01-30-2019 MinutesCITY OF OCOEE
MUNICIPAL GENERAL EMPLOYEES' RETIREMENT • FUND
BOARD • TRUSTEES
QUARTERLY MEETING MINUTES
City Hall, Commission Chambers
Wednesday, January 30, 2019 at 10:OOAM
TRUSTEES PRESENT: Gequita Cowan, Chair
Robert Briggs, Vice Chair
Stefanie Wilson, Secretary
Patricia Gleason
Jean Grafton
TRUSTEES ABSENT: None
OTHERS PRESENT: Doug Lozen, Foster & Foster
Tim Nash, AndCo Consulting
Lee Dehner, Christiansen & Dehner
Kim Kilgore, Foster & Foster
1, Call to Order— Gequita Cowan called the meeting to order at 10:00 a.m.
2. Roll Call — As reflected above.
3. Public Comments — None.
4, Approval of Minutes
The board voted to approve the minutes from the November 7, 2018, quarterly meeting,
upon motion by Jean Grafton, second by Patricia Gleason, motion carried 5-0.
a. Warrants #52 and #53 for ratification.
i. Robert Briggs stated his CPPT needed to be renewed with FPPTA for the
year. Kim Kilgore commented she would make sure his CPPT was
renewed.
b. Quarterly fund activity report for November 1, 2018 to January 23, 2019.
kdjT-ZP=W3 0-0 • .000 - -
••-
•• and second • Jean Grafton, motion carried 5-0.
6. New Business-- None.
7. Old Business, — None.
8. Reports (Attorney/Consultants)
a. Foster & Foster Actuaries and Consultants, Actuary, Doug Lozen
i. Presentation of the October 1, 2018, Valuation Report
1. Doug LozeOreminded the board that the October 1.2O18
V@|UEtiOn are 8DD|iC8b|e to City'S D|8n fiscal year ending
September 3O'2020.
2. Doug L0zgD reviewed the data which is COUBCted to produce the
valuation.
3. For the current fiscal year ending September 30.2U1S'the Citv'S
required contribution will be 10.45% of payroll. Looking forward to
fiscal year ending September 30'2020the City'Srequired
contribution is expected to be approximately 8.87% of payroll.
4. Doug LOz80commented that the City had @ prepaid contribution
Of $16.782.88 which will be 8vBi|8b|8 to offset 8 portion of the
City`S required contribution for fiscal year ending 9/30/19.
5. Doug stated the past fiscal year the plan had aOoverall favorable
experience, including more turnover than expected and the
average salary increase Of4.24%was less than the assumption Of
4.65%. [}OUg further stated there were nosignificant source of
unfavorable experience.
S. Doug LOz8ncommented the plan fund had beat the assumed rate
of [etUFO 0f7.75% this past fiscal year.
7. Doug LOzenreviewed the reconciliation Ofthe unfunded actuarial
accrued liabilities /UAAL\noting iOthe next 4years several
balances will be paid off.
8. OOUg LOZen stated the funding ratio OsOfOctober 1' 2018, was
95.9%.
S. Doug LOZenrecommended 8Oexperience study should be
performed every 5years 1Omake sure nOadjustment was needed
LOthe assumptions being used when calculating the valuation.
[)OuQ LOz8n stated the |8St experience study was performed in
JU|y2O14.
The board approved the October 1, 2018, Valuation report as presented upon motion by
Jean Grafton and second by Patricia Gleason, motion carried 5-0.
The board approved for the actuary to perform an experience study upon motion b
Robert Briggs and second by Stefanie Wilson, motion carried 5-0.
The board declared the returns for the plan shall be 7.75% for the next year, the next
several years, and the long-term thereafter net of investment related expenses, upon
motion bv Jean Grafton and second by Patricia Gleason, motion carried 5-0.
b. AOdC0 COnSu|bOg, AOveStnlentCoOSUh@Ot. Tlrn Nash
i. Quarterly Report 8SUfDecember 31.2018
1. Tim Nash reviewed the 8nnU8| letter from AOdCO'S president
pertaining tOthe growth in the firm LO 898rnp|0yeSS' the client asset
growth from 35 billion to around 80 billion and his app[8daUOD of
their long-term clients.
2. Tim Nash gave an overview Ofthe market environment during the
past quarter.
3. Tim Nash reviewed the asset 8UOC8tiOn and stated the pO[tf8|iO`s
asset 8UOc8tiOO8 were all in -line with the investment pO|iCV
statement.
4. llrn Nash reviewed the fiO8OCi8| F8COOCi|i8dOn Emp|8iniDQ the Net
transfers were from raising cash for @ $1 million capital C8|| from
American Realty Advisors.
5. The market value Of the fund as Of December 31, 2018 was
$38,550.771. The total fund gross returns for the quarter were
-9.75. Trailing returns for 1, 3' and 5-year periods were -3.70%'
5.89% and 5.3296 respectively. Since inception (4/1/04)' gross
returns were 6.34% equal to the benchmark.
O. Tim Nash stated domestic equities were down by15%for the
quarter with Eaton Vance and MFG Growth saving US On the down
market.
7� Tim Nash reviewed @ handout showing the total fund 8sOf
January 29,2019was $38.O08,722gaining $1'457.951aSOf
12/31/18.
C. Christiansen &[)8hn8r,Board Attorney, Lee D8hner
i Financial [)iSc|OSUr8 due July Is'
1. Lee O8hDer reminded the board to file their 8Onu8| Dn8nCi8|
diSC|o6up8 by July 1s' to avoid pGO8|tieS.
ii. Operating Rules &Procedures
1. L88 [}ShOer stated he would be updating the Operating Rules and
Procedures with the process outlined by the |F{S Employee Plans
CU[Dp|i@nC8 R8GO|UtiDn System in |Oc8t|Og missing rneDlbe[S who
are owed abenefit.
iii. Legislative Update
1. Lee Oehnercommented the first week Ofthe legislative session will
be in early K48rCh and advised he would provide an update at the
next meeting of any pre -filed bills.
iv. Summary Plan Description /OP[)\tObeupdated
1. Lee Dehnerstated the GPD needed to be updated and he would
provide at the next quarterly meeting to be reviewed by the board.
S. Staff Reports, Discussion, and Action
a. Foster & Foster, K]D1 Ki|oOFe. Plan Administrator
i FPPTAguest fee ulpd8ie
1. Kim hJ!gOne reviewed the FPPTA letter informing members Of an
additional guest fee Of$1OO that will be Charged for each event.
Kim Kilgore further stated there will he no O0O[e0OGite conference
registration for your guest and you will need to register your guest
in advance.
ii. Foster & Foster participant portal update
1. Kim Kilgore updated the board that the member portal was taking 8
little longer to setup than expected due to the time needed for
Finance to extract each nlGrnb8r'S S8|8ry history for the |8St 10
years.
7. GeQUiƒB Cowan had been referred to 8 programmer who could
extract the salaries and produce the required formatted file in just
few days at the price Of $1'500.
Grafton, motion carried 5-0.
3. Kjr0 Kilgore reviewed the member portal letter which will be sent to
each active employee hvGeqUi[@ Cowan once the portal is ready
to go live.
4. Kim >{i|gOne stated workshops will be held for employees at different
work sites atthe end OfFebruary k]provide instruction and answer
any questions they may have about the new portal. Kim further
stated she will send the board the meeting dates and times incase
they would like tOattend.
iii Fiduciary |OSu[@Oce Renewal
1. Kim Kilgore informed the board She was currently waiting On 8
quote from Travelers OO renewing the fiduciary insurance which
expires On 2/18/2019. Kim further stated she vvOu|d renew the
insurance with Travelers once she received the quote.
iv. Educational opportunities
1. Kim Kilgore reminded the board Of the next week's FPPT/\ Winter
GChOO|, February 3-6. 2019. which will be attended by GeqUit8
Cowan and Stefanie Wilson.
10. Trustees' Reports, Discussion, and Action
a. Summary plan modifications announcements between 8p[) updates
i. GeqUiL8Cowan asked when there are plan provision changes inbetween
the 8POupdates could Bnotice bBsent out tOactive members Dfthe
changes. Kim Kilgore stated she could send out 8summary plan
modification aSneeded.
b. Terminated OoO-V8Gt8d members —refunds payable
|. Kim Kilgore reviewed 8 listing Ofterminated non -vested members with
contributions Ondeposit inthe fund,
ii. Kim Kilgore stated she is currently not notified by the City of terminating
Dl8[Oher.
iii. Lee [lShn8rsaid vveneeded tomake areasonable attempt 10reach out to
each terminated member tOexplain their options.
iv. Kim Kilgore cOrDrUenƒ8d she was currently working with the City on a
prOC8SS of reporting to the plan 8dr0iOiStr8tD[ of each terminated OOS[nber
with their contact information and pension contribution totals.
11. Adjournment, — The meeting adjourned at 11:20 a.m.
12. Next Meeting —Wednesday, May 1, 2019 @ 10:00 am, quarterly meeting.
Respectfully submitted by:
4,
Name: Kim Kilgore
Title: Plan Administrator
Approved by:
Q1--c) �
Na
Title: Chair