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Pension_05-03-2023Min 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 3, 2023 6:00 P.M. Present: Robert Redditt, Chair Bruce Kubec, Vice-Chair Kevin Little, Secretary Stefanie Reardon, Member Pedro Herrera, Board Attorney Michelle Longo, City Clerk Jeremy Langley, Florida League of Cities Absent: Chris Eichler, Member 1. Call to Order. Chair Redditt called the meeting to order at 6:02 p.m. 2. Pledge of Allegiance. 3. Approval of Minutes: February 1, 2023, Regular Meeting. Member Reardon introduced herself to the Board. The Board reviewed the minutes. Vice-Chair Kubec moved to approve the minutes as presented. Seconded by Secretary Little and carried by a unanimous voice vote. 4. Review of Agenda Packet Material. A. Actuarial Valuation 10/01/2022 Mr. Langley presented the valuation. He explained how the Plan is funded by the City and the State money. He explained that this report determines the City's minimum contribution rate for FY 2023-2024 so the City knows in advance what the funding requirements are. Mr. Langley informed the Board that the minimum required contribution rate increased by 14.39% due to the investment losses as of September 30, 2022. In order to help off set this increase,the actuary changed the methodology used to allow for a 5 year "smoothing" method. This change in methodology decreased the minimum required contribution by 11.96%. Mr. Langley explained that by using a "smoothing" method,the Pension 5-3-2023/1 gains and losses of a particular year are recogonized over the next five- years instead of all at once. He explained that this new methodology is recommended by the actuary, but the Board did not have to accept it. He informed the Board that the City has$111,205 in advanced employer contributions. The City can use this money at any time to help fund the plan. This advanced employer contributions would not off set increase in the minimum required contribution rate if the Board did not use the smoothing method. If the City decided to absorb the 14.39% increase, the smoothing method would not be needed. He explained that once the smoothing method is used, it remains in affect for several years to come and that the smoothing method is a commonly used method of stabilizing the contribution rate. The Board discussed their options. Secretary Little moved to accept the Actuarial Valuation as presented. Seconded by Vice-Chair Kubec and carried by a unanimous voice vote. Vice-Chair Kubec moved to approve the expected rate of return of 6.5%for this year, the next several years, and the long-term thereafter. Seconded by Secretary Little and carried by a unanimous voice vote. B. Quarterly Performance Review (Report ending December 31, 2022). Mr. Langley presented the quarterly report. The beginning balance was $24,582,844.64; contributions were $223,555.60; earnings were $1,462,408.08; distributions were $209,310.16; expenses were $10,033.21; and the ending balance was $26,049,464.95. He informed the Board that the Plan ended the quarter up at 5.89%. The Board discussed the current market conditions. Vice-Chair Kubec moved to accept the Plan Account Statements as presented. Seconded by Secretary Little and carried by a unanimous voice vote. C. Expense Report. Mr. Langley presented the Expense Report. Ms. Longo confirmed that the invoices from the League were reviewed by the City's finance department. Secretary Little moved to approve the Expense Report as presented. Seconded by Member Reardon and carried by a unanimous voice vote. D. Distributions and New Retirees: 1. New Retirees: Pension 5-3-2023/2 Clint Cioielli monthly benefit$8,759.25 starting April 1, 2023 Eric Jones monthly benefit $1,817.98 starting April 1, 2023 Member Reardon moved to approve the payments as presented. Seconded by Secretary Little and carried by a unanimous voice vote. 5. Other Business. A. Review of Disability Claims Mr. Herrera presented the revised forms. The Board noted that there was no mailing address listed on the form and requested that the notarization part be included on the page with the requested information. Secretary Little moved to table this item until the next meeting in order to be able to review the revised forms. Seconded by Member Reardon and carried by a unanimous voice vote. B. Florida Commission on Ethics Form 1 Mr. Langley reminded the Board that the Florida Commission on Ethics form 1 will be due by July 1st 6. Board Attorney Report. A. Updating the Plan Document Mr. Hererra informed the Board on House Bill 30. The bill was signed by the Governor and effect July 1, 2023. The bill contains new fiduciary requirements that effect the Board. The bill also changes the definition of"fiduciary." Every two years, the Board will need to file a report stating how investment decisions are being made. Mr. Langley informed the Board that the Plan should be insulated from this bill because they are part of the FMPTF. The FMPTF will handle any reporting requirements. Mr. Hererra will keep the Board updated as the State releases new information. 7. Member Comments. None. 8. Administrator Comments. Mr. Langley explained how the DRAGO Fund operates. DRAGO Fund Balance $3,155,148.96. Mr. Langley informed the Board that the FMPTF now offers text reminders for up coming Pension Board meetings. He instructed the Board how to the sign up for text reminders. Pension 5-3-2023/3 9. Public Participation. None. The next meeting date is August 2, 2023. 10. Adjournment. Chair Redditt adjourned the meeting at 7:42 p.m. Robert Redditt, Chair ATTEST: pmyfantrei,4ecording Secretary Pension 5-3-2023/4