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HomeMy WebLinkAboutMinutes_Pension General_05/04/2009 1 SYNOPSIS OF GENERAL EMPLOYEES PENSION BOARD QUARTERLY MEETING HELD 05/04/09 1. During the annual election of officers, Chair Michael Rhodes and Secretary Carl Hansen were re- elected. 2. Minutes were approved for January 28, 2009, February 2, 2009, and February 24, 2009. 3. Voted not to consider a COLA at this time. 4. Voted to accept the Summary Plan Document as presented. 5. Dan Johnson of Bogdahn Consulting assured the Board that if there should be a large future discrepancy between their report and the investment manager's report, that the Board would be informed whether it was a timing matter. 6. Voted that Pension Coordinator McWilliams be the designated party to filter questions from participants before passing them to Attorney Jensen along with a possible response, in order to possibly reduce the time Attorney Jensen would need to spend on the matter. 7. Voted to pay the fiduciary liability insurance premium every two years in order to lock in the price. 8. Voted that on an annual basis the Pension Attorney would provide a review for compliance with the IRS and as part of the annual audit the Board would be provided with a copy of the notes from the audit itself. 9. Steve Palmquist of Gabriel, Roeder, Smith and Company reviewed the actuarial study requested by the Board. 10. The Board requested Mr. Palmquist go back 3 years to see what the effect of asset smoothing would have been. 11. Voted to change to the latest generational mortality tables. 12. Voted to change the actuarial assumption rate from 8% to 7 -1/2 %. 13. Voted to adopt asset smoothing for the actuarial evaluation as of 10/1/2008. 14. Approved the quarterly report from Bogdahn Consulting, LLC. SYNOPSIS OF GENERAL EMPLOYEES PENSION BOARD QUARTERLY MEETING HELD 05/04/09 2 15. Consensus was that a new investment policy was needed; that Mr. Johnson would make changes, then email the policy to Attorney Jensen, who would forward it to Chair Rhodes. After Chair Rhodes had made his changes, the policy would be distributed to all members for review, allowing approximately 10 days for review before holding a special meeting. 16. Voted to have Mr. Johnson draft a letter of instruction to Salem Trust to create an additional account in order to break out the international segment of the portfolio. 17. Voted not to consider further purchasing the enhanced income equity alternative at this time. 18. Voted to add $5,100 to the budget and to add a column to the budget report to show total actual expense for one year. 19. Approved the following Consent Agenda: Ratification Of Invoices Paid Since Last Quarterly Meeting: • Business Services Connection, Inc. — Office work -weeks ended 02/06/09, through 04/10/09 $ 1,282.75 • Business Services Connection, Inc. — Attend, recording, minutes of 01/28/09 meeting $ 76.46 • Business Services Connection, Inc. — Prepare minutes and synopsis of 02/02/09 Joint Meeting — General Employees' Pension Share $ 101.94 • Hanson, Perry & Jensen, P.A. Legal Fees through 02/15/08 $ 3,195.09 • U. S. Treasury Additional Fee for IRS Determination Letter $ 500.00 • Gabriel Roeder Smith & Company Services since 12/31/08 for preparation of 10/1/08 Actuarial Valuation Report $ 1,093.00 • Scripps Treasure Coast Newspapers $ 164.92 Newspaper Ad for Board Position SYNOPSIS OF GENERAL EMPLOYEES PENSION BOARD QUARTERLY MEETING HELD 05/04/09 3 • Lori McWilliams — Reimburse balance due of General Employees' Pension portion of Travel Expenses for attendance at FPPTA School $ 158.79 • Michelle Gload — Reimburse balance due of Travel Expenses for attendance at FPPTA Trustee School $ 303.74 • Deanna Mayo — Reimburse balance due of Travel Expenses for attendance at FPPTA Trustee School $ 336.26 Payments To Be Reviewed And Approved: • Business Services Connection, Inc. Preparation of 2/2/09 Quarterly Meeting Minutes and Synopsis $ 161.40 • Perry & Jensen, LLC Through 04 /15/09 $ 311.75 • Bogdahn Consulting, LLC $2,625.00 Services through 3/31/09 • Dana Investment Advisors $1,169.84 Services through 3/31/09 • Business Services Connection, Inc. Minutes of Joint Meeting with Public Safety Officers' Pension Board held 2/24/09 (1/2 charged to each pension board) $ 59.46 Approval of new applicants for participation in Pension Plan: Donna Reid — Communications Officer — Date of Hire 3/2/09 Approval of withdrawal of contributions: None Terminated Employees who have not taken their contributions Raymond B. Fitzer — termination date 10/10/08 — Not Vested Wayne Jackson — termination date 9/5/09 - Vested SYNOPSIS OF GENERAL EMPLOYEES PENSION BOARD QUARTERLY MEETING HELD 05/04/09 4 Revenue and Expenditure Report END OF CONSENT AGENDA 20. Approved a new contract with the attorney reflecting the firm's name change. 21. Approved the investment manager's quarterly report for the quarter ended 3/31/09. 22. Consensus was to move agenda item of discussion of procedure for filing amendments with the IRS to a special meeting. 23. Consensus was to move to a special meeting the agenda item of discussion and consideration of procedure on how to handle items that might have a time deadline when there was a possibility of not getting a quorum. 24. Approved the report by Attorney Jensen on the Worker, Retiree, and Employer Recovery Act of 2008. 25. Pension Coordinator McWilliams advised each member had been provided with a brochure on the June FPPTA conference in Boca Raton. 26. Pension Coordinator McWilliams announced changing meeting time would be on the agenda at the special meeting. 27. Pension Coordinator McWilliams indicated each member had received a guideline manual, which would also be provided to new members, and to which contracts would be added. END OF SYNOPSIS TEQUESTA GENERAL EMPLOYEES PENSION TRUST FUND QUARTERLY BOARD OF TRUSTEES MEETING May 4, 2009 I. Call To Order And Roll Call The Tequesta General Employees Pension Trust Fund Board of Trustees held a regular quarterly meeting at the Tequesta Village Hall, 345 Tequesta Drive, Tequesta, Florida, on Monday, May 4, 2009. The meeting was called to order at 8:03 a.m. A roll call was taken by Chair Michael Rhodes. Board Members in attendance at the meeting were: Chair Michael Rhodes, Secretary Carl Hansen, Board Member Archie C. Mangum, Jr., and Board Member Michelle Gload. Also in attendance were Attorney Bonni Jensen, Daniel Johnson with Bogdahn Consulting LLC — Monitor, Steve Palmquist with Gabriel, Roeder, Smith & Company — Actuary, and Betty Laur, Recording Secretary. Pension Coordinator Lori McWilliams arrived at 9:30_a.m., Senior Accountant Monica Rahim arrived at 8:22 a.m., Finance Director Joann Forsythe who attended representing the Village Management, arrived at 8:09 a.m. Board Member Deanna Mayo was absent from the meeting. 11. APPROVAL OF AGENDA MOTION: Secretary Hansen moved approval of the revised agenda as amended by moving Unfinished Items 9, 10, 11, 24, 15 and 16 after approval of the minutes. Board Member Gload seconded the motion, which carried by unanimous 4-0 vote. III. ANNUAL ELECTION OF OFFICERS 1. Election of Chair MOTION: Secretary Hansen moved nomination of Michael Rhodes as Chair. Board Member Gload seconded the motion, which carried by unanimous 4-0 vote. 2. Election of Secretary MOTION: Board Member Mangum moved nomination of Carl Hansen as Secretary. Board Member Gload seconded the motion, which carried by unanimous 4-0 vote. IV. APPROVAL OF MINUTES Agenda -General Employees' Pension Trust Fund Board Meeting May 4, 2009 2 3. Tequesta General Employees' Pension Trust Fund Board of Trustees Emergency Meeting Minutes -January 28, 2009 4. Tequesta General Employees' Pension Trust Fund Board of Trustees Quarterly Meeting Minutes -February 2, 2009 5. Tequesta Public Safety Officers' Pension Trust Fund Board of Trustees and General Employees' Pension Trust Fund Board of Trustees Joint Meeting Minutes -February 24, 2009 MOTION: Secretary Hansen moved approval of the minutes of the January 28, 2009, February 2, 2009, and February 24, 2009 meetings as submitted. Board Member Mangum seconded the motion, which carried by unanimous 4-0 vote. VI. UNFINISHED BUSINESS 9. Report from HR Director Merlene Reid regarding requested employee survey (Tabled at the 02/02/09 Quarterly Meeting to include report of COLA Comparisons) Chair Rhodes expressed appreciation for the report of COLA comparisons obtained by HR Director Reid, and commented the results showed clearly that only one other plan had an open-ended COLA. Chair Rhodes expressed his opinion it was therefore not a pertinent item for consideration by the Board at this time, with which the other members expressed agreement. MOTION: Secretary Hansen moved not to consider a COLA at this time. Board Member Mangum seconded the motion, which carried by unanimous 4-0 vote. 10. Consideration of approval of the updated Summary Plan Description with clarification of the meaning of "all tax deferred items of income". (Tabled from August 4, 2008, November 3, 2008, and February 2, 2009 quarterly meetings) Attorney Jensen explained she had been requested to add the following language under the definition of salary: Amounts that are paid on a pre-tax basis for employee benefits, excluding lump-sum payments, overtime bonuses, and longevity bonuses. Tax deferred amounts of compensation was changed to amounts paid on a pre-tax basis for employee benefits. The Attorney clarified that would be anything paid through an employee's pay on a pre-tax basis that was included for purposes of pension calculations, such as health insurance. MOTION: Agenda -General Employees' Pension Trust Fund Board Meeting May 4, 2009 Secretary Hansen moved to accept the Summary Plan Document as presented. Board Member Gload seconded the motion, which carried by unanimous 4-0 vote. 11. Response to Board's Request on 02/02/09 to find out why there was a $79,000 difference between the Salem Trust Statement and the Bogdahn Report as of 12/31/09 Recording Secretary Laur explained this had been answered in an email from Bryan Bakardjiev, the representative from Bogdahn Consulting who had attended the last meeting. Chair Rhodes indicated the feeling of the Board at that meeting had been that it would be nice when there was a discrepancy of that magnitude to know if it were a timing difference between settlement and trade date, which was the explanation. Daniel Johnson assured the Board that would be indicated in the future, and that the figures had reconciled as of March 31, 2009. 14. Discussion and consideration of procedure on whether to allow Pension Board Attorney to directly speak to past employees and residents about pension item matters (postponed from November 3, 2009 quarterly meeting) Attorney Jensen explained there were times staff could not answer a participant's question and needed to know whether to refer that information to her for response. The question came up whether the Board wanted to pay the attorney's hourly fee for her to speak to participants. Attorney Jensen noted staff could relay the question to her for response and then pass along the response to the participant. Discussion ensued, with the conclusion that Attorney Jensen should not communicate directly with participants; Pension Coordinator McWilliams should be the designated staff member to filter questions before passing them to the Attorney and where possible, she should formulate a response so that the Attorney might just be able to agree, thus reducing the amount of the Attorney's time and resulting cost to the Board.. MOTION: Secretary Hansen moved to designate Pension Coordinator Lori McWilliams as the staff member to filter questions from participants before passing them to Attorney Jensen; the Pension Coordinator shall formulate a response to present to Attorney Jensen in order to possibly reduce the time Attorney Jensen would need to spend on this matter. Board Member Gload seconded the motion, which carried by unanimous 4-0 vote. 15. Consideration of future budgeting for 2-year renewals for Travelers Fiduciary Liability Policy. Recording Secretary Laur explained the insurance company had wanted payment for two years; however, that was not done this year because of time constraints Agenda -General Employees' Pension Trust Fund Board Meeting May 4, 2009 4 since both boards had to agree. There was no difference in price. Chair Rhodes commented this would lock in the price for two years. MOTION: Secretary Hansen moved to pay the fiduciary liability insurance premium every two years in order to lock in the price, contingent upon agreement by the Public Safety Officers' Pension Board. Board Member Mangum seconded the motion, which carried by unanimous 4-0 vote. 17. Response from Village Auditors regarding Compliance Finance Director Forsythe explained she had contacted the Village auditors regarding the difference in compliance if the Pension had astand-alone audit or was included in the full Village audit, and their response had been there was no difference, so the only difference was in the price. The other question had been regarding compliance with the IRS. Attorney Jensen explained she had filed and was going through the process of compliance with the Internal Revenue Service, and had received information that the IRS was reviewing it. Chair Rhodes requested that as part of the annual auditing process, the board would receive a statement from the Attorney that the plan as of a certain date, on an annual recurring basis, was in compliance with the Internal Revenue Service. Finance Director Forsythe advised that would be added to the audit procedures. MOTION: Secretary Hansen moved that on an annual basis the Pension Attorney would provide a review for compliance with the Internal Revenue Service and as part of the annual audit the Board would be provided with a copy of the notes from the audit itself. Board Member Mangum seconded the motion, which carried by unanimous 4-0 vote. V. PRESENTATIONS 7 Presentation by Steve Palmquist to review Gabriel, Roeder, Smith and Company's Actuarial Study AND 16. Re-Address mortality rate tables (from 05/05/08 meeting) Steve Palmquist of Gabriel, Roeder, Smith and Company, reviewed the actuarial study dated April 30, 2009, beginning with comparison of our plan's cost as a percent of payroll with other plans in the State of Florida. The amount of money going into the plan over the past ten years was reviewed. For the most recent past two years, payroll had been larger than was assumed in the actuarial evaluation. Mr. Palmquist explained that as far as the long-term viability of the plan, anytime more money was going in than the minimum requirement, it helped tremendously, so the extra dollars would be a strong legacy when looking at the performance over a Agenda -General Employees' Pension Trust Fund Board Meeting May 4, 2009 long period of time. Chair Rhodes questioned what the effect would have been each year If asset smoothing had been in place; Mr. Palmquist responded the effect of asset smoothing had only been considered for the past year and what the effect would have been for the upcoming fiscal year, which would have resulted in a lower cost. In 2008 there had been an asset loss; under smoothing only 20% would have been recognized this year. If there had been a gain, the cost would have gone up, amortized over 5 years. Because our plan was young, there was not that much money to lose in prior years, and when there had been a gain the Village's cost would have gone up. Board Member Hansen asked about Social Security, to which Mr. Palmquist responded in spite of negative press it was his opinion it would be there when you needed it and he would not worry about it. Mr. Palmquist reviewed the example regarding what would have taken place if asset smoothing had been used during the past year. The loss was divided into 20% for each of 5 years and entered into a chart showing each year. If a positive number was realized for 2009, that would also be divided into 20% for each of 5 years and spread across each year's columns. The resulting difference would be the total for 2009; in the next years the same thing would be done, adding the gain or loss to each year to arrive at a total for that year. The purpose of asset smoothing was to minimize fluctuations in asset values and in turn minimize fluctuations in the amount contributed by the Village. Chair Rhodes requested Mr. Palmquist go back over the past three years to see the effect if asset smoothing had been in place, to see the cumulative effect. There was consensus by the Board. Other scenarios going forward were reviewed by Mr. Palmquist. Mr. Palmquist explained that asset smoothing could be instituted effective for either 2008 or 2009. Mr. Johnson provided a handout showing asset smoothing. Mr. Palmquist reviewed examples of changes in the actuarial assumption if using the latest generational mortality table, which included allowance for future improvements in mortality, and lowering the assumption to below 8%. The changes would not have as much effect as if the plan had been in place many years. Mr. Palmquist recommended using the latest generational mortality table and lowering the actuarial assumption to 7%; 7-1/2% would be okay but 7% would be better. The numbers would be smaller if asset smoothing had been instituted as of 10/1 /2007. Mr. Palmquist advised that a decision on asset smoothing would be needed very soon if he were to incorporate it into the actuarial evaluation, because the Village was now in the budgeting process. Agenda -General Employees' Pension Trust Fund Board Meeting May 4, 2009 6 Board Member Mangum commented he thought 8% or 7-1/2% return would be optimistic, and asked the Village's position if there were an unfunded situation. Finance Director Forsythe responded the Village had to pay the amount stated by the actuary-they were not allowed by law to be unfunded. Discussion ensued. Mr. Palmquist explained that because the Village had pain in more than the minimum required, the cost had stayed relatively low, and every actuarial evaluation was a re- set. Chair Rhodes commented the actuarial rate of return should be reviewed each year. Mr. Palmquist cautioned not to change it every year. Board Member Mangum asked when the Board should consider changing it; Mr. Palmquist explained that was the purpose of doing the annual actuarial evaluation. Mr. Palmquist noted other plans would love to be in the Village's position-many were currently underfunded. Mr. Palmquist explained they had looked at changing the funding method to entry age normal method, but there would not have been enough cost savings. The actuarial study included how much had been going into the plan historically, this plan's cost as a percent of payroll compared to other Florida plans covering general employees; different scenarios of what would happen to the cost of the plan in different market situations; and aone-year picture of what a smoothing method might look like. His firm would provide that information for three years. The main point was to decide what to do about mortality rates and the actuarial assumption rate. His recommendation was to use the latest generational mortality table and to lowering the actuarial assumption to 7%, or at least 7-1/2% and re-visit it later. Board Member Gload recommended the new mortality table and 7% actuarial assumption. Discussion ensued. It was clarified the rate could be changed next year if needed, and the contribution amount would change if asset smoothing were instituted. Mr. Johnson expressed his opinion that 8% was a reasonable assumption because his handout showed it was higher than that for the past 31 years, and 7- 1/2% would certainly be reasonable for this plan. Mr. Palmquist commented 8% was still the most common rate used, and cautioned that Mr. Johnson's chart was skewed to the high side because it included 18 years that were the best ever for the S&P 500. MOTION: Board Member Mangum moved to change to the latest generational mortality tables. Secretary Hansen seconded the motion, which carried by unanimous 4-0 vote. Discussion ensued regarding changing the actuarial assumption rate. MOTION: Secretary Hansen moved to change the actuarial assumption rate from 8% to 7-1/2%. Board Member Gload seconded the motion, which carried by unanimous 4-0 vote. Agenda -General Employees' Pension Trust Fund Board Meeting May 4, 2009 7 Mr. Palmquist commented his firm could now complete the 10/1/2008 actuarial report, but still needed to know if the Board wanted asset smoothing. MOTION: Secretary Hansen moved to adopt asset smoothing for the actuarial evaluation as of 10/1/2008. Board Member Mangum seconded the motion, which carried by unanimous 4-0 vote. 6. Quarterly Presentation By Monitor Dan Johnson, Bogdahn Consulting LLC, reviewed their quarterly report for the quarter ending 3/31/2009. The market had not performed well; however, Dana Investment Advisors had been conservative, which had helped. The reality was the fund had done well compared to other funds because of less exposure to stocks. The manager was still looking for quality companies that were making money, added a growth component to their core, and over the most recent quarter had started to reposition to more corporate bonds. Mr. Johnson explained the treasury yield curve, which was a good indication of economic recovery. Mr. Johnson noted that 2008 would be added to the comparative performance chart for the next report. Mr. Johnson explained the plan was functioning well, getting more return with less risk than their peer group. Mr. Johnson announced he was now the point of contact at his firm. MOTION: Board Member Mangum moved approval of the quarterly report from Bogdahn Consulting, LLC. Secretary Hansen seconded the motion, which carried by unanimous 4-0 vote. 8. Discussion on Expansion of Investment Options (Tabled at 2/2109 quarterly meeting) Mr. Johnson explained changes were needed to the proposed investment policy since the Board had voted to change the assumed rate of return to 7-1/2%. Chair Rhodes commented he had a list of 20 items he would like changed. Mr. Johnson advised he could make changes and attend a special meeting on this item. Consensus of the Board was that a new investment policy was needed, that Mr. Johnson would make his changes, then email the policy to Attorney Jensen and she would forward it to Chair Rhodes for his changes. The policy would then be forwarded to the whole Board for review for approximately ten days before a special meeting. Chair Rhodes described the process to change the investment policy after the Board agreed on the changes--to have a workshop with Village Council, then to place on a Council agenda for two hearings to change the ordinance. Then a 31- day wait period was needed. Agenda -General Employees' Pension Trust Fund Board Meeting May 4, 2009 8 12. Discussion on Breaking Out the International Segment Mr. Johnson advised the Board was on a retainer fee with Salem Trust, and they could just create an additional account, and he would draft a letter of instruction to them. 13. Discussion on Purchasing Enhanced Income, an Equity Alternative Mr. Johnson noted this would have to be done through a commingled vehicle which at this time could not be done, and bring it back up after the ordinance had been changed. He thought the plan was functioning well, and did not make any recommendation to pursue this currently; advised it could be brought up with Mike Dana when he made his semiannual presentation; and commented they would always be looking for ways to improve, so he did not think it needed to be added to a future agenda. MOTION: Secretary Hansen moved approval of agenda items 12 and 13 as just discussed by Mr. Johnson that the international reporting would be implemented as he described, and that there was no need to consider further purchasing the enhanced income equity alternative at this time. Board Member Mangum seconded the motion, which carried by unanimous 4-0 vote. Board Member Hansen asked to see aone-year total of all payments on an annual basis. Consensus was to jump ahead to agenda item 24: VIII. BUDGET REPORT 24. Quarterly Budget Report Expenditures Senior Accountant Rahim explained there were two accounts on the budget worksheet that had gone over budget, Actuarial and Miscellaneous Charges. Discussion ensued. It was concluded that $2,100 should be added for Legal; $1,000 to Actuarial; $500 for Other Miscellaneous; a new category established for the IRS Determination Letter, and $500 for Publications. Secretary Hansen noted he could see expenses were approximately 5% of assets. Ms. Rahim was asked to add a column showing last year's ending actual number. MOTION: Secretary Hansen moved to add $5,100 to the budget and to add a column to the budget report for the total actual expense for each item for one year. Agenda -General Employees' Pension Trust Fund Board Meeting May 4, 2009 9 Board Member Mangum seconded the motion, which carried by unanimous 4- 0vote. VII. CONSENT AGENDA MOTION: Secretary Hansen moved approval of the Consent Agenda as presented. Board Member Gload seconded the motion, which carried by unanimous 4-0 vote. Therefore, the following items were approved on the Consent Agenda: 18. Ratification Of Invoices Paid Since Last Quarterly Meeting: • Business Services Connection, Inc. - Office work-weeks ended 02/06/09, through 04/10/09 $ 1,282.75 • Business Services Connection, Inc. - Attend, recording, minutes of 01/28/09 meeting $ 76.46 • Business Services Connection, Inc. - Prepare minutes and synopsis of 02/02/09 Joint Meeting -General Employees' Pension Share $ 101.94 • Hanson, Perry & Jensen, P.A. Legal Fees through 02/15/08 $ 3,195.09 • U. S. Treasury Additional Fee for IRS Determination Letter $ 500.00 • Gabriel Roeder Smith & Company Services since 12/31/08 for preparation of 10/1/08 Actuarial Valuation Report $ 1,093.00 • Scripps Treasure Coast Newspapers $ 164.92 Newspaper Ad for Board Position • Lori McWilliams - Reimburse balance due of General Employees' Pension portion of Travel Expenses for attendance at FPPTA School $ 158.79 • Michelle Gload -Reimburse balance due of Travel Expenses for attendance at FPPTA Trustee School $ 303.74 • Deanna Mayo -Reimburse balance due of Agenda -General Employees' Pension Trust Fund Board Meeting May 4, 2009 Travel Expenses for attendance at FPPTA Trustee School $ 336.26 19. Payments To Be Reviewed And Approved: • Business Services Connection, Inc. Preparation of 2/2/09 Quarterly Meeting Minutes and Synopsis $ 161.40 • Perry & Jensen, LLC Through 04/15/09 $ 311.75 • Bogdahn Consulting, LLC $2,625.00 Services through 3/31/09 • Dana Investment Advisors $1,169.84 Services through 3/31/09 • Business Services Connection, Inc. Minutes of Joint Meeting with Public Safety Officers' Pension Board held 2/24/09 (1/2 charged to each pension board) $ 59.46 20. Approval of new applicants for participation in Pension Plan: Donna Reid -Communications Officer -Date of Hire 3/2/09 21. Approval of withdrawal of contributions: None 10 22. Terminated Employees who have not taken their contributions Raymond B. Fitzer -termination date 10/10/08 -Not Vested Wayne Jackson -termination date 9/5/09 -Vested 23. Revenue and Expenditure Report END OF CONSENT AGENDA IX. NEW BUSINESS 29. Attorney's Agreement due to Firm Name Change Agenda -General Employees' Pension Trust Fund Board Meeting May 4, 2009 11 MOTION: Board Member Gload moved approval of the Attorney's Agreement reflecting the firm's name change. Secretary Hansen seconded the motion, which carried by unanimous 4-0 vote. 25. Approval of Investment Manager's quarterly report (inside back cover) MOTION: Secretary Hansen moved approval of the Investment Manager's report for the quarter ended 3/31/2009. Board Member Mangum seconded the motion, which carried by unanimous 4-0 vote. 26. Discussion of procedure for filing amendments to the pension plan with the IRS-to do the amendments and then have the IRS review them or have the IRS review them first Consensus was to move this item to a special meeting due to lack of time. 27. Discussion and consideration of procedure on how to handle items that might have a time deadline when there was the possibility of not being able to get a quorum Consensus was to move this item to a special meeting due to lack of time. 28. Worker, Retiree, and Employer Recovery Act of 2008 (H.R. 7327) Attorney Jensen explained the changes to the federal law. Highlights that applied to this plan were as follows: Pension plans had previously not been allowed to pay more than the market rate of interest; now governmental plans could credit interest at a rate set by the federal, state or local law even if it exceeded the market rate of interest. This plan had set a rate of 3% on refund of contributions, and could follow that because it was what was set by local law. Members could delay taking distributions until 2010. Non-spouses could roll over funds from one pension plan until another now and did not have to wait for the date previously set of December 31, 2009. MOTION: Board Member Mangum moved approval of the report by Attorney Jensen on the Worker, Retiree, and Employer Recovery Act of 2008 (H.R. 7327). Secretary Hansen seconded the motion, which carried by unanimous 4-0 vote. Agenda — General Employees' Pension Trust Fund Board Meeting May 4, 2009 12 X. ANY OTHER MATTERS Pension Coordinator McWilliams advised each member had been provided with a brochure for the FPPTA conference in June to be held in Boca Raton, for which funds had not been budgeted, but staff wanted them to know it was available. Pension Coordinator McWilliams also announced she would propose changing meeting times at the special meeting, to allow more than 2 -1/2 hours, since that time did not seem to be sufficient. Pension Coordinator McWilliams advised that each member had been provided with a guideline manual which would also be provided to new members. Board Member Gload requested that contracts be added to the manual. XI. COMMUNICATIONS FROM CITIZENS There were no communications from citizens. XII. ADJOURNMENT Board Member Mangum moved to adjourn the meeting; seconded by Secretary Hansen and unanimously carried 5 -0. The meeting was therefore adjourned at 10:33 a.m. Respectfully submitted B ) / ? " c � �c.c� c "/ etty Laur Recording Secretary