12-12-2011 General Employees' Pension Board of Trustees
Minutes - Regular Meeting
December 12, 2011
Page 1 of 3
CITY OF EDGEWATER
GENERAL EMPLOYEES' PENSION BOARD
Regular Meeting
MINUTES
Monday, December 12, 2011
CALL TO ORDER/ ROLL CALL/DETERMINATION OF A QUORUM
The Edgewater General Employees' Pension Board held its quarterly (regular) meeting on Monday,
December 12, 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
Brenda Dewees
Gigi Bennington
Members Absent: None
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
Chairman Bennington called the meeting to order at 11:00 a.m.; there was a quorum, with all members
present.
APPROVAL OF MINUTES - Quarterly Meeting - September 19, 2011; Special Meeting - September
19, 2011
Member Hilton made a motion to approve the minutes of the September 19, 2011 quarterly and joint
special meetings; Member Sopko seconded the motion, which passed unanimously.
NEW BUSINESS - Authorization for Foster & Foster to provide the City the Valuation, preliminary
funding requirements, and related information in advance of presentation of the 2011 Valuation at the
March 19, 2012 meeting.
The Board concurred.
OLD BUSINESS - None.
REPORTS (ATTORNEY /CONSULTANTS)
Jack Evatt, The Bogdahn Group, Performance Consultant - Quarterly Report - September 30, 2011
Jack Evatt opened by discussing the market environment for the third quarter, as outlined in the report he
distributed to the Board. The market has since rallied and had significant gains since September 30, 2011.
General Employees' Pension Board of Trustees
Minutes - Regular Meeting
December 12, 2011
Page 2 of 3
He reported that the fund had $12,233,789 as of October 31, 2011. The fund's assets were $11,509,109
as of September 30, 2011, compared to $12,881,012 as of June 30, 2011. The return for the quarter was
negative 9.65% (net and gross, since it cannot be determined what Principal's fees are), under - performing
the index. The fiscal year -return was negative 0.40 %, which also under - performed the index.
Chairman Bennington asked if the fund is, essentially, remaining flat (some gains, then some losses), and
Mr. Evatt said this is correct; this is called "range- bound" markets. In the longer term, it will be more
difficult to see gains from the fixed income investments, in which Principal's investments are heavily
weighted. Negative campaigning for the upcoming Presidential election has an impact on the market as
well. The markets do not respond well to the uncertainty that accompanies an election period.
At the next meeting, Mr.Evatt said he will discuss an investment policy for Principal since the plan may
remain with Principal for a while. Mr. Evatt will bring the forms required by Principal in this regard for
execution by the Board. The investment policy will be addressed again upon separation from Principal.
The report concluded with a review of the compliance checklist.
H. Lee Dehner, Plan Attorney
Legislative update
Mr. Dehner said there may be good news with respect to the General Employees' Plan in that the primary
bills are HB365 and SB910, neither of which have much effect on General Employees' Plans. The
proposals do require the Board to have an annual budget, but it does not require the approval of the
budget by the Plan Sponsor (unlike last year). Senator Jeremy Ring (from last year's bills) became
unhappy with the Florida League and has said no pension legislation will pass this year. The primary
concern of the legislature is re- districting. The legislative session will be in January due to re- districting.
Status Report - Issues with Principal (Milberg LLP and other consultants)
Attorney Dehner summarized relevant information for the Board regarding the issues with Principal and
the status of settlement negotiations in this regard. He will keep the Board apprised of the status of
negotiations.
Sheila Hutcheson, Plan Administrator
Ms. Hutcheson reported the following items:
Fee schedule - $1,500 /month effective with payment on January 1, 2012
Member Hilton made a motion to approve the Administrator's fee schedule and to authorize the Attorney
to prepare the contract amendment for execution by the Chairman /Secretary; Member McKinney
seconded the motion which passed unanimously.
FPPTA membership will be renewed for 2012 - $600.00
FPPTA School will be in February in Jacksonville.
General Employees' Pension Board of Trustees
Minutes - Regular Meeting
December 12, 2011
Page 3 of 3
Quarterly meeting dates for 2012 (Mondays at 11:00 a.m.):
March 19, 2012
June 11, 2012
September 17, 2012
December 10, 2012
The Board concurred with the meeting dates for 2012.
Ms. Hutcheson also reported that the terms of Trustees Laramore, Sopko, and Bennington end on
February 5, 2012. The reappointment process will be coordinated through the City Manager's Office and
Member Laramore (SPEA appointment) by the Administrator.
PROCESSED DISBURSEMENTS/RETURN OF CONTRIBUTIONS/DEPOSITS
DISBURSEMENTS
1. Sheila Hutcheson, plan administration fees - $3,300.00 ($1100 /month); special
meetings fee (Board's share, 8/1 and 9/19/11) - $400.00; mileage /postage expense -
$23.48
2. Christiansen & Delmer, professional legal fees, $304.20; $1,521.90; $339.84
3. The Bogdahn Group, performance consultant fees, 3 quarter, 2011 - $3,625.00
4. Barry Roach (terminated, vested employee) - commencement of retirement as
of Jan. 1, 2012 - retiree's lifetime with 50% survivor option
5. PRIA, pension fiduciary insurance premium for FY11/12 policy - $3,452.63
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 /ACTION - None.
ADJOURNMENT - There was no further business and the meeting was adjourned at 11:56 a.m.
Respectfully Submitted: Approved:
Sheila Hutcheson, Plan Administrator : = • • ' • _ : - , Chairman