HomeMy WebLinkAboutDocumentation_Regular_Tab 05_05/09/2013 McWilliams, Lori
From: Bonni S. Jensen [bsjensen@perryjensenlaw.com]
Sent: Tuesday, May 07, 2013 9:06 AM
To: McWilliams, Lori
Cc: Dixie Martinez; Baur, J Scott; Thepensionteam@perryjensenlaw.com; Michael Rhodes
Subject: Re: Tequesta General Employees' Pension Plan- Regular Pension Board Meeting 05-06-13
at 8:00 am
Attachments: Teq GE Summary of Actions as of 3-31-13.pdf; 2013-03-31 Attachment to Summary of
Actions.pdf; 2012 AV.pdf; VOT_GEPP_Council-Mtg_May.2013.ppix; TeqGE 10-1-12 AV
pgs_pdf
Lori,
Attached are the following documents for the Tequesta GE presentation to the Village Council:
1. Narrative Summary of Actions for Quarter Ending 3/31/13
2. 03/31/13 Returns for Portfolio
3. 10/01/12 Actuarial Valuation
4. Selected pages from Actuarial Valuation 1, 15 and 16.
S. PowerPoint prepared by Chairman Michael Rhodes.
Please let me know if you need anything else for the meeting.
TO SEIVD MAIL TO MY ENTIRE TEAM, PLEASE RESPOND TO THEPENSIONTEAM@PERRYJENSENLAW.COM
Bonni S. Jensen <bslensen@perrvlensenlaw.com>
Law Offices of Perry & Jensen, LLC
400 Executive Center Drive, Suite 207
West Palm Beach, Florida 33401
Telephone: (561)686-6550
Facsimile: (561)686-2802
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On 4/30/2013 10:34 AM, McWilliams, Lori wrote:
Just a reminder that the General Employee Pension Board is scheduled to attend the May 9 Council
Meeting to provide an update. Please provide backup for update by this afternoon. Thank you.
From: Dixie Martinez [mailto:dixie@resourcecenters.com]
Sent: Tuesday, April 30, 2013 10:06 AM
i
To: Mayo, Deanna
Cc: McWilliams, Lori
Subject: Tequesta General Employees' Pension Plan- Regular Pension Board Meeting 05-06-13 at 8:00
am
Good morning,
Please post the attached Agenda for the Village of Tequesta General Employees' Pension Fund- Regular
Pension Board Meeting on Monday May 6, 2013 at 8:00 am on your website.
Let me know if you have any questions.
Thank you
Dixie Martinez
The Resource Centers, LLC
4360 Northlake Blvd. Ste 206
Palm Beach Gardens, FL 33410
Phone : (561) 624-3277 ext 2957
Fax : (561) 624-3278
Please visit our website: www.resourcecenters.com
2
TEQUESTA GEPIERAL EMPLOYEES' PENSION TRUST FUND
Summary of Actions for Quarter ending 03/31/13
1. The regular Board meeting was held on February 4, 2013.
2. The Trustees welcomed John Kuper to the Board as the new employee elected
trustee.
3. Bogdahn (by Tyler Grumbles) reviewed the 12/31 /12 quarterly and fiscal year
retums for the total fund. At the end of the fiscal year, the Plan's market value was
$2,372,180 and the asset allocation was Domestic Equity 48.0%, Intemational
Equity 10.3%, Fixed Income 40.2%, and Cash Equivalent 1.5%. The retums for the
quarter and fiscal year end were:
Quarter Returns and Fiscal Year Retums:
Total Fund (Gross) 0.92% versus the benchmark at 0.47%.
Total Domestic Equity -0.18% versus the benchmark at -0.38%
Total Intemational Equity 9.34% versus the benchmark at 5.89%,
Total Fixed Income was 0.28% versus the benchmark at 0.18%
See attached for 03/31/13 returns.
4. The Board proposed adding a discussion of asset allocation to the next meeting's
agenda. At the May 6, 2013 meeting, the Board agreed to change the asset
allocation to 50% Domestic Equities. 15% Intemational Equity, and 35% US
Aggregate Fixed Income. A discussion regrding diversifying the fixed income was
tabled tot he next meeting.
5. Steve Palmquist has retired from Gabriel, Roeder, Smith and Company, the Board's
Actuary. Jeff Amrose will be working as the Actuary with the Board.
6. Mr. Carl Hansen announced that he was resigning from service on the Board. The
Board expressed their thanks to Mr. Hansen for his many years of distinguished
service.
7. Attached is the Actuarial Valuation received by the Board on May 6, 2013.
8. Future meetings will be held on August 5, 2013 and November 4, 2013.
PLEASE ADDRESS ANY QUESTIONS IN WRITING AND THE BOARD WILL RESPOND
IN KIND.
H:\Tequesta GE 1012�AAeeting\Meeting Padcet�20131Teq GE Summary of Actions as of 3-31-13.wpd
Page 1 of 1
Asset Allocation
Total Fund
As of March 31. 2013
Asset Allocation By Segment as of Asset Atlocatlon By Segment as of
December 31, 2012 :$2,372,180 March 31, 2013 : 52,572,430
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Allocation AllocaHon
Segments Market Value Allocation Segments Market Value Ailocation
■ Domestic Equity 1,138,124 48.0 ■ Domestic Equity 1,271,915 49.4
International Equity 245,220 10.3 International Equity 244,912 9.5
� Fixed Income 953,513 40.2 � Fixed Income 1,017,523 39.6
Cash Equivalent 35,322 1.5 Cash Equivalent 38,080 1.5
� Ttit
� BOGDAHN
,z °.�,� . GROUP
Comparative Performance
Total Fund (Gross)
As of March 31, 2013
Comparative Performance
QTR FYTD 1 YR 3 YR 4 YR 5 YR Inception Inception
Date
Total Fund (Gross) 5.80 (34) 6.78 (64) 9.99 (52) 9.83 (25) 13.11 (83) 6.51 (11) 5.54 (37) 11/01i2000
Total Fund Policy 5.63 i4 i) 6.12 (76) 9.30 (70) 8.96 (57) 14.C2 (63) 523 (5?) 4.66 f3 �)
Difference 0.17 0.66 0.69 0.87 -0.91 1.28 0.88
411 Public Plans-Total Fund Median 5.46 7.15 10.02 9.18 14.40 5.33 5.29
Total Fund (Net) 5.66 6.49 9.28 9.26 12.55 6.04 5.27 11/01/2000
Total Fur,d Polic.y 5,63 6.12 9.30 s3.96 14.02 5 23 4.66
Dif�erence Q.03 G 37 -0.02 0 �0 -1.47 0 r1 :;,��1
Dana Core Equity 11.78 (22) 11.59 (40) 15.02 (35) 14.32 (17) 2120 (36) 6.80 (38) 6.55 (45) 11/01/2005
S&r 50� i�idex 10 61 i56�) 10.19 (651 13.96 (51) 17__6? (50) 20.98 i40) 5.R ; [E�4; 5�d (77i
Difference 1.17 L40 1.06 1.65 0,22 0.99 OJ1
IM U.S. Large Cap Core Equity iSA+CFj Med�an 10.70 11.02 13.97 ?2.6? 20.58 6.34 G.42
Dana InYI Portfolio -0.13 (100) 9.19 (89) 9.68 (84) 4.59 (92) WA N/A 10.44 (83) 07/01/2009
MSCI AC World ex USA 3.27 (87) 9.35 (88) 8.87 (89) 4.87 (89) 16.86 (65) 0.07 (68) 1�.57 (82i
Differ2nce -3.40 -0.16 0.81 -0.28 N/A N/A -0.13
IM Intercational Core Equity (SA+CF) Median 5 11.97 12.64 7 22 17.57 0.79 1227
Dana Fixed Income 0.56 (20) 0.84 (41) 4.84 (23) 5.58 (24) 5.46 (74) 5.41 (54) 5.66 (61) 11/01/2005
�arclays Iniermediate Aggregate Index 0.15 (90j 0.33 (88i 3.04 (85) 4.64 (81 ) 5.33 (80) 4.94 (81) 5.38 (82)
Diiference 0.41 0.51 1.80 0.94 0.13 0.47 0.28
IM U.S. Intermediate Duration (SA+CF) Median 0.33 0.73 3.95 5.16 6.19 5.47 5.75
Retums for periods greater than one year are annualized. Returns are expressed as percentages. Dana's inception date is 10-13-2005. Dana Core Equity coniains internalional prior to 7!1/2009.
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1
DISCUSSION OF VALUATION RESULTS
Comp�rison of Reqnired Emnlover Contribations
A comparison of the required employer confribution developed in this and the last actuarial
valuation is shown below.
For FYE For FYE Increase
9/30/2014 9/30/2013 ecrease
Required Employer Contnbution $ 190,403 $ 185,553 $ 4,850
� % of Payroll 9.18 % 9.38 % (0.20) %
The required employer contribution shown above was calculated under the ass�unption that
payments would be made in equal installments at the end of each month.
The actual employer contribution received during the year ending September 30, 2012 was
$174,899, or 9.40% of payroll based on a payroll amount of $1,860,628. The minimum required
con#ribution was 9.09% of payroll.
Chan�es in Benefits �
There have been no c�anges in benefits since the previaus valuation.
Chan�e in AMuarial AssumAtions and Methods
Ther� have been no changes in actuarial assumptions and methods since the previous valua.tion.
Actuarial Experience
There was a net actuarial loss of $32,633 for the year which means that actual experience was less
favorable than expected. The loss is primarily due to recognized inveshnent retum below the assumed rate
of 7.5%. The investment return was 17.]°/a based on market value of assets and 4.6% based on actuarial
value of assets. The investment loss was partially offset by gains due to lower than expected salary
increases. The actuarial loss caused the employer contribution to increase by 0.20% of covered payroll.
GRS
� Actuarial Value of Assets
� Year Ending September 30
Valuation D�te 2011 2012 2013 2014 2013 2016
A. Beginning of Year Assets
1. Market Value $ 1,5�4,631 $ 1,768,399
2. Actuazial Value 1,716,448 1,965,445
B. Net of Contributions Less Distrbutions 201,844 226,076
C. Actual Net Investment Earnings (8,076) 322,118
D. Expected Investment EarningS 136,303 155,886
E. Excess of Actual Over Expected
Investment Earnings: C- D (144,379) 166,232
F. Recognition of Excess Earnings Over 5 Years
1. From This Year (28,876) 33,246
2. From One Year Ago (628) (28,876) 33,246
3. From Two Years Ago (16,233) (628) (28,876) 33,246
4. From Three Years A�o (43,413) (16,233) (628) (28,876) 33,246
5. Fro�n Four Years A�► - (43,413) (16,233) (628) (28,876) 33,246
6. ASOP No. 44 Compliance Adjustment* - (3,777) - - - -
'1. Total (89,150) (59,681} (12,49I) 3,742 4,370 33,246
G. End of Year Assets
1. Market Value 1,768,399 2,316,593
2. Actuarial Value: A2 + B+ D+ F7 1,965,445 2,287,726
3. Final Actuarial Vatue Within 80% to 120%
of Market Value 1,965,445 2,2$7,726
H. Actusrisl Rate of Retucn 2.6% 4.6%
I. Market Value Rate of Return -0.5% 17.1%
J. Ratio of Actuarial Value of Assets
to Market Value 111.1% 98.8%
* Per ASOP No. 44, a one-time adjustment of $(3,777) is required as of 5eptember 30,2012.
�
cn
16
His#ory of Investment Retnrn Rates
P{an Year Ending
September 30 af Market Actvarial
2003 1.2 % 1.2 %
20Q4 1.9 1.9
2005 I1.1 11,1
2006 8.4 8.4
2007 9.8 9.8
2008 (11.6) 4.1
� 20d9 1.6 3.0
2010 $,4 3.6
�Ol 1 (0.5) 2.6
2012 I7.1 4.6
Average returns
L.ast five years 2.6 % 3.6 %
Last ten years 4.5 5.0
All years 4.5 5.0
The above raxes are based on the retirement systems financial information reported to the actuary. They
may differ from figures th$t the investment cansultant reports, in part because of differences in the
handling of administrative and investment e�enses, and in part because of differences in the handling of
cash flows.
GRS