MINUTES OF THE CITY OF SARASOTA POLICE OFFICERS' PENSION PLAN BOARD OF TRUSTEES MEMBERSHIP MEETING MARCH 26, 2021 Present: Vice Chair Johnathan Todd, Secretary/Treasurer Shayla Griggs, and Trustee Ronnie K. Baty. Others: Attorney Scott Christiansen, Pension Plans Administrator Debra Martin, and Pension Specialist Peter Gottlieb. Absent: Chair Demetri Konstantopoulos and Trustee Joseph "Jody" Hudgins. 1. CALL MEETING TO ORDER: Presenter(s): Vice Chair Todd. Vice Chair Todd called the meeting to order at 8:15 a.m. 2. PLEDGE OF CIVILITY: Presenter(s): Vice Chair Todd. Vice Chair Todd stated for the record, "We may disagree, but we will be respectful of one another. We will direct all comments to issues. We will not engage in personal attacks." 3. ROLL CALL: Presenter: Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin stated that Chair Konstantopoulos and Trustee Hudgins would request excused absences at the next meeting and called roll. Vice Chair Todd, Secretary/Treasurer Griggs, and Trustee Baty attended in person. Also in person were Attorney Christiansen, Pension Plans Administrator Martin, and Pension Specialist Gottlieb. 4. PUBLIC INPUT: None. 5. APPROVAL OF MINUTES: 5.1. Approval Re: Minutes of the Police Officers' Pension Plan Board of Trustees Regular Meeting of February 26, 2021. Presenter(s): Vice Chair Todd. Trustee Baty made a motion to accept the minutes of the February 26, 2021 meeting. Secretary/treasurer Griggs seconded the motion. The motion carried unanimously (3-0) Book 1 Page 218 03-26-2021 8:15 a.m. Book 1 Page 219 03-26-2021 8:15 a.m. 6. BOARD OF TRUSTEE REPORTS: 6.1. Presentation and Discussion Re: Highlights of Pension Activity for 2020. Presenter(s): Secretary/Treasurer Griggs. Secretary/Treasurer Griggs presented the Highlights of Pension Activity for 2020 as a synopsis of the Board's activities of 2020. She thanked the Board for its diligence and focus through the year. Attorney Christiansen advised the Board did not need to act on the report. 6.2. Presentation and Discussion Re: Treasurer's Report for the Period Ending September 30, 2020. Presenter(s): Secretary/Treasurer Griggs. Secretary/Treasurer Griggs presented the Treasurer's Report for the Period Ending September 30, 2020, and thanked Pension Administration staff for its contributions in producing the report. She stated that for thei fiscal year ending September 30, 2020, the net revenues were $23.5 million, the Plan had $270.6 million in investment assets, the funded ratio was 89.0%, and the average money-weighted rate of return for the fiscal year was 11.6%. There were 390 total participants in the Plan as of the fiscal year-end. Chair Baty asked how many people are currently participating in the DROP. Pension Plans Administrator Martin advised there are 17, including the retirement on today's agenda. 6.3. Presentation and Discussion Re: Annual Board Report for 2020. Presenter(s): Secretary/reasurer Griggs. Secretary/Treasurer: Griggs presented the Annual Board Report, advising it had been presented to the City Commission on its March 15th meeting, and is presented to the Board for its information. 6.4. Presentation and Discussion Re: Proposed Annual Budget for Fiscal Year 2021 - 22. Presenter(s): Secretary/reasurer Griggs. Secretary/Treasurer Griggs presented the Proposed Annual Budget for Fiscal Year 2021-2022 for administrative expenses, with a Grand Total of $254,722. Trustee Baty made a motion to accept the Proposed Annual Budget for Fiscal Year 2021-22; Secretary/Treasurer: Griggs seconded the motion. The motion carried unanimously (3-0) 7. RETIREMENT REQUESTS: 7.1. Approval Re: DROP Retirement Request of David Kennedy. Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin stated that Mr. Kennedy requests to enter the DROP as of January 1, 2021 at 53 years of age with 20.58 years of service; he elects the 100% to joint annuitant. Mr. Kennedy had applied prior to January 1, 2021 but had delays in submitting his executed election forms. Trustee Baty made a motion to accept Mr. Kennedy's retirement request. Secretary/Treasurer Griggs seconded the motion. The motion carried unanimously (3-0). 8. INVESTMENT PERFORMANCE REVIEW: None. 9. UNFINISHED BUSINESS: None. 10. NEW BUSINESS: None. 11. ATTORNEY MATTERS: 11.1. Presentation and Discussion Re: Christiansen & Dehner, Proposed Ordinance. Presenter(s): Scott Christiansen, Christiansen & Dehner. Attorney Christiansen stated this had been on the prior meeting's agenda but delayed presentation to the Board to incorporate additional Internal Revenue Service's (IRS's) requirements as well as clarify the definition of actuarial equivalence. The updates are related to the IRS's change to the minimum distribution date and age for retirement accounts; he added that this is frequently encountered in defined contribution plans, but not defined benefit plans. The ordinance also removes a DROP participant's ability to choose how to reinvest earnings on investments from their DROP proceeds as this option is extraordinarily difficult to administer and it has never been performed. Vice Chair Todd made a motion to approve the proposed ordinance as stated by Attomey Christiansen. Trustee Baty seconded the motion. The motion carried unanimously (3-0). Attorney Christiansen stated he would draft a letter to the City Manager explaining the purpose and details of the ordinance. 11.2. Presentation and Discussion Re: Christiansen & Dehner, Franklin Templeton Assignment and Assumption Agreement. Presenter(s): Scott Christiansen, Christiansen & Dehner. Attorney Christiansen explained Franklin Templeton is internally restructuring which will change the entity to which the Plan's account is assigned which necessitates the Assignment and Assumption Agreement; he reviewed the restructure with Investment Consultant Larry Cole who found no issues with it. He explained his amendments to Franklin Templeton's contract which were presented as a supplemental document provided ati the meeting. He further advised that he confirmed Franklin Templeton found no issue with his amendments to their contract. Trustee Baty made a motion to approve execution of the revised Assignment and Assumption Agreement as provided by Attorney Christiansen at the meeting. Secretary/Treasurer Griggs seconded the motion. The motion carried unanimously (3-0). Book 1 Page 220 03-26-2021 8:15 a.m. Book 1 Page 221 03-26-2021 8:15 a.m. Attorney Christiansen advised the Board that Senate Bill 758, which would require appointed public officials to receive 5 additional hours of training in fiduciary responsibility, has not been approved to date. He stated Senate Bill 1422 would add an infectious disease contracted during a declared period of medical emergency to the list of presumptive diseases in disability benefits; if a member demonstrates they are disabled due to a presumptive disease, the Plan may presume that member contracted that disease in the line of duty. The proposed legislation could also apply to Workers' Compensation; municipalities may oppose the legislation as it would increase costs associated with Workers' Compensation. To be eligible for disability benefits under the Plan, a member would still need to demonstrate their total and permanent disability, in addition to any other stated requirement. At Attorney Christiansen's request, Pension Plan Administrator Martin confirmed Pension Administration forwarded a letter to the State of Florida advising the Board declared a rate of investment return. The judge in the Van Gostein matter has not issued a determination regarding Mr. Van Gostein's motion for re-hearing. Should the judge deny Mr. Van Gostein's motion, Mr. Van Gostein would be afforded the right to appeal to the second district court. In the ConAgra securities matter, opposing counsel is appealing the judge's dismissal; a decision could take up to a year. Because this is a class action suit, this delay would not incur additional costs to the Plan. 12. OTHER MATTERS: 12.1. Presentation and Discussion: Administrative Expense Budget Analysis. Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin stated the Administrative Expense Budget Analysis is as of December 31, 2020, and not as of January 31, 2021 as indicated on the document. She apologized for the issue. 12.2. Presentation and Discussion Re: Pension Fund Check Register, October 1, 2020 to December 31, 2020. Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin stated the Check Register is being presented as payments are made via ACH. There were 3 DROP payments and 2 contribution refunds. The bottom 2 lines showing a payout and return was a case where a person was trying to roll funds into an account which would not accept ACH. Attorney Christiansen asked why two DROP payments were being sent to Mass Mutual; Pension Plans Administrator Martin explained the members participate in the City's 457 Plan which has 3 different investment firms, but that Mass Mutual is a popular option. 13. ADJORN. Vice Chair Todd noted the next meeting will be April 23, 2021 at 8:15a.m. in City Chambers and adjourned the meeting at 8:46 a.m. A 3 hela Chair Demetri Konstantopoutos Secretary/yfasurer Shaylal 6riggs