HomeMy WebLinkAbout1996 10 22 Board of Trustees Regular Minutes
Minutes
Board of Trustees/Pension Board
October 22, 1996 - Regular Meeting
1. Call to Order
Chairperson Hoffinann called the meeting to order at 7:38 p.rn. in the conference room, Municipal Building.
2. Roll Call
Also Present
Jim Ryan, present
Vernon Rozelle, present
Brian Fricke, present
Ralph Bowman, present
Art Hoffmann, Chairperson, present
Ron McLemore, City Manager
Brian Ballew, SunTrust Representative
Chairperson Hoffmann welcomed the new member, Vernon Rozelle, to the Board of Trustees.
3. Aooroval of Julv 30. 1996 Ree:ular Meetine: Minutes
Chairperson Hoffmann asked for comments and questions regarding the minutes. No comments or
questions were voiced. The Chair stated that the minutes stand approved as read.
/..-...,
4. Quarterlv Review of Trust Finances with Brian Ballew of STI Caoital Manae:ement
Ballew distributed two graphs, and the portfolio. It appears to be a slowing economy. The market is at
an all time high with profits beginning to level off a bit. Ballew doesn't believe the Feds are going to do
anything until post election. Unemployment is at its lowest point since 1990. Rates have gone up over the
last year which has hurt the bond fund returns. Instead of getting 7% yield, there is only about 4 1;2 % in
the bond fund for the year.
Fricke asked Ballew that if he is thinking there may be a pull back in the market, then why not allocate a
little heavier on the equity income side. Ballew said that if things start looking very rich, then the manager
on the growth side will start structuring the portfolio a little more defensively. If they think the economy
is slowing, then they will buy companies in the growth fund that they feel can maintain their earnings.
International markets were discussed. Ballew offered to bring an International representative to a meeting.
Chairperson Hoffmann asked Ballew if he recommended any changes in equities and bonds. Ballew said
that the City of Winter Springs has a prudent mix.
Manager McLemore asked where Ballew sees the best opportunities in stocks in the next twelve months.
Ballew said that right now they are favoring the consumer non-durables.
Fricke asked if SunTrust has considered real estate investment trusts. Ballew said that at one point they
had real estate in asset allocation, but are currently stock and bond only.
Minutes
Board of TrusteeslPension Plan
October 22, 1996 - Regular Meeting
Page 2 of 2
Ballew said that Diane Garcia has been talking with Tom Lang to get clarification on the pension plan and
amendments, and the situation is being resolved. All of the amendments to the pension plan have been
approved by resolution.
Chairperson Hoffmann stated, the employee reports should be given to them within 90 days after the end
of the fiscal year.
Chairperson Hoffinann said that it was amazing that none of the employees rolled over their pension, they
all cashed out which means that 20% of the total go to the IRS. Fricke said that the city is required to
withhold 20% if it is a direct distribution to the employee. Discussion of making educational opportunities
available for employees so they can understand the plan.
Rozelle asked how many people are under the retirement plan. Chairperson Hoffmann said, somewhere
between 220 and 240. The plan isn't a "guaranteed benefit", it is a "guaranteed investment"...it is always
fully funded. Fricke added, it is more like a profit sharing plan, not a defined benefit. Rozelle then asked
how many employees are fully vested, and how many are 40%-100% vested, and whether or not the
Trustees should be concerned about the figures. Fricke said that if he was an employee he would be
interested because the uninvested balances of terminating employees is divided up among the employees
which stay.
Chairperson Hoffmann requested that all of the Trustees receive a complete copy of the pension plan.
Manager McLemore mentioned that the plan doesn't state when one is eligible for retirement. Chairperson
Hoffinann suggested that Attorney Tom Lang be contacted. An employee cannot leave the money in the
plan after they leave employment; they must either cash out their pension or roll it over.
5. Unfinished Business
No comments.
6. New Business
No comments.
7. Adiournment
Chairperson Hoffmann stated that the next meeting will be the fourth Tuesday of January 1997.
The meeting adjourned at 9:00 p.m.
Minutes submitted by:
Martha Jenkins, Deputy City Clerk
City of Winter Springs, Florida