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HomeMy WebLinkAboutMinutes Police Pension 101813City of Palm Beach Gardens Police Officers' Pension Fund Minutes of the Meeting Held October 18, 2013 The regular meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers' Pension Fund was called to order at 9:07 AM by Jay Spencer in the Council Chambers at the Palm Beach Gardens City Hall at 10500 North Military Trail, Palm Beach Gardens, Florida. TRUSTEES PRESENT Jay Spencer, Chairman David Pierson, Secretary Brad Seidensticker, Trustee Greg Mull, Trustee Marc Glass, Trustee INVESTMENT MANAGER REPORT OTHERS PRESENT Audrey Ross (Resource Centers) Bonni Jensen (Law Offices of Perry & Jensen) Donna Kramer (PBG Clerk's Office) Grant McMurry (ICC Capital) John McCann (Thistle Asset Consulting) ICC Capital -Presented by Grant McMurry Mr. McMcurry discussed the current market environment and stated that during the quarter it was very volatile until the end of September. He briefly discussed the Government shut down which ironically was beneficial to the market place. On the fixed income side the total fund net of fees was behind the index for the quarter ending September 30, 2013 at .46% versus .57%. For the fiscal year ending September 30, 2013 they were in the same position but also negative at -2.54% versus -1.68%. The equity portfolio did better as they were up for the quarter at 7.23% but still behind the index at 8.11%, but for the fiscal year they did great at 24.96% versus 19.27%. Mr. McMurry explained that the risk still remains in Treasuries and ICC has transitioned more of their portfolio into Corporates, which also got them a better yield. He noted that there is still a lot of uncertainty in the bond market but ICC is committed to their approach of trying to find high quality Corporates. The Government is still buying into Treasuries to keep them afloat and there is still a lot of cash on the sidelines waiting to be invested. Mr. Seidensticker discussed ICC's philosophy in regards to staying short with the bonds in the near term, but when the market goes up they lose money. Mr. McMurry reviewed their average duration, quality, and yield. He explained that ICC did not get yield protection during the last quarter because of the market environment and there was no movement with the interest rates either. Mr. McMurry stated that he thinks they are better positioned now and going forward. Lastly Mr. McMurry updated the board on his firm changes. He announced the Steve Stack was recently promoted to the ceo and the CEO of ICC Capital. Also a portfolio manager just recently retired, but this does not affect this portfolio because he did not manage it. INVESTMENT CONSULTANT REPORT Thistle Asset Consulting-Presented by John McCann Mr. McCann stated that his September 30, 2013 report is not available yet because the September Custodial statements from Salem Trust have not been issued as of yet. He also noted that the June 30, 2013 quarterly return was revised because ~es ... -J.. _ Salem Trust's June Custodial statement was incorrect (Mr. McCann noted that the revised June 30, 2013 report was in the back of today's booklet that he provided). The Trustees discussed the Salem Trust issue and asked Mr. McCann to invite Salem to the next meeting so that they can discuss their transition in person with the Trustees. The Trustee's also asked Mr. McCann to contact Salem regarding their June 30, 2013 fees and also the September 30, 2013 fees, in which they think should be waived or discounted for all the inconveniences. Mr. McCann stated that Salem has already discounted the June 30, 2013 fees. The board stated that they would like to see the June 30, 2013 fees be waived altogether and also a discount to be applied to the September 30, 2013 fees. Mr. McCann stated that he will relay this information to Salem and have them attend the next meeting. Mr. McCann provided the board with an estimated return for the fiscal year ending September 30, 2013 at 15% net of fees. He commented that a majority of the Plan's return came from the index funds and that this is the second year in a row that the plan has beat their assumed rate of return. -Mr. McCann noted that he will email out the final September 30, 2013 report once the September Custodial statements are released. ATTORNEY REPORT Law Offices of Perry & Jensen -Presented by Bonni Jensen Ms. Jensen presented the board with the updated Summary Plan Description (SPD) which reflects the Plan changes that occurred in 2012. The Trustees asked if the minimum benefits test study that GRS completed was ever accepted by the Division of Retirement or not. Ms. Jensen explained that the original study that GRS performed was revised due to the comments back from the Division of Retirement and the final study, which was ultimately approved by the Division of Retirement, is in everyone's packets today. MOTION: Mr. Glass made a motion to approve the revised summary plan description as presented. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 5-0. Ms. Jensen noted that after the last meeting PRC followed up with Christopher Sands notifying him that he would need to attend the next board meeting in order to get his refund of contributions that he applied for as a vested member. Mr. Sands was provided with written notice of today's meeting and it was noted that he was not present today. Therefore at this time Mr. Sand's application for a refund of contributions will not be granted. Ms. Jensen noted that she will send Mr. Sand's a letter explaining the Board's position on this matter. Ms. Jensen notified the board that Jason Sharon's Order was successfully sent to him regarding this father's pension benefit, in which there are no survivorship benefits available. Therefore the board will need to approve the final order that states that no benefits will be paid out from Charles Sharon's pension (member deceased in 2013). Ms. Jensen explained that this Order protects the board from any member or persons who may come back and ask for a benefit from Mr. Sharon's pension. MOTION: SECOND: Mr. Glass made a motion to approve and accept the final Order that states no benefits will be paid out to Mr. Sharon's son or to any beneficiary. Mr. Seidensticker seconded the motion. s -3 CARRIED: The motion carried unanimously s-o. ADMINISTRATOR REPORT Resource Centers-Presented by Audrey Ross Ms. Ross presented the board with the GASB No. 67 Implementation Package that was prepared by GRS. This is due to the new GASB requirements that were just issued. Ms. Jensen stated that the first change that Is required is for the City to implement and the pension board will revisit this when they need to provide additional reporting. MINUTES MOTION: Mr. Pierson made a motion to approve the minutes from the August 2, 2013 regular meeting. SECOND: Mr. Mull seconded the motion. CARRIED: The motion carried unanimously s-o. DISBURSEMENTS APPROVALS MOTION: Mr. Mull made a motion to approve the disbursements. SECOND: Mr. Glass seconded the motion. CARRIED: The motion carried unanimously S-0. FINANCIAL STATEMENTS The board reviewed and discussed the financial statements that were provided through August 2013. The board received and filed the financial statements through August 2013. OTHER BUSINESS Ms. Ross noted the Mr. Glass and Mr. Mull are now CPPT certified as they pasted their final exam with FPPTA earlier this month. The Trustees scheduled the next 2 meetings dates in 2014 for Tuesday February 18, 2014 at 9AM and Friday April 18, 2014 at 9AM. The board will set the remaining 2014 meeting dates at their April meeting. PUBLIC COMMENTS N/A AJOURN There being no further business, the Trustees officially adjourned the meeting at 11:23. The next meeting is scheduled for Tuesday February 18, 2014 at 9AM. Respectfully submitted, DAVID PIERSON, Secretary 5 .L oc Pa 3