MINUTES OF THE CITY OF SARASOTA POLICE OFFICERS' PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING OF JANUARY 26, 2018 Present: Chair Ron Baty, Secretary/Treasurer Pamela Nadalini, Trustee Demetri Konstantopoulos and Trustee Johnathan Todd Others: Attorney Lee Dehner, Senior Pension Analyst Anthony Ferrer and Pension Specialist Lois Belle Absent: Vice Chair Duncan Miller 1. CALL MEETING TO ORDER: Chair Baty called the meeting to order at 8:20 a.m. Board consensus to approve Change to the Order of the Day Memorandum 2. PLEDGE OF CIVILITY: Chair Baty read into the record a memorandum from Mayor Willie Charles Shaw, dated February 13, 2015, entitled "City Commission and Advisory Boards Meeting Protocols and Pledge of Civility." 3. PUBLIC INPUT: No one signed up to speak. 4. APPROVAL OF THE MINUTES: 4.1. Approval Re: Minutes of the Police Officers' Pension Plan Board of Trustees Regular Meeting of December 8, 2017 A motion was made by Trustee Todd and seconded by Trustee Konstantopoulos to approve the Minutes of the Police Officers' Pension Plan Board of Trustees Regular Meeting of December 8, 2017. Motion carried unanimously (4-0). 5. APPROVAL OF RETIREMENT REQUEST(S): 5.1. Approval Re: Deferred Retirement Option Plan (DROP) of Robert Resch (NOTE: Item added as a Change to the Order of the Day) Presenter(s): Senior Pension Analyst Ferrer Senior Pension Analyst presented the Deferred Retirement Option Plan of Robert Resch; that Mr. Resch is 50 years old; that he has 24.45 years of service; that he elected the 100% Joint and Survivor Annuity option. A motion was made by Trustee Konstantopoulos and seconded by Trustee Todd to approve the Deferred Retirement Option Plan of Robert Resch. Motion carried unanimously (4-0). Book 1 Page 91 1/26/18 8:15 a.m. Book 1 Page 92 1/26/18 8:15 a.m. 5.2. Approval Re: Deferred Retirement Option Plan (DROP) of James Rieser (NOTE: Item added as a Change to the Order of the Day) Presenter(s): Senior Pension Analyst Ferrer Senior Pension Analyst presented the Deferred Retirement Option Plan of James Rieser; that Mr. Rieser is 48 years old; that he has 25+ years of service; that he elected the 100% Joint and Survivor Annuity option. A motion was made by Trustee Todd and seconded by Trustee Konstantopoulos to approve the Deferred Retirement Option Plan of Robert Resch. Motion carried unanimously (4-0). 6. BOARD APPOINTMENTS: 6.1. Appointment Re: Re-appointment of Johnathan Todd Presenter(s): Secretary/reasurer Nadalini SecretaryTreasurer Nadalini presented for consideration the re-appointment of Johnathan Todd to the Police Officers' Pension Plan Board of Trustees; there was Board consensus for re-appointment. 7. INVESTMENT PERFORMANCE REVIEW: None 8. UNFINISHED BUSINESS: None 9. NEW BUSINESS: 9.1. Presentation and Discussion Re: Actuarial Valuation Report for Fiscal Year Ended September 30, 2017 Presenter(s): Mr. Pete Strong, FSA, EA, MAAA, FCA, Senior Consultant and Actuary, Gabriel, Roeder, Smith & Company Pete Strong, FSA, EA, MAAA, FCA, Senior Consultant and Actuary, Gabriel, Roeder, Smith & Company came to the dais and introduced himself. Mr. Strong presented the Actuarial Valuation Report as of September 30, 2017; that the recognized experience gain for the fiscal year was $2,214,696 causing a decrease in the total adjusted contribution requirement of 1.46% of covered payroll; that the decreased contribution rate is attributable to investment returns that were more favorable than expected and an increase in covered payroll; that the funded condition of the Plan is 82.0% compared to last year's 79.2%; that the plan has a healthy funded ratio. Mr. Strong discussed funding progress indicators and recommended an experience study be performed prior to the Actuarial Valuation Report for Fiscal Year Ended September 30, 2018; that an experience study entails taking all the data from past history and analyzing that data to come up with more realistic assumptions for the Plan; that the cost would be approximately $12,000; that an experience study should be done every five (5) to seven (7) years. Secretary/Treasurer: Nadalini was supportive of the recommendation and stated that the study it is part of due diligence. A motion was made by Secretary/Treasurer Nadalini and seconded by Trustee Todd to authorize Mr. Strong, as the Plan's actuary, to proceed with an experience study to review seven (7) years prior history. Motion carried unanimously (4-0). Mr. Strong stated that he will perform the experience study as authorized in the summer, prior to the next annual valuation report. SecretaryTreasurer Nadalini complimented Mr. Strong on a great report. In response to a question by SecrelaryTreasurer Nadalini asking if Mr. Strong would be filing the actuarial valuation report for the Plan electronically, Mr. Strong stated he would be filing the report with the State electronically however he recommended that the report also be submitted via mail to the State and posted on the City of Sarasota website. A motion was made by Secrelary/Treasurer Nadalini and seconded by Trustee Todd to accept the Actuarial Valuation Report for Fiscal Year Ended September 30, 2017 as presented. Motion carried unanimously (4-0). Attorney Dehner stated that Senate Bill 534 requires additional disclosure reporting and asked Mr. Strong whether he would be preparing that report to comply, Mr. Strong stated that he would be preparing and submitting the additional disclosure as required for the Plan. Attorney Dehner stated that the total expected rate of return needs to be filed with the State as well. A motion was made by Secretary/Treasurer Nadalini and seconded by Trustee Todd to declare the Fund expects a 7.0% Annual Rate of Return for the short-term, intermediate term, and long-term. Motion carried unanimously (4-0). 9.2. Presentation and Discussion Re: GASB No. 67 Plan Reporting and Accounting Schedules for Fiscal Year Ended September 30, 2017 Presenter(s): Mr. Pete Strong, FSA, EA, MAAA, FCA, Senior Consultant and Actuary, Gabriel, Roeder, Smith & Company Mr. Strong stated that the GASB No. 67 disclosure is a requirement for pension funds in preparation for the audited financials and more for informational purposes; that there is a slight increase in employer contributions and an increase in state contributions due to salary increases. There were no questions from the Board regarding the GASB No. 67 disclosure and the Board thanked Mr. Strong for his presentations. 9. ATTORNEY MATTERS: Attorney Dehner stated that there is one bill to watch in the legislative session in March 2018; that Senate Bill 980 has the potential to require additional work for the Plan. 10. OTHER MATTERS: SecretaryTreasurer Nadalini stated that Mauldin & Jenkins should be presenting the audited financials at the Police Officers' Pension Plan Board of Trustee regular meeting of February 23, 2018. Secretary/Treasurer Nadalini announced that her office has received one (1) application for the position on the Police Officers' Pension Plan Board requiring appointment by the City Commission; that her office will continue to advertise the vacancy for a couple of months. Book 1 Page 93 1/26/18 8:15 a.m. Book 1 Page 94 1/26/18 8:15 a.m. 11. ADJOURN. Chair Baty adjourned the Police Officers' Pension Board of Trustees Regular meeting at 9:10 a.m. ME RO 00y - Chair Baty Secretary/Treasurer Nadalini