MINUTES OF THE REGULAR MEETING OF THE FIREFIGHTERS PENSION BOARD OF TRUSTEES OF SEPTEMBER 25, 2013 Present: Vice Chair Shelia Roberson, Secretary/Ireasurer Pamela Nadalini, and Trustees Scott Snow and Charles Joseph Absent: Chair Michael Hartley Others Present: Gerry Ludwig, Ludwig-Walpole Company, and Robert Ludwig, President, Ludwig- Walpole Company, Taylor T. Collins, CEBS, CLU, RHU, Vice President, Professional Benefits, Inc., Grant McMurry, Managing Director, ICC Capital Management, Martin LaPrade, CFA, Partner, Equity Portfolio Manager, Sawgrass Asset Management, LLC, Attorney Robert Sugarman, Sugarman & Susskind, Pension Plans Administrator Tom Kelley, Pension Analyst Gail Loeffler, and Nicole Ackerman, Office Assistant 1. CALLMEETING TO ORDER: Vice Chair Roberson called the meeting to order at 9:07 a.m. 2. PUBLIC INPUT: None. 3. APPROVAL OF MINUTES: On a motion of Trustee Snow, and a second by Trustee Joseph, it was moved to approve the minutes of August 28, 2013. Motion passed unanimously. 4. APPROVALOF RETIREMENT REQUEST: 4.1. Pension Administrator Kelley stated that Eugene Anthony" Martinez requested a retirement date of October 18, 2013. Mr. Martinez is 57 years of age, has 24.02 years of service, and elected the 100% Joint Annuitant Option. On a motion of Trustee Snow, and a second by Trustee Joseph, it was moved to approve retirement request of Eugene "Anthony" Martinez. Motion passed unanimously. 4.2 Pension Administrator Kelley stated that Charles Light requested to begin his deferred benefit on October 5, 2013. Mr. Light terminated August 22, 2007 and has now reached 50 years of age. He has 22.29 years of service and elected the 10 Years Certain and Lifetime benefit. Approval ofthe deferred retirement request was tabled for further discussion after item 5. 5. PRESENTATION AND DISCUSSION: 5.1. PRESENTATION AND DISCUSSION RE: REQUESTED QUOTES FOR INSURANCE POLICY: Gerry Ludwig, Ludwig-Walpole Company, and Robert Ludwig, President of Ludwig-Walpole Company, came before the Board to present the requested quotes for the insurance policies as discussed in the August meeting; that the Board requested three items: 1) the cost to increase the business owners policy liability to $2 million per occurrence and $4 million aggregate is $50.00, 2) the cost ofthe umbrella policy for $3 million is $1,151.00, and 1 September 25, 2013 3) the cost to lower the deductible on the fiduciary policy to $25,000; that Travelers Insurance will not lower the deductible due to the amount ofthe bond and because the funding status must be at 80%. Attorney Sugarman recommends that the Board accept the first quote; that the Board obtain the advice of the insurance professionals regarding the umbrella quote. Mr. Robert Ludwig stated that the higher the limit the more likely and more quickly a claim could be settled. On a motion of Trustee Joseph, and a second by Trustee Snow, it was moved to approve the increase to the business owners' policy liability to $2 million per occurrence and $4 million aggregate at a cost of $50.00. Motion passed unanimously. On a motion of Trustee Snow, and a second by Trustee Joseph, it was moved to approve the umbrella policy for $3 million at a cost of $1,151.00. Motion passed unanimously. 5.2. PRESENTATION AND DISCUSSION RE: TRAVEL ACCIDENT COVERAGE: Taylor T. Collins, CEBS, CLU, RHU, Vice President of Professional Benefits, Inc. came before the Board to present travel accident coverage policies. Discussion ensued regarding the three options she presented. Attorney Sugarman asked ift the Board was interested in the travel accident insurance coverage and Secretary Nadalini stated that she is not comfortable with options presented; that more research needs to be completed; that Staff should check with the Police Officers' and General Employees' Pension Boards to see ifthere is interest in obtaining travel accident insurance for the Boards to share the fees. Pension Administrator Kelley stated that he would review previous correspondence with ChiefTobias regarding whether Chair Hartley and Trustee Joseph are considered to be on official County business when they travel as trustees to determine if they would be eligible for workers' compensation if there was an accident. Secretary Nadalini requested that Attorney Sugarman provide information regarding the type oftravel accident insurance that his other clients have purchased; that because there are a number of unanswered questions, she does not support approving any ofthe insurance options at this time. Trustee Joseph requested that this item is deferred to give the other Pension Boards time to determine if they are interested in obtaining this travel accident insurance. Ms. Collins stated that she would send the full policy of the Colonial Accident and Medical Bridge insurance in for Attorney Sugarman to review; that she will request a census of the Police Officers' and General Employees' Board's from Staff. 4.2. CONTINUED DISCUSSION OF DEFERRED RETIREMENT REQUEST OF CHARLES LIGHT: Discussion ensued further regarding the deferred retirement of Charles Light; that Mr. Light should be notified to explain that if he does not elect a beneficiary that his death benefit would be paid to the estate; that he should be advised that the multiplier would increase each year after age 50; that if he delays receiving the benefit it would increase; that Staff will send correspondence to Mr. Light with this explanation; that a copy ofthe letter be provided to the Board. On a motion of Secretary Nadalini, and a second by Trustee Joseph, it was moved to approve the deferred retirement request of Charles Light. Motion passed unanimously. 2 September 25, 2013 6. INVESTMENT REVIEW: 6.1.ICC CAPITALI MANAGEMENT: Grant McMurry, Managing Director of ICC Capital Management, came before the Board to present the City of Sarasota Firefighters' Pension Fund large cap value investment review; that the Portfolio is up 28.86% as of September 24, 2013 versus the benchmark that is up 21.53% for fiscal year to date. 6.2. SAWGRASS ASSET MANAGEMENILLC: Martin LaPrade, CFA, Partner, Equity Portfolio Manager of Sawgrass Asset Management, L.L.C., came before the Board to present the City Sarasota Firefighters' Pension Plan large cap growth investment review; that the Portfolio was at $16.8 million as. June 30, 2012; that as of June 30, 2013 the Portfolio is now at $19.6 million; that the Portfolio is up 12.5% for the fiscal year to date versus the benchmark at 10.3%. 7. APPROVAL RE: PROPOSED 2014 MEETING SCHEDULE: Discussion was held regarding the two proposed meeting schedules for next year. On a motion of'Trustee Joseph, and a second by Trustee Snow, it was moved to approve the meetings scheduled on the 4th Wednesday of the month at 9:00 a.m. with the exception of November and December due to the holidays. Motion passed unanimously. 8. ATTORNEY MATTERS: Attorney Sugarman commented regarding the County's obligation to contribute to the Firefighters' Pension Fund after all active members have retired; that based on the agreement between the County and the City the Pension Fund is considered a third party beneficiary; that the contract benefits the Fund because it provides payments to the Fund; that the contract could be enforced ifi it became necessary. Attorney Sugarman further stated that the obligation, according to the contract, is coextensive; that the obligation was established by the contract; that the obligation will stay in affect as long as the contract is in effect, unrelated to whether all members are retired; that the amount of the obligation is a complicated formula that he would defer to the actuary for an explanation. Attorney Sugarman stated that a member of the Fund, who retired in the year 2000, selected a benefit that paid his spouse at the time of death 2/3's ofl his benefit; that he has been remarried since the benefit selection in 2000; that the spouse at the time of death is the legal beneficiary ofthe benefit; that the first spouse would not be eligible for the benefit. 9. OTHER MATTERS: Pension Administrator Kelley stated the Trustee Joseph was elected to complete the unexpired term ofThomas Broom; that this term expires as of December 31, 2014; that a new election will be held for this seat. Secretary Nadalini invited all Trustees to the Florida Sunshine Law and Public Records Law training held at City Hall in the Commission Chambers on Friday, October 18, 2013 at 9:00 a.m. until 4:00 p.m. In response to Trustee Snow's question regarding whether the State money will be distributed this month, Pension Analyst Loeffler stated that the payment will be issued September 30, 2013. 3 September 25, 2013 Discussion was held regarding when to begin to discuss the rate of return with the pension professionals. Consensus was that the item will be placed on the December 4, 2013 agenda to discuss the rate of return with the consultant, Charlie Mulfinger, and the actuary, Brad Armstrong. 10. ADJOURN: The meeting was adjourned at 11:01 a.m. ShulomRabsum y) ladlo 1 AC Vice Chair Roberson Secretary/Treasurer Pamela Nadalini 4 September 25, 2013