02-07-2018 MinutesCITY OF OCOEE
MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND
BOARD OF TRUSTEES
QUARTERLY MEETING MINUTES
City Hall, Commission Chambers
Wednesday, February 7, 2018 at 10:OOAM
TRUSTEES PRESENT: Patricia Gleason
Jean Grafton
Robert Godek
Gequita Cowan
Pam Brosonski
TRUSTEES ABSENT: None
OTHERS PRESENT: Jennifer Gainfort, AndCo Consulting
Doug Lozen, Foster & Foster
Gene Williford, City Liaison
Lee Dehner, Christiansen & Dehner
Ferrell Jenne, Foster & Foster
Kim Kilgore, Foster & Foster
1, Call to Order — Robert Godek called the meeting to order at 10:03 a.m.
2. Roll Call — As reflected above,
3. Public Comments — None.
4. Approval of Minutes
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5. Consent Agenda
a. Warrants #40 and #41 for ratification.
b. Warrant #42 for payment approval.
second by Pam Brosonski, motion carried 5-0.
6. New Business
a. New member elected trustee
i. Robert Godek introduced Pam Brosonski as the newly elected trustee.
b. Election of officers
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motion carried 5-0.
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carried 5-0.
Lee Dehner reminded Pam Brosonski to file a Form 1 to the Supervisor of
Elections in the county which she permanently resides. Ferrell Jenne
confirmed the Form 1 F was sent to exiting trustee, Robert Briggs.
c. Quarterly Fund Activity Report for October 26, 2017 — January 31, 2018
i. Ferrell Jenne briefly reviewed the fund activity report.
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7. Old Business
a. Travel Policy
i. The board reviewed the current City travel policy which is being followed
by the board. After discussion, the board requested Ferrell Jenne to draft
a separate travel policy from the City's that would allow for
reimbursement on all reasonable travel costs.
8. Reports
a. Foster & Foster, Actuary, Doug Lozen
i. Presentation of the October 1, 2017, Valuation Report
1. Doug Lozen reminded the board that the October 1, 2017
valuation are applicable to City's plan fiscal year ending
September 30, 2019,
2. Doug Lozen reviewed all the data which is collected to produce
the valuation.
3. For the current fiscal year ending September 30, 2018, the City's
required contribution will be 10.76% of payroll. Looking forward to
fiscal year ending September 30, 2019 the City's required
contribution is expected to be approximately 10.45% of payroll.
4. Doug Lozen commented that the City's contributions will be
approximately between $800,000 to $900,000 for FY 2018.
5. Doug reviewed the valuation and commented the plan showed a
lot of stability but fell short on assumptions. Doug explained the
UAAL. Experience since the prior valuation has been less
favorable than expected. The primary source of unfavorable
experience are attributable to lower than expected retiree
mortality, average increases in pensionable compensation that
were more than the assumed rate, a lower invest return than the
assumption, and unfavorable retirement experience.
6. Doug Lozen stated the funding ratio as of October 1, 2017, was
94.2% and commented that over the next 5 years, the City's
contribution percentage will drop into the single digits.
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Jean Grafton and second by Geguita Cowan, motion carried 5-0.
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b. AndCo Consulting, Investment Consultant, Jennifer Gainfort
i. Jennifer Gainfort introduced herself to the board.
ii. Jennifer Gainfort reviewed the year's returns and gave a brief overview of
the market environment during the past quarter.
iii. Jennifer Gainfort reviewed the market pull back with the recent market low
in January. She commented the plan is up 0,6% & 3.9% from calendar
year end through yesterday.
iv. The market value of the fund as of December 31, 2017, was $38,356,708.
v. Total fund net returns for the quarter were 3.29%, underperforming the
policy benchmark of 3.97%, placing the Fund in the 77t' percentile on a
gross basis. Total fund net trailing returns for the 1, 3 and 5-year periods
were 15.17%, 7.32%, and 9.17% respectively. Since inception (4/1/2004),
total fund net returns were 6.76%, underperforming the benchmark of
7.09%.
vi. Jennifer Gainfort reviewed the performance of each investment manager
and current asset allocation,
vii. Jennifer Gainfort reviewed the plan growth over the last 10 years.
viii. Jennifer Gainfort commented that no rebalancing is needed at this time.
ix. Jennifer Gainfort discussed changing share classes to save approximately
10 basis points.
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motion carried 5-0.
c. Christiansen & Dehner, Board Attorney, Lee Dehner
i. Lee Dehner reviewed SB980 that would require additional calculations to
be done by the actuary.
a. Ferrell Jenne, Plan Administrator
i. Introduced Kim Kilgore as a new plan administrator for Foster & Foster
and briefly reviewed her pension administration experience. Ferrell
explained that Kim Kilgore will also be assigned to the plan and attending
future meetings.
ii. Educational opportunities
1. Ferrell Jenne reminded the board about the upcoming FPPTA
conference on June 24-27 in Orlando, Florida. Gequita Cowan
commented she would like to attend.
10, Trustees' Reports, Discussion, and Action I Qits _LjA1§pn
a. Patricia Gleason gave a brief overview of the valuable information presented at the
Division of Retirement Conference she attended.
12. Adiournment — The meeting adjourned at 11:02 a.m.
13. Next Meeting — Wednesday, May 2, 2018, quarterly meeting,
Resppctfully s ' ubmitted by: Approved by:
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Name: Kim Kilgore Name) -Robert Gode"'k-""
Title: Plan Administrator Title: Chairman
Date Approved by the Pension Board: 41 5-- ;2 -.- / ?