HomeMy WebLinkAboutAgenda Police Pension 053117 Agenda
City of Palm Beach Gardens Police Officers’
Pension Fund
MEETING OF MAY 31, 2017
LOCATION: City Council Chambers’
10500 North Military Trail
Palm Beach Gardens, FL 33410
TIME: 9 AM
1. Call Meeting To Order
2. Roll Call:
• Jay Spencer, Chairman
• Brad Seidensticker, Secretary
• Allan Owens, Trustee
• Marc Glass, Trustee
• Greg Mull, Trustee
3. Investment Manager Report – Highland Capital (Steve Stack)
4. Investment Consultant Report – AndCo Consulting (John McCann)
5. Attorney Report – KKJ&L (Bonni Jensen)
• Memo – Annual Form 1 Filing
• Memo – Top 10 Internal Controls to Prevent & Detect Fraud
• Memo – Cyber, Privacy & Crime Insurance
• Updated Summary Plan Description
6. Administrator Report – Resource Centers (Audrey Ross)
• Admin Expense Report and Budget
7. Disbursements
8. Benefit Approvals
9. Financial Statements
10. Other Business
• Salem Trust 3/31/17 Service Report Summary
11. Public Comments
12. Adjourn
Next Meeting Date:
Scheduled for Thursday September 21, 2017 @ 9AM
PLEASE NOTE:
Should any interested party seek to appeal any decision of this Board with respect to any matter considered at such meeting or hearing, s/he will need a record of the
proceedings and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which
the appeal is to be based.
In accordance with the Americans With Disabilities Act of 1990, persons needing a special accommodation to participate in this meeting should contact the The Pension
Resource Center, LLC no later than four days prior to the meeting.
Minutes 3-9-17.doc
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City of Palm Beach Gardens Police Officers’
Pension Fund
Minutes of the Meeting Held
March 9, 2017
The regular meeting of the Board of Trustees of the City of Palm Beach Gardens
Police Officers’ Pension Fund was called to order at 9:05 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)
Brad Seidensticker, Secretary Bonni Jensen (KKJ&L)
Marc Glass, Trustee John McCann (AndCo. Consulting)
Greg Mull, Trustee Steve Stack (Highland Capital)
TRUSTEE UPDATE
Ms. Ross briefly stated that the City is still working on appointing someone for the
open Trustee seat on the pension Board. The City is also asking for any
recommendations as well.
INVESTMENT MANAGER REPORT
Highland Capital Management – Presented by Steve Stack
Mr. Stack briefly updated the Board on his firm and stated that they recently added a
new employee who works in the financial and risk based sector. He reviewed the
market environment during the quarter ending December 31, 2016 and noted that
interest rates rose and bonds sold off and this Plan benefited from it. Mr. Stack
stated that portfolio wise they have shortened duration in anticipation on interest
rates rising so therefore 60% of their assets are in the 3-5 year range and they are
finding good yield there. They are also moving more into mortgage backed securities
because as rates rise less people will be refinancing their homes. As of March 7,
2017 the fixed income portfolio was up 1.28% so they are still keeping ahead. Lastly
Mr. Stack gave a brief update on the equities and noted that they continue to do well
and are up 12.91% for the quarter.
INVESTMENT CONSULTANT REPORT
AndCo. Consulting – Presented by John McCann
Mr. McCann explained this firm’s new name change to AndCo. Consulting that was
effective January 1, 2017. This name change does not have any effect on the
portfolio or personnel. Mr. McCann briefly reviewed the Plan’s September 30, 2016
aggregate chart that he does at the end of each year since he did not have time to
go over this at the last meeting.
Mr. McCann stated that the Plan now has 4 funds with Rhumbline as the
International equity portfolio was recently funded. As of December 31, 2016 the
total fund was up 2.43% versus the benchmark at 1.72% and the total assets are up
to $84.4M. Since the end of the quarter the fund has added another $2M. He
reviewed the asset allocation which is slightly out of balance on the fixed income side
due to the bonds rallying, but since the end of the quarter they are back in line with
the target allocation. Mr. McCann briefly reviewed each manager’s performance
during the quarter and commented that Oppenhiemer and Dreyfus will be moving
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over to Highland Capital. Also as of current this Plan is fully invested with American
Realty at 7.8% but can still go up to 10%. The Trustees had a lengthy discussion on
adding more to American Realty as real estate has been doing great. American
Realty currently has a 6 month entry queue but they can still put in the request now.
Mr. McCann stated that they will more than likely take from fixed income to fund real
estate, but he stated that he will confirm that once the call from American Realty is
actually made.
MOTION: Mr. Glass made a motion to increase the American Realty
holding to 10% by moving $2M from Highland Capital.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 4-0.
Ms. Jensen commented that Thistle contract was assigned to the Bogdahn Group and
now they will need to assign it to AndCo. Consulting. Ms. Jensen recommends at this
point for the Board to sign a new contract with AndCo. Consulting to reflect the name
change, but everything else remains the same.
MOTION: Mr. Glass made a motion to allow the Chair to sign in between
meetings the updated Investment Consultant contract noting
the name change only.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 4-0.
ATTORNEY REPORT
KKJ&L - Presented by Bonni Jensen
Ms. Jensen reviewed the new online State Annual Report requirement. This new
requirement requires that all State Annual Reports be filed online through the
Division of Retirement website. Therefore the signatures of the Chairman and
Secretary are no longer required.
Ms. Jensen stated that the FRS recently decreased their assumed rate of return from
7.8% to 7.6%, although their goal is 7.5%. This Plan was already proactive in
decreasing their assumed rate of return as they are at 6.8%. Also last year the FRS
changed their mortality table in which all DB Plans had to adopt as well, and this Plan
adopted that new table last year. Now this year the FRS has changed their mortality
table again, therefore this Plan has another 2 years to implement the new table into
the Plan once again.
Ms. Jensen noted that the IRS mileage rate decreased from 54 cents to 53.5 cents
effective January 1, 2017.
Ms. Jensen reviewed the Miami Beach fraud issue that recently occurred. She
explained what happened and commented that now would be a good time for this
Plan to double check their securities with their service providers and to also look into
cyber liability insurance coverage which can also protect the Plan against multiple
other uses. Ms. Ross will look into having someone attend a Board meeting to
discuss cyber liability coverage and to give some quotes.
The Board briefly discussed transitioning the DROP statements from GRS to PRC
since PRC processes the actual DROP distributions, the accounting would be easier
and cleaner. The Trustees tabled this discussion until the next meeting.
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The Trustees had a very lengthy discussion on the Share accounts and the excess
State money. Mr. Spencer explained that after the last meeting Ms. Jensen sent a
letter to the City regarding this outstanding issue and the City stated that the CBA is
closed and they are not reopening it at this time. Therefore at this point the default
plan is now in place regarding the Share accounts and splitting the excess State
money 50/50 between the Plan and the City. This default plan also affects the
retirees. On behalf of the retirees, Mr. Spencer stated that the default Plan will take
away benefits from retirees that they have earned and that is not legally allowed.
Therefore we need to keep in mind any legal ramifications that could occur when
dealing with this issue. There was a very lengthy discussion on the State money and
what benefits it has been used for and what benefits it will be used for going
forward. Ms. Jensen reminded the Trustees that under the default provision Share
accounts have to be established, but now the question is how those Share accounts
will be funded. Mr. Spencer shared some ideas he had the Actuary work out in
regards to splitting up the State money amongst the Share accounts for active and
retired members. Ms. Jensen stated that at this point to get a move on the issue,
the City will need to pass an Ordinance implementing Share accounts into the
pension plan and then they will work on funding them. After that the Board will need
to meet with the PBA to come up with the funding aspect.
Ms. Jensen stated that the summary plan description needs to be updated but at this
point she thinks the Board should wait until the Share account/state money issue is
resolved so that it can be added into this document as well.
Ms. Jensen presented the Board with her fee increase proposal. Her last fee increase
was back in March 2014 and therefore she is now asking to increase her hourly rate
to $265 (she noted that all her new clients pay $365 per hour). This new fee would
be effective April 1, 2017 and there is no lock in period. The Trustees discussed the
proposal and asked that a 3 year fee guarantee rate be added in. Ms. Jensen
concurred.
MOTION: Mr. Glass made a motion to approve Ms. Jensen’s fee increase
to $265 per hour effective April 1, 2017, with a 3 year fee
guarantee.
SECOND: Mr. Seidensticker seconded the motion.
CARRIED: The motion carried unanimously 4-0.
ADMINISTRATOR REPORT
Resource Centers – Presented by Audrey Ross
N/A
MINUTES
MOTION: Mr. Glass made a motion to approve the minutes from the
December 2, 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.
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CARRIED: The motion carried unanimously 4-0.
BENEFIT APPROVALS
MOTION: Mr. Seidensticker made a motion to approve the applications to
exit the DROP for Jack Schnur, Ralph Kranchick, Chris Barca &
Tim Roman, the application for distribution from DROP account
(due to retirement 1/1/17) for Jack Schnur, the applications
for distributions from DROP account (due to retirement
3/1/17) for Chris Barca & Tim Roman, the applications for
distributions from DROP accounts (1/15/17) for William
Brandt, Robert O’Dell, Wayne Sidey & Todd Thomas, the
applications for distributions from DROP accounts (2/15/17)
for John Boyle, Sheree Brown, Gwen Fleming, Richard Geist,
Robert Odell, Jeff Main & Joseph Sheehan, and the application
for distribution of DROP account (3/15/17) for Gary Carmack.
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 January 2017.
The board received and filed the financial statements through January 2017.
OTHER BUSINESS
Ms. Ross presented the Board with the Salem Trust letter that announced Mr.
Rinsem’s retirement that was effective December 31, 2016.
PUBLIC COMMENTS
N/A
AJOURN
There being no further business, the Trustees officially adjourned the meeting at
11:08PM. The next meeting is scheduled for Wednesday May 31, 2017 at 9AM.
Respectfully submitted,
_____________________________
Brad Seidensticker, Secretary
Minutes 4-28-17(SM).doc
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City of Palm Beach Gardens Police Officers’
Pension Fund
Minutes of the Special Meeting Held
April 28, 2017
The special meeting of the Board of Trustees of the City of Palm Beach Gardens
Police Officers’ Pension Fund was called to order at 9:11 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 Pete Strong (GRS)
Greg Mull, Trustee Neal Renuart (Cherry Bekaert)
R. Anderson (PBG Police Officer/Union Rep)
Randy Buntin (PBG Police Officer/ Union Rep)
Greg Allen (PBG Police Officer/Union Rep)
Dorian Hawkins (PBG Police Officer/Union Rep)
Allan Owens (City of PBG Finance Director)
SEPTEMBER 30, 2016 AUDITED FINANCIAL STATEMENTS
Presented by Neal Renuart
Mr. Renuart introduced himself to the Board and stated that he is taking over
servicing for this Plan since Mr. Burdick retired from Cherry Bekaert last year. He
stated that an unmodified clean opinion was issued in regards to the September 30,
2016 audited financial statements. He reviewed the Plan’s internal controls and
procedures in which there were no deficiencies or reportable compliance issues. He
also reviewed the new additional disclosures that were added in this year due to the
State mandate. He reminded the Trustees that the new disclosures do not affect the
Plan’s actual numbers or funding methods. For the fiscal year ending September 30,
2016 the Fund ended with $82,113,694 in assets which are up from $74,092,896
last year. Therefore the Plan had an $8M investment gain this year net of fees. The
total employer contributions slightly decreased as the employee contributions slightly
increased. The Plan’s total benefit payments increases as well as the admin
expenses, but the admin expenses still remain relatively low compared to the Plan
size.
MOTION: Mr. Glass made a motion to approve the September 30, 2016
Audited Financial Statements as presented.
SECOND: Mr. Seidensticker seconded the motion.
CARRIED: The motion carried unanimously 4-0.
SEPTEMBER 30, 2016 ACTUARIAL VALUATION REPORT
Presented by Pete Strong
Mr. Strong stated that the Plan had an overall increase in covered payroll for the
fiscal year ending September 30, 2016, which ultimately lead to increased
contributions. The City is required to contribute $2.8M or 47.23% of covered payroll
for the fiscal year beginning October 1, 2017. The current active DROP payroll is at
29.58% and he also reviewed the State money base amounts. Any State money
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over the base amount will be split 50/50 between the City and the members. This
Plan had a net actuarial gain this year of $420,988 due to investment returns above
the assumed rate of return and salary increases being lower than expected. Mr.
Strong reviewed the Plan’s funded ratio which is currently at 73.4% (71.8% without
including the DROP assets). He also commented that the City made an additional
contribution during the fiscal year which went to the Plan’s unfunded liability. As of
September 30, 2016 there were 86 active members in the Plan and 68 retirees. Mr.
Strong reviewed the Plan’s current unfunded liability which is around $23M with 15
years left to pay it off. Lastly he discussed the cumulative gains and losses over the
years which determines if a COLA benefit would ever be payable. Once the
accumulative loss of $7.7M is recognized, then a COLA benefit would be payable but
it would take a lot of gains and years to offset the total loss.
MOTION: Mr. Glass made a motion to approve the September 30,
Actuarial Valuation Report as presented.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 4-0.
Ms. Strong stated that the City contributes their portion in one lump sum payment at
the beginning of each fiscal year to avoid paying interest and it betters the Plan by
paying down the unfunded liability.
MOTION: Mr. Mull made a motion to set the Plan’s assumed rate of return
at 6.8% for this year, next year, and the long term thereafter
per the recommendation of the Plan’s investment consultant.
SECOND: Mr. Glass seconded the motion.
CARRIED: The motion carried unanimously 4-0.
STATE MONEY DISCUSSION
The Trustees invited the Union Reps to attend today’s meeting to discuss setting up
and funding the Share accounts that were recently put into place. Ms. Jensen
reviewed the historical makeup of the Chapter 185 money and the current
supplemental benefit that is in place of $12.50 per year of service. Up until this year
the additional Chapter 185 money was set towards this benefit and ultimately this
benefit would increase. In 2013 and 2014 the City and the Union agreed to give the
City the State money to help pay for the offset in increasing employer contributions.
Now during this current CBA, the Union and the City did not reach an agreement in
regards to the State money so the default provision will be put into place with the
City to receive 50% of the State money, and then the members will get the other
50% of the State money. At this point an agreement has to be reached between the
members on how this Share accounts money will be used; to create individual share
accounts or continue to fund the supplemental benefit that is already in place. The
Board and the Union reps had a very lengthy conversation on the State money, the
Share accounts, who would be affected and who would not be. Ultimately it is up to
the membership to vote on this now because for this current CBA the default option
is already in place until they mutually agree to something different in a future CBA.
Ms. Jensen recommended that the pension board give authorization to the Union
reps to use GRS for any studies that they may need to in regards to this situation
and to also work with her firm as well. It was also noted that the Board would pay
for any GRS studies that are requested. Ms. Jensen reminded the Trustees that this
is an urgent and we need to get a move on this situation very quickly.
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BENEFIT APPROVALS
MOTION: Mr. Mull made a motion to accept the application for
distribution from DROP account for Ralph Kranchick.
SECOND: Mr. Glass seconded the motion.
CARRIED: The motion carried unanimously 4-0.
OTHER BUSINESS
N/A
PUBLIC COMMENTS
N/A
AJOURN
There being no further business, the Trustees officially adjourned the meeting at
12:16PM. The next meeting is scheduled for Wednesday May 31, 2017 at 9AM.
Respectfully submitted,
_____________________________
Brad Seidensticker, Secretary
Account Description2015/2016 Fiscal Year Actual Expenses% Total Budget2017/2018 Fiscal Year Budget% Total BudgetCurrently Paid to date (FY 16/17)Budget AssumptionsPlan Expense:Service Providers:Actuary44,256.0028.5%57,532.8026.3%10,342.00 Category Increase by 30%Administrator31,088.6420.0%38,860.8017.8%18,122.63 Category Increase by 25%Auditor/ Accounting15,150.009.8%18,937.508.7%8,000.00 Category Increase by 25%Attorney/ Legal16,331.8510.5%20,414.819.3%3,447.50 Category Increase by 25%Investment Consultant22,360.4014.4%27,950.5012.8%10,749.90 Category Increase by 25%Subtotal:129,186.89 83.2%163,696.41 75.0%Other Plan Expenses:Dues and Subscriptions690.000.4%1,862.500.9%690.00 Category Increase by 25% + $1,000Insurance6,688.424.3%8,360.533.8%6,764.12 Category Increase by 25%Miscellaneous Expenses2,479.861.6%20,000.009.2%3,721.41 Transfer Category Minimum $20,000Travel & Education16,288.4510.5%24,432.6811.2%3,470.19 Category Increase by 50%Subtotal:26,146.73 16.8%54,655.70 25.0%TOTAL:155,333.62100.0%218,352.11100.0%*This report does not include Investment Manager or Custodian expenses*Palm Beach Gardens Police Officers' Pension FundFiscal Year 2017-2018 BudgetFiscal Year 2015-2016 Actual Report
City of Palm Beach Gardens
Police Officers’ Pension Fund
Summary Plan Description
OCTOBER 2014
MARCH 2017
Introduction
As a participant in the Palm Beach Gardens Police Officers’ Pension Fund, you are
included in a program of benefits to help you meet your financial needs in retirement, or
in the event of disability or death. The purpose of this booklet is to give you a brief
description of benef its available to you under your pension plan.
Planning for retirement begins now. This booklet can be a valuable tool in preparing
for your retirement and financial future. If you need any further information on any of the
topics presented in this booklet, please contact the Fund Administrator, Resource Centers,
LLC, or the Board of Trustees. They will answer any questions to help you better
understand your benefits.
The information presented is a summary of the pension plan as provided in the City
of Palm Beach Gardens Code of Ordinances which governs your Pension Fund. The legal
citation for your Plan is Chapter 50, Article III, Section 50-61 et seq., as amended through
July 10, 2014 City of Palm Beach Gardens Code. Any discrepancies between information
in this booklet and the Plan will be governed by the Plan. A copy of the Plan can be
obtained f rom the Fund Adm inistrator, Resource Centers, LLC. T heir address is:
Resource Centers, LLC
4360 Northlake Boulev ard, Suite 206
Palm Beach Gardens, FL 33410
(561) 624-3277 - T elephone
(561) 624-3278 - Facsim ile
www.resourcecenters.com
Board of Trustees
Palm Beach Gardens Police Officers’ Pension Fund
Jay Spencer, Chairman
David Pierson, Secretary
Gregory Mull, Trustee
Brad Seidensticker, Trustee Secretary
Marc Glass, Trustee
TABLE OF CONTENTS
DEFINITIONS..........................................................Page 1
PARTICIPATION IN THE PENSION FUND...................................Page 2
ELIGIBILITY FOR NORMAL RETIREMENT...................................Page 2
AMOUNT OF A NORMAL RETIREMENT PENSION............................Page 2
EARLY RETIREMENT PENSION...........................................Page 4
MONTHLY SUPPLEMENTAL BENEFITS.....................................Page 4
FORMS OF PAYMENT OF A PENSION......................................Page 4
Normal Form.....................................................Page 4
Optional Forms of Payment..........................................Page 5
SURVIVOR BENEFITS - DEATH BEFORE RETIREMENT.......................Page 6
Duty Related Deaths...............................................Page 6
Non-Duty Related Deaths...........................................Page 6
DISABILITY RETIREMENT................................................Page 7
Duty Disability Retirement...........................................Page 7
Non-Duty Disability Retirement.......................................Page 8
ENDING EMPLOYMENT BEFORE RETIREMENT..............................Page 8
ANNUAL PENSION ADJUSTMENTS (non-guaranteed)..........................Page 9
FILING FOR RETIREMENT..............................................Page 10
DEFERRED RETIREMENT OPTION PLAN (DROP)...........................Page 10
TRUSTEE TO TRUSTEE TRANSFER ......................................Page 11
COST OF THE PENSION FUND..........................................Page 11
ADMINISTRATION OF THE PENSION FUND................................Page 11
INVESTMENTS.......................................................Page 11
ACTUARIAL SOUNDNESS..............................................Page 12
FORFEITURE OF PENSION.............................................Page 12
REVIEW PROCEDURE.................................................Page 13
AGENT FOR SERVICE OF LEGAL PROCESS ..............................Page 13
PLAN YEAR..........................................................Page 14
RELEVANT PROVISIONS OF COLLECTIVE BARGAINING AGREEMENT.........Page 14
DEFINITIONS
Accumulated contributions - the total of all amounts contributed by a participant
to the Palm Beach Gardens Of ficer’s Police Pension Fund.
Average Monthly Earnings - the monthly average of salary during the last five
years of employment.
Beneficiary - an individual who is receiving a survivor benefit from the Pension
Fund following the death of a participant.
Board - the Board of Trustees which administers, manages and operates the
Pension Fund.
Credited service - A participant's years of service as a police officer in Palm Beach
Gardens Police Department and includes those years which a participant has
purchased by making a contribution to the plan. Years of service can be purchased
for years or fractional parts of years that a police officer served in the United States
Military service, or service with another municipal, county, state, or federal law
enforcement agency. Participants may also be entitled to credited service for
military service which interrupts em ployment.
Participant - a Palm Beach Gardens police officer participating in the Pension
Fund.
Salary - Average monthly earnings as reported to Internal Revenue Service for
income tax purposes, plus deferred compensation. Additionally, salary includes
amounts paid by the City as differential wages while the participant is absent from
employment while in qualified military service.
Effective September 13, 2012, salary means base pay, excluding all other
compensation. The salary of any participant employed on September 13, 2012,
shall include payment for unused accrued sick and annual leave up to the dollar
amount of unused sick and annual leave that the participant has accrued as of
September 13, 2012. The salary at retirement of any participant who is employed
on September 13, 2012, shall not be less than the participant’s salary on September
12, 2012, as determined in accordance with the definition of salary in effect on
September 12, 2012.
Palm Beach Gardens March 2017 October 2014
Police Officers’ Pension Fund Page 1
PARTICIPATION IN THE PENSION FUND
Each police officer employed in the City of Palm Beach Gardens Police Department
is a Pension Fund participant. A police officer is a full-time employee who is
certified as a law enforcement officer as a condition of employment in accordance
with the provisions of §943.10, Florida Statutes. The Police Chief may elect not to
participate in the Plan.
ELIGIBILITY FOR NORMAL RETIREMENT
A police officer who either has 20 or more years of credited service or is age 52 or
older and has 10 or more years of credited service is eligible for normal retirement.
An application for normal retirement must be filed with the Fund Administrator and
approved by the Board of Trustees. Effective September 13, 2012, for police
officers with less than 10 years of creditable service and police officers hired on or
after that date, the normal retirement date shall be age 59 with 10 or more years of
credited service. Effective July 1, 2016, f or police of ficers with less than 10 years
of creditable service as of September 13, 2012 and police officers hired on or after
that date, the normal retirement date shall be age 55 with at least 10 years of
creditable service, or 25 years of creditable service regardless of age.
AMOUNT OF A NORMAL RETIREMENT PENSION
The amount of a normal retirement pension is based on a participant's credited
service, average monthly earnings and pension m ultiplier.
Average Monthly Earnings is the monthly average of salary during the last five years
of employment producing the highest average. Salary includes base salary,
overtime, longevity pay and may include other types of pay.
Credited service is generally a participant's period of employment as a police
officer in the Police Department of the City of Palm Beach Gardens, measured in
years and completed months of a year. Special conditions apply if a participant
has a break in service as a police officer. In certain circumstances, limited
periods of military service and police service with another Florida municipality
may be recogn ized as credited service. Promptly contact the Fund Administrator
if any of these situations apply and you have not already resolved the question.
The pension multiplier is 3.5% for all years of credited service up to September
13, 2012 plus 2.75% f or all years of credited service after that date. T he benef it
Palm Beach Gardens March 2017 October 2014
Police Officers’ Pension Fund Page 2
shall be limited to a maximum of 75% of the average monthly earnings.
Participants who are eligible for normal retirement age on September 13, 2012
will be entitled to a 3.5% m ultiplier and will not be subject to the 75% cap.
Sample Benefit Calculation
The following example illustrates how average monthly earnings are
calculated. This is an example for planning purposes only and does not
indicate the actual benef it for any participant.
Year Before Sample Salary
Retirement for Year
5th 25,000
4th 26,000
3rd 27,000
2nd 28,000
1st 29,000
To calculate f inal average salary, total the last f ive years salary and divide by 60:
$25,000 + $26,000 + $27,000 + $28,000 + $29 ,000 = $2,250
60
The monthly normal retirement pension is calculated as f ollows:
3.50% of average monthly earnings per year of credited service up to
September 13, 2012 and 2.75% of average monthly earnings per year of
credited service after September 13, 2012 up to a m aximum of 75%.
The following is an illustration of a normal retirement pension calculation. This is
an example for planning purposes only and does not indicate the actual benefit
for any participant.
(1) Total credited service up to Septem ber 13, 2012 19.0 yrs.
(2)Total credited service after September 13, 2012 1.0 yr.
(3) Average monthly earnings $2,250
(4)3.50% of line (1).035 x 19 66.5%
(5)2.75% of line (2).0275 x 1 2.75%
(6)Line (4) plus line (5)66.5% + 2.75% 69.25%
(7)Line (6) times line (3)69.25% x 2,250 $1,558.13
Palm Beach Gardens March 2017 October 2014
Police Officers’ Pension Fund Page 3
EARLY RETIREMENT PENSION
A police officer who is age 50 and has 10 years of service is eligible for early
retirement. The early retirement benefits that are payable to a police officer are
determined in the sam e manner as the norm al retirement benef it but are reduced
by 3% for each year by which the participant’s age at retirement preceded the
participant’s normal retirement age to take into account the police officer’s
younger age and the earlier com mencement of retirement incom e payments.
MONTHLY SUPPLEMENTAL BENEFITS
Beginning October 1, 2004, all retirees in payment status are entitled to a
monthly supplemental pension benefit equal to $12.50 per year of service. This
benefit is payable monthly for the life of the retiree. This benefit is payable to a
surviving beneficiary of a retiree on a monthly basis for the period of time that the
surviving benef iciary is in receipt of a pension in accordance with the form of
benefit chosen at the tim e that benef its begin.
FORMS OF PAYMENT OF A PENSION
Normal Form
The standard form of payment for the pension described above is a benefit
payable for 10 years certain, in other words, you are guaranteed 120 monthly
payments. The retiree will receive a benef it for life. However, if the retiree dies
prior to receiving 120 payments, then pension payments will continue until a total
of 120 payments have been m ade.
A participant may designate a beneficiary to receive the benefit payable, if any,
upon the death of the retired participant. A retired participant may also change
the designated joint pensioner or survivor up to two times after retirement with
certain restrictions. Please see the administrator for details. This change may
affect the amount of the benef it.
W hen there is no beneficiary named, the benefit will be paid to the spouse,
dependen t children, or dependent living parents of the police officer, or if there is
no such survivor, then to the deceased police of ficer’s estate.
IT IS IMPORTANT TO KEEP YOUR BENEFICIARY
DESIGNATION UP TO DATE
Palm Beach Gardens March 2017 October 2014
Police Officers’ Pension Fund Page 4
Optional Forms of Payment
Optional forms of payment are available in lieu of the normal form described
above. The amount of pension under each optional form has the same actuarial
value as the normal form of payment. The normal form of payment is a lifetime
benefit payable to the retiree, with 120 payments guaranteed (in the event that
the retiree dies after receiving only 100 payments, the remaining 20 payments
will be paid to the nam ed beneficiary or to the estate of the retiree).
C Option I - Joint and 100% Survivor - The joint and 100% survivor form
of payment pays the retired participant a reduced monthly pension for life.
Upon the retired participant's death, the beneficiary (a spouse or relative)
designated when the form of payment was elected will be paid 100% of
the reduced m onthly pension f or life.
C·Option II - Joint and 75% Survivor - The joint and 75% survivor form of
payment pays the retired participant a reduced monthly pension while the
retired participant is alive. The reduction is not as great as under Option I.
Upon the retired participant's death, the beneficiary (a spouse or relative)
will be paid 75% of the reduced m onthly pension for life.
C Option III - Joint and 66-2/3% Survivor - The joint and 66-2/3% survivor
form of payment pays the retired participant a reduced monthly pension
while the retired participant is alive. The reduction is not as great as
under Option II. Upon the retired participant's death the beneficiary (a
spouse or relative) will be paid 66-2/3% of the reduced monthly pension
for life.
C Option IV - Joint and 50% Survivor - The joint and 50% survivor form of
payment pays the retired participant a reduced monthly pension while the
retired participant is alive. The reduction is not as great as under Option
III. Upon the retired participant's death, the beneficiary (a spouse or
relative) will be paid 50% of the reduced m onthly pension f or life.
•Option V - Life Annuity - The straight life form of payment pays the
retired participant an increased monthly pension for life. The amount of
this benefit is more than the normal form and other optional forms. No
monthly pension is ever paid a spouse, child, dependent parent or other
beneficiary under this f orm of payment.
Palm Beach Gardens March 2017 October 2014
Police Officers’ Pension Fund Page 5
C Option VI - Other - In lieu of the other optional forms, benefits may be
paid in any form approved by the Board so long as it is the actuarial
equivalent of the benef its otherwise payable.
The Fund Administrator can give you an estimate of the amount of your pension
under any of the optional forms of payment. A request for an optional form of
payment must be submitted in writing to the Board before the effective date of
retirement. An optional form of payment cannot be changed after the first
pension check is cashed. The election of Options I, II, III and IV shall be null and
void if the designated beneficiary dies before the participant’s payments
commence.
SURVIVOR BENEFITS - DEATH BEFORE RETIREMENT
Duty Related Deaths
The surviving spouse, or in certain circumstances surviving children, of a
participant who dies while employed in the Police Department as a police officer
will be paid a duty death pension if the Board finds the death to be the result of
causes arising out of and in the course of the participant's performance of duty
as a police of ficer.
A surviving spouse is paid a monthly pension, for life, of 50% of the participant's
average monthly earnings.
An unmarried child under the age of 18, or age 24 if a full time student, is paid a
monthly pension in the amount of an equal share of 50% of the participant's
average monthly earnings if a surviving spouse is not being paid a pension.
Payment terminates upon the earlier of adoption, marriage, attainment of age 18
(age 24, if a full time student, or loss of full time student status) or death.
The death benef it is paid to the estate if the participant leaves neither a surviving
spouse nor an eligible surviving child. In any of these cases, the board may, in
its sole discretion, direct that the actuarial value of the monthly payment be paid
as a lump sum.
Non-Duty Related Deaths
If a participant who has 5 or more years of credited service dies while employed
in the Police Department as a police officer and the death is not in the line of
duty, the beneficiary is paid a pension equal to the benefits otherwise payable at
early or normal retirement age.
Palm Beach Gardens March 2017 October 2014
Police Officers’ Pension Fund Page 6
If no pension is paid or will become payable on account of the death of a
participant, the participant's accumulated contributions are paid to the parti-
cipant's designated benef iciary or to the participant's estate if there is no
designated benef iciary.
DISABILITY RETIREMENT
A pension may be payable to a participant who becomes disabled while
employed in the police department as a police officer. Eligibility and the amount
of the pension are dependent on whether or not the disability occurred in the line
of duty.
The disability must arise from a mental or physical illness, disease or injury which
totally and permanently prevents the participant from performing useful and
efficient service as a police officer in the Palm Beach Gardens Police
Department. No police officer shall be permitted to retire under a disability
retirement until examined by a duly qualified physician or surgeon to be selected
by the Board of Trustees and the physician or surgeon finds the participant to be
disabled from performing the functions of a police officer. The final
determination of disability is made by the Board.
If disability results from excessive and habitual use of drugs, intoxicants or
narcotics, willful and illegal participation in fights, riots or civil insurrection, or
while committing a crime, or injury or disease sustained while serving in an
armed force, no disability pension can be awarded. This exclusion does not
affect participants who have become disabled as a result of intervening military
service under the federal Heroes Earnings Assistance and Relief Tax Act of
2008 (H.R. 6081; P.L. 100-245).
A participant who is retired for disability may be required to undergo periodic
medical examination under the direction of the Board of Trustees to determine if
the retired participant is capable of performing the duties of a police officer in the
Department.
Duty Disability Retirement
If the Board finds the disability to have arisen out of and in the course of the
participant's performance of duty as a Palm Beach Gardens police officer, the
amount of pension is equal to 60% of the participant’s rate of pay at the time of
disability or the accrued pension benefit, whichever is greater provided the
disability has continued f or a period of six months.
Palm Beach Gardens March 2017 October 2014
Police Officers’ Pension Fund Page 7
Non-Duty Disability Retirement
There is a 10 year credited service requirement for disability retirement if the
disability is not the result of performing duty as a Palm Beach Gardens police
officer. Additionally, there is no non-line of duty disability for a participant who
has reached or passed norm al retirement eligibility.
The amount of pension is calculated the same as a normal retirement pension
based on average monthly earnings and credited service at the time of disability.
The minimum pension is 25% of average monthly earnings or the accrued
pension benef it, whichever is greater.
There is no non-duty disability pension if a police officer's credited service is less
than 10 years. In that event, accumulated contributions are ref unded.
ENDING EMPLOYMENT BEFORE RETIREMENT
If a participant with less than 10 years of credited service quits or is fired from
employment as a Palm Beach Gardens police officer, the participant shall be
entitled to a retirem ent benef it subject to the vested percentages below:
Years of credited
Service Vested %
Under 5 0%
5 25
6 40
7 55
8 70
9 85
10 or more 100
A participant may elect to receive the return of all contributions in lieu of all other
benefits under the plan.
If a participant has at least 10 years of credited service when employment as a
police officer terminates, the right to a deferred normal retirement is retained so
long as accumulated contributions are lef t on deposit in the Pension Fund.
The amount of deferred normal retirement pension is calculated using average
monthly earnings and credited service at the time of termination of employment
as a police officer. Normal retirement and payment of a pension is available
upon application on or after age 52. The amount of pension may be subject to
Palm Beach Gardens March 2017 October 2014
Police Officers’ Pension Fund Page 8
early retirement reduction in accordance w ith the chart on pag e 4.
Credited service will be reinstated if re-employment as a Palm Beach Gardens
police officer occurs and any withdrawn accumulated contributions are repaid
within 5 years of re-employment. The repayment must include interest from the
date of withdrawal to the date of repayment. The election to purchase such time
must be made within six months of date of hire. Additionally, service time with
the military, another federal, state, county or municipal police departm ent may be
purchased.
ANNUAL PENSION ADJUSTMENTS (non-guaranteed)
Retired participants (including DROP participants) and beneficiaries who have
been in receipt of a pension benefit for at least one year on the distribution date
may receive an adjustment to their pension benefit amount as of July 1st of each
year if the pension fund assets have earned more than 8.5% as of September
30th and the pension f und has positive actuarial experience.
The potential total distribution is based upon an actuarial formula which is
contained in the pension plan document. Essentially, the retirees and
beneficiaries share in the positive investment experience of the retiree portion of
the pension f und over 8.5%.
All pension recipients monthly pension benefits will be increased on a
percentage basis and the percentage will be the same for all pension recipients.
The percentage increase will be determined by the actuary and will equal the
earnings above 8.5% on the assets reserved to pay pension recipients. The
distribution is limited to a 4% increase in any one year. A retiree must be in
receipt of a pension for at least one year on July 1 to be entitled to an
adjustment.
Conversely, if the Fund does not earn more than 8.5%, there will be no pension
adjustment.
For police officers who are employed and have not reached the normal
retirement date prior to September 13, 2012, there shall be no cost of living
adjustment applied to benefits earned based on creditable service on and after
that date; and for police officers hired on or after September 13, 2012, there
shall be no cost of living adjustment.
Palm Beach Gardens March 2017 October 2014
Police Officers’ Pension Fund Page 9
FILING FOR RETIREMENT
In order to ensure that you receive your pension on time, you should file your
application with the Fund Administrator at least 30 days before retirement. All
forms can be obtained from the Fund Administrator at the address on the
Introduction page. Penalties will be imposed for making a false or misleading
statement to obtain a pension benefit. It can take up to 60 days after your date
of retirement to receive your first pension check.
DEFERRED RETIREMENT OPTION PLAN (DROP)
A participant may elect DROP participation prior to completing 25 years of
credited service if the participant is eligible for normal retirement. Effective July 1,
2016, a participant who is eligible to enter into the DROP may delay entry into
the DROP until the time the participant has accrued the maximum benefit
percentage of 75%. However, the participant must elect to participate within 30
days of attaining the 75% maximum benefit.
DROP participation ends at the f irst to occur of:
1) termination of employment,
2)30 years of credited service, or
3)5 years of participation.
However, effective July 1, 2016, a participant who delays the election to
participate in the DROP until attaining the 75% maximum benef it may participate
for the full 5 years even if that time takes participation beyond 30 years of
credited service.
Upon the effective date of DROP participation a participant's pension amount is
calculated based on credited service and final average salary at that time and
the amount remains permanently frozen. The participant's DROP account is
credited with monthly amounts equal to the frozen pension during the period of
DROP participation. DROP accounts are credited with investment earnings
during the DROP period. Participants may choose between the rate of return on
the pension fund or a fixed rate of 6.5% as the investment earnings credit. No
investment earnings or monthly credits are made after the end of the DROP
period, if the participant rem ains employed.
Participant DROP accounts are subject to adm inistrative charges.
A participant may elect payment of the DROP account at any time following
termination of employment but not later than age 70 ½. Payment is available
under several options. Detailed inf ormation is available from the administrator.
Palm Beach Gardens March 2017 October 2014
Police Officers’ Pension Fund Page 10
TRUSTEE TO TRUSTEE TRANSFER
To minimize the tax consequences of rolling DROP accounts over to an IRA or
another qualified plan, direct trustee-to-trustee transfers are available. Please
see the administrator for the appropriate f orms.
COST OF THE PENSION FUND
Participants are required to contribute 8.60% of covered salary. Contributions
are deducted from each paycheck and credited to the participant's Pension Fund
account.
The City of Palm Beach Gardens also contributes to the Pension Fund. The
amount of City contribution is mathematically determined in accordance with
State statutes to f inance Pension Fund benef its as they are earned.
ADMINISTRATION OF THE PENSION FUND
The Pension Fund is administered by a Board of Trustees which is responsible
for overseeing the investment of Pension Fund assets and application of the
provisions of the Pension Plan document contained in the Palm Beach Gardens
Code. The Board has authority over distribution of all pensions and makes final
decisions on claims and appeals. Five trustees comprise the Board: two legal
residents of the City appointed by the City Commission, two full-time police
officers elected by Pension Fund participants and a trustee chosen by the
majority of the other f our trustees.
Pension Fund assets are maintained and invested entirely separate from City
assets and cannot be used for any purpose other than those specified in the
Plan.
INVESTMENTS
The assets of the Plan are presently invested by ICC Capital Management Inc.,
Rhumbline, American Realty, International Bond Mutual Funds, and International
Equity Mutual Funds under investment guidelines adopted by the Board of
Trustees in consultation with their investment advisors.
Palm Beach Gardens March 2017 October 2014
Police Officers’ Pension Fund Page 11
ACTUARIAL SOUNDNESS
The actuary for the Plan has determined that the Plan is actuarially sound and
can adequately fund the benefits based upon projected contributions to the Plan
and investment earnings.
FORFEITURE OF PENSION
Any Participant who is convicted of any of the below offenses committed prior to
retirement or whose office or employment is terminated by reason of his or her
admitted commission of the below offenses shall forfeit all rights and benefits
under this Fund, except for a refund of accumulated contributions. The specified
offenses are:
(1)Committing, aiding or abetting of an embezzlement of public funds;
(2) Committing, aiding or abetting of any theft by a public officer or employee
from employer;
(3) Bribery in connection with the employment of a public officer or employee;
(4) Any felony specified in Chapter 838, Florida Statutes;
(5) The committing of impeachable of fense
(6) The committing of any felony by a public officer or employee who, willfully
and with intent to defraud the public or the public agency for which the
public officer or employee acts or in which he or she is employed of the
right to receive the faithful performance of his or her duty as a public
officer or employee, realizes or obtains, or attempts to realize or obtain, a
profit, gain, or advantage for himself or herself or for some other person
through the use or attempted use of the power, rights, privileges, duties,
or position of his or her public of fice or employment position.
(7)The committing on or after October 1, 2008, of any felony defined in
§800.04, Florida Statutes, against a victim younger than 16 years of age,
or any felony defined in Chapter 794, Florida Statutes against a victim
younger than 18 years of age, by a public officer or employee through the
use or attempted use of power, rights, privileges, duties, or position of his
or her public of fice or employment position.
Any Participant who has received benef its from the Plan in excess of his
Palm Beach Gardens March 2017 October 2014
Police Officers’ Pension Fund Page 12
accumulated contributions shall be required to repay the Fund. The Board may
implement legal action necessary to recover such funds.
Additionally, a Participant who makes a false or misleading statement to obtain
retirement benefits shall commit a misdemeanor of the first degree and if
convicted, the Participant shall f orfeit his/her benef it.
REVIEW PROCEDURE
Any participant, former participant, or beneficiary who has been denied a benef it
by a decision of the Board shall be entitled to request in writing that the Board
give further consideration to the claim. This request, together with a written
statement of the reasons why the applicant believes his claim should be allowed,
shall be filed with the Board no later than 20 days after receipt of the written
notification of the denial. If no appeal is filed within this time period, the
proposed order shall be f inal.
The Board shall then conduct a hearing within 45 days of the receipt of the
appeal. W ritten notice of the hearing will be sent by certified mail to the
applicant 10 days prior to the hearing. The applicant may be represented at the
hearing by an attorney or other representative of his/her choosing. During the
hearing the applicant shall have the opportunity to submit written and oral
evidence and arguments in support of his/her claim. The applicant shall also
have the opportunity to review the Board’s file at or prior to the hearing. Either
the applicant of the Board may request that a court reporter record the
proceedings. In this event a complete written transcript of the proceedings shall
be furnished to both parties at the expense of the party requesting the
attendance of the court reporter.
W ithin 20 days after rendering its order, the Board will send by a method
providing proof of delivery, a copy of the order to the applicant.
AGENT FOR SERVICE OF LEGAL PROCESS
Board of Trustees
j Resource Centers, LLC
4360 Northlake Boulev ard
Suite 206
Palm Beach Gardens, Florida 33410
Palm Beach Gardens March 2017 October 2014
Police Officers’ Pension Fund Page 13
PLAN YEAR
The plan year is the twelve month period beginning each October 1. Records are
kept on a f iscal year basis.
RELEVANT PROVISIONS OF COLLECTIVE BARGAINING AGREEMENT
Certain employees covered by the Plan are participants of the Palm Beach
County Police Benevolent Association Bargaining Unit. The current Collective
Bargaining Agreement between the City and the Union expires on September
30, 2013 2019 Appendi x A to the Collective Bargaining Agreement addresses
Retirement.
Palm Beach Gardens March 2017 October 2014
Police Officers’ Pension Fund Page 14
Palm Beach Gardens March 2017 October 2014
Police Officers’ Pension Fund Page 15
Palm Beach Gardens March 2017 October 2014
Police Officers’ Pension Fund
PALM BEACH GARDENS POLICE
PENSION FUND
Benefit Approvals
Meeting of May 31, 2017
APPLICATION FOR DISTRIBUTION OF DROP ACCOUNTS
(3/15/17)
ERNEST CARR DATE OF RETIREMENT 04/30/2015
DATE OF BIRTH 02/26/1941
TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH
TOTAL GROSS DISTRIBUTION $42,000.00
TAX WITHHOLDING (20%) $8,400.00
TOTAL NET DISTRIBUTION $33,600.00
CURRENT DROP ACCOUNT BALANCE $410,510.11
_________________________
APPLICATION FOR DISTRIBUTION OF DROP ACCOUNTS
(4/15/17)
JOSEPH SHEEHAN DATE OF RETIREMENT 01/29/2016
DATE OF BIRTH 03/28/1961
TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH
TOTAL GROSS DISTRIBUTION $10,000.00
TAX WITHHOLDING (20%) $2,000.00
TOTAL NET DISTRIBUTION $8,000.00
CURRENT DROP ACCOUNT BALANCE $439,080.15
_________________________
JULES BARONE DATE OF RETIREMENT 02/15/2013
DATE OF BIRTH 05/28/1943
TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH
TOTAL GROSS DISTRIBUTION $12,000.00
TAX WITHHOLDING (20%) $2,400.00
TOTAL NET DISTRIBUTION $9,600.00
CURRENT DROP ACCOUNT BALANCE $231,225.35
_________________________
RALPH KRANCHICK DATE OF RETIREMENT 01/04/2017
DATE OF BIRTH 06/21/1956
TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH
TOTAL GROSS DISTRIBUTION $50,000.00
TAX WITHHOLDING (20%) $10,000.00
TOTAL NET DISTRIBUTION $40,000.00
CURRENT DROP ACCOUNT BALANCE $294,961.78
_________________________
TIMOTHY ROMAN DATE OF RETIREMENT 02/28/2017
DATE OF BIRTH 04/19/1970
TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH
TOTAL GROSS DISTRIBUTION $42,000.00
TAX WITHHOLDING (20%) $8,400.00
TOTAL NET DISTRIBUTION $33,600.00
CURRENT DROP ACCOUNT BALANCE $53,093.35
_________________________
APPLICATIONS FOR DISTRIBUTION OF DROP ACCOUNTS
(5/15/17)
JEFF MAIN DATE OF RETIREMENT 12/29/2016
DATE OF BIRTH 04/28/1960
TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH
TOTAL GROSS DISTRIBUTION $18,750.00
TAX WITHHOLDING (20%) $3,750.00
TOTAL NET DISTRIBUTION $15,000.00
CURRENT DROP ACCOUNT BALANCE $120,266.85
_________________________
APPLICATION FOR REFUND OF CONTRIBUTIONS
ABIGAIL CARBUCCIA DATE OF BIRTH 02/24/1989
DATE OF HIRE 09/08/2014
DATE OF TERMINATION 09/01/2016
YEARS OF SERVICE 1 YEAR, 11 MTHS & 24 DAYS
TOTAL REFUND $8,637.21
TAX WITHHOLDING (0%) $0.00 (ROLLOVER)
TOTAL NET REFUND $8,637.21
_________________________
__________________________________, CHAIRMAN
APPROVED _________________________________, SECRETARY
_____5/31/17______________________, DATE
Pension Resource Centers
Accounts Payable Check Register
FOR: PALM BEACH GARDENS POLICE
Meeting
Board Meeting May 31, 2017
Check Number Date Payee and Description Amount
2839 April 1, 2017 City of Palm Beach Gardens $32,847.81
2840 March 27, 2017 Palm Beach Gardens Fire $5,485.11
Corrected Deposit that went into wrong account
2841 April 6, 2017 Pension Resource Center $2,575.00
Administrative Fee - April 2017
2842 April 10, 2017 Cherry Bekaert LLP $8,000.00
Auditor Fee - 2/27/17
2843 April 10, 2017 Klausner, Kaufman, Jensen & Levinson $45.00
Legal Services Rendered through 2-28-17
2844 April 10, 2017 Klausner, Kaufman, Jensen & Levinson $95.00
Legal Services Rendered through 10/2017
2845 May 1, 2017 City of Palm Beach Gardens $32,847.81
2846 April 27, 2017 Omni Orlando Resort at ChampionsGate $570.00
FPPTA Conference Greg Mull 2017
2847 April 27, 2017 Omni Orlando Resort at ChampionsGate $570.00
FPPTA Conference Marc Glass 2017
2848 April 27, 2017 FPPTA $650.00
Greg Mull 2017
2849 April 27, 2017 FPPTA $650.00
Marc Glass 2017
2850 May 2, 2017 Pension Resource Center $2,665.82
Administrative Fee - May 2017
2851 May 8, 2017 Gabriel Roeder Smith & Company $7,176.00
Actuarial Services Rendered through 3/31/17
2852 May 8, 2017 Klausner, Kaufman, Jensen & Levinson $2,128.00
Legal Services Rendered through 3-31-17
2853 May 8, 2017 Highland Capital Management, LLC $28,675.28
Management Fee - 1st Quarter 2017
2854 May 8, 2017 Rhumbline Advisers $6,344.00
Investment Advisory Fee - 1st Quarter 2017
2855 May 8, 2017 Rhumbline Advisers $1,250.00
Investment Advisory Fee - 1st Quarter 2017
2856 May 8, 2017 AndCo Consulting $5,374.95
Investment Consulting Fee 3/31/17
2857 May 8, 2017 Cherry Bekaert LLP $6,600.00
Second Progress billing on audit 4/14/17
Total:$144,549.78
Paid by Custodian
January 10, 2017 Salem Trust $5,503.67
April 10, 2017 Salem Trust $5,641.69
Total $155,695.14
Chair___________________________
Secretary___________________________
Date_______________________________
DEERFIELD BEACH TAMPA
1715 N WESTSHORE BOULEVARD, SUITE 750 • TAMPA, FL 33607 • TEL (877) 382-5268 • FAX (813) 301-1295
www.salemtrust.com
SALEM TRUST COMPANY IS A SUBSIDIARY OF U.S. FIDUCIARY SERVICES, INC., AN EMPLOYEE-OWNED COMPANY.
Our Definition of Reliability:
The vision of Salem Trust Company is “To be the custodian demanded by public sector retirement
plans and institutional clients.” To track, analyze, and ultimately improve the reliability of our service to
you, we developed the Salem Trust “Service Report Summary” to track 5 primary components of a
comprehensive quarterly performance scorecard containing 17 discrete tasks, also available by request. Each
month, based on data used by our independent auditors and government regulators, the report objectively
compares how we have performed in relation to our performance goals for essential services. Our objective is
to deliver better service to you by analyzing how the average performance can be improved. Over time, with
your help, we will launch other measurements of service performance.
Salem Trust Service Report Summary
For the period ending March 31, 2017
Published Date: May 3, 2017
OUR COMMITMENT TO Reliability
Directions to Everywhere, Key West, FL
Salem Trust Service Report Summary page 2 Published: May 3, 2017
92% 93% 94% 95% 96% 97% 98% 99% 100%
Apr'16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Statement Production
Actual Monthly
Performance
Statement Production
Category Goal
92% 93% 94% 95% 96% 97% 98% 99% 100%
Apr'16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Trade Settlements Actual
Monthly Performance
Trade Settlements Category
Goal
92% 93% 94% 95% 96% 97% 98% 99% 100%
Apr'16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Income Processing
Actual Monthly
Performance
Income Processing
Category Goal
Client Statement Production:
Tracks when statements are released to our clients.
Trade Settlements:
Measures how many securities are posted by their settlement dates.
Income Processing:
Measures all types of income, including interest, dividends, capital gains and pay downs.
Salem Trust Service Report Summary page 3 Published: May 3, 2017
92% 93% 94% 95% 96% 97% 98% 99% 100%
Apr'16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Cash Processing
Actual Monthly
Performance
Cash Processing
Average Category
Goal
92% 93% 94% 95% 96% 97% 98% 99% 100%
Apr'16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Corporate Actions Actual
Monthly Performance
Corporate Actions Category
Goal
Cash Processing:
Tracks when wires, ACHs and checks are produced or transmitted.
Corporate Actions:
Measures the completion of stock splits, company reorganizations and stock calls.
Client Service Totals as of March 31, 2017:
Client relationships
• Client assets under administration: $7.4 billion
• Client relationships: 220
Client service ratio
• Full-time Salem Trust client services employees: 7
• Average number of client relationships per Salem Trust relationship manager: 55
Benefit payments
• Monthly recurring payments made in past 12 months: 74,705
• Lump sum payments made in past 12 months: 1,268
Securities movement
• Number of security positions held: 28,174 (excluding money market funds)
• Number of securities trades processed: 132,898
Salem Trust Service Report Summary page 4 Published: May 3, 2017
Discrete Tasks per Service Category:
Listed below are the individual tasks, with their goals, for each category tracked in the comprehensive
quarterly performance scorecard. The graphs in this Salem Trust Service Report Summary average all discrete
tasks within a category.
Client statement production performance base:
• Standard statements released for print within 5 business days: 99%
• Employee benefit statements release for print within 10 business days: 95%
Trade settlements performance base:
• Money market trades posted on settlement date: 99%
• Mutual fund trades posted on settlement date: 95%
• DTC and Fed trades posted on settlement date: 95%
Income processing category performance base:
• Money market dividends posted within 1 business day of payable date: 99%
• Mutual fund dividends and capital gains distributions posted within 3 business days of payable date: 95%
• Book-entry DTC dividends posted within 1 business day of payable date: 95%
• Book-entry Fed interest posted within 1 business day of payable date: 85%
• MBS, CMO & asset-backed principal paydowns posted within 2 business days of payable date: 90%
• MBS, CMO & asset-backed interest posted within 2 business days of payable date: 90%
Cash processing category performance base:
• Wire transfers transmitted on same business day: 99%
• ACH transfers transmitted on same business day: 99%
• Checks produced on same business day: 99%
Corporate actions category performance base:
• Stock splits & stock dividends posted within 1 business day of ex-date: 95%
• Exchanges, spinoffs, mergers & all other reorgs posted within 1 business day after receipt: 95%
• Maturities & full calls posted within 1 business day of maturity or call date: 95%
Investment products and services are not bank deposits or obligations of, or guaranteed or endorsed or otherwise
supported by, Salem Trust Company, its parent company or any affiliate, are not federally insured or guaranteed by
the United States Government, Federal Deposit Insurance Corporation, Federal Reserve Board or any other
governmental agency, and are subject to investment risks, including possible loss of the principal amount invested.
Investments are:
IN NO EVENT WILL SALEM TRUST COMPANY OR ITS AFFILIATES BE LIABLE FOR ANY DAMAGES, INCLUDING WITHOUT LIMITATION
DIRECT OR INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES ARISING IN CONNECTION
WITH THIS PUBLICATION OR USE THEREOF BY ANY PARTY OR IN CONNECTION WITH ANY ERROR OR OMISSION.