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HomeMy WebLinkAboutMinutes Fire Pension 072009PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND MINUTES OF MEETING HELD July 20, 2009 A meeting of the Board of Trustees was called to order at 9:00 A.M. at Council Chambers, Palm Beach Gardens, Florida. Those persons present were: TRUSTEES OTHERS Tom Murphy Margie Adcock, Administrator Rick Rhodes Bob Sugarman, Attorney Ed Morejon Roy 011iff Mr. Morejon stated that Mr. Hitchins mentioned to him a couple weeks ago that he could no longer be a part of the Board as he was having scheduling problems. It was noted that Mr. Hitchins had not submitted a resignation letter as of yet. it was noted that his term was up October 1, 2009. MINUTES The Board reviewed the minutes of the meeting held May 18, 2009. A motion was made, seconded and carried 4 -0 to accept the minutes of the meeting held May 18, 2009. ATTORNEY REPORT Mr. Sugarman discussed the progress with TALF. He stated that Mr. Bogdahn did a fine job of getting all of the pension attorneys in the State together to try and make it work. After a long effort, they were unable to get the necessary protections in the contract with PIMCO because PIMCO would not agree to fiduciary duty to the same extent the other investment managers have. Mr. Sugarman stated that it seemed to him that the attractiveness of the investments in TALF has seemed to diminish. Mr. Sugarman provided a proposed Ordinance. He discussed the changes to the Florida Statutes such as the divestiture in certain securities and changes related to the joint annuitants. It was also noted that trustee terms could be increased from two years to four years. There was discussion on the advantages and disadvantages of increasing the trustee terms. A motion was made, seconded and carried 4-0 to seek to increase the trustee terms from two to four years. It was noted that the law changed to increase the exposure in international investments to 25 %. It was noted that Mr. Bogdahn had recommended increasing the allocation to international once available. It was noted that the PPA permitted retirees who purchase health insurance from the City or Union to be able to deduct up to $3,000 a year from taxable income. The State took out the requirement that the insurance had to be bought from the City or Union. Mr. Sugarman stated that all of the changes in the law are reflected in the proposed Ordinance. The proposed Ordinance also provides for a DROP account investment option of a 3% fixed versus the variable amount. Mr. Morejon asked if the distribution of the 50% of the Share Account upon request had to be in the Ordinance. Mr. Sugarman stated that it did not need to be in the Ordinance as it is a Policy of the Board. There was further discussion on the proposed Ordinance. A motion was made, seconded and carried 4-0 to approve the proposed Ordinance as presented. 2 Chief Bergel appeared before the Board. He discussed the issue of communication regarding his being in the DROP. He stated that he had not received anything in writing advising that he was actually in the DROP or what his interest earnings were. Ms. Adcock advised that Mr. Berge] made his benefit election for the DROP and understood he had a copy of that. It was noted that the Board had originally decided to do annual DROP statements in conjunction with the Share Account statements. There was further discussion. A motion was made, seconded and carried 4-0 to authorize the Actuary to prepare quarterly DROP statements and authorize the Administrator to obtain information from the Custodian on the money market account. Mr. Sugarman reported on the changes in the IRS federal withholding and the effect of that on retirees. He stated that some retirees might find that they have under withheld at the end of the year. He stated that the Board could do nothing; take away what was given in April; or notify the retirees of the increase. A motion was made, seconded and carried 4-0 to notify the retirees of the possible under withholding if the Custodian has not done so already. Mr. Morejon discussed the attendance of the Investment Monitor. He stated that when the Board meetings were changed to bimonthly meetings, the Board was put in a situation where the Investment Monitor is not always present at the meetings. He stated that he thinks Mr. Bogdahn is an important part of the team and needs to be at all of the meetings. It was noted that there is an extra $300 per meeting charge for meetings beyond one in a quarter. A motion was made, seconded and carried 4-0 to have the Investment Monitor attend all meetings and pay the additional charge if necessary. NMOSTRATIVE REPORT Ms. Adcock presented the list of disbursements to be made. A motion was made, seconded and carried 4 -0 to approve the disbursements listed. It was noted that Mr. Rhodes used the web to obtain a lower rate on a hotel reservation than was available if dealing with the hotel directly using the conference discount. However, taxes were charged through the web. Mr. Sugarman stated that it was acceptable to pay taxes going through the web as long as the amount of the bill is lower than booking through the hotel directly. There was discussion on the City Trustee terms, which are due to expire on October 1, 2009. A motion was made, seconded and carried 4-0 to recommend that City Council reappoint Tom Murphy for another two year term commencing upon expiration of his current term. OTHER BUSINESS There being no further business, the meeting adjourned. Respectfully submitted, Tom Murphy, Secretary