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City of Casselberry Police Officers' and Firefighters' Pension Board of Trustees Minutes of August 18, 2015 Meeting Page 3 of 6 MOTION: Member Van Ore moved to remove all funds from Manning & Napier Domestic Equity and place them with the combination presented as Blend #1; 45% in Wells Fargo Fund Management's Advantage Premiere Large Growth, 45% in Dreyfus Corporation's Strategic Value, and 10% in Delaware Investments' Small Cap Core. Motion was seconded by Member Hufford. Motion carried unanimously by voice vote 4 -0. C. Salem Trust Company — Firm Update Mr. Brian Bizzell, Relationship Manager, introduced Mr. Mark Rhein, Salem Trust Company's Chief Operating Officer. Mr. Rhein discussed Statement on Standards for Attestation Engagements No. 16 (SSAE- 16), Reporting on Controls at a Service Organization for Salem Trust. The S SAE -16 report for the period ending June 30, 2014 returned a less than favorable review from Salem Trust's auditors. No assets or cash were discovered as misplaced, trades were not discovered to be placed in the wrong accounts, and no retirees were negatively affected. This was the only time in the company's history that they have not received a favorable review. Mr. Rhein assured the board that Salem Trust Company took action as a result of the 2014 report and expects to receive an unqualified opinion on the S SAE- 16 for the period ending June 30, 2015. 6. New Business A. Proposed Ordinance, Amending Chapter 62 of City Code Board Attorney Scott Christiansen discussed that Chapter 62 (Pensions and Retirement) of the City Code of Ordinances needs to be amended due to the passage of Senate Bills 172 and 1309 and changes in Internal Revenue Code. The new ordinance was drafted to make all changes necessary to incorporate the provisions of the Inter -Local Agreement between the City of Casselberry and Seminole County for the merger of the City Fire Department with the County, as it pertains to the Firefighters in the pension plan; all changes and updates required by recent changes to the Internal Revenue Code and its associated Treasury Regulations; and the addition of a Supplemental Benefit Component (Share Plan) to satisfy the recent changes to Chapters 175 and 185, Florida Statutes in Chapter 2015 -39, Laws of Florida via the two recently passed Senate Bills. SB 172 requires: 1. Each plan sponsor must create a share plan/supplemental defined contribution plan within the local law plan for the payment of special benefits. This requirement became effective July 1, 2015, but does not take full effect until the Police and Fire Departments enter into the next collective bargaining agreement. 2. New calculations will be completed by the Plan Actuary utilizing the State base premium tax revenues received in 2002 and 2012. Each year, the Actuary will calculate a new number and will discuss with the unions and the City as to how the monies will be used. a. In addition, the reserve amount must be designated. There will no longer be additional State money and no monies will be considered `frozen'. b. Provides that 50% of additional premium taxes received above the 2012 level must be split between special benefits paid into a share plan, with the other 50% being used by the City to offset defined benefit plan costs. The parties are permitted to deviate from this default outcome by mutual consent.