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