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Police Retirement System Board Meeting - October 22, 2015

MIAMI SHORES VILLAGE

POLICE RETIREMENT SYSTEM BOARD MEETING

 

 

The Police Retirement Board and the General Employee Pension Board jointly met on Thursday, October 22, 2015 at the C. Lawton McCall Community Center. The Police Retirement Board meeting was called to order at 8:25 AM.   The following individuals were present for the meeting:

GENERAL EMPLOYEE PENSION BOARD                               

             

              Herta Holly

              John Bolton

              Cliff Vickers

              Natasha McKay

Also present were Dave West of the Bogdahn Group, Sepedeh Tofigh from the law firm of Holland & Knight and Finance Director, Holly Hugdahl.

Due to new members being present, self-introductions were conducted.

ELECTION OF CHAIRPERSON

Officer Vickers moved to nominate Herta Holly as the Chair. Mr. Bolton seconded the motion and the vote was unanimous in favor of the motion.

APPROVAL OF MINUTES – January 29, 2015

Mr. Bolton moved approval of the January 29, 2015 Board meeting Minutes. Officer Vickers seconded the motion and the vote was unanimous in favor of the motion.

APPROVAL OF PENSION ADMINISTRATOR

Ms. Hugdahl explained the change in position for Ms. Keeley and her inability to continue to act as Plan Administrator. Ms. Hugdahl indicated that there was an agenda item pending to issue an RFP to engage a professional Plan Administrator but suggested that she be made interim Plan Administrator until such time as one is engaged. Ms. Holly moved to appoint Ms. Hugdahl as Interim Plan Administrator. Mr. Bolton seconded the motion and the vote was unanimous in favor of the motion.

APPROVAL OF PAYMENT WARRANT: 2016-001

Ms. Hugdahl provided information regarding the number of invoices, indicating that due to the inability to conduct meetings for lack of a quorum, invoices had not been approved or processed for payment. Ms. Holly moved to approve payment warrant 2016-001. Mr. Bolton seconded the motion and the vote was unanimous in favor of the motion.

APPROVAL OF IMMEDIATE PAYMENT FOR PREDESIGNATED VENDORS UPON RECEIPT OF INVOICE

Ms. Hugdahl explained that she is seeking approval from the Board to process and pay invoices received from the normal service providers relating to administration of the Pension Plan. The providers are as follows: The Boston Group, Gabriel Roeder Smith, The Bogdahn Group, Salem Trust, Holland & Knight, Insight Investment (Cutwater Asset Management), Cypen & Cypen. Payment warrants, including invoices will continue to be presented to the Board at the next available Board meeting. Mr. Bolton moved to allow for prepayment of selective invoices. Ms. Holly seconded the motion and the vote was unanimous in favor of the motion.

APPROVAL OF DATE CERTAIN FOR PENSION BOARD MEETINGS

A discussion amongst Board Members and Mr. West regarding possible dates for upcoming Board meetings took place. After much discussion, the Board proposed the following dates for 2016 Board Meetings: January 26th, April 26th, July 26th and October 25th. The meetings will take place at 8:15 AM at the Community Center.   Mr. Bolton moved to conduct the meetings on the agreed upon dates pending calendar approval of the Pension Board attorney who was not present at the meeting. Ms. Holly seconded the motion and the vote was unanimous in favor of the motion.

DISCUSSION OF POSSIBLE ACTION REGARDING PROPOSED CODE OF ORDINANCES AMENDMENT

Ms. Tofigh from the law firm of Holland & Knight spoke to the Board regarding an IRS compliance matter which is the result of the routine IRS review which occurs on a five year cycle. Ms. Tofigh indicated that the IRS reviews all pension plans to determine whether they are “qualified” and meet IRS codes. To that end, the IRS has asked for clarification on the Village’s DROP plans with regard to the calculations used for net investment return on each individual DROP account. In response to questions posed by the Board, Ms. Tofigh stated that the proposed language is standard and Mr. West confirmed that the methodology used in determining the net investment return is industry standard. At the conclusion of the discussion, Ms. Holly moved to forward the proposed pension language amendment to the Village Council for consideration. Mr. Bolton seconded the motion and the vote was unanimous in favor of the motion.

DISCUSSION OF RFP FOR PENSION ADMINISTRATOR

As discussed earlier in the meeting, Village Staff can no longer devote the amount of time required to effectively administer the Plan, provide timely responses to employee questions or concerns and process the applicable retirement paperwork. The Village is seeking approval to solicit RFP’s for a professional pension plan administrator.   Following a brief discussion regarding the parameters of the RFP and the process itself, Mr. Bolton moved to have the Village complete an RFP and report back to the Board at the earliest possible time for consideration of a pension plan administrator. Ms. Holly seconded the motion and the vote was unanimous in favor of the motion.      

INVESTMENT CONSULTANT REPORT

Mr. Dave West from The Bogdahn Group provided information regarding the Plan’s performance, providing a very brief summary of the period ending June, 2015 and more in-depth information for the period ending September 30, 2015; the end of the fiscal year. Mr. West provided an overview of the various Plan investments and their rankings and reasons for low peer group performances. He indicated that with no real estate investment as part of the Plan’s asset allocation, the Plan did not see any significant increase on returns. In addition, Mr. West indicated that the Bogdahn Group is recommending terminating the Manning & Napier account due to their performance rankings. He further indicated that the Bogdahn Group is recommending moving those funds into the Vanguard Developed Markets Index Fund. Subsequent to additional discussion regarding the Vanguard fund, Mr. Bolton moved to make the change recommended by the Bogdahn Group. Ms. Holly seconded the motion and the vote was unanimous in favor of the motion. Specific investment performances referenced are attached hereto and made a part hereof.  

APPROVAL OF THE FY2016 POLICE OFFICERS’ PENSION BUDGET

Ms. Hugdahl outlined the information contained on the proposed budget and clarified that submitting a budget is a new requirement passed down from the Division of Retirement Services. Mr. Bolton moved to approve the budget as presented. Ms. Holly seconded the motion and the vote was unanimous in favor of the motion.

APPROVAL OF THE 2014 PENSION VALUATION

Ms. Hugdahl provided highlights from the 2014 Valuation Report and responded to questions posed. She stated that the Report represents a formality but as it is for the period ending September, 2014, it is not very relevant. Ms. Holly moved to accept the 2014 Valuation Report as submitted. Mr. Bolton seconded the motion and the vote was unanimous in favor of the motion.

APPROVAL OF THE 2014 ANNUAL STATE REPORT

Once again, Ms. Hugdahl explained that the report is a requirement of the Division of Retirement Services containing information relating to the Police Pension Plan and its funds. She indicated that the report needs to be approved prior to submission to the Division.   Mr. Bolton moved to approve the 2014 State Report. Officer Vickers seconded the motion and the vote was unanimous in favor of the motion.

PUBLIC COMMENT

None

The Police Retirement System Board meeting was adjourned at 10:37 AM.

                                                                                                                   _________________________

                                                                                                                   Herta Holly, Chair

_________________________

Barbara A. Estep, MMC

Village Clerk