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HomeMy WebLinkAboutBack-Up DocumentsSUMMARY OF THE MONEY MANAGERS MEETING OF THE CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST THE ROSE GORDON BUILDING 2901 BRIDGEPORT AVENUE WALDEMAR LEE CONFERENCE ROOM COCONUT GROVE, FLORIDA 33133 TELEPHONE: 305-441-2300 I FAX: 305-441-2307 WWW.GESE.ORG FRIDAY, MARCH 22, 2024 9:34 AM MEMBERS: LUIS FERNANDEZ (Present) CLARENCE GRAVES (Present) PORFIRIO JIMENEZ (Absent) MARY LUGO (Present - Remote) SEAN MOY (Present - Remote) ANN-MARIE SHARPE (Present) JOE SIMMONS, JR. (Present) COREY TAYLOR (Present) OLGA TORRES (Present - Remote) ALSO PARTICIPATING: EDGARD HERNANDEZ MARLENE JANE FORTUNA LEVY EDWIN MIRANDA ALIBEL SANCHEZ RONALD A. SILVER, ESQ. HILDA THOMPSON TODD GREEN ANDREW T. PHILLIPS VANESSA HERNANDEZ NELSIA KING YVES LOUISSAINT GEORLIAM RODRIGUEZ GIANNINA SANCHEZ ENRIQUE RAMOS WALLY WILSON PETER SCHWEDOCK MICHAEL BARNES *Other individuals were present; however, their signatures were illegible. 1 ADMINISTRATOR'S REPORT: Proposed Annual Comprehensive Financial Report (Draft) for fiscal year ended September 30, 2023 — Mr. Hernandez stated that this report is more comprehensive than the report that auditors presented at the last meeting. At the last meeting they presented only the performance of the plan as it relates to the audit, internal controls, investments, and the actuary. This comprehensive financial report was submitted to the GFOA. It has five sections. The introductory section which the initiative on that is to maintain a cyber security posture with a risk -based strategy which is Invest, Protect, Detect and Restore. It is important to have a business continuity plan. We have a Mock Event, where we will mock that we have a hurricane to ensure that we provide all the benefits as they are due to the retirees and continue to maintain data integrity in the Trust. The second section is the financial section. Part three is the investment section with the audited performance results. GESE performance was 13.4, Staff was 15.3. The plan is actuarially sound with changes in the discount rate going from 7.45 to 7.0. The last section is unaudited, and it shows statistics on how many people choose the different types of retirement options and the benefit amounts. This eventually makes it to the experience study. The benefit level total is the statistical analysis of the average retirement benefit for the fiscal year 2023 which is $3,495.00 per month. It increased from $3,370 last year to $3,495, up an average of $125 and perhaps this is a reason to look into ways to improve the COLA for retirees. Mr. Hernandez requested a motion to approve the reports to submit to the GFOA. Trustee Graves moved to approve. Trustee Fernandez seconded the motion. The motion was unanimously approved. Trustee Jimenez was absent. No other discussion took place. This report concluded. Proposed GESE Plan budget for fiscal year October 1, 2024, to September 30, 2025 — Mr. Hernandez stated that the budget supports 4,191 members and we have approximately as of last fiscal year $891 million in the fund. We have the first section is the wages to the staff of the Trust. The second section is the accrued payout, paid time, sick time, vacation balance payout, and overtime. The third section is the car allowance, payroll taxes, retirement contributions, life insurance, and workers' compensation. The fourth section is the professional services provided by the consultants and others. The fifth section is the office and administrative expenses such as travel, training, communications. The last section is insurance and occupancy, which includes utility, rentals, IT, machinery, and equipment. Mr. Hernandez is proposing a 5% COLA to offset inflation in addition to the anniversary 5 SUMMARY OF THE MONEY MANAGERS MEETING OF THE CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST THE ROSE GORDON BUILDING 2901 BRIDGEPORT AVENUE WALDEMAR LEE CONFERENCE ROOM COCONUT GROVE, FLORIDA 33133 TELEPHONE: 305-441-2300 FAX: 305-441-2307 WWW.GESE.ORG FRIDAY, MAY 31, 2024 9:34 AM MEMBERS: LUIS FERNANDEZ (Present - Remote) CLARENCE GRAVES (Present -Remote) PORFIRIO JIMENEZ (Late Attendance - Zoom) MARY LUGO (Present - Remote) SEAN MOY (Present - Remote) ANN-MARIE SHARPE (Late Aliival - Present) JOE SIMMONS, JR. (Present) OLGA TORRES (Present - Remote) ALSO PARTICIPATING: EDGARD HERNANDEZ MARLENE JANE FORTUNA LEVY EDWIN MIRANDA ALIBEL SANCHEZ RONALD A. SILVER, ESQ. HILDA THOMPSON TODD GREEN PETER SCHWEDOCK, ESQ. GARLENE FELIX-DUNOIS LARRY BROWN CHRISTOPHER BARNETT VANESSA HERNANDEZ NELSIA KING YVES LOUISSAINT GEORLIAM RODRIGUEZ GIANNINA SANCHEZ ENRIQUE RAMOS WALLY WILSON JOSE FERNANDEZ SOLOMON CARR FELICIA ARCHIE BRIAN HARVEY MICHAEL SEBESTA *Other individuals were present; however, their signatures were illegible. 1 Motion passed unanimously. Some more discussion took place. No further action was taken. Mr. Silver added that we received an IRS amount due notice that was handled by Mr. Tarcza and Mr. Klausner. Mr. Hernandez stated that the issue has been resolved. But the amount due has not been updated with the IRS. No action was taken. This item concluded. ADMINISTRATOR'S REPORT: Proposed Annual Disaster Recovery Plan — Mr. Hernandez stated that the Disaster Recovery Plan is used for unexpected events to maintain continuity of the GESE Trust operations, to pay retirees regardless of what may occur in South Florida. This is typically used for hurricane season and recently we were able to implement parts of it during COVID. There are minor edits and updates to the plan documents such as internet connectivity and backup provider. The petty cash amount increased from $250 to $300 for any unforeseen expenses, such as parking and certified mail postage. Some discussion took place. Vice -Chair Simmons moved to approve. Trustee Graves seconded the motion. The motion was unanimously approved. No further action was taken. This report concluded. Staff Cost of Living Allowance — Mr. Hernandez requested a six percent cost of living increase for the Staff to bring parity between the city employees and the GESE Staff. Mr. Hernandez stated that the City Manager gave an increase to the Unclassified/Executive employees effective April 1st. Mr. Hernandez clarified that the increase that was approved at the previous board meeting was to be effective next fiscal year. Mr. Hernandez stated he would make an adjustment to the budget. Vice -Chair Simmons moved to approve, and Trustee Lugo seconded the motion. Chair Moy requested the Staff COLA increase be made retroactive to April 1st. Vice -Chair restated his motion to approve the Staff cost of living increase effective April 1, 2024. Trustee Lugo seconded the motion. Motion passed unanimously. Mr. Hernandez thanked the Board for their support. Some discussion took place. No further action was taken. This report concluded. Amended Agenda Item — Local 1907 Impact Statement - Mr. Hernandez informed that the impact statement was prepared by Mr. Todd Green, the actuary. This is for the multiplier change for Local 1907 Bargaining Unit going from 2.25% for the first increase for the Staff. Chair Moy proposed a 6% COLA increase instead of 5% for the Staff. Some discussion took place. Mr. Silver stated he has not received any response from the new commissioners about setting up a meeting to go over the GESE Pension Plan. Chair Moy stated that the meeting must be scheduled in person at City Hall. Trustee Fernandez commended Chair Moy and Vice -Chair Simmons for going the extra mile for the plan members and offered to join them in the meeting with the new commissioners. Mr. Hernandez added that the additional 1% would increase the budget by $7,672.00. On the fringe benefits the only item that went up was the actuarial contributions as Todd reported last meeting. The contributions for the Staff plan went up due to the loss we had from a few years ago. No workers compensation. The cost of insurance is cheaper because the Staff has newer employees. Legal fees increased based on Mr. Silver's 5% increase. Mr. Schwedock is paid on a per case basis. Some discussion took place. Mr. Klausner and his firm are also included in the legal fees. This year we did the audit death. Next year we should see some savings there. Travel expenses increased as the Board approved more conferences for Trustees. Conferences and hotel lodging prices have increased. On communications it remains flat. We have decreased postage costs. Mr. Hernandez expressed the desire of the members to have certain plan features available online. The hybrid meetings have decreased costs as well. Insurance did increase and it is not expected to go down; roughly a 10% increase. The occupancy items went down by $40,000, mainly on the building; it went down from $153,000 to $135,000. Depreciation and machinery remained the same. The new proposed budget total amount is $3,193,544.00. The last item, which is non -budgetary, but it does affect the general fund was the employer contribution of $53,785,473. Thanks to the work the Unions have done, we may have to modify that actuarial funding for October 1'. Mr. Hernandez congratulated both Unions on negotiating the contracts for their employees. More discussion took place. Mr. Hernandez asked for a motion to approve the GESE budget as amended for $3,193,544.00. Trustee Taylor moved to approve. Trustee Graves seconded the motion. The motion was unanimously approved. Trustee Jimenez was absent. Some discussion took place. No further action was taken. This report concluded. Proposed Excess Plan budget for fiscal year October 1, 2024, to September 30, 2025 - Mr. Hernandez stated that the Excess Budget is an allocation budget. The administrative cost increased $5,544.00 because of the related GESE expenses increase. Vice -Chair Simmons moved to approve the proposed Excess Plan budget for fiscal year October 1, 2023, to September 30, 2024. Trustee Graves seconded the motion. The motion was unanimously approved. Trustee Jimenez was absent. No other discussion took place. This report concluded. 6