02-03-2021 MinutesTHE CITY OF OCOEE POLICE OFFICERS'/FIREFIGHTERS'
RETIREMENT FUND BOARD MEETING — February 3, 2021
Chairman Brown called the meeting of the City of Ocoee Police Officers'/Firefighters' Retirement Trust
Fund to order at 1:12 p.m. in the Commission Chambers of City Hall.
Trustees Present: Chairman Charles Brown, Bryan Pace, Joe Moy, Trey Littlefield and William
Maxwell
Others present:
Fund Consultant Tim Nash of AndCo Consulting, Board Attorney Pedro Herrera of Sugarman and
Susskind, Fund Actuary Doug Lozen of Foster & Foster and Fund Administrator Pete Prior and Livia
Giuliani of Benefits USA, Inc.
Call to Order:
Roll call and determination of quorum
The roll was called and a quorum declared present.
Approval of Minutes from Regular Meeting dated December 16, 2020
Chairman Brown asked the board if there were any corrections, deletions, or additions to the minutes.
Hearing and seeing none Trustee Moy moved to approve the minutes and Trustee Pace seconded the
motion and the motion passed.
Public Comments:
Rhonda Titus beneficiary of deceased retiree Terry Titus
At the time that Mr. Titus retired, he elected the Retiree's Lifetime with 100% continued to Jackie Titus
as his Joint Annuitant and was receiving $2.214.58. Jackie predeceased Mr. Titus and he remarried
Rhonda in April of 2018. He changed his beneficiary form in November 2018 and passed away
September 25, 2020. The Attorney stated that the Trustees believe that it was his intention to leave the
benefit to his current wife Rhonda and would agree that the benefit should be recalculated. The Actuary
stated that the benefit will a lower benefit because it was based on the life of the member. That being
said, Trustee Moy moved to authorize the Actuary to recalculate the retro benefit effective October 1,
2018 with Rhonda Titus as a Joint Annuitant and Trustee Maxwell seconded the motion and it passed.
Quarterly Investments Update: Q/E 12/31/2020
Mr. Nash addressed the board regarding a letter at the beginning of the report from the CEO of the firm,
Mike Welker. Mr. Welker first expressed thanks to the clients for giving AndCo the opportunity to serve
them. Mr. Nash reported that as they begin 2021, they are now 91 people strong advising approximately
$100 billion in client assets and added 2 new partners to the firm making the partnership 11.
Mr. Nash provided a brief report on the economy noting that the investment market index was strong with
the exception of US Government bond index. The Russell 2000 returned 31.4% vs. the S&P 500 Index of
12.1 %. US equity markets ended 2020 with positive returns despite the pandemic and the slow rollout of
the vaccine. For the full year, domestic equities posted strong returns with large cap returning 18.4%, mid
cap returned 17,1% and small cap returned and 20.0% respectively. Emerging Markets outperformed
developed markets 19.7% vs. 16.0% for the quarter and for the 1-year period 7.8% vs. 18.3%
respectively. Fixed income returns for the quarter were different as the Corporate Bond index returned
3% vs. the Government Bond index of -0.8%. TIPS continued to outperform bonds returning 1.6% for the
quarter. TIPS and Corporate bonds posted returns of 11.0% and 9.9% for the 1-year period respectively.
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Mr. Nash reported that the Market Value at 10/1/2020 was $63,406,942; the Contributions totaled
$774,615; the distributions totaled-$478,474; the management fees and other expenses-$44,400 and
-$38,134 respectively; the income totaled $313,152; the appreciation/depreciation totaled $5,538,128 and
the ending Market Value at 12/31/2020 was $69,471,829.
Mr. Nash reported on the returns noting that the total fund return was 9.15% for the quarter vs. the Total
Fund Policy 9.57%. Total equity 15.58% vs. the equity policy of 15.28%. The domestic equity returned
14.55% vs. the IM U.S. Core Equity (SA+CF) Median of 14.68%. Brandywine and DePrince returned
16.06% and 24.03% respectively vs. the Russell 1000 Value index of 16.25%.
Alger and MarVista returned 9.60% and 10.44% respectively vs. the Russell 1000 Growth Index of
11.39%. Vanguard returned 14.69% vs. the CRSP Index of 14.70%. American Funds Europacific
Growth returned 19.95% vs. the MSCI AC World ex USA of 17.08%. The fixed income returned 1.11%
vs. the fixed income policy of 0.67%. Garcia Hamilton returned 0.70% vs. the Barclays Agg of 0.67%.
PIMCO Diversified Income Fund and the PIMCO Global Bond Fund returned 4.50% and 2.48%
respectively vs. the IM Global Fixed Income Index of 3.63%. American Realty returned 1.42% for the
quarter vs. the NCREIF index of 1.35%.
UNFINISHED BUSINESS:
There was no Unfinished Business discussed.
NEW BUSINESS:
Presentation of 10/1/2020 Actuarial Valuation
Mr. Lozen reviewed the valuation with the board noting the required contribution from the combination
of City and State sources for the year ending September 30, 2022, is 23.33% of the actual payroll. Mr.
Lozen noted that the City has a prepaid contribution of $1,009,798.91 to offset a portion of the stated
requirements for the fiscal year ending September 30, 2021.
Mr. Lozen noted that for the Police Plan, under the default position, the first $223,377.02 received from
the State will offset the City's contribution requirement. Future State Monies received for the Police
Officers in excess of $223,377.02 will be split 50/50, to be allocated to the newly established Share Plan,
and as a credit to the City's annual contribution requirements. For the Firefighters, per Mutual Consent
between the City and Firefighter Members, the first $171,631.09 received annually will offset the City's
contribution requirement. Since the Mutual Consent Agreement did not specify the baseline for
determination of excess monies, all future State monies received for the Firefighters portion of the Plan in
excess of $171,631.09 will be allocated as a credit against the Unfunded Liability. If no Unfunded
Liability exists, then Firefighter State Monies in excess will offset the City's annual funding obligation.
Mr. Lozen reported that the Plan experience was favorable and based on the plan's actuarial assumptions.
The gain was attributed to favorable turnover. There were no changes in benefits since the last valuation.
The following assumption changes were made; payroll growth assumption was lowered to 0.0% for
purposes of amortizing the UAAL; resulting in more money going toward the Unfunded Liability; the
mandated mortality tables were changed to the tables used by FRS effective 7/1/19; the investment
assumption rate was decreased from 7.80% to 7.25% and the rates for Early and Normal Retirements and
the disability rates were updated.
Mr. Lozen reported on the participant data noting that the total membership was 258 with 144 actives, 57
service retirees. 4 beneficiaries, 7 DROP retirees, 7 disabilities and 39 vested terminated employees. That
being said, Chairman Brown entertained a motion to approve the actuary's report. Trustee Pace moved to
approve the 10/1/2019 valuation as presented and Trustee Maxwell seconded the motion and the motion
passed.
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Mr. Lozen reported on 3 recommendations noting that they are reaching out to most of their clients to go
to the fresh start of asset smoothing method to the straight line smoothing. This means that for the next
valuation they will reset the Actuarial Value Assets in increments of 25% each year until it is at 100%.
The next recommendation was to consolidate the Unfunded Liability and compress into one payment and
finally make one more reduction to the investment return assumption from 7.25% to 7.00% and will keep
the City at 15%-20% of payroll and will be at average for the State. That being said, Trustee Littlefield
and seconded by Trustee Pace and the motion passed.
Detail of Administrative Expenses:
The Administrator reported that the actual expenses for fiscal year 9/30/19 were $146,579 and the Fund
did not go over the approved budget of $214,762. No action was needed on this item as it was just for
informational purposes.
2021 Meeting Dates:
The Administrator reported on the meeting dates for 2021 noting that they are scheduled with the
Attorney's office as follows: May 5, August 4, and November 3, 2021 all beginning at 1:00 PM. Trustee
Maxwell moved to approve the meeting dates and Trustee Moy seconded the motion and it passed.
Fiduciary Liability Renewal application:
The Administrator noted that the Chairman has to sign the application to obtain a quote. Trustee Moy
moved authorize the Chairman to sign the application and Trustee Pace seconded the motion and the
motion passed.
Consent Agenda: For Ratification: Warrants #201 & 202
AndCo (Q4-2020 Consulting Fee -Invoice #37089 dated 12/31/2020)
$6,250.00
Benefits USA, Inc. (Flat Monthly Fee for January 2021)
$2,100.00
DRZ (Q4-2020 Mgmt Fee -Invoice #202004022 dated 1/8/2021)
$6,563.00
Garcia Hamilton (Q4-2020 Mgmt Fee -Invoice 433309 dated 1/8/2020)
$11,115.56
Sugarman & Susskind (Legal Fees -Invoice #154881 dated 1/11/2021)
$1955.00
Total
$27,983.56
Brandywine (Q4-2020 Mgmt. Fee -Invoice #23262 dated 01/21/2021)
$5,866.13
Fiduciary Trust (Q4-2020 Custodian Fee-GHA; Invoice dated 01/19/2021)
$2,212.02
Fiduciary Trust (Q4-2020 Custodian Fee -Mar Vista Invoice dated 01/192021)
$753.23
Fiduciary Trust (Q4-2020 Custodian Fee -R&D Invoice dated 01/19/2021)
$3,529.60
Foster & Foster (Services Rendered; Invoice #18894 dated 1/20/2021)
$1,383.00
Total
$13,743.98
Pension Payments for Ratification:
Charles Brown (Monthly Benefit Payment Effective 2/l/2021)
$7,782.37
Rhonda Titus (Beneficiary Payments Retro from 10/1/2020-2/l/21@$1,725.15)
$8,625.75
Antonio Grimaldi (Refund of Contributions/Rollover)
$8,158.58
Brandon Kerr (Refund of Contributions/Rollover)
$29,096.42
Jared Ping (Refund of Contributions -Cash out)
$3,061.33
Trustee Pace moved to approve the Consent Agenda and Trustee Moy seconded
the motion and the
motion passed.
Attorney's Report:
Mr. Herrera reported on the E-Verify bill that was effective 1/l/2021. This bill requires that all public
Employers including Pension Funds enroll in this system to confirm that all new hires are eligible to work
in the US.
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Mr. Herrera also reported that the State School was canceled until next year.
Administrator's Report:
The Administrators had nothing further to report.
Miscellaneous Correspondence:
No action was needed.
Comments from Trustees:
The Trustees had nothing further to report.
Next Regular Meeting date: May 5, 2021 at 1:00 pm.
Adjournment: The meeting adjourned at 2:45 pm.
Respectfully submittec�by,
Chairman
Contact the City Cler is Office to listen to an electronic copy of the complete minutes.
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