MINUTES OF THE MARCH 23, 2016 CITY OF SARASOTA FIREFIGHTERS PENSION PLAN BOARD OF TRUSTEES MEMBERSHIP MEETING Present: Chair Michael Hartley, Vice Chair Shelia Roberson, Secretary/Treasurer Pamela Nadalini, and Trustees Charles Joseph and Scott Snow Others: Attorney Pedro Herrera, Pension Plans Administrator Harry Ramphal, Senior Pension Analyst Anthony Ferrer, and Pension Specialist Chinyere Deehan Absent: None 1. CALL THE MEETING TO ORDER: Chair Hartley called the meeting to order at 9:02 a.m. 2. PLEDGE OF CIVILITY: Chair Hartley stated that he did not feel that it was necessary to 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" and suggested instead a once-a-year reminder of the memorandum going forward; that he does not feel the need for the memorandum to be placed on every meeting Agenda and read into the record. Secretary/Treasurer Nadalini stated that Mayor Shaw requested that each Advisory Board read the memorandum into the record as per the City Commission and proceeded to read into the record the "City Commission and Advisory Board Meeting Protocols and Pledge of Civility." In response to a question from Chair Hartley asking if members of the Board wanted to continue reading the "City Commission and Advisory Board Meeting Protocols and Pledge of Civility" at every meeting, Trustee Joseph agreed that it should be read into the record at every meeting as requested by Mayor Shaw. Vice Chair Roberson requested clarification of the request to read the memorandum at each meeting, and SecretarylTreasurer Nadalini advised that clarification would be sought from Mayor Shaw regarding the request. 3. PUBLICI INPUT: None 4. APPROVAL OF MINUTES: 4.1. Approval Re: Minutes of the Firefighters' Pension Board Regular Meeting of February 24, 2016 Trustee Joseph stated that the minutes of the February 24, 2016, City of Sarasota Firefighters' Pension Plan Board of Trustees Regular Meeting, under Unfinished Business, Agenda Item 5, Item No. 3, Presentation and Discussion Re: Preliminary 2015 Draft Results concerning Mortality Table, Assumptions, and Amortization Period(s) for the September 30, 2015 Actuarial Valuation, the statement made by Brad Armstrong, Actuary, Gabriel, Roeder, Smith & Company, should be corrected from that there was enough information to estimate the 2015 actuarial" to read "that there was not enough information to estimate the 2015 actuarial results. n A motion was made by Trustee Snow, seconded by Trustee Joseph, to approve the minutes of the February 24, 2016, City of Sarasota Firefighters' Pension Plan Board of Trustees Regular Meeting, with the noted correction. Motion carried unanimously (5-0). Book 1 Page 15 03/23/16 9:00 A.M. Book 1 Page 16 03/23/16 9:00 A.M. 5. BOARD OF TRUSTEES REPORTIS): 5.1. Presentation and Discussion Re: Attendance Report Secretary/Treasurer: Nadalini presented the Attendance Report for 2015 to Board members'. 5.2. Presentation and Discussion Re: Treasurer's Report Secretary/Treasurer: Nadalini stated that the Treasurer's Report will be postponed until the Audit Report is completed and reported to the Board. 5.3. Presentation and Discussion Re: Highlights of Pension Activity for 2015 Chair Hartley discussed the highlights of pension activity pertaining to Pension Administration as well as the roles and responsibilities of the Pension Administration Division and its accomplishments over the past year. Pension Plans Administrator Ramphal provided the Board with a detailed overview of the amount of payroll which is administered by Pension staff. 6. UNFINISHED BUSINESS: 6.1. Presentation and Discussion Re: GASB 68 Engagement Letter by Mauldin and Jenkins Pension Plans Administrator Ramphal stated that the Governmental Accounting Standards Board (GASB) Statement Number 68 Engagement Letter has been signed by representatives of both Sarasota County and the City of Sarasota; that the auditors are finalizing the Audit Report, which is expected by the end of April 2016. 6.2. Continued Discussion Re: Retiree Benefit Plan Payments Pension Plans Administrator Ramphal stated that under the Pension Protection Act of 2006, retired Public Safety Officers (PSO) are eligible to receive a tax deduction for health care costs; that while there has been an attempt by Pension Administration to accommodate the retired PSOs, ADP, the Pension Administration third party payroll provider, has advised that it is unable to transmit third party insurance payments to multiple vendors; that the Pension Administration is open to exploring other options in order to accommodate the retired PSOs. Ernest Cave, retired City of Sarasota Firefighter and President of the Retired Firefighters' Association, and Edward Whitehead, retired City of Sarasota Police Officer, came before the Board and gave an overview of the healthcare payment request. Mr. Cave stated that he believes that the Florida Retirement System provides a method for retirees to redirect part of their pension checks for healthcare benefits, in order to maintain the tax deduction; that if ADP is unwilling to make this change, then changing payroll companies should be considered. In response to a question by Chair Hartley asking how difficult would it be to change payroll companies, Attorney Herrera stated that his other public safety clients who benefit from this tax deduction have their benefits paid through a custodial bank; that the bank has no issue with administering the payment to the healthcare provider; another option would be for benefit payments to be made directly through the City of Sarasota rather than a payroll company. Secretary/Treasurer Nadalini stated that this option can be explored with the City's Payroll Division; that the City's payroll personnel and representatives from ADP can be invited to a Board meeting to discuss potential options. 6.3. Continued Discussion Re: Trustee Education & Travel Expenses Policy Statement Pension Plans Administrator Ramphal stated that the Trustee Education and Travel Expenses Policy statement was reviewed and comments were added for the Attorney to review, and Attorney Herrera stated that based on the Trustees' participation on the Board, when Trustees are traveling for Plan reasons, the expenses incurred are separate from both the City of Sarasota and Sarasota County travel policy, regardless of whether the Trustee is a City of Sarasota or Sarasota County employee; that from à legal standpoint the Trustee Education & Travel Expenses Policy Statement is correct. In response to a question from Secretary/Treasurer Nadalini asking if it is prudent to add a statement providing for a Trustee traveling on pension-related business to the Policy for clarity, Attorney Herrera stated that a statement could be added if necessary. Secretary/Treasurer: Nadalini reiterated about the segregation of duties between Pension staff and the Trustees, and requested that the Trustees forward any comments that they have regarding the Trustee Education & Travel Expenses Policy Statement, and Attorney Herrera stated that all comments should be sent to Pension Plans Administrator Ramphal to incorporate with Secretary/Treasurer Nadalini's document for discussion at the next meeting. 6.4. Continued Discussion Re: Third Party Administration Chair Hartley stated that he agrees with Trustee Joseph with regards to giving the new Pension Administration Staff time to adjust to policies and procedures. Trustee Joseph stated that his previous comments stand; that Staff is still learning and as issues arise, Staff works hard to resolve them. Secretary/Treasurer Nadalini stated that she appreciates Trustee Joseph's comments; that Pension Administration staff is understaffed and overworked; that she is supportive of staff, who are wholeheartedly committed to the retirees, the City of Sarasota, the Boards and the employees. Trustee Snow stated that he appreciates staff going above and beyond for the retirees the last eight weeks which has been great in terms of his dealings with the Pension staff. Chair Hartley stated that he sees the level of experience increasing with the staff over the last few weeks and appreciates the professionalism of the staff when the Pension Administration office is visited. 7. QUESTIONS FROM MEMBERSHIP: Ernest Cave, retired City of Sarasota firefighter, came before the Board to discuss the share check distribution for the post-2003 retired firefighters. In response to a question from Mr. Cave asking when the 2015 share checks will be distributed, Pension Plans Administrator Ramphal stated that the checks will be distributed approximately at the end of April. Brad Armstrong, Actuary, Gabriel, Roeder, Smith & Company, came before the Board and discussed the distribution of the share checks. Michael Regnier, Fire Chief, City of Sarasota, came before the Board to discuss the revision on the Governmental Accounting Standards Board Statement Number 67 report and the Actuarial Report. Book 1 Page 17 03/23/16 9:00 A.M. Book 1 Page 18 03/23/16 9:00. A.M. 8. NEW BUSINESS: 8.1. Presentation and Discussion Re: Revised GASB 67 Plan Reporting and Accounting Schedules as of September 30, 2014 - Prepared by Gabriel Roeder Smith & Company Brad Armstrong, Actuary, Gabriel, Roeder, Smith & Company, came before the Board and stated that the Governmental Accounting Standards Board (GASB) Statement Number 68 Report was revised, splitting the reporting liability between the City of Sarasota and Sarasota County and the report is still under review. In response to a question by Secretary/Treasurer Nadalini regarding the Board allowing Mauldin and Jenkins LLC to work on the GASB 68 Report as a courtesy to the City of Sarasota and Sarasota County and Gabriel Roeder Smith & Company's involvement with the GASB 68 Report, Mr. Armstrong stated that Gabriel Roeder Smith & Company are not involved in revising the GASB 68 Report. Discussion ensued regarding the revision of the GASB 68 report. 8.2. Presentation and Discussion Re: Impact Statement and Actuarial Cost Estimate for the City of Sarasota Firefighters' Pension Fund members - Prepared by Gabriel Roeder Smith & Company Brad Armstrong, Actuary, Gabriel, Roeder, Smith & Company, came before the Board to discuss the Impact Statement and Actuarial Cost Estimate for the City of Sarasota Firefighters' Pension Fund Members drafted by Gabriel, Roeder, Smith & Company, and briefly provided details of the content and the Share Plan which was established for the pre-2003 retirees, and stated that his projections show t nothing will change for the pre-2003 retirees; that their Share Plan amounts have a limit of $781,422. Chair Hartley left the Chambers at 10:52 a.m. and returned at 10:55 a.m. Trustee Joseph left the Chambers at 10:55 a.m. and returned at 11:00 a.m. Vice Chair Roberson left the Chambers at 11:01 a.m. and returned at 11:08 a.m. 8.3. Presentation and Discussion Re: Actuarial Confirmation Use of State Money Prepared by Gabriel Roeder Smith & Company Brad Armstrong, Gabriel, Roeder, Smith & Company, came before the Board to discuss the Actuarial Confirmation Use of State Money, and stated that the State requires proof that the Firefighters' Pension Plan is a valid Chapter 175 Plan; that the contributions needed to fund the Plan are greater than what the State is providing to the Plan. In response to a question by Secretary/Treasurer Nadalini regarding the Actuarial Confirmation Use of State Money and if action needs to be taken, Mr. Armstrong stated that no action is required. Attorney Herrera requested Pension Plans Administrator Ramphal place the adoption of the Valuation Report as an Agenda item for the next Board meeting. Chair Hartley on behalf of the Board thanked Mr. Armstrong for all of his work regarding the Chapter 175 Plan. Attorney Herrera stated that a motion is necessary for approving the GASB 67 Report. A motion was made by Secretary/Treasurer Nadalini, seconded by Vice Chair Roberson, to approve the Governmental Accounting Standards Board (GASB) Statement Number 67 Report as prepared by Gabriel Roeder Smith & Company. Motion carried unanimously (5-0). 9. ATTORNEY MATTERS: 9.1. Presentation and Discussion Re: IRS Proposed Regulation relating to Normal Retirement Age Attorney Herrera stated that the Pension Administration was contacted by a post 2003 retirees, who had questions regarding the Share Plan distribution; that the Ordinance clearly states that Share Plan participants will receive a distribution as of September 30" of each year, however he does not believe that it was the intent of the Collective Bargaining Agreement between the City of Sarasota, Sarasota County, and the Firefighters' Union for a vested, terminated Plan member to receive a share distribution; that some language may have been inadvertently omitted. Attorney Herrera continued that his firm is researching the issue to figure out if an error was made with the language, and recommends that pension benefits should continue to be processed but to hold off on the share distribution until more information is received. Attorney Herrera stated that a memorandum was sent out regarding proposed Internal Revenue Service (IRS) Regulations in respect to setting a normal retirement age; that he does not expect the regulation would have an effect on the pension plan. Attorney Herrera briefly discussed the Division of Retirement School which will be commencing soon for trustees who wish to attend. 10. OTHER MATTERS: Secretary/Treasurer: Nadalini reminded the Board members to file their financial disclosures by July 1, 2016. 11. ADJOURN: Chair Hartey adjouyned the Firefighters' Pensions Board of Trustees Membership Meeting at 12:02 p.m. Tual C Chair Michael Hartley Secretary/Treasurer Pamela M. Nadalini Book 1 Page 19 03/23/16 9:00 A.M.