FINANCIAL MATTERS

Monitor monthly custodian reports and other activities:

• Were employee and employer contributions transferred to custodian for investment on a timely basis?
•  Do assets listed by custodian agree with assets shown on investment manager reports?
• Are retirement payments, disbursements for fund expenses and any other deductions from assets correct?
• Have Form 1099s been issued when due?
• Are custodian’s fee invoices in agreement with terms stated in its contract for services?

Review Investment Manager and Performance Monitor reports:

•  Is the asset allocation in line with Investment Policy Statement?
• Are the quality and type of assets in line with Investment Policy Statement?
• Has the custodian informed the manager of new money (contributions and other cash received) for investment?
• Does there appear to be too much cash and cash equivalents that have not been explained to the Trustees?
• Are the fee invoices in agreement with terms stated in their contracts for services, and are the assets on which the fees are based consistent with balances reported by custodian?

Determine that the Trustees have evaluated the services of custodian, investment consultant and manager periodically, say, every three years, or if the service or performance do not meet expectations.  Assist in RFP process if desired; arrange special meetings for personal presentations and provide Trustees with a follow-up summary to assist them in making final decision.  Is a signed agreement, approved by Fund attorney and encompassing current Investment Policy Statement, on file for each manager and financial service provider?

Annual audit:

• Maintain records of expenses paid during the year with documentation of Trustees? approval and make available to auditor at end of plan year.
• Provide managers and custodians reports to auditor for confirmation of accuracy.
• Assist auditor in obtaining all records necessary to perform the audit.
• Assist auditor in determining accuracy and transfer of contributions.
•  Distribute auditor’s report to Trustees and all interested parties when received

COORDINATION WITH ACTUARY

Provide data required by actuary to perform actuarial valuation promptly following close of plan year.  Such data will include:

•  Listing of current active employees, noting new hires and terminations occurring in the plan year.
• Demographics: Social Security numbers, dates of birth and dates of hire.
• Annual salaries and contributions for the year by employee.
• Records of contributions refunded to terminated non-vested employees.
• Status of terminated vested employees who did not withdraw contributions.
• Record of Early, Normal or Disabled retirees in payment status at end of plan year, with data on beneficiaries for those having selected Joint & Survivor or 10 Years Certain options, as well as deaths in plan year.
• Current audited financial statement.
• Provide actuarial valuation to Division of Retirement for Chapter 175 & 185 Funds.
• Arrange meeting with Trustees and Actuary to review valuation and any proposed changes in actuarial assumptions.
• Distribute annual pension benefit statements to participants.

ACTIVE PARTICIPANTS

Communication Materials:

• Summary Plan Description as required by Florida law for public pension plans at least every other year.  SPD must be furnished to all new hires.
• Updated financial and actuarial information, as well as any changes, must be provided for the years SPD is not re-printed.
• Annual pension benefit statements following actuarial valuation.
• Newsletters periodically as desired by the Trustees.
• Reminders to report change of address, marital status or job classification.
• Explain DROP programs if available under the plan.

Early and Normal Retirements:

• Provide applications and other necessary forms.
• Explain benefit options and provide estimates of benefits payable.
• Collect birth certificates, marriage certificates and other necessary documents from applicants and beneficiaries.
• Obtain final salary information from employer to expedite final benefit calculation.
• Present to Trustees for approval
• Set benefit up for payments if administrator is responsible for check issuance.
• If custodian issues checks, advise custodian of check amount, inception date, deductions such as federal income tax or insurance premiums, ACH information for Direct Deposit payments, date of final check if period certain has been elected.

Disability Retirements:

• Coordinate medical examinations by specialists according to nature of disability.
• Ascertain that applicant meets definition of total and permanent disability stated in the plan.
• Present to Trustees for approval.
• If denied, follow plans provision for claim denial and appeal.
• If approved, take all other steps for processing as for early and normal retirements.
• Monitor continuation of or recovery from disability as stated in the plan.

RETIRED PARTICIPANTS

• Respond to calls for assistance: lost check, change of address, change of bank for direct deposit and changes in withholding tax or insurance premium deductions.
• Provide same communication materials furnished to active employees.
• Determine that annual Form 1099-R is sent and correctly reflects retiree?s pertinent information.
• Administer COLA provisions if applicable.

COORDINATION WITH PLAN SPONSOR (e.g., City Hall departments)

Finance Department:

• Receive payroll data via modem, disk or hard copy
• Provide information re. expenses paid by plan for posting to general ledger
• Exchange of required information during annual audit

City Clerk’s Office:

• Furnish minutes and other requested documents to records custodian
• Furnish agendas and meeting Notices as specified by ordinance or other rules of procedure applicable to employee benefit plans