HomeMy WebLinkAboutMinutes_Pension Public Safety_5/31/2016 TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND
REGULAR BOARD MEETING MINUTES
MAY 31, 2016
I. CALL TO ORDER AND ROLL CALL
The Regular Quarterly Board Meeting of the Tequesta Public Safety Officers' Pension Trust
Fund Board of Trustees was held at the Village Hall Council Chambers, 345 Tequesta
Drive, Tequesta, Florida, on May 31, 2016. The meeting was called to order at 2:00 p.m.
A roll call was taken by Pension Administrator Kerry Dutton. In attendance at the meeting
were: Chairman Ed Sabin, Board Member John Terzakis, Board Member Kyle Stone, and
Board Member Adam Evans.
Also in attendance were Attorney Bonni Jensen, Pension Administrator Kerry Dutton, Jody
Forsythe and Michelle Gload, Village Finance Department.
IL PUBLIC COMMENT
None
III. APPROVAL OF AGENDA
It was brought to the Plan Administrator of the day of the week to reflect Tuesday.
MOTION
Board Member Terzakis made a motion to approve the Agenda as amended. Board
Member Stone seconded the motion, which carried by unanimous 4-0 vote.
IV. APPROVAL OF MINUTES
1. Tequesta Public Safety Officers' Pension Trust Fund Board of Trustees Regular
Quarterly Meeting Minutes — November 18, 2015 (Revised)
Ms. Dutton reviewed the revised minutes requested by the Board.
2. Tequesta Public Safety Officers' Pension Trust Fund Board of Trustees Regular
Quarterly Meeting Minutes — February 8, 2016
MOTION:
Board Member Stone made a motion to approve the Revised November 18, 2016 and
the February 8, 2016 minutes as amended. Board Member Terzakis seconded the
motion, which carried by unanimous 4-0 vote.
V. PRESENTATIONS
3. Investment Monitor - Tyler Grumbles, Bogdahn Consulting, LLC.
a. Quarterly Investment Report as of March 31, 2016
Tyler Grumbles, Bogdahn Consulting, LLC briefly reviewed the performance of the market
environment for major market indexes as of March 31, 2016. Mr. Grumbles reported that
for quarter ending March 31, 2016 the Plan's market value was $11,638,401 and the asset
allocations were Domestic Equity 49.9%, International Equity 14.3%, Domestic Fixed
Income 29.9%, Global Fixed Income 4.9% and Cash Equivalent 1.0%. He reported that for
quarter ending March 31, 2016 the Plan's Total Fund (Gross) was at 0.72% versus the
benchmark at 1.75%. Total Equity was -0.37% versus the benchmark at 0.69%, Total
Domestic Equity was 0.20% versus the benchmark at 0.97%, Total International Equity was
-2.32% versus the benchmark at -0.26%, Total Fixed Income was at 2.81% versus the
benchmark at 3.47%, Domestic Fixed was 3.25% versus the benchmark at 3.03%, and
Global Fixed was 0.24% versus the benchmark at 6.12%. He reviewed the markets
environment. He reviewed the performance of each manager individually as well as the
compliance checklist. There was a discussion on both Templeton and Browns lower
ranking and its effect of the fund. Mr. Grumbles stated Templeton is one of the better
choices within the Global Fixed sector. There was a discussion on the lag of active
management in the past 7 years. There was a lengthy discussion on reallocation and/or
rebalancing the portfolio. The Board stated their concerns with manager performance in
regards to meeting the targeted index.
b. Automatic Rebalance Letter
Ms. Jensen explained the purpose of the rebalance letter in order to have positive cash
flow.
MOTION:
Board Member Stone made a motion to approve the execution of the rebalance
Letter. Board Member Terzakis seconded the motion, which carried by unanimous 4-
0 vote.
VI. UNFINISHED BUSINESS
4. Experience Study on Reduction of Return Assumptions
Ms. Jensen reviewed the process of compiling information to give a proper analysis on
expectant rate of return. There was a discussion on different scenarios on reducing the
expectant rate of return down towards 7%. There was a discussion on the impact of the
reduction in the Village contribution. It is explained the importance of the expectant rate of
return to be reduced for the health of the Pension Fund. The Board reviewed the February
minutes once more for reference. There was a discussion on the trend of other pension
funds are using to implement the reduction of the expectant rate of return. Ms. Jensen
reviewed the Village contributions history and impact explained on the Actuary's impact
statement provided at the Boards request. Ms. Gload explained the method used by the
Village to pay the required employer contributions for FYE 2016 and has already met the
required contribution amount. Ms. Jensen suggests requesting a study on the impact of
reducing the expectant rate of return prior to the Valuation. There was discussion on
possible ways to implement a continued reduction of the expectant rate of return over a
period of time. Ms., Jensen reminded the Board to the Mortality table change that must be
implemented by 10-1-2016.
MOTION-
Board Member Terzakis made a motion to approve to reduce the expectant rate of
return .25% basis points for current period 10-1-2015 for the annual employer
contribution for the FYE 9-30-2017. Board Member Stone seconded the motion,
which carried by unanimous 4-0 vote.
VII. STANDING REPORTS (INFORMATION ITEMS)
5. New applicants for participation in Pension Plan:
None
6. Request for withdrawal of contributions (employees terminating employment
with the Village of Tequesta) — Ratification of withdrawals made since the last
meeting.
None
7. Terminated employees who have not taken their contributions:
None
VIII. PAYMENTS TO BE RATIFIED (PAYMENTS MADE SINCE LAST MEETING)
8. Ratification of Invoices paid since last quarterly meeting:
2/12/2016 Pension Resource Center $950.00
Administrative Fee - January 2016
2/12/2016 Pension Resource Center $950.00
Administrative Fee- February 2016
2/12/2016 Klausner, Kaufman, Jensen & Levinson $607.50
Legal Services Rendered through 10-31-15
2/12/2016 Klausner, Kaufman, Jensen & Levinson $747.50
Legal Services Rendered through 11-30-15
2/12/2016 Garcia Hamilton &Associates, L.P. $2,102.63
Investment Management Fee -4th Quarter 2015
3/9/2016 Pension Resource Center $950.00
Administrative Fee - March 2016
3/9/2016 Gabriel, Roeder, Smith & Company $2,061.00
Actuarial Services Rendered through 12-31-15
3/9/2016 Gamco Asset Management $5,266.15
Investment Management Fee -4th Quarter 2015
3/9/2016 Klausner, Kaufman, Jensen & Levinson $742.50
Legal Services Rendered through 12-31-15
3/9/2016 Klausner, Kaufman, Jensen & Levinson $1,710.00
Legal Services Rendered through 2-29-16
4/6/2016 Pension Resource Center $950.00
Administrative Fee -April 2016
4/6/2016 The Bogdahn Group $4,500.00
Consulting Fee - 1 st Quarter 2016
4/8/2016 Edward Sabin $317.19
Travel Expense Reimbursement- 3/7/16 to 3/8/16
Klausner, Kaufman, Jensen & Levinson Conference
5/9/2016 Pension Resource Centers $950.00
Administrator Fee - May 2016
Invoice# 14672
5/9/2016 Klausner, Kaufman, Jensen & Levinson $828.67
Legal Services Rendered through 3-31-16
Invoice# 17987
5/9/2016 Gabriel Roeder Smith & Company $3,580.00
Consulting &Actuaries Services Rendered
through 3-31-16
Invoice#421266
5/9/2016 Garcia Hamilton &Associates L.P. $2,171.29
Management Fee-1st Quarter 2016
Invoice#26817
Chairman Sabin reviewed Mr. Jensen's firm's conference. He stated it was very
educational and informative.
MOTION:
Board Member Stone made a motion to approve the invoices to be ratified as
presented. Board Member Terzakis seconded the motion, which carried by
unanimous 4-0 vote.
IX. PAYMENT TO BE REVIEWED AND APPROVED
9. Payments to be reviewed and approved:
April 30, 2016 Klausner, Kaufman, Jensen & Levison $2,701.25
Legal Services Rendered through 4/30/2016
MOTION:
Board Member Terzakis made a motion to approve the invoices to be reviewed and
approved as presented. Board Member Stone seconded the motion, which carried by
unanimous 4-0 vote.
X. NEW BUSINESS
10.Attorney Bonni Jensen, The Law Office of Klausner, Kaufman, Jensen & Levison
a. Budget Review, Mutual Consent & Public Records
Ms. Jensen reviewed the requirements of the budget this year and going forward along with
the actual expense report. She explained public record requests should be forwarded to
The Resource Centers. Sher also reviewed the good faith clause on attorney fees.
b. Normal Retirement Age Regulation
Ms. Jensen reviewed the historical actions and laws that have been put in place regarding
retirement age. She stated the Plan does allow for in-service distributions under specific
situations. She confirmed the Plan meets the age requirement along with the Safe Harbor
requirements.
c. Summary Plan Description- Draft
Ms. Jensen noted the SPD document was due to update. She stated it was a good time to
do so as the collective barging agreement for Firefighters' needed to be included. She
stated the updated SPD will not need to be updated for 2 years.
MOTION:
Board Member Terzakis made a motion to approve Summary Plan Description as
presented. Board Member Stone seconded the motion, which carried by unanimous
4-0 vote.
X. BUDGET REPORT
11. Quarterly Budget Report— Income Statement & Expenditure Report, Finance Staff
Finance Staff was not available to review the budget report. The Board reviewed the
Income and statement report as well as the Expenditure Report.
Ms. Dutton stated this is the Village's budget for tracking purposes and is separate form the
requirements of the state on filing the Plans budget and the actual expense report.
XII. ADMINISTRATIVE REPORT
12. Benefit Approval
Ms. Dutton informed the refund request from Mr. Cooper was confirmed through email at
the Boards request.
MOTION:
Board Member Terzakis made a motion to approve the benefit approval as
presented. Board Member Stone seconded the motion, which carried by unanimous
4-0 vote.
13.FPPTA 32Id Annual Conference
Ms. Dutton explained the upcoming 32"d Conference held by the FPPTA. Ms. Jensen
explained the difference between the conference and the trustee school.
Trustee Evans stated the recent addition to his family and explained the possibility of
resignation from the Board.
14.Pension Resource Centers Request for Online Banking Access
Ids. Dutton explained this is used form tracking on activity on the custodial statement side.
MOTION:
Board Member Stone made a motion to approve PRC online access at Fiduciary
Trust Bank. Board Member Terzakis seconded the motion, which carried by
unanimous 4-0 vote.
XI. ANY OTHER MATTER
Chairman Sabin requested all trustee to confirm their attendance to future Board meetings.
XII. COMMUNICATIONS FROM CITIZENS
XIII. ADJOURNMENT
MOTION:
Board Member Stone moved to adjourn the meeting. Board Member Terzakis
seconded the motion, which carried by unanimous 4-0 vote.
There being no further business, the meeting was adjourned at 3:46 p.m.
Respectfully submitted,
Kerry-' utton
Administrator
Village of Tequesta Public Safety Officers' Pension Plan
Board member
Village of Tequesta Public Safety Officers' Pension Plan