Loading...
10-03-2019 MinutesTHE CITY OF OCOEE POLICE OFFICERS'/FIREFIGHTERS' RETIREMENT FUND BOARD MEETING — October 3, 2019 Chairman Brown called the meeting of the City of Ocoee Police Officers'/Firefighters' Retirement Trust Fund to order at 2:00 p.m. in the Commission Chambers of City Hall. PRESENT: Chairman Charles Brown, William Maxwell, Joe Moy, Trey Littlefield and Bryan Pace ABSENT and EXCUSED: Others present: Police Member James Berish, and Fund Administrator Pete Prior, Attorney Herrera and Doug Lozen attended via teleconference. Call to Order: Roll call and determination of quorum The roll was called and a quorum declared present. Berish request to change benefit selection. Mr. Lozen addressed the board regarding Officer Berish's request to change his benefit option based on his letter dated 10/2/19, Mr. Lozen recommends that if either parties, the member or joint annuitant are not in good health, and to avoid an actuarial impact to the plan, he recommends that the original calculation remain unchanged at the $2,535.25. Mr. Lozen noted that this calculation is not going to have a material impact on the Plan, but the bigger issue is that going forward if other members approach the Board wanting to change their option after retirement. For example, if the retiree found out that the joint annuitant has a terminal illness and the annuitant dies first, the retiree remains at the lower benefit. Mr. Lozen noted that the Board will have to decide if Mr. Berish and the Joint annuitant are in good health and based on their decision, a new calculation would need to be prepared actuarially and the member would have to choose a different form of benefit. The Attorney commented on the issue and the allowance of the change of the benefit. He noted that the majority of the Plans don't allow it. There could be some issue regarding the health of the joint annuitant. He noted that there is nothing written that allows it and there is nothing that prevents it. Mr. Herrera noted that the state allows the changing of a joint annuitant two times and since the member did not take constructive receipt and there is no policy currently in place, this is a gray issue. The Board could allow Mr. Berish to change the option this one time and put a procedure in place not to allow future members to do this. A question was asked if there was a policy on this issue. The Attorney said that there was not a policy and the Board will have to adopt a policy which would state that when a member enters the DROP they will not be allowed to change their benefit option. The board could adopt the policy at today's meeting and the attorney will bring the policy to the next meeting. Trustee Maxwell moved to accept the request for Officer Berish to change the benefit option and Trustee Moy seconded the motion and the motion passed. Page 1 of 2 The Chairman asked Mr. Berish to come up and request exactly what he wanted. Officer Berish addressed the board noting that he would like the lifetime only option under the 10% PLOP option. Trustee Maxwell moved to accept the request change of benefit option to life only with a 10% PLOP Trustee Moy seconded the motion. The motion passed. Mr. Lozen said that the new calculation would have to be recalculated going back to 2017 with the new option of $2,773.07. Mr. Prior asked who would pay for the calculation? Trustee Littlefield noted that the policy is, that the Board will pay for the 2 calculations and any others will be at a cost to the member. Mr. Prior also asked what the cost of the DROP statement and Mr. Lozen said $60. Trustee Littlefield moved to have the member pay for the DROP statements and Trustee Moy seconded the motion and the motion passed. It was noted that the plan will pay for the recalculation. Trustee Moy moved that the Board approve an amendment to the operating rules and procedures of the Board that would be effective today, October 3, 2019 that a member in the future, will not be allowed to change the form of benefit after they entered the DROP. Trustee Littlefield seconded the motion and the motion passed. Mr. Prior reported on the pop up option noting that if the joint annuitant pre deceases the retiree, the benefit would pop up to the lifetime option. Mr. Prior asked the attorney to bring some language on the pop up to the next meeting. Mr. Herrera noted that he will bring this information to the meeting along with the amendment to the policy and procedures. COMMENTS FROM TRUSTEES: Next Regular Meeting date: November 6, 2019 at 1:00 pm. Adjournment: The meeting adjourned at 2:57 pm. Contact the City Clerk's Office to listen to an electronic copy of the complete minutes. Page 2 of 2