Fort Walton Beach Ordinance — 1788 Amend General Employees Pension - Dep & Inv of Monies & Securities — reading text

PROPOSED ORDINANCE AMENDING THE CITY OF FORT WALTON BEACH GENERAL EMPLOYEES' RETIREMENT PLAN DEPOSIT AND INVESTMENT OF MONIES AND SECURITIES) ORDINANCE NO. 1788 AN ORDINANCE OF THE CITY OF FORT WALTON BEACH, FLORIDA, RELATING TO THE GENERAL EMPLOYEES' RETIREMENT PLAN; AMENDING SECTION 17- 12.1 TO PERMIT INVESTMENT IN MUTUAL FUNDS; AMENDING SECTION 17- 12. 1 TO PERMIT THE AGGREGATE OF THE INVESTMENT IN CAPITAL STOCK OF ANY ONE ISSUING COMPANY TO NOT EXCEED, AT COST, 65% OF THE ASSETS OF THE FUND; AMENDING SECTION 17- 12. 1 TO REMOVE REFERENCE TO THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION; PROVIDING A SEVERABILITY CLAUSE; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA: Section 1.Authority & Intent The City Council has authority as Trustees for the City of fort Walton Beach General Employees' Retirement Plan and pursuant to the provisions of the Plan to amend the Plan to facilitate consistency with current law and current investment policies as necessary. Section 2. Amendment of Plan Section 17- 12. 1 of the City of Fort Walton Beach General Employees' Retirement Plan is hereby amended to read as follows: Sec. 17- 12. 1. Deposit and investment of monies and securities. 1) All funds and securities paid into or held by the pension fund shall be deposited with the finance director who shall be the treasurer for the board of trustees of this pension fund, and the treasurer shall keep the same in a separate fund, a commingled account, or accounts in which the funds are clearly identified as funds and securities of the General Employees' Retirement Fund, and be liable for the safekeeping of the same, under the bond given him by the City, in the same manner and to the same extent as he is liable for the safekeeping of the funds as are now provided by law. 2) The board of trustees shall set the investment policy, and shall permit investment in any of the following: a) Time or savings accounts of a national bank or a state bank insured by the Federal Deposit Insurance Corporation. b) Obligations of the United States or obligations guaranteed as to principal and interest by the government of the United States. c) Bonds, stocks, mutual funds, or other evidences of indebtedness issued or guaranteed by a corporation organized under the laws of the United States, any state or organized territory of the United States, or the District of Columbia, that are rated " BAA" or better by Moody' s or Standard & Poor' s rating services. d) Stocks meeting the following guidelines: 1. The corporation is listed on one or more of the recognized national stock exchanges; and 2. The board of trustees shall not invest more than five percent ( 5%) of its assets in the common stock or capital stock of one issuing company, nor shall the aggregate investment in anyone issuing company exceed five percent ( 5%) of the outstanding capital stock of that company; nor shall the aggregate of its investments exceed, at cost, 65%_ of the assets of the fund. e) Investment accounts maintained by major national banks and by major insurance companies given the top rating by Best's or are in the upper tenth (loth) percentile of all insurance companies as determined by admitted assets in which the investment media are limited to stocks, bonds, real estate, commercial paper, direct placement investments and combined investment media. If investment is made in stock accounts, the same limitations shall apply as under item ( 4) above. 3) All monies paid into or held in the pension fund shall be invested by the treasurer according to the investment policy set by the trustees. The treasurer shall invest fund assets as to provide for sufficient liquidity to meet all payments required to be made under terms of this Plan. 2-  4) The treasurer shall be responsible for maintaining records of individual member contributions in order to satisfy the requirements of various sections of this Plan including the apportionment of interest and to establish accounting procedures which will isolate the assets of the fund created by this Plan from assets of funds created by any other pension plan where they shall exist in commingled accounts or investment media. Section 3. Conflict All ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 4. Severability If any section, subsection, sentence, clause, phrase of this ordinance shall be held invalid by any court, administrative agency, or other body with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phrases under application shall not be affected thereby. Section 5. Effective Date This Ordinance shall take effect immediately upon approval by Council and signature by the Mayor. aopted 11 {}tJ1}' J bAek Mike Anderson, Mayor Attest: H~~~ Reviewed and approved as to legal sufficiency: w. ~. Linn, Pension Fund Attorney DISPOSITION 3-  City of Fort Walton Beach L- .\~" America' s Most Beautiful Beaches I ~ , ,~ G \. \: 1A . c" r'~\ 107 Miracle Strip Parkway, SW * P. o. Box 4009 * Fort Walton Beach, F132549 W7 Y,' 7' ,~y. -. V/' . 850) 833- 9500 * Fax ( 850) 833- 9640 I,' /' www.fwb. org TDD ( 850) 833- 9925 Helen Spencer City Clerk 850) 833- 9509 hspencer@fwb. org January 15, 2009 James W. Linn, Pension Attorney Lewis, Longman & Walker, P. A. P. O. Box 10788 125 S. Gadsden Street, Suite 300 Tallahassee, FL 32302 Dear Mr. Linn: Enclosed please find Ord. 1788 adopted by City Council on January 13, 2009 relating to the City of Fort Walton Beach General Employees' Retirement Plan amending the deposit and investment of monies and securities. Please sign page 3 and mail the original page to me for our records. If you have any questions, please contact me at 850- 833- 9509. Sincerely, Helen Spencer City Clerk Slm