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HomeMy WebLinkAboutPension General_Documentation_Tab 01_02/04/2008SYNPOSIS OF GENERAL EMPLOYEES' PENSION BOARD QUARTERLY MEETING MINUTES OF 11.5.07 • 1. New member Michael Rhodes was sworn in. 2. Approved minutes of 8.6.07 quarterly meeting as submitted 3. Mike Dana of Dana Investment Advisors, Inc, provided their semiannual report. 4. David West of Bogdahn Consulting LLC provided their quarterly report. 5. Requested each member receive the Salem Trust statement monthly; the full annual statement would be available in the Village Clerk's office. 6. Voted to allow Salem Trust to open an additional account for the purpose of investing in growth stocks and authorize Dana Investment Advisors, Inc., to move funds between the two accounts. 7 There was consensus to add equities detailed analysis to the quarterly Bogdahn report. 8. Voted to allow Bogdahn Consulting in the future to open accounts as needed with Salem Trust and do portfolio rebalancing as necessary without granting authority to transfer funds. 9. Accepted reports made by Dana and Bogdahn. • 10. Authorized Chair Harding to write a letter to the Manager and Village Council that would be signed by all members of the board expressing the board's unanimous desire to pay 3% on mandatory employee contributions held in the pension fund 11. Approved the following items on the consent agenda: Ratification Of Invoices Paid Since Last Quarterly Meeting: • Business Services Connection, Inc. - Recording and Minutes of 8.6.07 meeting $ 282.37 • Hanson, Perry & Jensen, P.A. $ 722.00 • Gabriel, Roeder & Smith Company $ 4,332.00 Payments To Be Reviewed And Approved: • Hanson, Perry & Jensen, P.A. $ 85.60 • Bogdahn Consulting, LLC $ 1,125.00 • Dana Investment Advisors $ 1,377.01 • Gehring Group Fiduciary Liability Insurance Policy Policy Period 10/1/07 - 10/1/08 $ 801.33 • Approval of new applicants for participation in Pension Plan: Kenneth Kandefer, Maintenance Worker, Recreation Dept. 10/1/07 SYNPOSIS OF GENERAL EMPLOYEES' PENSION BOARD QUARTERLY MEETING MINUTES OF 11.5.07 • Deanna Mayo, Office Assistant, Village Clerk's Office 10/1 /07 Debra S. Espinosa, Communications Specialist 10/1/07 Statement of Activities and Budget Report 12. After discussion, approved withdrawal of contribution: Truman Blanchard 9/25/07 $3,711.98 (Rollover) 13. Accepted the statements from Salem Trust as presented. 14. Members who attended the FPPTA trustee school held at PGA National reported they were impressed; Board Member Reid expressed concern with a possible conflict with being HR Director as well as a Board Member. 15. Attorney Jensen responded to a list of questions presented by new Board Member Michael Rhodes. 16. Voted to hold an election annually in February to elect a Chair and Secretary. END OF SYNOPSIS • • • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND MINUTES OF REGULAR QUARTERLY BOARD OF TRUSTEES MEETING NOVEMBER 5, 2007 I. Call to Order and Roll Call The Tequesta General Employees' Pension Trust Fund Board of Trustees held a regular quarterly meeting in the Council Chambers of the Village Hall, 345 Tequesta Drive, Tequesta, Florida, on November 5, 2007. The meeting was called to order at 10:53 a.m. by Chair Catherine Harding. A roll call was taken by Betty Laur, Recording Secretary. Board members in attendance at the meeting were:. Chair Catherine Harding, Secretary Archie C. Mangum, Jr., Board Member Merlene Reid, Board Member Carl Hansen, and Board Member Michael D. Rhodes. Also in attendance were Monitoring Consultant Dave West from Bogdahn Consulting, LLC, • Mike Dana from Dana Investment Advisors, Inc., Attorney Bonni Jensen, and Pension Coordinator Lori McWilliams. II. Approval of Agenda Board Member Hansen requested item 7 on the consent agenda be pulled for discussion. MOTION: Board member Hansen made a motion to approve the agenda as amended. Secretary Mangum seconded the motion, which carried by unanimous 5-0 vote. III. Swearing in New Member Village Clerk Lori McWilliams swore in new Board Member Michael D. Rhodes (stn member position). Ms. McWilliams advised she would swear in the rest of the board at the February meeting. IV. APPROVAL OF MINUTES Tequesta General Employees' Pension Trust Fund Board Of Trustees • Quarterly Meeting Minutes -August 6, 2007 MOTION BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES NOVEMBER 5, 2007 PAGE 2 Secretary Mangum made a motion to approve the minutes of the August 6, 2007 quarterly meeting as submitted. Board Member Hansen seconded the motion, which carried by unanimous 5-0 vote. V. PRESENTATIONS 2. Semiannual Presentation by Investment Manager Dana Investment Advisors, Inc. Representative Mike Dana provided the semiannual report, advising that their firm invested in every single sector, weighted to the indicies. Mr. Dana reported the effect of sub-prime housing loans was affecting many unexpected areas, including municipalities. Standard adjustable-rate mortgages were now resetting, which would continue pressuring the housing market until at least next summer. Mr. Dana reported 16% return on the fund • portfolio this year, but indicated he doubted that number would be matched next year. The Fed had recently again cut interest rates, which stimulated multi-national business; inflation was a concern, and the Fed was trying to correct the housing situation first. Mr. Dana reviewed his report booklet, described their company's investment strategy, answered questions from the board, and predicted more impacts from housing-affecting municipality insurance companies and taking on the municipal bond market. 3. Presentation By Monitor David West, Bogdahn Consulting, LLC, reviewed his company's report booklet. Results for the year were reported, which showed the required actuarial rate of return had been exceeded and investment performance was only one-half percent under the benchmark, and a good peer ranking had been achieved. Among the other items discussed were cash flows, bond pricing, and returns on equities. Mr. West discussed value stock, which had driven the market for some time; recommended Dana should now also utilize growth stock, and the only change needed would be to direct the custodian to open an additional account for Dana to manage so that they could allocate between growth and value products. Mr. Dana indicated this would provide more consistent investment returns to accommodate the market change to growth stocks. Discussion ensued. • Attorney Jensen advised it would be appropriate, if the Board so desired, to make a motion to follow through with the request from the investment manager to open an account so that he could have the opportunity to invest in growth stock. Mr. Dana BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES NOVEMBER 5, 2007 PAGE 3 advised he would stay within the 60% investment policy stock allocation. Board Member Rhodes requested a list of stocks printed out, based on sectors and whether growth or value. It was noted that was included in the custodian's statement; the board requested that each member receive the custodian's statement, sent out monthly; the full annual statement was kept available in the Village Clerk's office. Mr. West advised he had prepared a letter to Salem Trust requesting the additional account be opened. MOTION: Secretary Mangum made a motion to authorize taking the necessary steps to start investing in growth stocks. Board Member Hansen seconded the motion, which carried by unanimous 5-0 vote. Mr. West advised that the Public Safety Officers' pension board had requested a more detailed analysis on equities and asked if this board would like that included in the quarterly report. Consensus of the board was to have Bogdahn Consulting add the equities detailed analysis to the quarterly report. Mr. Dana responded to a question from Chair Harding regarding Merrill Lynch's problems reported in the news. Mr. Dana explained that Merrill Lynch was a very large company, going through a couple of hard quarters, and expressed his opinion that they would be okay. Mr. West advised that going into companies with a more global reach would further diversity the portfolio. Attorney Jensen noted the motion needed to give Bogdahn Consulting authority to open additional portfolios and to rebalance. MOTION: Secretary Mangum made a motion to allow Bogdahn Consulting in the future to open accounts as needed with Salem Trust and do portfolio rebalancing as necessary; and that they do not have authority to transfer funds. Board Member Hansen seconded the motion, which carried by unanimous 5-0 vote. MOTION: Secretary Mangum made a motion to accept the reports from Dana Investment Advisors, Inc. and Bogdahn Consulting, LLC. Board Member Rhodes seconded the motion, which carried by unanimous 5-0 vote. • VI. UNFINISHED BUSINESS • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES NOVEMBER 5, 2007 PAGE 4 4. Status Report on Village Council discussion on 10/12/07 regarding paying interest on employee contributions Pension Coordinator Lori McWilliams reported the Village Council had agreed to put this matter forth as a union negotiation tool. Chair Harding commented she thought this was slippage on the part of the Village Council, that they did not truly understand the board's request, and this had been the second time this was presented, along with the ordinance for approval; the first time was just informative. Ms. Harding read from the Village Council minutes some of the comments made when this item was presented, and stated as Chair of this Board she saw no correlation in why required employee contributions would not get any interest on them. Chair Harding stated she did not agree with it being merged with negotiations with the union; and she did not think there should be any correlation between the two. Whatever negotiations went on with the union were between the union members and what went on with this board was a separate subject, in her opinion. • Secretary Mangum stated he was astounded when he read the Council's comments because he felt this was not a negotiable matter; the Board had made a recommendation and it was up to the Village Council to say yea or nay. Secretary Mangum commented he believed the Mayor and some other members of the Council had misunderstood. Board Member Hansen asked if the other members felt this should be brought up to the Council again; Chair Harding indicated she would like to speak to the Council on this matter because she felt there was misunderstanding, possibly with the confusion of union negotiations. Attorney Jensen advised the Village Clerk had reported at this same Village Council meeting where the Firefighters had proposed using State dollars to reduce their contributions into the plan and the Council had deferred that decision to collective bargaining. Attorney Jensen advised the Board that pension benefits were a mandatory subject of collective bargaining, so either party could bring pension benefits to the table, so that if there were union members in the pension plan, they could negotiate this issue; however, this was a very small cost issue and was not the same thing proposed by the Firefighters, but under Florida law pension benefits were a mandatory subject of collective bargaining. So in principle, they could table this for negotiation; however from the minutes it looked like they had not understood there was a distinction between the Public Safety Officers pension board request and the request from this board. Village Clerk McWilliams stated she agreed they probably did not understand, but this was brought up in August as well, and Council had asked that it be brought back after the budget was finished, and in the current financial climate did not want to spend more money, but she felt they had not • understood the difference between this request and that of the Public Safety Officers board. Board Member Reid asked how it would work with having non-union employees in the same pension plan. Attorney Jensen responded that they could • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES NOVEMBER 5, 2007 PAGE 5 not act on behalf of non-union employees but could act for the union employees to supply benefits; in most places where there was a pension program and a union, the unionized employees were the bulk of the participants. Board Member Reid stated in the Public Safety Officers' plan the bulk were unionized; in the General Employees plan they would also be in the majority. Attorney Jensen advised that generally speaking, non-unionized employees were a part of the group who received the benefit of the negotiations, and confirmed that there was no distinction when there were members not in the union for purposes of collective bargaining. Chair Harding expressed her opinion that it seemed a man's money should earn some interest if it was being taken from him, and called for comments on this item. Board Member Reid asked where the Board went now; did this just go to negotiation as requested by the Council. Attorney Jensen responded this board should receive some notification that the Village had requested to negotiate this particular item, that there already was a drafted ordinance the Board had already developed, the cost value of it, and that could be considered in the course of • collective bargaining. Board Member Reid advised collective bargaining had commenced. Chair Harding asked Board Member Reid to take care of this as Human Resource Director since she was the only one who had contact with the unions and negotiations. Board Member Reid responded that was fine but there was an issue coming up where she needed to understand her role on the board versus her role as Human Resources Director, and that would be discussed under the item about the pension seminar. Attorney Jensen advised there was nothing wrong with talking to the Village Council and explaining to them what the Board was really looking for here-just interest on the refund of contributions which Mr. Palmquist had said was $100 to $200 per year cost to the fund. Board Member Hansen noted Chair Harding had volunteered to talk to the Council on this subject, and asked if it could be on the Council agenda. Pension Coordinator McWilliams advised it would need to be done before the December Council meeting since the agenda had already been set for November. Chair Harding commented this whole thing started innocently as a matter of recognizing there was no interest being paid on pension money that employees were required to put in; it had nothing to do with unions or negotiating, and had been generated from the General Employees Pension Board and not out of a union negotiating matter. She felt it should be presented to Council in that innocence; they were not trying to get the most out of the municipality, but to get the most out of their own money. • Pension Coordinator McWilliams noted one of the Council members had expressed that their interest was in keeping employees here and not to pay employees to • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES NOVEMBER 5, 2007 PAGE 6 leave. Secretary Mangum responded the board was not paying them to leave; stated he was a very strong supporter of this, because this is a mobile world. You might not be planning to leave tomorrow, but did not know what might happen--you might have to move through no fault of your own before you were vested, and it was not fair for the fund to have had your money all this time. It was not a matter of keeping you or not keeping you, it was only fairness when somebody had to move, had to leave, or had to quit work that they get something for the money they had to put in over the years. Secretary Mangum stated he felt very, very strongly about this. Ms. McWilliams responded she thought some of the Council members did not understand this was mandatory. Board Member Reid advised she had been at the first Village Council meeting where this was presented and the Finance Director had given a very good explanation, that this money belonged to the staff and it was mandatory. Ms. McWilliams commented she fully backed this since it was mandatory. Chair Harding commented that to her it was just fairness. Discussion ensued regarding how to proceed. Ms. McWilliams suggested the whole board attend the Council meeting possibly in December since the agenda had already . been set for November, to answer questions and present how they saw it. Ms. Reid commented there were three unions as well as a group of non-unionized employees, and it had not yet been brought up to the union. Attorney Jensen advised that pensions were a mandatory subject of collective bargaining, which meant either party could bring items to the table. Board Member Reid commented she saw chaos coming because then it would not be limited just to interest on the funds but could be every group and every union wanting certain changes. Chair Harding asked if there would be any harm letting them sort through it and then the Board bringing it back to Council the beginning of the year. Ms. McWilliams noted Council had received the minutes back to when this discussion first started, over a year ago, so they had all the backup and she didn't know what more could possibly be provided. Chair Harding commented this was now more political than just a nice gesture of good faith and loyalty; by being a part of negotiations with the unions it became political to her, and she did not want this Board to get involved in anything that smacked of politics. Ms. Harding asked if after the unions were finished whether the Board could go back for reconsideration if this were not settled for the Board. Attorney Jensen indicated she believed it would be closed until collective bargaining happened again. Board Member Hansen commented this was only to pay interest on money employees had invested into the pension plan, and asked if any union would object • to that, and pointed out that Mr. Palmquist had confirmed that although it was not required, the vast majority of plans did pay interest. Attorney Jensen responded the union could waive bargaining on that item if Council said they had seen the light • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES NOVEMBER 5, 2007 PAGE 7 and now wanted to pay interest. Secretary Mangum commented the Mayor wanted to hold this in his back pocket so he could say we will give this to the people if the union capitulates on something else. It was a bargaining chip. Discussion ensued regarding writing a letter to the Village Council, composing their thoughts as to the true nature of what was intended and why, and communicating that to the Council to separate this from the concept of union negotiations. Chair Harding saw this as more of a moral issue than a political issue. Board Member Rhodes expressed his opinion the Board owed resolution of this matter to the participants; with all due respect to Mayor Humpage, this Board was to serve the participants, and stated he liked the idea of a letter. Secretary Mangum asked Chair Harding to prepare a letter, which she agreed to do and to send it to all the members of the Board for input and for everyone to sign. It was pointed out there was no motion by the Village Council to use this as a negotiating tool-it was by consensus. Chair Harding commented they also said in • that statement they were going to use the pension request as a bargaining tool, so when this Board's item came back up, it was just swept up in the package. The distribution of the letter would be coordinated through the office of the Village Clerk to avoid conflicts with the Sunshine Law. Logistics of obtaining a signature from a member who was out of town were discussed. MOTION: Board Member Hansen made a motion to prepare a letter as a Board and sign it as a Board in favor of paying 3% interest on mandatory monies from employees held in the pension fund. Secretary Mangum seconded the motion, which carried by unanimous 5-0 vote. VI1. CONSENT AGENDA Board Member Hansen made a motion to approve the consent agenda with Item 7 pulled for discussion. Secretary Mangum seconded the motion, which carried by unanimous 5-0 vote. Board Member Hansen advised he wanted to discuss item 8, not item 7. The motion was withdrawn. Board Member Hansen made a motion to approve the consent agenda with • Item 8 pulled for discussion. Secretary Mangum seconded the motion, which carried by unanimous 5-0 vote. • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES NOVEMBER 5, 2007 PAGE 8 Therefore, the following items were approved on the consent agenda: 5. Ratification Of Invoices Paid Since Last Quarterly Meeting: • Business Services Connection, Inc. Recording and Minutes of 8.6.07 meeting $ 282.37 • Hanson, Perry 8~ Jensen, P.A. $ 722.00 • Gabriel, Roeder 8 Smith Company $ 4,332.00 6. Payments To Be Reviewed And Approved: • Hanson, Perry 8 Jensen, P.A. $ 85.60 • • Bogdahn Consulting, LLC $ 1,125.00 • Dana Investment Advisors $ 1,377.01 • Gehring Group Fiduciary Liability Insurance Policy Policy Period 10/1107 -10/1/08 $ 801.33 7. Approval of new applicants for participation in Pension Plan: Kenneth Kandefer, Maintenance Worker, Recreation Dept. 10/1/07 Deanna Mayo, Office Assistant, Village Clerk's Office 10/1/07 Debra S. Espinosa, Communications Specialist 10/1/07 9. Statement of Activities 10. Budget Report Discussion of Item 8: 8. Approval of withdrawal of contributions: • Truman Blanchard 9/25/07 $3,711.98 (Rollover) Board Member Hansen asked for an explanation of this item, and asked the • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES NOVEMBER 5, 2007 PAGE 9 percentage that would be withheld for the Village. Board Member Reid explained this was the exact amount Mr. Blanchard had paid in and he was receiving it back, with no interest. The Village was contributing about 7%, which remained in the fund; after six years he would be vested and entitled to a pension, and no employee ever took with them the Village's contribution. Council Member Hansen commented Mr. Blanchard was taking this as a rollover to a new employer and asked if the Village had experienced a new employee coming in and bringing with them a rollover from someplace else; and was advised that the rollover went into a financial institution, probably into an IRA account. Attorney Jensen explained the place where most public sector plans would see roll-ins was where people were allowed to buy time in the plans, such as military time. This was not the type of plan where that would be done unless people were allowed to buy time; generally it cost more to do that. Board Member Reid explained there was a 457 plan which the Village facilitated for people who had funds they needed to place when they were employed. • M TION: O Board Member Hansen made a motion to approve Item 8. Board Member Reid seconded; the vote on the motion was unanimous 5-0. Chair Harding asked if Mr. Blanchard had stayed seven years and was fully vested before he left, whether he would get his total contribution plus what had been paid in by the Village. Board Member Reid responded he would not get anything because he would then be eligible to receive a pension upon reaching retirement age. At no time could one receive a lump sum after being vested of both their contribution and the Village's contribution. Attorney Jensen explained that the benefit anticipated from this fund was a monthly payment upon attaining retirement age. If vested, at 62 he could begin to collect his pension, even if working somewhere else. The amount of payment was based on a formula, and paid every month for the rest of his life. If he died before 120 payments had been made then a beneficiary could receive payments. Also, payments could be reduced in order to receive something for a longer period of time to a beneficiary. Attomey Jensen advised that members did have the opportunity to buy back military time. VIII. FINANCIAL REPORTS • 11. Account Statements (October 1, 2006 -September 30, 2007) Attorney Jensen reported at the Public Safety Officers' meeting they had • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES NOVEMBER 5, 2007 PAGE 10 decided they did not want to receive the statement information in their meeting books on a quarterly basis, it would be on the agenda stating it was available in the Village Clerk's office if anyone wanted to see it. Attorney Jensen advised that this board had actually requested earlier in the meeting to receive the reports on a monthly basis. Attorney Jensen explained that Bogdahn Consulting's quarterly report reflected the same information; and in the statement of activities, which was Item 9, the Finance Department actually reconciled the custodian statements to their records and the bank records, so the board was receiving the information at their meetings from these sources. MOTION: Board Member Hansen made a motion to accept the account statements from Salem Trust as presented. Board Member Rhodes seconded the motion, which carried by unanimous 5-0 vote. . IX. NEW BUSINESS 12. Reports/discussion by members of the board who attended FPPTA school at PGA National in Palm Beach Gardens October 7-10, 2007 - Board Member Carl Hansen, Board Member Merlene Reid, Board Member Michael Rhodes Board Member Hansen reported he was quite impressed with the school, thankful to the Village for paying the registration fee, and he had learned a lot, and recommended it for anyone who did not attend. Board Member Reid agreed, indicated she learned the meaning of many terms, and came away with many ideas. Board Member Reid recommended an information package for new employees including the contracts for the consultants and the summary plan. She was concerned that as Human Resources Director and a member of the board that she might be directing herself. Attorney Jensen advised that in other municipalities if the Human Resources Director was involved with the pension board it was as a consultant; usually the person on the board was from the Finance Department. The issue of whether there was a conflict of interest was a personal decision of whether she was placing herself in a conflicting role. Board Member Reid commented she saw herself as administering the fund • but was unsure of where her role began and ended. Board Member Rhodes thanked the Board for letting him go to the trustee BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES NOVEMBER 5, 2007 PAGE 11 school, and felt it had been a great learning experience and liked the flexibility of being able to choose the classes to attend since the Board attendees were not going through the certification program. Board Member Rhodes noted he had come up with a list of items he would like to know more about and had made a copy for each member. Board Member Reid felt it should be mandatory to provide this information. Chair Harding asked that Pension Coordinator McWilliams and Attorney Jensen review the list. Board Member Hansen commented although this was an independent Board, it was somewhat tied to the Public Safety Officers' Pension Board, utilizing the same attorney and monitor, and holding meetings the same day so that it would be convenient for the consultants to attend; and advised Board Member Rhodes as to his question about replacing them that it would be somewhat in concert with the Public Safety Officers' Board. Board Member Rhodes commented on the importance of educating the participants. Attorney Jensen res onded with answers to Board Member Rhodes' P questions to which she knew the answers. Although there was not a public calendar the meetings were set annually; she sent a report annually in about May to let members know about Form 1. The pay to play questionnaire was completed by the monitor during their selection process. Regarding the E&O policy, today the Board had approved the liability policy, and traditionally this Board had split that with the Public Safety Board, which was split between Fire and Police. There was a provision in the plan stating the members were not liable except when acting outside the scope of their ability as a trustee; the State law also had that same provision. The policy was purchased through the municipality; she was not sure if defense costs were included. There were no disputes currently, and no potential contingencies that might develop into claims. The Village had already sent Attorney Jensen the annual letter requesting information for the auditors, and she had already responded. Attorney Jensen explained there had been an ongoing issue with the Florida Retirement System; after opting out, some employees were still in the FRS plan, and although the issue had been resolved, it would be coming up in the next actuarial report because the Village had put money into this plan which they should not have so there would be some employer credits against their contributions. The amount was approximately $30,000- $40,000. The Board did not have a current formula or set formal evaluation • period for outside professionals. The Board was a member of FPPTA, required in order to participate in their seminars. They were not members of the other organization about which Board Member Rhodes asked. Attorney BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES NOVEMBER 5, 2007 PAGE 12 Jensen expressed her opinion that the benefit to attending conferences was the networking and talking to others with the same problems. Regarding the history of the retirement plan, the Village had opted out of FRS, and it was a young plan. Attorney Jensen explained she had been with the Board since inception of the split from Public Safety, December 2002. Board Member Hansen also provided history information. Attorney Jensen explained documents were kept in the Village Clerk's and Finance Department offices. The plan was not administered by a third party. There was an investment policy statement and summary plan description, meeting minutes and outside service contracts were kept in the Village Clerk's office and she had electronic copies. There was not a proxy voting policy. Attorney Jensen explained Dana's proxy voting policy. The investment monitor certified they had no relationship with the money managers. Attorney Jensen discussed the pay to play issue. Updated investment portfolio information was provided in advance of the meetings. A small seminar had been held with participants to explain the plan and a total of eleven had attended. • 13. Discussion of holdin an annual election each November for Chair and 9 Secretary Pension Coordinator Lori McWilliams commented there was no consistency as to when the Chair and Secretary were elected; and she wanted to provide consistency such as in the Public Safety Board where an annual election was held each November, and asked for the Board's opinion. Board Member Hansen commented it was a good idea to bring it up annually, which did not mean the officers needed to change, and suggested February. Secretary Mangum noted he was elected Secretary at his first meeting over two years ago; Chair Harding was appointed when Mr. Garlo left which was in February, 2007. Discussion ensued regarding which month to hold an annual election. MOTION: Board Member Hansen made a motion to hold an annual election as a matter of policy to elect officers Chairman and Secretary, at the Board's regular February meeting. Secretary Mangum seconded the motion, which carried by unanimous 5-0 vote. 14. Election of Chair and Secretary • MOTION: Secretary Mangum made a motion to table election of Chair and • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES NOVEMBER 5, 2007 PAGE 13 Secretary to the February 2008 regular meeting. Board Member Hansen seconded the motion, which carried by unanimous 5-0 vote. X. ANY OTHER MATTERS Attorney Jensen reported she had responded to the auditing inquiry letter; asked the Secretary sign the Policy for Trustee Expenses. Chair Harding stated she would compose the letter to the Village Council as directed by the Board. XI. COMMUNICATIONS FROM CITIZENS There was no communication from citizens. • XII. ADJOURNMENT The meeting was adjourned at 1:45 p.m. Respectfully submitted, ,, <_ .mac ~; Betty Laur Recording Secretary •