MINUTES OF THE REGULAR MEETING OF THE POLICE OFFICERS' PENSION BOARD, JULY 22, 2011 Present: Chair Ron Baty, Vice-Chair Jody Hudgins, Secretary/Treasurer Pamela Nadalini, Trustees Kevin Stiff and Tim Van Schultz Absent: None Others Present: Attorney Lee Dehner, Pension Plans Administrator Benita Saldutti, Pension Analyst Gail Loeffler, and Staff Member Diane Torres CALL TO ORDER Chair Baty called the meeting to order at 8:16 a.m. APPROVAL OF THE REGULAR MEETING MINUTES OF JUNE 17, 2011 On a motion of Vice-Chair Hudgins and a second of Trustee Van Schultz, it was moved to approve the minutes of the regular meeting of June 17, 2011. Motion carried unanimously. APPROVAL RE: DROP RETIREMENT REQUEST OF MICHAEL KAHL Ms. Saldutti stated that Michael Kahl has applied for DROP retirement beginning August 1, 2011, that he is 50 years of age, 22.78 years of service, and has selected the option which provides a death benefit of 100% to his spouse after his death. On a motion of Vice Chair Hudgins and a second of Trustee Van Schultz, it was moved to approve the DROP retirement request of Michael Kahl. Motion carried unanimously. DISCUSSION: TRADING ISSUES WITH ADVENT CAPITAL Ms. Saldutti stated that Advent Capital and Salem had trading issues a few weeks ago due to miscommunications. She continued that Mr. Larry Cole of Burgess Chambers was able to facilitate the discussion and work through the issues. She continued that both companies have the necessary paperwork and the issues have been resolved. DISCUSSION FIDUCIARY AND LIABILITY INSURANCE Ms. Saldutti stated that the plan has always carried fiduciary liability nsurance in the event of a lawsuit. She continued that the policy has $3 million coverage with a $50,000 deductible and it provides for the legal defense if a claim is filed. She continued that general liability insurance has also been carried, however the City's workers' compensation would cover if trustees are injured while on Board business, but the City's liability policy does not cover damages to a trustee's vehicle. It was the consensus of the Board to renew the fiduciary and general liability insurance policies. July 22, 2011 1 APPROVAL OF PENSION DEPARTMENT BUDGET Ms. Saldutti stated that the budget for the Police Officers' Pension Plan is $144,000 for next fiscal year, that the only increase from the current year is from higher pension and medical costs. She continued that the Commission questioned the attorneys' fees for all pension plans during the budget workshops. She continued that disability claims drive the attorneys' fees which many times are lower than the budgeted cost. Attorney Dehner stated that the Attorney advances cost for payment of physicians, examinations, and records which is often very expensive and the City reimburses the attorney. Therefore, in many cases the payments seen to the attorney is not always in fee. On a motion of Vice Chair Hudgins and a second of Trustee Van Schultz, it was moved to approve the Pension Department budget. Motion carried unanimously. STATUS RE: DISABILITY REQUEST OF RICHARD CONWAY AND JANINE CROUGH Attorney Dehner stated that he has not yet received the interrogatories and signed medical releases from Richard Conway, therefore, a second request has been sent. He continued that he is still waiting to receive records from one physician and Sarasota Memorial Hospital for Janine Crough. He requested that the Board extend the processing period for Ms. Crough by 90 days. On a motion of Secretary/Treasurer Nadalini and a second of Trustee Van Schultz, it was moved to grant a 90-day extension for the processing period for Janine Crough. Motion carried unanimously. Mr. Dehner questioned whether the Board wants to use another physician to conduct an IME or continue to use Dr. Vega. He continued that the cost should be less expensive if Dr. Vega conducts the IME since he is already familiar with her records. It was the consensus of the Board for Dr. Vega to conduct the IME for Janine Crough. OTHER MATTERS: JP Morgan Ms. Saldutti stated $2 million will be deposited with JP Morgan on August 3, 2011 to comply wigth the asset allocation. Aletheia Research Vice-Chair Hudgins questioned whether any private conversations have occurred with Aletheia Research concerning the generic report format. Ms. Saldutti stated that Aletheia Research has apologized. She continued that Larry Cole, Burgess Chambers, conveyed he has had many conversations with Aletheia regarding the matter. July 22, 2011 2 nvestment Returns Vice-Chair Hudgins requested that Mr. Cole provide a comparison of the Board's returns with the return of FRS. General Employees' Union Contract Vice-Chair Hudgins requested a status report concerning the approval of the union contract for the general employees. Ms. Saldutti stated that the Teamsters Union members voted to approve the new contract agreement. Legislation Ms. Saldutti questioned the manner in which the limitation of 300 hours of overtime will be implemented for pension calculation purposes if the Police Officers do not enter into an agreement by October 1, 2011. Attorney Dehner stated that the effective date is the latter of July 1, 2011, or the date in which the next collective bargaining agreement is entered. He continued that the Division has agreed the date in which a collective bargaining agreement is entered is the date when all parties have signed. Next Meeting The next regular meeting will be at 8:15 a.m. on Friday, August 26, 2011, in the City Commission Chambers. ADJOURN The meeting was adjourned at 9:24 a.m. Chair Baty Secretary/Treasurer Nadalini July 22, 2011 3