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HomeMy WebLinkAbout1991 11 14 Board of Trustees Regular Minutes ~ BOARD OF TRUSTEES MEETING CITY OF WINTER SPRINGS NOVEMBER 14, 1991 The Board of Trustees Meeting was called to order by Mayor Philip A. Kulbes at 7:00 p. m. Present: Mayor Philip A. Kulbes City Manager Richard Rozansky Trustees: Art Hoffmann John Ferring William Dickey Seymour Berman William Jacobs Also present: Commissioner John Langellotti The first order of business was the nomination for Chairman. Mr. Berman nominated Mr. Ferring. Seconded by Mr. Hoffmann. Mr. Jacobs moved to close nominations. Mr. Hoffmann nominated Mr. Jacobs for Co-Chairman. Seconded by Mr. Berman. Mr. Ferring moved to close nominations for Co-Chairman. Mr. Ferring said the Board members have received the Master Trust Agreement with the Florida League of Cities which we are governed under at this point. Mr. Ferring suggested three members should constitute a quorum at any meeting, and if only a quorum is present, all votes would have to be in the affirmative. The Board was in agreement with this. ",.--- Mr. Ferring also asked if the trustees are indemnified and he asked what happens with the forfeiture monies. Manager Rozansky explained the City signed a contract with the Florida League of Cities Municipal Pension Trust Fund, and all the duties that this Board of Trustees would normally have,were picked up by the Florida League of Cities. Mr. Jacobs, as past Chairman of the Florida Municipal Pension Trust Fund, explained the Florida Municipal Pension Trust Fund people pick the firm who invest the money and they also pick the investor analysis. Mr. Ferring said the administrative fees are high and the FLC has unbridled power to do anything they want; he said this Master Trust Agreement gives them too broad powers. Mr. Jacobs said he thinks they made 20.4% last year, the year before was not too good and this year to date it is about 13%. Manager Rozansky said he will have the City Attorney here to answer questions and Mr. Mead, the pension fund attorney to answer questions about the fund. Mr. Berman suggested the Chairman call a meeting when someone from the Pension Trust Fund can be here. He suggested there should be a semi-annual meeting at the minimum. ,.-- v 1~ .~ Board of Trustees Meeting, Nov. 14, 1991. Mr. Ferring said he understands the Trustees charge by the City Commission was that they are to evaluate the plan, see what is going on with the Plan and come up with recommendations as to what we are going to do about proceeding with this Plan. Mr. Jacobs explained under the State Retirement System the contribution by the County and the Cities or the State per individual per year is about 17 or 18%. That is a defined benefit program. This is a defined contribution under the defined benefit. They have to have actuaries every year to figure out how much more they have to take out and there is 7~% of that contribution is unfunded liability. Mr. Hoffmann asked who does the actual investing, and Mr. Jacobs said Atlantic Capital out of Atlanta, Georgia. The League is the Administrator, they are the ones that coordinate with the custodian and investor and the investor analyst at the quarterly meeting. Mr. Chip Reams is the Fund Manager, Atlantic Capital, Atlanta, Georgia. Manager Rozansky said the League notifies us when they have their Trustees Meeting and this Board could attend if they so desire. Mr. Ferring said if you allow me to work with Mr. Rozansky he said he would get all the information and provide this Board with whatever information he has. Manager Rozansky said he would have the Attorneys here to answer questions, then have the League people here. ,- Mr. Jacobs explained this Fund was established primarily for cities that had no pension fund and to give cities an opportunity at a lower cost by having one investor and keeping the rates down. Mr. Ferring said he does not think anyone would disagree that we want to get the maximum amount for the employees for the City. He said the Commission will be kept fully informed and a report will be made to them as to what our actions are and our discussions are. Meeting was adjourned 8:10 p. m. Respectfully submitted, Mary T. Norton, City Clerk ,-.