Pension_05-09-2022Min BOARD 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
May 9, 2022
6:00 P.M.
Present: Robert Redditt, Chair
Bruce Kubec, Vice-Chair
Kevin Little, Secretary
Chris Eichler, Member
Bob Sugarman, Board Attorney(Via Zoom)
Michelle Longo, City Clerk
Jeremy Langley, Florida League of Cities
Charles Carr, Southern Actuarial Services Company, Inc. (Via Zoom)
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. Approval of Minutes: January 28, 2022, Special Meeting
February 2, 2022, Regular Meeting
The Board reviewed the minutes.
Vice-Chair Kubec moved to approve the minutes as presented. Seconded
by Member Eichler and carried by a unanimous voice vote with Member
Copertino absent.
4. Review of Agenda Packet Material.
A. Quarterly Performance Review (Report ending December 31, 2021).
Mr. Langley presneted the quarterly report. The beginning balance was
$27,372,734.89, contributions were $204,345.30, earnings were
$1,191,997.04, distributions were $75,769.23, expenses were
$14,761.59, and the ending balance was $28,678,546.41. He also went
over the numbers for March 2022 and briefly spoke about the current
market conditions since December.
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B. Plan Account Statements (December 2021,January 2022, and February
2022).
Chair Redditt reviewed the statements.
The Beginning Balance for December 2021 was $27,558,633.39, the
Contributions were $132,979.07, the Earnings were $1,015,000.30, the
Distributions were $26,876.35, the Fees and Expenses were $1,190.00,
and the Ending Balance was $28,678,546.41.
The Beginning Balance for January 2022 was$28,678,546.41,the
Contributions were $110,166.00,the Losses were $1,152,209.24,the
Distributions were $24,446.44, the Fees and Expenses were $10,084.82,
and the Ending Balance was$27,601,971.91.
The Beginning Balance for February 2022 was $27,601,971.91, the
Contributions were $1,968.00,the Losses were $486,695.71, the
Distributions were $25,803.20, the Fees and Expenses were $337.50, and
the Ending Balance was $27,091,103.50.
The Board noted the small amout of February contributions. They expect
to see the contributions caught up in March.
Secretary Little moved to accept the Plan Account Statements as
presented. Seconded by Vice-Chair Kubec and carried by a
unanimous voice vote with Member Copertino absent.
C. Expense Report.
Chair Redditt reviewed the Expense Report.
Vice-Chair Kubec moved to approve the Expense Report as
presented. Seconded by Member Eichler and carried by a
unanimous voice vote with Member Copertino absent.
D. Board review for consideration the draft of the proposed Disability
Determination and Review Procedures and the Continued Disability
Verification form.
Mr. Sugarman reminded the Board that at the last meeting they asked for
procedures for verifying that a member getting a disability pension is still
disabled. He recommended that this be verified every year to every
other year. But it can be done more often if needed. The Board would
review all the disability pensions at the same meeting. Currently 3
retirees are getting a disability pension. Normally the verification process
stops when a member reaches normal retirement age. Mr. Sugarman
explained the verification letter would be sent to the retiree. The retiree
would then fill out the form and return it for review. If a medical exam is
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needed the member would pay for it; however, if a follow up exam was
needed the Plan would pay for it.
Mr. Sugarman reviewed the process for a member to receive a disability
penstion. This is the same process as used in the past. The procedures
are now written out.
The Board discussed starting the disability verification process and doing
it every year then in about 4 years they will review the timeline again
Secretary Little moved to adopt the proposed Disability
Determination and Review Procedures and the Continued
Disabilty Verificaiton form as presented. Seconded by Vice-Chair
Kubec and carried by a unanimous voice vote with Member
Copertino absent.
The City will send out the letters to the members receiving a disability
pension so they can be reviewed at the next meeting.
E. Board review for consideration the cost study prepared by the actuary
for possible changes in the plan's assumption rate.
Mr. Langley and Mr. Carr presented the cost study prepared for possible
changes in the plan's assumption rate. They answered questions from
the Board Members. Mr. Carr informed the Board that they could use
high returns from last year to help buy a lower assumption rate. He
explained that the assumption rate could be lowered and the City could
still get a slightly decreased employer contribution rate. The Board
discussed the current market conditions.
Vice-Chair Kubec moved to reduce the assumed rate on the
investment return from 7%to 6.5% beginning with the October 1,
2021 valuation and thereafter. Seconded by Secretary Little and
carried by a unanimous voice vote with Member Copertino
absent.
Mr. Carr confirmed that he will issue the full report and could attend the
next meeting on August 3rd but would have to join at 6:30 p.m. due to a previous
engagement.
5. Other Business.
A. Board discussion and review of the Florida League of Cities Full-Service
Plan.
Chair Redditt reviewed the information provided regarding what would
be provided for full administrative services and noted the fee would be
$750 for each meeting.
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Discussion ensued and Mr. Langley answered questions about the various
services that would be provided. He agreed that the new disability
confirmation process and answering public records requests and supneas
would be done by the League. Ms. Longo will still post the agenda and
handle the room set up and audio. This would not be a long term
contract and could be terminated at any time. Mr. Langley explained that
Stephanie Forbes will be the one sending out the agenda packets and
information. She handles the daily operations of the Plan.
Secretary Little moved to accept the Florida League of Cities
proposal to provide administrative services amended to include
the response to public record requests and authorize the
Chairman to sign the agreement after being reviewed by counsel
and with the understanding the agreement is terminable at will by
the Trustees. Seconded by Vice-Chair Kubec and carried by a
unanimous voice vote with Member Copertino absent.
6. Board Attorney Report.
Mr. Sugarman reported that Josh Imainolamaio's disability has been processed.
He appreciated the detailed minutes from that meeting. However, they would
need to be redacted if ever subject to a public records request.
Mr. Sugarman reminded the Board of continuing education opportunities for
trustees. He also reminded the Trustees to file the Florida Commission on Ethics
form 1. He highly encouraged the Trustees to send the administrator their
receipt of the filing of the report. He also confirmed that the Plan Member's
benefits are not affected by the assumption rate changed that was made today.
7. Member Comments. None.
8. Public Participation. None.
9. Adjournment. Chair Redditt adjourned the meeting at 7:34 p.m.
Minutes approved by the Board of Trustees: 08-0 2022
VV
obert Redditt, Chair
ATTEST:
Jer y L , Recording Secretary
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