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HomeMy WebLinkAbout03-15-2016 MinutesDraft 03/15/2016 Minutes Sebastian Police Pension Board Minutes March 15,2016 10:00 a.m. Sebastian City Council Chambers TYPE OF MEETING: Regular ATTENDEES: Board Members: Robert Zomok, Secretary Bruce Hoffman Ken Killgore Richard Snell EXCUSED Steve Marcinik, Chair CONSULTANTS: Doug Lozen, Scott Owens, Grant McMurry, Jed, Miller, Mindy Johnson, Lee Delmer, Cindy Watson SUBJECT CALL TO ORDER 10:00 a.m. In the excused absence of Steve Marcinik, Chairman, Richard Snell called the meeting to order. Richard had to leave to attend a trial. Bruce Hoffman moved to have Bob Zomok, Secretary, chair this meeting. The motion seconded by Ken Killgore and was unanimously. Public Comment Steve Marcinik, Chairman None APPROVAL OF MINUTES 10:05 a.m. Lee Dehner noted a correction to the minutes. Ken Killgore motioned the revised minutes of the January 12, 2016 Board Meeting be approved. Motioned seconded by Bruce Hoffman and passed unanimously. Old Business A. Election of New Officers Bob Zomok, Acting Chair Tabled until the next meeting when the full Board will be available B. Board Review of Fiduciary Insurance Policy Bob Zomok, Acting chair Tabled until the next meeting when the full Board will be available. Draft 03/15/2016 Minutes C. Review of Proposed Changes to Operating Rules Bob Zomok, Acting Chair Lee Dehner is to provide a revised copy of the Operating Rules for consideration at the next Board Meeting. New Business D. Introduction of New Relationship Manager Bob Zomok, Acting Chair Mindy Rae Johnson, Salem Trust Company was introduced. She presented a new service for Board consideration. Salem Trust has a working agreement with GlobeTax. This firm recovers applicable portions of taxes paid in foreign countries for stock trades conducted on behalf of the Board in those countries. GlobeTax reviews investments and determines the amount due to out Plan. The amount recovered is reimbursed to the Plan minus fess and percentage reductions. Lee Delmer assured the Board that he had reviewed the documents relative to this program and was satisfied with them as presented. Bruce Hoffman moved to participate in the GlobeTax program and Ken Killgore Seconded the motion. The motion passed unanimously. E. Approval of Payment to Christiansen & Delmer Bob Zomok, Acting Chair $2,639.20 for Travel and Attendance at January 12, 2016 Meeting Bob Zomok moved to approve the payment. The motion was seconded by Bruce Hoffman and passed unanimously. F. Approval of the October 1, 2015 Actuarial Report Doug Lozen updated the Board on the impact of the required pension processing requirements enacted by the State of Florida. Ken Killgore moved to accept the Actuarial Report as presented. Bruce Hoffman seconded the motion and it passed unanimously. G. Approval of Expected Annual Rate of Return at 7.60% Scott Owens advised the Board that the 7.60% Expected Annual Rate of Return was a reasonable assumption. Bruce Hoffman moved to approve the 7.60%. The motion was seconded by Ken Killgore and passed unanimously. Ken Killgore can file the required report with the State. H. Review of Investment Portfolio & Asset Allocation Strategy Scott Owens reviewed the various influences causing the volatility in the stock market. The two primary influences are activities in and by China and the ever -fluctuating oil industry. Draft 03/15/2016 Minutes I. Fund Review and other Matters. Grant McMurry and Jed Miller a. Report on Downgraded Fixed Income Bonds The Board had approved using "Investment Grade" bonds as part of our portfolio b. Discussion of Current Bond Environment Jed Miller reviewed the current status of the bond market. J. Legal Updates: Lee Delmer, Pension Attorney 1. Status of Ordinance Amendment for Share Plan The current City Ordinance must be revised to include the State mandated Share Plan. There are two alternatives that Lee discussed, one of which will be determined by the upcoming Collective Bargaining process. 2. Status of Actions on Forfeiture of Pension Lee Dehner received material from Richard Snell relative to this case. Depending upon a multitude of factors, the Board may have to convene a formal review process. Lee will continue to update the Board on this case. 3. Other Legal Matters The State laws passed between one and two years ago are now having impact on the Plan by requiring additional reporting resulting in additional costs to the Plan. The required reporting has been met including additional information from our actuary. Lee reminded the Board that Financial Disclosure Statements are due on or before July 1, 2016. The State Conference is planned for May 2016 in Tallahassee. K. Board Member Comments Bob Zomok, Acting Chair Ken Killgore reviewed the questions he had concerning the State Report that is now due. The questions were resolved and Ken will proceed with filing the report. L. Next Quarterly Meeting: June 14, 2016 Bob Zomok, Acting Chair M. There being no further business, the meeting was adjourned at 12:10 PM. Respectfully Submitted, Bob Zomok, Secretary