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08-28-1996 '-" ....., Edgewater Firefighters' Pension Fund Regular Meeting Wednesday, August 28, 1996 6:30 p.m. The Regular Meeting of the Edgewater Firefighters' Pension Fund was called to order on Wednesday, August 28, 1996 at 6:30 p.m. by Chairman Nancy Williams at the Fire Administration Office. Roll Call: Members present were: Mr. Bill Vola, Mr. Fred Munoz, Ms. Jill Landreville, Secretary Patricia Richards and Chairman Nancy Williams. Also present were Mr. Steve Burkhalter, Mr. Charlie Mulfinger from Smith Barney, and Recording Secretary Lisa R. Miller. Minutes: The Minutes for the May 7, 1996 Regular Meeting were presented for the Board's approval. Mr. Vola stated there was an error in the minutes. He stated there was a motion in which the Board was to send a letter to ICC Capital Management so that if there was a loss on an investment less than 25% that ICC should send a letter to the Board. The motion should read if there was a loss on an investment to exceed 25%. Mr. Vola moved to accept the Minutes of the May 7, 1996 as amended. Mr. Munoz seconded. Motion CARRIED 4-0. Investment Report: Mr. Burkhalter stated he had understood the motion as it was supposed to be at the last meeting and he had a copy of a letter that had been provided to that effect and as neither party had a signed copy of it that they should just do it again. It was noted that the letter should come from the Chairman and that there should be two signatures on the document as it is with all Board business. Mr. Burkhalter noted that the June 14 letter from Tallahassee item #6 under actuarial valuation reports where they were talking about investment return experiences averaging 3.9% annually for the five year period ending September 30, 1995. He believed that amount was not correct as was the 11.7% investment return. He believed the State must have been looking at was the market value of bonds and CD's which fluctuate where the Board was just buying them and holding them until maturity. He feels that the figures were skewed for that reason. Mr. Burkhalter stated he had ICC put together a for us to address another point. Mr. Mulfinger stated the State wanted to know what the last year's return was and what the next three years return would be. Mr. Mulfinger asked ICC to provide this information. ICC told him they could not predict the future but they could tell him the past. They ran the numbers for the last 20 years so the State could see their performance over a long period of time. Mr. Mulfinger stated the State was really asking now that the Board had changed managers, why does the Board think they can earn 8% when before they were only earning 3.9%. He added the reason was how well the managers have done in the past. There was discussion regarding investment earnings. Mr. Burkhalter stated the letter wasn't saying they did something wrong it was saying that the State was worried about the actuarial assumption. Mr. Mulfinger went over the investment results for the quarter and up to date. He stated that bonds went down, but the stocks went up and helped out. He went over the summary page. The total portfolio is $288,500. There was discussion regarding other investments strategies for the Board's portfolio. Mr. Mulfinger went over the report with the Board. It was noted under Tab 3 there was a $50 annual fee. Mr. Mulfinger stated he was not sure what it was for and if it was it was their annual fee he would get it waived. He stated the commission figure also did not look correct and that he would check into both the annual fee and the commission charge. The Board thanked Mr. Burkhalter and Mr. Mulfinger for their investment report and they left at this time. Old Business: There was discussion regarding the letter from the State about Ordinance 95-0-13. Mr. Munoz stated that some of the items should be addressed by the actuaries. It was noted that the Board needed to take care of #1. Copy of the actuarial impact statement signed by the plan administrator to be provided to the State. Mr. Vola stated the way he understood it was that the actuarial statement should have been done by the City before it undertook to change the plan instead of making the changes and then finding out what the impact would be. Chairman Williams stated she called the City Attorney after we received this letter and Krista said she was handling it. In #2 tax qualifications requirements were discussed and it was noted this should be addressed by the City Attorney. It was noted that #3 should addressed by the City Attorney. #4 addressed the problem of failing to satisfy the age discrimination and employment act as amended in 1990. It was noted this needs to be addressed by the City Attorney and then it may need to go before Attorney Sugarman. #5 addressed salary increase rate. Need to provide a statement from a city official about future salary planning disclosing the average annual expected salary increase. 1 ....,. """" Edgewater Firefighters' Pension Board Minutes 08/28/96 Pa~e 2 ThIS should be addressed by the City Manager. #6 was already addressed by the letter from ICe. #7 the Board needs to send a letter to the actuary stating they need to follow the guidelines set in the letter. #8 The Board needs to send a letter to the actuary to confirm they received the letter and they will follow the guidelines. Mr. Vola moved that items #1,2,3,4 and 5 be referred to the City Attorney with a request of a copy of the City Attorney's reply to the Board. The packet should include an originally signed actuarial statement in it, and an originally signed letter from ICC for #6. Items 7 & 8 are to send a request to Foster and Foster confirming that they will comply with those items listed by the State. Ms. Landreville seconded the motion. Motion CARRIED 5-0. There was a request that the City Attorney come to the next meeting to let the Board know where this items stands. There was discussion regarding the outstanding bill to Mr. Munoz from attending the pension seminar. Ms. Landreville moved to reimburse Mr. Munoz for $63.17 for remaining expenses due him. Mr. Vola seconded. Motion CARRIED 5-0. New Business: There was discussion regarding the bills presented by ICC Capital Management. Mr. Munoz moved to pay the ICC Capital Management bill in the amount of $248.39 and $75.21. Secretary Richards seconded. Motion CARRIED 5-0. There was discussion regarding a letter from one of the pension members asking the Board to look into the possibility of including the members existing medical benefits that are offered by the City at that time as part of their benefit package. There was discussion regarding this possibility. Mr. Munoz moved to authorize Mr. Vola to write a letter to Foster and Foster to get an estimate to see if it is feasible to include health benefits for retirees. Ms. Landreville seconded. Motion CARRIED 5 - O. There was discussion regarding a pension seminar in Orlando in October. Mr. Munoz moved to approve for any Board member to attend the free pension seminar in Orlando in October for 2 days. Mr. Vola seconded. Motion CARRIED 5 - O. There being no more business to come before the Board at this time, Mr. Munoz moved to adjourn. Secretary Richards seconded. Meeting adjourned at 8: 12 p.m. Minutes Respectfully Submitted By: Lisa R. Miller Recording Secretary 2