03-17-2014 CITY OF EDGEWATER GENERAL EMPLOYEES' PENSION
BOARD QUARTERLY MEETING MINUTES
City Hall Council Chambers
Monday March 17, 2014 at 11:00AM
TRUSTEES PRESENT: Brenda Dewees
Tim Spoko
John Brackin
John McKinney
Tyna Hilton
Bobby Laramore
TRUSTEES ABSENT: Gigi Bennington
OTHERS PRESENT: H. Lee Dehner, Board Attorney
Ferrell Jenne, Plan Administrator
Doug Lozen, Board Actuary
Jack Evatt, Investment Consultant
Donna Looney, Personnel Director
Brian Bizzell, Board Custodian
Mark Rhein, Board Custodian, CFO
1. Call to Order Brenda Dewees called the meeting to order at 11:08 AM,
2. Roll Call As reflected above.
3. No Public Comments
4. Approval of Minutes
The minutes from the December 16 2013 special meeting and December 16 2013 quarterly
meeting were approved upon motion by Bobby Laramore and second-by-John McKinney,
motion carried 6-0.
5. New Business
a. Tim Sopko retired from the City as of January 1, 2014 and the question is raised
if he can still be a City appointed Trustee. Mr. Dehner will look into this but states
that he can remain on the Board in the meantime under the hold over provision.
b. Mr. McKinney reports that extra hours put in by City employees due to the Salem
Trust software transition equaled a total of$1,137 ($379 per pension Board). Mr.
McKinney also makes the recommendation that the Board reimburses the City
$379.
Board votes to reimburse the City $379 due to the Salem Trust transition to the new
accounting system upon motion made by Tyna Hilton and second by John Brackin,
motions carried 6-0.
6. Reports
a. The Bogdahn Group, Jack Evatt
L Quarterly update as of December 31, 2013
1. Net earnings for the quarter were 5.58%, beating the policy
benchmark of 5.14% by 0.44% points.
2. Since inception, the fund is at 4.68%, underperforming the policy
benchmark of 5.51% by 0.83% points.
3. The Plan's gross performance of 5.50%❑ ranked in the 4qh
percentile of the public fund sample.
4. Mr. Evatt reviews the compliance checklist as of 12/31/13 with
the Board; Board has no questions or concerns.
1
5. Mr. Evatt does not have any recommendations to the Board at
this time.
b. Foster&Foster, Doug Lozen
i. Presentation of the October 1, 2013 Actuarial Valuation Report.
1. The contribution amounts in the October 1, 2013 report are
applicable for plan/fiscal year ended September 30, 2015.
2. The total required contribution reduced from $781,833
(calculated in conjunction with the revised October 1, 2012
valuation report)to$734,663.
3. The balance due from the City reduced from $766,179
(calculated in conjunction with the revised October 1, 2012
valuation report)to $719,822.
a. Reduction due to the Plan beating the total assumptions
in aggregate (experienced gain) and payroll is smaller
(since this is a closed plan).
4. Mr. Lozen stated that the City has a prepaid contribution of
$104,816.62 available to offset the current year's required
contribution. He also states that since this money was left in the
trust fund as an excess(vs. depositing it into the general fund), it
gained approximately $13,000 of investment returns (net of
fees).
5. Long term funded ratio increased from 63% to 65% and the short
term funded ratio (which is based on current benefits) increased
from 67% to 71% and Mr. Lozen believes the trend will be
continued improvement.
Board voted to approve the October 1 2013 valuation report as presented, upon motion
made by John McKinney and second by T na Hilton motion carried 6-0.
Board voted the declaration of returns for the Plan shall be 7.50%for the next year, net of
investment related expenses, upon motion made b y Bobby Laramore and second by.John
McKinney, motion carried 6-0.
c. Christiansen & Dehner, H. Lee Dehner
i. Lee Dehner presented the Board with a draft Operating Rules &
Procedures document, implementing all changes made to date.
ii. Mr. Dehner states their will need to be an amendment to the Plan to
change the Board make-up, transitioning to a five(5)member Board.
iii. Mr. McKinney suggests setting a special meeting to be held within forty-
five (45) days to finalize the Operating Rules and Procedures, the Board
agrees and directs Ferrell Jenne to coordinate and set the special
meeting.
iv. No bills have currently been filed that would impact the Plan but Mr.
Dehner does anticipate that there will be a bill(s) filed at the upcoming
legislative session.
v. Mr. Dehner reminds the Trustees that financial disclosure form is due by
July 1, 2014.
vi. Division of Retirement conference May 12t"-14t" in Tallahassee.
7. Disbursements
Disbursements were approved as stated on the agenda upon motion made by Tyna Hilton
and second by Bobby Laramore, motion carried 6-0.
8. Staff Reports, Discussion, and Action
a. Ferrell Jenne, Pian Administrator
i. Board discussion on how many calculations each member can have
while a member of the Plan, currently there is no cap but this will be
2
included in the new Plan Document. Mr. Dehner states that typically two
(2)calculations are allowed during a member's employment.
1. Mr. Brackin asks if two (2) calculations is enough and Mr.
Dehner suggests discussing this a special meeting and Board
agrees to discuss further at that time.
ii. Board directs Ferrell Jenne to include Milberg and City Clerk on the
thank you letters for work associated with The Principal extraction.
9. Trustees' Reports, Discussion and Action
a. John McKinney informs the Board that the CAFR will be available online by
March 26, 2014.
10. Adjournment The meeting adjourned at 12:02PM.
11. Next Meeting June 16, 2014 at 11:OOAM.
ectfully itted by: Approved by:
N e:
krrl Jenne Name: [ � ��a
Title: Plan Administrator Title: Acme L1 Opmr— 4
Date Approved By the Pension Board: &
3