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Pension_08-03-2022Min 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 August 3, 2022 6:00 P.M. Present: Robert Redditt, Chair Kevin Little, Secretary Chris Eichler, Member Pedro Herrera, Board Attorney Michelle Longo, City Clerk Jeremy Langley, Florida League of Cities Chuck Carr, Southern Actuarial Services (via telephone) Absent: Cole Copertino, Member Bruce Kubec, Vice-Chair Judith Rosado, Financial Services Director 1. Call to Order. Chair Redditt called the meeting to order at 6:00 p.m. The Board asked that, on the next agenda, the 5th Member position be added for discussion. Mr. Herrera reminded the Board that the 5th Member is elected by the other four Board Members; the only qualification was a willingness to serve. 2. Pledge of Allegiance. 3. Approval of Minutes: May 9, 2022, Regular Meeting. The Board reviewed the minutes. Member Eichler moved to approve the minutes as presented. Seconded by Secretary Little and carried by a unanimous voice vote with Member Copertino and Vice-Chair Kubec absent. 4. Review of Agenda Packet Material. A. Quarterly Performance Review (Report ending March 31, 2022). Mr. Langley presented the quarterly report. The beginning balance was $28,678,546.41; contributions were $257,002.12; losses were $1,376,281.91; distributions were $79,674.82; expenses were $10,759.82; and the ending balance was $27,468,831.98. He reported the balance on the DRAGO fund was $2,859,943.56. He informed the Pension 08-03-2022/1 Board that some term vested members were wanting a distribution from the DRAGO fund. The Board verified a participant has to retire in active service in order to get a distribution from the DRAGO fund. Mr. Langley gave an update on the market since March. He did not think the Fund would end the fiscal year with positive returns. B. Plan Account Statements (March 2022, April 2022, and May 2022). Mr. Langley reviewed the statements. The Beginning Balance for March 2022 was $27,091,103.50; the Contributions were $144,868.12; the Earnings were $262,623.04; the Distributions were $29,425.18; the Fees and Expenses were $337.50; and the Ending Balance was $27,468,831.98. The Beginning Balance for April 2022 was $27,468,831.98; the Contributions were $38,182.15; the Losses were $1,344,150.03; the Distributions were $34,251.17; the Fees and Expenses were $9,183.60; and the Ending Balance was $26,119,429.33. The Beginning Balance for May 2022 was $26,119,429.33; the Contributions were $98,259.79; the Earnings were $87,650.75; the Distributions were $28,952.43; the Fees and Expenses were $15,337.50; and the Ending Balance was $26,261,049.94. Member Eichler moved to accept the Plan Account Statements and Quarterly Investment Report as presented. Seconded by Secretary Little and carried by a unanimous voice vote with Member Copertino and Vice-Chair Kubec absent. C. Expense Report. Chair Redditt reviewed the Expense Report. The Board asked why the individual benefit calculation for Ryan Bruce was lower than the normal cost for a benefit calculation. Mr. Langley will ask Mr. Carr when he joins the meeting. Member Eichler moved to approve the Expense Report as presented. Seconded by Secretary Little and carried by a unanimous voice vote with Member Copertino and Vice-Chair Kubec absent. D. Distributions and New Retirees. Chair Reddit reviewed the distributions and the new retiree. The Board noted that one of the past participants receiving a distribution had terminated 16 years ago. Pension 08-03-2022/2 Secretary Little moved to approve the distributions statement as presented. Seconded by member Eichler and carried by a unanimous voice vote with Member Copertino and Vice-Chair Kubec absent. E. Actuarial Report 2021. Mr. Carr presented the report. He reminded the Board about their lowering the assumption rate to 6.5%. He reported the minimum contribution rate for FY 2022-2023 is 21.71% of covered payroll. He also reported that the funded percentage on the accrued liability is 130.79%. He explained that the Plan has a required contribution because the required contribution is calculated on the projected future liability and not on the accrued liability. The Board discussed the terminated non- vested members with their employee contributions still in the Plan. Mr. Carr explained that the charge for benefit calculations is based on the amount of time it takes to prepare the calculation. The benefit calculation for Ryan Bruce must not have taken too long to complete. Mr. Carr explained the difference between the Market Value of Assets and the Actuarial Value of Assets. The Actuarial Value of Assets is equal to the Market Value of Assets less the Drago fund balance and less the advanced employer contributions. Mr. Carr informed the Board that the Drago fund balance is updated annually with interest equal to the Plan's assumption rate. Secretary Little moved to approve the actuary report as presented. Seconded by Member Eichler and carried by a unanimous voice vote with Member Copertino and Vice-Chair Kubec absent. F. Approve Rate of Return for 2022. Secretary Little moved to approve the assumption rate at 6.5%. Seconded by Member Eichler and carried by a unanimous voice vote with Member Copertino and Vice-Chair Kubec absent. Ms. Longo reported that letters are being sent to the terminated non-vested participants; however there is very little response. 5. Other Business. A. Adoption of Budget for all administrative expenses for fiscal year 2022- 2023. Mr. Langley reminded the Board that the State requires the budget, and it is just a projection of expenses. At the next meeting, the actual expenses for FY 2022 will be approved. Mr. Langley explained the investment fees. Ms. Longo informed the Board that the Accidental Death line item was put in the budget by mistake. This line item needs to Pension 08-03-2022/3 be removed. It is a City expense. Mr. Langley suggested that the line item be renamed to Miscellaneous. Mr. Herrera informed the Board that it was up to them whether to have a Miscellaneous line item or not. If the Board exceeded their projected amounts, they would have to submit an amended budget. Member Eichler moved to approve the FY 2022-2023 budget as presented with correction that the Policy Insurance, Accidental Death line item be renamed to Miscellaneous. Seconded by Secretary Little and carried by a unanimous voice vote with Member Copertino and Vice-Chair Kubec absent. 6. Board Attorney Report. Mr. Herrera reported that the bill to add Covid-19 to the list of presumptive disease did not pass the legislature. Ms. Longo reported that all the Board members submitted their Florida Commission on Ethics Form 1. Mr. Herrera informed the Board about upcoming training opportunities offered by the FPPTA and the State. He reminded the Board that they need to complete one training session per term on the Board. 7. Member Comments. None. 8. Administrator Comments. Mr. Langley presented the Fiduciary Liability Insurance Policy quote. He informed the Board that the wavier of recourse is no longer needed due to a change in the law. Secretary Little moved to approve binding the policy U.S. Specialty Insurance Company for $3,585.31. Seconded by member Eichler and carried by a unanimous voice vote with Member Copertino and Vice-Chair Kubec absent. Mr. Langley reported the 2 disability letters were sent out to the members. This will be on the next agenda. The next meeting date is November 2, 2022. 9. Public Participation. None. 10. Adjournment. Chair Redditt adjourned the meeting at 7:12 p.m. Minutes approved by the Board of Trustees: 0: !3-2022 9 Robert Redditt, Chair ATTEST: Jere L , Recording Secretary Pension 08-03-2022/4