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HomeMy WebLinkAboutMinutes Police Pension 102714 Minutes 10-27-14.doc Page 1 of 4 City of Palm Beach Gardens Police Officers’ Pension Fund Minutes of the Meeting Held October 27, 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 9:17 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 David Pierson, Secretary Audrey Ross (Resource Centers) Brad Seidensticker, Trustee Bonni Jensen (Law Offices of Perry & Jensen) Greg Mull, Trustee John McCann (Thistle Asset Consulting) Marc Glass, Trustee Steve Stack (ICC Capital Management) Allan Owens (Finance Director, City of PBG) PUBLIC COMMENTS Mr. Glass announced and congratulated Mr. Mull on his recent promotion to Sergeant. INVESTMENT MANAGER REPORT ICC Capital – Presented by Steve Stack Mr. Stack explained that the fund had a very strong fiscal year but the rates for the 10 year treasuries did go down, although they are starting to slowly rise again. He reviewed the equity portfolio and noted that they are not holding onto any securities in utilities, but they do have an overweight to materials and consumer staples. For the quarter the equity fund was negative at -0.89%, but for the fiscal year they were up 15.16%. Mr. Stack briefly reviewed the fixed income portfolio which did slightly better for the quarter at 0.15%, and for the fiscal year they were up 3.35%. Fixed income will remain steady throughout the end of the year. INVESTMENT CONSULTANT REPORT Thistle Asset Consulting – Presented by John McCann Mr. McCann noted that as of September 30, 2014 the fund’s assets are up to $70.9M. For the quarter the total fund net of fees was negative, but slight ahead of the index at -1.36% versus -1.39%. Although for the fiscal year the Plan outperformed its assumed rate of return and the index at 10.73% versus 10.29%. Mr. McCann noted that this Plan had a great fiscal year. He reviewed the Plan’s asset allocation and stated that American Realty still has another capital left for $480K and then they will be fully funded. Mr. McCann briefly reviewed each manager’s performance for the quarter and the fiscal year. Both the Rhumbline 400 & 600 accounts were negative, as well as the ICC equity fund. All the international accounts are doing well and Mr. McCann noted that he does not have any recommendations at this time for rebalancing. Lastly Mr. McCann reviewed the American Realty letter. American Realty is looking to allow foreign investors in their products so therefore they need the Boards consent. He explained that they will not be investing directly into this portfolio as American Realty will be running a feeder fund parallel to this fund, although the two Minutes 10-27-14.doc Page 2 of 4 funds will not be competing. This change would not directly impact this fund or this Plan’s investments. Both Ms. Jensen and Mr. McCann are comfortable with American Realty’s consent. MOTION: Mr. Seidensticker made a motion to authorize and approve the Board’s consent to solicit with American Realty. SECOND: Mr. Glass seconded the motion. CARRIED: The motion carried unanimously 4-0. ATTORNEY REPORT Law Offices of Perry & Jensen - Presented by Bonni Jensen Ms. Jensen stated that as a follow up from the last meeting she has her Firm’s assumption and agreement with Klausner and Kaufman regarding the transition, to be executed by the Board of Trustees. Ms. Jensen briefly discussed the new Senate Bill 534 requirements. There are 5 new reports that will have to be completed this year and they will have to be submitted within 60 days after the receipt of the Actuarial Valuation Report. Ms. Jensen wanted the Board to be aware of the ongoing IRS/Governmental issue. The Government wants a retirement age to be in place rather than just years of service retirement eligibility. Pension Plans were supposed to acknowledge this and do something about it by January 1, 2015, but yet again they keep delaying the issue. Ms. Jensen will keep the Board updated as more information comes along. Ms. Jensen presented that Board with the GRS letter regarding the new Senate Bill 534 requirements. Because of all the additional reports the Actuary will have to create, GRS is proposing a fee increase between $2,500-$3,000 to complete all the reports. Ms. Jensen noted that the Board is required by the Division of Retirement to complete these reports, or the Plan’s State money could be withheld. MOTION: Mr. Seidensticker made a motion to approve and accept the proposed fee of (not to exceed) $3,000 as presented by GRS in regards to the new Senate Bill 534 requirements. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 4-0. ADMINISTRATOR REPORT Resource Centers – Presented by Audrey Ross Ms. Ross presented the Board with the September 30, 2014 audit engagement letter from Cherry Bekaert. She noted that the fee remains the same as last year. Ms. Jensen noted that she reviewed the letter as well and does not have any objection. MOTION: Mr. Mull made a motion to approve and accept the September 30, 2014 audit engagement letter as presented from Cherry Bekaert. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 4-0. Minutes 10-27-14.doc Page 3 of 4 MINUTES MOTION: Mr. Glass made a motion to approve the minutes from the August 22, 2014 regular meeting. SECOND: Mr. Mull seconded the motion. CARRIED: The motion carried unanimously 4-0. DISBURSEMENTS APPROVALS MOTION: Mr. Seidensticker made a motion to approve the disbursements. SECOND: Mr. Glass seconded the motion. CARRIED: The motion carried unanimously 4-0. BENEFIT APPROVALS MOTION: Mr. Mull made a motion to approve the applications to enter the DROP for Jonathan Evans and Cheryl Bahr, the applications for distribution of DROP accounts for Jules Barone and George Betscha. SECOND: Mr. Glass seconded the motion. CARRIED: The motion carried unanimously 4-0. OTHER BUSINESS Mr. Owens stated that he would like to get the Boards permission to be able to work directly with the Actuary, GRS, in regards to the new GASB 68 implementations that are effective September 30, 2015. The City would pay for all charges associated with this project. Ms. Jensen commented that she does not see an issue with this and that it will actually be very beneficial for the City and this Board since all the information will also be consistent since it is coming from the same Actuary. MOTION: Mr. Glass made a motion to authorize and allow the City to work directly with the Plan’s Actuary, GRS, in regards to the new GASB 68 reports. SECOND: Mr. Mull seconded the motion. CARRIED: The motion carried unanimously 4-0. Lastly Mr. Mill entertained the idea of having some kind of annual newsletter that would be sent out to all the active members and retirees. Ms. Jensen commented that she knows of a company that does this type of work, but it might be a little more than what the board is looking for. Also the Resource Center’s website has a link to all the information a member may need. AJOURN There being no further business, the Trustees officially adjourned the meeting at 10:35PM. The next meeting still needs to be determined. Minutes 10-27-14.doc Page 4 of 4 Respectfully submitted, _____________________________ DAVID PIERSON, Secretary