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08-18-1998 , ffv'-\ ~\ ~),\ ........ ..." Edgewater Firefighters' Pension Fund Regular Meeting Tuesday, August 18, 1998 6:35 p.m. call to Order: The Regular Meeting of the Firefighters' Pension Board was called to order Tuesday, August 18, 1998 by Acting Chairman Patricia Richards at 6:35 p.m. in the Fire Department Training Room. Members present were: Acting Chairman Patricia Richards, Mr. Jim Jollie, Mr. Gary Butt, Ms. Laura Reilly, and Ms. Jill Landreville. Also present were Mr. Tim Nash from STI Capital Management, and Lisa R. Miller, Recording Secretary. Acting Chairman Richards welcomed Ms. Reilly as the new member to the Board. Minutes: The Minutes from the April 21, 1998, Regular Meeting were submitted for approval. Ms. Landreville moved to approve the minutes as submitted. Mr. Butt seconded. Motion CARRIED 5 to O. Investment Report: Mr. Tim Nash from STI Capital Management made a presentation to the Board. He stated STI received the funds from Smith Barney on 3/30/98 in the amount of $527,363 and they were invested on the following day. He added the money was in common trust funds and they are only valued twice a month on the 15th and the last day of the month. Those are the only times they can buy or sell funds. Mr. Nash stated the fund assets were 60% in equity and 40% in growth stocks. Mr. Nash stated the Fund had $568,252.21 in it as of 06/30/98. He went over how each type of investment had done for the first full quarter. There was discussion regarding how the payment of STI's bill would work and it was agreed for STI to debit the amount from the account. It was noted the Board would be billed on a quarterly basis on the market value at the end of the quarter and they would be charged 1 % annually (1/4 of a percent each quarter). The fee is on a sliding scale and once the funds reach $1 million it goes down to .75 basis points (.75%). Mr. Nash stated he was still working on the numbers from Smith Barney for a reconciliation but the numbers didn't match. It was noted the Board was looking for the rate of return, the fees charged, and any losses incurred in moving the fund from Smith Barney to STI. Mr. Nash stated he would have those answers for the next meeting. The Board thanked Mr. Nash for his presentation and he left at this time. Old Business: There was discussion regarding ordinance changes that were required by the State Division of Retirement that addressed ADA requirements. There was discussion regarding the ordinance changes that were still in the City Attorney's office. It was noted there was another clarification that needed to be done before she could finish. There was discussion regarding the process by which the Board Attorney could expect payment from the Board. It was noted the Board Attorney should only take direction from the Board. Any questions from the City Attorney's office should be addressed to the Board and the Board would request information from the Board Attorney. Ms. Landreville moved to write Attorney Sugarman advising him that our policy is that he should not do business with anyone but the Chairman of the Board or any Board Member acting at the direction of the Board. Mr. Jollie seconded. Motion CARRIED 5 to O. There was discussion regarding Attorney Sugarman's bill. It was noted that there was a new bill from Attorney Sugarman that attempted to correct a billing error where the Police Pension Board was billed for time spent working on the Fire Pension's Ordinance. Ms. Landreville moved to write a letter to Mr. Sugarman respectfully requesting that he clarify his bill from 4/20 onward. Mr. Jollie seconded. Motion CARRIED 5 to O. There was discussion regarding requesting Mr. Sugarman to come to the next meeting as none of the Board members had met him. It was noted it should be checked to see if he is scheduled to come to a Police Pension Board meeting in the near future and they could call a meeting at the same time. 1 '-" ..." Firefighter Pension Fund Regular Meeting 08/18/98 Page 2 New Business: There was discussion regarding the election of officers. Mr. Butt nominated Mr. Jollie as Chairman. Ms. Landreville seconded. Motion CARRIED 5 to O. There was discussion regarding the office of Secretary. Mr. Butt nominated Ms. Landreville as Secretary. Mr. Jollie seconded. Motion CARRIED 5 to O. There was discussion regarding the Sunshine Law. There was discussion regarding changes to Chapter 175 that had been approved by the State. These go into effect October 1, 1998 and include: 1) Investments can be made in state or federally chartered credit unions 2) Bonds must still hold a rating in the three highest classifications, stocks no longer have this restriction 3) Aggregate equity investment parameters have been changed from 30% to 50% 4) Investments may include 10% of the plans assets in foreign securities 5) A majority vote is required for all board acts and decisions 6) The secretary shall keep a record of all persons receiving retirement payments under the plan 7) At least once every three years the board shall retain an independent consultant to evaluation the performance of their money manager 8) The board is authorized to hire its own attorney, actuary, or any other professional technical advisors as it deems necessary 9) Use of the employer's attorney, actuary or other professional or technical advisors shall be provided only under terms and conditions acceptable to the Board. There was discussion regarding actuarial valuations and the summary plan. There was discussion regarding the need in two years to start interviewing for an independent consultant to evaluate the money manager. It was noted that Foster & Foster may be able to do it. There was discussion regarding having Mr. Foster come and speak to the Board. There was discussion regarding the revised ordinance. There was discussion regarding upcoming pension schools. There was discussion regarding the annual report. Mr. Jollie asked the Board members to take the Summary Plan Description and compare it Chapter 175. He added they should look at disability and the way retirement is figured, and the death benefit prior to retirement. There was discussion regarding pension beneficiaries. There was discussion regarding the idea of a 50/50 split if the plan was making over the 7.5 assumption rate. There being no more business to come before the Board at this time, Ms. Landreville moved to adjourn. Mr. Butt seconded. Meeting adjourned at 8:05 p.m. Minutes respectfully submitted. Usa R. Miller Recording Secretary 2