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HomeMy WebLinkAboutMinutes Fire Pension 080118PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND MINUTES OF MEETING HELD AUGUST 1, 2018 A meeting of the Board of Trustees was called to order at 1:04PM in. the Council Chambers, Palm Beach Gardens, Florida. Those persons present were: TRUSTEES OTHERS Ed Morejon, Chairman Audrey Ross & Denise McNeill, Administrator .Ion Currier, Secretary John Thinnes, Investment Consultant Marty Cohen Pedro Herrera, Attorney Tom Murphy Eric Leventhal & Liedhe Carpio Auditors Doug Lozen, Actuary Sean O'Brien, City of PBG Finance Department PUBLIC COMMENTS No members of the public had any comment. MINUTES The Board reviewed the minutes of the regular meeting held on May 2, 2018. The Trustees had a lengthy discussion on the minutes and stated that the motion for the Auditor Request for Proposal (RFP) was not reflected in them. In addition, the Trustees discussed the timing of the minutes and that they need to be available with all the other meeting materials prior to the meeting. The Trustees tabled the minutes from the May 2, 2018 meeting. INVESTMENT MONITOR REPORT: ANDCO CONSULTING JOHN THINNES) Mr. Thinnes briefly reviewed the ICMA DROP funds. He stated that over all the funds are doing well and he does not have any recommendations at this time for any changes. He noted that he was able to change the ticker symbols on this account to match the 457 funds so members can compare the accounts if necessary. Mr. Thinnes reviewed the July 30, 2018 flash performance report_ For the quarter to date the fund was up 1.6%, and for the fiscal year to date they are up as well at 7.2%. All managers are doing well and no recommendations. Mr. Thinnes briefly reviewed the June 30, 2018 quarterly report. He stated that we will continue to see rate hikes throughout the end of this year. He reviewed the Plan's asset allocation and stated that they are in line with the Plan's policy targets and there are no recommendations for rebalancing at this time. For the quarter they gained $2.2M, which was a return of 1.25% and for the fiscal year to date they are at 5.23%. All managers are doing well although they are still keeping an eye on the Templeton Global Bond fund. ATTORNEY REPORT: SUGERMAN & SUSSKIND PEDRO HERRERA 2 Mr. Morejon explained to the Trustees the recent situation that came up regarding the State money. The incorrect calendar year payroll that was reported to the Division of Retirement on the State Annual Report for 2015 & 2016, which affected the amount of State money the Pension Plan received back, which ultimately affected the amount of Share account money members received in their accounts. The Trustees had a very lengthy discussion on this and Mr. Morejon stated that the City is no longer filing the State Annual Report as of 2017 and this is how the issue was brought to our attention_ Mr. Lozen was asked to do a study regarding this issue Iast minute to see how much money was actually left out. Mr. Lozen reviewed his study and the amounts that were provided versus the actual correct amounts. He also discussed the prior year's allocations and stated that when the Resource Centers took over the DROP and Share accounting they made the initial allocations to member's accounts on October I rather than September 30. Ms. McNeill explained that a day does not make a difference when it came to the funding of the accounts nor does it have any material change to the accounts; no member was shorted money during this process. The Trustees continued their conversation regarding how they were going to make up this money and who was responsible for returning it. Mr. Herrera stated that ultimately it is the City's responsibility to make up the funds as they were the party responsible for reporting that calendar year payroll and preparing the State Annual Report. Mr. Morejon briefly discussed other options that would be available to the Board just in case, to have a backup plan. A motion was made by Rick Rhodes to direct the Plan's Attorney to ask the City to collect all the State money that the Pension Plan missed out on in 2015 and 2016. The motion was seconded by Jon Currier and carried 4-0. Mr. Herrera stated that all Trustees have turned in their Annual Form I Disclosure forms. Mr. Herrera apologized that he did not have the Share account policy with him today for the Board's review. He will have it available prior to the next meeting for review. ADMINISTRATIVE REPORT: RESOURCE CENTERS AUDREY ROSS & DENISE MCNEILL) DISBURSEMENTS: The Board reviewed the disbursements presented for approval by the Administrator. A motion was made by Tom Murphy to approve the disbursements as revised. The motion was seconded by Rick Rhodes and carried 4-0. BENEFIT APPROVALS: The Board reviewed the benefit approval list presented for approval by the Administrator. A motion was made by Jon Currier to approve the benefit appr2yal list as revised. The motion was seconded by Rick Rhodes and carried 4-0. FINANCIAL STATEMENTS: The Trustees reviewed the interim financial statement as of June 2018. The financial statements were received and filed as of June 2018. Ms. Ross presented the Board with the Admin expense report as of September 30, 2017. She reminded the Trustees that this is a new required exercise they must complete each year. They are required to report the actual admin expenses each year compared to what was previously budgeted. A motion was made bv Jon Currier to approve the September 30, 2017 admin expense report. The motion was seconded by Tom Murphy and carried 4-0. Ms. Ross than provided the Board with the admin budget for the fiscal year ending September 30, 2019. The assumptions were increased by the same amount for the previous year. Tile Trustees reviewed the document and had some questions about their current fees and invoices paid versus the budgeted amounts. Ms. McNeill stated that they will update the budget and bring it back to the next meeting with more in.i:or-mation. Ms. Ross presented the Board with the service provider review and stated that the Administrator's contract was provided today to be reviewed and discussed. The Trustees had a very lengnhy discussion on the administrative services and Mr. Morejon expressed that he was not happy with the current services. The Trustees discussed further. A motion was made by Tom Murphv to direct the Plan's Attorney to issue an Request for Proposal for plan administration services The motion was seconded by Rick Rhodes and carried 4-0. OLD BUSINESS The Board had no old business for discussion. NEW BUSINESS The Trustees reviewed the updated summary plan description. They asked that the COLA sample be added to the document for better understanding. Mr. Herrera stated that he will get that added in for the next meeting. Mr. Rhodes stated that his signature is still on the Plan's checks. Ms. Ross stated that she will get that updated with Ed and Jon's signatures. There being no further business, the meeting adjourned at 3:55PM P lly submitted r, ar;