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Home My WebLink About02-07-2018 MinutesCITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND BOARD OF TRUSTEES QUARTERLY MEETING MINUTES City Hall, Commission Chambers Wednesday, February 7, 2018 at 10:OOAM TRUSTEES PRESENT: Patricia Gleason Jean Grafton Robert Godek Gequita Cowan Pam Brosonski TRUSTEES ABSENT: None OTHERS PRESENT: Jennifer Gainfort, AndCo Consulting Doug Lozen, Foster & Foster Gene Williford, City Liaison Lee Dehner, Christiansen & Dehner Ferrell Jenne, Foster & Foster Kim Kilgore, Foster & Foster 1, Call to Order — Robert Godek called the meeting to order at 10:03 a.m. 2. Roll Call — As reflected above, 3. Public Comments — None. 4. Approval of Minutes MaTem. amo 1P 11-m- IN11 5. Consent Agenda a. Warrants #40 and #41 for ratification. b. Warrant #42 for payment approval. second by Pam Brosonski, motion carried 5-0. 6. New Business a. New member elected trustee i. Robert Godek introduced Pam Brosonski as the newly elected trustee. b. Election of officers M-q.FFIX441111711007 �W a ik� motion carried 5-0. Notf-M, IMAM MOM A" carried 5-0. Lee Dehner reminded Pam Brosonski to file a Form 1 to the Supervisor of Elections in the county which she permanently resides. Ferrell Jenne confirmed the Form 1 F was sent to exiting trustee, Robert Briggs. c. Quarterly Fund Activity Report for October 26, 2017 — January 31, 2018 i. Ferrell Jenne briefly reviewed the fund activity report. •it • . •• "11 1111111111iil 1::r 11:11l • TIM. Mrsorm. IMIM."M ff HIM. ". IIII M-WrQkWW.IdAM4WM M 7. Old Business a. Travel Policy i. The board reviewed the current City travel policy which is being followed by the board. After discussion, the board requested Ferrell Jenne to draft a separate travel policy from the City's that would allow for reimbursement on all reasonable travel costs. 8. Reports a. Foster & Foster, Actuary, Doug Lozen i. Presentation of the October 1, 2017, Valuation Report 1. Doug Lozen reminded the board that the October 1, 2017 valuation are applicable to City's plan fiscal year ending September 30, 2019, 2. Doug Lozen reviewed all the data which is collected to produce the valuation. 3. For the current fiscal year ending September 30, 2018, the City's required contribution will be 10.76% of payroll. Looking forward to fiscal year ending September 30, 2019 the City's required contribution is expected to be approximately 10.45% of payroll. 4. Doug Lozen commented that the City's contributions will be approximately between $800,000 to $900,000 for FY 2018. 5. Doug reviewed the valuation and commented the plan showed a lot of stability but fell short on assumptions. Doug explained the UAAL. Experience since the prior valuation has been less favorable than expected. The primary source of unfavorable experience are attributable to lower than expected retiree mortality, average increases in pensionable compensation that were more than the assumed rate, a lower invest return than the assumption, and unfavorable retirement experience. 6. Doug Lozen stated the funding ratio as of October 1, 2017, was 94.2% and commented that over the next 5 years, the City's contribution percentage will drop into the single digits. a Is A - a W NKMHM—MW—M---X UMUM MUMMA Jean Grafton and second by Geguita Cowan, motion carried 5-0. g� •11MM M M ma_ AIMMISITIOM411MUM&A b. AndCo Consulting, Investment Consultant, Jennifer Gainfort i. Jennifer Gainfort introduced herself to the board. ii. Jennifer Gainfort reviewed the year's returns and gave a brief overview of the market environment during the past quarter. iii. Jennifer Gainfort reviewed the market pull back with the recent market low in January. She commented the plan is up 0,6% & 3.9% from calendar year end through yesterday. iv. The market value of the fund as of December 31, 2017, was $38,356,708. v. Total fund net returns for the quarter were 3.29%, underperforming the policy benchmark of 3.97%, placing the Fund in the 77t' percentile on a gross basis. Total fund net trailing returns for the 1, 3 and 5-year periods were 15.17%, 7.32%, and 9.17% respectively. Since inception (4/1/2004), total fund net returns were 6.76%, underperforming the benchmark of 7.09%. vi. Jennifer Gainfort reviewed the performance of each investment manager and current asset allocation, vii. Jennifer Gainfort reviewed the plan growth over the last 10 years. viii. Jennifer Gainfort commented that no rebalancing is needed at this time. ix. Jennifer Gainfort discussed changing share classes to save approximately 10 basis points. H�M motion carried 5-0. c. Christiansen & Dehner, Board Attorney, Lee Dehner i. Lee Dehner reviewed SB980 that would require additional calculations to be done by the actuary. a. Ferrell Jenne, Plan Administrator i. Introduced Kim Kilgore as a new plan administrator for Foster & Foster and briefly reviewed her pension administration experience. Ferrell explained that Kim Kilgore will also be assigned to the plan and attending future meetings. ii. Educational opportunities 1. Ferrell Jenne reminded the board about the upcoming FPPTA conference on June 24-27 in Orlando, Florida. Gequita Cowan commented she would like to attend. 10, Trustees' Reports, Discussion, and Action I Qits _LjA1§pn a. Patricia Gleason gave a brief overview of the valuable information presented at the Division of Retirement Conference she attended. 12. Adiournment — The meeting adjourned at 11:02 a.m. 13. Next Meeting — Wednesday, May 2, 2018, quarterly meeting, Resppctfully s ' ubmitted by: Approved by: (Ak f)i Ltrk G Name: Kim Kilgore Name) -Robert Gode"'k-"" Title: Plan Administrator Title: Chairman Date Approved by the Pension Board: 41 5-- ;2 -.- / ?