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HomeMy WebLinkAboutMinutes_Workshop_11/05/2008MINUTES VILLAGE COUNCIL PENSION WORKSHOP NOVEMBER 5, 2008 Call to Order and Roll Call The meeting was called to order by Mayor Pat Watkins at 8:34 a.m. A roll call was taken by Village Clerk Lori McWilliams. Present were: Mayor Pat Watkins, Vice Mayor Calvin Turnquest, Council Member Vince Arena, and Council Member Tom Paterno. Also in attendance were: Village Manager Michael R. Couzzo, Jr., and Village Clerk Lori McWilliams. Council Member Jim Humpage was absent from the meeting. 1. Discussion and Explanation on Pension Board Administration Manager Couzzo provided an overview of the current condition of the two defined benefit pension plans for the Tequesta employees. Manager Couzzo recommended obtaining an impact statement from the actuary to see how a long-term recession would affect the pension plans, and explained how contributions to the plans worked to determine the Village contribution. Items discussed: • Past contributions. • To be proactive on economics and get input from the pension boards • How costs to the program escalate and the financial impact on the Village. • Fiduciary duties and responsibilities of different entities to the pension plan. • Mortality tables not being current and how that affected the funds. • Cost of impact statements. • The need to change the assumption rate for this economic environment and how to finance the difference. • The possibility of setting aside some reserves as a hedge down the road if needed, or actually putting a set percentage into the fund each year to smooth out the need for money in less prosperous times. • Mechanism to update procedures: Village Council to go to the Pension Boards to ask for current mortality tables; look at doing the assumptions differently by asking the actuary to calculate the assumption at 6%, 5%, etc., and provide an analysis to the pension boards, who would then analyze it, come to a consensus and give the Village Council a recommendation. Public Safety Officers Pension Board Member Ken Nielson offered comments on the Council's discussion and insight provided by the investment manager that since the U.S. Treasury was out of money the bailouts would have to be financed by other countries, and treasuries would carry a higher rate of interest. Discussion ensued. It was very tough for the actuary to provide accurate assumptions because so many things could change. VILLAGE COUNCIL PENSION WORKSHOP NOVEMBER 5, 2008 Page 2 Council Member Paterno requested a list of everything that should be considered. Manager Couzzo advised an agenda item would be added for the November 13 Village Council meeting to direct the Pension Boards what they wanted done. Fire Chief Weinand advised actuarial reports were based on the prior year. The Village Manager indicated the actuary could project based on the past. Council Member Paterno agreed to work with the Village Manager in presenting this item at the Village Council meeting. Police Chief McCollom expressed his opinion it was very important that employees be able to depend on their retirement funds. ADJOURNMENT MOTION: Council Member Paterno moved to adjourn the meeting at 10:11a.m.; seconded by Vice Mayor Turnquest, motion carried unanimously 4-0. Respectfully submitted, On.~ t"Yle C~`~~;c~,,,~~'~~'~SEAL`~ Nom, ~: y Lori McWilliams, CMC = ': INCORPORATED Village Clerk -'--,;~~~;~ ,, ~g~~p~~ 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.