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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
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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.
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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.
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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
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