HomeMy WebLinkAboutMinutes Police Pension 042910City of Palm Beach Gardens Po /ice Officers'
Pension Fund
Minutes of the Meeting Held
APRIL 29, 2010
The regular meeting of the Board of Trustees of the City of Palm Beach Gardens
Police Officers' Pension Fund was called to order at 8:56 AM by Wayne Sidey in the
Council Chambers at the Palm Beach Gardens City Hall at 10500 North Military Trail,
Palm Beach Gardens, Florida.
TRUSTEES PRESENT
OTHERS PRESENT
David Pierson, Secretary
Audrey Ross (Resource Centers)
Wayne Sidey, Trustee
Bonni Jensen (Law Offices of Perry & Jensen)
Brad Seidensticker, Trustee
Steve Stack (ICC Capital Management)
Jules Barone, Trustee
Ray Ellis (PBG Clerk's Office)
John McCann (Thistle Asset Consulting)
SEPTEMBER 30, 2009 ACTUARIAL VALUATION REPORT
Gabriel, Roeder, Smith & Company — Presented by Steve Palmquist
Mr. Palmquist stated that the Fund had an Actuarial gain this fiscal year of $137,951.
He commented that out of the 45 valuations that he has already done this year, this
was the second or third fund that had a gain for the year and not a loss. The
Actuarial gain has decreased the Employer contributions from $3.9M to $3.8M. Also
the Plan's funded ratio increased from 53.4% to 56.2 %. Mr. Palmquist explained
that with the changes they made 3 years ago to the plan it caused their funded ratio
to drop, but since then it has gone up every year.
He reported that the Plan received $412,644 in State contributions for the fiscal
year, which is $34K more than last year. The additional $34K will be held in a
reserve account for additional benefits. Mr. Palmquist reported that another factor in
the gain was due to the payroll decrease in 2009 in which they did not expect. There
were two less officers this year and there are more normal retirements and less
disability retirements which is always beneficial to the Plan.
Mr. Palmquist reviewed the unfunded liability and stated that as of the end of the
fiscal year the unfunded amount was at $28M. He also stated that with the asset
smoothing method it recognized a return of 4.4 %, but the Fund would assume 7.5 %.
The administration expenses slightly increased this year compared to last year, and
the DORP accounts have increased from $451K to $1M due to more members
entering the DROP.
The Board discussed how the Plan will be affected since more members are entering
the DROP and not contributing to the pension plan anymore. Mr. Palmquist stated
that the employee and employer contribution would offset any slack because the pay
salaries would also decrease.
MOTION: Mr. Barone made a motion to approve the September 30, 2009
Actuarial Valuation Report as presented by Gabriel, Roeder,
Smith & Company.
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SECOND: Mr. Seidensticker seconded the motion.
CARRIED: The motion carried unanimously 4 -0.
INVESTMENT MANAGER REPORT
ICC Capital - Presented by Steve Stack
Mr. Stack reported that both stocks and bonds have rallied within the quarter. He
gave the Board an update on the current market environment and stated that ICC
likes the technology and materials sectors and they also think the dollar will only get
weaker. Mr. Stack commented that they are still buying and selling the Build
America Bonds which are doing great. Within the quarter Corporates did better then
Treasuries and value did better then growth.
Mr. Stack reviewed the funds performance for the quarter ending March 31, 2010.
The fixed income portfolio gained $258,518 throughout the quarter and had 94.8%
in fixed income and 5.2% in cash. The total fund outperformed the index at 1.87%
versus 1.78 %, and the bonds also outperformed at 2.04% versus 1.78 %. The
growth portfolio also had a gain of $258,026 and had 93% in equities and 6.1% in
cash. It was also a good quarter for the growth side as well because the total fund
outperformed at 4.91% versus 4.65 %, and the equities outperformed the index at
5.07% versus 4.65 %.
INVESTMENT CONSULTANT REPORT
Thistle Asset Consulting - Presented by Brendon Vavrica
Mr. McCann reviewed the compliance checklist and stated that as far as the total
fund we are inline with the policy except for the trailing 3 year period in which they
are behind. As far as the equity side we are inline with all the policies, but on the
fixed income side we are lagging on the 3 and 5 year trailing periods.
For the quarter ending March 31, 2010 there was 61% in equities, 36% in fixed
income and 3% in cash. The total fund was slightly behind for the quarter at 4.16%
versus the benchmark at 4.37 %. The total equities outperformed at 5.93% versus
5.64 %, and the total fixed income also outperformed at 1.96% versus 1.78 %. Mr.
McCann then reviewed each Manager's performance for the quarter:
Rhumbline S &P 500 - They were almost inline with the index at 5.38% versus
5.39 %.
Rhumbline S &P 400 - Slightly behind at 9.02% versus 9.09 %, but they are
still ranked in the 1st percentile.
Rhumbline S &P 600 - Also behind at 8.52% versus the index at 8.61 %.
ICC Large Cap Growth - Had a great quarter and outperformed at 5.08%
versus 4.64 %.
International Equity - It was a great quarter for this fund. They
outperformed at 2.82% versus .94 %.
Mr. McCann stated that he does not make any recommendations at this time to
rebalance the portfolio. He also reviewed the Vanguard accounts and commented
that they all did great.
Mr. McCann briefly reviewed the change he made to the Investment Policy Guidelines
regarding the scrutinized companies.
MOTION: Mr. Sidey made a motion to approve the revised Investment
Policy Guideline as presented.
SECOND: Mr. Pierson seconded the motion.
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CARRIED: The motion carried unanimously 4 -0.
Lastly, Mr. McCann reviewed his presentation that he had regarding alternative
investments. He reviewed the different scenarios reflecting what the portfolio would
look like when they add in different asset classes such as real estate, international
bonds and others. The Board discussed the different options and were leaning
towards adding in some International Bonds. Mr. McCann stated that he would
recommend the fund go into commingled funds if they were going to add some
International bonds because the fee is usually lower and they don't require a
minimum amount to be able to get into the investment. He stated that he can do a
full blown Manager search and bring it back to the Board.
MOTION: Mr. Seidensticker made a motion to authorize Mr. McCann to do
a full blown Manager search regarding International Bonds.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 4 -0.
ATTORNEY REPORT
Law Offices of Perry & Jensen - Presented by Bonni Jensen
Ms. Jensen notified the Board that all the amendments passed and she will have the
revised SPD available at the next meeting to be reviewed.
Mr. Jensen commented that GRS will do an impact statement regarding the City's
buyout they are going to offer.
Ms. Jensen reminded the Trustees' that their form 1 disclosures are due by July 1,
2010.
Ms. Jensen updated the Board on the State Legislative session and commented that
no bills passed that would impact 175 or 185 plans. The only changes that passed
were in regards to the FRS.
Ms. Jensen explained that there is a table in the DROP distribution policy which
shows how to avoid the 10% penalty on taking monthly withdrawals, but she stated
that we can not use this table and that an individual calculation would have to be
completed by the Actuary in which the member would have to pay for.
MINUTES
MOTION: Mr. Pierson made a motion to approve the minutes from the
January 27, 2010 regular meeting as amended.
SECOND: Mr. Seidensticker seconded the motion.
CARRIED: The motion carried unanimously 4 -0.
ADMINISTRATOR REPORT
Resource Centers — Presented by Audrey Ross
N/A
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DISBURSEMENTS APPROVALS
MOTION: Mr. Seidensticker made a motion to approve the
disbursements.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 4 -0
BENEFIT APPROVALS
MOTION: Mr. Sidey made a motion to approve the applications to enter
the DROP for Donald Ammon, Michael Rispoli, Paul Leffler Sr.
and Sheree Brown.
SECOND: Mr. Seidensticker seconded the motion.
CARRIED: The motion carried unanimously 4 -0
MOTION: Mr. Sidey made a motion to approve the applications to exit the
DROP for David O'Neill and Ed Vistein.
SECOND: Mr. Seidensticker seconded the motion.
CARRIED: The motion carried unanimously 4 -0
MOTION: Mr. Sidey made a motion to approve the application for a
distribution of DROP account for Ronald Council.
SECOND: Mr. Seidensticker seconded the motion.
CARRIED: The motion carried unanimously 4 -0
MOTION: Mr. Sidey made a motion to approve the application for a
refund of contributions for Brent Palmer.
SECOND: Mr. Barone seconded the motion.
CARRIED: The motion carried unanimously 4 -0
MOTION: Mr. Sidey made a motion to approve the application to enter
the DROP for Jules Barone.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried 3 -0 (Mr. Baron withstand from the vote).
FINANCIAL STATEMENTS
The board reviewed and discussed the financial statements that were provided
through March 2010.
The board received and filed the financial statements through March 2010.
OLD BUSINESS
N/A
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OTHER BUSINESS
Ms. Ross presented the Annual Report to the Board to be signed and she stated that
she will send it off to the State.
AJOURN
There being no further business, and the future meetings are scheduled for the last
Thursday of the first month of the quarter. The next regular meeting was scheduled
for Thursday July 29, 2010 at 9AM; the Trustees officially adjourned the meeting at
10:18AM.
Respectfully submitted,
DAVID PIERSON, Secretary
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