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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