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HomeMy WebLinkAboutMinutes Fire Pension 011116PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND MINUTES OF MEETING HELD JANUARY 11, 2016 A meeting of the Board of Trustees was called to order at 1:02PM at Council Chambers, Palm Beach Gardens, Florida. Those persons’ present were: TRUSTEES OTHERS Rick Rhodes, Chair Audrey Ross, Administrator Martin Cohen, Vice Chair Dan Johnson, Investment Consultant Tom Murphy, Secretary Pedro Herrera, Attorney (by conference call) Jon Currier PUBLIC COMMENTS N/A SELECTION OF CHAIRMAN, VICE CHAIR & SECRETARY Ms. Ross stated that the Board needs to select a Chair, Vice Chair, and Secretary according to their policy, as it is due every January. A motion was made by Marty Cohen to nominate Rick Rhodes as Chair. The motion was seconded by Jon Currier and carried 4-0. Mr. Rhodes accepted the nomination as Chair. A motion was made by Tom Murphy to elect Rick Rhodes as Chair. The motion was seconded by Marty Cohen and carried 4-0. A motion was made by Tom Murphy to nominate Martin Cohen as Vice Chair. The motion was seconded by Jon Currier and carried 4-0. Mr. Cohen accepted the nomination as Vice Chair. A motion was made by Tom Murphy to elect Martin Cohen as Vice Chair. The motion was seconded by Jon Currier and carried 4-0. A motion was made by Marty Cohen to nominate Tom Murphy as Secretary. The motion was seconded by Jon Currier and carried 4-0. Mr. Murphy accepted the nomination as Secretary. A motion was made by Jon Currier to elect Tom Murphy as Secretary. The motion was seconded by Marty Cohen and carried 4-0. MINUTES The Trustees reviewed the minutes of the October 1, 2015 special meeting. Tom Murphy made a motion to approve the October 1, 2015 minutes as amended. The motion was seconded by Marty Cohen and it carried 4-0. 2 INVESTMENT MONITOR REPORT: THE BOGDAHN GROUP (DAN JOHNSON) Mr. Johnson reviewed the December 31, 2015 flash performance report. He explained that this is a preliminary report and that he will have the complete December 31, 2015 quarterly report with him at the next meeting. For the month the total fund is down -1.46%, but for the fiscal year to date they are up 3%. The Plan’s total assets are now up to $76.9M, which now includes the 2014 State money and the City’s contributions for the fiscal year beginning October 1, 2015. Mr. Johnson reviewed each manager’s performance and noted that most managers underperformed in the month of December, as it was a very volatile month. He noted that BlackRock does not have a long track record with this Plan as they were just funded about a month ago. Mr. Johnson asked the Board’s permission to bring in Agincourt to the next meeting for a review, as he would like to get back on track with the quarterly manager reviews. The Trustees concurred. Mr. Johnson commented that there are no other action items for today. CLOSED ATTORNEY-CLIENT SESSION Tom Murphy made a motion to start the closed attorney-client session at 1:32 PM (not open to the public). The motion was seconded by Jon Currier and it carried 4- 0. Tom Murphy made a motion to end the closed attorney-client session and reopen the public pension meeting at 2:03PM. The motion was seconded by Jon Currier and it carried 4-0. ATTORNEY REPORT: SUGERMAN & SUSSKIND (PEDRO HERRERA) Mr. Herrera stated that the Plan finally received its IRS Determination Letter. The IRS has determined that the Pension Plan is in compliance and in return, they issued a favorable letter. This letter expires January 31, 2019. Mr. Herrera commented on the DROP distribution policy, in which is still in the process of drafting. He wanted to confirm with the Board and the administrator that the monthly open enrollment periods were reasonable on the DROP side. The Trustees and the administrator confirmed that the monthly withdrawals were fine. Mr. Herrera stated that the Legislative session has begun and there are a couple of Bills that have already been proposed, but he will keep the Board updated during the process. Mr. Cohen advised Mr. Herrera that at the next meeting he will be making a motion to propose to the City Council that they change the Ordinance in regards to the Share accounts and having an alternative investment option as well as having the same distribution options as the DROP account. The Trustees advised Mr. Cohen that he made that motion at the last meeting but it did not pass. Mr. Cohen stated that he will than retract his above statement. Lastly, Mr. Herrera reminded the Trustees of the upcoming educational offers. 3 ADMINISTRATIVE REPORT: RESOURCE CENTERS (AUDREY ROSS) DISBURSEMENTS The Board reviewed the disbursements presented for approval by the Administrator. A motion was made by Tom Murphy to approve the disbursements as presented by the Administrator. The motion was seconded by Marty Cohen and carried 4-0. BENEFIT APPROVALS The Board reviewed the 2016 COLA increases for the active DROP members as well as the retirees that were prepared by the Plan’s Actuary. A motion was made by Tom Murphy to approve the 2016 COLA increases for the active DROP members and retirees as prepared by the Plan’s Actuary. The motion was seconded by Jon Currier and carried 4-0. Ms. Ross presented the Board with the most recent service provider contract review. The Trustees directed her to bring back the Attorney’s and Investment Consultant’s agreements for review at the next meeting since that is where they last left off. Ms. Ross stated that it is that time of year again to renew the Plan’s fiduciary liability insurance. She explained that the Plan currently has a $1M policy and the Board discussed if that was enough coverage. Mr. Herrera stated that he thinks the $1M coverage is fine for this size Plan, but it does not hurt to look at other quotes to see the price difference. The Trustees directed Ms. Ross to get a quote for the expiring $1M coverage, as well as $1.5M, $2M, and $5M. OLD BUSINESS N/A NEW BUSINESS The Trustees discussed having some kind of interim benefit election form for members that enter the DROP or retiree. Mr. Murphy explained that it takes a while for members to receive their final pension numbers back and therefore they would something to be on file regarding the member’s pension election intent, just in case something happened to the member in between when they DROP/retire and receiving their final retirement numbers. Ms. Ross stated that she has a Plan that has an “interim election form” that would deal with these types of scenarios. She stated that she will bring it to the next meeting for the Board to review and consider. Lastly, Mr. Rhodes discussed the minutes and the backup meeting material being posted online. Ms. Ross stated that she does post the Plan’s minutes on the website after they have been approved by the Board, but she does not post some of the backup which would include the benefit approves, accounts payable, etc. because of the content being online. The Trustees agreed but did direct Ms. Ross to post the signed minutes on the website. 4 OTHER BUSINESS There being no further business, the meeting adjourned at 2:46PM. Respectfully submitted, Tom Murphy, Secretary