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HomeMy WebLinkAboutMinutes Police Pension 09182011 City of Palm Beach Gardens Police Officers' 11 Pension Fund Minutes of the Meeting Held September 18, 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 REPORT: McCann reported that for the quarter ending June 30, 2020, the Plan earned a net gain of 13.12% compared to the benchmark of 14.390/0. The one-year trialing returns were 3.41% compared to the benchmark of 4.53%, the three-year return was 6.43% versus the benchmark of 7.13%, and the five-year return was 6.72% compared to the 7.42% benchmark. Since inception, the Plan has had a net investment return of 7.49%. Mr. McCann then reviewed how each manager in the Plan is doing, noting that IRM and American Real Estate will not to a capital call request until March 31, 2021 or later. Mr. McCann stated that the Plan is focused on the long term and that is where the Plan should keep its focus in the current environment; however, the rapid V-shaped rebound from March was a very welcoming sight to see and something that nobody could have predicted. HIGHLAND CAPITAL: Mr. Stack started his presentation by informing the Board that he had been working with Mr. McCann and Mrs. Jensen to offer the Plan a lower fee structure for the Fixed Income Fund with Highland Capital. Mr. Stack stated that the fee will go down to 0.205%, which would equate to a $30,000 reduction in fees. Chairman Jay Spencer expressed that he always welcomes any form of savings offered for the Plan and asked if any of the Trustees had any questions. The Board Had no questions for Mr. Stack. Marc Glass made a motion to approve the new fee structure for the Highland Capital Fixed Income Fund of 0.25%. The Motion received a second from Allan Owens and was approved by the Trustees 5-0. Mr. Stack then compared the US Treasuries, Aaa, and Baa Corporate Bonds and the benefits of investing into the Baa sector when rates increase, noting that Baa Bonds offer more yield. The risks of the U.S. Treasuries, Aaa, and Baa Corporate Bonds were then reviewed with the Board. Mr. Stack stated that this is something that he wanted to bring before the Board as something to consider doing down the road. There was a lengthy discussion regarding the pros and cons of investing in the Baa Corporate Bond Market with Mr. McCann informing the Board that he is comfortable with how things are setup at the moment in addition to most of the funding requests Minutes 05-01-2020 Page 1 for the Plan are taken from Fixed Income. After further discussion, the Board opted to take a second look at the Baa Corporate Bonds at a later time. ATTORNEY REPORT JENSEN MEMO - CANCER PRESUMPTION: Attorney Bonni Jensen reviewed the Issues Relating to Disability Applications from Firefighters Utilizing the Cancer Presumption in Florida Statute 112.1816 Memo with the Board. Attorney Kaufman reviewed the interpretation of the law which has been determined to include cancer diagnosis before the Cancer Presumption Law was passed. JENSEN MEMO - FEDERAL BENEFITS FOR COVID DEATHS AND DISABILITIES: Mrs. Jensen reviewed the Safeguarding America's Frist Responders Act of 2020. This new law provides presumptive line -of duty death and disability benefits to qualifying police officers and firefighters because of contracting COVID-19. IRS ORDINANCE DRAFT: Mrs. Jensen presented the Board with the IRS Ordinance Draft for Board approval. Mrs. Jensen reviewed the changes that were made to be complainant with the current IRS Tax Code. There was short discussion regarding how the MuniCode would be updated, which Mrs. Jensen explained to the Board. Allan Owens made a motion to approve the IRS Ordinance as presented. The Motion received a second from Marc Glass and was approved by the Trustees 5-0. ADMINISTRATOR REPORT COMMERCIAL MULTI -PERIL POLICY RENEWAL: Mr. Lovingood presented the Board with the proposed 2021 Meeting Dates. Mr. McCann requested that the March Meeting Date be changed as he will be away at an annual Summit Convention. After a brief conversation between the Trustees and all Service Providers that were Present, the March Meeting Date was changed to March 9, 2020. DROP PARTICIPANT LIST: Mr. Lovingood presented the Board with a DROP Participant List that was once provided to the Board in the past. Mr. Lovingood requested that the Trustees look at the DROP Participant List and to let him know if there is any additional information that they would like to be reflected on the next report. ANNUAL BENEFIT STATEMENTS: Mr. Lovingood informed the Board that he just received the 10-01-2019 Annual Benefit Statements. Mr. Lovingood stated that he had reached out to GRS regarding the delay in receiving the statement. GRS had informed Mr. Lovingood that the Annual Benefit Statements were delayed due to their workforce moving to a remote working environment. Marc Glass and Greg Mull requested that Mr. Lovingood contact GRS to find a solution to the recent significant delays and see what can be done to get things back on track. Marc Glass also inquired on the status of the 2019 Share Statements. Mr. Glass noted that the last statement that was uploaded was the 2018 Share Statements. Mr. Lovingood informed the Board that he will investigate that issue and get it corrected. Minutes 05-01-2020 Page 2 OTHER BUSINESS BANKRUPTCY NOTICE: Mr. Lovingood informed the Board that he received a bankruptcy filing in the mail yesterday afternoon and forwarded the document to Bonni Jensen's office to review. Mrs. Jensen informed the Board that PG&E has filed bankruptcy and the reason for receiving a copy of the bankruptcy filing is due to the Plan having investments in this company. 175 PREMIUM TAX DOLLARS: Mrs. Jensen informed the Board that the 175 Premium Tax Dollars for this year is $100,000 less than it was last year. Mrs. Jensen stated that she is going to make an inquiry on why the amount decreased at the amount that it did and will follow up with the Board once the reason for the difference is explained. ANNUAL AUDIT: Chairman Jay Spencer noted that last year's audit went just as planned to meet the City's requested deadline so that they could complete their annual audit on time and requested that Mr. Lovingood work with Allan Owens to ensure that the Plan is able to meet these requirements again this year. MINUTES The July 13, 2020 Special Meeting Minutes were presented in the Trustee packets for review. • Allan Owens made a motion to approve the July 13, 2020 Special Meeting Minutes as presented. The Motion received a second from Marc Glass and was approved by the Trustees 5-0. DISBURSEMENTS The Disbursements through September 18, 2020 were presented in the Trustee packets for review. • Marc Glass made a motion to approve the Disbursements as amended. The Motion received a second from Brad Seidensticker and was approved by the Trustees 5-0. FINANCIAL STATEMENTS The interim financial statements through July 2020 were provided for informational purposes. BENEFIT APPROVALS The Benefit Approvals for September 18, 2020 were presented in the Trustee packets for review. • Greg Mull made a motion to approve the Benefit Approvals as presented for September 18, 2020. The Motion received a second from Allan Owens and was approved by the Trustees 5-0. PUBLIC COMMENTS There were no public comments. Minutes 05-01-2020 Page 3 ADJOURN There being no further business, the Trustees officially adjourned the meeting at 10:21 AM. The next meeting is scheduled for Thursday, December 10, 2020 at 9:00 AM. Respectfully submitted, Brad Seidensticker, Secretary Minutes 05-01-2020 Page 4