HomeMy WebLinkAbout09-26-1995 Minutes THE CITY OF OCOEE POLICE OFFICERS' /FIREFIGHTERS'
,, RETIREMENT TRUST FUND (PENSION BOARD MEETING) - September 26, 1995
Chairman Reed called the Police Officers' /Firefighters' Pension Board to order at 12:36 p.m.
in the Commission Chamber Conference Room of City Hall, and a quorum was declared
present.
PRESENT: Chairman Reed, Members Wilson, and Williams. Also present were Attorney
Dehner and Clerk/Stenographer Lewis.
ABSENT: Members Gledich and Strosnider.
APPROVAL OF MINUTES
Chairman Reed said that a correction should be made to page 12 to read "Actuary Garrett ... "
instead of "Attorney Garrett ..." Member Williams, seconded by Member Wilson, moved to
approve the Minutes of the August 9, 1995 Police Officers /Firefighters' Retirement Trust Fund
meeting as corrected. Motion carried 3 -0.
QUESTIONS /COMMENTS FROM AUDIENCE
None
COUNT ELECTION BALLOTS AND CERTIFY ELECTION
. Chairman Reed announced that Mike Reed and Ron Strosnider had run for the Firefighters' seat
on the Board. Clerk Stenographer Lewis presented the ballot box and the signature sheet to
Attorney Dehner who explained that a ballot with no mark or a ballot with more than one mark
would void a ballot. He read each ballot and then counted the signatures. He said that pursuant
to the ballot process, the Attorney was in charge of the Canvassing Board, and said that totals
for the Chairman were 14 votes for Reed and 12 votes for Strosnider. Chairman Reed had
presented a ballot process sheet so that each Member could also tally the votes, and announced
that the winner, Mike Reed, had 14 votes and Ron Strosnider had 12 votes for the
Firefighters' seat on the Police Officers' /Firefighters' Pension Board. Member Wilson,
seconded by Member Williams, moved to certify the election results (as stated on the tally
sheets) by all present that Mike Reed was the winner with a 14 -12 vote for the City of Ocoee
Police Officers' /Firefighters Pension Fund. Motion carried 3 -0.
As they were public records, Attorney Dehner turned over the ballots and signature sheets to
Clerk Stenographer Lewis with instructions to place and seal them in an envelop. He said that
the Plan members should be notified of the results.
Chairman Reed explained that irregularities of the September 13, 14, and 15, 1995 election,
were as follows:
1) No sign in sheet had been available on September 13, 1995 but one had been
included at 9:00 a.m. on September *gime 2) On September 14, 1995, Personnel Director Psaledakis notified Chairman Reed
Police Officers' /Firefighters' Retirement Trust Fund
September 26, 1995
that there was an irregularity that may have happened with the election process;
first being that, a) there was no sign up sheet on the first day and was placed
near the ballot box at 9:00 a.m. on the second day; and b) that she had been
informed by a City personnel that they had seen a person(s) who were not
members of the Plan or employees of the City actually deposit a ballot into the
election ballot box. The election had been cancelled.
3) The election had been halted and re- scheduled for September 21, 22, and 23,
1995, and the preceding process with only those ballots being counted during this
meeting were all that were cast in the second election. All ballots of both
elections are retained for public record.
Member Williams, seconded by Member Wilson, moved to declare the first attempt at an
election to be void, based on the information that has been provided, and that those ballots
remain sealed. Motion carried 3 -0.
Member Williams, seconded by Member Wilson, moved that Ron Strosnider be appointed the
Fifth Trustee to the City of Ocoee Police Officers /Firefighters' Pension Board. Motion carried
3 -0. In response to Chairman Reed, Attorney Dehner said that Mr. Reed should notify the
City Clerk and ask that the name be placed on the City Commission agenda for confirmation as
an administerial duty.
DISCUSSION /REVIEW OF OPERATING RULES AND PROCEDURES
Attorney Dehner explained that Operating Rules and Procedures had been discussed during the
August meeting, and said that it had been completely amended, pursuant to the direction of the
Board based upon discussion the Board had identified again during this meeting. He said that
if adopted by the Board, that it would completely replace the one adopted last November.
Attorney Dehner said that the additions were important as discussed in light of the recent moves
by the Division of Retirement in Tallahassee involving two different issues, one for Firefighters
and the other for Police Officers, covered on pages 20 - 29 of the document.
A new interpretation under Chapter 185, with respect to Police Officers, provides that a person
who separates from service with the City as a Police Officer, goes into the military and comes
back, will be given the time spent in the military as credited service in the Plan. The Board
decided to take out the "buy back" provision from the ordinance because the Division is now
under the new policy. The Board placed it in the Rules and it had been provided here to cover
the Plan and to track the minimum requirements of the Federal Uniform Services Employment
and Re- employment Rights Act. With this in the Rules, should the Division end up not strongly
enforcing their position in terms of a loophole to save money or should they change their
position when the Plan runs into a situation with a returning veteran then the Board has
documentation to go ahead and charge the contributions. The same provision is in the Rules for
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fir. September 26, 1995
Police Officers that they have in the ordinance for Firefighters, in the amended ordinance.
Attorney Dehner said that the Division had rendered a new interpretation of "buy back," page
29, 20.1, on the Firefighters, which was not in Chapter 185 and did not apply to Police Officers,
was credited service that allows a Firefighter to separate from service, take his money out, and
then if he is re- employed, would allow him within 90 days of putting back his contributions with
interest, a buy back opportunity for all of that prior time he took his money out for it. Mr.
Dehner said that in Rule 20.1 the Plan was providing, for purposes of the "buy back" provision,
that the interest will be defined as the extent permitted by law. If the Division backs off this
position and doesn't enforce it too quickly, they withhold State money, that the definition of
interest for that purpose was being the greater of the actuarial assumed rate, the actual
investment return, or the actuarilly calculated rate which is the rate that would result in no cost
to the Fund.
Attorney Dehner said that in conjunction with those changes, those two sections were added to
our excerpted provisions of the Rules. He said that if the Board is prepared to act on this, then
the appropriate action would be two motions, one to adopt the Operating Rules and Procedures,
and note in the motion that they completely replace the ones adopted November, 1994; and the
second motion to adopt the Selected Provision and that these replace the prior Provisions.
Chairman Reed proposed a change on page 3 of the Operating Rules and Procedures, "C.
Fifth Trustee. The fifth Trustee of the Board shall be chosen for a two (2) year term every
other year at on or before the first meeting in October ... " Discussion ensued about the time
the fifth trustee takes office should there be no October meeting. Member Williams, seconded
by Member Wilson, moved that the fifth shall be chosen at the meeting at which the ballots are
certified or the next meeting immediately following the certification. Motion carried 3 -0.
Chairman Reed said that that change would affect Section C., page three (3) about the fifth
trustee, as amended. Attorney Dehner said that if these Rules are going to be adopted today,
in addition to that motion that there would have to be "as amended". That would also require
the same amendment to the Selected Provisions.
Discussion ensued about the election procedure and the Board decided on no change to the
process at this time. Also, after discussion and review of the Operating Rules and Procedures,
Member Wilson, seconded by Member Williams, moved to accept the Operating Rules and
Procedures that will replace in its entirety the Rules and Procedures of November, 1994 with
the amendment to the present Operating Rules and Procedures. Motion carried 3 -0.
Member Wilson, seconded by Member Williams, moved to accept the Selected Provisions that
will replace the Selected Provisions of November, 1994, as amended. Motion carried 3 -0.
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September 26, 1995
ORDINANCE NO. 95 - AMENDING ORDINANCE NO. 91 -09
Clerk Stenographer Lewis said that the Notice had included agenda item VI. Ordinance No.
95 - Amending Ordinance No. 94 -06, and said that she believed it had been in error.
Attorney Dehner said that the minutes should reflect "... Amending Ordinance No. 91-09."
Attorney Dehner said that, for Firefighters, they had included the provisions in the Federal
Law, Uniform Services Act in the ordinance. He said that Tallahassee would not allow the Plan
to do it that way for Police Officers so there was a Police Officers provision in the Rules. It
was not for clarity in this case, that it was due to the Federal Law that had changed in
December, 1994.
Attorney Dehner explained the changes, page by page, as follows:
Page 1)
Accumulated Contributions - A "buy back" opportunity had been provided here at no cost to the
system. Also, an accumulated contributions had been provided, and if someone exercised that
"buy back" opportunity where they put in their contributions that they would have made as
military or non - military prior service, and they also put additional monies that is calculated by
the actuary so that it is no cost to the system, should that person terminate at some later date,
all they get back is their contribution part. They will not get those extra monies they put in.
Nu' Page 2)
Credited Service - The deletion of the requirement that if somebody leaves, leaves their money
in the fund, and are re- employed within five (5) years, they have to stay three (3) years to
bridge the gap. The Plan was required to do that for Police Officers but were not required for
Firefighters but the Board had decided in that area to do the same thing for Fire and Police.
The 90 day "buy back" for Firefighters is at the end of the first paragraph of Credit Service, and
also, the military for Police Provisions will credit Police for all purposes including investing,
pursuant to conditions that are a stray as required or permitted under State and Federal Law, as
amended from time to time.
Page 3) Underscored the language of the military "buy back" for Firefighters.
Page 5) Underscored scriveners items for clarity.
One exception was the addition to the salary definition to take advantage of the grandfather
opportunity on the $150,000 compensation limit. Under the Reconciliation Act of 1993, the
Federal Government imposed the cap of $150,000 into the formula for benefit purposes. They
grandfather in anyone that is in the Plan now, that will be in the Plan prior to beginning of the
'96 Plan year the limit that was in effect by August 1, 1993.
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Page 6) Scriveners errors.
Page 7) Scriveners errors.
Page 8)
The new In -line of Duty Presumption that had passed during the last Legislative Session adding
hepatitis A, hepatitis B, hepatitis non -A, hepatitis non -B, hepatitis C, other generally recognized
strains of hepatitis, meningococcal meningitis, or tuberculosis. That is presumption of in -line
of Duty that is set forth on those pages 8 -13.
Attorney Dehner said that if someone files, after January 1, 1996 a disability based upon one
of these conditions, that these were the conditions. He said that he had forwarded a copy of the
Statute of House Bill 167 and recommended that Chairman Reed notify all of the Plan members
of the ordinance and the conditions they would have to meet if they wanted to be able to claim
the benefit of this presumption.
Attorney Dehner said that the other presumption for heart disease, hypertension, and before this
one, tuberculosis, that the requirement was a physical at the time of employment that would have
included an EKG. He said that it did not matter that an employee have a test for these things
upon employment, what was important here was that before the time that an employee tested
positive for one of these, that he had previously tested negative before January 1, 1996. He said
that the Board needed to look at whether they had a test prior to that date that showed that they
were negative, and if they did then they would have met that requirement. If they didn't, they
can't get the benefit of the presumption, and the City is not required under the Statute to provide
that testing, and that was where a member needed to know that he, and not the City, must pay
to have that negative base line established. Mr. Dehner also emphasized the importances of the
following:
A) The Plan Members should bring any questions regarding this issue to a Board meeting.
Chairman Reed said a meeting with Members had been scheduled November 29, 1995.
B) Filing a written report of contact or suspected contact was a requirement to the negative
base line being established prior to diagnosis.
C) If the City offers immunization for any of those conditions, a Member must avail
themselves of the immunization or they can not claim the presumption (unless their
doctor writes a report stating they shouldn't have it and that it would endanger their
health to have it).
D) If a Plan Member has a second employment rendering services (emergency services),
firefighters, or police officers, they cannot get the benefit of the presumption.
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Police Officers' /Firefighters' Retirement Trust Fund
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Page 17)
Language added under Optional Forms of Benefits, the Joint Survivor option, 75 % was added
to the existing 100 %, 66 -2/3 %, or 50 %. The new Internal Revenue Code language requires that
it be there but it did not have any subsidy effect.
Page 18 -21)
Claims Procedures are being taken out of the ordinance and will be placed in the Operating
Rules and Procedures. The procedures may change, by action of the Board, without the need
to pass a new ordinance.
Page 21) Scriveners errors.
Also, changes that are reflected in the Reports to the Department of Insurance and the Division
of Retirement and Municipality had been changed to "City ".
Page 23 -27) Scriveners errors.
Page 27)
Section 12 includes a change in the Internal Revenue Code. It is unlikely to affect anyone in
the Plan.
`..- Page 28)
Liquidation of Pension Fund Assets had been stricken from Section 18 and had been combined
in Section 14.
Page 32)
The "buy back" provision had been added for prior service of the Police Officer or the
Firefighter with the City of Ocoee. He said that when the Board had discussed the 90 day "buy
back" for firefighters, they had wanted to also allow a period for the 90 days for the Police and
Fire, and this was up to 12 months. They can notify the Board from the effective date of the
ordinance for six months from the date of employment or re- employment that they want to buy
back time, and then an employee can go ahead and do it on the "no costs to the Fund" basis.
The Board was going to allow a person to buy up to one (1) year. The Board can set the
parameters to what they would like it to be as it was not mandated. The way it is formed on
page 32 was at no cost to the Fund, with the exception of the Firefighters that have 90 days to
do a contributions with interest. Even that would be at no costs to the Fund under the Rule as
the ordinance permitted that. The time frame was 12 months from the effective date or six (6)
months from re- employment or employment. Employees are provided six (6) months to notify
the Board and then given six (6) months to come up with the money. Member Williams,
seconded by Member Wilson, moved that Ordinance No. 95- , amending Ordinance No. 91-
09, be accepted as presented. Motion carried 3 -0.
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September 26, 1995
Chairman Reed directed Attorney Dehner to move forward to the City with the ordinance as
approved. Attorney Dehner said they will send a copy to Foster & Foster, Inc. so that a letter
of "no impact" could be sent to Tallahassee, and then send a copy to the City. He noted for the
Board that the General Board, by Statute did not have the same investment restrictions as the
Police/ Fire Board. The General Board had taken action at their last meeting to broaden their
ordinance to allow them to consider a broader scope of the investment opportunities such as
foreign investment.
OTHER BUSINESS
BENEFIT IMPROVEMENTS IN THE PLAN
Attorney Dehner suggested that the Board wait until the November meeting to discuss possible
benefit improvements in the Plan. The Board had decided to base any further action on the
October 1, 1995 valuation report for several reasons:
1) The information would be more accurate and current.
2) The actuarial impact statement filed with the State on the valuation report must not be
more than 12 months old.
Attorney Dehner said that based upon the above information that he had not felt it prudent for
a representative from Foster & Foster, Inc., to attend this meeting. Clerk Stenographer Lewis
'411610, had informed the Board earlier, if needed during this meeting, that Actuary Garrett would be
available via telephone conference.
Attorney Dehner said that Actuary Garrett's study regarding the supplement had been done to
cover $100 commencing with the early retirement if that is what someone chose. This was an
issue to be decided by the Board.
SCHEDULE DATES FOR 1996
Attorney Dehner said that the General Employees' Board had established dates and times during
their last meeting. Discussion ensued about the dates and times, and general concensus was 1:00
p.m. for the following:
February 13, 1996 May 14, 1996
August 13, 1996 November 12, 1996
Chairman Reed announced that the next Police /Fire meeting was scheduled for 1:00 p.m., and
also a general member meeting at 5:30 p.m. on November 29, 1995.
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Police Officers' /Firefighters' Retirement Trust Fund
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ATTORNEY COMMENTS
Attorney Dehner explained that he would leave the Monitor Services Contract and the Actuarial
Services Contract for signatures by the Chairman and Secretary of the Board. They had been
executed by Ward Foster on behalf of his firm. There was an original copy for each: Board file,
the Attorney file, and Foster & Foster, Inc. file.
In response to Member Williams, Chairman Reed gave a report on the request made by Billy
Walker.
Chairman Reed said that he would send for the per diem money for the St. Petersburg
conference for Member Williams. He also explained that he had received a statement from Sun
Capital, and expressed concern about the fee. In response to Attorney Dehner, Chairman
Reed said that there had not been any additional charges on the statement for custody related
items.
ADJOURNMENT
Member Williams seconded b Member Wilson moved to ad'ourn the meetin. at 2:35 • .m.
Motion carried 3 -0.
Respectfully submitted,
Judie Lewis, Clerk/Stenographer
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