Loading...
12-13-2010 General Employees' Pension Board of Trustees Minutes - Regular Meeting December 13, 2010 Page 1 of 3 CITY OF EDGEWATER GENERAL EMPLOYEES' PENSION BOARD Regular Meeting MINUTES Monday, December 13, 2010 CALL TO ORDER/ ROLL CALL/DETERMINATION OF A QUORUM The Edgewater General Employees' Pension Board held its quarterly (regular) meeting on Monday, December 13, 2010 in the City Hall Conference Room at the City of Edgewater, Florida. Members Present: Brenda Dewees Bobby Laramore Jonathan McKinney Tim Sopko John Brackin Tyna Hilton Members Absent: Gigi Bennington Plan Attorney: H. Lee Dehner Board Administrator: Sheila Hutcheson Consultants: Jack Evatt, The Bogdahn Group City Staff: Julie Christine, Personnel Department Tracey Barlow, City Manager Vice - Chairman Dewees called the meeting to order at 11:00 a.m. and there was a quorum, with six members present. APPROVAL OF MINUTES - September 13, 2010 Quarterly Meeting and October 27, 2010 Joint Special Meeting Member McKinney made a motion to approve the minutes of the September 13, 2010 Quarterly Meeting and October 27, 2010 Joint Special Meeting; Member Hilton seconded the motion, which passed unanimously. NEW BUSINESS Discussion/action: Investment questionnaire from Principal. Attorney Dehner suggested that all items related to Principal, including the most recent correspondence from Principal received on December 13, 2010, be deferred to a joint special meeting in early January with Milberg and all the consultants. The Plan Administrator will schedule meeting and provide the Board the relevant documents and correspondence. OLD BUSINESS - None General Employees' Pension Board of Trustees Minutes - Regular Meeting December 13, 2010 Page 2 of 3 REPORTS (ATTORNEY /CONSULTANTS) The Bogdahn Group, Performance Consultant - Quarterly report - September 30, 2010 Jack Evatt opened by discussing the previous volatile market and the quarter ending September 30, 2010, noting that this September had the best return in the past ten years for the month of September. The fund assets were $12,174,742 as of September 30, 2010, compared to $11,428,770 as of June 30, 2010. The return for the quarter was 7.84% (net and gross, since it cannot be determined what Principal's fees are), outperforming the index. The fiscal year return was 10.31%. The past year's returns were good despite the lack of the Board's control over the portfolio. October was a good month and the returns have continued to be positive since then. However, the longer term performance has been below the benchmark. Principal has continued its over - weight in fixed income investments. Mr. Evatt then discussed the financial reconciliation charts. He next discussed the international investments and fixed income investments, noting that the latter had not performed as it should have over the long term, but must have changed in the last year, as it showed considerable improvement. He concluded with an overview of the compliance checklist and reported that the returns for the last year exceeded the plan's 7.5% actuarial assumption. H. Lee Dehner, Plan Attorney Consideration of retainer agreement with Milberg. This item will be discussed at a joint special meeting in January, 2011. Next, Attorney Dehner reported that there has been no change in the HELPS -2 bill; he will keep the Board posted on any progress. At the next quarterly meeting, he will discuss the upcoming legislative session, at which it is expected bills from last year and additional ones will be considered. In response to Member Dewees' question, he reported that he has contacted Attorney Brock locally regarding the Liz McBride claim/issue and will keep the Board apprised. Sheila Hutcheson, Plan Administrator • FPPTA renewal for 2011 will be processed at a cost of $600 for the Board's membership. • FPPTA Trustees' School is January 30 - February 2, 2011 (St. Augustine). • Notice from Principal of termination of Service Agreement effective February 4, 2011. Attorney Dehner recommended that a joint special meeting be held with the Police Board and all consultants in January, 2011 to discuss this issue and the retainer agreement with Milberg. • Appointed Members Dewees, McKinney, and PEA Appointed Member Hilton were reappointed by City Council on October 18, 2010 for three -year terms ending on November 5, 2013. • 2011 meeting dates are on March 14, June 13, September 19, and December 12 (all meetings begin at 11:00 a.m.). • Heart Act amendment from Principal was received (for approval/execution by September 30, 2013). No action will be taken at this time. • Authorization for Foster & Foster to release information from the 2010 Valuation to the City that will be needed in advance of the presentation of the Valuation at an upcoming quarterly meeting. The Board agreed. General Employees' Pension Board of Trustees Minutes - Regular Meeting December 13, 2010 Page 3 of 3 PROCESSED DISBURSEMENTS/RETURN OF CONTRIBUTIONS/DEPOSITS DISBURSEMENTS 1. Sheila Hutcheson, plan administration fees - $3,300.00 ($1100 /month); postage /mileage expense - $21.49 2. Christiansen & Dehner, professional legal fees - $1,340.28, $1,180.22 3. The Bogdahn Group, performance consultant fees, 3` quarter, 2010 - $3625.00 4. Wayne Jackson (terminated, vested employee) - commencement of late retirement as of September 1, 2010 retiree's lifetime with joint/100% survivor option 5. Foster & Foster, actuarial services, - $2,200.00 DEPOSITS None Member Hilton made a motion to approve the processed disbursements /return of contributions and deposits; Member Laramore seconded the motion, which passed unanimously. TRUSTEES', STAFF, EMPLOYEES', and PUBLIC REPORTS, DISCUSSION and ACTION Member McKinney advised that the City's auditors are conducting an audit of the pension plans and the Administrator has forwarded the requested information. The cost will be $2,200 for each Board; Attorney Dehner said the Board will need an engagement letter between the accounting firm and the Board. Member McKinney will contact the auditor to send the proposed agreement to the Administrator for submittal to the Board for its consideration at the January, 2011 special meeting. ADJOURNMENT The Vice - Chairman adjourned the meeting at 11:41 a.m. Respectfully Submitted: Approved: Sheila Hutcheson, Plan Administrator ai 2R.ENa L • Pe vice- &4'Z'