HomeMy WebLinkAboutMinutes Fire Pension 090211PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND
MINUTES OF SPECIAL MEETING HELD
September 2, 2011
A special meeting of the Board of Trustees was called to order at 2:08 P.M. at Council
Chambers, Palm Beach Gardens, Florida. Those persons present were:
TRUSTEES OTHERS
Tom Murphy Margie Adcock & Audrey Ross, Administrator
Mark Joyce Pedro Herrera, Attorney
Ed Morejon Allan Owens, Finance Director
DISCUSSION ON CITY'S REQUEST REGARDING RETAINING FUND'S
ACTUARY TO PERFORM A STUDY
It was noted that the City contacted the Fund's Actuary to potentially perform some
confidential work for the City. The Board reviewed a letter dated August 16, 2011 from
the Actuary asking if it would be acceptable to the Board for them to proceed with the
engagement.
Allan Owens appeared before the Board. He stated that the City hired an actuary,
Cavanaugh MacDonald Consulting, to do some preliminary studies earlier in the year. He
stated that the studies were based on some really rough estimates. Cavanaugh
MacDonald Consulting suggested that if the City was looking for a detailed cost, it might
be more efficient, timely and cost effective to have the Fund's Actuary perform any
additional studies. As such, Mr. Owens contacted Mr. Armstrong. Mr. Owens noted that
Mr. Armstrong stated that he would be happy to perform the studies, but needed to get
approval from the Board first.
Mr. Morejon stated that Mr. Armstrong's letter did not specify what the work to be
performed for the City would be. Mr. Owens responded that it would be on the items
contained in the initial report done by Cavanaugh MacDonald Consulting. He stated that
the City is at a point where it needs to know what the numbers really are so they would
need to have the Fund's Actuary perform the studies. Mr. Owens noted that the Police
Pension Plan chose to engage their actuary directly and pay for the cost of the studies. He
stated that he was not asking this Board to do that. There was a lengthy discussion. Mr.
Herrera stated that the Fund's Actuary would be in the best position to do the study. He
recommended that whatever is produced be provided to both sides. He noted that the
City really pays for the study either way. If the City hires the Fund's Actuary though, the
work product belongs to the City. There was a discussion on whether the City was
costing out closing the Plan. Mr. Owens stated that was not one of the intended options.
He stated that the City's intent was to look at perhaps opting out of Chapter 175. There
would still be a Plan in place, but it would not necessarily meet the requirements of
Chapter 175. He stated that the City was not recommending terminating the Plan. There
was a lengthy discussion. The Board felt that the Fund's Actuary is in the best position to
do the study and since he is the Board's Actuary, the Board should hire him. This matter
involves the Board, City and Union. It was thought that the City should provide a list of
exact items they want and ask the Board should ask the Union to do the same and then
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the Board can direct the Actuary to perform the work with the product to be provided to
the Board, City and Union. A motion was made, seconded and carried 3 -0 to authorize
GRS to perform studies based on input received by the Board from the City and Union,
which input must be provided to the Administrator by the end of next week, with the
study to be provided to the City and the Union.
OTHER BUSINESS
It was noted that the Fund received the 175 tax premium monies. Mr. Brown advised that
he would provide an allocation worksheet on how to invest the monies at the next
meeting.
There was discussion on the outstanding Ordinance. Mr. Owens stated that the City
would like to hold off on making changes until negotiations are completed so one
Ordinance incorporating all the changes can be done at one time.
There being no further business, the meeting adjourned.
Respectfully submitted,
Tom Murphy, Secretary