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Clermont Fire 08-28-2019 Quarterly Meeting MinutesCity of Clermont Minutes R;,�� POLICE OFFICERS PENSION BOARD OF TRUSTEES T PENSION BOARD MEETING ChoiceoFCham�[ons August 28, 2019 The Firefighters Retirement Plan Board of Trustees met on Wednesday, August 28, 2019 in the Clermont City Hall Council Chambers. Firefighter Board Members present: Jim Purvis, Ryan Moore, and Judd. Attorney Bonni Jensen was present. Burgess Chambers & Associates member present: Mitchel Brennan. Staff members present: Finance Director Joe Van Zile, Assistant Finance Director Pam Brosonski, and Risk and Benefits Manager Nadine Ohlinger. The Resource Centers staff members present: Scott Baur and A.C. Lovingood. CALL TO ORDER The Board Meeting was called to order at 11:25 AM. PUBLIC COMMENT There was no public comment. MINUTES The Minutes from the May 22, 2019 Board Meeting were presented to the Board for review. Secretary Jim Purvis made a motion to approve the Minutes dated May 22, 2019. Trustee Ryan Moore seconded the motion. The motion passed 3-0. REPORTS Investment Monitor Report — Mitchel Brennan, Burgess Chambers & Associates Mitchel Brennan presented the Quarterly Investment Monitor Report to the Board noting that the report is only a partial quarter due to when the transfer was processed from The League of Cities to Salem Trust. Mr. Brennan informed the Board that Since June 31, 2019 the fund decreased 1-1.5%. The market is very volatile and is expected to stay that way due to the Brexit, continued trade wars between the United States and China, and the upcoming Presidential Election. Treasuries are 1.5% to 1.6%, which is very low. The yield curve is inverted which historically has always preceded a recession, however an inverted yield curve does not always guarantee that a recession is around the corner. The Federal Reserve is expected to cut interest rates soon to boost the US economy. Mr. Brennan then went over the Investment Policy Review noting that all of the funds are in compliance. The investment performance is in line with the Fund's policy. A Year to Date Investment Performance amount is not yet listed yet but will be included in future reports. From the information available, Mr. Brennan expects the fund to have a Year to Date Net gain of 2-3% and doubts that the Assumed Rate of Return will be met this fiscal year. The fund's allocations were reviewed with the Board and there is no need to rebalance at this time and will start to transition into more active investments soon. The mutual fund performances were reviewed with the Board and it was noted that the Cohen & Steers Global Infrastructure fund's year to date return on investment is 16-17%. Mr. Brennan then reviewed the additional components within the quarterly report. Salem Trust Mindy Johnson and Mallory Parsons introduced themselves to the Board and thanked them for the opportunity to be the Plan's custodial bank. The transition from The League of Cities went well, however they failed to turn payments off causing members to receive two pension payments within the same month. The Salem Trust Service Report Summary was reviewed with the Board. Ms. Johnson stated that this report is Salem Trust's promise of transparency that they publish every quarter that tracks their five primary categories that are essential to the core custody services that they provide. The summary is created by objectively comparing data that is used by Salem Trust's independent auditors and government regulators to see how the firm has performed in relation to its goals. Ms. Johnson then reviewed the Money Market Fund Summary Prospectus for the Cash Sweep component to Plan's account along with the Salem Trust merger with TMI for informational purposes. It was noted that the only change that the Plan will see with regards to the merger is a bank change in 2020 for wire transfers. The process of raising cash was explained to the Board. Salem Trust suggested that the Board give Burgess Chambers & Associates authorization to direct Salem Trust on how to raise cash for payments. Mr. Brennan stated that his firm would draft the letter and send it over to Scott Baur at The Resource Centers for review to present to the Board at their next Board Meeting. There was a detailed discussion regarding how the daily matters within the Plan were processed when The League of Cities was the Administrator and how they are processed now. Mr. Baur explained the process of processing payments so that the Board had a full understanding and expectation of the average turnaround time. Ms. Johnson noted that security is very important to Salem Trust and all applications and requests are double checked and verified before the payment is processed. Mr. Baur informed the Board that the 2018 Premium Tax Distribution of $227,612.90 is expected to come in September. Pam Brosonski with the City of Clermont informed the Board that the State is missing some information in order to complete the processing of the 2018 Premium Tax Distribution, however The Resource Centers is working on getting that missing information over to the State. Attorney Report — Bonni Jensen, Klausner, Kaufman, Jensen, & Levinson Memo — Public Records Exemptions for Public Safetv Emplovees — Ms. Jensen then reviewed SB 248 regarding the Public Records Exemptions Law. The records of current or former employees of a public safety agency, including civilian employees, spouses, and children will be exempt from disclosure. These records include home address, telephone number, date of birth, places of employment, and names and locations of schools and day care facilities for spouses and/or children. Ms. Jensen also informed the Board that the definition of "home address" was updated to include all descriptive property information, including but not limited to, GPS coordinates, neighborhood name and lot number, legal property description, parcel identification number, physical address, mailing address, and street address. Cvber Securitv- Ms. Jensen provided the Board with a Cyberattack Memo reviewing with the Board the recent cyberattacks on municipalities. The pros and cons of having a cyber security insurance coverage was reviewed with the board, noting that the only exposure for the plan is nonpublic personal information of its members such as social security numbers and dates of birth. The only concern that Ms. Jensen has is the First Notification requirement in the event of a cyberattack. Ms. Jensen stated that her firm's recommendation is that the Pension Plan requires all of its vendors to have or to purchase cyber liability insurance in the amount of $5 Million. She further suggested that all current agreements with vendors that do not currently have cyber liability insurance should have the policy amended to include a cyber liability rider to add such coverage. The concern that her firm has is that Pension Plans are a potential target to obtain members nonpublic personal information. There was a detailed conversation regarding the cyber security insurance limits and what it would cover. Secretary Purvis inquired to find out if the city has cyber security insurance and what the coverage amount is. Nadine Ohlinger with the city stated that she believes the coverage is $5,000,000 and her understanding is that the Pension Plan is covered under the policy. Secretary Purvis requested that the city verify the coverage amount, if the Pension Plan is covered under the policy, and to obtain a quote through The League of Cities for full coverage and just notification coverage. Memo — Statutory Death Benefits and Expanded Public Records Exemptions - Ms. Jensen presented a memo to the Board regarding the Statutory Death Benefits and Expanded Public Records Exemptions. There were two bills that were recently adopted by the Florida Legislature that relate to public safety officers. These two bills do not directly impact the police or firefighter pension plans; however, both bills are relevant to public safety officers and plan administrators. Within Chapters 175 and 185, Florida law provides specified statutory death benefits that are required to be paid by cities/special districts. SB 7098 expands the coverage of statutory death benefits to include members of the U.S. Armed Forces, paramedics, and EMTs. SB 7098 also increases statutory death benefits that apply under three sets of circumstances. Accidental Death Benefit was increased to $75,000.00; the Emergency Death Benefit was increased to $150,000.00, and the Intentional Act Death Benefit was increased to $225,000.00. In addition to the statutory death benefit increases, spouses and children are entitled to receive educational benefits, such as a waiver of tuition and educational expenses for a career certificate, undergraduate, and/or post graduate education at a state educational institution. Cancer Presumption Ordinance - Ms. Jensen made the recommendation to adopt the 21 types of cancer listed in the Firefighter Cancer Bill for inline of duty disability. Ms. Jensen reviewed the bill with the board including the list of cancers that are included along with the requirements for eligibility for the inline disability. Adding this bill to the Summary Plan Description will allow the actuary to calculate the inline disability assumptions. Ms. Jensen informed the Board that the Florida Retirement System's actuaries did their own calculation and it was determined that there is a cost to the pension plans. Restatement of Plan — Ms. Jensen stated that she will work with the City of Clermont Police Officers' Pension Plan attorney Scott Christiansen to create a new Restatement of Plan for the City of Clermont Firefighters' Pension Plan to ensure that both documents mirror one another. ADMINISTRATOR REPORT — Scott Baur, Resource Centers SOC-1 Audit — Scott Baur informed the Board that The Resource Centers SOC-1 Audit is almost complete and will present the results at the next Board Meeting. Mr. Baur then informed the Board of a Cyber Security conference that was hosted by the Secret Service and FBI that he and IT Manager Sergio Grion attended. Mr. Baur explained some of the various information that was discussed at the conference and informed the Board that The Resource Centers has been taking many of the precautions that were discussed, however, there were some recommendations made that we are in the process of implementing. A Cyber Security Memo will be presented to the Board at the next Board Meeting. Transition Update - Mr. Baur informed the Board that the Welcome Letters have been sent out to all active and retired members of the Pension Plan. The Plan Websites are up and currently have some information readily available. The Online Benefit Calculator is not active at the moment as The Resource Centers is still working with the city to start sending payroll data over. Once this is setup then Mr. Baur stated he would work with the Actuary to ensure that the proper formulas are being used so that members estimated calculation will be correct. 2020 Meeting Schedule — Mr. Baur presented the proposed meeting dates for the 2020 calendar year for the Board to review. Secretary Jim Purvis made a motion to accept the 2020 Board Meeting dates as proposed by The Resource Centers. Ryan Moore seconded the motion. The motion passed 3-0. Trustee Terms — Mr. Baur informed the Board that both Trustees, Judd Lent and Adam Watkins' terms end on December 1, 2019 and elections will need to be held. Mr. Baur and Mr. Lovingood stated that they would contact the City Clerk to find out how the elections were done in the past to start the election process. It was also noted that Trustee Jim Purvis's appointed term ends on December 1, 2019. Trustee Purvis informed the Board that he is running for City Council and if he is elected he will need to resign his position as Trustee. It was also noted that Officer Selections should be held at the next Board Meeting. With the pending election Mr. Baur stated that The Resource Centers will verify that there will be a sufficient number of Trustees present at the November Meeting to ensure there is a quorum. 2019-20 Administrative Bud,2et — Mr. Baur presented and reviewed the 2019-20 Administrative Budget with the Board. Secretary Jim Purvis made a motion to approve the 2019-20 Administrative Budget as presented. Trustee Ryan Moore seconded the motion. The motion passed 3-0. EXPENSES The May 22, 2019 Warrant was presented to the Board for review. Secretary Jim Purvis made a motion to approve the Warrant dated May 22, 2019. Trustee Ryan Moore seconded the motion. The motion passed 3-0. NEXT OUARTERLY MEETING: Thursdav, November 21, 2019 (a, 11:00 AM ADJOURN: With no further comments, this meeting adjourned at 12:49 PM. Respectfully submitted, Jim Purvis, Secretary