MINUTES OF THE MEETING OF THE GENERAL EMPLOYEES PENSION BOARD, JUNE 20, 2011 Present: Chair Mike Taylor, Vice-chair Cheri Potts, Treasurer Christopher Lyons, and Trustees Barry Keeler, Susan Kosko, and Gretchen Schneider Absent: Secretary Pamela Nadalini Others Present: Attorney Scott Christiansen, Pension Plans Administrator Benita Saldutti, Pension Analyst Gail Loeffler, and Staff Member Diane Torres CALL TO ORDER Chair Taylor called the meeting to order at 8:30 a.m. APPROVAL OF THE MINUTES OF MAY 16, 2011 By consensus of the Board, the minutes of May 16, 2011, were approved. APPROVAL: TRUSTEE ELECTIONS RESULT Ms. Saldutti stated that the nomination of Cheri Potts was the only nomination received, therefore, the full balloting process was not necessary. On a motion of Treasurer Lyons and a second of Trustee Kosko, it was moved to approve the election of Cheri Potts. Motion passed unanimously. APPROVAL: EARLY TERMINATION BENEFIT FOR NADINE GARBER, DROP REQUEST FOR JOSE SANCHEZ Ms. Saldutti stated that Nadine Garber was a General Employee from October 9, 1987 through April 22, 1997, at which time she became a Sarasota Police Officer and froze her General Employee Pension benefit. Ms. Garber has elected to begin drawing her benefit from the General Employees' Pension Plan as she is now retired from the Sarasota Police Department. Ms. Garber has elected the 10 years and life option, effective June 1, 2011. Ms. Saldutti stated that Jose Sanchez, 55 years, 5 months of age, with 30 years of service is requesting DROP retirement with 15 years and Life option, effective August 1, 2011. On a motion of Trustee Kosko and a second of Vice Chair Potts, it was moved to approve the early termination benefit for Nadine Garber and the DROP retirement requests for Jose Sanchez. Motion passed unanimously. June 20, 2011 1 DISCUSSION: PROCUREMENT PROCESS Ms. Saldutti stated that the Purchasing Manager has questioned the reason the contract for Charles Mulfinger did not follow the City's purchasing regulations. She requested that Attorney Christiansen address whether the Pension Board is subject to the same procurement regulations as the City. Attorney Christiansen stated that he did not conduct a full research of the issue. He stated that provisions in State Statutes for hiring professional consultants do not apply in the Board's situation. Chair Taylor noted Board consensus to direct Attorney Christiansen to provide a full report as to whether the General Employees' Pension Board must follow the City's purchasing regulations. Attorney Christiansen stated that the full report will be provided at the August meeting as he will not be in attendance at the July 18, 2011, General Employees' Pension Board meeting. DISCUSSION: GIFT LAW Attorney Christiansen reviewed Florida Statute 112.313(4), which pertains to the standard of conduct for public officers and employees. He stated that it is best to be conservative in the interpretation of the law and recommended Trustees not to accept any gifts. OTHER MATTERS Pension Presentation Trustee Schneider questioned whether the General Employees' Pension Plan is to discussed at the June 20, 2011, Regular Commission meeting. Ms. Saldutti stated that Robert Tuttle, President of Teamsters is scheduled to make a presentation concerning the pension plan, however, public input will not be allowed. Legislative Update Attorney Christiansen stated that the State Legislature passed SB 1128. He stated that the law prohibits more than 300 hours of overtime annually and lump sum payments of accrued leave time from counting in the Final Average Compensation for calculating pension benefits. He continued that the effective date is the date a collective bargaining agreement is signed by all parties. He clarified that the limitations of overtime and accrued lump sums applies to service after the effective date and does not impact time already earned. June 20, 2011 2 Annual Financial Disclosure Attorney Christiansen stated that the annual financial disclosure forms are due July 1, 2011. Unfunded Actuarial Accrued Liability Treasurer Lyons gave a presentation concerning the City's unfunded actuarial accrued liability. He stated that the City's actuarial accrued liability is under funded by $30.58 million compared to it being over funded by $15.22 million in 1997. He continued that the problem began 13 years ago and not since the economic downturn in 2007. Treasurer Lyons stated that the real rate of investment return is the primary reason for the unfunded actuarial accrued liability. Next Meeting The next regular meeting will be on July 18, 2011, in the City Commission Chambers. ADJOURN The meeting was adjourned at 9:24 a.m. Michael Taylor, Chair Pamela Nadalini, Secretary June 20, 2011 3