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HomeMy WebLinkAbout11-01-2017 Minutes CITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND BOARD OF TRUSTEES QUARTERLY MEETING MINUTES City Hall, Commission Chambers Wednesday, November 1, 2017, at 10:00AM TRUSTEES PRESENT: Patricia Gleason Jean Grafton Robert Godek Robert Briggs Gequita Cowan TRUSTEES ABSENT: None OTHERS PRESENT: Jeanine Bittinger, Davidson, Jamieson & Cristini Richard Cristini, Davidson, Jamieson & Cristini Tim Nash, AndCo Consulting Russ Wagner, Plan Retiree Gene Williford, City Liaison Lee Dehner, Christiansen & Dehner Ferrell Jenne, Foster & Foster 1. Call to Order— Robert Godek called the meeting to order at 10:06 a.m. 2. Roll Call — As reflected above. 3. Public Comments — None. 4. Approval of Minutes The minutes from the August 2, 2017, quarterly meeting were approved upon motion by Jean Grafton and second by Gequita Cowan, motion carried 4-0. 5. Consent Agenda The consent agenda was approved as presented upon motion by Robert Briggs and second by Gequita Cowan, motion carried 4-0. 6. New Business a, Trustee term updates i. Ferrell Jenne advised the board that Jean Grafton was reappointed at the August 15, 2017 Council meeting. ii. Robert Briggs will be retiring from the City on November 17, 2017. Ferrell Jenne commented she will work with the City Clerk to send out a notice to the membership regarding the vacancy. b. Quarterly Fund Activity Report for July 27, 2017 —October 25, 2017 i. Ferrell Jenne briefly reviewed the fund activity report. The quarterly fund activity report for July 27, 2017 — October 25, 2017 was approved as presented upon motion by Jean Grafton and second by Gequita Cowan, motion carried 4- 0. c. Discussion of Travel Policy i. Ferrell Jenne commented that the board has adopted the City travel policy per the plan's operating rules. Lee Dehner advised the board they are a separate entity and can adopt their own policy. The board requested Ferrell Jenne to provide a copy of the City's travel policy and for the topic to be further discussed at the next meeting. Note: Pat Gleason arrived @ 10:11 a.m. d. 2018 Meeting Dates i. Ferrell Jenne confirmed there were no conflicts with the FPPTA conferences. e. Foster & Foster memo regarding online submittal of the valuation reports i. Ferrell Jenne reviewed the online submittal process and additional work that is required to comply with the State's mandate to file all valuation reports online, using the State's portal. The board approved the additional fees to electronically file future valuation reports using the State's portal as outlined in the Foster & Foster memo upon motion by Robert Briggs and second by Gequita Cowan, motion carried 5-0. 7. Reports a. Davidson, Jamieson, & Cristini, Plan Auditor, Jeanine Bittinger i. Audit report as of September 30, 2016 1. Jeanine Bittinger reviewed the plan assets, liabilities, deductions, and net position. 2. Jeanine Bittinger commented that it was a great year for the plan, with the end of year assets increasing from $31,379,117 as of 9/30/15 to $33,663,627 as of 9/30/16. 3. Jeanine Bittinger reviewed the new GASB requirements and investment return measurement at fair market value. 4. Jeanine Bittinger reviewed the total administrative expenses and stated that they were well below 1.0%. 5. Jeanine Bittinger reviewed GASB 67 and stated that the net position as a percentage of total pension liability is 93.66%. Jeanine commented that this is the highest funded status she has seen in the thirty pension plans they audit. 6. Richard Cristini stated that there is typically a $2,000 fee increase due to the new GASB requirements, but the fee was being waived for this plan. Note: Gene Williford arrived at 10:36am 7. Jeanine Bittinger reviewed the money-weighted rate of return information and confirmed this is net of investment expenses. b. AndCo Consulting, Investment Consultant, Tim Nash i. The market value of the fund as of September 30, 2017, was $37,201,195. ii. Tim Nash reviewed the asset allocation, commenting all allocations are within the ranges stated in the IPS. iii. Tim Nash reviewed changes to the portfolio, commenting that MFS Growth has been added. iv. Total fund net returns for the quarter were 3.05%, underperforming the policy benchmark of 3.49%, placing the Fund in the 72' percentile on a gross basis. Total fund net trailing net returns for the 1, 3 and 5 year periods were 11.91%, 7.40%, and 8.77% respectively. Since inception (4/1/2004), total fund net returns were 6.63%, underperforming the benchmark of 6.91%. v. Tim Nash did not recommend making any changes at this time. vi. Tim Nash reviewed the compliance checklist and the investment management, custodial and consulting fees. c. Christiansen & Dehner, Board Attorney, Lee Dehner i. Lee Dehner reviewed SB80. Ferrell Jenne commented she has sent the posting requirements to the City and requested that they post the information on the City's website and in the main administrative building. ii. Lee Dehner reviewed the legal representation memo and commented that he will continue to represent the board. Firm wide, they will continue to represent approximately 100 pension plans across the state. iii. Lee Dehner reviewed a request that members have asked to make changes to normal retirement eligibility based on years of service and no age requirement. Lee commented that the board should get a cost study done by the actuary and then make a recommendation to counsel to amend the ordinance. iv. Gene Williford commented that a few members have requested a change in the normal retirement eligibility by either remaining or lowering the age requirement. v. Lee Dehner commented that a change to the normal retirement age will probably be costly. vi. Gequita Cowan asked approximately how many members have reached 27+ years of service, but haven't reached the age for normal retirement eligibility. Gene commented that currently there are 2 or 3 members and may be a total of 10 in the future. vii. Russ Wagner cautioned the board to closely review the request as there will be a significant funding increase. viii. Gene Williford reviewed the option the members have to cease their contributions once 81% of the AFC is reached. ix. Lee Dehner reviewed the air time provision and Ferrell Jenne confirmed that the plan allows members to purchase air time up to 5 years once a member is vested. x. Board requested Doug Lozen to discuss options for lowering the normal retirement eligibility at the next meeting. 8. Staff Reports, Discussion and Action a. Ferrell Jenne, Plan Administrator i. Educational opportunities 1. Ferrell Jenne reviewed the upcoming Division of Retirement and FPPTA conferences. 2. Patricia Gleason asked about being able to stay overnight for conferences that are held in the Orlando area. Ferrell Jenne commented that the board requested changes to the travel policy be tabled until the next meeting. 9. Trustees' Reports, Discussion, and Action / City Liaison - None. 10. Discuss Agenda Items for Next Board Meeting 11. Adjournment— the meeting adjourned at 11:26 am. 12. Next Meeting —Wednesday, February 7, 2018. Respectfully s •mitted by: Appro,ed by: Na Fe ell Jenne Name: Robert Godek Title: ' an Administrator Title: Chairman Date Approved by the Pension Board: 1"o3cv(A'IC-\i