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HomeMy WebLinkAboutMinutes Fire Penson 010818PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND MINUTES OF MEETING HELD US &= 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 Rick Rhodes, Chair Martin Cohen, Vice Chair Jon Currier, Secretary Ed Morej on Tom Murphy PUBLIC COMMENTS N/A OTHERS Audrey Ross, Administrator Dan Johnson, Investment Consultant John Thinnes, Investment Consultant Pedro Herrera, Attorney Chris Wood, Security Monitor SELECTION OF CHAIRMAN, VICE CHAIR &SECRETARY Ms. Ross stated that the Board needs to select a Chair, Vice Chair, and Secretary according to their policy, as it is due every January. Ms. Ross opened the floor up for nominations of Chairman: A motion was made by Rick Rhodes to NOMINATE Ed Morejon as Chairman. The motion was seconded by Jon Currier and carried 5-0. A motion was made by Ed Moreion to NOMINATE Marty Cohen as Chairman. The motion was seconded by Jon Currier and carried 5-0. Mr. Cohen did not accept the nomination as Chairman. Mr. Morejon accepted the nomination as Chairman. A motion was made by Rick Rhodes to ELECT Ed Morejon as Chairman. The motion was seconded by Marty Cohen and carried 5-0. Ms. Ross opened the floor up for nominations for Vice Chair: A motion was made by Ed Morejon to NOMINATE Rick Rhodes as Vice Chair. The motion was seconded by Tom Murphy and carried 5-0. Mr. Rhodes accepted the nomination as Vice Chair. A motion was made by Tom Murphy to ELECT Rick Rhodes as Vice Chair. The motion was seconded by Jon Currier and carried 5-0. Ms. Ross opened the floor up for nominations for Secretary: A motion was made by Tom Murphy to NOMINATE Jon Currier as Secretary. The motion was seconded by Ed Morejon and carried 5-0. 2 Mr. Currier accepted the nomination as Secretary. A motion was made by Ed Morejon to ELECT Jon Currier as Secretary. The motion was seconded by Marty Cohen and carried 5-0. SECURITIES MONITOR REPORT: RGR&D (CHRIS WOOD & ) Mr: Wood's stated that he was here today to update the Board on the BanCorp South case. He reviewed the confidential settlement memo with the Board and noted that this document will remain confidential until the Board approves the settlement that is being offered in the letter. Therefore, BanCorp South is offering a settlement in the amount of $13M which was accepted by both parties, although it still needs to be finalized in court but before they can do that they need the Board's approval to accept the offer. Mr. Wood reviewed the court process when finalizing the settlement and noted that his firm will file all the necessary claims during this process. They will file the motion with the Courts within 30 days of it being approved and then it will take about 6 months for the Courts to process it and then lastly they administrators will process the payments. Therefore, they are looking at a year from now before they actually receive the funds. The Trustees had a lengthy discussion on the settlement amount, how they got to that number, how much the Plan would actual receive after all other payouts. Mr. Wood explained that about 17-33% of damages would be recovered out of the $13M and they would also be asking the Courts for compensation for the Board's time as well as Attorney fees and expenses, which total about another $500K. A motion was made by Rick Rhodes to accent the BanCorp South settlement as presented. The motion was seconded by Jon Currier and carried 5A. MINUTES The Board reviewed the minutes of the regular meeting held on November 1, 2017. A motion was made by Marty Cohen to approve the minutes of the November 1, 2017 regular meetinra. The motion was seconded by Jon Currier and carried 5-0. Ms. Ross stated that Mr. Morejon's voting confl ict form is on file along with the signed coFJ of the minutes. INVESTMENT MONITOR REPORT: ANDCO CONSULTING (DAN JOHNSON & JOHN THINNES) Mr. Johnson introduced Mr. John Thinnes to the Board and stated that he has been with the firm for over 10 years now. Mr. Johnson reminded the Trustees that due to his new position within his firm and that he will be slowly transitioning this account over to Mr. Thinnes. He thinks Mr. Thinnes will be a great fit for this Plan and reminded the Trustees that he is still just a phone call away if needed. Mr. Johnson briefly the flash performance report as of December 31, 2017. The fund is already up 3.7% for the quarter to date which is also the first quarter into the new fiscal year. That is a gain of $3.2M, which now puts the assets up to $99.8M. This quart ers contributions due include the City's payment in full for the fiscal year beginning October 1, 2017 as well as the State money that the Plan received. Mr. Johnson stated that during this quarter they switched from Dana to Eaton Vance, in which everything went smooth what that transition. Fixed income is slightly negative although we do not expect that 3 asset class to generate a lot of returns this year. He briefly reviewed each manager's performance and noted that they all did well over all despite the relative market environments. Mr. Johnson stated that he does not have any recommendations at this time. Mr. Thrones announced that as of today the Plan has crossed over the D M threshold and is currently at $101 M. Mr. Johnson commented that this is a very huge accomplishment and that the Board should be very proud of themselves. Mr. Jonson started that when his firm started with this Board back in 2006 there was $13M in asset, huge increase! The Trustees had a lengthy discussion on alternatives such as infrastructure and other types of investments that would that help compliment and diversify this portfolio in anticipation of a market correction or downturn as the market has been high for so long now. Mr. Johnson stated that they would put together a report to review and compare all the different type of alternative investments in the near future. ATTORNEY REPORT: SUGERMAN & SUSSHIND (PEDRO HERRERA) Mr. Herrera updated the Board on the Legislative session and stated that nothing has been filed as of yet in regards to defined benefit plans. He briefly reviewed some proposed pending FRS Bills and noted that he will keep the Board updated on all the Bill's as more information becomes available. Mr. Herrera briefly updated the Board on gifting requirements as a Trustee on the Board. Mr. Morejon discussed the Sunshine Law and if personal email addresses can be involved. Mr. Herrera stated that if you are using your personal cell phone to conduct pension related business it could become public records in the Court of Law if necessary. The Trustees discussed retaining their own personal email addresses for pension board related matters only. Ms. Ross stated that she will gather more information in regards to this and will get back to the Board at the next meeting. _ Mr. Morejon discussed the Chapter 175 State money that the Plan receives and what Frocesses are put into place to make sure the correct amount is being deposited into the Plan, and if necessary any correct amount that is owed to the City. Ms. Ross stated that the City receives the State money directly and then they turn around and wire that same amount to the pension Plan. As administrator, I compare the amount the City sent to the pension Plan against the schedules that the Division of Retirement publishes on their website reflecting the amounts each pension Plan is entitled to each year. Any State money that the City is owed comes off their contributions and this is actuarial calculated and reflected in the Actuarial Valuation Report. Ms. Ross stated that she will bring back a copy of the materials to the next meeting for review/example. ADMINISTRATIVE REPORT: RESOURCE CENTERS (AUDREY ROSS) DISBURSEMENTS The Board reviewed the disbursements presented for approval by the Administrator. It was noted that the total amount of all the AP should be corrected to $75,896.23. 4 A motion was made by Jon Currier to approve the disbursements as amended for a brand total of $75,896.23. The motion was seconded by Marty Cohen and carried 5- 0. BENEFIT APPROVALS The Board reviewed the benefit approval list dated January 8, 2018 as presented by the Administrator (applications to exit the DROP for DeRoy 011iff and Greg Timmer). A motion was made by Rick Rhodes to approve the benefit J= presented. The motion was seconded by Tom Murphy and carried 5-0. The Board reviewed the 2018 COLA approval list for both the retired members as well as the active DROP members. A motion was made by Rick Rhodes to approve the 2018 COLA approval list for the retired and active DROP members effective January 1, 2018. The motion was seconded by Tom Murphy and carried 4-0 (Mr. Moreion did not vote on his own application, a Form 8B is on file). FINANCIAL STATEMENTS The Trustees reviewed the interim financial statement as of October 2017. The fmancial statements were received and filed as of October 2017. Ms. Ross stated presented the Board with the service provider review list and by going in alphabetical order the Actuary and Administrator would be up for review. It was noted that the Administrator was just reviewed this time last year when they switched Custodians as PRC took over benefit payments. The Trustees asked to bring back the Actuary's contract for review at the next meeting as well as fee breakdown of what was paid to them over the last year. 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. The Trustees noted that the Plan's Summary Plan Description needs to be updated. Ms. Ross stated that she believes the Actuary updates the SPD for this Plan and will ask them to update it for the next few meetings. There being no further business, the meeting adjourn ed at 2:57PM. submitt ed, I I LAST NAME—FIRST NAME—MIDDL NAME N E OF BOARD, COUNCIL, COMMISSION, AUTHORITY, OR COMMITTEE r — MAILING ADDRESS `' �� ' " � �"�m.. � �� � !f1 d /� `% THE BOARD, COUNCIL, COMMISSION, AUTHORITY OR COMMITTEE ON WHICH 1 SERVE IS A UNIT OF: 9CITY D COUNTY ❑OTHER LOCAL AGENCY CITY COUNTY �� "`� � �� � NA OF POLITICAL SUBDIVISION: DATE ON WHICH VOTE OCCURRED j MY POSITION IS: / �° � � ELECTIVE ❑ APPOINTIVE � \. This form is for use by any person serving at the county, city, or other local level of government on an appointed or elected board, council, commission, authority, or committee. It applies equally to members of advisory and non -advisory bodies who are presented with a voting conflict of interest under Section 112.3143, Florida Statutes. Your responsibilities under the law when faced with voting on a measure in which you have a conflict of interest will vary greatly depending on whether you hold an elective or appointive position. For this reason, please pay close attention to the instructions on this form before completing the reverse side and filing the form. A person holding elective or appointive county, municipal, or other local public office MUST ABSTAIN from voting on a measure which inures to his or her special private gain or loss. Each elected or appointed local officer also is prohibited from knowingly voting on a mea- sure which inures to the special gain or loss of a principal (other than a government agency) by whom he or she is retained (including the parent organization or subsidiary of a corporate principal by which he or she is retained}; to the special private gain or loss of a relative; or to the special private gain or loss of a business associate. Commissioners of community redevelopment agencies under Sec. 163.356 or 163.357, F.S., and officers of independent special tax districts elected on a one -acre, one -vote basis are not prohibited from voting in that capacity. For purposes of this law, a "relative" includes only the officer's father, mother, son, daughter, husband, wife, brother, sister, father-in-law, mother-in-law, son-in-law, and daughter-in-law. A "business associate" means any person or entity engaged in or carrying on a business enterprise with the officer as a partner, joint venturer, coowner of property, or corporate shareholder (where the shares of the corporation are not listed on any national or regional stock exchange}. i In addition to abstaining from voting in the situations described above, you must disclose the conflict: PRIOR TO THE VOTE BEING TAKEN by publicly stating to the assembly the nature of your interest in the measure on which you are abstaining from voting; and WITHIN 15 DAYS AFTER THE VOTE OCCURS by completing and filing this form with the person responsible for recording the min- utes of the meeting, who should incorporate the form in the minutes. • ! � � Although you must abstain from voting in the situations described above, you otherwise may participate in these matters. However, you must disclose the nature of the conflict before making any attempt to influence the decision, whether orally or in writing and whether made by you or at your direction. IF YOU INTEND TO MAKE ANY ATTEMPT TO INFLUENCE THE DECISION PRIOR TO THE MEETING AT WHICH THE VOTE WILL BE TAKEN: • You must complete and file this form (before making any attempt to influence the decision) with the person responsible for recording the minutes of the meeting, who will incorporate the form in the minutes. (Continued on other side) CE FORM 8B -EFF. 112000 PAGE 1 APPOINTED OFFICERS (continued] • A copy of the form must be provided immediately to the other members of the agency. • The form must be read publicly at the next meeting after the form is filed. IF YOU MAKE NO ATTEMPT TO INFLUENCE THE DECISION EXCEPT BY DISCUSSION AT THE MEETING: • You must disclose orally the nature of your conflict in the measure before participating. • You must complete the form and file it within 15 days after the vote occurs with the person responsible for recording the minutes of the meeting, who must incorporate the form in the minutes. A copy of the form must be provided immediately to the other members of the agency, and the form must be read publicly at the next meeting after the form is filed. t �' • � • hereby disclose that on � C.� , 20 � _ (a) A asure came or will come before my agency which (check one) _ inured to my special private gain or loss; inured to the special gain or loss of my business associate, _ inured to the special gain or loss of my relative, ; _ inured to the special gain or loss of , by whom I am retained; or _ inured to the special gain or loss of ,which is the parent organization or subsidiary of a principal which has retained me. (b) The measure before my agency and the nature of my conflicting interest in the measure is as follows: Date Filed Signature NOTICE: UNDER PROVISIONS OF FLORIDA STATUTES §112.317, A FAILURE TO MAKE ANY REQUIRED DISCLOSURE CONSTITUTES GROUNDS FOR AND MAY BE PUNISHED BY ONE OR MORE OF THE FOLLOWING: IMPEACHMENT, REMOVAL OR SUSPENSION FROM OFFICE OR EMPLOYMENT, DEMOTION, REDUCTION IN SALARY, REPRIMAND, OR A C1VIL PENALTY NOT TO EXCEED $10,000. CE FORM 8B -EFF. 1/2000 PAGE 2