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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 2 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