CITY OF CORAL SPRINGS POLICE OFFICERS PENSION BOARD MEETING DECEMBER 3, 2018

Transcription

1 1. ROLL CALL/CALL TO ORDER CITY OF CORAL SPRINGS POLICE OFFICERS PENSION BOARD MEETING DECEMBER 3, 2018 City Hall, 9500 West Sample Road Coral Springs, Florida Chair Scott Myers called the meeting to order at 2:00 p.m. Other Board Members present were Corey Logan, Juan Robby, Catherine Givens and Chris Mills. Also in attendance were Consultants Tim Nash from AndCo; Pension Administrator Gina Orlando; Pension Analyst Greg Abend; Board Attorney Bonni Jensen and Recording Secretary Ann Marie Bodine 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. Givens offered a motion to approve the minutes of the August 20, 2018, September 24, 2018 and October 17, 2018, Pension Board meetings. Mr. Mills offered a second. The motion was approved unanimously (5-0). 4. MEMBER COMMUNICATIONS 5. PUBLIC COMMENTS 6. OLD BUSINESS 7. NEW BUSINESS a. ANDCO CONSULTING PRESENTATION PRESENTED BY TIM NASH JUNE 30, 2018 QUARTERLY REPORTS (BASE PLAN AND DROP)

2 2 Tim Nash provided a summary of the City of Coral Springs Police Officer s Pension Fund and the Deferred Retirement Option Plan (DROP) Quarterly Report. The summary reports were part of the agenda packet and were made a part of these minutes. Mr. Nash stated that the Base Plan has done extremely well even with all the volatility seen in the markets, and that the managers have done a good job overall protecting the portfolios. In regards to the DROP assets, the Loomis Sayles Value Fund has been terminated and replaced by MFS Value. A discussion followed about replacing the Vantage Point Equity Income Fund; and Mr. Myers said that the City and the Union have reached an agreement (not yet ratified) about choosing a vendor and putting out a RFP. Mr. Nash continued his report on the Quarterly results. Stocks outperformed value in the last six consecutive quarters. Good growth/performance over time with an 11.25% return outperforming the 10.3% target. Mr. Nash discussed international and domestic funds, real estate funds, fixed funds, risk (standard deviation) data, investment fees and a compliance check list. Mr. Nash explained why there is so much volatility in the market. S&P 500 stocks can be seen in the top five companies (Apple, Amazon, Google, Microsoft and Facebook) with a market capitalization of $4 trillion. This is equal to the amount in the bottom 282 S&P companies which have the same market capitalization. These five companies are huge drivers of return and volatility in the market. b. Discuss request from the City of Coral Springs Police Benevolent Bargaining Team ( Union ) and the Plan Sponsor ( City ) regarding the recordkeeping of the Deferred Retirement Option Plan ( DROP ) Mr. Myers stated that an ordinance change for DROP will be taking place whereby the Board will be given the additional responsibility of directing the investment of DROP money and picking vendors for the DROP Plan. He asked the Board members if they were comfortable with this and added that this is only a formality since it has already been tentatively agreed upon. The City only wants a consensus of moving this responsibility from City hands to Board hands. Members were asked to voice their opinions now or contact Ms. Jensen off-line. A discussion followed concerning possible additional costs to participants, however, putting out a RFP might save money and bring better investment strategies. Mr. Myers said that the Board can continue on the same path of DROP recordkeeping or decide on something different. The Board is in consensus of taking on this additional responsibility and agreed to revisit this later. c Quarterly Board Meeting Schedule 2/25/19 1 pm, 5/20/19 2 pm, and 12/2/19 2 pm (Commission Chambers)

3 3 Ms. Orlando handed out the board meeting schedule for d. RSM Confirmation Letter ACTION: Mr. Mills offered a motion to execute our agreement with RSM; Mr. Logan offered a second. The motion was approved unanimously (5-0). 8. BOARD ATTORNEY a. Wilmington Trust Update Ms. Jensen gave an update on the Wilmington Trust Securities litigation. They settled in the amount of recovery of losses and have a request in for reimbursement of $7,556. The court gave final approval to the settlement, and they are continuing to process so Board members can submit a claim for reimbursement b. Records Management Liaison Officer ( RMLO ) Designation Ms. Jensen said that the State requires all governmental entities have someone designated as Records Management Liaison Officer. She recommended the resolution be adopted that is in the packet designating Gina Orlando as Records Management Liaison Officer for the Board and to adopt the Records Retention Schedule for local government that the Division of Library and Information Services puts out from the State. It is important to keep member information for 50 years beyond the last contact (retaining calculations of benefits and designation of beneficiaries). ACTION: Ms. Givens offered a motion to adopt Resolution to designate Gina Orlando as the Records Liaison Officer and to set the Records Retention Schedule. Mr. Mills offered a second. The motion was approved unanimously (5-0). Ms. Jensen made the Board aware of a new Special Tax Notice put out by the IRS for individuals entering retirement requiring a signature when they take a distribution from their DROP account. This new document can be used as a reference and answers a lot of questions about what to do with DROP money. This nine page document is written in the form of questions. It is not given to active members, but they can refer to this document if they have questions. A buy back discussion followed concerning an employee who was not working for the City from 9/30/14 to 5/8/18. The City has entered into a settlement agreement with this member who was terminated or on leave without pay. This agreement would put the person back into service with no back pay but given credited service in the pension plan. The employee would pay their contribution, and the City would pay their contribution. It was taken to the State and the Board is waiting for a response concerning the buy back issue and if it can it be treated as a service purchase.

4 4 Time periods were discussed since members have to be continuous, and the Board has to make sure that the State agrees with this. Ms. Jensen made the Board aware that she filed a response concerning the Williams case and is waiting for them to file their reply. Ms. Jensen also notified the Board that Amendment 6 (item added to the constitution that would change the level of review in court as of 2019, whereby the court will decide on its own the interpretation of a statute) did pass. Until the end of 2018, the court will defer to the Board for the interpretation of a state law. The new law does not apply to the Board s case now because it is a pending case filed under the old law, but the level of review has changed for any future cases. Ms. Orlando wanted the Board to be aware that she received a power of attorney for a member who is gravely ill in NY. He has requested changing his designated beneficiary, and she has received a scanned copy of the original document. Ms. Orlando has not been able to communicate with the member; the only communication has been with his brother. She suggested hiring an investigator to go to New York to actually see the member. Ms. Orlando also suggested communicating via e mail as opposed to phone conversations. ACTION: Mr. Logan offered a motion to hire an investigator to do a welfare check on the member in question. Ms. Givens offered a second. The motion was approved unanimously (5-0). 9. TAX ATTORNEY HOLLAND AND KNIGHT, ROBERT FREIDMAN Ms. Jensen wanted to make the Board aware of the IRS decision regarding some minor language changes in the Collective Bargaining Agreement which is already in the Pension Plan. 10. SECURITIES LITIGATION ATTORNEY a. Grant & Eisenhofer b. Kessler Topaz Meltzercheck c. Saxena White 11. PAY WARRANTS, RETIREMENT AND DROP BENEFITS TO RATIFY AND TO BE APPROVED ACTION: Mr. Mills offered a motion to ratify pay warrants #2080, #2081, #2082, #2083, #2085, #2089, #2092, #2093, #2096, #2099, # 2100 to #2107 (pay warrants to ratify) and a motion to approve warrants #2084, #2086, #2087, #2088, #2090, #2091, #2094, #2095, #2097, #2098, #2108 (pay warrants to approve). Ms. Givens offered a second. The motion was approved unanimously (5-0).

5 5 ACTION: Mr. Logan offered a motion to approve retirement and DROP benefits #2109 to #2113 and approve revised warrants #1987, #2057, #2072, #2073. Mr. Mills offered a second. The motion was approved unanimously (5-0). 12. TRUSTEE AND ADMINISTRATOR COMMUNICATIONS Mr. Logan informed the Board of a two-hour workshop that is being offered January 10, 2019, to help better educate the people entering into DROP as well as anyone else getting to that point. Ms. Orlando asked the Board to move the $36 internet charge each month to the Police Pension budget; discussed the search for a part-time pension coordinator; reported progress on the software application started with PDG and 10 year look back data into system provided by IT; is busy working with actuarial audit and State report preparation; and distributed the 2019 meeting schedule. The next meeting is scheduled for February 25, 2019, at 1:00 pm. 13. ADJOURNMENT The meeting was adjourned at 2:58 p.m. SCOTT MYERS, Chair ANN MARIE BODINE, Recording Secretary DATE APPROVED: DOC # This meeting was recorded. An audio recording is on file in the Office of the City Clerk for five years pursuant to Florida Law and City Policy. These minutes are a permanent public record of the City of Coral Springs maintained in the Office of the City Clerk.