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Minutes 09-14-22 Firefighter Quarterly Meetingnws0 C�ER 0 Retirement Plan & Trustfor Firefighters of the City of lont ,._� DRAFT Minutes Quarterly Meeting ear September 14, 2022 1. Chair Judd Lent called a Quarterly Meeting of the firefighters Retirement Plan Board of Trustees to order at 11:08 AM on May 23, 2022 in Council Chambers at the Clermont City Hall. Mr. Baur called roll on behalf of the Board. These persons present included: TRUSTEES OTHERS Judd Lent, Chair Scott Baur, Administrator (Resource Centers) Ryan Moore, Secretary Mitchel Brennan, Investment Consultant (BCA) Ariel Guerrero, Trustee (electronically) Boner Jensen, Attorney (KKJL) Richard Pastor, Trustee Chuck Carr, Actuary, Southern Actuary Services Adam Watkins, Trustee Electronically, Marsha Pridgeon and Nadine Ohlinger (City of Clermont) Pam Brosonski and Nancy 2iccardi,(City of Clermont) Kyle Tmtle, Administrator (Resource Centers) Larry Cole, Investment Consultant, BCA 2. Extraordinary (Exigent) Circumstances for Trustees Joining Electronically The Chair entertained a motion to allow Anal Guerrero to loin the meeting electronically Richard Pastor made a motion to approve Ariel Guerrero joining the meeting electronically. The motion received a second from Adam Watkins, approved by the Trustees 4-0. 3. Approval of Minutes: The Trustees reviewed the Quarterly Board Meeting Minutes dated May 25, 2022. A correction was noted by Ryan Moore and a change was made on page 3 Ryan Moore made a motion to approve the Quarterly Board Meeting Minutes dated May 25, 2022. The motion received a second from Adam Watkins, approved bythe Trustees 5-0. 4. Reports: Quarterly Investment Report: Actuary. (Chuck Carr —Southern Actuary Services) Mr Carr asked about a de minenis amount, he has record of an amount owed. Wayne Block also has a vested deferred benefit, a much smaller amount. They were eligibleto start collecting in 2017-18. Ryan Moore made a motion to approve the Annual Valuation report. The motion received a second from Richard Pastor, approved by the Trustees 5-0. Ms Jensen advised the Board to approve the expected rate of return based on the advice of the actuary and the investment consultant. CLER oNT Retirement Plan & Trust for Firefighters of the City of Clermont DRAFT Minutes Quarterly Meeting ..:r% September 14, 2022 Ryan Moore made a motion, based on the advice of the actuary and the investment consultant, the expected rate of return for the short term, midterm, and the long term thereafter at 7%. The motion received a second from Judd Lent, approved by the Trustees 5-0. Actuary Resort: Actuary, (Chuck Carr —Southern Actuarial Services) Mr. Carr reported the required contribution dropped by 14.45%, the City reduced from 22.57% to 11.14% of pay, a reduction of almost 50%. The Plan earned over 20% for the fiscal year 2021. This year returns are not looking so good. The Plan now has a funded ratio of 145.48%. Therefore the entire City contribution funds the normal cost for benefits. All dollars pay for future benefit accruals. Judd Lent asked about a large number of inactive members. The Plan carries through, mostly volunteer firefighters, with very small benefits, approximately 61 people, and totaling $585 due or owed less than $50.00. The prior administrator did not try to local former members. A process needs to be initiated to locate and pay refunds. Ms. Jensen noted the Plan has an obligation to locate the former members. Mr. Carr said they have all the names, some social security numbers and dates of birth. They have many owed less than $10.00. Adam Watkins asked about all 175 Chapter money charging a percentage of the City's contribution. Mr. Carr is willing to provide an actuarial impact statement; and ordinance is in process. The City contribution for next year will reflect the changes that were made. We will go through the process for the November 301" meeting. Ms. Jensen should define the scope of the problem first. This item should be on the next agenda. Mr. Carr asked about the de minimis amount, he has a record of the amount owed. David Block and Wayne Block also have vested deferred benefits. Wayne Block was due a benefit in 2017 or 2018 but did not apply for his benefit. Judd Lent recommended waiting until we have a list of names and amounts. Ryan Moore made a motion to approve the 2021 Actuarial Valuation. The motion received a second from Richard Pastor, approved by the Trustees 5-0. Ryan Moore made a motion, based on the advice of the actuary and the investment consultant, the expected rate of return for the short term, midterm, and the long term thereafter at 7%. The motion received a second from Judd Lent, approved by the Trustees 5-0. Nadine Ohlinger has the annual member benefit statements and will distribute to the members. Mr. Carr has approximately 8 buyback pending which should be completed in the next 2 to 4 weeks. Their work is still being delayed by COVID on the receipt of data. Quarterly Investment Resort: Investment Consultant. (Larry Cole - BCA) Mr. Cole reported the portfolio was still up about 3% for the current quarter. The Producer Price Index (PPI) tracks wholesale prices, is about 3 — 5% through Consumer Price Index (CPI). The PPI is finally coming into line with the CPI. Because the gap has narrowed, inflation has likely peaked but still remains high. Adam Watkins departed the meeting at 11:44 AM. CLERWONT Retirement Plan & Trust for Firefighters of the City of Clermont DRAFT Minutes Quarterly Meeting September 14, 2022 Mr. Cale reported all assets classes posted losses for the June 301" quarter except for real estate. The first 6 months has the worst start since 1970 and bonds had their worse start ever. He reviewed compliance with the investment policy guidelines. The assets remain in line with target allocations. Mr. Cole recommended income rebalancing. He also will deploy some cash. The assets returned -10.9% for the quarter compared to a -10.2% for bench. He will invite Polan Capital to the next meeting in November 30" meeting. Mr. Cole reviewed the individual manager performance. The Plan ended the June 30" quarter with $27,498,465 in total assets. Real estate is the only positive asset class. Mr. Cole recommended moving $1 million from Fidelity US Bond Fund to the Fidelity Short Term Bond Fund. Ryan Moore made a motion, based on the advice of the investment monitor, to move $1 million from the Fidelity US Bond Fund to the Fidelity Short Term Bond Fund. The motion received a second from Richard Pastor, approved by the Trustees 4-0. Mr. Cole said the Plan still has about $1.2 million in cash. He asked for the authority with the Chair to rebalance up to $3 million in between meetings if necessary. Ms. Jensen recommended taking comfort in knowing the investments are for the long term. Ryan Moore made a motion to authorize Mr. Cole to work with the Chair to rebalance assets up to $3 million in-between meetings. The motion received a second from Richard Pastor, approved by the Trustees 4-0. Attomev Report: Bonni Jensen Wausner. Kaufman, Jensen & Levinson) Ms. Jensen reported that the City has an ordinance or, the Collective Bargaining Agreement (CEA) charges. Judd Lent asked about the 22 years of service getting 75% but the ordinance has an additional o%. Ms. Jensen suggested the ordinance should �nclude an example The 22"d year should be 12% with the regular 3% accrual. She will amend the proposed ordinance. Nadine Ohlinger noted the definition of salary 2014, for fire, on the original allocation of premium tax receipts. The Board considered the 2.75% minimum benefit accrual from the Chapter 175 benefit minimum rather than the recently approved CBA. Pam Brosonski stated overtime is tracked on a calendar year while the plan reports on a fiscal year. The difference does not impact the Plan but it does affect how members track their overtime hours. The Board will leave 1tie question to collective bargaining. The Board will need to rewrite the Summary Plan Description following the approval of the ordinance. Ryan Moore made a motion to approve the ordinance, as amended for consideration by the City Council. The motion received a second from Ariel Guerrero, approved by the Trustees 4-0. Ms. Jensen updated the Board that John Savelli withdrew his appeal. The IRS increased the mileage reimbursement rate to 62.5 cents as of July 1, 2022. The Board considered the 2023 proposed meeting schedule. It was suggested moving the November 2023 meeting to November 29", as the week before is Thanksgiving week. No motion is needed. The rest of the dates were acceptable to the Trustees. Retirement Plan & Trust for Firefighters of the City of Clermont C�ER ANT DRAFT Minutes Quarterly Meeting September 14, 2022 Administrator Report: Scott Baur (Resource Centers) Mr. Baur informed the Board that the Annual Report had been approved. He presented the Audit Engagement letter from Cherry Bekeart, for 2 years. They will produce the audit for the fiscal year ending September 30, 2022, if the Trustees approve. A motion was made after a brief discussion. Ryan Moore made a motion to engage Cherry Bekeart as the Auditor for the fiscal year ending September 30, 2022. The motion received a second from Richard Pastor, approved by the Trustees 5-0. 12:22 PM Ryan Moore departed from the meeting. Mr. Baur informed the Board of the upcoming educational opportunities for Trustees. The Division of Management Services S15` Annual Conference will be held September 26 — 28 in Orlando. The FPPTA Fall Trustee School is scheduled for October 2, 2022. Judd Lent and Adam Watkins were considering getting their CPPT certification. Ms. Jensen outlined the CPPT requirements, 10 continuing education units annual, which could be easily attained by attending the FPPTA annual conference. It was noted that the upcoming trustee school overlapped with the Jewish holiday, Rosh Hashanah. David Block requested he receive a benefit back to his eligibility date. Based on the ordinance the language is contingent on living and not withdrawing contributions. Ms. Jensen said we must wait for the member to apply for their benefit. The Trustees considered payment of the benefit. Mr. Carr said the Plan has a pre -retirement death benefit which may be greater so a member may wait to apply. He feels a member waiting to apply should not receive a retro. Ms. Jensen reviewed the records. The Board discussed pending refunds and vested deferred members again. The Board considered the timing of the application by David Block. The Board could set a precedent. If the Board does not pay him, he can appeal the decision. Judd Lent would start the benefit from the time of the application. Adam Watkins rejoined the meeting at 12:33 PM 5. Plan Financials Interim Financial Statement Dated June 2022: Mr. Baur presented the Board with the Interim Financial Statement for informational purposes. The interim financial statements were received and will be filed. Rayan Moore rejoined the meeting 13:37 PM. Adam Watkins made a motion to approve the benefit for David Block starting February 1, 2022. The motion received a second from Ryan Moore, approved by the Trustees 5-0. Approval of Invoices, Warrant Dated August 24, 2022 Mr. Baur presented the Board with the Warrant Dated August 24, 2022, for review and approval. INI CLER ANT Retirement Plan & Trust for Firefighters of the City of Clermont DRAFT Minutes Quarterly Meeting September 14, 2022 Adam Watkins made a motion to approve the Warrant dated August 24, 2022. The motion received a second from Ryan Moore, approved by the Trustees 5-0. 6. Other Business There was no other business. 7. Public Comment No members of the public had any comment. There being no further business and the next meeting having been previously scheduled for February 22, 2023 at 11:00 AM, Judd Lent adjourned the meeting at 12:42 PM, Respectfully Submitted, V Ryan etary