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HomeMy WebLinkAboutMinutes Fire Pension 030617PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND MINUTES OF MEETING HELD MARCH 6, 2017 A meeting of the Board of Trustees was called to order at 1:03PM in the Council Chambers, Palm Beach Gardens, Florida. Those persons present were: TRUSTEES OTHERS Rick Rhodes, Chair Audrey Ross, Administrator Martin Cohen, Vice Chair Dan Johnson, Investment Consultant Tom Murphy, Jennifer , Investment Consultant Pedro Herrera, Attorney Matt Haywood, Active Firefighter PUBLIC COMMENTS Mr. Haywood stated that he was here today to get clarification on the early tax penalty because he will be separating service prior to age 50. He commented that in the past he was advised that the additional 10% tax penalty on lump sum withdrawals would apply to him until age 50 ½, but then he also heard otherwise. Mr. Herrera stated that it was age 50 ½ and he advise the member to seek a tax adviser as well. MINUTES Mrs. Ross apologized on behalf of her firm as the minutes from the November 2016 meeting are not available, as she did not attend the last meeting so therefore she is asking for them to be tabled. The Board reviewed the minutes of the regular meeting held on February 1, 2017. A motion was made by Ed Morejon to approve the minutes of the February 1, 2017 regular meeting. The motion was seconded by Tom Murphy and carried 4-0. INVESTMENT MONITOR REPORT: ANDCO CONSULTING (DAN JOHNSON) Mr. Johnson briefly reviewed the February 28, 2017 flash performance report. For the quarter to date they are up 2.9% and for the fiscal year to date they are up 5.6%. So far it has been a great quarter and fiscal year and all managers are doing well including the Templeton Global Bond fund. Mr. Johnson reviewed the Dana small and large cap strategy. His recommendation is to move away from the small cap strategy all together and move into SMID cap as it has more to offer and it would add more diversification to the portfolio as well. Mr. Johnson stated that he will put together a SMID cap review to bring back to the next meeting. He also briefly discussed other products that they will be looking into in the near future. Ms. Johnson updated the Board on the Templeton Global Bond Fund. He stated that he is still comfortable with this strategy as they do protect on the downside. The board concurred and noted that they will still be keeping on top of their performance. Mr. Johnson stated that he spoke to GHA regarding their benchmark they are measured against. He explained that GHA recently changed their investment strategy to benefit the fund and by broadening the benchmark they are measured against gives them more room for better returns. Mr. Rhodes commented that he does not want the Board to get into the 2 habit or process of changing their manager benchmarks when their returns change. Mr. Johnson reassured the Board that this is not what they are doing in this situation. The Trustees had a lengthy discussion and Mr. Johnson commented that GHA was comfortable with this change as well. If the Board does allow this change, Mr. Johnson does have an updated GHA addendum for the IPS that they would need to approve. Mr. Herrera stated that he does not have any legal objection with this recommendation/change. A motion was made by Tom Murphy to approve the updated GHA addendum to the IPS as presented (authorizing the change to the GHA benchmark from the intermediate bond index to the aggregate bond index). The motion was seconded by Ed Morejon and carried 3-1. Mr. Johnson updated the Board on ICMA and stated that he spoke to the Plan’s rep regarading the tickers on the website not matching the forms the members fill out. Steve with ICMA will attend a future meeting to discuss this with the Board and any members that are interested. Lastly, Mr. Johnson stated that the Custodial transition is in the process and will occur on March 16, 2017. ATTORNEY REPORT: SUGERMAN & SUSSKIND (PEDRO HERRERA) Mr. Herrera commented that there is no update regarding the BanCorp South litigation case since the last meeting, Mr. Herrera gave a brief update on the current Legislative session and the pending Senate and House Bills. He will update the Board as more information becomes available. Mr. Herrera stated that there are some Trustee educational opportunities coming up such as the FPPTA and the Division of Retirement conferences. Lastly, it was noted that Mr. Herrera’s firm, Sugarman & Susskind, has recently gained a new client, the Jacksonville Retirement System, which is great news for their firm. Although he explained that the Jacksonville Retirement System recently closed their DB plan for all new hires, which will go into a 401 Plan. He commented that he thinks this could start setting a trend for other pension Plan’s in this position, as other City’s may start moving away from DB Plans as well. This does not have any affect or impact on this pension plan directly, but Mr. Herrera wants to keep his clients in the loop because there is even a proposed Bill out there right now that would close out the FRS to all new hires and move them into a DC Plan as well. The Trustees had a lengthy discussion on the effects of closing a pension plan has on the City and the Plan, as well as other City’s that have already gone through this and where they stand today. Mr. Herrera stated that he will keep the Board updated on this topic in the future. ADMINISTRATIVE REPORT: RESOURCE CENTERS (AUDREY ROSS) DISBURSEMENTS The Board reviewed the disbursements presented for approval by the Administrator. A motion was made by Ed Morejon to approve the disbursements as presented by the Administrator. The motion was seconded by Tom Murphy and carried 4-0. 3 BENEFIT APPROVALS The Board reviewed the benefit approval list dated March 6, 2017 as presented by the Administrator (applications for distributions for DROP and Share accounts for William Schaneen, Michael Southard, and Anthony Vazquez and the application for a refund of contributions for Casey Beeler). A motion was made by Ed Morejon to approve the applications for distributions from DROP and Share accounts for William Schaneen, Michael Southard & Anthony Vazquez and the application for a refund of contributions for Casey Beeler. The motion was seconded by Tom Murphy and carried 4-0. FINANCIAL STATEMENTS The Trustees reviewed the interim financial statement as of January2017. The Trustees had some questions regards some accounts. Ms. Ross stated that she will look into this and get back to the Board. The financial statements were received and filed as of January 2017. OLD BUSINESS Mr. Cohen stated that for the record he thinks the Board should consider reducing their assumed rate of return to 6.5%. This can be discussed with the Actuary at the next meeting when he is present, but the other Trustees noted that the Plan is still in the process of lowering the assumed rate of return as it is being phased in over 5 years. NEW BUSINESS Ms. Ross presented the Board with the 2017/2018 Fiduciary Liability Insurance renewal quote. The premium increased $530 this year for a total of $12,166. She reminded the Trustees that last year they increased their total coverage from $1M to $2M. A motion was made by Tom Murphy to approve the 2017/2018 Fiduciary Liability Insurance renewal quote for $12,166. The motion was seconded by Ed Morejon and carried 4-0. The Trustees commented that next year they would like to go out other vendors/institutions for quotes. The Trustees reviewed the list of disabled retirees. Ms. Ross stated that she will mail out the letters to these individuals in which they will have to get a letter from their doctor to return to the Plan. The letter will need to confirm that the member is still disabled and unable to return to work. There being no further business, the meeting adjourned at 3PM. Respectfully submitted, Jon Currier, Secretary