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09-26-1995 Minutes THE CITY OF OCOEE POLICE OFFICERS' /FIREFIGHTERS' ,, RETIREMENT TRUST FUND (PENSION BOARD MEETING) - September 26, 1995 Chairman Reed called the Police Officers' /Firefighters' Pension Board to order at 12:36 p.m. in the Commission Chamber Conference Room of City Hall, and a quorum was declared present. PRESENT: Chairman Reed, Members Wilson, and Williams. Also present were Attorney Dehner and Clerk/Stenographer Lewis. ABSENT: Members Gledich and Strosnider. APPROVAL OF MINUTES Chairman Reed said that a correction should be made to page 12 to read "Actuary Garrett ... " instead of "Attorney Garrett ..." Member Williams, seconded by Member Wilson, moved to approve the Minutes of the August 9, 1995 Police Officers /Firefighters' Retirement Trust Fund meeting as corrected. Motion carried 3 -0. QUESTIONS /COMMENTS FROM AUDIENCE None COUNT ELECTION BALLOTS AND CERTIFY ELECTION . Chairman Reed announced that Mike Reed and Ron Strosnider had run for the Firefighters' seat on the Board. Clerk Stenographer Lewis presented the ballot box and the signature sheet to Attorney Dehner who explained that a ballot with no mark or a ballot with more than one mark would void a ballot. He read each ballot and then counted the signatures. He said that pursuant to the ballot process, the Attorney was in charge of the Canvassing Board, and said that totals for the Chairman were 14 votes for Reed and 12 votes for Strosnider. Chairman Reed had presented a ballot process sheet so that each Member could also tally the votes, and announced that the winner, Mike Reed, had 14 votes and Ron Strosnider had 12 votes for the Firefighters' seat on the Police Officers' /Firefighters' Pension Board. Member Wilson, seconded by Member Williams, moved to certify the election results (as stated on the tally sheets) by all present that Mike Reed was the winner with a 14 -12 vote for the City of Ocoee Police Officers' /Firefighters Pension Fund. Motion carried 3 -0. As they were public records, Attorney Dehner turned over the ballots and signature sheets to Clerk Stenographer Lewis with instructions to place and seal them in an envelop. He said that the Plan members should be notified of the results. Chairman Reed explained that irregularities of the September 13, 14, and 15, 1995 election, were as follows: 1) No sign in sheet had been available on September 13, 1995 but one had been included at 9:00 a.m. on September *gime 2) On September 14, 1995, Personnel Director Psaledakis notified Chairman Reed Police Officers' /Firefighters' Retirement Trust Fund September 26, 1995 that there was an irregularity that may have happened with the election process; first being that, a) there was no sign up sheet on the first day and was placed near the ballot box at 9:00 a.m. on the second day; and b) that she had been informed by a City personnel that they had seen a person(s) who were not members of the Plan or employees of the City actually deposit a ballot into the election ballot box. The election had been cancelled. 3) The election had been halted and re- scheduled for September 21, 22, and 23, 1995, and the preceding process with only those ballots being counted during this meeting were all that were cast in the second election. All ballots of both elections are retained for public record. Member Williams, seconded by Member Wilson, moved to declare the first attempt at an election to be void, based on the information that has been provided, and that those ballots remain sealed. Motion carried 3 -0. Member Williams, seconded by Member Wilson, moved that Ron Strosnider be appointed the Fifth Trustee to the City of Ocoee Police Officers /Firefighters' Pension Board. Motion carried 3 -0. In response to Chairman Reed, Attorney Dehner said that Mr. Reed should notify the City Clerk and ask that the name be placed on the City Commission agenda for confirmation as an administerial duty. DISCUSSION /REVIEW OF OPERATING RULES AND PROCEDURES Attorney Dehner explained that Operating Rules and Procedures had been discussed during the August meeting, and said that it had been completely amended, pursuant to the direction of the Board based upon discussion the Board had identified again during this meeting. He said that if adopted by the Board, that it would completely replace the one adopted last November. Attorney Dehner said that the additions were important as discussed in light of the recent moves by the Division of Retirement in Tallahassee involving two different issues, one for Firefighters and the other for Police Officers, covered on pages 20 - 29 of the document. A new interpretation under Chapter 185, with respect to Police Officers, provides that a person who separates from service with the City as a Police Officer, goes into the military and comes back, will be given the time spent in the military as credited service in the Plan. The Board decided to take out the "buy back" provision from the ordinance because the Division is now under the new policy. The Board placed it in the Rules and it had been provided here to cover the Plan and to track the minimum requirements of the Federal Uniform Services Employment and Re- employment Rights Act. With this in the Rules, should the Division end up not strongly enforcing their position in terms of a loophole to save money or should they change their position when the Plan runs into a situation with a returning veteran then the Board has documentation to go ahead and charge the contributions. The same provision is in the Rules for 2 Police Officers' /Firefighters' Retirement Trust Fund , <. < >; fir. September 26, 1995 Police Officers that they have in the ordinance for Firefighters, in the amended ordinance. Attorney Dehner said that the Division had rendered a new interpretation of "buy back," page 29, 20.1, on the Firefighters, which was not in Chapter 185 and did not apply to Police Officers, was credited service that allows a Firefighter to separate from service, take his money out, and then if he is re- employed, would allow him within 90 days of putting back his contributions with interest, a buy back opportunity for all of that prior time he took his money out for it. Mr. Dehner said that in Rule 20.1 the Plan was providing, for purposes of the "buy back" provision, that the interest will be defined as the extent permitted by law. If the Division backs off this position and doesn't enforce it too quickly, they withhold State money, that the definition of interest for that purpose was being the greater of the actuarial assumed rate, the actual investment return, or the actuarilly calculated rate which is the rate that would result in no cost to the Fund. Attorney Dehner said that in conjunction with those changes, those two sections were added to our excerpted provisions of the Rules. He said that if the Board is prepared to act on this, then the appropriate action would be two motions, one to adopt the Operating Rules and Procedures, and note in the motion that they completely replace the ones adopted November, 1994; and the second motion to adopt the Selected Provision and that these replace the prior Provisions. Chairman Reed proposed a change on page 3 of the Operating Rules and Procedures, "C. Fifth Trustee. The fifth Trustee of the Board shall be chosen for a two (2) year term every other year at on or before the first meeting in October ... " Discussion ensued about the time the fifth trustee takes office should there be no October meeting. Member Williams, seconded by Member Wilson, moved that the fifth shall be chosen at the meeting at which the ballots are certified or the next meeting immediately following the certification. Motion carried 3 -0. Chairman Reed said that that change would affect Section C., page three (3) about the fifth trustee, as amended. Attorney Dehner said that if these Rules are going to be adopted today, in addition to that motion that there would have to be "as amended". That would also require the same amendment to the Selected Provisions. Discussion ensued about the election procedure and the Board decided on no change to the process at this time. Also, after discussion and review of the Operating Rules and Procedures, Member Wilson, seconded by Member Williams, moved to accept the Operating Rules and Procedures that will replace in its entirety the Rules and Procedures of November, 1994 with the amendment to the present Operating Rules and Procedures. Motion carried 3 -0. Member Wilson, seconded by Member Williams, moved to accept the Selected Provisions that will replace the Selected Provisions of November, 1994, as amended. Motion carried 3 -0. `''�` 3 Police Officers' /Firefighters' Retirement Trust Fund September 26, 1995 ORDINANCE NO. 95 - AMENDING ORDINANCE NO. 91 -09 Clerk Stenographer Lewis said that the Notice had included agenda item VI. Ordinance No. 95 - Amending Ordinance No. 94 -06, and said that she believed it had been in error. Attorney Dehner said that the minutes should reflect "... Amending Ordinance No. 91-09." Attorney Dehner said that, for Firefighters, they had included the provisions in the Federal Law, Uniform Services Act in the ordinance. He said that Tallahassee would not allow the Plan to do it that way for Police Officers so there was a Police Officers provision in the Rules. It was not for clarity in this case, that it was due to the Federal Law that had changed in December, 1994. Attorney Dehner explained the changes, page by page, as follows: Page 1) Accumulated Contributions - A "buy back" opportunity had been provided here at no cost to the system. Also, an accumulated contributions had been provided, and if someone exercised that "buy back" opportunity where they put in their contributions that they would have made as military or non - military prior service, and they also put additional monies that is calculated by the actuary so that it is no cost to the system, should that person terminate at some later date, all they get back is their contribution part. They will not get those extra monies they put in. Nu' Page 2) Credited Service - The deletion of the requirement that if somebody leaves, leaves their money in the fund, and are re- employed within five (5) years, they have to stay three (3) years to bridge the gap. The Plan was required to do that for Police Officers but were not required for Firefighters but the Board had decided in that area to do the same thing for Fire and Police. The 90 day "buy back" for Firefighters is at the end of the first paragraph of Credit Service, and also, the military for Police Provisions will credit Police for all purposes including investing, pursuant to conditions that are a stray as required or permitted under State and Federal Law, as amended from time to time. Page 3) Underscored the language of the military "buy back" for Firefighters. Page 5) Underscored scriveners items for clarity. One exception was the addition to the salary definition to take advantage of the grandfather opportunity on the $150,000 compensation limit. Under the Reconciliation Act of 1993, the Federal Government imposed the cap of $150,000 into the formula for benefit purposes. They grandfather in anyone that is in the Plan now, that will be in the Plan prior to beginning of the '96 Plan year the limit that was in effect by August 1, 1993. '1r.r 4 Police Officers' /Firefighters' Retirement Trust Fund *Lr,. September 26, 1995 Page 6) Scriveners errors. Page 7) Scriveners errors. Page 8) The new In -line of Duty Presumption that had passed during the last Legislative Session adding hepatitis A, hepatitis B, hepatitis non -A, hepatitis non -B, hepatitis C, other generally recognized strains of hepatitis, meningococcal meningitis, or tuberculosis. That is presumption of in -line of Duty that is set forth on those pages 8 -13. Attorney Dehner said that if someone files, after January 1, 1996 a disability based upon one of these conditions, that these were the conditions. He said that he had forwarded a copy of the Statute of House Bill 167 and recommended that Chairman Reed notify all of the Plan members of the ordinance and the conditions they would have to meet if they wanted to be able to claim the benefit of this presumption. Attorney Dehner said that the other presumption for heart disease, hypertension, and before this one, tuberculosis, that the requirement was a physical at the time of employment that would have included an EKG. He said that it did not matter that an employee have a test for these things upon employment, what was important here was that before the time that an employee tested positive for one of these, that he had previously tested negative before January 1, 1996. He said that the Board needed to look at whether they had a test prior to that date that showed that they were negative, and if they did then they would have met that requirement. If they didn't, they can't get the benefit of the presumption, and the City is not required under the Statute to provide that testing, and that was where a member needed to know that he, and not the City, must pay to have that negative base line established. Mr. Dehner also emphasized the importances of the following: A) The Plan Members should bring any questions regarding this issue to a Board meeting. Chairman Reed said a meeting with Members had been scheduled November 29, 1995. B) Filing a written report of contact or suspected contact was a requirement to the negative base line being established prior to diagnosis. C) If the City offers immunization for any of those conditions, a Member must avail themselves of the immunization or they can not claim the presumption (unless their doctor writes a report stating they shouldn't have it and that it would endanger their health to have it). D) If a Plan Member has a second employment rendering services (emergency services), firefighters, or police officers, they cannot get the benefit of the presumption. 5 Police Officers' /Firefighters' Retirement Trust Fund *tow September 26, 1995 Page 17) Language added under Optional Forms of Benefits, the Joint Survivor option, 75 % was added to the existing 100 %, 66 -2/3 %, or 50 %. The new Internal Revenue Code language requires that it be there but it did not have any subsidy effect. Page 18 -21) Claims Procedures are being taken out of the ordinance and will be placed in the Operating Rules and Procedures. The procedures may change, by action of the Board, without the need to pass a new ordinance. Page 21) Scriveners errors. Also, changes that are reflected in the Reports to the Department of Insurance and the Division of Retirement and Municipality had been changed to "City ". Page 23 -27) Scriveners errors. Page 27) Section 12 includes a change in the Internal Revenue Code. It is unlikely to affect anyone in the Plan. `..- Page 28) Liquidation of Pension Fund Assets had been stricken from Section 18 and had been combined in Section 14. Page 32) The "buy back" provision had been added for prior service of the Police Officer or the Firefighter with the City of Ocoee. He said that when the Board had discussed the 90 day "buy back" for firefighters, they had wanted to also allow a period for the 90 days for the Police and Fire, and this was up to 12 months. They can notify the Board from the effective date of the ordinance for six months from the date of employment or re- employment that they want to buy back time, and then an employee can go ahead and do it on the "no costs to the Fund" basis. The Board was going to allow a person to buy up to one (1) year. The Board can set the parameters to what they would like it to be as it was not mandated. The way it is formed on page 32 was at no cost to the Fund, with the exception of the Firefighters that have 90 days to do a contributions with interest. Even that would be at no costs to the Fund under the Rule as the ordinance permitted that. The time frame was 12 months from the effective date or six (6) months from re- employment or employment. Employees are provided six (6) months to notify the Board and then given six (6) months to come up with the money. Member Williams, seconded by Member Wilson, moved that Ordinance No. 95- , amending Ordinance No. 91- 09, be accepted as presented. Motion carried 3 -0. '' 6 Police Officers' /Firefighters' Retirement Trust Fund September 26, 1995 Chairman Reed directed Attorney Dehner to move forward to the City with the ordinance as approved. Attorney Dehner said they will send a copy to Foster & Foster, Inc. so that a letter of "no impact" could be sent to Tallahassee, and then send a copy to the City. He noted for the Board that the General Board, by Statute did not have the same investment restrictions as the Police/ Fire Board. The General Board had taken action at their last meeting to broaden their ordinance to allow them to consider a broader scope of the investment opportunities such as foreign investment. OTHER BUSINESS BENEFIT IMPROVEMENTS IN THE PLAN Attorney Dehner suggested that the Board wait until the November meeting to discuss possible benefit improvements in the Plan. The Board had decided to base any further action on the October 1, 1995 valuation report for several reasons: 1) The information would be more accurate and current. 2) The actuarial impact statement filed with the State on the valuation report must not be more than 12 months old. Attorney Dehner said that based upon the above information that he had not felt it prudent for a representative from Foster & Foster, Inc., to attend this meeting. Clerk Stenographer Lewis '411610, had informed the Board earlier, if needed during this meeting, that Actuary Garrett would be available via telephone conference. Attorney Dehner said that Actuary Garrett's study regarding the supplement had been done to cover $100 commencing with the early retirement if that is what someone chose. This was an issue to be decided by the Board. SCHEDULE DATES FOR 1996 Attorney Dehner said that the General Employees' Board had established dates and times during their last meeting. Discussion ensued about the dates and times, and general concensus was 1:00 p.m. for the following: February 13, 1996 May 14, 1996 August 13, 1996 November 12, 1996 Chairman Reed announced that the next Police /Fire meeting was scheduled for 1:00 p.m., and also a general member meeting at 5:30 p.m. on November 29, 1995. kb. 7 Police Officers' /Firefighters' Retirement Trust Fund 'tow September 26, 1995 ATTORNEY COMMENTS Attorney Dehner explained that he would leave the Monitor Services Contract and the Actuarial Services Contract for signatures by the Chairman and Secretary of the Board. They had been executed by Ward Foster on behalf of his firm. There was an original copy for each: Board file, the Attorney file, and Foster & Foster, Inc. file. In response to Member Williams, Chairman Reed gave a report on the request made by Billy Walker. Chairman Reed said that he would send for the per diem money for the St. Petersburg conference for Member Williams. He also explained that he had received a statement from Sun Capital, and expressed concern about the fee. In response to Attorney Dehner, Chairman Reed said that there had not been any additional charges on the statement for custody related items. ADJOURNMENT Member Williams seconded b Member Wilson moved to ad'ourn the meetin. at 2:35 • .m. Motion carried 3 -0. Respectfully submitted, Judie Lewis, Clerk/Stenographer a: \wp60 \wpdocs \PF0926.95 \j fl %ow 8