01-25-1999 Minutes THE CITY OF OCOEE POLICE OFFICERS' /FIREFIGHTERS'
RETIREMENT BOARD MEETING WITH MEMBERSHIP - January 25, 1999
Chairman REED called the meeting of the City of Ocoee Police Officers'/Firefighters'
Retirement Trust Fund to order at 6:06 p.m. in the Commission Chambers of City Hall. The roll
was called and a quorum declared present.
PRESENT: Chairman Reed, Secretary Strosnider, Members Gledich, Williams, and Wilson.
Also present were Actuary Foster, Attorney Dehner, and Recording Secretary
Lewis.
ABSENT: None
Chairman REED distributed a handout (See Attachment) about the Drop Plan, and explained to
the membership present that if approved, the Drop Plan would provide a retirement option by
which public employee retirement benefits are paid to their accounts while they are still
working. It provided a portion of the retirement benefits in a lump sum. Under most DROPs,
the employee continues to work for the plan sponsor (the City) but no longer made contributions
to the pension plan. The regular service retirement benefits are paid to a DROP account. The
payments from the DROP account may be commingled with the main pension fund, and
investment gains and losses are credited to the employee. When the employee retired, usually at
the end of three to five years, the amount in the DROP account was paid to the employee.
An example about how it related to an employee was provided by Secretary STROSNIDER,
and a lengthy discussion ensued. In response to Member WILSON, Actuary FOSTER said
that the Drop Plan would be at no costs to the Fund. Member GLEDICH said that it was an
individual choice to go into the Drop Plan, and that she did not see how the Board could not do
what was good for the members. Attorney DEHNER explained that it added more flexibility to
the Plan.
QUESTIONS /COMMENTS FROM AUDIENCE
A member expressing concern about accrued leave balances was informed that the design of the
Drop Plan would specify what happens to the balances before a person enters the Drop. The
terms and conditions of employment may provide for a cash payout of accrued leave balances for
calculating pensions. If that was the case, the employee will want to be paid for all those leave
balances upon entry into the Drop in order to increase the service retirement. This could leave
the employee with no accrued leave time. If after entering the Drop, an employee becomes ill,
they will have no sick time and might be carried on leave without pay.
Police Officers' /Firefighters' Retirement Trust Fund
January 25, 1999
Another member inquired about promotions which would have no effect on whether or not an
employee received a promotion while in the Drop Plan.
Secretary STROSNIDER, seconded by Member GLEDICH, moved to direct Attorney
DEHNER to prepare an ordinance for the City of Ocoee Police Officers' /Firefighters' Pension
Plan to participate in the Drop Plan/Deferred Option Retirement Plan. Motion carried 5 -0.
Attorney DEHNER said that he would prepare a draft so that the Board could zero in on areas
that had been discussed such as whether or not they wanted a credit plan on the earnings or credit
stated interests. The document would be in front of them. They could make those decisions and
go forward to the City with it.
ATTORNEY COMMENTS
Attorney DEHNER had no additional comments.
ADJOURNMENT
Chairman REED adjourned the meeting at 7:06 p.m.
Respectfully submitted,
Nair
1w tom
Jud ewes, Recording Secretary
a:\MSWord\PF012599.M\j1
N 1rre 2