MINUTES OF THE REGULAR MEETING OF THE FIREFIGHTERS PENSION BOARD SEPTEMBER 28, 2011 Present: Chair T. J. Broom, Vice-Chair Michael Hartley, SecretaryTreasurer Pamela Nadalini and Trustees Sheila Roberson and Scott Snow Absent: None Others Present: Mr. Charlie Mulfinger, Graystone Consulting, Attorney Robert Sugarman, Pension Plans Administrator Benita Saldutti, Pension Analyst Gail Loeffler, and Staff Member Diane Torres CALL THE MEETING TO ORDER Chair Broom called the meeting to order at 9:05 a.m. APPROVAL OF MINUTES OF THE MEETING OF AUGUST 24, 2011 On a motion of Trustee Snow and a second of Vice-Chairman Hartley, it was moved to approve the minutes of the regular meeting of August 24, 2011. Motion carried unanimously. RETIREMENT REQUEST: KEVIN DILLON, TED LANG, AND REVISED REQUEST OF RODRICK PAIGE Ms. Saldutti stated that Kevin Dillon requested to retire effective September 23, 2011, at 52 years of age, with 29.56 years of service, and has selected a partial lump sum option with a survivor benefit of two-thirds to his spouse. Ms. Saldutti stated that Ted Lang requested retirement effective September 23, 2011, at 51 year of age, with 29.66 years of service, and has selected a partial lump sum option with a survivor benefit of 100% to his spouse. Ms. Saldutti stated that the Board previously approved the retirement of Rodrick Paige effective September 23, 2011. She continued that Mr. Paige requested a change in his retirement option selection to leave two-thirds to his spouse as a survivor benefit. On a motion of Vice-Chairman Hartley and second of Trustee Roberson, it was moved to approve the retirement requests of Kevin Dillon and Ted Lang and the revised request of Rodrick Paige. Motion carried unanimously. INVESTMENT REVIEW Mr. Mulfinger presented the Investment Review for the second quarter ending June 30, 2011. He stated that the total portfolio is valued at $105,419,149. He continued that September 28, 2011 1 the total return of the portfolio increased 0.99% VS. the Policy Index at 0.88%. He continued that no changes are recommended at this time. Mr. Mulfinger stated that he would like to propose an increase from $32,500 to $42,500 for the fiscal year beginning October 1, 2011. Ms. Saldutti stated that the request should be in writing and will be on the next agenda for discussion. DISCUSSION RE: ASSUMED RATE OF RETURN AND MORTALITY TABLE FOR ACTUARIAL VALUATION Ms. Saldutti stated that the Plan is currently using a mortality table from the 1980s. She continued that the use the old table has been questioned by the State. Ms. Saldutti stated that the Actuary is recommending that the Board adopt the RP-2000 table, which is likely to increase the contribution by approximately by $77,000. On a motion of Secretary/Treasurer Nadalini and a second of Vice-Chairman Hartley, it was moved to approve the new mortality table. Motion carried unanimously. Ms. Saldutti stated that the Board needs to adopt an assumed rate of investment return. The Actuary has estimated that reducing the assumed rate of return from 8.0% to 7.5% will increase the funding requirement by approximately $1 million. She continued that the actuary advised that decreasing the actuarial assumed rate of return to 7.75% would cost approximately $500,000 to $550,000. On a motion of Secretary/Treasurer Nadalini and a second of Vice-Chairman Hartley, it was moved to reduce actuarial assumed rate for return from 8.0% to 7.75%. Motion carried unanimously. Attorney Sugarman questioned whether a change in allocation or managers would be necessary as a result of the reduced actuarial assumed rate of return. Mr. Mulfinger stated no. ATTORNEY'S REPORT Gift Policy Attorney Sugarman reviewed the City's conflict of interest and ethics policy and stated that any Trustee who is a City employee or married to a City employee may not accept a gift. He continued that other Trustees may accept a gift with a value between $25 and $100 as long as the gift is not intended to influence the Trustee on any issue that may come before the Board. Attorney Sugarman stated that a Trustee who does business with a client and receives a discount must obtain a letter indicating the discount is available to all pension members in addition to the Trustees. He continued that Trustees cannot call to ask an September 28, 2011 2 investment manager their opinion on a stock unless asked at a public meeting where any member of the pension plan would have the same opportunity.. Educational Opportunities Attorney Sugarman stated that the International Foundation of Employee Benefit Plans will be held in New Orleans at the end of October 2011. OTHER MATTERS Legislation Chair Broom questioned changes to sell back time due to the passage of new legislation. Attorney Sugarman stated that he can provide a model ordinance for consideration by the County and the members of the pension plan. Ms. Saldutti questioned the status of collective bargaining. Chair Broom stated that a contract has not been settled. Attorney Sugarman explained the application of the new State rules and the calculation of accrued leave for the pension benefit. Chair Broom questioned the effective date required for the ratification of an agreement by all parties. Attorney Sugarman stated that the ratification date of the agreement is the day the last party signs the new contract. Secretary/Treasurer Nadalini stated that a Joint City and County Commission Meeting has been scheduled for November 22, 2011 at 1:30 p.m. in the Think Tank located on the third floor of the County Administration Building at which time the cost for fire pensions may be discussed in addition to other items of discussion. Trustee Roberson requested that the City provide any information in advance of the scheduled meeting as it becomes available. Next Meeting The next regular meeting will be October 26, 2011, at 9:00 a.m. in the City Commission Chambers. ADJOURN The meeting was adjourned at 10:28 a.m. Chair T. J. Broom Secretary/Treasurer Nadalini September 28, 2011 3