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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 1 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 2 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. nit r ' APPROVED: ,#°71,/ Chairman Schel er - i ATTEST: j62.e.v / / 1���, Tracy Ackroyd,City Clerk 3