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HomeMy WebLinkAbout1994 03 29 Board of Trustees Regular Minutes " " ,-.. BOARD OF TRUSTEES MEETING FOR EMPLOYEES PENSION FUND The meeting was called to order at 7:32 P.M. Board Merrbers: Art Hoffmann, Chainman, Present Brian Fricke, Present Joel Berk, Present Seymour Benman, Vice-Chainman, Present Ralph Bowman, Present City Official: John Govoruhk, City Manager Philip Robert, Sun Bank Investment Officer First Quarterly Review of the Progress of the Investment Program With Sun Bank Corporate Employee Benefits Division: ~ Philip Robert introduced himself to the Board, he is the investment officer for the City's account for Sun Bank, he is responsible for maintaining the assets in the plan in accordance with your stated investment objectives. His role is client retention, infonming them with what is going on with the plan and also within the economic environment that we are in and to maintain the account in accordance with the objectives. He said that he is the point man on the investment side for the Bank. Robert stated that he also has partner, Diane Garcia, who was not able to be here tonight, who is the administrative officer. Hoffmann said that to bring the new members this is not defined benefits plan, it is a defined amount. Robert said that the money came in during the first few days of Septerrber 1993, so it has been almost six months that we have has the assets in our possession. Robert reviewed with the Board a perfonmance report (attached). He stated that looking at how we break down the perfonmance of our funds, basically for this time period we have out perfonmed both the stock market and the bond market, so I think that we are doing our job in that respect, giving the kinds of conditions that we are in. Discussion. ~ Berk asked Robert how does he differentiate between personal investments and investments for municipalities. Robert said what we look at for municipalities is working within the guidelines of the time frame, we look to see what the demographic mix is and when you are dealing with a large group of money, we are able to diversify pretty well and have a big part of a fund. We are also subject to, with municipalities, quality guideline with .---- Board of Trustees Meeting Employees Pension Fund March 29, 1994 Page 2 the stocks we buy. purchased. Discussion on the types of stocks and bonds that are Robert stated that he will typically cover the same things every time he and the Board gets together. He said that he thinks what is important to focus on is not necessarily short tenm perfonnance. Hoffmann asked if Robert planed to meet with the Board quarterly. Robert said that if that is when the Board meets he would be glad to attend. other Pension Program Matters, Including Items in Letter of February 22, 1994. to Sun Bank: Hoffmann said that this is the first meeting since last Sept~er. He said that the Florida League of Cities was the pension plan holder at that time and was not doing a good job with who they had the funds invested with. r- Hoffmann explained what has been going on with the pension fund in the past few years. There was discussion on having the City Attorney get together with Sun Bank and compile a booklet to give to the employees so the employees are aware of what they have in regards to the pension plan. The City Manager will get in touch with the City Attorney and have him get with Sun Bank. More discussion on the pension fund from Florida League. Manager Govoruhk said that before no one knew what was taking place, but not we sit with the Departme~t Heads and give them all the infonmation and also post the infonmation on bulletin boards so the employees know what is going on with the plan. Discussion on how the bill from Sun Bank will be paid. It was detenmined that it be paid from the general fund because if it comes out of the fund then it takes away from the return to the employees. Bennan ITOved general fund. that the plan administration fees continue to be paid by the Seconded by Fricke. Vote: All aye. Motion carried. Hoffmann said that our recommendation is for the Commission to approve the administrative fees be paid from the general fund. ---- Hoffmann said another item to be discussed by the Board is what to do with the forfeited funds and again in the Florida League Plan the funds were going back to the City. Discussion. " ~._. '-'" . .... .' '.. - , Board of Trustees Meeting Employees Pension Fund March 29, 1994 Page 3 Berman moved to recommend to keep the forfeited funds in the plan. Seconded by Fricke. Vote: All aye. Motion carried. Discussion on employees who leave the City's employment and are vested. Hoffmann moved to recommend that the City Attorney to review the obligation of spousal signature regarding lump sum distributions when the employee leaves the City's employ, for whatever reason. Seconded by Berman. Vote: All aye. Motion carried. I""'""' Hoffmann sa i d what i sn ' t clear is the program i tse 1 f as far as the employee's relationship, and said that he thinks we need to came up with getting Sun Bank to have same type of report to give to the employees with their annual report so the employee knows the whole plan. We could even do that before the end of the year because they haven't had any yet and it might be a good idea to have Sun Bank came up with samething before the next quarterly report and this should be worked out with the City Attorney. Discussion on how often the Board should meet. It was detenmined that the Board would meet at the end of every calendar quarter because that is the way the financial records come out. The Board also discussed the City Ordinance that states all City Boards be paid $25.00 per meeting but the Ordinance does not show the Board of Trustees as a paid Board. The consensus of the Board was to recommend that the Board of Trustees be included in the rem.lnerationscheclule of a.'ll other Boards, which is $25.00 per meeting. Election of Chairman and Vice-chairman: Berman nominated Hoffmann as Chairman. Seconded by Fricke. Vote: All aye. Motion carried. Berk nominated Berman as Vice-chairman. aye. Motion carried. Seconded by Bowman. Vote : All The meeting adjourned at 9:15 p.m. Respectfully Submitted, .,.-... Margo Hopk i ns .Deputy City Clerk