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04-30-1992 ~ ......,. ..."" EDGEWATER FIREFIGHTER'S PENSION FUND MINUTES REGULAR MEETING Thursday, April 30, 1992 6:38 P.M. The Regular Meeting of the Firefighter I s Pension Fund was called to Order by Chairman Al Gilbert on Thursday, April 30,1992 at 6:38 P.M. in the Conference Room of City Hall. ROLL CALL: Members present were: Mr. Ben Wagner, Mr. Robert Morin, and Chairman Al Gilbert. Lt.Carson arrived at 6:47 p.m. Firefighter James Castetter arrived at 7: 22. Also present was Attorney Robert Sugarman, Bill Thomas and Steve Burkhalter from Shearson Lehman Brothers and Recording Secretary Lisa R. Warren. APPROVAL OF MINUTES: were submitted for minutes as written. The Minutes of the March 24, 1992 meeting approval. Mr. Wagner moved to accept the Mr. Morin seconded. Motion CARRIED 3-0. UNFINISHED BUSINESS: Chairman Gilbert introduced the Board Attorney, Robert Sugarman, Mr. Thomas and Mr. Burkhalter from Shearson Lehman Brothers. There was discussion regarding the contract with Shearson Lehman Brothers for Custodian of pension funds. Mr. Sugarman stated the objective when he was hired was to provide the greatest amount of protection for the Board. He stated the place where the Board has the most liability is in investment decisions and what they wanted to do was to take that fiduciary responsibility off the Board's shoulders and delegate it to someone else and have them accept that responsibility. He stated they would not be able to do it at this time because the fund is too small. Mr. Sugarman checked with some other clients and none were as good as what Shearson Lehman is offering. Mr. Sugarman stated the Board would still have the fiduciary liability for making investments, but for $40,000 they can't go wrong. He stated that neither himself nor Shearson Lehman Bros. would let them jump into the stock market. Chairman Gilbert asked if they would meet all the State requirements by doing this. Mr. Sugarman stated they need to find out the actual name of the trust company in New York that is going to hold the paper for Shearson Lehman. Mr. Burkholder stated the only thing Shearson might purchase for the Fund that they would not hold would be a bank C.D. of which all parties would be issued a receipt. There was discussion regarding the agreements and resolutions that need to be suited to the Board's needs. Mr. Sugarman advised the Board to sign the agreement and then send a Letter of Instruction to Shearson saying even though this contract says we can do all of this stuff, these are the things we're telling you not to do and they will send us a letter saying they acknowledge these instructions and will follow them. 1 . ^ . '-" ...""" Edgewater Firefighter's Pension Fund 4/30/92 Page 2 Mr. Burkhalter stated without the contract they can't do business but they can open the account and accept the transfer of funds. There was a discussion regarding Ginny Mae investments, Fanny Mae investments, and Money Market investments and their differences. Mr. Sugarman stated the way this was going to work is Shearson would give the Board a proposal and an order form. If the Board agrees the Board would have to approve every purchase by voting on it and signing it. Everything would be in writing. Mr. Wagner moved to approve execution of the 1) Cash Account Client Agreement 2) Resolutions 3) the Letter of Instruction by the Chairman on behalf of the Board. Lt. Carson seconded. Chairman Gilbert asked if all 5 Board members signatures could go on it. Mr. Burkhalter stated you should be able to. Chairman Gilbert asked if there could be any two of the five signatures required on the checks. Motion CARRIED 4-0. Lt. Carson moved to approve the investment of the money once it is transferred in the American Express Government and Agencies, Inc. Mutual Fund until specific securities are recommended by Shearson Lehman Bros. and approved by the Board and to authorize the Chairman to do everything possible to get the money moved from the City over to Shears on Lehman Bros. Mr. Wagner seconded. Motion CARRIED 4-0. Mr. Sugarman stated he would redo the agreement, and explained the procedure to move the money from the City to Shears on Lehman. He stated the money sits in a government mutual fund until Shears on Lehman corne up with recommendations for the Board. The Board meets and all recommendations are in the form of an order form in writing, and the Board can make a motion, sign and then they own it. Chairman Gilbert asked once the money 1S in place if the Board could give Shearson some of the bills to be paid out of the account. Mr. Burkhalter stated they would issue the Board a multisignature checkbook if that is what they wished, or the Board could give Shearson an order and a letter of instruction for each check. The general concensus was to use the second option and glve Shearson an order with a letter of instruction for each check. Mr. Burkhalter asked if they wanted to sign the Cash Agreement tonight. Mr. Sugarman stated before they sign it they need to decide on the name of the fund. He suggested Edgewater Firefighter's Pension Fund; the Board agreed. 2 -- " ...... ~ Edgewater Firefighter's Pension Fund 4/30/92 Page 3 Chairman Gilbert called for a short recess at 7:12 p.m. Meeting resumed at 7:15 p.m. Chairman Gilbert noted for the record Mr. Wagner had to leave for personal business and there were three Board members still present. Chairman Gilbert stated another matter that had come up was one of the Firefighters who was terminated for cause, Mr. Finch, and who had been reinstated. He added Mr. Finch was paid his money and needed to find out if he was required to have an EKG before he could come back in the pension plan. Chairman Gilbert stated he told Mr. Finch that if he needed an EKG to come back on fund the Board would pay for it. Mr. Sugarman asked if this was the first new hire since the pension plan began. Lt. Carson stated there were three others. Mr. Sugarman asked if they were given physicals. Lt. Carson stated they were given pre-emploYment physicals by the City. Mr. Sugarman asked if the Board had the results of the physical in its records. Lt. Carson stated he did not know. Mr. Sugarman stated they needed them and asked Ms. Warren to get them because July 26th they become secret because of the ADA. He added that it should be added to the City Physical that it is being done for the City and the Pension Fund, otherwise they become confidential. Chairman Gilbert asked if we could still get them. Mr. Sugarman stated on new hires we can't get them unless the employee is told the physical is being done for both the City and the Pension Board so the Board gets a copy, and we should get all the prior ones while we can. Mr. Sugarman stated the reason physicals are given is for the Heart and Lung Bill and if the employee at the time they were hired had a physical and the condition they claimed disabled them was not shown then they get the service connected pension. He stated the Board needed to know if there are any pre-existing conditions which could affect disability. Mr. Sugarman stated if the physical the City gives is adequate, then the Board should get a copy of it. He asked in Mr. Finch's case if he was reinstated or a new hire. Lt. Carson stated he was reinstated. Mr. Sugarman stated if he was reinstated and it was an unpaid leave of absence with the same seniority without the amount of time he was gone, he is back in the fund. He added even though the Board gave Mr. Finch his money back, as he was reinstated the Board has to give him credit for the time he worked here and he has to give the money back. Chairman Gilbert stated he spoke with him about that and Mr. Finch doesn't have the money to pay back. Mr. Sugarman stated it would be better to work out some terms to pay it back otherwise he would be required to sign waivers. 3 " / '-" ..."" Edgewater Firefighter's Pension Fund 4/30/92 Page 4 Mr. Sugarman advised the Board to appoint a member to negotiate with Mr. Finch over terms of repayment in what ever terms that are acceptable to the Board. Chairman Gilbert appointed Lt. Carson to negotiate with Mr. Finch. Mr. Sugarman stated he isn't concerned how long it takes for Mr. Finch to repay the money with interest as long as he repays it before he retires. He added at the next meeting they could make a motion to approve the terms of repayment. Lt. Carson asked if since the physicals are part of the patient's confidential record does the Board need to get a signed release from the Firefighters so the records can be released to the Board. Mr. Sugarman stated that would be better, but it is not necessary. Mr. Sugarman stated all the City has to do is put on the pre- employment physical a rubber stamp saying Edgewater Firefighter's Pension Fund so the person knows the Board is going to get a copy as well as the City. Mr. Sugarman stated these records have to be kept confidential. New Business: Chairman Gilbert stated the only item under new business was the Florida Public Pension Trustee Conference In Orlando on July 5,6,7. There was discussion regarding the benefits of the Conferences. Lt. Carson moved to send whoever wants to go to the Conference to let Chairman Gilbert know and the reservations would be made. Mr. Morin seconded. Motion CARRIED 4- O. Firefighter Castetter being present and Mr. Wagner being absent. There being no more business to come before the Board at this time Lt. Carson moved to adjourn. Mr. Morin seconded. Meeting adjourned 7:27 p.m. Minutes respectfully submitted by: Lisa R. Warren, Recording Secretary If any person decides to appeal any decision made by the Pension Board of Trustees with respect to any matter considered at the above meeting, that person will need a record of the proceedings and, for such purpose, may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. lw 4