06-11-2012 Police Pension Board of Trustees
Minutes-Quarterly Meeting
June 11,2012
Page 1 of 3
CITY OF EDGEWATER
POLICE OFFICERS'PENSION BOARD OF TRUSTEES QUARTERLY MEETING
MINUTES
Monday,June 11,2012
CALL TO ORDER/ROLL CALL/DETERMINATION OF A QUORUM
The Edgewater Police Officers' Pension Board held its quarterly meeting on Monday, June 11, 2012
in the City Hall Conference Room at the City of Edgewater,Florida.
Members Present: Vincent McCauley
Lawrence Leaf
Ferd Heeb
Members Absent: David Arcieri
John Tarr
Plan Attorney: H. Lee Dehner
Plan Administrator: Sheila Hutcheson
Consultant: Jack Evatt, The Bogdahn Group
Plan Retiree: Gary Conroy
Acting Chairman Heeb called the meeting to order at 1:33 p.m. There was a quorum with three
members present.
Election of Officers
This item was deferred until all Trustees are present.
APPROVAL OF MINUTES -Quarterly Meeting- March 19,2012
Member McCauley made a motion to approve the minutes of the March 19, 2011 quarterly meeting;
Member Leaf seconded the motion, which passed unanimously.
NEW BUSINESS
Consideration of Rules Manual
This item was deferred until all Trustees are present and will be on the September agenda.
Administrative Budget Report
The Administrator had provided in the agenda package the report of expenses through those included
on this agenda, as the Board had requested at the meeting. This report is for information only and
requires no action.
Designation of primary security administrator for online access to Principal account
Former Trustee Gary Conroy previously had this designation and this needs to be changed. The
Administrator suggested that a staff member be designated.
Police Pension Board of Trustees
Minutes-Quarterly Meeting
June 11,2012
Page 2 of 3
Member McCauley made a motion to designate Personnel Director Donna Cooley as the primary
security administrator for access to the Principal account and Personnel Administrator Julie Christine
as the secondary security administrator; Member Leaf seconded the motion, which passed
unanimously.
OLD BUSINESS-None
REPORTS(ATTORNEY/CONSULTANTS)
The Bogdahn Group,Performance Consultant-Quarterly report-March 31, 2012
Jack Evatt opened by noting that the performance was strong for the quarter, as outlined in the report
he distributed to the Board. He then discussed the performance for the quarter: 8.26% and 14.82% for
the fiscal year to date, both of which out-performed the index. The fund's assets were $8,067,250 as of
March 31, 2012, compared to $7,561,734 as of December 31, 2011. Although the returns have
declined since the end of the quarter,the return for the fiscal year is still about 10%.
There was discussion among the Board, Attorney, and Consultant as to the assumed rate of return and
the pros and cons of the 7.5%return.
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 (11B401, 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. The Administrator will send Form 1
to former Trustee Gary Conroy and Forms 1 and 1F to former Trustee Chad Anderson to file.
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 McCauley made a motion to authorize proceeding with a settlement agreement/general
release, in accordance with discussions among Attorneys Dehner, Wolfe, and Riggs; Member Leaf
seconded the motion, which passed unanimously.
Police Pension Board of Trustees
Minutes-Quarterly Meeting
June 11,2012
Page 3 of 3
Sheila Hutcheson,Plan Administrator
Determination of Plan's funding basis for Valuation: fixed dollar amount or percentage of payroll
Ms. Hutcheson distributed a memorandum from the Division of Retirement and Foster & Foster
(F&F) in this regard. 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 wait until the September meeting.
The.Board asked that the Administrator send F & F's report to the City Manager for the City's input
when action is taken at the September meeting.
RATIFICATION of PROCESSED DISBURSEMENTS/RETURN OF CONTRIBUTIONS and
DEPOSITS
• DISBURSEMENTS
1. Christiansen&Dehner, professional legal fees- $203.95; $1,418.05; $202.80
2. Sheila Hutcheson, plan administration fees - $4,500.00 ($1500/month); mileage
expense- $17.54
3. The Bogdahn Group,performance consultant fees, 1st quarter,2012 -$3,625.00
4. Tom Kaye, refund of after-tax member contribution (non-vested former member)
-$6,735.47
5. Phil Niebieski, commencement of retirement as of April 1, 2012 (joint and 100%
survivor option)and distribution of DROP account
6. Foster&Foster,actuarial services-$545.00
DEPOSITS-none
Member McCauley made a motion to approve the processed disbursements/return of contributions
and deposits;Member Leaf seconded the motion, which passed unanimously, upon a roll call vote.
STAFF REPORTS,DISCUSSION,and ACTION/TRUSTEES' REPORTS,DISCUSSION and
ACTION; REQUESTS FROM THE PUBLIC/EMPLOYEES PRESENT-none.
ADJOURNMENT
There was no further business, and the Chairman adjourned the meeting at 2:38 p.m.
Respectfully Submitted: Approved:
Sheila Hutcheson airman
Plan Administrator