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HomeMy WebLinkAboutDocumentation_Pension Public Safety_Tab 01_05/07/2007SYNOPSIS OF PUBLIC SAFETY OFFICERS PENSION BOARD MEETING 2.5.07 • 1. Minutes of November 6 2006 meetin were approved. g 2. Presentation was made by monitor Joe Bogdahn, Bogdahn Consulting. 3. Mr. Bogdahn was to provide corrected universe information via e-mail and then a corrected report; and to modify his quarterly reports to show Rockwood since their inception. 4. Mr. Bogdahn was to request that Andy Holtgrieve forward his latest Form ADV and disclosure reporting page to say if there was any litigation. 5. The matter of whether to use more than one index was to be revisited when the investment manager was present. 6. A discussion of investment manager performance was delayed to the next meeting when the investment manager would be present. 7. Fire Chief Weinand was attending a noon meeting the day of the board meeting at Jupiter Inlet Colony on behalf of the firefighters to request they comply with House Bill 1159. • 8. Reviewed information items: new applicants: Firefighters Adam Evans and John Kostyo; Police Officer Michael C. Morrill; and beneficiary change for Keith Smolen. 9. Ratified withdrawal of contributions by Robert Neier and Michael C. Morrill. 10. Requested a budget report with the budget figures as established the previous year. 11. Accepted the investment manager's report from Rockwood Capital Advisors. 12. Ratified payment to Hanson, Perry & Jensen, P.A. of $787.00. 13. Approved the following payments Business Services Connection $257.76; Bogdahn Consulting, LLC $2,000; Hanson, Perry & Jensen, P.A. $475; Salem Trust Fee Advice for Quarter $767.75; Rockwood Capital Advisors $4,681.60, and payment to the General Fund for Acordia crime policy (Fire $164.25 & Police $164.25). 14. Human Resources Director Merlene Reid presented a report on Mike Morrell's status in the pension plan. • SYNOPSIS OF PUBLIC SAFETY OFFICERS PENSION BOARD MEETING 2.5.07 Page 2 • 15. Secretary Nielson requested looking at the two authorization forms required to be signed when employees terminated; suggesting the Village use a copy of the Salem Trust form as the Village's record. 16. Approved Secretary Nielson to attend the Police and Firefighters Pension Trustee School in March, 2007 if his schedule permitted. 17. Discussed adjustment of payout made to David Cooper, which the Finance Department requested be reimbursed to the General Employees pension fund. Attorney Jensen indicated she would follow up with the Village to see if a conclusion could be reached and explain to them the issue that they could have employees working for the Village who were not covered by a pension plan. The board tabled this item to discuss at a later date if this board needed to be involved. 18. Attorney Jensen presented afollow-up on the Pension Protection Act of 2006. 19. Approved revising the Travel and Expense Policy to make the reimbursement for mileage the standard IRS mileage rate; raising the food reimbursement for lunch from $9.00 to $12.00 and for dinner from $15.00 to $18.00; and deleting the provision that a Certified Public Accountant shall audit trustee expenses annually, since that was done by the Village auditors. END OF SNYOPSIS • • TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND QUARTERLY BOARD OF TRUSTEES MEETING FEBRUARY 5, 2007 L CALL TO ORDER AND ROLL CALL The Tequesta Public Safety Officers Pension Trust Fund Board of Trustees held a regular quarterly meeting at the Tequesta Village Hall, 345 Tequesta Drive, Tequesta, Florida, on Monday, February 5, 2007. The meeting was called to order at 10:30 a.m. A roll call was taken by $etty Laur, Recording Secretary. Boardmembers in attendance at the meeting were: Chair Ray Giblin, Secretary Ken Nielson, and Boardmember Ed Sabin. • Boardmember Kevin Pittman was absent from the meeting. Also in attendance were Pension Coordinator Lori McWilliams, Attorney Bonni Jensen, Joe Bogdahn of Bogdahn Consulting LLC (monitoring consultant), and Accounting Clerk Monica Rahim. II. APPROVAL OF AGENDA Pension Coordinator McWilliams requested removal of agenda item 20, Discussion of procedures to consider new participant eligibility for the fund, to be placed on the next agenda. Secretary Nielson requested moving agenda items 4 and 5 ahead, to follow the monitor's presentation, which was item 2. MOTION: Boardmember Sabin made a motion to approve the agenda as amended. Boardmember Nielson seconded the motion, which carried by unanimous 3-0 vote. III. APPROVAL OF MINUTES 1. MOTION: Boardmember Sabin made a motion to approve the minutes of the November 6, 2006 quarterly meeting. Secretary Nielson seconded the motion, which carried by unanimous 3-0 vote. • BOARD OF TRUSTEES • TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES FEBRUARY 5, 200 PAGE 2 IV. PRESENTATIONS 2. Presentation by Monitor Joe Bogdahn Joe Bogdahn, Bogdahn Consulting, referred to his presentation booklet, comparing the fund to the benchmark S&P 500, and reported a positive cash flow. The first quarter return was 3.46%; Mr. Bogdahn stated he was looking to get to 8% by the end of the yeaz. In reviewing equities, Mr. Bogdahn advised the fund was slightly ahead of the index for the quarter. Rockwood was in the process of transitioning to larger core stocks; and had outperformed the index over the years by transitioning to different types of stocks in cycles. Rockwood's performance had been under the desired returns over the past year, but Mr. Bogdahn expressed confidence they would perform better as the transitioning was completed. Boardmember Sabin asked about the investment policy shown on Mr. Bogdahn's report as 55/30/10, while Rockwood showed 60/40, which Attorney Jensen confirmed was correct, and Mr. Bogdahn indicated he would get that changed. Boazdmember Sabin advised he had • commented at several meetings that the monitor and the investment manager should be on the same page, and requested consistency by the next meeting. Boazdmember Sabin requested Mr. Bogdahn comment on the percentile as it related to the performance of the fund. Mr. Bogdahn referred to page 7 of his report, explaining the universe figures were incorrect and a supplemental report would be prepared. The Mobius universe had been sold and since then the figures had been incorrect each time they first came out. Mr. Bogdahn advised that at the previous meeting during discussion of the investment returns, it had been clarified that four quarters in a row of low returns would trigger looking for a new investment manager; there had been three out of four quarters to date. Boazdmember Sabin recalled discussion regarding four quarters which had been below the 50th percentile, which he believed was what was shown on page 7 for fixed income. Mr. Bogdahn explained the universe figures were incorrect and corrected figures had been sent out in an email and would be provided to the board, and the current fourth quarter had been above the 50th percentile, so there had not been four quarters in a row lower than the 50th percentile. Boazdmember Sabin questioned when the board could expect to get the correct information, since they were meeting today without correct information. Mr. Bogdahn advised the corrected information would be sent out on Wednesday. The Recording Secretary left the meeting to print the email that Mr. Bogdahn had sent with corrected universe figures for the current quarter; Mr. • Bogdahn advised he would prepare a memo containing four quarters, and explained the current difficulties with the universe data. The issue on the bond side was that • BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES FEBRUARY 5, 200 PAGE 3 --------------------------------------------------------------------------------- the universe should be comprised of other managers that should have an investment mandate similar to this fund, but they did not break it out that way. Geraldine Genco, a member of the audience, expressed her opinion that Mr. Bogdahn was not using correct comparison data, and following discussion, asked Attorney Jensen to explain the board's policy. Attorney Jensen read from the Investment policy that the performance of the total fund will be measured for rolling 3 and 5 year periods. These periods are considered sufficient to accommodate the market cycles. The performance of this portfolio will be compared to the return of a portfolio comprised of 60% Standard & Poor's S00 stock index and 40% Lehman Brothers Intermediate Government /Credit Bond Index. Dn a relative basis, it is expected that the money manager's performance with regard to the total return of combined equity, fixed income, and cash portfolio, will be in the top 40% of the Mobius Universe over 3 to S year periods. On an absolute basis, it is expected that total return of the combined equity, fixed income, and cash portfolio, will equal or exceed the actuarial earnings assumption (8%), and equal or exceed the Consumer Price Index plus 3% over three • to fave year periods. Ms. Genco commented that therefore the board should be receiving performance returns versus indexes or qualifications every quarter. Mr. Bogdahn referred to page 18 of his report and explained how to read the quarterly comparison analysis. Boardmember Sabin commented during the 2006 calendar year the performance was 8.63% but it was not quite there during the fiscal year, and they needed to compare the percentile performance to the universe to know whether or not the proper return was being achieved. Mr. Bogdahn indicated the bond universe needed to be modified to be representative of the index, and confirmed that the corrected information that was to be provided later in the week was that one of the past four quarters was better than 50%. Mr. Bogdahn discussed red flags that could trigger looking for another investment manager, the number of quarters that were included, and noted that calendar year versus fiscal year periods made a difference. The investment manager was still in the process of transitioning to larger cap stocks and time was needed to allow that transition to be completed and to see the results. Mr. Bogdahn explained other graphs shown in his report, and discussed breaking out Rockwood so the board could look at total fund performance and also since Rockwood had been the investment manager; and advised the reports would be modified to show Rockwood since their inception. Mr. Bogdahn answered additional questions from the board, and explained that he would be making a presentation to employees later that day to explain the plan and answer any of their questions. • Boardmember Sabin confirmed with Mr. Bogdahn that the investment manager • BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES FEBRUARY g, 200 PAGE 4 --------------------------------------------------------------------------------- would be present at the next regular quarterly board meeting and expressed his opinion that this board should have specific questions for him. Geraldine Genco suggested he distribute a copy of his latest Form ADV and his disclosure reporting page to say if there was any litigation. Mr. Bogdahn advised he would ask Mr. Holtgrieve to send those out. V. UNFINISHED BUSINESS 3. Discussion/Investment Seminar -Comparisons to other benchmark indexes Benchmarks were discussed. Mr. Bogdahn expressed his opinion the S&P 500 would be more broad based and it would be better to use them than change the index each time. Mr. Nielson suggested comparison with Russe113000, as another benchmark for additional information. Boardmember Sabin expressed his opinion that would be all right so long as that information did not get into the report so that the board lost • focus on the S&P, which was the benchmark according to policy, and he wanted both the monitor and the investment manager to be on the same page. Mr. Nielson indicated this could be revisited when the investment manager was present. 4. Discussion of investment manager performance Boardmember Nielson requested this item be delayed until the next meeting when the investment manager would be present. 5. Status Report Regarding Jupiter Inlet Colony Compliance With House Bi111159 Permitting Fire Departments Who Provide All Of The Fire Protection Services To Another Municipality Through An Interlocal Agreement To Collect Premium Taz From The Other Municipality Chair Giblin announced the meeting scheduled for tonight had been moved to noon, and Fire Chief Weinand was attending on behalf of the firefighters. Attorney Jensen advised Chief Weinand had corresponded with her by email and she had sent him the documents to date regarding this matter. VI. STANDING REPORTS (INFORMATION ITEMS) 6. New applicants for participation in Pension Plan • Adam Evans -Firefighter -Date of employment 11/28/06 • BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES FEBRUARY g, 200 PAGE 5 John Kostyo -Firefighter -Date of Employment 11 /29/06 Michael C. Morrill -Police Officer - Re-employment 1/3/07 Attorney Jensen commented that Lt. Morrell had been re-employed and had taken a refund of his contribution, and it was her understanding that he did meet the requirements of the Florida Retirement System to now enroll in the Village's retirement program, and he was fully retired from the Florida Retirement System and was receiving those benefits. 7. Beneficiary and Name Change Keith Smolen -change of beneficiary 8. Request for withdrawal of contributions (employees terminating employment with Village of Tequesta) - .Ratification of withdrawals made since the last • meeting on 2 signature basis: Robert Neier, Police Officer: 12/11/06 Gross $2,048.78; Net Payout $1,639.02 Michael C. Morrill, Police Officer: 12/14/06 Gross $5,213.43; Net Payout $4,170.74 Boardmember Sabin noted Robert Neier, who had been a member of this board, was no longer employed by the Village and asked about the vacant firefighter position. Pension Coordinator McWilliams advised the firefighters were having trouble finding someone to serve on the board. MOTION: Boardmember Sabin made a motion to ratify the withdrawals under item 8. Chair Giblin seconded the motion, which carried by unanimous 3-0 vote. 9. Budget Report Accounting Clerk Monica Rahim introduced the budget report and asked for any questions. Attorney Jensen commented the expenditures were shown, but not the budgeted amounts, and the board had set up a budget last year. Chair Giblin agreed that the board had set up a budget. Boardmember Sabin clarified that this . went back to a discussion by the board a couple of years earlier on whether they should change actuaries or have special audits and they were trying to get an • BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES FEBRUARY 5, 200 PAGE 6 understanding of what their total expenditures were for the plan during a fiscal year, so they had asked for some kind of budget to be set up for the upcoming fiscal year, and they did receive a budget, and monitored it during the year as they were trying to make decisions on expenses because they were trying to make sure they managed the expenses of the plan reasonably, which he believed they were. Boardmember Sabin commented he did not know how important the budget was, since at this point most of the items were pretty much routine; but if the board decided to have special projects or something where the expenses were different, he personally would ask to see some type of budget or plan to see what the expenses were going to be in the plan. He did not know the feelings of the other boazd members, but if it were a burden or a challenge because of other things in the financial department then he did not have a problem not having it at this point in time-this went back a couple of years ago. Chair Giblin commented he had noticed there were no budget figures in the report., and asked Boardmember Nielson for his thoughts on the matter. • Boazdmember Nielson commented the advantage of having a budget was the board could authorize appropriations, and the board had agreed the Clerk could approve payment for invoices that were already authorized expenditures so that approval of the payment was sort of secondary to the authorization-that was the benefit of having the budget. Chair Giblin asked if the board wanted the figures plugged back in or if they wanted to come up with figures, or if they were comfortable with the report as it was. Boardmember Sabin expressed his opinion that as a minimum it would be helpful if the Finance Department of the Village wou}d at least let the board know, because they were doing it for a period of time and now it was not being done, if maybe there was a reason, or if there was another way of handling it; he was not sure why they were doing it and now were not doing it, and asked Ms. Rahim if she would find out. Chair Giblin commented it would be good to compare this year's figures with last year. Boazdmember Nielson suggested two year's comparison, noted a budget was a planning tool and there would not be a }ot that would change but the board would benefit from having the budget; and tracking it should not be a big burden because basically the items were going to stay the same unless there was something unusual, and that could be planned for. Boardmember Nielson asked Ms. Rahim to get Finance Director Forsythe's thoughts on this. There were no further questions regarding the budget report. • VII. FINANCIAL REPORTS BOARD OF TRUSTEES • TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES FEBRUARY 5, 200 PAGE ~ 10. Account Statements -There were no questions on the statements from Salem Trust. 11. Accept Investment Manager Report from Rockwood Capital Advisors- Boardmember Nielson confirmed with Mr. Bogdahn that Rockwood was using two benchmarks-S&P 5000 and Russell 3000, and the primary benchmark was the S&P. MOTION: Boardmember Nielson moved approval of the report from Rockwood Capital Advisors. Boardmember Sabin seconded the motion, which carried by unanimous 3-0 vote. VIII. PAYMENTS TO BE RATIFIED (PAYMENTS MADE SINCE LAST MEETING) • 12. Hanson, Perry & Jensen, P.A. Services through November 15, 2006 IX. PAYMENTS TO BE REVIEWED AND APPROVED 13. Business Services Connection - 11/6/06 meeting and minutes 14. Hanson, Perry & Jensen, P.A. Services through December 15, 2006 15. Bogdahn Consulting, LLC Fee for Quarter 10/01/06 -12/31/06 16. Salem Trust Fee Advice for Quarter 12/31/06 17. Rockwood Capital Advisors Management Fee for quarter ended 12/31/06 18. Due to General Fund for Acordia Insurance for Crime Policy #CCPOOI750012 • Fire $ 164.25 Police $ 164.25 $ 787.00 $ 257.7b $ 475.90 $ 2,000.00 $ 767.75 $4,681.60 BOARD OF TRUSTEES • TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES FEBRUARY 5, 200'] PAGE 8 MOTION: Boardmember Sabin made a motion to approve the payments under VIII and IX. Boardmember Nielson seconded the motion, which carried by unanimous 3-0 vote. X. NEVI BUSINESS 19. Report By HR Director Merlene Reid Regarding Pension Status of Michael Morrill Human Resources Director Reid reported Officer Mike Morrell had retired from the FRS and subsequently joined the Village's pension plan. Notice had been received from FRS that Mike Morrell and two other Village employees did not meet the definition of retirement as indicated in the statute. In November, FRS offered Mr. Morrell and the other two employees some options, which included terminating from • FRS. Mr. Morrell had resigned on November 27 and opted to have his contributions refunded, which he took. 'The termination rule stated you must sever employment for 30 days, which was the only issue the FRS had. He thought he had terminated from FRS but had not. He had subsequently been re-hired by the Village and re joined this plan. Attorney Jensen advised that the Village had been a part of the Florida Retirement System, and then decided to create their own pension plan, and gave employees the choice to stay in FRS or move to the Village's new plan; all new employees came into the new retirement plan. Ms. Reid explained that in October 2D05, 1VIr. ~vlorrell opted to retire, not being properly advised that retiring meant severing employment for a calendar month. Geraldine Genco, a member of the audience, expressed her opinion Mr. Morrell should have gone into the drop plan- hismistake had been actually taking retirement benefits without properly terminating. Attorney Jensen advised that the agenda item withdrawn for today was to develop some new procedures to deal with such a circumstance so the board could be assured this would not happen again, but the Florida Retirement System had not provided the information needed in time for this meeting. It was hoped that by the next meeting procedures would have been developed to deal with a situation like that of Mr. Morrell; to assure he had met the termination requirements of FRS and was eligible to come into the Village's plan. Ms. Genco re-stated her comments regarding the drop plan and recalled that Attorney Jensen had provided a letter stating if the employees had properly terminated they were eligible to join the Village's plan, but • no one ever followed up to see if they had properly terminated. Attorney Jensen advised that in the future there might be some kind of statement that employees BOARD OF TRUSTEES • TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES FEBRUARY 5, 200'] PAGE 9 --------------------------------------------------------------------------------- would have to sign stating they had properly terminated, but those procedures had yet to be developed. Ms. Genco discussed Village policy. It was clarified that contributions made by Mr. Morrell into this plan had been refunded, and which the board had approved. Regarding what would happen with the Village's contributions, Attorney Jensen advised that Finance Department had asked this matter be placed on hold until information had been received from FRS, and the actuarial impact had not yet been determined. It was clarified that Village contributions were a percentage of payroll. Attorney Jensen indicated Steve Palmquist would need to look at that when the percentage had been determined. Mr. Nielson commented two documents, one for the Village and one for Salem Trust, had been required to be signed when employees terminated, and requested looking at those to see if they could be incorporated into one document in the future, because he was hesitant to sign two authorizations. Discussion ensued. Chair Giblin suggested sending the original to Salem Trust and keeping a copy for • the Village. Boardmember Nielson commented the Village Finance Department should be able to have a copy of what Salem Trust required, and he was concerned about signing two separate documents to authorize one payout when one form should suffice. 21. Consideration of Sending a Member to FPPTA Conference -June 24-27, 2007 in Naples, Florida Attorney Jensen advised the FPPTA held two schools, one in the spring and one in the fall, and a summer conference each year, and the difference was the schools were for education and the conference more for networking. The Police and Firefighters Pension Trustee School was held in the spring and fall, and in March it would be in Tallahassee, and they gave continuing education credits. MOTION: Boardmember Sabin made a motion to approve Boardmember Nielson attend the Police and Firefighters Pension Trustee School in March if his schedule permitted. Chair Giblin seconded the motion, which carried by unanimous 3-0 vote. 22. Adjustment of payout made to David Cooper to be reimbursed to General Employees pension fund • Attorney Jensen advised that the definition of "police officer" was any person BOARD OF TRUSTEES • TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES FEBRUARY 5, 207 PAGE io elected, appointed, or employed full time by the Village who is certified, or required to be certified as a law enforcement officer. Mr. Cooper was working for the Village and being put through the academy. She had had other pension funds who included that certification time, and that time to be certif ed was allowed to be included, so that was time that could be included as a member of this Public Safety Officers pension fund. The fund might not need to pay any money out- just collect from Mr. Cooper any money he should not have received. Ms. Rahim advised that Mr. Cooper received the correct amount-that was not the problem. The problem was that contributions had gone into the Public Safety Officers' fund and should have gone into the General Employees' pension fund. Boardmember Sabin commented that was on calculations made by Finance Department personnel Michelle Gload, but Attorney Jensen was saying Mr. Cooper could have been in the Public Safety Officers' fund at that time; the broader question was whether the Village wanted to set precedent that when a police officer was hired as a trainee to not to allow them into the plan. In this case, the employee was a • General Employee, and if this board decided he was not in this plan yet, at least he was covered under the General plan; but he would have no benefit. Therefore, the question was why would the Village want an employee not to have the benefit of a pension plan if they had hired them into the department as a trainee subject to certification. Geraldine Genco commented it was her understanding when he switched from code enforcement, which was a General Employee position, to Public Safety, he came into the public safety plan. Boardmember Sabin commented he understood this was just a matter of getting the money from one benefit plan to another. Attorney Jensen commented Mr. Sabin's analysis was correct that an employee could have no benefit if, for example, the Village hired a police chief not certified in Florida and did not put him into the pension plan until he was certified, he would not take the job-he would go to another city. Boardmember Sabin commented the board must be careful of setting precedent, although in this case it was not really the Public Safety Officers' plan, it was the General Employees plan that needed to get this clarified. Attorney Jensen stated it was her opinion he should be part of this pension plan-he was hired as a police officer and the Village was saying he would be a police officer except for the fact he had to be certified, and the Village was paying for him to be certified. His job was to go to school to become certified. Attorney 3ensen advised it appeared he had been overpaid by $407.88; the memo indicated he had been involved in the Public Safety Officers pension plan, then Human Resources or somebody else had retracted the enrollment in April 2006; he was re-enrolled in the General • Employees plan; and now General Employees had refunded him everything including the $407.88 that should have been in the Public Safety plan. The • BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES FEBRUARY 5, 200 PAGE 11 memo stated, "Contributions were made to the Village of Tequesta Public Safety employees pension plan fund in error in the amount of $407.88, These contributions should have been made to the Village of Tequesta General employees pension fund. In order to correct this, the Public Safety employees pension funds need to reimburse the General Employees pension fund $407.88. Note: David Cooper's contributions have already been reimbursed to him from the General Employees pension fund and no more is due back to Mr. Cooper." Attorney Jensen stated it was her opinion Mr. Cooper should pay back all the contributions he had made including the $407.88 he had overpaid, and then he would just get his service from the time he enrolled--which was March, 2006. Boardmember Sabin expressed his opinion that at the moment Mr. Cooper was hired by the police department he was no longer a General Employee and either he would go without benefit of coverage until certified, which Mr. Sabin felt was a mistake from an employee relations point of view; or from that moment he was entitled to the benefit plan coverage as a member of the Public Safety Officers • pension plan, and therefore the contribution should stay in this plan. Attorney Jensen stated the follow-up question was since there is an employee training program, how many other people fell into this category. Boardmember Sabin agreed that was important to know before reaching aconclusion-whether there had been any police or firefighter new hire who had had to delay their eligibility for pension plan benefits for any reason. Discussion ensued. Attorney Jensen suggested the board table this item and she would get back to the Village to see if aconclusion could be reached, and to explain to them the issue that they could have employees working for the Village who were not covered. Boardmember Sabin commented he knew this was a small Village and he did not want to offend anyone, but he felt these were issues that the Human Resources Department and other departments of the Village should understand, and this board should not be trying to interpret after the fact-the departments, the Village Council, and this board should all understand. MOTION: Boardmember Sabin made a motion to table this item, and discuss it at a later time if this board needed to be involved. Boardmember Nielson seconded the motion, which carried by unanimous 3-0 vote. XI. ANY OTHER MATTERS • Boardmember Nielson asked to discuss commingled funds and if there would be any • BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES FEBRUARY 5, 200 PAGE 12 advantage to having a commingled fund. It was reported the General Employees were in a commingled fund for a short period but the Finance Department had been uncomfortable with that. Geraldine Genco advised there had been a ruling in the 1970's that pension funds could not be placed into commingled funds, which she believed was why the Finance Department had been uncomfortable. Attorney Jensen presented afollow-up on the Pension Protection Act of 2006. She had provided the portion of the act that applied to public sector pension plans-one item that applied was that an individual public safety officer who retired at age 50 and took his pension funds out in a lump sum, was no longer subject to a 10% early retirement penalty. Also, public safety officers who retired from the Village were now entitled to a $3,000 exclusion from their income as a deduction from their pension check. The IRS had determined the $3,000 benefit did not flow to a spouse if the retiree died; also self-insured programs were not covered under the $3,000 exclusion, which did not apply to the Village since their insurance was with Cigna. Attorney Jensen advised she would be • happy to provide information regarding the Act if anyone was interested. Attorney Jensen advised there was a provision in the existing Travel and Expense policy on page 2 that the members' reimbursement for mileage was that they would be entitled to a certain rate or the IRS standard mileage rate, and she was proposing to say just the IRS standard mileage rate. The IRS had recently issued a notice raising their standard mileage rate to 48.5 cents per mile from 44 cents. The other revisions to the policy were raising the food reimbursement for lunch from $9.00 to $12.00 and for dinner from $15.00 to $18.00; and deleting the provision that a Certified Public Accountant shall audit trustee expenses annually, since that was done by the Village auditors. MOTION: Boardmember Sabin made a motion to approved the revised Travel and Expense Policy per Attorney Jensen's memo dated February 5, 2007. Boardmember Nielson seconded the motion, which carried by unanimous 3-0 vote. XII. COMMUNICATIONS FROM CITIZENS There were no communications from citizens. XIII. ADJOURNMENT • There being no further business to come before the board, the meeting was adjourned at BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES FEBRUARY 5, 200 PAGE i3 --------------------------------------------------------------------------------- 12:30 p.m. Respectfully submitted, `~ Betty Laur Recording Secretary