Board Members Present:

Ryan LaRowe, Chair- ABSENT

Mike Fuller, Secretary- ABSENT

Jim Freeman

Robert Rotondo

Richard Wilson

 

Staff and Others Present:

Mindy Johnson, Salem Trust

John Thinnes, & Co Consulting

Scott Christiansen, Board Attorney

Penny Johnston, Executive Assistant

 

Mr. Freeman called the meeting to order at 11:01 a.m.

 

 

 

1.  AGENDA APPROVAL

Mindy Johnson with Salem Trust requested to be added to the agenda as item 5A.

 

Motion:           Mr. Freeman moved, Mr. Wilson seconded, and the motion carried 3-0 to approve the November 25, 2019 Police Officers’ Pension Board agenda.

 

2.  PUBLIC COMMENT

   none

 

3.  APPROVAL OF MINUTES                                                                                                        

  

Motion:           Mr. Rotondo moved, Mr. Wilson seconded, and the motion carried 3-0 to approve the August 26, 2019 minutes as provided.

 

   4.  APPROVAL OF EXPENSES                                                                                                        

A)  Christiansen and Dehner: Invoices Dated August, September, and October 2019

B)  FMIT Dated 9/5/2019

C) Florida Public Pension Trustees Association Winter School Registration M. Fuller

D) Mike Fuller Per Diem FPPTA Winter Trustee School

E) Foster & Foster Invoice #15237

F) Sawgrass Marriott Golf Resort and Spa Hotel Stay M. Fuller

G)  City of Palmetto J. Freeman FPPTA Winter Trustee School Registration, Per Diem, and Hotel

H) Salem Trust For Quarter Ending 9/30/2019

I) AndCo Consulting Fees Quarter ending September 2019

J) Anchor Capital July 2019 to September 2019

 

Motion:           Mr. Wilson moved, Mr. Rotondo seconded, and the motion carried 3-0 to ratify the paid expenses as presented.

 

5. FY2019 POLICE PENSION ACTUAL EXPENSES                                                                  

   Legislative requirement to compare budgeted and actual expenses.  Mr. Freeman requested the report show the Budget as well as the Actual expenses in future reports.

 

Motion:           Mr. Rotondo moved, Mr. Wilson seconded, and the motion carried 3-0 to adopt the fiscal year 2019 actual expenses for the City of Palmetto Police Pension Plan.

 

  5A- Mindy Johnson- Salem Trust

Ms. Johnson submitted Trust Service Report and Summary Prospectus which were made a part of these minutes.  On April 1, 2019 Salem Trust was purchased by TMI Holding.  March 1, 2020 they will begin to use TMI offices to handle all trades and settlement delivery operations. The City has been with Salem Trust since 1998.

 

    6.  INVESTMENT REVIEW                                                                                                  

John Thinnes, & Co., presented the end of quarter investment review.  The Portfolio was valued at an all-time high of $13,654,470 and is currently over $14 million. Mr. Thinnes explained their firm charges a flat fee of .65% for their investment program.

 

Primecap Odyssey Growth Fund down 10.70%, &Co continues to watch this manager.  They are also watching Templeton, down 7%.  &Co is focused on income generation and real estate.  Total fund contributions were $651,769 but we had $806,720 in distributions leaving an ending balance $13,654,470.

 

   Mr. Freeman asked about real estate valuation.  Mr. Thinnes opined retail assets, such as malls just had 25% repricing.  Warehouses/ Industrial Spaces are popular right now.

 

   7. SUMMARY PLAN DESCRIPTION                                                                                              

Attorney Christiansen discussed the Summary Plan Description. Mr. Christiansen pointed out the changes on the two-year update, including page 1, paragraph 3 adding wording after “it is your responsibility” indicating the employee needs to provide advanced notice to the Plan before retiring.

   Mr. Christiansen talked about cross credit accrued to include time invested in General Employee Plans and the Police plan for vesting and retirement purposes.  However, years in General Plan do not count in the Police benefit calculation.

  Each plan member is allowed two free actuary studies, but any additional requests would be paid by the employee.  Mr. Christiansen reviewed the remaining changes.

 

  Motion:   Mr. Rotondo moved, Mr. Freeman seconded, and the motion carried 3-0 to approve the Summary Plan Description with one change for the IRS limitation of the maximum pension benefit to be increased to $230,000. 

 

8.  BENEFITS DISBURSEMENT APPROVAL                                                                             

   A.  Drop Participant

·         None

B.  Separated Non Vested Employees

·         None

C.  Separated Vested Employees

·         None

D.  Retired Employees

·         None.

E.  Deceased Retirees

·         None

F.  Deceased Active Employee Payout

·         None

 

Motion:           Mr. Freeman concluded no action was necessary.

 

   9.  NEW MEMBER ACKNOWLEDGEMENT (Informational Only)                                    

·         None

 

   10.  ATTORNEY CHRISTIANSEN’S REPORT

Cyber Insurance Memo-  ask Mrs. LaRowe to distribute to Board.

Documents- ask Mrs. LaRowe to provide to the newest member, Robert Rotondo.

Disability Hearing- Mr. Freeman stated he has received medical documents for upcoming hearing.

 

   11.  PLAN ADMINISTRATOR’S REPORT                                                                                      

No member of the Police Department put their name in for Trustee against Mr. Ryan LaRowe, therefore, Mr. LaRowe is appointed for another two-year term.

 

Michael Fuller is the 5^th Trustee for the Board and is appointed by the Board, ratified by the City Commission. His term expires 1/1/2020.

 

Motion:           Mr. Wilson moved, Mr. Rotondo seconded, and the motion passed 3-0 to elect Mike Fuller as the 5^th Trustee for the Police Officers’ Pension Board of Trustees for a two-year term to expire January 1, 2022.

 

Mr. Freeman’s term expires 1/1/2020; his appointment will be at the next City Commission meeting for another two-year term to expire 1/1/2022.

 

  The election of Chair and Secretary will be made at the February Trustees meeting.

 

December 2, 2019 at 1:30 p.m. the Disability Hearing will occur in these Chambers.

   Mr. Rotondo had questions about pension plan documents received.

 

   Mr. Freeman adjourned the meeting at 11:54 a.m.