MINUTES OF THE

FIRE FIGHTERS’ RELIEF AND RETIREMENT FUND BOARD OF TRUSTEES

AUSTIN, TEXAS

The regular meeting convened at the pension office at 4101 Parkstone Heights Drive, Suite 270, Austin, Texas, on September 20, 2016 at 1:00 p.m., with the following present:

Keith Johnson Vice-Chair Chuck Campbell Rene Vallejo

Art Alfaro Treasurer Donald G. Lowe Jan Wesson

Jeremy Burke Trustee Lisa Millman

Dimitri Nichols Trustee Archie Montemayor

Bill Stefka Administrator Bob Nicks

Linda Adney Adm. Asst. Tommy Rutledge

Minutes of the regular meeting August 18, 2016 were reviewed by the Board. A motion was made by Jeremy Burke to approve the minutes of the regular meeting held August 18, 2016. With a second from Dimitri Nichols, the Board unanimously approved.

Agenda item 2 was approval of retirement benefits for Mark W. Fleischauer, Jose L. Cortina, Kelly M. Kidd, Mark W. Klaus, Arthur M. Vieira, William W. Voges and Robert R. “Rusty” Wilkins. After review of the benefit information, a motion was made by Jeremy Burke to approve benefits as stated on the benefit calculation form. With a second from Dimitri Nichols, the Board unanimously approved.

Next on the agenda was approval of spousal benefits for Sylvia A. Izard, surviving spouse of deceased retiree Lynn R. Izard. After review of the benefit information, a motion was made by Dimitri Nichols to approve benefits as stated on the benefit calculation form. With a second from Jeremy Burke, the Board unanimously approved.

The next agenda item was to call the election for the pension board trustee position whose 3-year term begins in January 2017 for all active and retired participants. The nomination process for candidates ended September 15, 2016 with Jeremy Burke being the only person nominated for the trustee position. Per the recent statute change and fund rules, since there was only one candidate nominated, there will be no need for the trustee elections to be held. In keeping with those fund rules, Mr. Burke will be appointed to serve his third 3-year term at the January 2017 pension board meeting. The Board congratulated Jeremy on his continuation as pension board trustee. No further action was required at this time.

Agenda item 5 was the 2015 audit report from the Fund’s auditors, Montemayor Britton & Bender. Archie Montemayor noted his team has concluded their audit of the plan’s financial statements and has issued a clean, unqualified opinion meaning the financial statements were in order and accurately reflected the financial position of the Fund for the year ended 12/31/15. After further discussion, a motion was made by Jeremy Burke to approve the 2015 audit report as presented. With a second from Dimitri Nichols, the Board unanimously approved.

The next item for discussion was a disability application for a firefighter. Bill Stefka noted that the medical board has not completed their review of the file and this application will be reviewed at next month’s meeting. No motion was necessary.

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Agenda item 7 was approving a beneficiary designation policy and optional benefit policy including input from the plan’s actuary and legal counsel. The plan’s legal counsel

Chuck Campbell reviewed the latest draft of the beneficiary policy including the tables for the single life annuity and option 2 factors. After some discussion a phone call was placed to Brad Heinrichs, the Fund’s actuary, to review some factors and tables and give examples of their applicability and effect on the Fund. After further discussion a few suggested minor revisions were made and a motion was made by Jeremy Burke to approve the beneficiary policy to include the revisions discussed at today’s meeting. With a second from Dimitri Nichols, the Board unanimously approved.

The 2017 legislative process was the next item to be discussed. Keith Johnson mentioned that more time was needed to do further research and get better prepared to submit a pension bill; and that this would be better accomplished at the 2019 legislative session. The Board agreed that this would be appropriate. No action was required.

Next on the agenda was disability policy and procedures. Upon reviewing an outline of comments from Chuck Campbell on the current disability policy it was decided to compare disability policies of other pension plans to obtain some understanding of privacy concerns with medical information and how this is incorporated into other policies. No motion was necessary.

The next agenda item to be discussed was develop a return to work policy regarding pension benefits. Currently the pension statute doesn’t specify options available to members who resign, get terminated, or who are indefinitely suspended and are in the appeal process. Chuck Campbell thought it would be a good idea to gather information from other pension plans on how they handle such cases as well as contacting the plan’s actuary concerning any adverse actuarial impact certain scenarios may have on the Fund. No action was necessary.

The trustees next reviewed the August financial statements and fund expense reports. No motion was necessary.

Under future agenda items and other business, items to be addressed include the possible review of the disability, return to work, and an update on the administration of fund rule changes.

A motion was made by Dimitri Nichols to adjourn. With a second from Jeremy Burke, the Board unanimously approved.

BOARD MEMBERS

Steve Adler, Chair

Keith Johnson, Vice-Chair

Art Alfaro, Secretary-Treasurer

Jeremy Burke, Trustee

Dimitri Nichols, Trustee

4101 Parkstone Heights Drive, Suite 270 454-9567/FAX 453-7194:

Email:

Website: WWW.AFRS.ORG

September 2016

Minutes