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Pension_02-02-2022MinBOARD OF TRUSTEES City of Longwood Police Officers and Firefighters Pension and Trust Fund Longwood City Commission Chambers 175 West Warren Avenue Longwood, Florida REGULAR MEETING MINUTES February 2, 2022 6:00 P.M. Present: Robert Redditt, Chair Bruce Kubec, Vice -Chair Kevin Little, Secretary Chris Eichler, Member Pedro Herrera, Board Attorney (Via Zoom) Michelle Longo, City Clerk Jeremy Langley, Florida League of Cities Magdala Ridore, Human Resources Director Trisha Fuston, Payroll/HR Coordinator Absent: Cole Copertino, Member Judith Rosado, Financial Services Director 1. Call to Order. Chair Redditt called the meeting to order at 6:00 p.m. 2. Pledge of Allegiance. 3. Election of Officers. A. Chair B. Vice -Chair C. Secretary Chair Redditt opened the floor for nominations. Vice -Chair Kubec moved to retain all incumbent officers. Seconded by Member Eichler and carried by a unanimous voice vote with Member Copertino absent. 4. Approval of Minutes: November 3, 2021, Regular Meeting Secretary Little moved to approve the minutes as presented. Seconded by Member Eichler and carried by a unanimous voice vote with Member Copertino absent. Chair Redditt moved Item 6A up in the agenda. Pension 02-02-2022/1 6. Other Business. A. Status update regarding the payroll system and implementing the cap on overtime hours for pensionable salaries. Ms. Maggie Ridore, Human Resources Director presented the item. She noted she was unable to attend the last meeting and provided a statement explaining where they were at that time addressing the cap of 300 hours for pensionable salaries. At this point they are still at the same place, trying to get their payroll system as well as the time -keeping system to figure out how to make it work. The problem that they have encountered so far is addressing the GARCIA hours for the fire department. Currently, the way the system is designed it recognizes anything over 106 overtime hours and places them into a bucket and does not recognize what it is coded as. They are trying to figure out a way for the system to identify specific GARCIA hours separate from regular hours. They are currently running different tests to identify and track these hours. The GARCIA hours are not to be factored into the 300- hour cap. Once it is determined they can identify these hours they can move forward with this and the special detail hours on the police side. She also explained the GARCIA hours are by statute that is built in as scheduled overtime for the fire department. She went on to explain they have two separate time -keeping systems, one that processes their payroll and one that employees enter their time. They have to work with two different software to make sure one agrees with the other. Once the hours are produced on the timekeeping side then they have an export that goes into the payroll system that translates hours to dollars. She stated they need those two systems to speak to each other. Discussion ensued on the software systems, how other cities are dealing with the concern, how hours are calculated and tracked, and when this will be resolved and addressed. 5. Review of Agenda Packet Material. A. Quarterly Performance Review (Report ending September 30, 2021). Mr. Langley went over the quarterly report and noted these are also the end of the fiscal year numbers. The beginning balance was $27,068,338.37, contributions were $578,779.74, earnings were a decrease of $194,396.88, distributions were $67,567.80, expenses were $12,418.54, and the ending balance was $27,372,734.89. He then went over the rates of return and noted it was down 70 basis points or .70% for the quarter. It was also up 19.42% for the year. He noted December will also be a positive quarter and he did not yet have those exact numbers. He brought up a topic of conversation for the board with the 19.42% gain and expected a slow down to last about ten (10) years to lower the assumption rate. Discussion ensued on lowering the plan's assumption rate, having extra Pension 02-02-2022/2 calculations run, looking at corresponding contributions rates, and if the Board wanted to see some options. Mr. Langley noted the cost for this would be approximately $500 and answered questions. Secretary Little made a motion to authorize actuarial services to perform a cost study for the assumption rates of 6.5%, 6.75%, and 7% and approve a fee not to exceed $1,000. Seconded by Member Eichler and carried by a unanimous voice vote with Member Copertino absent. B. Plan Account Statements (September 2021, October 2021, and November 2021). Chair Redditt reviewed the statements. The Beginning Balance for September 2021 was $27,733,280.34, the Contributions were $268,663.34, the Losses were $603,407.19, the Distributions were $22,522.60, the Fees and Expenses were $3,285.00, and the Ending Balance was $27,372,734.89. The Beginning Balance for October 2021 was $27,372,734.89, the Contributions were $67,410.78, the Earnings were $714,030.99, the Distributions were $24,446.44, the Fees and Expenses were $13,571.59, and the Ending Balance was $28,116,158.63. The Beginning Balance for November 2021 was $28,116,158.63, the Contributions were $3,995.45, the Losses were $537,034.25, the Distributions were $24,446.44, the Fees and Expenses were $0.00, and the Ending Balance was $27,558,633.39. Secretary Little moved to accept the Plan Account Statements as presented. Seconded by Member Eichler and carried by a unanimous voice vote with Member Copertino absent. C. Expense Report. Chair Redditt reviewed the Expense Report. Member Eichler moved to approve the Expense Report as presented. Seconded by Secretary Little and carried by a unanimous voice vote with Member Copertino absent. D. Renewal of Membership to the Florida Public Pension Trustees Association (FPPTA). Member Eichler moved to approve the membership renewal. Seconded by Vice -Chair Kubec and carried by a unanimous voice vote with Member Copertino absent. Pension 02-02-2022/3 7. Board Attorney Report. Mr. Herrera gave a legislative update and noted there was a bill filed HB 117. He said this bill provides a presumption to specified workers that impairment of health caused by COVID-19 or infectious disease happened in the line of duty; requires certain actions in order to be entitled to presumption; requires emergency rescue or public safety workers to file incident or accident report under certain conditions. He said what has come up is if there is a vaccine requirement. The new Bill does not have any language with respect to a vaccine requirement Florida Statutes already provide for a vaccination requirement in order to remain eligible for the presumptions. Currently, Chapter 112 already provides if there is a vaccine the member who is applying for disability or benefits needed to have taken the vaccine in order to remain eligible. He also talked about the disability hearing that was granted. He will be reaching out to the Florida League of Cities to provide confirmation that the service disability was granted and the City will be providing the necessary paperwork. He stated the FPPTA will be having an educational conference this summer and the Division of Retirement may have a conference in May. It has not been confirmed. Discussion ensued about whether Mr. Langley was going to be putting together a course and it is still moving forward but will be towards the end of the year. Also confirmed was the requirement for education which is once per term for members. Mr. Herrera said the FPPTA conference will be held June 26 — 29, at Hilton Bonnett Creek, Orlando. 8. Member Comments. Chair Redditt asked if the Board was required to do any follow-up after a disability pension was granted. Mr. Herrera said a process should be put in place where the Board is verifying that the disability recipients remain disabled. He said it would be similar to the "Are You Alive" letters that are sent out to the retirees. It will essentially be a verification, that can be set up to have a physician certify that they are still treating the individual or the individual has a letter notarized and returned. The timing can vary by the Plan. He did feel this was something that should be put in place. Mr. Langley stated the Florida League of Cities does send out the "Are You Alive" letters to be sure they are not paying out benefits to someone who has passed. Mr. Herrera can draft a letter that can be sent to the recipient. Discussion ensued on the process to verify the status of the disability, and if Pension 02-02-2022/4 asking for proof of continued disability is appropriate. It was noted it is outlined in the Plan that as a disabled pensioner you are subject to periodic medical examinations as directed by the Board to determine whether a disability continues. You may also be required to submit statements from your doctor, at your expense, confirming that your disability continues. Mr. Herrera will draft a policy for the Board to review. Member Eichler asked about when you retire and when would you receive your first check. He said he thought it was when you retire you will get your first check at the beginning of the next month. He asked if you retire early in the month do they prorate the previous month. A question was raised by someone who had recently retired regarding when you should retire in a month and when you would get your pay. Mr. Herrera said none of the Plans he works on prorate. He said according to Chapter 175/185, it specifies that your benefit begins on the first of the month subsequent to your retirement date. He said the answer would be no, there is no partial prorated amount. Member Eichler also spoke about the Summary Plan, Section E, Disability Retirement, where it talks about having a disability and provided that you have successfully passed a physical examination on entering into service, including a cardiogram for Police Officer members. He asked should this section also include firefighters. Mr. Herrera replied yes, it can be revised to include firefighters. Mr. Langley brought up for discussion that the Florida League of Cities (FLC) does offer a full -service plan where they would do more of the work rather than the Clerk. He said they would do the meeting preparations, minutes, and recordings and this would ensure he would be in attendance at each meeting. He said most of their boards do utilize their services which makes his schedule busier, and he would attend a full -service board before this one should a conflict arise. This would be an additional cost to the board and he wanted to inquire to see if the board had any interest to take advantage of this service. The cost would be $750 per meeting, $3,000 per year, and would be a board decision. Discussion ensued on the FLC full -service plan and associated benefits and costs. It was decided to have this as a discussion item on the next agenda. 9. Public Participation. None. 10. Adjournment. Chair Redditt adjourned the meeting at 7:49 p.m. Minutes approved by the Board of Trustees: 05-04-2022 Pension 02-02-2022/5 Robert Redditt, Chair ATTES f' ache le on ecordg Secretary Pension 02-02-2022/6