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03-20-2014 Fire Pension Meeting City of Clermont MINUTES FIREFIGHTER RETIREMENT PLAN BOARD OF TRUSTEES MEETING March 20, 2014 The Firefighters Retirement Plan Board of Trustees met in a regular meeting on Thursday, March 20, 2014 in the Council Chambers at City Hall Firefighters' trustees present: Judd Lent, Joe Sylvestris and Sy Holzman. In addition: Finance Director Van Zile and City Clerk Ackroyd. Attorney Steve Cyphen and Paul Shamoun,Florida League of Cities,was present via conference call. Board Member Adam Watkins was absent. Chairman Lent called the meeting to order at 11:06am. City Clerk Ackroyd administered the oath of office to Jim Purvis PUBLIC COMMENTS Chairman Lent opened the meeting for public comments. There were no public comments. MINUTES Item No. 1 -Approval of minutes of Regular Meeting from December 9, 2013 Chairman Lent requested the minutes be amended by removing the additional wording which seconds the motion under New Business,Selection of Chair. Board Member Holzman moved to approve the minutes as amended; seconded by Board Member Purvis.The motion passed unanimously. UNFINISHED BUSINESS Item no 2-Approval of Firefighters Pension Plan Operating Rules and Procedures Chairman Lent asked the Board if there were any amendments for consideration. The following amendments were presented: • Add the two year term length to Section 1.7A under Election Procedures. • Under Section 15.1,remove the word law enforcement and replace with firefighters,matching the appropriate Florida Statute citation. The Board discussed creating a written form for payment authonzations. Paul Shamoun stated Finance Director VanZile's office has personnel who approve payments for contracted services, which is covered under Section 5.2 A. Finance Director VanZile suggested addmg the word "authorized" for expenses not covered under contracted services. Paul Shamoun mentioned when the Board adopts the presented Rules, all payments would be approved by the Board and payments already processed would be ratified by the Board. Board Member Silvestns moved to approve as amended; seconded by Board Member Holzman. The motion passed unanimously. 1 City of Clermont MINUTES FIREFIGHTER RETIREMENT PLAN BOARD OF TRUSTEES MEETING March 20, 2014 NEW BUSINESS Item No 3 - Approval of Florida Municipal Pension Trust Fund Investment Policy —Amended and Restated as of October 1, 2013 Item No. 4-Approval of Amendment to Florida Municipal Pension Trust Fund Investment Policy Objectives and Guidelines—Effective April 1, 2014 Paul Shamoun stated Items 3 and 4 would be discussed together. Item 3 is the investment policy for the whole trust fund and includes four parts; Defined Benefit, Defined Contribution, Deferred Compensation,and Deferred Retirement. The October 1,2013 changes did not affect the Defined Benefit portion, the majonty of the changes were to the other parts. Item 4 is effective April 1, 2014 and the portfolio will change and include two fixed income equities instead of one. The Core Plus portfolio was added and 60 percent of the current fixed income assets will be moved into the Core Plus portfolio. Board Member Holzman moved to approve Item 3; seconded by Board Member Purvis. The motion passed unanimously. Board Member Holzman moved to approve Item 4: seconded by Board Member Silvestris.The motion passed unanimously. Item No 5-Review of Firefighters Pension Plan Adoption Agreement—Revised March 11, 2014 Finance Director VanZile stated the Firefighter Pension Plan Adoption Agreement was a culmination of the negotiations with the Firefighters' union. The City Council and the union approved the plan contaimng three main changes; the definition of salary expanded to include limitations on overtime and unpaid leave, normal retirement date changed to 55 and 10 years of service or 20 years of service regardless of age, and employee contribution mcrease from 1 percent to 4 percent. The changes were incorporated into the revised Adoption Agreement. The Board discussed the tax implications of the employee contribution increase and agreed the plan participants should be provided details of the tax implications. Finance Director VanZile commented no action was necessary, the review was for information purposes only. Item No. 6-Review of Firefighters Pension Plan Summary Plan Agreement—Revised March 11, 2014 Finance Director VanZile stated the Summary Plan was revised to correspond with the Pension Plan and is ready to distnbute to all Fire Department employees. Board Member Silvestris suggested providing the document to the Fire Department Administrative Assistant for distribution. Item No 7-Discussion of revisions to City Code Chapter 46—Pensions and Retirement Finance Director Van Zile stated Chapter 46 contains the plan document language and the adoption agreement language. 2 City of Clermont MINUTES FIREFIGHTER RETIREMENT PLAN BOARD OF TRUSTEES MEETING March 20,2014 The information in the Code is not consistent with the plan document and the document agreement language. Staff is considering changing the code to reference the plan document and adoption agreement and omitting the details and would like the Board's opinion. The documents would be available through the City Clerk's office and Human Resources. Paul Shamoun stated the League will be initiating the Board's website and the documents will be available on the website. A link will need to be added to the City's website. Attorney Cyphen agreed with the proposed changes. Finance Director VanZile commented staff will continue moving forward with the revision process. PLAN ADMINISTRATOR REPORT Discussion of Investment Performance Report for Quarter Ending December 31, 2013. Paul Shamoun presented the investment report. The ending balance represents a 5.4 percent return for the quarter. All of the equity portfolios were up approximately 10 percent and the fund has been up 11.5 percent annually over the past five years. The expected return on the fixed income should increase and the expenses for the portfolio will increase by approximately four basis points. ATTORNEY REPORT Attorney Cyphen stated Allison is no longer with Cyphen and Cyphen. The new firm will be Clauser and Kaufman,which is a well established pension law firm. BILLS AND EXPENSES FOR APPROVAL Approval of Expenses for Period September 7, 2013-December 5, 2013 Finance Director Joe Van Zile reviewed the bills and expenses totaling$6,578.45. Board Member Purvis moved to approve the expense report; seconded by Board Member Silvestns.The motion passed unanimously. ADJOURN: With no further comments,this meeting was adjourned at 11:50am APPROVED: Chairman ATTEST# \-/Aa.kulAe • Aftl z �Tra�,y Ackroyd,City C =rk 3 ol