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HomeMy WebLinkAboutDocumentation_Regular_Tab 09E_03/11/2004 r y " .�0 ; '�ILI�AGE OF TEQUEST� `� 3',�st �Jffic� R.>3 32?3 s 2S4 "�'equesta i?ri�r�, fiuite 3��1 s ��` a � "�e�que�ta, F3oric4i 334f��_t32i� � (56i j 5?5-o20d f ; o FaX: { JC� l)> i �-6�'0.� m �� { TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND BOARD OF TRUSTEES MEETING OCTOBER 21, 2003 I. CALL TO ORDER AND ROLL CALL The Tequesta Public Safety Officers Pension Trust Fund Board of Trustees held a regular meeting at the Tequesta Recreation Center, 399 Seabrook Road, Tequesta, Florida, on October 21, 2003. The meeting was called to order at 10:12 a.m. A roll call was taken by Betty Laur, Recording Secretary. Boardmembers in attendance at the meeting were: Chair James Weinand, Vice Chair Geraldine Genco, Boardmember Edward Sabin, and Boardmember Peter B. Lucia.. Boardmember Brian Youngblood was absent from the meeting. Also in attendance was Dan Gallagher, Human Resources Coordinator, and Attorney Bonni Jensen. II. APPROVAL OF AGENDA MOTION: Vice Chair Genco made a motion to move approve the agenda as submitted. Boardmember Sabin seconded the motion, which carried by unanimous 4-0 vote. III. APPROVAL OF MINUTES MOTION Vice Chair Genco made a motion to approve the Public Safety Officers Pension Trust Fund Board of Trustees Meeting Minutes of August 12, 2003 as submitted. Boardmember Lucia seconded the motion, which carried by unanimous 4-0 vote. IV. UNFINISHED BUSINESS a) Approval of Proposed Plan Revision including Tiered Rate Plan and Bond 2•?r;:Yi3CC� T�3��1"� BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES October 21, 2003 PAGE 2 --------------------------------------------------------------------------------- Rating Changes Attorney Bonni Jensen announced that she had drafted changes to the plan in accordance with the Board's discussions at the last several meetings. The added benefits had been costed in Mr. Palmquist's letter dated February 4, 2003 and the added tiered benefit had been costed September 5, 2003. Attorney Jensen explained that the biggest change had been to sepa.rate Public Safety from the General Employees. The cost items that had been changed were 6-year vesting, drop plan, and health insurance subsidy. Chair Weinand asked about the condition of eligibility which stated all full-time police officers and firefighters as of the effective date, since some employees still had funds being retained by the Village but were no longer employed. Attorney Jensen explained that the old plan was not being terminated. State law allowed keeping funds for five years for individuals who left, pending their being re-hired. At the end of five years the fund should make a concerted effort to find those individuals and pay them their refund of contributions. Chair Weinand commented that Mr. Nathanson had seven years in the plan and asked if he would become vested. Attorney Jensen explained that he would not; it only applied to current employees going forward; Mr. Nathanson and Mr. Madera's plans would not change. Vice Chair Genco asked if the plan stayed with the three highest classifications on the bond ratings instead of four, on page 4. Chair Genco commented that the top three was even more secure than four, but she had had in her notes four. Attorney Jensen stated that was correct, it should be four—in two places it should be four. Vice Chair Genco stated that the allocation to stock was increased to 60%, which was really just a formality since that had been done for some time. Attorney Jensen explained that actually had been passed, that the document provided to the Board had an underline and strikeout as a working document, but it had been approved, just had never been codified into the current documentation; and it was on pages 9 and 10. Vice Chair Genco commented monthly supplemental benefits were included like agreed to, retirement option plan. Attorney Jensen verified that this document would be approved and the investment policy would be approved separately. Attorney Jensen advised that this plan document would be approved to go to Village Council for adoption, and the investment policy guidelines would be approved at board level. Attorney Jensen explained that the approved plan document and the actuarial impact statement would have to be provided to the state. MOTION: Vice Chair Genco made a motion to approve the plan document as presented with the typographical changes corrected. Boardmember Sabin seconded the motion, which carried by unanimous 4-0. [Note: This motion was withdrawn BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND . MEETING MINUTES October 21, 2003 PAGE 3 --------------------------------------------------------------------------------- later in the meeting.] Vice Chair Jensen requested when this plan document was presented to the Village Council that it be accompanied by the actuarial table; that a graph be done for the Council to help them understand it as well as a synopsis of the tiered benefit changes. Vice Chair Genco expressed her opinion that the presentation to the Village Council needed to be preriy involved. Attorney Jensen indicated she would be available on November 13 to attend, and this presentation could be placed at the beginning of the agenda for her convenience. Attorney Jensen asked if the document needed to be provided to the Village Manager for review and discussion. Vice Chair Genco requested all documentation for the agenda item be provided to the Village Manager at least ten days ahead of the meeting to give him time to discuss it with other Councilmembers and also with Attorney Jensen, if need be. Chair Weinand advised that the deadline for items for the November 13 agenda was October 31. Chair Weinand commented that at the last presentation to the Council they wanted a very detailed report of what was coming out and going in. Attorney Jensen stated she would provide them with a struck-out and underlined copy and also the clean one. b. Investment Guidelines Chair Weinand commented this was required under FS 112.551 and gave the money manager the rules of how to invest the funds. Vice Chair Genco stated there were no changes since the last meeting. Attorney Jensen commented the document in her packet was dated September 3, and her final markup of the plan document was dated September 5, 2003, so she was not sure the document in the packets was the right one. Attorney Jensen noted the tiered benefits were not in tlie September 3 document. Vice Chair Genco asked that a statement be made as to the one just approved. Attorney Jensen stated the September 3, 2003 document would be replaced with the September 5, 2003 document. MOTION Vice Chair Genco made a motion to withdraw the previous motion that was approved. Boardmember Sabin seconded the motion, which carried by� unanimous 4-0 vote. MOTION Vice Chair Genco made a motion to clarify that the Pension Trust Plan document dated for the record September 5, 2003, was approved. Boardmember Sabin seconded the motion. During discussion of the motion BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES October 21, 2003 PAGE 4 --------------------------------------------------------------------------------- there was further clarification of which document was correct. Chair Weinand announced the Board would take five minutes to compare the documents to be sure they had the right document. The documents were reviewed and compared. Motion carried by unanimous 4-0 vote. Chair Weinand directed attention back to the investment guidelines and asked if there were any changes. Boardmember Sabin asked if this was the first document for the guidelines or if this was a revision to a previous document. Attorney Jensen advised that it was a revision to previous investment policy guidelines, and this was a draft combining the presentation by Peter Van Beuren as well as her initial draft. Vice Chair Genco commented there had never been a written investment policy, just an informal one and not a formal written one adopted by the board. MOTION Vice Chair Genco made a motion to approve the investment policy statement. Boardmember Lucia seconded the motion, which carried by unanimous 4-0 vote. Chair Weinand stated the plan document required the Board to have a summa.ry document for employees. Attorney Jensen advised once the plan document was approved by the Village, the Board would have to create a summary plan description that would summarize the benefits available under the plan. Chair Weinand asked if that would be done by the attorney or the Village; to which Attorney Jensen responded that was up to the Board's direction. Vice Chair Genco stated that at the last Council meeting she had asked for a summary for the employees and that at least semiannually a statement of their benefits including their pension and otherwise be provided to them, because they had not been receiving anything showing their total benefits. Vice Chair Genco stated she thought the Village should work on the summary document and then have it reviewed by Attorney Jensen for final review and approval, because most of the information would come from the Village's Human Resources Department. 1VIr. Gallagher was asked to provide this document. Vice Chair Genco advised Mr. Gallagher that there had to be a document produced that stated in plain English what all of the benefits were, and to state what it meant, and he would need to do the same thing separately for the General Employees. Vice Chair Genco explained to Mr. Gallagher that the Village Council wanted a breakdown of what each employee received in the way of total benefits; broken down by pension, broken down by other benefits such as insurance, etc., and show what each one had in whatever the pension plan was at a specific time. Vice Chair Genco stated that Mr. Gallagher was to pick a date, and this would be done twice a year as BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES October 2�, 2003 PAGE 5 --------------------------------------------------------------------------------- voted on by the Village Council at their last meeting, and now this board was asking for the same thing. Mr. Sabin commented that on the plan just approved by the board, a supplemental benefit was effective October 1, but the Village Council meeting was not until November, and asked if the effective date would move out. Attorney Jensen advised that the way the document was written the effective date would be October 1 and then a retroactive benefit would be due; the whole document was effective on passage except that particular benefit was effective on October 1 st. Vice Chair Genco stated it would be easiest to use the October date. Mr. Gallagher commented he was in process now of putting together something that showed each individual's salary and all their fringe benefits and that was in the final stages now; and the October 1 date had been used. Vice Chair Genco advised Mr. Gallagher that when that was sent out, a summary of the plan document would be included which would be a plain English summary, and he was free to ask Attorney Jensen's help. Chair Weinand commented that the October 1 date did not make a difference in anyone's retirement, so he thought the document could stay as written. V. FINANCIAL REPORTS a) Statement of Accounts (April 2003 — June 2003) — delayed from last two meetings Mr. Gallagher advised that the statement included all activity on the accounts for the past year. Vice Chair Genco stated this was received and filed. Vice Chair Genco asked where the matter stood of getting a person to do a report on whether the investment objectives were being followed. Mr. Gallagher responded there was nothing further to be done on that. Vice Chair Genco stated it had to be done. Mr. Gallagher stated it had not been finalized. Vice Chair Genco commented that would have to be brought back for approval as expeditiously as possible since there was a time line to be followed, and the board had to get it adopted so it must be on the agenda for the next meeting so a decision could be made. Vice Chair Genco commented the board had been waiting for the person from Jacksonville to make a presentation. Mr. Gallagher stated he thought that was deferred, and that person was with A. G. Edwards. Vice Chair Genco stated if he was not going to make a presentation, whoever the Village had who would do this, the board had looked at it and had a tentative idea of what it was going to cost but had never approved who was going to do it. Mr. Gallagher commented that A. G. Edwards was in the area of $ l 0,0001ess any charges for placing orders, so net would be around $8,000 and it had BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES October 21, 2003 PAGE 6 --------------------------------------------------------------------------------- been his understanding the board felt that was too much money and did not want to go that route. Vice Chair Genco stated she believed no one had been approved, so the board needed to approve somebody. Chair Weinand clarified there had been two different proposals at two different meetings, and a cost benefit analysis was needed of both and the board needed to look at both at the same time. Vice Chair Genco stated she thought one of the firms was going to take over execution also of the transactions in addition to providing the report, which would be a wrap situation. Mr. Gallagher advised the A. G. Edwards was the complete deal, while Effron did statistical analysis of everything, which would cost around $2,000. Vice Chair Genco commented one of them included commissions. Mr. Gallagher stated A. G. Edwards included cornmissions. Vice Chair Genco stated that would be a net decrease in cost. Mr. Gallagher responded the net would be somewhere around $8,000. Vice Chair Genco asked that Mr. Gallagher do a summary of each one and have it on the next meeting agenda. b) Progress Report by Finance Department — Cash Flow Report for the Second Quarter (April 2003 — June 2003) Mr. Gallagher advised that the cash flow summarized all the dividends and interest earned for the past year, and approximately $42,000 had been earned in investments last year in addition to capital gains. Mr. Sabin asked why there were separate balance sheets for firefighters and police, and was advised by Mr. Gallagher that one document governed Public Safety, but funds were separate. Attorney Jensen advised separate documentation was required to get insurance proceeds for each; but benefits were the same for both. Mr. Gallagher commented expenses were also separated for fire and police according to how much was invested. Chair Weinand advised that by keeping the accounting separated, approximately $40,000 more in insurance premiums was received from the State. Chair Weinand commented the percentages were changing on a monthly basis, which he was glad to see. The report was received and filed. c) Report of the Amount of Supplemental Funds to be Utilized for Additional Benefits Mr. Gallagher advised there was a copy for police and for fire, and another check had been received that was not shown. Discussion ensued. Vice Chair Genco commented that up until now these funds had not been allocated but would now be allocated to provide COLA. Chair Weinand noted over the next couple of years probably changes would be made to utilize these funds for more benefits. BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES October 21, 2oog PAGE � --------------------------------------------------------------------------------- Boardmember Sabin asked if an analysis would be provided from time to time on the status of the supplemental funds. Vice Chair Genco responded that the actuarial report included the status of the funds, and that report had been done annually for the past two years with the last one being done last October. Chair Weinand commented an actuarial report was required by the State every three years but the board had decided to do it every two years for awhile, then annually. Vice Chair Genco commented another one would probably be done after the first of the year. Chair Weinand commented he saw no need for an actuarial report right now, since Mr. Palmquist had been involved in all the benefit changes and had been tracking things and would be going through the plan document changes and probably make an analysis to show how much supplement money had been used, etc., so suggested holding off until next October. Vice Chair Genco suggested if holding off, to wait until the Village's annual audit the following year, which would save $8,000- $10,000, and making the next one concurrent with the 2004 audit. MOTION Vice Chair Genco made a motion to do an actuarial analysis with the 2004 budget and every two years thereafter, to coincide with the audit, and to make sure the Council received a copy of that when looking at other documents that had to do with the pension—the trust plan, so they would know what the board was doing . Boardmember Sabin seconded the motion. Vice Chair Genco stated that the board should receive a copy of that when looking at other documents. Motion carried by unanimous 4-0 vote. Chair Weinand questioned whether a memorandum of understanding with the audit firm was needed since the audit for the pension plan was done through the Village audit and the pension was a separate entity. Attorney Jensen advised there should be a memorandum of understanding and that the audit firm would provide that. Vice Chair Genco suggested that be left up to Finance Director Forsythe to get a letter of engagement from the auditors, to have the letter in a meeting agenda packet, and to send a copy of the engagement letter to Attorney Jensen. VI. PAYMENTS TO BE REVIEWED AND APPROVED a) Business Services Connection - $172.00 b) Hanson, Perry & Jenson, P.A. -$2,212.01 BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES October 21, 2003 PAGE 8 --------------------------------------------------------------------------------- MOTION Vice Chair Genco made a motion to approve all payments as presented. Boardmember Lucia seconded the motion, which carried by unanimous 4-0 vote. VII. NEW BUSINESS a) Presentation of Annual Report Mr. Gallagher commented that everyone had been provided with a copy of the report, which had been done on time this year but never discussed, and this was a report required by the State, covering police and firefighters. The report had been sent on February 5, 2003 and was due by March every year. Attorney Jensen commented there was an analysis on page 6A of extra benefits. Mr. Gallagher explained the report covered all activity of individuals in and out of the pension plan and tied into the general ledger. Chair Weinand commented this was a snapshot of the fund every year and going back in time one could see a full analysis of each year. Vice Chair Genco commented Mr. Gallagher and Ms. Forsythe worked on the report and it took months to figure out what had been done in the past because they had never been done correctly. Mr. Gallagher stated that now every entry could be traced. Boardmember Sabin asked when the date was to file the 2003 information, to which Mr. Gallagher responded it was March, 2004. Mr. Sabin asked the requirement for finishing the annual audit, which Vice Chair Genco stated was usually done by March. It was stated that the audit was usually done in January with final approval in March. Mr. Sabin commented it would be nice to have them coincide, with the board seeing the annual report and the audit report at the same time since the numbers were similar. Mr. Gallagher explained that right now a cleanup of last year was being done, and the month of October was used to get everything in, such as invoices, etc. In November all the work papers were assembled to make it easier for the auditors to do the audit. Last year the auditors came in December for preliminary, and they finished in late January and February—and he anticipated that same schedule for this year. Vice Chair Genco commented this was the first year the audits and all financial reports would be in order, and not quite two years ago there had been 22-27 pages of auditor's comments. The report was received and filed. b) Discussion of FPTTA Conference in October Mr. Gallagher announced the next FPTTA conference would be held January 25- 28, 2004 at the Sawgrass Marriott. Attorney Jensen advised the State usually held a conference in Tallahassee in March. Boardmember Sabin asked which was BOAItD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES October 21, 2003 PAGE 9 --------------------------------------------------------------------------------- recommended. Vice Chair Genco recommended FPTTA, which she stated was expensive but well worth it, and over 2-3 years one could receive certification. Vice Chair Genco commented the Village had decided not to pay for certification, but it might be worth it for someone in the financial field. Discussion ensued. Mr. Gallagher noted basic, intermediate and advanced programs were available, and Vice Chair Genco advised that in the past the Village had paid registration fees and expenses. IX. COMMUNICATIONS FROM CITIZENS There were no communications from citizens. X. ANY OTHER MATTERS Chair Weinand commented that a time needed to be set for quarterly meetings to avoid confusion. Consensus was to set a consistent time for quarterly meetings on the second Tuesday of the month in February, May, August, and November. If the second Tuesday fell on a holiday the meeting would default to the third Tuesday for that month. The meeting time was set for 10:00 a.m. Attorney Jensen asked if there would be a meeting this November. Vice Chair Genco stated that this board's next meeting would be held in February unless the Village Council had changes to what the board was proposing, in which case another meeting would have to be held. Chair Weinand advised that these four quarterly meetings should have on the agenda the quarterly reports and quarterly information with Peter Van Beuren present, and if another meeting was needed in between these quarterly dates those meetings would only be about what the board needed to deal with at that particular meeting. Boardmember Sabin asked when the audit report and annual report could be on an agenda, and was advised the annual report was due March 15, so those could not be seen together before that time. Chair Weinand commented that the board needed to decide today on sending a member of the board to one of the pension schools, since the next date FPTTA conference was in January and the next State conference was in March. MOTION Vice Chair Genco made a motion to approve sending one member of the board to attend the FPTTA conference in January, 2004, and one member of the board to attend the State conference in March, 2004 for pension training; and stated that BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES October 2�, 2003 PAGE io --------------------------------------------------------------------------------- whoever wanted to go needed to get their paperwork in and coordinate with Mr. Gallagher, and the Board would pay registration fees and expenses. Boardmember Sabin seconded the motion, which carried by unanimous 4-0 vote. Chair Weinand commented the board typically picked up the registration fees and paid approximately $21 per diem for expenses. In response to a question if only one person could be sent at a time, Attorney Jensen advised that more than one could go but they would have to be careful about talking to each other. Chair Weinand commented it was best not to be put into that position. Mr. Gallagher commented one employee, Scott Donaldson, had left and wanted distribution of his pension fund. Mr. Gallagher explained that he had drawn the checks and they needed to be signed by two members of the board. The total to Mr. Donaldson was $3,576.06 and the amount withheld for taxes was $894.01, so the total distribution was $4,470.07. Chair Weinand commented that some time ago the board had made a motion that the board could sign those checks and they would come back at the next business meeting. Mr. Gallagher explained that they had been sigried by members of the General Employees board in error, so he had had to re-do the checks. Vice Chair Genco advised that the board could approve the distribution now. Mr. Gallagher requested the boaxd approve this distribution so that the checks could be signed after this meeting. Chair Weinand stated he would like to see that on an agenda; that he did not mind having the checks signed so Mr. Donaldson could get his money, but he would like to have it on the next agenda so that there would be a record in the minutes. Vice Chair Genco stated she agreed with just signing now. X. ADJOURNMENT There being no further business, the meeting was adjourned. MOTION Boardmember Sabin made a motion to adjourn the meeting at 11:10 a.m. Vice Chair Genco seconded the motion, which carried by unanimous 4-0 vote. BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES October 21, 2003 PAGE i� --------------------------------------------------------------------------------- Respectfully submitted, ��--C _. l�:� : :i��`�-��' 2.� . � Betty Laur Recording Secretary DATE APPROVED: ; � � _. �-� �