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Minutes 5-10-12 (SM).doc
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City of Palm Beach Gardens Police Officers’
Pension Fund
Minutes of the SPECIAL Meeting Held
May 10, 2012
The special meeting of the Board of Trustees of the City of Palm Beach Gardens
Police Officers’ Pension Fund was called to order a t 9:902 AM by Wayne Sidey in the
Council Chambers at the Palm Beach Gardens City Hal l at 10500 North Military Trail,
Palm Beach Gardens, Florida.
TRUSTEES PRESENT OTHERS PRESENT
Jay Spencer, Chair Audrey Ross (Resource C enters)
David Pierson, Secretary Bonni Jensen (Law O ffices of Perry & Jensen)
Brad Seidensticker, Trustee Steve Palmquist (Gabriel, Roeder, Smith)
Marc Glass, Trustee
PRESENTATION OF THE SEPTEMBER 30, 2012 ACTUARIAL VA LUATION
REPORT
Gabriel, Roeder, Smith & Company (GRS) – Presented by Steve Palmquist
Mr. Palmquist apologized for the delay in issuing t he report this year. He explained that
there was a large unexpected amount of members that entered the DROP during the
fiscal year, which made the percentage of covered p ayroll decrease because those
members that entered the DROP are no longer contrib uting to the pension fund. Due to
the percentage of covered payroll being less than e xpected, this also increased the
Plan’s unfunded liability payment. Ms. Jensen aske d for discussion purposes, whether
the DROP monies should be listed separately from th e Plan’s assets. Mr. Palmquist
stated that he didn’t think the DROP monies needed to be separated out into their own
category because they are still listed under the Pl an’s assets until the member withdraws
their money. Also the payroll percentage should in crease once more members exit the
DROP and there are new hires. Mr. Palmquist report ed that the City’s contribution rate
for the next fiscal year decreased dollar wise to $3,720,000 from $3,785,539 that was
contributed this fiscal year. He stated that the P lan did experience a net gain of
$718,288 this year which was due to the lack of sal ary increases. Also the funded ratio
increase to 60.5% this year from 58.8% last year.
Mr. Palmquist reviewed the Plan changes that were m ade 5 years ago and also recently.
He noted that the changes the board made 5 years ag o are starting to be reflected and
they have impacted the portfolio in a positive way. Also the board recently lowered their
assumed rate of return on a continuous basis until they reach 6.5%. Mr. Palmquist
commented that the board has done everything they n eeded to do regarding making
positive changes to the Plan. Now we need to let t hose changes ride out because you
can see today how the changes they made years back have benefited the fund.
MOTION: Mr. Seidensticker made a motion to approve and accept the
September 30, 2012 Actuarial Valuation Report as pr esented by
the Plan’s Actuary, GRS.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 4-0.
Minutes 5-10-12 (SM).doc
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ATTORNEY REPORT
Law Offices of Perry & Jensen - Presented by Bonni Jensen
Ms. Jensen reminded the Trustees’ that their annual Form 1 Disclosures are due July
1, 2012. She reviewed her memo that outlined the n ew requirements that the
Trustees’ must do disclose.
Ms. Jensen reviewed the new State and Tax Law updat es. The new updates revise
the retire/rehire clause, and also states that a di ssolution of marriage automatically
changes a retires’ beneficiary and/or joint annuita nt.
MOTION: Mr. Seidensticker made a motion to direct M s. Bonni Jensen to
draft a letter to the City staff requesting a meeti ng with the
Pension Board.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 3-0.
PUBLIC COMMENTS
N/A
AJOURN
There being no further business, and the future mee tings are scheduled for the 3rd
Thursday of the first month proceeding the quarter. The next regular meeting is
scheduled for Thursday August 9, 2012 at 9AM; the T rustees officially adjourned the
meeting at 10:52PM.
Respectfully submitted,
_____________________________
DAVID PIERSON, Secretary