09-15-2014
CITY OF EDGEWATER GENERAL EMPLOYEES’ PENSION
BOARD QUARTERLY MEETING MINUTES
City Hall Council Chambers
Monday, September 15, 2014 at 11:00AM
TRUSTEES PRESENT: Brenda Dewees
John Brackin
John McKinney
Tyna Hilton
Bobby Laramore
TRUSTEES ABSENT: Gigi Bennington
Tim Spoko
OTHERS PRESENT: H. Lee Dehner, Board Attorney
Ferrell Jenne, Plan Administrator
Jack Evatt, Investment Consultant
Doug Lozen, Board Actuary
Donna Looney, Personnel Director
1. Call to Order Brenda Dewees called the meeting to order at 11:03 AM.
2. Roll Call As reflected above.
3. No Public Comments
a. Joe Lavender, a member of the Plan, had a few questions.
i. Are employee contributions being invested in the Fund and can that be
stopped and invested into a different Fund?
1. John McKinney states that this money is deposited bi-weekly
and is invested in the same investment pool as all other
contributions. This cannot be stopped and invested elsewhere.
ii. The disclosing of retirement benefits/refunds being paid out of the Plan,
is this something that is starting now?
1. Ferrell Jenne states that these have always appeared on the
Board agendas in the past and the reason is because the Board
needs to ratify all payments going out of the Fund.
iii. Are there any elections coming up for Board Trustees?
1. Brenda DeWees states that the Board is in the process of
sending an Ordinance to Council that will change the make-up
the Board. The Ordinance will specify the parameters of the new
Board make-up and elections will be held.
4. Approval of Minutes
The minutes from the June 16, 2014 quarterly meeting, June 23, 2014 special meeting, and
the September 3, 2014 special meeting were approved upon motion by John McKinney and
second by Tyna Hilton, motion carried 5-0.
5. New Business
a. Discussion of New GASB Rules.
i. Doug Lozen reviews the new GASB Rules with the Board.
1. September 3, 2014 letter from Foster & Foster lays out the
scope of the additional work and associated fees.
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2. GASB 67 will replace GASB 25, most Cities use this statement
to incorporate into their financial statements. Since the valuation
reports are not done until March each year, but the audit report is
done prior to March, there may be a lag. However, GASB 67 can
be early implemented so that this lag does not happen.
1. John McKinney states that the City is currently a year
behind and highly recommends early implementation.
2. The Auditors are currently asking about early
implementation, according to John McKinney.
3. John McKinney states that the City reimburses the Plan
for all expenses, so if this is paid by the Board, the City
will make it up in its contributions.
The Board approved early implementation of GASB 67, paid for by the Board, upon motion
by Tyna Hilton and second by John Brackin, motion carried 5-0.
b. Discussion of Senate Bill 534.
i. Doug Lozen states that this requires what plan funding would look like
using very conservative assumptions. This would mean taking the
investment return and subtracting 200 basis points and using a very
conservative mortality table.
ii. Doug states that this report will need to be shown on the City’s website
and to show a more balanced picture, the Board has the choice to have
the actuary do an additional calculation to show what the plan’s funding
would look like with earning an additional 200 basis points regarding the
investment return.
iii. Tyna Hilton asks Doug what other Boards are doing and Mr. Lozen
states that all of his plans so far have elected to do the additional 2%
calculation. Lee Dehner also recommends to the Board to show the
additional 2% calculation.
iv. John McKinney states that the City’s website already has the software in
place that would allow these reports to be shown, as required.
The Board approved doing the additional 2% calculation regarding SB 534, upon motion
by Tyna Hilton and second by John McKinney, motion carried 5-0.
c. Discussion of GASB 68.
i. Doug Lozen states that there is nothing that needs Board direction.
GASB 68 will replace GASB 27 and will be in place in conjunction with
the October 1, 2014 valuation report. There is no need for early
implementation.
ii. John McKinney asks to defer this decision so he can speak with the City
auditors to check on early implementation.
1. Doug Lozen states that there is an option to early implement
GASB 68, but there is not a need (unlike GASB 67) since there
will not be a lag in information.
2. Tyna Hilton asks what the benefit is to defer this decision until
the December meeting. Brenda DeWees explains that this will
give John McKinney the time to speak with the auditors.
3. Board directs Ferrell Jenne to put this on the December agenda
for discussion.
6. Old Business
None.
7. Reports
a. The Bogdahn Group, Jack Evatt
i. Quarterly update as of June 30, 2014.
1. Net earnings for the quarter were 3.12%, underperforming the
policy benchmark of 3.80% by 0.68% points.
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2. Since inception, the fund is at 4.86%, underperforming the policy
benchmark of 5.72% by 0.86% points.
3. The Plan’s total fund gross performance of 3.15% for the quarter
ranked in the 78th percentile of the public fund sample.
4. Jack Evatt states that overall, it was not a great quarter but in
good shape fiscal year to date.
5. Jack Evatt has no recommendations at this time.
b. Christiansen & Dehner, H. Lee Dehner
i. Lee Dehner reminds the Board of upcoming educational opportunities.
1. John McKinney and Tyna Hilton state that they are going to
check their calendars regarding the Division of Retirement
conference in Orlando.
2. John McKinney states that he is not able to attend after looking
at his calendar.
The Board approved reimbursing expenses to Trustees who attend the Division of
Retirement conference upon motion by Bobby Laramore and second by John Brackin,
motion carried 5-0.
ii. Discussion of Board transition from 7 to 5 members.
1. John McKinney suggests holding a special meeting to discuss
the Board transition after the Ordinance has been passed.
2. Two seats will be voted by membership.
a. Ferrell Jenne makes ballot and department heads will
pass out. Length of terms and location of drop-off boxes
to be included.
b. Ferrell Jenne to make a notice and send to
directors@cityof edgewater.org or to Donna Looney; this
wil l be placed on bulletin boards and the deadline for
members to submit interest will be 5 business days.
3. Ferrell Jenne to give City Clerk the parameters of the two
Council appointed positions.
4. Union representative must sit on the Board. Board discusses
what seat this will be. Board decides that the union
representative will hold the fifth seat on the Board.
iii. Pull the Ordinance from first reading at the September 22, 2014 meeting
and make first reading on October 6, 2014. This will allow Lee Dehner to
add the language that states the fifth member of the Board shall be the
union representative and a no impact letter will need to be done. Donna
Looney to confirm the language and intent of the union contract.
iv. Terms of future Trustees was discussed further.
1. Initially, two Council Trustees will hold 3 year terms, two member
Trustees will hold 2 year terms.
8. Disbursements
Disbursements were approved as stated on the agenda upon motion made by John
McKinney and second by Tyna Hilton, motion carried 5-0.
9. Staff Reports, Discussion, and Action
a. Update of the fiduciary liability insurance.
a. Policy is about $950 more than last year due to increase in Plan assets.
Total fee is $4,219.84.
b. Separate policy for the Waiver of Recourse.
c. City will pay the premium for the fiduciary liability insurance; they will
decrease the City contributions by the amount of premium.
b. Discussion of 2015 meeting dates.
Board approved the 2015 meeting dates upon motion made by John McKinney and
second by Bobby Laramore, motion carried 5-0.
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10. Adjournment The meeting adjourned at 12:44PM.
11. Next Meeting September 15, 2014 at 11:00AM.
Respectfully submitted by: Approved by:
_______________________________ _____________________________
Name: Ferrell Jenne Name:________________________
Title: Plan Administrator Title: _________________________
Date Approved By the Pension Board: _______________________________
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