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03-19-2015 Minutes City of Clermont MINUTES FIREFIGHTER RETIREMENT PLAN BOARD OF TRUSTEES MEETING March 19, 2015 The Firefighters Retirement Plan Board of Trustees met in a regular meeting on Thursday, March 19, 2015 m the Council Chambers at City Hall. Firefighters' trustees present: Judd Lent, Jim Purvis, Adam Watkins, and Sy Holzman. In addition: Finance Director Van Zile and Deputy City Clerk Noak, Attorney Steve Cypen via conference call,and Matt Dickey,Florida League of Cities, was present. Board Member Silvestns was absent Chairman Lent called the meeting to order at 11:00am PUBLIC COMMENTS Chairman Lent opened the meeting for public comments. There were no public comments. MINUTES Approval of the minutes of Regular Meeting from December 18, 2014 Board Member Holzman presented an amendment to change "for him to review"to "to him for review" in paragraph 2, line 4 under unfinished business. Board Member Purvis moved to approve as amended: seconded by Board Member Holzman. The motion passed unanimously. UNFINISHED BUSINESS Discussion of Actuarial Impact of Providing a Partial or Full Lump Sum Payment Option and Cost of Living Adjustment Matt Dickey presented the review provided by Southern Actuarial Services in response to the Board's request for actuarial estimates regarding adding partial or lump sum payment options or providing an automatic cost-of-living adjustment to the Firefighter Retirement Plan. The long term impact of providing the options would affect the ability to gain the 7.50%assumed annual investment return. The Board discussed the payment options and noted only one retiree had selected the lump sum option. Finance Director VanZile commented the plan allows lump sum distnbutions as the option is not expressly prohibited and the Board would have to change the plan. Attorney Cypen stated removal of the option could be problematic due to a pnor lump sum distnbution The Board can adopt a resolution to change the plan and the City Council would have to adopt an Ordinance changing the plan. Chairman Lent inquired if the change would involve a union negotiation. Attorney Cypen responded the change would involve union negotiations. Board Member Purvis moved to leave the plan as is Attorney Cypen commented a motion was not required to retain the current payment options. The Board discussed possible annual cost-of-living increases for retirees, providmg a 2% increase every other year, and retaining the current method of providing an adjustment. 1 City of Clermont MINUTES FIREFIGHTER RETIREMENT PLAN BOARD OF TRUSTEES MEETING March 19, 2015 Finance Director VanZile commented cost-of-living increases are expensive and the plan members or the City would have to make up the difference. The current method is providing retirees with a $2 per year of service increase every three to four years Chairman Lent suggested sending the results of the actuanal estimates to the union for negotiation with the City NEW BUSINESS Approval of Expected Rate of Return Attorney Cypen provided details on the reporting requirements. Matt Dickey presented the 7.5%expected rate of return. Board Member Holzman moved to approve; seconded by Board Member Watkins. The motion passed unanimously. Approval of F fth Member Appointment Chairman Lent commented he understood the fifth member appointment occurred at the same time as the Board Member elections. Finance Director VanZile stated Board Member Watkins was serving the remaining term of David Kilbury which expires Apnl 2015. Board Members Lent and Silvestns terms expire in November 2015, and Board Members Purvis and Holzman terms expire in December 2015. Attorney Cypen stated the City could consider amending the process to have the elected Board Members and appointed Board Members occur at the same time. Board Member Holzman suggested retaining the staggered terms to prevent the entire Board terms from expiring at the same time Attorney Cypen stated the fifth member appointment required interested persons to submit their name for the Board to consider. Chairman Lent stated Board Member Silvestns could contact the Chief of Administration to send out notices of the opening and to send letters of interest requesting appointment and have Board Members Holzman and Purvis provide names for consideration. Board Member Purvis so moved: seconded by Board Member Holzman. The motion passed unanimously. Approval of Actuarial Valuation as of October 1, 2014 Matt Dickey presented the Actuarial Valuation provided by Southern Actuanal Services. The City contnbution rate for the 2014/2015 Plan Year is expected to be 10.89%. The new legislation effective for 2015 will require a 2%Less Funded Liability calculation and a determination of how long the fund would last should the fund receive no further contnbutions. 2 City of Clermont MINUTES FIREFIGHTER RETIREMENT PLAN BOARD OF TRUSTEES MEETING March 19, 2015 Attorney Cypen stated he understood the provision requinng inclusion of the clause on how long the fund would last should be included in the Actuanal Valuation for the current year. He requested Mr. Dickey follow up on the effective date and the Board hold a special meeting if necessary. PLAN ADMINISTRATOR REPORT Discussion of Firefighters Pension Plan Investment Performance Report for Quarter Ending December 31, 2014 Matt Dickey presented the Investment Performance report for the quarter ending December 31,2014. He commented the economy was slowing and the Federal Reserve System has expressed concerns regarding short term inflation, deflation, and recession. Mr. Dickey stated the plan could still achieve a 7.5%return rate ATTORNEY REPORT No report. BILLS AND EXPENSES FOR APPROVAL Approval of Plan Expenses Finance Director VanZile presented the following expenses for approval 1. Reimburse City for payment of FPPTA 2014 Membership Renewal 2. December 31, 2013 Quarterly Fees 3. Reimburse City for Chairman Lent and Board Member Silvestns to attend FPPTA Trustee School 4. Individual Benefit Calculation for Kevin Peace Board Member Purvis moved to approve; seconded by Board Member Holzman. The motion passed unanimously. Approval of Member Distributions Finance Director VanZile presented the following distnbutions for approval: 1. Jeff Michels 2. John DeChnstopher Board Member Purvis moved to approve; seconded by Board Member Watkins. The motion passed unanimously. 3 City of Clermont MINUTES FIREFIGHTER RETIREMENT PLAN BOARD OF TRUSTEES MEETING March 19, 2015 ADJOURN: With no further comments,this meeting was adjourned at 12:16pm. APPROVED: ,,,,,, f4_5--' airman Judd Lent ATTEST: •/ ,Ilt', Tracy Ackroyd, q y Clerk 4