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HomeMy WebLinkAboutMinutes Police Pension 07132011 City of Palm Beach Gardens Police Officers' 11 Pension Fund Minutes of the Meeting Held July 13, 2020 The special meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers' Pension Fund was called to order at 9:02 AM by Jay Spencer via RingCentral Video Conference. TRUSTEES PRESENT Jay Spencer, Chairman Brad Seidensticker, Secretary Marc Glass, Trustee Allan Owens, Trustee REPORTS OTHERS PRESENT A.C. Lovingood (Resource Centers) Bonni Jensen (KKJ&L) John McCann (AndCo Consulting) INVESTMENT UPDATE: Mr. McCann informed the Board that as of June 30, 2020 the Plan has a total balance of $99,221,000. Since March 315t, the Plan has earned a return totaling 11.84% for the Quarter. The Plan is now positive 2.34% for Fiscal Year to Date. Mr. McCann stated that he believes that the markets will continue to rally upwards, which will help the Plan get closer to the Assumed Rate of Return. IFM INVESTMENTS: Mr. McCann stated that a letter was sent from IFM Investments inquiring if the Plan wanted to get into the investments about 3-6 months sooner than originally stated in the agreement. Mr. McCann stated that if the Plan wishes to go into IFM Investments early, the Investment Manager is requesting that the Plan responds back in a letter, requesting to be placed into the que early and that the Plan is okay with taking the place of existing investors that wish to exit the Fund. There was a detailed discussion regarding the valuation of the IFM Investment Fund on the quarterly and annual level. Attorney Bonni Jensen Clarified with the Board that IFM Investments is not changing how they valuate the Fund and that there has been no increase in the number of investors that have requested a redemption. Mrs. Jensen also informed the Board that the option being presented to the Board by the Fund is to allow investors that are in the que to add funds into the Investment Fund have the opportunity to be placed into a subgroup within the que that will allow the Fund to use a redemption as a means to allow a waiting investor to purchase the share of the redeeming investor. Chairman Jay Spencer inquired if the Plan would be buying in low, which Mr. McCann confirmed. Mr. McCann asked the Board if they still wish to invest in infrastructure. Secretary Brad Seidensticker inquired if the Plan has seen an increase in Police Officers' filing for retirement. Trustee Marc Glass stated that he has not seen what he calls 'Panic DROPS". The Board then express concerns of a second downturn before September 30t" due to all the unknown factors with how the COVID-19 Pandemic will continue to affect the markets. Mr. McCann agreed with those concerns and did say that a second downturn is a possibility. Mr. McCann stated that with the hesitation of the Board that no changes should be made at this time. Minutes 05-01-2020 Page 1 MELLON: Mr. McCann reviewed the Board's thoughts of being interested in investing $7,000,000 in infrastructure and asked if the Board wanted to go above the original $2,000,000 that was originally decided upon and increasing that amount to $4,000,000. Chairman Jay Spencer stated that he is not opposed to the idea of increasing the investment amount for Mellon; however, he expressed an interest in wanting to see the valuation from IFM Investments before deciding what steps to take next. AMERICAN REALTY VALUE ADD FUND: Mr. McCann reviewed a past discussion regarding the Board's thoughts of going into the American Realty Value Add Fund. Mr. McCann reminded the Board that the fund does contain more risk. Mr. McCann informed the Board that American Realty stated that this fund will not start until sometime next year. Trustee Marc Glass and Trustee Allan Owens both expressed concern and thoughts that the COVID-19 Pandemic will have another spike this fall and that it will be around for a while. Trustee Marc Glass asked Mr. McCann how the other Pension Plans that he is the Investment Monitor on are weathering the storm with the pandemic considering how well positioned the Palm Beach Gardens Police Officers' Pension Plan is. Mr. McCann stated that they are all weathering the pandemic similar to how the Plan is doing. Mr. McCann noted that the 6.75% Assumed Rate of return is one of the main driving factors that has the Plan in a much better position. ATTORNEY REPORT VIRTUAL MEETINGS: Attorney Bonni Jensen informed the Board that the ability to meet virtually has been extended by Governor DeSantis until August 1, 2020. Subsequently, the Governor also extended the State's Emergency Order till September 7, 2020. There is some confusion if this extends the ability to have the Board Meeting virtually through till September 7, 2020 or not. As more information becomes available Mrs. Jensen stated that both herself and Mr. Lovingood will keep the Board updated on the changes. ADMINISTRATOR REPORT AYALA, ROBERT - 2018 MILITARY BUYBACK CALCULATION UPDATE: Mr. Lovingood updated the Board regarding Mr. Ayala's 2018 Military Buyback Calculation. Mr. Lovingood stated that GRS said that they could update the calculation for a cost of $225, which would be half the cost of the normal charge of $450. Trustee Marc Glass explained the situation and with all that had transpired with the original calculation, he feels that the Plan should not charge Mr. Ayala for the calculation update. There was a detailed discussion regarding how the calculations are performed and when a member is charged and when a member is not charged for the calculation costs. It was brought up that when GRS does a calculation, this is done for the total time requested; however, the calculation does not break down the cost per year for the member. The consensus was after reviewing the ordinance, that the Plan does not cover the cost for the first calculation for a buyback. Attorney Bonnie Jensen informed the Board that in this situation the Plan paid for the costs when did should not have; however, the Plan can opt to cover the costs due to how the ordinance was perceived at that time. The Board discussed how they should proceed with this matter resulting in an agreement that the Plan will pay for the recalculation due to the discounted price that GRS agreed to change. Minutes 05-01-2020 Page 2 • Brad Seidensticker made a motion to approve paying for Robert Ayala's Military Buyback recalculation at a cost of $225.00. The Motion received a second from Brad Seidensticker and was approved by the Trustees 4-0. Mr. Lovingood requested clarification if the motion only covers the cost for the update of the original calculation or the recalculation and a breakdown for each year. The Board stated that the motion is to only cover the recalculation only. Any additional breakdowns would be at the cost of the member. COMMERCIAL MULTI -PERIL POLICY RENEWAL: Mr. Baur informed the Board that the Payment Verification Process has been delayed due to the COVID-19 Pandemic. Once the Pandemic subsides to a more comfortable level, The Resource Centers will move forward with the planned Payment Verification Process. Mr. Lovingood informed the Board that he had nothing else to report; however, since the inquiry came up regarding members entering and exiting the DROP, Mr. Lovingood gave an update on those figures for the Board. Mr. Lovingood also informed the Board that he learned that there was a list that was once given to the Board that indicated all of the members who are in the DROP for information purposes and that he is working on updating that list for the next Board Meeting. Mr. Lovingood also reported to the Board that he has noticed a decrease in the number of DROP Distribution requests from members as compared to the same time last year for the Plan. OTHER BUSINESS There was no other business to discuss at this time. PUBLIC COMMENTS There were no public comments. ADJOURN There being no further business, the Trustees officially adjourned the meeting at 10:20 AM. The next meeting is scheduled for Thursday, September 10, 2020 at 9:00 AM. Respectfully submitted, Brad Seidensticker, Secretary Minutes 05-01-2020 Page 3