The URL can be used to link to this page

Home My WebLink About04-24-2020 Agendac� sva HOME OF PELICAN ISLAND PUBLIC NOTICE — POLICE PENSION BOARD VIRTUAL MEETING April 24, 2020 The Police Pension Board will hold a regular quarter meeting Tuesday, April 24, 2020 at 10:00 a.m. The Meeting will be conducted by using Zoom technology. The Public can be provided the necessary connection information by calling City Hall at (772) 388-8226, should they wish to participate virtually. AGENDA 1. CALL TO ORDER Chairperson 2. ROLL CALL Chairperson 3. VOTE TO EXCUSE ABSENT BOARD MEMBER(S) Chairperson 4. APPROVAL OF MINUTES: A. December 10, 2019 Regular Quarterly Meeting Chairperson 5. OLD BUSINESS A. Approval of Payments: Ken Killgore, Plan Administrator a. Salem Trust — October/December $ 6,960.00 b. Highland Capital — October/December Fixed Income $ 2,919.16 c. Highland Capital — January/March Fixed Income $ 2,996.85 d. Highland Capital — October/December Equities $10,582.40 e. Highland Capital—January/March Equities $ 8,187.36 f. Boston Partners — October/December $ 2,194.30 g. Fiera Capital — October/December $ 1,627.93 h. Renaissance — October/December $ 1,862.06 i. Brookfield Public Securities Group - October/December $ 784.20 j. Morgan Stanley Consulting — October/December $ 3,375.00 k. Klausner, Kaufinan, Jensen & Levinson — Nov./Dec. $ 3,841.25 1. Klausner, Kaufman, Jensen & Levinson — Jan./Feb. $ 1,032.50 in. Klausner, Kaufinan, Jensen & Levinson — March $ 1,227.50 n. City of Sebastian — Minutes Preparation for December $ 162.00 6. PUBLIC INPUT Chairperson A. The Public can submit questions and or comments to the Plan Administrator's email at kkillizore(&.citvofsebastian.ora. Any such questions or comments will be read aloud during this time. 7. NEW BUSINESS A. Adoption of Administrative Policy Governing the Use of Bonni S. Jensen, Board Attorney Audio -Video Conferencing of Teleconferencing to Conduct Virtual Public Police Pension Board Meetings B. Report from Investment Monitor Scott Owens, Morgan Stanley C. Legal Updates — Klausner, Kaufman, Jensen & Levinson Bonni S. Jensen, Board Attorney 8. BOARD MEMBER REPORTS AND COMMENTS Chairperson 9. PLAN ADMINISTRATOR REPORTS AND COMMENTS Ken Killgore, Plan Administrator 10. NEXT SCHEDULED OUARTERLY MEETING: June 16, 2020 Chairperson ADJOURN 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 of the proceedings is made which includes the testimony and evidence upon which the appeal is based. In accordance with Florida Statute 286.26: Persons with disabilities needing assistance to participate in any of these proceedings should contact the Administrative Services Department at least 48 hours prior to the meeting at kkill¢ore(dcitvofsebastian.ore or telephone 772-388-8205. CITY OF SEBASTIAN POLICE PENSION BOARD MINUTES OF REGULAR QUARTERLY MEETING DECEMBER 10, 2019 Call to Order -- Chairman Gillette called the meeting to order at 10:06 a.m. II. Roll Call Present Board Members: Jason Gillette0*1?44�r 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 Doug Lozen, Foster & Foster David Wheeler, Morgan Stanley Andy Mcllvaine, Morgan Stanley Steve Stack, Highland Capital Ann -Marie Fraser, Procurement Contracts Manager Janet Graham, Technical Writer III. Vote to Excuse Absent Board Member Chairman Gillette announced that Christine Vicars was excused, and there is another absent board member because of a resignation of Mr. Moyer Motion to excuse absentee was made by Mr. Williamson and seconded by Mr. Wood. Motion carried unanimously by voice vote. IV. Approval of Minutes -- Regular Meeting of September 17, 2019 Chairman Gillette asked if there were any changes or corrections to the Minutes of September 17, 2019 as presented. Hearing none, Chairman Gillette called for a Motion to accept the Minutes as written. Motion to accept the Minutes as presented was made by Mr. Williamson, seconded by Mr. Wood, and approved unanimously by voice vote. POLICE PENSION BOARD PAGE 2 MINUTES OF REGULAR MEETING OF DECEMBER 10, 2019 V. Old Business A. Approval of Payments 1. Salem Trust -- July/September $4,715.00 2. Highland Capital -- July/September Fixed Income 2,920.45 3. Highland Capital -- July/September Equities 9,719.84 4. Boston Partners -- July/September 1,930.29 5. Fiera Capital -- July/September 1,497.53 6. Renaissance -- July/September 1,723.97 7. Brookfield Public Securities Group -- July/September 803.34 8. Morgan Stanley Consulting -- July/September 3,375.00 9. Klausner, Kaufman, Jensen & Levinson -- September 2,561.25 10. Travelers Insurance -- Year Beginning Nov. 1, 2019 2,585.00 11. City of Sebastian -- Minutes Preparation for Sept. 216.00 12. City of Sebastian -- Administration Oct./Sept. 6,000.00 Motion to approve the payments as listed above was made by Mr. Williamson, seconded by Chairman Gillette, and approved unanimously by voice vote. B. Correspondence from Salem Trust on Block Trades and Basis Point Fees Mr. Killgore has contacted Salem Trust regarding these questions. Salem Trust informed Mr. Killgore that they had had some reorganization. They are recommending that this Board hold off, as the new organization should result in some fee options that may save this Plan money. Mr. Killgore said he isn't sure if he will hear before our next meeting, but hopefully before the meeting after that. He will put it on next meeting's agenda if he has the information by then. C. Approval of Deferred Retirement Option Plan (DROP) Calculations Mr. Killgore stated that the member who has applied has submitted all the required paperwork, and Mr. Killgore has included in the Board members' packets the calculations he has made based on the ordinance. Mr. Killgore has records of what the applicant's payouts would be for the next five years based on the earnings he will get, so this is all set up. Chairman Gillette called for a motion to approve this matter. POLICE PENSION BOARD PAGE 3 MINUTES OF REGULAR MEETING OF DECEMBER 10, 2019 A motion to approve the applicant's entry into the DROP plan as calculated by the actuary was made by Mr. Williamson, seconded by Mr. Wood, and approved unanimously via voice vote. VI. Public Input -- None VII New Business A. Presentation of October 1, 2019 Actuarial Report by Actuary Ccar.wu P' t Doug Lozen of Foster & Foster provided copies of the quarterly -report to members of the Board for their perusal. He stated this report is the latest valuation that incorporates assumption changes. The funded status of the Plan is much the same as last year, meaning how much the Plan's assets are compared to promised benefits. They are now more conservative with the investment return assumption. It has been lowered to 7.2% with this report. He explained more fully the changes in the return assumption. He continues to recommend the Board discuss the investment assumption for future years. Mr. Williamson inquired of Mr. Lozen at what point should there be concern by the investors. Mr. Lozen stated that there is no real specific level of a funded status for panic, but he is more interested that the assumptions are reasonable. If that's true, then the funded ratio will grow as it needs to grow. His firm took care of those assumptions with the last experience study. Mr. Williamson asked at what point is there cause for concern on the part of the investors. Mr. Lozen reiterated that his main concern is that the assumptions are reasonable. Mr. Killgore asked Mr. Lozen, if the City should put in more than the required dollars, would Mr. Lozen suggest that, if the City has available funds or additional funds that could be put in by the City, that would be of benefit. Mr. Lozen answered yes, that would be of benefit to the Plan. Mr. Williamson asked when the next time is that there will be an experience study. Mr. Lozen states that happens approximately every five years or so. There ensued a lengthy discussion about "smoothing," and Mr. Lozen explained how that affected the investment. Mr. Lozen stated that, if the Board is satisfied with the report, it will have to be approved by the Board and sent to the State. (/A -.3 14p, 1 i� POLICE PENSION BOARD PAGE 4 MINUTES OF REGULAR MEETING OF DECEMBER 10, 2019 A motion to approve the Foster & Foster study was made by Mr. Williamson, seconded by Mr. Wood, and approved unanimously via voice vote. Ms. Jensen addressed Mr. Lozen regarding the State requiring on an annual basis the expected rate of return to be set over the short term, the midterm, and the long term. Given the fact that an actuarial valuation that has a 7.2% expected rate of return has been approved, the State likes those two numbers to match. Thus, there is a motion needed. A motion to approve the 7.2% expected rate of return was made by Chairman Gillette, seconded by Mr. Williamson, and approved unanimously via voice vote. B. Report from Investment Monitor/Continue Discussion on Manager Search Andy Mcllvaine from Morgan Stanley stood in for Scott Owens, as Mr. Owens had a conflict in his schedule. Mr. Mcllvaine stated he will address the stock market and the economy as well as the search for the large cap growth manager changeover. He stated that the portfolio did well on a relative and absolute basis. For the quarter, it was relatively choppy. He described the volatility in the market surrounding the news about the trade deal with China as well as other geopolitical uncertainties. He stated there is a lot of news surrounding the geopolitical uncertainties in the market that is actually creating the volatility. There has never been seen this much volatility in the market surrounding conjecture. It is not thought that this is going to go away anytime soon. He listed one of the things that is keeping the market up is consumption that came out better than what was predicted. Consumption is now 88% of GDP. Prior, it was closer to 75%. Corporate earnings are good; however, last quarter 88% of companies were guiding lower with their projections moving forward. In this quarter 77% of those companies actually beat those projections. In other words, companies are hedging, meaning they're not expecting quite as good numbers as have been seen in the past. The political landscape affects stock prices, and many companies are stockpiling cash because they are not certain what is going to happen with the political landscape. Those companies are also waiting to see what happens with interest rates. He stated the future for the market will still be stable, but there is not expected to be the double-digit returns that have been seen in the past. He then reviewed the quarterly performance summary, copies of which were provided to all the Board members (SEE ATTACHED). POLICE PENSION BOARD 'r PAGE 5 MINUTES OF REGULAR MEETING OF DECEMBER 10, 2019 At this point, David Wheeler took over, and he further reviewed the quarterly report where it shows the breakdown of returns. He pointed out that for the quarter the Plan is slightly above its benchmark. Mr. Wheeler addressed the large cap growth summary, copies of which were provided for the Board members. He reviewed that Highland Capital, which is a large cap manager, has underperformed for the last two years. He recommended continuing to diversify to what is hoped to be best -in -class managers. Four managers were presented: Highland and three others for comparison purposes. The three other managers are Clearbridge Investments, Polen Capital, and Sawgrass Asset Management. In reviewing the performance of those four managers, Highland has the poorest performance, while Polen has the highest. However, Polen is the highest risk and also has higher fees. There was much discussion among the Board members and Mr. Wheeler regarding these investment managers. Mr. Wheeler suggested, if they were going to pair a manager with the index, he would suggest pairing Clearbridge Investments and the large cap growth index. Polen has a higher return, but they are also higher risk and have higher fees. Mr. Williamson requested that when Mr. Wheeler comes to the next Pension Plan meeting he present a proposal for adding an index as well as Clearbridge. That way, the entire Board would be present, and they could digest the information better. Chairman Gillette and Mr. Wood were agreeable to that plan. C. Report from Investment Managers -- Highland Capital Steve Stack with Highland Capital announced that Todd Wishnia was not able to attend today. He also announced that Grant McMurray has retired. Mr. Williamson asked Mr. Stack to relay to Mr. McMurray how much the Board appreciated his service over the years. Mr. Stack reviewed the market as regards geopolitical issues. He stated that with the Plan having a diversified portfolio, it has done well over the last three to five years. That is still continuing on in this quarter as well. Highland understands why they are underperforming. They have lowered the number of securities from a little over 100 to about 65 presently, which has helped the portfolio. D. Discussion of Cyber Liability Insurance i. Amendments to Current Contracts Requiring $5 million Coverage �A-s POLICE PENSION BOARD PAGE 6 MINUTES OF REGULAR MEETING OF DECEMBER 10, 2019 Mr. Killgore stated the City has acquired a new Procurement Contracts Manager, Ann - Marie Fraser. She is present today. She has also studied the pension accounts and the pension contracts. In reviewing those and working with the Board's attorney, staff has drafted amendments to the current contracts. One of the key factors of those amendments is that they would be required to carry $5 million of cyber liability insurance. That has become a serious problem and a concern for all. The $5 million originally was presented by Ms. Jensen as a suggested amount. Mr. Killgore stated that, with the Board's concurrence, the investment managers carry that amount of cyber liability insurance. Mr. Killgore stated that the City's general liability insurance policy has no provision for cyber liability coverage. With the City's liability policy thefe4& a $2 million level, and he has been considering whether the City should increase its level as well. But the City's policy does not cover pension boards, because pension boards are considered a separate entity from the City. Should an incident occur with the City's internet activity, it could be ransomware where there might be an amount of a half -million or more demanded. There would be requirements to notify anyone who could be affected by information that was unauthorized and distributed that did damages to people where their personal information, information that the City interchanges with the actuary, and information we interchange with money managers is exposed. Mr. Killgore recommends strong consideration of the amount of coverage. The amount of $5 million is a matter of judgment from the Board as well as consideration of the premium. He has contacted the City's insurance broker, and for every $1 million of coverage, premiums in the marketplace are $10,000 to $12,000. Ms. Jensen stated that there is a Lloyds of London policy that a lot of boards are using which provides $250,000, $500,000, $750,000, or $1 million, and the premiums are very reasonable for that type of liability coverage. She stated the $250,000 coverage is about $650, much more reasonable. Following up on her firm's recommendation of the $5 million, she knows that Foster & Foster actually has gone out to investigate in the market, and they actually were quoted a substantially high premium. That could be because of the difference between the Board's exposure as an entity vs. the actuarial side or their administrative arm which contains a lot of personal identifiable information. So it could be an underwriting risk that they're looking at. I�P A 40qA_ POLICE PENSION BOARD I PAGE 7 MINUTES OF REGULAR MEETING OF DECEMBER 10, 2019 Mr. Killgore further explained that the insurance policies generally also help with legal assistance or advice on consultants. His staff looks at everything involving the City and does everything they can to protect the City's information systems and provide additional backups using the cloud, etc. But in today's world one never knows when that element of society is going to find a way to get in. Mr. Killgore stated his question to the Board is whether they think these contracts should be introduced to everyone who is connected in any way to the Pension Plan, i.e. the actuary, the attorney's office, and the money managers, and say we require $5 million, or whether another kind of rationale should be applied. He also mentioned that the City's policy covers City employees. So even as an employee of the City sitting on this Board, that employee has the coverage individually from the City. But non -City employees are not covered. An extended discussion was had among the Board members, Ms. Jensen, Mr. Killgore, and the investment managers and actuary concerning this subject. Ms. Jensen stated that the most involvement this Board would have would be notification requirements that would have to be done. Ms. Jensen posed the question to the investment managers that, if someone hacked into their computer system, would the hacker be able to affect what that manager does for this Pension Plan. The answer was no, not with the security systems they have in place. Mr. Williamson suggested that, since Highland and Foster & Foster each has $2 million in cyber liability insurance, the Pension Plan require that they have at least $2 million in order to ensure that they don't lessen or cancel their cyber liability insurance coverage anytime in the future. Mr. Killgore added that it should be a requirement that these investment managers notify the Police Pension Plan if there are any changes to their policies. After discussion, it was decided that Mr. Killgore will contact Highland and Foster & Foster and inform them that the Pension Plan is expecting the $2 million coverage. He will also contact the other money managers as well as Graystone and find out what coverage they have, and request that it be increased to $2 million. Mr. Killgore stated that could probably be done before this Board's next quarterly meeting. All Board members as well as Ms. Jensen agreed. E. Legal Updates -- Klausner, Kaufman, Jensen & Levinson Status on Update of the Summary Plan Description POLICE PENSION BOARD PAGE 8 MINUTES OF REGULAR MEETING OF DECEMBER 10, 2019 Ms. Jensen stated that regarding the Summary Plan Description, she was delinquent in getting the paperwork to Mr. Killgore. She suggested this be added to the agenda for the next meeting. That was agreed to by the Board members. ii. Other Legal Matters Ms. Jensen has included in the Board's packet a memo about the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). A number of pension plans have asked questions about individuals who are deployed and individuals who are serving on reserve duty. Ms. Jensen stated the most important thing for this Pension Plan is to make sure that it continues people who are serving on active duty military services when they leave from employment, that the Plan continues to report them to the actuary, and that the actuary and the administrator continue to know that they belong to the Pension Plan. She stated there are statutes of the State of Florida that contain requirements that, if people leave from their employment and go to military service, they are entitled to five years of service for free. They don't have to make any contributions into the Pension Plan. So it will be necessary to follow those employees and recognize that we have a potential liability for those individuals. Ms. Jensen reviewed the other item in the memo is related to employment and the different things that must be done for people who are out on that military service -- making sure that they get the raises and/or promotions that they were entitled to during the time they're gone. Vill. Board Member Reports and Comments -- None IX. Plan Administrator Reports and Comments A. Review of Administrative Expenses Mr. Killgore has provided and reviewed the report on the administrative expenses. There were no questions or comments from the Board. B. Review of Annual Calendar of Board Activities Mr. Killgore provided a report on the Board's activities scheduled for December. He stated he is complying with everything except possibly updating the investment policy and allocation strategy. He will be working on getting that accomplished. d POLICEN PENSION BOARD f-.)PAGE 9 MINUTES OF REGULAR MEETING OF DECEMBER 10, 2019 C. Other Administrative Matters Mr. Killgore stated, regarding the materials that he needs to discuss at the Pension Plan meetings, he will be notifying the consultants that when there is a scheduled meeting date, he needs these materials in time to disseminate them to the Board before he distributes the agenda, which is usually the week before the meeting. He asks for their cooperation in that regard. X. Next Scheduled Quarterly Meeting: March 17, 2020 XI. Adjourn Chairman Gillette called for any further business. Hearing none, the meeting was adjourned at 12:13 p.m. Jason Gillette 19 4A -7 r ._ L F NA TT \1 I i lu� T January 6, 2020 City of Sebastian M05348 Debbie Krueger Sebastian Police 1225 Main Street Sebastian, FL 32958 Fee Advice for Period October 1, 2019 to December 31, 2019 Detail of Calculation: Annual Fee Quarterly Fee Flat Fee $5,000.00 $1,250.00 $500 for 6 additional accounts $3,000.00 $750.00 $5.00 Security Transactions Current Period Year To Date 9/30/2019 843 843 $5.00 12/31 /2019 992 1835 3/31 /2020 6/30/2020 (300 included in annual fee) $4,960.00 Total $6,960.00 Total Amount Due $6,960.00 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 BLVD., SUITE 750 TAMPA, FL 33607 TEL (877) 382-5268 FAX (813)301-1295 www.salemtrust.com M Wand Capital MANAGEMENT, LLC January 3, 2020 Invoice Number: 22489 MANAGEMENT FEE: SEBASTIAN POLICE OFFICERS' RETIREMENT FIXED INCOME 12/31/2019 Portfolio Value: $ 3,892,216.77 Quarterly Fee Based On: $ 3,892,217 @ 0.30% per annum $ 2,919.16 Quarterly Fee: $ 2,919.16 For the Period 10/1/2019 through 12/31/2019 Wiring Instructions: First Tennessee Bank ABA# 084000026 Acct# 22-0001278809 For Credit to: Highland Capital Management, LLC. *****Note new checking account number******* Paid by Debit Direct ($ 0.00) Please Remit $ 2,919.16 Mailing Check: Highland Capital Management, LLC 6075 Poplar Ave, Suite 703 Memphis, TN 38119 ighland Capital MANAGEMENT, LLC April4, 2020 MANAGEMENT FEE: 3/31/2020 Portfolio Value: Invoice Number: 23652 SEBASTIAN POLICE OFFICERS' RETIREMENT FIXED INCOME Quarterly Fee Based On: $ 3,995,804 @ 0.30% per annum Quarterly Fee: For the Period l/1/2020 through 3/31/2020 Wiring Instructions: First Tennessee Bank ABA# 084000026 Acct# 22-0001278809 For Credit to: Highland Capital Management, LLC. *****Note new checking account number******* $ 3,995,804.41 $ 2,996.85 Paid by Debit Direct Please Remit Mailing Check: Highland Capital Management, LLC 6075 Poplar Ave, Suite 703 Memphis, TN 38119 $ 2,996.85 ($ 0.00) $ 2„996.85 �It/ �""' 0 ':� I 1 .7 y/s/� a� ighland Capital January 3, 2020 Invoice Number: 22527 MANAGEMENT FEE: SEBASTIAN POLICE OFFICERS' RETIREMENT 12/31/2019 Portfolio Value: $ 8,467,558.72 Exclude Dividend Accrual - 1,639.35 Billable Value $ 8,465,919.37 Quarterly Fee Based On: $ 8,465,919 @ 0.50% per annum $10,582.40 Quarterly Fee: $10,582.40 For the Period 10/1/2019 through 12/31/2019 Paid by Debit Direct ($ 0.00) Please Remit $ 10.582.40 ccoun Account Value Ouarterly Fee (sebast0l) SEBASTIAN POLICE OFFICERS' RETIREMENT VALUE $ 3,808,707.56 $ 4,760.88 (sebastB) SEBASTIAN POLICE OFFICERS' RETIREhIENT GROWTH $ 3,856,142.49 $ 4,820.18 (sebasti4) SEBASTIAN POLICE OFFICERS' RETIREMENT ADR $ 801,069.32 $ 1,001.34 Total $ 8,465,919.37 $ 10,582.40 Wiring Instructions: First Tennessee Bank ABA# 084000026 Acct# 22-0001278809 For Credit to: Highland Capital Management, LLC. *****Note new checking account number******* Mailing Check: Highland Capital Management, LLC 6075 Poplar Ave, Suite 703 Memphis, TN 38119 S-� A, ip -,Nand Capital MANAGEMENT, LLC April4, 2020 Invoice Number: 23651 MANAGEMENT FEE: SEBASTIAN POLICE OFFICERS' RETIREMENT 3/31/2020 Portfolio Value: $ 6,551,077.76 Exclude Dividend Accrual - 1,191.01 Billable Value $ 6,549,886.75 Quarterly Fee Based On: $ 6,549,887 @ 0.50% per annum $ 8,187.36 Quarterly Fee: $ 8,187,36 For the Period 1/1/2020 through 3/31/2020 Paid by Debit Direct ($ 0.00) Please Remit $ 8,187.36 Account Account Value Quarterly Fee (sebast0l) SEBASTIAN POLICE OFFICERS' RETIREMENT VALUE $ 2,741,116.85 $ 3,426.40 (sebasti3) SEBASTIAN POLICE OFFICERS' RETIREMENT GROWTH $ 3,237,008.85 $ 4,046.26 (sebasti4) SEBASTIAN POLICE OFFICERS' RETIREMENT ADR $ 571,761.04 $ 714.70 Total $ 6,549,886.75 $ 8,187.36 Wiring Instructions: First Tennessee Bank ABA# 084000026 Acct# 22-0001278809 For Credit to: Highland Capital Management, LLC. *****Note new checking account number******* Mailing Check: Highland Capital Management, LLC 6075 Poplar Ave, Suite 703 Memphis, TN 38119 ."� 0A � BostonPartners Ken Killgore City of Sebastian 1225 Main Street Sebastian, FL 32958 Invoice Date: 12/31 /2019 Invoice Number: 20191231-690-A Billing Portfolio(s): - City of Sebastian Police Officers' Retirement System Billing Period: 10/01 /2019 to 12/31 /2019 SUMMARY FOR INVESTMENT SERVICES Current Period Amount Due: $ 2,194.30 Current QUARTEREND Fee Invoice Period Due 30-60 Dars 60-90 Days Over 90 Da; s City of Sebastian Police Officers' Retirement 20191231-690-A 2,194.30 System JFC> a 1�mtl true _ 2,194.30 Please contact James Vitelli directly at 212-908-0149 with any billing inquiries. As always, you may also direct any questions to your Relationship Manager a, I9 c� 3a RP/ 1/6 b We would appreciate receiving your payment along with the remittance slip within 30 days of receipt of this Invoice. WIRE / TRANSFER FUNDS TO: JP Morgan Chase; ABA #021000021; ACCT #066-654610 REFERENCE: Boston Partners Ref Acct #: 00844 MAIL REMITTANCES 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 Total 2.194.30 eriod Rule - Custom (USD) City of Sebastian Police Officers' Retirement System - 00844 Monthly Values 09/30/2019 Market Value 10/29/2019 Capital Change 10/31/2019 Market Value 11/30/2019 Market Value 12/03/2019 Capital Change 12/31/2019 Market Value Adjusted Input Annual Fee Schedule (IMFEE - USD) 0.00 to 25,000,000.01 and above Quarterly Fee Calculation (IMFEE - USD) 877,719.35 " 100.00 BPS Fee Details: Total IMFEE ( Fee Total: Invoice Summary Fee Totals: 25,000,000.00 855,597.17 (15,000.00) 850, 319.86 886,090.16 (15,000.00) 896,748.02 " 90 / 360 = Schedule Total: Fee Total For IMFEE: Total Amount Due: 855,597.17 850,319.86 886, 090.16 896, 748.02 $ 877,719.35 100.00 BPS 80.00 BPS 2,194,30 $ 2,194.30 2,194.30 2,194.30 2,194.30 $ 2,194.30 TF, January 21, 2020 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 October 1st thru December 31st, 2019 Portfolio Value as of 12-31-19 $ 868,228.12 868,228 @ 0.75 % per annum 1,627.93 Quarterly Management Fee $ 1,627.93 TOTAL DUE AND PAYABLE $ 1,627.93 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: Citi Private Bank 1 Court Square, 22nd Floor Long Island City, NY 11120 Routing #: 021000089 Acct. #: 4974013748 Account Name: Fiera Capital Inc. To pay by check: Payable to Fiera Capital Inc. Attn: Myron Charas 10050 Innovation Dr, Suite 120 Dayton, OH 45342 Billing inquiries should be directed to: Myron Charas and BillingFCI@fieracapital.com 937-388-1437 s/A J rienaissancer Investment Management January 06, 2020 Mr. Kenneth W. Killgore Administrative Services Director City of Sebastian 1225 Main Street Sebastian, FL 32958 Billing Period: FROM 10/01/2019 TO 12/31/2019 Custodian Account No: Account #: - City of Sebastian Police Officers Retirement System Portfolio VaIue................................................... Amount Due, PAYABLE UPON RECEIPT: ............................ FEE CALCULATION '(Rate x Portfolio Value) x (N of days In quarter/ q of days In year) Rate Anol)ed: For Assets Under Manaaement Amount Due 0.6500 % On the remainder: 1,136,545 1.862.06 Total Fee: 1,862.06 $1,136,545.27 $1,862.06 Please compare this fee blll prepared by onr firm to your custodial account statement for any discrepancies. Minor variations cony occur because of reporting dales, accrual methods of iaferest and dividends, and other facte,'L Your custodial statement is the offitiRl record of your Recount. IfYOU me mat receiving statements front your custodian at least quarterly, if (here have been any changes in your financial situation, investment objectives, or if you wish to initiate or modify any reasonable restrictions on the mmrngerne»t of yoar nceouml, please sadly hlnry Meiners at Sf1.72]-4554 or nrcmQreninveont. lei Dlx�a /1-k� Return this section with your fee to the address below or in the enclosed envelope: RENAISSANCE INVESTMENT MANAGEMENT 3551 Solutions Center #773551 Chicago, IL 60677-3005 Acet: IE0496 Custodian Account No: 50 LAST RIVERCENTER BOULEVARD - SUITE 1200 COVINGTON, KY 41011 - 800.837.3863 - 513.723.4500 - FAX 513.723.4512 . wwm,rcninv.cora J rookfield City of Sebastian Police Officers Retirement System 3040002617 1225 Main Street Sebastian, FL 32958 SUMMARY FOR INVESTMENT MANAGEMENT SERVICES Invoice Hate 02/04/2020 Invoice Is n ber 20191231-350-A Billing Period 10/01 /2019 to 12/31 /2019 Billing Portfolios SEBASTIAN - City of Sebastian Police Officers Retirement System Total Affiowit Due $784.20 * See attached worksheet for calculation details �7�y.2fl RPP.� ✓� 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 Group LLC Should you have any questions regarding this invoice, please email BPSGaccountsreceivable@brookfield.com /A Page 1 of 2 s 1� j Invoice Dante 02/04/2020 Invoice Number 20191231-350-A IPeriod Market Value (USD) City of Sebastian Police Officers Retirement System - SEBASUAN 12/31 /2019 Market Value 622,246.19 Total Adjusted Market Values $622,246.19 Quarterly Fee Calculation (Investment Management Fee - USD) Billable Assets Basis Points Billable Days Fee 622,246.19 50.000 92/365 784.20 Invoice Summary 12/31 Fee Total for Investment Management Fee 784.20 Total Fee 784.20 Total Amount Due � $784.20 Page 2 of 2 anuary 23, 2020 'illl�lll��l�li�lllilt ��I�'II�I��111��11��111"11 000032 MSHS97A1 000000 746 070 CITY OF SEBASTIAN POLICE ATTN: KENNETH KILLGORE 1225 MAIN ST. SEBASTIAN FL 32958 Graystone Consuiting- A business of Morgan Stanley Invoice Number: 10129920023 Morgan Stanley Financial Advisor www.morganstanley.com IMPORTANT NOTICE INVESTMENT ADVISORY FEE PAYMENT REQUIRED ACTION REQUIRED — PLEASE REMIT PAYMENT IN THE ENCLOSED BUSINESS REPLY ENVELOPE We value you as a client and thank you for the opportunity to serve your investment needs. Please see below for the investment advisory fee(s) due. ACCOUNT CLIENT NAME 745-038962 CITY OF SEBASTIAN POLICE Total Fee: Prior Balance: Net Amount: For additional details please see Invoice Detail and Remittance Instructions on pages fo follow. TOTAL FEE AMOUNT $3,375.00 $3,375.00 $0.00 $3,375.00 * 3, 3-1<'00 A . r Investments and services offered tbrougb Morgan Stanley Smitb Barney LLC. Member SIPC. ' Graystone Consulting is a business of Morgan Stanley, Iof5 S 000032 MSHS97A1 000094 THIS PAGE INTENTIONALLY LEFT BLANK 2of5 DVISORY INVOICE DETAILS Account: 745-038962 Billing Period Number of Days Hard Dollar Fee Fee Amount Graystone Consulting - A business of Morgan Stanley Invoice Number: 10129920023 10/01/2019 — 12/31/2019 , �' �k Investments and services offered tbrougb Morgan Stanley Smab Barney LLC, Member SIPC. Graystone Consulting is a business of Morgan Stanley. 92 $13, 500.00 $3,375.00 3of5 000032 MSHS97AI 000095 THIS PAGE INTENTIONALLY LEFT BLANK 4 of 5 EMITTANCE INSTRUCTIONS Graystone Consulting - A business of Morgan Stanley Invoice Number: 10129920023 Payment Due: 2/22/2020 Please return payment using this page and include it with your check in the enclosed business reply 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 745-038962 Total Fee: Prior Balance: Net Amount: Total Fee Amount $3,375.00 $3,375.00 $0.00 $3,375.00 By Wire Bank Name: Citibank, New York ABA: 021000089 For Benefit Of Morgan Stanley & Co. Incorporated Beneficiary Account; 40611172 For Further Credit to: 980000163 Ref; Invoice 0101299 By Check Morgan Stanley Global Banking Operations ATTN: Advisory Fee Billing 1300 Thames Street Wharf, 4th Floor Baltimore, MD 21231-9907 Ref: Invoice 10129920023 Investments and services offered tbrougb Morgan Stanley Smitb Barney LLC. Member SIPC. 0 Graystone Consulting is a business of Morgan Stanley. 5of5 Ali 000032 MSHS97AI 000096 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 Attn: KEN KILLGORE 1225 MAIN STREET SEBASTIAN, FL 32958 wwwAlausnerkaufinan.coin Tax I.D.: 45-4083636 December 31, 2019 Bill # 25140 CLIENT: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM :170042 MATTER: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM :170042 Professional Fees Date Attorney Description Hours Amount 12/09/19 BSJ PREPARE FOR MEETING; REVIEW 0.50 212.50 AGENDAAND MEETING BACKUP, INCLUDING MINUTES 12/10/19 BSJ TRAVEL TO AND FROM MEETING 1.50 318.75 (SPLIT WITH PORT ST. LUCIE POLICE) 12/10/19 BSJ ATTEND MEETING; DISCUSSION WITH 2.50 1,062.50 DAVID WHEELER REGARDING REPORT MATERIALS 12/10/19 PARA PREPARATION OF MEETING 0.30 37.50 MATERIALS FOR UPCOMING MEETING. 12/11/19 CW EMAIL TO KEN KILLGORE REGARDING 0.10 42.50 CYBER INSURANCE QUOTES, 12/12/19 BSJ REVIEW AND REVISE SPD 0.50 212.50 12/20/19 CW RESEARCH AND DRAFT UNIFORMED 0.20 85.00 SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT MEMO. 12/30/19 CW REVIEW EMAIL FROM MARY JEAN 1.00 425.00 GLOUDEMEN OF FOSTER AND FOSTER REGARDING EXHIBITA. REVISE AND FINALIZE 2019 SUMMARY PLAN DESCRIPTION. EMAIL SPD TO KEN KILGORE FOR DISTRIBUTION. Total for Services 6.60 $2,396.26 Continued. S k'' lient: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM December 31, 2019 Matter: 170042 - SEBASTIAN POLICE OFFICERS' RETIREMENT Page 2 CURRENT BILL TOTAL AMOUNT DUE $ 2,396.25 Past Due Balance AMOUNT DUE DlA a��ao 1,445.09 $3,841.25 lausner, Kaufinan, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 7080 N.W. 4th Street Plantation, Florida 33317 Tel. (954) 916-1202 www.kiausnerkaufinan.com Fax (954) 916-1232 Tax I.D.: 45-4083636 SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM November 30, 2019 Attn: KEN KILLGORE Bill # 24950 1225 MAIN STREET SEBASTIAN, FL 32958 CLIENT: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM :170042 MATTER: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM :170042 Professional Fees Date Attorney Description Hours Amount 11/08/19 CW EMAILS TO AND FROM KEN KILLGORE. 3.00 1,275.00 EMAIL TO FOSTER AND FOSTER RE SUMMARY PLAN DESCRIPTION. UPDATE AND REVISE SPD. 11/12/19 CW REVIEW AND REVISE 2019 SUMMARY 0.30 127.50 PLAN DESCRIPTION 11/20/19 BSJ REVIEW AND RESPOND TO EMAIL 0.10 42.50 FROM KEN KILLGORE REGARDING PAY RATE FOR CASH OUT OF ACCUMULATED SICK AND VACATION LEAVE Total for Services 3.40 $1,445.00 CURRENT BILL TOTAL AMOUNT DUE $ 1,446.00 Past Due Balance Ml) ] AMOUNT DUE $1,445.00 lausnelr, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 7080 N.W. 4th Street Plantation, Florida 33317 Tel. (954) gib- l 202 Fax (954) 916-1232 SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM Attn: KEN KILLGORE 1225 MAIN STREET SEBASTIAN, FL 32958 CLIENT: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM MATTER: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM Cate Attorney 02104/20 BSJ 02125/20 PARA 02/25/20 BSJ 02/27/20 BSJ Professional Fees Description REVIEW COMMUNICATIONS FROM SALEM TRUST REGARDING UPCOMING TRANSITION EMAIL TO K. KILGORE REGARDING MEETING MATERIALS REVIEW EMAIL FROM MANNY ANON; TELEPHONE CALLS WITH KEN KI LLGORE REVIEW AND RESPOND TO EMAIL FROM CINDY WATSON REGARDING AWARD LETTER Total for Services CURRENT BILL. TOTAL AMOUNT DUE Past Due Balance AMOUNT DUE www.kl ausnerkaufman. corn Tax l.D.: 45-4083636 February 27, 2020 Bill # 25526 :170042 :170042 Hours Amount 0,10 42.50 0,10 12.50 0.10 42.50 0.20 8&00 0.50 $182.50 $ 182.50 850.00 $1,032.60 ausner, Kaufinan, 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 I.D.: 454083636 SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM January 31, 2020 Attn: KEN KILLGORE Bill # 25334 1225 MAIN STREET SEBASTIAN, FL 32958 CLIENT: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM :170042 MATTER: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM :170042 Professional Fees Date Attorney Description Hours Amount 01/02/20 BSJ REVIEW OPERATING RULES; REVISE 0.50 212.50 FOR DATES OF APPROVAL; REVIEW MINUTES; EMAIL TO KEN KILLGORE 01/06/20 BSJ REVIEW AND RESPOND TO EMAILS 0.20 85.00 FROM STEVE STACK REGARDING CYBERINSURANCE 01/22/20 BSJ REVIEW HB 1113/SB 1270 REGARDING 0.10 42.50 FIDUCIARY DUTY AND TRAINING; PREPARE MEMO; TELEPHONE CALL WITH KEITH BRINKMAN 01/30/20 BSJ REVIEW AND RESPOND TO EMAIL 0.80 340.00 FROM MINDY JOHNSON REGARDING AMENDMENT TO CUSTODIAN AGREEMENT; REVIEW CHANGES 01/31/20 BSJ EMAILS WITH COURTNEY GRIMMICH 0.40 170.00 AND CINDY WATSON REGARDING GRIMMICH BENEFIT Total for Services 2.00 $850.00 Continued . . lient: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM Matter: 170042 - SEBASTIAN POLICE OFFICERS' RETIREMENT January 31, 2020 Page 2 CURRENT BILL TOTAL AMOUNT DUE Past Due Balance AMOUNT DUE $ 860.00 mx $860.00 ausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 7090 N.W. 4th Street Plantation, Florida 33317 Tel. (954) 916-1202 www.kinusnorkaufinan.com Fax (954) 916-1232 Tax I.D.: 454083636 SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM March 31, 2020 Attn: KEN KILLGORE Bill # 25737 1225 MAIN STREET SEBASTIAN, FL 32958 CLIENT: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM :170042 MATTER: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM :170042 Professional Fees Date Attorney Description Hours Amount 03/02/20 CW RESEARCH AND DRAFT NOTARY MEMO 0.20 85.00 03/02/20 BSJ REVIEW EMAIL FROM SALEM TRUST 0.10 42.50' REGARDING WEBLINK 03/10/20 BSJ REVIEW SALEM TRUST TRANSITION 0.10 42.50 SUMMARY 03/11/20 PARA EMAIL K. KILGORE REQUESTING 0.20 25.00 MARCH 17TH AGENDAAND MEETING PACKAGE, SIGNED IPS, FIDUCIARY LIABILITY CERTIFICATES, 4TH QUARTER PERFORMANCE REPORTS AND APPROVED 2019 ANNUAL AUDIT 03/11/20 BSJ TELEPHONE CALL WITH MINDY 0.50 212.50 JOHNSON AND MARK RHEIN REGARDING ADDENDUM TO CONTRACT. 03/11/20 BSJ REVIEW EMAIL FROM FOSTER & 0.10 42.50 FOSTER REGARDING CYBER SECURITY 03/16/20 PARA REVIEW E-MAIL FROM K. KILLGORE 0.10 12.50 RE: CANCELLATION OF MARCH 17TH MEETING DUE TO CORONAVIRUS 03/16/20 BSJ TELEPHONE CALL WITH KEN KILLGORE 0.20 85.00 03/16/20 BSJ EMAILS WITH STEVE BARDIN 0.10 42.50 REGARDING ANNUAL REPORT REQUIREMENTS FOR 4 ANNUAL MEETINGS AND IMPACT OF CORONA VIRUS 03/16/20 SAK RESEARCH SUNSHINE LAW / MEETING 0.30 127.50 ISSUES Continued.. . lient: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM March 31, 2020 Matter. 170042 - SEBASTIAN POLICE OFFICERS' RETIREMENT Page 2 Professional Fees Continued... Date Attorney Description Hours Amount 03/17/20 BSJ REVIEW AND RESPOND TO EMAIL 0.10 42.50 FROM KEN KILLGORE REGARDING BOSTON PARTNER CONTRACT ADDENDUM 03/30/20 BSJ REVIEW AND REVISE SALEM TRUST 0.80 340.00 AGREEMENT ADDENDUM; EMAIL WITH MARK RHEIN 03/31/20 BSJ REVIEW EMAIL FROM MARK RHEIN; 0.20 85.00 EMAIL REVISED SALEM TRUST ADDENDUM TO ANN-MARIE FRASER 03/31 /20 BSJ RESEARCH FEDERAL CARES ACT AND 0.10 42.50 APPLICATION TO GOVERNMENTAL PENSION PLANS Total for Services 3.10 $1,227.60 CURRENT BILL TOTAL AMOUNT DUE Past Due Balance AMOUNT DUE $ 1,227.50 0.00 $1,227.50 �j �/,aa7S JANET M. GRAHAM 97 OVERLOOK DRIVE SEBASTIAN, FL 32976 INVOICE FOR DECEMBER 2019 12/2/2019 Veterans Administration Advisory 4 pages $ 72.00 12/3/2019 Natural Resources Board 8 pages 144.00 12/10/2019 Police Pension Board 9 pages 162.00 12/16/2019 Parks and Recreation Board 8 pages 144.00 12/19/2019 Planning and Zoning Commission 9 pages 162.00 TOTAL $ r684.00 A SA Y\ City of Sebastian Police Pension Board of Trustees Administrative Policy Governing the Use of Audio -Video Conferencing or Teleconferencing to Conduct Virtual Public Board of Trustee Meetings BACKGROUND Florida Statute, §286.011 governs Florida's Sunshine Law. Pursuant to this section, "[aIll meetings of any board or commission of any state agency or authority or of any agency or authority of any county, municipal corporation, or political subdivision ... at which official acts are to be taken are declared to be public meetings open to the public at all times, and no resolution, rule, or formal action shall be considered binding except as taken or made at such meeting ... "; On March 1, 2020, the State Surgeon General and State Health Officer declared a Public Health Emergency exist in the State of Florida as a result of COVID-19; On March 9, 2020, by Executive Order 20-52, the Governor of Florida declared a state of emergency for the entire State of Florida as a result of COVID-19; On March 16, 2020, the President of the United States and the Center for Disease Control and Prevention recommended individuals to practice significant social distancing measures including but not limited to working from home and avoiding gatherings of more than 10 people. AUTHORITY On March 20, 2020, the Governor of Florida issued Executive Order 20-69 suspending any Florida Statute requiring a physical quorum be present for a local government body to meet at a specific public place. Pursuant to Executive Order 20-69, government bodies may utilize audioconferencing and or teleconferencing to conduct its public meeting. This Executive Order expires May 8, unless extended by the Governor. City of Sebastian Code of Ordinances, Section 58-48, vest control, management, operation and administration of the Plan in the Board of Trustees (the "Board"). The Board is also authorized adopt administrative policies necessary for the proper operation of the Plan. Section 58-48(e) provides that the duties and responsibilities of the Board shall include: "to establish uniform rules and procedures to be followed for administrative purposes, benefit applications an all matters required to administer the system". ADMINISTRATIVE POLICY 1. Effective April 24, 2020, this Board may conduct its meetings and meet the quorum requirements via audio -video conferencing and or teleconferencing. 2. Public participation is of the upmost importance; therefore, the Board may choose to use either audio - video conferencing or teleconferencing communication to conduct virtual meetings. Page 1 of 2 1A, - I City of Sebastian Police Pension Board of Trustees Administrative Policy Governing the Use of Audio -Video Conferencing or Teleconferencing to Conduct Virtual Public Board of Trustee Meetings 3. If the Board chooses to use audio -video conferencing it may use software which allows for maximum public participation. For example, those platforms may include: (a) Zoom, (b) GoTo Meeting, (c) Microsoft Teams, which provides a feature for ADA compliance and close captioning, or (d) WebX. 4. The meeting notice will provide an e-mail address where the public can submit questions and or comments. Any such comments or questions will be read aloud during the public comment section of the meeting agenda. 5. In the event the Board chooses to use teleconferencing communication, it will take such steps as are necessary to effectuate public access, including any applicable e3mail and telephone access point. 6. In the event the City of Sebastian requires meetings to be live streamed, the Board will comply with those requirements through the City system. 7. The meeting notice will state that any individuals needing ADA accommodations to attend a virtual meeting should contact the City MIS Division at least 48 hours prior to the meeting at (772) 388-8226. The notice shall also identify the specific type of audio -video conferencing to be used and include instructions on how to join and participate virtually. 8. In the event the available technology is insufficient to permit all interested parties to attend and participate, the virtual meeting must be terminated until such time as the problem has been resolved. There is no obligation for the Board to provide communication devices for public use. 9. All other Sunshine Law provisions must be followed including: (a) posting of meeting notice, (b) taking of meeting minutes, and (c) making minutes available for public inspection. 10. The meeting notice must also contain information regarding the means to access the virtual meeting as well as the agenda. 11. This Administrative Policy will remain in effect until May 8, 2020 unless Executive Order 20-52 is extended by the Governor of Florida, in which case this Policy shall be automatically extended for as long as the Executive Order is in effect. The Board reserves the right to amend this Administrative Policy from time to time as it deems appropriate. The Board shall retain the right to exercise its discretion in interpreting this rules and in resolving any disputes that may arise hereunder. Nothing in this Administrative Policy creates a contractual or substantive right for benefits from the Plan. This administrative Policy was adopted by the Board of Trustees at a public meeting, on April 24, 2020. Pension Board Chairman Page 2 of 2 IIa� I�iill 1 .A PAR I VERSIHPP OF PROFESSIONAL ASSOC 1q I IUYI %rTORNFYS AT LAW MEMORANDUM TO: ALL CLIENTS FROM: KLAUSNER, KAUFMAN, JENSEN & LEVINSON RE: COVID 19 MESSAGE - SOCIAL DISTANCING UPDATE #3 DATE: APRIL 71 2020 To continue to keep everyone safe, our office will remain in remote operation at least through the end of April, and perhaps later as public safety needs dictate. Remember you can contact any of us through the office phone line 954-916-1202 or via email. With regard to meetings, Governor DeSantis has suspended the requirement that a quorum be present in the public meeting place. This allows Pension Boards of Trustees to meet via video or telephone conference. Our lawyers have been meeting with Boards using these methods and they have been very well received. Our office has the capability to host both video and telephone conferences with you through a wide variety of programs. If you have questions, please call to discuss. Some questions have come up about using a remote signature application. We are researching the most secure way to get this done. We believe that it can be effectively used for the Administrator and Board of Trustee members to get payments made and money invested, provided that the Custodian will accept this method of authorization. Verified email addresses for Participants and two factor authentication can be useful when dealing with known Participants. The situations which cause the most concern are vested terminated Participants who are approaching the Board for the first time and joint annuitants and beneficiaries of deceased pensioners who are unknown to the Board or Administrator. If you do use a program that allows for electronic signatures, please talk to your information technology providers for the best way to use the program. If you have legal questions, please call us to discuss. 7080 NORTHWEST 4TH STREET, PLANTATION. FLORIDA 33317 PHONE: (954) 916-1202 - FAX: (954) 916-1232 www.klausnerkaufman.com We are experiencing some delay in getting IMEs set for the disability applications and so we continue to think that it will take longer than normal to process disability applications, at least until the end of May. We continue to be committed to serve your needs during this crisis and to do our best to protect the retirement benefits of our nation's public servants. To all of you and your families, we wish good health and safety. W:\Wdocs\LLP\BONNI\CLTMEMO\00151883.WPD MEMORANDUM To: Board of Trustees From: Klausner, Kaufman, Jensen and Levinson Subject: Federal CARES Act - Special Rules for Use of Retirement Funds Date: April 2, 2020 Important Note: Guidance from the IRS concerning the application of the CARES Act (H.R. 748) has been changing daily. This memo represents our considered view of the proper application of H.R. 748, as of the date issued, after reviewing the Act and available resources. Many sections call for Treasury Regulations which have not yet been issued. If you have any questions, email Bonni Jensen (bon ni(c-)robertdklausner.com), Stu Kaufman (stu(a)robertdklausner.com), or Bob Klausner (bob0)robertdklausner.com). This memo will be posted on our website, https://klausnerkaufman.com and will be updated as additional guidance becomes available. &2202 (Special distribution rules for retirement funds) • The 10% early distribution penalty under IRC Section 72(t) is waived for the 2020 calendar year for any corona virus related distributions which are less than $100,000. • The amount distributed can be repaid within 3 years if the member makes contributions in an equal amount to the plan from which the distribution was taken or to another qualified plan in which the person who received the Special Rules for Use of Retirement Funds Page 2 of 3 distribution is a beneficiary. In that case, the amount repaid will be treated as a trustee -to -trustee transfer. Plans will need guidance from the IRS regarding the tracking of contributions and how to report the distribution on the 1099-R or other IRS approved forms, as may be developed. • A coronavirus related distribution is any distribution made from an eligible retirement plan from January 1, 2020 and before December 31, 2020 to an individual who is diagnosed (including spouse or dependent) with SARS-CoV-2 or COVID 19 by a test approved by the CDC. In addition, a coronavirus distribution can mean any distribution to a participant or spouse who has suffered adverse financial consequences as a result of: o being quarantined; o being furloughed; o having work hours reduced; o being unable to work due to lack of childcare; or o closing or reduced hours of a business owned or operated by individual due to such virus or disease. Employee Certification: A Plan Administrator may rely on the certification of an employee that the distribution was a Coronavirus related distribution. An eligible retirement plan includes a governmental defined benefit or defined contribution plan as defined in IRC 408(c)(8)(B). If any portion of an eligible rollover distribution is attributable to payments or distributions from a designated Roth account (as defined in section 402A), an eligible retirement plan with respect to such portion shall include only another designated Roth account and a Roth IRA. • The taxation of any Coronavirus related distribution can be spread over three taxable years, starting in the current year, unless the tax payer opts out. o Coronavirus related distributions are not rollover eligible; and o Are treated as meeting the distribution requirements of 457 plans and IRAs. • Loans from Qualified Employer Plans (from plans which permit loans): o There is an increase in the amount of permissible loans during the 180 00152561. RTF;1 Special Rules for Use of Retirement Funds Page 3of3 day period beginning with the enactment of CARES (Enacted March 27, 2020 so 180 days is September 23, 2020). The maximum loan is $100,000, instead of $50,000.00. Additionally, the rule regarding the loan not being more than '/2 of the non -forfeitable accrued benefit is changed to not more than the present value of the nonforfeitable accrued benefit. All of the other rules still apply (cannot be more than $100,000 out in the last year etc.). o Repayment can be delayed for qualified individuals (individuals eligible for a Coronavirus distribution) with an outstanding loan. - If the paid in full due date is between March 27, 2020 and December 31, 2020, the due date is delayed for one year. 2203 (Temporary waiver of RMD rules) The Temporary Waiver of Required Minimum Distribution Rules only applies to defined contribution plans. • The temporary waiver only applies to governmental 403(a), 403(b), and 457(b) plans, and IRAs, but only for calendar year 2020. • Eligible Rollover Distributions are amended to change the dates from 2009 to 2020 for purposes of allowing the required minimum distribution to be treated as an eligible rollover distribution. §3608 (Funding rules) The delay in payment of minimum required contributions is applicable only to ERISA plans and not governmental plans. 00152561.RTF;1