MINUTES OF THE MARCH 21, 2016 CITY OF SARASOTA GENERAL EMPLOYEES PENSION PLAN BOARD OF TRUSTEES MEMBERSHIP MEETING Present: Chair Gretchen Schneider, Vice Chair Barry Keeler, Secretary Pamela Nadalini, Treasurer John Lege, and Trustees Ryan Chapdelain, Bonnie Wagner, and Kari McVaugh Others: Attorney Scott Christiansen, Pension Plans Administrator Harry Ramphal, Senior Pension Analyst Anthony Ferrer, and Pension Specialist Chinyere Deehan Absent: None 1. CALL1 THE MEETING TO ORDER: Chair Gretchen Schneider called the meeting to order at 12:02 p.m. 2. PLEDGE OF CIVILITY: Chair Schneider read into the record a memorandum from Mayor Willie Charles Shaw, dated February 13, 2015, entitled "City Commission and Advisory Board Meeting Protocols and Pledge of Civility." 3. PUBLIC INPUT: None 4. APPROVAL OF MINUTES: 4.1. Approval Re: Minutes of the February 22, 2016, Sarasota General Employees' Pension Board Membership Meeting A motion was made by Vice Chair Keeler, seconded by Trustee McVaugh to approve the February 22, 2016, City of Sarasota General Employees' Pension Plan Board of Trustees Regular Meeting minutes. Motion carried unanimously (7-0). 4.2. Approval Re: Minutes of the February 26, 2016, Sarasota General Employees Pension Board Special Meeting Chair Schneider stated that the minutes of the February 26, 2016, City of Sarasota General Employees Pension Plan Special Meeting, should be corrected to reflect that it was a Special Meeting. Secretary Nadalini stated that the correction will be made to the minutes of February 26, 2016, reflecting that the meeting was a Special Meeting. A motion was made by Vice Chair Keeler, seconded by Trustee McVaugh to approve the February 26, 2016, City of Sarasota General Employees' Pension Plan Board of Trustees Regular Meeting minutes with noted corrections. Motion carried unanimously (7-0). 5. BOARD OF TRUSTEES REPORT(S): 5.1. Presentation and Discussion Re: Attendance Report Secretary/Treasurer Nadalini presented the Board members' attendance report for 2015. In response to a question from Chair Schneider asking if any of the members were contacted regarding attendance, Secretary Nadalini stated that it is the responsibility of the Chair to send correspondence to the members regarding attendance. She further stated that Pension Plans Administrator Ramphal will draft a letter for Chair Schneider's signature regarding the Book 1 Page 10 03/21/16 12:00 P.M. Book 1 Page 11 03/21/16 12:00 P.M. attendance of the members. Chair Schneider stated that it might be time to update the plan's operating procedures regarding attendance to correspond with what the City of Sarasota Code specifies. Attorney Christiansen stated that he would review the provisions in the code and the operating procedures for consistency. 5.2. Presentation and Discussion Re: Treasurer's Report Treasurer Lege stated that the Treasurer's Report will be postponed until the 2015 Audit Report is completed. 5.3. Presentation and Discussion Re: Highlights of Pension Activity for 2015 Pension Plans Administrator Ramphal discussed the roles and responsibilities of the Pension Administration Division, provided details of recent accomplishments and discussed the Pension Administration's efforts regarding the 2015 Plan Audit. Secretary Nadalini stated that the Auditors have completed the field work for the audit and are now working on the Governmental Accounting Standards Board Statement Number 68 engagement. 6. APPROVAL OF RETIREMENT REQUESTIS): 6.1. Approval Re: Retirement Request of Michael Jenkins Pension Plans Administrator Ramphal stated that Michael Jenkins requested a retirement date of March 2, 2016; that Mr. Jenkins is 62 years of age, has 17.01 years of service, and elected the Lifetime Option. A motion was made by Trustee Chapdelain, seconded by Vice Chair Keeler, to approve the Retirement Request of Michael Jenkins. Motion carried unanimously (7-0) 6.2. Approval Re: DROP Retirement Request of Janice Cox Pension Plans Administrator Ramphal stated that Janice Cox requested to enter the DROP effective March 1, 2016; that Ms. Cox is 61 years of age and has 30.07 years of service, and has selected the 50% Pop Up Option. A motion was made by Vice Chair Keeler, seconded by Secretary Nadalini to approve the DROP Retirement Request of Janice Cox. Motion carried unanimously (7-0) 6.3. Approval Re: DROP Retirement Request of Patricia J. Hahn Pension Plans Administrator Ramphal stated that Patricia J. Hahn requested to enter the DROP effective March 1, 2016; that Ms. Hahn is 65 years of age and has 12.39 years of service, and has selected the 50% Pop Up Option. A motion was made by Secretary Nadalini, seconded by Vice Chair Keeler to approve the DROP Retirement Request of Patricia J. Hahn. Motion carried unanimously (7-0) 7. UNFINISHED BUSINESS: 7.1. Continued Discussion Re: Retiree Benefit Plans Payments Pension Plans Administrator Ramphal stated that under the Pension Protection Act of 2006, retired Public Safety Officers are eligible to receive a $3,000 tax deduction for health care costs; that although there has been an attempt by the Pension Office to accommodate the retired Public Safety Officers, the Pension Plan's third party payroll provider, ADP, has advised Staff that the request cannot be accommodated. Secretary Nadalini stated that although ADP is unable to accommodate the request, Staff will continue to investigate whether they can assist with the request; that she is supportive of the proposed request; however she is not supportive of changing payroll providers as when this type of change was initiated years ago, a number of issues arose which affected the retirees' payroll. 8. QUESTIONS FROM MEMBERSHIP: None 9. NEW BUSINESS: 9.1. Presentation and Discussion Re: Actuarial Valuation as of September 2015 by Gabriel Roeder Smith Peter Strong, Senior Consultant and Actuary, Gabriel, Roeder, Smith & Company, came before the Board to present the General Employees' Pension Fund Actuarial Valuation Report as of September 30, 2015, and stated that the required contribution for the year beginning October 1, 2016 is down slightly from the current year to $6.387 million from $6.422 million; that the ratio of the funding value of assets to the actuarial accrued liability is 71.2% which is an increase over last year's 69.9%; that the rate of return on the funding value of assets was 7.4% versus the 7.0% expectation. A motion was made by Vice Chair Keeler, seconded by Treasurer Lege to approve the General Employees' Pension Fund Actuarial Valuation Report as of September 30, 2015. Motion carried unanimously (7-0) 9.2. Presentation and Discussion Re: GASB 67 Disclosure as of September 2015 by Gabriel Roeder Smith Peter Strong, Senior Consultant and Actuary, Gabriel, Roeder, Smith & Company, came before the Board and provided a brief overview concerning the Govemmental Accounting Standards Board Statement Number 67 Disclosure, the supporting exhibits and the contribution as per percentage of pay. In response to a question from Secretary Nadalini asking for the requirements from the State now that the actuarial valuation has been approved, Attorney Christiansen stated that Florida Statutes require that the Board declare an expected rate of investment retum; that the Board would have a recommendation from the Consultant before this requirement was completed; however it is recommended this discussion be placed on the Agenda for the next Board meeting. 10. ATTORNEY MATTERS: Attorney Christiansen requested authorization from the Board to update the Summary Plan Description. Book 1 Page 12 03/21/16 12:00 P.M. Book 1 Page 13 03/21/16 12:00 P.M. 11. OTHERI MATTERS: Secretary Nadalini stated that the Board Members are reminded to file a Form 1 Financial Disclosure which is due on July 1,2 2016. Treasurer Lege stated that he has questions regarding lump sum retirement pay calculations and there was Board consensus for a discussion to ensue with Peter Strong, the Senior Consultant and Actuary from Gabriel, Roeder, Smith & Company. 12. ADJOURN. Chair Schneider adjourned the General Employees' Pensions Board of Trustees Regular meeting at 1:15 p.m. 0dW Hmslahneh Chair Gretchen M. Schneider Secretary Pamela M. Nadalini