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 November 20, 2017 at 9:00 a.m., with the following present:

Keith Johnson Vice-Chair Karey Barker Alyca Riley

Art Alfaro Treasurer John Bass Tommy Rutledge

Dimitri Nichols Trustee Chuck Campbell Rene Vallejo

Bill Stefka Administrator Tyler Christenson

Linda Adney Adm. Asst. Donald Lowe

Premal Amin Adm. Asst. Randy Moreno

Public Comment

Vice Chair Keith Johnson called the meeting to order and noted that the meeting will begin with public commentary from those that have signed up to speak. Rene Vallejo, secretary of ARFFA (Austin Retired Fire Fighters Association) wanted to thank the Board for a job well done. He also conveyed a message from a fellow retiree concerning the merits of “flat dollar amount” COLA’s versus percentage COLA’s. Keith thanked Rene for the information and noted that COLA discussion will continue today under agenda item 4. Next up was John Bass who presented some pension data including a “60/40” index analysis in comparison to the Fund’s current portfolio for review. Mr. Bass had some related questions about the Fund’s assumed rate of return. The Board thanked Mr. Bass for his time in preparing the report for the Board. They noted the plan’s consultant may be able to better respond to Mr. Bass’s specific questions after a chance to review.

Minutes of the regular meeting held October 24, 2017 were reviewed by the Board. A motion was made by Dimitri Nichols to approve the minutes of the regular meeting held October 24, 2017. With a second from Art Alfaro, the Board unanimously approved.

Agenda item 2 was approval of retirement benefits for Mark A. McCoy, Brian O. Nolan, Mark D. Pigg and Stephen L. Tittle. 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 Art Alfaro, the Board unanimously approved.

Next on the agenda was spousal benefits for Jo Ann Williamson, widow of deceased retiree John R. Williamson. 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 Art Alfaro, the Board unanimously approved.

Agenda item 4 was the COLA (cost-of-living adjustment) for eligible retirees and beneficiaries for 2018. The Board discussed the November 1, 2017 actuarial certification letter from the plan’s actuary, Foster & Foster, stating the applicable determination period for the increase in the CPI-U shall be the 12-month period ending on September 30, 2017, per the plan’s policy. They have determined that increase in the CPI-U (all items index) was 2.2% and certified that this amount is affordable and does not impair the financial stability of the Fund. After a brief discussion, a motion was made by Dimitri Nichols to approve a 2.2% COLA for all eligible annuitants effective January 1, 2018. With a second from Art Alfaro, the Board unanimously approved. Keith Johnson instructed Bill Stefka to prepare an update on the retirees who received the last increase in the minimum monthly pension benefits and report back at the next meeting.

The actuarial services agreement and fee schedule with Foster & Foster was the next item to be discussed. An addendum to the original March 20, 2012 agreement between Foster & Foster was presented for review. After further examination and discussion, a motion was made by Dimitri Nichols to approve the addendum to the March 20, 2012 actuarial services agreement and fee schedule, extending the services another five years to March 20, 2022. With a second from Art Alfaro, the Board unanimously approved.

November 20, 2017

Page 2

Next on the agenda was continued discussion of the plan’s disability policy and procedures. The Board and Chuck Campbell, the Fund’s legal counsel, resumed conversation from the last meeting. Sections of the statute pertaining to medical disability and related provisions of the disability policy and procedures were reviewed and evaluated. Keith Johnson noted he would reach out to other funds who have attended recent seminars that are also working in this area and may offer to share their ideas and findings. The Board agreed to have this item on next month’s agenda. No motion was necessary.

Agenda item 7 was an update from Cross Creek Capital Partners with whom the Fund currently has several private equity investments. Karey Barker and Tyler Christenson with Cross Creek gave an overview of the current investments’ recent activity as well as an update on their investment team. Ms. Barker also wanted to let the Board know they will have a new hybrid venture Cross Creek Partners V fund which will be available the first quarter of 2018. This fund is designed to invest in managers and companies, primary and secondary, across multiple stages, sectors and geographies. The Board thanked Karey and Tyler for their update. No action was necessary.

Next on the agenda was the Q3 2017 investment performance report from the plan’s investment consultant, Meketa Investment Group. Aaron Lally and Leo Festino noted the Fund produced a net return of 4.1% for the quarter ending 9/30/17. They noted that as of that date the Fund ranks in the top decile versus peer public funds over the trailing quarter, year to date, one year, three year, and five year timelines. Large allocations to international equity and private equity along with an underweight to fixed income has proven favorable. Mr. Lally reviewed the completed asset transfers from January 2017 through September 2017. Mr. Festino also discussed their best convictions in real estate and venture capital fund of fund opportunities; as well as an education piece on infrastructure investing. The Board agreed to continue their review of these programs as a possible fit for the plan’s portfolio at the January 2018 meeting via video conference. The Board thanked Mr. Lally and Festino for their report and insight. No motion was necessary.

The trustees next reviewed the October financial statements, detailed income statement and balance sheet, along with the fund expense reports. No action was necessary.

Under future agenda items and other business, future items to be addressed include the disability policy and procedures review, a review of the minimum monthly pension benefit, the trustee election results, and a January video conference with Meketa Investment Group. The December board meeting has been rescheduled to Monday, December 18, 2017.

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

BOARD MEMBERS

Steve Adler, Chair

Keith Johnson, Vice-Chair

Art Alfaro, Treasurer

Jeremy Burke, Trustee

Dimitri Nichols, Trustee 4101 Parkstone Heights Drive, Suite 270

Austin, TX 78746

454-9567/FAX 453-7194

Website: WWW.AFRS.ORG

November 2017

Minutes