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HomeMy WebLinkAboutMinutes_Pension Public Safety_11/03/2008SYNOPSIS OF PUBLIC SAFETY OFFICERS PENSION BOARD MEETING 11/03/08: 1. Ed Sabin was elected Chair; David Cooper was elected Secretary. 2, Meeting minutes of August 4 quarterly meeting and August 27, 2008 special meeting were approved as submitted. 3. Anthony Brown provided a presentation for Rockwood Capital Advisors, LLC. 4. Dave West provided a presentation for Bogdahn Consulting, LLC. 5. Tabled discussion of new tools offered by Gabriel, Roeder Smith and Company until Mr. Palmquist could be present. 6 Approved the budget for FY 2009. 7. Approved the Summary Plan Description. 8. Pension Coordinator McWilliams reported the Village Council had approved the firefighters going from 6.1 % back to 5%. 9. Consensus was to include mandatory Heart Act provisions in the next actuarial evaluation. 10. Approved filing an IRS determination letter. 11. Reviewed Standing Reports (information items) 12. The following payments were ratified: Hanson, Perry & Jensen, P.A. $2,820.50 Business Services Connection, Inc. $246.35 Gehring Group $3,317.56 Business Services Connection, Inc. $254.85 Business Services Connection, Inc. $161.41 Bogdahn Consulting, LLC $2,000.00 Rockwood Capital Advisors, LLC $5,695.69 Gabriel Roeder Smith & Company $835.00 13. Approved the following invoices for payment: Hanson, Perry & Jensen, P.A. $2,820.50 Business Services Connection, Inc. $84.95 Hanson, Perry & Jensen, P.A. $1,548.00 Bogdahn Consulting, LLC $2,000.00 Rockwood Capital Advisors, LLC $5,556.75 Gabriel Roeder Smith & Company $4,862.00 14. Senior Accountant Rahim presented the budget report. 2 SYNOPSIS OF PUBLIC SAFETY OFFICERS PENSION BOARD MEETING 11/03/08 15. Pension Coordinator McWilliams reported the Village Council had approved Police Chief McCollom's request to opt out of the pension fund. Attorney Jensen was to prepare a release for the Chief's signature as a part of his refund of contributions. 16. Approved contract with Business Connection Services, Inc. for Betty Laur's services with "salary" changed to "fee", and authorized Lori McWilliams as Betty's Supervisor to sign her payment requests.. 17. Added Pension Coordinator McWilliams to the signature authorization for Salem Trust as one authorized signer on check requests. 18. Approved establishing a checking account at Sun American Bank. 19. Pension Coordinator McWilliams explained the minutes for the pension boards would no longer be in the abbreviated format used for other minutes. 20. Attorney Jensen provided an update on the second State Division of Retirement Workshop. 21. Consensus of the board was to ask former participants who had issues to submit them in writing for presentation at the next board meeting instead of allowing them to directly contact the Pension Bard Attorney. 22. Tabled consideration of future budgeting for 2-year renewals for Travelers Fiduciary Liability Policy to learn if there would be a cost savings. 23. Discussed uses of Chapter 175 and 185 Premium Tax Revenue for the period 1998 to FY 9/30/07. 24. Approved contract with Tyler Technologies for software for the Village's payroll module to provide custom calculations of pension benefits for terminated employees. 25. Approved continuing the relationship with Bogdahn Consulting, LLC. Attorney Jensen advised she would notify Bogdahn. 26. This board would meet at 8 a.m. next quarter; it was agreed to place a suggestion on both pension board agendas to possibly start the second meeting at 12:30 p.m. END OF SYNOPSIS TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND QUARTERLY BOARD OF TRUSTEES MEETING MINUTES November 3, 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, November 3, 2008. The meeting was called to order at 11:09 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 Giblin, Board Member Ed Sabin, Board Member David Cooper, and Board Member Robert Young. Also in attendance were Attorney Bonni Jensen, Pension Coordinator Lori McWilliams, Senior Accountant Monica Rahim, Finance Director JoAnn Forsythe representing Village Management, Dave West, Bogdahn Consulting LLC -Monitor, and Anthony Brown, Rockwood Capital Advisors, LLC -Investment Manager. 11. ANNUAL ELECTION OF OFFICERS a. Annual Election of Chair MOTION: Board Member Giblin nominated Ed Sabin to serve as Chair; Board Member Cooper seconded, vote was unanimous 5-0. Board Member Nielson passed the gavel to Chair Sabin, who conducted the meeting from this point. b. Annual Election of Secretary MOTION: Board Member Giblin nominated David Cooper to serve as Secretary; Board Member Nielson seconded, vote was unanimous 5-0. III. APPROVAL OF AGENDA MOTION: Board Member Nielson made a motion to move item 7, Review of RFP Monitoring Proposals, to the end of the agenda; motion was seconded by Board Member Giblin, and unanimously carried. Public Safety Officers' Pension Trust Fund Quarterly Board Meeting Minutes November 3, 2008 2 MOTION: Board Member Nielson made a motion to reverse the order of items 4 and 5, in order to hear the investment manager's report before the monitor's report. Secretary Cooper seconded the motion, which carried by unanimous 5-0 vote. Hearing no other changes, Chair Sabin announced the agenda was approved. IV. SWEARING IN 1. New Board Member Robert Young to be sworn in -Approved by Village Council May 8, 2008 Village Clerk McWilliams administered the oath to Board Member Robert Young. V. APPROVAL OF MINUTES 2. Tequesta Public Safety Officers' Pension Trust Fund Board of Trustees Quarterly Meeting Minutes -August 4, 2008 3. Tequesta Public Safety Officers' Pension Trust Fund Board of Trustees Special Meeting Minutes -August 27, 2008 MOTION: Board Member Nielson moved approval of the minutes of the August 4, 2008 Regular Quarterly Meeting and the August 27, 2008 Special Meeting as submitted. Board Member Cooper seconded the motion, which carried by unanimous 5-0 vote VI. PRESENTATIONS 4. Presentation by Investment Manager Anthony Brown, Rockwood Capital Advisors, LLC, reviewed his company's presentation booklet, which reflected the current down market, showing that the fund was down 7-1/2% from the previous quarter. Their approach was very active, and although there had been losses during the quarter, they had been able to sell stocks that were deteriorating before they went too low. Their recommendation was not to sell good stocks, but stay the course until the economy recovered. They were also looking to buy good securities, but wanted to wait until after the election and to see what the Federal Reserve would do, and to have confirmation a security was moving up before they purchased. Mr. Brown expressed concern whether there would be sufficient foreign investors to absorb the large amount of treasury notes to be issued on November 5, and Public Safety Officers' Pension Trust Fund Quarterly Board Meeting Minutes November 3, 2008 3 noted it was unprecedented that a global financial power like the United States was going to other developed countries to help weather this financial crisis. Mr. Brown commented if housing prices were stabilized, consumer confidence would go up, which was necessary to help the economy. Mr. Brown indicated the portfolio was positioned to take advantage of good deals as they began to be available. 5. Presentation By Monitor Dave West, Bogdahn Consulting, LLC, reviewed their presentation booklet, and stressed the importance of staying on target and on policy during the current financial crisis. Mr. West reviewed past down markets and recovery periods, beginning with the Great Depression, and stressed the plan was young and had a long horizon, and the market would recover. The plan had actually finished above average for the quarter; the fund declined 11.8% for the year, while the median decline for other funds had been 14%-15% for this period of time. Mr. West explained the performance deferential between their figures and those of Rockwood, and answered questions from the Board. Finance Director Forsythe indicated the actuary would determine the amount the Village would need to contribute. Discussion ensued regarding the whether the calculation on the present value was funded immediately or spread over a period; Attorney Jensen indicated she would find that answer. Mr. West completed review of the presentation booklet and responded to other questions; then reported his firm was working with the General Employees' Pension Board to possibly expand their ordinance language to expand the types of products that might be available for investing, and advised there might be some benefit in going out for a dedicated, segregated, international manager specialist. A strategy to hedge the U.S. dollar versus other currencies had been discussed. Mr. West offered the same service for this Board, to put together a hypothetical investment policy statement, making changes for enhancement, such as being able to invest in a co-mingled fund. Chair Sabin indicated the Board would like to know the fees for this service. Attorney Jensen advised there would be a fee for the manager search and an ongoing manager fee thereafter. Mr. West advised under their proposed fee schedule there would be no charge for the expanded policy statement. Finance Director Forsythe asked for comparison of this fund with the General Employees' fund. Mr. West reported although the General Fund had done better, he felt Rockwood's strategy had been better through this difficult period. 5. Presentation by Actuary -New Tools and Services Offered by GRS Public Safety Officers' Pension Trust Fund Quarterly Board Meeting Minutes November 3, 2008 4 Pension Coordinator McWilliams advised Mr. Palmquist had called and said he was unable to make this meeting because of an issue with another client, and explained that he had just been going to come to explain his company's services that they could provide for a fee. Consensus was to table this item until Mr. Palmquist could be present. VII. UNFINISHED BUSINESS 7. Review Results of RFP for Monitoring Consultant (moved to end of agenda) 8. Approval of Budget (Tabled at Special Meeting of 8/27/08) Senior Accountant Monica Rahim presented the budget, and each item was reviewed. It was clarified that Attorney Jensen's fee had not been increased since she had been with the Board until this increase, and the new fee was guaranteed for three years. The Recording Secretary cost had been reallocated from the Village to the Pension Fund. Attorney Jensen clarified that the Village reimbursed those fees that were expended through the actuarial evaluation- those fees were accumulated for the next actuarial evaluation and added in as an additional cost. MOTION: Board Member Nielson moved approval of the proposed budget amendment for Fiscal Year 2009 shown on the statement presented, in the amount of $74,810.00. Secretary Cooper seconded the motion, which carried by unanimous 5-0 vote. 9. Summary Plan Description Attorney Bonni Jensen advised the Summary Plan Description was appropriate for distribution unless there were questions. Board Member Nielson asked about including payment to anyone in the military who was injured or killed. Attorney Jensen advised that was a new amendment to Federal law that was on the agenda for approval today, but the plan did not have to be amended until 2011 so it would not be included in the Summary Plan Description until such time as it actually happened. MOTION: Secretary Cooper moved approval of the Summary Plan Description. Board Member Giblin seconded the motion, which carried by unanimous 5- 0vote. Public Safety Officers' Pension Trust Fund Quarterly Board Meeting Minutes November 3, 2008 5 10. Status of Ordinance 13-08 (re-stating Public Safety Officers' Pension Plan) changing the Firefighters' member contribution from 6.1 % to 5% Pension Coordinator Lori McWilliams reported the Village Council approved the Firefighter contribution going from 6.1 % back to 5%; however, they mirrored the language of the IAFF contract language so that in the event there were not enough funds to keep the fund liquid, the contribution would revert back to 6.1 %. The ordinance had been approved by the Village Council on first and second reading. Attorney Jensen advised they had added that language because this was being funded by the 175 monies, so the actuary would have to include an analysis of whether the 175 monies were sufficient. 11. Consideration of approval of incorporation of the mandatory Heart Act provisions into the pension plan Attorney Bonni Jensen commented at the last meeting it had been discussed it was mandatory that the plan provide the benefit the individual would have been entitled to had they remained employed, or people who left employment to serve in active duty military service and died while in service. There was an optional benefit for individuals who left and became disabled and were unable to return to their employment, as to whether the plan would treat them to be able to be re- hired under the federal Uniformed Services Employment and Reemployment Rights Act of 1994 "USERRA", and treat them as if they retired the day before they became disabled and give them the benefits they would have been entitled to. This optional benefit would require obtaining a cost impact statement. Attorney Jensen advised most other pension plans had included the optional benefit. This was required to be in place September 30, 2011. Consensus was to include this in the next actuarial evaluation. 12. Recent Legislative Changes IRS Determination Letters Attorney Bonni Jensen advised the Board this was afollow-up from the last meeting; the IRS had asked that pension plans file for determination letters. The letter was a decision by the IRS that the plan met the requirements of the Internal Revenue System. The IRS was encouraging plans to file; with a deadline of January 31, 2009. If governmental plans did not file, in 2009 the IRS would issue mandatory surveys and would be much less willing to deal with those plans in resolving any problems. The Board's choices were to do nothing, or file for a determination letter with a $1,000 fee to the IRS plus fees incurred to have the letter prepared. Attorney Jensen advised she could prepare the letter; others were available who could also prepare the letter. She reported about 2/3 of the plans she worked with were filing. Finance Director Forsythe reported she understood from the auditors that the IRS wanted to determine that the plan met IRS requirements as it stood right now, and that any changes that had been Public Safety Officers' Pension Trust Fund Quarterly Board Meeting Minutes November 3, 2008 6 made met the code. Attorney Jensen clarified the IRS would want to see the original plan and each subsequent amendment to the current date and explain to them what had happened with each amendment. She estimated the total cost to be less than $5,000.00. MOTION: Board Member Giblin made a motion to file the determination letter. Secretary Cooper seconded the motion, which carried by unanimous 5-0 vote. VIII. STANDING REPORTS (INFORMATION ITEMS) 13. New applicants for participation in Pension Plan None 14. Change of Beneficiary James Trube Gary Harris 15. Request for withdrawal of contributions (employees terminating employment with Village of Tequesta) -Ratification of withdrawals made since the last meeting on 2 signature basis: None 16. Statement of Activities -There were no questions. IX. PAYMENTS TO BE RATIFIED (PAYMENTS MADE SINCE LAST MEETING) 17. Hanson, Perry ~ Jensen, P.A. Services through 8/15/08 Business Services Connection, Inc. Recording/Preparation of 8/4/08 minutes Gehring Group Fiduciary Liability Policy Premium October 1, 2008-October 1, 2009 $ 2,820.50 246.35 3,317.56 Business Services Connection, Inc. Public Safety Officers' Pension Trust Fund Quarterly Board Meeting Minutes November 3, 2008 7 Office Work for weeks ended 10/3 and 10/10!08 254.85 Business Services Connection, Inc. Office Work for weeks ended 10117 and 10/24/08 161.41 MOTION: Secretary Cooper made a motion to ratify the payments as listed. Board Member Nielson seconded the motion, which carried by unanimous 5-0 vote. X. PAYMENTS TO BE REVIEWED AND APPROVED 18. Business Services Connection, Inc. Recording/Preparation of 8/27 Special Meeting Minutes 84.95 Hanson, Perry & Jensen, P.A. Services through 10/15/08 1,548.00 Bogdahn Consulting, LLC Fee for Quarter ending 3/30/08 2,000.00 Rockwood Capital Advisors, LLC Fee for Quarter ending 3/31/08 5,556.75 Gabriel Roeder Smith & Company Actuarial Services through 8/31/08 4,862.00 It was clarified that payment for minutes made to Business Services Connection, Inc. was for work done outside the office. MOTION: Secretary Cooper made a motion to approve the payments as listed. Board Member Nielson seconded the motion, which carried by unanimous 5-0 vote. XI. NEW BUSINESS 19. Budget Report Senior Accountant Monica Rahim explained this report showed actual charges since October 1, 2008. There were no comments or questions. 20. Police Chiefs request to withdraw from the Public Safety Officers' Pension Plan Public Safety Officers' Pension Trust Fund Quarterly Board Meeting Minutes November 3, 2008 8 Lori McWilliams, Pension Coordinator, reported the Village Council had approved the Police Chiefs request to withdraw from the Public Safety Officers' Pension Plan, which would allow the Village to pay less of a contribution towards his retirement. The Police Chief had previously not been aware that his participation in the plan was optional. Chair Sabin asked for a copy of the Chiefs written request to withdraw, which Pension Coordinator McWilliams provided. Attorney Jensen advised she would prepare a release for the Chiefs signature as a part of the refund of contributions, and that would be sent to the HR Department. 21. Contract for Betty Laur's services with addendum to authorize Lori McWilliams as Betty's supervisor to be able to sign the Salem Trust check request form to request Betty's checks every two weeks instead of two board members Lori McWilliams, Pension Coordinator, requested that she as Betty Laur's supervisor be permitted to sign off on her check requests so she could be paid timely every two weeks. Ms. McWilliams reported the General Employees' Pension Board had approved her and one trustee signing off. Attorney Jensen noted the word "salary" should be changed to "fee" in item 2 on page 3. Attorney Jensen advised she was comfortable that in Ms. Laur's duties for the Board she was not the Board's employee, and the contract only covered her work for the Pension Board. MOTION: Board Member Nielson moved the independent contractor agreement with Business Services Connection, Inc., for Betty Laur be approved by the Board with the amendment to change "salary" to "fee" and to sign the resolution allowing Lori McWilliams as Betty's Supervisor to sign her payment requests. Secretary Cooper seconded the motion, which carried by unanimous 5-0 vote. 22. Discussion and consideration of preferences for signers on check request forms and checks Lori McWilliams, Pension Coordinator, advised when Trustee signatures were needed for other check requests it was her preference not to have two Trustees who were Village employees sign, but to have one Trustee who was a Village employee and one other Trustee sign unless it was an emergency or no other member was available to sign. Board Member Nielson asked if it was necessary to sign a check request if the items were within the allocations of the approved budget. Finance Director Forsythe responded it was Salem Trust's requirement that the check requests be signed. Ms. McWilliams advised the General Employees' Pension Board that morning had approved her signing on check requests as Pension Coordinator plus one Trustee. Ms. Forsythe advised that Public Safety Officers' Pension Trust Fund Quarterly Board Meeting Minutes November 3, 2008 9 Board had a checking account, so check requests were signed and the checks also had to be signed by two Trustees. For this Board there was only the check request, which was faxed to Salem Trust, and they wrote the checks. Attorney Jensen advised Ms. McWilliams could be added to the Salem Trust resolution as one signer. Chair Sabin noted a trustee would still be providing oversight. MOTION: Secretary Cooper made a motion to add Pension Coordinator Lori McWilliams to the signature authorization for Salem Trust as one authorized signer on check requests. Board Member Giblin seconded the motion, which carried by unanimous 5-0 vote. 23. Discussion of charges by Salem Trust to write checks Lori McWilliams, Pension Coordinator explained that every time Salem Trust wrote a check they charged a $15.00 fee. Senior Accountant Rahim reported during a year there were approximately 27 check requests which amounted to $405 annually. The General Employees' Pension Fund had a checking account at Sun American Bank into which money was wire transferred from Salem Trust each quarter to pay their bills, which brought the cost down to approximately $100 annually. Ms. Rahim advised she had made provisions in the budget for the checkbooks and bank fees. Board Member Nielson asked if it could be operated as an imprest account; Finance Director Forsythe responded no, because it was two different entities, but if the Board wanted to authorize a certain balance, that could be done. Ms. Rahim advised two Trustees signed the checks on the Sun American Bank checking account. The fee for a wire transfer was $25 ($15 to Salem Trust; $10 to Sun American), done quarterly for a total of $100 annually, compared to $405 annually for Salem Trust to write the checks. There were no other bank charges. Enough money would have to be in the account to pay out refunds of contributions. Ms. Forsythe advised Salem Trust had a reduced fee for retirement payment checks of $3.00; however, this plan currently had no retirees. MOTION: Board Member Young made a motion to establish a checking account at Sun American Bank. Secretary Cooper seconded the motion. Motion carried by unanimous 5-0 vote. 24. Minutes no longer in abbreviated format; synopsis provided Lori McWilliams, Pension Coordinator, explained the Village Council some time ago approved summary minutes for all boards, which only detailed the motions and provided a short summary. That had been started for the Pension Boards, then it was determined not to be feasible because the minutes for the Pension Public Safety Officers' Pension Trust Fund Quarterly Board Meeting Minutes November 3, 2008 10 Boards were constantly referred to for what had been done, so the Pension Boards' minutes would remain in the old format. 25. Update on second State Division of Retirement Workshop Attorney Bonni Jensen reported the second rules workshop had been held; and that the proposed rules would impact actuarial services. A representative present from the Division of Retirement had advised there was no hurry to enact the rules and they would be studied and would not apply to any actuarial evaluations in the current cycle. Attorney Jensen would keep the Board updated. 26. Discussion and consideration of procedure on whether to allow Pension Board Attorney to directly speak to past employees and residents about pension item matters Lori McWilliams, Pension Coordinator, reported a former employee who had not understood how the process worked had called the Pension Board Attorney directly, and staff needed direction from the Board on how to respond when a former employee wanted Attorney Jensen's phone number to call her about their issue, since the Pension fund paid for that service. Attorney Jensen advised that her other clients dealt with issues of former participants by asking them to put their issue in writing and it would be presented to the Board at their next meeting so that they could direct staff how to respond. Consensus of the Board agreed to this method. 27. Consideration of future budgeting for 2-year renewals for Travelers Fiduciary Liability Policy Pension Coordinator McWilliams advised Human Resources Director Merlene Reid wanted to know if the Board wanted to pay this every two years. This item was tabled until it was learned if there would be a cost savings by paying every two years. 28. Discussion of uses of Chapter 175 and 185 Premium Tax Revenue for the period 1998 to FY 9/30/2007 Attorney Bonni Jensen advised calculations by Gabriel Roeder and Smith were included in the meeting packets, showing amounts that had been received over the years, what was not being used to offset the Village's contribution into the plan, and any time the benefits had been used. It also showed State money available to purchase additional benefits, but the newest ordinance 13-08 had not yet been added. The money until utilized was in the plan as a reserve and was invested. Public Safety Officers' Pension Trust Fund Quarterly Board Meeting Minutes November 3, 2008 11 29. Consideration of approval of quote from Fund Balance for Custom Report for Calculation of Pension Benefits for Terminated Employees Senior Accountant Monica Rahim explained that Tyler Technologies was a software developer for the Village's payroll module. The requested software would provide a custom report for calculating pension benefits for terminated employees. There had been a couple of instances with General Employees who had left and staff could not accurately calculate their benefits; the General Employees' Pension Board had approved this contract. The requested amount would be a one-time fee. Vested employees were just beginning to leave, and this would provide information needed to determine pension benefits. The actuary did not do this service. Attorney Jensen commented that the definition of cash remuneration had not been resolved; she did not know if that would be a topic in the Village Council's upcoming workshop that week. MOTION: Board Member Nielson made a motion to approve this Board's portion of the cost for the contract with Tyler Technologies. Secretary Cooper seconded the motion, which carried by unanimous 5-0 vote. Item 7, moved to the end of the agenda: Review Results of RFP for Monitoring Consultant Chair Sabin advised he could only stay 5 more minutes, but he did not want this item rushed. The other Board Members indicated they had made their decision. Board Member Nielson distributed a ranking sheet to each member. Secretary Cooper suggested a straw vote, and recommended staying with Bogdahn. Board Member Young expressed his agreement; Board Member Giblin also expressed agreement. Board Member Nielson advised he had ranked Bogdahn as number one. Chair Sabin stated he was comfortable staying with Bogdahn. MOTION: Board Member Young made a motion to continue the relationship with Bogdahn. Secretary Cooper seconded the motion, which carried by unanimous 5-0 vote. Attorney Jensen advised she would notify Bogdahn. X. ANY OTHER MATTERS It was clarified that this Board would meet at 8 a.m. next quarter. Attorney Jensen commented Ms. McWilliams had suggested the second meeting start at 12:30 p.m. to keep the first meeting from running overtime. Chair Sabin preferred the first meeting be stopped out of courtesy and table remaining items. Pension Coordinator McWilliams advised the other Board had had to consider several items that could not be tabled, and had actually tabled several items. Public Safety Officers' Pension Trust Fund Quarterly Board Meeting Minutes November 3, 2008 12 This suggestion would be placed on both Board agendas for consideration at the next quarterly meetings. XI. COMMUNICATIONS FROM CITIZENS There were no communications from citizens. XI. ADJOURNMENT Upon motion by Secretary Cooper, seconded by Board Member Giblin, and unanimously carried, the meeting was adjourned at 1:40 p.m. Respectfully submitted, ~~ Betty Laur Recording Secretary