06-11-2012 General Employees'Pension Board of Trustees
Minutes-Regular Meeting
June 11,2012
Page 1 of 3
CITY OF EDGEWATER
GENERAL EMPLOYEES' PENSION BOARD
Regular Meeting
MINUTES
Monday,June 11,2012
CALL TO ORDER/ROLL CALL/DETERMINATION OF A QUORUM
The Edgewater General Employees' Pension Board held its quarterly (regular)meeting on Monday, June
11, 2012 in the City Hall Conference Room at the City of Edgewater, Florida.
Members Present: Bobby Laramore
Tim Sopko
John McKinney
John Brackin
Brenda Dewees
Tyna Hilton
Members Absent: Gigi Bennington
Plan Attorney: H. Lee Dehner
Board Administrator: Sheila Hutcheson
Consultant: Jack Evatt,The Bogdahn Group
City Staff: Julie Christine, Personnel Department
Tracey Barlow,City Manager
Plan Members: Eric Bosse
Bob Pelosi
Joe Lavender
Vice-Chairman Dewees called the meeting to order at 11:05 a.m.; there was a quorum with six members
present.
APPROVAL OF MINUTES-Quarterly Meeting-March 19, 2011
Member Laramore made a motion to approve the minutes of the March 19, 2012 quarterly meeting;
Member McKinney seconded the motion, which passed unanimously.
NEW BUSINESS/OLD BUSINESS-None.
REPORTS(ATTORNEY/CONSULTANTS)
Jack Evatt,The Bogdahn Group,Performance Consultant
Quarterly Report-March 31,2012
Jack Evatt opened by discussing the report he distributed to the Board. He reported that the fund had
$12,869,555 on March 31, 2012 compared to $12,069,673 as of December 31, 2011. The return for the
quarter was 8.66% and 15.47% for the fiscal year to date (net), out-performing the index. Member
Laramore asked why small-cap outperformed the mid-cap and Mr.Evatt said that is what is expected.
General Employees'Pension Board of Trustees
Minutes-Regular Meeting
June 11.2012
Page 2 of 3
Mr.Evatt recommended that the Board eliminate Principal stocks and transition into the S&P 500.
Member Hilton made motion to eliminate Principal stocks, as recommended by the Consultant, and to
instead invest this portion of the portfolio in the S&P; Member McKinney seconded the motion, which
passed unanimously
H.Lee Dehner,Plan Attorney
Mr. Dehner opened his report by advising that birth dates of Plan members are considered confidential
information as of July 1, 2012. There was not any pension legislation that was enacted except for a
provision (HB401, effective as of July 1, 2012) regarding a retiree who is married at the time of
retirement and subsequently divorces and then remarries. Currently, if the retiree doesn't make a change
in the beneficiary, in the case of the retiree's death, the benefit would be paid to the ex-spouse. The new
provision states that if the retiree dies and has an ex-spouse as the beneficiary and the retiree didn't
specifically state in writing his/her decision to still provide the benefit to the ex-spouse, the payment
would not be paid to that person, who is deemed to be dead. The Attorney said he believes this law will
be challenged on constitutional grounds, but it will have to be followed for now. The report concluded
with a reminder that Financial Disclosure Forms are due on July 1, 2012. All Trustees said they have
filed their annual forms. The Administrator will check the Florida Commission on Ethics' website to
confirm receipt of their forms.
Status Report-Issues with Principal
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.
Member Hilton made a motion to authorize proceeding with a settlement agreement/general release, in
accordance with discussions among Attorneys Dehner, Wolfe, and Riggs; Member Laramore seconded
the motion, which passed unanimously.
Sheila Hutcheson,Plan Administrator
Ms. Hutcheson opened her report with an update on Linda Moore's retirement benefit (direct fund),
which she had previously reported had been suspended by Principal when her retirement checks were
uncashed for an extended period of time. The Administrator had been in contact with Ms. Moore, and her
benefits have been reinstated and her retroactive payments have been paid.
Determination of Plan's funding basis for Valuation: fixed dollar amount or percentage of payroll
Ms. Hutcheson distributed the information from the Division of Retirement and Foster & Foster in this
regard. As a closed Plan, it has been discussed that it seems more appropriate to express the required
contribution on a dollar basis rather than as a percentage of a continually decreasing payroll. The Board
may wish to defer this item until the next meeting when Foster&Foster issues a report in this regard. The
Board's consensus was to defer action until the September meeting when a report will be provided in this
regard from Foster& Foster.
General Employees'Pension Board of Trustees
Minutes-Regular Meeting
June 11,2012
Page 3 of 3
RAFTIFICATION OF PROCESSED DISBURSEMENTS/RETURN OF CONTRIBUTIONS,
DISBURSEMENTS,and DEPOSITS
DISBURSEMENTS
1. Sheila Hutcheson, plan administration fees - $4,500.00 ($1500/month); mileage
expense-$11.10
2. Christiansen&Dehner,professional legal fees, $203.95; $1,384.25
3. The Bogdahn Group,performance consultant fees, 1st quarter,2012 -$3,625.00
4. Foster&Foster, actuarial services-$987.00
5. Brenda Dewees, commencement of normal retirement as of Jan. 1,2012 -retiree's
lifetime with first 120 payments guaranteed,with member contribution rollover
6. Matthew Hopson,commencement of normal retirement as of May 1, 2012 -
retiree's lifetime with joint/75%survivor option with member contribution refund
7. Christy Mathewson,commencement of normal retirement as of June 1,2012 -
retiree's lifetime with joint/100% survivor option with member contribution
refund
DEPOSITS-None
Member McKinney made a motion to approve the processed disbursements/return of contributions and
deposits;Member Brackin seconded the motion, which passed unanimously.
TRUSTEES',STAFF,EMPLOYEES',and PUBLIC REPORTS,DISCUSSION,and ACTION
ADJOURNMENT-There was no further business and the meeting was adjourned at 12:04 p.m.
Respectfully Submitted: Approved:
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Sheila Hutcheson, Plan Administrator n, Chairman
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