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HomeMy WebLinkAbout1996 02 27 Board of Trustees Regular Minutes MINUTES BOARD OF TRUSTEES/PENSION SPECIAL MEETING FEBRUARY 27,1996 1. Call to Order The meeting was called to order by Chairperson Hoffmann at 7:35 p.m. in the conference room, city hall. 2. Roll Call City Officials. present Art Hoffmann, Chairperson, present Brian Fricke, absent Si Berman, present Ralph Bowman, absent Jim Ryan, present Tom Lang, Attorney 3. Approval of January 23. 1996 Minutes Chairperson Hoffmann asked for comments regarding the minutes. There were no comments by the members. Chairperson Hoffmann stated that the minutes stand approved as read. 4. Ouarterly Review of Trust Finances with Brian Ballew ofSTI Capital Management Ballew distributed portfolios. There was also a document distributed that showed the performance for the last quarter and the year on a sector basis. Ballew reiterated the philosophy of Sun Trust, then discussed the figures in the portfolio. He also distributed two more documents. Berman said he thought the interest in dividends were on the low side based on the value of over a million dollars. Ballew agreed, and said he would check on the figure. Chairperson Hoffmann asked if there were any changes in the investment philosophy that would concern the board. Ballew said there's no big changes. Attorney Lang asked Ballew if there was anything in the investment stradegy that's been presented by this board that he's considered to be imprudent, or is it a prudent investment stradegy of what is known from other pension funds and municipalities invested. Ballew said that Winter Springs is in line. The average municipality has about 51 % in equities. Several have 65%. Winter Springs has 60%. Ballew said that he would check on the interest in dividend number. Ballew exited. Chairperson Hoffmann said that he wanted to discuss the Seventh Amendment before going to the next item. Attorney Lang suggested deleting the words "the later of' at the end of the introductory paragraph in Seventh Amendment. Chairperson Hoffmann asked for a consensus of the board to accept the deletion suggested by Attorney Lang. Vote: All ayes. MINUTES BOARD OF TRUSTEES/PENSION FEBRUARY 27, 1996 SPECIAL MEETING PAGE 2 5. Review of Paragraph 4.01 includes Item 6: Reporting of Employee Accounts following Evaluation Dates Paragraph 4.01 is within Article 6 of the Pension Agreement. Chairperson Hoffmann said he's concerned about sub-paragraph "b". It reads that the city has four months to give SunTrust the information to make the allocation, then within 90 days after that SunTrust has to report back to the city. Chairperson Hoffmann said that seven months seems like an inordinate amount of time to process the account. He said that he would talk to the Ron McLemore, Mary Wilson, and Diane Garcia to improve that rate. (the next item discussed was item #8) 7. Unfinished Business The recording secretary mentioned that the board had previously talked about an explanation of the statement for the employees, but she didn't receive any explanation with her statement. Attorney Lang explained each line on the statement: Line 1-- the amount you started with; Line 2-- the amount the city contributed; Line 3--the forfeiture amount. These are monies that employees leave behind when they terminate from the city. The monies are divided amongst the existing employees; Line 4--the amount of your share of the earnings (the city receives earnings through investments); Line 5--the ending balance (adding lines 1 through 4 should equal line 5); Line 6--the vested balance. The vested balance is the amount you would receive if you terminated your employment as of the statement date. Example: Line 5 is $5,000 and line 6 is $2,600. You decided to terminate your employment; you would receive $2,600 (the vested balance) because you were not 100% vested. 8. New Business (this item was discussed before item #7) Chairperson Hoffinann said that Ron McLemore spoke with him about a non-voluntary participation in the pension plan for the employees. Up to 2% of their income with the city matching it. The city puts in 6% now, so then it would go to 8% with the employee putting in 2%. Two percent would roughly be $80,000 a year that the city would have to put in. The Chairperson said that if it was made mandatory, then he suggested a referendum by the employees as to their interest. One way to doing it would be to give all of the employees a 2% increase across the board; however, the increase would be applied to an investment programs which is also part of the pension program. Attorney Lang said that these changes would revise the plan. Berman asked ifthere would be additional fees from SunTrust. Chairperson Hoffmann answered, yes. Attorney Lang said that he needed to look into what it does to the 401K. 9. Adiournment Chairperson Hoffmann adjourned the meeting at 8:50 p.m. Martha Jenkins, Deputy City Clerk