MINUTES OF THE REGULAR MEETING OF THE FIREFIGHTERS PENSION BOARD OF TRUSTEES OF AUGUST 28, 2013 Present: Chair Michael Hartley, Vice Chair Shelia Roberson, Trustees Scott Snow and Charles Joseph Absent: Secretary/Ireasurer Pamela Nadalini Others Present: Pamela Harvey, Assistant Vice President, Treasury & Payment Solutions, SunTrust Bank, Josh McCoy, Assistant Vice President, Institutional and Government Banking, SunTrust Bank, Gerry Ludwig, Ludwig-Walpole Company, and Robert Ludwig, President, Ludwig-Walpole Company, Taylor T. Collins, CEBS, CLU, RHU, Vice President, Professional Benefits, Inc., Attorney Robert Sugarman, Sugarman & Susskind, Pension Plans Administrator Tom Kelley, Pension Analyst Gail Loeffler, and Nicole Ackerman, Office Assistant 1. CALLI MEETING TO ORDER: Chair Hartley called the meeting to order at 9:02 a.m. 2. PUBLIC INPUT: None. 3. APPROVAL: RE: MINUTES OF REGULAR FIREFIGHTERS PENSION BOARD MEETING OF AUGUST 28, 2013 Trustee Snow stated that he, Trustee Joseph, and Vice Chair Roberson were not present at last meeting; that they cannot make a motion on the minutes. Chair Hartley passed the gavel to Vice Chair Roberson. On a motion of Chair Hartley and a second by Trustee Snow, it was moved to approve the minutes of August 28, 2013. Motion passed unanimously. 4. APPROVAL OF RETIREMENT REQUEST OF T.J. BROOM: Thomas J. Broom requested a retirement date of August 23, 2013. Mr. Broom is 50 years of age, has 27.34 years of service and elected the Optional Spousal Benefit of 67%. On a motion of Trustee Snow and a second of Vice Chair Roberson, it was moved to approve the retirement request ofThomas J. Broom. Motion passed unanimously. Chair Hartley presented Thomas J. Broom with a plaque acknowledging his years of service to the Board as the Chairman and Trustee. 5. PRESENTATION AND DISCUSSION: 5.1. PRESENTATION AND DISCUSSION RE: TREASURY MANAGEMENT MASTER AGREEMENTS: Pension Administration Kelley explained that he invited Pamela Harvey, Assistant Vice President, Treasury & Payment Solutions, of SunTrust Bank and Josh McCoy, Assistant Vice President, Institutional and Government Banking, of SunTrust Bank before the Board; that there they are here to present information regarding programs that will offer additional protection to the Fund's bank accounts from fraud. 1 August 28, 2013 Ms. Harvey stated that Positive Pay protects the bank account against check fraud and she explained process how the process. Ms. Harvey explained that the second program is called ACH fraud control and it protects against electronic debit frauds. In response to Vice Chair Roberson' s question regarding the cost for the positive pay, Ms. Harvey stated that it is approximately $20 a month. Further discussion ensued regarding the Positive Pay and the ACH Fraud Control. On a motion of Vice Chair Roberson and a second of Trustee Snow, it was moved to approve the Treasury Master Management Agreement with SunTrust Bank. Motion passed unanimously. Ms. Harvey said that the process to implement the programs will begin as soon as possible. 5.2., PRESENTATION AND DISCUSSION RE: OVERVIEW AND EXPLANATION OF CURRENT INSURANCE POLICIES: Gerry Ludwig, Ludwig-Walpole Company, and Robert Ludwig, President, Ludwig-Walpole Company came before the Board and gave a brief summary ofthe company. Mr. Gerry Ludwig stated that the Board currently has four insurance policies: two ERISA bonds, a fiduciary liability policy, and a business owner's S policy. In response to Attorney Sugarman' S question regarding the limit of the policy, Mr. Gerry Ludwig stated that is $1 million. Attorney Sugarman further asked if the policy included a non-owned auto endorsement; that this must be added to the policy ifi not already there and further explained the non-owned auto endorsement policy. Mr. Robert Ludwig stated that hired and non-owned auto endorsement is already on policy. Attorney Sugarman stated that $1 million may not be enough and recommended that the Board request $2, $3 and $5 million quotes for this addition to the policy. On a motion of Vice Chair Roberson and a second of Trustee Snow, it was moved to request the quotes for $2, $3, and $5 million. Motion passed unanimously. Mr. Gerry Ludwig gave a further explanation ofthe two ERISA bonds and the fiduciary liability insurance policy. In response to Attorney Sugarman' s question regarding whether there is a waiver of recourse for the fiduciary liability insurance, Mr. Robert Ludwig stated yes. Attorney Sugarman further explained that this will also cover defense for a claim from a retiree who may be unhappy with being denied a benefit and files a lawsuit. Mr. Gerry Ludwig explained that Travelers Insurance now has a new bond form beginning on September 1, 2013; that this new form has added several services; that the new services includes a toll free phone number to speak to an ERISA attorney and a library of pension information online, including an online training regarding the program. Vice Chair Roberson asked Attorney Sugarman if he is satisfied with limits and deductibles on the policies and Attorney Sugarman stated that he is satisfied with the limits but recommends that the Board ask how much the premium would be for a lower deductible. Attorney Sugarman stated that the claim's exposure is fairly low due to the fact there are very few active members left and that the investment risk is very low. Attorney Sugarman requested that there be a menu of options for the Board to review regarding the different premium and deductible. Mr. Gerry Ludwig and Mr. Robert Ludwig confirmed that they will be returning to next month's meeting to present the requested information. 2 August 28, 2013 5.3. PRESENTATION AND DISCUSSION RE: BUSINESS TRAVEL ACCIDENT COVERAGE: Attorney Sugarman explained that it is advisable for the Board to be protected for expenses due to injury while traveling on pension fund business. Taylor T. Collins, CEBS, CLU, RHU, Vice President, Professional Benefits, Inc. came before the Board to present the quotes and answer questions regarding the business travel accident insurance; that there were three quotes from different companies that offer volunteers' traveler's insurance. Ms. Collins further explained the three different quotes. In response to Attorney Sugarman's question whether these quotes are for medical expenses, Ms. Collins stated no they only pay upon death or dismemberment. Attorney Sugarman stated that the Board desires medical insurance in the case of an accident. Ms. Collins stated that she will bring back the requested information regarding the business travel medical insurance to next month' s meeting. 6. APPROVAL RE: ENGAGEMENT LETTER FOR BOBBITT, PITTENGER & COMPANY, P.A.: Pension Administrator Kelley explained that before the Board is the engagement letter for Bobbitt, Pittenger & Company for the annual audit of the Pension Fund; that the cost of the audit is estimated the same as the previous year. There was further discussion regarding whether to change the auditing firm. Trustee Snow stated that the Bobbitt, Pittenger & Company audit manager explained that there is a new auditor each year reviewing the Fund. Chair Hartley asked if a Request for Proposal (RFP) is necessary for considering a new audit firm since the same one has been used for numerous years, Attorney Sugarman stated that if the Board satisfied with the services, and there is a fresh set of eyes every year, that there is no need for an RFP. On a motion of Vice Chair Roberson and a second of Trustee Joseph, it was moved to approve the engagement letter for Bobbitt, Pittenger & Company, P.A. Motion passed unanimously. 7. ATTORNEY MATTERS: Attorney Sugarman thanked the Board for courtesy shown to Attorney Herrera at last week's Annual State of the Pension Workshop; that the State has announced that they again host the police officers and firefighters pension schools twice a year; that the next one is in October in Orlando, Florida. Attorney Sugarman asked if there was any feedback on Friday's Annual State of the Pension Workshop and Pension Administrator Kelley stated that it went well; that there was more positive information present to the Commission; that the Commission had asked what the ten year gross returns were for this Plan and that the actuary responded that it is 8.4% and in seven of the ten years the Plan exceeded the assumed rate of return. Attorney Sugarman stated that the Scholarship award winners for the Firefighters' Pension Fund Scholarship were announced. 3 August 28, 2013 8. OTHER MATTERS: In response to Chair Hartley question regarding whether he can Skype the meeting next month while in Europe, Pension Analyst Loeffler stated that she was unsure if we had the capability of doing this but that we will check into it. Pension Administrator Kelley presented a plaque to Attorney Sugarman on behalf of the City for his service to the Plan. 9. ADJOURN. The meeting was adjourned at 10:27 a.m. : Du. ox Chair Michael Hartley SecretaryTreasurer Pamela Nadalini 4 August 28, 2013