HomeMy WebLinkAboutMinutes Police Pension 092216
Minutes 9-22-16.doc
Page 1 of 4
City of Palm Beach Gardens Police Officers’
Pension Fund
Minutes of the Meeting Held
September 22, 2016
The regular meeting of the Board of Trustees of the City of Palm Beach Gardens
Police Officers’ Pension Fund was called to order at 9:04 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, Chairman Audrey Ross (Resource Centers)
Marc Glass, Trustee Bonni Jensen (KKJ&L)
Brad Seidensticker, Trustee John McCann (The Bogdahn Group)
Greg Mull, Trustee Steve Stack (Highland Capital)
Brad Rinsem (Salem Trust Company)
Karen Russo (Salem Trust Company)
R. Anderson (PBG Police Officer)
Randy Buntin (PBG Police Officer/ Union Rep)
Greg Allen (PBG Police Officer/Union Rep)
TRUSTEE UPDATE
Ms. Ross stated that Mr. Manuel had to resign from the pension board due to a new
position he has accepted at his work. The City has not appointed a replacement as
of yet.
PUBLIC COMMENTS
Ms. Jensen stated that at the past couple of meetings they have discussed the setup
of Share accounts and how it will be funded with the State money. Since no mutual
agreement was reached between the City and the Union and written into the CBA,
the States default plan will be put into place. The State money will be split 50/50
between the City and the members share accounts. Mr. Spencer stated that he
would have liked to see the State money stay status quo in that they use the money
to pay for the supplemental benefit that retirees receive to help offset issuance costs
when they retire. The State’s default Plan only distributes the State money to active
members share accounts and retirees don’t get any of the benefit. Mr. Buntin
explained that the City has already made it clear that they are done with the CBA for
this contract and that they can discuss it when it reopens. Mr. Spencer stated that
he would like to see this one issue be reopened with the City but Ms. Jensen also
commented that this is time sensitive because the Actuary will need to know what
the outcome is because he needs to incorporate it into his Actuarial Valuation report
as of September 30, 2016. The City did not add the State money language into the
CBA/Ordinance and the Board wants to have a sit down meeting with the PBA/Union,
City, and a pension rep to get this straightened out. The Trustees had a very
lengthy discussion on this issue and asked Ms. Jensen to reach out to all the included
parties to see what can be done at this point.
SALEM TRUST COMPANY
Presented by Brad Rinsem & Karen Russo
Mr. Rinsem welcomed himself and Ms. Russo back. He explained that he was here
today to review some changes that are occurring in regards to the Plan’s sweep
money market account. The Plan is currently invested in the Goldman Sachs prime
Minutes 9-22-16.doc
Page 2 of 4
money market account. The standards for this account will be changing and
therefore Salem is recommending some alternative funds to move into. Mr. McCann
stated that he has reviewed this change and is recommending a switch from the
Goldman Sachs prime money market fund to the Goldman Sachs Financial
Governmental Fund. He commented that there is not really a big difference between
the funds other than reporting requirements.
MOTION: Mr. Seidensticker made a motion to authorize and approve
Salem Trust to change the Plan’s sweep vehicle account from
the Goldman Sachs prime money market fund to the Goldman
Sachs Financial Governmental fund per the recommendation of
the Investment Consultant.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 4-0.
Ms. Russo passed out an authorized signors list for Salem Trust as well as a list of
authorized people allowed to receive statements. She asked the Board to review the
documents for any changes.
Mr. Rinsem stated that Salem Trust offers a global tax service in where they will
claim the foreign tax recovery on behalf of the fund. He explained that Salem would
file all the necessary on behalf of the Board to recoup their fees. Salem partnered
with a tax firm to be able to offer this service to their clients. Mr. McCann stated
that this service would only apply to the Highland Capital account as Rhumbline files
their own. The Trustees discussed this service and decided not to move forward with
it at this time.
INVESTMENT MANAGER REPORT
Highland Capital Management – Presented by Steve Stack
Mr. Stack reported that for the fiscal year to date the equity fund was up 5.36%. He
commented that both the equities and growth had rallied during the previous quarter
but when the BREXIT occurred they lost about 100 basis points. Also airlines hurt
their performance as well. Mr. Stack stated that he thinks the rates will stay low for
the foreseeable future and they recently increased their exposure to the corporate
debt which helped them out. In addition they are still seeing the flattening of the
yield curve which is beneficial to the portfolio and it should remain like this through
the end of the year. The bond market is still a rough place to be, but all together
they are comfortable with where they are positioned.
INVESTMENT CONSULTANT REPORT
The Bogdahn Group – Presented by John McCann (via teleconference)
Mr. McCann stated that for the quarter ending June 30, 2016 the total fund net of
fess was up 2.03% which put them at $79M in assets. For the fiscal year to date the
fund is up 7.43% so they are on the right track for meeting the Plan’s assumed rate
of return this year. He briefly reviewed each manager’s performance during the
quarter and noted that they all did well. Since the end of the quarter we have closed
out the Vanguard account and transferred the funds to the new Rhumbline Equity
account. Mr. McCann also reviewed the Dreyfus and Oppenheimber accounts in
which both managers have negative yield, although their quarterly returns were
good. He does not like that both managers participate in the negative yield and
therefore he is recommending transferring these two mutual fund accounts over to
Highland Capital’s equity fund.
Minutes 9-22-16.doc
Page 3 of 4
MOTION: Mr. Seidensticker made a motion to authorize the transfer of
the Dreyfus and Oppenheimer accounts to the Highland Capital
bond fund as recommended.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 4-0.
Mr. McCann commented that he will revise his fee as well since he is no longer
managing the mutual fund accounts.
ATTORNEY REPORT
KKJ&L - Presented by Bonni Jensen
Ms. Jensen discussed the rehire after retirement issue which should already be dealt
with by the City. If any future issue arises then Mr. Mull or Mr. Glass will notify the
Board so it can be properly dealt with. They also discussed the job description of a
training coordinator in which Mr. Glass will send to Ms. Jensen to review as they are
looking to fill that position with a retiree.
ADMINISTRATOR REPORT
Resource Centers – Presented by Audrey Ross
Ms. Ross presented the Board with the September 30, 2016 audit engagement letter
from Cherry Bekaert. She commented that the fee this year increased by $450 to
$15,150. Ms. Jensen stated that there is supposed to be additional language added
to the audit engagement letter regarding public records request and she will get with
the auditor to get that added.
MOTION: Mr. Glass made a motion to approve the September 30, 2016
Cherry Bekaert audit engagement letter as amended adding in
the public records request language.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 4-0.
Ms. Ross presented the Board with the 2016/2017 Administrative Budget. She
explained that they have to create a budget for the next fiscal year and submit it to
the Plan’s Sponsor as a new State requirement.
MOTION: Mr. Mull made a motion to approve the 2016/2017
Administrative budget as presented.
SECOND: Mr. Glass seconded the motion.
CARRIED: The motion carried unanimously 4-0.
Ms. Ross stated that it is time to renew the Plan’s commercial general liability
insurance policy. The policy increased by $95 for a total of $1,013.
MOTION: Mr. Mull made a motion to approve the 2016/2017
Administrative budget as presented.
SECOND: Mr. Glass seconded the motion.
CARRIED: The motion carried unanimously 4-0.
Minutes 9-22-16.doc
Page 4 of 4
MINUTES
MOTION: Mr. Glass made a motion to approve the minutes from the June
1, 2016 regular meeting.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 4-0.
DISBURSEMENTS APPROVALS
MOTION: Mr. Glass made a motion to approve the disbursements.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 4-0.
BENEFIT APPROVALS
MOTION: Mr. Mull made a motion to approve the applications to enter the
DROP for Timothy Connors, Richard Moretti, and Kevin Folmar,
the applications to exit the DROP for Andrew Spragg, Robert
Odell, and Gary Carmack, the applications for distribution from
DROP accounts due to retirement for Andrew Spragg and
Robert Odell, the applications for distributions from DROP
accounts (6/15/2016) for Gwen Fleming, the applications for
distributions from DROP accounts (7/15/2016) for William
Brandt and Joseph Sheehan, and the applications for
distributions from DROP accounts (8/15/2016) for Sheree
Brown, Gwen Fleming, and Jay Spencer, and the application for
a refund of contributions for Abel Alves
SECOND: Mr. Glass seconded the motion.
CARRIED: The motion carried unanimously 4-0.
FINANCIAL STATEMENTS
The board reviewed and discussed the financial statements that were provided
through May 2016.
The board received and filed the financial statements through May 2016.
OTHER BUSINESS
Ms. Ross presented the Board with the September 30, 2015 Chapter 112.664, F.S.
Compliance Report that was prepared by the Plan’s Actuary. This report is for
information purposes as required by the State.
Mr. Spencer stated that he would really encourage the other Trustees to attend the
Division of Retirement School in November if it fits into their schedules. He would
also like the Trustees and Ms. Jensen to attend the lead matrix conference at
WestPoint next year as it is very beneficial.
Mr. Seidensticker stated that he had a question in regards to the recent unfortunate
events of police officers passing away. He wanted to know what type of death
benefit is available to a police officer’s family if they are killed while actively
employed. Ms. Jensen explained that if the police officer was not vested then a
refund of contributions would be issued (for either a non-duty or duty death). The
Plan does have a death benefit (accrued benefit) for vested members that is payable
Minutes 9-22-16.doc
Page 5 of 4
to the members spouse or children upon the members death. The Trustees stated
that they would like to discuss this issue at a future meeting as well.
PUBLIC COMMENTS
N/A
AJOURN
There being no further business, the Trustees officially adjourned the meeting at
12:46PM. The next meeting is scheduled for Thursday December 1, 2016 at 9AM.
Respectfully submitted,
_____________________________
Brad Seidensticker, Secretary