12-13-2010 Fire Pension Meeting City of Clermont Firefighters Pension Plan Board of Trustees Meeting Minutes
December 13,2010
• Meeting called to order at 10:00 at Clermont Fire Department Administration Conference Room
• Meeting Attendance:
o Paul Anderson
o Thomas Bennett
o Bernie Lee Drew
o Frank Maglione
o Sy Holzman
o Joseph VanZile,City of Clermont Administrative Services Director
o Paul Shamoun, Pension Plan Consultant
• Reviewed May 12,2010 meeting minutes; suggested revision and approved as amended
• Reviewed September 27,2010 meeting minutes
o Revision to spelling of name for Frank Maglione and Sy Holzman
o Minutes approved as corrected.
• Open nominations for Chairman: L. Drew nominated T. Bennett, 2' by F. Maglione, passed
unanimously.
• Open nominations for Secretary;T. Bennett nominated P.Anderson,2nd by L. Drew, passed
unanimously.
• Paul Shamoun went over pension fund performance report for quarter ending September 30,
2010.
o Spoke about funding of benefits and how the Chapter 175 funds work.
o Spoke about the concept of a "Share Plan" using the Chapter 175 funds that creates a
separate account for each plan member.The total Chapter 175 distribution for the year
is evenly,divided between all plan members active in the plan at the lend of the year and
deposited into their individual account. This satisfies the statutory requirement for the
175 funds to be used for improvements,enhancements,and/or additions to benefits
and doesn't create the possibility of a future financial impact to the city in the area of
guaranteeing funding for benefits in the plan as other improvements may.
o General discussion on clarification of"Share Plan" use of 175 funds and how credits
would be applied to current employees for distribution of current balance in 175
account.
• Funds existing in 175 account at time of creation of"Share Plan'would be
divided between current plan members by awarding points to individuals based
on years of service,then calculating the amount each point is worth by dividing
i
the total points into the fund balance.
• P.Anderson questioned if previous Volunteer years as members of the plan
would be counted towards points for distribution of current fund balance,since
some of those funds were deposited into 175 account prior to hiring full-time
employees. Indicated that only a few members remain members of plan that
had Volunteer time. •
• T. Bennett started discussion on pension board and pension fund consultants and advisors
o P.Shamoun explained role of Pension Board of Trustees and Florida League of Cities.
• Trustee liability insurance is provided through the Florida League of Cities for the Pension Board
of Trustees, including the board as a whole as well as individual members in the amount of
$1,000,000.
• J.VanZile explained how new members are provided information on the pension plan
o They are provided a copy of the adoption agreement
o P.Shamoun will put together a synopsis of benefits to provide to new members to
comply with "Summary Plan Description" requirement.
• T. Bennett began discussion on compliance with statute regarding use of Chapter 175 funds
brought up by Local 4350 members who attended the state pension training session.
o P.Shamoun explained process for use of 175 funds.
o Explained funds will not be cut off if not used.
o Explained will not lose funds if not used;will remain in account.
• Discussed scheduling next meeting for mid-March,2011
• Meeting adjourned at 11:35 AM.