2005-05-09 Police Fund Meeting...�:. �
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• � Okeechobee Police Department
Pension Board Meeting
� s May 9, 2005
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General Meeting called to Order by LC Fortner at 5:00 PM - ,
Present were Steve Padgett and Bettye Taylor .�� �.
Absent were: Louise Chandler, Denny Davis and Bob Peterson
Actuary Theora Braccialarghe went over the Acturial Valuation Report for the
Retirement Plan. She advised that 2 and 3 years ago the numbers were in the negative but
this year should be the last of the negative numbers in which the fund had to recoup the
losses sustained. She advised the Police Fund is maxed out on the amount of State
Contribution to be used to funding the plan. This year we ended up with $8,567.00 over
the amount, which will be held in the plan toward improvements. She advised that none
of the changes shown in the Actuary Study were due to the new ordinances or the Drop
Plan just implemented. She advised some of the losses shown are due to salary increases
in personnel.
A special meeting will need to be held by Police Pension Board to vote to approve
the Actuarial Study by Gabriel, Roder, Smith and Company.
• Mary Dunkin-Trusco �
Advised Market is down again mainly due to lack of confidence and oil prices. Advised
Value Funds are favored but he Growth Market is creeping back up. Advised Midcap out
preformed the others. Went over the actuarial statement and said they recommend we live
the benchmark at 7% for Fund Earning Assumption
Ernie Mehler-Smith Barney
Advised each plan was about —1.46% advised the plans were about even with the Fiscal
Market of azound 5%. Advised the Portfolios went down due to drop in Markets. Advised
the plans have had good performances last couple of years considering the markets.
Advised if performance continues to increase the city will not have to contribute to
bolstez fund.
Scott Christiansen-Attorney
Board Attorney Scott Christiansen advised the City Council had been addressed zeference
the drop plan and they have be�en approved. Christiansen advised the board needs to
have special meeting to authorized Christiansen to do form for people going into
drop and the 20%/80% election.
Need to make sure all members do their Disclosure Forms for the Supervisor of
Elections.
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• • New Legislature Pending-Propsed to change pensions to include cancer as one of the job
related injuries. Changing perdiem rates for cities. Already changed to 6/9/18 and are
being recommended to ga higher.
Christiansen advised board needs to have special meeting to show that we need to
make benchmark of 7% for Fund Earning Assum�tion_ over the next year.
Christiansen advised Board needs to send letter of ordinance change and acceptance
of Actuarial Study.
Christiansen advised IRS has changed rules about cashing out in pension plan. IRS has
said by the ls` of the year it was put into place that we had to set up IRA's for individuals
who did not cash out at the specified time. Recommended the language in plan be
changed to not stipulate at cash out time. Boards need to have special meeting to vote
an this change in plan.
Said he did not see a problem with plan's signing the form for Merita Rice to be able to
go on line and check bank accounts for information.
Police did not meet individually due to lack of quorum.
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• a' an Denny Davis
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SecretaY� Bettye fiaylor