HomeMy WebLinkAboutMinutes Police Pension 041714
Minutes 4-17-14.doc
Page 1 of 4
City of Palm Beach Gardens Police Officers’
Pension Fund
Minutes of the Meeting Held
April 17, 2014
The regular meeting of the Board of Trustees of the City of Palm Beach Gardens
Police Officers’ Pension Fund was called to order at 3:37 PM 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 Grant McMurry (ICC Capital)
Marc Glass, Trustee Allan Owens (City of PBG Finance Director)
INVESTMENT MANAGER REPORT
ICC Capital – Presented by Grant McMurry
Mr. McMurry briefly reviewed the market environment on the growth side and noted
that the Plan had a gain of $24K for the quarter, which is a return of .27% versus
the index at 1.12%. For the one year they are also slightly behind the index at
11.26% versus 11.67%. Mr. McMurry reviewed the Plan’s asset allocation and noted
that they are currently underweighted to consumer staples and healthcare and over
weighted to industrials and health care. Mr. McMurry then reviewed the fixed income
portfolio and commented that there is not a lot of movement going on. For the
quarter ending March 31, 2014 the fund underperformed the index at 1.57% versus
1.84% and for the fiscal year to date they are in the same position at 1.70% versus
the index at 1.71%. He briefly discussed the market outlook and noted that they are
starting to move into more larger cap companies because they have been up.
ATTORNEY REPORT
Law Offices of Perry & Jensen - Presented by Bonni Jensen
Ms. Jensen reviewed the drafted ordinance language changes that are due to the
new collective bargaining agreement. The Trustees discussed the Chapter 185
money and how the excess will be distributed to the City. Mr. Owen stated that the
City is not opting out of the Chapter 185 money and he also noted that the City’s
Attorney is working on drafting some language as well. Ms. Jensen commented that
she will get together with the City’s Attorney to get this completed.
Ms. Jensen briefly reviewed what was going on in Tallahassee during the legislative
session. She stated that the session has not ended and no bills have been passed as
of yet, but she did briefly discuss Senate Bill 246 that has moved along and if passed
would affect defined benefit plans. Ms. Jensen commented that she will update the
board as any new information comes along.
Ms. Jensen notified the board that Salem Trust has sent a written confirmation
confirming that they are reducing the Plan’s fee by 15% each quarter for the next
year.
Minutes 4-17-14.doc
Page 2 of 4
Ms. Jensen stated that the Resource Centers has received their SSAE16 audit report.
Lastly Ms. Jensen briefly reviewed the class action report from Kessler Topaz for the
quarter ending March 31, 2014. She noted that there were 3 reports filed and 1
settlement.
ADMINISTRATOR REPORT
Resource Centers – Presented by Audrey Ross
Ms. Ross explained that a couple of months ago the auditor presented to the Board
the draft report of the September 30, 2013 Audited Financial Statements. At that
time the report was not completed due to some outstanding confirmations that
needed to be retired by the Plan members. She stated that all the confirmations
have been returned and the final audit is now available. None of the numbers or
materials changed since it was last presented to the board. Therefore the Trustees
now need to approve their audited financial statements so that they can then be filed
with the Division of Retirement.
MOTION: Mr. Seidensticker made a motion to accept and approve the
September 30, 2013 Audited Financial Statements.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 4-0.
MINUTES
MOTION: Mr. Seidensticker made a motion to approve the minutes from
the February 18, 2014 regular meeting.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 4-0.
MOTION: Mr. Glass made a motion to approve the minutes from the
March 26, 2014 special meeting as amended.
SECOND: Mr. Seidensticker seconded the motion.
CARRIED: The motion carried unanimously 4-0.
DISBURSEMENTS APPROVALS
MOTION: Mr. Glass made a motion to approve the disbursements.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 4-0.
BENEFIT APPROVALS
MOTION: Mr. Seidensticker made a motion to approve the applications
for distribution of DROP accounts for George Betscha and Jules
Barone and the applications to enter the DROP for George
Smith, Cecil Wagner and Michael Stelicha.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 4-0.
Minutes 4-17-14.doc
Page 3 of 4
FINANCIAL STATEMENTS
The board reviewed and discussed the financial statements that were provided
through March 2014.
The board received and filed the financial statements through March 2014.
OTHER BUSINESS
Ms. Ross stated that Mr. Spencer’s term as 5th Trustees has expired on March 1,
2014 and therefore he needs to be reappointed. The Trustees decided to table this
until the next meeting when all the Trustees as present.
Ms. Ross presented the board with the letter from their Actuary (GRS) regarding the
GASB No. 67 Implementation Package. Ms. Jensen briefly explained to the board
what additional reports the Actuary will need to prepare next year to the new GASB
67 rules. Due to the new mandatory reporting requirements the Actuary will need to
increase their fee. Therefore they are stating that their fee range for these
additional reports is between 1,950 to $2,950. The Trustees had a lengthy
discussion on the new changes and noted that they are mandatory so it does require
more work for the Actuaries.
MOTION: Mr. Seidensticker made a motion to accept and approve the
GASB No. 67 Implementation Package presented by their Plan’s
Actuary (GRS), with the fees not to exceed $2,950 for the
additional reporting.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 4-0.
Lastly Ms. Jensen passed out correspondence from BCBLG Securities monitoring firm.
They approached her at the recent FPPTA conference and asked her to pass this
information along. The Trustees commented that they already have a service
provider that offers the same services and therefore they are not interest at this
time.
PUBLIC COMMENTS
Mr. Owens explained that the GASB 67 is for the pension plans and the City has
GASB 68 that will be implemented prior to GASB 67. Therefore the City will need
some investment information from the Plan’s Consultant for their additional reporting
that is required under the new GASB 68 rules. Mr. Owens passed out a memo of the
information he is requesting. The board directed Ms. Ross to pass this memo along
to the Plan’s Consultant so that he can provide the City with the requested
information.
AJOURN
There being no further business, the Trustees officially adjourned the meeting at
4:31PM. The next is still to be determined.
Respectfully submitted,
_____________________________
DAVID PIERSON, Secretary