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SYNOPSIS OF GENERAL �MPLOYEE�' PENStON B�AFt� M��fiING
05/03/10:
1. Approved minutes of ineetings held 2/1/10 and 3/30/10.
2. Dan Johnson, Bogdahn Consulting, LLC. presented the quarterly report.
3. Chair Rhodes requested Dana be asked to report total equity analysis and
not just one section at the exclusion of the other.
4. Mr. Johnson was to bring information to the next meeting showing impacts
if TIPS and high yield bonds were added to the portfolio and to have a
conversation with the �ana representative at the next meeting regarding
these.
5. Approved the report for the quarter ended 3/31/10 as presented by Dan
Johnson of Bogdahn Consulting, LLC.
6. Attorney Jensen reported the IRS Determination Letter initial review had
been completed and something was expected to be received soon.
7. Discussion of the actuary's cost proposal to perForm a DROP plan
analysis concluded adding a DROP plan was a good idea, but premature
due to the age of participants in this plan.
8. Board Member Terzakis reported First Citizens Bank was not qualified as
a qualified public depository. Consensus was to add this as an agenda
item for the next quarterly meeting, and Board Member Gload was asked
to provide other alternatives for that meeting.
9. The following items were approved on the Consent Agenda:
Ratification Of fnvoices Paid Since Last Quarterly Meeting:
• Business Services eonnection, Inc. $9,�39.40
• Business Services Connection, Inc. $ 481.68
• Perry & Jensen, LLC. $2,679.30
• Village of Tequesta $ 18.74
Payments Reviewed And Approved:
• Business Services Connection, Inc. $ 214.08
• Perry 8� Jensen, LLC $1,600.06
• Bogdahn Consulting, LLC $2,825.00
• Dana InvestmentAdvisors $1,990.69
�YNOPSIS OF GENERAL �MPLOYEE�' PENSION BOARD MEETfNG
05/03/10:
2
Approval of new applicants for participation in Pension Plan: None
Approval of withdrawal of contributions:
CMristopher Dittmeier Date of Separation: 4f�f10
Total Gross $6,299.69 ($6,116.20 + 3% interest $183.49)
20°fo mandatory withholding $9,259.94
Total Check Amount $5,039.75
Terminated Employees who have not taken their contributions - None
Revenue and Expenditure Report
10. Voted to add $5,000 into the investment services budget and adjust the
savings in travet and per diem to cover the overages in actuarial services
and insurance.
11. Reviewed reports of 3-year budget history and actuarial services invoices
as presented by Board Member Gload.
12. Approved Dana Investment Report for the quarter ended 3/31/10.
13. Requested the following actions/changes to the proposed contract with
Gabriel Roeder Smith and Company:
Verify annual cost, add hourly rates, tie fees to duties, make sure they
understood the provision regarding scope of work per project, add current
fee structure for the actuary, add a 90-day notice for termination, add an
insurance provision, add that additionaf worlc needed to be approved by
the plan administrator, and ask for a discounted rate.
94. Discussed addition of a General Empfoyees` pension health insurance
provision. Consensus this was information and it was premature to
amend the plan.
15. Approved the trustee election for July 6, 2010 with runoff if necessary July
23, 2010 and certified list of candidates eligible for the positions. Deanna
Mayo and Michelle Gload were the employee candidates who needed to
apply; judges were to be Lori NfcWilliams and Joann Forsythe, or Merfene
Reid if Ms. Forsythe declined.
16. Attorney Jensen was to update the summary plan document to add 3%
interest compounded annually on withdrawals of contributions for non-
SYNOPSIS OF GENERAL EMPLOYEES' PENSION BOARD MEETING
05/03/10:
3
vested employees.
97. Board Member Gload was requested to look into past payments made at
3% simple interest.
18. Discussed distribution forms and recommend the following procedure for
refund of contributions:
1) Applicant applies to Human Resources to verify eligibility and HR
signs off. (Signature fine to be added to form by Ha)
2) Forms forwarded to Finance Department for calculations.
3) Forms returned to HR to verify this is okay with applicant; applicant
to sign at this point.
4) Forms to Pension Administrator to sign off.
5) Forms to Senior Accountant Monica Rahim for execution.
Attorney Jensen was to insert a calculation on page one of the drafted
investment policy statement; the steps outlined above were to be inserted
on page two, and this item would be added to the ne�ct quarterly meeting
agenda.
19. Attorney Jensen reminded the trustees to fill out their Form 1 and send to
the Supervisor of Elections by a method that provided proof of receipt.
20. Approved �n �ddendum r�quested by the custodian indicating they woufd
be responsible for tax reporting, benefit payments, payment of bills,
purchase and sale of mutual funds, etc., and they would provide a monthly
st�tement and a check register showing alf income. The 2005 agreement
would be provided at the next meeting for review.
29. Attorney Jensen reported there had been no new legisfation regard"rng
pensions.
22. The pension benefit application process was discussed. Attorney Jensen
was to bring the procedure back to the next meeting for approval.
23. Approved attendance at the FPTTA Trustees School September 26-29 at
PGA National Resort by Board Members Mayo, Gload, and Terzakis.
24. Dan Johnson advised he would present a proposed commission recapture
agreement for approval.
END OF SYNOPSIS
�?�AiFT
TEQUESTA GENERAL EMPLOYEES PENSION
TRUSTFUND
QUARTERLY BOARD OF TRUSTEES MEETING
May 3, 2010
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 3, 2010. The meeting was called to order at
8:02 a.m. A roll call was taken by Recording Secretary Betty Laur. Board
Members in attendance at the meeting were: Chair Michael Rhodes, Board
Member Deanna Mayo, Board Member Michelle Gload, and Board Member John
Terzakis. Secretary Carl Hansen was absent from the meeting. Also in
attendance were Attorney Bonni Jensen, Dan Johnson with Bogdahn Consulting
LLC, Pension Coordinator Lori McWilliams, and Betty Laur, Recording Secretary.
II. Approval Of Agenda
MOTION
Motion was made by Board Member Terzakis, seconded by Board Member
Mayo, to approve the agenda as submitted. Motion carried by unanimous
4-0 vote.
III. Approval Of Minutes
1. Tequesta General Employees' Pension Trust Fund Board of
Trustees Regular Quarterly Meeting Minutes — February 1,
2010
2. Tequesta General Employees' Pension Trust Fund Board of
Trustees Emergency Meeting Minutes — March 30, 2010
MOTION
Motion was made by Board Member Mayo, seconded by Board Member
Gload to approve the minutes of February 1, 2010 and March 30, 2010 as
submitted. Motion carried by unanimous 4-0 vote.
IV. Presentations
3. Quarterly Presentation By Monitor
Chair Rhodes requested Dan Johnson, Bogdahn Consulting, LLC, add
comments regarding the investment manager's report to his presentation. Mr.
Johnson reported the economy had been better, but there were concerns with
Tequesta General Employees Pension Trust Fund
, Quarterly Board Of Trustees Meeting Minutes
May 3, 2010 2
debt of Greece, Spain, and Portugal. The Federal Reserve was expected to
keep rates low for some time, which would generate methodical low rates from
bonds, but when rates went up bonds would turn negative. Stocks and bonds
were doing well compared to a year ago. Mr. Johnson explained how the
investment manager, Dana Investment Advisors, was positioned to take
advantage of possible rising interest rates, by using shorter durations and gaining
higher yields from corporate bonds and mortgages. Board Member Terzakis
asked how to introduce a new asset class. Attorney Jensen advised the
ordinance would have to be changed. Board Member Terzakis expressed
concern the fund may have missed a tremendous opportunity by not investing in
high yield bonds, and advised he would like to take this to the Village Council.
These high-yield or junk bonds were high risk but had been up 52% over the past
year. Board Member Terzakis indicated he would like 1% of the portfolio placed
in this asset class. Mr. Johnson responded he would come back to this subject,
and reviewed the rest of his report. The fund was up 6.8% six months into the
fiscal year. Chair Rhodes suggested Bogdahn and Dana follow the same format
in reporting total equity, and requested that Dana be asked to report total equity
analysis and not just one section at the exclusion of the other. Mr. Johnson
explained the Dana portfolio was made up of three strategies, Dana equity, Dana
international equity, and Dana fixed income. There were no TIPS in the portfolio
at this time, but Mr. Johnson had confirmed Dana knew they could invest in
those. Mr. Johnson advised the portfolio had been conservative and was doing
well, and more risk could be introduced. Board Member Terzakis spoke in favor
of adding a high-yield bond asset class, and expressed his opinion the portfolio
was being managed more generically than specific to the Tequesta pension plan
and the youngness of it. Mr. Johnson commented bonds had been brought
down from A rated to triple B, which was a big step, and a dedicated international
component was now in place. Discussion ensued. Chair Rhodes asked why
TIPS were not being used. Mr. Johnson indicated he could bring a workup on
high yield bonds and TIPS to the next meeting. Chair Rhodes requested Mr.
Johnson have another conversation with Dana regarding adding TIPS. Mr.
Johnson advised he would bring information to the next meeting showing impacts
if TIPS and high yield bonds were added, and he would have a conversation with
the Dana representative at the next meeting regarding these.
MOTION
Board Member Gload made a motion to approve the quarterly report
presentation from Bogdahn Consulting, LLC. Board Member Mayo
seconded the motion, which carried by unanimous 4-0 vote.
MOTION
Board Member Gload made a motion to approve the quarterly report from
Dana Investment Advisors. Board Member Terzakis seconded the motion,
which carried by unanimous 4-0 vote.
Tequesta General Employees Pension Trust Fund
Quarterly Board Of Trustees Meeting Minutes
May 3, 2010 3
V. Unfinished Business
4. Update on IRS Determination Letter
Attorney Bonni Jensen reported the VCP process and initial review of the
determination letter had been completed. The IRS was now forwarding the letter
to quality assurance, and something was expected to be received soon.
5. Discussion on Cost Proposal by Actuary to perform DROP
Plan Analysis
Pension Coordinator McWilliams advised at the last meeting she had been asked
to contact Steve Palmquist for a quote to implement the DROP program, unless it
was too expensive to look into. Mr. Palmquist had provided a quote of $1,800 to
$2,000 to perform an actuarial study to add the DROP program to the General
Employees' pension plan. Board Member Terzakis asked how adding the
DROP would affect the pension plan. Attorney Jensen explained as long as the
Board was not making people retire earlier than they would otherwise, there was
usually no cost and there was usually a payroll savings. An actuarial study would
show whether based on the plan, the DROP would have an impact on making
people retire earlier than they would have otherwise. Where the DROP was in
place, most employees would leave and then enter into the DROP at their first
opportunity. Attorney Jensen further explained the program. Board Member
Terzakis questioned spending the money for the analysis. Attorney Jensen
advised an actuarial impact statement would be required between first and
second readings of the ordinance. Consensus was adding a DROP program
was a good idea, but probably premature due to the age of participants in this
plan.
6. Status Report by Board Member Terzakis regarding qualified
public depository status of First Citizens Bank
Board Member Terzakis reported First Citizens Bank was not qualified and
because they were in such transition, at this point they did not know when they
would be applying to become a qualified public depository. The conclusion was
they could not be our depository bank.
Consensus was to add this as an agenda item for the next quarterly meeting, as
there was a 6-month time period to comply, and Chair Rhodes asked Board
Member Gload for other alternatives for the next meeting.
VI. Consent Agenda
MOTION:
Tequesta General Employees Pension Trust Fund
Quarterly Board Of Trustees Meeting Minutes
May 3, 2010 4
Motion was made by Board Member Gload, seconded by Board Member
Terzakis, and carried by unanimous 4-0 vote to approve the Consent
Agenda. Therefore the following items were approved:
7. Ratification Of Invoices Paid Since Last Quarterly Meeting:
• Business Services Connection, Inc. —
Office work-weeks ended 1/8/10 through
4/9/10 $1,739.40
• Business Services Connection, Inc. —
Attendance, recording and preparation of
minutes and synopsis for 2/1/10 Regular
Quarterly meeting $ 481.68
• Perry & Jensen, LLC.
Legal Fees through 2/15/10 $2,679.30
• Village of Tequesta
Reimburse for Federal Express charges $ 18.74
8. Payments To Be Reviewed And Approved:
• Business Services Connection, Inc. —
Prepare minutes and synopsis of 3/30/10
Special Meeting $ 214.08
• Perry & Jensen, LLC
Legal Fees through 4/15/10 $1,600.06
• Bogdahn Consulting, LLC $2,625.00
Services through 3/31/10
• Dana Investment Advisors $1,990.69
Services through 3/31/10
9. Approval of new applicants for participation in Pension Plan:
None
10. Approval of withdrawal of contributions:
Christopher Dittmeier Date of Separation: 4/7/10
Total Gross $6,299.69 ($6,116.20 + 3% interest $183.49)
Tequesta General Employees Pension Trust Fund
Quarterly Board Of Trustees Meeting Minutes
May 3, 2010 5
20% mandatory withholding $1,259.94
Total Check Amount $5,039.75
11. Terminated Employees who have not taken their contributions
None
12. Revenue and Expenditure Report
END OF CONSENT AGENDA
VII. Budget Report
13. Quarterly Budget Report Expenditures
Senior Accountant Monica Rahim advised actuarial services and insurance
expenses were over the budget. Chair Rhodes asked why only $5,500 had
been budgeted for actuarial services when it had been $10,000-$12,000 in the
two years before. Ms. Rahim advised she would have do research to answer
that. Chair Rhodes asked her assessment for the whole year for the total budget
versus estimated spending. Ms. Rahim responded it depended on the Board's
requests. Board Member Gload commented it appeared there was a$5,000
charge to prepare the report, and an additional $1,400 to come to the meeting to
present the report. It was determined one meeting was included to present the
report, but they had attended more than one meeting. Chair Rhodes indicated
he saw no other requests from the Board and the overall yearly budget should be
adequate except for travel. Board Member Gload commented she believed
investment services would be short. That was Dana Investment Advisors, which
was driven by the portfolio, and asked Senior Accountant Rahim to calculate of
what the investment services figure would be for the rest of the year, based on
$1.5 mi{lion. Mr. Johnson noted Dana charged 75 basis points for stocks and 25
for bonds, so the charge should be $8,250 for the whole year. Discussion
ensued regarding travel, which would be less this year because the trustees'
seminar was to be held locally, and increasing the estimate for investment
services for the whole year by $5,000.
MOTION:
Board Member Gload made a motion to add $5,000 into investment
services budget and adjust the savings in travel and per diem to cover the
overages in actuarial services and insurance. Board Member Mayo
seconded the motion, which carried by unanimous 4-0 vote.
Tequesta General Employees Pension Trust Fund
Quarterly Board Of Trustees Meeting Minutes
May 3, 2010 6
14. Reports requested by Chair Rhodes at the 2/1/2010 meeting:
3-Year Budget History and Actuarial Invoices
Board Member Gload reviewed the 3-year budget history which had been
provided in the meeting packets, and explained how the investment portion had
been broken out. Item A was Dana Investments, Item B was Salem Trust, and
Item C was Bogdahn Consulting. The second part of the reports were the
actuarial invoices, which she had separated, but only one had an hourly fee.
Chair Rhodes commented this was very good because it showed the invoices
needed to have more breakdown in terms of the hours, etc., and noted that the
actuarial contract was coming up later in the meeting for consideration, so he
would save his comments for that item. Chair Rhodes commented this showed
the charge for a supplemental actuarial statement on COLA had cost $5,120.
VIII. New Business
15. Approval of Investment Manager's Report (Dana Investment
Advisors)
Chair Rhodes announced this had been addressed earlier in the meeting.
16. Contract with Actuary
Attorney Bonni Jensen reviewed a proposed contract with the actuary, Gabriel
Roeder Smith and Company. The contract included a fee of $5,000 to prepare
the annual pension benefits and to attend one meeting to present the actuarial
evaluation. Individual benefit statements and benefit calculations would be $250
each. Other projects would be provided on a per project basis, based upon
hourly rates ranging from $289 for the Senior Consultant down to $80 for support
staff. The fees were requested to be added as an attachment, and to add as an
example under item 4.1 for services rendered to include all items defined in
Section 2 and split out supplementary costs for fees to attend more than one
annual meeting; for any additional work outside 4.1 to provide scope of work,
estimated hours and the fee structure; to address insurance coverage, and to
change the termination clause from 30 to 90 days since the Board meets
quarterly. Attorney Jensen confirmed section 4.4 was their standard provision,
and 4.2 was tied to section 2.3 and was an example of when someone retired;
the administrator would do the calculation but the actuary would still need to
verify and would charge a reduced fee for verification. Attorney Jensen
commented this Board had been having an actuarial valuation every other year
and in the off year the individual benefit statements, and in 2009 went to every
year for those. She had asked Mr. Palmquist for clarification and had not yet
heard back. Chair Rhodes recalled he had asked the cost of annual versus the
every other year, and Mr. Palmquist had said it would cost an extra $2,000 to
$2,500 in the off year. Attorney Jensen took direction from the Board to verify
Tequesta General Employees Pension Trust Fund
Quarterly Board Of Trustees Meeting Minutes
May 3, 2010 7
the annual cost, add the hourly rates, tie the fees to the duties, make sure they
understood the provision regarding scope of work per project, add the current fee
structure for the actuary, add a 90-day notice for termination, add an insurance
provision, add that additional work needed to be approved by the plan
administrator, and ask for a discounted rate since the Board had received an
annual valuation for the past three years.
17. General Employees' Pension Health Insurance Provision
Discussion
Attorney Jensen advised at the last meeting the Board had requested she
provide information regarding payment of insurance premiums to a third party like
the Public Safety Officers' plan. There had been a change to the 175 and 185
pension plans allowing retirees to authorize withholding payment for health
insurance. The benefit for the Public Safety employees was they could deduct
up to $3,000 from their income tax for purposes of making this payment. This
plan was already required by State law to pay alimony or child support
deductions. Attorney Jensen explained there was a Federal law proposed that
could expand the health insurance provision to the General Employees.
Consensus was this was information and it was premature to amend the plan.
18. Approve General Employee Pension Board Employee Trustee
Election – Wednesday, June 20, 2010; run-off election if
necessary – Friday, July 23, 2010 and certification of list of
candidates who are full-time employees eligible to be elected
as an Employee-Trustee
Pension Coordinator McWilliams explained the pension administrator would be
handling this, and the date had changed from June 20 to July 6 for the election,
and per this Board's administrative rules, the Board must approve the election
date, the run-off if necessary, the certification of candidates who were full-time
employees, and must appoint two election judges who would tally the ballots.
Two years ago the judges had been Ms. McWilliams and Finance Director
Forsythe. If there were two or more candidates there would be an election. The
list of candidates was discussed—Natasha Hunt was leaving; new hires before
the election date would not be added, and Pension Coordinator McWilliams left
the meeting to check the list with Human Resources since Board Member Gload
noted that a dispatcher had gone from part time to full time. Upon her return she
reported the list as presented was the most up-to-date list Human Resources
had—they advised the Finance Department got this information first and it could
take up to a month before Human Resources received it from Finance, therefore
she recommended that in the future the plan administrator check with the
Finance Department for current employees. Pension Coordinator McWilliams
Tequesta General Employees Pension Trust Fund
Quarterly Board Of Trustees Meeting Minutes
May 3, 2010 8
presented an updated list of employees with the dispatcher added. Board
Member Gload was asked to confirm the list.
MOTION
Board Member Terzakis made a motion to approve the election date of July
6, 2010, runoff if necessary on July 23, 2010, the list of candidates to be the
official list after con�rmation by Board Member Gload, that Board Members
Deanna Mayo and Michelle Gload were the employee candidates and
needed to apply, and to ask Finance Director Forsythe and Pension
Coordinator McWilliams to be the election judges, with Human Resources
Director Merlene Reid to be a judge if Finance Director Forsythe declined.
Board Member Gload seconded the motion, which carried by unanimous 4-
0 vote.
Pension Coordinator McWilliams left the meeting at this point.
19. Policy on 3% interest on non-vested withdrawal of
contributions
Attorney Jensen presented a drafted statement of investment policy regarding
the 3% interest on contributions, and explained it had been drafted based on the
plan as it was that day. Because the Board was looking at a third party
administrator, the provisions might change; but somebody had to make a
determination as to whether someone was entitled to a refund of contributions.
Sections 1-3 were based on input from Finance Director Forsythe, that interest
would be paid on refunds of contributions to non-vested employees at 3% per
annum compounded annually. Interest would be paid on the total amount of
contributions before taxes or withholding, and distributions would be made within
30 days of the fund providing the special tax notice required by the IRS, or
sooner if the employee had signed the special tax notice and returned it to the
pension coordinator. This interest would not be paid to employees who worked
to retirement, and it was recommended the subject of 3% interest be included in
plan participant educational meetings. Board Member Terzakis noted the
proposals from the third party administrators included educational meetings, and
suggested that new hires could be provided with that information. Attorney
Jensen indicated she would update the summary plan document to add that
information. Board Member Gload advised the interest had generated questions
from employees and further explanation would be helpful. Attorney Jensen
clarified that the Board's policy was that refunds of contributions with no issues
could be paid between meetings and ratified at the next quarterly meeting;
therefore the procedure was that the refund of contributions would be submitted
to the pension administrator for review for eligibility or disqualification, if any
questions it would be forwarded to legal counsel, then an application submitted
that met all the criteria outlined in the plan document, and disbursed immediately
upon signature of a trustee, to be ratified at the next Board of Trustees meeting.
Tequesta General Employees Pension Trust Fund
Quarterly Board Of Trustees Meeting Minutes
May 3, 2010 9
The Board must rely upon the Finance Department to tell them the amount of the
refund of contributions. The current procedure was reviewed. The Recording
Secretary left the meeting to get the form for refund of contributions. Board
Member Gload advised the refunds of contributions that had been made had
been straight 3% interest, not 3% compounded annually. Attorney Jensen
advised she believed the actuary would need to know the amount of the 3%
liability on an annual basis. The original language of the 3% interest was
checked and found to be silent as to whether the interest was to be simple or
compounded annually; Attorney Jensen advised it was up to the Board as to
which they wanted. Recording Secretary Laur returned to the meeting with the
refund of contribution form and a new form which had not been used yet,
required by Salem Trust Company since they would now be writing the checks to
the employees. Chair Rhodes expressed his opinion the interest should be
compounded. Board Member Gload was requested to look into past payments
made at 3% simple interest.
The distribution forms and current procedure were reviewed. Attorney Jensen
advised it would be beneficial for someone to make a determination whether an
employee was eligible for a refund of contribution. Chair Rhodes indicated that
should be the Human Resources Department and a line should be inserted for
HR to sign after they made that determination. HR would be requested to make
changes requested to the form. The recommended procedure was as follows:
1) Applicant applies to Human Resources to verify eligibility and HR signs
off.
2) Forms forwarded to Finance Department for calculations
3) Forms returned to HR to verify this is okay with applicant; applicant to
sign at this point.
4) Forms to Pension Coordinator to sign off.
5) Forms to Senior Accountant Rahim for execution.
Attorney Jensen advised the Board would ratify the distribution at the next
meeting and one trustee signature would be required for distribution. Recording
Secretary Laur pointed out the Pension Coordinator had not signed in the past;
Chair Rhodes noted the form needed to be changed to include her signature.
Attorney Jensen was to insert a calculation on page one of the drafted
investment policy statement; the steps just outlined would be inserted on page
two. Recording Secretary Laur asked if the wording should be Pension
Administrator rather than Pension Coordinator, which Chair Rhodes indicated
would be correct. It was requested that HR make the requested changes to the
form. Attorney Jensen was requested to bring this item back to the next meeting.
20. Form 1
Tequesta General Employees Pension Trust Fund
Quarterly Board Of Trustees Meeting Minutes
May 3, 2010 10
Attorney Bonni Jensen reminded the trustees to fill out their Form 1 and send to
the Supervisor of Elections in a way that would be able to be verified they had
received it.
21. Custodian Addendum
Attorney Bonni Jensen advised an addendum requested by the custodian had
been included in the packets which indicated that they would be responsible for
tax reporting, benefit payments, payment of bills, purchase and sale of mutual
funds, etc., and they would provide a monthly statement and a check register
showing all the income. Their original agreement to provide custody services
had been made in 2005 when it was anticipated the Village would be responsible
for these items, so it needed to be revised. Chair Rhodes asked that the 2005
agreement be brought to the Board for discussion to make sure there were
proper internal controls and insurance coverage. Attorney Jensen advised the
Village was not named as additional insured.
MOTION
Board Member Gload made a motion to approve the addendum and then
review the overall agreement. Motion was seconded by Board Member
Mayo and carried by unanimous 4-0 vote.
22. State Legal Updates
Attorney Bonni Jensen reported nothing had happened regarding the information
she had provided. The sponsor had agreed to take back his legislation and
perform a study. Attorney Jensen discussed some of the information and
expressed her feeling there would be a future piece of legislation that would
make some of the changes that had been proposed.
23. Pension Benefit Application Process
Attorney Jensen advised the proposal was that the employee would complete the
benefit authorization form and the application for pension benefits form, that
Finance would calculate the numbers and provide them to the actuary and the
Pension Coordinator. Once the information was received back from the actuary,
the employee would choose their benefit options. The actuary would provide the
form and the employee would sign it and it would go before the Board with the
retirement application for the pension benefits form. The attorney explained
there was a normal form, which was the 10 year certain; there was also a life
annuity which meant the employee would get more money now but that would
leave no money for anyone in retirement; or a percentage could be left for a
survivor, and the member would choose one option. Most employees made
their choice on the dollar amount they would receive, covered in item 4. The
Board would approve the benefits and then Salem Trust would process the
Tequesta General Employees Pension Trust Fund
Quarterly Board Of Trustees Meeting Minutes
May 3, 2010 11
monthly benefits. Attorney Jensen proposed changing number 6 to read the
Pension Administrator (not the actuary) would provide the calculations and
information to the Board. Discussion ensued. Attorney Jensen suggested the
employee pick up the form from the Pension Administrator, but it could be HR.
Attorney Jensen commented the employee was being asked to make a decision
without having first received any information on which to make that decision.
Chair Rhodes indicated he believed the Pension Administrator should provide all
items 1 thru 5 in a packet to the employee to start the process. Attorney Jensen
advised all of the items should be given to the employee by the Pension
Administrator at the time they came in and stated they were interested in retiring.
Chair Rhodes asked Attorney Jensen to include another step, that if the
employee had any questions regarding taxes, etc., the Pension Administrator
could speak with Board Member Gload. The steps were reviewed. Chair
Rhodes commented this was not a simple process, which was why a Pension
Administrator was needed; Attorney Jensen commented someone was needed
who was aware of the whole process and could make sure it was followed
through. Board Member Gload commented that Salem Trust had requested a
different form W-4. Attorney Jensen advised the revised procedure would be
provided to the Board and she would bring this back to the next meeting for
approval.
24. FPTTA Annual Conference June 27-30, Naples Florida –
Trustees School September 26-29 at PGA National Resort,
Palm Beach Gardens, Florida
Attorney Jensen explained the conference in June was less class oriented than
the trustee school, which would be held locally at PGA National Resort. The
trustees who expressed a desire to attend the school were Board Members
Gload, Mayo, and Terzakis.
MOTION
Board Member Mayo made a motion that three members of the Board
attend the Trustees School September 26-29 at PGA National Resort in
Palm Beach Gardens—Board Member Gload, Board Member Mayo, and
Board Member Terzakis. Motion was seconded by Board Member Terzakis
and carried by unanimous 4-0 vote.
IX. Any Other Matters
Dan Johnson of Bogdahn Consulting advised at the next meeting he would
present a proposed commission recapture agreement with BNY, which had been
given to Attorney Jensen for review. This would provide a rebate back to the
fund.
Tequesta General Employees Pension Trust Fund
Quarterly Board Of Trustees Meeting Minutes
May 3, 2010 12
X. Communications From Citizens
There were no communications from citizens.
XI. Adjournment
There being no further business, the meeting was adjourned upon motion
by Board Member Mayo, seconded by Board Member Gload, and
unanimously carried, at 11:20 a.m.
RespectFully submitted,
Betty Laur
Recording Secretary