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2009-05-11 Police Fund Meetingr n LJ CITY OF OKEECHOBEE GENERAL EMPLOYEES OKEECHOBEE UTILITY AUTHORITY City General/OUA Members lamie Mullis, Chair-Present Jerry O'Bannon-present Kevin Barber-Present Linda Tewksbury-present Bette Clement POLICE AND FIREFIGHTERS PENSION BOARD MEETING POLICE MINUTES May 11, 2009 Police Officers Members Denny Davis-Absent Bettye Taylor-Present Victoria Williams-Present Louise Chandler-Absent Bill Bartlett-Present Firefighters Members John Koepke-Present Billy Douglas-Present Gary Ritter-Present Brook Conway-Absent Glen Hodges-Absent General Meeting held at 55 SE 3`d Ave Room 200 Okeechobee Florida, was called to order at 5:05 by Jamie Mullis. Basil Coule and Janet McKinley were present to represent the Bookkeeping side of the Pension Funds. David Fraser-Salem Trust Custodians: Said all three boards accounts have been opened waiting on the money to be transferred. Expect to have assets in their custody by end of the week. Money is still in SunTrust's possession as of now. SunTrust will handle payments until June 1, 2009. The only issue they had seen so far is that SunTrust used a percentage when figuring withholding of funds instead of the IRS tables. He advised IRS frowns on this and it can cause an audit by the IRS. They will be sending letters to all pensioners to fill out new W4 Forms but with the new stimulus plan they will probably see and increase instead of a decrease in their monthly check. Attorney Scott Christiansen: Gabriel Roeder Smith & Company and Attorney Christiansen still negotiating on the Gabriel contract. Christiansen not happy with what they submitted. Legally he cannot make us fire them if they do not accept Fiduciary Responsibility but feels that each person that has impact on fund should have. Will address this issue again at next meeting after he has resubmitted some changes he thinks they should have in their contract. Each board advised they would be doing their own minutes again. Jess Manson resigned for OUA Board and Kevin Barber was in meeting pending his final approval. Basil Coule asked if there were any other legal requirements about being a trustee such as • experience or training. Christiansen advised no just a member of OUA and the appointed member has to live in the City. • Christiansen reminded Trustees to make sure their Form 1 Letters are filed with the Supervisor of Elections in July. Christiansen advised the Ordinance Updates were taken a little longer due to the amount of changes having to be made to bring Pension's in to compliance with IRS rules. No cost associated just housekeeping for the IRS rules. Christiansen advised the one submitted could be taken to the Council but the Government had just passed some new changes and a new ordinance would have to be drafted and presented. 1. Change one- Buy back currently you can only buy back time with a Police or Fire Agency in the State of Florida. The new legislature allows you to vote to have it opened to any state that has the same type of Certification. 2. Change two- Trustee term could be extended to a 4 year term which would increase the time a trustee has to actually learn what the Pension plan is about. 3. Change three- Premium pretax for retirement health insurance does not have to be an in house insurance plan it will apply to other plans as well. 4. Change four- Foreign investments limits have changed to 25% of plan from the original 10%. The plan can still vote to limit what their managers do but it opens the window for the money managers to make more foreign investments. 5. Change five- When a City terminates a Pension Plan they now have to fund the whole amount of the plan not just pay the already retirees. • Bettye Taylor made motion to approve the buyback allowing out of state buy backs. 2"d by Victoria Williams. Motion passed all in favor. Bettye Taylor made motion to approve extension of Trustee term to 4 years. 2"d by Victoria Williams. Motion passed all in favor. Tim Nash —Bogdahn Group: 2"d Fiscal quarter results not good. Stock Market down, SP down 10%. Internationals down. Bond market up 1%. Good news is that SunTrust did a good job on the downside of protecting us. SunTrust does not do well when the Market is in the upswing but do to their very conservative nature they had protected us from losing a large amount. We are in the top 9% of Pensions. Value funds did poorly. Growth fund helped. Investment Policy requires them to advise board when we are below 50% equity mark. At this point we are there. They feel we need to start moving money back into the stock market now. Bettye Taylor questioned Nash if SunTrust did such a great job protecting us why did we need to change money people. Nash said they protected us because they are so conservative but on the other hand they do not do well when the market starts rallying because they are too conservative. He advised • they had also started changing hands and money managers and those changes have not started to felt in the plans. He advised that Bowen and Hanes was a wise choice for the board. • CJ Nash passed around the change of custody forms for the money to actually be moved for each board to be signed. Bill Bartlett called Police Board to order. Victoria Williams made motion to approve expenditures as follows: Gabriel Roeder Smith and Co Christiansen and Dehner PA Bogdahn Group 2"d by Bill Bartlett. Motion passed all in favor. $6316.00 $ 525.79 $9375.00 Bill Bartlett made motion to approve minutes from February 9, 2009 meeting. Victoria Williams seconded motion. Motion passed all in favor. Louise Chandler arrived at meeting. Bettye Taylor made motion to adjourn meeting. 2"d by Victoria Williams. Motion passed all in favor. Meeting was adjourned at 6:10 PM. f� ��, � � � . �- , Bettye Taylor Secretary Discussed the letter from GRC (Actuary) asking to be paid to do a five year plan on the cost of this recession on out pension plans. Discussed this was a needless expense at this time. After discuss with Scott Christiansen and all three boards it was decided to table this discussion till the May Meeting to see if there was need for this study. Discussed the letter received end of last year asking for a new contract from GRC. Christiansen advised they were researching fiduciary responsibility for an Actuary so he suggested we hold off until they have further information.