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HomeMy WebLinkAboutMinutes Police Pension 033006a PALM BEACH GARDENS POLICE PENSION FUND MINUTES OF THE SPECIAL MEETING HELD MARCH 30, 2006 A special meeting of the Pension Board was called to order at 9:25 A.M., by Chairman Jay Spencer in the Council Chambers at the Palm Beach Gardens City Hall at 10500 North Military Trail, Palm Beach Gardens, Florida. Those Board Members present were: Chairman Jay Spencer, Secretary David Pierson, Brad Seidensticker, and Jules Barone. Also present were: Jill Hanson, Legal Counsel, of Hanson, Perry & Jensen; and Karen Amenita, Legal Assistant, of Hanson, Perry & Jensen. The purpose of this meeting is to interview bidders for the position of Pension Fund Administrator. Two proposals to provide services were received: Benefits USA and Pension Resource Center. The proposals were received by Bonni Jensen, Fund Legal Counsel, and mailed to the Trustees with a checklist and a copy of the RFP specifications that she sent to the bidders. Benefits USA made the first presentation. Pete Priorwas in attendance for Benefits USA. Mr. Prior discussed his company's services. Brad Seidensticker pointed out that the proposal of fees states "minimum monthly fee is $2,000." He questioned Mr. Prior as what the complete monthly fee proposal is. Pete Prior assured the Board that the $2,000 fee is the complete monthly fee. Brad then stated that the RFP requested a 3 -year guarantee on fees and the booklet provided by Benefits USA did not reflect a guarantee. Mr. Prior agreed to guarantee his firm's fees for 3 years. David Pierson suggested that questions be held till the end of the presentation, since the Board was only allowing 10 minutes for the presentation and then a 20- minute question and answer session. The Board agreed. Upon completing his presentation, Pete Prior opened the floor to the Trustees to address their questions. Brad Seidensticker expressed concern over the transition from the current Administrator, ASI, to a new Administrator and wondered how Benefits USA planned to handle it. Mr. Prior stated that he did not know if ASI had electronic capability to transfer information. Jill Hanson responded that she previously worked with ASI on other funds and she knew they did have electronic capabilities, but it was not compatible with her client's transition. Mr. Prior stated that his firm does not charge the client for initial set up. He stated that his firm's new software is very effective and commented that Watson Wyatt uses the same software. He also said that the Board has the option to choose whether or not they allow users to update their own info because that could present problems. He prefers to allow them access to downloadable forms they can complete and return to his office for processing. Mr. Prior asked the Board if the administrator would be cutting the benefit checks. He recommended that the custodian write those checks, suggesting it was not a good idea for the Fund to have "all its eggs in one basket." If the Board wants benefit checks, they would Page 1 of 3 00 need to let Mr. Prior know as the proposal does not include benefit checks. Jill Hanson pointed out that the RFP asked bidders to list those clients who had terminated the Administrative Services of the bidder. She asked Mr. Prior why he did not address that question in his proposal. He responded that he would prefer to respond off the record, and said that Benefits USA was terminated by Sunrise General Employees and Miami Springs; one was a service issue the other was a political issue. Ms. Hanson asked if there was a full -time staff member in the office of Benefits USA at all times. Peter Prior responded that there is - and that he is readily accessible by cell phone or email. The Board thanked Mr. Prior for his presentation to the Board. David Pierson asked Chairman Spencer about the foreign investing questioning whether it had been done. Jay Spencer reported that to his knowledge it had not been done based on conversations with Bonni Jensen and John McCann, and his discussions with Bonni. Jay believed the Fund's Custodian needed to be involved. Mr. Pierson wondered why it was taking so long and thought John and Bonni would have found a solution sooner. The second presentation was made by Scott Baur, for his company, Pension Resource Center ( "PRC "). Mr. Baur opened his presentation stating that his firm provides Administrative Services to the Palm Beach Gardens Firefighters Pension Board of Trustees, and would very much like to provide services to the Police Board as well. He pointed out that the services ASI provided to the Board were broader than those PRC currently provides to the PBG Firefighters, and that his proposal was based on those broader services. Scott believes it will be an easy transition for PRC to take over from ASI. He has taken over Funds previously administered by ASI and there were no hindrances. PRC will receive the information from ASI and the City of Palm Beach Gardens electronically - probably using an FTP site to safeguard the sensitive employee information. Mr. Baur expressed that his office has a good relationship with the City of PBG and that another administrator from his office, Margie Adcock, who currently works with the Firefighters, would work with him on this Fund. After a thorough and comprehensive presentation of PRC's proposal, Mr. Baur opened the floor for questions. Brad Seidensticker asked why the proposal booklet refers to Oakland Park Police and Fire pension Fund in two places - including the fee schedule. Also, Brad pointed out that the fees are different in the sample contract provided. The fees in the sample contract are correct. Unfortunately, Mr. Baur overlooked the references to Oakland Park; it was a typo. He apologized to the Trustees. There was also a typo to the fees on the summary provided by Hanson Perry & Jensen. The fees should have been listed as $2,275 for full Administration instead of $3,600 as inadvertently stated in the summary. The correction is noted. Mr. Baur stated that he will provide full administrative services to the Fund for a flatfee of $2,275 which includes check processing fees. Page 2 of 3 s The Board asked what type of software is used by PRC. Scott Baur explained that PRC uses programs designed by Ellen Schaeffer, and that PRC is her primary client. Brad questioned whether or not PRC had back up for Ellen in the event she was unavailable or something happened to her that rendered her incapable of servicing the product. Scott replied that PRC owns the source code and that he has his own staff that works with Ellen and would serve as back up. Brad pointed out to Mr. Baur that the RFP requested fees be guaranteed for 3 years and his proposal stated 3 years in one place and 2 years in another. Scott Baur responded that his fees are guaranteed for 3 years and he believes his fees are reasonable and sustainable. He stated that PRC has not raised its fees to any of the funds it currently services - including PBG Firefighters; and they were hired in 1999 or 2000 by PBG Firefighters. Jill Hanson asked Scott Baur if annual benefit statements are provided by Pension Resource Center. Scott responded that PRC has the ability to do so and will provide to the Actuary for review, but their philosophy at PRC is that the Actuary should be the final authority on benefit calculations. The Board thanked Scott Baur for his presentation. A Board discussion ensued and a question arose as to whether the Board could go to PRC and ask them to meet the fee proposed by Benefits USA. Jill Hanson said it could not be done outside of a public meeting due to the Sunshine Law. She said the Board could hire PRC and then negotiate a better fee. David Pierson commented that the difference was $275 and it was not worth arguing over. MOTION: Jules Barone moved to retain Pension Resource Center, provided that they produce accurate information in a new proposal correcting the fees and any other oversights presented in the original proposal. SECOND: David Pierson seconded. CARRIED: The motion carried unanimously. Chairman Spencer requested that Hanson, Perry & Jensen advise Pension Resource Center that they are hired subject to providing a corrected proposal to the Board. The next regularly scheduled meeting being subject to call and there being no further business to come before the Board, the meeting was duly adjourned by Chairman Spencer at 10:50 A.M. Respectfully submitted, DAVID PIERSON, Secretary Page 3 of 3 H: \PBG 0003WEETINGWinulesWIN 03- 30- 06.wpd