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HomeMy WebLinkAboutMinutes Fire Pension 030716 PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND MINUTES OF MEETING HELD MARCH 7, 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 Ed Morejon Eric Leventhal, Auditor Jon Currier Allan Owens, City of PBG Finance Director PUBLIC COMMENTS N/A PRESENTATION OF THE 9/30/2015 AUDITED FINANCIAL STATEMENTS: KSDT (ERIC LEVENTHAL) Mr. Leventhal introduced himself to the Board and commented that recently his office and Steve Gordon’s office merged. Mr. Gordon was not available today for a meeting due to a scheduling conflict. Mr. Leventhal presented the Board with the September 30, 2015 audited financial statements and noted that a clean unmodified opinion was issued, which is the highest level. He reviewed and compared the Plan’s asset from 2014 to 2015 and stated that the net assets increased which is great, most other Plans had a net loss. The total plan assets increased from $69,311,458 in 2014 to $72,969,734 in 2015, with $62,218,936 of those assets being set aside for pension payments and DROP and Share accounts. Mr. Leventhal reviewed the breakdown of contributions and benefit payments and Mr. Cohen noted that the City made an additional contribution during the year. Mr. Leventhal noted that the City’s additional contributions are reflected in this report and is discussed in the MD&A as it is not a normal recurring event. The Plan’s administrative expenses actually decreased this year. He reviewed the new GASB reports and the funded ratio. There are two funded ratio amounts and as a percentage of the total pension liability, the Plan remains 78.41% funded. Mr. Cohen stated that the two different funded ratios should be mentioned in the MD&A since they are misleading. Mr. Leventhal commented that he is agrees with Mr. Cohen’s comments but they have to abide by the GASB guidelines. Lastly, Mr. Leventhal stated that overall the Plan is doing very well and that there were no findings or no issues while performing the audit. Ed Morejon made a motion to approve the September 30, 2015 Audited Financial Statements as presented. The motion was seconded by Jon Currier and it carried 5- 0. INVESTMENT MONITOR REPORT: THE BOGDAHN GROUP (DAN JOHNSON) Mr. Johnson reviewed the Plan’s flash performance report as of February 29, 2016. For the month the fund was down –0.21% net of fees, for the quarter to day they are also down -3.64% net of fees, and it remains the same for fiscal year to date at -0.46%. Although March is starting to look like a better month as things have already turned around and the fund is already up 1.7% in the first week, and that brings the fiscal year to 2 date number up to 1.5%. He briefly reviewed each manager’s performance and explained why the Dana small cap fund is underperforming, although he does not have any recommendations at this time for change, as they will just keep monitoring this fund closely and will report to the Board. The Trustees discussed the fixed income sector, which is lagging primarily due to the Templeton fund. Mr. Johnson noted that fixed income has been a rough market to be in and stated that they can look at other candidates in this area, but overall the list of candidates is relatively small. Mr. Johnson commented that he would bring back a list of other fixed income managers to the next meeting so that the Trustees can at least do their diligence review. Overall, the portfolio is doing very well. ATTORNEY REPORT: SUGERMAN & SUSSKIND (PEDRO HERRERA) Mr. Herrera tabled the DROP distribution policy until the next meeting. Mr. Herrera reviewed his firm’s memo regarding the proposed IRS regulations relating to normal retirement age. He noted that it will not affect this pension plan because they are already following these guidelines; this is for informational purposes only. Mr. Herrera reminded the Trustees of the upcoming educational offers. Lastly, Mr. Herrera briefly discussed the Legislative session and noted that there is a proposed Bill that would allow for a county surtax on sales that the City charges to pay down their unfunded liability. This Bill has passed both the Senate and the House and he will keep the Board updated. ADMINISTRATIVE REPORT: RESOURCE CENTERS (AUDREY ROSS) MINUTES The Trustees reviewed the minutes of the February 3, 2016 regular meeting. Tom Murphy made a motion to approve the February 3, 2016 minutes. The motion was seconded by Marty Cohen and it carried 5-0. 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 5-0. BENEFIT APPROVALS The Board reviewed the benefit approval list dated March 7, 2016 as presented by the Administrator (application to enter the DROP for Eugene Bryer). A motion was made by Tom Murphy to approve the application to enter the DROP for Eugene Bryer as amended. The motion was seconded by Jon Currier and carried 5-0. Ms. Ross stated that they are reviewing the Administrator and Actuary contracts today as they review all their service providers periodically. The Trustees discussed and agreed to table the Actuary review until the next meeting after the valuation report is presented. The Trustees discussed the Administrator contract and services and Mr. Murphy noted 3 that there was a communication issue with a members DROP calculation, but other than that the Board stated that they were pleased. Ms. Ross stated that the Board will need to schedule a special meeting within the next couple of weeks to review and approve the Plan’s September 30, 2015 Actuarial Valuation Report. A copy of the draft report is available, although the Actuary had a meeting conflict today. Also available is a copy of the Plan’s GASB 67 & 68 statements, which will be posted on the Plan’s website per the Division of Retirement requirement. OLD BUSINESS N/A NEW BUSINESS N/A OTHER BUSINESS There being no further business, the meeting adjourned at 2:35PM. Respectfully submitted, Tom Murphy, Secretary