CC10-16-95AgendaWSLONG WOOD CITY COMMISSION
LONG WOOD CITY CO.viMI551ON CHAMBIftS
I'/5 W. WARREN AVBNUE
LONGWOOD, FLORIDA
WORK SESSION
OCTOBER 16, 1995 AGENDA 6.00 P.M.
Present: Mayor Bill Winston
Uepury Mayor Jim Carries
Commisioner Iris Benson
Commissioner Ron Sargent
W. Shelton Smith, Ciry Administrxtor
Richard S. Teylor. Jr_ City Attorney
Geraldine D- Zambri. City Clerk
Davn Jackson. Personnel Officer
Rhonda LedCOrd_ Purchasing Director
Mynna Kxs'tner, PE&SCO
Steven Brindle. ICMA
Absent. Commmssioner Annamenn Vaaa (ex used)
1. CALL TO ORDER.
Mayor Winston enlled z Work session to ordot xt 6:00 Ir.ln.
2. DISCUSS FLOI2IUA RETLREMENT OPTOUT PLANS.
Mot n by Con er Serer ouded by Con tisstoner 6enson. to
suspend the ru lesnl Carried by unani t aus voice vole.
Mr. Smith invoduced Myrna ICastner. representmive a1 PERSCO.
Ms. Kastnu~ briefly compared the Florida Retirement System to a PEBSCO defned
tn~bution AOlA lietircment. Mx Krvstnu advised that PEBSCO atrrendy works with 60
ui ~ end over ~t00 cities in the state. She said PEBSCO is z subsidiary of a nationwide
compmty and has been rated in the top 20 insmnnee eoinpanies in the country for safety.
Ms. Kastner then responded to 9uestions from the Commissioners- EVlaining the history
of contributions to tie Florida Retirement System vs. Ilse City being able to Fmedict the wst.
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adono ben,g ~e~ea. d an e~nployae Ian the coy. au ~nan yea oonmmued for ma. e~npmyee
ou hl remain wish nee Ciry, if vesmd. would go with nie ein ployee. She explained sli ai shls
plan would be e f01A and the wnployae weld also contribute, has having the deferred
amp plan available in she Ciry, is would be the better place for she ein ployee w wnsribu se
~s the non rribution made dy them is pax deferred. She agreed sh as mania Iefi by employee
who were nog ves~ed would allow the City nvo op lions, roll buck to the City or spread
bel.veen employees
Ms. Kas said Cher us Cnnds and provided she names and percen cages of
m `rpw yea sof.snme o(~hefu ads Thus mould he used far inves~ments. Fn rsher,
deias fed eral guidelines apply ~o ih is type of plan-
Steven Brindle. ICMA Retiremen~ Cory.. advised that a fOlA provides for foods ~a be Feld
st for pension or rci uente nt purposes lie advised there were two rypes of plans,
defined benefi~und defined consnbu lion plan. Defined con snbusion port~nble plan is where
you can fix your moat ribu Lion level. There are nvo types of money-purchase plan and
requires employer con u'ibu ~ion_ feed dollar or percentage. The other rypa is a proGi~
sharing pla n, em player uses discreiiouary wnl ribuiion. Not populm~wi~h employees- Mosi
ga win, non ey-purabaxe plan. 'f here a ~h ree types o[ c nribwions: employer
~ribus ~. also inployee ri ay have n mandated contribution. eisloer on a before or al'ter-
x basis' o vole nary co ~ribution which is on a after~ux basis. Many in Ciry have a
deferred tax plan and mass would prefer ~o coniribuie ~o it
Mr_ flrindle disco aced voting sch uln let. normal rmirem ens age, end loan features available.
A specialise in local govern inen~ plain Ise said the sit ies of Oviedo and Winter Park (h raving
joss wnverted from x detin ed- benefit plan ~o a defined- consrbntion pln n) have bosh, she
101 and-05'/ (deferred comp) plans. provided by ICMA and are happy ..~i il~ ICMA ICMA
provides seminars so the employees and provide a model portfolio for the employees.
Mr. Brindle Wien submiued an inforinn ~ional handom regard ing defin edcons bmion plans
to be dusrih oral io the Coin in fission.
M oiion by Com miszioner Benson ~o adjourn. Uied for lack o(nsecond-
Mr. brindle nd Ms Kas espond cd to qua rs from the Convnissioa Wish respec
so fees. Mr. Brindle sn id ICMA cli arges an annuel'employerfae of S1,000 charged quarterly'
a nd n52S an nimlawou rat-maintenu nee fee ah acged mtlie pa rticipnnt both pro abed. Any
on~er fee the i level. before e lags red iced. each having a
different invesvp ens exper , If x fund earns 10% th ai is ~Ilin~ par cu Tar expcirs
wish his wmpnny, 9%. busueneh invesnnen~ has a <I i([erens expense level.'There are no
Inads wish our progrnmx All fees eonie om before invesimenss are cred i~ed_ No mnt~er haw
the plan is designed. fees remain ilia same however, as she plan gets larger the employer
fee would aouiu lly go down-
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Ms. Kenner advised that f the sa wi,h YEBSCO i r how many
employees ,bore are. Annual fee sn$18 per employee and there is o up afroni se, up fee,
. Only other re c„[ly ai I.55, which u an asse, m No [ i For Fidellry
Magellan. I009e ih t,s up front c way. Tmdiiionallyn e. ive ruluced fees and
,c is pro,im,ed u,a, mere wui be a drop~~n asa reel for me new yor.
comnnss,nner omson moved mad9ovro. seconded by eom~mssioner sargen
AFler disaission wi,h regards to the scheduling established by the sc e For op,ing out of
FRS. ,he Commission egreeel to schedule a meeting at 6:30 p. n,. on Oc,ober 30. t99S, prior
o the 'I:OU p. m. special ine ting, n order to selec, a company to provide the alle,nalive
renteanen, plan.
,MO,ion w adjourn earriul by unanimous voice joie.
3. ADIOUNN. Meeting adjourned a, 'l:US p. m.
/~. ~~
wlliam L. winsron, Mayor
ATTEST:
c_~~~ 'r ~ ~w.,s(~
GeralAine D. Zambri. City Clerk
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