HomeMy WebLinkAboutMinutes Police Pension 032318City of Palm Beach Gardens Po/ice Officers'
Pension Fund
Minutes of the Meeting Held
March 23, 2018
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
Jay Spencer, Chairman
Brad Seidensticker, Secretary
Allan Owens, Trustee
Greg Mull, Trustee
Marc Glass, Trustee
OTHERS PRESENT
Audrey Ross (Resource Centers)
Bonni Jensen (KKJ&L)
Alisa Train (Cherry Bekaert)
John McCann (AndCo. Consulting)
Richelle Hayes (American Realty)
Pete Strong (GRS)
9/30/2017 AUDITED FINANCIAL STATEMENT REPORT
Cherry Bekaert — Presented by Alisa Train
Mr. Train introduced herself and stated that a clean unmodified opinion was issued in
regards to the Plan's September 30, 2017 audited financial statements. She
commented that no material weaknesses were identified while performing the audit
and no reportable noncompliance or findings either. Also there were no issues with
management or any service providers either. Ms. Train stated that the City had
prepaid their contributions in one lump sum payment in the beginning of the fiscal
year which saved them interest. The Plan ended the fiscal year with $90,176,684 in
assets compared to $82,113,694 the prior year. The Plan had a great investment
year as that lead to most of the gain. The employee contributions slightly increased
this year due to more active members contributing to the pension Plan, which is a
gain for the Plan. Also benefit payments increased due to more retirees. Overall Ms.
Train stated that the Plan did well and had about a 30 basis point gain altogether.
MOTION: Mr. Glass made a motion to approve the September 30, 2017
Actuarial Valuation Report as presented.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 5-0.
Ms. Train presented the Board with the September 30, 2017 audit representation
letter. This letter explains the audit process and also concluded that there were no
findings or material weaknesses that were found while performing the audit.
MOTION: Mr. Glass made a motion to approve the September 30, 2017
audit representation letter as presented.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 5-0.
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9/30/2017 ACTUARIAL VALUATION REPORT
GRS — Presented by Pete Strong
Mr. Strong stated that he was here today to present the results of the September 30,
2017 Actuarial Valuation report. For the fiscal year ending September 30, 2019 the
total City costs increase as a dollar amount, but the percentage of payroll slightly
decreased. He explained that the employee payroll increased this year by 11% due
to all the new hires and with the decrease in the Plan's assumed rate of return, it
lead to the slight increase in dollar amount to the City. Mr. Strong noted that a lot of
members exited the DROP during the fiscal year, which were large salaries and then
they were replaced with lower salary employees. The State money also slightly
decreased this year. The Plan lowered their assumed rate of return to 6.7% and still
have 2 more years of lowering until they reach their goal of 6.5%. The cost impact
of that change this year was $128,626. Also the Plan changed to level dollar change
this year but that did not have a cost impact. Mr. Strong discussed the Plan's
unfunded liability schedule and the amount of time it is amortized over. Currently
the Plan's unfunded liabilities are set at 20 years but he would recommend lowering
all the time periods to 15 years as it will save the City and the Plan money in the
long run. This change would cost about $221,265, but it would also save $2.8M in
payments over the long run. The Trustees had a lengthy discussion about lowering
the Plan's unfunded liability amortization schedule to 15 years for all time bases.
MOTION: Mr. Owens made a motion to reset the Plan's unfunded liability
amortization schedule to 15 years for all time bases.
SECOND: Mr. Glass seconded the motion.
CARRIED: The motion carried unanimously 5-0.
Mr. Strong stated that the City's new payment for the next fiscal year now with the
approved change above will be around $3.2M compared to the $2.9M previously
reported. As of September 30, 2017 the Plan's funded ratio increased to 75.4%
from 73.4% from the prior year. Mr. Strong noted that this Board is always ahead of
the game in looking to save money and have a very strong Plan. The Plan had a net
gain this year of $1M which offset the other changes that were already implemented.
He discussed the State money that came in this year and the amount that will be
split 50/50 between the City and the Share accounts is $148,973, as that is the
additional money received in this year over the frozen amount. He commented that
a COLA will not be paid out this year and discussed future payouts of this benefit
because when they recognize all the negative experience then at that point a COLA
could be funded. Overall Mr. Strong stated that this fund is doing very well and is
very strong. In 24 years this Plan went from $2.4M to $68M and he stated that this
pension board had a big role in that.
MOTION: Mr. Glass made a motion to approve the Plan's September 30,
2017 Actuarial Valuation report as amended.
SECOND: Mr. Seidensticker seconded the motion.
CARRIED: The motion carried unanimously 5-0.
The Trustees had a brief discussion on buyback calculations. Each member receives a
1 time free buyback calculation throughout their career. Currently there are a couple
of members that have received their buyback numbers back from the Actuary and
are now asking for other calculations to be completed in regards to breaking down
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their numbers by years, pay periods, or whatever the case may be. Ms. Ross stated
that she needs direction from the Board as to whether these members need to pay
the additional cost for the additional information, or if this is considered part of their
first free buyback calculation. The Trustees had a lengthy discussion and stated that
the members need to pay for any additional calculations they want over and beyond
the initial calculation they are provided with from the Actuary.
INVESTMENT MANAGER REPORT
American Realty — Presented by Richelle Hayes
Ms. Hayes welcomed herself back and stated that there have been no firm changes
other than an office relocation from Glendale to LA. For the quarter the Plan is up
1.45% versus the index at 1.85% and for the one year they are up 6.88% versus
6.66%. The Plan's assets have increased to $8.7M and they discussed their peer
ranking which has seems to be a little lower lately because they have been selling
out of old buildings and buying newer ones. They currently have 68 properties in
their portfolio with a 93.5% occupancy rate. Their leverage remains low at 19.5%.
Overall this fund remains to do well.
INVESTMENT CONSULTANT REPORT
AndCo. Consulting — Presented by John McCann
Mr. McCann reviewed the Plan's asset allocation and stated that he is recommending
the Plan increase their real estate allocation to 10%. For the quarter ending
December 30, 2017 they were up 4.21% and for the one year they are up 15.37%.
He briefly reviewed the manager's performance and noted that all did well. Mr.
McCann stated that he has the Plan's investment policy guideline with him today and
if the Board approves it, then it would allow them to invest in up to 10% in real
estate by taking some from the fixed income side. The Trustees had a lengthy
discussion on the reallocation.
MOTION: Mr. Seidensticker made a motion to approve the revised
investment policy guidelines as presented increasing the real
estate allocation to 10% by taking it from fixed income.
SECOND: Mr. Owens seconded the motion.
CARRIED: The motion carried unanimously 5-0.
MOTION: Mr. Glass made a motion to set the Plan's assumed rate of
return for this year, next year, and the long term thereafter to
6.7% per the recommendation of the Plan's consultant.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 5-0.
ATTORNEY REPORT
KKJ&L - Presented by Bonni Jensen
Ms. Jensen stated that the IRS mileage rate increased effective January 1, 2018 to
$0545.
Ms. Jensen briefly reviewed the pending PTSD Bill which deals with workers comp.
She stated that she will keep the Board updated on this as more information
becomes available.
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Ms. Jensen presented the Board with a draft of the RFP she will be sending out
regarding bookkeeping/CPA services for the Plan's financial statements. She will
have the results back at the next meeting for the Board to review.
ADMINISTRATOR REPORT
N/A
MINUTES
MOTION: Mr. Seidensticker made a motion to approve the minutes from
the December 7, 2017 regular meeting.
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. Mull made a motion to approve the benefit approval list
dated March 23, 2018 with the exception of Tiffany Glass's
application for retirement.
SECOND: Mr. Glass seconded the motion.
CARRIED: The motion carried unanimously 5-0.
MOTION: Mr. Seidensticker made a motion to approve the application to
for retirement for Tiffany Glass.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 4-0 (Mr. Glass did not vote, form
on file).
FINANCIAL STATEMENTS
The board reviewed and discussed the financial statements that were provided
through January 2018.
The board received and filed the financial statements through January 2018.
OTHER BUSINESS
MOTION: Mr. Mull made a motion to reappoint Mr. Spencer as the Fifth
Trustee.
SECOND: Mr. Owens seconded the motion.
CARRIED: The motion carried unanimously 5-0.
PUBLIC COMMENTS
N/A
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AJOURN
There being no further business, the Trustees officially adjourned the meeting at
11:20AM. The next meeting is scheduled for Monday June 11, 2018 at 9AM.
Respectfully submitted,
Brad Seidensticker, Secretary
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