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HomeMy WebLinkAbout1997 10 28 Board of Trustees Regular Minutes MINUTES BOARD OF TRUSTEES - PENSION PLAN OCTOBER 28, 1997 - REGULAR MEETING 1. CALL TO ORDER The Board of Trustees - Pension Plan meeting was called to order Tuesday, October 28, 1997 at 7:30 p.m. by Vice-Chairman Jim Ryan in the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). 2. ROLL CALL Jim Ryan, Vice Chairman, present Robert Nippes, present Vernon Rozelle, arrived at 7:41 p.m. Ron Warble, present Larry Nadrowski, present - ALSO PRESENT Ronald W. McLemore, City Manager John Drago, Administrative Assistant Peter Hardy, SunTrust Representative Margo M. Hopkins, City Clerk Tom Lang, Attorney 3. APPROVAL OF THE AUGUST 19. 1997 BOARD OF TRUSTEES REGULAR MEETING MINUTES Motion by Robert Nippes. Second by Ron Warble. The motion to adopt the minutes of August 19, 1997 was carried by consensus of the Board. The following Agenda Items - Four (4) and Five (5) are listed the way they were discussed at tonight's meeting, as per discussion and agreement by the Board and those in attendance. 5. STATUS REPORT ON IMPLEMENTATION OF RETIREMENT SYSTEM City Manager Ronald W. McLemore explained to the Board that the plan was about eighty percent completed, and then it would be submitted to Attorney Tom Lang for his review. There were comments that indicated that everyone seemed to be pleased. Board Member Robert Nippes asked "Is it fully instituted now"? Mr. McLemore responded by saying no, and he explained that the legal documents still needed to be completed. MINUTES BOARD OF TRUSTEES - PENSION PLAN OCTOBER 28, 1997 - REGULAR MEETING PAGE20F3 Mr. McLemore further told the Board that the Disability Insurance package had been put out for bid, and that the Board may be called for a Special Meeting to review this. He added that the City has been meeting with SunTrust. Mr. Nippes asked "What's the target.. .like the first of the year? Mr. McLemore answered, "We actually had set a target for the first of November, and...". It was agreed by the Board that that was an aggressive time frame. Mr. McLemore agreed by saying "That's pretty aggressive, we're not all there obviously, but...we're eighty to ninety percent there"! Board Member Vernon Rozelle arrived at 7:41 p.m. 4. REVIEW OF TRUST FINANCES WITH PETER HARDY/STI CAPITAL MANAGEMENT Peter Hardy, SunTrust Representative elaborated about yesterday's market crash (of 554 points) and explained briefly some of the last few month's events in Southeast Asia that contributed to yesterday's market events. He distributed and referred to the "Money Purchase Pension Plan - Investment Performance Report", dated September 30, 1997, and first commented on the third quarter numbers. He stated "The third quarter numbers, third quarter number...another positive number in the stock market, I believe that's three straight years of positive performance. As far as what we see now, not real concerned...that, the interest rate and earnings forecast that we see is still intact. This is something that happens when you have consecutive twenty plus years paying 3% last year, 37% in '95, and now we're up 30% now, probably closer to 24% after today, but we had our correction, and today we bounced back, about 354 points". He further addressed the recent market events by stating "The fear and jitteryness is still there, but, I would not be overly concerned. Y ou're allocated in such a way, that for long term performance, you all should be...be fine". Mr. Hardy then reviewed the portfolio with all in attendance. He commented on the performance and activity of the different funds in the portfolio, and explained some of the factors that contributed to change and growth. There was discussion regarding earnings differentials, and what percentage required re-balancing. Mr. Hardy next explained each of the different funds in the portfolio. There was further discussion. MINUTES BOARD OF TRUSTEES - PENSION PLAN OCTOBER 28, 1997 - REGULAR MEETING PAGE 3 OF3 Attorney Tom Lang asked "Any suggested changes in strategy"? Mr. Hardy replied, "This is a prudent allocation, we've discussed it at length last meeting, and I'm very comfortable with where you are, long term...regardless of what happens". He further stated that "You have good exposure to all asset classes, and I don't think that the allocation is out of line...for...the average age of the participant". Board Member Vernon Rozelle asked about the allocation of the 70%, and Mr. Hardy explained the disbursement. Board Member Ron Warble commented on staying away from the international market. Mr. Hardy spoke briefly on the possible merits and risks of such an investment. Mr. McLemore stated that "the bottom line is we see no sense for doing anything different. We've got a good mix of things". New Board Member Larry Nadrowski asked what the average age of the employees was. There was brief discussion on this. Mr. McLemore spoke on the one-time cash infusion. He continued "Well, we just did some re-calculating...the actuary did...and thought it...just to get this thing started and to put a little more money into it was probably a good idea, and so we're actually starting off with the defmed benefits plan with $135,000; which is better than starting it offwith zero, and then start building". He further stated "As I had mentioned to the Commission, and we'd have to do this on a yearly basis, but...I would like to get us to that point of having the prior year's obligation funded in advance". There was further discussion on this subject. 6. ADJOURNMENT The meeting was adjourned at 8:20 p.m. with consensus of the Board. Minutes respectfully submitted by: Andrea Lorenzo-Luaces, Deputy City Clerk City of Winter Springs, Florida BOARDS/trusteeslfY9798/minutesll02897.doc