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HomeMy WebLinkAboutMinutes Police Pension 012909City of Palm Beach Gardens Po /ice Officers' Pension Fund Minutes of the Meeting Held January 29, 2009 The regular meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers' Pension Fund was called to order at 9:06 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 Bonni Jensen (Hanson, Perry & Jensen, P.A.) David Pierson, Secretary Audrey Ross (Tegrit Plan Administrators) Jules Barone, Trustee Donna Cannon (Palm Beach Gardens Clerk's Office) Brad Seidensticker, Trustee Steve Stack (ICC Capital Management) Wayne Sidey, Trustee (9:12AM) Bob Ohanesian (ICC Capital Management) INVESTMENT MANAGER REPORT ICC Capital — Presented by Steve Stack & Bob Ohanesian Mr. Ohanesian introduced himself to the board. He stated that he is the fixed income portfolio manager. He gave an overview of 2008. He commented that in 2008 all the fixed income indexes were negative by October 31, 2008, but by the end of the calendar year they were higher. Mr. Ohanesian also explained that they raised cash within the last couple of months of the second and third quarter. Mr. Ohanesian stated that currently they are positive for 2009, by one point. Mr. Ohanesian forecasted that the economy is still weak and will remain that why until the end of 2009. He commented that rates are at zero, and they never have had the fixed income outperform for 2 years in a row with a zero rate. He emphasized to the board that he will not load up on treasury bonds when they are at zero. Mr. Ohanesian explained that they are now purchasing high quality corporate bonds that the Government is buying, and they are also buying 1% positions in corporates. He stated that they are currently maintaining about a 20% exposures in mortgages. Mr. Pierson asked whether or not they would buy into any Bank of America since the Government will not let them fail. Mr. Ohanesian replied that he had previously bought into TARP, and you can not buy into both Bank of America and TARP. Mr. Seidensticker wanted to know if they will lengthen the duration. He commented that they are about neutral right now and will buy into more shortly. Mr. Stack briefly reviewed the returns for the quarter ending December 31, 2008. He stated that on the fixed income side they are currently holding 17.6% in cash and 82.4% in fixed income. He reported that the bonds were ahead of the benchmark at 4.98% versus 4.58% for the quarter, and the total fund was behind at 3.62% versus the benchmark at 4.58 %. On the growth side they are holding 24.7% in cash and 75.3% equities. Mr. Stack reported that this fund did not do as well as the fixed income. The equities were down - 16.94% versus the benchmark at - 22.79 %, and the total fund was negative at -13.76 versus - 22.79 %. Minutes 01 -29 -09 - Palm Beach Gardens Police.doc Page 1 of 6 The board and the investment managers' had a brief discussion on the current and future investments of this plan. Overall the fund is gaining and losing with less assets and still the same number of clients. ADMINISTRATOR REPORT Tegrit Plan Administrators, LLC — Presented by Audrey Ross Ms. Ross stated that she has the TPA /PRC contract with her today that notes the name change. MOTION: Mr. Seidensticker made a motion to approve the TPA /PRC contract. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 5 -0. Ms. Ross commented that the Auditors' were not able to make it to today's meeting to present the audit, but the draft audit is complete. She stated that she would send the draft copy over the financial director in the meantime, and they will schedule another date for the Auditors' to come in and present. ATTORNEY REPORT Hanson, Perry & Jensen, P.A. — Presented by Bonni Jensen Ms. Jensen reviewed the revised DROP distribution policy. She explained the different distribution methods that are available to the participants at the time of a withdrawal. The ordinance allows the following options for distributions; lump sum withdrawals or monthly annuity installments. Ms. Jensen commented that there are open enrollment periods as to when the money can be withdrawn; February and August of each year. She noted that unless a member can qualify for a hardship withdrawal, then no other distributions would be made outside of the two open enrollment periods. Lastly, Ms. Jensen reviewed the general considerations of the DROP plan; • Retirees don't have to take a withdrawals from their account until they reach the age 70 1/2. • Members who start annuity payments and they are under the age of 50 will have to have the plans Actuary compute the monthly withdrawal amount. • When a member withdrawals their balance or closes out their account, there will be a 10% holdback. • Any distributions over $50,000 have to be approved by the board before they are paid out, but no later than 60 days from when requested. • Retirees can designate a beneficiary on their DROP account. The board agreed that they will wait until the next meeting to approve the DROP distribution policy as there are a couple of revisions that need to be made. Ms. Jensen updated the board that they IRS determination letter will be filed shortly. Minutes 01 -29 -09 - Palm Beach Gardens Police.doc Page 2of6 MINUTES MOTION: Mr. Pierson made a motion to approve the minutes from the October 30, 2008 regular meeting. SECOND: Mr. Sidey seconded the motion. CARRIED: The motion carried unanimously 5 -0. DISBURSEMENTS APPROVALS MOTION: Mr. Pierson made a motion to approve the disbursements. SECOND: Mr. Sidey seconded the motion. CARRIED: The motion carried unanimously 5 -0 OTHER BUSINESS Mr. Spencer mentioned that the Annual Municipal Police Officers' and Firefighters' conference in Tallahassee is in May and he would like the board to attend if possible. He also reminded the Trustees that the FPPTA annual conference is in June and is local in Boca. AJOURN There being no further business, and the future meetings are scheduled for the last Thursday of the first month of the quarter. The next special meeting is scheduled for Friday February 13, 2009 at 1PM; the Trustees officially adjourned the meeting at 10:01AM. Respectfully submitted, DAVID PIERSON, Secretary Minutes 01 -29 -09 - Palm Beach Gardens Police.doc Page 3of6