11-06-2019 MinutesCITY OF OCOEE
4,11 ftaqw= 1'' TRUST FUND
BOARD OF TRUSTEES
QUARTERLY MEETING MINUTES
City Hall, Commission Chambers
02�ll MERM112NIZINME1111 =I
TRUSTEES PRESENT: Gequita Cowan, Chair
Robert Briggs, Vice Chair
Stefanie Wilson, Secretary
Patricia Gleason
Jean Grafton
TRUSTEES ABSENT: None
OTHERS PRESENT: Tim Nash, AndCo Consulting
David Robinson, Sugarman & Susskind
Doug Lozen, Foster & Foster
Kim Kilgore, Foster & Foster
5. � amv
Conse
92t-�
a, Warrants #61, #62, #63, #64 and #65 for ratification.
b. Quarterly fund activity report for August 1, 2019 to October 30, 20%
as and second b ean Graftow motion carried 5-0.
6, New Business
a. 2020 Proposed Meeting Dates
i. By consenSLIS the board approvied the 2020 proposed meeting dates as
presented.
b. Renewal of the FPPTA board rnembership
Servicesc. Travel Policy update
i. Gequita Cowan presented the City's travel policy as it pertained to the per
them paid in accordance with U.S. General
(GSA) schedule and suggested
mealsfiBy consensus the board approved to update the board's travel policy to
using the per them payment for
0. Reports ttorne /COnsultarnts
a. Foster & Foster, Actuary, Doug Lozen
i. Experience Steady as of November 4, 2019
1,
Doug Lozen explained the importance of doing are experience study
was to have assumptions which were close to reality without putting
to much pressure on the sponsor.
2.
l on,rg Lozen commented an experience steady should be performed
every 5 to 7 years.
I
Doug Lozen reviewed the actual ten-year average payroll growth
which had been decreasing since 2010. Doug recommended
stopping the payroll growth and putting the miorney into Paying down
the Unfunded ctnaariai Accrued Liability (U L), which would be
around $14,000 savings per year for the City.
4.
Doug Lozen reviewed actual salary increases, which had been
averaging 3.50% over the last 10 years. Doug recommended to
scab back on the future salary increases for the over 5-year service
employee, which would give the City a sayings of around $64,000
per year.
Doug Lozen reviewed the assumed rate of investment return
currently at 7,7 %. Doug Lozen commented the average ester
Foster client assumed rate of return was minder 7.4%. Doug Lozen
stated by lowering the rate to 7.5%, it would increase the City's
contribution to around 2% of payroll and wwouid drop the funding
ratio to around 93.4%.
6,
long Lozen reviewed the actual wvithdra raVterminatiorn rate with a
recommendation of increasing the less than 0 years of service
employee and 1 °1-20 years of service errnployee and decreasing the
21 pleas years of service employee. Doug commented this change
would lower the Cit 's contribution by .42% or around $38,000 per
year.
7. Doug Lozen reviewed the actual retirement rates and
recommended no change to the early retirement assumption, but to
change the assumptions for the normal retirement age between 00
and 70, giving a cost savings of around $161,000.
& Doug Lozen reviewed the SUrnmary of results and recommended
the board choose option B with a 7.4% assumed investment rate of
return, which would beep the City funding requirement around %
and a 96% funding ratio,
Robert
n. ... �.
9. Doug Lozen stated he would be presenting the 2019 valuation
the next meeting with the above -referenced changes. i
Doug Lozen Jeff at '10:59 a. m,
a. AndCo CO1SLflfing, 6nvestment Consultant, Dave West
The boar ct a value
motion carried 5-0.
Proposed ordinance
1 . David Robinson reviewed the Ordinance cBarffication on Section 8,
Vesting, to credited service of when a terminated member was not
vested and not rehired within five years the credited service would
be is even if contributions were not refunded.
2, David Robinson reviewed the addition to the DROP provision of
when a member j6ned DROP that no changes couGd be made to
such member's form of benefit election.
I David Robinson reviewed the change from quarterly to morltMy
crediting of interest on a member's DROP account vaiue.
The boar enteg, up
Gleason Robed BrI s o osed
'11, Trustees' R.. oorts- Discussion and Action — None.
12,ALd �urnment— The rneeting adjourned at '12-08 p°m.
13, Next MeetInSI — Wednesday, February 5, 2020 @ 10:00 a.m., quartedy meeting.
Respe WlIuHys bniitft�ed by: Approved by:
Name- Kim KH ore a aGe uita Cowan
Tifie, Plan Administrator -ri Chair