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.
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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.
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• 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
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