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HomeMy WebLinkAboutPension General_Documentation_Tab 01_05/07/2007SYNPOSIS OF GENERAL EMPLOYEES' PENSION BOARD QUARTERLY MEETING MINUTES OF 2.5.07 • i. Approved minutes of i i.6.G7 quarteriy meeting. 2. Elected Board member Catherine Harding as Chair. 3. Welcomed new Board member Carl Hansen and new Pension Coordinator Lori McWilliams. 4. Approved a recommendation to Village Council to approve paying 3% interest on employee contributions withdrawn before vesting. ~. Joe Bogdahn presented the Monitor's report for the quarter ended December 31, 2006. 6. Ratified payment of $806.50 to Hanson, Perry & Jensen P.A. made between quarterly meetings. 7. Approved the following payments: Business Services Connection $193.32; Hanson, Perry & Jensen, P.A. $22 i .00; Bogdahn Consulting, LLC $1,125.00; Dana Investment Advisors $1,362.54; Salem Trust Company fee advice $663.95; and Village of Tequesta General Fund for Crime Policy $164.25. Approved new applicants: Debra Telfrin Date of hire 11 /6/06 Carlos 1vlorales Date of hire 11/13/06 • Gunner M. Boalt Date of hire 12/4/06 Lori McWilliams Date of hire 1/3/07 9. P.atif ed withdrawals made since the last meeting on 2 signature basis: Bob Garlo 11/27/06 Gross: $9,290.87; Net Payout $7,432.70 Gwen Carlisle 11/2/06 Gross: $5,588.40; Net Payout $4,470.72 Daniel Soltis 11/17/06 Gross: $310.70; Net Payout $248.56 i G. Approved budget report. 11. Approved account statements for period October through December 2006. 12. Accepted investment manager`s report from Dana Investment Advisors, Inc. for period ending 12/31/06. 13. HR Director Merlene Reid provided an explanation of the pension status of Bob Garlo and Russell White. Attorney Jensen advised the Village was waiting for a ruling from Florida Retirement System for final resolution of this matter. 14. Approved a motion to wait a month before advertising the vacant 5th member position to allow board members time to contact people they felt would be good to serve on the board. • 15. Approved Catherine Harding to attend the FPTTA conference to be held in June, and all members to attend the school in October to be held in Palm Beach Gardens. SYNPOSIS OF GENERAL EMPLOYEES' PENSION BOARD QUARTERLY MEETING MINUTES OF 2.5.07 • l o. Ratified the Administrative Rules as amended to change meeting months, to rotate time of meetings with the Public Safety Officers Pension Board, and to change the meeting place to the new Village Hall. 17. Attorney Jensen distributed the Summary Plan Description for review by board members between meetings, to be presented at the next quarterly meeting for approval. 18. Approved changes to the Travel and Expense Policy to reflect the current IRS mileage reimbursement rate. END OF SYNOPSIS • • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND MINUTES OF REGULAR QUARTERLY BOARD OF TRUSTEES MEETING FEBRUARY 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 February 5, 2007. The meeting was called to order at 8:41 a.m. by Pension Coordinator Lori McWilliams. A roll call was taken by Betty Laur, Recording Secretary. Board members in attendance at the meeting were:. Board member Catherine Hazding, Board member Merlene Reid, and Board Member Carl Hansen. Also in attendance were Monitoring Consultant Joe Bogdahn from Bogdahn Consulting, Attorney Bonni Jensen, Pension Coordinator Lori McWilliams and Accounting Clerk Monica Rahim. Secretary Archie Mangum, Jr. was absent from the meeting. II. APPROVAL OF AGENDA • Pension Coordinator McWilliams announced that item 14 on the agenda would be removed and discussed at a subsequent meeting when a checklist had been received from the Florida Retirement System. MOTION: Board member Hansen made a motion to approve the agenda as amended. Board member Harding seconded the motion, which carried by unanimous 3-0 vote. III. ELECTION OF CHAIR Pension Coordinator McWilliams explained that it was necessary to appoint a new Chair, as former Chair Bob Garlo was no longer with the Village. The vacancy on the board had been advertised, but so far there had been no volunteers. MOTION: Board member Harding made a motion to appoint herself as Chair. Board member Hansen seconded the motion, which carried by unanimous 3-0 vote. Newly elected Chair Catherine Harding took charge of the meeting. IV. APPROVAL OF MINUTES • MOTION: Board member Hansen made a motion to approve the minutes of the November 6, 2006 • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES February 5, 2007 PAGE 2 regular quarterly meeting as submitted. Board member Reid seconded the motion, which carried by unanimous vote. V. WELCOME NEW BOARD MEMBER CARL HANSEN AND NEW PENSION COORDINATOR LORI McWILLIAMS Chair Harding extended a welcome to new Board member Hansen and to the new Pension Coordinator and Village Clerk Lori McWilliams. VI. UNFINISHED BUSINESS Consideration of paying interest on employee contribations per Gabriel, Roeder and Smith Company's calculations proposal Pension Coordinator McWilliams advised that calculations which the board had requested • from Steve Palmquist of Gabriel, Roeder, Smith and Company were included in the meeting packets, with calculations for paying interest at the rate of 1 % to 5% on employee contributions. This item was being brought before the board for a decision on the rate of interest to be offered. For benefit of new member Hansen, Chair Harding explained that the board had decided to pay interest on contributions made into the pension plan to departing employees who left before being vested; the actuary had been requested to provide calculations on paying interest at rates of 1 % up to 5%, so that the board could make a decision on what rate to pay. This meant, for example, that an employee who left after four years and had paid money into the pension fund would receive their money back plus a small amount of interest rather than only their contribution. Chair Harding advised that Secretary Mangum had been helping with this, and the board had felt interest in the range of probably 2 or 3 percent was warranted for having the money sit in an account. Chair Harding suggested 3%. Attorney Jensen advised this would be a change to the ordinance for the pension plan document; the actuarial impact had already been prepared and was attached showing that would increase the employer's contribution by .01%. It was noted that Mr. Palmquist had indicated he would attend the next Village Council meeting to present this to the Village Council for consideration of approval. Chair Harding commented that she believed the board should make a decision today on the rate. Monitor Joe Bogdahn and Attorney Jensen estimated less than 25% of pension plans paid interest on returned contributions. Board member Reid commented she would like more information on why such a small percentage • paid interest. Attorney Jensen advised of the discussion that led up to this, there was a fairly high turnover in this pension plan and the board wanted to provide those individuals with some rate of interest, rather than only giving back their contributions. Board member Reid BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES February 5, 2007 PAGE 3 expressed concern that she was not understanding why 75% of plans did not pay interest. Board member Hansen and Chair Harding stated they were in favor of establishing an amount. Chair Harding explained that in previous discussions with Secretary Mangum present, the intent had been not to make the percentage very high just enough so that employees would get some interest on their money that had been sitting there for some length of time. Attorney Jensen pointed out there was no cost difference between providing between one and four percent. MOTION: Board member Hansen made a motion to pass on to the Village Council a recommendation to approve 3% interest paid to employees leaving before they are vested in the General Employees Pension Plan. Board member Harding seconded the motion. Motion carried by unanimous 3-0 vote. • VII. PRESENTATIONS Presentation by Monitor Joe Bogdahn, of Bogdahn Consulting, LLC, reviewed his presentation booklet for the quarter ended December 31, 2006. Mr. Bogdahn noted the first page was a simple performance report showing cash flow for the quarter, with gain after fees of $31,397.51. Bond returns for the past year at 4.07% had been right on top of the benchmark index of 4.07%, which had been unexpected. Mr. Bogdahn reviewed equity, noting that the most recent quarter's 6.70% S&P 500 return had been their largest single quarter return since 1999. Tequesta's equity return for the quarter had been 6.02%, which was very strong, and was the first time in seven years they had not outperformed the benchmark. Board member Hansen asked Mr. Bogdahn's opinion regarding whether changing from FRS to their own pension plans had been a benefit for the Village. Mr. Bogdahn explained the FRS contribution rate was higher, and the Village had more control with their own plans, and from the Village's standpoint they had a better multiplier rate and it was less expensive for the Village than if they had stayed with FRS. Chair Harding stated on the State pension the employee made no contribution, and on the self-funded pension plan, as in the Village of Tequesta pension plans, the employee was making a contribution, so it was employee money that had come out of their paychecks that the board had voted to pay interest on. VIII. CONSENT AGENDA • Board member Reid requested #hat under Ratification of Withdrawals made since the last meeting on 2-signature basis, Bob Garlo and Russell White be pulled, since they BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES February 5, 2007 PAGE 4 would be discussed later in the agenda. Ratification of Invoices Paid since last Quarterly Meeting: • Hanson, Perry & Jensen, P.A. $ 806.50 Payments To Be Reviewed And Approved: • Business Services Connection - 11/6/06 meeting and minutes $ 193.32 • Hanson, Perry & Jensen, P.A. $ 221.00 • Bogdahn Consulting, LLC $ 1,125.00 • Dana Investment Advisors $ 1,362.54 • Salem Trust Company fee advice for period 10/ 1 /06 to 12/31 /06 $ 663.95 • Due to General Fund for Acordia Insurance for Crime Policy #CCP001750012 $ 164.25 Approval of new applicants for participation in Pension Plan Debra Telfrin Carlos Morales Gunner M. Boalt Lori McWilliams Date of hire 11 /6/06 Date of hire 11/13/06 Date of hire 12/4/06 Date of hire 1/3/07 Ratification of withdrawals made since the last meeting on 2 signature basis: Bob Garlo 11/27/06 Gross: $9,290.87; Net Payout $7,432.70 Gwen Carlisle 11/2/06 Gross: $5,588.40; Net Payout $4,470.72 Daniel Soltis 11/17/Ob Gross: $310.70; Net Payout $248.56 Russell White Gross: $2,377.63; Net Payout $1,9902.10 • Budget Report MOTION: BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES February 5, 2007 PAGE 5 Board member Reid made a motion to approve the Consent Agenda with Bob Garlo and Russell White to be discussed later in the meeting. Board member Hansen seconded the motion, which carried by unanimous 3-0 vote. IX. FINANCIAL REPORTS Account Statements (October-December 2006): There were no questions regarding the financial reports. MOTION: Board member Hansen made a motion to approve the account statements for the period October through December 2006. Board member Reid seconded the motion, which carried by unanimous 3-0 vote. Accent Investment Manager Report from Dana Investment Advisors, Inc. • MOTION: Board member Hansen made a motion to accept the Investment Manager Report from Dana Investment Advisors, Inc. Board member Reid seconded the motion, which carried by unanimous 3-0 vote. X. NEW BUSINESS Report by HR Director Merlene Reid regarding Pension Status of Bob Garlo and Russell White HR Director Reid advised Bob Garlo had retired from FRS and had started receiving pension funds from FRS. Because he thought he had retired properly, he was entered into the General Employees Pension Plan. Subsequently, a letter was received from FRS indicating he did not meet the requirements of termination as stated in the Statute. Because of that, he was given certain options and he selected one, which was that he would resign for 31 days or the full calendar month, as he was required to do. Again, this was an option given to him. Director Reid advised that the problem seemed to be with the term "properly terminated", and stated that she had heard some confusion about the term, although it was clearly stated in the Statute. When offered the options, Mr. Garlo had chosen to resign, which resulted in him being refunded his contributions. • Attorney Jensen commented that essentially, two members who were a part of this pension plan had previously been a part of the Florida Retirement System. Apparently, as the Florida Retirement System had determined, they did not properly terminate their BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES February 5, 2007 PAGE 6 employment, although it was communicated to the Village that they did meet the requirements for full retirement in the Florida Retirement System. At this point the Village and the Florida Retirement System were trying to arrive at a solution to the issue that had arisen. As of today, the resolution of this was still unknown; although the Florida Retirement System had indicated the two members that were in the General Employees Pension Plan program needed to take some different action-they were previously part of the FRS system and once they terminated that relationship or retired from FRS, they joined the Village retirement system, and apparently Mr. Garlo had chosen to terminate his employment and take a refund of contributions from this plan. Attorney Jensen advised that the Village may be in a circumstance where they needed to make contributions into the Florida Retirement System to offset some of the contributions made into their own pension plan. The resolution was unknown at this point, waiting for word from the Florida Retirement System. Chair Harding asked why the checks were drawn and the funds disbursed before there had • been a formal resolution-the employees had submitted resignations because they had no alternative. Attorney Jensen advised they were entitled to a refund of contributions upon retiring. Chair Harding responded she knew that, but they had retired under duress with no alternatives, and alternatives weren't fully available at the time and apparently the decision still was not resolved. Attorney Jensen stated she had no knowledge regarding the individual employees-she was looking at an e-mail in the packet under item 13 from Andy Snuggs of Division of Management of the Florida Retirement System which indicated how the members would be treated. The remaining open question was if the Village was responsible to pay into the Florida Retirement System and whether that would have any interplay with this pension plan. That was her understanding of the only open question. Pension Coordinator McWilliams explained that Finance Director Forsythe had been working with the Florida Retirement System for the past week, and Village was waiting on a ruling from Florida Retirement System shortly, as well as checks and balances to make sure this did not happen again. Attorney Jensen advised that the Village wanted to understand and have something in writing for resolution of issues that had arisen that they could rely on; to have a ruling from Florida Retirement System that they could rely on so that this would not happen again. HR Director Reid asked Chair Harding why she thought they had been asked to resign under duress. Chair Harding explained because of overwhelming conditions; they had no choice. Ms. Reid responded she had minutes of a meeting where FRS told them they had the option to take up this matter legally, but they • opted to resign, and a statement from one of the members in the meeting, if Chair Harding would like to look at that. Chair Harding clarified for the members of the board that they had ratified the payouts to these individuals. It was noted Russell White's • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES February 5, 2007 PAGE 7 payout had not been ratified; that he was going into the drop program. Attorney Jensen commented Mr. White's situation would have to be looked into because he could not be entitled both to the drop program and Florida Retirement. HR Director Reid commented on the question of the individuals understanding there is a distinction to termination. The whole problem came from members not satisfying the criteria of what was proper termination-not resigning for 31 days. The question arose whether they were eligible to enter into the General Employees' Pension Plan, and the answer was yes if they had terminated properly, but they had not terminated properly. Issues were being confused, and she had brought to the meeting the definition of employer in the Statute. Chair Harding commented one of the issues was not properly resigning and going into another plan. Board member Reid responded they could have entered into the plan if they had terminated properly; the problem was the termination- not whether they could have entered the Village's plan. Chair Harding asked if the requirement to properly terminate was based on going into one FRS plan from another • one. Attorney Jensen advised that Tequesta had an FRS plan for certain employees, and the members could have continued with FRS. Members terminating from the Village's plan did not have the same restrictions going into FRS; these were FRS rules that applied to members of FRS. Members of the Village's plans could not draw retirement and continue to work here. The question was whether the individuals were eligible to participate in the Village plan-did they properly terminate for purposes of retirement in order to be eligible to receive retirement benefits. In order to be re-hired at a place that had a FRS plan, one must meet the requirements of the Florida Retirement System. Individual employees of the Village who were in the FRS plan fell under those rules, so in order to be eligible to receive a retirement benefit, to continue to work in that same job for that same employer, the rules of the Florida Retirement System had to be met and the Florida Retirement System was saying those rules were not met. Attorney Jensen advised the Village was exploring how to fix this problem. The members began receiving retirement benefits, so from the Village's perspective they met the requirements. The Village had not been aware they had to terminate their employment for 30 days-in fact, they had been told to the contrary. If they had properly terminated according to FRS rules, there would not have been a problem. Chair Harding commented she thought the only time one had to terminate for 31 days was when going from one FRS plan into another FRS plan. Attorney Jensen commented that may have been the source of confusion; she did not know the answer to that question because she had not been intimately involved; she did know that when she had been • asked if they could properly enroll in this plan and she had said yes, because they had properly terminated. Board member Reid produced Attorney Jensen's letter from 2004 stating yes, you can enter the new plan as long as you meet the requirements for BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES February 5, 2007 PAGE 8 terminating from FRS. Board member-Reid stated the issue here was whether they had properly terminated from FRS; the answer was they did not; FRS gave certain options- the individuals were told they could seek legal advice, one chose to stay in the drop plan, the others chose to resign, and there was no duress. Chair Harding noted they felt there was duress. Board member Reid stated they may have felt that way, but they could have chosen to stay, but they would have had to pay back a lot of the money. Discussion ensued-Attorney Jensen stated she was aware people working for Public Safety were told they could retire and then work for the Village, but there was nothing in writing. Board member Reid read from the letter received from FRS that it had come to their attention there may be employees of your agency who have applied for FRS retirement that have not met the legal definition of termination as defined in the Florida Statute. Attorney Jensen advised that Florida Retirement System had steps one must go through in -order to terminate employment, receive retirement benefits, and then return to employment. Mr. Bogdahn commented this would not be a problem if the Village had no employees in FRS so that they would not be considered an FRS employer. Attorney • Jensen explained it was because each of these employees could have stayed in their jobs and continued in FRS. Board member Reid asked what should be done about Russell White, to which Attorney Jensen responded the Village would have to look into refunding his contributions; Finance Director Forsythe had tried diligently to get information for from FRS for this meeting, but had been unable to get what was needed. Chair Catherine Harding thanked Board member Reid for her explanation. 5th Member of Board position open Pension Coordinator Lori McWilliams reported on January 28 she had advertised this open position for the Board in the Palm Beach Post, but no applications had been received. This position could be filled either by an employee or a resident. Discussion ensued. Attorney Jensen read from the ordinance to clarify that the position did not have to be filled by a resident and suggested it could be anyone who had a tie to the community because someone like that might be interested, but there was no restriction whatsoever. It was clarified that Secretary Mangum was coming back, but in the meantime the board could operate with three members which was a quorum, but all three must vote in favor to pass a motion. Consensus was to put off the advertising for a month while the Board tried to find someone who might be interested. Pension Coordinator McWilliams advised that candidates would need to submit a letter and resume to the Village Clerk's office. MOTION: • Board member Hansen made a motion to wait a month before advertising the vacant 5th member seat, and members of the board would contact people they felt would be good to serve on this board. Chair Harding seconded the motion, which passed by • HOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES February 5, 2007 PAGE 9 unanimous 3-0 vote. Consideration of Sending A Member To FPPTA Conference -June 24-27, 2007 in Naples, Florida Pension Coordinator Lori McWilliams advised that Chair Harding had been scheduled to attend previously but had been unable to attend. Mr. Bogdahn advised that the June meeting was a conference, and the school was coming up in October where education was offered in three categories, beginner, intermediate, and advanced. If one was not enrolled in the certification program one could attend any class, and there were over 50 topics. The big advantage to attending either the conference or the school was the ability to network with other pension trustees. Chair Harding commented she would like to go in June. She had not decided whether to go into the certification program because of the additional $750 that would cost. Board member Hansen commented he was glad to hear someone wanted to attend. Chair Harding asked that in October everyone plan to go since it would be in Palm Beach Gardens. Board member Reid stated she had an HR conference in.~Cteb~r. r~v~u-~ • MOTION: (J Board member Hansen made a motion to send Catherine Harding to the FPPTA conference in June and that all members plan to try to attend the local FPPTA school in Palm Beach Gardens in October. Board member Reid seconded the motion, which carried by unanimous 3-0 vote. ~I. ANY OTHER MATTERS Attorney Jensen distributed the revised Administrative Rules, updated to show the new meeting schedules and times; part 4, section 4.1, page 7, had been changed to show quarterly meetings would be held in February, May, August, and November. Section 4.4, timing of the meetings, indicated meeting times would be rotated with the Public Safety Pension Board. It was pointed out that there was now a new meeting place, the new Village Hall. Attorney Jensen advised she would make that change, and the next meeting would be held Monday, May 7, 2007 at 10:30 a.m. Attorney Jensen advised if a motion were approved to accept the administrative rules as amended, she could make the change, then the document could be signed and it would be finished; it did not require ratification by Council. The signed document could stay with Pension Coordinator McWilliams until the next meeting, when a signed copy would be returned to Attorney Jensen. MOTION: • Board member Reid made a motion to ratify the Administrative Rules as amended. Chair Harding seconded the motion, which carried by unanimous 3-0 vote. ~1 U BOARD ®I+ TR~JSTE+ I+ w TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES February 5, X007 PAGE 10 Attorney Jensen provided the Summary Ilan Description, which needed to be updated, and asked the members to review it between meetings, and it could be approved at the next meeting. Attorney Jensen provided an amended Travel Expense Policy. It had been suggested this policy be amended on page 2 for travel expenses to be reimbursed at the standard IRS mileage rate; that would be the only change to this document. Attorney Jensen provided a copy of the new IRS reimbursement for mileage which was currently 48.5 cents per mile. MOTION:: Board member Reid made a motion to approve the changes to the Travel and Expense Policy to reflect the current IRS mileage reimbursement. Board member Hansen seconded the motion, which carried by unanimous 3-0 vote. • XII. COMMUNICATIONS FROM CITIZENS No citizens were present. XIII. ADJOURNMENT There being no further business, upon motion by Board member Hansen seconded by Chair Harding, the meeting was adjourned at 9:55 a.m. Respectfully submitted, ~ ~ ~ ;~ Betty Laur Recording Secretary •