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09-13-2016 Minutes City of Clermont MINUTES FIREFIGHTER RETIREMENT PLAN BOARD OF TRUSTEES MEETING September 13, 2016 The Firefighters Retirement Plan Board of Trustees met in a regular meeting on Tuesday, September 13, 2016 in the Council Chambers at City Hall. Firefighters' trustees present: Judd Lent, Ryan Moore, Adam Watkins, and Jim Purvis. Attorney Bonni Jensen was present via telephone conference call. Jeremy Langley and Rodney Walton; Florida League of Cities, were present. Staff members present: Finance Director Van Zile and Deputy City Clerk Noak. Board Member Sy Holzman was not present. CALL TO ORDER Chairman Lent called the meeting to order at 3:00pm. PUBLIC COMMENTS There were no public comments. APPROVAL OF MINUTES Approval of minutes of the Regular Meeting on June 28, 2016 Board Member Purvis moved for approval of the minutes; seconded-byBoard Member Moore. The motion passed unanimously. NEW BUSINESS Consideration of Prior Service Purchase Request-Brandi DeMarinis Finance Director VanZile stated Firefighter Demarinis' widow filed a request to purchase prior service. The request was sent to Attorney Jensen for a legal opinion. Attorney Jensen advised the Board to deny the request. Attorney Jensen commented Ms.DeMarinis will have an opportunity to appeal a denial. Board Member Purvis inquired of considering a one-time allowance to purchase prior service by Ms. DeMarinis. Attorney Jensen stated she was not aware of any pension plan which allows a beneficiary to purchase prior service. The Internal Revenue Code was reviewed to determine whether the City and the Union could agree to allow such a purchase, and the purchase would not be permitted under Internal Revenue Code Section 415(n)(3)(B). Attorney Jensen expressed concern of altering the plan to allow Ms. DeMarinis to purchase the prior service. Chairman Lent spoke in support of denying the request. Board Member Watkins moved to deny the request; seconded by Board Member Purvis. The motion passed unanimously. • 1 City of Clermont MINUTES FIREFIGHTER RETIREMENT PLAN BOARD OF TRUSTEES MEETING September 13,2016 Attorney Jensen will send Ms. DeMarinis a notice of denial and the process for appealing the decision. Attorney Jensen advised Ms. DeMarinis' father has requested an in-line of duty death benefit form, and a sample form will be provided to Human Resources to use as a template. Finance Director VanZile asked of a minimum time period in other pension plans regarding a death benefit prior to vesting. Attorney Jensen stated there were plans which have a 'day one in line of duty death benefit' which have provisions for the spouse and children. Chairman Lent asked if the provision is negotiated by the City and the Union. Attorney Jensen commented the provision is a Union negotiated issue. Consideration of Prior Service Purchase Request—John Savelli Attorney Jensen commented Mr. Savelli cannot purchase both the National Guard time and Hernando County time as they overlapped. The Florida Statutes does include active duty service in the Florida National Guard as recognized service and Mr. Savelli would be eligible to purchase the National Guard prior service time. Board Member Purvis moved to consider the prior active duty National Guard Service time for purchase; seconded by Board Member Moore. The motion passed unanimously. The Florida League of Cities will send Mr. Savelli the information on the prior service purchase. Approval of Firefighters Pension Plan Fiscal Year 2017 Budget Finance Director VanZile presented the Firefighters Pension Plan budget for Fiscal Year 2017. Chairman Lent inquired of the expense for actuary fees versus the Fiscal Year 2016 projected expenses. Finance Director VanZile commented the actuary study is only performed every other year. Jeremy Langley commented the fees will be increasing by 20 percent and will provide the Board with the fee structure. Board Member Watkins asked of increasing Travel and Education. Attorney Jensen stated extra money for Travel and Education and Administrative Fees should be considered due to potential appeals of the Board's decisions. Chairman Lent suggested increasing Travel and Education to $10,000. Board Member Purvis suggested increasing Legal Fees to$10,000. Finance Director VanZile inquired of the filing requirements if the budget is exceeded and is the excess amount by line item or the bottom line. Attorney Jensen indicated the state has not provided direction on the issue, most plans re-file the budget if the budget is exceeding the bottom line. Attorney Jensen stated the budget must be filed before September 30, 2016. The Board consensus was to increase the Actuary Fees to $18,000, Legal Fees to $10,000, Travel and Education to$10,000, and Miscellaneous to $5,000; for a total budget of$63,500. 2 City of Clermont MINUTES FIREFIGHTER RETIREMENT PLAN BOARD OF TRUSTEES MEETING September 13, 2016 Board Member Watkins moved for approval as amended; seconded by Board Member Moore. The motion passed unanimously. PLAN ADMINISTRATOR REPORT Discussion of Firefighters Pension Plan Investment Performance Report for quarter ended June 30, 2016. Jeremy Langley presented the Firefighters Pension Plan Investment Performance Report for quarter ending June 30, 2016. ATTORNEY REPORT Attorney Jensen reported on the 175 and 185 upcoming distribution of money and asked of the Union and City negotiations regarding the use of the funds. Chairman Lent commented the City and Union are under negotiations; however, negotiations may be at an impasse. Attorney Jensen stated should the City and Union not obtain a mutual consent regarding the fund,then the default method provided under the law would apply. Finance Director VanZile commented using the default method was proposed to the Union, which was not part of the impasse; however, it is part of the contract with the Union. Attorney Jensen stated the City and the Union could enter into a Mutual of Understanding agreement regarding the funds. Attorney Jensen reminded the Board of public records law and advised the Board Members to provide the Plan Administrator immediately with any requests received. Finance Director VanZile asked if Attorney Jensen would be the contact attorney. Attorney Jensen commented she is the contact for meeting purposes and will attend the meetings. BILLS AND EXPENSES FOR APPROVAL Approval of Plan Expenses for June 10, 2016—September 8, 2016 Finance Director VanZile presented the plan expenses for June 10, 2016 through September 8,2016: Quarterly Fees $4,972.32 2015 Actuarial Fees $ 600.00 Board Member Purvis moved for approval; seconded by Board Member Moore. The motion passed unanimously. ADJOURN: With no further comments,this meeting was adjourned at 4:02pm. APPROVED: airman Judd Lent ATTEST: Tracy Ackroyd Howe, City Clerk 3