Loading...
02-16-2018 Retirement Plan Board City of Clermont MINUTES POLICE OFFICERS RETIREMENT PLAN BOARD OF TRUSTEES MEETING February 16,2018 The Police Officers Retirement Plan Board of Trustees met in a regular meeting on Friday, February 16, 2018 in the Council Chambers at City Hall.Board Members present:Scott Tufts,Mark Vitek,Jason Sayre, and John Baker. Attorney Scott Christiansen was present. Jeremy Langley;Florida League of Cities,was present. Staff members present: Finance Director Van Zile, Risk and Benefits Manager Ohlinger, and Deputy City Clerk Zinker. Board Member Scheller was absent. CALL TO ORDER Board Member Tufts called the meeting to order at 9:12am. OATH OF OFFICE Deputy City Clerk Zinker administered the Oath of Office to Mark Vitek and Scott Tufts. PUBLIC COMMENTS Board Member Tufts opened public comments. There were no public comments. Board Member Tufts closed public comments. APPROVAL OF MINUTES Approval of the December 14, 2017 Police Officer Pension Board Minutes Board Member Sayre moved for approval;seconded by Board Member Baker. The motion passed unanimously. UNFINISHED BUSINESS Discussion of Pension Plan Performance Review Finance Director Van Zile proposed a joint meeting with the Firefighters Pension Board to discuss the report conducted by Public Financial Management Asset Management, LLC. The report applies to both boards and there were some concerns which were raised when conducting the report.Copies of the report will be sent out once it has been received. Approval of Amended Operating Rules and Procedures Attorney Christiansen stated the document is an updated Operating Rules and Procedures per authorization from the board. The sections which are highlighted need to be looked over closely by the Board due to unbundling as there were a number of changes to the Operating Rules and Procedures.This document can be amended at any time by the Board. 1 City of Clermont MINUTES POLICE OFFICERS RETIREMENT PLAN BOARD OF TRUSTEES MEETING February 16,2018 Board Member Sayre suggested tabling it to see what happens with the Florida League of Cities and to give Board Member Vitek time to review and comment. Board Member Sayre moved to table the Amended Operating Rules and Procedures to the next Board Meeting on May 23, 2018; seconded by Board Member Baker. This motion passed with all members present voting aye. Approval of 2018 Meeting Dates and Times Board Member Sayre moved to approve the proposed 2018 meeting dates and times; seconded by Board Member Baker.This motion passed with all members voting aye. NEW BUSINESS Attorney Christiansen stated four trustees' terms currently end at the same time. To remedy the situation, the Board can decide to stagger the Board's terms by having Board Member Vitek's term end on December 1,2018. BILLS AND EXPENSES Approval of Plan Quarterly Expenses for Period December 7, 2017-February 8, 2018 Finance Director Van Zile presented the quarterly expenses for approval. Board Member Sayre moved to approve the quarterly expenses; seconded by Board Member Baker.This motion passed with all members present voting aye. MEMBER DISTRIBUTIONS Approval of Member Distributions Finance Director Van Zile stated there were no member contributions made for this quarter. DROP PARTICIPANTS Approval of Elijah Wells DROP Entry Attorney Christiansen stated Elijah Wells is eligible for retirement and requested to go into the DROP program. DROP participants are able to retire from the pension plan,but continue to work for up to another five years. The Board accumulates the participant's money in the plan for the time they are working. The participant is retired but still working and now accumulating the monthly amount into their drop account. At the end,the participant can pull the money out and pay taxes or roll it over into an IRA.The participant does continue to get shares until they are not active. 2 City of Clermont MINUTES POLICE OFFICERS RETIREMENT PLAN BOARD OF TRUSTEES MEETING February 16,2018 Board Member Sayre moved to approve Elijah Wells DROP entry; seconded by Board Member Baker.This motion passed with all members present voting aye. PLAN ADMINISTRATOR REPORT Discussion of Investment Performance Report for Quarter Ending December 31, 2017 Mr. Jeremy Langley discussed the job duties of Florida League of Cities and reviewed the Investment Performance Report. Board Member Baker expressed concern with buying bonds. Mr. Langley explained the managers are looking at what is happening over the next 30 years. There is no telling what the market will do and the goal is to avoid too much risk. Finance Director Van Zile inquired how the target index is determined.Mr.Langley replied the target index is determined by looking at portfolio index.The index used is the one that matches that type of investment. Core Plus is the only one that differs as it is unique by using two managers. Mr. Langley clarified there are advantages to showing both indexes in the report as it shows the good and the bad. If the five largest companies in the United States are garnering the majority of the returns, our managers will not hold as much of those companies as the index does as it is too much for one manager to invest in one company. ATTORNEY REPORT Attorney Christiansen reported the potential forfeiture pending for Cecil Garrett. Mr. Garrett has recently plead no contest of five counts of perjury which were done in the performance of his duties. There is a provision under the Florida Statutes providing if an individual commits a crime that has a nexus to their job as a Police Officer and they are convicted of one of the charges listed in the statute or admit they did something wrong and are fired,the state law provides the Board will decide if there is a forfeiture of their funds, except for the money the individual provided. Attorney Christiansen suggested sending a letter to Mr. Garrett indicating there is a hearing to be held as to whether there is a right to forfeiture with copies attached of all the collected information. Copies of what is sent will also be given to the Trustees. Then a probable cause hearing will be held by the Board wherein the Board will decide if there is a right for forfeiture. Mr. Garrett will be notified of the decision the Board has made at which point he will have the right to challenge the Board's decision and request a hearing to be held to plead his case. Mr. Garrett was convicted after his employment with the city had ended, but that does not affect the right of forfeiture as the crime was committed while he was employed. Board Member Tufts moved to allow Attorney Christiansen to send a letter to Mr.Garrett regarding his potential forfeiture: seconded by Board Member Sayre.This motion passed with all members present voting aye. 3 City of Clermont MINUTES POLICE OFFICERS RETIREMENT PLAN BOARD OF TRUSTEES MEETING February 16,2018 ADJOURN: With no further comments,this meeting adjourned at 10:16pm. APPROVED: ,/12 Chairman Scheller ATTEST: Tracy Ackroyd we,City Clerk t,iliSlI4 •ti .. // 1. J F r !!/l I rrr NrUH R'''''•�