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2013-02-04 Police Fund MeetingCITY OF OKEECHOBEE/OKEECHOBEE UTILITY AUTHORITY/POLICE/FIRE PENSION BOARDS • REGULAR MEETING MINUTES, FEBRUARY 4, 2013 CITY HALL, 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 • � TRUSTEE ATTENDANCE: CITY OF OKEECHOBEE/OUA Jamie Mullis, Chairperson Daryl Roehm Linda Tewksbury POLICE: Chief Davis, Chairperson Bill Bartlett Russell Cale FIRE: OTHERS PRESENT: Gary Ritter Scott Christiansen, Attorney Jack Evatt, Bogdahn Group Janet McKinley, OUA Financial Liaison Basil Coule, OUA Financial Liaison Theora Braccialarghe, Actuary Melissa Algayer, Actuary CALL TO ORDER REGULAR MEETING: 5:00 p.m. by Jamie Mullis 2. INVESTMENT REPORTS: Melisa Jahner, Secretary Kevin Barbour Bettye Taylor, Secretary Ray Worley Adam Crum A. David Kelly of Bowen & Hanes was not present for a review, an investment summary was distributed. B. Jack Evatt of the Bogdahn Group presented an overview for the quarter ending December 31, 2012. The Total Fund Market Value as of 10/1/2012 was $8,139,554.00 and ended on 12/31/2012 with $8,072,091.00. The Total Fund (Net) as of December 31, 2012, being 17.81% for October 2011 through September 2012. Mr. Evatt informed the Boards of the concerns and disappointment with Bowen & Hanes performance and recommended notifying them either written or verbal. It was the consensus of all three Boards for him to draft a letter stating the concerns and disappointments. C. Salem Trust — The Salem Trust Statements for the Receipt & Disbursement (R & D), Equity and Fixed Income were distributed reflecting the activity for the months of October — December, 2012. D. Theora Braccialarghe and Melissa Algayer, from Gabriel Roeder and Smith presented the Actuarial Valuation Report as of October 1, 2012 for the Annual Employer Contribution for the year ending September 30, 2014. Ms. Braccialarghe explained that the mortality rates were updated from the 1994 Group Annuity Mortality Tables for Males and Females to the RP-2000 Combined Healthy Participant Mortality Table for Males and Females, using projection scale AA to anticipate mortality improvements. The required City contribution increased by about $61,000 as a result of the change. Attorney Christiansen recommended the Boards consider easing or smoothing into the new mortality table to avoid the full force all at once. Theora advised the new Gaspy plan comes into effect this year. She said it requires you to disclose what your unfunded is and when will the plan run out of money. Florida is a good watchdog state and has been very diligent about making sure the cities put in the money they are supposed to. Theora then reviewed each plan summary. Bettye Taylor asked about the people who are leaving their benefits to their children and what this will do in the projected funding issues of the plan. Janet Mckinley advised that this was • done in error and that there can only be one survivor. Scott Christiansen advised that joint survivor can only be done leaving it to one person but the calcalcutions were done as if it was a spouse. Christiansen saitl it was split between the two that was done in error and the ages of the survivors were taken into consideration. Christiansen said the statute precluded blocking any changes to the way beneficiaries are set up. 3. ITEMSIREPORTS FROM BOARD ATTORNEY CHRISTIANSEN The Summary Plan Descriptions for each board, dated February 1, 2013, were distributed. These are to be delivered to the appropriate persons. He will present the IRC ordinances to maintain the tax qualification status of the plans at the next meeting and then will be sent to City Council for review and adoption. 4. UNFINISHED BUSINESS TO DISCUSS IN OPEN SESSION. 5. NEW BUSINESS TO DISCUSS IN OPEN SESSION. 6 RECESS FROM OPEN SESSION AND CONVENE IN INDIVIDUAL SESSION at 6:45 P.M. OKEECHOBEE CITY POLICE TRUSTEE MEETING: Called to order by Chairman Dennis Davis at 6:45 PM. � A. Motion to dispense with the reading and approve the minutes for the November 5, 2012 meeting. Bill Bartlett moved to approve the November 5, 2012 Minutes as presented; seconded by Ray Worley. Motion carried unanimously. B. Motion to approve the financial reports as presented by Bettye Taylor: Motion moved by Bill Bartlett seconded by Russ Cale . Motion carried unanimously. C. Christiansen & Dehner, P.A. proposed revised °Summary Plan Dscription" for review and approval. Russ Cale movetl to approve the Summary Plan Description dated February 1, 2013 with "Exhibit B" provided by the Actuary; seconded by Ray Worley. Motion carried unanimously. D. Bettye Taylor moved to instruct Mr. Jack Evatt of the Bogdahn Group to draft a notice to David Kelly of Bowen & Hanes referencing the Police Pension Boards dissatisfaction of their performance; seconded by Russ Cale. Motion carried unanimously. E. Bill Bartlett moved that based on Mr. Evatt's advice, the total expected annual rate of investment return for our fund for the next year, the next several years and the long term thereafter shall be 7% net of the investment related expenses; seconded by Ray Worley. Motion carried unanimously. A PL-1 notice will be sent to the Bureau of Local Retirements. F. Russ Cale moved to approve the Actuarial Valuation Report with a smooth-in adjustment from the 1994 Group Annuity Mortality Tables to the RP-2000 Combined Healthy Participant Tables; seconded by Bill Bartlett. Motion carried unanimously. • G. ADJOURN MEETING: The meeting was atljourned at 7:00 p.m.