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HomeMy WebLinkAboutMinutes Police Pension 032614 Minutes 3-26-14 (SM).doc Page 1 of 4 City of Palm Beach Gardens Police Officers’ Pension Fund Minutes of the Special Meeting Held March 26, 2014 The special meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers’ Pension Fund was called to order at 9:03 AM by Dave Pierson in the Council Chambers at the Palm Beach Gardens City Hall at 10500 North Military Trail, Palm Beach Gardens, Florida. TRUSTEES PRESENT OTHERS PRESENT David Pierson, Secretary Audrey Ross (Resource Centers) Marc Glass, Trustee Bonni Jensen (Law Offices of Perry & Jensen) Greg Mull, Trustee Bob O’dell (PBG Police Officers’/ Union Rep) Brad Seidensticker, Trustee Jim Burdick (Cherry, Bekaert) Sean O’brien (PBG Finance Department) DISUCSSION REGARDING FUTURE CHANGES TO THE COLLECTIVE BARGAINING AGREEMENT (CBA) Mr. O’dell explained what changes are going to occur to the pension as a result of the new CBA. He commented that the changes are not effective until July 1, 2016, but they will retro back to September 30, 2012. The normal retirement age is going to go back down to age 52 and the multiplier will increase to 2.75% for all service incurred after September 30, 2012. Also the parties have agreed for the City to use the plan’s excess Chapter 185 premium tax reserve as of October 1, 2012, and it shall be used to reduce the City’s annual required contributions for one fiscal year. The Trustee’s had a very lengthy discussion on the benefit changes and also how and when they are going to be implemented. MOTION: Mr. Glass made a motion to authorize Ms. Jensen to draft revised Ordinance language regarding the CBA changes that have been ratified between the City and the Union. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 5-0. PRESENTATION OF THE 9/30/2013 AUDITED FINANCIAL STATEMENTS – JIM BURDICK (CHERRY, BEKAERT) Mr. Burdick stated that the report he is presenting to the board today is a draft copy of the financial statements, as the final statements are not available yet (although more than likely the numbers in this report will not change). Mr. Burdick explained that an unmodified opinion has been issued this year, which is the highest level that can be issued. He stated that there were no material weaknesses or no internal control weaknesses or deficiencies that were found while performing the audit. He briefly discussed the Salem Trust issue and how it impacted them. The timing of the audit was delayed and they had some reclassifying issues with the statements, but in the long run everything worked itself out. Mr. Burdick briefly reviewed the plan’s assets and commented that they have increase this year by almost $10M; from $55M in 2012 to $64.5M in 2013. He noted that the increase in assets was mainly Minutes 3-26-14 (SM).doc Page 2 of 4 due to a great investment year. Also, the City’s contributions as well as the employee contributions were less in 2013 than in 2012. The retiree benefit payments increased this year due to more retirees than the prior year, as well as the refund of contributions and the total administrative expenses. Overall Mr. Burdick stated that it was a great year investment wise for the plan, and the audit process went very smooth as well. The Trustees noted that they will approve the final audit at their next regular scheduled meeting, but in the meantime a draft copy of what was presented here today will be submitted to the City. OTHER BUSINESS N/A PUBLIC COMMENTS N/A AJOURN There being no further business, the Trustees officially adjourned the meeting at 10:29. The next meeting is scheduled for Thursday April 17, 2014 at 3:30PM. Respectfully submitted, _____________________________ DAVID PIERSON, Secretary