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HomeMy WebLinkAboutMinutes Police Pension 061914 Minutes 6-19-14 (SM).doc Page 1 of 2 City of Palm Beach Gardens Police Officers’ Pension Fund Minutes of the Special Meeting Held June 19, 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 9:06 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 OTHERS PRESENT Jay Spencer, Chairman Audrey Ross (Resource Centers) David Pierson, Secretary Bonni Jensen (Law Offices of Perry & Jensen) Brad Seidensticker, Trustee Pete Strong (GRS) Marc Glass, Trustee Allan Owens (PBG Finance Department) PRESENTATION OF THE 9/30/2013 ACTUARIAL VALUATION REPORT – PETE STRONG (GRS) Mr. Strong reviewed the Plans total contribution rate and noted that for the fiscal year ending September 30, 2014 the City will need to contribute 54.08% versus 52.62% from last year. He explained that the increase in employer contributions was mainly due to the decrease of the Plan’s assumed rate of return over time. The Trustees discussed the State money and how it is applied to both the City to offset their contributions and also to the Plan. The Plan will still keep the amount they have in reserve, which will be used to fund future benefits. The only change that happened during the year was the lowering of the assumed rate of return from 7.3% to 7.2%, but they still need to get to 6.5%. Mr. Strong explained that the Plan had a net actuarial gain of $151,072 during the year which was mainly due to lower than expected salary increases and more DROP entries than expected. The Plan’s funded ratio slightly increased this year to 69.9% from 69.1%. He briefly reviewed the participant data and commented that as of September 30, 2013 there was 75 active members, 67 retirees (including DROP members), and 2 vested deferred members. The Trustees discussed what payroll is being used to compute the contribution rates and Mr. Strong noted that the payroll only includes active members because they are the only ones contributing to the pension. The Trustees discussed and commented that they would like to have the active DROP member’s payroll included in the future valuations as well. MOTION: Mr. Pierson made a motion to authorize and approve GRS to include the active member’s payroll in all future actuarial valuations SECOND: Mr. Glass seconded the motion. CARRIED: The motion carried unanimously 4-0. The board discussed the Plan’s current unfunded liability. The current unfunded liability is $22,891,372 and that amount will be amortized out in equal payments over the next 15 years. Lastly Mr. Strong reported on the new disclosures that were added into this year’s valuation as preliminary numbers due to the new mandatory Minutes 6-19-14 (SM).doc Page 2 of 2 GASB 67 requirements. He explained that these additional reports include the plan’s prior year data and right after the fiscal year 2014 ends then Mr. Strong will need to update the schedules to reflect the most current information before it is submitted to the Division of Retirement. MOTION: Mr. Seidensticker made a motion to accept and approve the September 30, 2013 Actuarial Valuation Report as presented by the Plan’s Actuary. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 4-0. OTHER BUSINESS Ms. Jensen provided the board with the update draft ordinance and the impact statement regarding the recent changes to the collective bargaining agreement. This still needs to be approved by the City Commission. PUBLIC COMMENTS N/A ADJOURN There being no further business, the Trustees officially adjourned the meeting at 10:05. The next meeting is to be determined. Respectfully submitted, _____________________________ DAVID PIERSON, Secretary