Lake Wales Firefighters Pension Board

LAKE WALES FIREFIGHTERS' RETIREMENT PLAN PENSION BOARD MEETING MINUTES October 28, 2019 - 1:00 P.M. 1. Call to Order and Roll call The meeting was called to order at 1:05 p.m. by the Chairman, Roy Wilkinson. The following members were present: Dennis Childress, Brian Patterson, and Caleb Simpson. The following service providers were also present: Pedro Herrera, Attorney; Steve Stack, Investment Manager; Frank Wan, Investment Consultant; Patrick Donlan, Actuary; and Susy Pita, Plan Administrator. 2. Approval of Minutes A motion was made by Dennis Childress to approve the minutes from the regular meet ing held July 22, 2019. Seconded by Brian Patterson, t he motion carried unanimously. 3. Approval of Disbursements A motion was made by Brian Patterson to approve the disbursement report as presented. Seconded by Dennis Childress, the motion carried unanimously. 4. Investment Manager's Report Steve Stack presented the Highland capital portfolio results for the quarter ending September 30, 2019. Ending Market Value was $7,207,904 the annualized 5-year return was 6.25% . 5. Investment Consultant's Report Frank Wan, of Burgess Chambers & Associates, reviewed the consulting report for the quarter ending June 30, 2019. The asset allocation for the period at Market Value was: Domestic Equity - $4,805,867, I nternational Equity - $809,593, Real Estate - $819,377, Global Fixed Income - $2,527,475, and Global Cash - $56,872. Ending market value was $9,019,184. Frank t hen confirmed that the Plan does not have any investments with scrutinized companies and that they are also in compliance with PFIA. 6. Actuarial valuation Report as of October 1. 2019 Patrick Donaln presented the Actuarial Valuat ion Report as of October 1, 2019. Following the presentation and a lengthy discussion, a motion was made by Caleb Simpson to approve of the report as presented. Seconded by Dennis Childress, the motion carried unanimously. A discussion then took place regarding the annual Declaration of Returns letter. Following input from the investment professionals, attorney, and the Trustees, a motion was made by Dennis Childress to submit the annual letter to the Division of Retirement stating that the total expected annual rate of investment return for the fund for the next year, the next several years, and the long-term thereafter, shall be 7.75%, net of investment expenses. Seconded by Caleb Simpson, t he motion carried unanimously. 7. Attorney's Report Pedro Herrera provided his report throughout the meeting under the agenda items requiring his input. 8. Review of Drafted Ordinance Amending Plan Language Pedro Herrera reviewed the drafted Ordinance amending the Plan language regarding the members to leave their DROP funds with the Plan until age 59 ½ , allowing for the $75,000 salary cap, clarifying the Share Plan, adding the allowance of Investment Grade Bonds in the I nvestment Policy, and the new Cancer Presumption language. Following the review and some Page 2 of 2 Lake Wales Firefighters' Pension Board October 28. 2019 discussion, a motion was made by Brian Patterson to approve of the drafted Ordinance and to authorize the Actuary to prepare the letter of no impact for forwarding to the City for subsequent adoption. Seconded by Dennis Childress, the motion carried unanimously. 9. Old Business (a) Patrick Donlan discussed the retirement cap study with the Board. The fire Chief has met his cap and the City was notified to stop his employee pension contributions . Pedro, Patrick and the Plan Administrator will work together to prepare policies and procedures for this process and present them to the Trustees at an upcoming meeting. (b) At the last meeting t he Board agreed to allow Robert Revelo 90 days in which to repay his contributions from his prior employment with the Lake Wales fire Department. His 90 day period ended on October 20th • He has communicated with the Chairman and asked if he could get an extension on the time or simply pay back what he can afford to. Pedro opined that there is nothing in the Ordinance that would prevent him from making a partial payment. following a brief discussion, a motion was made Dennis Childress to extend the repayment date by 20 days, which takes him to November 18th , 2019 at which time he wi ll need to pay in full or pay what he can as there will be no further extensions of time. Seconded by Caleb Simpson, the motion carried unanimously. 10. New Business (a) The Plan Administrator reviewed the Annual Expense Report for the fiscal Year ending 09/30/19. A motion was made by Dennis Childress to approve t he proposed report as presented. Seconded by Caleb Simpson, the motion carried unanimously. T he Plan Admin istrator win see to the proper distribution. (b) The 2020 Meeting Schedule was reviewed and approved. 11. Public Comments There were none. 12. Next Meeting Date The next regular meeting will be on Monday, January 27, 2020 at 1:00 p.m. 13. Adjourn ment The meeting ended at 3:10 p.m.