03-17-2014 CITY OF EDGEWATER POLICE OFFICERS' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Monday March 17, 2014 at 1:30PM
TRUSTEES PRESENT: David Arcieri
Larry Brinson
Lawrence Leaf
James Morey
TRUSTEES ABSENT: John Tarr
OTHERS PRESENT: H. Lee Dehner, Board Attorney
Ferrell Jenne, Plan Administrator
Jack Evatt, Investment Consultant
Doug Lozen, Board Actuary
Brian Bizzell, Board Custodian
Mark Rhein, Board Custodian, CFO
1. Call to Order David Arcieri called the meeting to order at 1:30PM
2. Roll Call As reflected above
3. No Public Comment
4. Approval of Minutes
The minutes from the December 16, 2013 quarterly meeting„and January 30, 2014
special meeting were approved upon motion by Lawrence Leaf and second by Larry
Brinson, motion carried 40.
5. New Business
a. Board Elections
i. Chairman David Arcieri's term expires 616114, Secretary John Tarr's term
expires 3117114, and fifth Trustee Lawrence Leaf's term expires 3117114.
Mr. Dehner states that all Trustees can remain on the Board under the
hold over provision.
Board moves to reappoint Mr. Leaf for another two 2 year term upon motion by James
Morey and second by_Larry,Brinson, motion carried 40.
ii. Chairman states that he will send out an election letter to the
membership asking for interest in being a Trustee on the Board.
Chairman will also oversee the nomination and election process.
b. Ferrell Jenne let the Board know that the finance director was not able to attend
this meeting, but per his request, he is asking the Board to reimburse the City
$379. This accounts for the extra time City employees put in due to the software
transition at Salem Trust. The total fee was $1,137 split amongst all three
Boards.
Board approved reimbursing the Cit 379 from the pension fund for extra hours the City
employees put in due to the software transition at Salem Trust upon motion by James
Morey and second by Lawrence Leaf, motion carried 4-0.
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6. Reports
a. The Bogdahn Group, Jack Evatt
i. Quarterly report as of December 31, 2013
1. Net earnings for the quarter were 5.75%, beating the policy
benchmark of 5.14% by 0.61% points.
2. Since inception, the fund is at 4.64%, underperforming the policy
benchmark of 4.74% by 0.10% points.
3. The Plan's gross performance of 5.75% ranked in the 45t�'
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.
b. Christiansen & Dehner, H. Lee Dehner
i. H. Lee Dehner updates the Board on SB246 and HB509 which is a
companion Bill.
1. Excess State Monies are earmarked/mandated to solely be used
for increasing the funding ratio of the Plan.
ii. H. Lee Dehner updates the Board on SB544.
1. This Bill imposes additional filing requirements on plans across
the state and additional calculations will be required. Mr. Dehner
states that there will be a possible judicial challenge teased on
the Constitution. Implementation will be required in conjunction
with the October 1, 2014 Actuarial Valuation Report.
iii. H. Lee Dehner reminds the Board that their financial disclosures need to
be filed before July 1, 2014.
iv, Chairman David Arcieri asks Mr. Dehner how the final calculations are
calculated regarding capping sick/vacation time.
1. Mr. Dehner states that the effective date of capping the
sick/vacation hours is either as of July 1, 2011 or in conjunction
with the collective bargaining agreement.
a. Mr. Dehner states that he will resend the memo to the
Board stating that one of these procedures needs to be
implemented and a statement of actuarial impact will
need to be done.
c. Foster& Foster, Doug Lozen
i. Presentation of the October 1, 2013 Actuarial Valuation Report
1. The contribution amounts in the report are applicable to the
plan/fiscal year ending September 30, 2015. The first column on
page 5 of the report reflects The Principal Extraction, experience
study, and the revised 1011/2011 and 10!1!2012 valuation
reports.
2. Total required contribution decreased from 66.50% of total
annual payroll for the plan year ending 9130114 to 63.9% of total
annual payroll for the plan year ending 9/30115.
3. City required contribution decreased from 50.00% of total annual
payroll for the plan year ending 9130114 to 47.4% of total annual
payroll for the plan year ending 9130115.
4. The unfunded accrued actuarial liability (UAAL) started off at
approximately 5M and ended at 4.8M.
5. Mr. Lozen stated that the City has a prepaid contribution of
$359,310 available to offset the current year's required
contribution.
6. There was less than favorable experience relative to the
actuarial assumptions. The primary source of unfavorable
experience is attributable to no active or inactive mortality. This
loss was partially offset by a 9.2% investment return which
exceeded the 7.5%assumption.
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Board approved the October 1, 2013 valuation report as presented by Doug Lozen upon
motion made by James Morey and second by Larry Brinson, motion carried 4-0.
Board voted the declaration of returns for the Plan shall be 7.50%for the next year, net of
investment related expenses, upon motion madle-by made-by James Morey and second by Larry
Brinson, motion carried 4-0.
7, Disbursements
Disbursements were a roved as stated on the agenda upon motion made by James
Morey and second by Larry Brinson, motion carried 4-0.
8. Staff Reports, Discussion,and Action
a. Ferrell Jenne, Plan Administrator
i. State Annual Report was sent to the Chairman and Secretary for
signatures.
Board approved addlinq Ferrell Jenne to the Salem Signature Authorization Form upon
motion made by Larry Brinson and second by James Moy, motion carried 4-0.
ii. Trustee James Morey asks if he is able to attend meetings via
conference call and Mr. Dehner states that he is able to do this but
cannot count towards the quorum.
9. Adjournment The meeting adjourned at 2:19PM
10, Next Meeting June 16, 2014 at 1:30PM.
ectf Ily s mitted by: ApprovLdly:
F rr I Jenn ln Administrator Chai map
ITOHN TAU Qn
Date Approved By the Pension Board: NNE- 1"CH
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