09-16-2013 General Employees' Pension Board of'trustees
Minutes-Regular Meeting
September 16,2013
Page I of 4
CITY OF EDGEWATER
GENERAL EMPLOYEES' PENSION BOARD
Regular Meeting
MINUTES
Monday,September 16, 2013
CALL TO ORDER/ROLL CALL/DETERMINATION OF A QUORUM
The Edgewater General Employees' Pension Board held its regular quarterly meeting on Monday,
September 16, 2013 in the City Hall Council Chambers at the City of Edgewater,Florida.
Members Present: Brenda Dewees
Tim Sopko
John Brackin
John McKinney
(iigi Bennington
Tyna Hilton
Bobby Laramore
Members Absent: None
Plan Attorney: H. Lee Definer
Board Coordinator: Julie Christine, Personnel Department
Consultant: Jack Evatt,r1'he Bogdahn Group
Ferrell Jenne, Foster&Foster
Doug Lozen, Foster&Foster
City Staff- Donna Looney, Personnel Director
Chairman Bennington called the meeting to order at 11:04 a.m. Members indicated their presence; there
was a quorum, with all members present.
APPROVAI. OF MINUTES-Quarterly Meeting-June 17, 2013
Member La-ra-more made a motion to apjn-ove the n inutes of 1he June 17, 2013 quarterly meeting;
Member Hilton.seconded the motion, which passed unaizinaously.
NEW BUSINESS-
Review, discuss and execute TPA contract-
Member McKinney would like to see the TPA and actuarial services separated. If for some reason the
board is unhappy with the TPA but, extremely satisfied with the actuarial services then everything is
lumped into one contract. Member Dewees agreed, she stated it is cleaner that way. Member Deweess had
a question oil three (3) E in the contract; which states: provide updates of quarterly drop balances. Ms.
Jenne stated it was in the prior contract so they just left it in there but, since the flan does not have drop
there would not be a fee applied to that. Mr. Dehner stated since the board does not have the drop it's tine
to leave the section L there because it doesn't apply. After further discussion of the separation on two
contracts it was determine to leave the contract as one.
1
General Employees' Pension Board of Trustees
Minutes-Regular Meeting
Scptcmixr 16,2013
Pagc 2 of 4
Ms. Looney suggested reviewing the duties of pension fund administrator. The board reviewed the list of
pension duties and made changes. On page 7, exhibit "A", #2, change process to coordinate pension
benefits payments monthly, #4, change process to process and coordinate/monitor. Ms. Looney
questioned #5, asking who is going to be responsible for filling out the forms. All of #5 is currently
preformed by the Personnel department. Ms. Ferrell stated the only thing they would need from the City
is pay information. Foster and Foster would be responsible to coordinate with the member, filling out the
forms and passing along to the actuarial to do the benefit calculations. Ms. Looney reiterated so Foster
and Foster would be filling out the past 10 years on the forms and would only need the current pay
information. Ms. Ferrell stated that is correct. On both#10 and#11,change to coordinate and monitor.On
#1 b, the City will coordinate the liability insurance for the board. On#20,change the word date to data.
Member Dewe'e'.s made a anotion to approve the actuarial and ad►a inistralor services agreeinent as
ameneled; Member Ifilton.seconded the motion, ni%hich12 assed unanimously.
OLD BUSINESS -
Discuss fees for consultants and attorney-
Member McKinney commented that this topic has been discussed over the past couple of meetings.
Member McKinney suggested that the new TPA request a fee survey from other Cities for actuarial,
financial review and attorney services to see that we are on market.
REPORTS (ATTORNEYICONSIM,TANTS)
Doug Lozen, Foster& Foster, Actuary
Presentation: Revised valuation (to reflect the change in assumption)
Mr. Lozen presents the revised 2012 valuation (to reflect the change in assumption). On page 13, the first
assumption change is the expectation of longer life. The second assumption change is under normal
retirement, age 55 there is a 50% retirement probability and at age 60 there is a 100% retirement
probability, assuming everyone is gone. furthermore, if you get to 25 years of service under age 60 you
arc in the likelihood of retirement at normal retirement. The third assumption change is termination rate
since the plan is closed we do not expect any termination of employment. So, termination rates are no
longer assumed. The final assumption change is salary increase at a flat 40N, going forward. On page 10,
without making any changes to method and assumption, the expected City contribution percent of
projected annual payroll would have been 15 1.1%at little over$900,000 for next fiscal year. By adopting
[lie method and assumption change the amount would be $765,179 for fiscal year 13114 only. Mr.
McKinney stated that since we started at 154 percent of payroll and we are down 77 percent of payroll we
are looking pretty good.
Meinher McKinna v made a motion to accept the actuarial valuation a.s stated; Member Sopko .seconded
the motion, i-0-ich passed unanimously by roll call
Member 'oplco madr'c' a motion to beep the prq eeted percentage to 7.5%f Jr the current year, the nen
several years and the long lerin thereafer; Member Deuces .seconded the motion, which passed
a naniniously by roll call.
2
General Employees' Pension Board of Trustees
Minutes-Rcgi lar Meeting
September 16,2013
Page 3 of
.lack Evatt, The Bogdalin Group, Performance Consultant
Quarterly Report-June 30, 2013
Mr. Evatt opened by discussing the quarterly report he distributed to the Board, starting out on page 2,
under the quarterly performance,the domestic equity market is showing a good result. The March 31,
2013 results are$11,635,545 and the Tune 30, 2013 results are$11,588,553.
Member Dewees made a inotion to appro7 e the 2"' quarter 2013 prelimina?y report; Member t5opko
seconded the motion, which passed unanimously.
H. Lee Dehner, Plan Attorney
Mr. Delmer opened with, legislative update: Tallahassee, Senate Bill 534 was signed into the law which
imposes on defined benefit plans in Florida causing additional filing and disclosure requirelnents, this wilt
result in significantly increase administrative expenses to the plan.
Mr. Dehner- wanted to recommend that we add another item to the agenda called public comments after
approval of minutes.
Mr. Dehner added with respect to conferences, there is a division of retirement conference being held
October 22nd, 23rd and 20 located at the doubletroo hotel at ScaWorld.
Mr. Dehner stated that the proposed ordinance amendment for the IRS Compliance changes is on the City
Council Agenda for Monday.
RAY17IFICATION OF PROCESSED DISBURSEMENTSIRETURN OF CONTRIBU'T'IONS,
DISBURSEMEN'T`S,and DEPOSITS
DISBURSEMENTS
1. Christiansen&Delmer, professional legal fees- $1,647.77
2. The Bogdahn Group, performance consultant fees, 711113 -09/30/13 -$3,625.00
3. Foster& Foster, actuarial services- $2,684.00
4. Integrity Fixed Income Management, LLC -$150.40
DEPOSI'T'S—none
Member Dewees made a motion to approm the processed of contributions and
deposits;Member Sopko seconded the motion, ii4 ich passed unanimously.
TRUSTEES',STAFF,,EMPLOYEES', and PUBLIC REPORTS, DISCUSSION,and ACTION
Board coordinator Ms. Christine asked for input on the appointees Member Dewees, McKinney, Brackin
and Hilton to extend their term to December 1, 2016.
Consent to reappoint Members and extend their terms.
Board coordinator Ms. Christine made note that the FPPTA Trustee' School is September 29"' - October
2"`{(Palm Beach Garden) if anyone would like to attend.
3
General Employees' Pension Board of Trustees
Minutes-Regular Mceting
September 16,2013
Page 4 ol'4
Member Dewees statcd we need to set up a workshop date. The date is set for Wednesday, October 2"'at
9:00 a.m.
Member McKinney received late 'Thursday afternoon the insurance premium that is estimated at
$3,669.00, it protects the board from errors and admissions.
Member Brackin made a motion to approve the insurance premium that is estimated at $3,669.00;
Member Dewees seconded the motion, which passed unaninrously.
ADJOURNMENT -There was no further business and the meeting was adjourned at 12:15 p.m.
Respectfully Submitted: Approved:
Donna Looney, Personnel Dire to
A v AC;T I Tel G CVA%V-MM+t l
4