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HomeMy WebLinkAboutMinutes_Pension Public Safety_08/04/2008SYNOPSIS OF PUBLIC SAFETY OFFICERS PENSION BOARD MEETING 8/4/08: 1. Meeting minutes of May 5, 2008 were approved as submitted. 2. Steve Palmquist of Gabriel, Roeder and Smith reviewed the information provided regarding asset smoothing. 3. The Board voted to table a decision on asset smoothing until the August 2009 quarterly meeting prior to the next actuarial evaluation since it would not have any effect until 10/1109. 4. Mr. Palmquist advised that Attorney Jensen would report on the workshop held in Tallahassee by the Division of Retirement regarding proposed changes in administrative rules, and that a second workshop was scheduled for 9/10/08. 5. Tony Brown provided a presentation for Rockwood Capital Advisors. Mr. Brown reviewed the quarter ended June 30, 2008. Mr. Brown advised they would like to attend the November meeting to report on year end. Consensus of the board was for Rockwood to come to the November meeting and then go back on their normal attendance schedule. 6 Dave West of Bogdahn Consulting, LLC presented their quarterly report for the period ended June 30, 2008. Chair Nielson requested Mr. West look at the difference in annualized return on investment for the 2+ months following inception. Mr. West advised he would come back with that information. 7. Secretary Giblin reported the union had agreed to reducing the firefighters' contribution from 5-1/2% to 5%. The board voted to move this to Village Council. 8. The Board voted to accept the quarterly reports from Rockwood Capital Advisors and Bogdahn Consulting LLC. 9. The board discussed pensionable items; then voted to accept the pension income list as provided by HR and the Finance Department acknowledging it was acceptable under interpretation of compensation salary for this pension group. 10. STANDING REPORTS (INFORMATION ITEMS): New applicants for participation in Pension Plan: Gerald F. Pitocchelli Police Officer -Hired 5/12/08 Consensus was not to include the employee forms in future meeting backup materials. 2 Beneficiary and Name Change -none Request for withdrawal of contributions -none Statement of Activities -there were no questions 11. The following payments made since last meeting were ratified: Hanson, Perry & Jensen, P.A., $525.94; Business Services Connection, Inc. $271.86; Gabriel Roeder Smith & Co. $4,598.00 12. The following payments were approved: Hanson, Perry & Jensen, P.A. $572.75 Bogdahn Consulting, LLC $2,000.00 Rockwood Capital Advisors, LLC $5,695.69 Gabriel Roeder Smith & Company $835.00 13. Attorney Jensen reported an increase in the IRS mileage rate from 50- 1 /2¢ to 58-1 /2¢. 14. Attorney Jensen reviewed proposed changes in the Summary Plan Description document. 15. Consensus was to hold the Summary Plan Description for the November meeting to be able to include the new firefighter contribution rate after Village Council approval.. 16. Attorney Jensen requested the Village have a couple of employees read the summary plan description to see if they understood the benefits and provide that feedback to her. 17. Pension Coordinator McWilliams advised the recording secretary's salary needed to be transferred from the Village Clerk's budget to the pension boards. The amount for FY 2008-2009 would be $12,500 divided between the two pension boards; this change would become effective as of 10/1 /08. 18. Senior Accountant Rahim and Finance Director Forsythe reviewed expenditures versus the budget so far this year, and requested a budget amendment of $26,720. It was agreed to delay this matter until after the board had discussed the increase requested by Bogdahn Consulting, LLC. 19. Attorney Jensen reported on the July Division of Retirement workshop held in Tallahassee. 20. Attorney Jensen reviewed provisions of the Hart law regarding active duty military personnel. 3 21. The board requested that Finance Director Forsythe contact the Village's auditors regarding whether to file for an IRS determination letter. 22. Dave West of Bogdahn Consulting presented a letter requesting an 88% fee increase. Consensus was to hold a special meeting to continue this discussion because of the lateness of the hour. END OF SYNOPSIS TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND QUARTERLY BOARD OF TRUSTEES MEETING August 4, 2008 I. Call To Order And Roll Call The Tequesta Public Safety Officers Pension Trust Fund Board of Trustees held a regular quarterly meeting at the Tequesta Village Hall, 345 Tequesta Drive, Tequesta, Florida, on Monday, August 4, 2008. The meeting was called to order at 8:06 a.m.. A roll call was taken by Betty Laur, Recording Secretary. Board Members in attendance at the meeting were: Chair Ken Nielson, Secretary Ray Gitlin, Board Member Ed Sabin, and Board Member David Cooper. Also in attendance were Attorney Bonni Jensen, Pension Coordinator Lori McWilliams, Dave West, Bogdahn Consulting LLC -Monitor, Steve Palmquist„ Gabriel, Roeder, Smith & Company -Actuary, Anthony Brown, Rockwood Capital Advisors, LLC -Investment Manager. Absent from the meeting was Board Member Robert Young II. APPROVAL OF AGENDA MOTION: Secretary Giblin moved approval of the agenda with items 4 and 5 reversed in order to hear the investment manager's report before ~e monitor's report, and with item III removed since Board Member Young was not present. Board Member Cooper seconded the motion, which carried by unanimous 4-0 vote. Ill. SWEARING IN (Removed from Agenda) 1. New Board Member Robert Young to be sworn in -Approved by Village Council May 8, 2008 IV. APPROVAL OF MINUTES 2. Tequesta Public Safety Officers' Pension Trust Fund Board of Trustees Quarterly Meeting Minutes -May 5, 2008 MOTION: Secretary Giblin moved approval of the minutes of the May 5, 2008 meeting as submitted. Board Member Cooper seconded tine motion, which carried by unanimous 4-0 vote Public Safety Officers Pension Trust Regular Quarterly Board Meeting August 4, 2008 Page 2 V. PRESENTATIONS* *[PRESENTATION/REPORT BOOKLETS LOCATED INSIDE BACK COVER OF AGENDA BOOK] 3. Presentation by Actuary -Asset Smoothing Steve Palmquist of Gabriel Roeder Smith & Company reviewed his letter dated June 6, 2008 regarding an asset smoothing method, which would provide less fluctuation in the amount of contributions required from the Village. MOTION: Board Member Sabin made a motion to table a decision on asset smoothing until the August 2009 meeting, prior to the next actuarial evaluation, since it would have no effect until October 1, 2009. Secretary Giblin seconded the motion, which carried by unanimous 4-0 vote. Mr. Palmquist advised there had been a workshop held in Tallahassee by the Division of Retirement regarding proposed changes in administrative rules regarding mortality rates, which would be State mandated, and that Attorney Jensen would be reporting on the workshop later in the meeting. Mr. Palmquist advised there had been a workshop held in Tallahassee by the Division of Retirement regarding proposed changes in administrative rules regarding mortality rates, which would be State mandated, and that Attomey Jensen would be reporting on the workshop later in the meeting. 4. Presentation by Investment Manager Mr. Tony Brown of Rockwood Investment Advisors, LLC reviewed the fund performance for the quarter ended 6/30/08. The investments were now positioned mostly in large cap growth; and the fund had outperformed the benchmark in a down market. Consensus of the Board was to have Mr. Brown or Mr. Holtgrieve come to the next meeting in November, and then go back to their normal semiannual attendance. Mr. Brown left the meeting at this point. 5. Presentation By Monitor Public Safety Officers Pension Trust Regular Quarterly Board Meeting August 4, 2008 Page 3 David West, Bogdahn Consulting LLC, reviewed the attribution supplement report which showed positive stock selections during the quarter ended 6/30/08. Mr. West explained how the current investment policy limited types of investments, such as mutual funds and others that could be desirable as the fund grew; the objective was to reduce risk and lower the cost. Chair Nielson expressed concern regarding performance, shown in both the Rockwood and Bogdahn reports, since inception as 8.8% return on investment; and for the 3-year period as 6.7% return. Chair Nielson pointed out that because inception was 38 months ago, in the 2-month period before the start of the 3-year period there was a sign cant difference in the amount of annualized return on investment. He requested Mr. West look at the difference in annualized return on investment for those 2+ months; Mr. West agreed he would come back with that information. MOTION: Board Member Sabin made a motion to approve the consultants' reports made by Rockwood Capital Advisors LLC and Bogdahn Consulting, LLC. Board Member Cooper seconded the motion, which carried by unanimous 4-0 vote. VI. UNFINISHED BUSINESS 6. Status Report regarding reducing Firefighters' contribution back to 5°~ Secretary Giblin reported on 7/10/08 the contract with the IAFF and the Village had been passed. The contract contained an article which reduced the contribution for firefighters from 6.1 % to 5%, and Attorney Jensen had prepared a draft ordinance reflecting that change. MOTION: Secretary Giblin moved to pass the draft ordinance along to the Village Council for their consideration to enact the change reducing the firefighters contribution from 6.1°~ to 5°~ Board Member Cooper seconded the motion, which carried by unanimous 4-0 vote. 7. Pensionable items list -requested by the board at their 5/5/08 quarterly meeting Attorney Jensen explained sick leave payout upon termination was included in salary, from which pension contributions were being taken. There were three items of salary that did not have pension contributions taken from them: car allowance, clothing allowance, and shoe/boot allowance, reported as W-2 wages, and therefore were part of the police and firefighters' total cash remuneration. Public Safety Officers Pension Trust Regular Quarterly Board Meeting August 4, 2008 Page 4 Attorney Jensen explained it was this board's responsibility to interpret total cash remuneration, and the items should be specifically mentioned in the ordinance. MOTION: Board Member Sabin made a motion to acknowledge that the pensionable items list as provided by the Human Resources and Finance Departments was acceptable under the interpretation of compensation salary for the this pension group. Secretary Giblin seconded the motion, which carried by unanimous 4-0 vote. Therefore, the accepted list is as follows: Public Safety Employees Com nsation/Benefits Included in Pensionable Income 1. Base Pay Yes 2. Bonuses Yes 3. Incentives Yes 4. Sick Leave Payout on termination Yes 5. Sick-Leave Buy-Back Yes 6. Holiday Pay Yes 7. Overtime Yes 8. Straight Time Yes 9. Car Allowance No 10. Clothing Allowance No 11. Shoe/Boot Allowance No VII. STANDING REPORTS (INFORMATION ITEMS) 8. New applicants for participation in Pension Plan Gerald F. Pitocchelli Police Officer -Hired 5/12/08 Consensus of the board was to omit employee forms as backup in the future to avoid possibility of mistakenly including social security numbers. 9. Beneficiary and Name Change None 10. Request for withdrawal of contributions (employees terminating employment with Village of Tequesta) -Ratification Public Safety Officers Pension Trust Regular Quarterly Board Meeting August 4, 2008 Page 5 of withdrawals made since the last meeting on 2 signature basis: None 11. Statement of Activities The Board had no questions regarding the statement of activities. VII. PAYMENTS TO BE RATIFIED (PAYMENTS MADE SINCE LAST MEETING) 12. Hanson, Perry ~ Jensen, P.A. Services through 5/15/08 $ 525.94 Business Services Connection, Inc. Recording/Preparation of 5/5/08 minutes 271.86 Gabriel, Roeder Smith Sz Co. Balance due for 10/1107 Actuarial Report 8~ Benefit Statements 4,598.00 MOTION: Board Member Cooper made a motion to approve the three invoices presented for ratification. Secretary Giblin seconded the motion, which carried by unanimous 4-0 vote. Therefore the following invoices were ratified: VIII. PAYMENTS TO BE REVIEWED AND APPROVED 13. Hanson, Peny ~ Jensen, P.A. Services through 7/15/08 572.75 Bogdahn Consulting, LLC Fee for Quarter ending 3/30/08 2,000.00 Rockwood Capital Advisors, LLC Fee for Quarter ending 3/31/08 5,695.69 Gabriel Roeder Smith & Company Actuarial Services through 6/30/08 835.00 Items presented for payment listed two invoices as of March 30; the Recording Secretary confirmed those invoices were as of June 30, 2008. Public Safety Officers Pension Trust Regular Quarterly Board Meeting August 4, 2008 Page 6 MOTION: Board Member Sabin made a motion to approve the payments as presented for payment. Boardmember Cooper seconded the motion, which carried by unanimous 4-0 vote. Therefore, the following invoices were approved for payment: IX. NEW BUSINESS 14. IRS mileage rate increase Attorney Jensen advised the new IRS mileage rate had increased from 50-1/2 cents to 58-1/2 cents. 15. Review Revised Summary Plan Document Attorney Jensen reviewed proposed for the Summary Plan Description. Consensus of the board was to hold the Summary Plan Description for the November meeting to be able to include the new firefighters' rate after Village Council approval. Attorney Jensen requested the Summary Plan Description be given to some employees to read to see if they understood the benefits and then provide her with that feedback. 16. Transferring compensation for Betty Laur, Pension Board Recording Secretary Pension Coordinator McWilliams explained that payment to Betty Laur for her services for the pension board needed to be paid by the pension board instead of by the Village Clerk. As of 10/1/08, $12,500 would be placed in the budget for the 2008-2009 fiscal year for Ms. Laur's services, to be paid by the pension boards, divided equally between the Public Safety Officers and the General Employees pension funds. Attorney Jensen clarified that the Village ultimately reimbursed the pension funds for these expenses. 17. Budget Report Senior Accountant Monica Rahim presented the proposed budget and reviewed expenditures against the budget so far this year. Ms. Rahim requested a budget amendment in the amount of $26,720 for three items that had gone over the budgeted amounts: actuarial, investment services, and miscellaneous. Ms. Rahim reviewed the proposed budget for FY 2008-2009. Finance Director Forsythe explained how the budget figures were developed. This item was set Public Safety Officers Pension Trust Regular Quarterly Board Meeting August 4, 2008 Page 7 aside until the proposed increase from Bogdahn Consulting could be discussed later in the meeting. 18. Proposed Pension Changes Attorney Jensen reported she and Steve Palmquist had both attended the July workshop in Tallahassee given by the Division of Retirement and reviewed the proposed rule changes. Attorney Jensen advised attendees did not agree with the proposed rules, and a second workshop was scheduled for September 10. 19. Recent Legislative Changes -Federal and State Legal Updates 20. Recent Legislative Changes - H.R. 6081 Attorney Jensen reviewed provisions of the Hart law regarding active duty military personnel. 21. Recent Legislative Changes -IRS Determination Letters- Attorney Jensen reported the IRS encouraged governmental plans to file for an IRS determination letter. Finance Director Forsythe was requested to find out if the Village's auditors have done this. Consensus was to delay this decision to the November meeting. X. ANY OTHER MATTERS David West of Bogdahn Consulting presented a letter requesting an 88% fee increase, which they would guarantee for three years. The fee guarantee had expired and they had not had an increase in four years. Ed Sabin recommended approval of the fee increase subject to review at the November meeting, recognizing that the agreement being approved has a 30- day notice period for the board to evaluate their relationship with Bogdahn. Finance Director Forsythe asked if the board wanted to go out for RFP; Board Member Sabin felt that should be considered at the next meeting. Bonni had RFP info on other clients she could provide if the board felt that would be of value. Consensus was to hold a special meeting to continue this discussion because of the lateness of the hour. XI. COMMUNICATIONS FROM CITIZENS Public Safety Officers Pension Trust Regular Quarterly Board Meeting August 4, 2008 Page 8 XII. ADJOURNMENT Board Member Sabin moved to adjourn the meeting at 12:49 p.m. Motion was seconded by Secretary Giblin and carried by unanimous 4-0 vote. Respectfully submitted, Betty Laur Recording Secretary Note: These summary minutes are prepared in compliance with 286.011 F.S. and are not verbatim transcripts of the meeting. A verbatim audio record is available from the Office of the Village Clerk. All referenced attachments are on file in the Village Clerk's office.