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HomeMy WebLinkAbout12172013 PRB MinutesI DRAFT Sebastian Police Pension Board Minutes December 17, 2013, 10:00 a.m. Sebastian City Council Chambers TYPE OF MEETING: Regularly Scheduled ATTENDEES: Board Members: Greg Witt, Chair Robert Zomok, Secretary Debra Krueger Steve Marcinik Bruce Hoffman Richard Snell EXCUSED: CONSULTANTS: Scott Owens, Morgan Stanley, Douglas Lozen, Foster & Foster Grant McMurry, ICC Capital Mgmt. (Portfolio Manager) H. Lee Dehner, Attorney SUBJECT CALL TO ORDER 10:00 a.m. There being a quorum present, Debra Krueger, called the meeting to order. Debra welcomed Bruce Hoffman and Richard Snell to the Sebastian Police Pension Board. SUBJECT ELECTION OF NEW CHAIR Debra Krueger nominated Steve Marcinik to be the Chairman. The motion was seconded by Bob Zomok. Steve Marcinik was unanimously elected as the Chairman. 2 SUBJECT APPROVAL OF MINUTES 10:05 a.m. Debra Krueger motioned the minutes of the September 17, 2013 Board Meeting be approved. Motioned seconded by Bob Zomok and passed unanimously without change. SUBJECT OLD BUSINESS Proposed Ordinance Lee Dehner distributed copies of the proposed Ordinance. The Board will review and comment on the Ordinance at a Special Meeting to be held at 10:00 AM on Tuesday, January 14, 2014 in the Sebastian City Council Chambers. The proposed Ordinance does not include the "no cost" items discussed at length by the Board. The reason these items are tabled is the Collective Bargaining Agreement (CBA) will be re -opened in 2014 to negotiate wage changes only. Updated Plan Summary The Summary Plan Description (SPD) will be prepared subsequent to the passing of the new Ordinance. Asset Allocation Strategy Scott Owens presented the data relative to the Asset Allocation. After discussion, Debra Krueger made a motion to rebalance the portfolio to reflect existing Policy to include International Investments. Bruce Hoffman seconded the motion. The motion passed unanimously. Grant McMurry will adjust the portfolio accordingly. Investment Policy Statement Review The proposed changes to the Investment Policy prepared by Scott Owens are tabled until the new Ordinance is passed. SUBJECT NEW BUSINESS Appoint Elected 5th Board Member Bob Zomok made a motion to certify the election of the two (2) new 3 Board members. Debra Krueger seconded and the motion passed unanimously. Bruce Hoffman motioned to appoint Debra Krueger to the Board. Steve Marcinik seconded the motion. The motion passes unanimously pending approval by Sebastian City Council. October 1, 2013 Actuarial Valuation Review Doug Lozen reviewed the Actuarial Valuation of the Plan as of October 1, 2013. The Valuation was prepared using the Plan Assumption changes passed by the Board at the last meeting moving the Investment performance assumption to 7.75%. As a result of the assumption change, the estimated City contribution for the 2014 Fiscal Year is 19.1% of budgeted payroll. The estimated City contribution for the 2015 Fiscal Year is 14.2% of budgeted payroll. Debra Krueger moved to accept the Plan Valuation as present, Bob Zomok seconded the motion. The motion passed unanimously. Per State requirements, the Board determined that the annual expected return on investment for the current year as well as for the short term and long term future years will be 7.75%. Bob Zomok made the motion to accept the annual expected rate of return as presented. Debra Krueger seconded and the motion passed unanimously. Debra is to report the action to the State as required. Review of Investment Portfolio Grant McMurry reviewed the investment portfolio. This report shows the Fund achieving a value in excess of $10,000,000.00 for the first time in the history of the Fund. Grant reported that he saw only "normal" actions within the market at this time. For the short term, investments containing slightly high risk seem to be outperforming the more conservative investments. Report of Sale of one (1) Downgraded Bond Grant McMurry reported that we are continuing to hold AFLAC pending price improvement. Legal/Legislative Update Lee Dehner reported the continued monitoring of SB 246 (the Ring Bill). The Bill allows the State to obtain funds to maintain an 80% funding level by using insurance premium tax funds collected at the local level. Gd SUBJECT ACTION ITEMS ITEM RESPONSIBLE PERSON Submit the annual expected Rate of return report to the State Debra Krueger SUBJECT ADJOURNMENT 11:50 AM. Having no further business for discussion, Chairman Steve Marcinik adjourned the meeting. A Special Meeting will be held on January 14, 2014 at 10:00 AM to review the proposed Ordinance Next regularly scheduled meeting is March 18, 2014, at 10:00 a.m. in the Sebastian City Council Chambers.