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
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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