08-07-2019 MinutesCITY OF OEE
MUNICIPAL GENERAL EMPLOYEES' RETIREMENTTRUST FUND
BOARD OF TRUSTEES
QUARTERLY MEETING MINUTES
City Hall, Commission Chambers
Wednesday, August'7, 20,19 at 10:OOAM
TRUSTEES PRESEN'r'a Gequita Cowan, Chair
Robert Briggs, Vice Chair
Stefanle Wilson, Secretary
Patricia Gleason
Jean Grafton
TRUSTEES ABSENT, None
OTHERS PRESENT: Doug Lozen, Foster & Foster (via t6ephone)
Jeanine Biffinger, Davidson, Jamieson & Cristini
Ric iard Cdsfini, DaOdson, Jamieson & Cristini
TyGer"Grumbes, AndCo ConSUIting
Pedro Herrera, Sugarman & Susskind
Kirn Kilgore, Foster& Foster
Jamie Croteau, Plan mernber
Carn Fall, Plan rnernber
Debra Douglas, Ran member
1. it to Order —GeqUita Cowan ailed the rneet4igto order at'10-00 a,ry,n.
2, Roll Call -- As real eant ed above.
3. Public Cornments —
a, Jamie Croteau introduced herself to the board. Jamie Croteau reviewed si'le had
origirwaHy left the City of Ocoee ernployrnent in 2010 with as Rde over 4, ycars of
service,
b. Jamie Ciroteml presented an ernai! dated Septernber 8, 20,15frorn Foster &
Foster adrninistrafion which was 5 years and 5 months after her termnation date
stating her vesting period wouM rernain at 5 years it she left her cont0bratio ns in
the plan and was rehired,
c. Jarnie Croteau commented the ordnance states your rights and benefits are
forfeited when your contributions are refunded from the plan.
d, Jamie Croteau cornmented Russ Wagner was an ernpioyee who had an
exception �for cre0ed service, Jamie further commented she feit there were
other plan mernbers who r-nay have been affected.
e. Doug Lozen conirnented the ordinance states as terminated ernployee who was
not vested in the pan at the time of termination could leave contributions in the
plan and if rehired within five years from terrniriation th& service wouN be
bridge. [)cars g Lozen further stated It had been aCrnost nine years since Jamie
Croteau was rehired,
f. The actuary recornmendafion was to calcuWe the actuadal cost at today's valUe
which woud be $47,772 and then rnintm OLA the $36,043,25 which was her,
contrffiutions on deposit, leaving as b2lance of $11,7,28.75 for the cost of the 4
years, 73 days for Jamie Croteau's prior sc-ervice,
g, Robert Briggs qUestioned if the city contributions were figured into the
caiculation,
h, Doug Lozen expiained this was as cost rieutral sacra CUlation arid no city
contributions would be consder ed into the factor, Doug Lozen fUrther expIa4ied
the city contribufion was as requirernent each year and riot as rnatch for each
ernpioyee.
L Pedro Herrera expiained the ordinance was siient to that happens if member
was not rehired unfii after 5 years frorn termination and contributions were not
refUrided. Pedro Herrera further stated the pan does have a provision for
refunded bUyback service.
h:`Iedro Herrera stated he and the aCtLl,-�M"Y CUICLU'red the calculation performed
WOUId be safisfactory according to pran prove sions,
k Jarnie Croteau cornmented fl-iere was no conversation she WOUld owe more
rnoneyfor previOLIS serOCEe when rehired,
1, Gee Cowan asked Jamie Croteau had she received any information abOLit
leaving her contributions inn then plan when she terMinated services. Jarnie
Croteau stated she did not.
rn. Pedro IIerrera reviewed the ordinance on the cost of refunded service bUyback
pUrchase woWd be the contributions ph.is the arriounts aCtUarially determined
such that the crediting of service does riot reSLflt in any cost to the Fund.
n. Robeft Briggs cornmented he did not fee6 It was the City's irrtent to have an
employee pay an aMfionai cost when rehired after ieaving contribulearns in the
plan, Robert further COMmented we need to reach out to the City to find out their
intent of the ordin2nce,
o, Gee Cowan cornmented she had a probhern with not administering the pi an per
ordinance and we ShOLM ask the cornrnission since they approved flie
ordinance,
p. Pedro Herrera said the ordinance was cfear about, the cost after the 5 years of
riot being rehired,
q. Pedro Herrera stated rnaybe we shouid askthe City Manager and City Attorney if
a terminated Member was rehired after 5 years ShOUld they have to pay
additional Money to the found.
r. Patricia Gleason stated if thiS iSSUe was too hard to resolve wouid it be possible
to split the cost between member and City.
s, Pedro Herrera stated then we would be faced with the SitUation of rnernbers who
have already purchased and paid the additional arnOUnt,
t. Robert Briggs asked aboutthe 5-year N/esting provision and 3% accruai.
u, Pedro Herr -era stated flie ordinance was very ciear if teed after Septernber, 2012
member does not receive previous benefits, Pedro iierrera further stated Jarriie
was not vested, therefore,, WOLM riot receive previous benefits,
v. Pedro Herrera stated as ca{culafion could be performed to see how much credited
servir;e could be purchase with ter $36,043,25,
w. Jarnie C,,roteau commented she does riot feel like it was the City's intent of
charging rehired ernployees an ad6tionW arrIOUnt,
x. DOLIg Lozen stated we would need to address the inservice disthbution if no
action was taken on Jarnie Croteau's bt.,jyback and refund was needed.
y, Pedro Herrera noted any changes to the CUrrent plan provisions wotfld need to
be approved by the City,
Note., Doug Lozen iefl, n7eeting at 10:57 a, rn.
4Ap rqKgL1.21' Minutes ._p
Me board voted tcLgL)jjr.(°Ltq gy _tL�I_Mlnt,ites frorn Mg I the -019,,_quq
motio _Ltc_ ly _�n.L [4, LQ
.-2fl.hy_kotLtL, Ct ]q�i_qcLsjL[!g �Lq 'f n 1 i I
_kly Ste a e W s oflon carried 5-0.
Public Cornrnen!§ Lc9nUnued),
a, 75-e7tT,;T)-rnjg�as .... a-ske"—d -F the board could send an emaii to ernpioyeesto nzarylind
thern abOLA the qUafterly board rneefing being held,
b. Gee Cowan said she coWd send an email out before ea&� meefing to the
rnernbers,
5. Consent Aq!Lijat
a. Warrants,958, #59 and*60 for ratification.
b QUarterly fund activity report for April 26, 20,19 to JWy 31, 2019.
The board voted t2o_MLwEove the consent Antla!& I j �j_ L%sEnLqj( n tion Jeari
RL _ M2.
Grafton and seco I b Patricia Gleasorl motion carried 6-0.
6, New Business
a. Ordinance N.Wiew
i. Pedro Herrera cornmented tie would be reviewirig the current ordinance
and WOUld be adding sorne proposed iafIgUage for (:,leanup. Pedro
reviewed some of the changes needed and WOUld present to board at the
next quarterly r-neeting for approval,
b. Benefit processing forryis
L Gee Cowan reviewed Mth tte board as discussion was needed Orl the:
termination process andthe docurnents currently being used, Gee
Cowan further stated she WOLdd like Kirn KHgore to be present at the
meeting with City personnet which wokAd 41CUr a charge.
ii. By consensus the board approved the charge by Foster & Foster to
attendthe nieetkig with the Uty.
7. Old Business -- None.
a. AridCo (..onsulfing, l rive stirnerrt ConstAtant,Tyier GrUmbles
i. Ouartedy Report aS Of JUne 30, 2019
1. TyierGrurnbles irlb-OdUced himself and comrnented'flrn Nash was
recoupk,ng and shouid be back soon.
2. Tyler GrUrnbka reviewed the market enviroriment cornmenfing
this past quarter the short-term bonds pe i-fo rrna rice was very good
and long-term bonds perforrnance was not so good,
3. Tyier Grun,Ves stated the asset aliocafions were in Une with the
plan's investment policy,
4Tyter GrumWes stated reafive perforrnance was affecting the
returns,
5. The total rnarket value as Of Affle 30, 2019 was $41,239,303, wM'I
a totai gain around $1 .4 rrifflion frorn March 31, 2019,
6, The totaE fund gross returns for the quatter w;ere 3.841%.). Trailing
retUrns for FYTD, 1, 3, and 5--year periods were 2,74%, T02%,
9.541%, and 7.071Vo respectiveiy. Since inception (4/1/04.), gross
retUrns were 7.03%.
7. Tyler Grumbies, cornmented the fundwas ➢agging for the flsca�
year rekffrl tmt were sfiH very good numbers.
Sugarman & SUSskind, Board Attorney, Pedro Herrera
l. L.egal/Legisiative Update
1. Pedro Herrera stated there was no legai update at this time' for
generai employee pan,
2, Pedro Fienrera revievved the new cancer far eSUrnpfion iaw for,
firefighters as it pertained to inhne of duty disaNfity.
1 Pedro Herrera reviewed with the board the new Arnerican Disabiiity
Act comphance iaw for public agencies,
4. Pedro Herrera reviewed Mth the trustees their financial disciosures
which needed to be ffied by kdy 'Is'. Kirn Mgore stated 0 tr'Ustee!s
have ffled,
c. Davidson, Jarnieson & Crisfirm, Board AUditor, Jeanine Biffinger/Richard Cris fini
i. Flinan6al Statements for Septernber 30, 2018 and 2017
1 ,
Rnchard Crisfini commented contribUflOrIS were down and
invest"nent 4icreased frorn the previOUS year bringing t0tai assets
to $40,801,592. Richard further stated the fur's investrnents did
very good overaH.
2.
Richard Cristini commented there was PLOP disbursement of
$40,140 and no disbursement frorn DROP,
1
Richard CrHsfirri reviewed the investrnent arid adrnunistrafive
expenses, noting both expenses went down frorn iast year-,
4.
Richard Crisfini revievved the net pension Habikty of the City stating
fl"�e pian was overfunded which was outstanding,
5.
Rict,-mrd Crisfini reviewed the sensitivity of the net pension Nabie to
changes in the discount rate with a 'I % decrease and 1% increase
froni OUr CUrrent do-scount rate of T75%
6.
Richard Crisfini reviewed the schedUle of invc--astrnent returns after,
expenses, stating the fUnd had very strong numbers over firne.
7.
Rchard Crisfini requested on the ILIMP SUrn distribution forrns to be
cear on wht ,it kind Of kffTip SLHTW w,'vs, b(-,,Og distribUted,
The board L3 _ted bqr 30, magi Lt r . L( t as .L'gs %.Eft&qyr )n tU ppL�) ig.§L42ILm . LqIL _1_ U & �!L
Stefanie Wilson and second .j)y_ftob(LrtL rice r bnocarried 5-�0.
jr
Discussion of rnerger
1. Jeanine Bittinger advised the board tt,ueir firma had merged with
Saltmarsh, Cieaveiand & Gund. Jeanine reviewed the new firm has
been in business for 75 years with over 150 ernpioyees.
2. Jeanine Bitfinger advised the board they needed to approve the
revised agreernerit with the new firrn naffie. Jeanine stated no
changes were Made to their current agreem(,a,nt terrns, onr y the new
firm name was added.
The board_.Mp L2.y,q,dthe Saltrnarca, land & and auditor contractas serlted,
ea 0 Jn Graftorll,M21i il, carr.
ied 6-0.
y
9. Staff 1:Lq[ _g�m -i
Re IgUgal F1 andActiot
a. Foster & Foster, Kdm KHgore, Plan Administrator
L Kira KHgore stated the required calculations have been posted to the Cty's
webs�tag as reqe,jired by SB,1534.
ii. Km KHgore reviewed the UPC-Or'ning FPP'TA Fa. TfUstee Scho6 in October
69, 2019 in Ponle Vedr2, F`Iodda
'10, Trustees' Re USS1011 d Action-- None,
a. Gee Cowan stated the City tiad ➢ocated rnore refirement ffies and wanted
approval to release to ➢'.'.'oster & fosteradrnhstrafion.
The boardii .pjLrgyL)�) thy. ,iell ase of Vie Cil 's refiremocFos ent duments to ter & Foster
y
Inoti
L:'�Laftq. q�,-st.ESILI )y Patricia Gleason.,
motion carried 5-0.
I 1. Ad rnryient rneeflng adjourned t 1 a2:12 p'rn
iau ..I.M.-
12. Next Meeth -- Wednesday, Noven ber 6, 2019 @ 10:00 am, quadd dy rreefing,
R: �� .'C;tfuHY St. 'niitted by-,
Name: K i rn 1,�i ��c, 2L2
TMe: FlVan Adrninistrafor
Approved by-,
Warne: , Mall
Titie: U'4r