Loading...
HomeMy WebLinkAboutMinutes Fire Pension 012411PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND MINUTES OF MEETING HELD January 24, 2011 A 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 Rick Rhodes Ed Morej on Mark Joyce WELCOME NEW TRUSTEE OTHERS Margie Adcock, Administrator Pedro Herrera, Attorney Joe Bogdahn, Investment Monitor Steve Gordon, Auditor The Board welcomed new Trustee Mark Joyce. It was noted that Mr. Joyce replaced the position previously held by Roy 011iff. MINUTES The Board reviewed the minutes of the meeting held November 8, 2010. A motion was made, seconded and carried 4 -0 to accept the minutes of the meeting held November 8, 2010. PUBLIC COMMENTS Chief Bergel addressed the Board. He stated that he had two matters he would like to raise before the Board. First, he asked the Board for written confirmation that he was actually in the DROP. He noted that he has been getting quarterly DROP Statements of his account, but stated that he would like to have something further in writing advising that the Board actually approved his Application for the DROP. Second, he requested that the Board look into a self directed option for the DROP. Mr. Herrera advised Chief Bergel that the Board has tried to institute a self directed option for the DROP at various times. He stated that it is not within the Board's authority to institute such an option. Rather, the City needs to amend the Ordinance to allow for such an option and the City has chosen not to do that. There was a lengthy discussion. Chief Bergel stated that he would meet with the City Manager to see if he could assist the Board in moving this matter forward within the City. There was discussion on the ability to provide financial counseling to Participants considering retirement. Mr. Herrera stated that they advise their clients not to give such advice. It was noted that the Board provides various forms, which clearly explain what options are available. It was also noted that the Administrator has conducted several seminars in the past discussing the benefits under the Plan as well as the on -line calculator. It was noted that these seminars have not been well attended in the past. A motion was made, seconded and carried 4 -0 to have the Administrator, after the Board has approved a benefit election, send a letter to the Participant confirming Board approval of their retirement or DROP application and benefit election. ANNUAL AUDIT Steve Gordon appeared before the Board to present the audit for the period ending September 30, 2010. He stated that he did speak with Ms. Wisneski regarding the audit. She had some suggestions and he incorporated those he agreed with. He noted that most of the changes made were titling changes and were not substantive and did not affect the 2 actual numbers. Mr. Gordon stated that he was issuing a clean unqualified opinion. He reviewed the Statement of Plan Net Assets. The total assets of the Fund as of September 30, 2010 were $34,647,786 almost all of which were in investments. Total liabilities were $301,118. Total net assets of the Fund as of September 30, 2010 were $34,346,668. Mr. Gordon reviewed the Statement of Changes in Plan Net Assets. He reported that the total contributions to the Fund were $4,803,312. The total additions were $7,163,277 and total deductions were $656,558. The net increase in Plan net assets was $6,506,719. Mr. Gordon reviewed the schedule of administrative expenses. There was discussion on the materiality level of the Fund versus that of the City. Mr. Gordon reviewed the notes to the financial statements. It was noted that Ms. Wisneski, in anticipation of her absence today, forwarded written comments to the Administrator to provide to the Board at this meeting. Mr. Herrera stated that there was no problem with accepting her comments as part of the record. Ms. Wisneski was not voting by proxy or taking any action. She was simply providing her comments, which does not impose any legal problem nor violate the Sunshine Law in any way. It was noted that the Board had previously asked Ms. Wisneski to work with Mr. Gordon related to the Audit and report back to the Board. A motion was made, seconded and carried 4 -0 to accept the Audit for the period ending September 30, 2010. Steve Gordon departed the meeting. INVESTMENT MONITOR REPORT Joe Bogdahn appeared before the Board. He discussed the market environment. He reviewed the performance of the Fund as of December 31, 2010. The total market value of the Fund as of December 31, 2010 was $36,478,829. The Fund was up 6.13% net of fees for the quarter. The total equity portfolio was up 10.14% while the benchmark was up 10.86 %. The total domestic equity portfolio was up 10.77% while the Russell 3000 was up 11.59 %. The Dana core equity portfolio was up 10.73% for the quarter while the S &P 500 was up 10.76 %. The Dana growth equity portfolio was up 10.71% for the quarter while the Russell 1000 Growth was up 11.83 %. The total international portfolio was up 8.38% while the benchmark was up 6.65 %. The international portfolio managed by RBC Global was up 9.82% and the international portfolio managed by Manning & Napier was up 6.79% for the quarter while the EAFE was up 6.65 %. The total fixed income portfolio was down .70% for the quarter while the benchmark was down .75 %. Agincourt was down 1.15% for the quarter while the benchmark was down 1.30 %. DHJ fixed income was down .27% for the quarter while the benchmark was down .75 %. The real estate portfolio managed by American Realty was up 3.71 %. Mr. Bogdahn presented a total equity portfolio review. He stated that the Dana core product has a value tilt. The Dana growth product is growth with a core tilt. As such, there is a fair amount of overlap with the process. He provided four options of blended allocations for the equity portfolio. He noted that two consistent opportunistic funds are Rockwood Strategic Equity and ICC Multi cap equity. There was a lengthy discussion on the assumed rate of return. The Board was concerned with why other plans might have met their assumption this past fiscal year while this Fund did not. Mr. Bogdahn explained that other plans are taking more risk. Mr. Bogdahn reviewed the trailing performance returns through December 31, 2010 for the 1, 2, 3, 5 and 7 year time periods with the four options of blended allocations for the equity portfolio. He reviewed the calendar year performance since 2003 with the four options. He also reviewed the rolling 3 -year returns as well as the risk and reward components. There was a lengthy discussion. Mr. Bogdahn noted that the Fund would have a little more volatility if they had ICC or 3 Rockwood. He stated that he would recommend that the Board at least invite ICC and Rockwood to make a presentation to the Board. He stated that he thinks these two managers would blend the best with Dana's core product. The Board discussed whether they wanted to look at any other options. It was determined that the Board was comfortable with Mr. Bogdahn's recommendation. A motion was made, seconded and carried 4 -0 to invite Rockwood and ICC to make a presentation to the Board. CITY'S REQUEST FOR BOARD PARTICIPATION The Board was provided with a letter dated January 18, 2011 from the City Manager requesting Board participation regarding the unfunded liability of the Plan. There was a lengthy discussion. There was discussion on having a special meeting with the City to discuss the history of the Plan, which meeting should include the Actuary and the Monitor for the Fund. The Board discussed sending a letter to the City to request a workshop with the City Council. A motion was made, seconded and carried 4 -0 to direct the Chair to send a letter to the Mayor requesting a special meeting with the City. ATTORNEY REPORT Mr. Herrera discussed the status of the proposed IRS Ordinance. He stated that he did not have an update on where the proposed Ordinance was at in terms of getting before City Council. He stated that they have filed for the IRS Determination Letter. He stated that there is no requirement that the Ordinance has to be passed before filing for the IRS Determination Letter. Rather, the requirement is that the Ordinance has to be in progress. Mr. Herrera provided the responses to the RFP for administrative services. He stated that he sent the RFP to six firms and received three responses. It was noted that the Board has reviewed each of the contracts for the various service providers to make sure that the Board is doing its due diligence and getting what is needed for the Plan and the members. There was a lengthy discussion. It was noted that the current Administrator is local and has had a longstanding relationship with the Fund. A motion was made, seconded and carried 4 -0 to approve renewing the services of the Pension Resource Center as provided in the response to the RFP. Mr. Herrera stated that he would draft an updated contract for the Chair to sign. ADMINISTRATIVE REPORT Ms. Adcock presented the list of disbursements to be made. A motion was made, seconded and carried 4 -0 to approve the disbursements listed. Ms. Adcock presented the Board with the benefit calculation and election for Christopher Brown. A motion was made, seconded and carried 4 -0 to approve the benefit election. OTHER BUSINESS There being no further business, the meeting adjourned. Respectfully submitted, Tom Murphy, Secretary