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HomeMy WebLinkAbout02-03-2016 Minutes CITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND BOARD OF TRUSTEES QUARTERLY MEETING MINUTES City Hall, Commission Chambers Wednesday, February 3, 2016, at 10:OOAM TRUSTEES PRESENT: Jean Grafton David Wheeler Patricia Gleason Robert Godek Robert Briggs (took his seat on the board after the election certification process was complete) TRUSTEES ABSENT: None OTHERS PRESENT: Ferrell Jenne, Foster & Foster Tim Nash, The Bogdahn Group Lee Dehner, Christiansen & Dehner Doug Lozen, Foster & Foster Russ Wagner, Plan Retiree Mike Flaherty, Plan Member Chuck Wiggler, Plan Member 1. Call to Order David Wheeler called the meeting to order at 10:05AM. 2. Roll Call As reflected above. 3. Public Comments None at this time. 4. Approval of Minutes The minutes from the November 4, 2015, quarterly meeting_ were approved upon motion by Jean Grafton and second by Patricia Gleason, motion carried 4-0. 5. Consent Agenda a. The board reviewed and discussed the items on the consent agenda. The consent agenda was approved as presented upon motion by Jean Grafton and second by Robert Godek, motion carried 4-0. 6. New Business a. Quarterly retiree activity report. i. David Wheeler briefly reviewed the retiree activity report with the board. ii. The board had no questions. b. Fiduciary liability insurance policy. i. David Wheeler reviewed the renewal policy. ii. Ferrell Jenne stated the policy was a three year binder so the premium would be locked -in versus a one year policy with premiums that continue to increase as the plan's assets grow. Ferrell informed the board that last year's policy premium was $5,059 and this year's policy premium is $5,552. The board voted to approve the renewal of the fiduciary liability policy as presented upon . motion by Jean Grafton and second by Patricia Gleason, motion carried 4-0. c. Certification of election results. 1 i. David Wheeler commented there were two nominees for the vacant member elected trustee position; Robert Briggs and Mike Flaherty. ii. Ferrell Jenne opened the ballot box and counted all ballots. Mike Flaherty received 23 votes and Robert Briggs received 46 votes. The board certified the election results upon motion by Robert Godek and second by Jean Grafton. motion carried 4-0. Note: Robert Briggs arrived at 10:20am. iii. Lee Dehner informed Robert Briggs he needed to file a Form 1, Financial Statement of Interests within 30 days of taking office. d. Election of Officers. Jean Grafton nominated David Wheeler for Chairman and second by Robert Godek, motion carried 5 -0. Jean Grafton nominated Robert Godek for Vice Chairman and second by Patricia Gleason, motion carried 5 -0. Patricia Gleason nominated Jean Grafton for Secretary and second by Robert Brims, motion carried 5 -0. 7. Old Business- None. 8. Reports a. Foster & Foster, Doug Lozen, Actuary. i. Presentation of the October 1, 2015 valuation report. 1. Doug Lozen reported that the Plan was in good shape and positioned well with funding primarily due to investment returns exceeding the 7.75% assumption, lower than anticipated salary increases, and greater than expected inactive mortality. Doug stated the gains were partially offset by the number of previously terminated vested members entering payment status. 2. Doug Lozen stated the City's funding requirements continue to come down. For the current fiscal year ending September 30, 2016, the City's required contribution will be 10.72% of payroll. Looking forward to fiscal year ending September 30, 2017, the City's required contribution is expected to be approximately 10.0% of payroll. 3. Doug commented there was a prepaid contribution from the City in the amount of $10,741 reconciled through fiscal year ended September 30, 2015, which will be available to the City for fiscal year ending September 30, 2016. 4. Doug Lozen stated the Plan's actuarial liability funded ratio was 95.4 %, an increase from last year's funded ratio of 93.1%. Funded ratio on market value of assets was 108.3% as of October 1, 2015. 5. Doug briefly reviewed the GASB 67 statement and explained normal cost. 6. Doug Lozen reported an increase in administrative expenses from the prior year stating the increase was partly due to an increase in actuarial fees since additional calculations were mandated to be done in conjunction with Senate Bill 534. 7. The board had no questions. The board voted to approve the October 1, 2015 valuation report as presented upon motion by Robert Godek and second by Jean Grafton, motion carried 5-0. 2 The board voted to declare the expected rate of investment returns shall be 8.0% for the next near, the next several years, and the Iona -term thereafter net of investment related expenses, upon motion by Jean Grafton and second by Robert Godek, motion carried 5 -0. b. The Bogdahn Group, Tim Nash, Investment Consultant. i. Quarterly report as of December 31, 2015. 1. Tim Nash introduced himself to new trustee Robert Briggs and briefly reviewed his role with the plan. 2. Tim Nash gave a brief . overview of the market environment during the quarter and major market index performances. 3. Market value of the fund as of September 30, 2015 was $31,441,928, and by December 31, 2015 was $32,368,864. 4. Tim Nash stated the portfolio was in line with the IPS ranges so no rebalancing was needed at this time. 5. Net earnings for the quarter were 3.01 %, underperforming the policy benchmark of 3.46 %. Net earnings since inception (4/1/04) were 6.13 %, underperforming the benchmark of 6.31 %. 6. Tim Nash briefly reviewed the performance of the investment managers and did not recommend any changes. 7. Tim Nash discussed the compliance checklist and reported the plan was behind the benchmark over the trailing 5 year period, but the changes that have been made to the portfolio will help increase the total returns. 8. Lee Dehner commented that May 7, 2014 was the last IPS change. 9. Jean Grafton stated she appreciated Tim Nash's work and the investment guidance of The Bogdahn Group. c. Christiansen & Dehner, Lee Dehner, Attorney. i. Legislative update. 1. Lee Dehner stated the legislature was currently in session and to date, no Bills have been filed that would have an impact on the plan. 2. Lee Dehner reviewed Senate Bill 534 and commented that the calculations need to be done within 60 days of valuation approval and posted on the City's website. 3. Lee Dehner reminded the board to file their Financial Statement of Interests forms by July 1st to avoid fines. 9. Staff Reports, Discussion, and Action a. Educational opportunity. i. Ferrell Jenne informed the board that FPPTA would be holding their annual conference in Orlando, June 26 -29, 2016. Robert Godek and Jean Grafton stated they would like to be registered for the conference. ii. David Wheeler commented that Robert Briggs would need to become a CPPT within 3 years of becoming a member of the board. iii. Ferrell Jenne and David Wheeler briefly reviewed the FPPTA program. b. Update on PF -11 forms to plan retirees. i. Ferrell Jenne informed the board that she received the outstanding PF- 11 from Joyce Staub. c. Plan administration portal. i. Ferrell Jenne reviewed the website portal on Foster & Foster's website which could be set -up to hold all of the plan's forms, reports, meeting minutes, and other important documents which would be accessible to all members and trustees. Ferrell informed there would be a one -time set- up fee of $750. ii. Robert Wagner commented the City's website currently uploads valuation reports, minutes, agendas, and Bogdahn's quarterly report. 3 10. Trustee Reports, Discussion, and Action /City Liaison a. Reimbursement for conferences. i. The board discussed Fifth Third's timeliness issues with recent requests for reimbursement and would like to have checks issued for hotel expenses prior to any conference attendance. Trustees will send Ferrell Jenne their statement of hotel fees for processing ahead of time. 11. Public Comments a. Russ Wagner commented that Fifth Third and Foster & Foster had processed his benefit payments quickly. b. Russ Wagner was informed through the Ethics Board that if he was serving as a trustee on the Pension Board as of December 31St, he needed complete a 2016 Financial Disclosure form. c. Chuck Wiggler asked when the member certificates would be available and David Wheeler commented they would be ready in about a week per Doug Lozen. d. David Wheeler instructed Robert Briggs to contact Ferrell Jenne for any plan documents or questions he had regarding the pension plan. 12. Adiournment The meeting adjourned at 11:30AM. 13. Next Meeting May 4, 2016 at 10:OOAM. - spectful s bmitted by: Approved b 4 .1 U -: rreII Jenne Name: David Wheeler Title: Plan Administrator Title: Chairman Date Approved By the Pension Board: MAN I I d-L I 4