HomeMy WebLinkAboutMinutes_Pension General_2/3/2014 TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND
REGULAR BOARD MEETING MINUTES
FEBRUARY 3, 2014
I. CALL TO ORDER AND ROLL CALL
The Regular Quarterly Board Meeting of the Tequesta General Employees' Pension Trust
Fund was held in the Emergency Operations Center, 357 Tequesta Drive, Tequesta, Florida,
on February 3, 2014. The meeting was called to order at 1:04 p.m.
A roll call was taken by Pension Administrator Dixie Martinez. In attendance at the meeting
were: Chair Michael Rhodes, Secretary Carl Hansen, Board Member Michelle Gload, Board
Member Cary Levine and Board Member John Kuper.
Also in attendance were Attorney Bonni Jensen, Pension Administrator Dixie Martinez,
Investment Monitor Tyler Grumbles, Investment Manager John Hamlin, Custodian Cindy
Farrow and Actuary Jeffrey Amrose.
li. APPROVAL OF AGENDA
MOTION:
Secretary Hansen made a motion to approve the Agenda as presented. Board Member
Kuper seconded the motion, which carried by unanimous 5-0 vote.
Ill. APPROVAL OF MINUTES
1. Tequesta General Employees' Pension Trust Fund Board of Trustees Regular Quarterly
Meeting Minutes — October 21, 2013.
MOTION:
Board Member Levine made a motion to accept the minutes as presented for the
meeting on October 21, 2013. Secretary Hansen seconded the motion, which carried by
unanimous 5-0 vote.
IV. PRESENTATIONS
2. Actuaries Jeffrey Amrose , Gabriel, Roeder, Smith & Company
a. Actuarial Valuation Report 10/01/2013
Mr. Amrose presented to the Board the Actuarial Valuation Report as of October 1, 2013 Mr.
Amrose reported that the Plan is in good shape. He reported that the estimated required
employer contribution as a percentage of payroll for fiscal year end September 30, 2015 is
$183,894 or 8.43% of covered payroll which has decreased by 0.75% ($6,509.00) from fiscal
year end September 30, 2014. He reported that there was a net actuarial gain of$120,011 for
the year. He explained that the gain was primarily due to lower than expected salary increases.
He reported that the funded ratio is 102.8% this year compared to 99.2% last year. Mr. Amrose
reviewed the assumption used. The Board asked Mr. Amrose to determine the interest savings
if the Village made the required contribution at the beginning of the fiscal year instead of bi-
weekly throughout the fiscal year. Mr. Amrose will work on this request and will let the Board
know.
MOTION:
Board Member Gload made a motion to accept the Actuarial Valuation Report as of
October 1, 2013. Board Member Kuper seconded the motion, which carried by
unanimous 5-0 vote.
b. GASB No. 67 Implementation Package
Mr. Amrose presented to the Board the GASB No. 67 Implementation Package.
MOTION:
Board Member Levine made a motion to approve the GASB No. 67 Implementation
package as presented and for the fees not to exceed $2,950.00. Secretary Hansen
seconded the motion, which carried by unanimous 5-0 vote.
3. Custodian Cindy Farrow, Salem Trust
a. Update, Salem Trust transition
Ms. Farrow explained the problems that Salem Trust encountered during the conversion of
their Trust Custody platform earlier this year. She explained why Salem Trust had made the
conversion. She explained how the problems had been fixed and the current status of any
remaining problems. Ms. Farrow explained how Salem Trust differentiates from other
custodian banks. She assured the Board that the issues that they encountered had been
related to reporting problems and not due to loss of assets. She reported that Salem Trust had
given the Plan a fee discount of $63.25 for period ending 9/30/13 and a fee discount of
$170.00 for period ending June 30, 2013, The Board considered requesting an additional
ongoing fee discount for the next several quarters. Ms. Farrow will check to see if an additional
fee discount can be given to the Plan.
4. Investment Manager— John Hamlin, Dana Advisors
a. Quarterly Review
John Hamlin, Dana Advisor, presented to the Board the Dana Advisors Investment
Performance Report as of December 31, 2013. He reported that for quarter ending December
31, 2013 the returns were as follows; Equity portfolio 9.64% versus the benchmark at 9.22%,
Large Cap Equity 10.67% versus the benchmark at 10.51%, International ADR 0.5.19% versus
the benchmark at 4.81% and Fixed Income 0.09% versus the benchmark at -0.14%. He
reviewed the asset allocations as of December 31, 2013; 64.7% allocated in Equity, 33.9%
allocated in Fixed Income and 1.4% allocated in cash & equivalents. He reviewed the
performance of the market environment during quarter ending December 31, 2013. Mr. Hamlin
explained Dana's investment strategy. He reviewed the International ADR portfolio. He
reviewed the top performance contributors and the top performance detractors during this
quarter. He reported that the "Proxy Vote Summary Report" for the fund has been provided to
the Plan administrator. Mr. Hamlin reported that he will attend the August meeting at which
time he will be accompanied by someone from Dana.
MOTION:
Secretary Hansen made a motion to accept Dana Advisors report as of December 31,
2013. Board Member Levine seconded the motion, which carried by unanimous 5-0
vote.
5. Investment Monitor—Tyler Grumbles, Bogdahn Consulting, LLC.
a. Quarterly Performance Report
Tyler Grumbles, Bogdahn Consulting, LLC briefly reviewed the performance of the market
environment for major market indexes as of December 31, 2013.
Mr. Grumbles reported that for quarter ending September 30, 2013 the Plan's market value
was $3,020,091 and the asset allocations were Domestic Equity 47.7%, International Equity
14.5%, Fixed Income 30.7%, and Cash Equivalent 2.3%. He reported that for quarter ending
December 31, 2013 the Plan's Total Fund (Gross) was at 6.18% versus the benchmark at
5.91%. Dana Core Equity was 10.85% versus the benchmark at 10.51%, Dana International
Portfolio was 5.89% versus the benchmark at 4.81%, Dana Fixed Income was up 0.01%
versus the benchmark at -0.14%. He reviewed the financial reconciliation quarter to date. He
reported that overall the Plan is doing well and off to a good start for fiscal year end. Mr.
Grumbles reviewed the compliance checklist.
MOTION:
Board Member Gload made a motion to accept Quarterly Performance Report as of
December 31, 2013. Board Member Kuper seconded the motion, which carried by
unanimous 5-0 vote.
b. International Equity Discussion
Mr. Grumbles presented to the Board an International Equity Review report as of December
31, 2013. The Board had a lengthy discussion with Mr. Grumbles regarding international
equity. The Board will discuss this item again at the next meeting. No action was taken by the
Board at this time.
c. Asset Allocation Discussion
Mr. Grumbles presented to the Board an Asset Allocation Study report as of December 31,
2013. The Board had a lengthy discussion with Mr. Grumbles regarding the Plan's asset
allocation. Mr. Grumbles at this time does not recommend investing in Real Estate; however
he may suggest this type of investment in the future. The Board will discuss this item again at
a future meeting. The Board noted that they would like to see a comparison to smaller Plans
on the Asset Allocation Study. No action was taken by the Board at this time.
The Board with input from Mr. Grumbles discussed the total expected annual rate of return for
the fund. The Board agreed that it is reasonable to expect for the current year, the next several
years, and the long-term thereafter, the Plan is likely to earn 7.5%, net of investment
expenses.
MOTION:
Board Member Levine made a motion to set the total expected annual rate of return at
7.5% for the fund for the current year, the next several years, and the long-term
thereafter. Secretary Hansen seconded the motion, which carried by unanimous 5-0
vote.
d. Fixed Income Alternatives Discussion
Mr. Grumbles presented to the Board an Alternative Asset Classes report as of December 31,
2013. The Board had a lengthy discussion with Mr. Grumbles regarding Fixed Income
alternatives and REIT's. The Board will discuss this item again at a future meeting. No action
was taken by the Board at this time.
V. UNFINISHED BUSINESS
6. Update on Email from HR re: Pension question, Attorney Bonni Jensen.
Attorney Bonni Jensen briefly updated the Board on an email she had received from the
Village regarding pension questions. The Board asked that this item be kept on the next
Agenda to see if there is any outcome. No action was taken by the Board at this time.
VI. CONSENT AGENDA
7. Ratification of invoices paid since last quarterly meeting:
Pension Resource Centers $ 800.00
Administrative Fee- October 2013
Dana Investment Advisors $3,315.00
Management Fees for the 3�d Q 2013 10873ma
Dana Investment Advisors $ 505.00
Management Fees for the 3rd Quarter 2013 1087ca
Perry & Jensen, LLC $ 397.15
Legal Services Rendered through 10/15/13
Pension Resource Centers $ 800.00
Administrative Fee- November 2013
FPPTA $ 600.00
2014 Membership Renewal
Pension Resource Centers $ 800.00
Administrative Fee-December 2013
Perry & Jensen, LLC $1,022.95
Legal Services Rendered through 11/15/13
Perry & Jensen, LLC $170.00
Legal Services Rendered through 12/15/13
The Bogdahn Group $2,625.00
Investment Monitoring Services for 4t" Q 2013
Gabriel, Roeder, Smith & Company $1,511.00
Actuarial Services 4Q 2013
8. Payments to be reviewed and approved:
Pension Resource Centers $ 800.00
Administrative Fee- January 2014
Dana Investment Advisors $ 824.20
Management Fees for the 4t" Q 2013 1087ca
Dana Investment Advisors $3,325.76
Management Fees for the 4t" Q 2013 10873ma
Perry & Jensen, LLC $123.25
Legal Services Rendered through 12/15/13
Board Member Gload questioned a fee included in Perry & Jensen's invoice #72149. Attorney
Jensen explained the fees. Attorney Bonni Jensen reported that she will split the fee between
the General Employees and the Public Safety Pension Plans and she will credit the General
Employees Pension Plan $50.00.
9. Approval of new applicants for participation in Pension Plan:
Ligia Ferguson
Joseph O'Connor
10. Approval of withdrawal of contributions:
None
11. Terminated employees who have not taken their contributions:
Raymond Fitzer
Ms. Gload reported that she does not believe Mr. Fitzer is a Member of the General
Employees Pension Plan. Ms. Martinez reported that according to the information she had
on record she was under the understanding that he was a member of the General
Employees Pension Plan. The Board agreed to table this item to the next meeting so that
Ms. Gload can confirm if Mr. Fitzer is a member of the General Employees Pension Plan.
END OF CONSENT AGENDA
MOTION:
Board Member Gload made a motion to accept the Consent Agenda as amended.
Secretary Hansen seconded the motion, which carried by unanimous 5-0 vote.
VII. BUDGET REPORT
12. Income Statement & Expenditure Report, Finance Staff.
Board Member Gload presented the Budget Report to the Board. The Board agreed to
increase the budgeted amount for Actuarial Services for FY2014 from $6,500 to $10,000.
MOTION:
Board Member Levine made a motion to accept the Budget Report as amended.
Secretary Hansen seconded the motion, which carried by unanimous 5-0 vote.
Vill. NEW BUSINESS
13. Cash Management Sweep Authorization Form, Administrator Dixie Martinez
Ms. Martinez presented to the Board the Cash Management Sweep Authorization Form from
Salem Trust. Mr. Grumbles explained that this authorization form was for the new R&D
account held at Salem Trust. He recommends the treasury option (#2) because it is the most
conservative and this is a money market fund.
MOTION:
Board Member Gload made a motion to accept Mr. Grumble's recommendation and
approve the Cash Management Sweep Authorization Form electing the treasury option
#2. Secretary Hansen seconded the motion, which carried by unanimous 5-0 vote.
14. Attorney Fee Increase, Attorney Bonni Jensen.
Attorney Bonni Jensen presented to the Board her proposed fee increase. She explained that
she is requesting an Attorney Fee increase to $225 per hour.
MOTION:
Secretary Hansen made a motion to accept Attorney Bonni Jensen's fee increase.
Board Member Kuper seconded the motion, which carried by unanimous 5-0 vote.
15. Update on Proposed Amendment, Attorney Bonni Jensen.
Attorney Bonni Jensen reported that as of today she does not have an update on the proposed
amendment. She will follow up with the Village and will report back to the Board.
16. 2014 Mileage Rate, Attorney Bonni Jensen.
Attorney Bonni Jensen reported that as of January 1, 2014 the IRS Standard Mileage Rate for
2014 is 56 cents per mile.
IX. ANY OTHER MATTER
The Board discussed how much of a discount the will request from Salem Trust. The Board
agreed to request a fee discount of 50% for the 4t quarter of 2013 and 1st quarter of 2014. Ms.
Farrow will let the Board know Salem Trust's decision.
X. COMMUNICATIONS FROM CITIZENS
There were no communications from citizens.
XI. ADJOURNMENT
MOTION:
Board Member Kuper moved to adjourn the meeting. Board Member Gload seconded
the motion, which carried by unanimous 5-0 vote.
There being no further business, the meeting was adjourned at 4:56 p.m
e pectfubtited, .
Di a inez,.
Administr for
Village of equesta`G7-eneral mployees' Pension Plan
5�
Ooard Member
Village of Tequesta General Employees' Pension Plan