." Then she would know that what she has are the most current documents. REPORTS ATTORNEY CONTRACT FOR SECRETARIAL SERVICES Attorney Christiansen explained the details of the contract between the Board and Judie Lewis for Secretarial Services for their consideration and adoption. She will provide services as directed by the Board. The specific duties that she will provide, if requested to do so by the Board, is preparation of Notices and Agendas for meetings, scheduling meetings, conferences, and seminars, physical attendance at Board meetings, taking, transcribing, distributing minutes, filing and maintenance of pension fund records and documents, and all other matters, as directed by the Board, which a recording secretary may legally perform. He said the recording secretary may not necessarily do each of these functions and that depends again upon the direction of the Board. These are all enumerated as they are functions that would be subject to be assigned to her for the agreed upon compensation. This contract is subject to termination by either party upon 30 days written notice and it will continue until either party does terminate. Please note it provides that '`w the invoice should be forwarded to the Board to the attention of Mike Reed, as specified. Attorney Dehner said that the Recording Secretary cannot assign the agreement to anyone else without the consent of the Board. Member Williams, seconded by Member Strosnider. moved to enter into an Agreement for Secretarial Services with Judie Lewis. Motion carried 5 -0. ACTUARY THE ACTUARIAL REPORT HAD BEEN GIVEN DURING THE JOINT BOARD MEETING. Chairman Reed explained that as no one showed up for the wholesale brokers allotted time slot, the Board had proceeded with the Actuary Quarterly Report with the General Employees, along with the presentation by the Money Manager. During that time, since the market has been fluctuating, and our return is bout 4% (which our Operating Rules and Procedures or the Investment Policy suggests that the Board should be getting a return of 8 %, and we are not even close to that), we're like in the 85 % percentile which is not very good. Board has directed Actuary Foster to send RFP' s for investment managers. Actuary Foster said it does not mean that a replacement manager will be hired but rather to review what other managers are doing. Chairman Reed said since this is such a small fund and so new it is going to be a lot more susceptible to downturns in the market than some of the larger funds. This Fund is just not as diversified. Actuary Foster said the Board would be looking at investment managers that more or less specialize in investing Florida Municipal Retirement Funds. There are some good managers out there that have $5M - $10M dollar minimum so unfortunately we won't be considered by them but there are plenty of 10 Police Officers /Firefighters Retirement Trust Fund Board Meeting May 16, 1994 good managers that would be interested in a $1M or $2M dollar fund because they recognize that we have positive cash flow. The Actuary will ask them to give independently verifiable performance information for funds of similar size so that we can compare how we're doing. Chairman Reed said as the Board is the fiduciary of the Fund, it is their responsibility to make sure that our fund is doing as well as it can possibly do and we are not just accepting the performance as it is per se, we are trying to watch out for the investment for the fund. INVESTMENT MANAGER THE MONEY MANAGER REPORT HAD BEEN GIVEN DURING THE JOINT BOARD MEETING. OTHER BUSINESS CONFERENCE DATES Attorney Dehner announced the FPPTA Conference scheduled for September 19 -21, at the PGA National, Palm Beach Gardens, as well as the June Conference in Daytona. Members Gledich and Williams are planning to attend the June FPPTA Conference in Daytona Beach. Actuary Foster said the Actuary had updated figures on John Boyd's request for retirement and he understands by his discussion with John, that he is interested in the Life Annuity option, the largest benefit amount. Discussion ensued regarding options available to Mr. Boyd. Attorney ,, Dehner said the Board should consider the adoption of forms to be used in claims on the fund, selection of options, etc. He requested placing the discussion /adoption of forms on the next meeting agenda. He will forward a draft package to Chairman Reed. It is very critical that the Board has the member sign the form indicating what option he has chosen. A Member's Election of Benefits form was passed around for the Board members to view. Member Gledich. seconded b Member Strosnider. moved to incorporate a Member's Election of Benefits form in the Police • f f i - rs' Fir fi i h - r ' ' e irem - nt T s Fun. b - nefi I. ka • e of forms Moti. n arri - d -0 Attorney Dehner questioned John Boyd, for the record, and Mr. Boyd's responses are underlined. 1) You got today an estimate of benefits from Ward Foster, benefit calculation reflecting dollar amounts for your various options you could choose under the plan, is that right? That is correct. 2) The form was entitled City of Ocoee Municipal Police Officers' /Firefighters' Retirement Trust Fund Notification of Benefits for John Boyd, benefits payable as of 5/1/94, and you had various forms of benefits that Mr. Foster calculated numbers for, first being Life Annuity which, if chosen would cease upon your death, the amount calculated there was $2792.70. The other form calculated by Ward was a 10 Year Certain and Life, the amount of that benefit would have provided you with $2752.37, that benefit if chose and you had died before 10 years of payments you would have had a beneficiary receive the 11 Police Officers /Firefighters Retirement Trust Fund Board Meeting May 16, 1994 remainder of 10 years of payments. Then he calculated four different Joint and Survivor options for you whereby upon your death if your Joint Pensioner was still alive, the Joint Pensioner would receive the benefit after your death. He calculated a 100% Joint and Survivor which would have provided you with $2496.67; upon your death, if your Joint Pensioner survived would receive that same amount $2496.67. He calculated 75 % Joint and Survivor which would have provided you with $2564.54; upon your death if your Joint Pensioner survived would receive that same amount $1923.41. He calculated 66% Joint and Survivor which would have provided you with $2588.00 per month, upon your death if your Joint Pensioner survived would receive that same amount of $1725.33. He calculated 50% Joint and Survivor which would have provided you with $2636.31 a month, upon your death if your Joint Pensioner survived would received $1318.16. To your Joint Pensioner each of those benefits to Joint Pensioner being for the remainder in their life time. Did you have time to consider all these options thoroughly and review them with Ward, and think about which one you wanted to choose? Yes. how about, on this form it has the beneficiary already typed in but because it's done I authorized ( ?)but Actuary Foster said that was just for purposes of the record to show that was a person whose life expectancy was considered in the Survivorship Option. The answer to your question is correct and he chooses the Life Annuity. 3) Attorney Dehner asked if his beneficiary here, Joint and Survivor Pensioner is indicated i/0 to be Robin Boyd, date of birth August 3, 1956. Is that correction information? Yes. 4) The information in respect to Mr. Boyd shows his birthdate as being September 16, 1947; Years of Credited Service - 25; Final Average Monthly Earnings is $4403.79. Is that all correct? That is correct. Attorney Dehner asked Mr. Boyd which plan he chose after reviewing all the options. The option is Life Annuity (ceasing upon death). Attorney Dehner added the amount of monthly benefit to be $2792.70. Member Williams. seconde b Member Strosnider, moved to annrove the Life Annuit c sin. _ se. b in e . o nt of '.2792.70 i r month o John Bo d. Mo ion carried 5 -0. Attorney Dehner explained the Board must convene to approve someone' s retirement and recommended that a member, upon anticipating retirement, complete the proper paperwork prior to the actual retirement date. Member Gledich left the meeting at 2:27 p.m. Chairman Reed asked Jim Chandler the effective date of his retirement. As of 5/1/94 and he *taw 12 Police Officers /Firefighters Retirement Trust Fund Board Meeting N., May 16, 1994 had retired as of April 27. 1994. Attorney Dehner asked Mr. Chandler the questions listed below. For clarity Mr. Chandler's responses will be underlined. Attorney Dehner asked Jim Chandler if he had reviewed the Notification of Benefits form prepared by Barbara Smith and reviewed by Scott Haynesworth of Foster & Foster, Inc., dated May 3, 1994 indicating various dollar amounts associated with different optional forms of benefit you have under the Pension Plan? Yes. 1) Which option have you chosen? B. Joint Survivor at 66 %. And this forms indicates that the 66% Joint Survivor will pay you as of May 1, 1994 the amount of $562.77, to be paid your life time and if Eve Chandler, who is designated to be your Joint Pensioner, if she survives you, she will receive $375.18 for the length of her life time. Is that your understanding of that election? Yes. 2) Data given with respect to Eve Chandler, her date of birth is January 28, 1944, is that correct? Yes. 3) Data with respect to you is that you were born March 4, 1935? Right. 4) That you have Years of Credited Service in the amount of eight and one -half (years)? Yes. 5) The Final Average Monthly Earnings for benefit purposes is $3378.51? Yes. M • • r , _ ni l • r seconded b M • m s • r ,& illi . m_ moved to a.. rov th ben 66 '0 oint Survivor. $562.77 to Jim Chandler. and $375.18 to the surviving beneficiary, Motion carried 4- 0. Member Williams left the meeting at 2:30 p.m. ANNUAL REPORT Chairman Reed said the Board had received a notification from the Department of Management Services Division Retirement advising that they have reviewed and approved the 1993 Annual Reports of the Ocoee Police Officers' /Firefighters' Pension Fund. The Fund will receive the premium tax monies during the first distribution on/or before June 1, 1994. BILLS AUTHORIZED FOR PAYMENT Chairman Reed requested approval of the Board to send the April and May expenditures to Key Trust for payment, as presented. Member Strosnider. seconded by Member Wilson. moved to .. .. m f he .il . • r-s-nt - s . Mo ion carried 3 -0. ADJOURNMENT The meeting was adjourned at 2:35 p.m. 13 NI ow Police Officers /Firefighters Retirement Trust Fund Board Meeting slow May 16, 1994 Respectfully submitted, GGG %uizt_) Ju Lewis, Clerk/Stenographer 14