HomeMy WebLinkAboutMinutes GEPB 080805r
General Employees Pension Fund
August 8, 2005
The General Employees Pension met on August 8, 2005 in the City of Palm Beach
Gardens, Council Chambers located at 10500 N. Military Trail, Palm Beach Gardens,
Florida. The meeting was called to order at 2:05 P.M.
Members Present: Stephen Parella, Kenneth Steele, Dindial Laljie and Allan Owens
Members Absent: Jami Smith
Also Present: Joseph Bogdahn of Bogdahn Consulting
Scott Christiansen, Attorney
Approval of Minutes
The Board approved the minutes from the June 29, 2005 meeting in a 4 -0 Vote
New Business
Report from Bogdahn Consulting
Joseph Bogdahn gave the board a report on the pension fund. He stated that for the
quarter they started off with $2.725 Million. There was $63,000 more that went out than
came in, with a $35,000 gain and an ending value of $2.717 Million. For the past year
the fund went up 5.89 and the index was up 6.81. In the most recent quarter the funds are
up l .32 and the index was up 2.21. This number put this fund in the 77`" percentile of
their peers. Mr. Bogdahn discussed the equity piece of the fund and said that for the
quarter it trailed pretty significantly.
Mr. Bogdahn asked the board if they want to stay with Trustco as their custodian and
managing the fixed income assets. He explained that Trustco recently purchased Sikes
who is the company that was managing the bonds for this fund. Mr. Bogdahn discussed
different firms that are bond managers. He said there is approximately $1 Million in
fixed income assets. The companies he discussed were: AmSouth, MBIA, Rockwood
and Sawgrass Asset Management and Sikes, that was bought by Trustco. He gave a brief
description of each company and their experience. He went through the last five years
for each company including their best and worst quarters.
Stephen Parella asked Mr. Bogdahn how he feels about the bond market and what his
recommendation is. Mr. Bogdahn stated that he feels this fund would be best served with
a conservative bond portfolio. He said this is because there is more money going out
than coming in and because he feels that the equity side of the fund will be strong enough
to go more conservative with on the bond side.
l w
R '
Mr. Christiansen stated that he is going to put together the contract with Rockwood. He
will get the particulars from Joe Bogdahn.
Stephen Parella made a motion to have MBIA and Sawgrass give the board a presentation
on their Bond Portfolios. Allan Owens seconded the motion. The motion passed 4 -0.
Stephen Parella
Yes
Dindial Laljie
Yes
Kenneth Steele
Yes
Allan Owens
Yes
Mr. Bogdahn discussed the custody of the fund. He suggested four companies including
Salem, Fiduciary Trust, AmSouth and Fifth Third Bank. He said he would like to send
these companies the actuary report and quotes from them. At the next meeting, the board
will interview bond managers and review the quotes. They would like to have this
completed in September so they can start with the new companies effective October 1,
2005
Scott Christiansen gave his report to the board. Mr. Christiansen stated that he sent Sarah
Varga all the necessary forms to do the administration of the plan. He asked Sarah to
follow -up on the forms for the two new board members because they are not showing up
as being filed. Sarah said that she did file the forms and has proof of filing.
Kenneth Steele nominated Allan Owens for reappointment of the 5th seat on the Board
through 2008. Stephen Parella seconded the motion. The vote passed 3 -0.
Stephen Parella
Yes
Dindial Laljie
Yes
Kenneth Steele
Yes
Allan Owens
Yes
Mr. Christiansen discussed a form Pension Letter # 1 which states the Board declares it
expects to get an 8% investment return. He wanted to make sure the form gets done in a
timely manner.
Mr. Christiansen asked about the status of reopening the pension fund to general
employees. Allan Owens stated that the City had hired consultants to look into
establishing a new plan. As of now, the implementation of a new defined benefit plan for
general employees is in the proposed budget. He does not feel this is going to pass City
Council, but he will bring the board up -to -date on this after the budget is adopted.
With no further business to discuss the meeting adjourned at 2:57 PM.
Approved:
OA
i
tephen
Allan Owens
P4,
Kenneth Stee e
r
Jami Smith
lL 0-, J
Dindial Laljie
Attest: �+
Susan Bell' lic Information/Recording Coordinator