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HomeMy WebLinkAbout11-06-2025 GEP MeetingCity of Sebastian, Florida General Employees Pension Board Meeting Minutes November 6, 2025 11:00 A.M. 1. Call to Order The meeting of the City of Sebastian General Employees Pension Board was called to order at 11:00 a.m. on November 6, 2025. 2. Roll Call Trustees Present: Brad Taylor Jim Mann Harry Marshall Rick Matthews RobertVotaw Also Present: Jeremy Langley, Florida Municipal Pension Trust Fund (FMPTF) Brent Chudachek, Lorium Law Brian Stewart, City of Sebastian, Chief Financial Officer Brian Benton, City Manager 3. Officer Elections Trustee Jim Mann nominated Robert Votaw to serve as Chairman. Trustee Matthews seconded the motion. The motion carried unanimously. Chairman Votaw nominated Trustee Brad Taylor to serve as Vice Chair. Trustee Matthews seconded the motion. The motion carried unanimously. 4. Public Comment There was no public comment S. Sunshine Law and Fiduciary Responsibility Attorney Brent Chudachek reviewed the fiduciary duties of the trustees and provided an overview of the Florida Sunshine Law. He also informed the trustees of the requirement to file the Florida Commission on Ethics Form 1 within 30 days of appointment and annually by July 1 thereafter. 6. FMPTF Trust Joinder and Asset Portfolio Selection Mr. Langley provided an overview of the Florida Municipal Pension Trust Fund (FMPTF), including administrative services and quarterly investment reporting. He explained that FMPTF offers three asset allocation options: 1. 50% Equities / 40% Fixed Income / 10% Real Estate 2.60% Equities / 30% Fixed Income / 10% Real Estate 3.70% Equities / 20% Fixed Income / 10% Real Estate Mr. Langley indicated that the 50% equity option is conservative and did not recommend it. He noted that while the 70% equity allocation involves greater volatility, it has historically produced higher returns, with a 10-year return of 7.96% compared to 7.14% for the 60% allocation. There was a discussion regarding administrative flexibility. Mr. Langley stated that he believed a 90-day timeframe would apply if the Board later decided to change administrators. Mr. Stewart explained that other administrative options were evaluated during the City's budget workshop, including FRS and Foster & Foster, and that the Florida League of Cities option was selected due to cost efficiency and services provided. Trustee Taylor made a motion to approve the FMPTF Trust Joinder. Trustee Mann seconded the motion. The motion carried unanimously. There was further discussion regarding employee contributions, which have been withheld since the plan's effective date of October 1, 2025. Mr. Stewart stated that employees were provided informational presentations and may choose their contribution percentage. Contributions will be forwarded to the Trust each pay period. The City will provide initial funding of $300,000, and any excess funds above the annual requirement will be reflected as an advance employer contribution. Trustee Taylor made a motion to adopt the 70% equity allocation. The motion failed due to lack of a second. Trustee Mann made a motion to adopt the 60% equity allocation. Trustee Matthews seconded the motion. The motion passed 4-1. 7. Full -Service Agreement Mr. Langley reviewed the Full -Service Plan option, which includes meeting attendance, preparation of agenda packets, and completion of meeting minutes. The fee for this service is $750 per meeting. Trustee Matthews made a motion to approve the Full -Service Agreement. Trustee Marshall seconded the motion. The motion carried unanimously. B. Florida Commission on Ethics - Form i Mr. Chudachek reviewed the Form 1 financial disclosure requirements, noting that the disclosure must be filed within 30 days of appointment and annually by July 1. 9. Fiduciary Liability Insurance Discussion Mr. Langley explained that fiduciary liability insurance is available to protect Board members, with premiums generally based on asset size and paid from plan assets. Mr. Stewart stated the City would also review options. The Board requested that quotes be obtained for review at a future meeting. 10. Board Attorney and Actuary Discussion Mr. Langley reviewed the role of the pension attorney. Chairman Votaw asked Mr. Stewart for feedback regarding Mr. Chudachek's services during plan establishment. Mr. Stewart expressed satisfaction with his communication and responsiveness. Trustee Marshall made a motion to retain Brent Chudachek of Lorium Law as pension attorney. Trustee Matthews seconded the motion. The motion carried unanimously. The Board expressed a preference for virtual attendance at meetings. Mr. Langley then reviewed the role of the plan actuary. He stated that FMPTF utilizes Chuck Carr of Southern Actuarial Services and that his services typically reflect a 50-75% cost savings compared to other actuaries. Mr. Stewart noted that Mr. Carr was utilized during the establishment of the pension plan and that the City was satisfied with his services. The City also received a quote from Foster & Foster, which was approximately 50% higher. Trustee Mann made a motion to retain Chuck Carr of Southern Actuarial Services as plan actuary. Trustee Taylor seconded the motion. The motion carried unanimously. Contracts will be presented at the next meeting for review. 11. Summary Plan Description (SPD) Mr. Langley explained that the Summary Plan Description (SPD) is a legal document outlining plan provisions and must be provided to participants. Trustee Taylor made a motion to direct Mr. Chudachek to draft the Summary Plan Description. Trustee Marshall seconded the motion. The motion carried unanimously. 12. Trustee Comments Trustees expressed enthusiasm and optimism regarding the establishment of the plan and thanked the City for its efforts. 13. 2026 Meeting Schedule The following meeting dates were proposed and approved: February 26, 2026 May 28, 2026 August 27, 2026 November 5, 2026 Trustee Mann made a motion to approve the 2026 meeting schedule as presented. Trustee Marshall seconded the motion. The motion carried. 14. Adjournment The meeting was adjourned at 12:41 p.m.