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09-19-2011 General Employees' Pension Board of Trustees Minutes - Regular Meeting September 19, 2011 Page 1 of 3 CITY OF EDGEWATER GENERAL EMPLOYEES' PENSION BOARD Regular Meeting MINUTES Monday, September 19, 2011 CALL TO ORDER/ ROLL CALL/DETERMINATION OF A QUORUM The Edgewater General Employees' Pension Board held its quarterly (regular) meeting on Monday, September 19, 2011 in the City Hall Council Chamber at the City of Edgewater, Florida. Members Present: Bobby Laramore Tim Sopko Tyna Hilton John McKinney John Brackin Members Absent: Brenda Dewees Gigi Bennington Plan Attorney: H. Lee Dehner Board Administrator: Sheila Hutcheson Consultant: Jack Evatt, The Bogdahn Group City Staff: Donna Looney, Personnel Director Tracey Barlow, City Manager Secretary Hilton called the meeting to order at 11:00 a.m.; there was a quorum, with five members present. APPROVAL OF MINUTES - Quarterly Meeting - June 13, 2011; Special Meeting - June 13, 2011; Special Meeting - August 1, 2011 Member Laramore made a motion to approve the minutes of the June 13, 2011 quarterly and joint special meetings and the August 1, 2011 joint special meeting; Member Sopko seconded the motion, which passed unanimously. NEW BUSINESS Foster & Foster - notice of fee increase The Administrator reviewed the letter from Foster & Foster, which outlined certain fee increases that would affect the Plan, including the requirement for an additional calculation for the assumed return at the FRS rate of 7.75 %. Member McKinney made a motion to approve the Foster & Foster fee increase and to authorize the Attorney to prepare an addendum to the contract for execution by the Chairman /Secretary; Member Laramore seconded the motion, which passed unanimously. Member McKinney said that he would like to negotiate a guaranteed period for fees by Foster & Foster, General Employees' Pension Board of Trustees Minutes - Regular Meeting September 19, 2011 Page 2 of 3 after the separation from Principal is completed. The Board agreed. OLD BUSINESS - None. REPORTS (ATTORNEY /CONSULTANTS) The Bogdahn Group, Performance Consultant Quarterly Report - June 30, 2011 Jack Evatt opened by discussing the market environment for the second quarter, as outlined in the report he distributed to the Board. The fund's assets were $12,881,012 as of June 30, 2011, compared to $12,908,620 as of March 31, 2011, based on inflows /outflows. The return for the quarter was 1.01% (net and gross, since it cannot be determined what Principal's fees are), under - performing the index slightly. The fiscal year -to -date returns are 10.24 %. Mr. Evatt discussed the various investment options in the plan and noted that Principal's performance has improved. Review 2009 IPS Mr. Evatt suggested the review of the IPS be deferred until closer to the time of the actual separation from Principal. The Board concurred. H. Lee Dehner, Plan Attorney Legislative update Attorney Dehner opened his report by noting that the recent statutory changes will affect the Plan upon the execution of the next labor contract after the current contract expires (on September 30, 2012). He discussed the 300 hour /year overtime limitation as to the definition of the twelve -month period to be used. The Administrator had recommended that the fiscal year be the basis, as this is the basis for budgeting wages and how the Actuary values the Plan. There is also a requirement that the Actuary has to include a report in the next valuation as to the cost of each Plan if the assumed return was 7.75 %. The federal HELP's legislation will not be considered in the next session. Sheila Hutcheson, Plan Administrator Ms. Hutcheson advised that the City Finance Director is in the process of the pension fiduciary insurance renewal for October 1, 2011, and the premium payment will be reported at the next quarterly meeting. 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, 2n 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 General Employees' Pension Board of Trustees Minutes - Regular Meeting September 19, 2011 Page 3 of 3 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 Member McKinney 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 - Personnel Director Donna Looney advised the Board that the City wants to consider early retirement incentive options in order to preserve all City employees' positions. Accordingly, the City requests the Board's approval for its engagement of Foster & Foster (at the City's expense) to conduct a study of early retirement incentives /options for the City's consideration. Member Laramore made a motion to approve the City's engagement of Foster & Foster (at City expense) to prepare a report on early retirement incentives /options for consideration by the City; Member Brackin seconded the motion, which passed unanimously. The Administrator said she would notify Foster & Foster of the Board's approval and that City staff would contact the Actuary in this regard. ADJOURNMENT There was no further business and the Secretary adjourned the meeting at 11:50 a.m. Respectfully Submitted: Approved: 111 ;4 1 k -- Sheila Hutcheson, Plan Administrator Gigi B, 'ngton, Chairm.