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Minutes 02-23-2022 Firefighter Quarterly Board Meeting - DRAFTS. CLERONT Retirement Plan & Trust for Firefighters of the City of Clermont ChaiceofChampions DRAFT Minutes Quarterly Meeting February 23, 2022 1. Chair Judd Lent called a Quarterly Meeting of the Firefighters Retirement Plan Board of Trustees to order at 11:00 AM on February 23, 2022 in Council Chambers at the Clermont City Hall. Ms. Tintle called roll on behalf of the Board. Those persons present included: TRUSTEES OTHERS Judd Lent, Chair Kyle Tintle, Administrator (Resource Centers) Ryan Moore, Secretary Mitchel Brennan, Investment Consultant (BCA) Ariel Guerrero, Trustee Bonni Jensen, Attorney (KKJL) Richard Pastor, Trustee Pam Brosonski, Finance Director (Electronically) Adam Watkins, Trustee (Electronically) Nadine Ohlinger, Human Resources Director (Electronically) 2. Extraordinary (Exigent) Circumstances for Trustees Joining Electronically The Chair entertained a motion to allow Adam Watkins to join the meeting electronically. Ryan Moore made a motion to allow Adam Watkins to join the meeting electronically. The motion received a second from Richard Pastor, approved by the Trustees 4-0. 3. Election of Board Chair and Secretary The floor was open to receive nominations for Board Chair and Secretary. Ms. Jensen asked the Chair and Secretary if they were interested in staying on with their current positions. Both Trustees agreed to stay on as Chair and Secretary for the Board and no other names were nominated. Ms. Jensen closed the nominations. Adam Watkins made a motion to approve the nominations for Judd Lent for Chair and Ryan Moore for Secretary. The motion received a second from Richard Pastor, approved by the Trustees 5-0. 4. Approval of Minutes: The Trustees reviewed the Quarterly Board Meeting Minutes dated December 1, 2021. Ryan Moore made a motion to approve the Quarterly Board Meeting Minutes dated December 1, 2021. The motion received a second from Judd Lent, approved by the Trustees 5-0. 5. Reports: Quarterly Investment Report: Investment Consultant, (Mitchell Brennan- BCA) Mr. Brennan welcomed the new Trustees and provided a brief overview of the service he provided to the Board. He works for Burgess Chambers and Associates as investment monitor providing recommendations to the Board to achieve their financial goals and secure a well -funded plan. They are non -discretionary investment advisors that do no invest the funds directly; the investment managers do LERWOI Retirement Plan & Trust for Firefighters of the City of Clermont T Chaise of Champions DRAFT Minutes Quarterly Meeting February 23, 2022 the investing. Mr. Brennan presented the investment report for the quarter ending on December 31, 2021. For the quarter, the Plan earned $887,000 (+3.0% gross and +2.9%net), behind the target (+5.1%). Which pull the one year numbers down below the benchmark at 11.5% versus 14.2%. The best performer was the PREDEX Real Estate fund which beat its benchmark for the quarter at +8.5% versus the benchmark at +8.0% and the one-year number +23.2% versus +22.2%. Mr. Brennan reviewed the ranking for the total fund which was top 8% for the 3-year period and top 12% for the 5-year period. He discussed the investment policy review and everything was in compliance. The Board previously approved the move to an actively managed real estate manager, TA Reality, 1 million dollars committed but the amount will be determined when the capital call is made. Mr. Brennan continued his review of the quarterly returns especially Convertible Securities and the International Equity and the reasons for the underperformance. The different asset cases were discussed and he does not recommend any rebalancing at this time. Attornev Report: Bonni Jensen (Klausner, Kaufman, Jensen & Levinson) Ms. Jensen informed the Board the Crawford disability order was signed and delivered. We are waiting to see if there will be a response to the order. A Special Tax notice has been prepared which is a document that is given to anyone taking a lump sum from the plan. The document gives the member an explanation of the rollover procedures and requirements and tells them about the early retirement penalties. The document is a wonderful tool to give members if they have questions; the document is on the Resource Center's website. She has been working on the TA Reality side letter along with Mitchell Brennan and Scott Baur. An audit engagement letter has been signed and they are currently in process of collecting information to produce an audit. Attorney Michael Srebnick is working on the summary of John Savelli's case and is to be expected to be completed later this year. Administrator Report: We Tintle (Resource Centers) Ms. Tintle reported several firefighters' calculations that were being examined by Scott Baur to confirm the calculation methods were in line with policy without caps or proration. Ms. Jensen explained the need for the reexamination. She said there was an issue with some members of the police calculations which needed review. Chuck Carr of Southern Actuarial Services Company applied a limit to a member for calculation purposes. An IRS cap was applied; if someone terminated early in the fiscal year, adding their sick and vacation time in their final average salary, he was applying a cap back when it when these people left, was more than the cap of $290,000 but now is about $330,000 with the cost of living increase. Ms. Jenson, Scott Christiansen and the tax attorney who prepared the definition of salary for the plan agrees the proration should not apply to members that leave earlier within the year. They agree that mathematically put the members over the cap because of the time of year they left the plan. The members never receive an amount of money over the IRS cap. This proration should not be applied to these members. Ms. Jensen provided a proposed amendment which defines Salary and when the proration applies and clarified salary. She would like to wait on submitting the amendment until after collective bargaining to make only one change. The topic impacted a police officer but we wanted to make sure that it did not impact any firefighters. Ms. Tintle noted the information for the audit was received today and the information for the Share accounts came over yesterday, Mr. Baur was not given S. CLERONT Retirement Plan & Trust for Firefighters of the City of Clermont ChaiceofChampions DRAFT Minutes Quarterly Meeting February 23, 2022 enough time to review the information. Judd Lent asked Nadine Ohlinger if the Summary Plan Descriptions (SPD) had been sent out electronically to all of the members of the plan. She will get back to Judd Lent to confirm. A PDF version of the SPD was sent to Nadine Ohlinger to distribute to the members. 6. Plan Financials Interim Financial Statement Dated February 23, 2022: Ms. Tintle presented the Board with the Interim Financial Statement for informational purposes. Approval of Invoices, Warrant Dated February 23, 2022: Ms. Tintle presented the Board with the Warrant Dated February 23, 2022, for review and approval. Ryan Moor made a motion to approve the Warrant dated February 23, 2022. The motion received a second from Richard Pastor, approved by the Trustees 5-0. 7. Other Business There was no other business to discuss at this time. 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 25, 2022 at 11:00 AM, the Chair adjourned the meeting at 12:00 PM. Respectfully Submitted, Ryan Moore, Secretary