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City of Casselberry Police Officers' and Firefighters' Pension Board of Trustees Minutes of December 3, 2014 Meeting Page 3 of 6 members retire with disability benefits, two members termed before vesting, and seven new hires entered the plan. The Governmental Accounting Standards Board Statement Number 67 (GASB 67) is a new ruling which requires that the Unfunded Actuarial Liability statement be replaced with the Net Pension Liability of the Sponsor. While most plans have a goal of an 80% ratio for the Plan Fiduciary Net Position, the City's plan has been able to achieve a 109% ratio. In addition, another new requirement is to report the expected long term rates of return with the additional calculations of a 1% decrease in funding and a 1% increase in funding. Those figures are now a part of the valuation. MOTION: Member Hettler moved to accept the Actuarial Valuation Report as of October 1, 2014 as presented by Foster & Foster. Motion was seconded by Member Van Ore. Motion carried unanimously by voice vote 5 -0. Mr. Donlan discussed with the board the new reporting requirements enacted by Florida Senate Bill 534 (SB534). The state has established a publicly accessible database to record valuation data from all local pension plans statewide. While Foster & Foster utilizes the commonly accepted ARCA 2000 mortality tables when calculating life expectancy, the state is requiring the use of a different, more positive, life expectancy assumption. In addition, the state wants the actuary to calculate and report valuations based on the current investment return assumption and a second calculation 2% lower. He is recommending that the request a third calculation based on 2% over the current investment return assumption. Finally, the state is requiring that a timeframe be projected as to when the Plan would run out of funding should no further contributions be made. The additional fees that Foster & Foster are requesting to run these additional calculations is $3,000 for the mandatory assumption of 2% less and $500 for the optional assumption of 2% more. The valuation must now be posted on the City website on the same page as the annual budget; however it is the board's decision which of the three versions is posted. MOTION: Member Strenth moved to authorize Foster & Foster to perform the work necessary to comply with SB534 without the additional 2% higher calculation. Motion was seconded by Member Van Ore. Motion passed by voice vote 4 -1 with member Hettler dissenting. C. The Bogdahn Group - Quarterly Financial Review Presentation Mr. Mike Welker, The Bogdahn Group, presented a performance review of investment activity for the quarter ending September 30, 2014. Asset Allocation: The Plan is currently in compliance with the Investment Policy. Domestic Equity was overweight by 6.4% for the quarter while International Equity was underweight. This was done by design as domestic has outperformed international in the past year. The plan had $244,997 in cash because the Investment Manager raised money at the end of the quarter and that money has now been invested in American Core Realty; moving the Real Estate allocation toward 10% with funding primarily from Domestic Fixed Income. Bogdahn Group proposed taking some profits from the US Stock Market to deploy a new investment strategy called Global Tactical Asset Allocation. Performance: For the quarter, the plan net of fees and custodial charges was down 2.5% and the policy was down 0.6 %, however the fiscal year number was very good at a 10.42 %.