HomeMy WebLinkAboutMinutes_Pension Public Safety_08/03/2009 (2) Public Safety Officers' Pension Board
Regular Quarterly Meeting 8/3/09
1. Minutes of the 5/4/09 regular quarterly meeting and the 7/7/09 special
meeting were approved with minor changes.
2. Tony Brown with Rockwood Capital Advisors provided the quarterly
investment manager's report., and clarified Rockwood's Tong -term bond
strategy as requested by the board.
3. Consensus of the board was to use the following mechanism for proxy
voting: Individual members could at any time call Mr. Brown if an
individual member wanted the board to take a position on any one proxy
vote; board could then call a special meeting to take a position and advise
Rockwood to act on their behalf.
4. Dan Johnson with Bogdahn Consulting LLC presented the quarterly
monitor's report.
5. Pension Coordinator McWilliams reported the Village Council
consideration of funding $340,000 into the fund had been tabled to the
8/13 Village Council meeting until an actuarial report requested by the
Village Manager came forward. The board requested a copy of that report
when received.
6. Council Member Arena questioned at what point employees should
contribute a little more than 5% to build up over time so that employees
25 -30 years from now could be assured they would receive their pensions.
Response from the board was salary increases were being kept at 6 %,
8% return on investments, new mortality tables and smoothing had been
adopted, and the actuary amended figures from time to time.
7. The board ratified the following payments:
Business Services Connection, Inc.
Office Work for weeks ended 4/17/09 through
07/4/09 $ 1,571.57
Hanson, Perry & Jensen, P.A.
Services through 5/15/09 850.25
Business Services Connection, Inc.
Preparation of 5/4/09 quarterly meeting minutes 186.89
Florida State University
Registration fee — David Cooper
30 Annual Police Officers & Firefighters
Pension Trust School 170.00
Doubletree Hotel, Tallahassee 477.00
Public Safety Officers' Pension Board
Regular Quarterly Meeting 8/3/09
Page 2
Gabriel Roeder Smith & Company
Actuarial Services thru 4/30/09 7,581.00
8. The board approved the following payments:
Perry & Jensen, LLC.
Services through 07/15/09 2,231.25
Business Services Connection, Inc.
Preparation of 7/7/09 special meeting minutes 127.42
Bogdahn Consulting, LLC
Fee for Quarter ending 6/30/09 3,750.00
Rockwood Capital Advisors, LLC
Fee for Quarter ending 6/30/09 5,385.17
Village of Tequesta
Reimburse Fed Ex charges 6.45
9. The proposed 2010 budget was reviewed.
10. Pension Coordinator McWilliams advised at the 7/7/09 special meeting,
the Village Manager had commented regarding the board's responsibility
to provide pension plan options and had clarified that this board would be
the task force for that. Attorney Jensen advised the board had a fiduciary
responsibility to the members of the plan, which was not necessarily
compatible with saving the Village money, which should be a goal of the
task force. Chair Sabin requested communication back to the Village
Manager that none of the board be members of the task force because of
their fiduciary relationship with the members, which they believed to be a
conflict.
11. Consensus was to change the meeting times starting with the November
meeting so that one board would meet from 8 a.m. to 11:30; the other
board would meet from 1:00 p.m. to 4:30, and the boards would continue
to rotate meeting times.
12. The board approved compliance with the mandatory provisions of the
HEART Act; also to apply to those who became disabled.
13. Attorney Jensen explained there was no current legislation reducing
175/185 money if the fund was fully funded, unless the plan had been
terminated.
14. Attorney Jensen reviewed the following recent changes in the law:
Public Safety Officers' Pension Board
Regular Quarterly Meeting 8/3/09
Page 3
• Definition of "creditable service" or "credited service ": The board
approved allowing firefighters and police to buy back their credited
service.
• Definition of "Firefighter ": Attorney Jensen would recommend
changing the plan definition.
• Option to expand trustee terms: The board chose to stay with 2-
year terms.
• Allow plan to be amended to allow retiree to request the board
make payment of third -party insurance premiums. The board
approved this amendment.
• Fiduciary standards: Attorney Jensen advised this plan was okay
with fiduciary standards.
• Investments in Foreign Securities allowed to 25% at market value:
No action taken.
• All drafts to be signed by two fiduciaries: No action needed.
• Require Identification and Divestiture of "Scrutinized Companies"
beginning January 1, 2010: Rockwood would not invest in anything
on the list and the annual report should have a line for reporting. If
any investment in commingled funds anything on the list must be
removed.
• Boundaries of a Special Fire Control District: This would have no
effect on the Village's relationship with Jupiter Inlet Colony.
• Retirees may change their designated beneficiary up to twice
without approval of the Board or current beneficiary: information
only —this plan has no retirees
• Termination of Pension Plans: the Lake Park decision would have
to be added to the plan.
The board voted to recommend that the plan conform with State law.
15. IRS determination letter status: Attorney Jensen reported requested
information had been sent back.
Meeting Adjourned
TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND
REGULAR QUARTERLY MEETING MINUTES
August 3, 2009
Call To Order And Roll Call
A regular quarterly meeting of the Tequesta Public Safety Officers' Pension Trust
Fund Board of Trustees was held at the Tequesta Village Hall, 345 Tequesta
Drive, Tequesta, Florida, on August 3, 2009. The meeting was called to order at
8:00 a.m. A roll call was taken by Recording Secretary Betty Laur. In
attendance at the meeting were: Chair Ed Sabin, Secretary David Cooper, Board
Member Ken Nielson, and Board Member Ray Giblin. Also in attendance were
Attorney Bonni Jensen, Pension Coordinator Lori McWilliams, Recording
Secretary Betty Laur, Tony Brown with Rockwood Capital Advisors, Dan Johnson
with Bogdahn Consulting, LLC, and Finance Director Joann Forsythe, who
arrived at 8:10 a.m. Board Member Robert Young and Senior Accountant
Monica Rahim were absent from the meeting. Chair Sabin welcomed Village
Council Member Vince Arena.
Approval of Agenda
MOTION:
Secretary Cooper moved approval of the agenda with the addition of a
request for payment to the Village of Tequesta for reimbursement of
Federal Express Charges in the amount of $6.45. Board Member Giblin
seconded the motion, which carried by unanimous 4-0 vote.
Approval of Minutes
MOTION:
Secretary Cooper moved approval of the minutes of the 5/4/09 regular
quarterly meeting and the 7/7/09 special meeting as amended with the
following changes: Minutes of 5/4!09 on page 3, first paragraph, change
"Chair Nielson" to "Board Member Nielson"; in the motion on page 10
change "Perry & Jensen, LLC" to The Law OfFces of Perry Bi Jensen, LLC".
Minutes of 7/7/09 on page 3, paragraph 4, delete "to" in the second
sentence and "appears" in the 4~' sentence. In the last sentence in
paragraph 2, strike "and how long could this go on". Chair Sabin
commented a plus sign or minus could be helpful in #ront of some of the
numbers; Pension Coordinator McWilliams indicated clerks must
transcribe what was said. Attorney Jensen advised it was okay to provide
clarification. Chair Sabin requested the addition of the word "positive" in
front of 8% in the first paragraph on page 4 of the 5/4/09 minutes, for
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Board of Trustees of Public Safety Officers' Pension Trust Fund
August 3, 2009 2
clarification. Board Member Nielson seconded the motion, which carried
by unanimous 4-0 vote.
Finance Director Joann Forsythe arrived at this point in the meeting.
Swearing in of Members David Cooper and Ray Glblin
Pension Coordinator Lori McWilliams swore in David Cooper and Ray Giblin
upon renewal of their terms.
Presentation of Investment Manager Report
Tony Brown, Rockwood Capital Advisors, presented the investment manager's
quarterly report for the quarter ended June 30, 2009, reporting under
performance for the year. On a positive note, the run on equities which began
March 9 still continued, showing the beginning of stabilization of the market.
Since July 1 the financial sector numbers had increased; however, there were
only a few of the Federal Reserve districts in which banks were really lending.
Consumer discretion was showing signs of strength, as were technology and
health care. Individual stocks were discussed. Board Member Nielson
expressed confusion with incorrect figures on the Dash to Trash page, and also
commented that it was misleading; Mr. Brown explained one must take into
consideration that the huge gains were not truly gains but one had to incorporate
the losses that had occurred. A corrected page was provided .
Board Member Nielson expressed concern with proxy voting always being done
precisely as management recommended, and gave an example of Lockheed's
proxy vote; discussion ensued, and the annual proxy voting procedure was
explained. Consensus of the board was to use the following mechanism for
proxy voting: Individual members could at any time call Mr. Brown if an individual
member wanted the board to take a position on any one proxy vote; board could
then call a special meeting to take a position and advise Rockwood to act on
their behalf.
Mr. Brown advised he had been asked to talk about their long term outlook for
fixed income. He explained the Fed had the ability to take out liquidity that had
been injected by the two stimulus packages, but Rockwood questioned whether
they would have the fortitude to do it. From a fixed income perspective, inflation
was the investment manager's biggest concern. If the Fed would attack inflation
long before it was seen, they would have to do things to push rates up which
might not seem like the right thing to do in the current economic situation, but if
they waited until they saw all the green lights of the economy coming back, it
would be too late. There would be an inflationary spiral that would be tough to
control. The question was whether over the next 6-12 months the Fed would
Regular Quarterly Meeting Minutes
Board of Trustees of Public Safety Officers' Pension Trust Fund
August 3, 2009 3
actually step up to the plate and begin taking the liquidity out of the market.
Rockwood would keep a close eye on the Fed and the inflationary outlook, and
position the portfolio shorter to not get whipsawed by any potential run-up by
inflation.
Mr. Brown advised he would look at exactly the mechanisms in place for proxy
voting to assure Rockwood had a good handle on that and would work with
Salem Trust on #hat. Chair Sabin clarified the Board would bring to Rockwood's
attention any question on proxy voting, but if later they found the public websites
did not work that could change or if there were efficiencies that could be utilitized
the Board was interested in hearing about them.
Monitor's Quarterly Report
Dan Johnson, Bogdahn Consulting, LLC, reported the entire economic landscape
had changed during 2008, then in March 2009 a valuation rally came about, with
risk coming back into the market, and financials gaining value, but the quality
companies that held up okay were not in that rally. Chair Sabin pointed out the
equity investment market had been flat for the past ten years, and 60% of that
portfolio was in that field, so the Village had to contribute to make up that
shortfall. Mr. Johnson commented the S8~P 500 was approximately 980 points-
two years ago it had been at 1500 points, so to get back to that could take seven
years of price appreciation to get back to where it had been. Mr. Brown
commented if the liquidity was taken out, this market could come back to 8-10%
upside on stocks and 4-5% upside on bonds, which was really where it should
be. Mr. Johnson reported financials had been up 29% after being one of the
worst performers during the last calendar year. Portfolio performance had
depended upon stock selections as well as the amount of stocks and the amount
of bonds in the portfolio. The quarter had started with 10% less stocks than the
target, but now the 60-40 target was in place as the market was beginning to
move. Performance of stocks and bonds, and comparison to peers was
reviewed. Since current market value was continuing to increase-up 4.1 % in
July there was a possibility there could be positive results for the year; things
were significantly better than nine months ago. Mr. Johnson explained the risk
return chart showed more return with less risk. Chair Sabin pointed out the
Board had chosen Rockwood as the investment manager because of their low-
risk strategy to manage downside losses.
Council Member Arena questioned at what point employees should contribute a
little more than 5% to build up over time so that employees 25-30 years from now
could be assured they would receive their pensions. Response from the board
was that salary increases were being kept at 6%, target of 8% return on
investments, adoption of new mortality tables, and adopted 5% smoothing. The
actuary calculated the estimated benefits and recommended changes in
Regular Quarterly Meeting Minutes
Board of Trustees of Public Safety Officers' Pension Trust Fund
August 3, 2009 4
assumptions from time to time. The newly adopted mortality table would change
from time to time as ages in the population changed, and when the actuary made
his determination in 2009 to determine figures for 2010 and 2011, he would have
current information on life expectancy, age of participants, etc., to tell how much
would be needed from the Village to fund the plan. Funding currently was lower
because this was a younger plan. Smoothing would help the Village to keep their
contributions more in line instead of having to make a large contribution all at
once. Council Member Arena commended the Board on their diligence, and
commented he just wanted to assure there was a certain dollar amount to be
contributed from the employees and from the Village to be sure everyone shard
the contributions so that employees would be able to retire when the time came.
Village Council had discussed making a large contribution, 27% which assumed
a pessimistic rate of return of 7.5%; but the board had recommended and
approved salary increases being kept at 6%, target of 8% return on investments,
adoption of new mortality tables, and 5% smoothing, although they would
appreciate any additional contributions.
Unfinished Business: Village Council consideration of funding $340,000
into the Public Safety Officers' Pension Fund
Pension Coordinator McWilliams reported the Village Council had tabled this item
to the 8/13/09 Village Council meeting until the Village Manager received a
special actuarial report he was having done. The Board requested a copy of the
report, and questioned who would pay for the report. Attorney Jensen advised it
would have to come before this board if they were to pay; Chair Sabin
commented this board had not ordered the report so it would be appropriate for
the Village to pay for it. Attorney Jensen advised the actuarial firm should have
contacted the board to let them know if they were doing a study. Chair Sabin
commented there was a reference in the minutes of the special meeting of July 7
that the Village Manager had recommended to the Council to do a study to look
at alternatives to the current plan, and the Board would like to see the results of
that study to understand how it tied into everything. A contribution made by the
Village would affect the actuarial valuation and determine the percentage the
Village would then contribute, depending upon how the Village determined that
contribution was to be used.
Standing Reports (Information Items)
There were no new applicants, changes of beneficiary, requests for withdrawal of
contributions or terminated employees who had not taken their contributions to
report. A revenue and expenditure report was included in the meeting packets
for information.
Payments to be Ratified (Payments made since the last meeting)
Regular Quarterly Meeting Minutes
Board of Trustees of Public Safety Officers' Pension Trust Fund
August 3, 2009
5
MOTION:
Secretary Cooper moved to ratify the payments made since the last
meeting as presented on the agenda. Board Member Nielson seconded the
motion, which carried by unanimous 4-0 vote. Therefore, the following
payments were ratified:
Business Services Connection, Inc.
Office Work for weeks ended 4/17/09 through
07/4/09 1, 571.57
Hanson, Perry & Jensen, P.A.
Services through 5/15/09 850.25
Business Services Connection, Inc.
Preparation of 5/4/09 quarterly meeting minutes 186.89
Florida State University
Registration fee -David Cooper
30t Annual Police Officers & Firefighters
Pension Trust School 170.00
Doubletree Hotel, Tallahassee 477.00
Gabriel Roeder Smith ~ Company
Actuarial Services thru 4/30/09 7,581.00
Payments to be Reviewed and Approved
MOTION:
Board Member Giblin moved to approve the payments as requested. Board
Member Nielson seconded the motion, which carried by unanimous 4-0
vote. Therefore, the following payments were approved:
Perry & Jensen, LLC.
Services through 07/15/09 2,231.25
Business Services Connection, Inc.
Preparation of 7R/09 special meeting minutes 127.42
Bogdahn Consulting, LLC
Fee for Quarter ending 6/30/09 3,750.00
Rockwood Capital Advisors, LLC
Fee for Quarter ending 6/30/09 5,385.17
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Board of Trustees of Public Safety Officers' Pension Trust Fund
August 3, 2009 6
Village of Tequesta
Reimburse FedEx charges 6.45
Budget Report: Quarterly Budget Report Expenditures and Discussion of
New Budget
Finance Director Forsythe led the discussion in the absence of Senior
Accountant Monica Rahim, and explained some figures had been inserted into
the budget worksheets for those items that were known, but the Board needed to
indicate the other figures. Proposed FY 2010 figures by the Board to be inserted
were Legal Services $8,000 for Fire and $3,000 for Police; Actuarial Services
$10,000 for Fire and $4,000 for Police; Travel 8~ Per Diem $500 for both Police
and Fire. The Board requested staff insert estimated figures for Other
Miscellaneous Charges and Obligations; Books, Publications, Subscrip#ions and
Memberships; and Seminars and Training would be $1,000 for Police.
MOTION:
Secretary Cooper made a motion to amend the budget as discussed.
Board Member Giblin seconded the motion, which carried by unanimous 4-
0vote.
New Business
Discussion of Village Manager's comments re: this Board's responsibility
to provide pension plan options as discussed at the 7/7/09 special meeting
Pension Coordinator McWilliams reported at the 7/7/09 special meeting of the
Board, Board Member Nielson had suggested a task force and the Village
Manager had advised this Board was the task force. The Village Council had
tasked this Board to continue to be proactive on dealing with funding and options,
and a suggestion was made that the Board might want to meet more often in
these difficult #imes, and also the Board might want to consider other options.
Board Member Nielson commented he had suggested a special task force be
appointed because of the difficulty of the Board working within the confines of the
sunshine law. Attorney Jensen advised the Board had a fiduciary responsibility
to the members who were the participants and beneficiaries in the fund; and the
reason Board Member Nielson's suggestion had been a good one was because
a special task force would not have that same relationship. Saving the Village
money would possibly be one of the goals of the task force, but that was not one
of the jobs of this pension fund. The board's responsibilities were acting in the
best interests of the participants and beneficiaries and defraying the reasonable
expenses of the pension plan. Thinking about alternatives or options to the
pension plan, different than defining the functions which was something the
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Board of Trustees of Public Safety Officers' Pension Trust Fund
August 3, 2009 7
Board had done and would be working on-funding and dealing with options for
funding the program were clearly within the Board's mandate. But those other
types of alternatives to what might be happening now could not be done while
still observing fidelity to the constituents and beneficiaries. Both Attorney Jensen
and Chair Sabin indicated they had not been in attendance at the 7R/09 special
meeting. Chair Sabin commented this probably had not been communicated to
the Village Manager at that meeting as just stated by Attomey Jensen. Chair
Sabin stated it was his reaction that this Board's responsibility was well described
and he suggested if there were a task force that none of the Board members be
members of the task force unless to provide advice and answer questions.
Attorney Jensen advised the members of this Board were wonderful experts with
the ability to give information to the task force. Chair Sabin commented the task
force would not be a task force of this Board, but a task force of the Village.
Attorney Jensen advised that usually early retirement options, changing the
pension benefits, etc., were generated from the employer side.
Chair Sabin asked how this could be communicated back to the Village. Attorney
Jensen clarified that the communication would be that the Village could have a
task force, but this Board because of their fiduciary relationship with the
participants and beneficiaries and acting in the best interest of the participants
and beneficiaries was not compatible with cutting benefits and saving costs; and
in order to have an open and fair discussion about those particular items, the
task force members could not have a fiduciary relationship with the participants
and beneficiaries. Pension Coordinator McWilliams asked if where the minutes
stated this Board was the task force, that was not the case-Chair Sabin
responded no, and that the minutes of this meeting should state Attorney
Jensen's statements on the responsibilities of this Board and that as a result of
that, the Board believed it would be a conflict between this Board's
responsibilities and their trustee members. Pension Coordinator McWilliams
pointed out that had not been discussed at the special meeting. Attorney Jensen
stated she had not been present. Chair Sabin commented the Board was now
getting advice from Attomey Jensen and was re-assessing that. Pension
Coordinator McWilliams indicated that would be communicated. Chair Sabin
asked that the minutes reflect that and stated this Board was happy to be
cooperative in anything they could do to provide technical advice or information.
Pension Coordinator McWilliams indicated asemi-verbatim transcription of this
agenda item would be made for the Village Manager and the Council.
Discussion of Possible Changes of Meeting Times
Pension Coordinator McWilliams explained changing the meeting times was
being proposed because of the length of the meetings, which did not allow the
first pension board time to finish their agenda before the second board meeting
was to start. Discussion ensued. Consensus was to begin the first meeting
Regular Quarterly Meeting Minutes
Board of Trustees of Public Safety Officers' Pension Trust Fund
August 3, 2049 8
each quarter at 8 a.m. and the second meeting at 1 p.m., allowing at least an
hour between meetings for lunch, with the two boards continuing to rotate the
meeting times. If also approved by the General Employees' Pension Board at
their meeting that day, this would start with the November, 2009 quarterly
meeting.
Consideration of Approval of the Heart Act
Attorney Jensen explained that federal law required amending the pension plan
to provide for those who died while in military service and to provide differential
wages, treated as pensionable wages, when a participant returned from military
service. These changes were mandatory. As an option, the same coverage
could also be expanded to those who became disabled.
MOTION:
Secretary Cooper made a motion to adopt both the mandatory and optional
parts of the Heart Act. Board Member Nielson seconded the motion, which
carried by unanimous 4-0 vote.
Clarification by Attorney Jensen re: 175/185 Funding
Attomey Jensen advised the Board that 175/185 monies did not stop coming into
the fund if the plan was fully funded. Only under a certain circumstance-when a
plan merged with other governmental functions--~fid the monies stop coming in
when the plan became fully funded. Board Member Giblin noted this question
arose at his union office, and he had wanted clarification from Attorney Jensen.
Chair Sabin asked if a disaster in the economy could affect the funding, which
was confirmed by the Attorney; however, if funds were less in a down year they
would come back up in a good year--manly a disaster would mean no funding.
State Legal Updates
Attorney Jensen reviewed Chapter 2009-97 changes affecting 175/185 plans
effective July 1, 2009. The law amended the definition of "creditable service" or
"credited services to allow a pension plan to provide for the purchase of credited
service for federal, other state, and county firefighting and police officer services,
if the services met the definition of firefighter or police officer under Chapters 175
and 185.
MOTION:
Secretary Cooper moved to amend the pension plan to allow individuals to
buy back their credited service in other municipalities, including federal,
state, county, firefighter and police officer services with the understanding
Regular Quarterly Meeting Minutes
Board of Trustees of Public Safety Officers' Pension Trust Fund
August 3, 2009 9
the cost is fully ac#uarially picked up by the member. Board Member Giblin
seconded the motion, which carried by unanimous 4-0 vote.
The definition of "firefighter" was amended to clarify that firefighter includes all
certified supervisory personnel whose duties include supervision, training,
guidance and management but does not include part-time or auxiliary firefighters.
Consensus was that Attomey Jensen recommend this amendment to the plan.
The law allows municipalities to expand the Trustee terms from the current 2-
year term to a 4-year term by passing an ordinance, special act, or resolution. If
expanded, the terms must be 4 years for all Trustees. Attorney Jensen
explained that longer terms would give the Board more experienced people.
Board Member Nielson expressed concern that since a 4-year term would be a
significant commitment, it might discourage getting new members. Discussion
ensued. Board Member Nielson commented his second 2-year term would
expire. in September and he planned to move on at that time. Consensus was
that terms for this Board shall remain 2 years.
The new amendment expands the power of the Board to allow the local plan to
be amended to allow a retiree to request that the Board make payment of third-
party insurance premiums for retirees, their spouses, and dependents, which
allows the retirees to take advantage of the federal $3,000 tax deduction for
insurance premiums paid by the pension board, and gives the board immunity
from liability for participating in the voluntary program if the Board's actions are
taken in good faith. Finance Director Forsythe commented Salem Trust would
be making payments for retirees. Attomey Jensen advised that Salem Trust had
the ability to make the third party insurance premium payments.
MOTION:
Board Member Giblin moved to approve paying third party insurance
premiums for retirees, their spouses, and dependents, as provided by the
law. Secretary Cooper seconded the motion, which carried by unanimous
4-0 vote.
The law clarifies tha# the Board's investments are subject to the Fiduciary
Standards of Florida Statutes, allows investments in foreign securities to 25% at
market value, and requires all drafts to be signed by two fiduciaries. Attorney
Jensen clarified this plan was in compliance with the Fiduciary Standards. Mr.
Johnson suggested using 25% as a ceiling; consensus of the Board was not to
make any changes today. Mr. Johnson indicated he might bring other proposed
changes to another meeting.
A significant new responsibility for the Board was added to require identification
and divestiture of "Scrutinized Companies"--companies complicit in the Darfur
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Board of Trustees of Public Safety Officers' Pension Trust Fund
August 3, 2009 10
genocide, companies providing provisions or supplies to the government of
Sudan, or that are involved in the Iran terrorist activities. Beginning January 1,
2010, the Board must identify and publicly report any direct or indirect holdings in
scrutinized companies and also begin the process of divestiture of those
holdings, which must be completed by September 10, 2010. Attorney Jensen
advised this Board only needed to look to the State Board of Administration, the
investment arm for the State of Florida, which had for several years been under
the requirements of the Protecting Florida's Investments Act; so had developed a
system whereby they reported on a quarterly basis companies which met these
particular criteria. Dan Johnson advised his firm would make sure the pension
plan had no investments that were on that list, and would make sure Rockwood
was aware of and would add that to their compliance check list provided to the
Board as a line item to make sure the members of the Board were advised.
Attorney Jensen advised that there would be a line on the Annual Report for
compliance. If the plan ever invested in a mutual fund, they could continue to
invest in scrutinized companies, and the first place this might come to the
Board's attention would be if they had a foreign investment; if they ever had a
dedicated foreign investment portfolio they would likely be in a commingled type
product and the investment manager did not have to be required to be divested
of these companies. The Board's responsibility was to notify them that if they
could, to remove those stocks from the portfolio or offer an alternative investment
which did not contain these stocks. The Board was not required to move to that
new product but did have the responsibility to look at that new requirement. The
divestment date was September 10, 2010.
The law added some new clarifications for Boundaries of a Special Fire Control
District to include an area that has been annexed until the 3-year period as
provided for in Florida Statutes or there is an Interlocal agreement. Attorney
Jensen clarified this would not affect the relationship with Jupiter Inlet Colony.
The amendment clarified that post retirement, retirees may change their
designated beneficiary up to twice without approval of the Board or the current
joint annuitant or beneficiary. The retiree did not have to show that the
beneficiary being removed was alive or in good health, but the retiree's benefit
may be actuarially reduced to account for the change.
The law also clarified the law regarding termination of pension plans in
accordance with the decisions of the Board of Trustees of the Town of Lake Park
Firefighters' Pension Plan v. Town of Lake Park: a municipality that terminates a
pension plan is responsible to fund all of the non-forfeitable benefits available
under the Plan.
MOTION:
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Board of Trustees of Public Safety Officers' Pension Trust Fund
August 3, 2009 11
Board Member Giblin made a motion to recommend the pension plan
conform to state law regarding termination of pension plans. Secretary
Cooper seconded the motion, which carried by unanimous 4-0 vote.
Update regarding IRS Determination Letter
Attorney Jensen reported her office had complied with requests made by the IRS
after the initial submittal, and had sent the information back.
Adjournment
There being no further business, upon motion by Secretary Cooper, seconded by
Board Member Giblin, the meeting was adjourned at 10:52 a.m.
Respectfully submitted,
' ~ c~
~~ (J
Betty Laur
Recording Secretary