2011-02-07 Police Fund Meeting. _ �
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CITY OF OKEECHOBEE
POLICE
PENSION BOARD MEETING
POLICE MINUTES
02/07/2011
Police Officers Members
Denny Davis-Present
Bettye Taylor-Present
Russ Cale- Present
Bill Bartlett-present
Pension Meeting held at 55 SE 3rd Ave. Okeechobee Florida.
Meeting called to order at 5:06 PM by Jamie Mullins for joint boards.
Presented by Scott Christiansen Attorney:
Discussed the Records Management Custodian. This person is responsible for records retention.
They recommend we follow the Schedule GS1-S1 for records retention schedule. This is a whole list
of documents that have an indication of how long the records have to be retained. Said letters
• have to be done appointing this custodian then sent to Division of Library and Information Services
in Tallahassee. Said he would email the letter to Bettye Taylor. Bettye Taylor will set it up for all
boards then forward to each of the funds to be signed and forwarded. Bettye Taylor advised that
Lane Gamiotea was appointed a couple of years ago as City Clerk to handle this retention of
records. He advised while boards are together to vote to keep the City Clerk as the Records
Retention Manager and if there is a change we can send in the new forms. Scott Christiansen asked
that a copy of the resolution be forwarded to him when it was completed.
Bill Bartlett made motion to approve Lane Gamiotea,-City Clerk as Records Manager. Russ Cale
seconded this motion. Motion passed.
Christiansen then discussed legislature that had been presented and then removed from the table
reference pension plans in the state of Florida. This legislature presented by Representative
Costello was as�follows: no government plan in the state could offer retirement date earlier then
55 years of age;�limiting the multiplier to 1.6 %, Drop Plans would end December 2012, and the
sponsor of the pension plan could not be required to contribute more than '15% to the plan, that
employees could agree to increase their contrib�itions to keep their current level of benefits. This
was withdrawn after discussions with the PBA and nothing else has been filed yet.
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Said employees who reside in the City can be nominated to the Pension Board by the City to fill the
empty slot.
Said there is case law that says once you hit normal retirement age they can not affect your
' �• pension.
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;• Bettye Taylor asked about how the money is funded into the drop. According to Bill Douglas and
. Scott Christiansen, the employee's contributionf to the plan stop and are now back in your check.
The drop is funded by your pension check going into the drop plan until you leave.
Bettye Taylor asked if they can go into the drop even if they have not reached 25 years of service.
Drop can be entered at 10 years of service and 55 or 25 years of service.
Tim Nash of Bogden Group Presented: _
Fiscal year is starting out good. 3`d quarter in a row th'e numbers is good. Bowen Haynes they are
buying International which was up 7 for the quarter the S& P up over 10%. The Lehman Index was
down 1.3 and Bowen did better. They were not down near as much. The AAA bonds were down
2.5%, they were not doing well. Junk bonds were up and doing well. Banks are lending money just
not making it easy for people to borrow. Showed a chart of the market from the 1920's and
showed the ups and downs that comprise the market.
� Police went from 5.4 million up to $5,751,481. All plans are in line with investment policy. Fund
• made 6.52 which are just under the 7% of the actuarial assumption. It is forecasted that we will
; have a double digit year. The plan ranks in the top 22% of the pensions plans across the country
comprising of 352 plans.
� Bogden feels that Bowen Haynes is doing a good job with the investments.
On the compliance checklist the total equity allocation was less than 60% of the total assets at cost.
The plan is actually at 60.88% so it was checked no.
Our plan is in compliance with not doing business with companies on the Scrutinized Company list.
• Reviewed the Investment Policy Statement. Listed_asset classes as follows:
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Asset Class Target Range Benchmark Index
Domestic Equity 45% 40%-70% Russell 3000
International Equity 15% 5%-20% MSCI-ACWxUS
Broad Market Fixed Income 40% 20%-55% Barclays Aggregate
Reviewed the Investment Guidelines for the plan that are listed in the Investment Policy. Also
reviewed the limitations and the absolute restrictions list. Reviewed the items that if3 of these
items were breached they would be warned, if 5 wer� breached they would recommend an
Investment Manager evaluation for the mandate be done.
There was discussion about the range allowed on Internationals. Scott Christiansen said he had a
note that the range would be %0 to 20%. Tim Nash said they felt like 5% was a good number. He
also �oted the date on the bottom of the policy was incorrect. Bill Bartlett made a motion to accept
the I�ue�stment Policy with the date correction noted at the bottom. Motion was seconded by
Bettye Taylor. All in favor motion passed.
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Boards split up individually at 6:00 PM.
Chairman Denny Davis called the board to order.
Bill Bartlett made a motion to approve the minutes from Special meeting held on 8/10/2010. 2nd by
Bettye Taylor all approved. Motion approved by all.
Russ Cale made rriotion ta approve minutes for November 8, 2010 meeting. 2"d by Bill Bartlett and
! motion approved by all.
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Bill Bartlett made motion to approve Schedule GS1-SL for records retention. 2"d by Russ Cale.
Motion approved by all. _
Bill Bartlett voted to approve expenditures of $5r98.58 2"d by Russ Cale motion approved by all.
Russ Cale made motion to adjourn 2"d by Bill Bartlett.
Russ Cale made motion to adjourn Meeting at 6:15 PM, 2"d by Bill Bartlett. All in favor.
Secretary —Bettye Taylor