HomeMy WebLinkAboutMinutes Fire Pension 011310PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND
MINUTES OF MEETING HELD
January 13, 2010
A special 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
Tom Murphy (9:20 A.M.)
Rick Rhodes
Ed Morej on
Donna Wisneski
Roy 011iff (9:15 A.M.)
OTHERS
Margie Adcock, Administrator
Ken Harrison, Attorney (via teleconference)
Peter Bergel, Fire Chief
Allan Owens, Finance Director
DISCUSSION ON REQUEST BY THE UNION FOR AN ACTUARIAL STUDY
It was noted that the Union made a request for an actuarial study on the impact of the fire
services merging with Palm Beach County Fire Rescue. Mr. Morejon stated that he
asked Chief Bergel to appear before the Board to discuss the current proposal. Chief
Bergel appeared before the Board. He stated that the City was entertaining a proposal by
Palm Beach County Fire Rescue (PBCFR) to provide fire services. He stated that the
parties are proceeding in these discussions. He stated that he was advised that a study
needed to be done in order to get a true cost proposal. He advised that the City has no
problem with the study being done. However, the City is not willing to incur any cost for
the study due to the fact that they are just entertaining a proposal from PBCFR. He stated
that the City was approached to look at a merger and he thinks it is smart to look at the
possibility of a merger. He noted that the City is scheduled to meet again in February
with PBCFR with an outline of their proposal.
Chief Bergel departed the meeting.
Ken Harrison appeared via teleconference.
Mr. Morejon stated that he called a special meeting today because he received a request
from Mike Mayo, President of the Union, to have an impact study done on a potential
merger of fire services with the County. Mr. Harrison stated that there was no problem
with the request. He noted that the Florida Statutes have certain requirements if there is
going to be a merger, such as the costs associated with a merger. He stated that this is an
issue that has been discussed around the State in the past year and a half. He stated that if
the City terminates the Plan there is a liability that flows to them because everyone
becomes vested at the time of termination and the employer has to fund the present value
of that going forward. He stated that it is reasonable to request that such a study be done.
The only question he had was that the letter requested a poll be done by the Fund. He
stated that he was not sure why such a poll would not be done by the Union. It would
make more sense for the Union to do the poll. Mr. Harrison noted that in some instances
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he has seen a fund authorize the actuary to do the study but with the union paying for the
study. He stated that if there were serious consideration of such a merger, the study
would need to be done anyway.
Roy 011iff entered the meeting.
There was discussion on Participant education related to the poll. Mr. Harrison stated
that the Statute requires a vote. There was concern expressed that the Participants
understand what they are voting on so that they can make an informed decision. It was
noted that if the City were seriously considering this, then the Board would have the
Actuary and Attorney discuss the issues with the Participants. The Board cannot mandate
that Participants attend educational sessions, but such sessions can be made available.
However, it was noted that there is no obligation to do anything prior to a vote.
Tom Murphy entered the meeting.
There was discussion that the study is dependent on the poll, so it should be as accurate
as possible. Mr. Harrison stated that the study is nothing more than an estimate. A survey
might help make it more accurate. The Board asked if it would be appropriate to provide
some broad education before the poll. Mr. Harrison stated that it would be appropriate.
Ken Harrison departed the meeting.
Allan Owens appeared before the Board. He stated that about a year and a half ago the
City engaged Bolton Partners to do an actuarial study. He stated that Bolton came back
with recommendations of projections and assumptions of future costs based on different
rates of return. He noted that the cost of the study was split with the City. There was a
lengthy discussion. Mr. Rhodes stated that he was fine with providing some broad basic
education. He thought the Union should do the polling as long as they are given the
information needed for the poll in order to find out what the actuarial cost would be of a
merger. He also felt that if the Union was requesting the study then the Union should pay
50% of the cost, especially since the Board required the City to pay 50% when the City
requested a study. Mr. Morejon noted that there was interest on all sides. The City is
interested, the Union is interested and the firefighters voted to move forward. Everyone
feels it is worthwhile to get the cost of a merger from PBCFR, and the cost will depend,
in part, on the pension part.
Roy 011iff departed the meeting.
There was further discussion on educating the Participants. A motion was made,
seconded and carried 4 -0 to allow the Union to conduct a straw poll but that such poll be
reviewed and authorized by Ed Morejon prior to the poll, with Participants being given
an informational packet at least one week prior to the poll and be advised that it is just an
informal straw poll. A motion was made, seconded and carried 4 -0 to authorize an
actuarial study following the scope of the Union's letter requesting the study, not to
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exceed $10,000 to be split with the Union, as long as the Union agrees beforehand that
they will split the cost so the Fund cost would not exceed $5,000.
OTHER BUSINESS
Mr. Murphy discussed the DROP investments and stated that he thought that the Board
needed to look at a self - directed plan to set up for DROP investments. There was a
lengthy discussion. It was noted that the DROP Participants currently have a choice of
keeping the money commingled with the Plan or in a stable value investment. Mr.
Murphy stated that he thought the Participants should be given an option to take risk if
they wanted to earn more if there was no cost to the Plan.
Roy 011iff re- entered the meeting.
The Board decided to have further discussion on the possibility of self - directed DROP
investments at the next meeting when the Investment Monitor would be in attendance.
There being no further business, the meeting adjourned.
Respectfully submitted,
Tom Murphy, Secretary