09-19-2011 CITY OF EDGEWATER
GENERAL EMPLOYEES' PENSION BOARD OF TRUSTEES QUARTERLY MEETING
CITY HALL COUNCIL CHAMBER
104 N. Riverside Drive, Edgewater, Florida 32132
AGENDA
Monday, September 19, 2011 - 11:00 A.M.
Pursuant to Chapter 286, F.S., if an individual decides to appeal any decision made with respect to any matter considered at a meeting or
hearing, that individual will need a record of the proceedings and will need to insure that a verbatim record of the proceedings is made. In
accordance with the Americans with Disabilities Act, persons needing assistance to participate in any of these proceedings should contact
City Clerk Bonnie Wenzel, 386- 424 - 2400, Ext# 1101, prior to the meeting.
I. CALL TO ORDER/ROLL CALL/DETERMINATION OF A QUORUM
II. APPROVAL OF MINUTES - Quarterly Meeting - June 13, 2011; Special Meeting -
June 13, 2011; Special Meeting - August 1, 2011
III. NEW BUSINESS
Foster & Foster - notice of fee increase
IV. OLD BUSINESS
V. REPORTS (ATTORNEY /CONSULTANTS)
1. The Bogdahn Group, Performance Consultant
• Quarterly report - June 30, 2011
• Review 2009 IPS
2. H. Lee Dehner, Plan Attorney
• Legislative update
3. Sheila Hutcheson, Plan Administrator
VI. PROCESSED DISBURSEMENTS/RETURN OF CONTRIBUTIONS/DEPOSITS
DISBURSEMENTS
1. Sheila Hutcheson, plan administration fees - $3,300.00 ($1100 /month); special
meeting fee (Board's share, 6/13/11) - $200.00; mileage expense - $10.50
2. Christiansen & Dehner, professional legal fees, $1,138.36
3. The Bogdahn Group, performance consultant fees, 2 quarter, 2011 - $3,625.00
4. Bruce Bergstrom (terminated, vested employee) - commencement of retirement as
of August 1, 2011 - retiree's lifetime with 100% survivor option
5. Paulette Tubbs, commencement of retirement as of June 1, 2011 - retiree's
lifetime option, with refund of member contribution
6. Jimmie Autry (terminated, vested employee) - commencement of retirement as
of September 1, 2011 - retiree's lifetime option
7. Foster & Foster, actuarial services - $840.00
DEPOSITS
None
VII. STAFF REPORTS, DISCUSSION, AND ACTION
VIII. TRUSTEES' REPORTS, DISCUSSION, AND ACTION
IX. REQUESTS FROM THE PUBLIC/EMPLOYEES PRESENT
X. ADJOURNMENT
CITY OF EDGEWATER
GENERAL EMPLOYEES' PENSION BOARD OF TRUSTEES QUARTERLY MEETING
CITY HALL COUNCIL CHAMBER
104 N. Riverside Drive, Edgewater, Florida 32132
AGENDA
Monday, September 19, 2011 - 11:00 A.M.
Pursuant to Chapter 286, F.S., if an individual decides to appeal any decision made with respect to any matter considered at a meeting or
hearing, that individual will need a record of the proceedings and will need to insure that a verbatim record of the proceedings is made. In
accordance with the Americans with Disabilities Act, persons needing assistance to participate in any of these proceedings should contact
City Clerk Bonnie Wenzel, 386 - 424 -2400, Ext# 1101, prior to the meeting.
I. CALL TO ORDER/ROLL CALL/DETERMINATION OF A QUORUM
II. APPROVAL OF MINUTES - Quarterly Meeting - June 13, 2011; Special Meeting -
June 13, 2011; Special Meeting - August 1, 2011
III. NEW BUSINESS
Foster & Foster - notice of fee increase
IV. OLD BUSINESS
V. REPORTS (ATTORNEY /CONSULTANTS)
1. The Bogdahn Group, Performance Consultant
• Quarterly report - June 30, 2011
• Review 2009 IPS
2. H. Lee Definer, Plan Attorney
• Legislative update
3. Sheila Hutcheson, Plan Administrator
VI. PROCESSED DISBURSEMENTS/RETURN OF CONTRIBUTIONS/DEPOSITS
DISBURSEMENTS
1. Sheila Hutcheson, plan administration fees - $3,300.00 ($1100 /month); special
meeting fee (Board's share, 6/13/11) - $200.00; mileage expense - $10.50
2. Christiansen & Dehner, professional legal fees, $1,138.36
3. The Bogdahn Group, performance consultant fees, 2 " quarter, 2011 - $3,625.00
4. Bruce Bergstrom (terminated, vested employee) - commencement of retirement as
of August 1, 2011 - retiree's lifetime with 100% survivor option
5. Paulette Tubbs, commencement of retirement as of June 1, 2011 - retiree's
lifetime option, with refund of member contribution
6. Jimmie Autry (terminated, vested employee) - commencement of retirement as
of September 1, 2011 - retiree's lifetime option
7. Foster & Foster, actuarial services - $840.00
DEPOSITS
None
VII. STAFF REPORTS, DISCUSSION, AND ACTION
VIII. TRUSTEES' REPORTS, DISCUSSION, AND ACTION
IX. REQUESTS FROM THE PUBLIC /EMPLOYEES PRESENT
X. ADJOURNMENT
General Employees' and Police Pension Boards of Trustees
Minutes - Joint Special Meeting
August 1, 2011
Page 1 of 2
CITY OF EDGEWATER
GENERAL EMPLOYEES' and POLICE OFFICERS' PENSION BOARD OF TRUSTEES
JOINT SPECIAL MEETING
CITY HALL COUNCIL CHAMBER
104 N. Riverside Drive, Edgewater, Florida 32132
Monday, August 1, 2011
2:00 p.m.
MINUTES
CALL TO ORDER/ ROLL CALL/DETERMINATION OF A QUORUM
The Edgewater General Employees' and Police Officers' Pension Boards held a special meeting on
Monday, August 1, 2011 in the City Hall Council Chamber at the City of Edgewater, Florida.
Members Present (General): Tim Sopko
John McKinney
Bobby Laramore
Tyna Hilton
John Brackin
Members Absent (General): Gigi Bennington
Brenda Dewees
Members Present (Police): Gary Conroy
Lawrence Leaf
Ferd Heeb
Members Absent (Police): Vincent McCauley
Plan Attorney: H. Lee Dehner (by telephone)
Plan Administrator: Sheila Hutcheson
City Staff: Tracey Barlow, City Manager
Julie Christine, Personnel Department
The special meeting of the Police Officers' and General Employees' Boards of Trustees was called to
order at 2:18 p.m. by Secretary Hilton and Secretary Conroy, respectively. Both Boards had a
quorum.
Discussion/Action: Draft Amendments to the Education section of the Personnel Policy
The Plan Administrator provided an overview of the draft Education Policy that had been previously
submitted to the Boards and which was continued at the June 13 quarterly meetings to this special
meeting to allow additional time for review. City manager Barlow had requested the Boards' input by
this week as he is submitting the policy to the City Council soon for implementation as of October 1,
2011. Secretary Hilton asked if most Boards follow their cities' policies; Attorney Dehner, who
attended via telephone, said that is mostly the case, but it is not required. Police Member Heeb asked
if the Board has to formally adopt this policy; Mr. Dehner said whatever action the Board decides to
take in this regard would be included in its Operating Rules Manual. The Attorney continued by
stating that adopting the City's policy avoids controversy or adverse publicity regarding the Board if it
adopts more liberal policies. The Plan Administrator commented that the logistics of payments would
change, in that this would be processed through the internal City procedures for payments, but the
General Employees' and Police Pension Boards of Trustees
Minutes - Joint Special Meeting
August 1, 2011
Page 2 of 2
Boards would retain the authority to approve attendance at training/education opportunities. If the
Boards adopt the City policy, the Operating Rules Manual would include the City policy as an
attachment to the Rules. Secretary Hilton asked for comments by the General Employees' Board. It
was the Board's consensus to accept the policy.
Police Secretary Conroy asked to table the discussion until the Board's new trustee is elected. The
Police Board has to either have its own policy or follow the City's policy.
Member Heeb made a motion to follow the City policy; the motion died for lack of a second. City
Manager Barlow suggested proceeding with the policy as written, including the Police Board.
Attorney Dehner recommended either adopting the City policy today, or if not, the Board would be
required to comply with the policy outlined in F.S.112.061, which is more restrictive, until such time
as the Board adopts a policy of its own or adopts the City policy. Secretary Conroy asked that this item
be further discussed at the September 19 quarterly meeting; he also requested that the Administrator
email F.S. 112.061 and F.S.166.021 to the Board members.
The City Manager asked Attorney Dehner to confirm that if the City adopts the policy, it will apply
only to the Boards that have formally adopted it. Mr. Dehner confirmed this is correct. He also
reiterated that if the Police Board doesn't adopt the City policy, the Board will be subject F.S.112.061.
Secretary Conroy said the Board will follow F.S.112.061 until the Board either adopts its own policy
or adopts the City policy, after further consideration at the September 19 meeting.
STAFF REPORTS, CONSULTANTS' REPORTS, DISCUSSION /ACTION - None.
TRUSTEES' REPORTS, DISCUSSION, AND ACTION/REQUESTS FROM THE
PUBLIC/EMPLOYEES PRESENT - None.
ADJOURNMENT
The Boards adjourned at 2:52 p.m.
Respectfully Submitted: Approved:
Sheila Hutcheson Chairman
Plan Administrator Police Officers' Pension Board
Approved:
Gigi Bennington, Chairman
General Employees' Pension Board
General Employees' and Police Pension Boards of Trustees
Minutes - Joint Special Meeting
June 13, 2011
Page 1 of 2
CITY OF EDGEWATER
GENERAL EMPLOYEES' and POLICE OFFICERS' PENSION BOARD OF TRUSTEES
JOINT SPECIAL MEETING
CITY HALL COUNCIL CHAMBER
104 N. Riverside Drive, Edgewater, Florida 32132
Monday, June 13, 2011
10:00 a.m.
MINUTES
CALL TO ORDER/ ROLL CALL/DETERMINATION OF A QUORUM
The Edgewater General Employees' and Police Officers' Pension Boards held a special meeting on
Monday, June 13, 2011 in the City Hall Council Chamber at the City of Edgewater, Florida.
Members Present (General): Tim Sopko
John McKinney
Bobby Laramore
Brenda Dewees
Tyna Hilton
Gigi Bennington
Members Absent (General): John Brackin
Members Present (Police): Dan Blazi
Gary Conroy
Lawrence Leaf
Ferd Heeb
Members Absent (Police): Vincent McCauley
Plan Attorney: H. Lee Dehner
Milberg Attorneys: Roland Riggs (by telephone)
Anita Kartalopolous (by telephone)
Ariana Tadler (by telephone)
Christopher Polaszek
City Attorney: Aaron Wolfe
Performance Consultant: Jack Evatt, The Bogdahn Group
Plan Administrator: Sheila Hutcheson
Plan Actuary: Brad Heinrichs, Foster & Foster (by telephone)
City Staff: Tracey Barlow, City Manager
Donna Looney, Personnel Director
The special meeting of the Police Officers' and General Employees' Boards of Trustees was called to
order at 10:02 a.m. and 10:03 a.m. by Chairman Bennington and Chairman Blazi, respectively. Both
Boards had a quorum.
Status Report - Issues with Principal (Milberg LLP and other consultants)
Attorneys Polaszek and Dehner, along with other Milberg Attorneys summarized relevant information
for the Boards regarding the issues with Principal and potential settlement options in this regard. They
will keep the Boards apprised of the status of negotiations.
STAFF REPORTS, CONSULTANTS' REPORTS, DISCUSSION /ACTION - None.
General Employees' and Police Pension Boards of Trustees
Minutes - Joint Special Meeting
June 13, 2011
Page 2 of 2
TRUSTEES' REPORTS, DISCUSSION, AND ACTION/REQUESTS FROM THE
PUBLIC/EMPLOYEES PRESENT - None.
ADJOURNMENT
The Boards adjourned at 10:58 a.m.
Respectfully Submitted: Approved:
Sheila Hutcheson Chairman
Plan Administrator Police Officers' Pension Board
Approved:
Gigi Bennington, Chairman
General Employees' Pension Board
General Employees' Pension Board of Trustees
Minutes - Regular Meeting
June 13.2011
Page 1 of 3
CITY OF EDGEWATER
GENERAL EMPLOYEES' PENSION BOARD
Regular Meeting
MINUTES
Monday, June 13, 2011
CALL TO ORDER/ ROLL CALL/DETERMINATION OF A QUORUM
The Edgewater General Employees' Pension Board held its quarterly (regular) meeting on Monday, June
13, 2011 in the City Hall Council Chamber at the City of Edgewater, Florida.
Members Present: Brenda Dewees
Bobby Laramore
Tim Sopko
Tyna Hilton
Gigi Bennington
John McKinney
Members Absent: John Brackin
Plan Attorney: H. Lee Dehner
Board Administrator: Sheila Hutcheson
Consultant: Jack Evatt, The Bogdahn Group
City Staff: Tracey Barlow, City Manager
Donna Looney, Personnel Director
Chairman Bennington called the meeting to order at 11:05 a.m.; there was a quorum, with six members
present.
APPROVAL OF MINUTES - March 14, 2011 Quarterly Meeting and March 14, 2011 Joint Special
Meeting
Member Laramore made a motion to approve the minutes of the March 14, 2011 quarterly meeting and
March 14, 2011 joint special meeting; Member Hilton seconded the motion, which passed unanimously.
NEW BUSINESS
Draft Amendments to the Education section of the Personnel Policy (City Manager)
City Manager Tracey Barlow outlined the policy provisions which resulted from a recent audit. The
policy includes provisions that the Board would use the City's process, procedures, and forms.
The Board's consensus was to continue this item until the next meeting but no later than first week in
August after the Board and Attorney Dehner review it. At that time, the Board will consider its position
on the policy and notify the City Manager prior to action by the City Council, which needs to adopt the
policy in order to address an audit item.
OLD BUSINESS - None
General Employees' Pension Board of Trustees
Minutes - Regular Meeting
June 13.2011
Page 2 of 3
REPORTS (ATTORNEY /CONSULTANTS)
The Bogdahn Group, Performance Consultant
Quarterly Report - March 31, 2011
Jack Evatt opened by discussing both the first quarter of 2011 and the markets since the end of March.
Equity markets have remained strong and relatively stable despite various conditions. The fixed income
markets have done fairly well too. The month of June has shown a downturn. The fund's assets were
$12,908,620 as of March 31, 2011, compared to $12,677,312 as of December 31, 2010. The return for the
quarter was 3.41% (net and gross, since it cannot be determined what Principal's fees are), outperforming
the index. The fiscal year -to -date returns are 9.14 %. He reviewed the inflows /outflows of the plan. Mr.
Evatt discussed the various investment options in the plan, noting that the large cap value and large cap
growth have been the worst performers. He said that since it looks like the termination from Principal is
going to occur soon, he may not recommend any manager /allocation changes at this time. The Board and
Attorney agreed. He said he had discussed with Attorney Polaszek the way the real estate and other
investments would be refunded upon termination: by cash or "in- kind." The Attorney will check on this.
The portfolio is in better shape than in the past, and he will continue to review the process for changes in
case the Principal separation is delayed.
Mr. Evatt concluded with a recommendation that the Board review the Investment Policy Statement
(IPS), which was adopted in 2009 at the next meeting. The Administrator will distribute the IPS with the
next quarterly meeting agenda.
H. Lee Dehner, Plan Attorney
Legislative update
Attorney Definer opened his report with an update on SB 1128 which passed and has now been submitted
to the Governor for signature (which is expected). The bill defines compensation for benefit purposes,
providing that after July 1, 2011 or the next bargaining agreement (when all parties have signed the
contract), compensation will be fixed salary + 300 hours of overtime pay each year. Other payments,
such as unused leave, bonuses, etc., will no longer count as pensionable. Unused leave on the books as of
July 1 or the date the labor contract is signed will count as the maximum amount that can be considered
pensionable at the time of retirement. It can be calculated at the rate of pay in effect at time of retirement
and the pension contribution by the member and the City will be taken only on that "grandfathered"
amount. Another provision is that a task force will be created to review disability presumptions and
report back on recommended changes in the future. There will also be a report on the financial strength
of State plans and certain additional reporting requirements for valuations.
The Attorney concluded his report with a reminder that annual Financial Disclosure Forms are due by
July 1, 2011.
Sheila Hutcheson, Plan Administrator
Fee schedule for special meetings ($400.00)
The Administrator advised that this fee schedule is necessary due to the frequency of special meetings in
General Employees' Pension Board of Trustees
Minutes - Regular Meeting
June 13, 2011
Page 3 of 3
the past year. The Police Board has already approved the fee, which will be split between the two plans
for joint meetings (like today's joint meeting).
Member Hilton made a motion to authorize the contract amendment for a $400 fee for special meetings
($200 for joint special meetings); Member Dewees seconded the motion, which passed unanimously.
Attorney Dehner had brought the contract amendment for execution.
PROCESSED DISBURSEMENTS/RETURN OF CONTRIBUTIONS/DEPOSITS
DISBURSEMENTS
1. Sheila Hutcheson, plan administration fees - $3,300.00 ($1100/month);
postage /mileage expense - $22.22
2. Christiansen & Dehner, professional legal fees, $1,619.98, $65.00
3. The Bogdahn Group, performance consultant fees, i quarter, 2011 - $3,625.00
4. Foster & Foster, actuarial services - $17,660.00
DEPOSITS
None
Member McKinney made a motion to approve the processed disbursements /return of contributions and
deposits; Member Sopko seconded the motion, which passed unanimously.
TRUSTEES', STAFF, EMPLOYEES', and PUBLIC REPORTS, DISCUSSION and ACTION -
None
ADJOURNMENT
There was 110 further business and the Chairman adjourned the meeting at 12:04 p.m.
Respectfully Submitted: Approved:
Sheila Hutcheson, Plan Administrator Gigi Bennington, Chairman
uu}rnuiau.aoi.corrvjs /90 11 I /aol- 1 /en- us /maI I /PrintMessage.asi
From: Sheila Hutcheson <shutch9750 @aol.com>
To: niday.tonya @principal.com; fredricks.jill @principal.com
Subject: Edgewater Plans - Invoices
Date: Tue, Jun 14, 2011 7:24 pm
Attachments: Police_expense_invoice _6- 30- 11.doc (27K), General-invoice _ expenses_6- 30- 2011.doc (29K)
June 14, 2011
Attached are invoices for payment of my expenses for the quarter ending June 30,
2011 (add to the checks for each plan's $1,100 monthly fees for March) as follows
for Edgewater General and Police:
Sheila Hutcheson. - Expense reimbursement - $210.50 (General) - total June check
will a $1,310.50
Sheila utcheson. - Plan Administration Fees - $210.50 (Police) - total March check
will be $1,310.50
Please mail the checks to the address on the statements and please email me a
copy of the checks.
Thank you for your prompt processing of these invoices.
Sheila Hutcheson
Pension Plan Administrator
3860 Grantline Road
Mims, FL 32754
321 - 267 -3082
321- 267 -4728 (facsimile)
shutch9750t aol.com
of 1
6/14/2011 7:25 PM
SHEILA HUTCHESON
3860 GRANTLINE ROAD
MIMS, FL 32759
321 - 298 -6619
June 14, 2011
Bill to:
The Principal
P.O. Box 9394
Des Moines, IA 50306 -9394
VIA EMAIL TO: TONYA NIDAY
Reference: City of Edgewater General Employees' Pension Plan (Annuity Contract #: 4-
29487)
Statement for Plan Administration Expenses - quarter ending June 30, 2011
Description Amount
Mileage (Board's share: June 13, 2011
meetings) $ 10.50
Special meeting fee (Board's share) - June 13, 2011 $200.00
TOTAL: $210.50
Please mail check in the amount of $1,310.50 (monthly and special
meeting fees plus quarterly expenses) to:
MS. SHEILA HUTCHESON
3860 GRANTLINE ROAD
MIMS, FL 32754
uupatuiaii.auI.wuu.),Ii ii /aom- lien -us /maw rrinllvtessage.asp:
From: Sheila Hutcheson <shutch9750 @aol.com>
To: fredricks.jill @principal.com; niday.tonya @principal.com
Subject: Edgewater Plans - Invoices to pay
Date: Mon, Jul 4, 2011 8:56 pm
Attachments: June_2011_ _Police.pdf (398K), June_2011 _Gen.pdf (398K)
Attached are invoices for payment, as follows:
Christiansen & Dehner, P.A. - _ 1,138.36 - General
Christiansen & Dehner, P.A. - $1,495.86 - Police
Please mail the checks to the address on the statement and please email me a copy of the check for each
plan.
Thank you for your prompt processing of these invoices. Please contact me if you have any questions or
need any additional information.
Sheila Hutcheson
Pension Plan Administrator
3860 Grantline Road
Mims, FL 32754
321- 267 -3082
321 - 267 -4728 (facsimile)
shutch9750(c�aol. com
of 1 7/4/2011 8:59 PM
Christiansen & Dehner, P. A.
63 Sarasota Center Boulevard
Suite 107
Sarasota, FL 34240-
941- 377 -2200 941- 377 -4848
Phone
Fax
June 30, 2011
City of Edgewater General Employees' Pension Plan
0/0 Sheila Hutcheson
3860 Grantline Road
Mims, FL 32754
Invoice Number
In Reference To: Edgewater General Employee's 0615 19783
Pension Plan
Professional Services
Hours Amount
6/9/2011 Telephone conference with Milberg. 0.30 97.50
6/13/2011 Preparation for and attendance at joint meeting. 0.50 162.50
Preparation and attendance at Board Meeting. 1.20 390.00
Travel Time
2.30 373.75
For professional services rendered 4.30 $1,023.75
Additional Charges :
Qty
6/13/2011 Car Expense 1 66.30
Food Expense 1 14.84
Hotel Charge 1 33.47
Total additional charges $114.61
Total amount of this bill $1,138.36
Balance due
$1,138.36
Please note that the "Balance Due" figure at the end of this bill reflects both "Total New Charges - Current Period" and
any previous balances due. In most cases, if the previous balance(s) have already been approved for payment but not yet
received in our office, you should be paying only the "Total New Charges - for services and /or expenses" . Thank you
Please indicate account number(s) with payment.
(Please Deduct any payments not reflected in Balance due)
u.. V......1 ...SV 41.. 1 1 V1 VLLtJ nup: / /man.aor.comijj86 -2 t Uaol- Uen - us /mall /PrintMessage.asp:
From: Sheila Hutcheson <shutch9750 @aol.com>
To: fredricks.jill @principal.com; niday.tonya @principal.com
Subject: Invoices - Edgewater Plans - Bogdahn Group
Date: Thu, Jun 23, 2011 12:54 pm
Attachments: scan0009.pdf (624K)
June 23, 2011
Attached are invoices for payment, as follows:
The Bogdahn Gro . - $3,625.00 - ("1e • - .
The Bogdahn Group - $3,625.00 - Police
Please mail the checks to the following address:
The Bogdahn Group
4901 Vineland Road, Suite 600
Orlando, FL 32811
Please email me a copy of the check for each plan.
Thank you for your prompt processing of these invoices. Please contact me if you have any questions or need any
additional information.
Sheila Hutcheson
Pension Plan Administrator
3860 Grantline Road
Mims, FL 32754
321 - 267 -3082
321 - 267 -4728 (facsimile)
shutch9750(a�aol. com
of 1 6/23/2011 12:54 PM
THE
BOGDAHN
GROUP Date Invoice #
6/24/2011 6364
4901 Vineland Rd Suite 600 Orlando, FL 32811
Bill To
Edgewater General Employee Pension Plan
email - Sheila Hutcheson
Description Amount
Performance Evaluation and Consulting Services 3,625.00
4/1/2011-6/30/2011
Balance Due 3,625.00
"" pay II It nttp://maiLaol.com/34078-111/ao1-1/en-us/mai I/PrintMessage.asi
From: Sheila Hutcheson <shutch9750 @aol.com>
To: fredricks.jill @principal.com; niday.tonya @principal.com
Subject: Edgewater Plans - Foster and Foster invoices for payment
Date: Sun, Sep 11, 2011 1:10 pm
Attachments: Inv_2256_from Foster Fost _Gen.pdf (151 K), Inv_2257_from_Foster Fost_ = Police.pdf (153K)
Attached are invoices for payment, as follows for Edgewater Police and General Plans:
Foster & Foster - Actuarial Services Fees -Sept. 9, 2011 - $415.00 (Police)
Foster & Foster - Actuarial Services Fees - Sept. 9, 2011 - $840.00 (General)
Please mail the checks to the address on the statements and please email me a copy of the checks.
Thank you for your prompt processing of these invoices.
Sheila Hutcheson
Pension Plan Administrator
3860 Grantline Road
Mims, FL 32754
321 - 267 -3082
321 - 267 -4728 (facsimile)
shutch9750(a)aol. com
If 1
9/12/2011 9:25 AM
Foster&Foster. Invoice
Phone: (239) 433 -5500
Date Invoice
Fax: (239) 481 -0634
data @foster- foster.com 9/9/2011 2256
Bill To
City of Edgewater General
Employee's Pension Fund
3860 Grantline Road
Mims, FL 32754 Terms Due Date
Net 30 10/9/2011
Description Amount
Preparation for and attendance at March 14, 2011 Board meeting (Board's share of expenses) 185.00
Delivery of October 1, 2010 Actuarial Valuation Report to Sheila Hutcheson. 30.00
Benefit Calculations: TUBBS (2), BERGSTROM, AUTRY 600.00
Preparation for and letter of correspondence dated June 14, 2011 responding to auditor's questions 25.00
regarding the October 1, 2010 actuarial valuation.
Payments /Credits $0.00
Thank you for your business! Balance Due $840.00
Please make all checks payable to:
Foster & Foster, Inc.
13420 Parker Commons Blvd, Suite 104
Fort Myers, FL 33912
Foster&Foster,.
Actuarial Consultants for Public Pension Plans
July 14, 2011
VIA EMAIL
Sheila Hutcheson
City of Edgewater
General Employee's Pension Fund
3860 Grantline Road
Mims, FL 32754
Re: Edgewater General Employees' Pension Fund
Dear Ms. Hutcheson,
As you are probably aware, the Governor recently signed Senate Bill 1128 which will have an
impact on all local law plans in the State of Florida. In addition to curtailing the amount of
retirement benefits a Member may receive, the bill also requires additional actuarial and
administrative work in order to comply with the Statute. Specifically, the liabilities for the plan
must now be shown using the interest rate utilized by the Florida Retirement System (7.75%
currently) in addition to displaying those using the Board's assumption. The administration
surrounding the calculations of retirement benefits and prior service purchases have also become
more complex.
To accommodate the extra work necessary to comply and administer the plans under the new
statutory requirements, we have hired three additional staff members. Unfortunately, the
additional effort required to perform certain tasks has prompted us to request that the Board
adopt the following fee schedule, effective immediately:
Service Description Current Fees Proposed Fees
Individual Normal or Early $150 $200*
Retirement Benefit Calculations
Calculation of Liabilities Using N/A 10% of the
the FRS Interest Rate valuation fee, if
(currently 7.75 %) applicable
* Our fee for benefit calculations and the certification of the normal form of payment and all
optional forms is $200, provided that the information is submitted using our standardized form.
Information provided by any other means will incur a $300 charge.
13420 Parker Commons Blvd., Suite 104 Fort Myers, FL 33912 - (239) 433 - 5500 • Fax (239) 481 -0634 • www.foster- foster.com
While our costs of doing business have markedly increased during this time, we are not requesting
an increase to our hourly rates this year. This decision was made in consideration of the additional
administrative costs associated with complying with the recently passed bill, along with the
challenging economic environment all plans are facing.
If you have any questions, concerns, or would like to talk about this further, please do not hesitate
to contact us.
Sincerely,
Uoug ,ozen
Foster&Fost
Principal°
Financial Principal Life
Group Insurance Company
June 2011
000171 429487 C
PERSONAL & CONFIDENTIAL
SHEILA M. HUTCHESON
PENSION PLAN ADMINISTRATOR
3860 GRANTLINE RD
MIMS, FL 32754 -5209
RE: CITY OF EDGEWATER FLORIDA GENERAL EMPLOYEES
Group Annuity Contract Number 4 -29487
Dear Sheila:
We notified you in September 2010 about changes impacting two of your retirement plan's
investment options.
The enclosed endorsement, which merges two Separate Accounts, applies to your group annuity
contract. Please file the endorsement and this letter with your contract document. No further
action is required by you.
Details regarding the endorsement are as follows:
Principal SmallCap Value I Separate Account Merger Endorsement
• Principal SmallCap Value I Separate Account merged into Principal SmallCap Value
II Separate Account.
If you have questions about the above information, please contact your representative at the
Principal Financial Group ® . Thank you for choosing The Principal for your retirement plan
needs.
Sincerely,
Tonya Niday
Client Service Manager II
(800) 543 -4015, ext. 64969
The Principal Financial Group
cc JACK ASCHERL
Insurance products and plan administrative services are provided by Principal Life Insurance Company, a
member of the Principal Financial Group`' (The Principal''), Des Moines, IA 50392.
ti l041404ci GP 57540 FL
1
Principal Life Insurance Company
Principal SmallCap Value I Separate Account Merger Endorsement
This endorsement is made a part of the contract to which it is attached. The purpose of this
endorsement is to merge one (1) Separate Account into another Separate Account as
indicated below.
Effective November 12, 2010
The Principal SmallCap Value I Separate Account was merged into the Principal SmallCap
Value II Separate Account.
All current references to the Principal SmallCap Value I Separate Account that are
contained in the contract or attached riders are removed and are no longer a part of the
contract or attached riders.
The Principal SmallCap Value II Separate Account is a part of, or will be added, where
needed, to the Separate Account rider which includes the Principal SmallCap Value I
Separate Account and is a part of your contract.
These changes do not affect the benefits to be provided under the contract or the
operation of the remaining Separate Accounts, as explained in the contract.
The effective date of this endorsement is the later of (i) the date this endorsement has
been approved for use in the state of delivery, or (ii) November 12, 2010.
PRINCIPAL LIFE INSURANCE COMPANY
•
Chairman, President and
Chief Executive Officer
To obtain information or make a complaint, you may call Principal Life Insurance Company
toll -free at 1 -800- 543 -4015. You may also write to Principal Life Insurance Company at
Principal Life Insurance Company, 711 High Street, Des Moines, Iowa 50392 -0001.
GP 57540 FL
092010
CITY OF EDGEWATER
(PLAN SPONSOR)
GENERAL EMPLOYEES' PENSION PLAN
Investment Policy Statement
I. PURPOSE OF INVESTMENT POLICY STATEMENT
The Pension Board of Trustees (Board) maintains that an important determinant of future
investment returns is the expression and periodic review of the City of Edgewater General
Employees' Pension Plan (the Plan) investment objectives. To that end, the Board has adopted
this statement of Investment Policy and directs that it apply to all assets under their control.
In fulfilling their fiduciary responsibility, the Board recognizes that the retirement system is an
essential vehicle for providing income benefits to retired participants or their beneficiaries. The
Board also recognizes that the obligations of the Plan are long -term and that investment policy
should be made with a view toward performance and return over a number of years. The general
investment objective is to obtain a reasonable total rate of return - defined as interest and
dividend income plus realized and unrealized capital gains or losses - commensurate with the
Prudent Investor Rule and any other applicable ordinances and statutes.
Reasonable consistency of return and protection of assets against the inroads of inflation are
paramount. However, interest rate fluctuations and volatility of securities markets make it
necessary to judge results over the context of three and five years rather than over short periods
of three years or less.
The Board will employ investment professionals to oversee and invest the assets of the Plan.
Within the parameters allowed in this document and their agreements with the Board, the
investment management professionals shall have investment discretion over their mandates,
including security selection, sector weightings and investment style.
The Board, in performing their investment duties, shall comply with the fiduciary standards set
forth in Employee Retirement Income Security Act of 1974 (ERISA) at 29 U.S.C. s. 1104(a) (1)
(A) — (C). In case of conflict with other provisions of law authorizing investments, the
investment and fiduciary standards set forth in this section shall prevail.
Adopted: 10 -09 Page 1
II. TARGET ALLOCATIONS
In order to provide for a diversified portfolio, the Board has engaged investment professional(s)
to manage and administer the fund. The investment manager(s) are responsible for the assets and
allocation of their mandate only and may be provided an addendum to this policy with their
specific performance objectives and investment criteria. The Board has established the
following asset allocation targets for the total fund:
Asset Class Target Range Benchmark Index
Domestic Equity 45% 40% - 60% Russell 3000
International Equity 15% 10% - 25% MSCI ACWI ex. U.S.
Broad Market Fixed Income 25% 15% - 40% Barclays Aggregate
TIPS* 5% 0% - 10% Barclays TIPS
Real Estate* 10% 0% - 15% NCREIF Property
*Benchmark will default to "broad market fixed income" if these portfolios are not funded. Targets and
ranges above are based on market value of total Plan assets.
*MSCI ACWI ex U.S. — Morgan Stanley Capital International — All Country World Index excluding
United States.
The investment consultant will monitor the aggregate asset allocation of the portfolio, and will
rebalance to the target asset allocation based on market conditions. If at the end of any calendar
quarter, the allocation of an asset class falls outside of its allowable range, barring extenuating
circumstances such as pending cash flows or allocation levels viewed as temporary, the asset
allocation will be rebalanced into the allowable range. To the extent possible, contributions and
withdrawals from the portfolio will be executed proportionally based on the most current market
values available. The Board does not intend to exercise short-term changes to the target
allocation.
III. INVESTMENT PERFORMANCE OBJECTIVES
The following performance measures will be used as objective criteria for evaluating the
effectiveness of the Investment Managers.
A. Total Portfolio Performance
1. The performance of the total portfolio will be measured for rolling three and five year
periods. The performance of the portfolio will be compared to the return of the policy
indexes comprised of 45% Russell 3000, 15% MSCI ACWI ex. U.S., 25% Barclays
Aggregate Bond Index, 5% Barclays TIPS Index and 10% NCREIF Property Index.
2. On a relative basis, it is expected that the total portfolio performance will rank in the top
40 percentile of the appropriate peer universe over three and five -year time periods.
3. On an absolute basis, the objective is that the return of the total portfolio will equal or
exceed the actuarial earnings assumption (8 %), and provide inflation protection by
meeting Consumer Price Index plus 3 %.
Adopted: 10 -09 Page 2
1
B. Equity Performance
The combined equity portion of the portfolio, defined as common stocks and convertible
bonds, is expected to perform at a rate at least equal to the 75% Russell 3000 and 25%
MSCI ACWI ex. U.S. Index. Individual components of the equity portfolio will be
compared to the specific benchmarks defined in each Investment Manager addendum. All
portfolios are expected to rank in the top 40 percentile of the appropriate peer universe over
three and five -year time periods.
C. Fixed Income Performance
The overall objective of the fixed income portion of the portfolio is to add stability and
liquidity to the total portfolio. The fixed income portion of the portfolio is expected to
perform at a rate at least equal to the Barclays Capital U.S. Aggregate Bond Index. All
portfolios are expected to rank in the top 40 percentile of the appropriate peer universe over
three and five -year time periods.
D. Treasury Inflation Protection Security (TIPS) Performance
The overall objective of the TIPS portfolio, if utilized, is to provide inflation protection
while adding stability to the total portfolio. If TIPS are utilized the strategy is expected to
approximate the structure and performance of the Barclays Capital U.S Treasury TIPS
Index.
E. Real Estate Performance
The overall objective of the real estate portfolio, if utilized, is to add diversification and
another stable income stream to the total fund. The real estate portion of the total fund is
expected to perform at a rate at least equal to the NCREIF Index and rank in the top 40
percentile of the appropriate peer universe over three and five -year time periods.
F. Alternative and Other Asset Performance
The overall objective of the alternative and /or "other asset" portion of the portfolio, if
utilized, is to reduce the overall volatility of the portfolio and enhance returns. This portion
of the fund will be benchmarked as outlined in the manager addendum.
IV. INVESTMENT GUIDELINES
A. Authorized Investments
Pursuant to the investment powers of the Board of Trustees as set forth in the Florida Statutes and
local ordinances, the Board of Trustees sets forth the following investment guidelines and
limitations:
1. Equities:
a. Must be traded on a national exchange or electronic network; and
Adopted: 10 -09 Page 3
b. Not more than 5% of the Plan's assets, at the time of purchase, shall be invested in
the common stock, capital stock or convertible bond of any one issuing company,
nor shall the aggregate investment in any one issuing company exceed 5% of the
outstanding capital stock of the company; and
c. Additional criteria may be outlined in the manager's addendum.
2. Fixed Income:
a. 85% of the fixed income investments shall have a minimum rating of investment
grade or higher as reported by a major credit rating service; and
b. The value of bonds issued by any single corporation shall not exceed 5% of the
total fund; and
c. Additional criteria may be outlined in the manager's addendum.
3. Money Market:
a. The money market fund or STIF options provided by the Plan's custodian; and
b. Have a minimum rating of Standard & Poor's Al or Moody's P1.
4. Pooled Funds:
Investments made by the Board may include pooled funds. For purposes of this policy
pooled funds may include, but are not limited to, mutual funds, commingled funds,
exchange- traded funds, limited partnerships and private equity. Pooled funds may be
governed by separate documents which may include investments not expressly
permitted in this Investment Policy Statement. In the event of investment by the Plan
into a pooled fund, the Board will adopt the prospectus or governing policy of that fund
as the stated addendum to this Investment Policy Statement.
B. Trading Parameters
When feasible and appropriate, all securities shall be competitively bid. Except as otherwise
required by law, the most economically advantageous bid shall be selected. Commissions
paid for purchase of securities must meet the prevailing best - execution rates. The
responsibility of monitoring best price and execution of trades placed by each manager on
behalf of the Plan will be governed by the Portfolio Management Agreement between the
Plan and the Investment Managers.
C. Limitations
1. Investments in corporate common stock and convertible bonds shall not exceed seventy
(70 %) of the Plan assets at market.
2. Foreign securities shall not exceed twenty -five percent (25 %) of Plan's market value.
3. All securities must be readily marketable.
Adopted: 10 -09 Page 4
D. Absolute Restrictions
No investments shall be permitted in;
1. Any investment not specifically allowed as part of this policy.
2. Illiquid investments, as described in Chapter 215.47, Florida Statutes.
V. COMMUNICATIONS
A. On a monthly basis, the custodian shall supply an accounting statement that will include a
summary of all receipts and disbursements and the cost and the market value of all assets.
B. On a quarterly basis, the Investment Managers shall provide a written report affirming
compliance with the security restrictions of Section IV (as well as any provisions outlined in
the Investment Manager's addendum). In addition, the Investment Managers shall deliver a
report each quarter detailing the Plan's performance, forecast of the market and economy,
portfolio analysis and current assets of the Plan. Written reports shall be delivered to the
Board within 30 days of the end of the quarter. A copy of the written report shall be
submitted to the person designated by the City, and shall be available for public inspection.
The Investment Managers will provide immediate written and telephone notice to the Board
of any significant market related or non - market related event, specifically including, but not
limited to, any deviation from the standards set forth in Section IV or their Investment
Manager addendum.
C. If the Fund owns investments, that complied with section IV at the time of purchase, which
subsequently exceed the applicable limit or do not satisfy the applicable investment
standard, such excess or noncompliant investments may be continued until it is
economically feasible to dispose of such investment in accordance with the prudent man
standard of care, but no additional investment may be made unless authorized by law or
ordinance. An action plan outlining the investment `hold or sell' strategy shall be provided
to the Board immediately.
D. The Investment Consultant shall evaluate and report on a quarterly basis the rate of return
net of investment fees and relative performance of the Plan.
E. The Board will meet periodically to review the Investment Consultant performance report.
The Board will meet with the investment manager and appropriate outside consultants to
discuss performance results, economic outlook, investment strategy and tactics and other
pertinent matters affecting the Plan on a periodic basis.
F. At least annually, the Board shall provide the Investment Managers with projected
disbursement needs of the Plan so that the investment portfolio can be structured in such a
manner as to provide sufficient liquidity to pay obligations as they come due. To this end
the Investment Managers should, to the extent possible, attempt to match investment
maturities with known cash needs and anticipated cash -flow requirements.
Adopted: 10 -09 Page 5
VI. COMPLIANCE
A. It is the direction of the Board that the plan assets are held by a third party custodian, and that
all securities purchased by, and all collateral obtained by the plan shall be properly
designated as Plan assets. No withdrawal of assets, in whole or in part, shall be made from
safekeeping except by an authorized member of the Board or their designee. Securities
transactions between a broker - dealer and the custodian involving purchase or sale of
securities by transfer of money or securities must be made on a "delivery vs. payment" basis
to insure that the custodian will have the security or money in hand at conclusion of the
transaction.
B. MASTER REPURCHASE AGREEMENT.- -The investment policy shall require all
approved institutions and dealers transacting repurchase agreements to execute and perform
as stated in the Master Repurchase Agreement. All repurchase agreement transactions shall
adhere to the requirements of the Master Repurchase Agreement.
C. At the direction of the Board operations of the Plan shall be reviewed by independent
certified public accountants as part of any financial audit periodically required. Compliance
with the Board's internal controls shall be verified. These controls have been designed to
prevent losses of assets that might arise from fraud, error, or misrepresentation by third
parties or imprudent actions by the Board or employees of the plan sponsor, to the extent
possible.
D. Each member of the Board shall participate in a continuing education program relating to
investments and the Board's responsibilities to the Plan. It is suggested that this education
process begin during each Trustee's first term.
E. With each actuarial valuation, the Board shall determine the total expected annual rate of
return for the current year, for each of the next several years and for the long term thereafter.
This determination shall be filed promptly with the Department of Management Services, the
plan's sponsor and the consulting actuary.
F. The proxy votes must be exercised for the exclusive benefit of the participants of the Plan.
Each Investment Manager shall provide the Board with a copy of their proxy voting policy
for approval. On a regular basis, at least annually, each manager shall report a record of their
proxy vote.
VII. CRITERIA FOR INVESTMENT MANAGER REVIEW
The Board wishes to adopt standards by which judgments of the ongoing performance of a
portfolio manager may be made. If, at any time, any three of the following is breached, the
portfolio manager may be warned of the Board's serious concern for the Plan's continued safety
and performance. If any five of these are violated the consultant may recommend a manager
search for that mandate.
• Four (4) consecutive quarters of relative under - performance verses the benchmark.
Adopted: 10 -09 Page 6
• Three (3) year trailing return below the top 40 percentile within the appropriate peer
group and under performance verses the benchmark.
• Five (5) year trailing return below the top 40` percentile and under performance
verses the benchmark.
• Three (3) year downside volatility greater than the index (greater than 100), as
measured by down market capture ratio.
• Five (5) year downside volatility greater than the index (greater than 100), as
measured by down market capture ratio.
• Style consistency or purity drift from the mandate.
• Management turnover in portfolio team or senior management.
• Investment process change, including varying the index or benchmark.
• Failure to adhere to the IPS or other compliance issues.
• Investigation of the firm by the Securities and Exchange Commission (SEC).
• Significant asset flows into or out of the company.
• Merger or sale of firm.
• Fee increases outside of the competitive range.
• Servicing issues — key personnel stop servicing the account without proper
notification.
• Failure to attain a 60% vote of confidence by the Board.
Nothing in this section shall limit or diminish the Board's right to terminate the manager at any
time for any reason.
VIII. APPLICABLE CITY ORDINANCES
If at any time this document is found to be in conflict with the City Ordinances or applicable
Florida Statutes, the Ordinances and Statutes shall prevail.
IX. REVIEW AND AMENDMENTS
It is the Board's intention to review this document at least annually subsequent to the actuarial
report and to amend this statement to reflect any changes in philosophy, objectives, or
guidelines. In this regard, the Investment Manager's interest in consistency in these matters is
recognized and will be taken into account when changes are being considered. If, at any time,
the Investment Manager feels that the specific objectives defined herein cannot be met, or the
guidelines constrict performance, the Board should be notified in writing. By initialing and
continuing acceptance of this Investment Policy Statement, the Investment Managers concur
with the provisions of this document. By signing this document, the Chairman attests that this
policy has been recommended by the Investment Consultant, reviewed by the plan's legal
counsel for compliance with applicable law, and approved by the Board of Trustees.
Adopted: 10 -09 Page 7
X. FILING OF THE INVESTMENT POLICY
Upon adoption by the Board, the investment policy shall be promptly filed with the Florida
Department of Management Services, the City, and the plan's actuary. The effective date of the
Investment Policy shall be the 31 days following the filing date with the City.
CITY OF EDGEWATER GENERAL EMPLOYEES' PENSION PLAN
-
/
Chairman, Board of Trustees Date
Adopted: 10 -09 Page 8
CITY OF EDGEWATER
GENERAL EMPLOYEES RETIREMENT SYSTEM
ADDENDUM TO
STATEMENT OF INVESTMENT POLICY
ICC Capital
(All Cap Core)
ICC Capital has been retained by the City of Edgewater General Employees Retirement System
to manage a well- diversified portfolio of equity and money market securities. ICC was retained
for this assignment based on their qualifications and experience in managing equity portfolios.
I. GUIDELINES
Within the guidelines contained in the Statement of Investment Policy established for the City of
Edgewater General Employees' Retirement Board, the ICC portfolio must comply with the
following:
A. The diversification of the equities held in the manager's portfolio among industries and
issuers is the responsibility of the investment manager. However, the overall managers
portfolio characteristics should exhibit all capitalizations with no bias toward growth or
value type companies.
B. Foreign securities including American Depository Receipts (ADRs) are limited to 15 %.
C. Investments in cash and equivalents shall generally not exceed 10 %.
D. Not more than 10% of the manager's assets, at the time of purchase, shall be invested in the
common stock, capital stock or convertible stock of any one issuing company, nor shall the
aggregate investment in any one issuing company exceed 5% of the outstanding capital
stock of the company.
E. Short sales are prohibited.
F. The use of futures and options for hedging purposes is prohibited unless specifically
authorized by the Board and the manager is notified in writing.
G. No equities may be purchased which are not publicly traded.
H. No use may be made of margin or leverage purchases.
I. No direct commodities are to be purchased.
Page 1
II. INVESTMENT OBJECTIVES
Total Portfolio:
A. The primary objective of the ICC portfolio shall be to achieve a return over the longer term, 3
to 5 years, in excess of the Russell 3000 Stock l e
B. The secondary objective of the portfolio shall be to achieve a rate of return over the longer
term, 3 to 5 years, that ranks in the top 40 pe rcentile of a representative universe of
similarly managed portfolios.
C. The volatility of the Fund's total returns is expected to be similar to that of this Target Index
and will be evaluated accordingly.
III. POLICY REVIEW
This Addendum is a part of the City of Edgewater General Employees' Investment Policy
complement the objectives and guidelines outlined therein. It is the
and is
intended only to comp of Edgewater General Employees' Retirement
intention of the Board of Trustees of the City
Board to review the Statement of Investment Policy and this Addendum m �w tir if at any
amend them if necessary to reflect any changes in philosop h o
y objectives.
time the investment manager believes that the specific objectives defined herein cannot be met,
or that the guidelines unnecessarily constrict performance, the Trustees shall be so notified in
writing. By signing this addendum the investment manager understands and agrees to
adhere to the guidelines, investment manager responsibilities, and other conditions therein.
an, oard o Trustees
Date
( �
--__ Date
ICC Capital
Page 2