General Employees Pension Board Regular Meeting Agenda September 26, 2017 At 7:30 AM Bal Harbour Village Hall 655-96th Street Bal Harbour Florida 33154 1 CALL TO ORDER/ PLEDGE OF ALLEGIANCE 2 REQUESTS FOR ADDITIONS, WITHDRAWALS AND DEFERRALS 3 APPROVAL OF MINUTES 3.A March 21, 2017 Minutes 3-21-2017 Pension Meeting Minutes.docx 4 PRESENTATIONS TO THE BOARD 5 RESOLUTIONS 5.A Memorandum and Resolution GEP Board Memorandum 9-18-2017.docx Administrative Budget Resolution 2018.doc 6 NEW BUSINESS AND BOARD DISCUSSION 7 PUBLIC COMMENT 8 ADJOURNMENT One or more members of any Village Committee/Board may attend this meeting of the Council and may discuss matters which may later come before their respective Boards/Committees. The New Business and Council Discussion Section includes a section for Public Comment. On public comment matters, any person is entitled to be heard by this Council on any matter; however, no action shall be taken by the 1
Council on a matter of public comment, unless the item is specifically listed on the agenda, or is added to the agenda by Council action. Any person who acts as a lobbyist, pursuant to Village Code Section 2-301 (Lobbyists), must register with the Village Clerk, prior to engaging in lobbying activities before Village staff, boards, committees, and/or the Village Council. A copy of the Ordinance is available in the Village Clerk s Office at Village Hall. If a person decides to appeal any decision made by the Village Council with respect to any matter considered at a meeting or hearing, that person will need a record of the proceedings and, for such purpose, may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based (F.S. 286.0105). In accordance with the Americans with Disabilities Act of 1990, all persons who are disabled and who need special accommodations to participate in this proceeding because of that disability should contact the Village Clerk s Office (305-866-4633), not later than two business days prior to such proceeding. All Village Council meeting attendees, including Village staff and consultants, are subject to security screening utilizing a metal detector and/or wand, prior to entering the Council Chamber, Conference Room, or other meeting area located within Village Hall. This is for the safety of everyone. Thanks for your cooperation. Bal Harbour General Employees Pension Board Regular Meeting Agenda September 26, 2017 P a g e 2 2
Mayor Gabriel Groisman Assistant Mayor Seth E. Salver Councilman David J. Albaum Councilman Patricia Cohen Councilman Jeffrey P. Freimark Village Manager Jorge M. Gonzalez Village Clerk Dwight S. Danie Village Attorneys Weiss Serota Helfman Cole & Bierman, P.L. GENERAL EMPLOYEES RETIREMENT BOARD REGULAR MEETING MINUTES MARCH 21, 2017 AT 7:00 P.M. Bal Harbour Village Hall 655 96 th Street Bal Harbour Florida 33154 1. Call to Order/Roll Call Mayor Groisman called the meeting to order at 7:00 P.M. The following were present: Mayor Gabriel Groisman Assistant Mayor Seth E. Salver Councilman David J. Albaum Councilman Patricia Cohen Councilman Jeffrey P. Freimark Also Present: Jorge M. Gonzalez, Village Manager Dwight S. Danie, Village Clerk Richard Jay Weiss, Village Attorney Amber Riviere, Finance Director Mei Fang, Pension Administrator John McCann of AndCo Consulting Jim Rizzo of Gabriel Roeder Smith & Company 2. Pledge of Allegiance The Pledge of Allegiance was led by Officer George Waisman, and was followed by a moment of silence. 3. Approval of Minutes: November 22, 2016 Motion to Approve Moved by Councilman David Albaum and Seconded by Councilman Patricia Cohen. Vote: the Motion carried by unanimous voice vote. (5-0). 3 Bal Harbour Village General Employees Retirement Board Minutes November 22, 2016 P a g e 1
4. Financial Report for Fourth Quarter 2016 John McCann Mr. John McCann presented the Performance Report for the quarter ended December 31, 2016. Mr. McCann reported that broad asset class returns were mixed for the fourth quarter. Domestic equity indices posted positive performance for the quarter. While broad international equity and fixed income benchmarks were negative for the period. The quarter s investment cycle was dominated first by the U.S. presidential election, and then by the largely anticipated Federal Reserve (Fed) interest rate hike in December. The uncertainty that drove equity returns lower during the first half of the quarter gave way to a string of positive macroeconomic data and a Trump victory that drove equity benchmarks, particularly in the U.S., higher through the remainder of the quarter. Trump s platform of strengthening infrastructure, deregulation, and lower personal and corporate taxes drove expectations higher for both domestic growth and inflation. The broad market Russell 3000 Index returned 4.2% for the quarter. The small cap Russell 2000 Index more than doubled performance of other capitalization indices with a return of 8.8% for the quarter and a strong 21.3% for the trailing one-year period. Mr. McCann reported that the Fund portfolio value as of December 31, 2016 was $11,984,991.00. The Fund returned 1.26% for the fouth quarter which was 0.33% lower than the target Index of 1.59% and ranked in the 22 nd percentile of Total Public Fund Sponsors. The Fund earned 8.94% for the one year, and 4.76% for the past three years on an annualized basis. The asset allocation is 59.7% Equity, 35.3% Fixed Income and 5.0% cash. Total Equities return was 4.16% which was 0.22% lower than the Policy Index of 4.38%. Total Fixed Income returned -3.16% which was 0.18% lower than the Index of -2.98%. 5. Robert Gipson Retirement Payments Mr. Gonzalez introduced the item. Motion to Approve Moved by Assistant Mayor Seth Salver and Seconded by Councilman Patricia Cohen. Vote: the Motion carried by unanimous voice vote. (5-0). 6. Georgina Espinoza DROP Assets Refund Mr. Gonzalez introduced the item. Motion to Approve Moved by Assistant Mayor Seth Salver and Seconded by Councilman Patricia Cohen. Vote: the Motion carried by unanimous voice vote. (5-0). 7. 2016 Actuarial Valuation Presentation 4 Bal Harbour Village General Employees Retirement Board Minutes November 22, 2016 P a g e 2
Mr. Jim Rizzo of Gabriel Roeder Smith & Company did the 2016 Actuarial Valuation Presentation for Bal Harbour General Pension Fund. Mr. Jim Rizzo said the purpose of the Actuarial Valuation is to measure the System s funding progress, to determine the employer contribution rate for the fiscal year ending September 30, 2018. This report should not be relied on for any purpose other than the purpose described herein. Determinations of financial results associated with the benefits described in this report, for purposes other than those identified above may be significantly different. Mr. Jim Rizzo reported that based on 10-1-2016 Valuation, the Actuarially Determined Contribution is $793,089 for FYE 9-30-2017, which is 57.24% of Expected Payroll. Last year was 57.27%, decreased 0.03%. The total Active Members are 21, total Retirees 27 and total Terminated Vested Members are 8. Fund Ratio of Plan is 72%. The actuarial present value for all Active Members is $5,940,685; the actuarial present value for all Inactive Members is $12,056,559. The Payroll Growth Assumption is 5.0%. The Inflation rate is 2.5%, the Assumption Earning Rate is 6.5%. After further discussion, the Pension fund accept the 2016 Actuarial Valuation Presentation. Motion to Approve Moved by Mayor Gabriel Groisman and Seconded by Assistant Mayor Seth Salver. Vote: the Motion carried by unanimous voice vote. (5-0). 8. Request for Approval for Mr. Ron Nelson and Ms. Tina Foy to enter the DROP (Deferred Retirement Option Plan) Mr. Gonzalez introduced the item. Motion to Approve Moved by Assistant Mayor Seth Salver and Seconded by Councilman Patricia Cohen. Vote: the Motion carried by unanimous voice vote. (5-0). The Meeting was adjourned at 7:39 PM. END OF REGULAR AGENDA 5 Bal Harbour Village General Employees Retirement Board Minutes November 22, 2016 P a g e 3
GENERAL EMPLOYEES RETIREMENT BOARD MEMORANDUM TO: Honorable Mayor and Village Council FROM:Jorge M. Gonzalez, Village Manager DATE: September 26, 2017 SUBJECT: General Employees Retirement Board The following items are presented for your review and consideration: Approval of Minutes: March 21, 2017 Quarterly Investment Performance Reports IV. Financials Quarterly Investment Performance Report First Quarter and Second Quarter of 2017 investment performance reports from the Pension Fund Investment Advisor AndCo Consulting are provided for your review, Mr. John McCann can be contacted at (954) 873-4511, should you have any questions on the Bal Harbour Village General Employees Pension Fund performance reports. V. Resolution: Authorization & Appropriation of Administrative Expense The General Employees Pension Plan is established by Code for the Village with the supervision of the Plan directed by the Retirement Board, comprised of the members of the Village Council and two General Employees. The Retirement Board pays from the funds held in trust reasonable expenses incurred in the administration of the Plan. Northern Trust, serves as the Trustee of Plan assets, and requires authorization for processing of monthly administrative expenses which include investment advisory, plan and participant administration, and actuarial services. On December 22, 2015, the Retirement Board approved a contract with Benefits USA, Inc. for Plan and Participant Administration Services in the amount of $1,250/month and on May 14, 2016, approved a contract for Investment Advisory Services with Bogdan Consulting, LLC, in the amount of $1,995/month with a three-percent annual adjustment. The actuaries with Gabriel Roeder Smith & Company (GRS) have served the Village Plan since 1973 performing the annual funding valuation, required General Accounting Standards Board and State required reports ($12,000), Benefit Calculations ($375 each), and Quarterly DROP statements ($200 each), with a contingency for an increase in participant calculations for a total estimate. These routine operating 6
expenses for the Plan are summarized in the table below, and presented in Attachment A to the Resolution for approval and authorization of expense throughout the fiscal year. CONTRACTUAL EXPENSE SUMMARY Investment FY 2015 Actual FY 2016 Actual FY 2017 FY 2018 Nothern Trust 20,245 18,622 22,300 22,300 & Co 22,692 23,593 23,940 24,660 Actuary 49,732 14,323 39,450 29,450 Administrator 15,000 15,000 15,000 15,000 Legal 6,866 5,918 7,000 7,000 Other Operating 114,535 77,455 107,690 98,410 Operating Capital 0 0 0 0 TOTAL CONTRACTUAL EXPENSE 114,535 77,455 107,690 98,410 7
RESOLUTION NO. 2017-2018 A RESOLUTION OF THE GENERAL EMPLOYEES RETIREMENT BOARD OF BAL HARBOUR, VILLAGE, FLORIDA, APPROVING THE ADMINISTRATIVE BUDGET AND AUTHORIZING ADMINISTRATIVE EXPENDITURES FOR FISCAL YEAR 2017-18; PROVIDING FOR EXPENDITURE OF FUNDS; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the General Employees Pension Plan is established under the Code of Ordinances for the Village of Bal Harbour, Florida, Part II, Chapter 13, Article II; and WHEREAS, the supervision of the Plan is directed by the Retirement Board, comprised of the members of the Village Council and two General Employees; and WHEREAS, the Retirement Board shall pay from the funds held in trust reasonable expenses incurred in the administration of the Plan; and WHEREAS, Northern Trust, serves as the Trustee of Plan assets, and requires authorization for processing of administrative expenses; and WHEREAS, on December 22, 2015, the Retirement Board approved a contract with Benefits USA, Inc. for Plan Administration Services in the amount of $1,250/month and on May 14, 2016, approved a contract for Investment Advisory Services with Bogdan Consulting, LLC, now & Co, in the amount of $1,995/month; and WHEREAS, Gabriel Roeder Smith and Company has performed the actuarial services required for the operation of the Plan since 1995. NOW THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF BAL HARBOUR VILLAGE, FLORIDA, AS FOLLOWS: Section 1. Recitals. The above recitals are true and correct and are incorporated herein by this reference. Section 2. Plan Administrative Budget & Expense Approved. The Plan Administrative Budget for Fiscal Year 2017-18 (the Budget ), a copy of which is attached hereto as Exhibit A is hereby approved and adopted, authorizing the expenditure of funds for the provision of outlined recurring service expenses. 8
Section 3. Conflicts. All sections or parts of sections of Village Resolutions that conflict with this Resolution are repealed to the extent of such conflict. Section 4. Severability. The provisions of this Resolution are deemed to be severable, and if any section, sentence, clause or phrase of this Resolution shall for any reason be held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining sections, sentences, clauses, and phrases of the Resolution, but shall remain in effect, it being the legislative intent that this Resolution shall stand notwithstanding the invalidity of any part. Section 5. Effective date. This Resolution shall be effective upon adoption. The foregoing Resolution was offered by Retirement Boardmember, who moved its adoption. ATTEST: MAYOR VILLAGE CLERK APPROVED AS TO FORM: WEISS, SEROTA, HELFMAN, COLE & BIERMAN, P.L. VILLAGE ATTORNEY 2 9
Exhibit A: FY 2017-18 Administrative Budget CONTRACTUAL EXPENSE SUMMARY Investment FY 2015 Actual FY 2016 Actual FY 2017 FY 2018 Nothern Trust 20,245 18,622 22,300 22,300 & Co 22,692 23,593 23,940 24,660 Actuary 49,732 14,323 39,450 29,450 Administrator 15,000 15,000 15,000 15,000 Legal 6,866 5,918 7,000 7,000 Other Operating 114,535 77,455 107,690 98,410 Operating Capital 0 0 0 0 TOTAL CONTRACTUAL EXPENSE 114,535 77,455 107,690 98,410 3 10