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HomeMy WebLinkAboutClermont Police 02-26-25 Meeting MinutesCity of Clermont Retirement Plan and Trust for the Police OfficersCLERMONT CfwicrofChampims DRAFT Quarterly Meeting Minutes -EB 26 2025� DECEMBER 41 2024 1. Jason Sayre called the meeting of the Retirement Plan and Trust for the Police Officers Board of Trustees to order at 9:03 AM, December 4, 2024, in the Council Chambers at the Clermont City Hall. He called roll, there was a quorum. Those persons present included: TRUSTEES OTHERS Jason Sayre, Chair Kyle Tintle, Administrator, Resource Centers Kelly Cartier (electronically) Bonni Jensen, Attorney, Klausner Kaufman Jensen & Levinson Mark Marshall Larry Cole & Mitchel Brennan, Investment Consultant, BCA John Baker Nadine Ohlinger, HR, City of Clermont (electronically) Scott Baur, Administrator, Resource Centers (electronically) Scott Borrow, Finance Director, City of Clermont Nancy Ziccardi, Human Resources Manager, City of Clermont Clermont Police Officers: Jordan Rebando, Abraham Class, & Chace Davis 2. Extraordinary (Exigent) Circumstances for Trustees Joining Electronically Jason Sayre made a motion to allow Trustee Kelly Cartier to join the meeting electronically. The motion received a second from John Baker, approved by the Trustees 3-0. 3. Approval of the Minutes The Trustees reviewed minutes for August 28, 2024. Mark Marshall made a motion to approve the Minutes for the August 28, 2024 meeting. John Baker seconded the motion. The motion was approved by the Trustees, 4-0. 4. Reports a) Larry Cole and Mitchel Brennan, Investment Consultant (Burgess Chambers Associates) Mr. Brennan presented a handout of a market and economic review and the quarterly report as of September 30, 2024. The best performer for the quarter was utilities as there is a huge demand for power due to the data centers. Real estate made a comeback during the quarter with the 2"d place quarterly high and followed by financials as the 3" highest quarterly returns. The total plan gained $2 million, or 6.1% (6.0$% net) and ranked in the 21" percentile. The ending market value was $34.6 million. The top 3 investments were Cohen & Steers Global Infrastructure, Fidelity Large Cap Value, And Fidelity Small Cap. Mr. Brennan discussed the 2 fed rate cuts and the market's reaction to the cuts and upcoming rate cuts. The markets are expecting another rate cut before the end of the year. He noted the US securities are overweighted but are comfortable with that, but made a rebalancing recommendation to sell $300,000 of the Fidelity Short Term Bond Fund and purchase $300,00 of the Fidelity US Bond Index Fund. Mr. Cole explained the Magnificent 7 stocks are still leading the markets but if the market diversifies the plan will do better. The trustees are concerned about the plan's rankings CF City of Clermont CLERWONT Retirement Plan and Trust for the Police 0 Icers 0"Ceo:c,,,,,,p;o'Is DRAFT Quarterly Meeting Minutes DECEM BER 4, 2024 Kelly Cartier made a motion based on the advice from the investment monitor to rebalance the portfolio. Jason Sayre seconded the motion. The motion was approved by the Trustees, 4-0. b) Bonni Jensen, Attorney Report (Klausner Kaufman Jensen & Levinson) Ms. Jensen provided a legislative update; memos were provided on the new contract provisions and the new withholding rules. The human trafficking prevention would require affidavits to attest they do not use coercion for labor or services. Beginning January 1, 2024, governmental entities with access to personal identifying information must obtain an affidavit that their firm is not owned by a government of a foreign country of concern. The new withhold rule concerns retirement plan payments to recipients located outside of the United States; the retirees can no longer elect no tax withholding. The regulation does not apply to non -US citizens or non-resident aliens of the US. c) Kyle Tintle, Administrator Report (Resource Centers) Ms. Tintle presented the updated conference schedule for 2025. Kelly Cartier recently attended a conference, learned a lot of information, and enjoyed Ms. Jensen's presentation. The share statements were provided for review by the board and the city. 5. Plan Financials The Trustees received the interim financial statement for September 30, 2024. The Warrant for December 4, 2024 was reviewed by the Trustees. Jason Sayre made a motion to approve the Warrant dated December 4, 2024. John Baker seconded the motion. The motion was approved by the Trustees, 4-0. 4. Benefits Approvals The Trustees reviewed the benefits for December 4, 2024 Jason Sayre made a motion to approve the benefits dated December 4, 2024. John Baker seconded the motion. The motion was approved by the Trustees, 4-0. 6.Other Business Ms. Jensen will follow up on the collection action for Kevitt as the attorney is getting ready to file the motion. A collections agent has been retained. 7. Public Comment No public comment CE= City of Clermont CLERWONT Retirement Plan and Trust for the Police Officers 0"LeU<<,,,,,,P;G-), DRAFT Quarterly Meeting Minutes DECEMBER 41 2024 8. The next pension board meeting will be Wednesday, February 26, 2025 at 9:00 AM. Jason Sayre made a motion to adjourn the quarterly meeting. Mark Marshall seconded the motion. The motion was approved by the Trustees, 4-0. Jason Sayre called the meeting adjourned at 9:51 AM. Date o9 1�6 h 5 OPERATING RULES AND PROCEDURES For The CITY OF CLERMONT POLICE OFFICERS' RETIREMENT PLAN Approved by the Board on: February 26, 2025 CITY OF CLERMONT POLICE OFFICERS' RETIREMENT PLAN OPERATING RULES AND PROCEDURES TABLE OF CONTENTS SECTION Rule 1 - Board of Trustees 1.1 Definition of Functions PAGE NUMBER 1.2 Definition of Fiduciary 1 1.3 Summary 1 1.4 Establishment of Offices 1 1.5 Conflicts of Interest and Gifts 2 1.6 Per Diem and Reimbursement 2 1.7 Election Procedures 2 1.8 Education Requirements 4 1.9 Disclosure of Financial Interests 4 Rule 2 - Meetings 2.1 Attendance at Board Meetings 5 2.2 Agendas and Other Meeting Materials 5 2.3 Rules of Order 6 2.4 Appearance Before the Board 6 2.5 Public Records 6 2.6 Government in the Sunshine 7 2.7 Committee Meetings 7 2.8 Workshops 7 2.9 Minutes 7 Rule 3 - Rules of Procedure 3.1 Legal Effect 3.2 Adoption Procedures Rule 4 - Plan Administrator / Office Personnel 4.1 Board Employees / Independent Contractors 8 4.2 Selection Standards 8 4.3 Evaluation and Compensation 8 4.4 Decision Making Authority 9 Rule 5 - Internal Procedures and Controls 5.1 Mail 9 5.2 Expense Payments from the Fund 9 5.3 Processing of Payments for Early or Normal Retirement and Return of Contributions 10 5.4 Review of Custodial Statements 11 5.5 Rollovers to and from the Fund 12 5.6 Deferred Retirement Option Plan Rules and Processing 12 5.7 Share Account Rules and Processing 12 5.8 Missing Benefit Recipients 12 Table of Contents Page 2 Rule 6 - Insurance 6.1 Fiduciary Insurance 13 6.2 Travel Coverage 14 Rule 7 - Relations With The City 7.1 Authority of the Board 14 7.2 Contractual Services 14 7.3 Use of the City Finance Department 14 7.4 Use of Independent Custodians 14 Rule 8 - Ordinance Changes 8.1 Form of Ordinance 15 8.2 Collective Bargaining 15 8.3 Appearance at City Council Meetings 15 8.4 Actuarial Enpac Studies 15 Rule 9 - Judicial Proceedings 9.1 Process 16 9.2 Dissolution of Marriage 16 Rule 10 - Investments 10.1 Performance Goals and Objectives 16 10.2 Reporting 16 10.3 Presentations by Prospective Consultants and Professionals 17 10.4 Divestiture 17 10.5 Declaration of Expected Annual Rate of Return 18 10.6 Investment Reports to the City 18 10.7 Hiring Investment Managers 18 10.8 Hiring Performance Monitors 18 10.9 Investment Standards 19 10.10 Decision Making Authority 19 10.11 Written Contracts 19 10.12 Proxy Voting 19 Rule 11 - Actuarial Services 11.1 Selection 20 11.2 Conflicts of Interest 21 11.3 Reporting 21 11.4 Setting Contribution Rates 21 11.5 Actuarial Studies for Individual Plan Members 21 Table of Contents Page 3 Rule 12 - Accounting Services / Administrative Budget 12.1 Audits 22 12.2 Conflicts of Interest 22 12.3 Review of Internal Controls 22 12.4 Detailed Accounting Report 22 12.5 Administrative Budget 23 Rule 13 - Legal Services 13.1 Selection 23 13.2 Conflicts of Interest 23 13.3 City of Clermont City Attorney 23 13.4 Privileged Communications 23 13.5 Authority to Direct 24 13.6 Contracts 24 Rule 14 - Claims Procedures 14.1 Claims of Affected Persons 24 14.2 Initial Hearing 25 14.3 Full Hearing 26 14.4 Conduct of the Full Hearing 28 14.5 Disability Claims - Additional Procedures 29 Rule 15 - Confidentiality 15.1 Extent of Confidentiality Permitted 29 15.2 Requirement for Maintenance of Confidentiality 30 15.3 Confidentiality of Medical Records 30 Rule 16 - Interest Calculations 16.1 Interest Calculations 30 Rule 17 - Retiree Review Procedures 17.1 Disability Review Procedure 31 17.2 Service Retiree Review Procedure 31 Rule 18 - Surveillance 18.1 Surveillance 32 Rule 19 - Insurance Premium Deductions 19.1 Insurance Premium Deduction Authorization 32 19.2 Tax -Free Payment of Insurance Premiums 33 19.3 Retirees Who are Eligible for the Tax -Free Payment of Qualified Insurance Premiums 33 RULE 1 BOARD OF TRUSTEES 1.1 DEFINITION OF FUNCTIONS The Board of Trustees shall act as the named fiduciary of the Fund as defined by Florida law. The Board shall have the exclusive authority to operate, maintain and interpret the provisions of the state laws and local ordinances establishing and executing the investment policy of the Fund. The Trustees shall be solely responsible for the selection and retention of professional advisors to the Fund including but not limited to investment managers, performance monitors, plan administrators, attorneys, accountants, actuaries, and clerical staff. 1.2 DEFINITION OF FIDUCIARY A fiduciary shall be defined as a person responsible for the discharge of his duties with respect to the Pension Plan solely in the interest of the participants and beneficiaries for the exclusive purpose of providing benefits to participants and their beneficiaries and defraying the reasonable expenses of administering the Plan. 1.3 SUMMARY Trustees shall be responsible for the investment and reinvestment of the assets of the Fund; for determining all claims for retirement benefits; for exercising the sole and exclusive adminis- tration of and the proper operation of the Plan; to perform such actuarial and accounting functions as are required by law; to prepare and distribute a Summary Plan Description as provided in § 112.66, Florida Statutes, to the Members of the Fund upon employment and every other year thereafter; and to fulfill all other such duties as may be required by law. 1.4 ESTABLISHMENT OF OFFICES The Board of Trustees shall elect a Chairman and Secretary every two years. The officers shall be Trustees of the Board. The Chairman shall be responsible for the conduct of all meetings of the Board and shall have voting rights the same as any other Trustee of the Board. The Chairman shall perform such other duties as the Trustees may assign. The Plan Administrator shall be responsible for the keeping of minutes of the transactions of the Board. The Secretary, together with the Chairman, shall execute all official contracts of the Board. The Board may delegate to the Plan Administrator, any function which will assist the Board in carrying out its duties and responsibilities. -1- 4.5 CONFLICTS OF INTEREST AND GIFTS A. Conflicts of interest in voting shall be governed by the provisions of Section 112.3143, Florida Statutes, the Code of Ethics for Public Officials. Notwithstanding any other provision of law, no Trustee shall vote or participate in a determination of any matter in which that Trustee shall receive a special private gain except in the case of employee Trustees voting on benefits applicable to all Members of the Plan. B. No Trustee (or his or her spouse or minor child) shall, at any time, solicit or accept any gift (including but not limited to, food, beverages and transportation), loan, reward, promise of future employment, favor, service, compensation, payment, or thing of value when the Trustee understands, knows or should have known that it was given to influence a vote or other action in which the Trustee was expected to participate in his official capacity. Gifts provided directly or indirectly by a state, regional or national organization which promotes the exchange of ideas between, or the professional development of, members of that organization or staff of a governmental agency that is a member of that organization, are permitted. 1.6 PER DIEM AND REIMBURSEMENT All Trustees shall be entitled to receive both a per diem allowance and a reimbursement for reasonable expenses incurred in conducting the business of the Fund. The Board sets the per diem and reimbursement rates in accordance with the U.S. General Services Administration rates located here: https://www.gsa.gov/travel/plan-book/per-diem-rates. 1.7 ELECTION PROCEDURES The Board of Trustees shall consist of five persons, two of whom shall be Police Officers, two of whom shall be legal residents of the City appointed by the City Council and the fifth Trustee shall be a person selected by the other four Trustees and appointed as a ministerial act by the City Council. A. Police Officer Trustees. The Police Officer Trustees shall be elected from among the Members of the Fund in the Police Department. Elections shall be by a Majority vote. If no candidate receives a majority vote, a run-off election between the two top vote recipients shall be held at the earliest practical date. Elections shall be every other year, with both seats elected in the -2- October or November preceding the expiration of the second year of the terms. Trustees shall take office December 1 st. Employees shall be permitted to nominate themselves for office. The election may be conducted by placement of a ballot box in the Police Department Headquarters for a period of 72 hours beginning on dates to be selected by the Board or by mail -in ballots. As an alternative, the Board may utilize an electronic survey method, with the election conducted by sending a ballot or survey form to each member of the plan, with results to be returned within five (5) days of the date the ballot or survey is sent. Ballots shall be counted by the Board and the winners certified by the Board. B. Resident Trustees. The two resident Trustees shall be legal residents of the City and shall be appointed for two year terms by the City Council in October or November. Resident Trustees shall take office on December 1 st. C. Fifth Trustee. The fifth Trustee of the Board shall be chosen for a two year term every other year at the first meeting following the selection of the other Trustees. The fifth Trustee may or may not be a legal resident of Clermont and may or may not be an employee of the City. The name of the person selected by a majority of the other Trustees shall be certified to the City Council which shall, in accordance with state law, ratify the appointment of that person as a ministerial act. D. MID-TERM VACANCY. 1. Declaring Vacancy. If a Trustees resigns, is removed or becomes ineligible to serve, the office of that Trustee is considered vacated. 2. Notice of Vacancy. If a vacancy occurs for any of the Pension Board positions, members shall be notified by the Administrator. Vacancies will be filled in the same manner as the original election or appointment. 3. Filling of Vacancies. The person selected to fill a vacancy shall fulfill only the remaining term of the vacant office. a. If the vacancy of a Police Officer Trustee occurs less than ninety (90) days before the Trustee's term was due to expire, the vacancy shall be filled at the next regular election. Otherwise, the Police Officer Trustee vacancy shall be filled for the unexpired portion of the term -3- by a new election. The Board of Trustees may reduce the time required for notice of the election, notice of candidacy, or any other time limits to expedite a new election. b. Vacancies among the Resident Trustees shall be filled by the City Council. C. In the event of a vacancy in the Fifth Trustee of the Board, the Board shall appoint a successor in the same manner as the initial selection. 1.8 EDUCATION REQUIREMENTS Each Trustee is required to attend a seminar or conference regarding Trustee duties and responsibilities and matters relating to the investment program of the Plan at least once each term. Trustees are encouraged to attend seminars or conferences more frequently in order to remain informed regarding pension issues. New Trustees are encouraged to attend within the first six months of their term. Trustees shall be permitted to attend conferences or schools within the State of Florida to satisfy the above minimum requirements without prior Board approval. The Plan Administrator will maintain a current record of all Trustee training. 1.9 DISCLOSURE OF FINANCIAL INTERESTS Trustees must file a statement of financial interests (Form 1) using the Electronic Financial Disclosure Management System (EFDMS) within 30 days from the date of appointment and no later than July 1 of each year thereafter. Trustees must file a final statement (Form 1 F) using the EFDMS portal within 60 days after leaving their office as Trustee. The final statement shall cover the period between January 1 of the year in which the Trustee leaves office and the last day of office. If a Trustee has not filed by September 1, an automatic fine of $25.00 per day will be imposed up to a maximum of $1500.00. Fines cannot be paid from the pension plan. The Trustee may also be subject to additional penalties provided for in § 112.317, Florida Statutes. 0 RULE 2 MEETINGS 2.1 ATTENDANCE AT BOARD MEETINGS The Board shall set its own schedule of meetings. Special meetings may be called by the Chairman or by a majority of Trustees. The Board shall meet at least once each quarter. In recognition of the importance of the work of the Board, regular attendance at Board meetings is expected of all Trustees. Physical attendance of a quorum is required at meetings in order for the Board to conduct business. Once the physical presence of a quorum is established, Trustees not physically present may participate telephonically if so noted on the meeting agenda. Trustees shall only be permitted to attend meetings of the Board by teleconferencing or telephone if extraordinary circumstances exist for the Trustee's absence, as determined by the Board, and only if a quorum (3) of the Trustees is physically present at the meeting. Trustees who are permitted to remotely attend meetings shall be permitted to participate and vote at such meetings. Any Trustee who fails to attend two consecutive meetings of the Board without an excuse acceptable to the other Trustees shall be deemed to have resigned from the Board. Employee Members of the Fund who are called into the active service of the City at the time of a Board meeting shall automatically be deemed excused. 2.2 AGENDAS AND OTHER MEETING MATERIALS A published Notice of Meeting and Agenda shall be prepared for each regular and special meeting of the Board. The Notice of Meeting and Agenda shall set forth those items upon which the Board anticipates taking action or discussing. Each agenda item shall have attached to it backup material necessary for discussion or action by the Board. Each Notice of Meeting and Agenda shall inform members of the public that should they wish to appeal any decision made by the Board that they will need a record of the proceedings and that they may need to ensure a verbatim record is taken, which includes testimony and evidence upon which the appeal is based. In addition, the Notice of Meeting and Agenda shall also include a notice to members of the public offering to provide assistance to those who are disabled, should they need assistance in order to attend the meeting. A copy of the Notice of Meeting and Agenda shall be posted electronically on the -5- Clermont City website where notices of public meetings are customarily posted. The Board must provide and post reasonable notice of all meetings. All agendas and meeting materials are public records as defined in Chapter 119, Florida Statutes. 2.3 RULES OF ORDER In recognition of the importance of accomplishing the objectives of the Board in a most orderly fashion, the Board may establish rules of order for the conduct of its meetings. The Board shall not, however, be bound by strict observance of the rules of parliamentary procedure unless the Board deems it in its best interest to do so. 2.4 APPEARANCE BEFORE THE BOARD As a public body, the Board has a responsibility to accommodate members of the public and Members of the Fund who wish to appear before the Board. All appearances before the Board shall be scheduled through the Plan Administrator and time limits for presentations may be established by the Board. Appearances before the Board may be in person or through a representative. All communications with the Board shall either be in writing or by personal appearance at a Board meeting. 2.5 PUBLIC RECORDS A. The records of the Fund are public records as set forth in Chapter 119, Florida Statutes, except for medical records of the Fund. The Board shall maintain the confidentiality of medical records as required by law. All medical records of Members of the Fund shall be maintained separately from other records of the Board so as to ensure security of the privileged information to which the Board is privy. B. The Board shall appoint a Records Management Liaison Officer (RMLO) in accordance with Section 257.36, Florida Statutes. The RMLO shall be the official custodian of the records of the Board. The Board shall adopt the Florida General Records Schedule GS1-SL, as amended from time to time, and shall maintain an active and continuing program for the economical and efficient management of Board records. 02 2.6 GOVERNMENT IN THE SUNSHINE All meetings of the Board shall be conducted in accordance with the provisions of Section 286.011, Florida Statutes, the Government in the Sunshine Act. No Trustee shall engage in communications with another Trustee outside of a public meeting on any matter which shall ultimately be the subject of a Board action. All meetings of Trustees at which official business of the Board shall be discussed shall be publicly noticed and open to the public in accordance with the law. All meetings of the Board shall be held in a location where public access is reasonably available. Regular meetings of the Board shall be held in Lake County, Florida. 2.7 COMMITTEE MEETINGS The Board, in the conduct of its business, may choose to establish committees consisting of a lesser number of Trustees. Committees shall be appointed by the Chairman. Committees consisting of two or more Trustees shall be conducted in accordance with the Government in the Sunshine Law. Committees consisting of one Trustee shall maintain records in accordance with the Public Records Act but need not conduct its business pursuant to a publicly noticed meeting. All reports of committees shall be reduced to writing and made a part of the official records of the Board. 2.8 WORKSHOPS The Board may from time to time wish to conduct workshop meetings for the purposes of developing policies or procedures of the Board or for the review of investment data of the Board. Workshops shall be conducted in a public forum the same as any other meeting and shall have a published agenda in advance of the workshop. 2.9 MINUTES Complete minutes of all meetings of the Board or a Committee shall be promptly prepared by the Plan Administrator following the meeting and all minutes shall be submitted to the Board for approval following their preparation. All minutes shall be open for public inspection. -7- RULE 3 RULES OF PROCEDURE 3.1 LEGAL EFFECT The Board of Trustees is authorized by law to establish rules of procedure for the operation of the Fund. No rule or regulation of the Fund may conflict with any lawful ordinance, charter provision or state law. 3.2 ADOPTION PROCEDURES All rules to be adopted by the Fund shall be in writing and shall be adopted by a majority vote of the Board. The Board shall review its rules and regulations on a periodic basis. The rules and regulations of the Fund shall be made available to any member of the Fund by requesting a copy from the Plan Administrator. RULE 4 PLAN ADMINISTRATOR / OFFICE PERSONNEL 4.1 BOARD EMPLOYEES / INDEPENDENT CONTRACTORS The Board shall establish specific job descriptions for each classification of service provided to the Board. New employees and independent contractors of the Board shall not, by virtue of their employment by the Board, be civil servants of the City of Clermont and shall serve at the pleasure of the Board. 4.2 SELECTION STANDARDS The Board shall establish for each classification of service, standards of education, experience and skills necessary for the execution of the duties of the position. The Board may delegate the initial screening process for applicants to a committee of the Board. The final decision for the employment of any person as an employee or independent contractor shall be determined by the Board of Trustees acting as a whole. 4.3 EVALUATION AND COMPENSATION All employees and independent contractors of the Board shall be evaluated periodically. Compensation shall be established by the Board of Trustees. Ef 4.4 DECISION MAKING AUTHORITY No employee or independent contractor of the Board shall have the authority to bind the Board of Trustees in any contract or endeavor without the express authority of the Board. RULE 5 INTERNAL PROCEDURES AND CONTROLS 5.1 MAIL The Plan Administrator shall be responsible for opening, dating and transmitting mail. All mail received by the Board shall be dated, stamped and reviewed for any time limitations or response dates. The mail shall be placed in folders bearing the names of the recipient of the mail. Mail addressed to the Board in general and to no specific person shall be directed to a person designated by the Board. All official decisions of the Board shall be sent by mail. A "reading file" of all correspondence coming into and emanating from the Board shall be maintained on a monthly basis together with copies in any specific files as may be established. In all respects, the provisions of Chapter 119, Florida Statutes, the Public Records Act, shall be observed. 5.2 EXPENSE PAYMENTS FROM THE FUND A. Payments to professionals performing services previously authorized by the Board or for other expenses authorized by the Board shall routinely be made prior to Board approval as follows: (1) Statements received for services or expenses which are not pursuant to a written agreement shall be paid, but only if such statements do not exceed $250.00. (2) Statements received for services or expenses which are rendered pursuant to a written agreement shall be paid if deemed to be in accordance with the agreement. All payments made pursuant to paragraphs (1) and (2) above shall be considered by the Board at the first meeting following such payment and approved and ratified, if appropriate. 0 B. Any other payments from the Fund not described in subsection A. above shall be approved by the Board prior to such payment. C. Authorization for payments from the Fund shall be in writing and signed by at least two trustees of the Board, or solely by the Plan Administrator. 5.3 PROCESSING OF PAYMENTS FOR EARLY OR NORMAL RETIREMENT AND RETURN OF CONTRIBUTIONS A. Upon receipt of an application for early or normal retirement, the Board's Plan Administrator shall process the application as follows: (1) The application shall be reviewed for accuracy and completeness and for eligibility for benefits. (2) A copy of the application and any necessary records from the City shall be forwarded to the actuary for calculation of the benefit amounts payable for the normal form and all optional forms of benefits. (3) Upon receipt of the actuary's calculations, the calculations shall be presented to the Retiree and the Retiree shall make his election. (4) The application shall be approved by the Plan Administrator and shall then be provided to the Custodian along with any necessary supporting documents in order to begin payments. (5) Copies of the Retiree's election form and the actuary's calculations shall be provided to the Board of Trustees prior to the commencement of payments or at the next meeting immediately following the commencement of payments, and the Board shall review and approve the retirement benefits. B. Upon the termination of employment of a Member prior to his early or normal retirement date, the Board's Plan Administrator shall: (1) Determine whether the Member is vested or not vested and determine the amount of the Member's contributions. (2) Inform the Member of his right to leave his contributions in the plan or withdraw his contributions. If the Member desires to withdraw his contributions, provide the Member with the necessary forms, including the -10- appropriate Return of Contributions form, the Special Tax Notice Regarding Plan Payments and the Certification of Receipt of the Special Tax Notice and the Lump Sum Distribution Election Form; (3) Recommend that the Member study and complete the appropriate forms and seek tax and/or legal advice regarding his choice. (4) Direct the Member to return the completed forms to the Plan Administrator; (5) Upon receipt of the properly completed forms, prepare and submit a payment request signed by the Plan Administrator and copies of any necessary documents to the Custodian to authorize the requested payment or rollover; (6) Provide copies of all documents to the Board of Trustees prior to payment or at the next meeting immediately following the payment, for the Board to approve the payment. C. Pension payments should only be made as provided above. 1099-R reporting forms to Retirees must contain the proper information and codes to ensure that Retirees report the proper amounts on their personal income tax returns. In -line -of duty disability benefits shall be reported as "taxability undetermined" on 1099-R forms. 5.4 REVIEW OF CUSTODIAL STATEMENTS A. Custodial reports should be monitored by the Board or its designee for disclosure of all asset inflows such as City and Member contributions, state excise tax payments, if applicable, miscellaneous citizen donations, and investment income. All errors, including those involving the misclassifications of Plan revenues, e.g., recording Member contributions as City contributions, must be corrected. B. Custodial reports should also be monitored for all asset outflows. Asset outflows must be properly approved and verified on audit. Expenses shall be approved as provided in Rule 5.2 and Retirements and Returns of Contributions in accordance with Rule 5.3. Letters of authorization for the expenditure of funds must be issued by the Board and copies must be maintained in orderly files. -11- 5.5 ROLLOVERS TO AND FROM THE FUND The Fund will accept and transfer eligible cash rollover distributions to and from the Fund as permitted by local, State and Federal law. The Board may adopt appropriate forms to facilitate such rollovers. 5.6 DEFERRED RETIREMENT OPTION PLAN RULES AND PROCESSING A. The Board of Trustees shall establish the procedure to begin participation for Members who are eligible to participate in the Deferred Retirement Option Plan (DROP), including the adoption of an Application/Agreement to be completed and executed by the Member prior to DROP participation. The Application/Agreement shall inform the Member of the ramifications of DROP participation and shall require the Member to acknowledge such ramifications and also acknowledge that the Member has had the opportunity to seek independent legal/financial advice prior to DROP participation. B. The Board of Trustees will have annual reports prepared and distributed as of each September 30th to provide each DROP member with all necessary information regarding his or her DROP account, for those members electing the net plan return investment option. 5.7 SHARE ACCOUNT RULES AND PROCESSING The Board of Trustees shall have annual statements prepared as of each September 30' to provide each eligible Member or DROP participant for whom a Share Account has been created, with all necessary information regarding his or her Share Account balance as of the end of the preceding plan year. The Board of Trustees shall establish the procedure for the distribution of individual Share Account monies upon the eligible Member's or DROP participant's termination of employment or death. 5.8 MISSING BENEFIT RECIPIENTS If the Board cannot ascertain the whereabouts of any person to whom a full, unreduced benefit payment is due, including payments due under the DROP, the Board shall follow procedures outlined in the IRS Employee Plans Compliance Resolution System (EPCRS) program and other applicable IRS guidance to locate any missing individuals who are owed benefits and, if at the conclusion of such efforts the individual cannot be located, the existing procedure of cancelling -12- payments otherwise due (provided that, if the individual is later located, the benefits due shall be paid) will apply. steps: In the event that a benefit is due to a person who is missing, the plan shall take the following A. Search plan and related plan, City and publicly -available records or directories for alternative contact information. B. Use any of the following search methods: (1) A commercial locator service; (2) A credit reporting agency; or (3) A proprietary internet search tool for locating individuals. C. Attempt contact via the United States Postal Service (USPS) certified mail to the last known mailing address and through appropriate means for any address or contact information (including e-mail addresses and telephone number). If such person has not made written claim for benefits within three (3) months of the date of the mailing, the Board may, if it so elects and upon receiving advice from Counsel to the System, direct that such payment and all remaining payments otherwise due such person be canceled on the records of the System. Upon such cancellation, the System shall have no further liability therefor except that, in the event such person or his beneficiary later notifies the Board of his whereabouts and requests the payment or payments due to him, benefits due to him shall be paid to him in accordance with the provisions of the Plan. RULE 6 INSURANCE 6.1 FIDUCIARY INSURANCE The Trustees are authorized by law to purchase fiduciary insurance to insure members of the Board for breaches of fiduciary duty at the expense of the Fund, but the Fund shall not pay to waive recourse against Trustees. A rider waiving recourse may be purchased and paid for by the City or by a Trustee. -13- 6.2 TRAVEL COVERAGE The fund may purchase, at its expense, life and accidental death and dismemberment insurance for each Trustee who shall travel outside of Lake County for the purpose of Board related business. RULE 7 RELATIONS WITH THE CITY 7.1 AUTHORITY OF THE BOARD The Board of Trustees is an independent entity established by state law, city charter and local ordinance. The Board of Trustees shall not be considered a component part of nor subordinate to the City of Clermont government. The Board shall have exclusive control of the operation of the Fund; however, no change to the retirement ordinance may be made except by action of the State Legislature or the City Council. 7.2 CONTRACTUAL SERVICES In the selection of contractual services, the Board shall pay particular attention to the existence of conflicts of interest when contractors are to be employed by the Board for services similar to services which the contractor also provides to the City of Clermont. 7.3 USE OF THE CITY FINANCE DEPARTMENT The Board shall be authorized to utilize the services of the City for the performance of banking functions of the Board. The City shall have no discretionary authority with regard to the utilization or direction of funds of the Board. The precise duties of the City shall be reduced to writing, the same as any other contract for services entered into by the Board. 7.4 USE OF INDEPENDENT CUSTODIANS The Board shall be authorized to use the services of any duly qualified custodian in lieu of the City Finance Department for the performance of banking functions of the Board. The custodian shall be duly licensed, insured and bonded and shall meet all of the depository requirements of Chapter 280, Florida Statutes. -14- RULE 8 ORDINANCE CHANGES 8.1 FORM OF ORDINANCE No ordinance change affecting the Pension Fund shall be presented for a vote to the City Council unless first reviewed and approved by a majority of the Trustees in accordance with the existing law governing the Fund. All proposed ordinances shall be reviewed by the General Counsel to the Fund who shall pass on the form and correctness of the ordinance. All proposed ordinance changes carrying an economic benefit shall be reviewed by the actuary to determine the cost as required by law. 8.2 COLLECTIVE BARGAINING The Board of Trustees acknowledges that it is neither an employee organization nor an employer as defined by Chapter 447, Part II, Florida Statutes. Therefore, the Board shall not engage in collective bargaining on behalf of the City of Clermont or on behalf of any employee organization. The Board shall make itself available as a resource to labor organizations and the City for all matters relating to pension and retirement, if any. 8.3 APPEARANCE AT CITY COUNCIL MEETINGS The Board of Trustees shall, through one of its members, its designee or its General Counsel, be present at all City Council meetings where a discussion of matters of interest to the Board shall occur. The Board shall, prior to said meeting, designate an official spokesperson on behalf of the Fund. 8.4 ACTUARIAL STUDIES No benefit change shall occur without an actuarial impact study as required by State law. Actuarial studies initiated by the Board of Trustees shall be at the expense of the Fund. Actuarial studies requested by the City or the Union, if any, and authorized by the Board shall be paid for by the City or the Union, respectively. -15- RULE 9 JUDICIAL PROCEEDINGS 9.1 PROCESS All process issued by federal or state courts to the City of Clermont concerning the Pension Fund or to the City of Clermont Police Officers' Retirement Plan shall immediately upon receipt be forwarded to the General Counsel for the Fund who shall respond thereto. 9.2 DISSOLUTION OF MARRIAGE Upon entering into a Dissolution of Marriage, a Plan Member shall notify the Plan Administrator of the Member's attorney's name, address and telephone number. The Plan Administrator shall then promptly provide that information to the General Counsel to the Fund. RULE 10 INVESTMENTS 10.1 PERFORMANCE GOALS AND OBJECTIVES The Board shall establish performance goals and objectives for each investment manager in each class of investment and shall establish expected rates of return. The investment policy shall comply with the minimum requirements set forth in Sections 112.661 and 112.662, Florida Statutes. The performance goals and objectives shall be reduced to writing in an Investment Policy Statement. The performance goals and objectives shall be reviewed on not less than an annual basis and shall be compared to the actual performance of an investment manager to determine compliance with the goals and objectives set by the Board. All Investment Policy Statements and amendments thereto shall immediately be provided to the City, the Department of Management Services and to the Board's actuary. 10.2 REPORTING All investment managers and performance monitors of the Fund shall report on not less than an annual basis. The investment managers and monitors may, however, be directed by the Trustees to report on a more frequent basis. All such reports shall be in writing and shall be presented in person by a representative of the investment manager or performance monitor who has authority to -16- make discretionary decisions with regard to the Trust's account and to settle claims and disputes arising from the contract. All such investment managers and performance monitors shall make these presentations in person at a regular meeting of the Board and shall bear their own costs and expenses in traveling to Board meetings. Mutual fund and commingled fund managers may be excused from making presentations to the Board. The performance monitors shall attend at least an annual meeting of the Board and shall report, in writing, the progress of each investment manager. The performance monitor shall also make written recommendations regarding retention of investment managers and changes in investment policy. Mutual fund and commingled fund managers may be excused from making presentations to the Board. 10.3 PRESENTATIONS BY PROSPECTIVE CONSULTANTS AND PROFESSIONALS In recognition of the limited time resources of the Board, presentations of prospective investment managers, performance monitors, custodians or other prospective professional advisors shall only be by written invitation of the Board. The Board shall maintain records of such prospective managers, monitors, custodians and other professionals to be reviewed by the Board in the event the Board wishes to consider adding or making a change in its current manager, monitor, custodian or other professional. In the event the Board elects to consider retaining a new manager, monitor, custodian or other professional, prospective applicants, including those applicants who had previously provided information to the Board, may be contacted and provided with a Request for Proposal. The Board or a committee appointed by the Board may conduct the initial screening of applicants by reviewing the proposals received in response to the Requests for Proposals. The Board may then schedule personal presentations by a "short-list" of qualified applicants. The Board may also decide to retain managers, monitors, custodians and other professionals by utilizing any other method which the Board deems to be prudent under the circumstances. 10.4 DIVESTITURE No divestiture of any asset of the Fund shall be made for any reason other than fulfillment of the fiduciary obligations of the Fund or compliance with State law. -17- 10.5 DECLARATION OF EXPECTED ANNUAL RATE OF RETURN For each actuarial valuation, the Board shall seek the advice of its investment professionals and the actuary and then the Board shall determine the total expected annual rate of investment return for the current year, for each of the next several years and for the long term thereafter. This determination must be filed promptly with the Department of Management Services, with the City and with the Board's actuary. 10.6 INVESTMENT REPORTS TO THE CITY The Board shall prepare annual fiscal year end reports for submission to the City Council, which shall include the investments in the portfolio by class or type, book value, income earned and market value as of the end of the fiscal year. 10.7 HIRING INVESTMENT MANAGERS In recognition of the importance of professional guidance in the investment of the assets of the Fund, all investments shall be performed by qualified, professional investment managers. The investment managers shall be selected at a regular or special meeting of the Board of Trustees by a majority vote of the Board. The Board may delegate the initial screening of investment managers to a committee of the Board but no final decision shall be made except at a meeting of the Board. All proposals for investment manager services shall be presented in writing to the Board and shall be made a part of the records of the Board. 10.8 HIRING PERFORMANCE MONITORS The Board shall engage at all times, at least one performance monitor who shall be responsible for reviewing the performance of the various investment managers of the Fund. The performance monitor shall report to the Board on such time schedules as the Board shall establish but not less than annually. The performance monitor shall advise the Board as to the relative performance of each investment manager as compared to the various stock, bond and cash indices as are generally accepted in the investment market place as reflective of satisfactory investment performance. The performance monitor shall recommend in writing to the Board the retention or discharge of investment managers and the reasons supporting its recommendation. At the request In of the Board, the performance monitor may perform evaluation and searches for investment managers and such other services as the Board shall request be performed. 40.9 INVESTMENT STANDARDS The Board shall establish written investment standards in the Investment Policy Statement. The standards shall set forth the distribution of the Fund among equities, fixed income, cash and cash equivalents, and other forms of lawful investment. The standards shall set forth the relative percent- ages of the Fund to be distributed to each investment vehicle and shall establish permissible risk factors. Each investment manager shall subscribe to the Investment Policy Statement setting forth the written investment standards and performance goals and objectives of the Fund and the Investment Policy Statement shall be incorporated into each investment manager contract by reference. 10.10 DECISION MAKING AUTHORITY The Board of Trustees shall determine the retention or discharge of any investment manager or performance monitor. The Board shall also establish the amount of funds to be entrusted to any investment manager and shall determine when funds shall be withdrawn and investments terminated. The Trustees shall not, however, participate in the selection of individual stocks, bonds or cash funds as that shall be the responsibility of the investment manager within the context of the performance goals and objectives and investment standards established by the Board. 10.11 WRITTEN CONTRACTS Each investment manager and performance monitor shall enter into a written contract with the Board. Each contract shall include the provisions set forth in the Statement of Policy Regarding Contractual Provisions for Investment Managers which is Exhibit A to these Rules. 10.12 PROXY VOTING The Trustees shall be responsible for exercising all proxies on equities held by the Fund. The Trustees shall comply on a voluntary basis with the standards of the Employee Retirement Income Security Act of 1974 in the voting of proxies. The Board shall, by contract or other written agree- ment, give all investment managers proxy voting responsibility and the Trustees shall monitor the voting of the managers. -19- The Trustees (along with the United States Department of Labor) do not consider the following practices by investment management firms with proxy voting responsibility to be consist- ent with their fiduciary responsibility: A. Declining to vote proxies; B. Voting proxies exclusively for management without analysis ofthe underlying issues; C. Permitting negligent or inaccurate record -keeping regarding proxy voting; D. Accepting directions from other parties; E. Permitting the absence of policies or procedures to assure the proper exercise of this fiduciary responsibility. Any significant proxy items and the vote by an investment manager shall be reported in writing to the Trustees. Records of all proxy votes shall be maintained and made available to the Trustees or any agents acting in their behalf. All such records shall be maintained in accordance with the Florida Public Records Act. It shall be the primary responsibility of investment managers acting on behalf of the Board to vote all proxies to enhance the value of the Fund assets. All tender offers shall be treated in the same manner with regard to record -keeping and asset enhancement. Pursuant to Florida Statutes § 112.662, when proxy voting, only "pecuniary factors" can be considered. As used in this policy, pecuniary factors are defined as a factor that an investment fiduciary "prudently determines is expected to have a material effect on the risk or returns of an investment based on appropriate investment horizons consistent with the investment objectives and funding policy of the retirement system. The term does not include the consideration of the furtherance of any social, political, or ideological interests." RULE 11 ACTUARIAL SERVICES 11.1 SELECTION The Board of Trustees shall retain at all times the services of an enrolled actuary. An enrolled actuary shall mean an actuary who is enrolled under Subtitle C of Title III of the Employment Retirement Income Security Act of 1974 and who is a member of the Society of -20- Actuaries or the American Academy of Actuaries. Competitive bidding shall not be required in the selection of actuaries. 11.2 CONFLICTS OF INTEREST In order to avoid conflicts of interest in the delivery of actuarial services, the Board shall not retain actuaries who are employed by the City of Clermont, unless the Board is determined to be the client by a separate engagement letter or contract. 11.3 REPORTING The actuary shall report to the Board on not less than an annual basis so that the Board may establish the adequacy of employer and employee contribution rates. Valuations shall be done at least every three years. No proposed change in retirement benefits shall be made without an actuarial determination of the cost impact of the change. All actuarial reports shall be in accordance with the provisions of Section 112.63, Florida Statutes. 11.4 SETTING CONTRIBUTION RATES Pursuant to the ordinances of the City of Clermont, the Board is solely responsible for establishing the contribution rates of the City. The City contribution rate shall be established following an analysis of the adequacy of employee contributions, contributions from the State of Florida Insurance Rebate Program and investment earnings of the Fund. The amount of the City contribution shall be certified in writing to the City Council in accordance with the provisions of local ordinance. 11.5 ACTUARIAL STUDIES FOR INDIVIDUAL PLAN MEMBERS Each vested Plan Member shall be entitled, at the Fund's expense, to receive two actuarial studies to estimate his or her retirement benefits. Any additional studies shall be provided only at the Member's expense. Benefit calculations for terminated vested persons shall be performed by the actuary immediately upon termination. -21- RULE 12 ACCOUNTING SERVICES / ADMINISTRATIVE BUDGET 12.1 AUDITS The Fund shall cause to be made not less than on an annual basis an audit of the assets and liabilities of the Fund. Financial reporting should be made in accordance with generally accepted accounting standards. A. All postings from the custodial statements to the Plan's working trial balance should be in accordance with the Board's general and/or specific authorizations. B. All transactions recorded in the custodial statements should be analyzed, summarized and accurately posted to the correct trial balance accounts in the correct time period. C. All adjustments, deductions or write-offs of account balances should be calculated, summarized and recorded in the correct period. D. All postings to the working trial balance should be supported by and reference to adequate, authorized documentation. 12.2 CONFLICTS OF INTEREST In order to avoid conflicts of interest in the delivery of auditing services, the Board shall not retain auditors who are employed by the City of Clermont, unless the Board is determined to be the client by a separate engagement letter or contract. 12.3 REVIEW OF INTERNAL CONTROLS The policies and procedures provided for in these Operating Rules and Procedures shall be reviewed by the independent certified public accountant as part of the financial audit to determine the effectiveness of such controls to prevent losses of funds which might arise from fraud, error, misrepresentation by third parties, or imprudent actions by the Board or employees of the City. 12.4 DETAILED ACCOUNTING REPORT The Board of Trustees shall provide a detailed accounting report of its expenses for each fiscal year to the City and the Department of Management Services and make the report available to each member of the plan, and post the report on the Board's website, if the Board has a website. The report must include all administrative expenses that, for purposes of this subsection, are -22- expenses relating to any legal counsel, actuary, plan administrator, and all other consultants, and all travel and other expenses paid to or on behalf of the members of the Board of Trustees, or anyone else on behalf of the plan. 12.5 ADMINISTRATIVE BUDGET The Board of Trustees shall adopt and operate under an administrative expense budget for each fiscal year, provide a copy of the budget to the City by October 1 st, and make available a copy of the budget to plan members before the beginning the fiscal year. If the Board of Trustees amends the administrative expense budget, the Board must provide a copy of the amended budget to the City and make available a copy of the amended budget to plan members. RULE 13 LEGAL SERVICES 13.1 SELECTION The Board shall select and appoint a General Counsel who shall be licensed to practice law in the State of Florida. The General Counsel shall have demonstrated competence in the area of public employee retirement systems in the State of Florida and shall have been practicing law for not less than ten years. Competitive bidding is not required in the selection of legal services. 13.2 CONFLICTS OF INTEREST In recognition of the requirement that attorneys be independent in their judgment as set forth in the Code of Professional Responsibility, no attorney may serve as General Counsel who is also performing legal services on the part of the City of Clermont or who otherwise engages in any legal services which the Board deems to be in conflict with its interests. 13.3 CITY OF CLERMONT CITY ATTORNEY In recognition of the responsibilities of the City Attorney to the City of Clermont and the potential for representing competing interests, the office of the City Attorney may not serve in any legal capacity on the part of the Trust, unless agreed to for specific purposes. 13.4 PRIVILEGED COMMUNICATIONS In all dealings between its General Counsel and the Board, the Board shall be deemed the client rather than any individual Trustee of the Board. All communications between the Board and -23- its General Counsel shall be privileged communications except where otherwise governed by the Government in the Sunshine Law. 13.5 AUTHORITY TO DIRECT The General Counsel shall take direction from the Board of Trustees as maybe given at the various meetings of the Board. In between meetings of the Board, direction to the General Counsel shall be given by the Chairman or other person directed by the Board. All files of the General Counsel to the Fund shall be open for inspection by any Trustee. 13.6 CONTRACTS If possible, all contracts shall provide that the laws of Florida shall govern and that venue for any legal action shall be in Lake County, Florida. In no event shall any contract be terminable by the service provider with less than 45 days' written notice, unless otherwise agreed to by the Board. All written contracts shall be reviewed by the General Counsel to the Fund who shall approve the form and correctness of each such contract. All written contracts shall be executed by the Chairman and Secretary of the Board. RULE 14 CLAIMS PROCEDURES 14.1 CLAIMS OF AFFECTED PERSONS A. The Board of Trustees shall grant an initial hearing upon receipt of a written request ("Claim"), on matters which affect the substantial rights of any person ("Claimant"), including Members, Retirees, Beneficiaries, or any person affected by a decision of the Board of Trustees. In the case of disability claims, in addition to a written request the Board must also receive a written medical release authorization in a form approved by the General Counsel and a completed set of interrogatories prepared by the General Counsel and provided to the Claimant. B. The Board shall review the Claim at an initial hearing within a reasonable time period sufficient to gather records and for full Board review, with due consideration given to the availability of the Claimant. -24- C. It shall be the function of the General Counsel, throughout the claims procedure, to assist the Board in the discovery and presentation of evidence in order to assure that the Board receives all relevant information prior to the Board's initial decision. D. The Claimant shall have the right to be represented by counsel at any or all times throughout the claims procedure. 14.2 INITIAL HEARING A. At the initial hearing, the only evidence to be considered by the Board shall be documentary evidence contained in the pension file, including but not limited to, correspondence, medical records and reports of treating physicians and/or examining physicians and evidence received pursuant to paragraph B. B. Other than questions from the Trustees, there will be no taking of additional evidence at the initial hearing, except that the Claimant will be afforded 15 minutes to make a presentation, which shall be limited to comments and/or arguments as to the evidence or information already contained in the pension file, including the report of the examining physician. C. Upon completion of the review of the Claim at the initial hearing, the Board shall enter an order setting forth its findings and conclusions on the Claim. The written order shall be provided to the Claimant. The order shall include: (1) The specific findings and conclusions of the Board, including specific references to pertinent provisions of the Plan on which such conclusions are based; (2) A description of any additional material or information that the Board may deem necessary for the Claimant to perfect his Claim, together with the reasons why such material or information is necessary; and (3) An explanation of the right to a full hearing on the Claim and the time limit in which a full hearing must be requested in writing. D. The decision of the Board at the initial hearing shall not be final until after the time has expired to request a full hearing or, if a full hearing is requested, until the Board makes a decision at the conclusion of the full hearing. -25- 14.3 FULL HEARING A. Any Claimant may request a full hearing on the issues presented to the Board at an initial hearing and upon which the Board has entered an order as provided in subsection 2.C. above. B. A full hearing must be requested by the Claimant, in writing, within 30 days of the receipt of the Board's order. The order will be deemed received three days following the date it is mailed to Claimant at the address provided to the Board by Claimant or on the day it is emailed to the Claimant at the email address on file with the Board. C. Upon receipt of the request for a full hearing, the Board will retain special counsel to ensure fair presentation of the case and to defend the Board's initial order. The full hearing shall be held by the Board when the Claimant and the Board's special counsel indicate that they are ready to present their case to the Board. D. Copies of all documents to be offered into evidence at the full hearing, including depositions, and a complete witness list with names and addresses of witnesses expected to be called, shall be furnished to the Board and the Special Counsel by the Claimant at least 20 days prior to the full hearing. Documents not furnished to the Board within the prescribed time limit maybe excluded from evidence at the full hearing if a reasonable explanation is not provided for the delay in providing the documents. E. A Claimant or the Special Counsel may obtain discovery by deposition and/or interrogatories prior to the full hearing. Written notice of any depositions and/or interrogatories shall be given to the Special Counsel and the Claimant. F. The costs of any discovery, except discovery requested by the Board or the Special Counsel, the appearance of witnesses at the hearing, and the making of a verbatim record of the proceedings shall be the responsibility of the Claimant. G. The Claimant shall be responsible for the appearance of any witnesses which they wish to have testify at the hearing. The Board shall, however, have the power to subpoena and require the attendance of witnesses and the production of documents for discovery prior to and at the proceedings provided for herein. The Claimant may request in writing the issuance of subpoenas by the Board. A reasonable fee may be charged for the issuance of any subpoenas not to exceed the fees set forth in Florida Statutes. -26- H. Testimony at the full hearing may be submitted in the form of a deposition. Depositions timely submitted will be part of the record before the Board at the full hearing and will not be read in totality at the full hearing; provided, however, that this does not preclude the Claimant or the Special Counsel from reading parts of depositions in an opening or closing statement. I. While the Florida Rules of Civil Procedure and the strict Florida Rules of Evidence do not apply to these proceedings, irrelevant and unduly repetitious evidence shall be excluded. Hearsay evidence may be used for the purpose of supplementing or explaining other evidence, but it shall not be sufficient in itself to support a finding unless it would be admissible over ovjection in civil actions. J. Any person who knowingly gives false testimony is guilty of a misdemeanor of the first degree, punishable as provided in Section 775.082 or 775.083, Florida Statutes. K. The file maintained by the Board, including but not limited to various medical reports therein, is part of the record before the Board at the full hearing. L. All proceedings of the Board shall be conducted in public. M. In cases concerning an application for pension benefits, including applications for disability retirement benefits, the burden of proof, except as otherwise provided by law, shall be on the Claimant seeking to show entitlement to such benefits. N. In cases concerning termination of pension benefits, including re-examination of Retirees receiving disability retirement benefits, the burden of proof shall be on the Board. O. Except as to those records which are exempted from the provisions of Chapter 119, Florida Statutes, Florida's Public Record Law, records maintained by the Board are open for inspection and/or copying during normal business hours at a reasonable cost for the copying. P. Should a Claimant requesting an initial or full hearing decide to appeal any decision made by the Board, with respect to any matter considered at such hearing, the Claimant requesting an initial or full hearing will need a record of the proceedings and may need to assure that a verbatim record of the proceeding is made. The Claimant requesting an initial or full hearing will be responsible for obtaining a court reporter or otherwise making a record of the proceedings before the Board. -27- Q. The decisions of the Board after the requested full hearing shall be final and binding unless a timely appeal is made. R. Within a reasonable period of time following a decision at the full hearing, the Board shall enter a final order setting forth its findings and conclusions and a copy of the order shall be provided to the Claimant. S. Judicial review of decisions of the Board shall be sought by the fling of a timely petition for writ of certiorari with the Clerk of the Circuit Court, in the appropriate county. 14.4 CONDUCT OF THE FULL HEARING A. The Chairman shall preside over the hearing and shall rule on all evidentiary, procedural, and other legal questions that arise during the hearing. The Chairman's rulings shall stand unless overruled by a majority of the Trustees present. The Chairman shall open the full hearing by explaining the procedures to be followed. B. The Claimant shall have the right to be represented by counsel or be self -represented. The General Counsel shall advise the Board. The Special Counsel will be the advocate for the initial order. C. The Claimant shall be allowed to make an opening statement not to exceed ten minutes. D. Testimony of witnesses shall be under oath or affirmation. Depositions and affidavits shall be admissible. E. The Chairman, any Trustee, the General Counsel, the Claimant or the Claimant's counsel, and the Special Counsel, upon recognition by the Chairman, may direct questions to any witness during the proceedings. F. Both the Claimant or the Special Counsel shall have the right to present evidence relevant to the issues, to cross-examine witnesses, to impeach witnesses and to respond to the evidence presented. G. The Claimant and Special Counsel shall be permitted a closing argument not to exceed 15 minutes. H. The Board shall deliberate and make a decision following closing argument and thereafter enter an order as provided herein. 14.5 DISABILITY CLAIMS - ADDITIONAL PROCEDURES A. All applications for disability pensions shall be in writing. Forms for such applications may be provided by the Board. B. Upon receipt of the application for disability, the General Counsel will provide the Claimant with a set of interrogatories or questions to be answered under oath and a medical release authorization. Both documents will be completed by the Claimant and returned to the General Counsel. C. Upon receipt of the properly completed interrogatories and medical release authorization, the General Counsel will request medical records from all relevant treating physicians; personnel records from the employer, copies of relevant workers' compensation records, and copies of other records deemed to be relevant to the Claim. The Board shall pay, from the Fund, the cost of any medical examinations required by the Board and for copies of medical records. D. The General Counsel will, upon receipt of the medical records from the treating physicians, schedule an independent medical examination (IME) or examinations with an appropriate independent examining physician or physicians who will be asked to render an opinion about Claimant's physical condition as it relates to the claimed disability. E. Upon receipt ofthe IME report or reports from the examining physician or physicians, the General Counsel will provide all records of treating physicians, relevant workers' compensation claims records, the independent medical evaluation, and all other relevant documents to the Board for inclusion in the pension file and the Board shall then schedule the initial hearing. RULE 15 CONFIDENTIALITY 15.1 EXTENT OF CONFIDENTIALITY PERMITTED § § 119.071(4)(a) l . and (4)(d)2.a., Florida Statutes, provides that the home addresses, telephone numbers, social security numbers, photographs and dates of birth of active or former sworn law enforcement personnel and; the names, home addresses, telephone numbers, social security numbers, photographs, dates of birth and places of employment of the spouses and children -29- of such personnel; and the names and locations of schools and day care facilities attended by the children of such personnel are exempt from the public records provisions of Section 119.07(l), Florida Statutes and §24(a), Article I, of the State Constitution. 15.2 REQUIREMENT FOR MAINTENANCE OF CONFIDENTIALITY The Board will maintain the information specified in 15.1 as confidential, if it receives from a Member, the Union on behalf of all Members, or the City of Clermont a written request to maintain confidentiality. 15.3 CONFIDENTIALITY OF MEDICAL RECORDS A. § 112.08(7), Florida Statutes is an exemption of medical records and medical claims records from the public records requirements of §119.07(l), Florida Statutes and such records are thus confidential. B. This exemption provides that the Board shall not furnish such records to any person except the employee or his legal representative without written authorization from the employee or, unless otherwise prohibited by law, it receives a subpoena issued in a civil or criminal action from a court of competent jurisdiction where the party seeking the records gave proper notice to the employee or his legal representative. C. Since, under Government in the Sunshine, trustees can only discuss issues involving medical records of an employee in a public meeting, such an authorization should be signed by an employee prior to discussion by the Board. Upon consideration of the medical records at a public Board meeting, such records then become subject to disclosure in the same manner as any other public record. RULE 16 INTEREST CALCULATIONS 16.1 INTEREST CALCULATION To the extent permitted by law, the interest calculation for the purchase of Credited Service, if not otherwise provided for in the ordinance, shall be the actuarially assumed rate of investment return. -30- RULE 17 RETIREE REVIEW PROCEDURES 17.1 DISABILITY REVIEW PROCEDURE The Board shall periodically review the status of disability Retirees who may be eligible to return to employment with the City of Clermont as a Police Officer in accordance with the following: A. An Affidavit of Disability Benefit Recipient (PF-6) shall be filed with the Board at least once every other year. Failure to file the affidavit shall result in a suspension of disability benefits. B. Upon receipt ofthe affidavit, the Board shall determine whether the disability Retiree continues to be entitled to receive disability benefits pursuant to the terms of the pension plan. C. If the Board determines that the disability Retiree is still disabled, then disability benefits shall continue to be paid. D. If, after review of the affidavit, the Board is unable to determine whether the disability Retiree continues to be disabled, the Board shall make further inquiry as necessary. E. Such inquiry may include job availability and medical ability to perform duty. If the Board determines that a Police Officer position appropriate for assignment may be available, and the disability Retiree may be able to perform duty in such position, an independent medical examination or examinations shall be performed at the Board's expense by a physician or physicians selected by the Board. A job description and physical or psychological requirements necessary to perform the position shall be provided to the independent medical examiner(s). F. After receipt of the report or reports of the independent medical examiner(s), other medical evidence and determination of job availability, the Board shall determine whether disability benefits shall continue. A hearing, pursuant to the Claims Procedures (Rule 14), shall be set to determine whether or not the disability retiree continues to be eligible for disability benefits. 17.2 SERVICE RETIREE REVIEW PROCEDURE A. The Board of Trustees has a fiduciary responsibility to be certain that only those persons who are eligible to receive benefits from the pension plan are receiving payments. -31- B. The Confirmation of Receipt of Retirement Benefits form (PF-11) shall be sent to all service retiree recipients, every other year by the Plan Administrator, if the status of the retirees is not otherwise being verified, such as by the Custodian. C. By requiring that PF- I I be executed by the benefit recipient in the presence of a Notary Public, the Board can confirm that the retiree is still alive and that eligibility for benefits continues. D. In the event that a benefit recipient fails to complete and return the form after the Board provides the form and follows -up with two additional requests for the return of the form (PL-4 and PL-6) , the Board shall set a hearing pursuant to the Claims Procedures (Rule 14), to determine whether or not the benefit recipient continues to be eligible for pension benefits. RULE 18 SURVEILLANCE 18.1 SURVEILLANCE Any Trustee who has reason to believe that a disability Retiree may be recovered from his disability and again able to perform useful and efficient service as a Police Officer and who further reasonably believes that surveillance of the Retiree, including the production of videotapes of the Retiree, will help to establish the fact of the recovery, may authorize the Board's General Counsel to arrange for such surveillance. Surveillance of disability applicants may also be authorized by any Trustee who reasonably believes that such surveillance will assist the Board in determining an applicant's ability to perform useful and efficient service as a Police Officer. The cost of any surveillance authorized by any Trustee shall not exceed $3,000.00. RULE 19 INSURANCE PREMIUM DEDUCTIONS 19.1 INSURANCE PREMIUM DEDUCTION AUTHORIZATION A. As permitted by Florida Statute 185.05(6), upon the retiree's written request, the Board of Trustees hereby authorizes the plan administrator or Board designee to withhold from a retiree's monthly retirement payment those funds that are necessary to pay premiums for certain insurance policies. -32- B. Any retiree requesting such deduction under this policy shall be required, as a pre- requisite, to be receiving the payment of his monthly retirement benefits via direct deposit. C. In order to participate in premium payments under this policy, the retiree shall be required to complete and submit all such forms as may be required to effectuate this benefit by the Board of Trustees, pension office, plan administrator, plan custodian, and insurance carriers. D. Requests to begin such deductions shall be effective as soon as reasonably possible. Once elected, benefits deductions shall continue until such time as the retiree deceases or submits a termination request form to the plan administrator or Board designee. Request for termination of deductions under this policy must be on a form obtained from the plan administrator or Board designee and shall be effective as soon as reasonably possible. E. A retiree requesting a deduction under this policy shall be required to have such deduction be made in an amount to cover the total premium for all eligible insurance benefits. Partial premium payments may not be made through the use of pension funds. F. Any insurance premiums paid in accordance with this policy shall be paid on a regularly recurring schedule. G. Premium payments made under this policy may only be made in equal monthly installments for each benefit year or the remainder of any benefit year as the case may be. 19.2 TAX-FREE PAYMENT OF INSURANCE PREMIUMS As of January 1, 2023, retired eligible Public Safety Officers can exclude from gross income for tax purposes up to $3,000.00 of income which was used by the retired eligible Public Safety Officer for the payment of health insurance premiums. This exclusion is claimed by the eligible Public Safety Officer on their personal income tax forms. 19.3 RETIREES WHO ARE ELIGIBLE FOR THE TAX-FREE PAYMENT OF QUALIFIED INSURANCE PREMIUMS In order to be eligible for coverage under the pre-tax policy, the retiree must be a retired "public safety officer" as defined by 42U.S.C. 3796b(9)(A) and must meet all of the following conditions: -33- A. Must have been a Police Officer at the time of separation from employment. B. Must have retired from City service as a Normal Retirement or Disability Retirement. Persons receiving terminated vested benefits are not eligible. C. Must be receiving a monthly retirement benefit from the Pension Fund. CLER P.OpRules.Approved 02-26-25.Clean -34-