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Home My WebLink AboutAgenda Police Pension 103008Agenda City of Palm Beach Gardens Police Officers' Pension Fund MEETING OF OCTOBER 30j, 2008 LOCATION: City Council Chambers' Police Conference Room 10500 North Military Trail Palm Beach Gardens, FL 33410 TIME: 9:00 AM 1. Call Meeting To Order 2. Roll Call: • Lt. Jay Spencer, Chairman • David Pierson, Secretary • Jules Barone, Trustee • Brad Seidensticker, Trustee • Wayne Sidey, Trustee 3. Approval of Minutes: July 24, 2008 4. Investment Manager Report - ICC Capital (Steve Stack) 5. Investment Consultant Report - Thistle Assets (John McCann) • Alternatives • Real Estate Search 6. Attorney Report: Hanson, Perry, & Jensen, P.A. (Bonni Jensen) • IRS Determination Letter decision • Summary Plan Description update • QPD Requirements 7. Disbursements Approval 8. Benefit Approvals 9. Financial Statements 10. Administrative Report (Scott Baur & Dixie Martinez) • Cherry, Bekaert & Holland Management Letter 11. Old Business 12. Other Business 13. Adjourn Next Meeting Date: *Thursday January 29, 2009 @ 9AM City of Palm Beach Gardens Police Officers' Pension Fund Minutes of the Meeting Held July 24th, 2008 The regular meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers' Pension Fund was called to order at 10:02 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 John McCann (Thistle Asset Consulting) Brad Seidensticker(deparred 11:45AM) Steve Stack (ICC Capital Management) Wayne Sidey Howard Rew (Cherry, Bekaert & Holland) Rowana Flitan (Cherry, Bekaert & Holland) Bonni Jensen (Hanson, Perry, & Jensen, P.A.) Donna Cannon (Palm Beach Gardens Clerk's Office) Scott Baur (The Pension Resource Center) Audrey Ross (The Pension Resource Center) Dixie Martinez (The Pension Resource Center) MINUTES MOTION: Mr. Sidey made a motion to approve the minutes as amended from the April 24th, 2008 meeting. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 3 -0. 2008 AUDITED FINANCIAL STATEMENT REPORT Cherry, Bekaert & Holland — Presented by Howard Rew & Rowana Flitan Mr. Rew explained the Report of Independent Auditors to the Trustees. The report explains the process they went through when auditing the Plan and their findings. Mr. Rew also discussed the Management's Discussion and Analysis Report. This report reflects the items that appear in the financial statements. Mr. Rew reviewed the net assets of the plan for the fiscal year ending September 30, 2007. They have increased by $6,130,731 during 2007, primarily due to employer and employee contributions. He commented that the net assets for the 3 year period and the net investment income have been improving tremendously. Mr. Rew commented that over the last 3 years there has been a significant improvement in Administration expenses, which has also helped the fund. He also reviewed the breakdown of the employer and employee contributions for the year ending September 30, 2007. Mr. Rew reviewed the deposit table which showed all the investments for the year. Ms. Jensen asked what the difference between the Money Market funds and the International funds were for purposes of the table. Mr. Rew commented that he would like to differ that question to the Investment Manager. Mr. Stack explained that the Money Market fund was more like a bank account that earns interest. The International fund holds Vanguard and all the other International funds. Mr. Seidensticker commented that he was very concerned about how low the funded ratio of the plan was. Mr. Spencer stated that about a year ago when they made some assumption changes to the Plan that it lowered their funded ratio. Mr. Spencer also explained that they have reached a plateau mark in their benefits, so now the future goal is to be 100% funded in the next 10 -15 years. Mr. Rew stated that the pension plan is only 16 years old and they have accomplished a lot within that time as a new Plan. Ms. Flitan explained that she wants to start the audit process a lot earlier for this year. She would like to have it completed by December, and she commented that she will start planning the process next week. MOTION: Mr. Seidensticker made a motion to approve the Audited Financial Statements for the year ending September 30, 2007. SECOND: Mr. Sidey seconded the motion. CARRIED: The motion carried unanimously 3 -0. INVESTMENT MANAGER REPORT ICC Capital — Presented by Steve Stack Mr. Stack commented that it has been a challenging market and that it was going to continue to be challenging. He stated that you would have thought that the fixed income side would have been positive, but not for this quarter. For the quarter ending June 30, 2008 the fixed income fund was ahead of the index at -0.46% versus - 1.02 %, with bonds also ahead at -0.56% versus - 1.02 %. He stated that the growth fund did better at 4.08% versus the index at 1.25 %, and the equities also outperformed at 3.50% versus 1.25 %. Mr. Stack stated that his company is currently writing a letter about their thoughts regarding Fannie Mae and Freddie Mac and he will forward it over to the Board once it is completed. Mr. Seidensticker commented that he just went in and bought into both because they were trading so low. Mr. Stack reviewed the asset allocation of each fund for the quarter. The fixed income fund was at 8.5% in cash and 91.5% in fixed income. For the growth fund there was 18.1% in cash and 81.9% in equities. Lastly, Mr. Stack reported that the funds large cap growth manager had resigned. Mr. McCann commented that he will monitor the fund and if there are any issues then he will suggest to the Board to look for another manager. INVESTMENT CONSULTANT REPORT Thistle Asset Consultant — Presented by John McCann Mr. McCann stated that he has made all the necessary changes to the Investment Policy Guidelines relating to the fixed income fund. He commented that over the next 2 months he wants to get all the allocations in order. He wants to take money from the fixed income and put it into the S &P 500. Mr. Stack commented that he would like to be able to invest in BBB rated bonds because they are still investment grade, but are lower in quality. He stated that he currently does not hold any BBB rated bonds though. Mr. McCann replied that he would like to keep the Investment Policy Guidelines how they are now and they might consider going into BBB rated bonds in the future. Mr. McCann reviewed the return of the fund for the quarter ending June 30, 2008. The total fund was negative but ahead of the benchmark at -0.01% versus -0.42% and the total equities were also ahead at 0.37% versus - 0.27 %. The total fixed income was ahead of the benchmark at -0.50% versus -1.02% and the international was ahead at -1.32% versus - 1.93 %. Mr. McCann reviewed the break down by manager and stated that the dollar figures are behind the allocations. The asset allocations of the portfolio for the quarter were at; 6% cash, 55% in equities and 39% in fixed income. Mr. McCann explained the MainStay situation. The account was closed out at the end of the quarter. Mr. McCann commented that this portfolio is well diversified but he would like to bring some real estate into the fund. He would split the S &P500 and put some into real estate. The Board would have to amend the Ordinance to allow the fund to invest in real estate. Ms. Jensen commented that some funds remove all investment restrictions from the Ordinance and abide by the Investment Policy Guidelines. MOTION: Mr. Seidensticker made a motion to direct Bonni Jensen to draft an amendment to the Ordinance to remove all investment restrictions. SECOND: Mr. Sidey seconded the motion. CARRIED: The motion carried unanimously 3 -0. Lastly, Mr. McCann commented that he has the Investment Policy Guidelines that need to be approved. Mr. Spencer stated that he thinks the price to earnings ratio needs to be looked at a little closer. MOTION: Mr. Seidensticker made a motion to approve the Investment Policy Guidelines. SECOND: Mr. Sidey seconded the motion. CARRIED: The motion carried unanimously 3 -0. BOARD DISCUSSION Mr. Spencer explained that he just returned from the FPPTA conference; his third year in a row. The main theme of the conference was how plans need to take a shift on how they are investing. He stated that this plan really needs to think about investing in alternatives; considering real estate and hedge funds. Mr. Spencer commented that interest rates are at their lowest now and as they drop the bonds will go up. Again, Mr. McCann stated that they would need to amend the Ordinance to reflect investing in real estate or hedge funds. Mr. McCann will bring in a real estate search and other information regarding alternatives to the next meeting. DISBURSEMENTS APPROVALS MOTION: Mr. Seidensticker made a disbursements. SECOND: Mr. Sidey seconded the motion. motion to approve the CARRIED: The motion carried unanimously 3 -0 BENEFIT APPROVALS MOTION: Mr. Sidey made a motion to approve the benefit approvals. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 3 -0 ATTORNEY REPORT Hanson, Perry & Jensen, P.A. — Presented by Bonni Jensen Ms. Jensen reviewed her fee increase proposal with the Board. MOTION: Mr. Sidey made a motion to execute Bonni Jensen's fee increase agreement. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 3 -0. Ms. Jensen reviewed the workers compensation rules and regulations as they are now. She stated that when members take time off they do not get credit for time of service, so therefore members should not be making contributions into the pension plan. Ms. Jensen explained that she can amend the rules to allow members to continue making pension contributions when they are out on workers compensation. This rule can also retro back to the members that are now affected by this situation. MOTION: Mr. Sidey made a motion to amend the workers compensation rules and regulations. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 3 -0 Ms. Jensen commented that the Ordinance amendments have not been approved by the Council. Ms. Jensen reviewed the Federal and State memo, She explained that there are now mandatory provisions that when a member leaves employment to go serve our Country and then dies, that the surviving spouse must collect a benefit. The question that still remains is if you will treat the death as a duty or non duty. Ms. Jensen reviewed the changes that were discussed at the workshop in Tallahassee that she attended regarding Actuarial changes to pension plans. She believes that the rules that were proposed will exceed authority. The state will hold another workshop in September to discuss the situation further. Ms. Jensen reported that the IRS is encouraging all public pension plans to file for an IRS determination letter, which will state that the Plan is qualified. She explained that the IRS feels that they have underserved the public pension plans for quite sometime and now they want to help. If the Board would like to file for this letter it has to be done by January 31, 2009. She commented that there will be an additional cost to the Plan to file for the letter. The Board agreed that they will wait until the next meeting before making a decision. Lastly, Ms, Jensen stated that she will bring back the revised Summary Plan Description to be approved at the next meeting. ADMINISTRATOR REPORT The Pension Resource Center, LLC — Presented by Audrey Ross & Dixie Martinez Ms. Ross stated that the Annual Report has been sent to the state and we have not heard anything back yet. She will keep the Board updated on the status. AJOURN There being no further business, and the future meetings are scheduled for the last Thursday of the first month of the quarter. The next meeting is scheduled for Thursday October 30, 2008 at 9AM; the Trustees officially adjourned the meeting at 12:18PM. Respectfully submitted, DAVID PIERSON, Secretary COMPLEXITY DEFENSIVE CONSISTENT DIVERSIFICATION QUANTITATIVE VOLATILITY DURATION GROWTH ACTIVE ROTATION STRATEGY INNOVATION DISCIPLINE RISK CONTROL YIELD BENCHMARKS P/E RATIO I C C CAPITAL MANAGEMENT GLOBALIZATION ASSET ALLOCATION PERFORMANCE STABILITY INTEGRITY SECTOR MARKETS SECURITIES i PALM BEACH GARDENS POLICE PENSION FUND Investment Review Quarter Ending September 30, 2008 PALM BEACH GARDENS POLICE PENSION FUND Table of Contents Quarter Ending September 30, 2008 Section I Palm 13each Gardens Police Pension Fund Fixed Income Section II Palm Beach Gardens Police Pension Fund Growth Section [H I'roxv Votes ICC Cap tal A•IM141 eMellt, 11W. Y� a .w Ak ok oft PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Investment Review Quarter Fnding September 30, 2008 M b. .4% lCC Capital A4anagement. Inc. L. f PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOMI Investment Performance Report Quarter Ending September 30, 2008 oft Total Return Summary Page...... 1 Aft Portfolio Allocation Page...... 2 Investment Performance by Asset Category Page...... 3 r Fixed - Income Analysis Page...... 4 Purchases & Sales Page...... 6 ^ Realized Gains/ Losses Page...... 10 Portfolio Summary Page...... 13 Portfolio Appraisal Page ...... 14 MIN WC Gipital Management, laic. E. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Total Return Summary Quarter Ending September 30, 2008 Starting Value Ending Value Difference $12,132,804 1 $11,744,758 1 $6,524,470 $12,189,700 1 $12,189,700 1 $12,189,700 $56,896 Net Contributions/ (Withdrawals) 1 $390,329 GabV(Loss) front Investments $444,942 1 $5,665,230 $291,384 1 $4,307,494 $153,558 1 $1,357,736 TOTAL RETURN -2.66% 1.54% 16.310/. ANNUALIZED TOTAL RETURN 3.070% Icc capital illanagoll nt, Inc. 1 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Portfolio Allocation at Market Quarter Ending September 30, 2008 Asset Allocation: 0/100 (Mkt) Market Valise CASFI /EQUIV5 as of 06130108 8.50. FIXED INCOME: 91.5 Market Value CASI I /EQUIVS as of 09130108 16.2x" 0i 0 FIXED INCOME 83.8 0 Mkt Value Mkt Value "/o Mkt Value Mkt Value "/o as of 06/30/08 as of 06/30/08 as of 09/30/08 as of 09/30/08 Cash/E uivs $1,030,546 8.5 °0 $1,980,329 16.2 °0 Fixed $11,102,258 91.5% 510,209,372 83.8% Total $12,132,801 1(X.).O% S12,189,700 100.0% /CC Capital 'Mauaaont rtl, Inc. 2 I- 1 ,k Am oft .41k 48% -N IK Aw a a.. n* ,.w .ew PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Investment Pei formance by Asset Category Quarter Ending September 30, 2008 rtarter 0.00 -2.50 -5.00 One Year 6.00 4.00 2.00 0.00- -3.20 BONUS 3.65 • AC COU N "r ■ LBAG r-O49 -2.66 TOTAL ■ACCOUNT 6LBAG 3.65 BONDS TOTAL_ Five Years Annualized 7.50 5.00 3.78 3.05 2.50 0.00 - - - -- BONDS The ■ACCOUNT •L.BAG 3.78 3.07 TOTAL w1m,�ents the 1xinnan Brothers Aggregate Index. 1CCCapital Management, Inc. 3 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis (Page 1 of 2) Quarter Ending September 30, 2008 Average Quality — AA Average Duration — 3.94 Current Yield — 6.00 Federal Agencies Mortgage Pools 28.2% 24.4% US Trcasu ries 5.4° Corporate Bonds 41.9% 1 Morta a Backed Securities Coupon Maturity S &P Rating Moody Rating F Imc # 02268 6.50 0,a 8/1/2036 AAA Aaa Fncl # 256394 6.50% 9/1/2036 AAA Aaa G2 Pool# 4195 6.00 o 7/20/20.38 AAA Aaa Gnsf M #552509 6.00% 4/15/201.32 AAA Aaa F ci #)1,12203 4.50% 6/1/2021 AAA Aaa Fnci N #725445 4.50% 5/l/2019 AAA Aaa Fnci \1 #254371 5.50% 7/1/2017 AAA Aaa Fnci N #255888 4.00% 8/1/2020 AAA Aaa Fnci N #825335 4.00% 5/1/2020 AAA Aaa Fnci N #829053 4.00% 8/1/2020 AAA Aaa Gn o M #781313 6.00% 7/15/2016 AAA Aaa Gnsf M #582153 6.00`'0 6/15/2032 AAA Aaa F ci N #g12323 4.50 °0 8/1/2021 AAA Aaa F ci N 013455 4.50% 4/1/2019 AAA Aaa Govertnnent/A ency Bonds Coupon Maturity S &P Rating Moody/ Rating Flilmc 6.00% 6/15/2011 AAA AAA Fannie Nlae 4.25% 6/24/2011 AAA Aaa Freddie Mac 6.00% 7/6/2017 AAA AAA Freddie Mac 5.00% 4/30/2018 AAA AAA Freddie Mac 5.90% 6/13/2022 AAA AAA Fannie Mae 5.63% 11/15/2021 AAA AAA Fannie Mae 5.50% 12/14/2022 AAA Aaa Freddie Mac 4.38% 5/13/2013 AAA AAA Fannie Mae 6.000o 4/28/2021 AAA AAA Fannie Mae 5.059 9/29/2023 AAA AAA Us Treasury 4.50% 5/15/2038 AAA AAA Corporate Bonds Coupon Maturity S &P Rating Moody Rating Conoco Inc 6.95% 4/15/2029 A Al mor an Chase & Co 7.88% 6/15/2010 A+ AA3 CitiRroup Inc 6.50° 1/-18/20-11 AA- AA3 Fleetboston Finl Corp 7.38% 12/1/2009 A+ AA2 Hartford Finl Svcs Grp 5.250/0' '10/15/2011 A A2 WC Capital Management, Inc. 4 ? i PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis (Page 2 of 2) Quarter Ending September 30, 2008 Corporate Bonds Coupon Maturih,/ S &P Rating Moody Rating NicDonald's Corp 5.80% 10/15/2017 A A3 At &T Inc 5.63 % 6/15/2016 A A2 Glaxosmithkline Cap Inc 4.38% 4/15/2014 A+ Al Goldman Sachs 6.875% 1 -15 -11 6.88% 1/15/2011 AA- Aa3 Verizon Communications 5.50`.' 4/l/2017 A A3 At &T Inc 4.95% 1/15/2013 A A2 Goldman Sachs Group Inc 5.45% 11/l/2012 AA- AA3 Fifth Third Bank Nw -Ohio 6.25° 5/l/2013 A+ Al Lehman Brothers Hldg 7.88% 8/15/2010 D B3 Golden West Fin] 4.75% 10/l/2012 A+ Al Merrill Lvnch & Co 6.05% 5/16/2016 A A3 McDonald's Corp 530% 3/15/2017 A A3 National Rural Util Coop 5.50% 7/l/2013 A+ Al Cons Edison Co Of Nv 5.85% 4/l/2018 A- Ale General Elec Cap Corp 5.50% 6/4/2014 AAA AAA I p Morgan Chase 4.88 o 3/15/2014 A+ AA3 National Rural Util Coop 5.45% 4/10/2017 A+ Al General Electric Cap Crop 8.30.. %0 9/20/2009 AAA AAA Goldman Sachs 5.25% 10/15/2013 AA- AA3 .Morgan Stanley 4.75% 4/l/2014 A A2 Goldman Sachs 5.13% 1/15/2015 AA- AA3 jp Morgan Chase 5.25% 5/l/2015 A+ AA3 Archer Daniels 5.38% 9/15/20,35 A A2 Bear Stearns 5.70% 11/15/2014 AA- AA2 Portfolio Duration vs. Index Duration (Ratio) 1.8% I NEUTRAL AGG RLSSI V P o 0.6:0 — 0.200 9/30/2006 12/31/2006 3/31/2007 j 6/30/2007 _ DF.FF.NSIVE + - -- - 9/30/2007 -- . 12/31/2007 3/31/2008 6/30/2008 9/30/2008 m w wA M" ICC Captal Adanagenrent, Inc. 5 ]CC Capital Management PURCHASE AND SALE PALM BEAC11 GARDENS POLICE PENSION FUND FIXED INCOME Front 06 -30 -08 To 09 -30 -08 Trade Settle Unit Date Date Quantity Security Price Amount PURCHASES 09 -11 -08 09 -29 -08 135,000.000 FANNIE MAE 100.00 135,000.00 5.050% Due 09 -29 -23 07 -22 -08 08 -20 -08 249,687.232 G2 POOLN 4195 99.89 249,413.84 6.000% Due 07 -20 -38 08 -07 -08 08 -12 -08 200,000.000 GOLDMAN SACHS 6.875% 1-15-11 104.05 208,096.00 6.875% Due 01 -15 -1 1 07 -16 -08 07 -18 -08 310,000.000 US "TREASURY 96.83 300,167.19 4.375% Due 02 -15 -38 08 -06 -08 08 -08 -08 310,000.000 US TREASURY 95.06 294,693.75 4.375% Due 02 -15 -38 08 -11 -08 08 -15 -08 940,000.000 US TREASURY 98.38 924,786.75 4.500% Due 05 -15 -38 SALES 08 -13 -08 08 -13 -08 300,000.000 FANNIE MAE 100.00 300,000.00 5.750% Due 02 -13 -17 08 -26 -08 08 -29 -08 35,000.000 IBM CORP 104.97 36,738.80 6.500% Due 01 -15 -28 08 -26 -08 08 -29 -08 15,000.000 IBM CORP 104.97 15,745.20 6.500% Due 01 -15 -28 08 -26-08 08 -29 -08 25,000.000 IBM CORP 104.97 26,242.00 6.500% Due 01- 15-28 09 -17 -08 09 -22 -08 195,000.000 INTL LEASE FIN A1G 5 7/8 75.00 146,250.00 5.875% Due 05 -01 -13 08 -07 -08 08 -12 -08 200,000.000 MORGAN STANLEY 94.16 188,328.00 6.625% Due 04 -01 -18 07 -09 -08 07 -10 -08 235,000.000 US TREASURY 98.56 231,621.88 4.375% Due 02 -15 -38 08 -01 -08 08 -05 -08 310,000.000 US TREASURY 97.00 300,700.00 4.375% Due 02 -15 -38 08 -08 -08 08 -12 -08 475,000.000 US TREASURY 107.02 508,324.22 5.000% Due 05 -15 -37 08 -08 -08 08 -12 -08 310,000.000 US TREASURY 97.05 300,845.31 4.375% Due 02 -15 -38 09 -08 -08 09 -10 -08 410,000.000 US TREASURY 103.33 423,653.00 4.500% Due 05 -15 -38 _ 2,478,448.41 PRINCIPAL PAYD03VNS 07 -01 -08 07 -15 -08 1,787.460 FGCI #G 12205 1 00.00 1,787.46 4.500% Due 06 -01 -21 6 ICC Capital Managcment PURCHASE AND SALE PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME From 06 -30.08 7o 09 -30 -08 Trade Settle Unit Date Date Quantity Security Price Amount 08 -01 -08 08 -15 -08 1,507.040 FGCI #G12205 100.00 1,507.04 4.500% Due 06 -01 -21 09 -01 -08 09 -15 -08 1,389.210 FGCI #G12205 100.00 1,389.21 4.500% Due 06 -01 -21 07 -01 -08 07 -15 -08 1 1 1.560 FGCI N #D 13455 100.00 111.56 4.500% Due 04 -01 -19 08 -01 -08 08 -15 -08 54.080 FGCI N #B 13455 100.00 54.08 4.500% Due 04 -01 -19 09 -01 -08 09 -15 -08 61.890 FGCI N #B13455 100.00 61.89 4.500% Due 04-01-19 07 -01 -08 07 -15 -08 83.360 FGCI N #G 12323 100.00 83.36 4.500% Due 08 -01 -21 08 -01 -08 08 -15 -08 82.710 FGCI N #G 12323 100.00 82.71 4.500% Due 08 -01 -21 09 -01 -08 09 -15 -08 94.320 FGCI N #G 12323 100.00 94.32 4.500% Due 08 -01 -21 07 -01 -08 07 -15 -08 2,512.900 FGLMC #G02268 100.00 2,512.90 6.500% Due 08 -01 -36 07 -01 -08 07 -15 -08 8,574.850 FGLMC #G02268 100.00 8,574.85 6.500% Due 08 -01 -36 08 -01 -08 08 -15 -08 2,489.921 FGLMC #602268 100.00 2,489.92 6.500% Due 08 -01 -36 08 -01 -08 08 -15 -08 8,496.399 FGLMC #G02268 100.00 8,496.40 6.500% Due 08 -01 -36 09 -01 -08 09 -15 -08 1,667.222 FGLMC #G02268 100.00 1,667.22 6.500% Due 08 -01 -36 09 -01 -08 09 -15 -08 5,689.100 FGLMC #G02268 100.00 5,689.10 6.500% Due 08 -01 -36 07 -01 -08 07 -15 -08 945.920 FNCI M #254371 100.00 945.92 5.500% Due 07-01-17 08 -01 -08 08 -15 -08 1,147.790 FNCI M 11254371 100.00 1,147.79 5.500% Due 07 -01 -17 09 -01 -08 09 -15 -08 2,065.640 FNCI M #254371 100.00 2,065.64 5.500% Due 07 -01 -17 07 -01 -08 07 -15 -08 321.150 FNCI N #255888 100.00 321.15 4.000% Due 08 -01 -20 08 -01 -08 08 -15 -08 319.490 FNCI N #255888 100.00 319.49 4.000% Due 08 -01 -20 09 -01 -08 09 -15 -08 330.430 FNCI N #255888 100.00 330.43 4.000% Due 08 -01 -20 07 -01 -08 07 -15 -08 45.081 FNCI N #725445 100.00 45.08 4.500% Due 05 -01 -19 07 -01 -08 07 -15 -08 1,452.279 FNCI N #725445 100.00 1,452.28 4.500% Due 05 -01 -19 7 ICC Capital Management PURCHASE AND SALE PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME From 06 -30 -08 To 09 -30 -08 Trade Settle Unit Date Date Quantity Security Price Amount 08 -01 -08 08 -15 -08 41.556 FNCI N 9725445 100.01 41.56 4.500% Due 05 -01 -19 08 -01 -08 08 -15 -08 1,338.734 FNCI N 9725445 100.00 1,338.73 4.500% Due 05-01-19 09 -01 -08 09 -15 -08 40.112 FNCI N #725445 99.99 40.11 4.500% Due 05 -01 -19 09 -01 -08 09 -15 -08 1,292.218 FNCI N 9725445 100.00 1,292.22 4.500% Due 05 -01 -19 07 -01 -08 07 -15 -08 338.130 FNCI N 9825335 100.00 338.13 4.000% Due 05 -01 -20 08 -01 -08 08 -15 -08 341.100 FNCI N #825335 100.00 341.10 4.000% Due 05 -01 -20 09 -01 -08 09 -15 -08 335.480 FNCI N #825335 100.00 335.48 4.000% Due 05-01-20 07 -01 -08 07 -15 -08 690.690 FNCI N #829053 100.00 690.69 4.000% Due 08 -01 -20 08 -01 -08 08 -15 -08 289.590 FNCI N #829053 100.00 289.59 4.000% Due 08 -01 -20 09 -01 -08 09 -15 -08 486.640 FNCI N 9829053 100.00 486.64 4.000% Due 08 -01 -20 07 -01 -08 07 -15 -08 9,238.480 FNCL # 256394 100.00 9,238.48 6.500% Due 09 -01 -36 08 -01 -08 08 -15 -08 9,790.240 FNCL 4 256394 100.00 9,790.24 6.500% Due 09 -01 -36 09 -01 -08 09 -15 -08 6,229.510 FNCL # 256394 100.00 6,229.51 6.500% Due 09 -01 -36 09 -01 -08 09 -01 -08 376.840 G2 POOL# 4195 100.00 376.84 6.000% Due 07 -20 -38 07 -01 -08 07 -15 -08 842.660 GNJO M #781313 100.00 842.66 6.000 % Due 07 -15- l 6 08 -01 -08 08 -15-08 487.540 GNJO M #781313 100.00 487.54 6.000% Due 07 -15 -16 09 -01 -08 09 -15 -08 756.810 GNJO M #781313 100.00 756.81 6.000% Due 07 -15 -16 07 -01 -08 07 -15 -08 5,002.310 GNSF M #552509 100.00 5,002.31 6.000% Due 04 -15 -32 08 -01 -08 08 -15 -08 2,419.830 GNSF M #552509 100.00 2,419.83 6.000% Due 04 -15 -32 09 -01 -08 09 -15 -08 1,608.260 GNSF M #552509 100.00 1,608.26 6.000% Due 04 -15 -32 07 -01 -08 07 -15 -08 71.930 GNSF M 9582153 100.00 71.93 6.000% Due 06 -15 -32 08 -01 -08 08 -15 -08 73.490 GNSF M 9582153 100.00 73.49 6.000% Due 06 -15 -32 8 ICC Capita( Management PURCHASE AND SALE PALM BEA CH GARDENS POLICE PENSION FUND FIXED INCOME From 06 -30 -08 To 09 -30 -08 Trade Settle Date Date Quantity Security 09 -01 -08 09 -15 -08 72.770 GNSF M U582153 6.000% Due 06 -15 -32 9 Unit Price Amount 100.00 72.77 ICC Capital Management REALIZED GAINS AND LOSSES 10 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME From 06 -30 -08 Through 09 -30 -08 Cain Or Loss Open Close Cost _ _ Date note Quantity Security Basis Proceeds Short Term Long Term 12 -15 -06 07.01 -08 2,512.900 Ft3I.MC #G02268 2,565.13 2,512.90 -52.23 6.500% Due 08 -01 -36 01 -08 -07 07 -01-08 8,574.850 FGLMC HG02268 8,753.05 8,574.85 - 178.20 6.500% Due 08 -01-36 02 -21 -07 07 -01 -08 1,787.460 FGCI #G12205 1,724.62 1,787.46 62.84 4.500% Due 06 -01 -21 08 -24 -06 07.01 -08 83.360 FGCI N #G 12323 79.92 83.36 3.44 4.500% Due 08 -01-21 09 -08 -04 07 -01 -08 111.560 FGCI N #1313455 111.23 111.56 0.33 4.500% Due 04 -01 -19 05 -23 -02 07 -01 -08 945.920 FNCI M #254371 941.78 945.92 4.14 5.500% Due 07 -01 -17 09 -08 -05 07 -01 -08 321.150 FNCI N #255888 312.52 321.15 8,63 4.000% Due 08 -01 -20 01.08 -07 07 -01 -08 9,238.480 FNCL #256394 9,423.25 9,238.48 - 184.77 6.500% Due 09 -01 -36 09 -15.04 07 -01.08 45.081 FNCI N 0725445 45.12 45.08 -0.04 4.500% Due 05 -01 -19 01 -29.07 07 -01.08 1,452.279 MCI N #725445 1,39173 1,452.28 58 -55 4.500% Due 05 -01 -19 09- 08-05 07 -01 -08 338.130 FNCI N #825335 329.04 338.13 9.09 4.000% Due 05-0 1 -20 08 -23.05 07 -01 -08 690.690 FNCI N #829053 669.97 690.69 20.72 4.000% Due 08 -01 -20 06 -13 -02 07 -01 -08 71.930 GNSF M #582153 71.81 71.93 0.12 6.000% Due 06 -15 -32 04.15 -02 07 -01 -08 5,002.310 GNSFM #552509 4,940.56 5,002.31 61.75 6.000% Due 04 -15 -32 07 -02 -02 07 -01 -08 842.660 GNJO M #781313 868.99 842.66 -26.33 6.000% Due 07 -15 -16 06 -12.08 07 -09 -08 235,000.000 US TREASURY 221,377.34 231,621.88 10,244.54 4.375% Due 02 -15 -38 07 -16 -08 08 -01-08 310,000.000 USTREASURY 300,167.19 300,700.00 532.81 4.375% Due 02 -15 -38 12 -15 -06 08 -01.08 2,489.921 FGLMC #G02268 2,541.67 2,489.92 -51.75 6.500% Duc 08 -01 -36 01 -08 -07 08 -01.08 8,496 -399 FGLMC #G02268 8,672.97 8,496.40 - 176.57 6.500% Due 08 -01 -36 02 -21 -07 0"1 -08 1,507.040 FGCI #G 12205 1,454.06 1,507.04 52.98 4.500% Due 06 -01 -21 08 -24 -06 08 -01 -08 82.710 FGCI N #G 12323 7930 82.71 3.41 4.500% Due 08-0 1-21 09 -08 -04 08 -01 -08 54.080 FGCI N #1313455 53.92 54.08 0.16 4.500% Due 04 -01 -19 05 -23 -02 08 -01 -08 1,147.790 FNCI M #254371 1,142.77 1,147.79 5.02 5.500% Due 07 -01 -17 09 -08 -05 08 -01.08 319.490 FNCI N H255888 310.90 319.49 8.59 4.000% Due 08 -01 -20 01 -08 -07 08 -01 -08 9,790.240 FNCL #256394 9086.05 9,790.24 - 195.81 6.500% Due 09 -01 -36 09 -15-04 08 -01 4)8 41.556 FNCI N #725445 41.59 41.56 -0.03 4.500% Due 05 -01 -19 01 -29 -07 08 -01.08 1. 338.734 FNCI N #725445 1,284.77 1,338.73 53.96 4.500% Due 05 -01 -19 10 ICC Capital Management REALIZED GAINS AND LOSSES PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME From 06 -30 -08 Through 09 -30 -08 Gain Or Loss Open Close Cost _ 11ate Date Quanlily Security Basis Proceeds Short Term Long Term 09.08.05 08 -01 -08 341.100 FNCI N #825335 331.93 341.10 9.17 4.000% Due 05 -01 -20 08 -23 -05 08-01 -08 289.590 FNCI N 4829053 280.90 289.59 8.69 4.000% Due 08 -0 1 -20 06 -13-02 08 -01 -08 73.490 GNSF M #582153 73.36 73.49 0.13 6.000% Due 06 -15 -32 04 -15 -02 08 -01 -08 2,419.830 GNSF M #552509 2,389.96 2,419.83 29.87 6,000% Due 04 -15 -32 07 -02.02 08 -01 -08 487.540 GNJO M #781313 502.78 487.54 -15.24 6.000% Due 07 -15 -16 03 -27 -08 08 -07 -08 200,000.000 MORGAN STANLEY 200,000.00 188,328.00 - 11,672.00 6.625 % Due 04 -01 -18 01.24 -08 08 -08 -08 475,000.000 US TREASURY 526,953.12 508,324.22 - 18,628.90 5.000% Due 05 -15 -37 08 -06 -08 08 -08 -08 310,000.000 USTREASURY 294,693.75 300,845.31 6,151.56 4.375% Due 02 -15 -38 07 -23.07 08 -13 -08 300,000.000 FANNIE MAE 296,550.00 300,000.00 3,450.00 5.750% Due 02 -13 -17 06 -27.06 08 -26 -08 35,000.000 IBM CORP 35,817.60 36,738.80 921.20 6.500% Due 01 -15 -28 04 -13 -06 08.26 -08 15,000.000 IBM CORP 15,596.70 15,745.20 148.50 6.500% Due 01 -15 -28 01 -30 -06 08.26 -08 25,000.000 IBM CORP 27.787.75 26,242.00 •1,545.75 6.500% Due 01 -15 -28 12 -15 -06 09 -01 -08 1,667.222 FGI-MC #G02269 1,701.87 1,667.22 -34.65 6.500% Due 08 -01 -36 01 -08 -07 09 -01 -08 5,689.100 FGL.MC #002268 5,807.33 5,689.10 - 118.23 6.500% Due 08 -01 -36 02 -21 -07 09 -01.08 1,389.210 FGCI #W2205 1,340.37 1,389.21 48.84 4.500% Due 06 -01 -21 08 -24 -06 09 -01 -08 94.320 FGC I N #G 12323 90.43 94.32 3.89 4.500% Due 08.01 -21 09.08 -04 09 -01 -08 61.890 F'GCI N 11B 13455 61.71 61.89 0.18 4.500% Due 04 -01 -19 05 -23 -02 09 -01 -08 2,065.640 FNCI M #254371 2,056.60 2,065.64 9.04 5.500% Due 07 -01 -17 09 -08.05 09 -01 -08 330.430 FN(A N #255888 321.55 330.43 8.88 4.000% Due 08 -01 -20 01 -08 -07 09.01 -08 6,229.510 FNCL # 256394 6,354.10 6,229.51 - 124.59 6.500% Due 09 -01 -36 09 -15-04 09 -01.08 40.112 FNCI N #725445 40.14 40.11 -0.03 4.500% Due 05 -01 -19 01 -29 -07 09 -01 -08 1,292.218 1-NCI N 0$725445 1,240.13 1,292.22 52.09 4.500% Due 05 -01 -19 09 -08-05 09.01 -08 335.480 FNCI N #825335 326.46 335.48 9.02 4.000% Due 05 -01 -20 08 -23 -05 09.01.08 486.640 IT1C1 N #829053 472.04 486.64 14.60 4.000% Due 08 -01 -20 06 -13 -02 09.01 -08 72.770 GNSF M #582153 72.64 72.77 0.13 6.000% Due 06 -15 -32 07 -22.08 09 -01 -08 376.840 G2 1`0011 4195 376.43 376.84 0.41 6.000% Due 07 -20 -38 04 -15 -02 09 -01 -08 1,608.260 GNSF M #552509 1,588.41 1,608.26 19.85 6.000% Due 04.15.32 ICC Capital Management REALIZED GAINS AND LOSSES PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME From 06 -30 -08 Thraugh 09 -30 -08 Open Close Date Date Quantity Security 07 -02-02 09.01 -08 756.810 GNIO AI H781313 6.000 %. Due 07 -15 -16 08 -11 -08 09 -08 -08 410,000.000 US TREASURY 4.500% Due 05 -15 -38 08 -24 -05 09 -17 -08 195,000.000 INTL LEASE FIN AIG 5 718 5.875 %s DucOMI -13 TOTAL GAINS TOTAL LOSSES TOTAL REALIZED GAIN /LOSS - 50,473.03 12 Cost Basis Proceeds 780.46 756.81 403.364.43 423,653.00 205,999.95 146,250.00 2,612,316.16 2,561,843.13 Gain Or Loss Short Term Long Term -23.65 20,288.57 37,217.89 - 30,300.90 6,916.98 - 59,749.95 5,087.79 - 62,477.81 - 57,390.02 ICC Capital Management PORTFOLIO SUMMARY PALr11 BEACH GARDENS POLICE PENSION FUND FIXED INCOME September 30. 2008 13 I'm Cur. Est.Annual Security Type Total Cost _Market Value Assets Yield Income Cash & Equivalents CASH AND 1,980,328.86 1,980,328.86 16.2 4.0 79,411.19 EQUIVALENTS 1,980,328.86 1,980,328.86 16.2 4.0 79,411.19 Fixed Income CORPORATE BONDS 4,835,756.00 4,213,143.95 34.6 6.7 283,196.25 GOVERNMENT 521,422.32 547,225.00 4.5 4.4 23,850.00 BONDS MORTGAGE POOLS 2,435,925.60 2,456,950.60 20.2 5.9 145,241.87 GOVERNMENT 2,797,877.60 2,832,430.70 23.2 5.3 150,767.50 SPONSORED BOND Accrued Interest 159,621.27 1.3 10,590,981.51 10,209,371.51 83.8 6.0 603,055.62 TOTAL PORTFOLIO 12,571,310.37 12,189,700.37 100.0 5.7 682,466.81 13 ICC Capital Management PORTFOLIO APPRAISAL PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME September 30, 2008 14 Unit Total Morlw Pct. Cur. Quantity Security Cost Cost Price Value Assets Yield CASH AND EQUIVALENTS CASH fi CASH EQUIVALENTS 1,980,328.86 1,980,328.86 16.2 4.0 1,980,328.86 1,980,328.86 16.2 4.0 CORPORATE BONDS 80,000.000 GENERAL ELECTRIC 110.79 86,629.60 102.37 81,895.20 0.7 8.1 CAP CROP 8.300% Due 09.20.09 235,000.01NI FI.EITMOSTON FINL 106.28 249,762.70 101.83 239,307.55 2.0 7.2 CORP 7.375% Due 12 -01 -09 280,0000111 )MORGAN CHASE & 108.76 304,525.20 101.99 285,S52.40 2.3 7.7 CO 7.87S% Due 06 -15 -10 200,000.000 LE --MAN MOTHERS 98.97 197,938.00 12.50 25,000.00 0.2 63.0 HLDG 7.875% Due 08.15- I0 200,000.000 GOLDMAN SACHS 104.05 208,096.00 95.59 191,184.00 1.6 7.2 6.8750,: 1 -I5 -11 6.875!: Due 01 -15 -II 2SS,000.000 CITIGROUP INC 104.86 267,383.25 96.98 247,299.00 2.0 6.7 6.500% Due 01 -18 -11 240,000.000 HARTFORD FINL 98.47 236,323.20 92.62 222,283.20 1.8 5.7 SVCSGRP 5.250% Due 10.15 -1 1 200,000.000 GOLDEN WEST FINL 97.82 195,640.00 76.51 153,022.00 1.3 6.2 4.750% Due 10 -01 -12 200,000.000 GOLDMAN SACHS 99.97 199,946.00 84.77 169,538.00 1.4 6.4 GROI IP INC 5.450% We 11.01.12 200,000.000 AT&T INC 100.30 200,592.00 95.80 191,600.00 1.6 5.2 4.950% Due 01 -15 -13 200,000.000 FII'ill THIRD RANK 99.88 199,770.00 84.99 169,978.00 1.4 7.4 NW -OIIIO 6.250% Due 05 -01 -13 135,000.000 NATIONAL RURAL 99.84 134,789.40 99.27 134,010.45 1.1 5.5 Irl'IL COOP 5.500% Due 07 -01 -13 85,000.0011 GOLDMAN SACHS 98.44 83,674.00 84.11 71,497.75 0.6 6.2 5.250%Due 10 -15 -13 100,000.000 JP MORGAN CHASE 99.68 99,682.00 92.10 92,105.00 0.8 5.3 4.875% Due 03 -15 -14 80,000.000 MORGAN STANLEY 98.28 78,620.80 53.01 42,408.00 0.3 9.0 4.750" /o Due 04 -01 -14 225,04M.000 GLAXOSMITIMLINE 99.85 224,669.25 94.87 213,448.50 1.8 4.6 CAP INC 4.373% Due 04-15-14 100,000.0011 GliNliRAI. I I,FC CAP 99.86 99,856.00 93.86 93,863 -00 0.8 5.9 C'ORI, 5.500:: the 1w -04.14 45,000.000 BEAR S EARNS 97.40 43,829.55 93.49 42,070 05 0.3 6.1 5.70004 Duc I1 -1S -14 63.000.000 GOLDAIAN SACHS 99.74 64,829.10 82.54 53,654.25 0.4 6.2 5.125:0 Due 01 -15- 15 50.000.000 11' MORGAN CHASE 101.59 50,797.00 91.91 45,953.00 0.4 5.7 5.250% Duc 0S -01 -15 14 ICC Capilal Management PORTFOLIO APPRAISAL PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Sepiember 30, 2008 Unit Tolal Market Pa. Cur. Quantity Security Cost Cost Price Value Assets Yleld 170,000.000 MERRILL LYNCII & 103.52 175,989 111 81.59 138,709.80 1.1 7.4 15 CO 6.050% Due 05-10-16 225.000.000 AT&T INC 101.36 228,071 25 9261 209.374.75 1.7 6.1 5.625% Due 06 -15 -16 150,000.000 MCDONALIA CORP 98.90 148,349 50 96.63 144,943.50 1.2 5.5 5.300% Due 03.15 -17 200,000.000 VERIZON 102.45 204,892.(X) 89.78 179,552.00 1.5 6.1 COMMUNICATIONS 5.500% Due 04-01 -17 100,000.000 NATIONAL RURAL 99,68 99,680.1111 93.24 93,243.00 0.8 5.8 U TIL ('OOL' 5.450% Due 04.10 -17 225,000.000 MCDONALD'S C'ORI' 102.47 230,555.25 99.44 223,746.75 1.8 5.8 5.800% Due 10- 15-17 115,000.000 CONS EDISON CO OF 99.96 114,949.40 94.94 109,179.85 0.9 6.2 NY 5.850% Due 04.01 -18 305,000.000 CONOCO INC 115.80 353,187.65 100.34 306,650.05 2.5 6.9 6.9505: Due 04.15 -24) 55,000.000 ARCHER DANII:1 S 92.24 50,729.80 78.32 43,074.90 0.4 6.9 5.375% Due 09.15 -35 Accrued Interest 92,797.18 0.8 4,835,756.00 4,30S,941.13 35.1 6.7 GOVERNMENT BONDS 530,000.000 US TREASURY 98.38 521,422.32 103.25 547,225.00 4.5 4.4 4.500% Due 05.15 -38 Accrued Interest _ 8,943.75 _ 0.1 521.422 32 556,168.75 4.6 4.4 MORTGAGE POOLS 35,247.220 GN1O M #781313 10112 36,348.70 103.46 36,466.07 0.3 5.8 6.000% Due 07.15 -16 93,695.370 FNCI M #254371 99.56 93,285.45 101.80 95,380.01 0.8 5.4 5.500% Due 07.01 -17 5,447.440 FGCI N #1113455 99.71 5,431.38 98.09 5,343.50 0.0 4.6 4.500% Due 04 4)1 -19 100,592.390 FNCI N #725445 96.09 96,661.65 98.22 98,798.81 0.8 4.6 4. S(X)% Due 014)1.19 52,854.840 M1 N #825335 97.31 51,434.36 95.31 50,376.48 0.4 4.2 4.000% Due 05 .0 1.20 57.683.240 FNCI N #255888 97.31 56,133.01 95.31 54,978.47 0.5 4.2 4.000% Due 0" 1 -20 50,126.330 FNCI N #829053 97.00 49,622 54 95.31 47,775.91 0.4 4.2 4010% Duc 09.01.20 128,198.110 FGCI #G 12205 96.48 123,691.14 97.73 125,350.83 1.0 4.6 4.500% Duc 06.01 -21 7,164.732 FGCI N #(112323 95.88 6,869.19 97.78 7,005.60 0.1 4.6 4.500% the 0" 1 -21 141,056.940 GNSF M #552509 98.77 139,315.77 101.85 143.663.67 1.2 5.9 6.000% Duc 04 -15 -32 39,009.950 GNSF M #592153 99.83 3X.942.90 101.85 39,730.85 0.3 5.9 6.000% Due 06 -15 -32 786,685.003 FGLMC #602268 102.08 803. 033.97 102.67 907,658.03 6.6 6.3 6.500% Duc 0" 1 -36 15 GOVERNMENT SPONSORED [FOND 460,000.000 FIILMC ICC Capital Management 479,433.10 106.75 491,050.00 4.0 5.6 PORTFOLIO APPRAISAL 6.000% Duc 06 -I5 -11 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME 350,000.000 September 30, 2008 99.65 348,775.00 100.69 352,408.00 2.9 Unit Total Market Pet. Cur. Quantity Security Cost Coll Price Value Assets Yield 673,645.090 1•NCLtt256394 102.00 687,118.22 102.65 691,516.89 5.7 6.3 4.4 6.500% Due 09 -01.36 4.375% Due 05 -13 -13 249,310.392 G2 POOUI 4195 99.89 249,037.41 101.44 252,905.45 2.1 5.9 299,490.00 6.000% Due 07 -20 -38 305,1800 2.5 5.9 6.000% Due 07 -W 17 Accrued Interest 11,700.04 0.1 300,000.000 2,435,925.60 2,468,650.64 20.3 5.9 GOVERNMENT SPONSORED [FOND 460,000.000 FIILMC 104.22 479,433.10 106.75 491,050.00 4.0 5.6 6.000% Duc 06 -I5 -11 350,000.000 FANNIE MAE 99.65 348,775.00 100.69 352,408.00 2.9 4.2 4.250% Due 06-24-11 225,000.000 FREDDIE MAC 100.00 225,000.00 99.99 224,973.00 1.8 4.4 4.375% Due 05 -13 -13 300,000.000 FREDDIE MAC 99.83 299,490.00 101.73 305,1800 2.5 5.9 6.000% Due 07 -W 17 300,000.000 FREDDIE MAC 99.70 299,100.00 99.62 298,866.00 2.5 5.0 5.000% Due 04 -30 -18 200,000.000 FANNIE MAE 99.20 198,394.00 102.53 205,062.00 1.7 5.9 6.000% Due 04 -28 -21 265,000.000 FANNIE. MAE 99.32 263,198.00 100.94 267,485.70 2.2 5.6 5.625% Due 11-15-21 300,000.000 FREDDIE MAC 98.63 295,890.00 101.08 303,249.00 2.5 5.8 5.900% Due 06 -15 -22 255,000.000 FANNIE MAE 99.45 253,597.50 99.59 253,964.70 2.1 5.5 5.500% Due 12 -14.22 135,000.000 FANNIE MAE 100.00 135,000.00 96.44 130,191.30 1.1 5.2 5.050% Due 09 -29 -23 Accrued Interest 46,180.29 0.4 _ 2,797,877.60 2,878,610.99 23.6 5.3 TOTAL PORTFOLIO 12,571,310.37 12,189,700.37 100.0 5.7 16 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Review Quarter Fnding September 30, 2008 1c C 1.:11)11111 AlallagenIC)lt lire. PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investntent Performance Report Quarter Ending September 30, 2008 Total Return Summary Page...... 1 Portfolio Allocation Page...... Investment Performance by Asset Category Page...... Portfolio Sector Diversification Page...... -1 Investment Performance by Sectors Page...... 5 Portfolio Attributes Page...... h Brokers Commission Page...... 7 Purchases & Sales Page...... 9 Realized Gains/ Losses Page...... '1 "1 Portfolio Summary Page...... 12 Portfolio Appraisal Nee...... 13 lCC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND GROWTH Total Return Stuninary Quarter Ending September 30, 2008 Starting Valtte I $3,704,643 I $2,327,085 Ending Va 1 ite $3,015,076 $3,015,076 Difference ($689,567) $687,991 Net Contributions/ (Withdrawals) 1 ($110,673) 1 51,818,398 GabV(Loss) from Investments 1 ($578,894) 1 ($1, TOTAL RETURN 1 - 16.14 "' /,) 1 - 28.80% 1CCCapital Man(19011 ,rt, 1uc. PALM BEACH GARDENS POLICE PENSION FUND GR01\'TH Portfolio Allocation at Market Quarter Ending September 30, 2008 Market Value as of 06/30/03 Market Value as of 09/30/2008 Asset Allocation: 100 /0 (Mk t) CAST I// EQUIVS 18.10. CASH / EQU I V5 5.10/., EQUITY 81.9010 EQUITY 91.9 I( t Captal Ai,magotictil. In,. 2 Mkt Value as of 06/30/08 Mkt Value'% as of 06/30/08 Mkt Value as of 09/30/08 Mkt Value % as of 09/30/08 Casl�/E uivs 5671,031 111.1 "� 5152,900 5.1 °a Equity 53,033,612 81.9 1,14, 52,862,176 94.9 96 Total 53,704,643 100.0`3111 $3,015,076 100.0% I( t Captal Ai,magotictil. In,. 2 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Performance by Asset Category Quarter Ending September 30, 2008 i arter 0.00 -5.00 -10.00 -15.00 -20,00 -17.59 -25.00---- - -- - NQU 1.1'Y One Year 0.00 - 10.00 -- -20.00 -30.00- -40.00- -30.82 EQUITY ■.ACCOL \ r 01\1)i:x� -16.14 TOTA 1, ■ACCOUNT ■INDEX -28.80 TOTAL II C Gy+rtel mururgrnrrrrf, 111L. The red tctnf bar re)rrsrrt the RrsMll 70Grru tl Index. 3 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Portfolio Sector Diversification Quarter Ending September 30, 2008 Top Security Ten Holdings % of equities Return for Quarter TARGET CORPORATION 5.83% 5.70% MICROSOFT CORP. 5.59% -3.04% TAIWAN SEMICONDUCTOR MFG 4.84% - 10.50`%6 EMC CORP. 4.18 % -19.920/'. ABBOTT LAB COMPANY 4.02010 8.11% PEPSICO INC. 3.98% 12.27% EQUINIX INC. 3.64% - 21.97 0% ECOLAB INC. 3.56% 13.22% BRISTOL MYERS WQUIBB COMPANY 3.50% 2.04% KOHLS CORP. 3.38% 14.45% Sector Sector Contribution o of Portfolio Return for Quarter Materials 9.22° - 22.40% Industrials 9.61% -5.51% Telecommunications 5.77% - 17.24% Consumer Discretionary 10.77% 4.36% Consumer Staples 7.52 °10 -7.09% Energy 2.94 % - 43.83% Financials 1.69% - 36.00% Health Care 14.32% -3.42% Information Technology 34.830/0 - 25.66% Utilities 3.35% -25.51% ]cc t, lnt. 4 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Petforniance by Sectors Quarter Ending September 30, 2008 Index Sector Returns for 3Q08 10.0 0.0 • -10.0- - 20.0 . -30.0 -4t1.0 -30.1 -50.0 4.5 �jti /hey -33.9 -35.5 Cyr Ell, �14> `IC. i "4 t °h spit sOh d,D i0i 4h�' �i Sri r `d A/ t Vii. °hv Sector Diversification Relative to the Russell 1000 Growth Index ]CC capital 15.0 10.0 5,4 5.0 6.3 OVERWEIGHT 5.0 1.3 042 1.6 0.0 -5.0 -3.5 -2.8 -10.0 UNDE -6.1 -7.3 _i•;n A e wient, hic. ev ct, fir` ASV �f� `Sh A 5 / ice`• °h!' ho Sector Diversification Relative to the Russell 1000 Growth Index ]CC capital 15.0 10.0 5,4 5.0 6.3 OVERWEIGHT 5.0 1.3 042 1.6 0.0 -5.0 -3.5 -2.8 -10.0 UNDE -6.1 -7.3 _i•;n A e wient, hic. ev ct, fir` ASV �f� `Sh A 5 / ice`• °h!' .w, ' PALM BEACH GARDENS POLICE PEENSION FUND GROWTH Growth Portfolio A ribrltes Quarter Ending September 30, 2008 CAPITALIZATION 9 30 2008 60012008 3V31,200 8 1213 007 MARK£TCAPI7ALIZATION' 0+ [CC 48.6 49.9 49.0 55.4 Rl=)G � 777 8 80.8 92.7 101.( 125.0 927 101.0 ook mow. BETA ICC R I M)G 1 1 YIELD ICC R l OOQG i .a 9130V2008 008 3V3112 1.15 1.16 1.20 1.11n I.(A) 100 9/30/2008 6/399008 3131A008 1.47 1.05 1.26 1.61 1.17 1.46 100.0 75.0 ''WA-A. ; , x so.6 ijid- "/30.120OR 6/30/ -Nw 3/11/208,8 12/31/2007 11 ! 1.50 • BETA 1.11 1.13 1.16 I'll 1.11 i 1.00 1.00 1.00 1.00 1.00 I.oO - I 0.50 o.1) : - - 9/30/2008 6/30/20W 3;131;20M 12!71/2007 1.55 1.31 2.0 1.61 1.6 - 1.47 1.17 1.2 _ 1.05 08 - 0A 0.0 9/30/2004 6/30/2003 YlFLD 1.4b 1.3i 1.26 I.JI 3,'31/2008 12i 11i2t1f17 PIE 9/30/'200 3 008 3 31 008 1 31 7 PRICIY£•1RNINGS 1° ICC 15.3 20.5 21.1 22.5 30.0 , 20.; 21.1 -2 R1000G 1.1.1 16.2 16.7 18.4 20.0 13.,3 14.a 16.2 16.7 lx.a 10.0 - Ak 0.0 - 9/30/2006 6/30/2008 3/31/2008 12/31/200; 12 MONTH EPS GROWTH 9 0 008 6/3Q(20 3/319008 l 3 12 MOUTH EPS GROliTH ICC 18.9 27.6 17.4 30.1 70.0 - R 10(X)0 27.3 29.6 25.8 30.6 30.0. 271 1-7.6 296 23.8 30.1 30.6 2011. 17.1 10.0 0.0 - -- �., 9/30/2006 6/30/2008 3!31/2008 12/31'2007 5 YEAR EPS GROVM1 91301200 6/30/2008 V31,QOO 8 l ,1 ; YR EPS r.RO�� rIl ICC 25.•1 30.7 21.9 24.9 40.0 - 3U.7 R70(N)G 23.1 24.8 23.3 23.2 10.0 25.s X3,1 za a 21.9 23.3 24.9 23,2 20.0 10.0 - Alk 0.0 9/30/2006 6/3012008 3!31!2008 12/31!2007 .w� ICC Capffal Alallagement, lar. 6 r„ PALM BEACH GARDENS POLICE PENSION FUND GROWTH Broker Commission Summary Report Quarter Ending September 30, 21008 Date Trans Ticker Securihl SAutount Shares Price Comm PerSh Donaldson & Co. - Donaldson 8/29/2008 Sell TSM Taiwan Semiconductor Mfg 56.94 1 570.56 50.00 Total: Donaldson & Co. - Donaldson 56.94 1 $0.00 The Griswold Company 8/13/2008 Buy ADM Archer Daniels Midland Co $2,693.00 100 S26.91 $2.00 50.02 8/13/2008 Buy AMT American Tower Corporation $16,972.00 400 S42.41 $8.00 50.02 8/13/2008 Buy BMY Bristol Myers Squibb Company $13,278.00 600 S22.11 512.00 50.02 8/13/2008 Buy BRCM Broadcom Corp $2,653.38 100 526.51 82.(x) $0.02 8/13/2008 Buy CVS Cvs Caremark Corp $11,166.00 300 S37.20 $6.00 50.02 8/13/2008 Buy Cl-NIT California Water Service Grp $11,537.01 300 538.44 56.00 50.02 8/13/2008 Buy ECL Ecolab Inc $9,054.00 200 S45.25 $4.00 $0.02 8/13/2008 Buy EMC Emc Corp $17,988.00 1200 S14.97 S24.00 50.02 8/13/2008 Buy EQIX Equinix Inc 57,622.00 100 S76.20 52.00 50.02 8/13/27008 Buy JDSU Jds Uniphase Corp $2,214.00 200 S11.05 54.00 50.02 8/13/2008 Buv KSS Kohls Corp $4,750.00 100 547.48 S2.00 50.02 8/13/2008 Buy MS Morgan Stanley $8,032.00 200 $40.14 51.00 50.02 8/13/2008 Buy MSIFT Microsoft Corp. $22,456.00 800 $28.05 $16.00 50.02 8/13/2008 Buy MU Micron Technology Inc $2,580.00 500 $5.14 S1 0.(X) $0.02 8/13 /2008 Buv NTAP Netapp Inc $2,573.00 100 525.71 $2.00 S0.02 8/13/2008 Buy PEP PepsiCo Inc. 513,882.00 200 569.39 $4.00 $0.02 8/13/2008 Buy RIO Companhia Vale Do Rio Doce A S10,032.00 400 $25.06 $8.00 50.02 8/13/2008 Buy SPN Superior Energy Services Inc $1,636.00 100 $46.34 $2.00 50.02 8/13/2008 Buy SUPG Supergen Inc $5,573.70 3000 51.84 $60.00 50.02 8/13/2008 Buy TGT Target Corporation S19,324.00 400 W-29 58.00 $0.02 8/13/2008 Buy TSM 'Taiwan Semiconductor Mfg $3,111.00 300 $10.35 $6.00 50.02 8/13/2008 Buy TXN 'Texas Instrs Inc $2,634.00 100 S26.32 $2.00 $0.02 8/13/2008 Buy UPS United Parcel Svc Inc $6,379.00 100 563.77 $2.00 $0.02 8/13/2008 Buy UTX United Technologies Corp. $6,549.00 100 565.47 $2.00 S0.02 8/13/2008 Sell N1RVL Marvell Technology Group $1,605.99 100 $16.08 52.00 50.02 8/13/2008 Buy ABT Abbott Lab Com $17,697.00 300 $58.97 S6.00 $0.02 Total: The Griswold Company 5226,992.08 10,300 $206.00 $0.02 Kellogg Securities 8/19/2008 Buv NIAI Newmont Mining Corp $68,867.84 1600 543.02 532.00 50.02 9/25/2008 Bur GI: General Electric Co. $82,314.88 3200 S25.70 S64.00 $0.02 Total: Kellogg Securities $151,182.72 4,800 596.00 $0.02 Edgetrade 2 8/8/2008 Buy 'I'NB Thomas &- Betts Corp $54,173.40 1200 $45.13 S12.00 S0.01 8/8/2008 Buy CEG Constellation Energy Group Inc. S51,732.52 700 $73.89 $7.00 S0.01 8/12/2008 Sell WM Washington Mutual $9,210.13 2100 51.40 $21.00 $0,01 8/12/2008 Sell WM Washington Mutual S877.15 200 54.40 $2.00 $0.01 8/12/2008 Sell WM Washington Mutual $9,648.70 2200 $4.40 $22.00 $0.01 1CCCapital Manage►►tent, Inc. A PALM BEACH GARDENS POLICE P NSION FUND GROWTH Commission Conission Su» ntnrlf Report Quarter Ending September 30, *8 Ift -41 ICC C t, lit . 8 Date Trans Ticker Security $Amount Shares Price Conlin PerSh 8/13/2008 Buy NUE Nucor Corp $52,638.90 1000 $52.63 510.00 $0.01 8/15/2008 Sell AAPL Apple Computer Inc $8,933.48 50 $178.68 51.00 50.01 8/15/2008 Sell AAPL, Apple Computer Inc $26,800.45 150 $178.68 $2.00 $0.01 8/15/2008 Sell AMT American'rowerCorporation $38,109.57 900 $42.35 $9.00 $0.01 " 8/15/2008 Sell AMT American Tower Corporation 529,640.77 700 542.35 S7.00 $0.01 9/25/2008 Buy TNB Thomas & Betts Corp S12,275.76 300 $40.91 53.00 $0.01 Total: Edgetrade 2 $294,010.83 9,500 $95.00 $0.01 Ift -41 ICC C t, lit . 8 ICC Capital Manage ent PURCHASE AND ALE PALM BEACH GARDENS POLICE PE SION FUND GROWTH From 06 -30 -08 To 09- 0-08 Trade Settle Unit Date Date Quantity Security Price Amount PURCHASES 08 -13 -08 08 -18 -08 08 -13 -08 08-18-08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -I8 -08 08 -08 -08 08 -13 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 09 -25 -08 09 -30 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 08 -19 -08 08 -22 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 08 -08 -08 08 -13 -08 09 -25 -08 09 -30 -08 08 -13 -08 08 -18 -08 08 -13 -08 08 -18 -08 SALES 08 -15 -08 08 -20 -09 300.00 ABBOTT LAB COM 400.00 AMERICAN TO CORPORATION 100.00 ARCHER DANIELS MI LAND CO 600.00 BRISTOL MYERS SQUI B COMPANY 100.00 SROADCOM CORP 300.00 CALIFORNIA WATER SERVICE GRP 400.00 COMPANHIA VALE DO RIO DOCE ADR 700.00 CONSTELLATION ENE GY GROUP INC. 300.00 CVS CAREMARK CORP 200.00 ECOLAB INC 1,200.00 EMC CORP 100.00 EQUINIX INC 3,200.00 GENERAL ELECTRIC CO. 200.00 JDS UNIPHASE CORP 100.00 KOHLS CORP 500.00 MICRON TECHNOLOGY INC 800.00 MICROSOFT CORP. 200.00 MORGAN STANLEY 100.00 NETAPP INC 1,600.00 NEWMONT MINING CORP 1,000.00 NUCOR CORP 200.00 PEPSICO INC. 3,000.00 SUPERGEN INC 100.00 SUPERIOR ENERGY SE VICES INC 300.00 TAIWAN SEMICONDUCTOR MFG 400.00 TARGET CORPORATIO 100.00 TEXAS INSTRS INC 1,200.00 THOMAS & BETTS CO 300.00 THOMAS &BETTS CORO 100.00 UNITED PARCEL SVC C 100.00 UNITED TECHNOLOGIE CORP. 900.00 AMERICAN TOWER CORPORATION 9 58.99 17,697.00 42.43 16,972.00 26.93 2,693.00 22.13 13,278.00 26.53 2,653.38 38.46 11,537.01 25.08 10,032.00 73.90 51,732.52 37.22 11,166.00 45.27 9,054.00 14.99 17,988.00 76.22 7,622.00 25.72 82,314.88 11.07 2,214.00 47.50 4,750.00 5.16 2,580.00 28.07 22,456.00 40.16 8,032.00 25.73 2,573.00 43.04 68,867.84 52.64 52,638.90 69.41 13,882.00 1.86 5,573.70 46.36 4,636.00 10.37 3,111.00 48.31 19,324.00 26.34 2,634.00 45.14 54,173.40 40.92 12,275.76 63.79 6,379.00 65.49 6,549.00 547,389.39 42.34 38,109.57 t1-N a ! lam` (All ICC Capital Manag ent PURCHASE AND SALE PALM BEACH GARDENS POLICE Ph NSION FUND GROWTH From 06 -30 -08 To 09- D -08 Trade Settle 42.34 Date Date Quantity Security 08 -15 -08 08 -20 -08 700.00 AMERICAN TOWER 1,605.99 R MFG 10.56 CORPORATION 08 -15 -08 08 -20 -08 50.00 APPLE COMPUTER IN 08 -15 -08 08 -20 -08 150.00 APPLE COMPUTER IN 08 -13 -08 08 -18 -08 100.00 MARVELL TECI-INOL< 08 -29 -08 08 -29 -08 0.66 TAIWAN SEMICONDL 08 -12 -08 08 -15 -08 200.00 WASI•IINGTON MUTU 08 -12 -08 08 -15 -08 2,100.00 WASHINGTON MUTU 08 -12 -08 08 -15 -08 2,200.00 WASHINGTON MUTU to Unit Price Amount 42.34 29,640.77 178.67 8,933.48 178.67 26,800.45 GROUP 16.06 1,605.99 R MFG 10.56 6.94 4.39 877.15 4.39 9,210.13 4.39 9,648.70 124,833.18 ICC Capital Management REALIZED GAINS A LOSSES PALM BEACH GARDENS POLICE PEIVS10N FUND GROWTH From 06 -30 -08 Through -30 -08 TOTAL REALIZED GAIN/LOSS - 17,702.52 Gain Or Loss Open Close Cost Dale Date Quantily Security Basis Procceds ShorlTerm Long Term 01 -28 -08 08 -12 -08 200.00 WASIIINGTON MUTUAL 3,377.72 877.15 - 2,500.57 03 -07 -08 08 -12.08 2,100.00 WASIIINGTON MUTUAL 24,49;.44 9,210.13 - 15,289.31 03 -07 -08 08 -12.08 2,200.00 WASIIINGTON MUTUAL 22,896.94 9,648.70 - 13,248.24 09 -27 -07 08.13.08 100.00 MARVELLTECIINOLOGY 1,645.19 1,605.99 -39.20 GROUP 07 -26 -07 08.15.08 50.00 APPLE COMPUTER INC 7 .37 i.00 8,933.48 1,557.48 08 -14 -07 08 -15 -08 150.00 APPLE COMPUTER INC 18,7 .74 26,800.45 8,095.70 03 -01 -07 08 -15 -08 900.00 AMERICAN TOWER 34,46 .99 38,109.57 3,647.58 CORPORATION 07 -26 -07 08 -15.08 700.00 AMERICAN TOWER 29,5 .00 29,640.77 72.77 CORPORATION 01 -28 -08 08 -29 -08 0.66 TAIWAN .67 6.94 1.27 SEMICONDUCTOR MfG TOTAL GAINS 1.27 13,373.53 TOTALLOSSES - 31,077.32 0.00 142,535.70 124,833.18 - 31,076.05 13,373.53 TOTAL REALIZED GAIN/LOSS - 17,702.52 " « r� r� fill fm eft oft l� Mk ICC Capital Management PORTFOLIO SUMMARY PALM BEACH GARDENS POLICE PENSION FUND GRO «'TH September 30, 2008 Security Type Pct. Cur. Est.Annual Total Cost Market Value Assets Yield Income Cash & Equivalents CASH AND 152,899.85 152,899.85 5.1 4.0 EQUIVALENTS _ 152,899.85 152,899.85 5.1 4.0 Equities COMMON STOCK MATERIALS 312,603.15 263,730.50 8.7 1.1 INDUSTRIALS 303,482.10 274,884.00 9.1 2.6 TELECOMMUNICATIONS 175,062.37 165,339.00 5.5 0.0 CONSUMER 357,660.21 308,011.00 10.2 0.6 DISCRETIONARY CONSUMER 241,165.78 215,392.00 7.1 1.0 STAPLES ENERGY 95,982.70 84,078.00 2.8 0.0 FINANCIALS 99,805.88 48,300.00 1.6 4.7 HEALTH CARE 515,854.21 409,787.00 13.6 2.2 INFORMATION 1,462,259.71 996,719.21 33.1 0.9 TECHNOLOGY UTILITIES 131,654.12 95,935.00 3.2 3.3 COMMON STOCK 3,695,530.23 2,862,175.71 94.9 1.3 3,695,530.23 94.9 1.3 2,862,175.71 TOTAL PORTFOLIO 3,848,430.08 3,015,075.56 100.0 1.5 12 6,086.08 6,086.08 2,896.51 7,252.00 0.00 1,904.00 2,256.00 0.00 2,268.00 8,832.00 9,225.91 3,196.50 37,830.92 37,830.92 43,917.00 eft fl-ft Mk t` ^ t� eft lam' f� t� t-IRA f"k tom` f� tom` Pte' f� Pte` lam` ICC Capital Management PORTFOLIO APPRAISAL PALM REACH GARDENS POLICF. PENSION FUND GROWTH September 30, 2009 13 Unil 11'0101 Market I'ct. Cur. Quantity Security Cost Cast Price Value Assets Yield CASH AND EQUIVALENTS CASII &c CASH I'Qt11VALL'NTS 151,772.60 151,772.60 5.0 4.0 DIV CASH ACCRUAL ACCT 1,127.25 1,127.25 00 ? 152,899.83 152,899.85 5.1 4.0 COMMON S'I'OCK MATERIALS 3,150.00 C'ONIPANIHAVALF 30.77 90924.19 19.15 60,322.50 2.0 0.5 DO R10 DOCI-' ADR 2,100.00 ECOLAIlINC 44.84 94,172.22 48.52 101,892.00 3.4 1.1 1,600.00 NEWMONf MINING 43.04 68,867.84 38.76 62,016.00 2.1 1.0 CORP 1,000.00 NUCOR CORP 52.64 - 52,638.90 39.50 39,500.00 1.3 2.1 312,603.13 263,730.50 8.7 1.1 INDUSTRIALS 3,200.00 GENERAL 17.ECTRK' 2572 82,314.88 25.50 81,600.00 2.7 4.9 CO. 1,500.00 THOMAS A BE ITS 44.30 66,449.16 39.07 56,605.00 1.9 0.0 CORP 900.00 UNITED PARCEL SVC 73.29 65,960.39 62.89 56,601.00 1.9 2.9 INC 1,300.00 UNITED 68.28 88,757.67 60.06 78,078.00 2.6 2.1 TECHNOLOGIES CORP, _ 303,482.10 274,884.00 9.1 2.6 "I'ELECOMMLMICATIONS 1,700.00 AME-RICANTOWER 41.48 70,522.00 35.97 61,149.00 2.0 ? CORPORATION 1,500.00 L'QUINIX INC 69.69 104,540.37 69.46 104,190.00 3.5 7 175,062.37 165,339.00 5.5 0.0 CONSUMER DISCRETIONARY 1,300.00 GAM ESTOP C'ORP -C1. 45.72 59,442.27 34.21 44,473.00 1.5 A 2,100.00 KOIILS ('0121' 45.72 96,005.92 46.08 96,768.00 3.2 0.0 3,400.00 TARGET 59.47 202,212.02 39.05 166,770.00 5.5 1.1 CORPORATION �- 357,(,10.21 308,011.00 10.2 0.6 CONSUMER STAPLES 1,400.00 ARCHER DANIH S 39.76 55,664.00 21.91 30,674.00 10 2.4 MIDLAND CO 2,100.00 C'VSCAREMARK 36.00 75,004.00 33.66 70,686.00 2.3 0.7 CORP 1,600.00 PEPSIC'OINU. 68.69 -- - 1_09,89_7.78 71.27 114,032.00 3.8 0.9 241,165.78 215.392.00 7.1 1.0 ENERGY 2,700.00 SUPERIOR I:NI ?R(iY 35.55 91.982.7D 31.14 84,078.00 2.8 ? SGRVK'I:S INC - -- 95,982.70 84,078.00 2.8 0.0 13 eel (01 (W Oft rte' r!u► ft!11' l� to^ 14% (01 (Am (1fA Ow, 14 [CC Capital Management PORTFOLIO APPRAISAL PALM BEACH GARDENS POLICE PENSION FUND GROWTH September 30, 1008 Unit Total Market Pct. Cur. Quantity Securit Cost Cost Price Value Assets Yickl FINANCIALS 2.100.00 MORGAN STANLEY 47.53 99,805.88 23.00 __ 48,300.00 1.6 4.7 99,805.88 48,300.00 1.6 4.7 HEALTH CARE 2,000.00 ABB07T LAB COM 54.07 108,131.00 57.58 115,160.00 3.8 2.5 1,400.00 BIOGEN INC 62.92 88,091.97 50.29 70,406.00 2.3 0.0 4,800.00 BRISTOL MYERS 23.45 1 12,539.48 20.85 100,080.00 3.3 5.9 SQUIBB COMPANY 2,000.00 CERNER CORI' 54.42 108,840.99 44.64 89,280.00 3.0 0.0 24,550.00 SUPERGEN INC 4.00 _ 99,250.77 1.42 34,861.00 1.2 ? 515,854.21 409,787.00 13.6 2.2 INFORMATION TECHNOLOGY 850.00 APPLE COMPUTER 145.44 123,627.01 113.66 96,611.00 3.2 0.0 INC 4,800.00 BROADCOM CORP 31.75 152,406.23 18.63 89,424.00 3.0 0.0 10,000.00 EMC CORP 18.65 186,492.11 11.96 119,600.00 4.0 0.0 8,800.00 JDS UNIPHASE CORP 14.49 127,547.71 8.47 74,536.00 2.5 0.0 10,300.00 MARVELL 13.47 138,720.20 930 95,790.00 3.2 0.0 TECHNOLOGY GROUP 19,300.00 MICRON 7.28 140,535.88 4.05 78,165.00 2.6 0.0 TECHNOLOGY INC 6,000.00 MICROSOFTCORP. 31.96 191,760.26 26.69 160,140.00 5.3 1.6 2,750.00 NETAPP INC 28.77 79,105.07 18.23 50,132.50 1.7 ? 14,783.00 TAIWAN 10.14 149,885.39 9.37 138,516.71 4.6 3.9 SEMICONDUCTOR Mm 3,000.00 TEXAS INSTRS INC 32.50 97,507.00 21.50 64,500.00 2.1 1.9 1,100.00 VMWARE INC -r LASS 67.88 74,672.84 26.64 29,304,00 1.0 ? A 1,462,259.71 996,719.21 33.1 0.9 UTILITIES 2,050.00 CALIFORNIA WATER 38.99 79,921.60 38.50 78,925.00 2.6 3.0 SERVICE GRP 700.00 CONSTELLATION 73.90 51,732.52 24.30 17,010.00 0.6 4.7 ENERGY GROUP INC. 131,654.12 95,935.00 3.2 3.3 COMMON STOCK Total 3,695,530.23 2,862,175.71 94.9 1.3 TO "I'Al, PORTFOLIO 3,848,430.08 3,015,075.56 100.0 1.5 14 Vote Summary Report Jul 01, 2008 - Sep 30, 2008 Vol Palm Beach Gardens Police Fund Pft Mtg Company/ Mg t Vote Record Shares Date/Type Ballot Issues Security Re,� Cast Date Prpnent Voted 07/11/08 - A Marvell Technology Group G587611105 05/23/08 10,400 Ltd *MRVL* This is a duplicate meeting for ballots received via the Broadridge North American Ballot distribution system. 1 ELECTION OF CLASS 1 DIRECTOR: For For Mgmt JOHN G. KASSAKIAN 2 ELECTION OF CLASS 2 DIRECTOR: For Against Mgmt KUO WEI (HERBERT) CHANG 3 ELECTION OF CLASS 2 DIRECTOR: For For Mgmt JUERGEN GROMER, PH.D. 4 ELECTION OF CLASS 2 DIRECTOR: For For Mgmt ARTURO KRUEGER 5 RATIFY AUDITORS For For Mgmt 09102/08 - A NetApp, Inc. *NTAP* 6411OD104 07/09/08 2.650 1 Elect Directors For Split Mgmt 1.1 Elect Director Daniel J. Warmenhoven -- - Withhold 1.2 Elect Director Donald T. Valentine -- Withhold 1.3 Elect Director Jeffry R. Allen --- Withhold 1.4 Elect Director Carol A. Bartz -- Withhold 1.5 Elect Director Alan L. Earhart --- For 1.6 Elect Director Thomas Georgens --- Ift Withhold OW 1.7 Elect Director Edward Kozel -- For 1.8 Elect Director Mark Leslie — For 1.9 Elect Director Nicholas G. Moore --- For 1.10 Elect Director George T. Shaheen For 1.11 Elect Director Robert T. Wall --- Withhold 2 Amend Omnibus Stock Plan For Against Mgmt 3 Amend Omnibus Stock Plan For Against Mgmt 4 Amend Qualified Employee Stock For For Mgmt Ift Purchase Plan 5 Ratify Auditors For Against Mgmt 191, fW1 09/09/08-S VMWARIE INC *VMW* 928563402 08/07/08 1.100 1W 1 Approve Stock Option Exchange For Against Mgmt Program 10, Mgmt Rec; - Company Management Recommended Vote Pagel Z�ijiStlE .�SSEt CCAITSIIittlivi Palm Beach Gardens Police Pension Fund Executive Summary Report Table of Contents SECTION PAGE Market Snapshot 1 Index Comparisons 2 Compliance Report 3 Total Portfolio Pie Chart 4 Manager Pie Chart 5 Asset Allocation Table 6 Total Ranks Table 7 Manager Ranks 8 Scatterplot Graphs: Total Fund Graph 9 Rhumbline Equities Graph 10 ICC Fixed income Graph 11 Beta Graph 12 Alpha Graph 13 Beta /Alpha Table 14 Batting Average Graph 15 Batting Average /R-Squared Table 16 Other Managers' Page 17 ��hisfle Asset 0nnsulting SW T 111-sttle Assrt Tonsutting w ■ Major Economic Indicators MARKET SNAPSHOT 3RD QUARTER 2008 INDEX RETURNS Lehman Aggregate ♦ The CPI- Urban/1982 -84 =100 for the 12 -month period ended September 2008 rose 4.9 %. In the third quarter, consumer prices rose at a seasonally adjusted annual rate of 2.6 %. ♦ The Producer Price Index (PPI) for finished goods rose 8.7% for the 12 -month period ended in September. The seasonally adjusted annual rate for the third quarter is -0.4 %. ♦ Real Gross Domestic Product (GDP) rose at a seasonally adjusted annual rate of 2.8% for the second quarter of 2008 and 0.9% in the first quarter of 2008. ♦ The seasonally adjusted unemployment rate is 6.1% in September compared to 5.5% in June. "THISTLE ASSET CONSULTING 1321 Piazz Delle Pallottole, Boynton Beach, Florida 33426 -0.48% 0.64% Federal Reserve News ♦ During the third quarter, the Federal Reserve Board cut the primary discount rate by 0.50% to 1.75 %. The primary discount rate is a result of the new discount rate program approved by the Federal Reserve Board on October 31, 2002. The primary discount rate is the interest rate the Federal Reserve charges banks for short-term loans. ♦ The Federal Reserve Open Market Committee cut its target for the federal funds rate by 0.50% to 1.50% in the third quarter. The federal funds rate is the interest rate banks charge each other for overnight loans. Sector Trends ♦ Best Performing Sector: Consumer Staples increased 4.14% in the 3rd quarter. ♦ Worst Performing Sector: Energy declined 24.95% in the 3`d quarter. Source: Standard & Poors (Performance reflects Price Returns Only) QTR YTD S &P 500 -8.37% - 19.29% Russell 1000 -9.35% - 19.50% Russell 1000 Growth - 12.33% - 20.27% Russell 1000 Value -6.11% - 18.85% S &P Mid -cap 400 - 10.87% - 14.34% MSCI EAFE - 20.50% - 28.91% Lehman Aggregate ♦ The CPI- Urban/1982 -84 =100 for the 12 -month period ended September 2008 rose 4.9 %. In the third quarter, consumer prices rose at a seasonally adjusted annual rate of 2.6 %. ♦ The Producer Price Index (PPI) for finished goods rose 8.7% for the 12 -month period ended in September. The seasonally adjusted annual rate for the third quarter is -0.4 %. ♦ Real Gross Domestic Product (GDP) rose at a seasonally adjusted annual rate of 2.8% for the second quarter of 2008 and 0.9% in the first quarter of 2008. ♦ The seasonally adjusted unemployment rate is 6.1% in September compared to 5.5% in June. "THISTLE ASSET CONSULTING 1321 Piazz Delle Pallottole, Boynton Beach, Florida 33426 -0.48% 0.64% Federal Reserve News ♦ During the third quarter, the Federal Reserve Board cut the primary discount rate by 0.50% to 1.75 %. The primary discount rate is a result of the new discount rate program approved by the Federal Reserve Board on October 31, 2002. The primary discount rate is the interest rate the Federal Reserve charges banks for short-term loans. ♦ The Federal Reserve Open Market Committee cut its target for the federal funds rate by 0.50% to 1.50% in the third quarter. The federal funds rate is the interest rate banks charge each other for overnight loans. Sector Trends ♦ Best Performing Sector: Consumer Staples increased 4.14% in the 3rd quarter. ♦ Worst Performing Sector: Energy declined 24.95% in the 3`d quarter. Source: Standard & Poors (Performance reflects Price Returns Only) 15.00 5.00 -5.00 s d `x -15.00 -25.00 -35.00 Index Comparison September 30, 2008 3 Months • Lehman Gov /Credit Bond • Russell 1000 Growth • Russell 2000 Value T ltlti5t�£ �85Pt LDIi.�+111�iIIQ Last 12 Months Last 3 Years (Annualized) ❑ Lehman Gov /Credit - Intermediate ❑ S &P 500 ❑ Russell 1000 Value ■ Russell 2000 Growth ■ Russell 3000 ■ MSCI EAFE Page 2 4.96% R2000V 3.13% LBIGC - 30.50% EAFE 4.03% LBIGC ------------------------------------------- - - - - -- ------------------------------- 0.04% R1000G ------ - - - - -- ---------- - - - - -- ---------------------------------- 3 Months • Lehman Gov /Credit Bond • Russell 1000 Growth • Russell 2000 Value T ltlti5t�£ �85Pt LDIi.�+111�iIIQ Last 12 Months Last 3 Years (Annualized) ❑ Lehman Gov /Credit - Intermediate ❑ S &P 500 ❑ Russell 1000 Value ■ Russell 2000 Growth ■ Russell 3000 ■ MSCI EAFE Page 2 Palm Beach Gardens Police Pension Fund Compliance Report September 30, 2008 YES TOTAL FUND 1. Did the total return, over the trailing 3 -year period, exceed the policy, which is comprised of 25% r W S &P500,10% S&P400,109/6 S &P600,10% R1000G,10% EAFE and 35% LBGC? 10.41 vs. 1.831 2. Did the total return, over the trailing 3 -year period, rank in the top 50% of the Universe comprised of r r 25% Mobius Broad Large Core, 10% Mid Cap, 10% Small Cap, 10% Broad Large Cap Growth, 10% International and 35% Broad Fixed? [63rd] 3. Did the total return of the fund over the trailing 3 -year period equal or exceed 7.5% (actuarial r r assumption rate of return)? [0.41 vs. 7.501 FIXED INCOME - ICC CAPITAL 1. Did the fixed income return, over the trailing 3 -year period, exceed the LBGC? [3.24 vs. 4.151 r 2. Did the fixed income return, over the trailing 3 -year period, rank in the top 50% of the Mobius Broad r Fixed Income Universe? [20th] 3. Did the fixed income return, over the trailing 5 -year period, exceed the LBGC? [2.98 vs. 3.79] I IJ 4. Did the fixed income return, over the trailing 5 -year period, rank in the top 50% of the Mobius Broad h% r Fixed Income Universe? [33rd] 5. Is the amount invested in any single security (with exception of U.S. Government and its agencies) less f1 r than or equal to 5% of the market value of the total fixed income portfolio? 6. Is the minimum quality rating of the bond investments BBB from Standard & Poor's or BAA from r r Moody's ?(Lehman Brothers Bond) WChistlr Asset Consulting W Page 3 TOTAL EQUITY 1. Did the equity return, over the trailing 3 -year period, exceed the 38.4% S &P 500,15.4% S &P 400,15.4% r r S &P 600,15.4% R1000G index and 15.4% EAFE? [ -1.28 vs. 0.331 2. Did the equity return, over the trailing 5 -year period, exceed the 38.4% S &P 500,15.4% S &P 400,15.4% r r S &P 600,15.4% R1000G index and 15.4% EAFE? [5.06 vs. 6.371 3. Did the equity return, over the trailing 3 -year period, rank in the top 501/6 of the Mobius 38.4% Broad r r Large Cap, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth and 15.4% International Universe? [83rd] 4. Did the equity return, over the trailing 5 -year period, rank in the top 50% of the Mobius 38.4% Broad r r Large Cap, 15.4% Mid Cap, 15.4% Small Cap, 15.49/o Broad Large Cap Growth and 15.4% International Universe? [29th] 5. Is the amount invested in any single security less than or equal to 5% of the market value of the total W. �- equity portfolio? 6. Is the amount invested in any single industry less than or equal to 209/6 of the market value of the total r equity portfolio? FIXED INCOME - ICC CAPITAL 1. Did the fixed income return, over the trailing 3 -year period, exceed the LBGC? [3.24 vs. 4.151 r 2. Did the fixed income return, over the trailing 3 -year period, rank in the top 50% of the Mobius Broad r Fixed Income Universe? [20th] 3. Did the fixed income return, over the trailing 5 -year period, exceed the LBGC? [2.98 vs. 3.79] I IJ 4. Did the fixed income return, over the trailing 5 -year period, rank in the top 50% of the Mobius Broad h% r Fixed Income Universe? [33rd] 5. Is the amount invested in any single security (with exception of U.S. Government and its agencies) less f1 r than or equal to 5% of the market value of the total fixed income portfolio? 6. Is the minimum quality rating of the bond investments BBB from Standard & Poor's or BAA from r r Moody's ?(Lehman Brothers Bond) WChistlr Asset Consulting W Page 3 Palm Beach Gardens Police Pension Fund Total Assets Fixed Income 38% September 30, 2008 Cash 8% ■ Equities ■ Fixed Income ■ Cash W (histleassetcr, unsiiltinA� Equities 54% Page 4 ICC Fixed 46% Palm Beach Gardens Police Pension Fund Total Assets September 30, 2008 Rhumbline S&P500 Rhumbline S&P400 19% 7% Intl. Equity ICC Lg. Growth. 9% 11% e S&P600 iO ■Rhumbline S &P500 ■Rhumbline S &P400 ■Rhumbline S &P600 13 Intl. Equity ■ICC L . Growth ■ICC Fixed W thistle Asset Goutting Pave 5 Palm Beach Gardens Police Pension Fund Performance Evaluation Summary September 30, 2008 Manager Equities Fixed Income Cash Total % of Total Rhumbline S&P5OO $5,144,000 $0 $0 $5,144,000 19.1% Rhumbline S&P4OO $1,934,000 $0 $0 $1,934,000 7.2% Rhumbline S&P6OO $2,170,000 $0 $0 $2,170,000 8.1% Intl. Equity $2,428,000 $0 $0 $2,428,000 9.0010 ICC Lg. Growth $2,863,000 $0 $0 $2,863,000 10.6% ICC Fixed $0 $10,089,000 $2,269,000 $12,358,000 45.9016 Total $14,539,000 $10,089,000 $2,269,000 $26,897,000 100.00/0 ---------------------------------------------------------------------------------------------------------------------------------------------------------------- of Total 54.1% 37.5% 8.4% 100.0% Target % 60.0% 40.0% 0.0% 100.0% i Chistte And Usllttinig w Page 6 Palm Beach Gardens Police Pension Fund Performance Evaluation Summary Return Ranking (Broad Fixed) - 3.25% 1.22% 3.24% 2.98% 4.98% 3.56% 3.36% 1.83% 3.80% 44 25 20 33 27 59 28 75 61 Policy Return (LBAB) - 0.48% 3.66% 4.15% 3.79% 5.13% 3.67% 2.80% 3.68% 5.40% * 25% Broad Large Cap Core, 10% Mid Cap, 10% Small Cap, 10% Broad Large Growth, 10% International, 35% Broad Fixed ** 25% S&P500, 10% S&P400, 10% S&P600, 10% R1000G, 10% SAFE, 35% LBAB * ** 38.4% Broad Large Cap Core, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth, 15.4% International G01d irrdic-atc cc711r71 to or 1yeat tlrc indc x, or ii., upper 40"., of m1iz,c,r-;e Red indicates bottom 40% of universe �i�1IJt1P .�SPt L11IIl1ltilllt n___ -7 September 30, 2008 Current Fiscal Year uarter One Year Three Years Five Years 2007 2006 2005 2004 2003 TOTAL FUND (Net of Fees) Return - 9.30% -15.21% 0.41% 3.91% 11.90% 6.71% 9.78% 8.97% 12.88% Ranking ( *) 89 77 63 56 25 49 29 57 74 Policy Return ( * *) - 6.81% - 12.83% 1.83% 5.26% 12.98% 7.22% 10.33% 10.94% 17.37% TOTAL EQUITIES Return - 14.34% - 25.60% - 1.28% 5.06% 17.99% 9.59% 15.33% 15.36% 25.95% Ranking ( * * *) 100 100 83 29 4 21 7 12 6 Policy Return (38.4 %S&P500, 15.4 %S&P400,15.4 %S &P600, 15.4% R1000G, 15.4% SAFE) - 10.19% - 21.04% 0.33% 6.37% 17.05% 9.27 %0 16.00% 16.21% 25.50% TOTAL FIXED INCOME Return Ranking (Broad Fixed) - 3.25% 1.22% 3.24% 2.98% 4.98% 3.56% 3.36% 1.83% 3.80% 44 25 20 33 27 59 28 75 61 Policy Return (LBAB) - 0.48% 3.66% 4.15% 3.79% 5.13% 3.67% 2.80% 3.68% 5.40% * 25% Broad Large Cap Core, 10% Mid Cap, 10% Small Cap, 10% Broad Large Growth, 10% International, 35% Broad Fixed ** 25% S&P500, 10% S&P400, 10% S&P600, 10% R1000G, 10% SAFE, 35% LBAB * ** 38.4% Broad Large Cap Core, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth, 15.4% International G01d irrdic-atc cc711r71 to or 1yeat tlrc indc x, or ii., upper 40"., of m1iz,c,r-;e Red indicates bottom 40% of universe �i�1IJt1P .�SPt L11IIl1ltilllt n___ -7 Palm Beach Gardens Police Pension Fund Performance Evaluation Summary Return Ranking (50 %Br.Lg.Cap&50 %Br. Sm.Cap) - 10.82 ". - 16.54 1.85`, >, 8.74 93 14 18 7 18.74% 6.60 "„ 2237", 17. ()2 n/a 26 81 i 30 n/a Policy (S&P 400) - 10.87% September 30, 2008 1.78% 8.65% 18.76% 6.56% 22.16% 17.55% Current Fiscal Year uarter One Year Three Years Five Years 2007 2006 2005 2004 2003 Return -1.36% - 13.64 "„ 2.29`! 6.71,,,, 15.17 "„ RHUMBLINE S &P 500 EQUITY PORTFOLIO 21.16% n/a n/a Ranking (Broad Small Cap) Return - 8.21` - 21.72 ', 0.41`.'„ 5?S "„ 16.63 "„ 10.88 "�, 12.22% 13.84% 24.43 "„ Ranking (Br.Large Cap Core) 31 36 28 48 39 27 57 35 23 Policy(S&P500) -8.37% - 21.98% 0.22% 5.17% 16.44% 10.79% 12.25% 13.87% 24.40% RHUMBLINE S &P 400 EQUITY PORTFOLIO 2- trs 3- trs Return Ranking (50 %Br.Lg.Cap&50 %Br. Sm.Cap) - 10.82 ". - 16.54 1.85`, >, 8.74 93 14 18 7 18.74% 6.60 "„ 2237", 17. ()2 n/a 26 81 i 30 n/a Policy (S&P 400) - 10.87% - 16.68% 1.78% 8.65% 18.76% 6.56% 22.16% 17.55% n/a RHUMBLINE S &P 600 EQUITY PORTFOLIO 4 Years Return -1.36% - 13.64 "„ 2.29`! 6.71,,,, 15.17 "„ 7.6111„ 21.16% n/a n/a Ranking (Broad Small Cap) 28 22 29 24 51 52 32 n/a n/a Policy (S&P 600) -0.86% - 13.83% 2.00% 6.50% 14.93% 7.16% 21.22% n/a n/a ICC LARGE CAP GROWTH EQUITY PORTFOLIO 2- trs 3- trs 1 -Year Return - 17.58% - 14.69% - 25.11% - 30.79% n/a n/a n/a n/a n/a Ranking (Broad Large Cap Growth) 91 82 82 100 n/a n/a n/a n/a n/a Policy (R1000G) - 12.33% - 11.23% - 20.27% - 20.88% n/a n/a n/a n/a n/a INTERNATIONAL EQUITY 3 Otrs- 1 -Year 2 -Year Return - 31.00% - 38.03% - 39.25% - 12.00% 27.48 "„ n/a n/a n/a n/a Ranking (International Equity) 100 96 93 93 43 n/a n/a n/a n/a Policy (MSCI SAFE) - 20.50% - 28.91% - 30.12% - 6.40% 25.38% n/a n/a n/a n/a i ;IJ irriln'rth< r,j:etl h+ c't (rot tRr ;tt,': t ' nt r.; +t', - Red indicates bottom 40% of universe l,�igtle �et C�ouultmg+ Page 8 September 30, 2008 EXPLANATION OF RISK /REWARD SCATTERPLOT GRAPHS The crossing lines represent the 5 -year return (horizontal line) and 5 -year standard deviation or volatility or risk (vertical line) of the index against which the Fund is being measured. Each point represents the Fund's 5 -year return (vertically) and standard deviation or volatility (horizontally), relative to the index. ff a point is in the southwest quadrant, for example, the 5 -year return of the Fund has been less than (below) the index line, and the 5 -year standard deviation (volatility) has also been less than (to the left oj) the index line. There are four points, one for each of the last four quarters. The earliest one is the smallest and the quarter just ended being the largest. Each point shows the 5 -year relative position of the Fund versus the index for that quarter. The movement of the points shows the trend, or direction, over time. As noted in the graph, the best place to be is the northwest quadrant (less risk and a higher return); the worst place to be is the southeast quadrant (more risk and a lower return). "I k" A��et Cronlittillo� �j k o� o> 0 v A -2 Palm Beach Gardens Police Pension Fund Total Fund Trailing 5 -Years (versus 25% S &P500, 10% S &P400,10% S &P600,10% R1000G, 10% SAFE, 35% LBGQ September 30, 2008 Good Aggressive O Conservative Bad -2 0 2 Risk (Difference in Standard Deviations) • 9/30/2008 •6/3012008 0313112008 ♦ 1213112007 1 (�,ItiBfl@.�BB¢t �i011511Ifilig� Pn ov A 2 K o� ao 0 o� of U 0� -2 Palm Beach Gardens Police Pension Fund Total EquityTrailing 5 -Years (versus 38.4% S &P 500, 15.4% S &P 400,15.4% S &P 600, 15.4% R1000G & 15.4% Ind.) September 30, 2008 VVI 90C VKL LVG -2 0 2 Risk (Difference in Standard Deviations) • 9/30/2008 ♦ 613012008 0313112008 ♦ 1213112007 I 1' I1istIC Awt T0115111fiIIII ta Pnoo in 2 k o� Z z 0 as o� U 0� ."1 A -2 Palm Beach Gardens Police Pension Fund ICC Fixed Income Trailing Since Inception (versus LBGQ September 30, 2008 -2 0 2 Risk (Difference in Standard Deviations) • 9130/2008 ♦ 613012008 ❑ 313112008 ♦ 1213112007 1 ��ri�tle .a��et �att�ul #tYtg Pave 11 Palm Beach Gardens Police Pension Fund Beta: Trailing 5 -Year Risk September 30, 2008 Sep -O8 Jun -O8 Mar -O8 Dec -07 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 1.30 ■ Total Fund ■ Large Cap ❑ Mid Cap 0 Small Cap ■ ICC Fixed ■ International ■ Large Growth WZ-11i'Istle Asset(�pnsultingw Page 12 5.0% 0.0% -5.0% -10.0% Palm Beach Gardens Police Pension Fund Alpha: Trailing g- Year Reward September 30, 2008 TOTAL FUND & INDIVIDUAL MANAGERS ticj)-OS Mar-08 Ot,(-f 1- E Total Fund E Large Cap O Mid Cap O Small Cap MICCFixed DInternational O Large Growth W I Ul C, hi5tte Awt 6115111tilla Nap 1.3 Palm Beach Gardens Police Pension Fund Alpha & Beta: 5 -Years Trailing (or Inception if Less) September 30, 2008 BETA Managers, Equities Large Cap Current 0.14% 0.11% 0.12% 0.13% Mid Cap Policy Sep_08 un -08 Mar -08 Dec -07 Total Fund S &P600 0.89 0.86 0.84 0.86 Managers, Fixed Income EAFE - 9.53% 4.98% 5.63% 9.57% ICC Fixed LBAB 0.91 0.71 0.57 0.56 Managers, Equities Large Cap S &P500 0.99 0.99 0.99 0.99 Mid Cap S &P400 0.99 0.99 1.00 0.99 Small Cap S &P600 0.99 0.99 0.99 0.99 International EAFE 0.39 0.32 0.41 0.55 Large Growth R1000G 1.24 ALPHA Total Fund - 0.76% 0.15% 0.10% 0.08% Managers, Fixed Income ICC Fixed LBAB - 0.47% 0.92% 1.44% 1.45% Managers, Equities Large Cap S &P500 0.14% 0.11% 0.12% 0.13% Mid Cap S &P400 0.14% 0.12% 0.12% 0.14% Small Cap S &P600 0.23% 0.37% 0.24% 0.18% International EAFE - 9.53% 4.98% 5.63% 9.57% Large Growth R1000G 1.24% * 25% S&P 500, 10% S&P400, 10% S &P600, 10% R1000G, 10 % SAFE, 35% LBAB hid 1P A ;Gpt Tnttgtt(fittn�i�i � _ . 100 75 50 25 0 Palm Beach Gardens Police Pension Fund Batting Average: 5- Years Trailing September 30, 2008 TOTAL FUND & INDIVIDUAL MANAGERS Sep -08 jun -08 Mar -08 Dec -07 ■Total Fund Marge Cap ❑Mid Cap ❑Small Cap ■ICC Fixed DInternational ■Large Growth kil�I115f�2 �88¢tCD115lllflllq� i Pa oe 15 • Palm Beach Gardens Police Pension Fund Batting Average: 5 -Years Trailing (or Inception ifLess) September 30, 2008 BATTING AVERAGE Managers, Fixed Income ICC Fixed Managers, Equities Large Cap Mid Cap Small Cap International Large Growth LBAB Current 0.78 0.76 0.76 S &P500 1.00 Police Sep -08 un -08 Mar -08 Dec -07 Total Fund 1.00 30.00 30.00 25.00 25.00 Managers, Fixed Income 1.00 EAFE 0.07 0.14 0.16 ICC Fixed LBAB 55.00 60.00 50.00 50.00 Managers, Equities Large Cap S &P500 70.00 65.00 60.00 60.00 Mid Cap S &P400 60.00 55.00 55.00 55.00 Small Cap S &P600 61.03 64.30 62.28 60.01 International EAFE 37.50 42.86 33.33 40.00 Large Growth R1000G 25.00 R- SQUARED Total Fund 0.91 0.96 0.96 0.97 Managers, Fixed Income ICC Fixed Managers, Equities Large Cap Mid Cap Small Cap International Large Growth LBAB 0.71 0.78 0.76 0.76 S &P500 1.00 1.00 1.00 1.00 S &P400 1.00 1.00 1.00 1.00 S &P600 1.00 1.00 1.00 1.00 EAFE 0.07 0.14 0.16 0.25 R1000G 0.84 * 25% S &P 500, 10% S &P400, 10% S &P600, 10% R1000G, 10% SAFE, 35% LBAB kti Page 16 Performance of Other Managers September 30, 2008 - - - - - -- - --- - - - - -- tr YTD IYr 3Yr 5Yr 10Yr - -- - -- J -- CORE EQUTTY Atlanta Capital Management Co., LLC - High Quality Growth Plus - Gross Size -9.96 -15.71 -15.71 2.45 5.60 3.56 Eagle Asset Management - Conservative Large Cap Equity - Gross Size -6.75 -23.27 -23.27 -0.59 4.89 6.14 ICC Capital Management, Inc - Core Value - Gross Size -6.56 -17.39 -17.39 2.72 7.53 6.22 Inverness Counsel - Miami Beach Fire & Police - Gross Size (Equity Only) INVESCO - Structured Core Equity - Gross Size -5.46 -18.04 -18.04 3.75 7.86 Madison Investment Advisors, Inc. - Large Cap Equity (Instl) - Gross Size -0.65 -12.98 -12.98 1.60 4.85 5.59 Rhumbline Advisers Corporation - Russell 1000 Index Fund - Gross Size -9.31 -22.00 -22.00 0.18 5.48 Rhumbline Advisers Corporation - S &P 500 Index Fund - Gross Size -8.19 -21.73 -21.73 0.37 5.24 3.24 Robeco Investment Management, Inc. - WPG Disc Equity Large Cap - Gross Size -7.99 -20.00 -20.20 1.28 6.30 4.40 Voyageur Asset Management - Large Cap Core Russell 1000 -9.35 -22.10 -22.10 0.13 5.49 3.49 S &P 500 _ _ - - -- - - -8.37 - -21.98 -21.98 0.22 5.17 3.06 GROWTH EQ__UITY -- - - - -- - -_ -- -- - - -- - Allegiant Asset Management - Large Capitalization Growth Equity - Gross Size -11.52 -24.22 -24.22 -0.75 4.05 7.47 Clearwater Capital Managment II - U.S. Active Large Cap Growth Equity - Gross Size Davis Hamilton Jackson & Associates - Quality Growth - Gross Size -10.07 -16.50 -16.50 1.06 3.85 2.84 Denver Investment Advisors, LLC - Growth - Gross Size -17.70 -26.29 -26.29 -0.76 5.07 6.40 ICC Capital Management, Inc - Large Cap Growth Equity - Gross Size -15.78 -28.43 -28.43 -3.95 1.72 Montag & Caldwell, Inc. - Large Cap Growth - Gross Sue -9.20 -11.99 -11.99 4.30 6.71 3.95 OakBrook Investments, LLC - OakBrook Select Equity - Gross Size 1.35 -8.70 -8.70 4.52 6.19 6.25 Rhumbline Advisers Corporation - Russell 1000 Growth Index Fund - Gross Size -12.37 -20.83 -20.83 0.16 3.79 Sawgrass Asset Management, LLC - Large Cap Growth Equity - Gross Size -7.99 -19.73 -19.73 1.00 5.33 4.15 SIPCO - U.S. Growth Leaders - Gross Size -3.23 -12.92 -12.92 6.52 8.97 State Street Global Advisors - Active U.S. Large Cap Growth Strategy - Gross Size -10.47 -19.37 -19.37 0.63 4.82 0.82 Voyageur Asset Management, Inc. - Large Cap Growth - Gross Sue -7.50 -19.12 -19.12 -1.13 3.42 4.34 Russell 1000 Growth -12.33 -20.88 -20.88 0.04 3.74 0.59 S &P 500 /Citigmup Growth -11.24 -19.44 -19.44 0.27 3.70 1.30 Rhumbline Large Cap(FYE) -8.21 -21.72 -21.72 0.41 5.28 n/a Rhumbline Mid Cap(FYE) -10.82 -16.54 -16.54 1.85 8.74 n/a Rhumbline Small Cap(FYE) -1.36 -13.64 -13.64 2.29 n/a n/a International Equity(FYE) -31.00 -39.25 -39.25 nja n/a n/a ICC Large Growth(FYE) -17.56 -30.79 -30.79 n/a n/a n/a Wl.hl5fff k5Pt TUllsuffluq w Page 17 Performance of Other Managers September 30, 2008 Qtr YTD 1Yr 3Yr Syr 10Yr VALUE EQUIT Aletheia Research and Management,Inc - Aletheia Value - Gross Size BlackRock - Active Quant Large Cap Value - Gross Size -7.20 -20.15 -20.15 1.88 8.49 Buckhead Capital Management - Value Equity - Low PIE - Gross Size -4.78 -20.38 -20.38 0.58 5.90 7.03 Cascade Investment Counsel, LLC - Large Cap Value - Gross Size -24.57 -15.78 -15.78 4.36 14.30 10.20 Cohen & Steers Capital Mgmt., Inc. - Cohen & Steers Large Cap Value - Gross Size -6.39 -16.72 -16.72 5.16 11.17 Crawford Investment Counsel, Inc. - Dividend Growth - Gross Size -1.09 -13.67 -13.67 4.94 6.08 5.67 DePrince, Race, Zollo, Inc. - Large Cap Value Equity - Gross Size -1.59 -21.25 -21.25 1.71 7.06 8.43 Eagle Asset Management - Value - Institutional - Gross Size -6.25 -17.14 -17.14 3.24 9.46 5.87 ICC Capital Management, Inc - Core Value - Gross Size -6.56 -17.39 -17.39 2.72 7.53 6.22 Loomis, Sayles & Company, L.P. - Large Cap Value - Gross Size Missouri Valley Partners - Large Cap Value - Gross Size -6.77 -20.76 -20.76 1.04 5.78 Oppenheimer Capital - Large Cap Value - Gross Size -14.10 -41.32 -41.32 -9.12 -0.20 1.02 Rhumbline Advisers Corporation - Russell 1000 Value Index Fund - Gross Size -6.12 -23.29 -23.29 0.23 7.16 5.70 State Street Global Advisors - Active U.S. Large Cap Value Strategy - Gross Size -6.76 -23.79 -23.79 0.30 6.95 6.22 The Boston Company Asset Mgmt., LLC - US Large Cap Value Equity Management -8.88 -21.24 -21.24 2.06 6.83 5.95 Ceredex Value Ad Large Cap Value Voyageur Asset Management, Inc. - Large Cap Value - Gross Size -6.55 -21.65 -21.65 1.37 9.61 6.39 Westwood Management Corporation - LargeCap Equity - Gross Size -8.02 -15.51 -15.51 5.58 11.52 8.36 Russell 1000 Value -6.11 -23.56 -23.56 0.09 7.11 5.54 S &P 500 /Citigroup Value -4.97 -24.50 -24.50 0.16 6.62 4.52 _ _ _ MID -CAP E�TY -- -- -- - - -- - - - - -- Amalgamated Bank - LongView 400 MidCap Index Fund - Gross Size -10.89 -16.64 -16.64 1.81 8.65 10.30 Batterymarch Financial Mgmt., Inc. - US Mid Cap S &P 400 - Gross Size -18.61 -25.49 -25.49 -3.35 5.16 Chicago Equity Partners, LLC - Mid Cap Core Equity - Gross Size -15.07 -24.71 -24.71 -2.88 6.22 9.31 OakBrook Investments, LLC - Enhanced MidCap Strategy - Gross Size -12.93 -17.06 -17.06 2.34 9.76 Rhumbline Advisers Corporation - S &P 400 Index Fund - Gross Size -14.28 -19.83 -19.83 0.50 7.87 9.86 Robeco Investment Management, Inc. - BPAM Mid Cap Value Equity - Gross Size -5.31 -16.10 -16.10 4.47 11.28 9.70 State Street Global Advisors - Active U.S. Mid Cap Strategy - Gross Size -13.24 -28.97 -28.97 -4.38 6.00 8.75 Russell Midcap -12.91 -22.36 -22.36 0.09 8.62 8.34 S &P Midcap 400 -10.87 -16.68 -16.68 1.78 8.65 10.30 Rhumbline Large Cap(FYE) -8.21 -21.72 -21.72 0.41 5.28 n/a Rhumbline Mid Cap(FYE) -10.82 -16.54 -16.54 1.85 8.74 n/a Rhumbline Small Cap(FYE) -1.36 -13.64 -13.64 2.29 n/a n/a International Equity(FYE) -31.00 -39.25 -39.25 n/a n/a n/a ICC Large Growth(FYE) -17.56 -30.79 -30.79 n/a n/a n/a WC, hi5t1P k98Qt U5111fing W Page 18 Performance of Other Managers September 30, 2008 Qtr YTD 1Yr 3Yr 5Yr 10Yr ALL CAP EQUITY Advanced Investment Partners - AllCap - Gross Size BuckheadCaptial Management - All Cap - Gross Size Diamond Hill Capital Management, Inc. - Diamond Hill Select Equity - Gross Size Intrepid Capital Management, Inc. - Intrepid Multi -Cap Equity - Gross Size Oak Ridge Investments, LLC - All -Cap - Gross Size Oppenheimer Capital - All Cap Equity - Gross Size Rockwood Capital - Strategic Equity Russell 3000 Dow Jones Wilshire 5000 (Full Cap) - - - - - -- SMALL CAP EQUITY Atlanta Capital Management Co., LLC - High Quality Small Cap - Gross Size Eagle Asset Management - Small Cap Core - Institutional - Gross Size GW Capital, Inc. - Small Cap Value Equity - Gross Size Intrepid Capital Management, Inc. - Intrepid Small Cap - Gross Size Kayne Anderson Rudnick Invst. - Small Cap - Gross Size Pzena Investment Management, LLC - Pzena Small Cap Value Service - Gross Size Rhumbline Advisers Corporation - Russell 2000 Index Fund - Gross Size Sawgrass Asset Management, LLC - Small Cap Growth Equity - Gross Size State Street Global Advisors - U.S. Small Cap Growth Opportunities Strategy - Gross Size Trusco Capital Management, Inc. - Small Cap Growth - Gross Size Russell 2000 S &P Sma11Ca� -- REAL ESTATE (0613012008) American Realty Advisors - Core Equity Real Estate -Sep. Accts. - Gross Size ASB Capital Management, Inc. - EB Real Estate Fund - Gross Size JPMorgan Asset Management - Strategic Property Fund - Gross Size Principal Global Investors - Real Estate Core Property - Gross Size RREEF - RREEF America II - Gross Size Dow Jones Wilshire REIT Index NCREIF Property Index INTERNATIONAL EOUITY -8.50 -18.50 -18.50 -0.79 5.35 5.34 -3.88 -17.62 -17.62 3.58 9.11 -2.91 -11.26 -19.86 -19.86 0.98 11.84 -3.53 0.36 -7.35 -7.35 3.85 8.56 8.84 -9.88 -19.22 -19.22 0.37 7.45 1.33 -12.92 -25.60 -25.60 -0.36 6.75 7.65 -12.47 -20.70 -20.70 0.81 9.23 -14.24 -8.73 -21.52 -21.52 0.26 2.93 -5.19 5.70 3.80 DePrince, Race, Zollo, Inc. - International Equity - Gross Size -19.22 -30.16 6.05 10.89 10.48 8.53 ICC Capital Management, Inc - International ADR Equity - Gross Size 3.73 -5.95 -5.95 -2.91 -13.09 -13.09 5.82 12.06 14.96 -3.53 -11.43 -11.43 5.07 18.88 15.71 3.15 2.80 2.80 7.02 9.45 State Street Global Advisors - MSCI EAFE Index Strategy - Gross Equal 1.33 -11.43 -11.43 2.35 9.50 10.11 -1.35 -13.68 -13.68 2.28 10.00 10.81 -14.24 -26.15 -26.15 -4.49 3.15 2.93 -5.19 -26.04 -26.04 -5.21 4.71 5.55 -1.11 -14.48 -14.48 1.83 8.15 7.81 4.86 -13.83 -13.83 2.00 9.89 10.05 0.88 5.37 11.27 15.72 15.41 12.73 0.10 5.24 11.49 15.52 15.50 12.09 0.86 4.74 9.43 15.46 15.51 13.19 1.13 4.00 9.22 13.94 14.06 11.97 -5.39 -16.46 -15.29 4.92 14.53 11.27 0.56 5.45 9.20 14.96 14.72 12.23 DePrince, Race, Zollo, Inc. - International Equity - Gross Size -19.22 -30.16 -30.16 0.40 9.06 8.53 ICC Capital Management, Inc - International ADR Equity - Gross Size -14.16 -25.77 -25.77 1.65 8.43 5.24 INVESCO - International Equity - Gross Size -24.66 -28.36 -28.36 10.98 Oppenheimer Capital - International Equity - Gross Size -23.57 -32.82 -32.82 0.49 8.81 8.36 State Street Global Advisors - MSCI EAFE Index Strategy - Gross Equal -20.52 -30.23 -30.23 1.37 9.91 5.20 The Boston Company Asset Mgmt., LLC - International Core Equity Management -22.28 -34.60 -34.60 -0.62 10.81 8.72 Wentworth, Hauser and Violich - WHV International Equity - Gross Size -31.41 -18.66 -18.66 13.01 24.51 19.20 MSCI EAFE -20.50 -30.12 -30.12 1.58 10.16 5.42 Rhumbline Large Cap(FYE) -8.21 -21.72 -21.72 0.41 5.28 n/a Rhumbline Mid Cap(FYE) -10.82 -16.54 -16.54 1.85 8.74 n/a Rhumbline Small Cap(FYE) -1.36 -13.64 -13.64 2.29 n/a n/a -17.56 -30. WC, liistlrkscfCaneulfinq� Page 19 Performance of Other Managers September 30, 2008 _ tr YTD 1Yr 3Yr 5Y_r 10Y_r CO_RE FIXED INCOME_ Atlanta Capital Management Co., LLC - High Quality Broad Market - Gross Size 0.94 6.22 6.22 5.17 _ 4.54 5.38 Eagle Asset Management - Core Fixed Institutional - Gross Size -0.59 4.67 4.67 4.67 3.96 5.22 Galliard Capital Management - Broad Market Core Composite - Gross Size -1.54 0.92 0.92 3.44 3.69 5.48 ICC Capital Management, Inc - Core Fixed Income - Gross Size -2.60 1.62 1.62 3.31 3.13 4.81 Oppenheimer Capital - Fixed Income Aggregate - Gross Size -3.20 3.07 3.07 3.98 3.69 5.08 Rockwood Capital - Core Bond - Gross Size -1.03 3.69 3.69 4.18 3.41 4.84 Sawgrass Asset Management, LLC - Core Fixed Income - Gross Size -1.32 2.92 2.95 4.02 3.69 5.27 Voyageur Asset Management, Inc. - Broad Market Core - Gross Size -1.08 -0.37 -0.37 2.78 3.05 4.73 Lehman Aggregate Bond -0.48 3.66 3.66 4.15 3.79 5.20 Lehman Gov /Credit Bond -1.63 2.41 2.41 3.60 3.34 5.00 INTERMEDIATE FIXED INCOME Allegiant Asset Management - Intermediate Gov't /Credit - Gross Size -1.28 3.70 3.70 4.34 3.58 _ 4.99 Davis Hamilton Jackson & Associates - Intermediate Fixed Income - Gross Size -1.69 3.58 3.58 4.43 3.89 5.18 Eagle Asset Management - Institutional Conservative - Gross Size -0.25 5.20 5.20 4.87 3.72 5.15 Missouri Valley Partners - Intermediate Government /Credit Fixed Income - Gross Size 0.51 5.91 5.91 5.18 4.09 Sawgrass Asset Management, LLC - Intermediate Fixed Income - Gross Size -1.51 3.01 3.01 4.20 3.36 5.00 Sit Investment Associates, Inc. - Intermediate Govt /Corp - Gross Size -0.21 1.48 1.48 3.98 3.72 5.16 Voyageur Asset Management, Inc. - Intermediate Core - Gross Size -1.75 -1.14 -1.14 2.54 2.46 4.84 Lehman Gov /Credit - Intermediate -1.19 3.15 3.15 4.04 3.25 4.96 ICC Fixed Income(FYE) -3.25 1.22 1.22 3.24 2.98 4.62 W:' lhistlr Asse bsulfigv Page 20 PALM BEACH GARDENS POLICE PENSION FUND REVIEW OF INTERNATIONAL EQUITY FUNDS SEPTEMBER 30, 2008 Palm Beach Gardens Police Review of International Equity Funds September 30, 2008 1. Vanguard Global Equity (VHGEX) [0.64 %] MorningStar Rating: (out of 216 funds over 10- years) Comparative Index: World Stock ie. MSCI World 1 Year 3 Year 5 Year Fund: - 32.24% -0.28% 8.55% Policy: - 26.05% 0.75% 7.33% Diff : -6.19% -1.03% 1.22% Received a good rating and review from Morningstar. Not impressed with the multi- manager change but like the long term prospects. No change recommended. www.vanauard.com 2. Vanguard International Growth Admiral Shares (VWILX) [0.31%] MorningStar Rating: ' �** (out of 557 funds over 3- years) Comparative Index: Foreign Large Blend ie. MSCI EAFE 1 Year 3 Year 5 Year Fund: - 28.46% 3.33% 10.63% Policy: - 30.50% 1.12% 9.69% Diff : 2.04% 2.21% 0.94% Received a good rating and review from Morningstar. Added a third sub- advisor in February 2008.No change recommended. www.vanguard.com 3. Vanguard International Value (VTRIX) [0.43 %] MorningStar Rating: 1��* (out of 222 funds over 3- years) Comparative Index: Foreign Large Value ie. MSCI EAFE. 1 Year 3 Year 5 Year Fund: - 28.12% 3.48% 11.81% Policy: - 30.50% 1.12% 9.69% Diff : 2.38% 2.36% 2.12% Good rating and review from Morningstar. Added a fourth sub - advisor in May 2008, Edinburgh Partners. No change recommended. www.vanguard.com HANSON, PERRY & JENSEN, P.A. 400 EXECUTIVE CENTER DRIVE, SUITE 207 — WEST PALM BEACH, FLORIDA 33401 -2922 JILL HANSON* mlhanson@hpjlaw.com ANN H. PERRY aperry @hpjlaw.com BONN[ SPATARA JENSEN bsjensen®hppaw.com MEMORANDUM ',uso Aowr7o w N.Y. To: Board of Trustees Palm Beach Gardens Police Pension Fund From: Bonni S. Jensen Hanson, Perry & Jensen, P.A. Subject: IRS Determination Letters Date: July 15, 2008 TELEPHONE (561) 686-6550 FACSIMILE (561) 686-2802 At the end of June, 2008, 1 attended the National Association of Public Pension Attorney's Conference in Boston, Massachusetts. One of the sessions was a presentation by the Internal Revenue Service ( "IRS ") regarding their efforts toward education, outreach and compliance for the Governmental Plans Community. According to the IRS, their "initiative is designed to assist governmental plans to satisfy the tax qualification requirements through education, compliance, and enforcement." For your information, have attached a copy of the IRS "employee plans news" from May 9, 2008 discussing the IRS's April 22, 2008 roundtable on governmental plans. Essentially, the IRS is encouraging governmental plans to file for an IRS determination letter as to the tax qualification of the retirement plan. A tax qualification letter provides for a plan's reliance that a plan is tax exempt (if the plan is operated in accordance with the plan provisions). The IRS presentation indicates the reasons for getting a Determination letter as follows: • The Determination Letter lets the plan sponsor know that the plan provisions meet the requirements of the tax law. • Once the IRS approves a plan, the plan can rely on the letter - even if a defective provision is found at a later time. • Filing a timely request gives the plan sponsor additional time to correct an improper plan provision. • the IRS self correction program requires a current determination letter. The representatives from the IRS also discussed the IRS's plans to send out a survey to governmental plans. This is in an initial effort to obtain information about the Board of Trustees IRS Determination Letters July 15, 2008 current status of governmental plans, because the IRS believes that the "governmental plans have not receives the same attention as plans in the private sector and that the IRS has not had a meaningful presence in this area." The IRS is accepting applications for governmental sector pension plans from now through January 31, 2009. Please place this item on your agenda for the next meeting so that we may discuss whether to file for an IRS determination letter for your Plan. RAN MiscellaneouslALL BOARDS\Memo Determination Letters.wpd iii Iy�y, i t .ti �,. On April 22, 2008, the IRS hosted a governmental plans roundtable as part of an initiative to better serve the governmental plan sector of the EP customer base by raising awareness of the need to comply with tax qualification requirements. Steven Miller, Commissioner, Tax Exempt and Government Entities indicated that governmental plans have not received the same attention that other plans have received by the IRS and that the IRS has not had a "meaningful presence" in the governmental plan area. Miller pointed out that one out of five employees in the United States is a government employee and that govemmental plans hold $3.5 trillion in funded pension plan assets. He also noted that recent reports have focused on the economic stresses facing governmental entities. He stated that IRS wants to create a climate for success by helping these plans to satisfy the necessary requirements through education, compliance, and enforcement. The roundtable was the first step in establishing a dialogue between the IRS and the governmental plans community in an effort to ensure that governmental entities understand the tax qualification requirements applicable to their plans and are aware of the tools and resources available to assist them in ensuring ongoing compliance. IRS representatives acknowledged that there is very little history examining governmental plans. They want to better understand the issues and barriers these plans face in attempting to satisfy tax qualification requirements. Andrew Zuckerman, Director, EP Rulings and Agreements, explained that failure to satisfy these requirements could result in plan disqualification and adverse tax consequences for plan participants. The governmental plans community was represented by interested parties (including compliance officers) from various state retirement systems, representative associations and governmental plans consultants, including counsel, actuaries, and administrators. IRS sessions covered a variety of topics, including: The benefits to governmental plans of applying for a determination letter. Under the staggered determination letter process, governmental plans may come in during Cycle C, which opened February 1, 2008, and remains open until January 31, 2009. Although plans are not required to apply for a determination letter, IRS speakers explained that receiving a letter assures the plan sponsor that the form of the plan satisfies the tax qualification requirements, and that if the plan operates in accordance with the terms of the plan as approved, it may rely on the determination letter. Additionally, if the IRS requests amendments as part of the review of the determination letter application, the plan sponsor has an extended period of time in which to make such amendments. Also, receipt of a determination letter may be required to use portions of the IRS voluntary compliance program. e cif _ 1 iFC1 x. � � }• al ti °t - e , '? _ r yy++ ki. �,. On April 22, 2008, the IRS hosted a governmental plans roundtable as part of an initiative to better serve the governmental plan sector of the EP customer base by raising awareness of the need to comply with tax qualification requirements. Steven Miller, Commissioner, Tax Exempt and Government Entities indicated that governmental plans have not received the same attention that other plans have received by the IRS and that the IRS has not had a "meaningful presence" in the governmental plan area. Miller pointed out that one out of five employees in the United States is a government employee and that govemmental plans hold $3.5 trillion in funded pension plan assets. He also noted that recent reports have focused on the economic stresses facing governmental entities. He stated that IRS wants to create a climate for success by helping these plans to satisfy the necessary requirements through education, compliance, and enforcement. The roundtable was the first step in establishing a dialogue between the IRS and the governmental plans community in an effort to ensure that governmental entities understand the tax qualification requirements applicable to their plans and are aware of the tools and resources available to assist them in ensuring ongoing compliance. IRS representatives acknowledged that there is very little history examining governmental plans. They want to better understand the issues and barriers these plans face in attempting to satisfy tax qualification requirements. Andrew Zuckerman, Director, EP Rulings and Agreements, explained that failure to satisfy these requirements could result in plan disqualification and adverse tax consequences for plan participants. The governmental plans community was represented by interested parties (including compliance officers) from various state retirement systems, representative associations and governmental plans consultants, including counsel, actuaries, and administrators. IRS sessions covered a variety of topics, including: The benefits to governmental plans of applying for a determination letter. Under the staggered determination letter process, governmental plans may come in during Cycle C, which opened February 1, 2008, and remains open until January 31, 2009. Although plans are not required to apply for a determination letter, IRS speakers explained that receiving a letter assures the plan sponsor that the form of the plan satisfies the tax qualification requirements, and that if the plan operates in accordance with the terms of the plan as approved, it may rely on the determination letter. Additionally, if the IRS requests amendments as part of the review of the determination letter application, the plan sponsor has an extended period of time in which to make such amendments. Also, receipt of a determination letter may be required to use portions of the IRS voluntary compliance program. 1 • An overview of the IRS voluntary correction program, in which a plan sponsor who discovers errors can either self - correct them (in certain circumstances) without involving the IRS, or if that is not available, may voluntarily come to the IRS, pay a limited fee, correct the error and retain the plan's qualified status. • The Office of Chief Counsel reviewed some of the technical requirements that are applicable to governmental plans. Representatives from EP Examinations included Monika Templeman, Director, EP Examinations, and the EP Compliance Unit (EPCU), who explained that EPCU intends to send a survey questionnaire to a small sample of governmental plans in an initial effort to obtain information about the current status of governmental plans. She assured the audience that responding to the survey would not result in an examination, but if issues were identified, the taxpayer would be directed to an IRS web site with information needed to achieve compliance. If the survey questionnaire is not returned, EP Examinations will conduct compliance activity, which could eventually result in an examination of the taxpayer. Throughout the day, members of the governmental plans community actively participated in the discussion raising concerns, asking questions, and offering suggestions. The day's last session was a panel of representatives from the governmental plans community. A number of concerns were raised including the following: • A plan may not have filed for a determination letter in a very long time, maybe as long as 40 to 50 years, and the plan is concerned about the consequences if the IRS finds a problem with the plan. • Uncertainty as to what documentation a plan sponsor should submit to the IRS when requesting a determination letter where the plan document may be made up of a number of statutory provisions, ordinances, etc. During the determination letter process, IRS may require amendments to the plan. The state or local legislative body that adopts the amendments may only meet a limited number of times during a year (or may not even meet on an annual basis). The time to adopt the IRS required amendments may not be sufficient for governmental plans. States are subject to Freedom of Information Act laws, which may force the government entity to disclose information submitted to the IRS that could be misrepresented or misunderstood by plan participants or the public. • Potential conflicts between state constitutional protections for certain public sector retirement benefits and federal tax law may arise. IRS officials encouraged the governmental plans community to continue to raise these issues and indicated that they would be willing to work with them in achieving and maintaining compliance with tax qualification requirements. This is just the beginning; IRS invites members of the governmental plans community to join in the conversation. We will continue the dialogue in a number of ways. For example, on the new Governmental Plans web page, members of the governmental plans community can submit questions, comments, and suggestions to the IRS and the most frequently asked questions (FAQs) will be posted. We will also be considering other venues to reach the governmental plans community and invite them to become part of the solution. Check out the roundtable presentations at G.o_yernmental.Plans -web page. Employee Plans is committed to continuing the dialogue with the governmental plan community. Give us your questions, comments and suggestions at governmentalplansdialogue @irs.gov. Please share this Special Edition with your colleagues. To subscribe to our newsletter, please go to www.irs.g. v ep. All editions of the Employee Plans News are archived there. Palm Beach Gardens Police Pension Fund Summary Plan Description August 2008 Introduction As a participant in the Palm Beach Gardens Police Pension Fund, you are included in a program of benefits to help you meet your financial needs in retirement, or in the event of disability or death. The purpose of this booklet is to give you a brief description of benefits available to you under your pension plan. Planning for retirement begins now. This booklet can be a valuable tool in preparing for your retirement and financial future. If you need any further information on any of the topics presented in this booklet, please contact the Fund Administrator, Pension Resource Center, LLC, or the Board of Trustees. They will answer any questions to help you better understand your benefits. The information presented is a summary of the pension plan as provided in the City of Palm Beach Gardens Code of Ordinances which governs your Pension Fund. The legal citation for your Plan is Chapter 50, Article 111, Section 50 -61 et seq., as amended through June 15, 2006 City of Palm Beach Gardens Code. Any discrepancies between information in this booklet and the Plan will be governed by the Plan. A copy of the Plan can be obtained from the Fund Administrator, Pension Resource Center, LLC. Their address is: Pension Resource Center, LLC 4360 Northlake Boulevard Suite 206 Palm Beach Gardens, FL 33410 (561) 624 -3277 - Telephone (561) 624 -3278 - Facsimile www.resourcecenters.com Board of Trustees Palm Beach Gardens Police Pension Fund Jay Spencer, Chairman David Pierson, Secretary Jules Barone, Trustee Brad Seidensticker, Trustee Wayne Sidey, Trustee TABLE OF CONTENTS DEFINITIONS ......................... ............................... 1 PARTICIPATION IN THE PENSION FUND .. ............................... 2 ELIGIBILITY FOR NORMAL RETIREMENT . ............................... 2 AMOUNT OF A NORMAL RETIREMENT PENSION .......................... 2 EARLY RETIREMENT PENSION ......... ............................... 4 MONTHLY SUPPLEMENTAL BENEFITS ... ............................... 4 SURVIVOR BENEFITS - DEATH BEFORE RETIREMENT ..................... 6 Duty Related Deaths ......... ............................... 6 Non -Duty Related Deaths ..... ............................... 6 DISABILITY RETIREMENT .............. ............................... 7 Duty Disability Retirement ..... ............................... 7 Non -Duty Disability Retirement . ............................... 7 ENDING EMPLOYMENT BEFORE RETIREMENT ........................... 8 ANNUAL PENSION ADJUSTMENTS ...... ............................... 9 FILING FOR RETIREMENT .............. ............................... 9 DEFERRED RETIREMENT OPTION PLAN (DROP) .......................... 9 TRUSTEE TO TRUSTEE TRANSFER ..... ............................... 10 COST OF THE PENSION FUND ......... ............................... 10 ADMINISTRATION OF THE PENSION FUND .............................. 11 INVESTMENTS 11 ACTUARIAL SOUNDNESS ............. ............................... 11 FORFEITURE OF PENSION ............ ............................... 11 REVIEW PROCEDURE ................ ............................... 12 AGENT FOR SERVICE OF LEGAL PROCESS ............................. 13 PLANYEAR ......................... ............................... 13 PERTINENT ACTUARIAL DATA ......... ............................... 14 PENSION INCOME AND DISBURSEMENTS .............................. 15 DEFINITIONS Accumulated contributions - the total of all amounts contributed by a participant to the Palm Beach Gardens Police Pension Fund. Average Monthly Earnings - the monthly average of salary during the last five years of employment. Beneficiary - an individual who is receiving a survivor benefit from the Pension Fund following the death of a participant. Board - the Board of Trustees which administers, manages and operates the Pension Fund. Credited service - A participant's years of service as a police officer in Palm Beach Gardens Police Department. Also includes those years which a participant has purchased by making a contribution to the plan. Years of service can be purchased for years or fractional parts of years that a police officer served in the United States Military service, or service with another municipal, county, state, or federal law enforcement agency. Participant - a Palm Beach Gardens police officer participating in the Pension Fund. Salary - Average monthly earnings as reported to Internal Revenue Service for income tax purposes, plus deferred compensation. Palm Beach Gardens Pagel Police Pension Fund August 2008 PARTICIPATION IN THE PENSION FUND Each police officer employed in the City of Palm Beach Gardens Police Department is a Pension Fund participant. A police officer is an employee who is certified as a law enforcement officer as a condition of employment in accordance with the provisions of §9344 943.1395, Florida Statutes. The Police Chief may elect not to participate in the Plan. ELIGIBILITY FOR NORMAL RETIREMENT A police officer who either has 20 or more years of credited service or is age 52 or older and has 10 or more years of credited service is eligible for normal retirement. An application for normal retirement must be filed with the Fund Administrator and approved by the Board of Trustees. AMOUNT OF A NORMAL RETIREMENT PENSION The amount of a normal retirement pension is based on a participant's credited service, average monthly earnings and pension multiplier. Average Monthly Earnings is the monthly average of salary during the last five years of employment producing the highest average. Salary includes base salary, overtime, longevity pay and may include other types of pay. Credited service is generally a participant's period of employment as a police officer in the Police Department of the City of Palm Beach Gardens, measured in years and completed months of a year. Special conditions apply if a participant has a break in service as a police officer. In certain circumstances, limited periods of military service and police service with another Florida municipality may be recognized as credited service. Promptly contact the Fund Administrator if eithe any of these situations appl+esy and you have not already resolved the question. The pension multiplier is 3.5 %. Palm Beach Gardens Page 2 Police Pension Fund August 2008 Sample Benefit Calculation The following example illustrates how average monthly earnings are calculated. This is an example for planning purposes only and does not indicate the actual benefit for any participant. Year Before Sample Salary Retirement for Year 5th 25,000 4th 26,000 3rd 27,000 2nd 28,000 1 st 29,000 To calculate final average salary, total the last five years salary and divide by 60: $25,000 + $26,000 + $27,000 + $28,000 + $29,00.0 = $2,250 0 The monthly normal retirement pension is calculated as follows: 3.50% of average monthly earnings multiplied by credited service up to a maximum of 100 %. The following is an illustration of a normal retirement pension calculation. This is an example for planning purposes only and does not indicate the actual benefit for any participant. (1) Total credited service 20.0 yrs. (2) Average monthly earnings $2,250 (3) 3.50% of line (1) - .035 x 20 70% (4) Line (3) times line (2) 70% x 2250 $1,575.00 Palm Beach Gardens Page 3 Police Pension Fund August 2008 EARLY RETIREMENT PENSION A police officer who is age 50 and has 10 years of service is eligible for early retirement. The early retirement benefits that are payable to a police officer are determined in the same manner as the normal retirement benefit but are reduced by 3% for each year by which the member's age at retirement preceded the member's normal retirement age to take into account the police officer's younger age and the earlier commencement of retirement income payments. MONTHLY SUPPLEMENTAL BENEFITS Beginning October 1, 2004, all retirees in payment status are entitled to a monthly supplemental pension benefit equal to $12.50 per year of service. This benefit is payable monthly for the life of the retiree. This benefit is payable to a surviving beneficiary of a retiree on a monthly basis for the period of time that the surviving beneficiary is in receipt of a pension in accordance with the form of benefit chosen at the time that benefits begin. FORMS OF PAYMENT OF A PENSION Normal Form The standard form of payment for the pension described above is a benefit payable for 10 years certain, in other words, you are guaranteed 120 monthly payments. The retiree will receive a benefit for life. However, if the retiree dies prior to receiving 120 payments, then pension payments will continue until a total of 120 payments have been made. A participant may designate a beneficiary to receive the benefit payable, if any, upon the death of the retired participant. When there is no beneficiary named, the benefit will be paid to the spouse, dependent children, or dependent living parents of the police officer, or if there is no such survivor, then to the deceased police officer's estate. IT IS IMPORTANT TO KEEP YOUR BENEFICIARY DESIGNATION UP TO DATE Palm Beach Gardens Page 4 Police Pension Fund August 2008 Optional Forms of Payment Optional forms of payment are available in lieu of the normal form described above. The amount of pension under each optional form has the same actuarial value as the normal form of payment (lifetime payments with 120 payments guaranteed). Option I - Joint and 100% Survivor - The joint and 100% survivor form of payment pays the retired participant a reduced monthly pension for life. Upon the retired participant's death, the beneficiary (a spouse or relative) designated when the form of payment was elected will be paid 100% of the reduced monthly pension for life. Option II - Joint and 75% Survivor - The joint and 75% survivor form of payment pays the retired participant a reduced monthly pension while the retired participant is alive. The reduction is not as great as under Option I. Upon the retired participant's death, the beneficiary (a spouse or relative) will be paid 75% of the reduced monthly pension for life. Option III - Joint and 66 -2/3% Survivor - The joint and 66 -2/3% survivor form of payment pays the retired participant a reduced monthly pension while the retired participant is alive. The reduction is not as great as under Option II. Upon the retired participant's death the beneficiary (a spouse or relative) will be paid 66 -2/3% of the reduced monthly pension for life. Option IV - Joint and 50% Survivor - The joint and 50% survivor form of payment pays the retired participant a reduced monthly pension while the retired participant is alive. The reduction is not as great as under Option III. Upon the retired participant's death, the beneficiary (a spouse or relative) will be paid 50% of the reduced monthly pension for life. Option V - Life Annuity - The straight life form of payment pays the retired participant an increased monthly pension for life. The amount of this benefit is more than the normal form and other optional forms. No monthly pension is ever paid a spouse, child, dependent parent or other beneficiary under this form of payment. Option VI - Other - In lieu of the other optional forms, benefits may be paid in any form approved by the Board so long as it is the actuarial equivalent of the benefits otherwise payable. Palm Beach Gardens Page 5 Police Pension Fund August 2008 The Fund Administrator can give you an estimate of the amount of your pension under any of the optional forms of payment. A request for an optional form of payment must be submitted in writing to the Board before the effective date of retirement. An optional form of payment cannot be changed after the first pension check is cashed. The election of Options I, li, III and IV shall be null and void if the designated beneficiary dies before the member's payments commence. SURVIVOR BENEFITS - DEATH BEFORE RETIREMENT Dutv Related Deaths The surviving spouse, or in certain circumstances surviving children, of a participant who dies while employed in the Police Department as a police officer will be paid a duty death pension if the Board finds the death to be the result of causes arising out of and in the course of the participant's performance of duty as a police officer. A surviving spouse is paid a monthly pension, for life, of 50% of the participant's average monthly earnings. An unmarried child under the age of 18, or age 24 if a full time student, is paid a monthly pension in the amount of an equal share of 50% of the participant's average monthly earnings if a surviving spouse is not being paid a pension. Payment terminates upon the earlier of adoption, marriage, attainment of age 18 (age 24, if a full time student, or loss of full time student status) or death. The death benefit is paid to the estate if the participant leaves neither a surviving spouse nor an eligible surviving child. In any of these cases, the board may, in its sole discretion, direct that the actuarial value of the monthly payment be paid as a lump sum. Non -Duty Related Deaths If a participant who has 5 or more years of credited service dies while employed in the Police Department as a police officer and the death is not in the line of duty, the beneficiary is paid a pension equal to the benefits otherwise payable at early or normal retirement age. If no pension is paid or will become payable on account of the death of a Palm Beach Gardens Page 6 Police Pension Fund August 2008 participant, the participant's accumulated contributions are paid to the parti- cipant's designated beneficiary or to the participant's estate if there is no designated beneficiary. DISABILITY RETIREMENT A pension may be payable to a participant who becomes disabled while employed in the police department as a police officer. Eligibility and the amount of the pension are dependent on whether or not the disability occurred in the line of duty. The disability must arise from a mental or physical illness, disease or injury which totally and permanently prevents the participant from performing useful and efficient service as a police officer in the Palm Beach Gardens Police Department. No police officer shall be permitted to retire under a disability retirement until examined by a duly qualified physician or surgeon to be selected by the Board of Trustees and the physician or surgeon finds the participant to be disabled from performing the functions of a police officer. The final determination of disability is made by the Board. If disability results from excessive and habitual use of drugs, intoxicants or narcotics, willful and illegal participation in fights, riots or civil insurrection, or while committing a crime, or injury or disease sustained while serving in an armed force, no disability pension can be awarded. A participant who is retired for disability may be required to undergo periodic medical examination under the direction of the Board of Trustees to determine if the retired participant is capable of performing the duties of a police officer in the Department. Duty Disability Retirement If the Board finds the disability to have arisen out of and in the course of the participant's performance of duty as a Palm Beach Gardens police officer, the amount of pension is equal to 60% of the participant's. rate of pay at the time of disability or the accrued pension benefit, whichever is greater provided the disability has continued for a period of six months. Palm Beach Gardens Page 7 Police Pension Fund August 2008 Non -Duty Disability Retirement There is a 10 year credited service requirement for disability retirement if the disability is not the result of performing duty as a Palm Beach Gardens police officer. Additionally, there is no non -line of duty disability for a member who has reached or passed normal retirement eligibility. The amount of pension is calculated the same as a normal retirement pension based on average monthly earnings and credited service at the time of disability. The minimum pension is 25% of average monthly earnings or the accrued pension benefit, whichever is greater. There is no non -duty disability pension if a police officer's credited service is less than 10 years. In that event, accumulated contributions are refunded. ENDING EMPLOYMENT BEFORE RETIREMENT If a participant with less than 10 years of credited service quits or is fired from employment as a Palm Beach Gardens police officer, the participant shall be entitled to a retirement benefit subject to the vested percentages below: Years of credited Service Vested % Under 5 0% 5 25 6 40 7 55 8 70 9 85 10 or more 100 A participant may elect to receive the return of all contributions in lieu of all other benefits under the plan. If a participant has at least 10 years of credited service when employment as a police officer terminates, the right to a deferred normal retirement is retained so long as accumulated contributions are left on deposit in the Pension Fund. The amount of deferred normal retirement pension is calculated using average monthly earnings and credited service at the time of termination of employment as a police officer. Normal retirement and payment of a pension is available upon application on or after age 52. The amount of pension may be subject to Palm Beach Gardens Page 8 Police Pension Fund August 2008 early retirement reduction in accordance with the chart on page 4. Credited service will be reinstated if re- employment as a Palm Beach Gardens police officer occurs and any withdrawn accumulated contributions are repaid within 5 years of re- employment. The repayment must include interest from the date of withdrawal to the date of repayment. The election to purchase such time must be made within six months of date of hire. Additionally, service time with the military, another federal, state, county or municipal police department may be purchased. ANNUAL PENSION ADJUSTMENTS (non - guaranteed) Retired participants (including DROP members) and beneficiaries who have been in receipt of a pension benefit for at least one year on the distribution date may receive an adjustment to their pension benefit amount as of July 1" of each year if the pension fund assets have earned more than 8.5% as of September 301h and the pension fund has positive actuarial experience. The potential total distribution is based upon an actuarial formula which is contained in the pension plan document. Essentially, the retirees and beneficiaries share in the positive investment experience of the retiree portion of the pension fund over 8.5 %. All pension recipients monthly pension benefits will be increased on a percentage basis and the percentage will be the same for all pension recipients. The percentage increase will be determined by the actuary and will equal the earnings above 8.5% on the assets reserved to pay pension recipients. The distribution is limited to a 4% increase in any one year. A retiree must be in receipt of a pension for at least one year on July 1 to be entitled to an adjustment. Conversely, if the Fund does not earn more than 8.5 %, there will be no pension adjustment. FILING FOR RETIREMENT In order to ensure that you receive your pension on time, you should file your application with the Fund Administrator at least 30 days before retirement. All forms can be obtained from the Fund Administrator at the address on the Introduction page. Penalties will be imposed for making a false or misleading statement to obtain a pension benefit. It can take up to 60 days after your date of retirement to receive your first pension check. Palm Beach Gardens Page 9 Police Pension Fund August 2008 DEFERRED RETIREMENT OPTION PLAN (DROP) A participant may elect DROP participation prior to completing 25 years of credited service if the participant is eligible for normal retirement. DROP participation ends at the first to occur of: 1) termination of employment, 2) 30 years of credited service, or 3) 5 years of participation. Upon the effective date of DROP participation a participant's pension amount is calculated based on credited service and final average salary at that time and the amount remains permanently frozen. The participant's DROP account is credited with monthly amounts equal to the frozen pension during the period of DROP participation. DROP accounts are credited with investment earnings each September 30 during the DROP period. Members may choose between the rate of return on the pension fund or a fixed rate of 6.5% as the investment earnings credit. No investment earnings or monthly credits are made after the end of the DROP period, if the member remains employed. Participant DROP accounts are subject to administrative charges. A participant may elect payment of the DROP account at any time following termination of employment but not later than age 70 '/Z. Payment is available under several options. Detailed information is available from the administrator. TRUSTEE TO TRUSTEE TRANSFER To minimize the tax consequences of rolling DROP accounts over to an IRA or another qualified plan, direct trustee -to- trustee transfers are available. Please see the administrator for the appropriate forms. COST OF THE PENSION FUND Participants are required to contribute 8.60% of covered salary. Contributions are deducted from each paycheck and credited to the participant's Pension Fund account. Palm Beach Gardens Page 10 Police Pension Fund August 2008 The City of Palm Beach Gardens also contributes to the Pension Fund. The amount of City contribution is mathematically determined in accordance with State statutes to finance Pension Fund benefits as they are earned. ADMINISTRATION OF THE PENSION FUND The Pension Fund is administered by a Board of Trustees which is responsible for overseeing the investment of Pension Fund assets and application of the provisions of the Palm Beach Gardens Code. The Board has authority over distribution of all pensions and makes final decisions on claims and appeals. Five trustees comprise the Board: two legal residents of the City appointed by the City Commission, two full -time police officers elected by Pension Fund participants and a trustee chosen by the majority of the other four trustees. Pension Fund assets are maintained and invested entirely separate from City assets and cannot be used for any purpose other than those specified in the Plan. INVESTMENTS The assets of the Plan are presently invested by Investment Counsel Company and Rhumbline under investment guidelines adopted by the Board of Trustees in consultation with their investment advisors. ACTUARIAL SOUNDNESS The actuary for the Plan has determined that the Plan is actuarially sound and can adequately fund the benefits based upon projected contributions to the Plan and investment earnings. FORFEITURE OF PENSION Any Member who is convicted of any of the below offenses committed prior to retirement shall forfeit all rights and benefits under this Fund, except for a refund of accumulated contributions. The specified offenses are: (1) Committing, aiding or abetting of an embezzlement of public funds; (2) Committing, aiding or abetting of any theft by a public officer or employee from employer; Palm Beach Gardens Page 11 Police Pension Fund August 2008 (3) Bribery in connection with the employment of a public officer or employee; (4) Any felony specified in Chapter 838, Florida Statutes; (5) The committing of impeachable offense (6) The committing of any felony by a public officer or employee who, willfully and with intent to defraud the public or the public agency for which the public officer or employee acts or in which he or she is employed of the right to receive the faithful performance of his or her duty as a public officer or employee, realizes or obtains, or attempts to realize or obtain, a profit, gain, or advantage for himself or herself or for some other person through the use or attempted use of the power, rights, privileges, duties, or position of his or her public office or employment position. (7) The committing on or after October 1, 2008, of any felony defined in §800.04, Florida Statutes, against a victim younger than 16 years of age, or any felony defined in Chapter 794, Florida Statutes against a victim younger than 18 years of age, by a public officer or employee through the use or attempted use of power, rights, privileges, duties, or position of his or her public office or employment position. Any Member who has received benefits from the Plan in excess of his accumulated contributions shall be required to repay the Fund. The Board may implement legal action necessary to recover such funds. Additionally, a Member who makes a false or misleading statement to obtain retirement benefits shall commit a misdemeanor of the first degree and if convicted, the Member shall forfeit his /her benefit. REVIEW PROCEDURE Any member, former member, or beneficiary who has been denied a benefit by a decision of the Board shall be entitled to request in writing that the Board give further consideration to the claim. This request, together with a written statement of the reasons why the applicant believes his claim should be allowed, shall be filed with the Board no later than 20 days after receipt of the written notification of the denial. If no appeal is filed within this time period, the proposed order shall be final. The Board shall then conduct a hearing within 45 days of the receipt of the appeal. Written notice of the hearing will be sent by certified mail to the Palm Beach Gardens Page 12 Police Pension Fund August 2008 applicant 10 days prior to the hearing. The applicant may be represented at the hearing by an attorney or other representative of his /her choosing. During the hearing the applicant shall have the opportunity to submit written and oral evidence and arguments in support of his /her claim. The applicant shall also have the opportunity to review the Board's file at or prior to the hearing. Either the applicant of the Board may request that a court reporter record the proceedings. In this event a complete written transcript of the proceedings shall be furnished to both parties at the expense of the party requesting the attendance of the court reporter. Within 20 days after rendering its order, the Board will send by certified mail, a copy of the order to the applicant. AGENT FOR SERVICE OF LEGAL PROCESS Board of Trustees Pension Resource Center, LLC 4360 Northlake Boulevard Suite 206 Palm Beach Gardens, Florida 33410 PLAN YEAR The plan year is the twelve month period beginning each October 1. Records are kept on a fiscal year basis. Palm Beach Gardens Page 13 Police Pension Fund August 2008 Palm Beach Gardens Page 14 Police Pension Fund August 2008 PERTINENT ACTUARIAL DATA Palm Beach Gardens Page 15 Police Pension Fund August 2008 PENSION INCOME AND DISBURSEMENTS Palm Beach Gardens Page 16 Police Pension Fund August 2008 JILL HANSON* mjhanson 0 hpjlaw.com ANN H. PERRY apeny0 hpfaw.com BONNI SPATARA JENSEN bsjensen 0 hpjlaw.com *Aso Aowirreo in N.Y. HANSON, PERRY & JENSEN, P.A. 400 EXECUTIVE CENTER DRIVE, Su(TE 207 - WEST PALM BEACH, FLORIDA 33401 -2922 MEMORANDUM TO: Board of Trustees Palm Beach Gardens Police Pension Fund FROM: Bonni S. Jensen Hanson, Perry & Jensen, P.A. DATE: October 2, 2008 SUBJECT: Florida Qualified Public Depository ("QPD ") TELEPHONE (561) 686 -6550 FACSIMILE (561) 686 -2802 In these turbulent times, we want to ensure that the necessary steps are taken to protect the assets of your pension fund. Under Florida law, your bank must be a Qualified Public Depository ( "QPD ") which meets the requirements of §280, Florida Statutes. Section 280.17 details the specific responsibilities of a public depositor (in your case, the pension fund). If these statutory responsibilities are met, then the deposits placed in any QPD are protected from loss, without limit. The responsibilities cited are: 1. Use a QPD for any funds placed on deposit. this includes, but is not limited to, checking, savings, money market deposit accounts as well as certificates of deposit. 2. For each deposit account established at a QPD, complete and retain as a record the Public Deposit Identification and Acknowledgment Form. (Copy Attached) 3. File the Public Depository Annual Report of the Chief Financial Officer each year. (Copy Attached) Florida QPD Memo to Trustees October 2, 2008 Page 2 of 2 According to a letter dated January 14, 2008 (attached) published by the State Bureau of Collateral Management ( "BCM "), protection of Florida's public requires only that the public depositor meet the statutory responsibilities and is not based on the amount or type of collateral pledged to the State by the QPD. If a QPD fails and then is liquidated, any public depositor that has met its statutory responsibilities would be protected from loss in the following manner: The applicable amount of deposit insurance would be paid by the FDIC. If a public depositor suffered a loss in excess of the FDIC limits, then the State BCM would liquidate the collateral pledged by the failed QPD. If the liquidation of the failed QPD's collateral was not sufficient to pay all public depositor claims, then all QPD's participating in the public deposits program would be assessed an amount of money to cover the loss. BSJ/ka Attachments E -copy: Administrator DEPARTMENT OF FINANCIAL SERVICES j Division of Treasury — Bureau of Collateral Management PUBLIC DEPOSIT IDENTIFICATION AND ACKNOWLEDGMENT FORM Public Depositor Account Information Account Number: Type of Account (CD /other): Account Name: Full Name as it Appears on the Records of the Qualified Public Depository Accountholder's Federal Employer Identification Number (FEIN): Qualified Public Depository (QPD) Information QPD's Full Legal Name: For Protection Under Chapter 280, Florida Statutes, Depository MUST be a QPD QPD's Address: QPD's FEIN: Public Deposit Identification I DECLARE that the above referenced account meets the definition of a public deposit pursuant to Section 280.02, Florida Statutes (F.S.), and is not exempt under the laws of Florida. A current Public Deposit Identification and Acknowledgment Form will be maintained as a valuable record of the public depositor. The current Public Deposit Identification and Acknowledgment Form with original signatures will need to be submitted in the event the above named QPD becomes insolvent or in default and a claim is filed with the Chief Financial Officer, State of Florida's office. Signature for Public Depositor: Printed Name & Title: ----------------------------------------- Qualified Public Depository Acknowledgment Date: I ACKNOWLEDGE that the above referenced account has been identified to this QPD as a public deposit. Pursuant to Chapter 280, F.S., this account will be classified on the records of this QPD as a public deposit, collateralized as such, and reported as such on the Public Depository Monthly Report J1 -1003, Public Depository Annual report J14 -1004, and any other report of public deposits requested by the Chief Financial Officer, State of Florida. Signature for Qualified Public Depository: Date: Printed Name & Title: DFS -J1 -1295 NEW 06/98 To whom it may concern, The Bureau of Collateral Management (BCM) has received inquiries from several Florida governmental units about the protection of their funds under the state's public deposits program. We want to provide information to all interested parties about the program and how Florida public deposits are protected from loss. Please review the following information and then feel free to contact our office if you have questions or need any clarification. Chapter 280, Florida Statutes (F.S.) governs Florida public deposits. Section 280.17, F.S. details the specific responsibilities of a public depositor. If these statutory responsibilities are met then the deposits placed in any qualified public depository (QPD) are protected from loss, without limit. These responsibilities are noted below. • Use a QPD for any funds placed on deposit. This would include, but not be limited to, checking, savings, and money market deposit accounts as well as certificates of deposit. - . • For each deposit account established at a QPD, complete and retain as a record the Public Deposit' Identification and Acknowledgement form. • File the Public Depository Annual Report to the Chief Financial Officer each year. . . BCM wants Florida's public depositors to understand that the protection of their deposits at QPDs is predicated on meeting their statutory responsibilities and is not based on either the amount or type of collateral pledged to our office by QPDs participating in the public deposits program. Should a QPD fail and be subject to - liquidation, any public depositor that has met its statutory responsibilities would be protected from loss in the following manner. s The applicable amount of deposit insurance would be paid by the FDIC. • If a public depositor suffered a loss due to uninsured public deposits, our office would then liquidate the collateral pledged to our office by the failed QPD in order to provide funds for the payment of such losses. BCM has a perfected security interest in a QPD's collateral via the Collateral Control Agreement that each QPD's board of directors has adopted as a condition of joining the program. • If the liquidation of the failed QPD's collateral was not sufficient to pay all public depositor claims, then all QPDs participating in the public deposits program would be assessed an amount of money, proportional to the amount of public deposits they have on deposit, in order to cover any remaining loss to public depositors. Our authority in this area derives from the Contingent Liability Agreement that each QPD's board of directors has adopted as a condition of joining the program. Each QPD is potentially liable for any losses to public depositors that may occur as the result of another QPD's failure. Section 280.13, F.S. establishes the type of securities that are eligible to be pledged to the BCM. As previously mentioned, these assets are a part of the overall security for the public deposits program. FLORIDA DEPARTMENT OF FINANCIAL SERVICES Kenneth J. Lee • Financial Analyst Supervisor Division of Treasury • Bureau of Collateral Management 200 E. Gaines St. *Tallahassee, FL 32399 -0345 • Tel. 850 -413 -3383 •Fax 850- 488 -0216 • SC 293 -3383 Email •Kenneth.Lee@fldfs.com Affirmative Action •Equal Opportunity Employer Page 2 January 14, 2008 Additionally, each QPD has a vested interest in BCM administering the public deposits program as effectively as possible. BCM does so through the assignment of required collateral pledge levels, the required and regular reporting of public deposits, and of course the required pledge or deposit of eligible collateral. BCM has the authority to limit a QPD's permitted public deposits, to increase collateral pledge levels, to limit the type of collateral BCM will accept, and to request a QPD's withdrawal from the program if necessary. We make such decisions each quarter of the year based on independent bank rating services, on the financial analysis we conduct on a QPD's financial statements, on information gathered from state and federal banking regulators, and on such other information that might be available to us. We hope that this information has been helpful to understanding the protection of public deposits in Florida. If you have any questions, please contact Kenny Lee at (850) 413 -33 83 or e-mail Kenny at Ke`nneth.lee fldfs.coM and he'll be happy to answer any of your questions. -w- I V. L 1�111rdSttiltlaCl ' �' Requirements of Qualified Public Depositories retrodvon:: (from Chapter 280.16, Florida Statutes) 'Cash, Daposks Carh'fie� of Depu�t (1) Qualified public depositories shall: 7rwt Busne$ CRYSCL&WWs (a) Take the following actions for each public deposit account: eootc•Enby corm I U*S . ! 1. Identify the account as a "Florida public deposit" on the deposit account record with the name of the public depositor or provide a unique code for Program I the account for such designation. Administration Introdudmn 2. When the form prescribed by the Chief Financial Officer for acknowledgment of receipt of each public deposit account is presented to QPOS the qualified public depository by the public depositor opening an account, RequiarCustodians the qualified public depository shall execute and return the completed form to the public depositor. Governmental Units Unks 3. When the acknowledgment of receipt form is presented to the qualified Download Forms public depository by the public depositor due to a change of account name, account number, or qualified public depository name on an existing public FAQs deposit account, the qualified public depository shall execute and return the completed form to the public depositor within 45 calendar days after such presentation. 4. When the acknowledgment of receipt form is presented to the qualified public depository by the public depositor on an account existing before July 1, 1998, the qualified public depository shall execute and return the completed form to the public depositor within 45 calendar days after such presentation. (b) Within 15 days after the end of each calendar month, or when requested by the Chief Financial Officer, submit to the Chief Financial Officer a written report, under oath, indicating the average dally balance of all public deposits held by it during the reported month, required collateral, a detailed schedule of all securities pledged as collateral, selected financial information, and any other information that the Chief Financial Officer determines necessary to administer this chapter. (c) Provide to each public depositor annually, not later than October 30, the following information on all open accounts identified as a "Florida public deposit" for that public depositor as of September 30, to be used for confirmation purposes: the federal employer identification number of the qualified public depository, the name on the deposit account record, the federal employer identification number on the deposit account record, and the account number, account type, and actual account balance on deposit. Any discrepancy found in the confirmation process shall be reconciled before November 30. (d) Submit to the Chief Financial Officer annually, not later than November 30, a report of all public deposits held for the credit of all public depositors at the close of business on September 30. Such annual report shall consist of public deposit information in a report format prescribed by the Chief Financial Officer. The manner of required filing may be as a signed writing or electronic data transmission, at the discretion of the Chief Financial Officer, (e) Submit to the Chief Financial Officer not later than the date required to be filed with the federal agency: 1. A copy of the quarterly Consolidated Reports of Condition and Income, and any amended reports, required by the Federal Deposit Insurance Act, 12 U.S.C. ss. 1811 et seq., if such depository is a bank; or https: / /apps.fldfs.com/ CAP_ Web/ PublicDeposits /gpd_requirements.aspx 9/25/2008 v1.7.0.0 �__...,.. . ... . r- of X- 2, A copy of the Thrift Financial Report, and any amended reports, required to be filed with the Office of Thrift Supervision if such depository is a savings and loan association. (2) The following forms must be made under oath: (a) The agreement of contingent liability. (b) The public depository pledge agreement. (3) Any information contained In a required report of a qualified public depository together with any information required of a financial institution that Is not a qualified public depository, shall, if made confidential by any law of the United States or of this state, be considered confidential and exempt from the provisions of s. 119.07(1) and not subject to dissemination to anyone other than the Chief Financial Officer; however, it is the responsibility of each qualified public depository and each financial institution from which Information is required to inform the Chief Financial Officer of information that is confidential and the law providing for the confidentiality of that information, and the Chief Financial Officer does not have a duty to inquire into whether information is confidential. Too of https: / /apps.fldfs.com/ CAP_ Web/ PublicDeposits /gpd_requirements.aspx 9/25/2008 DEPARTMENT OF FINANCIAL SERVICES ' Division of Treasury — Bureau of Collateral Management PUBLIC DEPOSITOR ANNUAL REPORT TO THE CHIEF FINANCIAL OFFICER For the Period Ended September 30, Public Depositor (PD) Information PD's Full Legal Name: PD's Mailing Address: PD's Federal Employer Identification Number (FEIN): ------------------------------------------------------------------------- - - - - -- WE ASSERT that we are an official custodian of moneys that meet the definition of a public deposit as defined in Chapter 280, Florida Statutes and that such moneys are placed in Qualified Public Depositories (QPDs) unless exempt under the laws of this state. We acknowledge our responsibility for any research or defense required to support such assertion. WE VERIFY that we have: (1) Performed an annual confirmation of all open public deposit accounts as of the close of business on September 30 for each QPD. All discrepancies found in the confirmation process were reconciled before November 30. Information confirmed included the following: a. FEIN of the QPD. b. Name on the deposit account record. c. FEIN on the deposit account record. d. Account number. e. Account type. f. Actual account balance on deposit. (2) Confirmed that a current Public Deposit Identification and Acknowledgment Form has been completed for each public deposit account and is in our possession. (3) Provided as part of this report a separate listing of QPDs at which we have open public deposit accounts. This filing has been completed in the report format prescribed by the Chief Financial Officer, State of Florida for this year. Under penalties of perjury, I attest that I am authorized to sign on behalf of the Public Depositor identified above, and also declare that I have read the information provided on this Public Depositor Annual Report to the Chief Financial Officer and that the facts stated in it are true to the best of my knowledge and belief. Authorized Signature for Public Depositor: Printed Name and Title: Phone:( ) Suncom: DFS -J1 -1009 REV. 09103 Fax: ( ) Email: Date: PUBLIC DEPOSITOR ANNUAL REPORT TO THE CHIEF FINANCIAL OFFICER For the Period Ended September 30, List of Qualified Public Depositories for Public Depositor's Full Legal Name Listed below are the FEIN and name for all Qualified Public Depositories at which we have open public deposit accounts, including accounts with zero balances. FEIN of Qualified Name of Qualified Public Depository Public Depository DFS -J1 -1009 2 REV. 09/03 PENSION RESOURCE CENTERS Accounts Payable Check Register FOR: PALM BEACH GARDENS POLICE Check Numberl Date I Payee and Description Amount 2127 August 6, 2008 Gabriel Roeder Smith & Company $1,800.00 Actuarial Services thru 7/31/08 2128 August 6, 2008 Thistle Asset Consulting $3,313.00 Performance Monitor - 2nd Qtr 2008 2129 August 6, 2008 Rhumline Advisers $2,680.37 Management Fees - 2nd Qtr 2008 2130 August 6, 2008 Hanson, Perry & Jensen $755.50 Legal Services Rendered Thru 7/15/08 2131 August 6, 2008 ICC Capital Management $19,793.57 Management Fees - 3rd Qtr 2008 2132 August 6, 2008 Pension Resource Center $2,275.00 August Admin Fee 2133 September 3, 2008 Hanson, Perry & Jensen $1,239.44 Legal Services Rendered Thru 8/15/08 2134 September 3, 2008 Pension Resource Centers, LLC $2,287.50 September Admin. Fees 2135 September 25, 2008 Jay Spencer $564.36 Buy back overpayment 2136 October 3, 2008 Pension Resouce Center $2,275.00 October Admin. Fee 2137 October 7, 2008 Cherry, B & Holland $1,000.00 Progress Billing - audit y/e 9/30/07 2138 October 7, 2008 Ellen Schaffer $236.25 Computer Programming & Consulting Fees 2139 October 7, 2008 Gabriel Roeder Smith & Company $2,483.00 Actuarial Services thru 8/31/08 Total $41,742.99 Chairman Secretary Date rairrr beacri Gardens Police UUUUL 1 L / DATE VENDOR NO. VENDOR: 000000000012 08/08 000000000012 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 000000.000105613 08/06,/08 . 1,800.00 1,800..00 .00 11800.0( eck Total 1,800.0( Palm Beach Gardens Police 00002127 4360 Northlake Blvd Ste 206 Palm Beach Gardens, Fl 33410 63- 8376/2670 CHECK NO. CHECK DATE VENDOR NO. 2127 08/06/08 000000000012: AMOUNT ONE THOUSAND EIGHT HUNDRED AND 00 /100 $1,800.00 A SMITH & COMPANY MI 48278 VOID AFTER 180 DAYS 11800002127`0 ll:26 708 3 76 3i:0063365603n8 C"A 1�� [� 1 Gabriel Roeder Smith &Company J;w Consultants & Actuaries One East Broward Blvd. Suite 505 Ft. Lauderdale, Florida 33301 -1872 (954) 527 -1616 BOARD OF TRUSTEES, CITY OF PALM BEACH GARDENS POLICE OFFICERS PENSION FUND Mr. J. Scott Baur, Administrator The Pension Resource Center, Inc. 4360 Northlake Blvd., Suite 206 0.. ..I w. A Palm Beach Gardens, FL 33410 0 (L 7/31/2008 Invoice 105613 Dept. # 78009 Gabriel Roeder Smith & Company PO Box 78000 Detroit, Michigan 48278 -0009 or ACH Payment to: Gabriel Roeder Smith & Company JPMorgan Chase, ABA #: 072000326 Account #: 0486723 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. 'I'm Palm Beach Gardens Police 00002128 4360 Northlake Blvd Ste 206 Palm Beach Gardens, A 33410 63- 8376/2670 CHECK N0, CHECK DATE VENDOR NO. 2128 08/06/08 1000000000322 AMOUNT THREE HUNDRED THIRTEEN AND 00 /100 mom $3,313.00 TO THE THISTLE ASSET CONSULTING, INC. ORDER 1321 -PIAZZ -DELLE PALLOTTOLE OF BOYNTON BEACH FL 33426 VOID AFTER 180 DAYS 11'0000 2 1 2811' is 2 6 ?08 3? 6 31:00 6 3 3 6 5 60 311' Palm Beach Gardens Police 00002128 DATE VENDOR NO. VENDOR: 000000000322 08/08 000000000322 INVOICE NUMBER I INVOICE DATE INVOICE AMOUNT AMOUNT PAID I DISC. TAKEN I NET AMOUNT Thistle Asset Consulting, Inc. 1321 Piazz Delle Pallottole Renaissance Commons Boynton Beach FL. 33426 (561) 737 -3996 Palm Beach Gardens Police Pension Fund Mr. Scott Bauer The Pension Resource Center, LLC 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 Invoice Date Invoice # 7/21/2008 2008138 Please Remit To: Thistle Asset Consulting 1321 Piazz Delle Pallottole Boynton Beach, Florida 33426 USA Reports - Executive June 30, 2008 11 3,156.00 Cost of Living Increase = Max(COL Index, 5 %) = Max(3.9 %, 5 %) _ $3,156 11 157.00 0.05 = $157.80 Total 1 $3,313.00 Balance Due $3,313.00 1100000 2 L 2911' 1:2670837631:006336560311' Palm Beach Gardens Police 00002129, 4360 Northlake Blvd Ste 206 Palm Beach Gardens, FI 33410 63 /2670 3ANIC ATLANTIC CHECK NO. CHECK DATE VENDOR NO. 2129 08/06/08 000000000216 PAY - - AMOUNT TWO-THOUSAND SIX HUNDRED EIGHTY AND 37/100 $2,680.37 TO THE RHUMLINE ADVISERS ORDER- . 30 ROWES WHARF QF -ASTReM&OV ATURE BOSTON MA 02110 VOID AFTER 180 DAYS 1100000 2 L 2911' 1:2670837631:006336560311' R une 2nd Qtr 2008 Investment Advisory Fees Jug 2 1 2003 BY:_ July 10, 2008 Invoice # 28NP84 Account: Palm Beach Gardens Police Fund S&P 500 Pooled Index Fund S&P 400 Pooled Index Fund S&P 600 Pooled Index Fund Pooled Combined Market Values Period ending L811,L820,L830 413012008 5131/2008 613012008 Total Average Market Value Basis Points 0.0010 X 0.0007 X Annual Fee: Quarterly Fee: Wire transfer information: for RhumbLine Advisers Rockland Trust 288 Union St. Rockland, Ma 02370 ABA# 011304478 acct ben eficiary:2970003824 $11,126,620 $11,431,062 $10,534,364 $33,092,045.93 $11,030,681.98 10,000,000.00 10, 000.00 1,030,681.98 721.48 $10,721.48 $2,680.37 Or by check, Please make payment to: RhumbLine Advisers 30 Rowes Wharf, Suite 35( Boston, MA 02110 -3326 RhumbLine Advisers • 30 Rowes Wharf, Boston, MA 02110 -3326 • Tel: (617) 345 -0434, Fax: (617) 345 -0675 VOID AFTER 180 DAYS HANSON, PERRY & JENSEN, P.A. 400 Executive Center Drive Suite 207 West Palm Beach, FL 33401 Invoice submitted to: Palm Beach Gardens Police Pension Fund Scott Baur & Bonnie Lindberg & Audrey Ross -via email c/o Pension Resource Center 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens FL 33410 Copy to: Chairman & Secretary July 21, 2008 In Reference To: FOR PROFESSIONAL SERVICES RENDERED AS FOLLOWS: Client/ File No.: 0003 Invoice #62443 Professional Services Hrs /Rate Amount Custodian - Fiduciary Trust 7/8/2008 BSJ E -Mail 0.35 70.00 E -Mail to Scott Baur re: authorization letter and form W9 200.00 /hr Review email from Ann Orsek Custodian - Fiduciary Trust KA E -mails 0.25 18.75 E -mails with Ann Orsek 75.00 /hr Custodian - Fiduciary Trust SUBTOTAL: [ 0.60 88.751 Misc Matters 6/16/2008 KA E -Mail 0.25 18.75 E -Mail to Jay Spencer Financial Statements §112.0801 per his request 75.00 1hr Misc Matters 7/10/2008 BSJ Review 0.50 100.00 Review proposed changes to Rule 60T of the Florida Administrative Code 200.00 /hr Misc Matters 7/14/2008 BSJ Attend 0.50 100.00 Attend Rules Making Workshop for Public Pension Funds 200.00 /hr Misc Matters Palm Beach Gardens Police Pension Fund Page 2 Hrs /Rate Amount 7115/2008 BSJ Draft 0.35 70.00 Draft Memorandum to Trustees re: Internal Revenue Service 200.00 1hr determination letter Misc Matters BSJ Draft 0.50 100.00 Draft Memorandum to Trustees re: Rules Workshop and HEART Law 200.00 /hr Research HEART Law Misc Matters SUBTOTAL: 388.751 [ 2.10 Plan Document 7/2/2008 BSJ Review 0.75 150.00 Review email from Tricia Amrose re: participant Cranchick 200.00 /hr Research Pension Plan Document E -mail to Tricia Amrose Plan Document SUBTOTAL: ( 0.75 150.00] Trustee Expense Policy 6/24/2008 KA E -Mail 0.25 18.75 E -Mail to Chairman & Secretary, Administrator re: Internal Revenue 75.00 /hr Service Mileage Rate Increase (Newswire #IR2008 -082) Trustee Expense Policy SUBTOTAL: [ 0.25 18.75] Trustee Form 1 6130/2008 KS E -Mail 0.15 3.75 E -Mail to Bonnie Lindberg re: Sidey hasn't filed 25.00 /hr Trustee Form 1 KS Review 0.15 3.75 Review Commission on Ethics web site re: Trustee filings 25.00/hr Trustee Form 1 SUBTOTAL: [ 0.30 7.50] § 175/185 Compliance 7/11/2008 BSJ Review 0.35 70.00 Review response from CBH to state; status of Audit 200.00 /hr § 175/185 Compliance SUBTOTAL: [ 0.35 70.00] Palm Beach Gardens Police Pension Fund Page 3 Hours Amount For professional services rendered 4.35 $723.75 Additional Charges $93.00 Total payments Qty /Price Bill File $755.50 6/26/2008 HPJ Westlaw 1 25.00 Westlaw Research Invoice #816078905 25.00 Dates - 05/14/08 Bill File 7/15/2008 HPJ Photocopies$ 27 6.75 Copy Charges 0.25 Bill File SUBTOTAL: [ 31.75] Total additional charges $31.75 Total amount of this bill $755.50 Previous balance $93.00 Total payments ($93.00) Balance due $755.50 HANSON, PERRY & JENSEN, P.A.. 400 EXECUTIVE CENTER DRIVE, SUITE 207 — WEST PALM BEACH, FLORIDA 33401 -2922 JILL HANSON• mjhanson ®hpjlaw.com ANN H. PERRY aperry®hpjlaw.com BONN[ SPATARA JENSEN bsjensen@hpjlaw.com July 22, 2008 'uso AmurreD to N.Y. Via Email Palm Beach Gardens Police Pension Fund Pension Resource Center Attn: Scott Baur & Bonnie Lindberg & Audrey Ross 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 Dear Scott & Bonnie: TELEPHONE (561) 686 -6550 FACSIMILE (561) 686 -2802 Re: Hanson, Perry & Jensen Invoice #62443 Enclosed please find the Firm's invoice for services rendered for the period that ended 7115/2008. Thank you for your payment of $93.00. Your current balance due is $755.50. El: Please note, this invoice reflects the rate increase agreed to by the Fund effective June 16, If you have any questions, please do not hesitate to contact me. Sincerely, Bonni S. Jense BSJladt Enclosum Copy to: Jay Spencer, Chairman David Pierson, Secretary Via Email Only 11200002131110 i:26 708 3 7 6 3,:006 3 36 560 31►' July 1, 2008 PALM BEACH GARDENS POLICE Board of Trustees, Trustee 10500 North Military Trail Palm Beach Gardens, FL 33410 -4697 Invoice Number: 113477 ICC Capital Management, Inc. STATEMENT OF MANAGEMENT FEES JUL 14 2008 For the Period July 1, 2008 thru September 30, 2008 Portfolio Valuation with Accrued Interest as of 06 -30 -08 $ 15,834,853.69 15,834,854 @ 0.500% per annum 19,793.57 --------------- - - - - -- Quarterly Management Fee $ 19,793.57 TOTAL DUE AND PAYABLE $ 19,793.57 g � ------------------------------------------------------------------------------------------------- - - - - -- 390 North Orange Avenue. 27th Floor. Orlando, Florida 32801. PH 800 -480 -6445 . PH 407 -839 -8440, FX 407- 841 -2814 WEB ' e<de�loe rotHE PENSION, RESOURCE CENTERS )RD.M 436Q NORTHLAKE BLVD STE 206 VOID AFTER 180 DAYS 11'0000 2 3 211' is 2 6 706 3 7 6 3400 63 3 6 5 60 311' Resource Centers, LLC 4360 Northlake Blvd Suite 206 Palm Beach Gardens, FL 33410 Bill To Palm Beach Gardens Police Pension Fund Invoice Date Invoice # 7/30 /2008 P080359 Description Qty Rate Class Amount Palm Beach Gardens Police Pension fund - ndmin Fee - August 2008 2.275.00 PRC - FL 2,275.00 Total $2,275.00 If you have any questions concerning this invoice, please contact Jim Jameson at Resource Centers, LLC, Phone 561 -359 -2960 or Email - Jim.Jamesonig'Resource- Team.com Balance Due $2.275.00 q2- 1111 GCCGf] udfOens rolice ✓ ENDOR: 000000000010 00002133 DATE VENDOR NO. INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID v v v V DISC. TAKEN v v v NET AMOUNT D0000000062522 09/03/08- 1,239.44 1,239.44 .00 1,239.44 Check Total 1,239.44 °Palm Beach Gardens Police 4360 Northlake Blvd Ste 206 Palm Beach Gardens, F1 33410 63.8376/2670 00002133 NK ATLANTIC CHECK NO. CHECK DATE VENDOR N0. 2133 09/03/08 000000000010 IY AMOUNT NE THOUSAND TWO HUNDRED THIRTY -NINE AND 44/100 L $1,239.44 VOID AFTER 180 DAYS 11500002133,10 1:2670837631:006336560311' n Beach Gardens Police ENDOR: 000000000010 00002133 DATE VENDOR NO. nc) /nR nn nnnnnnnn1n INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 0000000062522 09/03/08 1,239.44 1,239.44 Check .00 Total 1,239.44 1,239.44 j i i i HANSON, PERRY & JENSEN, P.A. 400 Executive Center Drive Suite 207 West Palm Beach, FL 33401 Invoice submitted to: Palm Beach Gardens Police Pension Fund Scott Baur & Bonnie Lindberg & Audrey Ross -via email c/o Pension Resource Center 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens FL 33410 Copy to: Chairman & Secretary August 20, 2008 In Reference To: FOR PROFESSIONAL SERVICES RENDERED AS FOLLOWS: Client / File No.: 0003 Invoice #62522 Professional Services Attendance at Trustee Meetings 7/23/2008 KA Prep Atty Rept Prepare Attorney Report, Handouts, and Folder for upcoming Meeting - 7/24 meeting Attendance at Trustee Meetings 7/24/2008 BSJ Attend Attend pension meeting Attendance at Trustee Meetings 811112008 ADT Review Review notes from meeting Attendance at Trustee Meetings SUBTOTAL: Attorney Engagement Agreement 7/25/2008 ADT Draft Draft cover letter to Pension Resource Center with executed Agreement Attorney Engagement Agreement SUBTOTAL: Hrs /Rate Amount 1.75 131.25 75.00 /hr 1.75 350.00 200.00 /hr 0.50 37.50 75.00 /hr [ 4.00 518.751 0.50 37.50 75.00 /hr [ 0.50 37.501 Palm Beach Gardens Police Pension Fund Page 2 Hrs /Rate Amount Investment Policy Guidelines 7/25/2008 KA E -Mail 0.25 18.75 E -Mail to Steve Stack at ICC - need Investment Policy Guidelines 75.00 /hr Investment Policy Guidelines SUBTOTAL: [ 0.25 18.751 Misc Correspondence 7/22/2008 KS E -Mail 0.25 6.25 E -Mail Memorandums regarding Law Update and Internal Revenue 25.00 /hr Service determination letters to Trustees Misc Correspondence 7/25/2008 KA E -mails 0.25 NO CHARGE E -mails re: Rules Workshop 75.00 /hr Misc Correspondence SUBTOTAL: [ 0.50 6.25] Misc Matters 7/17/2008 BSJ Telephone call 0.75 150.00 Telephone call with Jay Spencer 200.00 /hr Misc Matters 7/25/2008 BSJ Telephone call 0.10 20.00 Telephone call with Trish Shoemaker re: transfer to Florida Retirement 200.00 /hr System as new pension plan Misc Matters SUBTOTAL: [ 0.85 170.001 Plan Document 7/22/2008 BSJ E -Mail 0.10 20.00 E -Mail to Allan Owens re: status 200.00 /hr Plan Document SUBTOTAL: [ 0.10 20.001 Summary Plan Description 7/21/2008 KA Draft 1.00 75.00 Draft 2008 Summary Plan Description 75.00 /hr Summary Plan Description 7/22/2008 KA E -Mail 0.25 18.75 E -Mail Request Actuarial information from Foster & Foster 75.00 /hr Summary Plan Description Palm Beach Gardens Police Pension Fund Page 3 Hrs /Rate Amount 7/22/2008 KA Review & revise 0.75 56.25 Review and revise Summary Plan Description per attorney markup 75.00 /hr Summary Plan Description BSJ Draft 1.00 200.00 Draft revised Summary Plan Description 200.00 /hr Research most recent amendment Review Pension Plan Document Summary Plan Description SUBTOTAL: [ 3.00 350.00] Trustee Form 1 7/25/2008 BSJ Draft 0.50 100.00 Draft cover letter to Supervisor of Elections 200.00 /hr Trustee Form 1 SUBTOTAL: [ 0.50 100.00] For professional services rendered 9.70 $1,221.25 Additional Charges Qtv /Price Bill File 7/25/2008 HPJ UPS Delivery 1 11.48 United Parcel Service Invoice No.: OOOF49280318 11.48 Tracking #1 ZF492804298296201 to / from Supervisor of Elections Bill File 7/28/2008 HPJ UPS Delivery 1 4.60 United Parcel Service Invoice No.: OOOF49280318 4.60 Tracking #1 ZF492800399850021 to / from Pension Resource Center - Hanson, Perry & Jensen, P.A. Agreement Bill File 8/18/2008 HPJ Postage 1 1.69 Postage 1.69 Bill File HPJ Photocopies$ 1.68 0.42 Copy Charges 0.25 Bill File SUBTOTAL: 1 18.19] Palm Beach Gardens Police Pension Fund Total additional charges Total amount of this bill Previous balance Total payments Balance due Page 4 Amount $18.19 $1,239.44 $755.50 ($755.50) $1,239.44 1t HANSON, PERRY & JENSEN, P.A. 400 EXECUTIVE CENTER DRIVE, SUITE 207 — WEST PALM BEACH, FLORIDA 33401 -2922 JILL HANSON* TELEPHONE (561) 686 -6550 mjhanson®hpjlaw.com FACSIMILE (561) 686 -2802 ANN H. PERRY aperry®hpjlaw.com BONN[ SPATARA JENSEN bsjensen 0 hpjlaw.com August 20, 2008 •ALw Aommwo ih N.Y. Via Email Palm Beach Gardens Police Pension Fund Pension Resource Center Attn: Scott Baur & Bonnie Lindberg & Audrey Ross 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 Re: Hanson, Perry & Jensen Invoice #62522 Dear Scott & Bonnie: Enclosed please find the Firm's invoice for services rendered for the period that ended 8/1512008. Thank you for your payment of $755.50. Your current balance due is $1,239.44. If you have any questions, please do not hesitate to contact me. Sincerely, Bonni S. Jensen BS,Vadl Enclosure Copy to: Jay Spencer, Chairman David Pierson, Secretary Via Email Only ilm Beach Gardens Police — — — — — - -- DATE VENDOR NO. VENDOR: 000000000001 09/06 000000000001 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 080404 09/03/08 2,287.50 2,287.50 .00 2,287.5 Check Total 2,287.5 III DO DO 2 1 3L, 0 1: 26 708 3 ?G 31:006 3 36 S60 31P lalm Beach Gardens Police DATE VENDOR NO. 00002134 1 2 VENDOR: 000000000001 09/08 000000000001 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT ?080404 09/03/08 2,287.50 2,287.50 .00 2,287.50 Check Total 2,287.50 Palm Beach Gardens Police 00002134 4360 Northlake Blvd Ste 206 Palm Beach Gardens, Fl 33410 63-8376/2670 ANX-ATLANTIC CHECK NO. CHECK DATE VENDOR NO. 09/03/08 000000000001. PAY , AMOUNT TWO THOUSAND TWO HUNDRED EIGHTY-SEVEN AND 501100 $2,287.50.1. ro nit PENSION RESOURCE CENTERS ORDER 4360 NORTHLAKE.BLVD:STE 206 DF.. T TU n PALM BEACH GARDENS FL 33410 VOID AFTER 180 DAYS III DO DO 2 1 3L, 0 1: 26 708 3 ?G 31:006 3 36 S60 31P lalm Beach Gardens Police DATE VENDOR NO. 00002134 1 2 VENDOR: 000000000001 09/08 000000000001 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT ?080404 09/03/08 2,287.50 2,287.50 .00 2,287.50 Check Total 2,287.50 Resource Centers, LLC 4360 Northlake Blvd Suite 206 Palm Beach Gardens, FL 33410 Bill To Palill Liuleh Gardens POIICC Pension Fund Invoice Date Invoice # 9/2 '2008 P080404 Description Qty Rate Class Amount Palm Beach Gardens POliCC Pension Fund - Admin Fee - 2,275.00 PRC - FL, 2,275.00 September 2008 Death Search (PB1) 25 0.50 PRC - FL 12.50 r 1 Total $2.2,7.5,, It VOLI have illy' 1I11CS60115 tills IIIVOICe. I)ICaSC COntaCt Mill 1311WSoll at RC50n1 -ce Centers. LL.C. Phone 561 - 459 -2960 or email -. lim. .lameson(ir�dtewurce- Team.C011l Balance Due $2.287.50 -a1rq oudull Vdoutseb rulR.o „L��1,.,0. nnnnnnnnn��4 DATE VENDOR NO. 09/08 000000000229 ` INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT BUYBACK OVRPYMT 09/25/08 564.36 564.36 Check .00 Total 564.36 564.36 Palm Beach Gardens Police 4360 Northlake Blvd Ste 206 Palm Beach Gardens, Fl 33410 00002135 63- 837612670 BANK.:A.TLANTIC _ - CHECK NO. CHECK DATE VENDOR NO. 2135 09/25/08 1000000000229 AMOUNT PAY L'Tt t+ - UTrnmRF.T) gTXTY -FOUR AND 36/100 .k ti�Cti s}} $ 4'hti. 564 .36__ VOID AFTER 180 DAYS RDROER CONTAM M{CROPRRR 11.00002L351l' 1:26 708376311:00633656031'' Palm Beach Gardens Police 00002135 DATE VENDOR NO. nq /np nnoO00000229 VtNUUH: UUUVUVVVVaa� INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT BUYBACK OVRPYMT 09/25/08 564.36 564.36 .00 564.36 Check Total 564.36 G-RS August '�'. 200S tits. Audrey ROSS Administrator The Pension Resource Center. 1.1 C 13611 Northlake Blvd_ Suite 206 Palm Beach Gardens, Ft. 33410 Re: faint Bca, h Garden~ Police ( )1lrc cr:s' Pensi tt Fund Dear Audrey: A,, reyuestcd, we hace reviewed the buy -hack amount paid by Jay Spencer to purchase his academy time. According to our records, Jay Spencer paid S1,317 50 on April 22. 1002 to purchase three months of prior service. phis buy -back included 21 days of excess service. The value of the excess service as of the purchase date is S340.00. If the excess amount is refunded with interest at the investment return assumption used in the valuation, the relund amount would be $564.36 as of September 30, 3005. Interest was credited at - .5'o through September 30, 000 and 7?0 f thcreatter. We welcontc vour questions and comments. Sincerely yours_ .1. Stephen Paintquisf, .SSA ScniorConsultant & Actuary ISP to ,ninR non00000000l vtrvuvn: vvvvvvvv..- INVOICE NUMBER -- INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT P080452 10/03/08 2,275.00 2,275.00 .00 2,275.00 Check Total 2,275.00 i I Palm Beach Gardens Police 00002136 4360 Northlake. Blvd Ste 206 Paln Beach Gardens, A 33410 63-8376/2670 BANK ATLANTIC CHECK N0. CHECK DATE VENDOR NO. 2136 10/03/08 1000000000001 AMOUNT PAY TWO THOUSAND TWO HUNDRED SEVENTY -FIVE AND 00 /100 ` $2,275.00 VOID AFTER 180 DAYS 1120000 2 136,18 1:26 708 3 76 31:006336560311' Palm Beach Gardens Police 00002136 DATE VENDOR NO. ,r,in❑ nnnnnnnnnnni VENDOR: 0000UUUUUUU.L INVOICE NUMBER INVOICE DATE INVOICE AMOUNT -' AMOUNT PAID DISC. TAKEN NET AMOUNT P080452 10/03/08 2,275.00 2,275.00 .00 Check Total 2,275.00 l Resource Centers, LLC 4360 Northlake Blvd Suite 206 Palm Beach Gardens, PL 33410 Bill To Palm Beach Gardens Police Pension Fund Invoice Date Invoice # 9.130/2008 P080452 Description Qty Rate Class Amount Palm Beach Gardens Police Pension Fund - Admin Fee - October 3008 2.275.00 PRC - FL, 2275,00 Total $2.275.00 If yon have any questions concerning this invoice. please contact Jim Jameson at Resource Centers, LLC, Phone 501 - 459 -2960 or Email - J im .Jameson(�iResotnce- Teant.cont Balance Due $2.375.00 VENDOR: 000000000029 10/08 000000000029 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT )00000000412877 10 07 08 1,000.00 1,000.00 .00 1,000.00 Check Total 1,000.00; 1110000 2 L3 ?II' x:26 ?083763i:0063365603n' Palm Beach Gardens Police DATE 00002137 VENDOR NO nnnnnnnnnn29 VENDOR: UUUUUUUUUUa7 INVOICE NUMBER INVOICE DATE Palm Beach Gardens Police 00002137 DISC. TAKEN NET AMOUNT 4360 Northlake Blvd Ste 206 10/07/08 1,000.00 1,000.00 Palm Beach Gardens, FI 33410 63.8376/2670 1,000.001 SANK ATLANTIC Check Total CHECK N0. CHECK DATE VENDOR NO. 2137 10/07/08 000000000029 _ AMOUNT PAY ONE THOUSAND AND 00 /100 ti� $1,000.00 rOTHE CHERRY, BEKAERT & HOLLAND ITUG ORDER ONE CLEARLAKE' :CENTER OF. 250 AUSTRALIAN AVE SOUTH .,.SUITE 1201 XTUFTS WEST PALM BEACH FL 33401 VOID AFTER 180 DAYS 1110000 2 L3 ?II' x:26 ?083763i:0063365603n' Palm Beach Gardens Police DATE 00002137 VENDOR NO nnnnnnnnnn29 VENDOR: UUUUUUUUUUa7 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 000000000412877 10/07/08 1,000.00 1,000.00 .0 1,000.001 Check Total CHERRY BEKAERT & HOLLAND, L.L.P. ONE CLEARLAKE CENTRE 250 S. AUSTRALIAN AVE. STE. 1201 WEST PALM BEACH, FL 33401 (561)835 -8352 �~ -1-\r PALM BEACH GARDENS POLICE PENSION FUND S E ? 0 8 1008 c% PENSION RESOURCE CENTER, INC. 4360 NORTHLAKE BLVD., SUITE 206 PALM BEACH GARDENS, FL 33410 Invoice No. 412877 Date 0813112008 Client No. 4253650 FOR PROFESSIONAL SERVICES RENDERED: Final Billing on audit of financial statements for the year ended September 30, 2007. Current Amount Due $ 1.000.00 TERMS: Invoices payable within 15 days from invoice date. A service charge will be added to past due accounts equal to 1 1/2% per month (18% annually) on the previous month's balances less payments received during the month, with a minimum charge of $2.00 per month. jaim tseacn veiuclw 10/08 000000000 VENDOR: 000000000005 DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKOEON NET AM UNT INVOICE NUMBER INVOICE 236.25 236.25 000000000002071 10/07/08 - eck Total 236.25 I I i I I i 0000213$ Palm Beach Gardens Police 4360 Northlake Blvd Ste 206 Palm Beach Gardens, Fl 33410 63- 8376/2670 CHECK NO. CHECK DATE VENDOR NO. BANK.ATLANTIC 2138 10/07/08 000000000005 AMOUNT PAY. TWO HUNDRED THIRTY -SIX AND 25/100 $236.25 TO THE ELLEN SCHAFFER ORDER 339 N. W. 99 WAY G Tu OF CORAL SPRINGS T FL 33071 VOID AFTER 180 DAYS BORDERC- TAW; WCAdPRM11M 1100000 2 1 3811' 1:26708376340063365603116 00002138 Palm Beach Gardens Police DATE VENDOR NO. 10/08 000000000005 VENDOR: 000000000005 AMOUNT INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET 236.251 236..25 236.25 .00 000000000002071 110/07 08 Check Total 236.25 I N V O I C E ELLEN SCHAFFER INVOICE: 2071 339 N.W. 99 WAY DATE: 08/30/2008 CORAL SPRINGS, FL. 33071 REF.: 128 Home: (954) 341 -5032 Fax: (954) 345 -0748 Public Pension Software Consultant SOLD TO: PENSION RESOURCE CENTER 4360 NORTHLAKE BLVD. SUITE 206 PALM BEACH GARDENS, FL. 33410 ATTN: DENISE MC NEILL QTY DESCRIPTION AMOUNT TOTAL 2.25 HOUR(S) CONSULTING & PROGRAMMING SERVICE 105.00 236.25 TO ADD OPTIONAL FORMS FACTORS FOR PALM BEACH GARDENS POLICE OFFICERS - SETUP SUBTOTAL $ TAX $ SHIP /HAND $ TOTAL $ TERMS: 109 late fee after 60 days PLEASE MAKE CHECK PAYABLE TO ELLEN SCHAFFER THANK YOU 236.25 .00 .00 236.25 in�nR 000000000012 VENDOR: VVUVVVVVVVic INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT X00000000105887 10/0-7/08 2,483.00 2,483.00 .00 2,483.00 Check Total 2,483.00 11600002L3911' ':26 708 3 76 3':006336560311@ Palm Beach Gardens Police DATE 10 /nA 00002139 VENDOR NO. 000000000012 VENDOR: UUUUUUUUUUIG INVOICE DATE 10/07/08 Palm Beach Gardens Police 00002139 DISC. TAKEN 00 Total NET AMOUNT 2,483.00 2;483:00 i I 4360 Northlake Blvd Ste 206 63- 637612670 Palm Beach Gardens, Fl 33410 000000000105887 SANK ATLANTIC CHECK N0. CHECK DATE VENDOR N0. 2139 10/07/08]_000000000012 AMOUNT PAY TWO THOUSAND FOUR HUNDRED EIGHTY -THREE AND 00 /100 j $2,483.00 TO THE GABRIEL_ ROEDER SMITH & COMPANY ORDER P . O . ' BOX °78000 OF T G TU DETROIT MI 48278 VOID AFTER 180 DAYS ENDER sown S WCROMI/I111N 11600002L3911' ':26 708 3 76 3':006336560311@ Palm Beach Gardens Police DATE 10 /nA 00002139 VENDOR NO. 000000000012 VENDOR: UUUUUUUUUUIG INVOICE DATE 10/07/08 INVOICE AMOUNT 2,483.00 AMOUNT PAID 2,483.00 Check DISC. TAKEN 00 Total NET AMOUNT 2,483.00 2;483:00 i I INVOICE NUMBER 000000000105887 Gabriel Roeder Smith & Company Consultants & Actuaries One East Broward Blvd. Suite 505 Ft. Lauderdale, Florida 33301 -1872 (954) 527 -1616 i BOARD OF TRUSTEES, CITY OF PALM BEACH GARDENS POLICE OFFICERS PENSION FUND Mr. J. Scott Baur, Administrator The Pension Resource Center, Inc. 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 8/31/2008 Invoice 105887 Dept. # 78009 Gabriel Roeder Smith & Company PO Box 78000 Detroit, Michigan 48278 -0009 or ACH Payment to: Gabriel Roeder Smith & Company JPMorgan Chase, ABA #: 072000326 Account #: 0486723 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCV. THANK YOU. PALM BEACH GARDENS POLICE PENSION FUND Benefit Approvals Meeting of October 30 2008 APPLICATION TO RETIRE JAY WILBUR DATE OF BIRTH DATE OF HIRE DATE OF TERMINATION AGE AT RETIREMENT YEARS AT SERVICE FORM OF BENEFIT MONTHLY BENEFIT AMOUNT SUPPLEMENTAL BENEFIT JAY E SPENCER EDWARD T VISTEIN APPROVED: APPLICATION TO ENTER THE DROP DATE OF BIRTH DATE OF HIRE DATE OF TERMINATION AGE AT RETIREMENT YEARS AT SERVICE FORM OF BENEFIT MONTHLY BENEFIT AMOUNT SUPPLEMENTAL BENEFIT REVISED DROP CALCULATION 01/23/1962 03/25/1985 06/22/2008 46 YEARS 23 YEARS 10 YEAR CERTAIN $6.929.55 $ 287.50 01/07/1964 08/27/1984 08/01/2008 44 YEARS 23 YEARS 100% J &S $8,033.72 $ 287.50 MONTHLY BENEFIT AMOUNT $3,702.65 REVISED MONTHLY BENEFIT AMOUNT $3,820.60 , CHAIRMAN ,SECRETARY Palm Beach Gardens Police Statement of Income and Expense FY 2008 Account Description End October End November End December End January End February End March End April End May End June End Jul End August September Year -To -Date Income: 4001 -00 Interest Income 0.00 0.00 0.00 53.00 0.00 0.00 1.58 0.00 0.00 0.00 0.00 54.58 4005 -00 Contributions -State 460 437.69 0.00 0.00 0000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 460 437.69 4010 -00 Contributions-Employer 0.00 0.00 0.00 785 976.01 0.00 0.00 785 976.01 0.00 0.00 0.00 0.00 R0.00 1,571,952.02 4020 -00 Contributions-Employee 65 497.43 101,99G.75 66,534. 66 503.45 63 848.24 67 452.13 80 472.09 96 280.68 66 916.00 852 901.28 60 477.12 1,655,936.59 4045 -00 Contributions -Bu Back 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 564.36 4100 -00 Commission Recapture 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4101 -00 Litigation Income 1,075.51 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,075.51 4102 -00 Miscellaneous Income 0.00 0.00 0.00 0.00 0.00 0.00 21.00 0.00 0.00 0.00 0.00 0.00 21.00 4127 -00 Investment Income- RhumbLine500 111 636.63 303 145.15 49 211.30 417 645.30 212 927.78 26 792.04 306 397.13 87 472.25 565 361.17 44 619.10 80 728.92 496 028.95 ) (1,529,495.86 4128 -00 Investment Income- RhumbLlne400 57 737.37 117 507.75 (5,502.22) 140 307.87 37 916.24 21 146.80 156 800.71 117 487.00 162 682.11 42 550.04 36 708.39 228 798.71 387 678.27 4129 -00 Investment Income- Rhumbl-ine600 43 476.70 190 594.68 17 891.46 111 610.40 65 998.63 8,334.82 87 603.61 99 483.23 168 654.67 36 461.58 91 373.80 157 729.62 345 745.72 4131 -00 Investmentlncome -ICAP Int'I 0.00 0.00 11 626.78 0.00 0.00 38 684.52 0.00 28 170.96 0.00 0.00 0.00 0.00 22 140.34 4132 -00 Investment Income-Vanguard VAL 0.00 0.00 10 528.50 0.00 0.00 (44,391w25) 0.00 0.00 22 252.36 (5,165.01) 0.00 182 840.83 265 177.95 4133 -00 Investment lncome -Van uard EQ 0.00 0.00 18 616.94 0600 0.00 57 809.20 0.00 0.00 16 361.73 4 222.68 0.00 195 125.29 292 135.84 4134 -00 InvestmentIncome-Vanguard GR 0.00 0.00 (2,055.72) 0.00 0.00 49 917.24 0.00 0.00 22 422.17 6 772.06 0.00 191 588.86 272 756.05 4230 -00 Investment Income -ICC Capital 190 225.53 113 969.87 20 515.73 62 090.51 107 810.34 138 374.13 356 648.91 (4,327.32) 285 625.23 153 870.50 135 613.81 897 972.11 977 886.47 Total Income 1 930,086.86 (623,226.70) (69,413.90) 245,059.40 (360,804.75) (301,328.23) 1,773,921.04 424,566.80 (1,176,443.44) 632,163.47 404,902.04 (404,103.47) Account Description End October End November End December End January End February End March End April End May End June End Jul End August Year -To -Date Ex ense- 5000 -00 Investment Mana ement Fees 3 068.20 17 193.09 0.00 18 233.93 2 794.01 0.00 0.00 21 421.12 0.00 0.00 22 473.94 ISetember 85 184.29 5005 -00 Custodial Fees 2 161.56 0.00 0.00 2 135.80 0.00 0.00 2 201.56 0.00 0.00 2 319.08 0.00 8 818.00 5010 -00 Performance Monitor Fees 0.00 0.00 0.00 0.00 3 156.00 0.00 0.00 3 156.00 0.00 0.00 3 313.00 9 625.00 5011 -00 Printin Stations 0.00 000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5100 -00 Benefit Pa ments 57 069.49 57 569.49 57 569.49 64 496.21 61 032.85 63 882.85 61 182.85 61 182.85 61 182.85 77 487.95 83 769.50 782 978.83 5105 -00 Share Account Withdrawals 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5110 -00 DROP Account Withdrawals 0.00 0.00 0.00 215 042.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 215 042.80 5115 -00 Termination Refunds 0.00 0.00 0.00 0.00 0.00 0.00 23 371.02 0.00 0.00 0.00 0.00 0.00 23 371.02 5205 -00 Auditor Fees 0.00 0.00 0.00 0.00 0.00 0.00 8,700.00 2 000.00 0.00 0.00 0.00 0.00 10 700.00 5210 -00 Actuary Fees 2,805.00 9,212.00 0.00 2,445.00 0.00 3,323.00 3,060.00 0.00 7,816.00 3,540.00 1,800.00 0.00 34 001.00 5215 -00 Attorney Fees 602.10 178.90 129.60 1,411.80 509.35 803.20 476.50 688.90 1,095.87 93.00 755.50 1 239.44 7,984.16 5220 -00 Administrator Fees 2,275.00 2,289.93 2,275.00 2,278.86 2,297.55 2,301.30 2,275.00 2,575.00 2,275.00 2,275.00 2,275.00 5,2 87.50 27 680.14 5231 -00 Fiduciary Liability insurance 0.00 0.00 6,366.43 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6,366.43 5235 -00 Annual Membership Fees 0.00 0.00 500.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 500.00 5240 -00 Trustee Expenses 400.00 0.00 0.00 0.00 0.00 0.00 0.00 1,040.00 0.00 1 406.52 0.00 0.00 2,846.52 5241 -00 Computer Services 0.00 0.00 0.00 0.00 0.00 0.00 2,966.25 0.00 0.00 0.00 0.00 0.00 2,966.25 5245 -00 Postage 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5250 -00 Bank Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5255-00 Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0400 0.00 0.00 Total Expense 68,381.35 86,443.41 66,840.52 306,044.40 69,789.76 70,310.35 104,233.18 92,063.87 1 72,369.72 87,121.55 114,386.94 80,079.39 1 218,U064.44 Reserve Fund Last Period 28 769 679.54 29 631 385.05 28 921 714.94 28 785 460.52 26 724 475.52 28 293 881.01 27 922 242.43 29 591 930.29 29 924 433.22 28 675 620.06 29 220 661.98 29 511 177.08 6 Balance To From Reserve 861 705.51 709 670.11 136 254.42 60 985.00 430 594.51 371 638.58 1 669 687.86 332 502.93 1 248 813.16 545 041.92 290 515.10 2 363 665.45 1 622 TOTAL RESERVE FUND 29,631,385.05 28,921,714.94 28,785,460.52 28,724,475.52 28,293,881.01 27,922,242.43 29,591,930.29 29,924,433.22 28,675,620.06 29,220,661.98 29,511,177.08 27,147,511.63 27,147, Palm Beach Gardens Police Balance Sheet FY 2008 1006 -00 1210 -00 1225 -00 1235 -00 1527 -00 1528 -00 1529 -00 1531 -00 1532 -00 1533 -00 1534 -00 1660 -00 2010 -00 2020 -00 2030 -00 TOTAL RESERVE Account Description Bank Atlantic Checking Accrued Interest R Contributions -Em to ee Pre aid..Other RhumbUne S &P 500 La a -Ca RhumbLine 5 &P 400 Mid-Cap Rhumbline S &P 600 Small-Cap !CAP International Fund Vanguard Int'I Value Vanguard Global Equity Vanguard Int'l Growth ICC Capital Accounts Payable Accounts Payable.. Other Tax Wlthholdin s FUND MARKET VALUE October 312 297.01 108.97 91 520.85 48 108.27 7 346 168.90 2,379,833.49 2 559 678.60 527 330.49 546 029.83 539 778.96 554 995.96 14 738 262.17 12 728.45 0.00 0.00 29,631 385.05 November 321 340.10 108.97 91 520.85 48 108.27 7 043 023.75 2 262 325.74 2,369,083.92 527 330.49 546,029.83- 539 778.96 554 995.96 14 624 292.30 6 224.20 0.00 0.00 28 921,714.94 December 317 652.82 108.97 91 520.85 48 333.78 6 993 812.45 2,256,823.52 2 351 192.46 515 703.71 535 501.33 521 162.02 552 940.24 14 603 776.57 3 068.20 0.00 0.00 28,785 460.52 January 225 358.26 108.97 91 520.85 50 207.99 6,576,167.15 2 116 515.65 2,239,582.06 515 703.71 535 501.33 521 162.02 552 940.24 15 299 707.29 0.00 0.00 0.00 28,724 475.52 February 218 058.40 108.97 91 520.85 51 566.33 6 363 239.37 2,078,599.41 2 173 583.43 515 703.71 535 501.33 521 162.02 552 940.24 15,191,896.95- 0.00 0.00 0.00 28,293 881.01 March 215 177.68 108.97 91 520.85 51 588.83 6,336,447.33 2 057 452.61 2,181,918.25 477 019.19 491 110.08 463 352.82 503 023.00 15 053 522.82 0.00 0.00 0.00 27,922 242.43 1 April 193 640.73 108.97 91 520.85 51 588.83 6 642 844.46 2,214,253.32 2 269 521.86 477 019.19 675 110.08 647 352.82 687 023.00 15 641 946.18 0.00 0.00 0.00 29 591 930.29 1 May 197 857.54 108.97 91 520.85 51 588.83 6 730 316.71 2 331 740.32 2,369,005.09 0.00 675 110.08 647 352.82 687 023.00 16 142 809.01 0.00 0.00 0.00 1 29,924 433.22 1 June 192 403.82 108.97 91 520.85 51 588.83 6 164 955.54 2,169,058.21 2 200 350.42 0.00 652 857.72 630 991.09 664 600.83 15 857 183.78 0.00 0.00 0.00 1 28 675 620.06 1 July 173 549.85 108.97 91 520.85 52 565.60 5,559,336.44 2 126 508.17 2,236,812.00 0.00 1,002,692.71 981 768.41 1,012,828.77 15 982 970.21 0.00 0.00 0.00 29,220 661.98 1 August 105 247.20 108.97 91 520.85 66 958.43 5 640 065.36 2,163,216.56 2 328 185.80 0.00 1 002 692.71 981 768.41 1 012 828.77 16 118 584.02 0.00 0.00 0.00 29,511 177.08 September 88 904.60 108.97 91 520.65 69 719.95 5,144,036.41 1 934 417.85 2,170,456.18 0.00 819 851.88 786 643.12 821 239.91 15 220 611.91 0.00 0.00 0.00 27,147,511 63 Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.cbh.com One Clearlake Centre 250 South Australian Avenue — Suite 1201 West Palm Beach, Florida 33401 phone 561.835.8352 fax 561.835.8356 To the Board of Trustees and Management, Palm Beach Gardens Police Pension Fund In planning and performing our audit of the financial statements of Palm Beach Gardens Police Pension Fund (the "Fund ") as of and for the year ended September 30, 2007, in accordance with auditing standards generally accepted in the United States of America, we considered the Fund's internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control. Accordingly, we do not express an opinion on the effectiveness of the Fund's internal control. The criteria used in our consideration of internal control have changed because of a new professional standard. This standard requires us to report to you in writing that there is a material weakness in your internal control if you request us to provide certain services that we may have provided in the past, such as drafting the Fund's financial statements, or making significant adjustments to your accounts. Our consideration of internal control was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. However, as discussed below, we noted certain deficiencies in internal control that we consider to be significant deficiencies and other deficiencies that we consider to be material weaknesses. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. We consider the following deficiencies to be significant deficiencies in internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. We believe that the following deficiencies constitute material weaknesses. • In accordance with your request, we drafted the Fund's financial statements. • We proposed significant adjustments to your accounts, which are attached and which you have approved. These material weaknesses and significant deficiencies were considered in determining the nature, timing, and extent of the audit tests applied in our audit of the September 30, 2007 financial statements, and this communication does not affect our report on those financial statements dated July 24, 2008. We have not considered internal control since the date of our report. Starting with the fiscal year ended September 30, 2008, the new risk assessment standards will become effective. This will result in a substantial change in the audit practice, scope, audit procedures as well as auditing fees. This communication is intended solely for the information and use of management, and the Board of Trustees as well as others within the organization, and is not intended to be and should not be used by anyone other than these specified parties. West Palm Beach Florida July 24, 2008 BAKER TILLY INTERNATIONAL February 14, 2007 May 14, 2007 November 19, 2007 December 11, 2007 January 11, 2008 April 23, 2008 September 9, 2008 1 ORDINANCE , 2008 2 3 4 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM 5 BEACH GARDENS, FLORIDA RELATING TO THE POLICE 6 OFFICERS' RETIREMENT TRUST FUND; AMENDING SECTION 50- 7 61 CODE OF ORDINANCES, ENTITLED "DEFINITIONS;" 8 AMENDING SECTION 50 -87 CODE OF ORDINANCES, ENTITLED 9 "POWERS;" AMENDING SECTION 50 -127, CODE OF 10 ORDINANCES, ENTITLED "PRIOR POLICE OFFICER SERVICE;" 11 AMENDING SECTION 50 -152 CODE OF ORDINANCES, ENTITLED 12 "AMOUNTS PAYABLE UPON ELECTION TO PARTICIPATE;" 13 AUTHORIZING CODIFICATION; AND PROVIDING AN EFFECTIVE 14 DATE. 15 16 17 WHEREAS, the Board of Trustees of the Palm Beach Gardens Police Officers' 18 Retirement Trust Fund has determined to amend the provision regarding the buy back 19 of service; and 20 WHEREAS, the Board of Trustees of the Fund has determined that it is in the 21 best interest of the Participants and Beneficiaries of the Fund to make these changes to 22 the Palm Beach Gardens Police Officers' Retirement Trust Fund; and 23 WHEREAS, the City Council of the City of Palm Beach Gardens, Florida desires 24 to revise its Police Officers' Pension Ordinance in order to implement this change; and 25 WHEREAS, the City Council has determined that adoption of this Ordinance is in 26 the best interest of the citizens and residents of the City of Palm Beach Gardens. 27 28 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY 29 OF PALM BEACH GARDENS, FLORIDA that: Page 1 of 10 1 2 3 SECTION 1. The definitions of the terms "credited service" and "salary" as 4 provided for in Section 50 -61, Code of Ordinances is hereby amended as follows: 5 Sec. 50 -61. Definitions. 6 The following words, terms and phrases, when used in this article, shall have the 7 meanings ascribed to them in this section, except where the context clearly indicates a 8 different meaning: 9 10 Credited service means the number of full years (and fraction thereof) of 11 continuous service from date of employment to date of termination. Continuous service 12 with the employer shall not be broken in the event of: 13 (1) Absence on an approved leave of absence. A police officer on an 14 approved leave of absence shall not receive credited service but shall retain all 15 credited service previously accrued. Upon returning to work, the police officer will 16 again accrue credited service. 17 (2) Absence from work because of occupational injury or disease incurred in 18 employment for which a police officer is entitled to Workers' Compensation 19 payments. A police officer on an approved leave of absence as a result of 20 occupational injury or disease shall rrart receive credited service and bti-t shall 21 retain all credited service previously accrued. Upon returning to work, the police 22 officer will continue to anamn accrue credited service. Page 2 of 10 1 (3) Absence due to service in the armed forces of the United States, provided 2 the officer shall reenter employment with the city within one year of discharge. A 3 police officer shall not receive credited service while absent due to military 4 service but shall retain all credited service previously accrued. Upon returning to 5 work, the police officer will again accrue credited service and will be credited with 6 service for time spent in military for up to 5 years if: 7 A. The police officer is in the active employ of the municipality prior to 8 such service and leaves a position, other than a temporary position, for 9 the purpose of voluntary or involuntary service in the Armed Forces of the 10 United States. 11 B. The police officer is entitled to reemployment under the provisions 12 of the Uniformed Services Employment and Reemployment Rights Act. 13 Otherwise, a A police officer shall be entitled to accrued benefits to the extent 14 that the police officer contributes to the plan, pursuant to subsection 50- 62(c). Such 15 contribution shall be made over a period beginning on the date of reemployment, not to 16 exceed three times the military service period, with a maximum payment period of five 17 years. The compensation rate of any such employee, for the purposes of determining 18 contributions and for calculating average monthly earnings, shall be deemed to be equal 19 to the rate the employee would have received but for the military leave of absence. 20 * * Page 3 of 10 1 Salary means the average monthly earnings reported to the Internal Revenue 2 Service for income tax purposes, plus deferred compensation and pro -rata shares of the 3 City's contribution to the post retirement health insurance /medical benefits VEBA. 4 SECTION 2. Section 50- 87(a)(1)(d) and (3), Code of Ordinances entitled 5 "Powers" is hereby amended as follows: 6 Sec. 50-87. Powers. 7 (a) The board of trustees may exercise the following powers: 8 (1) To invest and reinvest the assets of the retirement fund and to hold, 9 purchase, sell, assign, transfer, and dispose of any securities and 10 investments held in the Fund, including the power and authority to 11 employ counseling or investment management services. The aim 12 of the investment policies shall be to preserve the intearitv and 13 securitv of Fund principal, to maintain a balanced investment 14 portfolio, to maintain and enhance the value of the Fund principal, 15 and to secure the maximum total return on investments that is 16 consonant with safety of principal, provided that such investments 17 and re- investments shall be limited only by the investments 18 permitted by the investment policy guidelines adopted by the Board 19 in accordance with Florida law. Notwithstanding the foregoing, 20 investments in foreign investments are limited in accordance with 21 185.06(1)(b)4. The Board members must discharge these duties 22 with respect to the plan solely in the interest of the participants and Page 4 of 10 1 beneficiaries and (i) for the exclusive purpose of providing benefits 2 to participants and their beneficiaries and defraying reasonable 3 expenses of administering the plan; (ii) with the care, skill, 4 prudence, and diligence under the circumstances then prevailing 5 that a prudent person acting in a like capacity and familiar with such 6 matters would use in the conduct of an enterprise of a like 7 character and with like aims; and (iii) by diversifying the 8 investments of the plan so as to minimize the risk of large losses, 9 unless under the circumstances it is clearly prudent not to do so. it. 10 a. Torne 01 S * - jmts of a national bank, a state bank, 11 ed by the Bank Imsdramee Fund, or a savings and loan 12 assoelation instired by the Savings Association Imstiramee r ..,...1,....�.�.�.�......,�w�.. �■ 1�► G�• 17u►•1�.PZ._ti1��u�IPll�lldi�•, t��►tit�i■►dr I. �a�lil��:71 ■Ir "li►:i�Riu:i��r_n► iii.: ar._. �if_ I��i�� ►tir_I.�ir_u►= ��i��y:11 •1•Ilm, • •\• I• li ! Wl[ I• lN=_ Ilyl• Hl• i. i /•��■l•1• \[.1� \�J•[..UCAMM �7! .- 11�1111 NUM l•1• ►i 7t llilq\l�i /ai1� ■l.Jt�f•IN \�J■ ►mil 1 ►�i1�1•l l�Ji1l•1.1•l I�D7P2�111•l�.•JI Page 5 of 10 1 States, or the Dostroet of Columbia, except that the board o 2 trustees may invest tip to ten pereent of the assets of the 3 ftind On foreign equitieos-. 4 (3) At least once every thiee years, the board of fitistees shall retain 5 independent constiltant professionally qualified to evaluate f, ; mf, lit l�i�lt� ►�I I- --►i - - --- - ---ilk[ ►�l�l[►)♦1 ��l f�lti\ �1� \'l.2`lt�� ►�1� ►� \�1��t��l�l 13 14 SECTION 3. Section 50 -127, Code of Ordinances, entitled "Prior police officer 15 service" is hereby amended as follows: 16 Sec. 50 -127. Prior police officer service. 17 Unless otherwise prohibited by law, the years or fractional parts of years that a 18 police officer previously served in the United States Military Service, or the years or 19 fractional parts of years that a police officer previously served as a police officer with the 20 city during a period of employment and for which accumulated contributions were 21 withdrawn from the fund, or the years and fractional parts of years that a police officer Page 6 of 10 1 served as a police officer with any other municipal, county, state or federal law 2 enforcement agency shall be added to the years of credited service provided that: 3 (1) The police officer contributes to the fund the sum that would have been 4 contributed, based on the police officer's salary and the employee 5 contribution rate in effect at the time that the credited service is requested, 6 had the police officer been a member of this system for the years or 7 fractional parts of years for which the credit is requested plus amount 8 actuarially determined such that the crediting of service does not result in 9 any cost to the fund plus payment of costs for all professional services 10 rendered to the board in connection with the purchase of years of credited 11 service. 12 (2) Payment by the police officer of the required amount may be made within 13 six months of the request for credit and in one lump sum payment, or the 14 police officer can buy back this time over a period equal to the length of 15 time being purchased or five years, whichever is greater, at an interest 16 rate which is equal to the fund's actuarial assumption. A police officer may 17 request to purchase some or all years of service. No credit shall be given 18 for any service until all years of service which are to be repurchased, have 19 been repurchased. 20 (3) The credit purchased under this section shall count for all purposes, 21 except inefttdiMvesting. Page 7 of 10 1 (4) In no event, however, may credited service be purchased pursuant to this 2 section for prior service with any other municipal, county, or state police 3 department, if such prior service forms or will form a basis of a retirement 4 benefit or pension from another retirement system or plan. This subsection 5 does not apply to military service. 6 7 SECTION 4. Section 50- 152(d), Code of Ordinances, entitled "Amounts payable 8 upon election to participate" is hereby amended as follows: 9 Sec. 50 -152. Amounts payable upon election to participate. 10 11 (d) Upon termination of employment, participants in the DROP will receive the 12 balance of the DROP account in accordance with the following rules: 13 (1) Members may elect to begin to receive payment upon termination of 14 employment or defer payment of the DROP until the latest day as 15 provided under subsection (d)(3) of this section. 16 (2) Payments shall be made in either: 17 a. Lump sum. The entire account balance will be paid to the retirant 18 upon approval of the board of trustees. 19 b. Installments. The account balance will be paid out to the retirant 20 in three equal payments paid over three years, the first payment to 21 be made upon approval of the board of trustees. Page 8 of 10 1 c.(3) Annuity. The account balance will be paid out in monthly 2 installments until the entire balance is exhausted. At the direction of 3 the participant, the account balance can be used to purchase an 4 annuity to be paid monthly, the first payment to be made upon 5 approval by the board of trustees. The annuity must be purchased 6 from an insurer licensed to sell such annuities in the state. 7 L (-4}Any form of payment selected by a police officer must comply with 8 the minimum distribution requirements of the IRC 401(A)(9), and is subject 9 to the requirements of subsection 50 -132 e.g. payments 10 must commence by age 70 1/2. 11 U4 ftThe beneficiary of the DROP participant who dies before payments 12 from the DROP begin shall have the same right as the participant in 13 accordance with subsection 17 of the IRC 401(A)(9). 14 15 SECTION 5. Codification of this Ordinance is hereby authorized and directed. 16 17 SECTION 6. This Ordinance shall become effective immediately upon adoption. 18 PASSED this day of 2008, upon first reading. 19 PASSED AND ADOPTED this day of 2008, upon 20 second and final hearing. 21 22 CITY OF PALM BEACH GARDENS FOR AGAINST ABSENT Page 9 of 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 BY: Eric Jablin, Mayor David Levy, Vice Mayor Joseph Russo, Councilmember Jody Barnett, Councilmember Bert Premuroso, Councilmember ATTEST: BY: Patricia Snider, CMC, City Clerk APPROVED AS TO FORM AND LEGAL SUFFICIENCY BY: Christine P. Tatum, City Attorney HAPBG 0003 \Plan Oocs\Amend \2008 \prior pol srvc -no vstg.wpd BSJ/ka - May 9, 2007 November 19, 2007 September 9, 2008 Page 10 of 10