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HomeMy WebLinkAboutMinutes Fire Pension 100410PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND MINUTES OF MEETING HELD October 4, 2010 A special meeting of the Board of Trustees was called to order at 9:06 A.M. at Council Chambers, Palm Beach Gardens, Florida. Those persons present were: TRUSTEES Tom Murphy Roy 011iff Ed Morej on Donna Wisneski Rick Rhodes ATTORNEY REPORT OTHERS Margie Adcock, Administrator Pedro Herrera, Attorney Mr. Herrera discussed the proposed IRS Ordinance. He stated that there are certain provisions in the IRC that must be included in plans that are seeking a tax -free qualification. He stated that for the most part the proposed Ordinance deals with the 415 limits. He reviewed the proposed Ordinance. There was discussion on providing assistance to the City Attorney in understanding the IRS changes, either verbally or by some sort of tutorial in case he is not completely familiar with these specific provisions of the IRC. There was a lengthy discussion on the 415 limits. Mr. Herrera stated that he received the impact statement from the Actuary advising that there is no impact. He stated that he would need to file for the determination letter with the IRS by January 31, 2011. He stated that he feels comfortable that he can complete the process to file in 4 to 6 weeks. A motion was made, seconded and carried 5 -0 to approve the proposed IRS Ordinance in order to facilitate the receipt of a determination letter from the IRS and process to obtain such letter. Mr. Herrera stated that he would provide a copy of the proposed IRS Ordinance to the City. There was discussion on the presentation to the City. It was noted that it should be stressed that the IRS Ordinance is not changing any of the provisions in the Plan but is rather just a compliance Ordinance. OTHER BUSINESS Mr. Murphy stated that he was directed at the last meeting to have a discussion with Mr. Baur on the online calculator and a checklist that could be provided to Participants in the Plan. Mr. Murphy stated that he did meet with Mr. Baur and they worked out the details of a checklist. He provided the checklist to the Board for review. The Board reviewed the document and there were some additional changes noted that should be made. Mr. Murphy stated that he also talked to Mr. Baur regarding the online calculator. He advised that in speaking with Mr. Baur, it was determined that the online calculator was set up based on information from the City which used an hourly rate at 80 hours versus 96 hours. Also, the payroll from the City is base pay and does not include any incentives or overtime. Mr. Baur talked to the programmer and it was estimated that it would cost about $200 to make the changes needed to get the calculations closer to a more accurate number. Mr. Murphy stated that he did have a problem paying the $200 as he thinks it should have been set up this way from the beginning. The Board agreed that it should 2 not have to pay for the reprogramming of the online calculator. Ms. Adcock noted that she would advise Mr. Baur of the Board's unwillingness to pay the fee associated with reprogramming the online calculator. Ms. Adcock discussed an issue regarding buyback of service in the Fund. She noted that in 2001 the actuary at the time had prepared a buyback grid that could be used by participants to determine an approximate cost of buying back service at a 2.75% multiplier. She advised that she received a call from a prospective employee and inquired if the Board wanted to ask the current Actuary to update the grid to take into account the 3% multiplier and any other changes associated with the calculation. There was a lengthy discussion. The Board found no reason to do anything regarding this matter at this time. The Board discussed the status of the disability review process regarding Kevin Mitchell. It was noted that Mr. Mitchell was sent a third letter advising exactly what needed to be provided. There was discussion on a subsequent voice message left by Mr. Mitchell and what the Board's response, if any, should be. The Board directed the Administrator to call Mr. Mitchell and advise that his message was received and the Board is still waiting for a doctor's letter by October 15'. Ms. Adcock stated that the Intercontinental agreement was finalized and that the account was funded in full. Mr. Herrera stated that there needed to be an Amendment to the current agreement with American Realty. He asked for one minor change to the Amendment and has not yet received that change. There being no further business, the meeting adjourned. Respectfully submitted, Tom Murphy, Secretary