Lake Wales Police Officers Pension Board

LAKE WALES POLICE OFFICERS' RETIREMENT PLAN PENSION BOARD MEETING MINUTES September 25, 2018 - 1:00 P.M. 1. . Call to Order and Roll Call The meeting was called to order at 1:00 p.m. by the Chairman, Bill Raebig. The following members were present: David Black, Tony Elrod and Bob Plummer. Joe Elrod was excused. The following service providers were present: Steve Stack, Investment Manager; and Susy Pita, Plan Administrator. Pedro Herrera attended via conference call. 2. Experience Study - Foster & Foster Patrick Donlan reviewed the Experience Study that was requested by the Board. Following the review, and a very lengthy discussion, a motion was made by David Black to adopt the recommended withdrawal and salary assumptions and a 7.70% investment rate of return (with the goal of reducing that by 5 basis points each year for the next 5 years) and the Fresh Start UML. 'Seconded by Bob Plummer, the motion carried unanimously. The newly adopted assumptions will take effect with the 10/01/18 Actuarial Valuation Report. Additional discussion took place regarding a minimum funding requirement letter to the City that would require a 23% contribution each year. Following the discussion, a motion was made by Bill Raebig to authorize the Attorney to prepare a letter to the City detailing the request. Seconded by David Black, the motion carried unanimously. 3. Cost Study Analysis - Foster & Foster Patrick Donlan reviewed the Cost Study Analysis to determine the change in funding requirements resulting from certain proposed changes in the Plan: 1.Increase the $75,000 annual benefit cap to $80,000 for 2018 and increase it by 2% each year for 10 years to an ultimate cap of $97,520 for all future retirees (the cap is based on upon year of retirement and does not increase once retired.) 2. Increase the $75,000 annual benefit cap to $90,000 for all future retirees. 3. Provide that once the $75,000 annual benefit cap is reached on an individual basis, then that individual will be able to retire with no benefit reduction upon completion of 25 years of service, regardless of age. A lengthy discussion ensued and Patrick was directed to update the Cost Study Analysis to reflect the Experience Study assumptions just adopted by the Board (above) so that it can be passed on to the Union Representatives for negotiation purposes. 4. RFP Results - Investment Consultant The Plan Administrator reviewed the RFP summary spreadsheet with the Trustees. Following a lengthy review, it was the consensus of the Board to invite Burgess Chambers & Associates, Graystone Consulting, and Raymond James & Associates to a special meeting on October 22, 2018 for a presentation/interview. The Plan Administrator will contact them and coordinate the process. Additionally, the Plan Administrator was directed to reach out to Chris Rafool and ask for a breakdown in fees that would be charged by Raymond James & Associates for Consulting, Custody and, very specifically, Trust Services that they may be able to provide to the Board. s. RFP Results - Custody/Trust Services The Plan Administrator reviewed the RFP summary spreadsheet with the Trustees. Following a lengthy review, it was the consensus of the Board to invite Fifth Third Bank and Salem Trust Company to a special meeting on October 22, 2018 for a presentation/interview. The Plan Administrator will contact them and coordinate the process. Page 2 of 2 Lake Wales Police Officers' Pension Board September 25, 2018 Additionally, the Plan Administrator and the Attorney were directed to reach out to Wells Fargo to find out who has been assigned to the Investment Consulting role since Chris Rafool and Ron Snyder severed their ties with Wells Fargo. The Board also wants information regarding the fees that Wells Fargo would charge for only the Trust/benefit payments and retiree payments (including their tax reporting forms.) 6. Course of Action Regarding RFP's The Board of Trustees will conduct interviews of the respective applicants on Monday, October 22, 2018 beginning at 9:00 a.m. 7. Adjournment The meeting ended at 3:30 p.m.