HomeMy WebLinkAboutMinutes_Pension Joint_02/24/2009JOINT TEQUESTA PENSION BOARp OF TRUSTEES MEETING
GENERAL EMPLOYEES PENSION TRUST FUND
AND
TEQUESTA PUBLIC SAFETY OFFICERS PENSIONTRUST FUND
SPECIAL MEETING MINUTES
February 24, 2009
Call To Order And Roll Call
A joint meeting of the Tequesta General Employees' Pension Trust Fund Board
of Trustees and the Tequesta Public Safety Officers' Pension Trust Fund Board
of Trustees was held at the Tequesta Village Hall, 345 Tequesta Drive,
Tequesta, Florida, on Tuesday, February 24, 2009. The meeting was called to
order at 8:31 a.m. A roll call was taken by Pension Coordinator Lori McWilliams.
In attendance at the meeting were: Public Safety Officers' Pension Board
Members: Secretary David Cooper, Board Member Ken Nielson, and Board
Member Robert Young. Chair Ed Sabin, and Board Member Ray Giblin were
absent from the meeting. General Employees' Pension Board Members: Chair
Michael Rhodes, Secretary Carl Hansen, Board Member Archie C. Mangum, Jr.,
Board Member Deanna Mayo and Board Member Michelle Gload. Also in
attendance were Senior Accountant Monica Rahim, Finance Director JoAnn
Forsythe representing Village Management, and Pension Coordinator and Village
Clerk Lori McWilliams.
1. Approval of Minutes
MOTION:
General Employees' Pension Board Secretary Hansen made a motion to
approve the minutes of the joint meeting of both boards held on February
2, 2009. Board Member Young seconded; motion carried by unanimous 8-
0 vote.
2. Public Safety Pension Board Approval of Proposed Actuarial Study
Not to Exceed $4,500
and.
3. General Employees Pension Board Approval of Proposed Actuarial
Study Not to Exceed $3,500
General Employees' Pension Board Chair Michael Rhodes referred to the
second paragraph of the proposal from Gabriel Roeder Smith and Company
dated February 9, 2009, and expressed his concern with the recommendation
that changes be made in the assumed rate of interes# return since the purpose of
the study was to determine if it should be changed. Chair Rhodes requested
this be noted in the meeting minutes, and commented he had hoped Mr.
Palmquist would be present today to address that. Pension Coordinator
Joint Meeting Minutes of Board of Trustees of Public Safety Officers' Pension
Trust Fund and General Employees' Pension Trust Fund
February 24, 2009 2
McWilliams explained that since this meeting had been called to consider
approval of Mr. Palmquist's proposal, and would have involved costs, she had
not asked him to attend; but offered to telephone him. Chair Rhodes indicated it
would be sufficient to note this in the minutes.
Public Safety Officers' Pension Board Member Ken Nielson asked that the
mortality rates be specific to police and fire in the study done for the Public
Safety Officers' plan. Board Member Nielson asked the meaning of asset
smoothing and using market value as the actuarial value of assets. Chair
Rhodes expressed his opinion that Mr. Palmquist's intention was to use the
census as of 10!1/08 and the asset values as of 12/31/08 because of the
downturn in the market from October through December, 2008, in order to be
more conservative. Board Member Nielson commented he did not know how
that would relate to asset smoothing; Chair Rhodes advised that should be
clarified by Mr. Palmquist.
Board Member Nielson commented regarding pensionable pay items that he
would like a survey on funding methods to find out what other municipalities were
including in pensionable pay items. Pension Coordinator McWilliams clarified
that the Public Safety Board had already approved the table, and it was on this
agenda as Item 4 because a mistake had been found in the table in the minutes.
Chair Rhodes asked that Mr. Palmquist go back five years #or each plan to show
what the amount of the annual contributions would have been if asset smoothing
had been used, versus what actually occurred.
Hearing no further comments regarding the proposal, Pension Coordinator
McWilliams advised the requests that had been made would be forwarded to Mr.
Palmquist, and called for a motion from each Board to approve the actuarial
study with their recommendations.
The amount of estimated costs for the actuarial study of $4,500 for Public Safety
Officers' Pension, and $3,500 for the General Employees Pension, and the not to
exceed amounts of $5,000 for Public Safety Officers' Pension and $4,000 for the
General Employees' Pension were discussed. Consensus was to approve the
not to exceed amounts.
Public Safety Officers' Pension Plan:
MOTION
Secretary Cooper made a motion to approve the proposed actuarial study
by Gabriiel Roeder Smith and Company as outlined in their proposal dated
February 3, 2009, at a cost not to exceed $5,000, to include the following:
The actuarial study should show mortality rates specific to police and fire;
Joint Meeting Minutes of Board of Trustees of Public Safety Officers' Pension
Trust Fund and General Employees' Pension Trust Fund
February 24, 2009 3
An explanation of using an asset smoothing method using market value as
the actuarial value of assets;
A comparison going back 5 years to show the amount of annual
contributions using the asset smoothing method versus what actually
occurred.
Motion was seconded by Board Member Young and carried by unanimous
3-0 vote.
General Employees' Pension Plan:
MOTION:
Board Member Gload made a motion to approve the proposed actuarial
study by Gabriel Roeder Smith ~ Company as outlined in their proposal
dated February 3, 2009, at a cost not to exceed $4,000, to include the
following:
An explanation of using an asset smoothing method using market value as
the actuarial value of assets;
A comparison going back 5 years to show the amount of annual
contributions using the asset smoothing method versus what actually
occurred.
Motion was seconded by Chair Rhodes and carried by unanimous 3-0 vote.
4. Total Cash Remuneration Determination
Pension Coordinator McWilliams explained the Public Safety Officers' Pension
Board had approved the table shown in the meeting minutes from August at their
August 2008 meeting; however Attorney Jensen had included the career service
benefit item, and it did not get transferred into the table. This was an error
because more than one table had been created leading up to the meeting, and
the wrong one had been inserted into the meeting minutes. Ms. McWilliams
noted she had distributed a memo from Attomey Jensen explaining that the
career service benefit should be included in the total cash remuneration paid to
police officers for services rendered, and that it should be included in the chart.
Because the Finance Department needed minutes with the correct chart, the
Board was asked to make a new motion to amend the minutes with the correct
chart.
Joint Meeting Minutes of Board of Trustees of Public Safety Officers' Pension
Trust Fund and General Employees' Pension Trust Fund
February 24, 2009 4
Board Member Nielson stated he did not know what Attorney Jensen used for
her basis or if it was just her opinion, and it was his understanding some things
were bargained into the contract. Board Member Gload advised the career
services benefit was in the new PBA contract. Pension Coordinator McWilliams
recalled that Attorney Jensen had advised it was the Board's responsibility to
interpret total cash remuneration, which the Board did in 2008, and in doing so
had interpreted that these items should or should not be considered total cash
remuneration. The career service benefit had been included; it had just not been
placed into the table. The actuary or Attorney Jensen could still provide
comparisons, if that was what the Board wanted. Board Member Nielson
requested the comparison be done. Pension Coordinator McWilliams clarified for
the Board that right now, the items listed in the chart were considered
pensionable pay because those had been approved. Pension Coordinator
McWilliams commented if the Board wanted to table this item, she could bring
the comparison to the May meeting.
MOTION:
Secretary Cooper made a motion to table the total cash remuneration
determination to the May 2009 meeting. Board Member Nielson seconded
the motion, which carried by unanimous 3-0 vote.
V. Adjournment
There being no further business, upon motion by Secretary Cooper, seconded by
Secretary Hansen, the meeting was adjourned.
Respectfully submitted,
~~~
Betty Laur
Recording Secretary