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HomeMy WebLinkAbout02-10-1997 Minutes %' THE CITY OF OCOEE POLICE OFFICERS' /FIREFIGHTERS' RETIREMENT BOARD MEETING) - February 10, 1997 Chairperson REED called the meeting of the City of Ocoee Police Officers' /Firefighters' Retirement Trust Fund to order at 1:05 p.m. in the Commission Chambers Conference Room of City Hall. The roll was called and a quorum declared present. PRESENT: Chairperson Reed, Members Gledich, Strosnider, Williams, and Wilson. Also present were Actuary Foster, Attorney Dehner, Money Manager Ballew, and Recording Secretary Mela. ABSENT: None. Chairperson REED introduced and welcomed Sue Mela who would be recording the minutes of the meeting. APPROVAL OF MINUTES Member STROSNIDER, seconded by Member WILSON, moved to a. .rove the Minutes of the December 11, 1996 Police Officers' /Firefighters Retirement Trust Fund as presented. Motion carried unanimously. QUESTIONS /COMMENTS FROM AUDIENCE None N`r► CANVAS AND CERTIFY BENEFIT IMPROVEMENT BALLOTS The Police Officers' /Firefighters' Pension Trust Board canvassed and certified the Benefit Improvement Ballot during the February 10, 1997 meeting. The results are as follows: Alternative A Increase the benefit rate from 2.50% to 2.75 % for all years of service (back to date of employment). This represents a 10% increase in your retirement benefits. The cost of this improvement would be funded entirely by the City with no increase in your contribution rate to the Plan (currently 5.0% of salary). 8 VOTES FOR ALTERNATIVE A Alternative B Increase the benefit rate from 2.50 % to 3.00 % for all years of service (back to date of employment). This represents a 20% increase in your retirement benefits. The cost of this improvement would be shared equally by the City and by the members through an increase in your contribution rate to the Plan from 5.0% of salary to 7.6% of salary. 60 VOTES FOR ALTERNATIVE B Police Officers' /Firefighters' Retirement Trust Fund `„b.► February 10, 1997 The majority votes that were casts were in favor of Alternative B. Member GLEDICH, seconded by Member STROSNIDER, moved to certify the election results as stated on the talley sheet, that the total count for Alternative A was eight (8) and Alternative B was 60, for a total of 68 votes. The motion carried 5 -0 in favor of Alternative B. The Board took action to recommend Alternative B as Benefit Improvement to the Plan and directed Attorney DEHNER to contact the City Manager by letter to request approval by the City Commission. DISCUSS /APPROVE BENEFIT IMPROVEMENTS TO THE PLAN Chairperson REED thanked FOSTER and FOSTER for the write up on the A and B alternatives, which had made it easier explaining the issues. There had been very few questions. Lengthy discussion ensued about the alternatives, and a comparison was made regarding what the costs would be to the City in implementing an increase rate of 2.50 to 3.0 for all years of service in a related department as this would raise contributions rates from 5% to 7.6% of salary. The study had not included a 50 -50 split between the employee and the City. It was only on a straight 2.75 or 3.0% assumption that the City would assume the cost of the total. Actuary GARRETT said that the total cost from the study was 5.1% of payroll, that the members would pick up 2.6%. The 5.1% was based only on contributions going up for the t.. City. (Member contributions go up.) He said that more money would be taken out of the Plan in the cases of refunds. A larger liability was necessary for members who terminate prior to being vested so it costs a little more. Attorney DEHNER said that 2.75 would equal 2.6. Actuary GARRETT said that the 2.6 only represented dollars funded by the City so if that were paid for by member dollars it would have been 2.78. Chairperson REED questioned whether it was necessary for the Board to give direction to the City that membership had elected to pursue the 3.0% multiplier at a 50 -50 increase cost with the City. Attorney DEHNER said that an ordinance was needed, and that he would contact the City Manager to schedule meetings with the City. Actuary GARRETT cautioned the Board about the wording, that members were willing to increase their contributions half (for that part of the increase) rather than a 50 -50 split. OTHER BUSINESS DISCUSS /ADOPTION OF REVISIONS - SUMMARY PLAN DESCRIPTION Chairperson REED gave everyone a moment to review the Summary Plan Description. There were no questions or objections. Member GLEDICH, seconded by Member STROSNIDER, moved to accept the Summary Plan Description as changed. Motion carried 5 -0. `'�, 2 Police Officers' /Firefighters' Retirement Trust Fund Nlinv February 10, 1997 AUTHORIZE /RATIFY PAYMENT OF BILLS Secretary STROSNIDER presented a November 1 - February 3, 1997 list of bills which had already been paid, and asked for ratification of payment, and requested approval of the Board to present to SunTrust for payment, the following bills: 1. FPPTA $150.00 2. Foster & Foster $4,750.00 3. City of Ocoee $18.59 4. Judie Lewis $49.05 5. Christiansen & Dehner $376.95 6. Christiansen & Dehner $530.45 7. City of Ocoee $14.60 8. Judie Lewis Secretarial Services $63.76 'fir Member GLEDICH, seconded by Member WILLIAMS, moved to authorize and ratify payment of the bills as presented. Motion carried 5 -0. OPERATING RULES AND PROCEDURES Considerable discussion ensued about (Section) 14.6 Training Injuries on page 26 of the Operating Rules and Regulations. While the name of CFFA (Central Florida Fire Academy) had changed, Member WILSON stated that the Police Department continues to send officers for training at the Academy. The Fire Department, however, no longer used the center for training but a Firefighter had the option of using the facility on their own personal time. Member GLEDICH expressed concern that if by chance a Firefighter went to the Central Florida Fire Academy, that it might in some way affect the Pension Fund if the person were injured. She stated that it was the interpertation of 14.6 in terms of specifically naming Central Florida Fire Academy as the name had been changed. Firefighters go elsewhere for training. In order to accomodate both departments, and Member WILLIAMS, seconded by Member STROSNIDER, moved to delete the Central Florida Fire Academy (in 14.6). Motion carried 5 -0. Attorney DEHNER also noted that there had been one addition under State Law that had changed during the last (Legistlative) session, effective January 1, 1997. The change on page 2, Item 1.5 B - "including but not limited to, food, beverages and transportation," was on what 3 Police Officers' /Firefighters' Retirement Trust Fund ,.► February 10, 1997 is considered a gift which Board members as public officials serving on this Board could receive. The Legislature had come down on conservatism since they (Board members) as fuidicaries could not take beverages or food from someone who they may be voting on but they could accept meals at a conference. The money manager and actuary ( ?) could continue to pick up the tab but the Board members should not do this unless they receive some word that it was different from Tallahassee. Board members may continue to take transportation, food, or beverages that is provided under the auspices of the sponsoring organization. Member WILLIAMS, seconded by Member STROSNIDER, moved to adopt the Operating Rules and Procedures as changed. Motion carried 5 -0. REPORTS ACTUARY Actuary Foster presented the state report as of December 31, 1996, to be signed by the Secretary Strosnider and Chairman Reed. Copies of these reports were distributed to each Member by Chairperson Reed. MONEY MANAGER Money Manager Ballew presented the following: 1) Index GP2 and Govt. C15 2) The Investment Performance Report Ending December 31, 1996. Mr. Ballew reported that the S &P 500 Index was at the top of Index GP2 with a graph going back to December 1961 to present, showing the showing the rise in the market from 1981 to present. Mr. Ballew then provided details about the Sector Performance in the stock market. He presented a clipping from the Wall Street Journel showing the narrow strength in the first part of 1996 stock market. Interest rates of 1996 show that the lower curve where interest rates were at beginning of 1996 and ending 1996. Mr. Ballew then discussed the Investment Performance Report ending December 31, 1996. He reported on the Total Return from the last three months to inception date of 24 months ago. Stocks were down and bonds were up, and this had been a strong quarter in bonds. The Asset Allocation looked the same as last quarter, except equity on the market bargain basis was a little higher percentage if stocks continued to do better than bonds. Member Gledich left the meeting at 1:45 p. m. �► 4 Police Officers' /Firefighters' Retirement Trust Fund %or February 10, 1997 PERFORMANCE MONITOR Performance Monitor Garrett presented an analysis of the investment performance of the Fund for the period December 31, 1996. He said that the rate of return for the quarter was 4.1%. This rate of return outperformed the composite index of market indicators (50 % S &P 500 Composite Stock Index, 45 % Lehman Brothers Government /Corporate Bond Index, and 5% U.S. Treasury Bills) which registered a return of 5.6 %. The rate of return of the Total Fund outperformed the composite index (11.7% vs. 12.5 %) and ranked in the 15th percentile of the Cadence Universe of investment managers for the one year period ended December 31, 1996. The equity portion of the Fund outperformed the S &P 500 over the latest one year period (22.8% vs. 28.7%). Actuary Garrett said all in all it was not a great quarter but FPI inclines are doing better than half of what we are seeing at the present time. ATTORNEY COMMENTS Attorney Dehner had no additional comments. In response to Chairperson REED, Attorney DEHNER siad that the Board may advertise for a recording secretary should Ms. Mela not accept the position. ADJOURNMENT Member STROSNIDER, seconded by Member WILSON, moved to adjourn the meeting at 2:05 p.m.. Motion carried 5 -0. Respectfully submitted, V.SI. 40+1/4- Sue Mela, Recording Secretary a: \wp60 \PF021097. M \111 \ sm 5