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HomeMy WebLinkAbout2002 11 26 Board of Trustees Special Minutes CITY OF WINTER SPRINGS MINUTES BOARD OF TRUSTEES - PENSION PLAN SPECIAL MEETING NOVEMBER 26, 2002 I. CALL TO ORDER The Board of Trustees - Pension Plan Special Meeting was called to order by Vice Chairman Vernon Rozelle, on Tuesday, November 26, 2002 at 7:36 p.m. in the West Conference Room of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call: Chairman Robert Nippes, absent Vice Chairman Vernon Rozelle, present Board Member Vincent Giannoni, present Board Member Mark Lammert, present Board Member Mark Queen, absent II. REGULAR REGULAR A. Review Of Revised Plan Document. Ms. Louise Frangoul, Finance Department Director, introduced the Agenda Item. Ms. Frangoul spoke of the Summary of Retirement Plan Changes, the proposed Resolution and the final version [November 21, 2002] of the Defined Benefit Plan and Trust for Employees of the City of Winter Springs. Ms. Frangoul explained, "There really was one (1) main change [from the November 7,2002 Plan Document) - which was 8.05 and - the other post it notes are basically just referring to that Section 8.05. And maybe Don [Chapman] you could help me out with explaining 8.05 and how we came to the conclusion that we need to alter that." Mr. Donald D. Chapman, E.A., Retirement Plan Specialist, Inc., Post Office Box 622857, Oviedo, Florida: explained "The question had to deal with vesting of employee contributions and the way it was put together originally was that they were one hundred percent (100%) vested and could receive it upon termination which was not the intent as to how the plan was designed. It was designed so that when the Plan became a Defined Benefit Plan effective October 1, of 2000 the monies that had been previously in the Money Purchase Plan were to become available if they terminated and they could receive that by election. If they received it by election it also reduced the amount of ultimate benefit they'd be entitled to when they reached retirement. As far as contribution after October 1 st of 2000, they're all to stay in the Plan, invest one hundred percent (100%) for CITY OF WINTER SPRINGS MINUTES BOARD OF TRUSTEES - PENSION PLAN SPECIAL MEETING - NOVEMBER 26, 2002 PAGE20F3 them but not payable or received until they actually reach retirement. One of the reasons it was put in that way was to keep the Plan solvent so that we wouldn't see a lot of the assets go all out if people started terminating and immediately receive it. So it was really for the solvency of the Plan it was done that way." Discussion. Referring to the proposed Resolution Ms. Prangoul said, "As we go through the Resolution it is basically incorporating those changes that are in this Plan - from the 7/11 version which changed here, on page ten (10), - we just made a reference to this Section 8.05 that we have changed." Mr. Chapman said, "That one liner there - basically it says that if they do decide to take their own money out that was in the Money Purchase Plan, the Ultimate Benefit is adjusted by what they received. It's actuarially done." Ms. Frangoul reviewed the changes in the Defined Benefit Plan and Trust for Employees of the City oj Winter Springs by referring "To page 4.2 which is a reference to Section 8.05, a change from the 11/7 version. Page 8.1 is that Section 8.05 that we have been talking about and page 8.2 is the remaining portion of 8.05." Discussion. MOTION BY BOARD MEMBER LAMMERT. "I MOVE THAT THE TRUSTEE BOARD ACCEPT THE RESOLUTION AS WRITTEN DATED NOVEMBER 21, 2002." SECONDED. DISCUSSION. WITH CONSENSUS OF THE BOARD, THE MOTION WAS APPROVED. MOTION CARRIED. Ms. Frangoul mentioned that the Plan Document will be gomg before the City Commission on December 9,2002. III. ADJOURNMENT Vice Chairman Rozelle asked, "Do I have a Motion for Adjournment?" MOTION BY BOARD MEMBER GIANNONI. "MOTION TO ADJOURN." SECONDED BY BOARD MEMBER LAMMERT. DISCUSSION. WITH CONSENSUS OF THE BOARD, THE MOTION WAS APPROVED. MOTION CARRIED. CITY OF WINTER SPRINGS MINUTES BOARD OF TRUSTEES - PENSION PLAN SPECIAL MEETING - NOVEMBER 26, 2002 PAGE30F3 Vice Chairman Rozelle adjourned the Meeting at 8:00 p.m. RESPECTFULLY SUBMITTED: ~~ DEBBIE GILLESPIE DEPUTY CITY CLERK S:\dept - City Clerk\Boards and Committees\Board ofTruslees\alll\Draft Minutes\2002\II2602 SPECIALdoc NOTE: These Minutes were approved at the January 28,2003 Board of Trustees-Pension Plan Meeting.