Pension_05-01-2024Min 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 1, 2024
6:00 P.M.
Present: Robert Redditt, Chair
Kevin Little, Vice-Chair
Chris Eichler, Secretary
Pedro Herrera, Board Attorney
Michelle Longo, City Clerk
Jeremy Langley, Florida League of Cities
Chuck Carr, Actuary via Zoom
1. Call to Order and Pledge of Alligance.
Chair Redditt called the meeting to order at 6:00 p.m.
2. Approval of Minutes: February 7, 2024, Regular Meeting.
The Board reviewed the minutes.
Trustee Eichler moved to approve the minutes as presented. Seconded
by Trustee Little and carried by a unanimous voice vote.
3. Review of Agenda Packet Material.
A. Expense Report for Approval.
Chair Reddit presented the Expense Report.
Trustee Eichler moved to approve the expenses as presented.
Seconded by Trustee Little and carried by a unanimous voice vote.
B. Distributions and New Retirees.
Chair Redditt presented the report.
Trustee Eichler moved to approve the payments as presented.
Seconded by Trustee Little and carried by a unanimous voice vote.
C. Quarterly Investment Report ending December 31, 2023.
Mr. Langley presented the quarterly report. The beginning balance was
$27,227,993.77; contributions were $222,501.03; earnings were
$2,172,352.18; distributions were $153,269.98; expenses were
$15,088.64; and the ending balance was $29,454,488.36. He informed
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the Board that the Plan ended the quarter at 7.93%. Mr. Langley
informed the Board that the quarter ending March 315t was also a strong
quarter.
Trustee Eichler moved to accept the Plan Account Statements as
presented. Seconded by Trustee Little and carried by a
unanimous voice vote.
D. 2024 Presidental Election—Fiscal Policy.
Mr. Langley informed the Board that this was for the Board's information
and was prepared by the independent investment consultant,Asset
Consultant Group. The Board discussed the current market conditions.
4. Other Business.
A. Actuarial Valuation.
Mr. Carr presented the report. He informed the Board that there were no
plan changes nor assumption changes in this report. Mr. Carr informed
the Board that for the past 5 years, the actual pay increases were more
than the assumed increases. This is slowing driving up the cost of the
plan. He reminded the Board about the 5 year smoothing technique
being used and about the City's advanced employer contributions. He
also explained the Plan's funded percentage of 98.5%.
Trustee Eichler moved to approve the Actuarial Valuation as
presented. Seconded by Trustee Little and carried by a
unanimous voice vote.
B. Approve Assumption Rate.
Trustee Little moved to approve the assumption rate at 6.5%for
the next year, the next several years, and the long term
thereafter. Seconded by Trustee Eichler and carried by a
unanimous voice vote.
Trustee Eichler asked Mr. Carr about the conversation referenced in an
invoice from the actuary. Mr. Carr informed the Board that the
discussion was about offering a one-time early retirement for those with
20 or more years of credited service.There would be a window to elect
whether or not to take advantage of the early retirement. This would be
a cost neutral to the plan. Also discussed was permanently offering a 20
and out benefit which would increase the cost of the Plan by about
4.33%.
Trustee Eichler asked if a cost study for a COLA or a DROP was discussed.
Mr. Carr reported that adding those benefits were looked at in 2022.
Trustee Eichler asked for a study for a COLA and a 5-year DROP.
Mr. Carr explained that a DROP is usually cost neutral if there was no
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early DROP and if the interest was not at a guaranteed high interest rate.
Normally, a DROP offers an interest rate that is equal to the net return of
the Plan. If the DROP offers a fixed interest rate, it is usually at 3-4%. Mr.
Eichler asked about the cost of a delayed COLA at 10 and at 15 years with
increases of 2%, 3%, and 4%. Mr. Carr explained how expense a COLA is.
A small delayed COLA increases the Plan about 4-7% and an automatic
COLA starting right away is very expensive. He explained that offering a
COLA to only long term employees, like those with 15 years of service,
does not make a COLA less expensive because long term employees cost
more to the Plan in general. Mr. Carr informed the Board that most of
the plans with a COLA have had them for a long time. If a plan addes a
COLA, it is usually a delayed COLA. Trustee Eichler withdrew his request
for the cost study so he could go back to the Unions and relay this
information to the them. He explained that the City would not
contribute any more into the Plan so the members would have to bare
any increased costs to the Plan.
C. Moving Next Meeting Date From Wednesday, August 7th to Thursday,
August 8, 2024.
Ms. Longo explained to the Board that a Commissioner requested the
meeting space at the same time as the Board's next meeting. The Board
agreed to move their meeting to the next day.
D. Cost of Living Adjustment (COLA) Discussion. Already done.
5. Board Attorney Report.
Mr. Herrera reminded the Board to file the Florida Commission on Ethics Form 1.
The report is now only filed through the online portal. He also informed the
Board that the way items are reported have been changed.
6. Member Comments. None.
7. Administrator Comments.
A. DRAGO Fund Balance as of 10/01/2023 $3,190,958.
The Board reviewed the way the DRAGO fund is calculated.
B. Reminder: File Florida Commission on Ethics Form 1. Already done.
C. Follow Up: Annual Report.
Mr. Langley informed the Board that this was for information purposes
only.The report was filed on time.
10. Public Participation. None.
11. Next Meeting:August 8, 2024
12. Adjournment.
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Chair Redditt adjourned the meeting at 7:42 p.m.
Robert Redditt, Chair
ATTEST:
Jeremy Langley, Recording Secretary
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