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Home My WebLink About2025-04-14 Police & Fire Pension Board Minutes City of Dania Beach Police and Fire Fighters Retirement System 100 W. Dania Beach Blvd Dania Beach, Florida 33004 Phone: (954) 393-9061 954-648-4448 E-mail: pfpens@gmail.com MINUTES REGULAR MEETING WOMENS CLUB – 117 NW 1ST AVENUE, DANIA BEACH, FL 33004 APRIL 14, 2025 I. CALL TO ORDER Chairman Rogers called to order at 7:06 p.m. MOTION by Al Jones SECOND: Rae Lair PASSED UNANIMIOUSLY MEMBERS PRESENT: MEMBERS ABSENT: Chairman Larry Rogers Patricia Fuccile-excused Vice Chairman Todd Neal Rich Sieb David Nuby, Jr. Rae Lair Dean Harley Richard Tarrant Al Jones ALSO PRESENT: Pedro Herrera – Sugarman, Susskind, Braswell & Herrera . Cathy David – Administrator Dina Lerner – Gabriel, Roeder, Smith & Co Debra Zidar – Fire Retiree Beneficiary Andrew Zidar – Son of Debra Zidar Soni Brown – wife of Mike Brown Mike Brown – Fire Retiree Kyle Lehman – firefighter Brian Phipps – firefighter Mike Dara-firefighter II. APPROVAL OF MINUTES MOTION by David Nuby, Jr. to accept the minutes from the February 24, 2025, regular meeting SECOND: Rae Lair PASSED UNANIMIOUSLY Page 2 of 4 III. PUBLIC COMMENT The floor was open and there was no public comment IV. CONSENT AGENDA No items listed on the Consent Agenda V. OLD BUSINESS 5.1 Ordinance 2022-27 $416.67 Additional Benefit & Pop-Up Benefit The plan’s attorney Pedro Herrera brought the trustees up to date regarding the amendment to correct the scrivener’s error in Ordinance 2022-027. Pedro contacted the city explaining the error and they were agreeable to correcting the error. An ordinance containing the scrivener error correction wording has passed the first reading with the commission in March. The ordinance corrected the wording to include surviving beneficiaries that were receiving survivor benefits at the time-10.1.2022 to continue being eligible to receive the $416.67 monthly subsidy. The second reading will be at the May 13, 2025 city commission meeting. Mike Brown asked Pedro about the previously discussed Pop-Up benefit. Pedro informed Mike that the Pop-Up benefit issue had been resolved and that the firefighter retiree, Joe Bertuccio, is currently getting the Pop-Up benefit after the passing of his wife, Sue Bertuccio. Debra Zidar inquired about the ordinance change for the $416.67 benefit. Discussion took place about adjusting the form of the supplemental benefit to match the optional form elected by the retiree (so that, for example, if the retiree initially elected a 100% J&S form at retirement, 100% of the subsidy would continue to the surviving spouse after the retiree’s death). Dina Lerner discussed the Impact Statement and the cost of adding the $416.67 to the J&S beneficiaries. Compared to the results in the October 1, 2024 actuarial valuation report, the proposed change would increase the actuarial present value of projected benefits by around $500,000. This is the total cost of the change. This total cost isn’t required to be reflected in the City’s contribution requirement all at once. Instead it is being amortized over a 5-year period. The amortization would cause the net City contribution requirement for FYE 2026 to increase by $104,100 assuming full payment on October 1, 2025. Pedro will reach out to the city manager and city attorney with a proposed amendment that would amend the Plan by changing the form of the $416.67 monthly ($5,000 per year) supplemental benefit from an annuity payable for the life of the retiree to an annuity payable in the same optional form as elected by the retiree for his or her monthly pension benefit. This item will be discussed further at the next meeting after Pedro has contacted the city. 5.2 Share Plan Todd Neal discussed the Chapter 175 benefit with the board. The Chapter 175 benefit currently pays for the 1/3 health insurance premiums that the fire retirees/beneficiaries are responsible for as the city pays 2/3 of the retirees/beneficiaries’ health insurance premiums. The Chapter 175 amount available for the fiscal year 2024-2025 is $339,226. The health insurance premiums are different depending on whether the retiree is on medicare or on regular insurance and also whether they have family coverage or single coverage, so the benefit received by the retiree/beneficiary is Page 3 of 4 uneven. Using the share plan to distribute the Chapter 175 benefit would give all fire retirees/beneficiaries an equal amount every year and most retirees/beneficiaries would have a greater benefit. They then would pay their own health insurance premiums. Discussion took place about what beneficiaries would receive the benefit after the passing of the retiree. Todd brought up that J&S annuitants and all designated beneficiaries should receive the benefit for their lifetime once the fire retiree passes away. Pedro will draft the ordinance and we will discuss it at the next meeting. VI. NEW BUSINESS 6.1 Dina Lerner/GRS – October 1, 2024 Actuarial Report Dina Lerner reviewed with the trustees the information in the October 1, 2024 Actuarial Valuation Report. The funded ratio this year is 89.2 % compared to 92.1 % last year. The funded ratio is equal to the smoothed actuarial value of assets divided by the actuarial accrued (past service) liability. The actual employer and State contributions for police officers during the year ending September 30, 2024 were $0 and $67,890, respectively, for a total of $67,890. The required contribution was $0. The excess contribution amount of $67,890 was added to the prepaid contribution reserve, increasing the reserve balance to $203,670 as of October 1, 2024. This reserve is available to offset future City contribution requirements for police officers. The actual employer (City/BSO) and State contributions for firefighters during the year ending September 30, 2024 were $797,992 and $124,055, respectively, for a total of $922,047, which is equal to the required contribution. The contributions due from the city for fiscal year ending September 30, 2026 are $1,247,660 based on the October 1, 2024 Actuarial Valuation assuming the payment is made in full at the beginning of the fiscal year. If the City contributions are made quarterly instead, the net required city contribution for fiscal year 2026 would increase from $1,247,660 to 1,291.869. There will be a Florida Statutes Chapter 112.63(1)(f) mandated mortality assumption change next year that will put upward pressure on the city’s contribution requirement. There are also deferred investment losses which are scheduled to be recognized in the smoothed value of assets next year (prior to reflecting any investment experience which has occurred after the October 1, 2024 actuarial valuation date). These two scheduled changes (the deferred investment loss recognition and mandated mortality assumption change) are expected to increase the city’s contribution requirement by around $500,000 in next year’s actuarial valuation. There was no cola this year since there was an actuarial loss allocable to firefighters. MOTION by Rae Lair to accept the October 1, 2024 Actuarial Report as prepared by Dina Lerner of Gabriel, Roeder, Smith & Co SECOND: Todd Neal PASSED UNANIMIOUSLY Page 4 of 4 6.2 GRS - Chapter 175 Health Insurance Subsidy Dina told the trustees that according to their calculations the September 30, 2024 Health Insurance Subsidy Reserve balance is $339,226 that includes $221,765 of current years additions and $117,461 unused from prior fiscal years. The plan should not pay out more than $339,226 for the 2024-2025 fiscal year. 6.3 Annual Rate of Return The annual investment rate of return for the 2024 fiscal year is 5.75%. Every year a letter is sent to the Division of Retirement notifying them of the Plan’s investment rate of return. This is required by the State. MOTION by Dean Harley to send the Division of Retirement a letter stating that 5.75 % is the 2024 annual rate of return SECOND by Todd Neal PASSED UNANIMIOUSLY 6.4 Ratify Rebalancing the Portfolio On April 7, 2025 Steve Roth of Dahab Associates recommended that the plan rebalance the portfolio by moving $1,200,000 from the Wedge account to the cash account; then moving $600,000 to GWK from the cash account and purchasing $600,000 of the Vanguard S&P Index Fund MOTION by Dean Harley to ratify transferring $1,200,000 from Wedge to cash and then transferring $600,000 to GWK and purchasing $600,000 of the Vanguard S&P Index Fund. SECOND by Todd Neal PASSED UNANIMIOUSLY VII. CORRESPONDENCE VIII. RETIREMENTS/TERMINATION IX. OPEN DISCUSSION AND INFORMATION 9.1 Attorneys Report Attorney Herrera told the trustees that the State legislative is still in session. X. ADJOURN MOTION by Rae Lair to adjourn meeting at 8:30 pm SECOND: Todd Neal PASSED UNANIMIOUSLY ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE WITH REGARD TO ANY MATTER CONSIDERED AT THIS MEETING OR HEARING WILL NEED A RECORD OF THE PROCEEDING, AND FOR SUCH PURPOSE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDING IS MADE WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT, PERSONS NEEDING ASSISTANCE TO PARTICIPATE IN ANY OF THESE PROCEEDINGS SHOULD CONTACT THE ADMINISTRATOR OF THE CITY OF DANIA BEACH POLICE & FIREFIGHTERS' RETIREMENT SYSTEM PHONE (954) 393-9061 or 954-648-4448 AT LEAST 48 HOURS PRIOR TO THE MEETING.