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HomeMy WebLinkAboutMinutes Fire Pension 081505PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND MINUTES OF MEETING HELD August 15, 2005 A meeting of the Board of Trustees was called to order at 11:04 A.M. at Station 3, Palm Beach Gardens, Florida. Those persons present were: TRUSTEES Richard Beladino Philip Buttaravoli Tom Murphy Ed Morejon (11: 15 A.M.) MINUTES OTHERS Margie Adcock, Pension Resource Center, Administrative Manager Joe Bogdahn, Bogdahn Consulting, Investment Monitor Robert Sugarman & Pedro Herrera, Attorney The Board reviewed the minutes of the meeting held May 16, 2005. A motion was made, seconded and carried 3 -0 to accept the minutes of the meeting May 16, 2005. ADMINISTRATIVE REPORT Margie Adcock provided the Board with Resolution 68, 2005 which reappointed Richard Beladino and Tom Murphy to the Board. Margie Adcock presented the list of disbursements to be made. A motion was made, seconded and carried 3 -0 to approve the disbursements listed. Ed Morejon entered the meeting. DISABILITY APPLICATION: KATHLEEN BUSH Bob Sugarman reminded the Board that Ms. Bush has applied for a service - connected disability. He stated that Ms. Bush's attorney, Richard Sicking, was also present at the meeting. Mr. Sugarman stated that the Board had sent Ms. Bush to Dr. Sherman for an IME and he suggested a series of treatments. He stated that he sent Dr. Estes report to Dr. Sherman for his review. Mr. Sugarman provided the Board with a letter from Dr. Sherman. Mr. Sugarman stated that it appears all the questions the Board had have been answered and it is time for the Board to make a decision unless there is something else the Board wants to know. He stated that he did send a letter to the City regarding the treatments Dr. Sherman suggested but the City has not responded. He stated that it would not be fair to delay this matter further pending a response from the City. There was a lengthy discussion on the matter. Dr. Buttaravoli stated that his personal opinion was that he disagreed with the two doctors. He thinks steroid injections in the muscle are valuable and he has seen it work. The two doctors say she cannot do the job but note that if she 2 had a different attitude that it might work for her. He stated that he did not feel there was any objective evidence that her injury is causing the pain. He does not see them as being related and it disturbs him that the doctors are relating these two things together. Mr. Sugarman stated that the Board must base their decision on the information in front of them but can add common sense. He noted that the City paid for her injuries under workers' compensation. That does not require the Board to find it job related but it is persuasive. The City fired her because she could not work anymore, but that does not necessarily mean her injury was permanent. He noted that the doctors believe this woman in this situation cannot work anymore. He stated that he believes the evidence is in front of the Board and nothing points the other way. A motion was made, seconded and carried 4 -0 to grant the Disability Application of Kathleen Bush to be effective the day after she terminated employment. Richard Sicking and Kathleen Bush departed the meeting. DISABILITY REVIEW Mr. Sugarman advised that the Board that he found a doctor to do the functional capacity test on Kevin Mitchell in Arizona where Mr. Mitchell moved. They have scheduled the test and he will provide the Board with the results at a future meeting. INVESTMENT MONITOR REPORT Joe Bogdahn appeared before the Board. He discussed the investment performance for the quarter ending June 30, 2005. The Fund was up 2.43% for the quarter while the benchmark was up 1.68 %. The total market value of the Fund as of June 30, 2005 was $11,867,000. The asset allocation at market was 67% in equities; 32% in fixed income; and I% in cash. The fixed income portion of the portfolio was up 2.41 % for the quarter while the benchmark was up 2.48 %. The total market value of the fixed income portion of the portfolio was $3,752,000. Equities for the quarter were up 2.84% versus the S &P 500 which was up 1.37 %. The total market value of the equity portion of the portfolio was $7,971,000. With respect to the status on the contracts with Freedom Management and ING, Mr. Sugarman provided an update. He stated that he had issues with both Freedom Management and ING with a "confidential private placement memorandum ". He stated that he has since learned how to handle this while attending a conference. He stated that he will begin negotiating side letter for both Freedom Management and ING. Dr. Buttaravoli departed the meeting. Mr. Bogdahn stated that he thinks Freedom has a nice product and it would behoove the Fund to move that way. He stated he feels the same about ING. It was noted that with respect to ING, there is still an issue with the Ordinance in allowing for investments in real estate. Mr. Sugarman suggested that the Board have Mr. Bogdahn put the Fund's 3 name on the list with ING because it takes six months to get the money in and hopefully the Ordinance will be resolved by then. Mr. Bogdahn stated that the SEC and DOL came up with questions that they recommended pension boards ask their investment monitor. Mr. Bogdahn provided the Board with his responses to those questions. PRESENTATIONS BY ACTUARIES PUBLIC PENSION PROFESSIONALS Chad Little and Ira Summer appeared before the Board. Mr. Little stated that he is local in Florida and Mr. Summer is in California. He stated that they focus on communications, client services and the public sector. They would attend quarterly meetings. Mr. Summer stated that he founded the firm 5 years ago but he has about 20 years of experience. Mr. Little has worked for Florida public pension plans for about 10 years. Mr. Summer stated that Florida is an important part of what they do. He stated that the Board should look at credentials, communications skills, composure and comfort in choosing an actuary. Mr. Little stated that they are knowledgeable of Florida, have a local presence and deliver on time and in an understandable format. It was noted that doing the share account allocations was not included in their fee proposal. The Board asked various questions to which Mr. Little and Mr. Summer responded. Chad Little and Ira Summer departed the meeting. Joe Bogdahn departed the meeting. DULANEY & COMPANY Don Dulaney appeared before the Board. He stated that he started work with the Wyatt Company and worked there for 24 years. Four years ago they sold their clients to GRS. That is when he started his own company in 2002. He stated there were three employees in his company. He discussed the services he would provide to the Board. He stated that he could provide a benefit calculation within three days. He stated that the other two people in his office are Yiu Lai who has 15 years experience and Jean Mauldin who has 30 years experience. He provided the Board with client references which were comprised of 5 municipal clients and two Teamsters clients. He stated that he was going to cut off obtaining new clients when he reached 10 funds. He stated that his fee would include do the share account allocations. He stated that he is responsive and local. The Board asked various questions to which Mr. Dulaney responded. Don Dulaney departed the meeting. 4 ATTORNEY REPORT Mr. Sugarman stated that the premium tax monies received this year went up from $409,000 to $515,779.69. There was further discussion on the contracts for Freedom and ING. The Board stated that they did not want to wait for the next meeting to execute a contract with Freedom as they wanted to get them on Board as soon as possible. A motion was made, seconded and carried 3 -0 to authorize the Chair to sign the agreement with Freedom once it is negotiated by the Attorney. Mr. Sugarman stated that he would write the City again regarding the proposed Ordinance that would include real estate. Bob Sugarman and Pedro Herrera departed the meeting. PRESENTATIONS BY ACTUARIES (CONTINUED) STANLEY, HOLCOMBE & ASSOCIATES Randall Stanley appeared before the Board. He stated that he is out of Atlanta. He stated that his firm was founded in 1983 and they are a small regional actuarial firm. He provided the Board with a representative client list. He stated that he would be the lead on the account and stated that he has 30 years experience. He stated that Jonathan Craven would be his backup and Mr. Craven has been with the firm for two years and has 12 years experience. Mr. Stanley discussed the detailed gain/loss analysis and discussed his recommended approach to transition the account. He stated that his fee did not include the share account allocations and noted that he could do the allocations for $3,000 a year. The Board asked various questions to which Mr. Stanley responded. Randall Stanley departed the meeting. GABRIEL, ROEDER, SMITH & COMPANY Brad Armstrong appeared before the Board. He stated that he was out of the Michigan office. He discussed what the Board's needs should be from an actuary: unbiased, reliable, timely, accurate, experience (both broad and specific). He stated that the firm has over 100 pension plans in Florida and have been in business for 65 years. He stated that he would do the share account allocations at no additional cost. Mr. Armstrong provided the Board with a representative client list of the plans that he works with. The Board asked various questions to which Mr. Armstrong responded. ADMINISTRATIVE REPORT (CONTINUED) Ms. Adcock stated that the Fiduciary Liability Insurance Policy will expire on November 13, 2005. A motion was made, seconded and carried 3 -0 to renew the Fiduciary Liability Insurance Policy not to exceed an annual premium of $5,000. DISCUSSION ON ACTUARIES The Board discussed the presentations by the actuaries. There was a lengthy discussion regarding the qualifications of the various actuaries. A motion was made, seconded and carried 3 -0 to authorize the Chair to sign the agreement with Gabriel, Roeder, Smith & Company once it is negotiated by the Attorney. Once the contract has been accepted, the Attorney will inform Foster & Foster of the Board's decision. OTHER BUSINESS There being no further business, the meeting adjourned. Respectfully submitted, Ed Morejon, Secretary