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FMTF01-20-09 BOARD OF TP;USTEES Florida Municipal Trust Fund F;etirement Plan and Trust for the Firefighters and Police Officers Longwood City (:ommission Chambers fl75 West'WarrE~n Avenue Longwood, Florida REGULAR Ml'~ETING MI:NUTI~S January 20, 2009 7:00 p.m. Present: Marc McLarnon, Chair Robert Redditt, Vice Chair Matthew Jammes, Secretary Frank Herndon, Member Jack Smythers, Member H. Lee Dehner, Board Atl:orney (arrived at 7:12 p.m.) Linda F. Goff, Recording Secretary 1. Call to Order. Chair McLarnon called the meeting to order at 7:04 p.m. t 2. Pledge of Allegiance. Chair McLarnon l.ed the Pledge of Allegiance. 3. Election of Officers A. Chair Chair McLarnon opened the floor for nominations of Chair. Member Smythers moved to nominate Chair Marc McLarnon as Chair. Seconded by Secretary Jammes and carried by a unanimous roll~call vote. B. Vice Chair Chair McLarnon opened thE: floor for nominations of Vice Chair. Secretary Jammes moved to nominate Member Smythers as Vice Chair. Seconded by Member Redditt and carried by a unanimous roll call vote. C. Secretary Chair McLarnon opened the; floor for nominations of Secretary. ~ Member Jammes no:minate;d Member Herndon as Secretary. Seconded by Member Redditt and carried by a unanimous roll call vote. Pension O1.-20-09/1 Chair McLarnon inquired how often the Election of Officers was held. The Recording Secretary advised the Election of Officers was the first meeting of the calendar yea~x. 4. Approval of Minutes October 2i1, 2008 Regular Meeting. Vice Chair Smythers said under Ite-m 6 A., Member Jammes had mentioned the Union putting together some information regarding the Internal Revenue Service trying to make some changes so that people cannot retire before age 55. He inquired if there had been any clarification regarding this matter. Member Jammer said he had not re;ceived any additional information from the Union. Vice Chair Smythers moved to approve the Minutes of October 21, 2008 as submitted. Seconded by iVlember Jammer and carried by a tuzanimbus roll call vote. 5. Review of Agenda Packet Material. A. Plan Account Statements. The Plan Account Statements for October and November 2008 were reviewed. B. Investment Performance Review. The Investment Performance Review ending September 30, 2008 was reviewed. Member Jammer said he was not looking for a lot considering the fluctuation 'of the stock market at 1:his time. He inquired if the Chair saw anything that could be changed to help with this. Chair McLarnon said he was hoping to have Mr. Shamoun present or someone from the City to discuss this. He stated the fund for the City of Longwood,~from what they can see, maintains its solid foundation. He confirmed the purpose of this fund was to take care of the retirement accounts for the Firefighters and Police Officers, and there were sufficient assets to take care of that. He said he would like to have Mr. Shamoun present at the next meeting to further discuss what options the Board might have : He stated the market :;hould recover and they can only hope that the markets they have. invested in will recover. Vice Chair Smythers said a :negative 6.5% was not all that bad. Mr. Dehner~ arrived at this point of the meeting. Pension. O 1-20-09/2 ~ Member Jammes said he agreed it was not all that bad. He stated he figured Mr-. Shamoun would be here during this. financial crunch to discuss if there was anything they could do to minimize the impact on the fund by perhaps transferring funds in a more secure avenue. Chair McLarnon said these were ;some questions that can be brought up to Mr. Shamoun when he participates in the next meeting. He stated he would take: the opportunity this week to call Mr. Shamoun to see if they can get some clarification of the investment strategy going forward. Member Jammes requested Chair McLarnon remind Mr. Shamoun to bring the specific records previously requested from when the account was split. Member Redditt said one other thing to not lose sight of was the dollar cost averaging of purchasing shams while the stocks are cheaper. He declared when the market does come back, they would benefit. Chair McLarnon said they lead di~;cussed in a prior meeting a year or so ago about one of the funds 1:hat has not been doing well that is invested in home builders and things like that:. He stated that he does not have confidence'it will perform or rebound. ~ Member Jainmes said the Chair had brought this up 13 to 14 months ago and he would be very interested to hear why they were still putting money in it as it has continued to decline.. Chair McLarnon said it was. his understanding there was a Board of Managers that oversees the fluid managers and it was a little more complicated than just changing. 6. Other Business. ChairMcLarnon inquired, under Other Business, what items were outstanding. The Recording Secretary said one item the Board had outstanding was the • Operating Rules and Procedures. Mr. Dehner said he was waiting for Mr. Shamoun to send the Administrative Procedures to be incorporated. Chair McLarnon said there were a couple of items they have been waiting on. One was the vesting at age 55 and five years of service. Mr. Definer said that was the Ordinance. l:~e stated with the Rules and Procedures, ~ they have been through everything with the exception of receiving the Administrative Procedures. Pension 01-20••09/3 ~ Member Jarnrnes said they were in. agreement that rather than changing the retirement date, they were going to place some type of stipulation in the language regarding the vesting. He inquired. what the outcome was concerning this matter. Mr. Delmer said they had discussed the four outstanding items at the last meeting and Ms. Rogers was going to contact Mr, Shamoun to get a cost on those items. He stated he has not seen any information regarding these. Chair McLarnon said that was his understanding as well. However, neither Mr. Shamoun nor Ms. Rogers were here to update us on where this stands. The Recording Secretary advised she inquired if Ms. Rogers had obtained any of this information and she had not. Member Jammes said in the time he has been on this Board the biggest thing seemed to be time,and lagging. He stated if the Board was paying someone to do something, then they need to do it. He said three months was a good time frame to be able to accomplish this. He stated they need Mr. Shamoun to be here at the next meeting and express these concerns. Mr. Delmer said at the last meeting; they had discussed holding a Special Meeting if they could obtain this information soon enough. Member Jaiiunes said that still has not been done and the buyback and retirement age were items that have been going on for years. He stated there was some language clarification. Mr. Delmer said they had talked about some language clarification at the last. meeting and there were some proviisions discussed at the last meeting that he had indicated they may want to do differently. He stated if they receive this information in advance, then perhaps they could make the decisions needed to get the Ordinance done. Member Jammes said he would like to receive this information in advance of the next meeting so they can be prepared. Chair McLarnon requested the Recording; Secretary coordinate with Ms. Rogers to have her contact Mr. Shamoun and have him attend the next meeting. In the meantime, he stated he would contact Mr. Shamoun to discuss several points with him. 7. Board Attorney Report. Mr. Delmer gave a legislative update reg~irding a Bill being filed in Tallahassee for consideration this upcoming session ghat would affect the Board by allowing ~ them to go a maximum in foreign securities above the current level of 10% to a .proposal of 25%. Also, there is a provision that will allow considering four year terms' for Trustees gather than the two ye~~r terms. He said there was a provision Pension 01-20-09/4 that would allow a direct transfer c,f money from the Pension Plan to an insurance company which would enable the norma and disability retirees to get their health and long term care insurance apart from the City to take advantage of the $3,000 Federal Income Tax Exclusion. Also; in this regard, there is a Federal Legislation proposal which would remove that. as a requirement. Mr. Dehner reported that the draft compliance amendments he had mentioned at the last meeting for compliance with the Federal Pension Protection Act have been completed acid they were in the process of putting the provision into the various Plans. He 'suggested the Board cc,uld perhaps do this with the other amendments they have been talking about and do it all at one time. He said once they have done that, they should discuss whether they want to file with the Internal Revenue Service to have a. favorable determination letter issued. Mr. Dehner said the proposed Rule: 60-T they have talked about are Hiles that were drafted and proposed by Charles Sl;rvin, Actuary for the Division of Retirement and are rules that deal ~Nith actuarial standards and practices the actuaries are required to follow in detertr~ining the funding requirements for the Plan. He advised there was some encouraging news out of a Workshop held on October 21St that there was an indication they were going to look at some of the rules. He stated everyone has been opposed to the adoption of these rules. He stated he spoke to Mr. Slavin several weeks later and was told that they were going to be changed. He said they were going to consider some changes and send them to the Legislative Procedures Cornrrlittee, who will issue a report, then there will be another Workshop and it wall be s! long process. Mr. Dehner advised the Form 1 Financial. Disclosure needed to be filed by July 1St and the forms are now available. He recommended having proof of filing. He asked Secretary Herndon if he had filed his Form 1. He advised a new Trustee is required to file within 30 days of taking office and then each year they are on the Board, to file with~~the Supervisor of Elections in the County they reside in prior to July 1St. He said it was important to file in time as there are fines for not filing. He also advised the Form 1 F should be; filed within 60 days of leaving office. Thee Recording Secretary advised the Cite Clerk sends the form to new Trustees with a letter notifying them they have been elected. She also sends the Form 1F to Trustees upon their termination. 8. Member Comments. None. 9. Public Participation. None. Pension 01-20~~09/5 10. Adjournment. Chair McLarnon a.djoun~ied the meetii g at 7:33 p.m. P ~V V Marc arnon C ATTEST: Linda F. Goff, Recordi ~ Secretary Pension 01-20-09/6