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HomeMy WebLinkAboutDocumentation_Regular_Tab 06B_11/14/2002 r ; � VILLAGE OF TEQUESTA � Post Office Box 3273 • 25Q Tequesta Drive, Suite 300 r ' *�� a Tequesta, Florida 33?�69-0273 • (561) 575-6200 3 ' o Fax: (561) 575-6203 o - ; � 1 C TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND BOARD OF TRUSTEES MEETING AUGUST 6, 2002 I. CALL TO ORDER A.ND ROLL CALL The Tequesta General Employees' Pension Trust Fund Board of Trustees held a regular meeting at the Village Manager's Office, 250 Tequesta Drive, Suite 300, Tequesta, Florida, on August 6, 2002. The meeting was called to order at 10:00 a.m. A roll call was taken by Betty Laur, Recording Secretary. Boardmembers in attendance at the meeting were: Vice Cl�air JeffNewell, Boardmember Greg Corbitt and Village Manager Michael R. Couzzo, Jr., Secretary of the Board. Chair Geraldine Genco was absent from the meeting. Also in attendance were Project Accountant Dan Gallagher. Finance Department Representatives Randy Schmitz and Marilou Kuper, and Kim Bodinizzo, Human Resources Coordinator, joined the meeting later. II. APPROVAL OF AG�NDA MOTION: Secretary Couzzo made a motion to approve the agenda as submitted. Boardmember Corbi�t seconded the motion, which carried by unanimous 3-0 vote. III. APPROVAL OF MIloTUTES Tequesta Employees' Pension Trust Fund Board of Trustees Special Meeting Minutes of May 21, 2002. MOTION Boardmember Corb�tt made a motion to approve the minutes of the Tequesta Employees' Pension �rust Fund Soard of Trustees Special Meeting of May 21, 2002 Recycled Paper BOARD OF TR�TSTEES TEQUESTA GENERAI. EMPLOYEES= PENSION TRUST FUND MEETING MIl1f UTES August 6, 2002 PAGE 2 as submitted. Boardmember Couzzo seconded the motion, which carried by unanimous 3-0 vote. I�'. UNFINISHED BUSINESS a) Report on statas of registration for members to attend FPPTA Certifica.tion Progrr�m — Dan Gallagher, Project Accou��at Mr. Gallagher reported he ha.d all the forms. Secreta,ry Couzw cflmmeirted the Board had approved paymem from the fund. Mr. Gallagher indicated he would send in the paperwork for membership which cost $350, and then would send in the regis�ration for the two people who had been flesigaated to attend the certification program in September, Jeff Newell and C'rregg Corbitt. No actian was required since this ha.d been approved at the last meeting. b) Presentation of copy of contract from Hanson, Perry & Jensen, P.A. selected as attorney for tLe pension plan at the May 21, 2002 meeting — Dcxn Gallagher, Project AccountaYet Mr. Gallagher provided a copy of the engagement agreement. Secretaay Couzzo noted this item need.ed no action other than to have the contract executed. c) Cost Estimate for Actuarial Studp as of Uctober 1, 2002 from Stephen Palmquist — Dc�c Gallagher, .Project Accounta�t Mr. Gallagher reparted he ha.d spoken with Mr. Palmquist and the cost would be $5,600.00, divided between the General Employees and the Public Safety Officers' pension trust fund. MOTION: � Secretary Cou�w made a motion to hire Stephen Palmquist to do an actaarial stady for $5,600.40 with cost shared between the General Employees Pension Trust Fund and the Public Safety Of�cers' Pension Trust �und Boardmember Corbitt seconded the motion. Motion carried by unanimous 3-0 vote. V. STANDING REPORTS a) A�proval of new applicants for participatian in Pension Plan (May - July 2002) � 1 BO�RD OF TRUSTEES TEQUESTA GENERAI. EMPLOYEES= PENSION TRUST FUND MEETIlITG MINUTES August 6, 2002 PAGE 3 Christine Diemer Guison July 22, 2002 Cindy L. Flaskerud July 22, 2Q02 MOTION Ser.retary Couz�zo moved approval of new applicants for participation in Pension Plan as submitt�d. Boardmember Corbitt seconded the motion, which c�.rried by unanimous 3-0 vote. b) Approval of Beneficiaiy Changes (May - JWy 2002) Marl� B. Fives MOTION Secretary Cou7ao mov�d approval of beneficiary changes as su6mitted. Boardmember Corbitt se�onded the motion, which carried by unanimous 3-0 vote. c) Request for withdrawal of contributions (employees terminating employment with Village of Teque.cta) (May - July 2002) Mark McGraw June 14, 2002 $497.60 MOTION: Secretary Cou�o moved approval of request for wit6drawal of contributions as submitted. Boardmember Corbrtt seconded the motion, which carried by unanimous 3-0 vote. d) Ratification of withdrawals made since the last meeting on 2 signatare t►asis None e) Cash Flow SchedWe Mr. Ga,llagher noted the reports were included in the packet, along with a copy of the statemerrts from Prudential which were the basis for the cash flow reports. Mr. Gallagher commented thax he would update the cash flow to include 7u1y since that statemeirt ha.d now been received. VI. FINANCIAL REPORTS BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES= PENSION TRUST FUND MEETING MINUTES August 6, 2002 PAGE 4 A) Prudential Securities, Inc., Custodial Broker, Income and Distributions FYE 12/31/Ol and 3/31/02 and Account Statements (May-JWy 2002) Mr. Gallagher reported $25'7.00 income for last mornh in the money market fund. VII. PAYMENTS TO BE REVIEWED AND APPROVED a) Business Services Connection -$96.75 (recording services) MOTION Secretary Coazzo made a motion to apprpve the payment of $96.75 to Business Services Connection. Boardmember Carbitt stconded tLe motion, whieh carried by unanimoas �0 vote. V�. NEW BUSINESS a) Annual Report — approval received - Da�e Gallagher, �°roject Accountcuzt Mr. Gallagher commeirted that last year's armual report had been finished by � De.cember 31 in order to get State funds. This year's report had been completed and approval dated 7une 27, 2002 ha.d been received. Mr. Gallagher advised that copies were available for anyone who would like one, wluch stated the income, liabilities, revenues, expenditures, for the pa.st year and the additions and terminations of the Police and Fire employees. Mr. Gallagher indicat� the overall Accounting Department did a job this year in getpng the annual report finished by Ma.y 15 and receiving approval da.ted. Jiuie 27, wluch was certainly an improveme�t over last year. Secretary Couzzo commerrted kudos to a11. b) Consideration of appointment of Joan Wall as Administrator of General Employees Pension Trust Fund - Kim Bodini�o, Human Resources Coordi�cztor MOTION Secretary Cou�zo made a motion to recess for ten minutes 6efore hearing tLis item. Boardmember Corbitt seconded tLe motion, which carried by unanimous 3-0 vote. TLe meeting was therefore adjourned at 10:10 a.m. BOARD OF TRUSTEES TEQUESTA GF•NE,RA.i� EMPLOYEFS= PENSION TRUST FUND MEE'TII1TG August fi, 2002 PAGE 5 1'he meeting was reconvened by Vice Chair JefF Newell at 10:20 a.m. Vice Chair Newell turn�cl the meeting over to Chair Geraldine Genco, who had arrived during the recess. Chair Genco ask� Joan Wall if she would provide any type of actuarial services, and if she was a CPA Ms. Wall responded ao to both questions. Chair Genco asked. what type of reports Ms. Wa11 would provide, to wluch the response was whatever reports were requested; that she nonna.11y did general le�ger reports quarterly far her other clients. Ms. Wa11 stated. she did not do actuarial work, and that she actually had a coirtract with only one of her clieirts. Ms. Wall explained that �he started in this work in 1978 working for the M'iami Be,ach Police and Fire Departme�ts, and the work had been angoing since tha.t time. Ms. Wall indicated she was not a Certified Pension Administrator, that she ha.d just done their boaks, and the auditors had call� her in because tHey had no books in M'iami Bea.ch. The auditor could not do the books and also audit them; they needed another person, and at the 1;ime she was doing strictly accounting work. Pembroke Pines ha.d th�n asked her to do the rest af their work, which ha.d been a good move on her part. Chair Genco commertted the V'illage needed help from outside administration to provide a breakdown of the plan participaats, comributions, and market value of their participation in the plan on a quarterly ba.sis. Ms. Wall responded thax the market value of co�tnbutions wa.s only done by an actuary and only on an annual basis, and was provided in an employee benefit statemerrt. Chair Genco expressed her wish that participants be able to know the market value of their participa�ion on a quarterly basis. Ms. Wall responded she did not do tha.t and knew of no plan that did that. No one else had. any questions for Ms. Wall. Chair Genco commeYrted Ms Wall had come very highly recommended but the V'Illage was handling the bookkeeping and would like the other services provid�i. Ms. Wall commented as big as Miami Beach was, they did not provide information to participants quarterly. Secretary Couzzo commented he did not know what benefit it would be to provide the value of their contn`butions quazterly. Ms. Wall indica.ted if the Village had a defined benefit plan the participants' benefits were guaranteed; in a defined coutribution plan such as one with Salem Trust, Pepsico, or ICMA, they would provide quarterly statemems for the people, but these were very large institutions. Chair Genco commented the V"illage would only need the amount of contn`butions on a quarterly basis for individuals. Secr�taay Couzzo commented from talking to the employces, they wa�ted. to know w�a.t they ha.d contnbuted, but that was on their pay s�tubs. Wha.t they really wanted to know was how much they would get when they retired, which they got annually �.nd wluch did not change tb�at much beca,use it was based on a percentage of their sa�ary, and Mr. Palmquist estimated. that each year. Mr. Gouzzo indicated. the emplo�s $ad been thinking of changing from defined benefit to defined corrin`bution, but i�o�v they recognized the security in the defined benefit plan at the moment. Mr. Couzzo sugges�ed the Board keep the BOARD OF TRUSTEES TEQUF�STA GENERAI. E1V�LOYEES= PENSIOAT TRUST FUND MEETING MINUTES August 6, 2002 PAGE 6 defined coirtnbution plan option in mind for firture consideration. Ms. Wall commerrted if a defined coulxibution plan was chosen then the V"illage would want to go with a large company like ICMA that handled those, the V'illage would send them money each month, and they would make the invees�ttmmem for the people based on their choice. Secretary Couzzo explained some Yillage employees were with ICMA Secretary Couzzo comme�ed Ms. Wall could work with the V'illage accounting people and complement their work to complete whatever they could not get done. Ms. Wall commeirted for one client the custodial statemeuts came to her hous�, she did the reports, prepared the general ledger, sent out to auditors at year end the schedules they wanted, and also sent information to the actuary for their actuarial evaluation on an annual basis. Ms. Bodinizzo comme�ted this Board ha.d been trying to make a decisio�} whether to go from a defined benefit to defined cornnbution plan. Ms. Bodinizzo indicated she had spoken with the Finance Director, Ms. Forsythe, and they had asked Ms. Wall to come in today with the idea that in the urterm wrtil a decision was made on the type of plan that Ms. Wa11 mi,ght provide accounting services if the Board so desired. Ms. Wall commented if the Board did not feel they had �. need. for that today, they might decide in 3-4 months they would like to ha.ve tha.t done and could contact her then. Chair (ienc� requested Ms. Wall meet with Mr. Gallagher and Ms. Forsythe after tlus meeting. Chair Genco asked for sample� of Ms. Wall's work. Ms. Wall indicated she could provide whatever was wazrted, such as annual reports, general ledgers, adjustmems to market value, etc. Secretary Cou�zo commented. he believed the Board would ha.ve to wait and see regarding the decision to go to a defined contnbution plan, and his feeling was if it were proposed to employees at the present time it would not be well rec�ival because of the economy and the market situaxion. Chair Genco stated the Board would go no fiuther to investigate a change in t1�e plan. Chair Genco commented the attorney ha.d updated the language in the plan about the investme�t overview but had not besn specific. Ms. Wall asked if there wa.s an investment policy, to which Chair Genco responded, yes. Ms. Wall asked if the investime�t policy called. for someone to report to the Board how well their money manager was doing. Chaar Genco responded that was what was just a.dded, and the entire plan was going to be recione. Chair Genco commemed she wauted to officially appoint a secrettary to ttris Board to manage ths agenda, package, make sure people got copies of the package with ba.ckup materials included for all agenda. items, include copies of any presentations to be made at the meeting, and the Chairperson of the meeting should have the opportunity to review the agenda. package and the backup materials at least a week prior to the meeting. Mr. Couzzo commeirteri he was the secretary of the Pension Board, and asked if an existing resolution or ordinance specifically appointed the Manager as Secretary. Recording Secreta,ry Betty Laur responded that she believed that had bceu �o�xn oF �vs�Es TEQIJ�aSTA GEN�RAL EM[PLOYEES= PENSI0�1T TRi7ST �'UNI) MEETING MINUTES August 6, 2002 �'AGE � done by motion of the V'illa.ge Council, which she would research. Mr. Couzzo commerned that what Chair Genco wam�d. to do might require first changing an existing resolution or ordinance and if so, he would like to have tha,t changed since he did not think it should be tha.t way and he did not have the time to do it, and request�. that be researched. Chair Genco commente�i that even if the V'�Ilage Manager was designated as Seca�etary, if that turned out to be the requiremem, the Boaard could have an ad hoc secretary, and Finance I?irec'tor Forsythe ha.d suggested Marilou Kuper for this position. N1r. Couzzo responded if that was the will of the Board, that wat�ld be fine. Ms. Kruper aske� if that meant she would be re�ording secretary. Chair Genco responded that Recording Secretary Beriy I.aur would continue to do the minutes, and 14Ian`lou would be Administrative Assistairt to the Board. Ms. Kuper s�tated she could handle that so long as she w�s given aJl the packet materials and a schedule of the meetings. Chair Genco explained that mestings were a11 scheduled ahead. of time, and that Marilou's duties would be to prepare the agenda. packets for distn`bution, make sure everything was in the packets, double checking everything before it wem out, malcing sure the meeting was on the calendar, and mal�ing sure everyone had the packets ahead of time_ Secrectarary Gouzzo �ommextted maybe everything could be left the same as far as Secretary, and just make Marilou Administrative Assistant to the Boazd. IX. E9►1�TY OTHER MAITERS Secretary Couzzo cominented that a number of employees ha.d requested. changing the vesting period, and if the Board was not going to consider movin.g to a defin�i contn`bution plan at the moment, it might be appropriate to consider a shorter vestin� period or at least start paying urterest on employee cornr�`butions so that the eanplvyees would be earning urterest on the amoum they ha.d comributed. Chair Genco commetrted. thax the Board had talked about tha,t when they talked about getting the pZan re-stated, had talked about adding languag� regarding an urterest rate and at that pourt could look at evaluating cha.nges to vesting. Secretary Couzzo commemed to Mr. Gallagher �t Mr. Palmquist would need to look at that because of the financial impact for early vesting, and suggested he consider 5 or 6 year vesting since 10 years seemed. too long. Chaar Cenco agreed, and commented that the ad.vantage wot�d. be to help the attrition rate, and commented th� thing that bothEred her most was the employees did not get any i�terest on their contributions. Nir. Couzzo suggested Mr. Palmquist laok at 6-year vesting and the financial impact of getdng the urterest na matter when an employ�e left; and a�equested Mr. Gallagher ha.ve Mr. Palmquist look at the financial impact of changing vesting to 6 years and paying an interest rate of 3% for coirtn`butions ma,de at any time withdrawn by a contributor. Mr. Couzzo noted far Chair Genco's benefit that earlier in the meeting the Board had authorized Mr. BOARD OF TRUSTEES TEQUESTA GENERAL E1VgPLOYEES= PENSION TRUST FiJND MEETING MINVI'ES August 6, 2002 PAGE 8 -------------------------------------------------------------------------------- Palmquist to do an actuarial study. Chair Genco asked if the attorney had been accepted by the Board, and was told that had been approved earlier in the meeting_ Chair Genco commented she would like Hanson & Perry's firm to look at the pension plan to make changes. Mr. Gallagher indicated he would request the plan on disk from the former attorney. X. COMIVIUNICATTONS FROM CITIZENS There were no communications from citizens. XI. ADJOURNMENT Vice Chair Newell made a motion to adjourn the meeting. Boardmember Couzzo seconded the motion, which carried by unanimous 4-0 vote. The motion was therefore passed and adopted, and the meeting was adjourned at 10:37 a.m. Respectfully submitted, . _: � '�---`_.�_�� f ��- � �� �.- .�,- I Betty Laur Recording Secretary DATE APPROVED: