CITY OF CORAL SPRINGS POLICE OFFICERS PENSION BOARD MEETING FEBRUARY 13, 2017

Transcription

1 1. ROLL CALL/CALL TO ORDER CITY OF CORAL SPRINGS POLICE OFFICERS PENSION BOARD MEETING FEBRUARY 13, 2017 City Hall, 9551 West Sample Road Coral Springs, Florida Chair Scott Myers called the meeting to order at 2:03 p.m. Other Board Members present were Corey Logan, and Susan Grant. Catherine Givens and Chris Mills were not present. Also in attendance were Consultant Daniel Johnson of AndCo, Consultant Charles Carr of Southern Actuarial Services, Brett Friedman of RSM, Leany Perez of RSM, Pension Administrator Gina Orlando, Pension Analyst Greg Abend, Board Attorney Bonni Jensen, City Accountant Todd Carlino, and Recording Secretary Daidre Mitchell of the Office of the City Clerk. 2. PLEDGE OF ALLEGIANCE Mr. Myers led the recitation of the Pledge of Allegiance. 3. MINUTES ACTION: Ms. Grant offered a motion to approve the minutes of the December 5, 2016, Pension Board meeting. Mr. Myers offered a second. The motion was approved unanimously (3-0). 4. MEMBER COMMUNICATIONS None 5. PUBLIC COMMENTS None 6. OLD BUSINESS REQUEST FOR PROPOSAL (RFP) PENSION ADMINISTRATION SOFTWARE PROVIDER Gina Orlando provided an update on the RFP for the purpose of securing a Pension Administration software provider. She said that the RFP was drafted based on one that was received from an entity that utilizes the same protocols as the City does. She worked with Purchasing Manager Angelo Salomone to develop the RFP and also provided a copy to Human Resources Director Dale Pazdra for his review.

2 Police Officers Pension Board 2 ACTION: Mr. Myers offered a motion to send the RFP for Pension Administration Software for bid. Ms. Grant offered a second. The motion was approved unanimously (3-0). 7. NEW BUSINESS A. RSM PRESENTATION OF FY FINANCIAL STATEMENTS B. RSM PRESENTATION OF 2016 STATE ANNUAL REPORT Brett Friedman and Leany Perez of RSM presented the auditor s report of the financial statements of the Police Officers Pension Plan for Fiscal Year Mr. Friedman advised the Board that the audit was conducted based on general audit standards, government audit standards, and according to the agreed arrangement between RSM and the Police Pension Board. He further reported that GASB Statement 72 became effective. The GASB is designed to provide insights on how fair value is determined and how risky specific investments are. There were no unusual transactions performed and no difficulties in performing the audit. The RSM Audit Report was part of the agenda packet and was made a part of these minutes. Mr. Myers asked if there were any issues with the way Southern Actuary Services looked at the DROP. Mr. Friedman stated that there were no issues and that they have worked well with Southern Actuary Services. ACTION: Mr. Myers offered a motion to approve the audit of the Police Officers Pension Plan as presented. Ms. Grant offered a second. The motion was approved unanimously (3-0). C. SOUTHERN ACTUARIAL SERVICES PRESENTATION OF DRAFT ACTUARIAL VALUATION AS OF OCTOBER 1, 2016 Charles Carr of Southern Actuarial Services presented the October 1, 2016 Draft Actuarial Valuation Report. He stated that there will be at least two changes to the report. These changes will not affect liability numbers or contribution requirements. The October 1, 2016 Draft Actuarial Valuation Report was part of the agenda packet and was made a part of these minutes. Mr. Carr outlined the changes associated with the mortality table. He stated that traditionally a static mortality table has been utilized for the City s Police Pension Plan. This practice allowed the Board to periodically adopt a mortality table that reflected improvements in life expectancy. However, during the 2015 legislative session, Florida Statues were changed to require local government pension plans to use the Florida Retirement System (FRS) mortality tables. FRS utilizes a generational approach to mortality. This will require that plans build into the liability numbers based on the expectation that life expectancy will improve in the future.

3 Police Officers Pension Board 3 Mr. Carr and the Board engaged in further discussion regarding assets, projection scale, life expectancy improvements, market values, and the use of the phase-in method. Mr. Carr suggested that the Board consider a change that will assist in paying for the financial impact of the aforementioned mortality change. He said one way to absorb the impact is to perform a one-time adjustment back to market value and then start the phase-in method again. As long as a reasonable method is being used, the State should have no issue with the methodology utilized to counterbalance the impact of the mortality change. Discussion continued regarding the implications of the mortality table change, budgeting to cover the financial impact of the change, the one-year delay, interest fees, and return rates. Mr. Carr stated that he will make the changes discussed, apply the one-year delay, and bring the updated report before the Board for a decision at the next meeting. Ms. Orlando stated that a special meeting would need to be scheduled in order to approve the valuation report. It was the consensus of the Board to schedule the Special Police Officers Pension Board meeting for Tuesday, February 21, 2017 at 9:00 a.m. D. BOGDAHN GROUP LEGAL NAME CHANGED TO ANDCO CONSULTING Dan Johnson reported that the Bogdahn Group has officially changed its name to AndCo Consulting. Bonni Jensen stated that an addendum has been made to the firm s contract to recognize the new company name. ACTION: Mr. Logan offered a motion to approve the addendum to the contract recognizing the new company name AndCo Consulting. Ms. Grant offered a second. The motion was approved unanimously (3-0). E. ANDCO CONSULTING DECEMBER 31, 2016 QUARTERLY REPORT (BASE PLAN AND DROP) Dan Johnson provided a summary of the City of Coral Springs Police Officers Pension Fund and the Deferred Retirement Option Plan Quarterly Report. The report was part of the agenda packet and was made a part of these minutes. Mr. Johnson stated that over the last 10 years the Police Pension Plan has gone from an assumed rate of return of 9% to 7.5%. Ms. Grant requested clarification of the contributions included in the actuarial evaluation.

4 Police Officers Pension Board 4 Mr. Johnson confirmed that the plan did receive $8.1 million in contributions which includes contributions from both the City and its employees. Discussion continued between the Board, Mr. Johnson, and staff regarding categorizing miscellaneous expenses, fees and other expenses. F BENEFITS ENTITLEMENT AFFIDAVITS Ms. Orlando reported that all except for one retiree had responded. The Disability Affidavits have been reviewed and are in compliance as it pertains to outside employment. She said Willie Jackson is consistently late with his response and has yet to return this year s affidavit despite various methods used to make contact with him. The Board discussed ways that can be used to appropriately remedy the issue of Mr. Jackson s lack of response to his benefits correspondence. Ms. Orlando stated that she will draft another letter to Mr. Jackson and send via courier by tomorrow. She stated that she will request that the courier only release the letter with Mr. Jackson s signature. G. INTERNATIONAL FOUNDATION OF EMPLOYEE BENEFIT PLANS FUTURE ANNUAL MEMBERSHIP Ms. Orlando stated that a few trustees attended the last session of the International Foundation of Employee Benefit Plan and some have reported that the content presented was not worth the price of membership. Mr. Logan confirmed that he attended the last conference session. He made an effort to attend many of the classes offered relating to public pensions and found that the classes were not relevant to the City s Police Pension Plan. Mr. Myers directed Ms. Orlando to conduct research on other programs, conferences and classes. He asked that feedback be provided to the Board at the next Board meeting. H. MORTALITY SEARCH PROGRAM ACTION: Ms. Grant offered a motion to approve paying for the Mortality Search Program. Mr. Logan offered a second. The motion was approved unanimously (3-0). I. DEE LEE, FINANCE CONSULTANT SPEAKER AT MEMBER/TRUSTEE IN- HOUSE ANNUAL CONFERENCE Mr. Logan recommended that Finance Consultant Dee Lee be invited to provide education on how to plan for retirement. He said, if hired, she would be teaching the

5 Police Officers Pension Board 5 course at the next Annual Pension Member Seminar. He recommended splitting the cost of hiring Dee Lee with the Fire Pension Board. The Board discussed dates, location, content, and total cost of having Ms. Lee as a consultant. Mr. Logan stated that he will work on securing a date, location, and the content of the seminar. 8. BOARD ATTORNEY A. STATUS UPDATE SUSPENSION OF BENEFITS TO DOUGLAS WILLIAMS AND SHERRY WILLIAMS Ms. Jensen provided a status update on the Williams case. She said that the Williams filed a motion for attorney s fees. A response was received from the judge basically stating that the Board needs to respond. She reported that Sugarman and Susskind is preparing a response that will be brought before the Board for review. Mr. Myers asked if the Board is obligated to follow the Law Judge s recommendation. Ms. Jensen stated that the Board does not have to follow the Law Judge s recommendation. She said that the case is outside of 185 proceedings and the Board will wait to see how the judge rules on the arguments being made. In the end the Board will be the final decision maker in the matter. B. SECURITIES LITIGATION POLICY RECOMMENDATION Ms. Jensen provided the Board with the proposed Security Litigation Policy, as it seems that the Board is presently without one. She said that it is important for the Board to have a policy in order to outline the roles of parties allowed to take action between meetings to file cases as necessary. She requested that the Board become familiar with the policy. Mr. Myers recommended that the Board review the policy and that the item be placed on the next Board meeting agenda for a decision. C. IRS MILEAGE RATE FOR 2017 Ms. Jensen reported that the Internal Revenue Service (IRS) decreased their mileage reimbursement rate from 54 cents to 53.5 cents. Ms. Jensen discussed information regarding fraud issues that have occurred in other cities. She recommended that the City set security measures into place to avoid fraud issues. Ms. Orlando outlined the measures and procedures currently in place to avoid and prevent fraud issues.

6 Police Officers Pension Board 6 9. TAX ATTORNEY Ms. Jensen suggested that the changes being made to the Tax Determination Letter be made in a timely manner. Ms. Jensen stated that the Board usually only looks at the document and acknowledges receipt. 10. SECURITIES LITIGATION ATTORNEY SAXENA WHITE Ms. Jensen reported that the stay in the Wilmington Trust Securities Litigation has been lifted and the plan will move forward for discovery. 11. SECURITIES LITIGATION ATTORNEY KESSLER, TOPAZ, MELTZER CHECK None 12. PAY WARRANTS TO BE APPROVED ACTION: Mr. Myers offered a motion to approve warrants #1883 through #1901 (pay warrants), and #1870 thru #1899 (warrants to ratify). Ms. Grant offered a second. The motion was approved unanimously (3-0). 13. TRUSTEE AND ADMINISTRATOR COMMUNICATIONS Ms. Orlando provided the Board with the Administrator s Communications Report. The report was part of the agenda packet and was made a part of these minutes. 14. ADJOURNMENT The meeting was adjourned at 4:54 p.m. A special meeting was set for 9:00 a.m. on Tuesday, February 21, The next regular meeting was set for 2 p.m. on Monday, May 22, 2017, at City Hall.