HomeMy WebLinkAboutAgenda Police Pension 120717 Agenda
City of Palm Beach Gardens Police Officers’
Pension Fund
MEETING OF DECEMBER 7, 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
• Greg Mull, Trustee
• Marc Glass, Trustee
3. Investment Manager Report – Highland Capital (Steve Stack)
4. Investment Consultant Report – AndCo Consulting (John McCann)
5. Attorney Report – KKJ&L (Bonni Jensen)
• Chapter 185 Premium Comparison
6. Administrator Report – Resource Centers (Audrey Ross & Denise McNeill)
• Memo: Financial Statement Fee Increase
• 2018 Meeting Dates
• Updated Trustee List (with Terms)
7. Minutes:
• 9/15/2017 Regular Meeting
8. Disbursements
9. Benefit Approvals
10. Financial Statements
11. Other Business
• Salem Trust Authorized Signors List
• State Portal Electronic Reporting Requirement Letter
12. Public Comments
13. Adjourn
Next Meeting Date:
Thursday, March 1, 2018 @ 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.
Resource Centers LLC – Omega Recordkeeping Group LLC
Pension Resource Center LLC – Financial Resource Center LLC
THE RESOURCE CENTERS , LLC
4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410
Phone (561) 624-3277 Fax (561) 624-3278 WWW.RESOURCECENTERS.COM
PALM BEACH GARDENS POLICE OFFICERS’ PENSION FUND
2018 MEETING DATES
Thursday March 1, 2018 @ 9AM
Thursday June 7, 2018 @ 9AM
Friday September 21, 2018 @ 9AM
Thursday December 6, 2018 @ 9AM
THE RESOURCE CENTERS, LLC
4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410
Phone (561) 624-3277 Fax (56 1) 624-3278 WWW.RESOURCECENTERS.COM
Resource Centers LLC – Pension Resource Center LLC – Financial Resource Center LLC
August 29, 2017
TO: Board of Trustees
Palm Beach Gardens Police Officers’ Pension Plan
FROM: Resource Centers, LLC
RE: Financial Statement Fee Increase
Dear Trustees:
As time passes, we must periodically review the fees that we charge to each plan in relation to our
operating costs and the services we provide. We do our best to deliver value back to you and to the
members of your plan through the services that we provide. We also invest substantially in our
organization and our personnel, through such items as our systems and our annual SSAE-18 Audit, to
insure that we continue to deliver the highest level of competence and experience through the work
that we do. In relation to the GAAP and GASB changes and as part of our internal SSAE-18 process, we
began having our client financial statements reviewed by an outside CPA in 2013. In this way, we can
guarantee that we provide proper management oversight for the production of the financial statement
to your plan auditor, a requirement of the newer GAAP standards. This additional management
oversight has created increased costs to our firm related specifically to the client financial statement
process. Due to changes in reporting and testing requirements, our time investment in the production
and audit of plan financial statements has more than tripled in recent years. Additionally, we work
primarily in the public sector where items such as fees are part of the public record; we must therefore
charge all of our clients equitably for our services. We respectfully ask the Board to approve the
increase to our financial statement fee as requested.
We have remained true to our commitment to deliver value to the Board since 2006. We have not
increased our fee related to the production of financial statements to your plan since inception of that
service in 2006. We therefore ask the Board to grant a monthly financial statement fee of $750 effective
December 1st.
We ask that you approve the fee request at your September meeting. We will be happy to answer any
questions that you might have regarding the proposed increase in the meantime. We also look forward
to continuing to demonstrate to you our commitment to excellence and service for many years to come.
Sincerely,
J. Scott Baur, Managing Partner Denise McNeill, Partner
Resource Centers, LLC Resource Centers, LLC
October 31, 2017
Ms. Audrey Ross
Resource Centers, LLC
4360 Northlake Blvd, Suite 206
Palm Beach Gardens, FL 33410
Re: City of Palm Beach Gardens Police Officers’ Pension Fund
State Portal Electronic Reporting Requirement
Dear Audrey:
The Florida Division of Retirement (Division), Bureau of Local Retirement Systems issued a
Memorandum dated August 15, 2017 which says that for all actuarial valuations dated on or after
September 30, 2017, all annual actuarial reporting must be submitted via a new online reporting portal
for all Florida municipal pension plans subject to the reporting and disclosure requirements of Chapters
175 and 185, and Part VII of Chapter 112, Florida Statutes. In our conversations with the Division, we
have been informed that this information is to be prepared and uploaded by the Plan’s actuary. They
understand this new reporting will result in startup and on‐going fees to be paid by Pension Boards.
Additional Disclosure Requirements
This new reporting is intended to capture all of the actuarial information as well as the financial
information and key census data summaries which are required to be included in the actuarial valuation
report, plus some additional calculations / information the Division now requires. Consequently,
compliance requires creating a comprehensive electronic file containing 137 fields of required
information in the format stipulated by the Division.
The electronic reporting replaces the current requirement to send a copy of the actuarial valuation
report to the Division after it has been approved by the Board.
Fees
Our startup fee to prepare and file the information summarized above will be $1,250. Our ongoing fee
in subsequent years will be $500.
If you should have any questions concerning the above, please do not hesitate to contact us.
Sincerely,
Peter N. Strong, FSA
Senior Consultant and Actuary
From:Scott Baur
To:All Staff Members
Subject:Resource Centers (Financial Statement Fee Increase)
Date:Tuesday, September 5, 2017 4:05:29 PM
Administrators:
If asked, here is the rationale for the separate fee to maintain the interim financial statements:
2017-18 Budget Client Financial Statement Maintenance
Item Amount Qty Plan
Staff Time: Financial Statement Maintenance
Full Time: Accounting Analyst
94,611.10
32
2,956.601/4 Time: Clerical Assistant 32
Management Oversight (Partner)5% @ 32
Management Oversight (Payment Mgr)5% @ 32
Accounting Firm Oversight + Review 1,850.00 1 1,850.00
SSAE-18 Audit 16,615.67 32 519.24
Office Overhead 415,815.00 7.8% @ 32 1,013.55
Audit Increase (Administrator Time)3,000.00 1 3,000.00
Annual Total 9,339.39
Monthly Fee 778.28
The budget includes applicable staff time, Robert Cole, SSAE-18 Audit costs, and a pro-rata share of the office overhead not including Robert Cole and the SSAE-
18 Audit engagement. You will see that I added a flat $3,000 per year or $250.00 per month to address the increase in office and staff time over the past 10
years for audits where we produce the interim financial statements.
Scott Baur
J. Scott Baur, Managing PartnerResource Centers, LLC
Main Office: 4360 Northlake Blvd. Suite 206, Palm Beach Gardens, FL 33410
Contact: Office 561.624.3277 | Fax 561.624.3278 | Toll Free 800.206.0116
Ft Myers: 4100 Center Pointe Drive, Suite 108, Ft Myers, FL 33916 | Office 239.573.4750 | Fax 239.573.4752
Orlando: 231 East Colonial Drive Suite 100, Orlando, FL 32801
Email: Scott@ResourceCenters.com | Please visit our website: www.ResourceCenters.com
Logo Email
City of Palm Beach Gardens
Police Pension Fund
Trustees
Jay Spencer, 5th Trustee
Chairman
6310 Lauderdale Street
Jupiter, FL 33458
Cell: 561.252.5305
Home Phone: 561.624.7928
E-mail: jayspencer@bellsouth.net
Term Expires: 8/22/2018
Marc Glass, Trustee
c/o Palm Beach Gardens Police Department
10500 North Military Trail
Palm Beach Gardens, FL 33410
Phone: 561.799.4545 or 248-1231 (cellular)
E-mail: mglass@pbgfl.com
Term Expires:9/30/2019
Greg Mull, Trustee
c/o Palm Beach Gardens Police Department
10500 North Military Trail
Palm Beach Gardens, FL 33410
Phone: 772-285-6705
E-mail: gmull@pbgfl.com
Term Expires:11/16/2021
Brad Seidensticker, City Trustee
Secretary
11 Glencairn Road
Palm Beach Gardens, FL 33418
Phone: 561.624.2077
E-mail: bradsticker@yahoo.com
Term Expires: 12/19/2018
Allan Owens, Trustee
c/o City of PBG Finance Director
10500 North Military Trail
Palm Beach Gardens, FL 33410
Phone: 561.799.4163
Email: aowens@pbgfl.com
Term Expires: 5/9/2019
PALM BEACH GARDENS POLICE
PENSION FUND
Benefit Approvals
Meeting of December 7, 2017
APPLICATIONS TO EXIT THE DROP
ROBERT CHRISTOFFERS DATE OF BIRTH 05/1969
DATE OF HIRE 09/03/1992
DROP ENTRY DATE 09/11/2012
DATE OF TERMINATION 09/21/2017
FORM OF BENEFIT 10 YEAR CERTAIN
MONTHLY BENEFIT AMOUNT $5,302.44
SUPPLEMENTAL BENEFIT $ 250.00
_________________________
GEORGE SMITH DATE OF BIRTH 03/1961
DATE OF HIRE 05/01/1996
DROP ENTRY DATE 03/12/2013
DATE OF TERMINATION 10/06/2017
FORM OF BENEFIT 50% J&S
MONTHLY BENEFIT AMOUNT $5,295.58
SUPPLEMENTAL BENEFIT $ 200.00
_________________________
APPLICATIONS FOR DISTRIBUTION OF DROP ACCOUNTS
(DUE TO RETIREMENT)
GEORGE SMITH DATE OF RETIREMENT 10/06/2017
DATE OF BIRTH 03/1961
TYPE OF DISTRIBUTION PARTAL LUMP SUM-CASH
TOTAL GROSS DISTRIBUTION $90,000.00
TAX WITHHOLDING (20%) $18,000.00
TOTAL NET DISTRIBUTION $72,000.00
CURRENT DROP ACCOUNT BALANCE $310,481.82
_________________________
APPLICATIONS FOR DISTRIBUTION OF DROP ACCOUNTS
(10/15/17)
JOHN BOYLE DATE OF RETIREMENT 08/26/2016
DATE OF BIRTH 01/1964
TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH
TOTAL GROSS DISTRIBUTION $28,000.00
TAX WITHHOLDING (20%) $5,600.00
TOTAL NET DISTRIBUTION $22,400.00
CURRENT DROP ACCOUNT BALANCE $430,633.51
_________________________
SHEREE BROWN DATE OF RETIREMENT 05/04/2014
DATE OF BIRTH 10/1954
TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH
TOTAL GROSS DISTRIBUTION $7,500.00
TAX WITHHOLDING (20%) $1,500.00
TOTAL NET DISTRIBUTION $6,000.00
CURRENT DROP ACCOUNT BALANCE $94,324.79
_________________________
MARTY GREENBERG DATE OF RETIREMENT 12/29/2011
DATE OF BIRTH 04/1948
TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH
TOTAL GROSS DISTRIBUTION $18,000.00
TAX WITHHOLDING (20%) $3,600.00
TOTAL NET DISTRIBUTION $14,400.00
CURRENT DROP ACCOUNT BALANCE $313,369.40
_________________________
JACK SCHNUR DATE OF RETIREMENT 12/02/2016
DATE OF BIRTH 07/1963
TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH
TOTAL GROSS DISTRIBUTION $55,000.00
TAX WITHHOLDING (20%) $11,000.00
TOTAL NET DISTRIBUTION $44,000.00
CURRENT DROP ACCOUNT BALANCE $418,613.10
_________________________
APPLICATIONS FOR DISTRIBUTION OF DROP ACCOUNTS
(12/15/17 - PENDING)
GEORGE CLAY DATE OF RETIREMENT 05/16/2016
DATE OF BIRTH 09/1958
TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH
TOTAL GROSS DISTRIBUTION $230,000.00
TAX WITHHOLDING (20%) $46,000.00
TOTAL NET DISTRIBUTION $184,000.00
CURRENT DROP ACCOUNT BALANCE $541,428.84
_________________________
JEFF MAIN DATE OF RETIREMENT 12/29/2016
DATE OF BIRTH 04/1960
TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH
TOTAL GROSS DISTRIBUTION $12,500.00
TAX WITHHOLDING (20%) $2,500.00
TOTAL NET DISTRIBUTION $10,000.00
CURRENT DROP ACCOUNT BALANCE $47,855.91
_________________________
____________________________, CHAIRMAN
APPROVED ___________________________, SECRETARY
12/07/17______________________, DATE
October
1000 BB&T 2,826,951.84
1220 A/R State Contributions 624,188.17
1300 Prepaid Other 278,194.76
Salem Trust (Consolidated)
1400 Cash and Equivalents 553,042.26
1410 Equities 9,313,263.14
1420 Fixed Income 18,278,482.69
1430 Other Assets-RhumbLine 51,383,019.27
1450 Accrued Income 121,599.20
1461 Due from Brokers 190,459.80
1462 Due to Brokers (3,435.15)
Salem Trust Total 79,836,431.21
1604 American Core Realty 8,656,733.99
1616 Dreyfus International Bond 846,451.76
1628 Oppenheimer International Bond 817,022.26
2000 Accounts Payable (45,009.63)
93,840,964.36
Palm Beach Gardens Police
Balance Sheet
FY 2018
Account Description
TOTAL RESERVE FUND (MARKET VALUE):
October November December January February March April May June July August September1000 BB&T3,525,786.95 633,883.40 508,614.83 417,858.57 446,606.95 98,600.72 335,018.88 386,662.58 311,614.48 463,172.12 347,031.96 1,783,196.801215 A/R Employee Buyback Contributions 2,752.88 2,752.88 2,752.88 2,752.88 2,752.88 2,752.88 2,752.88 2,752.88 2,752.88 2,752.88 2,752.88 0.001220 A/R State Contributions0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 624,188.171235 Pending Reinvestment/Distribution 0.00 0.00 80,245.78 0.00 0.00 79,811.04 0.00 0.00 80,463.55 0.00 0.00 85,751.291300 Prepaid Other281,806.27 293,901.09 621,962.81 300,497.67 370,253.57 322,626.59 320,418.35 267,290.88 358,247.80 268,388.70 274,174.24 276,806.221310 Prepaid Insurance0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 969.16Salem Trust (Consolidated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.001400 Cash and Equivalents 1,507,178.13 1,896,817.50 1,044,877.13 726,791.10 1,013,943.93 714,609.75 624,964.91 389,560.79 1,360,921.45 1,267,359.04 923,575.80 1,992,142.641410 Equities7,580,850.92 7,708,228.54 7,870,619.55 8,235,209.21 8,165,018.68 8,188,813.34 8,297,969.54 8,459,125.27 8,492,381.51 8,694,051.24 8,865,750.52 8,970,848.191420 Fixed Income17,318,380.00 19,113,462.09 19,884,512.94 19,943,878.58 20,574,043.90 19,668,582.90 19,880,161.91 20,337,806.09 19,572,461.50 19,418,061.85 19,902,481.50 18,644,087.131430 Other Assets-RhumbLine 44,730,044.07 47,139,625.02 47,443,866.33 48,176,869.99 49,518,216.79 49,208,997.09 49,206,866.42 49,576,072.61 49,323,500.39 49,774,831.40 49,181,888.74 50,428,386.621450 Accrued Income119,475.17 138,279.37 122,833.79 125,901.05 138,413.43 137,517.58 147,017.10 144,261.61 118,800.02 115,065.66 131,985.87 124,074.821461 Due from Brokers380,356.35 0.00 0.00 0.00 950,826.50 260,196.12 350,115.65 0.00 484,732.71 0.00 80,708.25 0.001462 Due to Brokers(453,207.96) (135,985.51) (4,491.87) (3,870.46) (1,922,870.04) (3,063.53) (3,028.87) (202,991.98) (508,085.88) (3,138.36) (173,147.23) (3,403.08)Salem Trust Total 71,183,076.68 75,860,427.01 76,362,217.87 77,204,779.47 78,437,593.19 78,175,653.25 78,504,066.66 78,703,834.39 78,844,711.70 79,266,230.83 78,913,243.45 80,156,136.321604 American Core Realty 6,568,344.12 6,568,344.12 6,548,523.22 6,548,523.22 6,548,523.22 6,598,794.72 6,598,794.72 6,598,794.72 6,629,819.17 7,029,819.17 7,029,819.17 7,056,733.991616 Dreyfus International Bond 833,310.38 833,310.38 765,414.07 765,414.07 765,414.07 797,829.15 797,829.15 797,829.15 825,538.81 825,538.81 825,538.81 846,451.761628 Oppenheimer International Bond 783,904.09 787,044.52 746,240.80 749,628.21 752,140.05 773,511.02 776,161.86 778,738.39 797,583.29 800,329.98 803,207.11 817,022.262000 Accounts Payable(41,661.50) 0.00 (46,944.82) (41,441.15) (5,485.11) (47,285.92) (41,644.23) 0.00 (82,240.21) (47,796.64) (36,295.94) (53,106.56)83,137,319.87 84,979,663.40 85,589,027.44 85,948,012.94 87,317,798.82 86,802,293.45 87,293,398.27 87,535,902.99 87,768,491.47 88,608,435.85 88,159,471.68 91,594,149.41Palm Beach Gardens PoliceBalance SheetFY 2017Account DescriptionTOTAL RESERVE FUND (MARKET VALUE):
End October Year-To-Date
Income:
4000 Employer Contributions 1,417,465.50 1,417,465.50
4100 Employee Contributions 41,704.40 41,704.40
Realized Gain/Loss-Salem Trust
4210 Equities 93.80 93.80
4220 Fixed Income (2,302.11)(2,302.11)
Unrealized Gain/Loss-Salem Trust
4310 Equities 319,723.70 319,723.70
4320 Fixed Income (35,814.92)(35,814.92)
4330 Other Assets-RhumbLine 954,632.65 954,632.65
4600 Interest & Dividend Income 50,525.21 50,525.21
4710 Securities Litigation (894.56)(894.56)
Total Income 2,745,133.67 2,745,133.67
End October Year-To-Date
Expense:
5000 Benefit Payments 337,260.62 337,260.62
5010 Beneficiary Payments 7,286.39 7,286.39
5020 Disability Payments 22,735.14 22,735.14
5300 DROP Distributions 108,500.00 108,500.00
5310 DROP Distributions-Monthly 7,700.00 7,700.00
6110 Administrator Fees 2,575.00 2,575.00
6130 Bank Charges 197.32 197.32
6200 Trustee Expense-Conference 5,207.09 5,207.09
6300 Fiduciary Liability Insurance 6,857.16 6,857.16
Total Expense 498,318.72 498,318.72
Reserve Fund Last Period 91,594,149.41 91,594,149.41
Balance To/ From Reserve 2,246,814.95 2,246,814.95
TOTAL RESERVE FUND 93,840,964.36 93,840,964.36
Palm Beach Gardens Police
Statement of Income and Expense
FY 2018
Account Description
Account Description
End October End November End December End January End February End March End April End May End June End July End August End September Year-To-DateIncome:4000Employer Contributions 2,843,423.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,417,465.50 4,260,888.504050State Contributions0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 624,188.17 624,188.174100Employee Contributions 37,768.93 39,088.40 58,667.41 39,743.42 39,607.74 39,322.85 40,078.44 40,146.67 60,703.31 40,828.77 41,318.15 40,991.27 518,265.364110Buyback Contributions-Pre-Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (2,752.88) (2,752.88)Realized Gain/Loss-Salem Trust4210Equities2,295.17 (998.74) 0.00 6,343.61 11,482.45 (2.83) (9,089.85) (7,956.28) 65,603.57 2,075.45 (2,420.19) 475,004.31 542,336.674220Fixed Income(2,505.17) 1,366.84 2,531.14 3,505.76 2,339.70 11,667.69 (174.83) 3,711.25 (1,882.98) 1,104.83 1,325.74 (146,326.03) (123,336.06)4230Other Assets-RhumbLine 0.00 0.00 0.00 0.00 0.00 (10,461.31) (2,428.53) 0.00 3,434.04 8,993.99 (8,294.47) 410,169.46 401,413.18Unrealized Gain/Loss-Salem Trust4310Equities(180,212.37) 188,650.28 162,391.01 274,465.68 302,679.27 23,841.09 158,124.62 195,952.13 (69,265.22) 240,458.52 174,528.11 (382,047.69) 1,089,565.434320Fixed Income (217,086.68) (482,583.73) (24,378.50) 24,898.78 114,272.52 (46,529.08) 130,675.02 123,005.26 (56,586.61) 80,360.76 142,628.24 (7,523.82) (218,847.84)4330Other Assets-RhumbLine (1,183,568.24) 2,408,272.48 1,161,272.12 733,003.66 1,341,346.80 201,241.61 600,297.86 369,206.19 536,499.56 867,337.02 (309,648.19) 1,301,328.42 8,026,589.294400Realized Gain/Loss-Mgr Held4404American Core Realty 0.00 0.00 (15,195.12) 0.00 0.00 (51,404.19) 0.00 0.00 25,036.27 0.00 0.00 80,939.31 39,376.274500Unrealized Gain/Loss-Mgr Held4504American Core Realty 0.00 0.00 40,690.04 0.00 0.00 136,979.54 0.00 0.00 38,170.26 0.00 0.00 (19,589.72) 196,250.124516Dreyfus International Bond 0.00 0.00 (70,420.61) 0.00 0.00 32,415.08 0.00 0.00 27,709.66 0.00 0.00 20,912.95 10,617.084528Oppenheimer International Bond 0.00 0.00 (44,734.97) 0.00 0.00 18,689.80 0.00 0.00 16,183.64 0.00 0.00 10,836.78 975.254600Interest & Dividend Income 58,463.80 64,475.16 116,670.79 59,270.12 63,204.82 123,908.06 59,301.65 68,425.71 125,028.85 54,599.94 66,770.51 130,384.55 990,503.964710Securities Litigation0.00 0.00 0.00 60.20 0.00 0.00 0.00 0.00 894.56 0.00 0.00 894.56 1,849.324800Salem Trust Adjustments 0.00 1,308.47 42,969.19 0.00 0.00 0.00 0.00 0.00 7,494.18 0.00 0.00 0.00 51,771.84Total Income1,358,578.44 2,219,579.16 1,430,462.50 1,141,291.23 1,874,933.30 479,668.31 976,784.38 792,490.93 779,023.09 1,295,759.28 106,207.90 3,954,875.14 16,409,653.66End October End November End December End January End February End March End April End May End June End July End August End September Year-To-DateExpense:5000Benefit Payments 289,204.90 289,204.90 289,204.90 303,453.63 308,468.17 321,939.82 321,939.82 321,939.82 321,939.82 327,119.28 331,708.18 332,612.63 3,758,735.875010Beneficiary Payments 7,286.39 7,286.39 7,286.39 7,286.39 7,286.39 7,286.39 7,286.39 7,286.39 7,286.39 7,286.39 7,286.39 7,286.39 87,436.685020Disability Payments 22,735.14 22,735.14 22,735.14 22,735.14 22,735.14 22,735.14 22,735.14 22,735.14 22,735.14 22,735.14 22,735.14 22,735.14 272,821.685100Refund of Contributions 5,219.18 0.00 0.00 0.00 0.00 0.00 0.00 8,637.21 0.00 0.00 0.00 0.00 13,856.395300DROP Distributions0.00 48,000.00 417,500.00 438,250.00 152,451.97 562,000.00 114,000.00 163,750.00 103,350.00 75,500.00 182,200.00 72,250.00 2,329,251.975310DROP Distributions-Monthly 6,800.00 6,800.00 6,800.00 6,800.00 6,800.00 6,800.00 6,800.00 6,800.00 6,800.00 7,700.00 7,700.00 7,700.00 84,300.006000Custodian Fees0.00 0.00 5,503.67 0.00 0.00 5,641.69 0.00 0.00 5,664.69 0.00 0.00 5,668.88 22,478.936020Investment Consultant Fees 0.00 0.00 5,374.95 0.00 0.00 5,374.95 0.00 0.00 5,328.70 0.00 0.00 5,328.70 21,407.306040Investment Management Fees 0.00 0.00 54,345.58 0.00 0.00 54,686.09 0.00 0.00 53,456.23 0.00 0.00 55,209.98 217,697.886100Actuary Fees0.00 0.00 3,874.00 0.00 1,496.00 4,972.00 0.00 7,176.00 12,604.00 9,406.00 0.00 2,174.00 41,702.006110Administrator Fees 2,575.00 2,609.20 2,575.00 2,575.00 2,575.00 2,638.43 2,575.00 2,639.85 2,575.00 2,575.00 2,612.80 5,175.00 33,700.286120Auditor Fees0.00 0.00 0.00 0.00 0.00 0.00 8,000.00 6,600.00 1,000.00 0.00 0.00 0.00 15,600.006130Bank Charges182.71 0.00 83.83 198.57 217.06 272.57 225.21 267.83 189.14 196.36 252.39 207.85 2,293.526150Legal Fees0.00 0.00 0.00 45.00 2,497.50 765.00 140.00 2,128.00 1,125.50 1,273.00 382.50 4,818.00 13,174.506160Postage0.00 0.00 0.00 0.00 0.00 61.60 0.00 25.97 0.00 3.60 0.00 0.00 91.176200Trustee Expense-Conference 0.00 0.00 0.00 962.00 530.19 0.00 1,978.00 0.00 2,380.00 1,024.13 294.67 0.00 7,168.996220Annual Membership Fees 0.00 600.00 0.00 0.00 90.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 690.006300Fiduciary Liability Insurance 949.12 0.00 5,815.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (969.16) 5,794.966320General Liability Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 996.00 0.00 0.00 996.00Total Expense334,952.44 377,235.63 821,098.46 782,305.73 505,147.42 995,173.68 485,679.56 549,986.21 546,434.61 455,814.90 555,172.07 520,197.41 6,929,198.12Reserve Fund Last Period 82,113,693.87 83,137,319.87 84,979,663.40 85,589,027.44 85,948,012.94 87,317,798.82 86,802,293.45 87,293,398.27 87,535,902.99 87,768,491.47 88,608,435.85 88,159,471.68 82,113,693.87Balance To/ From Reserve 1,023,626.00 1,842,343.53 609,364.04 358,985.50 1,369,785.88 (515,505.37) 491,104.82 242,504.72 232,588.48 839,944.38 (448,964.17) 3,434,677.73 9,480,455.54TOTAL RESERVE FUND 83,137,319.87 84,979,663.40 85,589,027.44 85,948,012.94 87,317,798.82 86,802,293.45 87,293,398.27 87,535,902.99 87,768,491.47 88,608,435.85 88,159,471.68 91,594,149.41 91,594,149.41Palm Beach Gardens PoliceStatement of Income and ExpenseFY 2017Account DescriptionAccount Description
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City of Palm Beach Gardens Police Officers’
Pension Fund
Minutes of the Meeting Held
September 15, 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 1:09 PM 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)
Allan Owens, Trustee John McCann (AndCo. Consulting)
Greg Mull, Trustee Karen Russo (Salem Trust Company)
Marc Glass, Trustee
CUSTODIAN REPORT
Salem Trust Company – Presented by Karen Russo
Ms. Russo presented the Board with the Salem Trust quarterly custodial report as of
June 30, 2017. She explained that these are new reports that her firm will start
producing on a quarterly basis and issuing to their clients. Ms. Russo stated that
client service is very important to them and Salem Trust has a service pledge that
they abide by. If they do not remain true to this pledge, then Salem Trust will take
care of it with a possible reduction to the next quarterly fee. Lastly Ms. Russo stated
that Salem Trust has issued their SSAE 18 report for the period of July 1, 2016
through June 30, 2017. This report issued a clean opinion and there were no issues
found while performing the audit. The Board thanks Salem Trust for their time and
service.
INVESTMENT CONSULTANT REPORT
AndCo. Consulting – Presented by John McCann
Mr. McCann briefly reviewed the June 30, 2017 reports. For the quarter the Fund
was up 2.75% but slightly behind the index at 2.86%, but for the fiscal year to date
they are ahead at 9.37% versus the index at 8.84%. Mr. McCann reviewed the
August 31, 2017 flash performance report and noted that the fund is up another
2.37% for the quarter and for the fiscal year to date they are ahead at 11.27%. He
noted that these numbers do not include Real Estate so the final returns will more
than likely be a little higher. He briefly reviewed each manager’s performance and
noted that all managers are doing well and outperforming their relative benchmark.
The Board discussed the Rhumbline accounts as their trading time opened up from
once a month to daily if they so wished. Mr. McCann stated that he does not really
think this will affect them, but they will only be able to tell over time. The Trustees
discussed the real estate and how the current market has been affecting them. Mr.
McCann stated that he will invite American Realty to a future meeting. Mr. McCann
made a recommendation to take the money from the Rhumbline S&P600 account to
cover the October 1, 2017 benefit payments and to take the money from the
Highland Capital fixed income account for the October 1, 2017 American Realty
capital call. Ms. Ross stated that she is still waiting on the money from the mutual
funds which will go back to Highland Capital once received. Lastly the Trustees had
a very lengthy discussion on how to prepare for the future markets. This is the
second largest run with the market being so high consecutively. Mr. McCann stated
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that their firm does keep an eye on this and the will rebalance as needed when they
think the time will come, but the Plan cannot pull all their money out of the market.
They discussed other ways of moving money around to protect the returns and lock
them in. Mr. Spencer noted that these are good conversations that the Board
continues to keep having and they will continue to monitor it going forward as well.
ATTORNEY REPORT
KKJ&L - Presented by Bonni Jensen
Ms. Jensen presented the Board with the memo regarding the 2017 Legislative
updates. She stated that there were no Bill’s that passed that directly impacted the
defined benefit pension plan’s, although there were some Bill’s that passed that the
Board should be aware of such as the Public Records pre-suit written notice and
exemption for retired firefighters (SB 80 & SB 1108). Also SB7022, HB 455, HB 305
& HB 7107 that were passed this year as well.
Ms. Jensen explained that the Plan’s State money decreased this year about $20K
and across the board other 185 monies increased. She stated that she will check
with the Division of Retirement to see if they can get a better understanding of why
this Plan’s money decreased this year.
Ms. Jensen reviewed the Plan’s updated Summary Plan Description (SPD). She
stated that they tabled this document from the last meeting as they were waiting for
the Share account money to get resolved so that language could be added into the
document. Ms. Jensen recommended at this point there is still nothing confirmed yet
in regards to the distribution of the Share accounts so the Board should move on and
adopt the document as is at this time and then they will revise it again at a later
date to add in the Share account language.
MOTION: Mr. Glass made a motion to approve the Summary Plan
Description as presented.
SECOND: Mr. Seidensticker seconded the motion.
CARRIED: The motion carried unanimously 5-0.
Mr. Glass and Mr. Mull stated that they are still waiting on ratification on the Share
accounts so that an Ordinance can be drafted. They will follow up with the Union on
the status after today’s meeting. The members did vote to allow for the State
money to be distributed to all active members and only future retirees only and does
not include current retirees or active DROP members.
ADMINISTRATOR REPORT
Resource Centers – Presented by Audrey Ross
Ms. Ross presented the Board with the 2018 Commercial Insurance Renewal. She
noted that this was renewed in between meetings with the Chair’s permission so
therefore the Board will need to ratification the binding of the coverage today. The
annual premium decreased this year by $17 and therefore the new premium is
$1,013.
MOTION: Mr. Glass made a motion to ratify the 2018 Commercial
insurance renewal premium for $1,013.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 5-0.
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Ms. Ross presented the Board with the 2018 Fiduciary Liability Insurance Renewal
quote. The premium this year increased by $73 for a total of $5,888.
MOTION: Mr. Seindensticker made a motion to bind the 2018 Fiduciary
Liability Insurance premium for $5,888.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 5-0.
Ms. Ross briefly mentioned that the Resource Centers also received their clean SSAE
16 audit report through June 30, 2018.
Ms. Ross presented the Board with a letter from her firm regarding the financial
statements that her office reconciles and prepares on a monthly basis. In the past
Resource Centers has never charged for this service but due to the large amount of
work that goes into reconciling and producing these statements, her firm is now
proposing a $750 monthly fee to continue providing these services. The Board had a
lengthy discussion on the letter. Ms. Ross stated that it is the Board’s responsibility
to maintain the pension plans financial statements (General ledger and trail balance)
to provide to the Plan’s auditor and actuary at the end of the fiscal year so that
ultimately the audit and valuation can get completed. Currently PRC does this on
behalf of the Plan and they will continue for a monthly fee of $750, or the Board can
look for someone else/company to provide this service. The Trustees had some
more detailed questions that they would like to ask either Mr. Baur or Ms. McNeill as
they are the ones that signed the letters as the owners of the firm. Ms. Ross stated
that she will bring either Mr. Baur or Ms. McNeill to the next meeting to discuss this
letter. The Trustees tabled this letter until the next meeting.
MINUTES
MOTION: Mr. Seidensticker made a motion to approve the minutes from
the May 31, 2017 regular meeting as amended.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 5-0.
DISBURSEMENTS APPROVALS
MOTION: Mr. Glass made a motion to approve the disbursements.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 5-0.
BENEFIT APPROVALS
MOTION: Mr. Glass made a motion to approve the benefit approval list
dated September 15, 2017 as presented.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 5-0.
FINANCIAL STATEMENTS
The board reviewed and discussed the financial statements that were provided
through August 2017.
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The board received and filed the financial statements through August 2017.
OTHER BUSINESS
Mr. Spencer discussed the Plan’s current death benefit for active police officers. Ms.
Jensen stated that the Plan does have an in-line duty death benefit and she will
research it and bring back more information at the next meeting.
Mr. Spencer briefly discussed the travel policy that the Plan currently has in place.
The policy does not require a Trustee to attend an education seminar each year but
it does recommend. The Trustees discussed the current policy and decided to leave
it as is for now.
The Trustees noted that the FPPTA did a great job at their annual conference as
almost all the Trustees were able to attend this year.
PUBLIC COMMENTS
N/A
AJOURN
There being no further business, the Trustees officially adjourned the meeting at
3:04PM. The next meeting is scheduled for Thursday December 7, 2017 at 9AM.
Respectfully submitted,
_____________________________
Brad Seidensticker, Secretary