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HomeMy WebLinkAboutDocumentation_Pension General_Tab 02_08/04/2008SYNOPSIS OF GENERAL EMPLOYEES PENSION BOARD MEETING 5/5/08: Michael R. Couzzo, Jr. was sworn in as a new member of the Board. 2. Michael D. Rhodes was elected Chair; Carl Hansen was elected Secretary. 3. Meeting minutes of February 4, 2008 were approved as submitted. 4. Steve Palmquist of Gabriel, Roeder and Smith reviewed the actuarial evaluation report dated October 1, 2007 and reported the plan was in good shape. 5. Mr. Palmquist advised the mortality rates would have to be changed, which would probably increase cost of the plan around 3% of payroll, and suggested this be done as soon as possible instead of waiting until forced by the State. Consensus of the Board was to wait to increase the mortality rates. 6. During discussion of the FRS plan compared to the Village's plan, Board Member Couzzo suggested providing COLA as a benefit. 7. The Board voted to accept the Actuarial Evaluation report dated October 1st, 2007. 8. Finance Director Forsythe expressed her concern that the Village contribution would be too high in the future; Mr. Palmquist advised she could use a formula to put in extra money if the Village Council approved or asset smoothing could be used. 9. Mr. Palmquist discussed asset smoothing to mitigate swings in the amount the Village must contribute to the plan, and reported the Public Safety Officers' Board had voted to authorize Mr. Palmquist to provide information to the board regarding asset smoothing on a 5-year basis. Mr. Palmquist suggested this board request a copy of that information in order to avoid the cost. The Board voted to table discussion of asset smoothing to the next meeting after receipt of the information. 10. No representative from Dana Investment Advisors was present to review their quarterly report; attendance semiannually is required by their contract. The Board requested that Dave West of Bogdahn Consulting express their concern regarding Dana not attending today and ask them to attend the next meeting. Pension Coordinator McWilliams advised her office would also contact them. 11. Dave West of Bogdahn Consulting, LLC presented their quarterly report SYNOPSIS OF GENERAL EMPLOYEES PENSION BOARD MEETING 5/5/08 2 for the period ended March 31, 2008, which was in a new format. 12. The Board requested future reports contain an international component. Mr. West advised international needed to be broken out of domestic stock to track it by establishing a separate account with the custodian so his company could monitor the international portion separately. Also, the investment policy statement did not currently contain an international component and he recommended 10% international equity, which would mean the policy would go from 60% S&P 500 to 50% S8~P 500; 10% MSCI EAFE, and the balance in bonds. Attorney Jensen suggested just adding a line item of breakdown for information to avoid incurring the $2,500 cost. Mr. West clarified this would be 85% S&P 500 and 15% MSCI EAFE to make up total equity, and they would need to pass on their system cost., and the investment policy would need to be updated. 13. Mr. West advised his company would present a new fee proposal at the next meeting. 14. For the next meeting, Mr. West stated he would forward a draft updated investment policy statement changing total index benchmark to read 50% S&P 500, 10% MSCI EAFE, with balance in current fixed income index and the second change to be in regard to measurement of total equity to read 85% S&P 500, 15% MSCI EAFE fund. 15. Mr. West was to request that Dana attend the next meeting and that they include in their quarterly report a history of total cost, total sales, and market value; not a list of each sale. 16. Mr. West was to request Dana address a solution to bond performance at the next meeting; Bogdahn's solution was for Dana to index the portfolio for a lesser fee. Mr. West advised Attorney Jensen's suggestion to broaden the ordinance language would be the best solution. 17. Before Attorney Jensen and Mr. West crafted broader language for the ordinance, Mr. West was requested to provide a presentation at the next meeting regarding types of products being discussed as a solution to bond performance to make it cost effective, and discussion of costs and returns. Mr. West was requested to provide this in time to be distributed in the meeting packets. 18. Mr. West was requested to ask Dana to provide their information regarding feasibility and cost of indexing the bond portfolio two weeks from today's meeting. Board Member Mangum requested to stay away from derivatives and auction rated bonds as they were not worth the risk. The Board voted to wait until the regular August meeting to discuss this SYNOPSIS OF GENERAL EMPLOYEES PENSION BOARD MEETING 5/5/08 3 matter, and approved Mr. West meeting with Dana as discussed and having necessary correspondence with Attorney Jensen . 19. The Board voted to accept the quarterly report from Bogdahn Consulting LLC. 20. The Board voted to allow the Finance Director, JoAnn Forsythe or her successor, and her designee to have online access to the Sun American Bank Pension Trust Checking Account for reconciliation purposes. 21. The Board voted to execute the necessary documents to update the signers on the Pension Trust Checking Account at Sun American Bank. 22. Pension Coordinator Lori McWilliams reported the Village Council had approved an ordinance that was now in effect to allow residents to fill employee seats on the General Employees Pension Board if no employees wished to serve. 23. HR Director Merlene Reid presented responses from employees regarding raising the multiplier. The Board voted to place on the meeting agenda for August 2008 a comparison between a 2.2% multiplier and a 3% COLA. 24. The following items were approved on the Consent Agenda: Ratification Of Invoices Paid Since Last Quarterly Meeting: • Business Services Connection, Inc. - Recording and Minutes of 2.4.08 meeting $ 271.84 • Hanson, Perry 8~ Jensen, P.A. $ 587.01 Payments To Be Reviewed And Approved: • Hanson, Perry & Jensen, P.A. Through 4/15/08 $ 725.35 • Bogdahn Consulting, LLC $ 1,125.00 • Dana Investment Advisors $ 1,406.57 • Gabriel Roeder 8~ Smith Company $ 4,090.00 10/1/07 Actuarial Report/ Preparation of impact statement/ Attend Village Council meeting Approval of new applicants for participation in Pension Plan: R. Bradford Fitzer Evidence Custodian Hired 2/13/08 Approval of withdrawal of contributions: Cindy Flaskerud 3/3/08 Gross $10,353.95; Net $8,283.16 Statement of Activities END OF CONSENT AGENDA SYNOPSIS OF GENERAL EMPLOYEES PENSION BOARD MEETING 5/5/08 4 25. Finance Director Forsythe indicated she would put together a budget for the next quarterly meeting and provide a 2-year history. 26. The Board voted to amend the budget to add $500 to the budgeted amount for Recording Secretary. 27. The Board approved paying invoices from Scripps newspapers between meetings. 28. Pension Coordinator Lori McWilliams advised the Village Council had adopted summary minutes for all boards and committees; the board would continue to receive the synopsis of each meeting, and audio would be available on the website. 29. The Board voted approval to send Board Member Deanna Mayo to FPPTA Trustee School October 5-8, 2008 30. The Board voted approval to split the cost with Public Safety Officers' Pension Fund to send Pension Coordinator Lori McWilliams to FPPTA Trustee School October 5-8, 2008. 31. The Board approved increasing Attorney Jensen's fee from $170 per hour to $200 per hour; to discuss COLA annually, and only to pay travel time for long distances, not travel to meetings of the Board. 32. Attorney Jensen advised Board Members to make sure they had received Form 1 and to send it via registered mail or by a way to verify it was delivered. END OF SYNOPSIS TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND MINUTES OF REGULAR QUARTERLY BOARD OF TRUSTEES MEETING May 5, 2008 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 Monday, May 5, 2008. The meeting was called to order at 10:55 a.m. by Secretary Archie Mangum as Acting Chair. A roll call was taken by Betty Laur, Recording Secretary. Board members in attendance at the meeting were:. Secretary Archie C. Mangum, Jr., Board Member Carl Hansen, Board Member Michael D. Rhodes, and Board Member Michael R. Couzzo, Jr. Board Member Deanna Mayo was absent. Also in attendance were Monitoring Consultant Dave West from Bogdahn Consulting, LLC, Actuary Steve Palmquist of Gabriel, Roeder and Smith, Attorney Bonni Jensen, Pension Coordinator Lori McWilliams, Finance Director JoAnn Forsythe, Senior Accountant Monica Rahim, and HR Director Merlene Reid. The Investment Consultant representative for Dana Investment Advisors was absent. II. Approval of Agenda MOTION: Board Member Hansen made a motion to approve the agenda as amended by addition under Any Other Matters of item 21 -consideration of increasing attorney's fees, and item 22 -Form 1. Board Member Couzzo seconded the motion, which carried by unanimous 4-0 vote. III. SWEARING IN 1. New Board Member Michael R. Couzzo Jr. was sworn in by Village Clerk Lori McWilliams IV. ELECTION OF CHAIR AND SECRETARY MOTION: Board Member Hansen nominated Michael D. Rhodes as Chair; Boardmember Couzzo seconded. Motion carried by unanimous 4-0 vote. BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES May 5, 2008 PAGE 2 Chair Rhodes chaired the meeting from this point forward. MOTION: Board Member Mangum nominated Carl Hansen as Secretary; seconded by Board Member Couzzo. Motion carried by unanimous 4-0 vote. V. APPROVAL OF MINUTES 2. Meeting Minutes of February 4, 2008 Quarterly Meeting MOTION: Secretary Hansen moved to approve the Tequesta General Employees' Pension Trust Fund Board Of Trustees Quarterly Meeting Minutes for February 4„ 2008 as submitted. Board Member Mangum seconded the motion, which carried by unanimous 4-0 vote. VI. PRESENTATIONS 3. Presentation by Actuary -10/1/07 Actuarial Evaluation Steve Palmquist, Gabriel, Roeder and Smith Company, provided the report, noting an evaluation was done every other year, and stated there was no issue about the financial strength of this plan as it was in very good shape. Consensus of the Board was to wait to increase mortality rates. Mr. Palmquist advised the Public Safety Officers Pension Board had requested information on asset smoothing on a 5-year basis, and this board could request a copy. MOTION: Board Member Mangum moved to accept the actuarial valuation report dated October 1, 2007. Secretary Hansen seconded the motion, which carried by unanimous 4-0 vote. Consensus of the Board was to table discussion of asset smoothing to the next meeting, after receipt of Mr. Palmquist's information. BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES May 5, 2008 PAGE 3 4. Presentation by Investment Manager No representative from Dana Investment Advisors was present; Dave West of Bogdahn Consulting reviewed the Dana Investment Advisors quarterly report. 5. Presentation By Monitor David West, Bogdahn Consulting, LLC reviewed their quarterly report and attribution report. It was requested that in the future the attribution report be provided in time to go into the meeting packets. MOTION: Secretary Hansen made a motion to wait until the next quarterly meeting in August to hear a presentation from Dana Investment Advisors on bond performance and an indexing proposal; before that meeting Mr. West was to meet with Dana Investment Advisors and correspondence with Attorney Jensen would take place. Motion was seconded by Board Member Mangum and carried by unanimous 4-0 vote. MOTION: Secretary Hansen made a motion to approve the presentation by Mr. West of Bogdahn Consulting LLC and that they be open to suggestions made at this meeting, stating the Board looked forward to improvements coming from that. Motion was seconded by Board Member Mangum and carried by unanimous 4-0 vote. VII. UNFINISHED BUSINESS 6. Report by Board Member Mangum regarding his meeting with Sun American Bank Branch Manager Patrick Thompson regarding allowing Finance Department representative online access to General Employees Pension Trust Checking Account. MOTION: Board Member Mangum moved to allow Finance Director JoAnn Forsythe or her successor and the Finance Director's designee online access to view the information in the General Employees Pension Trust checking BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES May 5, 2008 PAGE 4 account. Motion was seconded by Secretary Hansen and carried by unanimous 4-0 vote. MOTION: Board Member Mangum moved that the necessary documents be executed to update the signers on the General Employees Pension Trust checking account at Sun American Bank. Motion was seconded by Secretary Hansen and carried by unanimous 4-0 vote. 7. Status Report on paying interest on employee contributions Pension Coordinator Lori McWilliams reported the union had waived their right to negotiate this item, and first reading of the ordinance prepared by Attorney Jensen was on the agenda for the next Village Council meeting; second reading would be in June and the ordinance would become effective upon passage with no further action by this Board. 8. Update on Council action approving placing a resident trustee in a vacant employee position when necessary Pension Coordinator Lori McWilliams advised this item had been put forth because there had been two vacant employee positions that had been very hard to fill; those positions had now been filled by employees; however, if in the future no employees were willing to serve, residents would be able to fill a vacant employee board position. 9. Clarification of Board's position on proceeding with raising the multiplier Human Resources Director Merlene Reid presented the employees' response on raising the multiplier. MOTION: Board Member Couzzo moved to place on the meeting agenda for August 2008 a comparison between a 2.2% multiplier and a 3% COLA. Secretary Hansen seconded the motion, which carried by unanimous 4-0 vote. VIII. CONSENT AGENDA BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES May 5, 2008 PAGE 5 MOTION: Secretary Hansen made a motion to approve the consent agenda. Board Member Couzzo seconded the motion, which carried by unanimous 4-0 vote. Therefore the following items were approved: 10. Ratification Of Invoices Paid Since Last Quarterly Meeting: 11. • Business Services Connection, Inc. - Recording and Minutes of 2.4.08 meeting • Hanson, Perry & Jensen, P.A. Payments To Be Reviewed And Approved: • Hanson, Perry 8~ Jensen, P.A. Through 4/15/08 Bogdahn Consulting, LLC • Dana Investment Advisors • Gabriel Roeder & Smith Company 10/1 /07 Actuarial Report/ Preparation of impact statement/ Attend Village Council meeting $ 271.84 $ 587.01 $ 725.35 $ 1,125.00 $ 1,406.57 $ 4,090.00 12. 13. Approval of new applicants for participation in Pension Plan: R. Bradford Fitzer Evidence Custodian Hired 2/13/08 Approval of withdrawal of contributions: Cindy Flaskerud 3/3/08 Gross $10,353.95; Net $8,283.16 14. Statement of Activities END OF CONSENT AGENDA IX. BUDGET REPORT 15. Review of Quarterly Budget Report Finance Director Forsythe indicated she would put together a budget for the next quarterly meeting and provide a 2-year history. MOTION: Secretary Hansen made a motion to amend the budget to add $500 to the BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES May 5, 2008 PAGE 6 budgeted amount for Recording Secretary. Board Member Mangum seconded the motion, which carried by unanimous 4-0 vote. X. NEW BUSINESS 16. Request Board approval to pay Scripps invoices for ads between meetings MOTION: Board Member Couzzo made a motion to approve paying invoices from Scripps newspapers between meetings. Secretary Hansen seconded the motion, which carried by unanimous 4-0 vote. 17. Summary Minutes Pension Coordinator Lori McWilliams advised the Village Council had adopted summary minutes for all boards and committees; the board would continue to receive the synopsis of each meeting, and audio would be available on the website. 18. Request Board approval to send Board Member Deanna Mayo to FPPTA Trustee School October 5-8, 2008 MOTION: Board Member Couzzo made a motion to approve sending Board Member Denna Mayo to FPPTA Trustee School October 5-8, 2008. Board Member Mangum seconded the motion, which carried by unanimous 4-0 vote. 19. Request Board approval to split cost with Public Safety Officers' Pension Fund to send Pension Coordinator Lori McWilliams to FPPTA Trustee School October 5-8, 2008 MOTION: Board Member Couzzo made a motion to split the cost with Public Safety Officers' Pension Fund to send Pension Coordinator Lori McWilliams to FPPTA Trustee School October 5-8, 2008. Board Member Mangum seconded the motion, which carried by unanimous 4-0 vote. XI. ANY OTHER MATTERS BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES May 5, 2008 PAGE 7 20. Consideration of increasing Attorney Jensen's fee MOTION: Board Member Couzzo made a motion to approve increasing Attorney Jensen's fee from $170 per hour to $200 per hour; to discuss COLA annually, and only to pay travel time for long distances, not travel to meetings of the Board. Secretary Hansen seconded the motion, which carried by unanimous 4-0 vote. 21. Form 1 Attorney Jensen advised Board Members to make sure they had received Form 1 and to send it via registered mail or by a way to verify it was delivered. XII. COMMUNICATIONS FROM CITIZENS There was no communication from citizens. XIII. ADJOURNMENT Secretary Hansen moved, seconded by Board Member Couzzo, to adjourn the meeting at 1:49 p.m. Respectfully submitted, t,. Betty L'aur Recording Secretary