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HomeMy WebLinkAboutMinutes Police Pension 121608City of Palm Beach Gardens Police Officers ` Pension Fund Minutes of the Meeting Held December 16th, 2008 Special Meeting The special meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers' Pension Fund was called to order at 3:OOPM 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 Jay Spencer, Chairman OTUCE5 PRESENT John McCann (Thistle Asset Consulting) David Pierson, Secretary Bonni Jensen (Hanson, Perry, & Jensen, P.A.) Brad Seidensticker, Trustee Donna Cannon (Palm Beach Gardens Clerk's Office) Jules Barone, Trustee Audrey Ross (Tegrit Plan Administrators -TPA) INVESTMEdT CONSULTANT REPORT Thistle Assets - Presented by John McCann Mr. McCann reviewed the current market situation and stated that October was a very bad month and in November it got a little better. He reviewed the 2 worksheets that he handed. The worksheets reflected the fund's current assets and how they were allocated. Mr. McCann recommended to the board to move $3.6M from ICC Capitals fixed income fund and split it between the three S &P funds as recommended on the worksheet. Mr. McCann commented that he is trying to rebalance so he will be inline with the Investment Policy Guidelines. He also stated that he does not want to touch the International accounts as they are already down 40% for the year. The board had a lengthy discussion on the rebalancing and the amounts that should be moved. The board decided that they rather rebalance 20% over the next 5 months instead of rebalancing a large lump sum at one time. MOTION: Mr. Pierson made a motion to move $700,000 from ICC Capitals Fixed Income account and split it between Rhumblines S &P600, S &P500 and S &P400 accounts. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 4-0 ADMINISTRATOR REPORT Tegrit Plan Administrators, LLC (TPA) - Presented by Audrey Ross Ms. Ross reviewed the audit engagement letter from Cherry, Bekaert & Holland. Ms. Jensen reviewed a few changes that she would like removed from the letter. MOTION: Mr. Seidensticker made a motion to approve the audit engagement letter from Cherry, Bekaert & Holland as amended by Bonn! Jensen. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 4-0 Ms. Ross presented the Fiduciary Insurance Renewal quote to the board. The board had a brief discussion on the rates and the insurance company. MOTION: Mr. Seldensticker made a motion to accept and renew the Fiduciary Insurance. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 4-0 Ms. Ross reported that she had a conversation with the City and cleared up any outstanding issues or questions in regards to the retirees` health insurance premiums being deducted from the retiree's pension checks. Ms. Jensen explained to the board that a retiree must have his insurance premium deducted directly from his pension check in order for the retiree to be eligible for the $3,000 tax deductible at the end of the year. Ms. Ross explained that she had contacted each individual retiree to see if they would like to participate. For the members that decided to proceed with it, their first deduction will start January 1, 2009. ATTORNEY REPORT Hanson, Perry & Jensen, P.A. - Presented by Bonni Jensen Ms. Jensen reviewed the draft DROP distribution policy with the board. She explained that members have 3 different ways that they can withdrawal their money; a lump sum withdrawal, 3 increments, and an annuity can be purchased. Ms. Jensen explained the rules and stipulations for each option. She also noted that there will be open enrollment periods for these withdrawals and explained that members can also request a hardship withdrawal in between the open enrollment periods. Ms. Jensen stated that she will go through and clean up the document and will bring it back to the January meeting. Ms. Jensen reviewed the rules and regulations regarding the normal retirement age for governmental plans that were suppose to be effective January 1, 2009. The IRS realized that were too many issues and they put the matter on hold until January 1, 2011, Mr. Spencer reported that the City is exploring the idea of converting the police and fire plans over the Florida Retirement System (FRS). He explained that City had already formed a committee to explore the cost impact, the pros and cons and etc. Mr. Spencer commented that Ms. Jensen and himself meet with the union representative to give him some background an how this plan is ran so he would have some information before he meet with the City. Mr. Spencer stated that he would like this funds Actuary, Steve Palmquist do a cost impact study. Ms. Jensen commented that if the City did proceed with turning over to the FRS, then this pension plan could potentially be terminated or closed. Mr. Spencer stated that he would like the board to allow Mr. Palmquist to do a cost impact study to reflect the termination of the plan. MOTION: Mr. Barone made a motion to direct Gabriel, Roeder, Smith 8e Company to do an actuarial cost impact study on the termination of the pension plan. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 4-0 A]OU RN 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 Wednesday January 14, 2009 at LOAM; the Trustees officially adjourned the meeting at 4:19PM. Respectfully submitted, DAVID PIERSON, Secretary