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HomeMy WebLinkAboutMinutes Police Pension 120605RECEIVED PALM BEACH GARDENS POLICE PEN SIR "95R'S OFFICE MINUTES OF THE MEETING HELD DEC 12 1005 DECEMBER 6, 2005 A regularly scheduled meeting for the Pension Board was called to order at 10:10 A.M., by Chairman Spencer in the Commission Chambers at the Palm Beach Gardens City Hall, Palm Beach Gardens, Florida. Those Board Members present were: Barone, Pierson, Sidey, Spencer and Seidensticker. Also present were: Bonni Jensen, Board Counsel; Richelle Hayes, of ICC Capital Management; Denise D'Entremont of Rhumbline Advisors, John McCann of GRS Asset Consulting; Stephen Palmquist of Gabriel Roeder Smith & Company and Joseph E. Mastrangelo, representing Administrative Services, Inc. Chairman Spencer was pleased to note that this meeting is a combined meeting with the Oversight Committee for the City of Palm Beach Gardens who were all in attendance as well as City Representatives. All parties present introduced themselves and their respective positions. Chairman Spencer requested that the Investment Reports be given at this time and the following reports were delivered: A. Rhumbline Advisors Ms. D'Entremont presented to the Board, Rhumbline Advisors report covering the performance of their S &P 400, S &P 500 and S &P 600 Pooled Index Funds. Ms. D'Entremont reviewed the economic factors affecting each of the respective funds and how that impacted on their performance. The Board was advised that the quarterly returns for each of the Funds were as follows: S &P 500 Pooled Index Fund - 3.58 as compared to the S &P 500 Index of 3.60; S &P 400 Pooled Index Fund - 4.85% as compared to the S &P 400 Index of 4.88% and the S &P 600 Pooled Index Fund of 5.34% as compared to the S &P 600 Index of 5.38 %. The return for each Fund on a year -to -date basis reflected a return for the S &P 500 Pooled Index Fund of 2.77% as compared to the S &P 500 Index of 2.77 %; S &P 400 Pooled Index Fund - 9.11 % as compared to the S &P 400 Index of 8.92% and the S &P 600 Pooled Index Fund - 7.34% as compared to the S &P 600 Index of 7.27 %. Ms. D'Entremont reviewed the mechanics of each of the individual funds as well as the fees responding to various questions from the Oversight Committee relating to the three (3) Funds under investment by Rhumbline Advisors. PALM BEACH GARDENS POLICE PENSION FUND MINUTES OF THE MEETING HELD December 6, 2005 B. ICC Capital Management Ms. Hayes began her report with a brief overview of the fixed income marketplace and economic conditions affecting that segment of the market and reviewed with the Board the performance of the portfolio which as of September 30th, 2005 reflected a return of — 0.48 %; a fiscal year -to -date return of 3.34% and a five -year return of 33.70% which reflected an annualized total return to the Fund of 5.98 %. The structure of the portfolio was reviewed with Ms. Hayes outlining how the portfolio duration has been restructured in anticipation of the current fixed income market environment. Ms. Hayes responded to various questions posed by the oversight committee. B. GRS Asset Consulting Mr. McCann began his report by providing the City's Oversight Committee with a description of the services which he performs as the Plan's Investment Monitor. Mr. McCann reviewed the performance of each of the managers responding to various questions raised by the Oversight Committee. Mr. McCann then presented to the Board an asset allocation analysis which addresses an international component for the Board's consideration. After a review of the risk versus - return involved in an International component, Mr. McCann was directed to do a manager's search and report to the Board at their next regularly scheduled meeting. Chairman Spencer, requested Mr. Palmquist present his report to the Board. Mr. Palmquist outlined for the Oversight Committee the role which the Actuary plays and responded to various questions raised by the Oversight Committee with respect to different aspects of the Actuarial Study. One of the assumptions which Mr. Palmquist brought forth for the Board's consideration, was that of the salary assumption wherein he felt that this time it should be changed predicated on additional information and experience received. It was his recommendation that the salary assumption be changed from six percent (6 %) to nine percent (9 %) and to fourteen percent (14 %) at year ten (10). The cost increase related to this assumption change would be three and one -half percent of payroll. A thorough and lengthy discussion ensued with respect to the recommended change in salary assumption and a motion was duly made, seconded and unanimously carried approving the recommended salary assumption change K PALM BEACH GARDENS POLICE PENSION FUND MINUTES OF THE MEETING HELD December 6, 2005 subject to Mr. Palmquist's recommendation being received by the Board in writing prior to the next regularly scheduled meeting. Chairman Spencer requested a motion to approve the Investment Reports as received. The motion was duly made, seconded and unanimously carried approving the investment reports as received. The Minutes of the meetings held on August 23`d, 2005 and November 9"', 2005 were approved as submitted on a motion which was duly made, seconded and unanimously carried. Mr. Mastrangelo reviewed the Statement of Income and Expense, whereupon a motion was duly made, seconded and unanimously carried ratifying all disbursements made subsequent to the last regularly scheduled meeting. Mr. Mastrangelo presented for the Board's consideration a listing of the Pension applications received subsequent to the last regularly scheduled meeting and the accompanying documentation thereto. After a review of the documentation, a motion was duly made, seconded and unanimously carried approving the Pension applications in accordance with the listing outlining the documentation of these benefits which is attached to and made a part of these Minutes. Chairman Spencer requested Ms. Jensen to present her report as Board Counsel. Ms. Jensen began her report by presenting and reviewing with the Board the Statement of Policy for Trustee expenses. Upon review, a motion was duly made, seconded and unanimously carried approving the Statement of Policy for Trustee expenses. Ms. Jensen also provided to the Board a revised Trustee Travel and Expense Report which was approved. The Board re- addressed diversifying the portfolio and the various asset classes under consideration concurring of those addressed the Board would consider International equities as a viable inclusion in the Plan's portfolio and concurred that the discussion will be held on this subject matter at the next regularly scheduled meeting. 3 PALM BEACH GARDENS POLICE PENSION FUND MINUTES OF THE MEETING HELD December 6, 2005 The next regularly scheduled meeting is subject to call during the month of February 2006. There being no further business to come before the Board, the meeting was duly adjourned by Chairman Spencer at 11:47 A.M. Respectfully submitted, DAVID PIERSON Secretary IN