MINUTES OF THE APRIL 15, 2013 GENERAL EMPLOYEES' PENSION BOARD MEETING Present: Chair Cheri Potts, Vice Chair Gretchen Schneider, Treasurer John Lege, Secretary Pamela Nadalini and Trustees Ryan Chapdelain and Barry Keeler Absent: None. Others Present: Brian Beda, CIMA, SMA Business Manager and Don Graham, Director of Portfolio Analytics, Franklin Templeton Investments, Attorney Scott Christiansen, Christiansen & Dehner, Pension Plans Administrator Tom Kelley, Pension Analyst Gail Loeffler, and Office Assistant Nicole Ackerman CALL THE MEETING TO ORDER Chair Potts called the meeting to order at 8:30 a.m. PUBLIC INPUT -3 3 Minute Limit None APPROVALI RE: MARCH 18, 2013MINUTES On a motion of Treasurer Lege, and a second by Trustee Keeler, it was moved to approve the minutes of March 18, 2013. Motion carried unanimously. APPROVAL RE: CHANGE IN RETIREMENT DATE FOR TERRY ADKINS FROM MARCH 1, 2013 TO APRIL 1, 2013 Terry Adkins had requested, and was approved by the Board, for a retirement date of March 1, 2013; however, due to the last day worked being in March, the retirement date changed to April 1, 2013. Mr. Adkins is 64 years 4 months of age, has 18.16 years of service and elected the 100% Joint Annuitant with Option to change the joint annuitant. On motion of Secretary Nadalini, second of Trustee Chapdelain, it was moved to approve the revised retirement request of Terry Adkins. Motion passed unanimously. Consensus was reached, with regard to retirement requests, to also provide the Board with the department in which the Plan member works. PRESENTATION RE: FRANKLIN TEMPLETON INVESTMENTS Brian Beda, CIMA, SMA Business Manager, and Don Graham, Director of Portfolio Analytics from Franklin Templeton Investments, came before the Board to present the City of Sarasota General Employees' Pension Plan, International Value Portfolio report. Mr. Beda stated that there have been no changes to portfolio management; that the portfolio is in compliance with the Investment Policy Statement; that there were no major changes at the firm. Don Graham gave an overview of the international market and stated that in first quarter the portfolio's total returns are trailing the benchmark; that total returns for one year are 10.9%. Mr. Graham discussed further the sector weightings. April 15, 2013 1 In response to Secretary Nadalini's question regarding the portfolio value, Mr. Graham stated that as of March 31, 2013 the market value of the portfolio was $9,177,981.27. Secretary Nadalini requested that the in the future the investment review include the current Fund balance and that the performance in the portfolio is also shown by fiscal year. APPROVE RE: TRUSTEE ELECTION RESULTS Pension Administrator Kelley stated that election forms were distributed to Plan members for nominations to Seat 2 on the Board of Trustees; that the nomination of Ryan Chapdelain was the only nomination received and, therefore, the full balloting process was not necessary. On a motion of Vice Chair Schneider and a sécond of Treasurer Lege, it was moved to approve the reelection of Ryan Chapdelain. Motion passed unanimously. PRESENTATION RE: FY 2013 - 2014 ANNUAL BUDGET Pension Administrator Kelley stated that the only significant change was in the personnel area to add a full time Administrative Specialist III position; that costs for the position will be split among all four pension plans. On a motion of Trustee Chapdelain and a second of Vice Chair Schneider, it was moved to approve the Fiscal Year 2013-2014 Annual Budget. Motion passed unanimously. DIRECTION RE: RENAISSANCE INVESTMENT CODING ERROR Pension Administrator Kelley stated that Renaissance Investment sent a letter dated March 28, 2013 that stated they recalculated and restated the performance for the Fund's small international equity account for the years of 2010, 2011, and 2012 due to a coding error in their performance calculation system; that the error did not affect the account market value or fees. The Board requested that Charlie Mulfinger, of Graystone Consulting, be prepared to discuss this at the next meeting. DIRECTION RE: ACTUARIAL CASE STUDY OF MORTALITY ASSUMPTION, DOLLAR BASE CONTRIBUTION METHOD, REDUCTION OF THE AMORTIZATION PERIOD, AND THE AGGREGATE COST METHOD Discussion ensued regarding changing to the percentage of pay contribution method versus the dollar base contribution method as discussed with the actuary, Peter Strong, at the March 18, 2013 meeting. On a motion of Trustee Keeler and a second of Trustee Chapdelain, it was moved to change from the current method of percentage of pay contribution to the dollar based contribution method effective fiscal year 2013-2014. Motion passed unanimously. Vice Chair Schneider requested that this discussion is revisited again in the future in order to further discuss the other changes and when those could potentially take effect. ATTORNEY MATTERS In response to Attorney Christiansen regarding the vacancy on the Board, Pension Administrator Kelley stated that it has been advertised for quite some time on the City's website and in newspapers; that there have been no responses to the vacancy. April 15, 2013 2 Attorney Christiansen stated that proposed Ordinance No. 13-5056 is set for Public Hearing before the City Commission for first reading on April 15, 2013; that a copy of the proposed Ordinance must be sent to the Division of Retirement in Tallahassee between the first and second readings. OTHER] MATTERS Pension Administrator Kelley stated, for information purposes, that more members are taking the Lump Sum Distribution option as a retirement benefit. Attorney Christiansen stated that there was once an attempt to remove the Lump Sum Option, but it was not approved. Pension Administrator Kelley stated that the long term plan for the Pension Administration office is to hold informative sessions for Plan members to educate them about their pension benefits. ADJOURN The meeting was at 9:52 a.m. OTHER INFORMATION The next meeting is scheduled for May 24, 2013, at 10:00 a.m. in the City Commission Chambers. Chair Cheri Potts Secretary/Ireasurer Pamela Nadalini April 15, 2013 3