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
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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
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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.
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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