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Minutes 6-19-14 (SM).doc
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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
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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