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HomeMy WebLinkAboutMinutes Police Pension 111208City of Pa in Beach Gardens Po ice Officers' Pension Fund Minutes of the Meeting Held November 12th, 2008 Special Meeting The special meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers' Pension Fund was called to order at 1:18PM 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 Jay Spencer, Chairman David Pierson, Secretary Jules Barone, Trustee Brad Seidensticker, Trustee OTHERS PRESENT John McCann (Thistle Asset Consulting) Steve Stack (ICC Capital Management) (1:30) Bonni Jensen (Hanson, Perry, & Jensen, P.A.) (1:45) Donna Cannon (Palm Beach Gardens Clerk's Office) Margie Adcock (The Pension Resource Center) Dixie Martinez (The Pension Resource Center) INVESTMENT CONSULTANT REPORT Thistle Assets — Presented by John McCann Mr. Stack discussed the current market environment with the board. He commented that the plan had about $99,000 in a SR Lehman bond as well. The plan currently has about 16 -17% in cash as ICC is waiting for a buying opportunity when perceives risk is not so great. Mr. Seidensticker asked if ICC could supply him with their financial statements. Mr. Stack replied that he would have to look into that since they are not public records. Mr. Stack reported the returns for the fixed income fund the quarter ending September 30, 2008. The bonds were behind the index at -3.20% versus - 0.49 %, and the total fund was also down at -2.66% versus the index at - 0.49 %. The beginning market value for the quarter was at $12,132,804 and at the end it was slightly higher at $12,189,700. Mr. Stack also reviewed the asset allocation as of September 30, 2008. They held 16.2% in cash and 83.8% in fixed income. Lastly, Mr. Stack reported that the Large Cap Growth Fund for the quarter ending September 30, 2008 was also down. The equities were behind at - 17.59% versus the index at - 12.33% and the total fund was at - 16.14% versus - 12.33 %. The market value decreased from $3,704,643 to $3,015,076 for the 3rd quarter. He reported the asset allocation of the portfolio as of 9/30/2008 at 5.1% in cash and 94.9% in equities. INVESTMENT CONSULTANT REPORT Thistle Asset Consultant — Presented by Brendon Vavrica Mr. Spencer asked Thistle to provide a more detailed report in the future. The Trustees had a lengthy discussion on the market returns for October. The board discussed on moving assets, and Mr. Pierson stated that he wants the performance updated before even having an asset allocation discussion. Jay stated that the board should consider holding a special meeting to review the allocations. The board 2 -08 SM - Palm Beach Gardens Police.doc Page 1 of 6 discussed dates to hold the special meeting, and it was agreed that it will be held on November 12, 2008. MOTION: Mr. Seidensticker made a motion to move $1.2M from the ICC Fixed Income Account, and distribute $600,000 in Rhumbline and $600,000 into the ICC Large Cap Growth Fund. SECOND: No one seconded the motion. CARRIED: The motion does not carry. Mr. Pierson stated that they should deploy the cash until the special meeting. The board decided that they should make some kind of small asset allocation at this time, and will make another decision at the special meeting. MOTION: Mr. Seidensticker made a motion to move $300,000 from ICC Capitals Fixed Income account and split it between ICC Capitals Large Cap Growth Fund and between Rumblines S &P500 account. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 5 -0 Mr. Vavrica reported on the funds performance for the quarter ending September 30, 2008. The total fund was negative at -7.72% versus the index at - 6.81 %, and for the fiscal year they are also behind at - 13.73% versus - 12.83 %. The total equities were down at - 11.61% versus the index at - 10.19% for the 3rd quarter. The total fixed income was way behind the index at -3.25% versus -0.48% and Mr. Vavrica commented that there was a lot of volatility in the fixed income for the quarter as Mr. Stack has already mentioned. Lastly, Mr. Vavrica reported on Rhumblines S &P accounts and the international account. S &P500 - Slightly ahead of the index for the quarter at -8.21% versus -8.37% S &P400 - Was very close for the quarter ending 9/30/2008, but still ahead of the index at - 10.82% versus - 10.87% S &P600 - Had a rough quarter at -1.36% versus the index at -0.86% International Equity - Outperformed the index for the quarter at - 19.47& versus - 20.50% ATTORNEY REPORT Hanson, Perry & Jensen, P.A. - Presented by Bonni Jensen Ms. Jensen reviewed the IRS determination memo with the board. She commented that the IRS determination letter will indicate that this plan is tax qualified. Ms. Jensen stated that it is not mandatory for plans to file this letter. I ;nutes 11 -12 -08 SM - Palm Beach Gardens Police.doc Page 2of6 Ms. Jensen reviewed the changes that she made to update the Summary Plan Description. Mr. Baur commented that his office will distribute the updated SPD to the members. MOTION: Mr. Sidey made a motion to approve the update Summary Plan Description. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 5 -0 Ms. Jensen discussed the Florida qualified public depository memo with the board. She explained what the protection of having this means to the plan. She commented that this will be filled each year on behalf of the board. Ms. Jensen reviewed the possible amendments that might take place in this plan. She explained that right now service excludes time when members are on leave, and they would change it to include the time in your service. Mr. Sidey asked if this amendment does go into affect would it retro back. Ms. Jensen commented that this change would only apply to future retirements. She stated that the ordinance changed to finally reflects that buybacks count for all purposes except for reaching your vesting date earlier. Lastly, Ms. Jensen explained the November newspaper article that stated that the IRS might change the retirement ages. She commented that the IRS has delayed any change to the retirement ages until 2011. DISBURSEMENTS APPROVALS MOTION: Mr. Seidensticker made a motion to approve the disbursements. SECOND: Mr. Sidey seconded the motion. CARRIED: The motion carried unanimously 5 -0 BENEFIT APPROVALS MOTION: Mr. Sidey made a motion to approve the benefit approvals for Jay Wilbur and Edward Vistein. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 5 -0 MOTION: Mr. Seidensticker made a motion to approve the benefit approval for Jay Spencer. SECOND: Mr. Sidey seconded the motion. CARRIED: The motion carried unanimously 4 -0 (Mr. Spencer abstained from this vote) I ;nutes 11 -12 -08 SM - Palm Beach Gardens Police.doc Page 3of6 ADMINISTRATOR REPORT The Pension Resource Center, LLC — Presented by Scott Baur & Dixie Martinez Mr. Baur commented that Mr. Pierson and Mr. Seidensticker had been reappointed by the City to serve a 2 year additional terms. Mr. Baur explained the management letter from the plans Auditor; Cherry, Bekaert & Holland that noted material weaknesses in the plans controls and procedures from last years audit. Lastly, Mr. Baur explained the name change to the board from the Pension Resource Center to Tegrit Plan Administers. OLD BUSINESS N/A OTHER BUSINESS Mr. Spencer reviewed the current items that need to be addressed. The City and the pension board are still trying to get the health insurance deductions deducted from the members pension checks so they can be eligible for the $3,000 tax deduction. Also, Mr. Tallichet recently turned in a buyback application that needs to be completed as soon as possible. The board directed Ms. Jensen to send a letter to Rhumbline and ICC Capital requesting a copy of their financial statements. Mr. Spencer commented that he spoke to Steve Palmquist in regards to getting this plan 100% funded. He would like the board to allow Mr. Palmquist to complete some studies to make recommendations on this issue. 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 meeting is scheduled for Thursday January 29, 2009 at 9AM; the Trustees officially adjourned the meeting at 11:52AM. Respectfully submitted, DAVID PIERSON, Secretary Minutes 11 -12 -08 SM - Palm Beach Gardens Police.doc Page 4of6