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06-04-2012 Fire Pension Meeting CITY OF CLERMONT FIREFIGHTERS PENSION BOARD OF TRUSTEES MINUTES 9:00 A.M., MONDAY, JUNE 4, 2012 The Clermont Firefighters Pension Board of Trustees met in a regular meeting on 06/04/2012 at Fire Station No. 1. CALL TO ORDER Meeting called to order at 09:00 AM by Secretary Paul Anderson in absence of Chairman MEMBERS PRESENT Sy Holzman, Judd Lent, Dean Lubinbuhl, Paul Anderson, Joseph VanZile (representing City) Members Absent: Frank Maglione Visitors Present: Paul Shamoun (Florida League of Cities pension management representative), Carle Bishop (Fire Chief) Paul Shimone introduced himself to all in attendance. APPROVAL OF MINUTES Approval of the Minutes of the Firefighters Pension Board of Trustees Meeting held March 5, 2012; motion made by J. Lent for approval, seconded by D. Luginbuhl, no discussion, passed unanimously. REPORTS • Approval of Firefighters Pension Plan Expenses Report—September 6, 2011 —June 3, 2012 Copies of expense report distributed by J. VanZile. Expense report explained by J. VanZile and P. Shamoun. Explanation given that this quarter expenses higher due to annual liability insurance fee for Board of Trustees ($1,950.54), annual administrative fee ($1,000), as well as bi-annual actuarial valuation and individual member benefit statement fees ($10,312.50)taken out within the last quarter. Motion to approve expense report made by Sy Holzman, second by J. Lent, no further discussion, approved unanimously. OLD BUSINESS • Discussion of Firefighters Pension Plan Investment Performance Pension plan investment performance explained by P. Shamoun, who also discussed our plan performance in general and compared to other pension funds around the state. J. Lent shared some information from the state pension trustee's training seminar that he attended in Tallahassee. He also shared that he spoke with Laura Underhill, the Florida League of Cities contact for Clermont FF's Pension Fund. The Board now has the contact information for Laura Underhill for any future needs or questions regarding the Clermont FF's pension plan. P. Shamoun discussed Clermont FF's Pension Fund and explained that Clermont is a member of the Florida Municipal Pension trust Fund (FMPTF), a group that is managed by the Florida League of Cities and under the oversight of a board made up of elected members who are elected by representatives of governing bodies of participating pension plans. More information on the FMPTF and our plan fund investments can be found at www.FLCretirement.com at The "reporting"tab on that web site. • Discussion of Florida League of Cities Pension Plan Administrative Fees P. Shamoun explained that the administrative fees for our plan fluctuate based on the dollar amount in the fund. He also explained that last quarter's report is higher than others due to the liability insurance fee for the Board of Trustees that comes out annually, annual administrative fee, and the actuarial valuation and individual member benefit statement fees that only come out every two years. Sy Holzman had to leave the meeting for another scheduled appointment after the administrative fees discussion. NEW BUSINESS • Selection of Chairman Floor opened for nominations with a single nomination provided; J. Lent nominated by D. Luginbuhl, seconded by P. Anderson. J/ Lent accepted nomination followed by unanimous vote for him as Chairman. • Discussion of AXA Advisors, LLC Request to Present to the Board Discussed this request and the pros and cons of the possibility of switching to another plan administrator or just an investment manager. There currently is no way to separate the plan administrative and management functions from the investment functions, with the Florida League of Cities continuing with plan administration and management and someone else providing fund investment services. There was general discussion on the performance of not only Clermont's funds, but other municipal funds that are managed by FLC as well. It was the general consensus of the Board that FLC has done an excellent job with our plan in the past and there is no reason to believe that will not continue in the future. There is also no reason to believe that anyone else would do any better for our plan. From the information provided by AXA, their company would only provide investment and portfolio management services for certain portions of our investments and would not provide total plan management, including accounts payable, management of income from state 175 funds, management of bank accounts, etc. that FLC currently does. It was the general consensus of the Board that it is not in the best interest of the Pension Plan at this time to piece-meal plan management and administration between multiple vendors. Prior to leaving the meeting, S. Holzman commented that he thought we need more information and data from AXA or any other company before a presentation that was leading towards using the services of any company or organization other than FLC. Motion by J. Lent, second by P. Anderson, that Clermont FF's Pension Board of Trustees is not interested in a presentation from AXA or any other vendor that would lead to switching from FLC at this time; passed unanimously. COMMENTS FROM BOARD OF TRUSTEES MEMBERS AND OTHER TOPICS FOR THE GOOD OF THE BOARD J. Lent and P. Anderson brought up previous proposals for pension plan enhancements and increased benefits for discussion and requested clarification from P. Shamoun and J. VanZile on process to revisit those proposals. P. Shamoun and J. VanZile both commented that any plan enhancements or changes to benefits are topics of negotiations due to Clermont FF's being represented by CBA. Any changes to pension benefits or to plan must be requested through CBA negotiations. J. Lent asked if Board members were interested in looking at options for different plan administrators and consultants. D. Luginbuhl stated possibly in the future, but not now; J. Lent agreed. P. Anderson not interested after listening to explanations by P. Shamoun regarding FLC as current plan administrator/consultant. D. Luginbuhl requested to include discussion on pension plan document language on agenda for next Pension Board meeting. He indicated that there is language in several areas of plan document that he feels could use More clarification or definition added. J. VanZile will compile list of concerns or questions, forward to FLC for explanation/clarification/recommendation on revisions to present at next Pension Board meeting. J. Lent proposed scheduling a meeting with ALL plan members for a representative from FLC to present explanation of benefits as well as question and answer period. All Board members in attendance agreed and requested J. VanZile to schedule meeting for all plan members to attend, possibly after next Pension Board meeting. Next Pension Board of Trustees meeting scheduled for 09/10/2012 at 09:00 AM, Fire Administration Conference Room. ADJOURN Motion to adjourn by J. Lent, second by D. Luginbuhl, unanimous at 10:42 AM Please note: In accordance with Florida Statute 286.0105, Any person who desires to appeal any decision at this meeting will need a record of the proceedings and for this purpose may need to ensure that a verbatim record of the proceedings is made which includes the testimony and evidence upon which the appeal is based. In accordance with Florida Statute 286.26: Persons with disabilities needing assistance to participate in any of these proceedings should contact Paul Anderson, Clermont Fire Department, 352-394-7662, at least 48 hours in advance of the meeting.