HomeMy WebLinkAbout07161993 POPT MINUTES OF TEE MEETING OF THE
BOARD OF TRUSTEES OF THE SEBASTIAN POLICE OFFICERS
RETIREMENT TRUST FUND HELD ON FRIDAY, JULY 16, 1993
The meeting was called to order at 10~15 A.M., by Chairman
Gore. Present were E. Bwert, D. Puscher, E. Petty and G. Gore.
Motion to approve minutes of last meeting by E. Ewert seconded
by D. Puscher. (Passed)
A review of investments was given by representatives of The
Investment Counsel Company. The members generally expressed
approval of the reports and the status of investments made through
the company. G. Gore inquired about the possibility of future
investments in stocks and bonds rather than the present situation
involving only bonds and money instruments. The board was advised
that future growth would be needed in the fund in order arrive at
that investment mixture.
By resolution the members requested G. Gore to Correspond with
the City in order to arrange for the appOintment of a new
Secretary/Treasurer in the absence of Larry Napier.
The members discussed the desirability of meeting with all
officers of the police department in order to answer any questions
any might have regarding the fund.
Motion to adjourn made by E. Ewert seconded by D. Puscher.
Meeting was then adjourned.
may be reimbursed from the -Fund for all necessary expenses which
they may actually expend through service on the Board.
(g) Each trustee shall be entitled to one (1) -vote on the
Board. A quorum shall- consist . - of ' at.. least three (3 ) members and
three . (3) - affirmative votes - shall be necessary for a decision by
the. trustees, at any meeting of the Board. The Chairman shall
have the right to one (1) vote only: Trustees may not.cast proxy
votes.
(h) Subject to the limitations of this article, the Board
shall, from time to time, establish uniform rules and regulations
for the administration of the Fund created by this article and
for transactions of its business, including provisions for
expulsion due to non-attendance of its elected members which
could result in a vacancy.
(i) The Board shall engage such actuarial, accounting,
legal and other services as shall be required to transact the
business of the Retirement System. The compensation of all
persons engaged by the Board and all other expenses of the Board
necessary for the operation of the Retirement System shall be
paid by the Fund at such rates and in such amounts as the Board
shall agree. Funds may be distributed by a disbursing agent as
determined by the Board, but only upon written authorization by
the Board. The City Attorney shall give advice to the Board in
all matters pertaining to their duties in the administration of
the System whenever requested; and he shall represent and defend
the Board as its attorney in all suits and actions at law or in
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equity that may be brought against the Board and bring all. suits
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and• actions on behalf of the Board that may be required or
determined upon by the Board. However, if the Board so elects,
it may employ independent legal counsel at the expense of the
System for the purposes contained herein, together with such
other professional, technical or other advisors as the Board
deems necessary.
(j) Any elected or appointed trustee who neglects the
duties of his or her office, as determined by the Board, may ' be
removed by four (4) concurring votes among,.the Board.
(k) For all acts and determinations of the Board, the
secretary shall prepare minutes.
(1) The duties and responsibilities of the Board shall
(0011) include, but not necessarily be limited to the following:
(1) construe the provisions of the System and
determine all questions arising hereunder
(2) determine all questions relating to eligibility
for benefits hereunder.
(3) determine and certify the amount of all retirement
allowances or other benefits hereunder.
(4) establish uniform rules and procedures to be
followed for administrative purposes, benefit applications and
all matters required to administer the System.
(5) distribute to the members annually pertinent
financial information concerning the System.
(6) receive and process all applications for
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participation and benefits.
(7) authorize all. payments. whatsoever from the Fund,
and to notify the disbursing agent, in writing, of approved
benefit payments and other -expenditures arising through operation
of the System and Fund.
(8) have actuarial studies and actuarial* valuations
performed and make recommendations regarding any* and all changes
in the provisions of the System.
(9) make the final determination of a member's
eligibility for the disability benefits provided herein.
(10) perform such other duties as are specified in this
article.
(m) The Board shall furnish to the city auditor such
available investment and actuarial information regarding the
System as shall be requested. At its option, the Board may
select the City's independent auditor for purposes of -preparing
an independent audit of the System provided said auditor meets
the requirements of Chapter 185, Florida Statutes."
Section 7. FINANCES AND FOND MANAGE MM A new Section
2-126 of the Code of Ordinances of the City of Sebastian is
hereby created to read as follows:
"(a) -All of the contributions and assets whatsoever
attributable to the System shall be deposited to the Fund.
(b) The actual custody and supervision of the Fund (and
assets thereof) shall be vested in the Board. 'Payments of
benefits and disbursements from the Fund may be made by the
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disbursing agent but only upon written authorization from the
Board.
(c) The Board shall be required to appoint a national or
state bank with trust powers for the purpose of serving as
custodian of the Fund, and all assets of the Fund shall be
promptly and continually deposited therewith. in order to
fulfill its investment responsibilities as set forth herein, the
Board shall be required to retain the services of the custodian
bank, an investment advisor registered under Investment Advisory
Act of 1940, an insurance company, or a combination of these, for
purposes of investment decisions and management. Such investment
manager shall have full discretion in the investment of assets
subject to limitation of this agreement and any guidelines as
prescribed by the Board.
(d) All funds and securities of the System may be
commingled in the Fund, provided that accurate records are
maintained at all times reflecting the financial composition of
the Fund, including accurate current accounts and entries as
regards the following:
(1) receipts and disbursements of the Fund;
(2) benefit payments;
(3) all cash investments realized and unrealized gains
or losses whatsoever;.
(4) all interest, dividends and capital .gains (or
losses) whatsoever attributable to contributions and deposits to
the Fund;
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City of Sebastian
1225 MAIN STREET 0 SEBASTIAN, FLORIDA 32958
TELEPHONE (407) 589-5330 o FAX (407) 589-5570
March 4, 1994
Ms.Linda Hinson, Accountant
Municipal Police Officers' and
Firefighters' Retirement Trust Funds
Division of Retirement
Cedars Executive Center
Building C
2639 North Monroe Street
Tallahassee, FL 32399-1560
Dear Ms. Hinson:
In response to your letter of February 11, 1994 regarding our 1993 Annual Report for the
Sebastian Police Officers' Pension Fund, I offer the following:
Page 3, Section 2 - You will be sent a copy of our Annual Audit as soon as it is completed
(approximately March 31, 1994).
Page 5, Line 4 - "explanation of this entry" -
• The City's report has been revised to delete line 4 as that contribution was for a prior year;
was not included in the total revenue as shown in line 10.
Page 5, Line 10 - "Sum of lines 1-9 is $122,525.72. Make appropriate correction."
• As explained in the preceding item, the amount of $2,003.28 was from a prior year and
was listed in line 4 in error by the City of Sebastian. When this line item is deleted, the
total revenue for page 5, line 10 is $120,522.44 as stated. A revised page 5 is included.
Page 6, Section 4 - "Investment expenses - explain item portion."
• Key Trust charges the Sebastian Police Officers' Pension Trust a quarterly investment
management fee of $187.50 for a total of $625.00 for the fiscal year. It is a fee for
investment (money) management services.
Page 14, Column (i) -"Verify that the salary amount is bi-weekly." . While the State Report form
clearly states* "monthly salary" for column (i) on page 14, -the City of Sebastian erroneously used
bi- -weekly amounts since our payroll data is compiled and reported in that manner.
ro"N Please advise if we need to revise page 14 to reflect monthly amounts.
(004� Ms. Linda Hinson, Accountant
Page Two
Finally, your second item listed as page 5, line 3 deals with a calculation schedule attached to the
State Report. I have attached as ENHD3IT A-1 and EXHIBIT A-2, pages from the last Actuarial
Report which gives the City detailed instructions on how to compute the required contribution
(City and State funds) as well as the employee amount. The City's calculation worksheet (named
EXEMIT B) did contain an error. The City did have an employer contribution requirement that
exceeded the actual contribution leaving an unfunded deficit of $15,661.10.
The City intends to fund this deficit during the current fiscal year by amending its 1994 fiscal year
budget to provide for a higher percentage contribution per pay period by the employer (City of
Sebastian). The interest to be paid to the Police Officers' Pension Trust will be based on the rate
of return for the period being earned by the Pension Fund. We expect to make the 1993 deficit
deposit on March 24, 1994 and will report these deposits separately to you..
I hope this corrects and clarifies the City of Sebastian's Annual Report for the Fiscal Year Ended
9-30-93.
Please call me at 407 - 589-5330 if you have any questions.
Sincerely,
i
Marilyn Swichkow, CPA
Finance Director
MS:mp
enc
OMS -P1 (5) Revised
09/93
•
k SEBASTIAN t
CITY NAME
Sebastian Police Officers' Retirement Trust Fund
'
NAME OF PENSION FUND
STATEMENT OF REVENUES, EXPENDITURES & CHANGES IN FUND BALANCE
FOR THE PERIOD ENDING 09 30 93
Month/Day/Year
REV NUES ,
1. CONTRIBUTIONS FROM POLICE OFFICERS (Fr om pg. 14)
34, 989.67
2.
CONTRIBUTIONS FROM STATE OF FLORIDA .(From pg. 6)
18, 463.51 • *
3.
CONTRIBUTIONS FROM CITY (From pg. 6)
34, 962.44
4.
CONTRIBUTIONS FROM CITY - FOR POLICE OFFICERS
.
.r•
S.
BUYBACKS/REPAYMENT OF CONTRIBUTIONS
471.42
6.
interest for Line 2
7.
UNREALIZED GAINS/LOSSES _
8.
INTEREST AND DIVIDENDS _
24, 912.29 --
9.
GAIN FROM SALE OF INVESTMENTS
6; 723.11 •'
120,522.44
10, -
TOTAL REVENUE
EXPENDITURES
11.
RETIREMENT PENSION PAYMENTS (From pg. 12)
12.
DISABILITY PENSION PAYMENTS (From pg. 12)
13.
BENEFICIARY PENSION PAYMENTS (From pg. 12)
-
14.
TOTAL PENSION PAYMENTS (From pg. 12)
15.
TERMINATION PAYMENTS ( From pg. 13)
2,011.83
16.
INSURANCE PREMIUM PAYMENTS
17.
EXPENSES (From pg. 6)
625.00
18.
19.
20.
LASS FROM SALE OF INVESTMENTS
2,636.83
21.
TOTAL EXPENDITURES
22.
NET INCREASE OR (DECREASE) FOR THE YEAR
117,885.61
23.
FUND BALANCE AT BEGINNING OF YEAR: October 1 19 92
245.798.00
September 30 93
p 19
363, 683.61
•24.
FUND BALANCE AT END OF YEAR: ,
*
Money received not deposited in proper time frame
due to personnel changes -in Finance Dept.
f�
OMS -P1 (5) Revised
09/93
(6) Revised
DMS-Pl
' 1. TOTAL CALENDAR YEAR POLICE DEPARTMENT PAYROLL: $ 960 ,167.29
* * IiiPORTANT * *
This .figure must be on a calendar year basis. Police Department Payroll -
Police
(pleaseaexplainlspatchers,
includes a7 employees oig i an
police officers, etc.).
last year,ment
2. STATE OF FLORIDA PREMIUM TAX MONEX
Amount received during Reporting Period: $
94
18,463.51 -
Date deposited into Police Pension Fund:01 is
Month/Day/Year
3. CITY CON'T'RIBUTION
Data of Deposit Amount
Date of Deposit
Amount
10-09-92 1211.43
04-09-93
1276.91
-V284_4'
10-23-92 1183.6
05-07-93
1320.51
11-06-92 1339.11
• 1360.39
n6-04-93
06-04-93
1305-66
1498.02
.11-20-92 �
�n
06-19-93
1266.29
z•,,,n•, �.5fi�
12-18-92 1231.13
449 as
07-02-93
07-20-93
1621.47
-s 31
01-15-93 1353.07
JIM; q3
97-29-93
08-11-93
1L14.U1
1252.18
U-03_93 _
02-17-93 1270.21
- -
09-13-93
1385.44
02-26-93 1585.96
_ -
15
03-12-93 73W1411.54
03-26-93 TOTAL CITY CONTRIBUTION
( Page St
Line 3 )
34, 962.44
4. DETAIL OF EXPENSES
ADMINISTRATIVE EXPENSES
I° Item Amount Paid
NI
Item
Amount Paid
Sub -Total
Admin. Expenses
INVESTMENC EXPENSES
• Item Amount Paid
Item
Amount Paid
Administrative fee 187.50
- 187.50
250.00
Sub -Total
Invest. Expenses
625.00
TOTAL EXPENSES
625.00
(Page 5, Line 17)
(6) Revised
DMS-Pl
CITY OF SEBASTIAN POLICE PENSION TRUST
CITY CONTRIBUTION REQUIREMENT CALCULATION FYE 9-30-93
total required contribution:
,tal annual payroll of covered members
at beginning of year
% of payroll
total required contribution
less employee contributions
City required contribution
less State contribution
Balance = City requirement
less City actual contribution
City deficit
$654,568.65 Note: This amount does not include Martin Miller
or James Moran who were not employed at
15.9% the beginning of the year.
$104,076.42
(34,989.37)
69,087.05
(18,463.51)
$50,623.54
(34,962.44)
$15,661.10
(001"N, EXHIBIT B
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