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FMTF10-16-01BOARD OF TRUSTEES Florida Municipal Trust Funtl Retirement Plan and Trust For the Firefighters and Police Officers, City of Longwood Commission Chambers, 175 W. Warren Avenue, Longwood, Florida Special Meeting Minutes October 16, 2001 Present: Chair Clint Gioielll Vice Chair John Panzella Member Selma Eisen Member Andrew McGarry John J. Ora9o, City Administrator Berlin D. Bosworth, Deputy City Gerk Debby Reimers, Recording Secretary Absent. Member George Hodges (excused) i. Call to Ordar. The Chair called a special meeting to order at 6'.19 p.m 2. John Drago, City Administrator, to discuss updat¢d Firefghters and Police Officers Pension Plan. Chair Gioielll introduced Mr. Drago, who was present to answer questions raised at the last meeting as well as explain the Uptlafetl Plan. Mr Drago began, saying the city was required by State Statute to do an actuarial valuation every three years. The last one was pertormetl October t, 1998, and ently being performed. The purpose of the actuarial evaluation was to determine the worth of the Pension Plan relative to contributions. The Statute also stated that what came out of the evaluation informed the city what it needed to contribute to the Plan. This particular repod came back with the fntling that the city tlitl not have to contribute any money to the Plan because the Plan was ver funded. Prior to that, the city was contributing 12 percent and the employee was contributng 1 percent_ Mr. Drago explained the only time the amount would change would be if the City contemplating a Plan design change. This particular evaluation was p etlicatetl on plan design, which Mr. Drago showed the board. Minutes Board of Trustees Florida Municipal Trust Funtl Retirement Plan and Trust for the FirefgMers and Police Officers, City of Longwood October 16.. 2001 Page 2 Mr. Drago then presented some background as to what the Plan consisted of when he frst came to Longwood and that the Firefighters' and Police Officers' wanted certain Plan benefits enhanced. Specifically, they wanted the benefit rate of 2 percent increased l0 3 percent. When reviewed, in view of how much money was in the Plan, he thought some additional benefits could also be included to enhance the Plan. An actuarial evaluation supported this belief. The City was able to give the Firefighters' and Police Officers' more than requested. Antl, when the acWary ran the numbers, with the Increased benefits, the results indicated that the City would still not need to contribute to the Plan. Mr. Drago said he took into consideration that the amount of money collected, along with forfeitures by Firefighters and Police Officers who terminated their employment with the city, would result in a surplus. The worse case would be that overa 9-year period or 12-year period, the contributions would go back to 12 percent. because all surpluses would have been evenly divided in the Plan to er all benefits. The purpose of this Plan was to always have the benefits, and the Funtl money, equal itself, as the benefits were defined. Mr. Drago continued. explaining that an evaluation was perfofinetl every three years, which made the determination as to what the City would need to onMbute. Except, it the City wanted to change a benefit, another evaluation would then have to be pertormetl in order to understand the cost impacts. Mr. Drago distributed a spreadsheet, Exhibit A, attached hereto Exhibit A, as though fully contained herein, and explained that each member of the Plan was going to gef 3 percent for every service year for the best 5 of their last 10 years. The actuarial spreadsheet gave a good idea of what a Firefighter or Police Office could expect to receive. It did not make a difference whether the plan ember contributed $1 or $100,000,000; they knew when they retired what the defned benefit package would be. Employees receive a statement of then benefits 5 years pdor to reaching normal retirement as stated in the Plan. After discussion among board members, Mr. Drago tlefnetl the eoartl's objectives as three duties: (1) it determined disability; (2) it approved pension benefits; (3) It was responsible for the inveshnent of the fund, which is currently under [he direction of the Florida League of Cities. Minutes Board ¢i Tmstees Fiodtla Municipal Trust Fund Retirement Plan and Tmsl for the Firefighters and Police Officers, Gity of Longwood October 16, 2001 Page 3 Mr. Drago was looking to make a change to the current Plan. He wanted to change the number of yea setl to calculate a Firefghter's and Police Officer's pension from best of 5 yearsuto best of 3, which should boost what was to be receivetl when retired. Member Mc6any thanketl Mr. Drago for attentlingthe meeting and answering his questions. 3. Adjournm¢nt. The meeting adjournetl at 6:55 p.m. "~`c~ Clint Gioielli, Chair Attest: ~_.-'c-~~ ~2.. _.'1. Debby Reimers.. Recording Secretary