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12-12-2016CITY OF EDGEWATER GENERAL EMPLOYEES' PENSION BOARD QUARTERLY MEETING MINUTES City Hall Council Chambers Monday, December 12, 2016 at 10:30AM TRUSTEES PRESENT: Chris Mathewson Brenda Dewees John McKinney Tim Sopko Tyna Hilton TRUSTEES ABSENT: None OTHERS PRESENT: Lee Dehner, Christiansen & Dehner Ferrell Jenne, Foster & Foster Jack Evatt, The Bogdahn Group Doug Lozen, Foster & Foster (via conference call) Julie Christine, City of Edgewater Jim Davis, Plan Member Call to Order Brenda Dewees called the meeting to order at 10:30AM. 2. Roll Call - As reflected above. 3. Public Comments None. 4. Approval of Minutes The minutes from the August 15, 2016, quarterly meeting were approved upon motion by John McKinney and second by Tim Sopko, motion carried 5-0. 5. New Business a. Resignation of Chris Mathewson. i. Chris Mathewson informed the board that effective today he was resigning as the Union Stewart. Chris stated he had not heard that a replacement had been appointed. b. Renewal of 2017 FPPTA Membership. i. Ferrell Jenne informed the board that their $600 annual renewal fee was due if they intended to remain members of FPPTA. The board approved the renewal of their 2017 FPPTA membership, upon motion by Tim Sopko and second by John McKinney, motion carried 5-0. c. Discussion of the benefit analysis for James Davis. i. Ferrell Jenne informed the board that Doug Lozen would not be available until 11:15am due to another meeting. By consensus, the board agreed to move this discussion later in the agenda. d. Discussion of vendor RFQ. i. John McKinney requested this agenda item be moved up earlier in the agenda since he requested this discussion and he has to leave early for a funeral. ii. Ferrell Jenne reported that she had sent out a fee survey on November 23, 2013, and had summarized her findings at the following quarterly meeting. iii. The board directed Ferrell Jenne to conduct an updated fee analysis of all service providers. iv. John McKinney directed Ferrell Jenne to mention to the Police and Fire Boards that the General Board had requested a fee analysis for all service providers. The board directed Ferrell Jenne to conduct a fee analysis on all vendor service providers and interface with the Police and Fire Pension Boards, upon motion by John McKinney and second by Tim Sopko, motion carried 5-0. Note: John McKinney left the meeting at 10:45am. e. Discussion of the designated Records Management Liaison (RMLO). i. Ferrell Jenne stated that Bonni Wenzel was no longer the City Clerk and she was the designated RMLO. Brenda DeWees asked if a position could be designated rather than a person. Lee Dehner confirmed that this was permitted. The board approved designating the City Clerk as the Records Management Liaison Officer and adopting the GS1-SL records retention schedule, upon motion by Tvna Hilton and second by Tim Sopko, motion carried 4-0. Update on money market mutual fund authorization form. i. Ferrell Jenne informed the board this was executed on September 21, 2016 by Brenda DeWees per Jack Evatt's instructions. Brenda commented that she had a copy if the board wished to review the document. Fund activity report. i. The board reviewed the report for the period of August 10, 2016 through December 6, 2016. The board approved the fund activity report as presented, upon motion by Tvna Hilton and second by Tim Sopko, motion carried 4-0. 6. Old Business a. Tyna Hilton asked if a vested member left the City, how they find out when they're eligible to retire. Ferrell Jenne stated the member could contact her and she would advise them of their retirement options. 7. Reports a. Salem Trust, Mindy Johnson, Custodian. i. Ferrell Jenne informed the board that Mindy Johnson had come down with the flu and was unable to attend. b. The Bogdahn Group, Jack Evatt, Investment Consultant. i. Jack Evatt informed the board that his firm was rebranding and would soon have a new name and logo to reflect an employee owned company rather than family owned. ii. Quarterly update as of September 30, 2016. 1. Jack Evatt gave a brief overview of the market environment during the quarter. 2. Market value of the fund as of September 30, 2016, was $12,275,859. 3. Gross earnings for the quarter were 3.67%, outperforming the policy benchmark of 3.20°/x. Fiscal YTD returns were 8.87%, underperforming the benchmark of 10.43%. Trailing returns for the 3 and 5 year periods were 5.71 % and 9.81 %. Since inception (10/1/2000) gross returns were 4.61%, underperforming the policy benchmark of 5.46%. c. Christiansen & Dehner, Lee Dehner, Attorney. i. Legal update. 1. Lee Dehner informed the board that the legislative session would convene in March and run for 60 days. Lee stated he hadn't heard of any proposed bills that would affect the plan. 8. Consent Agenda The board voted to approve the consent agenda as presented upon motion by Tyna Hilton and second by Tim Sopko, motion carried 4-0. 9. Staff Reports, Discussion, and Action a. Update on Ordinance 2016-0-24. i. Ferrell Jenne informed the board that Ordinance 2016-0-24 had been adopted by Council at their December 5, 2016 meeting and had been sent to the State on December 8, 2016. b. Update on Senate Bill 534. i. Ferrell Jenne informed the board that required disclosures and statements had been posted to the City's website on October 24, 2016. c. Contribution checks from Donna Nichols and Julie Christine. i. Ferrell Jenne informed the board that the contribution checks for Donna and Julie had been received and deposited into the fund. ii. Julie Christine stated there was an overpayment of contributions and requested that the overpayment be returned. Lee Dehner commented that Doug Lozen indicated the overpayment was a wash and advised Julie to speak with Doug on the specifics. d. Proposed 2017 meeting dates. i. The board reviewed and discussed the proposed meeting dates of March 20th, June 19th, September 18, and December 11tH ii. The board discussed and approved changing the meeting time to 10:30am. Note: Doug Lozen called in at 11:20am. 10. New Business (cont.) a. Foster & Foster, Doug Lozen; Actuary. i. New benefit analysis for James Davis. 1. Doug Lozen reminded the board that the updated benefit analysis was done per direction given at the last meeting. 2. Doug Lozen stated the new analysis was done based on credited service. Doug commented that the Ordinance did not give direction on how to handle this situation. 3. Lee Dehner reviewed the equitable estoppel and stated that if equitable estoppel was determined, the member could be put in the position he would have been in. 4. Brenda DeWees asked about the increases in 2005, 2006, and 2007. Jim Davis stated these were COLAs. Doug Lozen commented that the COLA adjustment was close to the service Mr. Davis was accruing. 5. Doug Lozen stated that if approved, the City would show a financial loss and would pay it over the years. 6. Lee Dehner asked why he chose Option #1 on the Principal election form. Jim Davis stated it was explained to him by the former HR Director that it was free money if he went with Option #1. Jim commented that he would have chosen Option #2 had he been provided other information. 7. Tyna Hilton asked if Option #2 was approved, would the member be allowed to have a modified cash refund. Doug Lozen stated this option would be made available to the member. Brenda DeWees briefly described a modified cash refund to Jim Davis. Doug Lozen confirmed that this would not increase the funding any more than what was shown on the updated analysis. 3 8. Lee Dehner commented that equitable estoppel had been established based on Jim's answers to his questions. 9. Brenda DeWees reviewed the two options shown on the analysis. Brenda commented that Option #2 was Jim Davis retiring for plan purposes as of January 1, 2017. 10. Tyna Hilton commented that either option allowed the member to continue working for the City. 11. Tim Sopko asked if there was any chance that this could come back to the board years down the road. Lee Dehner commented that the board was just administering the Plan and there was always the chance that someone could address the board. The board approved Option #2 of the December 5, 2016, Foster & Foster Adjusted Benefit Analysis, upon motion by Tim Sopko and second by Tyna Hilton, motion carried 4-0. ii. Brenda DeWees advised Doug Lozen that Julie and Donna had requested a refund of the overpayment of contributions. iii. Doug Lozen commented the contribution amounts on the analysis were a snapshot and by the time the accounts were closed out and deposited the extra contributions were a wash since they were after the snapshot and the value of the benefit had increased as of the deposit date. iv. Julie stated her over payment was in excess of $10,000. v. Doug Lozen commented that the contribution deposits were considered member contributions. vi. Brenda DeWees asked if the account balance decreased, would Donna and Julie have had to make up the difference. Doug commented that he's not sure how to answer the question since it's theoretical and the balance did not increase. vii. Tim Sopko commented that his understanding was whatever was in the 401 k would be rolled over into the Plan. Brenda stated that was her understanding as well. viii. Tyna Hilton asked if Julie would have the option to get a modified cash refund of the balance that was rolled over from her 401 k. Doug Lozen . commented that he thought the funds would be employee contributions but the City may want to form their own opinion. Lee Dehner confirmed that just 2.5% of the 401 k balance would associated with the modified cash refund amount. 11. Trustee Reports, Discussion, and Action a. The board thanked Chris Mathewson for his service. 12. Adjournment The meeting adjourned at 12:OOpm. 13. Next Meeting March 20, 2017, at 10:30am. iPVW 4