11-04-2015 Minutes CITY OF OCOEE
MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND
BOARD OF TRUSTEES
QUARTERLY MEETING MINUTES
City Hall, Commission Chambers
Wednesday, November 4, 2015, at 10:OOAM
TRUSTEES PRESENT: Russ Wagner
Jean Grafton
David Wheeler
Patricia Gleason
Robert Godek
TRUSTEES ABSENT: None
OTHERS PRESENT: Ferrell Jenne, Foster & Foster
Tim Nash, The Bogdahn Group
Lee Dehner, Christiansen & Dehner
Jeanine Bittinger, Davidson, Jamieson, & Cristini
Richard Cristini, Davidson, Jamieson, & Cristini
1. Call to Order Russ Wagner called the meeting to order at 10:OOAM.
2. Roll CaII As reflected above.
3. Public Comments None.
4. Approval of Minutes
The minutes from the August 5, 2015, quarterly meeting were approved upon motion by
Jean Grafton and second by David Wheeler, motion carried 5-0.
5. Consent Agenda
a. The board reviewed and discussed the items on the consent agenda.
The consent agenda was approved as presented upon motion by Jean Grafton and second
by Robert Godek, motion carried 5 -0.
6. New Business
a. Quarterly Retiree Activity Report.
i. Russ Wagner briefly reviewed the retiree activity report with the board
and explained the PLOP and DROP plan provisions.
ii. Russ Wagner asked that all trustees be copied on retirement paperwork.
b. 2016 Meeting dates.
i. The board discussed the Christiansen & Dehner memo, dated October
1, 2015, which listed the proposed meeting dates for the upcoming year.
ii. The board discussed the upcoming FPPTA conference being held in
early 2016 and the possible conflict with the first quarter meeting date.
The board decided there would not be a conflict.
The 2016 meeting dates were approved as presented upon motion by Jean Grafton and
second by Patricia Gleason, motion carried 5 -0.
c. Russell Wagner's retirement.
i. Russell Wagner announced he would be retiring from the City at the end
of the year and would therefore no longer be on the board. Lee Dehner
reminded Russ to file his final financial disclosure form (1F) upon
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resignation. Russ Wagner will resign from the board on December 31,
2015.
ii. Lee Dehner stated the City will need to hold an election to replace
Russ's position. The City Clerk's office will handle this.
iii. Lee Dehner commented the election of offices could occur at this
meeting or the next. The board decided to hold the election of offices
after the new trustee is seated.
iv. The new trustee will serve the remainder of Russell Wagner's term which
will expire September 30, 2017.
7. Old Business- None.
8. Reports
a. Davidson, Jamieson, & Cristini, Richard Cristini & Jeanine Bittinger
i. Presentation of the September 30, 2014, audit report.
1. Richard Cristini reviewed the Statement of Fiduciary Net Position
for September 30, 2013 and 2014, with an explanation of
receivables, investments, and liabilities.
2. The net position available for pensions as of September 30,
2014 was $30,309,630.
3. Richard Cristini commented there were no buybacks in fiscal
year ending September 30, 2014 so contributions were less than
the prior year.
4. Jeanine Bittinger explained the DROP amounts shown represent
members who have exited the DROP and checks have been cut
for that amount.
5. Jeanine Bittinger briefly reviewed the administrative and
investment expenses, stating both went down from the previous
year.
6. Jeanine Bittinger reviewed the GASB 67 & 68 footnotes. Richard
Cristini explained that the GASB 67 statements were accounting
measures, not actuarial measures of the funded status of the
plan, and should not be used to develop City contribution rates.
7. Richard Cristini reviewed the actuarial assumptions used in the
report. Jeanine Bittinger advised that the investment rate of
return should be 7.75 %, not 7.25% as shown on page 25,
section 14, Net Pension Liability of the City. Jeanine stated this
figure was a mistake and will be corrected.
8. Funded ratio increased from 94.34% as of September 30, 2013
to 98.77% as of September 30, 2014.
9. Russ Wagner reminded the board that the audit was a year in
arrears and stated that the auditor would be reviewing Foster &
Foster's records next year since they are now the plan
administrator.
10. Jeanine Bittinger reviewed the new agreement noting that fees
would be slightly higher moving forward in anticipation of plan
growth. Lee Dehner stated he reviewed the contract and found it
to be acceptable.
The board voted to approve the Davidson, Jamieson, & Cristini contract as
presented upon motion by David Wheeler and second by Jean Grafton. motion
carried 5 -0.
b. The Bogdahn Group, Tim Nash, Investment Consultant.
i. Presentation of the September 30, 2015 quarterly report.
1. Tim Nash briefly reviewed the market environment during the
quarter, stating that although the plan fell short of the 7.75%
assumed rate of return, the fund performed well for the quarter
compared to its peers.
2. Net earnings for the quarter were - 5.00 %, underperforming the
policy benchmark of - 4.32 %. Fiscal year -to -date net earnings
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were 1.62 %, outperforming the benchmark of 0.03 %. Since
inception (04/01/04) net earnings were 5.99 %, underperforming
the policy benchmark of 6.14 %.
3. Market value of the fund at the end of the second quarter was
$33,040,291. At the end of the third quarter the market value
was $31,441,928. As of November 4, 2015, market value was
approximately $33.9M, an increase of approximately 5.2 %.
4. Russ Wagner commented he had never seen one of the plan's
investment managers being the worst in the peer group. Dodge
& Cox International Stock and Templeton Global Bond were in
the 100t percentile.
5. Tim Nash stated the rolling four year average earnings were
8.84% with gains yet to be realized.
6. Tim Nash commented he was still confident in DODFX and
FBNRX and recommended no changes at this time.
ii. Discussion of the Investment Policy Statement.
1. Tim Nash stated the new IPS had been executed and filed.
2. Tim discussed adding language which stated the board will not
invest in a single property or piece of land. Lee Dehner
commented that the bullets in the revised IPS would be
adequate.
c. Christiansen & Dehner, Lee Dehner, Attorney.
i. Legislative update.
1. Lee Dehner reviewed House Bill 1309 (previously Senate Bill
242) which requires all local law plans to use the FRS mortality
tables effective January 1, 2016. These new calculations will
need to be incorporated into the 2016 valuation report and will
most likely result in additional funding requirements since the
tables are more conservative.
ii. IRC Tax language.
1. Lee Dehner stated he was working on amending the Ordinance
to comply with new IRC tax language.
9. Staff Reports, Discussion, and Action
a. Educational opportunities.
i. Ferrell Jenne informed the board about the Division of Retirement
Conference being held November 17 -19, 2015, in Kissimmee, as well as
the FPPTA Trustee School being held January 31- February 3, 2016, in
Lake Buena Vista.
b. Update on the unreturned Confirmation of Receipt letter.
i. Ferrell Jenne updated the board that one retiree remains unresponsive
after several contact attempts. Lee Dehner stated an additional letter
should be sent stating benefits will stop if the PF -11 form is not returned
within thirty days.
c. New TPA phone line.
i. Ferrell Jenne informed the board that a dedicated plan administration
phone line had been created.
10. Trustee Reports, Discussion, and Action /City Liaison
a. Tax exempt certificate.
i. Jean Grafton discussed having a tax exempt certificate for the trustees to
use when traveling to conferences. David Wheeler stated that in order to
receive the exemption, a credit card with the City's name on it would
need to be used, an exemption will not be granted if a personal credit
card is used.
11. Adiiournment The meeting adjourned at 12:15PM.
12. Next Meeting February 3, 2016 at 10:OOAM.
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Respectfully sub itted by: Approved by: il
1 ,J2_ / i j
e - II Jenne Name: David Wheeler
Title: Plan Administrator Title:' aft- Chairman
Date Approved By the Pension Board: VfX)C0A '; ' O t
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