09-15-2014CITY OF EDGEWATER POLICE OFFICERS' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chamfers
Monday September 15, 2014 at 1:30PM
TRUSTEES PRESENT: David Arcieri
Larry Brinson
Lawrence Leaf
John Tarr
James Morey
TRUSTEES ABSENT: None
OTHERS PRESENT: H. Lee Dehner, Board Attorney
Ferrell Jenne, Plan Administrator
Jack Evatt, Investment Consultant
Doug Lozen, Board Actuary
John McKinney, Finance Director
1. Call to Order David Arcieri called the meeting to order at 1:34PM
2. Roll Call As reflected above
3. Public Comment None.
4. Approval of Minutes
The minutes from the June 1 2014-quarterly-meeting were anproved upon motion b
David Arcieri and second by James Morey motion carried 5-0.
New Business
a. Discussion of New GASB Rules.
L September 3, 2014 letter from Foster & Foster lays out the scope of the
additional work and associated fees.
ii. GASB 67 can be early implemented so there is no lag time between the
GASB 67 statement, which would not be done until March when the
annual valuation reports are done, and when the auditors are looking for
this information, which will most likely be in the early part of the year.
iii. John McKinney recommends to the Board to early implement GASB 67
which will be based on the September 30, 2013 valuation report. Mr.
McKinney asks that the GASB 68 decision be deferred until the
December meeting so he has a chance to speak with the auditors to get
their opinion. Mr. McKinney also informs the Board that the City is
already a year behind in its reporting due to the timing of the valuation
reports, so he would like to see early implementation so they can get
back to being current.
1. Trustee Arcieri stated his concern that he thought the fees for the
additional GASB work was high.
2. Doug Lozen states that Foster & Foster will base their fees on
their hourly rates; the fees stated in the September letter are not -
to -exceed fees.
3. John McKinney states that he would need all three pension
boards to approve early implementation or the City would wait for
the GASI3 67 report in conjunction with the October 1, 2014
actuarial valuation report. He also informs the Board that all
expenses are reimbursed by the City.
The Board voted to early im lement GASB 67 not to exceed $1,250, upon motion -by
James Morey and second by CraW Brinson motion carried 5-0.
Discussion of Senate Bill 534.
i. Lee Dehner states that this will need to be shown on the City's website
and he recommends to show a more balanced picture by having the
actuary do the additional 2% more calculation regarding investment
return.
h. Doug states that showing this additional calculation will be a total of
$3, 500.
iii. John McKinney states that the City's website already has the software in
place that would allow these reports to be shown, as required.
The Board voted to do the additional 2% calculation regardinciSB 534,uu]on motion by
Craig Brinson and second by James Morey, motion carried 5-0.
John Tarr asks Mr. Dehner if he can answer a question regarding the minimum
disability.
i. Lee Definer confirms that the minimum disability for in the line of duty is
42% of salary,
ii. John Tarr asks if this amount can be changed. Mr. Dehner states that it
cannot go below 42% per statue. Mr. Dehner states that you can change
the percentage to make it higher for members that have more years of
service as long as the Ordinance provides for it.
iii. Trustee Arcieri states that there's a long term City insurance policy that
aiiows members to get to 66°%.
iv. Board requests Lee Dehner to review the City insurance policy to
determine how long this long term policy stays in place and how this
policy relates to health insurance.
John Tarr reminds the Board of the Division of Retirement conference taking
place in Orlando. Mr. Tarr asks permission from the Board to attend the
conference and be reimbursed for out of pocket expenses.
i. Trustee Arcieri asks what the total cost would be to attend. John Tarr
states the total should be around $425.
The Board approved reimbursing expenses to John Tarr if he attends the 44th Annual
Division of Retirement Conference upon motion by James Morey and second by „David
Arcieri, motion carried 5.0.
6. Old Business None.
Reports
a. The Bogdahn Group, Jack Evatt
i. Quarterly report as of June 30, 2014.
1. The total fund portfolio as of 06130//4 is $8,116, 742, increasing
$167,096 from the last quarter.
2, Earnings for the quarter were 3.56% (gross), underperforming
the policy benchmark of 3.80% by 0.24% points.
3. The gross performance of 3.56% ranked in the 48�h percentile of
the public fund sample.
4. Since inception, the fund is at 4.93%, underperforming the policy
benchmark of 4.98% by 0,05% points.
5. The total fund portfolio (net) fiscal year to date is 12.36% beating
the benchmark of 11.07% by 1.29%.
b. Christiansen & Dehner, H. Lee Dehner
i. Discussion of Pian Restatement.
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Lee Dehner states that they are working on the draft plan
restatement. This will give the plan one clean document to work
from.
a. Lee Dehner asks the Board if SB 1128 was ever
implemented. The effective date would be either
07/01/2011 or when the collective bargaining agreement
was in place. John Tarr states that SB 1128 has not
been implemented.
i. Lee Dehner will resend the SB 1128 memos so
this can be addressed at the December meeting.
b. Lee Dehner states that he would like Jack Evatt to
advise on the fund management and investment portion
and if he would recommend broad language for the most
flexibility in investing.
i. Jack Evatt recommends the broad language
since the responsibility lies with the Board.
8. Disbursements
Disbursements were aDoroved as stated on the agenda upon motion made by James
Morey and second by Craig Brinson, motion carried 5-0.
9. Staff Reports, Discussion, and Action
a. Update on fiduciary liability insurance.
i. Ferrell Jenne informs the Board that due to an increase in assets, the
premium has increased from the prior year for a total of $3,133.45. There
is a separate policy for the Waiver of Recourse which will be paid by the
City.
ii. City will pay the premium for the fiduciary liability insurance; they will
decrease the City contributions by the amount of premium.
b. Reminder of educational opportunities.
i. Division of Retirement Conference in Orlando and FPPTA conference in
October in Bonita Springs, FL.
c. 2015 proposed meeting dates.
i. Lee Dehner states that it follows the same pattern as previous years.
Board approved the 2015 meeting dates upon motion made by David Arcieri and second
by Craig Brinson motion carried 5-0.
10, Adfournment The meeting adjourned at 2:40PM
11, Next Meeting September 15, 2014 at 1:30PM.
Respectfully s bmitted by: Approyod-by: �w
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F�rr 11 ,Jenne P!an AdministratorJam— .''Tarr, Chairman
Date Approved By the Pension Board. A .. c '
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