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HomeMy WebLinkAboutMinutes Fire Pension 020718PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND MINUTES OF MEETING HELD FEBRUARY 7, 2018 A meeting of the Board of Trustees was called to order at 1:06PM in the Council Chambers, Palm Beach Gardens, Florida. Those persons present were: TRUSTEES Ed Morejon, Chairman Rick Rhodes, Vice Chair Marty Cohen Tom Murphy OTHERS Audrey Ross, Administrator John Thinnes, Investment Consultant Pedro Herrera, Attorney (via teleconference) The Trustees concurred that Mr. Herrera would be joining the meeting today via teleconfernece. PUBLIC COMMENTS N/A MINUTES The Board reviewed the minutes of the regular meeting held on January 8, 2018. A motion was made by Rick Rhodes to approve the minutes of the January 8, 2018 regular meeting. The motion was seconded by Jon Currier and carried 5-0 INVESTMENT MONITOR REPORT: ANDCO CONSULTING (JOHN THINNES) Mr. Thinnes briefly discussed the interest rate moves during the quarter as well as the Treasury yield curve. He commented that despite the slight market pullback, this Plan continues to do well. For the quarter, ending December 31, 2017 the fund was almost in line with the index net of fees at 4.13% versus 4.17%. The Plan's assets have crossed the $100M, with a gain of $3.2M during the recent quarter. Mr. Thinnes reviewed the Plan's asset allocations and noted that they are in line with their policy targets and he does not have any recommendations for rebalancing at this time. He briefly reviewed each manager's performance and stated that they all did well despite the market environment, but overall all managers are adding value with less risk. The Trustees discussed American Realty's ranking as well as their performance as they have not outperformed their index since they were added into the portfolio back in 2006. Mr. Thinnes stated that their index is not the best for comparison to their peers, although it is the only one they can use. Also in real estate the index makes up their peer group as well. American Realty is very income oriented versus the other real estate managers, but they also have less debt with less leverage. American Realty and Intercontinental work great together in this portfolio and he does not have any concern, although he will continue to monitor it. Mr. Thinnes reviewed the Plan's January 31, 2018 flash performance report . The Plan is up another 2.7% for the quarter, which puts them at 7.1%for the fiscal year to date. The Plan's assets have increased to $102.7M. The Plan remains to do well. Lastly, Mr. Thinnes briefly reviewed the December 31, 2017 ICMA DROP report . There is currently only one member that has their money invested with ICMA. Mr. Thinnes 2 noted that he does not have any recommendations for changes for this Plan as everything is doing well. ATTORNEY REPORT: SUkir ERMAN & SSSKIND (PEDRO HERRERA) Mr. Herrera briefly updated the Board on the recent Legislative session that just ended. He noted that nothing passed that directly affected the defined benefit plans. Mr. Herrera stated that as a follow up from last meeting regarding in service distributions, this Plan does not currently allow for them, as it is not written into the Plan ordinance. Mr. Morejon stated that they have checked with the City and confirmed that there are no rehires or members in this position with the City so it is a mood point right now. ADMINISTRATIVE REPORT: RESOURCE CENTERS (AUDREY ROSS) DISBURSEMENTS The Board reviewed the disbursements presented for approval by the Administrator. A motion was made by Rick Rhodes to approve the disbursements as presented. The motion was seconded by Tom Murhpy and carried 4-0. BENEFIT APPROVALS The Board reviewed the benefit approval list dated February 7, 2018 as presented by the Administrator (applications for distributions from Share account for DeRoy 011iff & Greg Timmer). The Trustees discussed the balances that were being paid out to the members and whether that as the final amounts. Ms. Ross stated that in the past they usually withhold 10% back on distributions because the Share account statements and balances are usually a year behind when a payment is being processed. Therefore, they withhold some money back in case there was a loss for the upcoming year. In the case of the two members on todays benefit approvals, Ms. Ross had their final 2017 balance that was paid out. The Trustees had a lengthy discussion the payout process and stated that they would like the Plan's Attorney to create a Share Account distribution policy, similar to the DROP account policy. A motion was made by Tom Murphy to approve the benefit approvals presented. The motion was seconded by Rick Rhodes and carried 4-0. FINANCIAL STATEMENTS The Trustees reviewed the interim financial statement as of December 2017. The Trustees stated that they would like to see the financial statements on a 12 -month rolling period. Ms. Ross stated that she will check with her office and get back to the Board. The financial statements were received and filed as of December 2017. Ms. Ross presented the Board with the service provider review list and noted that per the Plan's direction, the Actuary's information is provided today. The Trustees had a discussion on Fosters & Fosters' s services as well as their fees. A motion was made by Marty Cohen to retain Foster &Foster as the Actuary. The motion was seconded by Tom Murphy and carried 4-0. 3 Ms. Ross stated that the Actuary will have the Summary Plan Description updated for the next meeting, as well as the Valuation and Audit will be presented. OLD BUSINESS N/A NEW BUSINESS Mr. Cohen stated that he wanted to discuss the 175/Share accounts and allowing members once they are vested in the Plan the option of having some other kind of investment option other than the Plan's return. Mr. Herrera stated that this has been discussed at prior meetings and the noted that this is not allowed under the Plan by Ordinance, unless an Ordinance change were to occur. Mr. Cohen asked that this item be placed on the next agenda so that the Board can move forward with changing the Plan's Ordinance to allow for the Share account investment allocations. There being no further business, the meeting adjourned at 2:48PM. Respectfully submitted, a�- Jon Currier, Secretary