09-18-2014 Police Pension Minutes City of Clermont
MINUTES
POLICE OFFICERS RETIREMENT PLAN BOARD OF TRUSTEES MEETING
September 18,2014
The Police Officers Retirement Plan Board of Trustees met in a regular meeting on Thursday, September
18, 2014 in the Council Chambers at City Hall Board Members present: Michael Scheller, Scott Tufts
Jason Sayre and James Wynns. Staff members present: Finance Director Van Zile and
Deputy City Clerk Noak. Also present were Scott Christiansen; Counsel to the Board, and Paul Shamoun
from the Flonda League of Cities
John Baker was absent
Chairman Scheller called the meeting to order at 4.03pm.
PUBLIC COMMENTS
Chairman Scheller opened the meeting for public comments. There were no public comments.
MINUTES
Approval of the minutes of Regular Meeting from June 19, 2014
Board Member Wynns moved to approve; seconded by Chairman Scheller. The motion
passed unanimously
UNFINISHED BUSINESS
No unfinished business.
NEW BUSINESS
Discussion of Current Retiree Monthly Benefit Increase
Finance Director VanZile distnbuted a schedule of proposed pension retiree increases. The last increase
occurred in 2004. An ordinance will be presented to the City Council for introduction at the October 14
meeting and for a final hearing at the October 28 meeting with an effective date of October 1, 2014. The
City would contnbute the funds to cover the costs.
Board Member Sayre inquired if the increase was every year Finance Director VanZile stated is no
requirement for annual increases and it was up to the discretion of the City Council. The increases were
intended to be provided every three to four years; however there was a time frame when the employees
were not extended salary increases.
Attorney Christiansen commented if increases were provided each year, the State could require the
increases to be funded within the plan and contributions would need to increase He stated the Board did
not need to approve the increases as it is not a negotiable item and the increases will not be paid out of the
plan. The Board does not have to approve the increases; however the Board can be on record as
supporting the increase
Board Member Tufts moved to support; seconded by Chairman Scheller. The motion
passed unanimously
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City of Clermont
MINUTES
POLICE OFFICERS RETIREMENT PLAN BOARD OF TRUSTEES MEETING
September 18,2014
Discussion of Off Duty Disability Benefits Percentage of Average Compensation
Finance Director VanZile stated in researching the November 25, 2003 Police Officers' Pension Plan
Adoption Agreement document regarding on-duty disability benefit percentage, it was recognized that the
off-duty disability benefit should not have been changed Attorney Christiansen stated it was common
for a non-service related injury or disease benefit, the member must have at least 10 years of service and
the minimum benefit which can be provided is the approved benefit or 25% of average compensation;
whichever is greater. '
Finance Director VanZile stated the Police Officers' contract dated February 14, 2012; Article 27
Pension, contained changes to overtime compensation and unused sick or annual leave payment at
retirement. The current adoption agreement dated May 8, 2012 has the same language as the November
25, 2003 document with the exception of it states 42%of average compensation. The off-duty disability
benefit was not intended to match the in-line-of-duty disability benefit. A revised Police Officers'
Pension Plan Agreement will need to go before the City Council to clanfy and adopt the 25% average
compensation.
Attorney Christensen stated the Board did not need to take action. The issue should be run through the
Union to explain the reason for the change. Finance Director VanZile will meet with Union President
Kevin regarding the change.
The PLAN ADMINISTRATOR REPORT
Discussion of Investment Performance Report for Quarter Ending June 30, 2014
Paul Shamoun reviewed the beginning balance, contnbutions, earnings, distributions, and ending balance
for quarter ending June 30,2014. ,
The quarterly performance ended at 2.9% with the International portfolio at 2.63% percent, lagging
behind its index of 5 25%percent. Year-to-date the fund is at 2 36% versus the index of 10.99%. There
have been discussions regarding the International Manager over the past three quarters and selected a new
International Manager in August.
The new portfolio, Core-Plus Fixed Income Fund, is at 2.32%for its first full quarter.
Year-to-date the Pension Trust Fund is at 9.32%, which is still lagging.
ATTORNEY REPORT
Attorney Chnstiansen stated Board Member Sayre's term ends the beginning of December.
Board Member Wynns moved to recommend re-appointment of Jason Sayre, seconded
by Board Member Tufts The motion passed unanimously.
He reported all Board Members had filed their annual financial disclosure forms.
The State money has been received in the amount of$217,653 00.
The 2015 proposed meeting dates are March 19, June 18, September 17, and December 10 at 4pm. The
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City of Clermont
MINUTES
POLICE OFFICERS RETIREMENT PLAN BOARD OF TRUSTEES MEETING
September 18,2014
Board was in agreement with the dates and time.
BILLS AND EXPENSES FOR APPROVAL
Approval of Plan Expenses for June 14, 2014 through September 15, 2014
Finance Director VanZile presented the plan expenses for the quarter. There were three invoices for
Attorney Christensen,one for the Actuary,and one for the League of Cities quarterly fees.
Chairman Scheller moved to approve: seconded by Board Member Sayre. The motion
passed unanimously.
Approval of Member Distributions
Finance Director VanZile reported there were two Return of Employee Contnbution distnbutions.
Attorney Christensen suggested using the wording Refund of Member Contnbutions on the agenda.
Board Member Wynns moved to approve: seconded by Board Member Sayre. The
motion passed unanimously
Board Member Wynns moved to adjourn; seconded by Board Member Sayre. The
motion passed unanimously
ADJOURN
With no further comments,this meeting was adjourned at 4:38 pm.
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APPROVED:
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Chairman Schel er
- i ATTEST:
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Tracy Ackroyd,City Clerk
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