City of Lakeland Retirement Services Commission Presentation
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The document provides information about the City of Lakeland Retirement Services department. It summarizes the staff, core services, pension boards, eligibility requirements, and investment performance for the Employees' Pension, Police Officers' Pension, and Firefighters' Supplemental Pension plans. It also lists upcoming meetings and contact information for the Retirement Services department.
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City of Lakeland Retirement Services Commission Presentation
- 1. City of Lakeland Retirement Services Our Staff Jennifer Kerr, Director Dana Blydenburgh, Pension Benefits Manager Liz Rovaldi, Pension Benefits Generalist Debbie Stefanski, Pension Benefits Assistant Jonathan Brown, Summer Intern
- 2. ServiceOutputs Knowledgeable staff Guidance Personalization Quick turnaround Coach/advocate Timely & accurate information Privacy CORE SERVICE Retirement Enrollment & Benefit Services City of Lakeland Retirement Services
- 3. ServiceOutputs Help satisfy fiduciary obligation Accountability Communication Knowledge & resources Efficient & effective plan operation Personal service Accessibility CORE SERVICE Pension Boards & Policy Administration City of Lakeland Retirement Services
- 4. ServiceOutputs Timely Accurate Annual Audit Annual Valuation CORE SERVICE Financial Analysis & Reporting City of Lakeland Retirement Services
- 5. Employees’ Pension Board of Trustees 7 members = 2 appointed by Commission, 2 employee elected and the 7th member appointed by the Board Investment Committee 3 members
- 6. Employees’ Pension Eligibility All regular full-time employees & firefighters who are contributing to the plan
- 7. Employees’ Pension Normal Retirement Plan A (pre 10/2003) = Age 60 + 10 years – 3% FAC* x first 25 years, plus 1% FAC service 25+ years Plan B (post 10/2003 = Age 62 + 10 years – 2% FAC x first 10 years, plus 3% FAC for next 20 years, plus 1% FAC 30+ years *FAC = final average compensation
- 8. Employees’ Pension FY09 Results Loss due 0.40% investment return below 7.25% Partially offset by gains due to lower salary increases – 81.6% compared to 83.9% last year Net cumulative gain since 1996 is $(109,120,938)
- 12. Employees’ Pension Highlights from the past 2 years : – January 2009 hired new investment consultant – Replaced 5 managers and completely restructured the domestic equity portfolio along with the international mandate – The plan has hired 3 new domestic equity managers and 2 international managers – For the past 7 years the plan has underperformed the benchmark by 1.08%, ranking in the 77th percentile. However, since we’ve made these changes the plan (past 12 months) has outperformed the benchmark by 70 bps, net of fees, and ranked in the top 25 percentile of it’s peer universe – Adding additional asset classes to provide the portfolio better diversification – The Board facilitated in a massive restructuring of the fund with the removal of $52 million in Police funds. We used this transition to rebalance the portfolio and fund new managers
- 13. Police Officers’ Pension Available July 1, 2010 5 members = 2 appointed by Commission, 2 employee elected and 5th member appointed by the Board
- 14. Police Officers’ Pension Normal Retirement –Age 55 with 10 years of service, or –25 years of service regardless of age Benefit – 3% FAC
- 15. Police Officers’ Pension Asset Allocation
- 16. Police Officers’ Pension Highlights over the last 2 years: – We’ve restructured their policy to include additional asset classes and to incorporate new state legislation regarding scrutinized companies. – We’ve hired complementary managers to the existing lineup for better diversification and to lower overall volatility. – We are currently doing a search for a complementary international manager to work with Barings – The Board hired two real estate managers to better diversify the fund and to take advantage of market opportunity – Since we’ve implemented the new strategy and the new managers have been up and running the plan has outperformed the index by close to 50 bps and ranked in the top 35th percentile.
- 17. Firefighters’ Supplemental Pension Normal Retirement – Age 55 and 15 years of service Benefit – $670/month
- 18. Firefighters’ Supplemental Pension Loss due to 3.4% investment return below 7.5% – Partially offset by gains due to lower salary increases 106.45% compared to 104.98% last year – None provided
- 19. Firefighters’ Supplemental Pension Asset Allocation
- 20. City of Lakeland Retirement Services Upcoming… –Next Employees’ Pension Board Meeting: June 22, 2010 –Joint Meeting with Commission and Pension Boards – Modified Firefighter Pension –Employee/Retiree Newsletter Contact Us… Department of Retirement Services 500 N Lake Parker Avenue Lakeland, FL 33801 863/834-8790 www.lakelandgov.net
- 21. City of Lakeland Retirement Services
Editor's Notes
- Located at the Civil Service Building on N. Lake Parker Avenue
- -71 retirements FY09 -57 EPP -5 Fire -9 Police -Rolled out the Retiree Health Program where all employees now contribute ½ percent to either the “trust” (pre 2003) or the RHS (post 2003)
- Meetings held monthly – find our schedule online Next meeting: Tuesday June 22, 2010 @ 8:30am Employee Relations Conference Room, 3rd floor City Hall
- Define FAC
- For the month ending May 31, 2010 The total fund was down -5.24% But up 3.52% for fiscal year to date
- Over the past 2 years the Employees Fund has been very busy restructuring the portfolio. Below are some of the highlights. We’ve replaced 5 managers and completely restructured the domestic equity portfolio along with the international mandate. The plan has hired 3 new domestic equity managers and 2 international managers. For the past 7 years the plan has underperformed the benchmark by 1.08%, ranking in the 77th percentile. 1 is the best and 100 is the worst. However, since we’ve made these changes the plan (past 12 months) has outperformed the benchmark by 70 bps, net of fees, and ranked in the top 25 percentile of it’s peer universe. We modified the IPS to include additional asset classes and provide the portfolio better diversification. We’ve recently added core and value added private equity real estate to the overall asset allocation. We think know is a great time to add this asset class to the portfolio for additional income and future upside opportunity. We’ll rebalance from our fixed income portfolio that is up almost 23% the past 12 months. The Board facilitated in a massive restructuring of the fund with the removal of $52 million in Police funds. We used this transition to rebalance the portfolio and fund new managers.
- Modified plan How benefit changed from old plan Assets/liabilities that moved from EPP – 12.66% or $52m
- Before June 1, 2009 and as members of the Employees’ Pension… Age 52 + 10, but penalties from age 60
- For the month ending May 31, 2010 The total fund was down -4.57% But up 3.64% for fiscal year to date
- We’ve restructured their policy to include additional asset classes and to incorporate new state legislation regarding scrutinized companies. We’ve hired complementary managers to the existing lineup for better diversification and to lower overall volatility. We’ve hired Westwood All Cap Value, Sawgrass Concentrated Growth and Cornerstone. We are currently doing a search for a complementary international manager to work with Barings The Board hired two real estate managers to better diversify the fund and to take advantage of market opportunity Since we’ve implemented the new strategy and the new managers have been up and running the plan has outperformed the index by close to 50 bps and ranked in the top 35th percentile.
- “supplemental” Still members of EPP, ongoing negotiations for “modified” plan Plan provisions 9.67% liabilities moving from EPP, about $$40m
- “supplemental” Still members of EPP, ongoing negotiations for “modified” plan Plan provisions Investment results 9.67% liabilities moving from EPP, about $$