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HomeMy WebLinkAbout09-17-2019 AgendaHOME OF PELICAN ISLAND PUBLIC NOTICE - POLICE PENSION BOARD MEETING September 17,2019 The Police Pension Board will bold a regular quarter meeting Wednesday, September 17, 2019 at 10:00 a.m. in the City Council Chambers, City Hall, 1225 Main St., Sebastian, Florida. AGENDA 1. CALL TO ORDER 2. ROLL CALL 1 VOTE TO EXCUSE ABSENT BOARD MEMBER(S) 4. APPROVAL OF MINUTES: A. May 29,2019 Special Meeting on Carlin Parker Disability B, May 29,2019 Regular Meeting A. Approval of Payments: a. Salem Trust - April/June b. Highland Capital - April/Rme Fixed Income c. Highland Capital - April/June Equities d. Boston Partners - April/June e. Fiera Capital - December f. Fiera Capital - January/March g. Fiera Capital - April/June h. Renaissance - April/June i. Brookfield Public Securities Group - April/June j. Graystone Consulting - April/June k, Klausner, Kaufman, Jensen & Levinson - November 1. Klausner, Kaufman, Jensen & Levinson - May ni. Klausner, Kaufman, Jensen & Levinson - June/Parker n. Klausner, Kaufman, Jensen & Levinson - August o. Foster & Foster - Preparation of State Annual Report p. Foster & Foster - Work on State Disclosures/Parker q. City of Sebastian - Minutes Preparation for May r. City of Sebastian - July/September B. Review of Expense Analysis Received from Salem Trust C. Presentation of Experience Study Performed by the Actuary D. Report on Results of Manager Search for Alternative Investments E. Information on Divorcing Members/Spouses Alimony Tax Rules F. 20 18- 19 Budget/Actual Expenses and Proposed Budget Adjustment G. Initial Election to Use Deferred Retirement Option Plan (DROP) 11, Full Execution of MilitaryTime Buy-back Contract 7, NEW BUSINESS $ 5,145.00 $2,862.71 $9,300,68 $ 1,717.07 $ 1,270,83 $ 1,51233 S 1,588.48 $ 1,740.59 $ 808-24 $3,375.00 S 467.50 $3,692.50 $ 1,360.00 S 127.50 $ 3,000.00 $ 3,700.00 $ 198,00 S6,000.00 A. Notification on Charles Mulfinger's Retirement from Morgan Stanley B. Report from Investment Monitor C. Report from Investment Managers - Highland Capital D. Vote on Approval of Proposed 2019-20 Budget E. Scheduled Quarterly Meetings Set for Calendar Year 2020 Chairperson Chairperson Chairperson Chairperson Ken Killgore, Plan Administrator Ken Killgore, Plan Administrator Doug Lozen, Foster & Foster Scott Owens, Morgan Stanley Bonni S. Jensen, Board Attorney Ken Killgore, Plan Administrator Ken Killgore, Plan Administrator Ken Killgore, Plan Administrator Chairperson Ken Killgore, Plan Administrator Scott Owens, Morgan Stanley Grant McMurray, Highland Capital Ken Killgore, Plan Administrator Ken Killgore, Plan Administrator F. Legal Updates - Ktausner, Kaufman, Jensen & Levinson a. Recommendation on Cyber Liability Insurance b. Status on Update of the Summary Plan Description c. Other Legal Matters 8. BOARD MEMBER REPORTS AND COMMENTS 9, PLAN ADMINISTRATOR REPORTS AND COMMENTS a. TMITrust Company Acquisition of Salem Trust Company b. 2018 Comparative Analysis of Other Plans c. Review of Annual Calendar of Board Activities d. Other Administrative Matters 10. NEXT SCHEDULED QUARTERLY MEETING: a. December 10, 2019 Bonni S. Jensen, Board Attorney Chairperson Ken Killgore, Plan Administrator Chairperson Please note: In accordance with Florida Statue 286,0105: any person who desires to appeal any decision at this meeting will need a record of the proceedings and for this purpose may need to ensure that a verbatim record or the proceedings is made which includes the testimony and evidence upon which the appeal is based. In accordance with Florida Statute 2S6.26: Persons with disabilities needing assistance to participate in any of these proceedings should contact the Administrative Services Department at 1225 Main Street, Sebastian, Florida 32958, or telephone 772-38S-8205. AY 291, 2019 Call to Order -- Chairman Jason Gillette called the meeting to order at 10:03 a.m. Present Board Members: Jason Gillette Randy Moyer Paul Williamson Tim Wood Absent Christine Vicars -- Excused 04, 01, i! API, !o % Also Present Bonni Jensen, Klausner, Kaufman, Jensen & Levinson, Attorney for thle Board of Trustees Ken Killgore, Plan Administrator Cynthia Watson, Human Resources Manager Janet Graham, Technical Writer Ill. Initial Hearing on Disability Application from Mr. Carlin Parker Ms. Jensen described the purpose of this hearing and stated that the application has been, processed, and Mr. Parker has been seen by the independent medical examiner (IME). Ms. Jensen stated that Mr. Parker was injured while he was motorcycle training during hiis employment for the City. The motorcycle dropped to the ground, and he struck his left hip. His handcuff case was on that hip. He underwent treatment and received' a hip replacement in April of 2017. He returned to light -duty work in June of 2017. From November of 2017 to January of 2018 he was on medical leave due to the hip injury. From January 2018 to May 2018 he was on light duty. In May 2018 he received a second hip replacement due to the mechanism loosening of his internal left hip prosthesis to joint. He was then again returned' to light duty on July 6, 2018. The City of Sebastian received notice in November 2018 that he had a permanent impairment rating of 6%t, the body part being 14%. According to the City's physician's MMI, he could no longer perform the duties of a police officer. Mr. Parker was termiinated by the City due to his medical injury. I'Ia �, POLICE PENSION BOARD PAGE 2 MINUTES OF SPECIAL MEETING OF MAY 29,2019 Ms. Jensen stated case law determines basically that, since the City has determined that he is disabled from performing his functions as a police officer, the Board is basically bound by that determination. The IME doctor further concludes that he is unable to perform his functions as a police officer. There is some indication that the doctor would like him to go to see a physiatrist, who is a doctor who can tie work tojob responsibilities but indicates that Mr. Parker caninot perform the functions of a police officer, The Board's duty under the State statute and the City's ordinance is to determine whether he is able and capable of performing the functions of a police officer. The City has terminated him, and Ms. Jensen is not aware of whether the City made any reasonable accommodation for his disability at the time that he was terminated' from, his employment. The IME doctor has indicated some level of capability to perform some functions which are not heavy physical activity. A police officer's duties are considered heavy physical activity. As part of the cloctor's report, he completed a questionnaire, and' that questionnaire states that the doctor cannot determine whether there is a reasonable accommodation and recommended Mir. Parker see a physiatrist. Ms. Jensen stated that this case is ready for a decision by the Pension Board as to whether they recommend the granting of disability or whether they require further information by having a physiatrist examine Mr. Parker. The physiatrist's job would be to determine whether Mr. Parker could perform duties other than as a police officer, Officer Gillette called for questions or comments from the Board', Mr. Williamson asked for some clarification, and Ms. Jensen further elucidated what the duties of the Board are regarding the case. Officer Gillette asked whether it is the opinion of the IME doctor that Mr. Parker is permanently disabled', and Ms. Jensen said that is his opinion. Mr. Moyer asked if there is anything else the Board should consider. Ms. Jensen said Mr, Parker is present, and he can answer any questions the Board may have. Mr. Parker came up to the microphone. Mr. Williamson inquired of Mr. Parker if he had had any problems with this hip before the injury that is the subject of this hearing. Mr. Parker stated he had not. He then described in detail how the accident occurred. CITY OF SEBASTIAN POLICE PENSION BOARD MINUTES OF REGULAR QUARTERLY MEETINI MAY 29, 2019 1 Call to Order -- Chairman Jason Gillette called the meeting to order at 10:18 a.m. II. Roll Call Present Board Members: Jason Gillette Randy Moyer gum Paul Williamson Tim Wood Absent Christine Vicars -- Excused Also Present Bonni Jensen, Klausner, Kaufman, Jensen & Levinson, Attorney for the Board of Trustees Ken Killgore, Plan Administrator Cynthia Watson, Human Resources Manager Theodore Loew, Morgan Stanley (via telephone connection) Steve Stack, Highland Capital Mindy Johnson, Salem Trust Janet Graham, Technical Writer 111, Vote to Excuse Absent Board Member Motion to excuse absentee was made by Mr. Gillette and seconded by Mr. Moyer. Motion carried unanimously by voice vote. IV. Approval of Minutes -- Regular Meeting of March 12, 2019 Chairman Gillette asked if there were any changes or corrections to the Minutes of March 12, 2019. Mr. Wood noted that in those Minutes where the name of Garland Parker appears, that should be Carlin Parker. Motion to accept the Minutes of the meeting with that correction was made by Chairman Gillette and seconded by Mr. Moyer. Motion carried unanimously by voice vote. V. Old Business POLICE PENSION BOARD PAGE 2 MINUTES OF REGULAR MEETING OF MAY 29,2019 A. Approval of Payments 1. Brookfield Public Securities Group $ 802.15 2. Klausner, Kaufman, Jensen & Levinson — March:/April 7,093.69 3. Graystone Consulting— January to March 3,375.00 4. City of Sebastian — April/May/June 6,000.00 Motion to approve the payments as listed above was made by Mr. Williamson, seconded, by Mr. Moyer, and passed unanimously by voice vote. VI, Public Input -- None VII, New Business 11:0 jp�' A. Report from Investment Monitor (via Telephone Connection) Theodore Loew, Morgan Stanley Mr. Loew began his report by talking about what has occurred regarding investments during the first quarter. He reviewed that the 4th quarter of 2018 was one of the worst quarters since 2011. Coming out of that was the best January that's been seen in years and one of the best quarters. So there was a strong rebound. During the 4th quarter there was a lot of uncertainty about the tariffs, what the Fed would do going forward, etc. A few of these concerns have been resolved, including the Federal Reserve who said they would pause before increasing interest rates. There were strong growth numbers in the first quarter, with GDP coming in at 3.2%, stronger than what was expected. Trade tension still remains unresolved, which created market volatility going into the second quarter.He reviewed the US Equity Market Returns, There have been strong economic returns even with the volatile fourth quarter. Large -cap equities continue to outperform small -cap equities. Growth stocks continue to Lead the market. All sectors were positive for the first quarter. There have been negative returns in the international markets. There continue to be positive returns in the fixed - income markets. Interest rates have continued to decline. Other countries have lower interest rates than the US, so there is a demand for US investment products. The highest returns are on the long-term investments. Regarding the pension portfolio, the total portfolio is $15,243,163.00 with a total gain net of fees of $1,292.209.00 or 9.21 % return — a very strong return to start the year. It was slightly underweight total equity of 63.7% versus the target of 65%. Regarding cash, our POLICE PENSION BOARD PAGE 3 MINUTES OF REGULAR MEETING OF MAY 29,2019 target was zero, but we are at 3.06%, so we are slightly overweight with cash. There is no need to rebalance, as we are in range for all of our managers. So there is no action needed to be taken from an asset -allocation standpoint. Regarding the individual managers and total performance, Highland Capital still has a strong return, although a little bit behind the index. There is still seen outperformance long term of 6.81% versus 5.94% on the index. Stock selection was the reason for underperformance, and that was due to health care. The plan still has downside protection which helps over the long term to outperform. On the growth side, performance for the quarter is up 14.68% versus the benchmark at 16.1%. This was due to sector selections and an overweight of health care. Regarding the next two managers, Boston Partners and Fiera Capital, those two managers are paired together, one being a little bit more volatile than the other. Boston Partners mid! -cap value — they are more volatile. They were up 13.72%, the index being up 13.12%, Boston Partners will continue to be monitored. Fiera Capital was up 19. 17% for the quarter outperforming the 18.99% benchmark. Highland International slightly underperformed for all time periods. For the quarter, they were up 7.97% versus the index of 9,98%. The Renaissance International manager outperformed for the quarter, up 11.0% versus a 10.31 % benchmark. On fixed income, Highland has done very well for all time period's measured', up 2.97% versus 2,94%. Regarding the alternative managers, Center Coast was up 19.73% for the quarter. Intercontinental private real estate outperformed for all periods, up 1.98% versus 1 .8%. The plan was negative 1.72% at the end of March, so the plan has not recovered fully from the fourth quarter of 2018. Market volatility has picked up since then as well. He stated that since the changes were made in reallocating funds, there have been mixed results. Active managers have started to outperform over the last six to eight months, and it is hoped that will continue going forward. Decision has been made to move away from fixed income and diversify out, adding two alternative investments. He asked if there we're any questions from the Board'. Hearing none, he stated that they will work on getting the updated materials and will bring research materials to the next meeting. POLICE PENSION BOARD PAGE 4 MINUTES OF REGULAR MEETING OF MAY 29,2019 B. Report from Investment Managers — Highland Capital Mr. Stack then spoke regarding Highland Capital, He stated that Mr. Loew covered a lot of the same information that he planned' to present. He pointed out that the first quarter was the best quarter since 2009. He also mentioned that health care has started to rebound, so that is helping. For this quarter, both growth and value are outperforming on the negative, side of the market, which means the plan is protected on the downside, and that's what they're trying to accomplish, They are comfortable with the way the portfolio is structured, but they are being defensive in the portfolios. He does not expect a big increase in housing due to the fear of the trade wars, tariffs, etc. He described the conditions in the international markets and how they affect the US market. He asked for questions from the Board. M'r. Williamson, inquired whether Highland does their own research. Mr, Stack stated the products he described are all researched internally. They also have outside research that they subscribe to. He went on to give a brief description of how they do their research. C. Declaration of Intent to Utilize Deferred Retirement Option Plan (DROV Mr. Killgore called the Board's attention to a document from Deputy Chief Gregory Witt, which is in the Agenda packet, declaring his intention to enter the DROP on October 27, 2019. M's, Jensen explained that once his benefit is calculated, he would make a selection, and the Board would approve his entry into the DROP at that time, Mr. Killgore said he would target the September 17 1h meeting to present the Board with the actual calculations and ask the Board for approval of the entry into the plan. Deputy Chief Witt will be the first participant in the DROP plan. Ms. Jensen said that 1.3% per annum is the fixed rate of return that is credited to the member's account. D. Application/Contract to Buy Back Military Service Mr. Killgore described that this procedure is also the initial application to this Board. Officer Eric Antosia has made arrangements to obtain the money that the actuary calculated in order to buy back three of the four years that are available under the plan. Ms. Jensen's office has supplied the City with a contract agreement that Mr. Antosia will have to execute. The amount Mr. Antosia will need is $52,749.00 in order to enter into the plan, payable in one lump sum within six months of his request. She stated that money will go into the pension plan. She also explained the guidelines for this program. POLICE PENSION BOARD PAGE 5 MINUTES OF REGULAR MEETING OF MAY 29,2019 Mr, Killgore asked for a motion on accepting this Declaration. A motion to approve the Application/Contract to buy back military service was made by Mr. Williamson, seconded by Mr. Moyer, and passed unanimously by voice vote. E. Legal Updates — Klausner, Kaufman, Jensen & Levinson — Bonni S. Jensen 1. House Bill 265 on Disclosures (Withdrawn) Ms. Jensen reported that this bill, which would have required a lot of work on the administrative side, did not pass. She reminded the Board members that the rules governing ADA compliance are still in effect for the five documents that the Board still has to file, and she is learning more about that, which she will share with the Board. She suggested that going forward the contractors that we do business with should be asked to help make sure that we are in ADA compliance. 4h, 2. Changes in Tax Rules for Alimony Ms. Jensen stated the Pension Board can be subject to paying alimony for members through an income -withholding order. Because of the substantial change in the, way alimony is treated for tax purposes, we should make sure that participants are aware of that. For divorces that are entered into after January 1, 20119, members, have to pay the taxes themselves. So that alters the amount that a member would pay in alimony, because the payer of the alimony would be paying the taxes on the alimony. She suggested that a packet be prepared that can be given to members who are entering into a divorce. It would have information about we as a governmental pension plan are not subject to qualified domestic relations orders. Actually, this pension plan has a provision in it that, if we have to go to court and challenge the order because they are not following our rules, they are required to pay our attorney fees that it costs to get that put into place. Letting them know all of that information, we can give them a sample order. There is a way that's been developed where members can split their pensions for purposes of either alimony or equitable distribution: of their pension that doesn't involve the Pension Board at all; the two divorcing parties can work it out. Her firm will prepare the sample order and send it to the Board for review at the next meeting. Mr. Moyer asked if that rule is retroactive., Ms. Jensen said it can be retroactive if the parties agree to it. 3. Statement of Financial Interest Annual Form 1 Ms. Jensen reminded the Board that it is the time of year that the Board' members must POLICE PENSI'ON BOARD MINUTES OF REGULAR MEETING OF MAY 29,2019 file their Form 1 s. If the form Is are not timely filed, penalties begin to accrue September 1 st. But the forms themselves are due on July 1 st. She recommends that the form be filed in a manner by which you can prove that it has been filed, such as Certified Mail, FedEx, UPS, etc. The form itself indicates that it can be filed via email. Last year, there were many places where it could be filed via email, and there was an immediate response from the Supervisor of Elections. She has heard that that is not necessarily the case this year, as some of the supervisors are refusing to accept it via email. She has a sample form in the agenda packet for anyone who has not yet received his/her form. They can also be obtained online, 4. Tax Treatment of Duty -Related Disability Pensions Ms. Jensen stated, in general, disability payments that are in the nature or workers compensation are not subject to tax. It is paid according to a schedule. Also regarding this subject, the Board has, to make the determination that the disability occurred in the line of duty. It is still her recommendation that boards of trustees do not make the determination of whether something is or is not taxable, and that you continue to mark the box, "Taxable Not Now Determined" for people who are entitled to disability. The issue is then between, the individual and the IRS. Copies of the minutes where the decision was made and copies of the order can be provided when desired. This issue has been complicated in Florida, as the State of Florida has just passed a presumption for firefighters, and there are 21 cancers that are presumed to have occurred in the line of duty. 5,. Other Legal Matters Ms. Jensen stated she had nothing further, but she informed the Board that her firm is having their conference on June 10-12, 2019 in Fort Lauderdale, and the Board members are invited to attend. Anyone wishing to go can go to Klausner, Kaufman's website and register. Vill. Board Member Reports and Comments. -- None IX. Plan Administrator Reports and Comments. 1. Update on 2018-2019 Budget/Actual Expenses Mr. Killgore reviewed the budget and actual expense sheet that is included in the Agenda packet, which covers payments disbursed over this fiscal year. He pointed out that the POLICE PENSION BOARD PAGE 7 MINUTES OF REGULAR MEETING OF MAY 29,2019 legal fees are higher because of the disabilities and other activities, which are already over budget. Also, the functional capacity assessments were budgeted at $1,350.00, and the actual amount was $2,700.00. Other than those two items, everything else is in line. There is a contingency fund of $15,000.00, and he suggested that can be used to cover a!'* these unexpected costs. # 2, Review of Annual Calendar of Board Activities Mr. Killgore stated that the summary plan description is a work in process, and that will be presented to the Board, as well as the financial disclosure form, which will also be provided to the Board. 3. Notice of Change in Ownership of Salem Trust Mindy Johnson, representing Salem Trust, reviewed the change of ownership. Salem was bought by TMI Trust, which is looked upon in a positive light by Salem. She stated' that TMI services their clients the same as Salem does and has the same types of clients. It has been confirmed' that they will' not be going through a systems conversion.She added that from an operating standpoint, there will be very little change seen. She reviewed the quarterly service report. Ms. Johnson was asked to provide an analysis of the impact of the addition of all the separately managed accounts. She provided an in-depth, review of how their fees are calculated, the rise in fees having occurred due to the addition of the new managers, Mr. Williamson asked if Salem/TMI makes block trades. He also inquired if there is a program to get the costs of all the trades down. Ms. Johnson stated she would run this plan through some models to see what a basis -point plan would look like to help cover the additional costs. She will also research the subject of block trades. Mr. Gillette asked for some clarification on the history of how this change to several managers occurred, which has resulted in significantly higher operating costs, Ms. Jensen gave some additional information on how this change occurred and the dates involved. She stated this is being monitored for comparison, but it will take some more time to clearly define the impact on the account. Ms. Johnson stated she would delve into the matter and will send her findings to Mr. Killgore. 10, Scheduled QuarterIv Meetinas September 17, 2019 December 10, 2019 POLICE PENSION BOARD MINUTES OF REGULAR MEETING OF MAY 29,2019 11. Adiourn Chairman Gillette called for any further business adjourned at 11:33 a,m, so ro ffAXeJW.1 Hearing none, the meeting was ity of Sebastian Debbie Krueger 1225 Main Street Sebastian, FL 32958 pun Fee Advice for Period Detail of Calculation: Flat Fee $500 for 6 additional accounts April 11, 2019 $5.00 Security Transactions Current Period 9130/2018 903 12/31/2018, 10911 3/31/2019 910 6/30/2019 629 (300 included in annual fee) July 3, 2019 M05348 Sebastian Police to June 30, 2019 Annual Fee Quarterly Fee $5,000.00 $1,250.00 $3,000.00 $750.00 Year To Date 903 $5.00 1994 2904 3533 $3,145.00 Total $5,145.00 Total Amount Due $5,145.00 These fees will automatically be charged to your account. If you have any questions, please contact Mindy Johnson at 813.288,4990 HOLLYWOOD TAMPA 1715 N. WESTSHORE BIND., SUFFE 750 TAMP, FL 33607 TEI- (877) 392-5268 FAX (813)301-1295 idand Capital MANAGEMENT, LLC July 5, 2019 Invoice Number: 21284 MANAGEMENT FEE: SEBASTIAN POLICE OFFICERS'RETIREMENT FIXED INCOME 6/30/2019 Portfolio Value: $ 3,816,943,90 Quarterly Fee Based On: $ 3,816,944 @ 0,30% per annum. $2,862,71 Quarterly Fee: $2,862.71 For the Period 4/1/2019 through 6/30/2019 Wiring Instructions: First Tennessee Bank ABA# 084000026 Acct# 22-0001278809 For Credit to: Highland Capital Management, LLC. *""Note new checking account nuniber******* Paid by Debit Direct ($0.00) Please Remit $ 2,86171 Mailing Cheek: Highland Capital Management, LLC 6075 Poplar Ave, Suite 703 Memphis, TN 38119 ie��-ilemd Capita MANAGEMENT, LLC July 5, 2019 MANAGEMENTFEE: 6/30/2019 Portfolio Value: Exclude Dividend Accrual Billable Value Invoice Number: 21285 SEBASTIAN POLICE OFFICERS'RETIREMENT Quarterly Fee Based Ow $ 7,440,546 @ 0.50% per annum Quarterly Fee: For the Period 4/1/2019 through 6/30/2019 A(MIT 0 L-1 It (sebast0l) SEBASTIAN POLICE- OFFICERS'RETIREMENT VALUE (sebastB) SEBASTIAN POLICE OFFICER&RUTtREMENT GROWTI I (sebasd4) SEBASTIAN POLICL'OFFtCFr<S'RETIREMFNI'ADR Total Wiring Instructions: First Tennessee Bank ABA# 084000026 Acct# 22-0001278809 For Credit to, Highland Capital Management, LLC. $9,300.68 $ 7,444,254. 18 - 3,707.96 $ 7,440,546.22 $ 9,300,68 Paid by Debit Direct ($0,00) Please Remit $ 9,300.68 Mailing Check: AccoutiL Value OUarterIv Fee $ 3,488,31737 $ 4,360.39 $ 3,212,1 [034 $4,015,14 $ 740,117.71 $925,15 $ 7,440,54622 $9,300.68 Highland Capital Management, LLC 6075 Poplar Ave, Suite 703 Memphis, TN 38119 4 5 C7K err. - ote new checking account number-******* p`/ en, Killgore City of Sebastian 1225 Main Street Sebastian, FIL 32958 11M IT, ? - =�- , =1 4771 1; =!WIrIIr:IIIIII 111 Ill III I ----- ----- 991, Ink WER 1�11li�� ii! QUARTEREND Fee Envoice City of Sebastian Police Officers' Retirement 20190630-690,-A System H910 Current Period Due 30-60 Days 60-90 Days Over 90 Days Total 1,717.07 1,717.07 (Total Amount Due 1,717.07 1,717,07 Pilease contact James Vitelli directly at 212-908-0149 with any Willing inquiries. As always, you may also direct any questions to your Relationship Manager. WIRE / TRANSFER FUNDS TO: JP Morgan Chase; ABA #021000021; ACCT #066-654610 REFERENCE: Boston Partners Ref Acrt #: 00844 L4AIL REMMANCES TO: Accounts Receivable Boston Partners, One Grand Central Place, 60 East 42nd Street, Suite 1550 New York, NY 10165 Email jvitelli@boston-partners.com Thank You Period Rule - Cu(USD) City of Sebastian Police Officers' Retirement System - 00844 Monthly Values 0313112010 Market Value 04/30/2019 Market Value 05131/2019 Market Value 0613012019 Market Value Adjusted Input Annual Fee Schedule (lMFEE - USD)l 0.00 to 25,000,000,01 and above Quarterly Fee Calculation (IMFEE - USD) 6,86,826.99 * 100,00 BPS TotaG IMFEE (00844) Fee Total: UT "71 672,120.63 707,487.02 650,440.19 702,553.75 25,000,000-00 . 90 1 360 Schedule Total: 672,120,63 707,487,02 650,440.19 702,55175 $ 686,826.99 100,00 BPS 80.00 BPS 1,717.07 $1,717.07 1,717.07 $1,717.07 Fee Total For IMFEE: 1,717.07 Total Amount Due: $1,717.07 1311201.8 Ken Killgore 1225 Main Street Sebastian, FL 32958 City of Sebastian Police Officer's Retirement System - 3040002573 FIERA CAPITAL INC. SUMMARY OF MANAGEMENT FEES . . .. .. .......... For The Period 12/1/2018 - 12/31/2018 Portfolio Value as of 12-31-18 $ 677,774.88 677,775 @ 035 No per annum 1,270.83 Quarterly Management Fee 1,270.83 Prorated Contributions/Withdrawals From 10-01-18 Through 12-31-18 0 @ 0.75 % per annum on 12-20-18 0.00 0 @ 0.75 % per annum on 12-21-18 0,00 Total Adjustments for Contributions/Withdrawals $ 0.00 TOTAL DUE AND PAYABLE $ 1,270.83 , 2� pp,J As per SEC Rule 206(4)-2, we urge you to compare this report with your custodian statements. It is the client's responsibility to verify the accuracy of the computation. The custodian will not do an independent verification of the accuracy of the computation of fees. ACH Instructions: To pay by check: CM Private Bank Payable to Fiera Capital Inc. I Court Square, 22nd Floor Attn: Myron Charas Long Island City, NY 11220 10050 Innovation Or, Suite 120 Routing #: 021000089 Dayton, OH 45342 Acct. #: 4974013748 Account Name: Billing inquiries should be directed to: Fiera Capital Inc, Myron Charas and Bill ingFCI@fieracapital.com 937-388-1437 12312019 Ken Killgore 1225 Main Street Sebastian, FL 32958 City of Sebastian Police Officer's Retirement Systern - 3040002573 FIERA CAPITAL INC. SUMMARY OF MANAGEMENT FEES For The Period 1/1/2019 - 3/31/2019 Portfolio Value as of 03-31-19 $ 806,574.40 806,574 @ 0.75 % per annurn Quarterly Management Fee TOTAL DUE AND PAYABLE 1,512,33 $ 1,512.33 $ 1,512.33 As per SEC Rule 206(4)-2, we urge you to compare this report with your custodian statements, It is the client's responsibility to verify the accuracy of the computation. The custodian will not do an independent verification of the accuracy of the computation of fees. ACH Instructions: To pay by check: Citi Private Bank Payable to Fiera Capital Inc. 1 Court Square, 22nd Floor Attn: Myron Charas Long Island City, NY 11120, 10050 Innovation Dr, Suite 120 Routing #: 02100,0089 Dayton, OH 45342 Acct. #: 4974013748 Account Name: Billing inquiries should be directed to: Fiera Capital Inc. Myron Charas and BillingFCI@fieracapital.com 937-388-1437 uly 29, 2019 Ken Killgore 1225 Main Street Sebastian, FL 32958 City of Sebastian Police Officer's Retirement System - 3040002573 FIERA CAPITAL INC., SUMMARY OF MANAGEMENT FEES For The Period April I thru June 30, 2019 Portfolio Value as of 06-30-19 847,189 @ 0.75 % per annum Quarterly Management Fee $ 847,189,13 1,588.48 1,588.48 As per SEC Rule 206(4)-2, we urge you to compare this report with your custodian statements. It is the client's responsibility to verify the accuracy of the computation. The custodian will not do an independent verification of the accuracy of the computation of fees. ACH Instructions: To pay by check: Citi Private Bank Payable to Fiera Capital Inc. I Court Square, 22nd Floor Attn: Myron Charas Long Island City, NY 11120 10050 Innovation Dr, Suite 120 Routing #: 021000089 Dayton, OH 45342 Acct. if: 4974013748 Account Name: Billing inquiries should be directed to: Hera Capital Inc, Myron Charas and Billin,gFCI@fieracapitai.com 937-388-1437 mLenaissance" Investment Mamagement Mir. Kelincth W. Killgom Adinhilsti-ative Set -vices Director City ofsehastian 1225 Main Sti-eet Sebastian, FL 32958 Billing Period. FROM 04/01/2019 TO 06/30/2019 Custodian Account No - Account 9: IE0496 - City of Sebastian Police Officers Iketil-cillent Systeln Portfolio Value . , . ....... ....................... Aniount Due, PAYABLE UPON RECEIPT ........................ FEE CALCULATION '(Flate X Portfolio Voluo) x (if of days in quarter I # of dayo I" year) Rate AnDfled: FQr Assets Under Mall.qcLe Am a-unt %le 0.6500 % On the remainder: 1,074,073 1,740.59 Total Fee; 1,740.59 July 02, 2019 $1,074,072.54 Pleasc Mllllarc 015 NQ bill FITI)DIT11 by Our Drut to your custodial accomu swemenj for any d1wrquincim Minor varlotlool may occur because of reporting dares, ucerunl molwls of InIervil and drOdurlds, nerdollicr rodurs, Your cusindfill stn(vnient Is the official, record oryour Account. tryou pro not reeviving slutomco(s From ),our custodian of enst quattorly, it there have been all), clolnges In your financial sbrutflan, inlIcsimelil objectives„ or If Yaw wish 10 Inkiniq or modify imy reasonlible res(ricliturs on Ilre r na nagmcnf of your account, plensc no I Ify R In ry Meiners jit 513-723-4554 or ulcer Ce)rein av,coal, Return this section with your fee to the address below or in (fie enclosed envelope: RENAISSANCE INVESTMEN'r MANAGEMENT 3551 Solutions (,,enter #773551 Chicago, IL 60677-3005 V Acet: IE0496 r; Custodian Account No: 5 0 HA S T It I V E 11 C L N T E R H 0 U L E VA It D - S tJ f 'r F 1 2go C 0 V I N G T 0 N , K V 4 1 0 1 1 - 800.A37.3863 - 5 1 3.723,4 J0,i) . FAX 5 13,723 .4 5 12 ity of Sebastian Police Officers Retirement System 3040002617 1225 Main Street Sebastian, FL 32958 . � ., ,, �„ .,,,,„ ,,�,,. ,i I r u ', n�lu o" r "ri,a r„� �„r^ 'ry ll�apmrWlrry1, ,rxr� iN eY 'm•u„�,I�Ir a in^Y, r iu��N�ml nxr i Yr,i, udl,�u put. I,"iul NY�rIIINu ih 11 i ''" "I'� IIIId';„',`r, Yb'"�': J,1'xlryvVtl�, IV"fiRV,,,lla'441 L,;,, � 6,J�d1Y„ rV .•„V Id it ;,IM !n„ r v IILIII V.w�ou, i� I.r. .,PIS' �P .," ,W .,,(I,IP;, a Vlo,ll' ;i, YI:II„ fIY, V,YI,dI Iluil ''•I. u,Y w ,• 6 „��, or mrxPV II v,) e I�il, ul',;1 l I!li �'�ll'li pill ,Ili Po�l�;fn I JIJ II rr'^IN IA' Ip it tlIp�ClC�lr �I,j4`, d IItl I��.i„ � I. VN �i� I „Y• I. �� I r .���,�, i �'Po II l,� i „I �d�l�ln r 1�, i�. i ,,,�. „dl,uVu,rvI... vl lgli lulVl Vm,+,�I.yNdlll N�,�, �(p i� .,u"W,,,,t�r,VY,���,h�w I�itl', �, Iu 'rl, I�li� II�� Y��,�,i, I, •��,,I,,, I,hll"j✓,I, xo v ,ii 11'I I,IInG iI I VI, UY��II, ph,ri��lh iir it Yl, d,l WIa�N'wI,hX 4,w, MI,Ig�W dI iV,��A'✓!,,,I^xvi 4�,l ug,v.,V�Gd!16�i;IP PIV„gin �,e�9n.m.�h luei �tt r„�I�.x� w 6111 r..C;M I�VnI P'd na„V�Y�Ni,VV wtlx ��u n'Afldf�bhl V,Ir��(.u„@Iuo;1JIm NVlloeI IIII M1�I �nlmrtll n �I .li.a..ri��ld l�I; ,,d �,l 1.1 A ldlnw 16,eh ll � I „r +x1aod orduln �aa� tl Invoice Lute ^, 07/26/2019 invoice Number V 20190630-350-A Billing Period 04/01 /2019 to 06/30/2019 Billing Portfolios SEBASTI.AN - City of Sebastian Police Officers Retirement System Total Amount Due � $808.241 * See attached worksheet for calculation details em' 1 Woo WhoX+ A W"x wxx O1:, 'ow wV "',"A" soy 11111.11 d t"e ,m1",hoolo r o 4y, „iMW umoollo, Toloo 110�4;11 31.1lo'. u'm ^ pN n'frv0 av s'"uA;o-o y,,w Mu a,x';'.m m, 1.voo VewuOool40,m No, "X sd, 101d o111, PAYMENT DUE UPON RECEIPT PLEASE INCLUDE INVOICE # WITH REMIT PAYMENT JPMorgan Chase Bank„ NA Bank Account # 907-153925265 ABA # 021000021 Account Name Brookfield Public Securities Croup LLC Should YOU have any questions regarding this invoice, please email 8PSG account sreceivabl'e@brookfield.corn Page 1 of 2 Invoice, Date 07126/2019 invoice Number 20190630-350-A 06/30/2019 City of Sebastian Police Officers Retirement System - SEBASTIAN Market Value 648,372.34 Total Adjusted Market Values $648,372.34 . ..... . .. .. ...... . . . . . . ... .. .... . ... ... . . . . . .. . . Quarterly Fee Calculation (Investment Management Fee - USD) Billable Assets BasRs Points Billable Days Fee 648,372,34 50.000 91/365 808.24 ... . . . . ... . . . . .......... . .. . . .... Invoice Summary 06/30 Fee Total for lnvestment Management Fee 808.24 Total Fee 808.24 Total Amount Due $808.24 Page 2 of 2 uly 15, 2019 000 1,16 IVISH 899A1 000000 746 070 CITY OF' SEOAs"nAN POLICE ATTN, KENNETH MLLGORE 122,15 MAIN ST. SEBASTAN FL 32958 Gray -stone C a n s I tL A busines,� of Morgan Stanley Invoice Number: 10129919196 OWEN S/WH EELER�/PALMER f_inx7cb( Advisor 81,3­227 -2061 vvww-;nwgansIan1ey,cow IMPORTANT NOTICE INVESTMENT ADVISORY FEE PAYMENT REQUIRED ACTION REOWRED — PLEASE REMIT PAYMENT IN THE ENCLOSED BUSINESS REPLY ENVELOPE We value you as a client and thank you for tfie opportunity to serve your investment needs. Phase see below for the investment advisory fee(s,) dLfe, ACCOUNT WENr NAME 745-038962 CITY OF SEBASTIAN POLICE TotaB Fee: Prior Balance: Net Amount,, F r or additional details please see Invoice Detail and Remittance IfIStrUCtions on pages to follow. C)rAl. PEE AMOUNT $3,375.00 $3,375,00 $0.00 $3,3,75.00 mulsoviccs 4ffred ti)r-OTIqb Morj(,Juj S(JJJVY SMjtb L. (' membc� Sill( Crrlyslo"r (I S 000136 M&1599A1 000420 ccount; 745-038962 Billing Period Nurnber of Days Hard Dollar Fee Fee Amount Gray -stone Consulting— A business of Morgan Stanley Invoice Nwiber; 1012991.9196 04101/2019 — 06130/2019 91 $13,500.00 $3,375.00 of 5 RH7 blvestmolts cmd scmic"("s ',ff erc.4 OnougbMorgv 5wnlcy Snlltb Banitry LU", WilberSHIC' Grays&o?iv Co,isuhiii# iN a busiwyof Mor (ill Sfamh�y. owlim MSHS99A1 000421 x'raystone Consulting - A business of Murgan Stanley Invoice Number: 1012991.9196 Payment Due: 8il4/2019 Please return payment using fts page and include it Mth your check in the enclosed business repiy envelope. Please note that cash payments cannot be accepted — wire and check information are below. If you, have any questions, please contact your Financial Advisor. Account Total Fee: Prior Balan V ' Vet 10 Amoun et Amount — Total Fee Amount $3,375.00 $3,375.00 $0.00 $3,375.00 By Wire Bank Name; Citibank, New York AM 021000089 For Benefit Of Morgan Stanley & Co. Incorporated BenefirJary Account: 40611172 For Further Credit tc; 980000163 Ref; Invoice 0101299 By Check Margan Stanley Global Banking DQcratlDris ATM Advisory Fee Billing 1300 Tharnes Street Wharf, 4tli Ficor Baltimore, MD 21231-9907 Invoice 10129919196 5 of 5 N bimstrrinifs aml suvices aiferd 1hrou'llb Morgan Stanicy Smilb flinlry LU." monl7fr sip(., �r Graystone Cori'Suhin4 a b is un s'o0Mo�qA�j _�t'jk' s 'iCy 116g 000136MS11SNA1 000422 E lausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 7080 N,W. 4th Street Plantation, Florida 33317 Tel. (954) 916-1202 Fax (954) 916-1232 SEBASTIAN POLICE OFFICERS'RETIREMENT SYSTEM Aftn: KEN KILLGORE 1225 MAIN STREET SEBASTIAN, FL 32958 I kate Attorney Description 11101/18 BSj REVIEW EMAIL FROM TIMOTHY HAVGAARD REGARDING FEE REPORTING FOR INVESTMENTS 11102/18 CW REVIEW OF OPERATING RULES AND PROCEDURES. MADE EDITS TO PROCEDURE POLICY 111/14/18 BSJ REVIEW EMAIL FROM CINDY WATSON REGARDING CARLIN PARKER DISABILITY 11/25/18 BSJ REVIEW DISABILITY APPLICATIlrtli ON FROM CARLIN PARKER WITH ATTACHED DOCUMENTS; RESEARCH ISSUES; RESPOND TO EMAIL FROM CINDY WATSON; PREPARE PROCESSING www,klausnerkaufinan.com Tax I.D.: 454083636 November 29, 2018 Bill # 22786 :170042 -170042 Hours Amount 0.10 42.50 0.20 85.00 0.10 42.50 0.70 297.50 Total for Services 11110 $467.50 CURRENT BILL TOTAL AMOUNT DUE 467.50 lausner, Kauftnan, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 7080 N.W. 4th Street Plantation, Florida 33317 Tel. (954) 916-1202 www.kiausnerkaufman.com Fax (954) 916-1232 Tax 1.D.: 454083636 SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM May 31, 2019 Attn: KEN KILLGORE Bill # 23853 125 MAIN STREET SEBASTIAN, FL 32958 Date Attorney Description Hours Amount 05/14/19 BSJ REVIEW AND RESPOND TO EMAIL 0.40 170.00 FROM CYNTHIA WATSON; REVIEW PLAN DOCUMENT 0 /17/19 BSJ TELEPHONE CALL WITH CYNT IA 01.20 85.00 WATSON 05/23/19 AKP REVIEW PLAN' DOCUMENT, DRAFT 1.50 637.50 BUYBACK CONTRACTS 05/28/19 BSJ PREPARE FOR MEETING; REVIEW 1.0 637.50 AGENDAAND BACK UP INCLUDING MINUTES OF FEBRUARY MEETING, REVIEW C. PARKER MEDICAL RECORDS 05/28/19 PARA PREPARATION OF MEETING 0.30 37.50 MATERIALS FOR UPCOMING MEETING. 05/29/19 BSJ REVIEWNAND REVISE CONTRACTS 0.70 297.50 FOR BUYBACK PURCHASE; EMAIL TO CINDY WATSON AND KEN KILLGORE 05/29/19 BSJ TRAVEL TO AND FROM MEETING 3.010 637.50 05/29119 BSJ ATTEND MEETING 1.80 765.00 05/31/19 CWry/ DRAFT DIVORCE MEMO AND MODEL 1'.00 425.00 ORDER. Total for Services 10.40 $3,692.50 wrr lient: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM May 31, 2019 Matter:, 170042 - SEBASTIAN POLICE OFFICERS' RETIREMENT Page 2 CURRENT BILL TOTAL AMOUNT DUE $ 3,692.50 Past Due Balance AMOUN'T'DUE .. ... .. ... C lausner, Kaufman, Jensen & Levinson A Partnership ofTrofessional Associations Attorneys At Law 7080 N.W. 4th Street Plantation, Florida 33317 Tel, (954) 916-1202 Fax (954) 916- t 232 SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM Attn: KEN KILLGORE 1225 MAIN STREET SEBASTIAN, FL 32958 www.ki all.snerkau finan.co rn Tax I.D.: 45-4083636 5-= M w"MalwarzAvAll :170042 A70042 Date Attorney Description Hours Amount 07/03/19 BTG RESEARCH AND PREPARE RESPONSE 1.20 510.00 RE DISABILITY TAX ISSUE; REVIEW CARLIN PARKER PERIODIC DISTRIBUTION REQUEST mlfflym��� �* VI Fw-M#=- .01-111 AMOUNTDUE -/41, 3�,0,6-o ausnelr, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 7080 N,W, 4th Strect Plantation, Florida 33317 Tel. (954) 916-1202 rv+�-tiv,klausnerknufman.corti Fax (954) 916-1232 Tax [.D.: 45-4083616 SEBASTIAN POLICE OFFICERS" RETIREMENT SYSTEM June 30, 2019 Attn: KEN KILLGORE Pill # 24042 1225 MAIN STREET SEBASTIAN, FL 32958 � � J Date Attorney Description Hours Amount 06/02/19 BSJ REVIEW AND RESPOND TO EMAIL 0.20 85.00 FROM CINDY WATSON REGARDING BUYBACK 06/05/19 BSJ REVIEW DOMESTIC RELATIONS 0,10 42.50 ORDER MEMO AND SAMPLE ORDER 06/06/19 CW EMAIL TO PLAN ADMIN RE DIVORCE 0,10 42.50 AND MODEL ORDER. 06/18/19 AKP REVIEW DISABILITY MATERIALS, 0.80 340.00 DRAFT ORDER FOR CARLIN PARKER 06/18/19 BSJ REVIEW AND REVISE ORDER ON 0.50 212.50 CARLIN PARKER 06/19/19 AKP REVISIONS TO PARKER FINAL ORDER - 0.30 127.50 SEND TO CINDY WATSON FOR REVIEW Total for Services 2.00 $860.00 • rr Past Due Baiance 850.00 467.50 AMOUNT DUE $1,317.50 lausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 7080 N.W. 4th Street Plantation, Florida 33317 Tel, (954) 916-1202 Fax (954) 916-1232 SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM Attn: KEN KILLGORE 1225 MAIN STREET SEBASTIAN, FL 32958 CLIENT: SEBASTIAN POLICE OFFICERS'RETIREMEN'T SYSTEM MATTER: SEBASTIAN POLICE OFFICERS'RETIREMENT SYSTE11 an* ff= 17 Date Attorney Description 08106/19 BSj EMAIL TO ADMINISTRATOR REGARDING PHISHING SCAM 1!8/28/19 CW RESEARCH AND DRAFT CYBER UEUO-. CURRENT BILL TOTAL AMOUNT DUE Past Due Ba ".ce www.klausnerkaufnian,com Tax I.D,.: 454083636 A 0 A Hours Amount 0.10 42.50 0.20 85.00 0.30 $127.50 127.50 0.00 0~ FOSTER ►, FOSTER Phone: (239) 433-5500 Fax: (1-39) 481-0634 LIC's1kc--b, Ugle"Iftru Preparation of the 2018 Annual Report for the Division of Retirement, 3,000m mmm Please make all checks payable to: Foster & Foster, Inc. 13420 Parker Commons Blvd, Suite 104 Fort Myers, FL 33912 Preparation of the 2018 Chapter 112.664 compliance disclosure. 3,500.00 Benefit Calculations: PARKFR 200.00 Thankyou.pryow business. `V Please make all checks payable: to: Foster & Foster, Inc. 13420 Parker Commons Blvd, Suite 104 Fort Myers, FL 33912 Veterans, Advisory ......... .. ....... .. . JANET M. GRAHAM 5 4 9 0 TECHNICAL WRITER 97 Overlook Drive C, r FIT, HFHAD: Sebastian, I'L 32976, Jeanette Williams, City Clerk City of Sebastian 1225 Main Street Sebastian, FL 32958 Budget Review Advis2F PRoj=","r tv/ NT: S 14.4_,U EWFE: Planning & Zoninq Q� 0-dQ ANQUQ,�T: D AT E: I k NVOICE FOP JUNE 2019 5-29-2019 Police Pension Board -- Special Meeting 3 pages $ 54.00 5-29-2019 Regular Meeting 8 pages 144.00 6-3-2019 Veterans Advisory 3 pages 54.00 6-17-2019 Budget Advisory 8 pages 144.00 6-20-2019 Planning and Zoning 8 pages 144.00 6-25-2019 Parks and Recreation 7 pages 126.00 6-26-2019 Special Magistrate 8pages 144.00 ParTIPtaSI& Recreation Advisor Special Magistrate $810.00 J P0 IAMOWi"r: JE,r s., 1 - ------ D XFE: XM rD U,1,1 T IA4 0 0 DEFT, HEAD. UkTE: DE -PT m J Ir i Of i h rYP�ii�111fry Ntlmr m HOME OF PELICAN ISLAND City of Sebastian 1225 Main Street Sebastian, Florida 32958 INVOICE 71225 Sebastian Policy; Pension Trust Fund � INVOICE: Main Street Date: 8/7/2019 Sebastian, FL 32958 Amount: $6,000,00 AMOUNT DESCRIPTION DUE I Agreement With City of Sebastian Dated June 14, 2017 for Plan Administrator Services for July, August and September 2019. $6,0010.00 PAYMENT DUE UPON RECEIPT. PLEASE RETURN COPY OF INVOICE WITH PAYMENT THANK YOU. i TOTAL A1V1OUTsiT D..... ., , ..... $6,000.00 Remit To: City of Sebastian - Attention Ken Kill ore - " �;F , tt 1225 Main Street Sebastian., Florida 3295a Account Codc 001501-349620 M -,v 'w .1 W1, Expense Analysis FEE TYPE 2016 2017f 2018' ACTUARY FEES 15,509.00 $ 12,587.00 $ 17,834.00 ADMINISTRATIVE FEES $ -- 24,000.00 ADR FEES $ 528.09 $ 790.91 $ 1,896.80 ATTORNEY FEES $ 22,636.80 $ 27,1277.17 $ 32,906.22 CONSULTANT FEES $ 13,500.00 $ 13,500.00 $ 13,500.00 ICUSTODIAN FEES $ 6,735.00 $ 19,970.00 $ 25,400.00 FOREIGN TAX W - ITHHELD* $ 3,409.95 $ 4,390.32 $ 5,464.13 INSURANCE PREMIUM $ 3,021.05 $ 5,900.00 INVESTMENT MANAGEMENT FEES $ 42,352.99 $ 63,231.54 $ 92,658.30 IMISCELLANEOUS EXPENSES $ 121.50 $ 3,411.20 $ 5,548.51 lGrand Total $ 104,323.33 $ 146,651.96 $ 227,422.96 *Globe Tax - collected $1925.77 YTD STC client since February, 1999 Amended contract in December 2010 Current fee in place since December 2010 Annual fee (includes 3 sub accounts) $500 per additional account 300 trades per year - no additional cost 300+ trades Market Value Trade vollurne $5 each 12/31/2016 12/31/2017 12/31/2018 5/28/2019 13,131,004 $ 14,296,485 13,334,883 $ 14,505,319 75 3,166 3,778 3,479 AAEU" ` �20 WA TO: Board of Trustees, City of Sebastian Police Officers' Retirement System FROM: BonniS.Jensen Cassandra M. Harvey RE: Information for Divorcing Members and Spouses of the City of Sebastian Police Officers' Retirement System FILE: 17-0042 DATE: June 6, 2019 In an effort to provide information to Members who are going through the process of marital separation and divorce, the Board of Trustees of the City of Sebastian Police Officers' Retirement System (hereinafter the "Pension Board") has prepared the following summary and materials in order to familiarize you, your spouse and any attorneys or mediators with the pension benefits payable under the retirement systern (hereinafter, the "Pension Plan"). It is important to recognize that the Pension Plan is a defined benefit retirement system. This means that monthly pension benefits may not be paid to you or a former spouse unless and until you vest in the Pension Plan and separate from service with the City of Sebastian. In other words, benefits cannot be paid to anyone (you or a spouse) until the Member is eligible, has applied for retirement Linder the provisions of the Pension Plan and has been granted a benefit, Members are encouraged to review the Pension Plan ordinance, as well as the Summary Plan Description. The Retirement System is set forth in Chapter 58, Article W, Sections 58-46 — 58- 70 of the City of Sebastian Code (available online at httr)://municode,com). Domestic relations orders are specifically addressed in Section 58-64. The Retirement System is also governed by Chapter 185, Chapter 112 (Part VII), Florida Statutes, and the Internal Revenue Code. As a governmental plan, the Retirement System is not covered by ERISA, For this reason, the Pension Plan is not required to and cannot honor Qualified Domestic Relation Orders ("QDROs"). 7080 No wniwi.-,s,r 4 m PLANTATIC>N. 1 33317 f)jjjr )NF: (954) 916-1202 - FAX: (954) 9 16-1232 www.k I U1 SlICI-k 4W 1M,111XOM 'See Board of Trustees v. Vizcaino, 1635 So.2d 1012 (Fla. 131 DCA 1994) (holding that qualified domestic relations order cannot be used to force direct payment to a non -participating spouse of a portion of a spouse's municipal pension benefits in order to achieve equitable distribution of the parties' marital assets); Alvarez v. Board of Trustees, 580 So.2d 151 (Fla. 1991) (discussing the use of income deduction orders in relation to governmental retirement plans); Board of Trustees v. Langford, 83,3 So. 2d 230 (Fla. 51h LICIT 2002) (holding that the qualified domestic relations order could not be used to force direct payment to ex- wife of potion of former employee's pension benefits). All cases are available upon request. Information for Divorcing Members and Spouses of the City of Sebastian Police Officers' Retirement System Page 3 of 3 In sum, pension benefits can be distributed using the Model Order or an IDO. Alternatively, the Court can order or the parties can agree that upon receiving his or her monthly pension payment, the Member will remit the spouse's share to the ex -spouse. Monthly payments are made by direct deposit and many banks offer automatic electronic payment or recurring monthly payments. This arrangement can assure timely receipt by the, Member of the monthly benefit and timely payment of the ex -spouse's share. The Pension Office CANNOT give legal advice concerning the division of pensi benefits. Members are strongly encouraged to seek experienced counsel. i IN RE:The Marriage of vs. (A) (B) PetitionerlHusband, (C) (D) RespondentANife. THIS CAUSE came before the Court on the Petition for Dissolution of Marriage of (A) (B), Petitioner/Husband and (C) (D), Respondent/Wife, and the Court having determined that the spouse has an interest subject to distribution in the retirement benefits of the City of Sebastian: Police Officers' Retirement System, does hereby ORDER AND ADJUDGE: 1. That cause a joint account to be opened at the of (A)(B) and (C)(D). The former account. 2. The former I shal:l, upon eligibility for normal' retirement, Bank in the joint name shall bear the cost of the joint shall direct the Board of Trustees of the City of Sebastian Police Officers' Retirement System upon application and approval for 1 retirement benefits, to cause the retirement check to, be direct deposited in the joint account established under paragraph 1 of this Order. 3. The trustee of the account shall be directed to distribute the monthly retirement check by sending the sum of dollars to the former and the sum of dollars to the former 4. Nothing in this Order shall authorize the receipt by the of any survivorship or other benefits which are not otherwise authorized under the provisions of Chapter 112 and Chapter 185, Florida Statutes, or the City Code of the City of 5. Nothing in this Order shall be construed to require the payment of a retirement benefit to any person who is, not otherwise authorized by law to, receive such 6. The Court reserves jurisdiction to determine compliance with the provisions of this Order and to make such modifications as may be necessary to accomplish the intent and purpose of this Order. DONE AND ORDERED in Chambers at, County, Florida, this _ day of 1 2 0_. CIRCUIT COURT JUDGE Copies furnished to: Counsel for Husband Counsel for Wife Counsel for Pension Fund CITY OF SEBASTIAN, FLORIDA POLICE PENSION FUND - 2018/2019 BUDGET/ACTUAL Update as of September 9, 2019 Approved Amended Total Previous Year's Annual Total 2018/2019 2018/2019 Actual 2018/2019 To Date 2018/2019 2017/2018 2016/2017 2015/2016 2014/2015 2013/2014 Annual Oneratine Expenses Budget Budget 1011-12131 1 1-3 31 4 1-6 30 7 1 -9 30 Actual Actual Actual Actual Actual Actual Investment Managers: Highland Capital $ 52,000 $ 51,450 $ $ 10,709.55 $ 11,748.57 5 12,163.39 $ 34,621.51 $ 67,754.39 $ 60,479,85 $ 42,352.99 $ 64,402.32 5 58,710.23 Boston Parners --=-- -- -- -- 7,000 7,000 1,858.40 1,621.07 1,689,27 1,717A7 6,995.81 6,763.47 - - - - Fiera Capital (AP€X) 5,400 5,950 1,572.12 1,270.83 1,512.33 1,588.48 5,943.76 5,386.84 - - - - Renaissance 7,000 7,000 1,876A1 1,564.05 1,693.11 1,740.59 6,874.16 6,451.11 Center Coast (Brookfield) 3,000 3,200 817.12 686.00 802.15 808.24 3,113.51 2,909.69 - - - - Intercontinental _ - - - - - - PerformanceManager- Graystone 13,500 13,500 3,375.00 3,375.00 3,375.00 3,375.00 13,500.00 13,500.00 13,500.00 13,500.00 16,875.00 15.000.00 Salem Trust Company 29,000 29,000 5,015.00 9,770.00 6,550.00 5,145.00 26,490.00 28,250.00 7,245.00 6,265.00 6,615.00 5,295.00 ADR Agent Fee - Foreign Dividends 2,300 2,300 336.25 162.91 264.59 377.10 1,140.85 1,643.74 581.24 451.80 141.44 186.69 Sub -total Investment Expense $ 1-19,200 $ 119,400 $ 14,850.30 $ 29,159.41 $ 27,635.02 $ 26,91-4.87 $ 98,559.60 $132,659.24 $ 81,806.09 $ 62,569.79 88,033.76 $ 79,191.92 Actuarial - Foster & roster 18,000 18,000 473.00 12,583.00 3,700.00 16,756.00 17,834.00 13,331.00 14,765.00 21,398.00 15,544.00 Experience Study Update - Foster & raster - 7,S00 - - - - - - - - State Report Preparation - Faster $ Foster 3,400 3,000 - - 3,000.00 - 3,000.00 - - - - - Legal Services 26,000 39,450 8,234.92 11,783.17 17,856.86 1,487.50 39,362.45 25,138.80 29,011.01 18,294.60 17,189.16 7,623.64 Administrative Fee to City 24,000 24,000 6,000.00 6,000.00 6,000.00 6,000.00 24,000.00 24,000.00 Insurance 2,600 2,600 2,585.00 - - - 2,595.00 2,585.00 3,021.05 3,121.05 3,121.05 3,000.00 Miscellaneous: - - - - - - - Minutes Preparation 1,100 1,100 256.00 96.00 144.00 198.00 694.00 1,042.00 Codification of Approved Ordinance(s) 600 600 - - 59&20 1,222.07 1,646.7E Functional Capacity Assessments 1,350 2,7w 2,70000 - 2,700.00 1,344,00 Travel - -° - - - 695.50 101.90 - Contingency 15,000 - - - - - - Sub -total Administrative Expense $ 91,650 $ 98,950 $ 17,075,92 $ 18,352-17 $ 42,283.86 $ 11,385.50 $ 89,097.45 $ 72,542.00 45,363.06 $ 36,87&15 $ 43,032.18 $ 27,814.40 Total Operating Expenses $ 210,950 $ 218,350 $ 31,926.22 $ 47,511.58 $ 69,918.88 $ 38,300.37 $ 187,657.05 $ 205,201.24 127,169.15 $ 99,445.94 $ 131,065.94 $ 107,006.32 I June 28"'. 2019 City of Sebastian Police Attiv K'.cn Kilk,ore 122Maii-i St Sebastian, Fl- '31' Dear K-c-n, Mr, Charles Mulfinger, an Institutional Consultant And a mernber of Gmystone Consulting Tampa, will be retiring after a longcarecr of w,°Cr 35 years Nvilh Moroan Stanley Si-nidil Barney LLC (hen-inafler -MorL-Iall Stanley"). Not only are Mr. Mulfinger and I pleased your account 'will continue To be sc�tvicecl by his long timic., collea-u.,cs ol'Graystone Consulting Tart pa, loeft we are also con-u-nitted to making the transition as searpless as possibly; (contact inforinatiOrl To acknmvledge -Mr- MWfingel-'S long servic(with the 1:1rill, and Ilis, cummi'll.)ent to assist In the, transition, mciroan pelruaits Mr, NIMIA-inger to fecceive cor&nued p.aynAeMs,,-elMmg' to in y-,-All. accol.1ni for a pc-vic)d of 60 rnonths after his retirernen.t. Pi.ease be ,.i.ssuned this arrangr-ment does not incr�-asc ally iJvlsoyy fees charged by N'forgan ( 'AT a. , In Stanley ay, ' 'I, Tile Securities and L ,e Commission (SEC) aricl Financial Inciustr.", Re-wlakory Auffiority Y � Z7 (FINRA) have specific rcqulr.ments and guidelines that must be For example, while Mr, -NIkulfinger Tectives payinentsafler his retiremwnl, he may not PrOVide YOU With any filiancial ajcjvjc�- or discliss any investments 'vvith yore. To assure with tic terms of this prograni., Morgan Stanley may reach 0' to yol I while the avrangerrievil, is active. No aclion is mtcdeal at th]3 time, llowe-vet, pl--ase contact me at any time with any que'sti011s Or c0flcellls. ale valve you as a clicra and thank you for the oppwitmity to conti�llle to SCINE )fMAT 1-mancial needs. Sinceyp.ly, Stan Carter Exec:ttlivc Twiip,-, Cconplc: Mana.c-cr Morgan St�ml<q Smiith Banicy ('JtC 21059')JU�V 201S institutional Consultants Scott Owens, CFAR, CIMA011 - Vice President. Institutional Consulting Director Phone: (813) 227-2027 Email: Scott. Owc n I lsr,)ra v st onc. co III David Wheeler, CFP(*, CJMAr, CRPSCR Senior Vice President, Institutional Consolting Director, Corporate Retirement Director, Alternative Investments Director Phone: (8 13) 227-2178 Email: Adam 11. Palmer --- Senior Vice President, Institutional Consultant, Alternative Investment Director Phone: (813) ')27-2033 Email: Adam] Andrew Melivaine - Institutional Consultant Phone: (8 13) 227-2 :. 160 Email: Cameron O'Neill - Financial Advisor, Financial Planning Specialist Phone: (813) 227-2036 Email: AEalasts Theodore J. Loewy, CFA(-I-z,, --- Assistant Vice President, Institutional Consulting Analyst Phone: (8 1 ' )) 227-2088 [?mail: Flicod o re, I n s,-, ra v sto tie. coin Timothy P. Haugaard, CIMA4z) - Assistant Vice President, Institutional Consulting Analyst Phone: (386) 740-2001 Email: Tinioll-tv.11.1 Amanda M. Zugschwert - Client Service Associate., Analyst Phone: (813) 227-2) 135 Fxnail: Thomas Gashonia - Senior Registered Associate, Analyst Phone: (8131) 227-2068 Email: Legistered Chent Service Associates. Richard T. Detweiler - Senior Registered Associate Phone: (8 13) 227-2038 Email: Dana Morten - Senior Registered Associate Phone: (9 13) 227-20 16 Email: Dana.M.] lootciA(cil,�iiis�rEivsto"c.coIll. Kelsey Zyndorf - Senior Registered Associate Phone: (8 13) 227-2) 00 1 Email: Moran Stanley Sniith Barney LLC Meriber SHIC CRC 2165939 Jul*, 2018 Proposed 2019/2020 Annual Doerating Expenses Budget Investment Managers: Highland Capital $ 47,000 $ Boston Parners 7,000 Fiera Capital (APEX) 6,000 Renaissance 7,000 Center Coast )Brookfield) 3,400 Intercontinental - Performance Manager - Graystone 13,500 Salem Trust Company 27,000 ADR Agent Fee - Foreign Dividends 1,500 Sub -total Investment Expense $ 112,400 $ Actuarial - Foster & Foster 17,000 Experience Study Update - Foster & Faster I State Report Preparation - Foster $ Foster 31000 Legal Services 40,000 ` Administrative Fee to City 24,000 Insurance j' 2,600 Miscellaneous: Minutes Preparation (' 1,050 Codification of Approved Ordmance(s) 600 Functional Capacity Assessments 2,700 Travel - Contingency 15,000 Sub -total Administrative Expense $ 105,950 S Total Operating Expenses $ 218,350 ; CITY OF SEBASTIAN, FLORIDA POLICE PENSION FUND - 2019/2020 PROPOSED BUDGET Submitted to Police Pension Board 09/17/19 Amended Total 2018/2019 Actual 2018/2019 To Date 2018/2019 Budget 10/1-12/31 1 1-3 31 4 1-6 3 7 1-9 30 Actual 51,450 $ - $ 10„709.55 $ 11,748.57 $ 12,16139 $ 34,621.51 7,000 1,858.40 1,521.07 1,689.27 1,717.07 6,885.81 5,950 1,572.12 1,270.83 1,512.33 1,588.48 5,94176 7,000 1,876.41 1,564.05 1,693.11 1,740,59 6,874.16 3,200 817,12 686.00 802.15 808.24 3,113.51 13,500 3,375.00 3,375.00 3,375.00 3,375.00 13,500.00 29,000 5,015.00 9,770.00 6,550.00 5,145.00 26,480.00 2,300 336.25 162.91 264.59 377,10 1,140,85 119,400 $ 14,850.30 $ 29,159.41 $ 27,635.02 $ 26,914.87 $ 98,559.60 18,000 - 473.00 12,583.00 3,700.00 16,756.00 7,500 - - - 3,000 - - 3,000.00 - 3,000.00 39,450 8,234.92 11,783.17 17,856.86 1,487.50 39,362,45 24,000 6,000.00 6,000.00 6,000.00 6,000.00 24,000.00 2,600 2,585.00 - - - 2,585.00 Previous Year°s Annual Total 2017/2018 Z016/2017 2015/2016 2014/2015 2013/2014 Actual Actual Actual Actual Actual $ 67,754.39 $ 60,479.85 5 42,352.99 $ 64,402.32 5 58,710.73 6,763.47 - - - - 5,386.84 6,451.11 2,909.69 13,500.00 13,500.00 13,500.00 16,975.00 15,000.00 28,250.00 7,245.00 6,265.00 6,615,00 5,295.00 1,643.74 581.24 451,80 141.44 186.69 $ 132,659.24 $ 81,806.09 $ 62,569.79 $ 88,033.76 $ 79,191.92 17,834.00 13,331.00 14,765,00 21,398.00 15544.00 25,138.80 29,011.01 19,294,60 17,189.16 7,623.64 24,000.00 2,585.00 3,021.05 3,121.05 3,121.05 3,000.00 1,100 256.00 96.00 144.00 198.00 694.00 1,042.00 600 - - - - - 598.20 1,22107 1,646.76 2,700 2,700.00 2,700.00 1,344.00 - - - - 695.50 101.90 - 98,950 $ 17,075.92 $ 18,352.17 $ 42,283.86 $ 11,385.50 $ 89,097.45 $ 72,542.00 45,363.06 $ 36,876.15 $ 43,032.18 $ 27,814.40 218,350 $ 31,926.22 $ 47,511.58 $ 69,918.88 $ 38,300.37 $ 187,657.05 $ 205,201.24 127,169.15 $ 99,445.94 $ 131,065,94 $ 107,006.32. From: Du|oeZapata-Esca|antm <du|oe@rohertdklausnercom' Sent Thursday, September O5'2Ol9G:O5PM To: Kenmeth0Ugmpe Cc: bsjteam Subject: 2020 meeting dates for Sebastian Police CAUTION: This email originated from outside your orgainization. Exercise caution! when opening attachmentsor clicking |imks,,esperjVUyfrom unknown senders. Good Afternoon Kenneth: � am working on the 2020 meeting dates, dates are as follow: March 17 June 16 September 1S December 15 (starting at 10:00a.m.) Should you have any questions, please contact our office. Legal Assistant Klausner, Kaufman, Jensen & Levinson 7080 NW 4t" Street Plantation, Florida 33317 Client Memorandum To: All Pension Plans From: Klausner, Kaufman, Jensen & Levinson Date: July 2019 Re: Cyberattack and Cyber Liability Insurance Coverage The purpose of this memo is to heighten awareness of the possibility of a cyberattack for retirement plans and the importance of carrying cyber liability insurance. The Federal Bureau of Investigation warns that "state and local governments can be impacted by r,ansomware, an insidious type of malware that encrypts, or locks, valuable digital files and demands a ransom to release them," Several Florida municipalities have already been hit by cyberattacks; these attacks have cost hundred's of thousands of dollars to fight, or alternatively, to pay the requested ransom. III -prepared retirement plans are extremely vulnerable to devastating cyberattacks. Because there is never a good time for a cyberattack, bridging the gap early between attack and recovery is paramount. Segal Consulting ("Segal"), a firm dedicated to providing services to retirement plans and other public sector clients, recommends creating an "incident response plan" to combat a cyberattack or strike. According to Segal, an incident response plan should consist of three major components: (a) contain, (b) eradicate, and (c) recover from the incident. Segal also suggests taking the following preparatory steps to assist with cyberattack recovery: 1. Create a list of critical business functions; 2. Identify when those critical business functions are during the calendar year and how much time they usually take to complete; and Cl'ient Memorandum Re: Cyberattack and Cyber Liability Insurance Coverage Page 2 3. Identity the criteria used to determine if alternate arrangements must be made to meet your critical business obligations, A carefully crafted incident response plan can help retirement plans address the problems experienced after a cyberattack and work swiftly to find a resolution. A good plan is essential for business continuity. Ensuring business continuity during a cyberattack can help a retirement plan maintain its critical functions at all times, except after a major disaster. Other ways to prepare for a cyberattack include backing -up all computer networks and securing alternate methods to have retirement benefits timely processed. Such alternate methods may include contracting with an off -site third -party to handle the processing of retirement benefits in the event of an emergency. All retirement plans should reach out to plan sponsors seeking the procedures it has in place in the event of a cyberattack. 14T112 111-313 XF.110= We recommend that all retirement plans require vendors to have or to purchase cyber liability insurance in the amount of $5,000,000-00. All current agreements with vendors that do not already include cyber liability insurance should have the policy amended to include a cyber liability rider adding such coverage. We also recommend adding the following language, or similar language, to all vendor contracts: The vendor agrees to obtain and maintain in full force and effect under the terms of this Agreement, at least a $5,000,000.00 cyber liability policy., The policy shall include coverage for breach response expenses, security and privacy liability, regulatory investigation coverage for covered losses resulting from a data breach of related claims. The vendor will endeavor to notify the Board, in writing, in the event of any change in its cyber liability policy and to immediately notify the Board if said insurance is terminated, canceled or discontinued, in whole or in part. The vendor agrees to periodically provide confirmation to the Board that coverage continues. The vendor will add the Board as an: additional insured. This language will be included in vendor agreements drafted by our office on the retirement plan's behalf. Section 501.171, Florida Statutes, governs "security and confidential personal information." Under this statute, a governmental entity is considered a "covered entity" Client Memorandum Re, Cyberattack and Cyber Liability Insurance Coverage Page 3 and must take steps to notify those affected by a cyberattack and to "restore the reasonable integrity of the data system that was breached." Section 501.171(4), Florida Statutes, provides: [A] covered entity shall provide notice to each individual in this state whose personal information was, or the covered entity reasonably believes to have been, accessed as a result of the breach. Notice to individuals shall be made expeditiously as practicable and without unreasonable delay, taking into account the time necessary to allow the covered entity to determine the scope of the breach of security, to identify the individuals affected by the breach, and to restore the reasonable integrity of the data system that was breached, but no later than 30 days after the determination of a breach or reason to believe a breach occurred unless subject to a delay authorized... Florida Statute, Section 501-171, may be read in its entirety at httD://www,leq.state.fl.us/statutes/index.cfm?Aoo mode=Disr)iav Statute&Search Strin, g&URL=0500-0599/0501 /Sections/0501.171.html. The Federal Trade Commission provides a useful guide og steps an organization should take after a breach has occurred. This guide can be accessed by clicking the following link: httiDs://www.ftc.qov/system/files/doaqg����/pdf- 0154 data-breach-response-quide-for-business-042519-508odf. Any retirement plan in need of assistance choosing a cyber liability insurance policy may contact James Martinez, with Gallagher at James_ Martinez@ajg.com, Gallagher has developed a cyber liability insurance program with the National Conference on Public Employee Retirement Systems ("NCPERS"). NCPERS membership is not required for assistance with this matter. For additional information concerning new developments in cyber security policy please contact John Reidy, with the Pension Technology Group at Lohn@Stq-usa.com or by telephone at (617) 977-8408, ext. 18. As always, feel free, to contact our office if you have any cyberattack or cyber liability insurance questions. From: sale nntrustcompany<sa|emtmstcompany@sa�emtrusLcmm> Sent Monday, April OL20I93:2OPM To: Salem Users Subject Salem Trust Company Change inOwnership Attachments: TMI-Salem Client Letter Final EMail(B),pdf; TMI Acquisition of Salem FAQs (F).pdf Attached is exciting news about the change in ownership of Salem Trust Company. The attachments introduce our clients and their service providers to the friendly acquisition of Salem Trust Company by TM| Holdings, Inc. A press release is also available at the Salem, Trust vvebsite, vvwuv.sa[enntrwstzom. We also welcome a chance to meet personally to discuss this compelling combination and provide additional information that is requested. In the meantime, please do not hesitate to contact your relationship manager with any immediate questions. Thank you for choosing Salem Trust Compainy as your custodian. ""An, Authentic Difference"' This is being sent from an unmonitored email - Please direct any questions, concerns or comments directly to your Relationship Manager or Salem Trust Service Office. rUSt Company RE: Combined Synergies of TIVII Trust Company and Salem Trust Company &»avalued client ofSalem Trust Company, weare reaching out tnyou Lmlet you kmowabout some very exciting news. TIVII Trust Company and Salem Trust Company havelong recognized the synergies between our two companies our cultures ofclient focus, our core competencies, and our markets. Totha1emd[TM[Trust Company has entered into afriendly transaction to acquire Salem Trust Company, Both TK4| and Salem, will continue to operate their businesses as they are today and Salem Trust Company will not change its name. There are no material changes to how you interact with Salem, Your relationship manager will not change, your account numbers will remain the same, your account access will not change, there will be nmimpact onyour client service, and Sa|enn'sservices will not change. What will change is clients will now have access to the combined strengths of both organizations, TIVII has deep corporate trust expertise as a bond trustee and escrow agent, while Salem is the recognized leader of custody services to government retirement plans and institutional clients, Weunderstand you may have some questions rmgardingthiscomb|natiom.Yourrelationsh|pmanager will be contacting you to discuss the details and answer any questions you may have, In the meantime, wehave included pertinent FAQ'sabout this transaction. We look forward to continuing to grow with you as we de,liver on our material commitment to client service bycreating AnAuthentic Difference"'. Sincerely, Tony Guthrie, Mark F.Rhein, Chairman President Question: What is happening? Response: For the past 10 years, Salem Trust Company and TMl Trust Company, a Texas chartered trust company, have been interested in combining their businesses to take advantage of synergies in markets, operations, and client service models to enhance the services provided to their clients. To that end, TMI Trust Company has completed a friendly acquisition of Salem Trust Company effective April 1, 2019. An opportunistic intersection of many positive factors led to the decision to accept the offer from TIVI Trust Company. Question: Who isTMi Trust Company and what do they do? Response: TMI Trust Company is a Texas chartered trust company founded" in 19,54. Headquartered in Fort Worth, Texas, TMI Trust Company has locations in Atlanta, Milwaukee, and Naples Florida, with additional' personnel in Las Vegas and Charlotte. TMI is an expert provider of Trustee, Escrow Agent, Loan Agency, IRA/Custodial, and Family Office services. TMI is an organization with more than 6dO employees and more than $3,,2 billion in assets under care. The executives have extensive corporate trust experience. Through the years, the, TMI executive leadership have been involved with more than 30 similar acquisitions. Question: What is changing for Salem Trust Company? Response: The acquisition represents an ownership change for Salem Trust Company without material change to the structure of the company. Its management, people, systems, and operations will not change due to the TMI purchase. Question: Will the Salem Trust Company name change? Response: Salem Trust Company will! continue to operate under its current name. it will continue to be recognized forA,7 Aub.,entic it makes for government pension plans and institutional clients. 0 Question: Will my relationship manager change? Response: TIVII Trust Company will be retaining all the people, offices, and systems of Salem Trust Company. Question: Will my account numbers change? Response: Account numbers will not change as a consequence of the acquisition. Question: Will my account access change? Response: The structure of accessing accounts will not change, Question: Will the location of service office change? Response: The acquisition will not result in the closing or relocation of the Salem Trust Company offices, Questiom Ml there be an impact on my service? Response: There are not any anticipated changes to the quality senJce provided by your relationship manager. Question: Will there be an impact on the services offered by Salem Trust Company? Response: TIVII Trust Company will not change the services offered by Salem Trust Company, However, Salem clients will now have access to offer the full spectrum of services offered by TIVII Trust Company. Question: Is there any action required on my part as a client of Salem Trust Company? Response: The acquisition has been structured to minimize the impact on the clients, of Salem Trust Company. It is expected that clients of Salem Trust will not have to take any action at this point, N lax vwl�E From: Mary Jean Gloudeman <MaryJean.Gloudei-nan@foster-foster.com> Sent: Tuesday, July 16, 2019 3:20 PM To: Mary Jean Gloudernan; Drew Ballard Subject: 2018 Comparative Analysis Schedules Attachments: 2018 Ranking Schedule.pdf Dear Board of Trustees, Please find attached the 2018 Comparative Analysis Schedules which represent different statistics that we compile from the annual valuationsfor Our clients across the State. This special report has been created explicitly for you. We have chosen to include six key categories that can be used for comparing the relative performance of your plan to your peers. The statistics contained in the attached schedules are taken from the Actuarial Valuation Report determined as of'Oetober 1, 2018. The six categories are as follows: Investment Return — the performance realized on the Market Value of Assets on a net -of -fees basis. We have included: i) current year investment return; ii) 5-year average by fund, when historical information was readily available; and iii) the investment return assumption utilized in conjunction with the current year actuarial valuation. Sponsor Contribution Rate — the sponsor contribution requirements as determined at the valuation date as a percentage of Non -DROP payroll. Member Contribution Rate — the active member contribution rates as a percentage of Non -DROP payroll if the member was hired on the valuation date. Benefit Multiplier — the multiplier used to calculate a pension benefit, based on a 25-year career average if the member was hired on the valuation date. Funded Ratio — based on the traditional funded ratio calculation of actuarial value of assets divided by accrued liability. Salary Increases — the average increase in pensionable compensation for the Membership. We have also provided a separate schedule with 5-year averages by plan, when. historical information was readily available. We hope you find this information as a valuable resource. We are happy to share this information with you free of charge. In future years, we will continue to update the schedules from the current valuation results and provide to you sometime during the summer months. We appreciate the opportunity to serve as your actuary, and we will continue to seek ways to better educate and serve in this capacity, If there is anything else we can do to be of assistance, please let us know. Mary Jean Gloudernan OSIER & FOSTER' 2,018 MRKE"I VALUE, INN/ ESTM ENT RF.'l'FJR(NF^ l' OF" FEES)* RANK C'L EN"1'N:A1IE, RETURN RANK C'1.1E"NT'NAAlE 1211;11IRN I FOR I'MYERS GENERAL I3 e3"��, 106 AVENTU'RA POLICE x 4,)•�,;, 2 VENICL POLICE I?.17"6 107 011111-POR T OFN EIUhL 9,47P, 'I ENGLEW'OOD FI RE tlz.°r`Y% ION ENGLEWOOD A4rAIER x.47'r^ 1 rA1.M HAILHr,71a, Ir111E P2.HC°':,,, Ito PALM BAY FIRE 5 OCE:A,N CII Y�WRIGIiT FIRM t_',P5"', FIII CRLS'FVIEW GFNF:RAL, CAINESVILLE CiI NHRIAL 12 111 BARTOW HRE 7 BAL, HAIRROLIR POLICE 12 55".,, 11, FROS'ITPROOF POLICE u 3z^�, H LIDGEWATER FIRE 12 44'!., III FERNANDINA BLEACH GENERAL K, 0 ORANGE PARK POLICE 12 ('13$F 114 NIEDLET PULICE H 76',. III COCOA OLAC'FI FIRE, I I,x°,I".," 115 PLrNTA GORDA OEN'F:R+M, 1 t MFTAiOUR'NF f"LICP, I I Hurt+^ I Ir, OVIIeDO POLICE # 21pSu 12 COCOA RFAC'H POLI{'E 11 7P/;. 117 LAKELAND FIRE N 15"n, I? BOCA RATON POLICE & FIRE (FIRE) I IHI DADE CFFY FIRE N °A BOCA RATON POLICE& FIRE IPOL7('FI PLI .?'i„ I I"a CRFSTVIEW POLICE L FIRE HI I21I4" 15 I&OCA CKANDLEIRL 113;vs:;, 1-11 L.AKELAND POLICT, 9101', 16 FORT WALT'ON BEACH GENERAL 11 43'!," 121 AUBURN"DALE POLICE x 07'!,;, 17 COCOA GENERAL 11 4.7'!4 1,12 MAITLAND POLICF & FIRE # 0g1�, IH 1ARPON SPRINGS FIRE 11291�',,, 121 LOT40130AT KEY HRE x,l I') MILTON FIRE II 15'!;, I24 LONG BOA IKLYGENERAI. 20 LIVE OAK FIRE I I I,P!' 115 LONGBOAT k:rY POLICE H 2I COCOA TIRE II ]2"I, dli" 1:G550MME1�: FIRE 034 ritt3".4, FERNANDINA HP POLICE wK FIRIF 11111P;, 127 EAST LAKE TARPON FIR H 01116 23 NEW PORT RICHFY FIRE I I,wri, 1 I29 WIN "I'ER HAVEN FIRE 7-5o0^ 24 PUNTA GORDA FIRE 11 0NH" . 1,9 NORTH BAY FIRE; 25 ORMOND BEACI I POLICE I I.112';:;' 11. 1717 BARTOW POLICE 7.'It,^St 26 WINTER GARDEN POI.IC'E' & FIRE, 10,41eel. 131 LAKE MARY POLICE 7 93^1L 27 ORMOND BEACH FIRE: IIL'la'!:;, IH2 DELAND FIRE 7.99y4, 2# ORMONI) BEACH GENERAL I 1p,`II^q, Hj , AUBURN'DALE 64FNkRAL 7 H4%" 2=l DUNEDIN FIRE II19r1°'r„ I34 BR ADENTON FIRE 7,H 31K ?0 TEMPLE TERRACE FIRE III P.M, 135 COCOA BRAC"H GENERAL 7 H2°4', 31 SANFORD FIRE IIX, G4'S5 I36 FORT' WAL: F'ON BEACH POLWF: 7 #2^.a, 1, FORI'MYFRS HIRE II1610'?;, 137 EDGEWATER POI. ICE 7,7x'S'", 33 GAINESVILLE P&,F(FIRFI W 5311,;, 13R PERRY POLICE 7 7x",,, 74 GAINESWIlLE P&F(POLICE) 105311. Pay' OCOEE POI,[CIE & PIRF 7 74'0H, 15 FORTNIYFiRS POLICE Iu' 52'6, Idol GULFPORT POI ICE 7,721I 36 I'A RRISII MEDICAL CENH'°:la, Iar sl'I'I, 141 AUBIPRNDALE FIRE 771'n,.p, :17 3USHNE':,L. GENERAL 10.44",,, 142 ORANGE: PARK ERE 7,71'H6 :ix NAPLES FIRE 10.43^,�;. 143 S'I- PETE BEACI I GENERA I. 7,71% A9 KISSIMMEE POLICE lit �12'S'„ 1,14 DAYTONA BEACH POLICEaY"".FIRE 76H4'^ 4fl NAPLES GENERAL I11 34°1/,,, 145 DADE CITY POLICE 7.6I'3G 4P KISSIMMEE UTILITY AUTHOk ITT Ili 24"`:, I4a� PI,.AN'1' CI'd'Y SAFETY 7 C"I'Sf. 42 NAPLES POLICE 10 21IK 147 OKALOOSA ISLAND FIRE 760^1^ 43 HALLANDALE BEACH POLICE & FIRE Io LS'Fu 148 BONFI'A SPRINGS GENERAL. 7,5x"}„ 44 PALMETTO GENERAL If1-117^:1, 149 PERRY FIRE 7 5HH,^ 45 PALM BAY GENERAL Vj iIG`Y„ '� ISIl WEST MANATEE FIRE & RI:SCLIF 7,57"G 46 ST 1,ETE BEACH FIRE 10AY'`.& 15fl AVON PARK: POLICE 7. 5l,';a 47 WINTER TTkVFN POLICE 10.11F'i It' UMATITLA POLICE 714914 1H HOLLYWOOD FIRE, 9 "gnu'. Ig3 EUSTIS FIRE 7'.47°d, dJ P'ENSACOLA POLICE `J.9.r!,1" 154 PIN II,LAS 1'"ARE: FIRE 7.47"/. 50 OUIfdCG'POLICE Ae FIRE 155 LAKE AL17RdED POLL CE&FIRE 7. EPA 51 SOO,rH WAL:I'ON FIRE 'J, 92,m, v, IWLLE GLADE P'l MIAC !SAFETY O'FFICPR.S 7,38% 52 "I'FMPLE TERRACE POLICE 9 901)11 1,7 ,tiEB'AST'L'AN POLIC'E', 7 35y„ 11 OCOFEGENERAL 97111t;, 158 ,MIDWAY FIR4'::: 732'S;° 54 FLAGLER BEACH POLICE ') 76'"v SANFORD POLICE 7 3TK i5 DELRFIELD BEACH POLICE 9,759;, IM PALM C'OAST'FIRE 7301%; 56 C, R FA'I'ER ORLANDO AVIATION AUTHORITY '+.73'".;, 161 LAKE ALFRED GENERAL 7,2 57 CASSELBERRY POLICE.FIRE 9, I')'N I62 CAPECORAL FIRE 7,2'' 5H I.FFSBURG GENERAL 956°,�, I63 PAI"A I'KA POLICE 727"'+u 5') "IITUSVILLE POLICE 't.i5°i�, IG4 GREATER NAPI,FS R kI, 7'V", 6U f'LINIL A GORDA POLICE 9„5414," 165 ST PE I E BEACI( POIAC'1: 7 "+,1".i, C I BELLE GLADE GENERAL '�';?"•';; G ea, HOLMES REACH POLICE, 7,23',,a tit HAINES CITY CiENERAI. 9 511111;, 167 MARCO ISLAND POLICE 7.2?",h, 03 PALMETTO POLICE 94r1:1;, Ir,N BRODKSVTI.LI. FIRE 7.22"ru 64 HAI NE: CITY FIRE ')•d 5'x" ItO TAVAR I:,S FIRE 2Ua, 45 WIAJ"F'EIa GARDEN GENERAL 944'"„ 171) PA LATKA FIRN,i 7, ,wP PALM BAY POLICE 9.4 V"i, 171 NORTH PALM( BEACH POLICE & FIRE 7 67 NORTH PORT FIRE 'PITUSVILLE "r,32°'4 172 SEBRING FIRE T 112"d, 2"/� r,# GF.NFiR,AI. '1.21"4. 17, "I'AVphRES POLICE 7,12",u IYV TARPON SPRINGS POLICE 9-2As', 174 BELLF,AfR POLIC'L 11""4s 7n d'LA(iI,EIi BEACH FIRE 4 7.7S6 175 CAPE {'ORAL POl.,fl'E 7,16"4, 71 1FIM ALAN FIC POLICE & FIRE 1).27"44 17n ST CLOLID GENERAL, 709'1i 72 FORT WA T'fON BEAU] I FIRE 92411^ 177 ST CLOUD POLICE & FIRE 7.(Pl" 73 PO R'I ST LUC4 E POLICE:" 'Ix;, 17H , RGOI„L,!'HILL LIRE 7.0rrf7"� 74 PENSACOLA FIRE 921t":5, 17`) FORT LAUDERDALF POIAC"E K FIRE 6vy'4" 75 NORTH PORT POLICE 9,13"W I xt� MADNON POLICE 76 LAKE CITY POLICE, `) 11 Ix1 PANAMrA CITY POLICE R A H'7'X, 77 OCALA POLICE "144°'4, IN2 5T LIJC:PIi C'OUN''I'i° PIRF 6,HI7 7x MEDLEYGINERA,L u IH3 GULFT'ORT FIRE x2'^4 7') M'fII:CON POLICE nPY f'.';, IN4 SANIBL;, I'„GENERAL rn,xll"ro 9fl NORTH C'OLLHE R FIRE 'J, r1r1'F� 1#5 ARCADIA POS.ICF K, ('IRE n 7791, Hd DF'I,"I'ONA FIRE # 911^.n 1 Y N6 CAPE COl2A1, GENERAL ¢; 72",F, 82 LADY LAKE POLICE x, 90.;, P97 IEDGEWATER GENERAL 66314, Al INDIAN RIVER SHORES SAFE FY H 34^4, M8 NEPTUNE BEACH POLICE 6 631'4 94 ST AU6USTME FIRE H,x.",;, Ildy NEW SMYRNA IWACII POLICE 6,06 0 BARTOW GENERAL p 801%, °IrI NORTH RIVER FIRE DI.CTR KILL 6-01`, xr, RONITA SPRINGS DIRE # 7"7^."1.1 NI ST LUCIE COUNTY GENERAL. %7 PALM BEACH GARDENS FIRE N,75.1a 192 HOLLEY-NAVARREE: FIRE" #H SEMINOLE FIRE H,75'f m BELLE, GLADE HOUSING AUTHOKFT'Y 6,53'N w WESTMELBOURNE POLICE 9.75^ri, 194 BPJ.LEVIEW POLICE 646N, ,rp HOLLY HILL POLICE: 8.74",6, 10' COCOA POLICE 311u `.)1 OVIFDCy PIRF, #, T44„ I'+C, LAKE WALES FIRE 6,41'%6 <r� LAK.EPARK POLICE H, 71% 197 SOUTH PASADENA FIR E 93 NEW SMYRNA HRACH FIRE H 7F, 198 LAKE WALP,S POLICE „2Ngy4 94 WINTER RAVEN GENERAL H, 71F9i, 1,0 PANAMA CITY FIRE {,.1(1, 4 AVON PARK FIRE 8.68"v l Po MADISON FIRE G-WI ; +I,Y TAMPA FIRE K POLICE :III PORT ORANGg- FIRE & RESCUE. C, DIP, 97 VENICE PIRG K.+,R°„ IQ SANIBEL POLICE 4s DENTIN FIRE x,�7;, 2f13 LYNN HAVEN GENERAL. 5, 97'N, =3'y INDIAN HARBOUR BEACH POLICE R (,4% 2Ir4 HAINES CITY POI"IC:E x rr' Peru MILTON CiI;PlER.AL %r,4^6, 7.0 LAF:Ii WALES 4,iEEh11:RAL 5 gC1tw III) LYNN MAVEN FIRE H 206 PALATKA GENERAL 1112 LEFSBLJkG PO1.JC'E H� 6rl':5, 2177 LYNN HAVEN POLICE; I Idi Mk:1,fiOUIiNE BEACH POI.fl C'L H 5`!'S;, 108 I,.LL:SBURG FIRM: 104 M I113GURNL GENERAL( REGULA R 1 955?'^ -fly CWALA OFNF.RAL ,d 41"1„ 105 MEL.BOURNE GENERAL I.SPF:CIAL RISK) N.55"SI' ,A1'FRA4„E %,,';N 1':; MEDIAN ri 5,5",I, " Inforrnnlmm shn��s Fcrsw & F,w, d-t, only IRG(Ilo nta' sho- CPC, IpP Fi ill Yid, F,,d'rn441 37(2011x FOSTER & FOSTER MARKETVALUE INVESTMENTRETURNS (NET' OF FEES) 5-YEARAVERAGE (2014-2018') * RANK CLIENT NAME REPURN RANK CLIENTNAN11, RY"EURN I ENGLEWOOD FIRF ' qg MILTON POLICE 74"', 2 TITUSVILLE GENERAL P9 VFNICL FIRE 7 PK F EDGEWATER FIRE INDIAN HARBOUR BEACH POLICE 7 4'% 4 SOUTH WALTON Fl R F 9 2'N �:�0 , NOR I H POKT FIRE 74% OCEAN CITY-WRICA IT 110 F v I N, 102 STPF . FE BLACI I GENERAL 7 4% 6 SANFORD FIRE DUSON PIKE 741�,. 7 FARPON SI-TUNGS FIRE :03 P4 BARTOW FIRE 7 11,11. 9 PALM HARBOR FIRE 9 M, 105 NORTH PALM BEAU 11 POLK Hk 1:1 RE 7.3 1114 q FORT 1MYERS GLNkRAH. 1116 NEW SMYRNA BEACH POHCF. 7.3 1) PORT M YERS FIRE x 81!„ 107 LAKE ALFRED POLICE K, FIRE 7,;M1, I PALM BAY GENERAL 14 8% W8 LEESBURG POLICE 7.3% 2 KISSIMMEE UP11-11YALITHORHY CASSELBERKY POLICE & HRE 7?,'„I I COCOA HF,ACH POLICE TARPON SPRINGS POLICE 73°, 14 COCOA BLEACH FIRE 9 xl!t, III BARTOW GENERA RA 1, 7 3-v, 15 WINITA HAVEN POLICE 71,,, 112 FORT LAC DEADALL POLICE & FIRE 7 YF' 16 HOI,1,YWUoD FIRE A, 71�, I 13 NORTH PORT PCIACE, 7 3% 17 13AL HARBOUR POLICF 8Yi6 114 LAK L ALFRED GENERAL 7 2-,;, 19 COCOA GENERAL g,7% 115 SEBAYFIAN POLICE 7 2%� 1,� TI"I USVILLE POLIC E,'P FIRE 8.7", 116 SEMINOLE FIRE 7 2".�, „NAPLES NAPLES FIRE 9. 117 PUNTA GORDA PCIACE 21 NAPLES GENERAL 8 JIX PALM COAST HER 22 PALM BLAnH GARDENS FIRE 8.7% 119 TAVARES POLICE 7 23 NAPLES POLICE 8 6u,. I'll EDGEWATER POLICE 7 Y,° 24 FORT WALTON BEAC1 I OFNEKAI. 9 0!" 421 NORTH BAY FIRE 7 2'.,, 25 VhNICE POLICE 9 6111, ]2a NORTH RIVER FIRE DISJRK 7 2"4. n, DEERFIELD BEACH POLICE 123 FORT WALTON BEACH FIRE 7 TX. 27 ORANGE PARK VOLIC I,. 11 5^'4, 124 ORANGE PARK FIRE 7 211!10 2h LAKE PARK VOI,[CL 8.5% 1�5 AVON PARK FIRE 7 2% 2" PUNTA CORDA FIRE. 9 12 f, LYNN HAVEN FIRE 721. 10 TEMPLE TERRACE FIRE 8 J^16 1:7 AUBUIR NDALE GENERAL 7 1% 31 SANFORD POLICE, 9 124 CAPE CORAL GENERAL 7 1% 32 KISSIMMEE POLICE 129 LAKELAND POLICE 7,1 ' 1� 33 MELBOURNE POLICE 8 OU LONGBOAT KEY GENERAL 7. 1% 34 DFIA ON A FIRE 8 131 HOLLY I ULL FIRE 7. 1 1116 3.5 MILTON FIRE 9 V4, 02 CRESTVIEW GENERAL 7. VIi, 1c, PA RR 15 11 M F DIC A 1. CENTER 9 3 -,;, 133 PUNTA GORDA GENERAL 7 V °4 17 COCOA FIRE 114 TAVARES FIRE 7 1 11;, IS WINTER CARDEN POLICE & FIRE 135 ST PETE BEACH POLKI E 7 1% I') TEMPLE TERRACE POLICE 8 3%, Bin OR LATER NAPLES FI R F. 7 (j% 40 HAP,ES CITY FIRE 9 IN, 117 KISSIMMEE FIRE 7 o76 ,11 WINTER HAVEN GENERAL 9 3,% 139 SOUTH PASADENA FIRF. 7 (V!, 42 ORMOND BEACH POLICE 14q GULFPORT FIRE 7 W,� ,13 ORMOND BEACH GENERAI A 3% 140 LAKELAND FIRE ,14 INDIALANTIC POLICE & FIRE 8.2,i. 141 PERRY FIRE 45 HALLANDALE REACH POLICE& FIRF 9 111N. 142 GULFPORTPOLICH 7,0'Xd, 46 FLAGLER BEACH POLICE 9 2l5. Pli PLANT CITY SAFFIll 6 9% 47 WEST MELBOURNE POLICE K 1% 144 GAINES CITY GENERAL 69% 49 PALMETTO POLICE 9 I 'YI, 1-0 NEW SMYRNA BEACH FIRE 6.9%, ,jq BRADFNI ON FIRE KP!d, 14n PORT ORANGE FIRE & RESCUE 6)%. 50 ORMOND BEACH FflPF 147 W'F.SI MANATEE FIRE & RESULT (I 9° 51 PINELLAS PARK FIRE 149 COCOA BEACH GENERAL I''A', 52 EAST LAKE TARPON FIRE 9 1 H9 FERRY POLICE 6 914 53 OCOEE GENERAI I 50 SANIBEL GENERAL 6 Y!", 54 FERNANDINA BEA( R POLICE L' FIRE 151 C RES 9*VIEW POLICE &, FIRE. rl 91,41 59 LEESBORC; GENERAL 9 1., 152 FORT' WALTON BEACH POC ICE. 56 OVIEDO FIRE 9 1Y^n 151 EUSTIS FIRE 57 PALVI7770 GENERAL 9 154 DELAND FIRE 6 91. 5 8 ST CLOUD POLICE & FIRE H t55 LAKE WAIFS GENERAL 5'1 FIVE OAK FIRE kolll„ 15n AVON PARK POLICE 6 slll� 60 MEDLEY POLICE 7 T% 1t7 BELLEAIR POLICE 6 8%, 'A GUITPORTGENERAL. 7.9':° 159 NEPTUNE REACH POLICE A 8-,; 62 STCLOLID GENERAL 159 HOLMES BEA0 1 POLICE 6 7'I' 63 S F AUGUSTINE FIRE 1 N) LAKE WALES FIRE 6 7% 64 FORT MYERS POLICE 161 LAKE WALLS POLICE C, 7",;, (0 BONITA SPRINGS FIRE 7 8',. 1 Q BELLFWFW POLICE (.6% 66 FLA GLER 8 LACI i Fi RE 7 M". 163 PALA"I KA POLICE 07 LIOCA GRANDE FIRE 7 9% 144 LONGBOAT KEY FIRE (19 WINTER I IAVEN FIRE 7 9'9;, I (d LONGBOAT KEY POLICE 6.61% 16 BARTOW POLICE 7 9% [6f, BROOKSWLLH FIRE 6,6% 70 MELBQIRNE GENERAL tREGULAR) 7 M, J67 OKALOOSA ISLAND FIRE 6 6% 71 MELBOUR N E GENERAL gSPECJAL RSKL 7 8'!� 168 SEBRING FIRE 6 72 WINTER GARDEN GENERAL 7. 9% 169 PAIAI'KA FIRE el 5".16 73 OVIEDO POLICE 7 911. IN BELLE GLADE PUBLIC'SAH, I'Y OFFICERS fi 74 MELBOURNE BEACH POLICE 7X6 171 EYNN HAVEN GENERAL 6 75 FERNANDINA REACT I GENE RA L 71% 172 MARCO ISLAND POI[ ICE 6 5-1„ 7h INDIAN R@VJLR SHORES SAFETY 7 7%, 173 COCOA POLICE 6.49q, 77 At IBURNDALF POIXT 7 71,�. 174 DUNEDIN FIRE t, 44'„ 79 MAITLAND POLICE & FIRE 7.7'.!, 171 LLIESBURG FIRE 6.4K 7" OCOEE ROUCU& FIRE 7 7$!, 176 1 [AINES CITY POLICE 6A %, K 0 p()RT ST I'L[CIE POLICE 7 7% 177 EDGEWATER GENERAL 6.4%, 91 PALM PAY FIRE 7.71!111 178 DADF, CITY FIRE ; 4,5, Q QUINCY POLICE;{ FFRE 7.7% IT) PANAMA CITY POLICE fi 4% 0 LADY LAKE POLICE 7.1"N 190 LYNN HAVEN POLICE 6 4% 94 NORTH COLUER FIRE 7 01�. 1A'1 DADE CITY POLICE 6 3 % 9y BELLE GLA II GENERAL 7 6,1,;, 1A2 HOLLY FILL POLIC E (" 31 , " 9f, LAKE MARY POLICE 7 6% 183 SANIBEL POLICE C, I V„ 97 PENSACOLA FIRE 7 (1, 184 ARCADIA POLICE & FIRE f, 3 %, 9 CAPE CORAL POLICE 73'V I0 OCALA GENERAL 8') C,APE CORAL, H R E 7 V., I M, PANAMA CITYFIRF 6 2°,,, ,o LAKE CITY POLICE TIN, IX7 PALATKA GENERAL 6 2% ,A NEW PORT NCHEY FIRE 188 ST LUCIE COUNTY FIRE (,A% ',2 ST PETE BEACH FIRE I U ST LUCI E COUNTY GFN ERA L 6.0','. '1:1 OR EATER OR PAN DO AVIATION Al 11 IORITY 7,VN PM FROSTPR 00 F POLICE 6 MILTON GENERAL I, T5 $6 I'll HE LLE C LADE 110 UY N G A LITI 10 RI TV 5 311. AUBURNDALE FORE I 10' MADISON POLICE. 5 1% OCALA POLICE 7 03 MADISON FIRE 5 o"', 'M7 BUSHNILL GENERAL 74% AVERAGE %11% MEDIAN 7A % kf--u- 'j—, F"R, & P.m, A."'Es "'fl, POSTER & FOSTER 2018 INVESTMENT RETURN ASSUMPTION* RANK CLIENTNAME, RETURN RANK CLI ENT NANIE RETURN I BELLE- GLADE PUBLIC SAFJEFYOFFI( ERS 5 fflvlI 106 MJULON POLICE 7 SV" S, i BELLE GLADE HOUYNG AUI HORFLY 5 30% 107 NORTH COLLIER FIRE ) 31)% 3 -IOLLEY-NAVARRE PIRG =IAN mg NORTH FORT FIRE 7 4 RIVER SHORES SAIT."FY HN NORTH MVLA PIKE DISTRICT 1 BOCA GRANDE FIRE i[o OKALOOSA ISLAND FIRE 11 DEFIRFIELD REACH POLICE III PALM HARBOR FIRE.7 MEDI.FY GENERAL 6 qUF. I12 PLANT CITY SArF 1')' 7 i11% 8 EDGEWATER GENE'RAL 6 75'1�. 113 PORT ORANGE FIRE& RESCUF 7 M-/, ') ORMOND BEACH GENERAL 6 75'L, 114 FORT ST LUCIE POLICI- 7 5o.", 10 ORMOND BEACH POLICE A 75% t1i QUINCY POLICE & FIRE 7 5,P;, 11 SANIFIF1 OF , NFRAL 1 75, I i,l SANIBEL POLICE ' 7 50141 12 WENT NIN ROURNIL POLICE 1) 5% 117 ST AUGUSTINE FIRE 7 5rP;, Ij BELLE GLADE CENTRAL 7 oiv�;, ]IN ST PE II: bP.AC H GENERAL 7.sfl% 14 COCOA GENERAL 7 110N, i p^ TARPON STRINGS POLICE 7 Is ENGLEWOOD WATER 7 1 1,o ITNI PLE TERRACE FI RI-; 16 G R l".A TER ORLANDO AV I A FION AU IT IORITY 7 0M 12i TEm PEFTE R RACE POLICE 7 5ir,. 17 LONC44OA] KEY FIRE 7,00% 122 NORTH FORT POLICE 7,5I'A. IN LONCROAl KLGENERAL 7 OP% 12.3 ARCADIA POLICE & FIRF 7.6(6' v; LONGBOAT KEY POLICE ' 7.01164, Q4 HONA'A SPRINGS FIRE 20 MARCO ISLAND POLICETou-; 125 BONITA SPRINGS GENERAL 21 MELBOURNE GENERAL (REGULAR) 7 NN, 126 FLAGLFR BEACH POLICE 22 MELBOURNE GENE R,AL (SPECIAL RISK} 7 [II N, I ' 17 FORT WALTON REACH FIRE MIDWAY FIRE 7 001!'. t'9 FOR] WALTON BEACI I POLICE 24 OCALA GENERAL 70011 1'29 HALLANDALE BEACH POLICF& FIRE 7 60%, 21 ORMOND REACH FIRE 7 131t ORANCH PARK POLICE 7 6 W 1� 2O PALM COAST FIRE 7 ON'% 131 PARRISH MEDICAL CENIER 7 e;ff% 27 FALMETT () GENERAL 7 132 ST PETE BEACH FIRE 7.60% 28 PALMETFO POLICE 7 131 BROOKSVMUE FIRE 29 PUNTA GORDA GENERAL 7 04 CAPE CORAL GENERAL Sip SANFORD POLICE 7uM, 135 7.69i, I Sl PEI L BEACH POLICE 7 Ile; EAST LAKE TARPON FIRE 7.0% 32 UMATILLA POLICE 7 00". 07 LEESBURG POLICE 7 3J VENICE PRE 7,001,a, 1,8 CAPE ' CORAL FIRE 34 VENICE POLICE7.00% 1P) INDIALANTIC POLICE & FIRE 7 7q% 3,5 PENSACOLA POLI('C 713% 140 LAKE WALES POLICE 7 7011 Jr, FROS'l PROOF POLICE 720'!, 1,11 PA LATKA FIRE 7 7+)-Sil 37 AVENTURA POLICE 725ll,, 14! PALATKA GENERAL 7 MIX, 38 C.KES7VIEWGENr.RAI. 7 2V% 143 PALATKA POLICE 7 70%„ 39 CRESTVIEW POLICE K, FIRE 7 25N, 144 SEBRING IARF 7 70% 40 GULNPORl GENERAL 7 2V 145 WEST MANATEE FIR E & RESCUE 7 70% 41 HATNESCIIA FIRE 7 21". 146 WIN"FLR HAVEN POLICE 7 70"'. 42 LADYLANEE POLICE 7 2 P1 7 BAL I IARBOLIR POI,tCF ' 7 75% 43 LAKE ALFRED POLICE RFIRE 7 25'!.. l4n BRADENTON FIRE, 7.7i% 44 LYNN HAVENFfRF. 7 25?4. 14,; BLISFINELL GENERAL 7 75%, 45 OCEAN CITY-WRIGH LFIRE 7,25*/,, I50 CAPE CORAL POLICE75 .4 6 PALM BEACH GARDENS FIRE 7.25"',, 151 COCOA BEACH FIRE 7,75.1" .17 PERRY FIRE 7-151ii„ 152 COCOA BEACH GENFRAL 7,75'F, 48 PINELLAS PARK ERE 7 2511" 153 COCOA BEACH POLICE 7 75" ,,to ROU Ill WALTON FIRE 72iN, 114 FERNANDINA BEACH GENERAL 7 751$Y,, 50 TAVARFS FIRE, 7 25% 1:55 FORT MYERS POLICE. 7 31 WINTER GARDEN GENERAL 7 2V/. I , tr, GREATER NAPLES IHRE 7 75%, 52 WIN] ER GARDEN POLIC FINU, 7 .25% J�7 tNDIANHARBOUR BEACH PCI,ICL 7 75'S, 53 DADE, CITY FIRE 730'/n 199 KISSIMMEE ITFIL11 Y AUTHORITY 7.75% 54 DADE C11 Y POLICE 7.31011 4 1,19 LAKE WALES FIRE 7 7511. 15 SFIIASTIAN POLICE. 73f6l, I W MADISON FIRE 7.71 N WINTER HAVEN GENERAL 7,30% 1 C, I MILTON FIRE 7 71"11 57 FORT LAUDERDALEPOLI(F & FIRE 7311i, 162 MERE ONE BEACH POLL 7 7s°,i. ix DENTIN FIRE 7 409; 10 NEW SMY RNA BEACH POLICE 73 5' ill ENGLEWOOD FIRE 7 4W, 164 NORTH BAY FIRE 7 75? flit HOLLY I IILL FIRE 7 40'N, LtJ NORTH PALM', BEACH POLICE FIRE 7 75",', 61 HOLLY HILL POLICE 7 4 1 F., V,6 OCOEE GENERAL 7 75,,,i, (12 NAVELS FIRE 7 411t;, 167 ORANGL PARK FIRE 7 75N, 63 NAPLES GENERAL 7 ](,N OVIEDO FIRE 7 75+!K, 0,4 NAPLES POLICE 7,40!1, D,lj OVIEDO POLICE 7 75%,, (,5 LEESBURG UFNERAL 7,41% 1 7T1 PALM BAYIPME 7.75lSa (,(, AUBURNDALE LIRE 7 F71 PALM BAYGENERAI 7 75N 0 AUBURNDALE GENERAL T1 u"',, 171 PA LM BAY POLICE is ALIBURNI)ALLPOLICE 7,5 n% 173 PENSACOLA FIRF 69 AVON PARK 1:1 RE 7 174 PERRY POLICE 711 AVON PARK POLICE 7501!i4 J73 PUNTA GOROA FIRE 7 75% 71 BARTOW GENERAI 7 501% 176 PUNTA GORDA POLICE 7 75% 72 BELLEAIR POLICE 7 50% 177 SANFORD FIRE 7 75% 73 BELLEVIEW POLICE 7 lfr,, 17K SEMINOLE FIRE 7 751 o- 74 COCOA POLICE 7jirt, 1:71) SOUTI I PASADFNA FIRE 7 75% 75 DAYTONA aLA(A I POLICE & FIRE 7 5ulli, I 9(t SI'CLMJD GENERAL 7 75% 76 DELAND FIRE 7 50% 181 TAVARES POLICE 775%, 77 DUNEDIN FIRE 7 50% 192 TITUISVILLE GENERAL 7 78 EI)CEWATER FIRE 7.51)% w TFFTJISVILLF POLICE & FIRE, 775% T) EDGF.%VATIR POLICE 7,5(t'!, I m WINTER I lAVFN FIRL 7.75% Hit FLAGI.F.R BEACH FIRE T50% 10 FERNANDINA BEACH POLICE & FIRE 7 9111% 81 FORT MYERS GENERAL 7.51M. 1 N6 NEW SMYRNA BEACH FIRE 7.801%, 9-1 GULF PORT FIRE 7 5051, 187 PANAMA CITY FIRE 7 8 0', 9:; GULFPORT PCLICE 7 ' 10%� 199 PANAMA CITY POLICE 7.E("�. 94 HANES CITY GENERAL 7 "14 191) DELTON A FIRE 7XV94. It 5 1 [AINE-9 CITY POLICE 7 ifv�/, p)o BOLA RATON POLICE & FIRF (FIREI 7 8 M4, N4, HOLLYWOOD FIRE 7 5nv% mm BOCA RATON POLICE & FIRF (POLICE) 7 81 HCLME�S REACH POLICE 7 ilP'/,. 192 KISSIMMEE FIRE 7 95N„ An KF,.Y WEST I 101,J.SfN(; AUTHORITY 7 5W,;, I U; OCALA POLICE 7 0., P) KISSIMMEE POLICE, 7 50% 194 OCO F , L POLICE & FIRE 7 0il, ,)o LAKE ALFRED CFNFR At, 7-10% ro COCOA FINE 7 9W,, ,I LAKE CITY POLICE 7 5,",, N,� EUSTIS FIRE 7 901% 92 LAKE MARY POLICE 7 5]j'!:, 07 FORT WALl ON BEACH I GENER AL 7 9olll, 93 LAKI, PARK POLICE 7't)% PA G AINESVILLE GENERAL 94 LAKE WALES GENERAL 7 50'N' P,,) GAINESVILLE P&P TPREj 9s LAKELAND FIRE 7 ii& 200 GAINESVILLE P&F(POIJCEj LAKELAND POLICE 7 _I(jl ST CLOUD POLICE L FIRE 7 97 LEESBURG FIRE 7.50"% 202 TARPON SPRINGS FIRE 7 yI LIVE OAK FIRE 7 5IKi, 103 BARTOW FIRE 9 00 LYNN HAVEN GENERAL 7.51),!,. 204 BARTOW POLICE 9 001!, „ 100 LYNN I [AVFN POLICE 7 1 lKl 2115 FORT MYERS FIRE N ION, Wi MAITLAND POLICE & FTRF I 2��,, MAMSON POLICE 8 'iv! 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LAST LAKETARPON FIRE 14N PALMETTO GENFRAL C4 EDGEWATER FIRE 144 PORT ORANGE FIRE & RESCUE 2 5,A^ , "i EDGEWAI ER POLICE Ql)lNrf'Y PC X-1 &FIRE 6,� ENGLEWOOD FIRE 3, 1 TITIJSVI A.E POLICE & FIR]: 67 FLAGLEJi BEACH FIRE J.' 2 WfNTER GARDEN GENERAL 2 iff:, n,x FORM' LAUDERDALE POLICE FIRE, 3 f111E,u 153 NOR . 111 PALM BEACH POLICE & FIRE (,I, FORT MYERS FIRE 3 0% lay OCOEE GENERAL 70 FORT kn'URS POLICE 3 IHN, 03 AVON PARK. FIRE 2 1 7 1 HALLANDALE BEACH PCLICE,", FIRE 76o% 154, AVON PARK ?QITCP 2.110% 72 HOLLY FALL FIRF 3 o'N', 157 BELLE GLADE GENERAL 73 HOLLY HILL POLICE IIN GAINESVILLE GENERAL 7-e 1 IOLLYWOOD FIRE 1 clLORT GENERAL 75 INDIALANTIC POLICElN FJRF 3, 11, VOLLEY-NAVARRE FIRE 2,jW. 7o INDIAN HAIRNOUR BEACH POLICE 3rlleJ','a, If,] INDIAN RIVER SHORES SAEIL Y 2 00%, 77 KISSIMMEE FIRE 3 00ci, NEW SM YR NA BEACI I FIRE 2 011,?,. 78 KTSSIMIVEE POLICE �w ,; T ITUISVILLE GENERAL 71p LAKE ALFRED POI ICE S. FIRE I1,4 KEYWEST TfOUSNG AU711OMTY So LAKF CITY POLICE 3 01W�, 161 FORT MYERS C.FNERAL 81 LAKE WALES FIRE 3 001I� V, i, SANIBEL GENERAL l (4% 82 LAKE WALES POLICE I i 167 MEDLEY GENERAL 167% 93, LAKELAND FIRE I 11V4. log NAPLESS GENERAL I P45,, 84 LAKELAND POLICE BELLE CLAD(, HOUSING AUTHORITY 1 85 LEESBURG FIRE 3 rN% l 71) S1 P I: 11, BEA ("I I C, EN Fk A 1, 1 00% A ERAf,Fr 2.43%, %H151AN 3.01r,;, Inr-ulin sluanv., F-W & F-1, a1,,N, nmI) MuIhPlio, b-d -- ID/J1200 NA =OSTER &FOSTER 2018 TRADITIONAL FUNDED RATIO* RANK C'LI'EIN'TNA:TIC RATl47 RANK C'LI'EN"I'NANIL3 RATIO I PALM BAY GENERAL 9N N".;, Yore MF:P)LEY GFNF.RAL 95.7"17 2 PAIRRISH MEDK"Al. CENTER 1-11 Y� , 10 13ART'OW POLICE Ki ? 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POLICE KI_W NOR 'I"H PORTFIRE 'i9 d'N, 137 NEW SM'YR;NA OF:ACH FIRE Ku N'b" S MIDWAY 11RE ',K, I,',;, 13K FORT WAIJON BP.ACH POLICE 911 N'?i, 3L1 LAKE ALFRED POLICE &, F1R17 48,d)";6ll I'R9 OCALA, POLICE 8044a„ 35 COCOA BFAC'H GENERAL 97,1% 140 FUSTIS FIRE 80A'Y, 36 GULFPOR'T FIRE 96 6"l, 141 SEBASTIIAN POLKf 79 91!: , 17 SAN'FOKD FIRE 91,, 5% 142 MELBOURNE POLICE 79 19 OV'IEDO POLICE '+r, 4'p(, Ill DELTONA, F(kE 71 7':f, 19 TAVARES FIRE 'r1,,, 2."`1� 1,14 NOR"LH RJYLR FIRE DIS FRIC:T 79. 5'H, 40 TA MPA FIRE k POLICE I,, pro„ 145 NFW SNIYRNA BEACFI POLICE: 41 OCOEE GENERAL, 1„5.91:F I46 PAN AMA(: ITY POI.ICF. 41 BUSII:NFIJ, GENERAL "r5.4":;, 147 KISSIMMEE FIRE 79. 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'1 12"l, 115 t3ce.lo-EE c;ENERnI. 4 24m;, 17 PALATKA FIRE °r,IIN4v, (e, tiTLUCIECOLPiNP) FIRE 4, I N NAPLES FIRE 0 o3"v, 117 FORT WALTON I3L.AC'PI (JENERAI. 4, 01)% LH HAINES I'TT'YGENERrAL ^y IIg95 PIA CAINESVILLE GENERAL 40Mxg 24 NORTH FORT FIRE 8 91P " 114 FORT MYERS FIRE, 41141!,� 21 FEW SMYRNA BEACH FIRE: 9,72°'G 12iY BRADENT0N FIRE 4 ii3'E5, 2.2 I, ADYLAKE POLAC'I: w.(,4",;� [21 DUNEDIN FIRE 4011,, 23 LAKE CITY POI'.ICE 9 57 122 FIN 'PA GORDA GENERAL 3 9'r44. 24 IA NN HAVEN GENERAL M 1 PII;, 123 PLANT CITY SAFF.I Y 3,rs"r;, 25 LAKE: ALFRED GENERAL. 8.40$il 124 FORT MYERS POI.IC'F: 3 .. FAST LAKETARPON FIRE R 1+,°:1, 125 NAPLES GENERAL 3 27 ']AVARES FIRE[ S 13'Pd Uh NULL ON GENERAL 3, 77% :M, KISSIMMEE FIRE. M,Ox%, 127 ORMOND REACH GLNERAI, 3 761!1 "r MEDLEYGENFRAd. 7 75'% 12N GUTA OR F POLICE 3 75'N, 30 TA.VARER POLIL'E 7,75"!;6 12" PUNTA GORDA FIRE 3 701% 31 ARCADIA POLICE& FIRE 7 HOLLY HILL. FIRE 314,1% 72 SANIBEL GENERAL 7,d,t�4e, 131 CAPE CORAL PIXT 1.55"�„ 33 BOCA GRANDI;. 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POLICE 2,91%, '17 ORMOND BEACH POI.'IC'f_ 67'"1e 146 PENSACOLA FIRE 2,Nn's;, 48 INDIAN RIVL:R SHORES SAFFTY' (,5V,4 147 WINTER GARDEN FnLI UL• & FIRE. 279% 4'i MARCO ISLAND POLVC L h 47% IJX SL CLOUD POI .IC'E & FIRE 2,77",, ir7 MILTON POLICE, 6.4,A" 14'7 EDGEWA'I'ER FIRE ;,74%, 51 NEW SMYRNA BEACH POLICE 6?8,'!'„ I'll F'LAG'LER BEACH POLICE ? ajp/;,, 52 PALATKA GENERAL t, Eh°5,,, 151 AVENT'URA POLICE 53 FERN.ANDINA BEAC'IT POLL( F.&FIRE ,2 P;, 152 VL,N WE FIRE 2�451,, 54 PINELLAS PART: FIRE �, 2Ce'r;, 15.3 MADISON POLICE 2, 431y;, 55 C'RESTVIEW GENERAL. 1;54 SOUTH PASADEN.A FIRr Z,;N,�" SA ST LI ICIP: COUNTY GENIIiAI. r, IcS"n, 153 PERRY POLICE 2,31"6 57 KISSIMMEE UTILITY AUTHORITY h 15",i, 15h OVIEDO POLICE 2.211 58 HOLLY 1ELL POLICE 6,12°n, 157 LEESBURG POLICES 2 17'bI, 54 BOCA RATCIN POLICE ,4 FIRE IFIRE} (, fl4l1, 15.Y C:G4COA FIRE 2.14.E Nhl"FUNE BEACH POLICE 611,11), 1"1 INDIALANTIC POLICE & FIRE 211N",�;, til 13UNITA SPRINGS FIRE 5'vrHa, IuAl ODCOA 5FAC'I-I GENERAL, 62 UKALOOSA ISLAND FIRE 5'r'4°;, I+d BRODKSVII LE NRE a3 TETUSVILI.F: GENERAL 5, wO, 162 AVON PARK POLITE h4 GREATER ORLANDO AVIATION ALI FHORPPY i_w2"'4, 1(0 GAINESVILLE PKFIPOLJPEY (5 NORTH RIVFR FIRL DISTRICT 5.7(",, 164 ORANGE. PARK POLICE b6 0I4,1TOR1 GENERAL. i ti3^!,� Ie,S ORMUND BEACH FIRE I Nti^F„ 67 LAKE MARY POLICE S,C,�V".�" I66 PERRY FIRE 1 77"4„ fR CAPE CORAL GENERAL, 5,589r, In7 OCOEE POLICE &. P1 RF 172".5, 69 ST AUGUSTINE FIRE 5 5aw„ I„ffi MELBCIURNE BEACH POLICE 1,67Yn, 70 PALMETTO GENERAL 551" 10'1 SEMINOLIEFIRE 1,60% 71 PENSACOI.A POLICE 14'lN' 1711 FROSTPROOF POLIC F' I 72 HOLLYWOOD FIRE 5 47!wr 171 PALMETTO POLICE 1 73 EDGEWAT'ER POLICE 5,43^% 172 LAKE WALES FIRE 1 45'";, 74 PANAMA CITY POLICE i 3` l" , 173 NON1IT C'OLLI FR FIRE 1 42,1, 75 SOUTH WALTON FIRE 5.34".i, 174 13ARTOW GE;N'FR.AL 1 41%, 7n SANFORD FIR F; 5 331.E 175 DENTIN FIRE 1,311A 77 BUSHNELL GENERAL 5 10^„ 176 ST PLE'PF: BEACH FIRE I?yl"h 7N WINTER GARDEN GENERAL. 57Y1°:-;, 177 COCOA BEACH FINE 74 Et.LSTIS FIRE 5 nc, 03 AUBURNDALE POLICE 0.77'1. NO IBF.LLEAPR POLICE 5,20;, 170 WINTER HAVEN FIRE r➢ 7fi"1;1 NI PALM BAY FIRE t 21i,,:" INfY OCALA GENERAL u_Y 4A;. 82 MADISON FIRE 5 1°,"'4, 1R1 BELLEVIIEW POLICE yr,3NN, M3 FORT LAI IDUKDALE POLIC'I:K FIRE 51Ci';;, I82 COCOA POLICE 009i'll g4 PORT ORANGE FIRE &RESCUE S01A,, INJ SEBRING FIRE 10 OYlLI30 FIRE 5 (171!;, I84 GULFPORT HRE 96 BAL HARBOUR POLICE 5115"G I85 OCEAN CITY-WRIGH"PFIRE _061,11'4 97 FORT WAI„TON BEACH POI.ICF i, 115";',., 196 INDIAN HARBOUR BEACH P'OLIC,`E Ng ORANGES PARK FIRE. 5,r13",, 197 WEST MFI.BOU'RNE POLICE N^➢ TEMPLE I I:'RRACE POLICE 5r1,4" INN MELBOURNE (iENERAI. rSPFECIAL RLSK) 1,0 ST CLOUD GEN ERAI. 4 99'll, I XI` PALATKA '+ I 13A.R"I'OW POLICE 4 '1M'i, Mari AL POLICE CAPE CORAL. POLICE .1 l)(Al, .I_"r0°IY, HOLMESBEACH POLICE 4 94% 141 LAKE WALES POICE -1 90lq ;, DADS CITY FIRE 4 U1":;, 1`92 BELLE OLADF HOUSING AUTHORITY •uue;, 04 °'4 PUNTA GORDA POLICE q,'ia°: 1, 193 AIELBOURNL POLICE .3,27'"L 'a5 PALM HARBOR FIRE 4 9X!,� 1I4 ME1.BC➢Y IRNE (iENERAI. (REGULAR) -3 z2"'e On WEST MANATEE FIRE & RESCUE 4 fl-N, I" P'LARTDW' FIRE -3 78'P. 't7 PALM BEACH GARDENS' FIRE I7N'"� 196 COCOA BEACH POLICE '+N 'I"AMPA FIRE & POI ICE 4 79'l,� I'+7 AVON PARK FIRE -6 14.: K'+'r PANAMA C'1TY FIRE •1.77'i;, AVIEITAGE: 4.0^;, MEDIAN -01% InFr,+m:vnnm Aa- EpsIu & Ftrstcr clicnls ualw tlncrc,rse shox, m dcl-lli-d ,a,da L I ur l /da l N Alma-] V.1-6- FOSTER & FOSTER SALARY INCREASES (RANK C:'LI ENT NAM IN'CIUASE RANK CLIENT NAME INCREASE I SANIBEL POLICE ILSM^. ')I OCEAN CITY-WRIGHT17ME 5lJTA ., FLM-jLER BEACH FIRM,. 1117:;, GREATER ORLANDO AVIATION ALI'PHORLLY 511h"'°°, ? KISSIMMEE FIRE 111.73% "3 '1I*LUSVILLE GENERAL 51Ne�!a, 4 DELAND FIRE ") 1311, ",4 NORTH BAY FIRE 5.d15gti, 5 LYNN HAVEN FIRE 357t. 'r5 PALM RAY FIRE t„ PALATKA FIRE 8 09% 11 TAKE M AIRY POLICE 7 CAPE CORAL GF.NF^RAl', 7`>G"+;, 47 FORT WALTON BEACH FIRE N GREATER NAPLES FIRE` 791ll '13 BONITA SPRINGS FIRE + TARPON SPRINGS FIRE 792N, qP OI4INCY POLICE,rt FIRF 4',17'!,, 10 NEPTUNE BEACH POLIO "F, 7, 74'!6 Inu WINTER IIAVEN POLICE 494%, II HAINES CI7YP0(JCI,' 7, 74",, 1111 GULFPORT GENERAL 4,90L%„ 12 HOLMES BEACH POLICT.. 7,64^'.,, 1110 EDGEWATER GENERAL 4 8W., I CAPECCIR,AI, FIRE 740"^" 103 BARTC4W POI,.I('I'i 1, 86,%, 14 NEW SMYRNA BEACH POLICE 7.3°)P6 NO SANFORD FIRE 4.8214 IS LAKE ALFRED GENERAL 7 23'.i, loY 'A,IN'F ER GARDEN GENERAL 4 x I C FLACILER BEACH POLICE-, 7 23-.e. 1W, COCOA BEACH POLI('F 4 7T ar I'! HALLANDALE BEACH POLI -E &, FIRE: 7 2p% I07 LADY LAKE POLK'E 4 779,; 18 BEL.LEAIR POLICE '7.17'°s, IM PINELLAS PARK FIRE 4 7Y.', N TARPON SPRINGS POLIO"I,.: 71n1°i, III'1 PALMETTO GENFRAI. 4,60",, 20 NORTII COLLIER FIRS 7.16u°'��, I111 COCOA POLICE 4.6N'Y,„ 21 COCOA FIRE n.`l7°:gin III I'"ERRY FIRE 4.6bl!", 22 i"AVA RES POLICE r, 4%", �, I I2 PENSACOLA FIRE 4Lr 1S' 23 NFW'SMYRNA, BEACH FIRE C, 87� , III COCOA BEACH FIRE 4_66% 24 PAL,A'PRA POLICE r, 8L79;, III TEM PLETERRAC F POL1 rF 460'%, 25 K ISSLMNIFE POLIC'L ry 71,% 111 S'ANIBEL GENERAL 45RIE 26 BAI,, HARBOUR POLICE 676i':r, 1IA SANFORD POLICE 4 )"I'll ., C,'RFSTVTW POI'.ICE 4 FIRE 67re"n° 117 PALMETTO POLK.'l 4 574'„ 29 1„1-:G,SRLIRG POLICE h 75':'„ BIM PERRY POLICE .1 571I, 2P FDOLWAl I:R POLICE 1, 73'Y;, 119 ORANGE PARE: POLICE: 4 54'n, 30 HOLLYWOOD FIRE" 6 72% 120 GULFPORT P(rLICF 452,4, 3I FAST LAKE 4'ARPC4N FIRE ,; 64% 121 LAKE CITY POLICE 149,"' 32 NEW PORE RKHI:,Y FIRE r° 64% 122 SOUTH PASADENA FIRE 4.48°,;, 33 ORANGE PARK FIRE h 6,10"' , 123 Wb N"1"ER' HAVEN FIRE 4 47;A 34 AUF3URNDALF FIRE. 6.5 R"'„ 124 [)AIDE CITY POLICE •1.44/„ 35 NORTH PALM BEACI'1 POLICE: K. PIKE ri 55°, 125 INDIAN HARBOUR BEACH POLICE 3o ARCADIA POLICE K FIRE 6 5 1 % 121, NAPLES FMF 4 3Yv,„ 37 HO11Y HILL. POLICE 6 i(F, 127 BARTOW FIRE 4 35$11 39 MILA ON FIRE 6 511"r'r, 1,',29 NAPLES POLICE 4 34% ,l^) FORTMYERS POLICE t,, i°.I"r� 1219 SEMTNOI.F FIRE 4j1%,, 411 LAKELAND FIRE r,,34•,;, 134 LYNN HAVEN GENERAL 431'".41 41 CAPE CORAL FOLIC F 6"32u,;, 131 FORT WALTON EFACT I C,FN FKA1, 4,3 Q%, 42, BOCA GRANOE FIRE fi 314i' 1:32 MILTON GENERAL 4 271;u 43 PANAMA CFI FIRE 6.2N".S, 1.33 LEE•SBUR,G FGRE 42:+"4 44 ORMOND BEACH POLL E o.,i5°n, 134 ST'CLOLID GENERAL 42246 J5 'FAVARES FIRE 1,,21,' 13.5 1^,AKF. WALLS FIRE 4 22°%, 4., 5'T ALIGUS`FINE FIRE r, 16.;^ 134 LAKE WALES GENERAL 4 2 M. 47 I1 N MAN RI VER S HORF.S SA FF, I 6 44!,. 137 COCOA GENERAL •4, ,Ix IIAINES CITY FIRE. G fu+79'dr 139 ALIBURNDALF POLICE: 4.1'I?fi 49 PORT ST LUCIE POLICE tifix 139 FROSTPROOF POLICF 511 BELLEVIEW POLICE f; a 7N, 140 PORT ORANGE FIRE, A RESCUE 4 13"a 51 ST CLOUD POIACL & FIRE f„ 11ri'? , 141 WINTER GARDEN POLICE 'A FIRF 4.1 "„ 52 NORT'II RIVER FIRE DISTRICT 6 05 ., 142 QRM0;ND BEACH FVRE 4 (q% 53 PANAMA CILY POLICE r;,rl4"':;, 143 PALM BLAC"II GARDENS RRF, 4,,13N, 54 NORTH FORT POLICE 5 o,r'};, 144 OCOEE GENERAL. 41)1% 55 5'T LI ICI I: COUNTY GENERAL, q,v,r„'„ 145 BELLE GLADE GLTII:RAI• 3 9A'#, 56 B,ROON',CVII^LF FIRE 5,'.r7'!:L, 144 LDGEWATE'R FIRE i 06% 57 OVIEDO POLICE 5,'11r'?,4 I47 FEpiNrhNDINA BEACH GEN EIiAL 3,01^,,, 54 S,EBA57'IAI"4I'OI.IU'E 5,�1I1i1i, 148 MELBOURNEPOITCE I8119, 5y PALA4"KA GENERAL 3 1y"i. PO DADE CITY FIRE 3 R 1% 611 MELBOURN"E 13LACII POLICE 3 x7% I91 PUNTA GORDA FIRE 3,77% GI KfSMNTMEE PTILPIY AUTHORITY S 97"", 151 FORT L.AUDERDALE POLICE: K FIRE 3 75'A. rig WEST MELBOORNE POLICE 5,9 1'7;, 15' WNTER HAVEN C7E;NFRAL, 3C, % 61 FORT WALTON T;IVACH POLICE S, RII"r;, I53 CAKE WALES POLIC'F. 3 f;p¢;, „4 LAKE ALFRED POLICE & FIRE 5 7V„ 151 DEL'8'ONA FIRE 3 (,fl% 0 COCOA BEACH GENERAL 5 74% 1 155 VFN ICE POLICE 3.5,1% f,(^ PUNTA GORDA POLICE 5.73%, 156 ORMOND BEACH GENERAL 3 59% 67 ST LT 'CT E COUNT)' FIRE 5.72^I4 157 VENICE FIRE 34711, r„N BUSHNELL. GENERAL i.f,2';^;, 159 GULFPORI' FIRE 3 45"8, 6') MARCO ISLAND POLICE ,5,5�7"�',+ I -I, ALIBURNDALF, CF:NER.AL 3 42%„ 70 MAIT'LAND POLICE Nr FIRE 5,51;'y;, IL11 AVON PARK POLIO"V' 34114% 71 FORT MYERS GENERAL 5,55",„ U,l NAPLES GENERAL 3 3711;, PLANT CITY SAFF I Y 5 501.,° 1Q PAN.M BAY POLICE 3 311" ;, 71 SOUTIf WAI.,TON FIRE t4`4%, Ir:l DUNEDIN FIRE 329';. 74 T9:MPLETERRACE FIRE 5,48%, 1,4 OCOEE POLICE:& FIRE 3.227fi 75 CRES`VVIEW GENERAL 547"4, It,S O:ALOOSA ISLAND FIRE 3,17% 7t, FORT MYERS FIRE 5 479,, I(,r, HOLLY FALL FIRE 77 OC.ALA POLICE 5 4316 11,7 MAI[XSON FIRE 7P CASSF.LF3FRRYPOLICE &FIRE 53111% 168 OVIEDO FIRE 307u;, 79 MEDLEY POLICE 5 3V;. I6'r 13ARTOW GENERAL 3,07*,,e RI1 MILTON POLICE 53TA. 1T1 PLINTA GORDA GENERAL 289% 81 PALM HARBOR FIRE 5 3P'7a, 171 HT'USVILLF POLICE.\ FIRE 2_R4",„ 92 LYNN HAVEN POLICE 172 M LLB0lMNE GENERAL YREGULARF 2731:,, 83 (}GALA GIF:N EIdAL 5,2,"r"^1 IT3 ML"LBOURNEC`,ENF:RALISPECIALRISKI 2,fi'7°;a, 84 BRADEN'[ ON FIRE 5,?3'°:,; 174 S F PETE BEACH FIRE 2(14911, 0 EUSTIS FIRE I2ui^u 175 S7 PETEBEAOIIGI';NF^RAL 243"6 xG WEST MANATEE FIRE,K RES(FIF. 5,1 176 AVON PARK FIRE 2 fill. 87 LAKELAND POI-1C E: 5,1411;1 177 ENGLEWOOD FIRE I7V. RR MADISON POLICE 5 13'fo 179 INDTALAN"TIC P01,K.1 R'. FIRE 1 71% R`a FERNANDINA 13E'AC'II POLICE;}; 11R1- 5 12% 179 BELLE GLA OE HOLIS ING At IORITY 1,. W'. 41,, I1AINI S CITY GENERAL 5 08*,;, 10 DESTIN FIIx T: 1115% Ixl SEBRING FIR(:' dI E1Y14N 5„6 , ° IItlInP,Blltll,- sll- F-t.. ,$ F,Ivlrr CIICII'IS -1n JANUARY: No Board activity. FEBRUARY: No Board activity. MARCH: I" Quarter Board Meeting: • Update and Review Calendar of Activities. • Request update of Summary Plan Description (every two years). • Investment Report and Performance Review. • Receive Annual Report to Division of Retirement. APRIL: No Board activity. MAY., No Board activity, JUNE: 2nd Quarter Board Meeting: 0 Review Calendar of Board Activities. a Investment Report and Performance Review. 9 Select Board' Chairperson and Secretary (every two years), 0 Approve and Distribute to Members the Summary Plan Description (if needed). JULY: Board Members should file Financial Disclosure forms by Julyist. AUGUST: Receive State premium tax monies. SEPTEMBIER: * 3 rd Quarter Board Meeting: • Agree on Quarterly Meeting dates for following year. • Review Calendar of Board Activities • Approve Election Process for Police Officer Members (if needed). • Select Board appointed Member and request City Council confirmati%in (if needed). • Investment Report and Performance Review, * Report on year-to-date expenses and approve budget for the next year, OCTOBER: No Board activity. NOVEMBER: No Board activity. DECEMBER: • 4 th Quarter Board Meeting: • Review Calendar of Board Activities, • Consider changes to Operating Rules (if needed'). • Report on Actual Operating Expenses for the year. • Investment Report and Performance Review. • Update Investment Policy and Allocation Strategy. • Accept the Actuarial Report. • Approve Expected Rate of Return. • Confirm renewal of Liability Insurance Policy. Page 1 of 1 CITY OF SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM ACTUARIAL EXPERIENCE STUDY September 13, 2019 FOSTER & FOSTER �� _TANTS 13420 Parker Commons Blvd., Suite 104 Fort Myers, FL 33912 · (239) 433-5500 · Fax (239) 481-0634 · www.foster-foster.com September 13, 2019 Board of Trustees City of Sebastian Police Officers’ Retirement System Board of Trustees 1125 Main Street Sebastian, FL 32958 Re: City of Sebastian Police Officers’ Retirement System Actuarial Experience Study Dear Board: As requested, we have performed an experience study determined as of October 1, 2018. In the course of the analysis, we compiled plan experience from October 1, 2008 through September 30, 2018. While we cannot verify the accuracy of all of the information provided, the supplied information used for performance of the annual actuarial valuations was reviewed for consistency and reasonableness. As a result of this review, we have no reason to doubt the substantial accuracy of the information and believe it has produced appropriate results. The purpose of this study is to review the current actuarial assumptions to determine which changes, if any, are necessary in order to achieve the objective of developing costs that are stable, predictable, and represent our best estimate of anticipated experience. It is important to remember that the ultimate cost of your retirement plan is independent of any actuarial assumptions or methods. This cost will be the sum of the benefits paid from the plan and the administrative expenses incurred, less any net investment gains received. The specific assumptions and methods investigated throughout the remainder of this study are as follows:  UAAL Amortization Method & Payroll Growth Rate  Investment Return  Salary Increases  Retirement Rates  Withdrawal Rates  Disability Rates The balance of this Report presents details of the experience analysis. In addition, the report also contains the corresponding actuarial impact on the City’s funding requirements and Unfunded Actuarial Accrued Liability (UAAL) for any proposed changes. To the best of our knowledge, this report is complete and accurate in all aspects. The undersigned is familiar with the immediate and long-term aspects of pension valuations, and meets the Qualification Standards of the American Academy of Actuaries necessary to render the actuarial opinions contained herein. All of the sections of this report are considered an integral part of the actuarial opinions. Respectfully submitted, FOSTER & FOSTER, INC. By: Douglas H. Lozen, EA, MAAA ACTUARIAL STANDARDS OF PRACTICE Background The Actuarial Standards Board has provided coordinated guidance through a series of Actuarial Standards of Practice (ASOP) for measuring pension obligations and determining pension plan costs or contributions. The ASOPs that apply specifically to valuing pensions are as follows: ➢ ASOP No. 4, Measuring Pension Obligations and Determining Pension Plan Costs or Contributions, which ties together the standards shown below, provides guidance on actuarial cost methods, and addresses overall considerations for measuring pension obligations and determining plan costs or contributions ➢ ASOP No. 27, Selection of Economic Assumptions for Measuring Pension Obligations ➢ ASOP No. 35, Selection of Demographic and Other Noneconomic Assumptions for Measuring Pension Obligations ➢ ASOP No. 44, Selection and Use of Asset Valuation Methods for Pension Valuations ➢ ASOP No. 51, Assessment and Disclosure of Risk associated with Measuring Pension Obligations and Determining Pension Plan Contributions (applicable for valuations performed after November 1, 2018) Please note that the contents displayed throughout the remainder of this report are in compliance and consistent with the above -mentioned Actuarial Standards of Practice. When applicable, further details of the ASOP associated with the reviewed actuarial assumption will be provided in the experience analysis, which is the basis for the remainder of the report. Additional Required Communications Please keep in mind that future actuarial measurements may differ significantly from current measurements due to such factors as the following: • Plan experience differing from that anticipated by the economic or demographic assumptions • Changes in demographic assumptions • Increases or decreases expected as part of the natural operation of the methodology used • Changes in plan provisions or applicable law The data used for purposes of this report was compiled from previous actuarial valuations, unless otherwise indicated. City of Sebastian Police Officers' Retirement System FOSTER & FOSTER 13 EXPERIENCE REVIEW SUMMARY UAAL Amortization Method & Pavroll Growth Rate The plan's Unfunded Actuarial Accrued Liability (UAAL) is currently being funded in such a manner that each new layer of UAAL will be amortized as follows: • Experience Gains and Losses 10 years • Method and Assumption Changes 20 years • Benefit Changes 30 years This amortization method was approved by the Board, based on our recommendation following discussions between Foster and Foster and actuaries with the Florida Division of Retirement. Most of our Florida clients implemented this methodology in conjunction with the October 1, 2008 valuation. Based on guidance from the "Actuarial Funding Policies and Practices for Public Pension Plans" as developed by the Conference of Consulting Actuaries Public Plans Community (CCA PPC), we believe that the current amortization methodology should be amended in a manner that will reduce funding volatility and deferral of costs associated with benefit changes to future taxpayers. The report published by the CCA PPC concluded that amortizing experience gains and losses over a period of less than 15 years contributes to volatility in the City's contribution requirements and that the ideal amortization period would be 15-20 years. Additionally, the report states that benefit changes should be amortized over a period no greater than 15 years. This would avoid deferring too much cost to future generations of taxpayers. We recommend amortizing all future layers of UAAL over a 15-year period instead of the current 10/20/30 structure. We believe this will achieve the goal of maintaining stable and predictable funding, without deferring too much cost to the future. Additionally, we propose lowering the payroll growth assumption to 0.00%, effectively moving to level dollar amortizations of the UAAL. We recommend making this change for all current and future UAAL bases. The balance of this report was determined assuming that the above recommended change to the UAAL amortization method will be approved. Therefore, the increase or decrease in the UAAL resulting from each of the proposed assumption changes discussed throughout the remainder of this report were amortized as a level dollar over a 15-year period. Please note the change to a 15-year amortization period has no initial funding impact as it does not affect any existing layers of UAAL. The funding impact of the proposed change to the payroll growth assumption is illustrated below. Current Proposed Citv Contribution UAAL 23.1 % 3.74 million 25.1 % 3.74 million City of Sebastian Police Officers' Retirement System FOSTER & FOSTER 14 Economic Assumptions ASOP No. 27, Selection of Economic Assumptions for Measuring Pension Obligations, provides guidance to actuaries in selecting (including giving advice on selecting) economic assumptions — primarily investment return, discount rate, and salary scale — for measuring obligations under defined benefit pension plans. Throughout the remainder of this section, we have used the standards set forth in ASOP No. 27 as a guideline for reviewing and if applicable, selecting proposed changes to the following economic actuarial assumptions: • Investment Return • Salary Increases Please keep in mind that ASOP No. 27 states that "the best an actuary can do is to use professional judgment to estimate possible future economic outcomes based on past experience and future expectations, and to select assumptions based upon that application of professional judgment." Investment Return The assumed rate of investment return is currently 7.30% per year compounded annually, net of investment related expenses. We believe that the decision to modify the investment return assumption shall be made based upon input from your investment consultant, reflecting any significant changes to the asset allocation, and their judgment of capital market returns. Keep in mind, however, that this assumption should reflect the best estimate of expected investment returns until the last participant in the Plan dies, many decades hence. In determining the investment return assumption, one determines the average rate of return the Fund expects to achieve based on the target allocation along with the corresponding capital market assumptions. Foster & Foster is an actuarial firm, and we do not have the required expertise to produce our own capital market assumptions. For purposes of illustrating this concept, we have included information disclosed in the GASB 67/68 disclosures provided by your investment consultant, shown in the table on the following page. Please keep in mind this return is net of investment related expenses, as well as the 2.10% inflation projected by the investment advisor, suggesting an expected return of approximately 7.35%. This would suggest that the current assumption of 7.30% seems in line with long- term expectations. The average assumed rate of return for our Florida public pension clients is 7.47% for the fiscal year ended September 30, 2018. Additionally, the Florida Retirement System announced in 2018 that their investment return assumption was being lowered to 7.40%, which is consistent with a national trend of reducing the investment return assumption. City of Sebastian Police Officers' Retirement System FOSTER & FOSTER 15 Target Asset Allocation vs. Capital Market Assumptions September 30, 2018 Long Term Expected Expected Asset Class Target Allocation Real Rate of Return Investment Return Domestic Equity 52.50% 6.65% 3.49% International Equity 12.50% 6.09% 0.76% Fixed Income 25.00% 2.20% 0.55% Real Estate 5.00% 3.30% 0.17% MLPs 5.00% 5.50% 0.28% Total 100.00% 5.25% Inflation 2.10% Total Nominal 7.35% Although the current 7.30% assumption is supported by the target allocation and long-term expected return by asset class, we have determined the impact on the Plan's liabilities and annual required contribution if the investment return assumption was decreased from 7.30% to 7.00%. Results of this assumption change are provided below: 7.30% (Current) 7.00% Salary Increases Citv Contribution UAAL 25.1 % 3.74 million 29.1 % 4.44 million The salary increase assumption is used to project a member's salary from the valuation date until the assumed retirement age and plays an important role in measuring individual pension costs and obligations. Salary increase assumptions are typically represented as a flat salary scale assumption or a service -based assumption. A flat salary scale assumption assumes that a member will get the same rate of salary increase for all years of service, whereas a service -based table may assume different rates based on the member's longevity with the plan. Currently, the valuation utilizes a service -based table of assumed salary increases as implemented with the October 1, 2013 valuation (based on experience for the period October 1, 1999 through September 30, 2012). As illustrated on the following page, we have analyzed the actual plan experience from October 1, 2008 through September 30, 2018 using actual salary increases based on completed service at the time of each annual valuation. City of Sebastian Police Officers' Retirement System FOSTER & FOSTER 16 Salary Increase Experience October 1, 2008 through September 30, 2018 Service Exposed Prior Year Actual Expected Actual Salaries Salaries Salaries Increase < 1 26 1,073,892 1,203,700 1,245,716 15.84% 1-3 54 2,498,185 2,634,749 2,683,050 5.47% 4 - 13 164 9,263,175 9,651,196 9,948,648 4.11% 14 + 77 6,569,821 6,844,658 6,819,473 3.81% Total 321 19,405,073 20,334,303 20,696,887 4.79% Expected Proposed Increase I Increase I 16.00% 16.00% 7.40% 6.50% 7.40% 5.80% 3.80% 3.80% I 6.66% I 5.35% As exhibited above, the average salary increase over the past ten fiscal years fell short of the assumption for the first 13 years of Credited Service. The proposed assumption incorporates this experience by decreasing the assumption between one and thirteen years of service. The net result is a decrease over all service points of approximately 1.31%, with the funding and liability impact shown in the below table. Current Proposed Citv Contribution 25.1% 23.7% 3.74 million 3.78 million City of Sebastian Police Officers' Retirement System FOSTER & FOSTER 17 Demographic Assumptions ASOP No. 35, Selection of Demographic and Other Noneconomic Assumptions for Measuring Pension Obligations, provides guidance to actuaries in selecting (including giving advice on selecting) demographic and other noneconomic assumptions for measuring obligations under defined benefit pension plans. Over the following pages, the following applicable assumptions will be reviewed: • Retirement Rates • Withdrawal Rates • Disability Rates Please note we did not evaluate the mortality assumption because Chapter 2015-157, Laws of Florida required that beginning with the October 1, 2016 valuation, all public plans must use the mortality table used by the Florida Retirement System (FRS) actuary in one of their previous two actuarial valuations. In conjunction with the October 1, 2016 actuarial valuation we incorporated the mortality assumption used in the July 1, 2015 FRS valuation. An additional change to active mortality rates was adopted with the July 1, 2016 FRS valuation, which was incorporated with your October 1, 2017 valuation. The July 1, 2017 and 2018 FRS valuation use the same mortality assumptions as in 2016. Accordingly, no change to the mortality assumption is applicable at this time. It is important to point out, however, that the Society of Actuaries underwent a comprehensive study with the primary objective to develop mortality tables comprised solely of public -sector lives. Additionally, contributors to the study were asked to identify plan members as teachers, public safety personnel, or general employees. This helped provide new insights into the composition of gender -specific pension mortality by factors such as job category, specifically in the public sector. We are unsure at this point in time if the FRS actuary will adopt a version of the public -sector mortality tables referenced above in conjunction with the July 1, 2019 actuarial valuation. Please keep in mind that any changes to the mortality assumption in conjunction with the FRS July 1, 2019 valuation would need to be adopted by your plan no later than the October 1, 2020 actuarial valuation in accordance with state law. Generally, demographic assumptions are based on actual plan experience with additional considerations for current trends. ASOP No. 35 states "the actuary should use professional judgment to estimate possible future outcomes based on past experience and future expectations, and select assumptions based upon application of that professional judgment." ASOP No. 35 also states that "a reasonable assumption is one that is expected to approximately model the contingency being measured and is not anticipated to produce significant cumulative actuarial gains or losses ... the actuary should not give undue weight to past experience when selecting demographic assumptions." Demographic trends generally remain consistent over time, absent significant changes in plan provisions. Therefore, the best true indicator of future experience is past experience. For each assumption, this analysis compares actual experience for the studied time period to the current assumptions used for purpose of the annual valuation. City of Sebastian Police Officers' Retirement System FOSTER & FOSTER 18 Note that actuarial assumptions reflect average experience over long periods of time. A change in actuarial assumptions generally results when experience over a period of years indicates a consistent pattern. Proposed changes to the demographic assumptions better reflect actual plan experience over the studied time period. The proposed changes also meet the objective of developing costs that are stable, predictable, and represent our best estimate of anticipated future experience. Retirement Rates A retirement rate is the associated probability at a specific point in time that a member will retire, given that they have attained the eligibility requirements for retirement. The associated cost due to retirement experience is determined by the age at which members actually retire. The current provisions and assumptions for Early and Normal Retirement are as follows: • Early Retirement: The attainment of age 50 with 10 years of Credited Service, reduced 3% per year for commencement prior to the Normal Retirement Date. o The current assumption is that 5% of eligible Members are assumed to elect Early Retirement during each year of eligibility. • Normal Retirement: The earlier of 1) Age 55 with 10 years of Credited Service, and 2) Age 52 with 25 years of Credited Service. o The current assumption is that upon satisfying the requirements for Normal Retirement eligibility, Members are assumed to retire immediately, unless still employed. If still employed, those Members are assumed to continue working one additional year. Since 2008, one out of the three eligible members elected Normal Retirement immediately upon first eligibility. As a result, we are recommending an assumption based on the Member's years of Credited Service. For Members with less than 25 years of Credited Service, the proposed rates are displayed below. We propose assuming 100% retirement upon attaining 25 years of Credited Service. This revision would eliminate the assumption that Members eligible for Normal Retirement on the valuation date remain employed one additional year before retiring. Normal Retirement Experience for Members with Less than 25 Years of Credited Service October 1, 2008 through September 30, 2018 Normal Age Retirement Opportunities 55 2 56 2 57 + 5 Total 9 Actual Actual Expected Retirement Retirements Retirements Rates 1 2 50% 0 2 0% 2 5 40% 3 9 33% Expected Retirement Rates 100% 100% 100% 100% Proposed Retirement Rates 50% 50% 100% 78% City of Sebastian Police Officers' Retirement System FOSTER & FOSTER 19 Normal Retirement Experience for Members with 25 Years of Credited Service October 1, 2008 through September 30, 2018 Normal Actual Expected Proposed Credited Actual Expected Retirement Retirement Retirement Retirement Service Retirements Retirements Opportunities Rates Rates Rates 25 + 2 0 2 0% 100% 100% Total I 2 I 0 I 2 I 0% I 100% I 100% In the last ten years, there were significantly higher than expected early retirements in the year in which members first became eligible for subsidized early retirement benefits. This was followed by fewer than expected early retirements in the following years. We recommend increasing the early retirement assumption to 30% in the first year in which members become eligible for early retirement. Early Retirement Experience October 1, 2008 through September 30, 2018 Early Actual Expected Actual Expected Proposed Age Retirement Retirement Retirement Retirement Opportunities Retirements Retirements Rates Rates Rates 50 9 4 0.45 44% 5% 30% 51 4 0 0.2 0% 5% 5% 52 3 0 0.15 0% 5% 5% 53 4 0 0.2 0% 5% 5% 54 5 2 0.25 40% 5% 5% Total I 25 I 6 I 1.25 I 24% I 5% I 14% The funding impact of the proposed changes to the assumptions for Normal and Early Retirement is illustrated below. Citv Contribution UAAL Current 25.1% 3.74 million Proposed 25.2% 3.64 million City of Sebastian Police Officers' Retirement System FOSTER & FOSTER 110 Withdrawal Rates The withdrawal rate, or termination rate, is the probability that a member will separate employment from a cause other than disability, death, or retirement. Currently, the valuation utilizes a service -based table of assumed salary increases as implemented with the October 1, 2013 valuation (based on experience for the period October 1, 1999 through September 30, 2012). As shown in the table below, the number of total terminations was greater than expected based on the current assumption over the last ten years, exceeding the expectation for members with less than one year of service and those with two years of service. Based on experience during the last ten years, we are recommending a change to the assumption as set forth in the Proposed Termination Rate column of the below table. Withdrawal Experience October 1, 2008 through September 30, 2018 Actual Service Exposed Actual Expected Termination Terminations Terminations Rate 0 25 6 3 24.0% 1 17 1 2 5.9% 2 21 4 1 19.0% 3-4 38 2 2 5.3% 5-9 87 3 4 3.4% 10 - 14 70 3 2 4.3% 15 - 19 29 1 0 3.4% 20+ 21 1 0 4.8% Total I 308 I 21 I 15 I 6.8% Expected Proposed Termination Termination Rate Rate 14.0% 15.0% 14.0% 15.0% 5.7% 15.0% 5.7% 4.0% 5.7% 4.0% 2.8% 4.0% 0.0% 0.0% 0.0% 0.0% I 5.0% 5.6% If the assumed rates are changed to those shown in the Proposed Termination Rate column, the City's annual contribution requirement will decrease according to the below table. Citv Contribution UAAL Current 25.1 % 3.74 million Proposed 24.7% 3.76 million Disabilitv Rates The disability rate assumption is the probability that a member will become disabled while an active member in the plan. Currently, the valuation uses an age -based assumption for predicting the occurrence of future disabilities. Over the studied time period, there were two disability retirements granted, while only one was expected. Based on this information, we propose increasing the assumed rates to double the current rates at each age. If the assumed rates are changed to those proposed, the City's annual contribution requirement will increase according to the below table. Citv Contribution UAAL Current 25.1% 3.74 million Proposed 25.3% 3.69 million City of Sebastian Police Officers' Retirement System FOSTER & FOSTER 111 Conclusion As established throughout earlier sections of this report, certain assumption changes for future valuation reports are recommended, based on Plan experience since the prior Experience Study. These recommendations are based on sound actuarial principles, reflect our best estimate of anticipated future experience, and are designed for the objective of developing costs that are stable and predictable. Below is a summary of the impact on the City's funding requirements and the Plan's UAAL for each of the proposed changes, if made independently of one another. If all the proposed changes were adopted including the UAAL change, at a 7.30% investment return assumption, the City's required annual contribution increases by approximately 0.7% of payroll. Adoption of the combined assumptions at a 7.00% investment return assumption increases the City's annual required contribution by approximately 4.6% of payroll. Summary of Results Citv Contribution UAAL Funded Ratio ' Current Assumptions 23.1% 3,740,617 79.9% UAAL Method Change 25.1% 3,740,617 79.9% Investment Return (7.00%) 29.1% 4,438,053 77.0% Salary Increases 23.7% 3,782,262 79.8% Retirement Rates 25.2% 3,664,731 80.3% Withdrawal Rates 24.7% 3,761,193 79.8% Disability Rates 25.3% 3,687,530 80.2% Combination at 7.30% 23.8% 3,652,889 80.3% Combination at 7.00% 27.7% 4,342,797 77.4% ' Funded Ratio determined as ratio of Actuarial Value of Assets to Actuarial Accrued Liability. City of Sebastian Police Officers' Retirement System FOSTER & FOSTER 112 C O N D (D NV M a0 M k9 C 0 0 e 3 t(J N m N 0 V k N 0 V 0 0 v Z ,L L J D J y N m U fR p a N e o ! 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