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Home My WebLink About08-06-1997 Minutes THE CITY OF OCOEE POLICE OFFICERS'/FIREFIGHTERS' RETIREMENT BOARD MEETING - August 6,1997 Member STROSNIDER called the meeting of the City of Ocoee Police Officers' /Firefighters' Retirement Trust Fund to order at 10:04 a.m. in the Commission Chambers Conference Room of City Hall. The roll was called and a quorum declared present. PRESENT: Chairman Reed, Members Strosnider and Wilson. Also present were Actuary Foster, Attorney Delmer, Money Manager Ballew, and Recording Secretary Mela. ABSENT: Members Gledich, Williams Discussion ensued concerning the Minutes of May 7, 1997 as follows: Randy Conyers presented a letter to the Police Officers'/Firefighters' Pension Board. The letter was read to the board by Member STROSNIDER. Chairman REED asked if the Police Officers'/Firefighters board or the General Employee board gave Randy an answer to his question in writing or verbal. Chairman REED suggested that we answer his questions. The suggestions were to send him a copy of the minutes of May 7, 1997 in an inter - office envelope, and highlight his portion of the minutes. Member STROSNIDER, seconded by Member WILSON, moved to approve sending Randy Conyers a copy of the May 7, 1997 minutes with highlighted section. Motion carried unanimously. APPROVAL OF MINUTES Member STROSNIDER, seconded by Member WILSON, moved to approve the Minutes of the May 7, 1997 Police Officers'/Firefighters Retirement Trust Fund as presented. Motion carried unanimously. QUESTIONS /COMMENTS FROM AUDIENCE There were no questions from the audience. Police Officers'/Firefighters' Retirement Trust Fund August 6, 1997 OTHER BUSINESS 1- AUTHORIZE/RATIFY PAYMENT OF BILLS Member STROSNIDER presented a May 7, 1997- August 6, 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. SunTrust $6,094.55 2. Foster & Foster $1,000.00 3. City of Ocoee $ 32.76 4 FPPTA CONFERENCE Tony Wilson $200.00 5. FPPTA CONFERENCE Mike Reed $200.00 tlinv 6. Christian & Dehner $65.40 7. Christian Dehner $604.35 8. Sue Mela $58.86 Chairman REED brought up that Member WILSON will not be attending the FPPTA Conference and therefore, the $200.00 was not paid. This was per Diane Garcia of SunTrust Bank. Member WILSON, seconded by Member STROSNIDER, moved to authorize and ratify payment of the bills as presented. Motion carried unanimously. 2 Police Officers'/Firefighters' Retirement Trust Fund August 6, 1997 2- RECORDING SECRETARY POSITION Concerning the recording Secretary position. Recording Secretary Mela asked the board to find another recording Secretary due to not having the capacity to properly due the minutes. Discussion ensued with the board to hire a Court Stenographer to record the minutes. Recording Secretary Mela offered to inquire what the cost would be and where we would go to get a Stenographer. Chairman REED asked approval from the board to let Recording Secretary Mela ask around to get this information for the next meeting. 3- EXPIRING TERM Chairman REED, Member STROSNIDER, and Member WILLIAMS term expires October 1, 1997. Member STROSNIDER suggested this be put on the next Agenda for election. 'to" Chairman REED motioned that we contact Jean Grafton, City Clerk to contact Member WILLIAMS to see if he would like to serve again next and to discuss the election procedures, for the meeting in September, 1997. REPORTS ACTUARY Actuary FOSTER presented the performance report as of June 30, 1997, to be signed by the Secretary Strosnider and Chairman Reed. Actuary FOSER reported this was a good quarter. The report completes 2 1/2 years of investment management by STI Capital Management. He reported how things have grown in 2 1 /2 years, starting out with $1,500,000.00 and now with $3,700,000.00, showing that this has more than doubled the money in the 2 1 /2 year period. The average annual return over that 2 1/2 year period has been 19.4% per year. This is almost 2 1 /2 time more than anticipated for actuarial purposes (looking at 8% and receiving almost 20 %). He reported the rate of return for the quarter was 10 %. The report for the period ending June 30, 1997 is on file and available for review. % or 3 Police Officers'/Firefighters' Retirement Trust Fund August 6, 1997 Chairman REED made a motion to accept the Investment Performance of June 30, 1997. Member STROSNIDER, seconded by Member WILSON, moved to accept the Investment Performance of June 30, 1997 as presented. Motion carried unanimously. MONEY MANAGER Money Manager BALLEW presented the Investment Performance Report Ending May 7 1997, with a few comments stocks being up 17 1/4%. This was the strongest quarter for the Stock Market, since the first quarter of 1991. We trailed the S &P by a couple of percent for the quarter. This report for the period ending June 30, 1997 is on file and available for review. PERFORMANCE MONITOR This was presented by Actuary FOSTER in the Actuary Report. ATTORNEY COMMENTS "N` Attorney DEHNER informed the Board about the following: 1) Removing quality restrictions from their investments for Fixed Income and to increase their Equity limit from 50 to 60 %. It would be a good time for the Board to consider it since they were moving on the ordinance anyway. They were not talking about a Policy change at this point. Member WILSON, seconded by Member STROSNIDER, moved to have Attorney DEHNER change the Plan's Ordinance, Section investment in Equities from 50 to 60% at cost. Motion carried unanimously. 2) Set -off for a member receiving Workers Comp Plan Disability Benefits and Social Security Benefits. Years ago, the Board had discussed but had chosen not to approve a Set -off Provision at a 100% Workers Comp Disability combined. Member STROSNIDER, seconded by Member WILSON, moved that an individual will not receive more than a 100% of average weekly wage as defined in the Comp Statute Chapter 440 through combined three elements (Workers Comp, Disability, and Social Security) Motion carried unanimously. err 4 Police Officers'/Firefighters' Retirement Trust Fund silow August 6, 1997 Attorney DEHNER said that they would need a sign -off from the Union(s) before the second reading of this ordinance. Chairman REED will send a copy of the final ordinance to the Union(s). Two bills were pending in Washington that if passed will have an affect on the Plan, both positive: 3) Section 415 C - Internal Revenue Limit - One is where we have Buy -backs (There was a buy -back provision in the Plan although it was limited to a year. Attorney DEHNER was not sure if it exceeded the limit). Currently, a buy -back is subject to Section 415 C, Internal Revenue Limit, a contribution limit which is the lesser of 25% of $30,000. If anyone exercises a buy -back now Actuary Foster was required to calculate the amount to see that it was not going to exceed that amount. If it did exceed that amount, there was a cut -off for what they can buy in that year, whatever the amount was. Attorney DEHNER will keep them updated. 4) Code Section 40184 - A non - discrimination section of the Internal Revenue Code that essentially provides that higher salaried employees could not get more Plan benefit options than what lower salaried employees could get. It was a non - discrimination provision. It had been applicable and in the Code for years. It has been applicable in the private sector for years. Also, for about 20 years, there had been a series of temporary moratoriums on this application of public Plans because problems that existing in private Plans did not lend itself to public Plans. Currently scheduled to become effective January 1, 1999 for public Plans, and if that occurred, Actuary FOSTER would have to do testing to verify that the Plan did not violate the provision. A Bill was pending that would make that Moratorium, that's been happening on a temporary basis for 20 years, permanent. If that passed the Board would not have to worry about non - discrimination. In response to Chairman REED, Actuary FOSTER said that their billing statement would reflect any time that might be spent for litigation regarding the NASDAQ Market Wager Anti Trust Litigation. Chairman REED said that the Board must ratify the election results at the November 17 meeting. ikkir 5 Police Officers'/Firefighters' Retirement Trust Fund ` y August 6, 1997 Discussion ensued about a `floor contribution," a popular sort of pre - funding approach. Actuary FOSTER provided an example: "If the Plan had a 20% return, then the beneficiary of a good experience would be the City, their contribution would go down, members still pay whatever they are paying but if the Plan had a funding, for example, 18% , then, out of the proposed benefit increase, the City would be contributing 19.6% but in two or three years, if the Plan had good experience it could go to 15 %. If you have a floor, however, that may be 18 %, then the Plan had an opportunity to store up excess investment earnings and build the Fund up so that they could afford benefit improvements without going back and asking for money." Mr. FOSTER did not support this approach from the Board at this time. ADJOURNMENT Member STROSNIDER, seconded by Member WILSON, moved to adjourn the meeting at 11:15 a.m.. Motion carried unanimously. Respectfully submitted, Sue Mela, Recording Secretary a: \wp60\PF080697.M\# 1 \sm SGw 6