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FMTF03-21-06 BOARD OF TRUSTEES Florida Municipal Trust Fund Retirement Plan and Trust for the Firefighters and Police Officers Longwood City Commission Chambers 175 West Warren Avenue Longwood, ]Florida R_ EGULAR MEETING MINUTES March 21, 2006 7:00 p.m. Present: Jack Smythers, Chair Robert Redditt, Secretary Jeremy Brown, Member Carol Rogers, Director of Financial Services Linda Goff, Recording Secretary Absent: James Seibert, Vice Chair Chris ]Kempf, Member 1. Call to Order. Chair Smythers called the meeting to order at 7:04 p.m. He welcomed Mr. Paul Shamoun, Retirement Services Manager for the Florida League of Cities. 2. Election of Officers. A. Chair. Chair Smythers opened the floor for nominations of Chair. Secretary Redditt nominated Chair Smythers as Chair. Nomination carried by a unanimous voice vote with Vice Cliair Seibert and Member Kempf absent.. B. Vice Chair. Chair Smythers opened the floor for nominations of Vice Chair. Secretary Redditt nominated Vice Cliair Seibert as Vice Chair. Nomination carried by a unanimous voice vote with Vice Chair Seibert and Member Kempf absent. C. Secretary. Chair Smythers opened the floor for nominations of Secretary. Chair Smythers nominated Secretary Redditt as Secretary. Nomination carried by a unanimous voice vote with Vice Chair Seibert and Member Kempf absent. Pension 3-21 :?006/I 3. Approval of Minutes -December 20, ':005 Regular Meeting. ~ Secretary Redditt moved to approve the minutes of December 20, 2005. Seconded by Member Brown and carried by a unanimous voice vote with Vice Chair Seibert and Member Kempfabsent. 4. Appointment of Stn Trustee. Chair Smythers moved to appoint Vice Chair Seibert as the Fifth Trustee. Seconded by Secretary Redditt and carried by a unanimous voice vote with Member Kempf absent. 5. Review of Agenda Picket Material. A. Plan Account Statements. The Plan Account Statements .for November 2005 and December 2005 were reviewed. Mr. Shamoun reported the January statement went out this morning and they should be received in the next day oi• two. He said the February statement should be sent out within the next wE>ek. B.:Investment Performance Review. Mr. Shamoun reviewed the Investment Performance Review for the periods ending December 31, 2005. He poini~:ed out the report gives a market overview from the previous quarter on how thf; different sectors and indexes performed. He reported an International A1locati:on was added to the portfolio on July 2005. He affirmed there were approximately 9.7% of the assets in an International Equity Fund. He reported that State Statutes limit the International Equity Fund to 10%. Siince putting this fund in place, the first quarter assets were up approximately 12% and last quarter was up approximately 5%. He said they were expecting to add a Large Cap Value Portfolio toward the end of the year. The portfolio is currently at a 60% Equity; 40% Fixed income allocatio~i. Chair Smythers inquired who determines the allocation. Mr. Shamoun advised this was an actuarial assumption and the Board has the authority to make a change; however, he would highly recommend not making a change. He reported for th.e year ending December 31, 2005 that all five portfolios were ahead of their bc;nch marks for a one year period. He reported for the fiscal year, the retuni was approximately 10.5%. He reviewed the Bond Fund and pointed out at one year it was at 3.74% versus 2.54% which. was a significant differential He said this Bond Fund was ranked in the 5th percentile. Pension 3-21-2006/2 Chair Smythers inquired, of the five sectors, if every sector had its own manager. 1VIr. Shamoun advised the Bond Fund, the High Quality Growth, and the Small Cap were all managed by Atlanta Capital Management. He said the Russell One Thousand was managed. by State Street Bank., and. the .International Fund was managed by Alliance Bernstein. Ms. Rogers said she has had request: from the board. members regarding individual annual summary plan statements. Mr. Shamoun said he would check on the employee plan statements. Ms. Rogers explained that Ordinance No. 06-1789 amending the Plan was a result of Federal Law changes and to comply with provisions of the Internal Revenue Code. 6. Other Business. None. 7. 1VIember Comments. Member Brown inquired about a military buy back provision. ~ Mr. Shamoun advised the Longwood Plain did not have a provision for military buy back, but it could be changed. He stated most plans allow for a military buy back provision and up to five years buy back for time served as a sworn office or sworn firefighter. Once in affect, the- Board can set guidelines and most set a provision for once a year. He declared buy back was a very expensive proposition. He explained the request would be submitted to the League and they would have the Actuary do a calculation that would be good for 90 days. He said if the Board decides to allow a buy back provision they can contact him and he could draft the language. He advised it would need to be approved by the City Commission. He stated DROP was another feature most plans have recently added. Ms. Rogers asked Mr. Shamoun to expl<<in how the Share Plan was different from the DROP. Mr. Shamoun explained the Share Plan was a totally separate benefit. He explained there was a base amount from the State that funds the Plan as it exists and everything over goes into the Share Plan. I=Ie said credits were earned for each year worked and when retiring the credits were paid out in a lump sum. He stated the long term employee was the one who benefited the most from tl~e Share Plan. Mr. Shamoun stated there were various l.'ension Seminars offered and he recommended the Trustees attend one of these seminars. Pension 3-21-2006/3 8. Public Participation. None. 9. Adjournment. Chair Smythers adjourned the meeting at 8:09 p.m. ~ ~ J~ Smythers, Chair ATTEST: 1, ~ r Linda Goff, Record ~ Secretary Pension 3-21-:?006/4