HomeMy WebLinkAboutMinutes_Pension General_10/21/2013 TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND
REGULAR BOARD MEETING MINUTES
OCTOBER 21, 2013
I. CALL TO ORDER AND ROLL CALL
The Regular Quarterly Board Meeting of the Tequesta General Employees' Pension Trust
Fund was held in the Village Hall Council Chambers 345 Tequesta Drive, Tequesta, Florida,
on October 21, 2013. The meeting was called to order at 1:02 pm.
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, and
Board Member Cary Levine.
Also in attendance were Attorney Bonni Jensen, Pension Administrator Dixie Martinez,
Investment Monitor Tyler Grumbles and Senior Analyst Risk Management Rodney Louis.
II. APPROVAL OF AGENDA
Administrator Dixie Martinez requested the addition of item Vill. 12.GRS GASB No. 67
Implementation Package.
MOTION:
Secretary Hansen made a motion to approve the Agenda as amended. Board Member
Levine seconded the motion,which carried by unanimous 4-0 vote.
III. APPROVAL OF MINUTES
1. Meeting Minutes - Tequesta General Employees' Pension Trust Fund Board of
Trustees —August 19, 2013.
The Board reviewed the minutes as presented. The following changes were made to the
minutes: pg.5. item VI1.1. 1st paragraph, 2"d sentence "....budgeted amount of $6,555
$6,500", same paragraph 5t" sentence "....Village Commission. Council...", same paragraph
8t" sentence "....to "',T,Grease approve....".
MOTION:
Board Member Levine made a motion to accept the minutes as amended for the
meeting on August 21, 2013. Secretary Hansen seconded the motion, which carried by
unanimous 4-0 vote.
The Board agreed to review item VI. Consent Agenda next.
VI. CONSENT AGENDA
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Board of Trustees General Employees' Pension Trust Fund
October 21, 2013 2
4. Ratification of invoices paid since last quarterly meeting:
• Pension Resource Centers-August 2013 Adm. Fees $ 807.60
• Perry & Jensen- Legal Services through 08/15/13 $ 319.71
• FPPTA— Fall Trustee School Registration — Michael Rhodes $ 450.00
• Pension Resource Centers-September 2013 Adm. Fees $ 800.00
• Perry & Jensen- Legal Services Rendered through 09/15/13 $ 717.70
• Bogdahn Group- Invest. Monitoring Svc. For 3rd Q 2013 $2,625.00
• Gehring Group — Fiduciary Liability Ins. Renewal 10/13 to 10/14 $ 988.42
Board Member Gload questioned individual charges on the Perry & Jensen invoice through
09/15/13. Attorney Bonni Jensen reviewed the invoice and explained the charges and fees in
question.
5. Approval of new applicants for participation in Pension Plan
Janet McCorkle
6. Approval of withdrawal of contributions
None
7. Terminated employees who have not taken their contributions
None
End of Consent Agenda
MOTION:
Secretary Hansen made a motion to accept the Consent Agenda as presented. Board
member Levine seconded the motion, which carried by unanimous 4-0 vote.
IV. PRESENTATIONS
2. Senior Analyst— Risk Management: Rodney Louis, Gehring Group
a. Fiduciary Liability Insurance
Mr. Rodney Louis introduced himself to the Board. Mr. Louis explained why it is necessary for
a Pension Plan to have this coverage. He reviewed the differences between the expiring
policy and the new policy. The Board asked several questions to which he responded
accordingly. The Board questioned if the new policy included coverage for IRS sanctions. Mr.
Louis explained that at the moment he could not confirm if the new policy included coverage
for IRS sanctions. However he will review the policy and will let the Board know via email. He
explained that if the new policy did not include this coverage the Board could purchase an
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Board of Trustees General Employees' Pension Trust Fund
October 21, 2013 3
endorsement to the policy. He explained that usually this type of endorsement costs around
$500.00
MOTION:
Board member Levine made a motion to approve the purchase of an endorsement to
the policy for coverage of IRS sanctions, if the new policy does not cover it, not to
exceed $500.00. Secretary Hansen seconded the motion, which carried by unanimous
4-0 vote.
MOTION:
Board member Levine made a motion to accept the Fiduciary Liability Insurance as
presented. Secretary Hansen seconded the motion, which carried by unanimous 4-0
vote.
3. Quarterly Presentation by Monitor—Tyler Grumbles, Bogdahn Consulting
a. Quarterly Performance Review
Tyler Grumbles, Bogdahn Consulting, LLC briefly reviewed the performance of the market
environment for major market indexes as of September 30, 2013. He reported it was a great
quarter for domestic equities as all domestic indexes posted solid gains during the third
quarter. Small caps outperformed mid and large caps during the quarter and growth stocks
outperformed value across all capitalizations on the domestic equity front. International
stocks roared back during the third quarter outpacing domestic equities. However the month
to month performance was extremely volatile. Mr. Grumbles reported that for quarter ending
September 30, 2013 the Plan's market value was $2,796,463 and the asset allocations were
Domestic Equity 49.6%, International Equity 9.5%, Fixed Income 38.4%, and Cash
Equivalent 2.5%. He reported that for fiscal year end the Plan's Total Fund (Gross) was at
12.18% versus the benchmark at 10.81%. Dana Core Equity was 21.95% versus the
benchmark at 19.34%, Dana International Portfolio was 18.36 % versus the benchmark at
16.98%, Dana Fixed Income was up 0.18% versus the benchmark at -0.71%. He reviewed
the financial reconciliation quarter to date. Mr. Grumbles noted that the returns reported are
preliminary because the final statements from Salem Trust are not available yet. He reported
that overall it has been a great fiscal year and the Plan is in line with other Pension Plans.
The Board had a brief discussion regarding the Dana portfolio. Mr. Grumbles reported that
Dana has had a good long term strategy. Board Member Levine reported that he would like to
see a report that reflects Dana's returns versus other manager, specifically compared to a
search that Mr. Grumbles had provided to the Board a while back. Mr. Grumbles will see if he
can bring this information to the next Pension Board meeting. Mr. Grumbles reported that he
is unsure of what this year may bring. However they are doing everything to be well
positioned moving forward. The Board asked Mr. Grumbles if he has considered REIT's as
an investment for the Plan. Mr. Grumbles explained that he would consider REIT's if the Plan
was large. He explained that REIT's tend to be illiquid investments. He reported that he will
see if he can find any private REIT's to present to the Board.
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Mr. Grumbles reported that Salem Trust Fund began offering Class R6 shares for the
Templeton Global Total Return. He explained that this share class is less expensive,
currently the fee is 75 basis points and the new share class is 65 basis points.
MOTION:
Board Member Levine made a motion move to the Templeton Global Total Return
Class R6 shares. Secretary Hansen seconded the motion, which carried by unanimous
4-0 vote.
MOTION:
Board Member Gload made a motion to accept the September 30, 2013 quarterly report
from Bogdhan Consulting as presented. Secretary Hansen seconded the motion,
which carried by unanimous 4-0 vote.
VII. BUDGET REPORT
8. Income Statement & Expenditure Report, Finance Staff.
Board Member Gload reported that everything seems to be in line. However the Board may
need to consider revising the budgeted actuarial fees due to the GRS's GASB No. 67
Implementation package. Board Member Gload explained that Finance Director, JoAnn
Forsythe may have a better understanding of the new GASB requirements. Board Member
Gload left the meeting to find Ms. Forsythe. Board Member Gload returned to the meeting
and informed the Board that currently Ms. Forsythe was unavailable at another meeting. The
Board briefly discussed GRS's GASB No. 67 Implementation package. The Board agreed to
invite GRS to attend the next Pension Board meeting so that they can present and explain
the GASB No. 67 Implementation package. The Board asked Board Member Gload if she
could compile a 5 year expenditure summary report.
MOTION:
Board Member Gload made a motion to invite GRS to the February 3, 2014 Pension
Board meeting to discuss the GASB No. 67 Implementation package. Secretary
Hansen seconded the motion, which carried by unanimous 4-0 vote.
MOTION:
Secretary Hansen made a motion to accept the Income Statement & Expenditure
Report as presented. Board Member Levine seconded the motion, which carried by
unanimous 4-0 vote.
VIII. NEW BUSINESS
9. Update on Email from HR re; Pension question, Attorney Bonni Jensen.
Attorney Bonni Jensen reported that she had received an e-mail from the Village's HR
Director, Merlene Reid, stating that the Village Manager had advised that the Village will be
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moving all non-unionized employees hired after October 1, 2013, to a 401a plan. In the e-
mail Ms. Reid had asked Attorney Bonni Jensen to advise on any steps that needed to be
initiated by the Pension Board in regards to this matter. Attorney Bonni Jensen reported that
she had advised Ms. Reid that this change should only require an Ordinance change, along
with the actuarial impact statement that is required for Ordinances. She also explained that
there may be labor issues that should be discussed with Village's labor counsel. Chair
Rhodes explained that he had been in communication with the Village Manager in regards to
this matter. He explained that he had been informed that the implementation of the 401a plan
for all non-unionized employees hired after October 1, 2013 will not take effect on October
1st, however there will be continued conversations regarding this matter. Chair Rhodes
reported that he had suggested that this topic and the associated pros and cons and
underlying options be addressed with some participation of the General Employees Pension
Board. The Board had a lengthy discussion regarding the implications to the Pension Plan
related to this matter. The Board agreed to keep this item on the next Agenda for review
under Agenda item "Unfinished Business".
10. Summary Council Presentation, Attorney Bonni Jensen.
Attorney Bonni Jensen reported that the presentation to the Village Council is on November
14 and the report is due to the Village Clerk on November 5. Ms. Jensen reviewed the
Summary of Actions for quarter ending September 30, 2013. Chair Rhodes will present the
report to the Village Council.
MOTION:
Board Member Levine made a motion to accept the Summary of Actions for quarter
ending September 30, 2013. Secretary Hansen seconded the motion, which carried by
unanimous 4-0 vote.
11. Salem Trust Updates,Administrator Dixie Martinez.
Administrator Dixie Martinez presented the latest update from Salem Trust regarding the
conversion of their Trust Custody platform earlier this year. The Board asked for Ms. Jensen
and Mr. Grumbles opinion and thoughts on the matter. Mr. Grumbles reported that Salem
Trust has given other Pension Plans a reduction in fees due to the issues encountered during
the conversion. The Board agreed that they should request the fee reduction from Salem
Trust. The Board asked Mr. Grumbles to send a letter to Salem Trust requesting a fee
reduction. The Board agreed that they should invite Salem Trust to the next Pension Board
meeting so that they can provide them with an update on their transition.
IX. ANY OTHER MATTERS
Chair Rhodes reported that he had attended the FPPTA Trustee School held at the PGA
National Resort. He briefly updated the Board on the topics discussed at the Trustee School.
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October 21, 2013 6
The Board noted that Board Member John Kuper had not attended the last two Pension
Board meetings. The Board asked Ms. Martinez to contact Board Member John Kuper to
confirm that he is still interested in serving as a Trustee on the Board.
X. COMMUNICATIONS FROM CITIZENS
There were no communications from citizens.
XI. ADJOURNMENT
MOTION:
Board Member Gload moved to adjourn the meeting. Secretary Hansen seconded the
motion, which carried by unanimous 4-0 vote.
There being no further business, the meeting was adjourned at 3:10 p.m.
fully submitted,
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Ad inistr 't r
Village of equ sta Gen r mployees' Pension Plan
Board Member
Village of Tequesta General Employees' Pension Plan