HomeMy WebLinkAboutMinutes GEPB 120902.Z
City of Palm Beach Gardens General Employees
Pension Fund Trustee Meeting
December 9,2002
The Meeting was called to order by Steve Parella at 2:00 PM. In attendance were Jack
Hanson, Alan Owens, Judy Fox, Ken Steele, and Steve Parella of the Board of
Trustees; and Michael Welker of Trusco, Joe Boghdan of Boghdan Consulting, Lee
Dehner, Board Attorney, and Ward Foster, Board Actuary.
A motion to approve the minutes of the August 19,2002 was made by Steve Parella and
seconded by Alan Owens. The vote to approve was unanimous.
The Performance Monitors Report was offered by Joe Boghdan. He stated that we are
down in all equity areas, as is the rest of the country, but we are in good shape in fixed
assets. This shows the importance of diversification. Steve requested a clarification of
our bond position. Joe gave a detailed explanation of the term "batting average ".
Michael Welker gave the Investment Managers Report. All is OK in light of the
competition and we are in good position for the expected recovery in all areas.
The Actuary Report was given by Ward Foster. The returns were not as good as
expected; consequently an approximate two -year recovery at current rates would
be required. He gave an explanation of the methodology used in his calculations.
The report received a motion from Steve Parella to approve with the "smoothing
method" as previously explained, and Alan Owens was the second. The vote to
approve was unanimous.
A lively detailed discussion regarding the opening of the defined benefit plan ensued.
Several options were discussed. A slate of future meetings with the proper parties will
be forthcoming. A motion was made by Steve Parella and seconded by Ken Steele
to authorize Ward Foster to formulate a ballot of interest for all employees of the City
who are not currently members of the Defined Benefit Plan. The vote to approve was
unanimous.
The indexing discussion by Ken Steele and the directed brokerage agreement with
Donaldson & Company were deferred to the first meeting in 2003.
The payment of invoices from Christiansen & Dehner - $1,653.95; Boghdan Consulting -
$1,500.00; and Foster & Foster - $6,690.00 was motioned by Steve Parella and
seconded by Alan Owens. The vote to approve was unanimous.
A commission recapture check was signed by Jack Hanson and sent to Lance Powers
for deposit. The Actuary Services Agreement with Foster & Foster was signed by Jack
Hanson, mailed to Lance Powers, and properly filed.
The Attorneys Report was given by Lee Dehner. He explained the IRS rules of
reemployment of former plan members and recommended that a letter be sent to the
City Manager and Human Resources Director regarding these rehires. The legal staff
should be apprised of these events to assure compliance with the federal regulations. A
motion by Steve Parella and seconded by Alan Owens to send a letter to Mr. Charles
Slavin at the state level regarding the expected 8% return in 2003 received unanimous
approval.
The meeting adjourned at 4:37 pm.
Respectfully submi
Jack Hanson, - Secretary
City of Palm Beach Gardens
Pension Board of Trustees