Lake Wales Firefighters Pension Board

City of Lake Wales Firefighters’ Plan and Trust Fund October 26, 2020 MINUTES Members Present Also Present Absent/Excused Roy Wilkinson - Chairman Pedro Herrera – Attorney Caleb Simpson – Trustee Frank Wan – Consultant Brian Patterson - Secretary Caleb Hynson – Administrator Frank Mega – Administrator Steve Stack – Highland Capital Patrick Donlen – Foster & Foster I. Call To Order & Roll Call Meeting called to order at 1:07 p.m. by Chairman Wilkinson. A quorum was in attendance. II. Open Forum No members or concerned parties requested to address the Board of Trustees. III. Minutes /Accounting Report Minutes offered for Board consideration. A motion was made by Brian Patterson to approve the minutes as presented; the motion was seconded by Caleb Simpson and passed unanimously. FYTD 2021 Accounting Report offered for Board consideration. A motion was made by Brian Patterson to approve FYTD 2021 accounting report as presented; the motion was seconded by Caleb Simpson and passed unanimously. IV. New Business Annual Account Report - FY 2020 Annual Accounting Report offered for Board consideration. A motion was made by Robert Plummer to approve the FY 2020 Annual Accounting Report as presented; the motion was seconded by Thomas McKeon and passed unanimously. Plan Administrator – reviewed additional required forms for Board sign off. Included State required RMLO (Records Management Liaison Officer) designation and Custodial Signature Authorization Form. V. Old Business Ordinance Update Continued discussion on Maximum Allowable Contribution Amendment drafted for submission ($75,000 or 3%). Open discussion continued what protocols to follow in How to Limit, How to Track, How to Correct. The Board of Trustees discussed a potential proposal from the City of Lake Wales offering its public safety employees a defined contribution plan option for firefighter plan members who have reached their benefit cap, but who have not yet attained normal retirement eligibility. Further discussion to include City HR for any corrections and tracking. Tabled until future meeting. Page 1 of 2  Open discussion on options for members in drop, upon exit, to leave drop funds in until 59 ½. Will need to update fiscal impact statement and discuss DROP option payouts / rollover at future meeting.  ACTION ITEM: Attorney to draft letter for No Opinion for 401a option after cap on member contributions.  ACTION ITEM: Plan Administrator to reach out to Foster & Foster to discuss fee to manage DROP until age 59 ½.  ACTION ITEM: Plan Administrator to supply forms for alternative DROP payments. VI. Investment Manager Report Steve Stack presented Highland Capital Report for quarter ending Q3. The third quarter of 2020 saw the market post a solid return even after suffering the worst September in a decade. The quarterly return for the fund was (+)4.79 % vs a benchmark of (+)4.05%. Fund beginning quarterly balance of $7,009,069 and ending quarter with $7,305,827. Fiscal YTD return (+)2.26%. Growth stocks continue to outperform Value - historically uncommon. Current fund has 15.3% in Growth and 37.1% in Value. Current amendment to make plan change held up in City Council for review. VII. Consultant Report Frank Wan from Burgess Chambers & Associates provided an overview of the Trust. The Trust began the quarter at $8,834,166 and ending balance of $9,227,673, a (+)4.5% return. Fiscal YTD return was (+)2.5%. For the quarter, the Trust earned $403,180. The top performers were Fidelity large-cap growth (+13.3%) and Highland large-cap growth (+12.7%). The fund finished the Fiscal Year in line with the IPS. VIII. Attorney Report Form 1 – Board reminded of annual Form 1 Disclosure Forms due by July 1st. Trustees must submit Supervisor of Elections in the county where you reside to avoid penalty. Attorney spoke on Executive Order on Public Meetings order has not been extended to meet virtually past Nov 1,2020.  ACTION ITEM: Plan Administrator and Attorney will update Board accordingly. IX. Adjournment/Next Meeting A motion to adjourn was made adjourn meeting by Chairman Wilkinson. The next regularly scheduled meeting is January 25, 2021 at 1pm. DISABILITY INFORMATION: In accordance with the Americans with Disabilities Act and F.S.S. 286.26, persons with disabilities needing special accommodation to participate in this meeting should contact HYN Consulting, Plan Administrator, within 48 hours subsequent to the proceeding at 727- 559-7333 for assistance. If hearing impaired, call the Florida Relay Service Numbers at 800-955-8771 (TDD) or 800-955-8770 (VOICE) for assistance. APPEAL NOTICE: If a person decides to appeal any decision made by the Board, with respect to any matter considered at such meeting or hearing, that person will need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which appeal is to be based. Page 2 of 2