Minutes 02-22-23 Firefighter Quarterly Minutes+ Retirement Plan & Trust for Firefighters of the City of Clermont
C�ER ANT DRAFT Minutes Quarter) Meeting
February 22, 2023
1. Chair Judd Lent called a Quarterly Meeting of the Firefighters Retirement Plan Board of Trustees to
order at 11:15 AM on February 22, 2023 in Council Chambers at the Clermont City Hall. Those
persons present included:
TRUSTEES OTHERS
Judd Lent, Chair Scott Baur & Kyle Tintle, Administrator (Resource Centers)
Ryan Moore, Secretary Mitchel Brennan, Investment Consultant (BCA)
Ariel Guerrero, Trustee (electronically) Bonni Jensen, Attorney (KKJL)
Katherine Falcon, Trustee Mitchell Brennan, Investment Consultant, BCA
Electronically:
Marsha Pridgeon and Nadine Ohlinger (City of Clermont)
Nancy Ziccardi,(City of Clermont)
2. Extraordinary (Exigent) Circumstances for Trustees Joining Electronically
The Chair entertained a motion to allow Ariel Guerrero to join the meeting electronically.
Ryan Moore made a motion to approve Ariel Guerrero joining the meeting electronically. The motion
received a second from Judd Lent, approved by the Trustees 3-0.
3. Approval of Minutes:
The Trustees reviewed the Quarterly Board Meeting Minutes dated November 30, 2022.
Ryan Moore made a motion to approve the Quarterly Board Meeting Minutes dated November 30, 2022.
The motion received a second from Judd Lent, approved by the Trustees 4-0.
4. Reports:
Quarterly Investment Report: Investment Consultant, (Mitchell Brennan- BCA)
Mr. Brennan reported the plan finished the calendar year on a positive note up 4.3% (net). As of Friday
assets gained another $1.4 million or about 6 or 7% fiscal year to date. Markets in 2022, however, were
historically bad. Sentiment shifted from growth to value and stocks got cheaper. Earnings also grew in
2022 but rising interest rates provided a headwind for markets. Not only stocks lost value, but bonds had
a historically bed year making 2022, one of the worst year for pension plans. The shorter term bonds
held by the plan provided some buffer against rising interest rates. Investors believe further rate
increases will come spurring recession in 2023 more likely. Mr. Brennan further explained the behavior of
the fixed income holdings, which should provide better returns after the historically bad year.
The plan underperformed the benchmark for FY22 and the 2022 calendar year. Two managers, Polen
and American Funds EuroPacific were responsible for the majority of the underperformance. The large
growth manager replaced the Russell 1000 Growth holding in the portfolio in 2021. Current performance
+ Retirement Plan & Trust for Firefighters of the City of Clermont
C�ER ANT DRAFT Minutes Quarter) Meeting
February 22, 2023
improved modestly. Mr. Brennan reviewed the recent and longer term performance for Polen in great
detail. He recommended allocating the consultant discretion to move 25% of the allocation back to
benchmark if the quarterly performance does not improve by April. The Trustees also considered the
benefit of active and passive management. The consultant does continue to have faith in Polen over
longer term periods. Mr. Brennan explained the style of management and companies held by Polen. The
Board deferred any decision to the May 24th meeting.
Mr. Brennan reviewed details for the American Funds EuroPacific Growth Fund, which recently
underperformed the international benchmark, due to the style of management. The consultant has
continued confidence in the manager.
The Plan assets returned 4.4% gross / 4.3% net for the December 315Y quarter compared to 4.9% for the
benchmark. The assets returned -15.2% for the 2022 calendar compared to -12.6% for the benchmark.
The Plan received $234,853 of the $350,000 redemption request from the Predex real estate holdings.
The consultant recommended the Board redeem an additional $350,000 from Predex, as the market
begins to punish commercial office holdings.
Ryan Moore made a motion, based on the advice of the investment monitor, to redeem $350,000 from
Predex. The motion received a second from Katherine Falcon, approved by the Trustees 4-0.
Mr. Brennan further reviewed cash flows, current asset allocation, and performance. He went over the
quarterly report details. Mr. Brennan will provide rebalancing recommendations from the Predex
redemption at the next meeting.
Attorney Report: Bonni Jensen (Klausner, Kaufman, Jensen & Levinson)
Ms. Jensen reported on the ordinance with the negotiated benefit changes. She updated the Summary
Plan Description with the new benefit provisions.
Ryan Moore made a motion to approve the Summary Plan Description as amended. The motion received a
second from Ariel Guerrero, approved by the Trustees 4-0.
Ms. Jensen reported on internal controls. An administrator in the Miami area continued payments to
deceased members to personal accounts. She wants to engage the auditor to further review fraud
measures and deceased members. Mr. Baur reviewed the internal controls, at the Resource Centers, in
detail.
Ryan Moore departed the meeting at 12:06 PM
Ms. Jensen reviewed provisions of the Secure Act 2.0. Retired public safety officers previously had a
$3,000 exemption for health insurance premiums from pension income provided the payments were
deducted from pension checks. Now retirees can take the deductions when directly remitting the
premiums. Retirees claiming a tax free income can continue to claim a tax free benefit past the age of 65.
Distributions to members with at least 25 years of service can receive normal distributions prior to the
+ Retirement Plan & Trust for Firefighters of the City of Clermont
C�ER ANT DRAFT Minutes Quarter) Meeting
February 22, 2023
age of 50. Judd Lent asked about purchased time, which can count per Ms. Jensen to the 25 years of
service. The age for Required Minimum Distributions increases to age 73 and age 75 in 2033. Employers
can also redirect payments to student loans for matching contributions to a pension. The mileage
reimbursement rate increased to 65.5, in 2023.
Administrator Report: Scott Baur (Resource Centers)
Mr. Baur reported on the state of the audit and reporting requirements. He gave the background on
workers' comp payments not included in compensation to Chief Hyatt. Ms. Jensen explained the plan
provisions do not address payments from workers comp. The members in Clermont give up their
payments to the City in exchange for a full pay check. Chief Hyatt does not have a break in service but
rather a possible impact to the calculation of his final average salary. The City supplemented his
compensation with non -pension payments. The City has an injury policy with checks to employees as a
pass -through. The City advances the money to the employee. Ms. Jensen said a change to the plan will
be required to include the amounts, since the Plan does not contain any such provision. She does have
such language if the City and bargaining unit want to consider a change. The Board will table this
discussion to the next meeting.
5. Benefit Approvals
The benefit approvals will be held over until the next meeting for review.
6. Plan Financials
Mr. Baur presented the Board with the Interim Financial Statement dated December 31, 2022 for
informational purposes. The interim financial statements were received and will be filed.
The Warrant Dated February 22, 2023 will be presented at the May meeting lost the quorum.
7. Other Business
8. Public Comment
No members of the public had any comment.
There being no further business and the next meeting having been previously scheduled for May 24, 2023
at 11:00 AM, Judd Lent adjourned the meeting at 12:50 PM.
Respectfully Submitted,
Ryan Moore, Secretary