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