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HomeMy WebLinkAbout07082003 PRB SEBASTIAN POLICE OFFICER PENSION PLAN BOARD OF TRUSTEES Regular Meeting No. 03 - 02 Tuesday, July 8, 2003 City Hall Council Chambers CALL TO ORDER: 10:05 a.m. ROLLCALL: Present - Mr. Wheeler, Mr. Sexton, Mr. Hovasse, and Mr. Perez Absent - Mr. Taracka Motion to adopt minutes from regular meeting 03 - 01, April 24, 2003 by Mr. Hovasse, seconded by Mr. Perez. Motion passed 4 - 0 NEW BUSINESS: 1. Mr. Dehner, Board Attorney had several issues: a. Instructed the Board to look into the fiduciary insurance to be paid for by the fund. Request a copy of the policy. Also discussed individual liability insurance that should be paid by the City. It is unknown whether a policy currently exists; however, it is not likely. Such a policy needs to be researched. b. Discussion regarding the operating rules and procedures ensued. Mr. Dehner asked why the Summary Plan Document and the Forms Packet had been adopted but not the operating rules. After some discussion by the Board regarding some of the language, a motion was made by Mr. Sexton to adopt the operating rules and procedures. Mr. Hovasse seconded the motion. Motion passed 4-0 c. Mr. Dehner informed the Board of some Federal Legislation and recommended the Board take steps to ensure compliance. Mr. Perez made a motion to direct Mr. Dehner to codify the Federal requirements into our chapter plan. Mr. Wheeler seconded. Motion passed 4-0. d. Some discussion came up regarding contracts of vendors/consultants used by the Board, i.e. Prudential, ICC, Salem Trust, and Mr. Dehner. No written contracts exist. Mr. Hovasse made a motion to direct Mr. Dehner to draft contracts between the vendors/consultants and submit to the Board for approval/signature. Motion seconded by Mr. Wheeler. Motion passed 4-0. e. Mr. Dehner informed the Board about new legislation requiring a Records Management Liaison Officer. After some discussion regarding duties and responsibilities, Mr. Hovasse made a motion to appoint Mr. Sexton to the Records Management Liaison Officer position. Seconded by Mr. Wheeler. Motion passed 4-0. f. Mr. Dehner advised the Board to sign the "written request for confidentiality" form, PF - 1 and file. g. Mr. Dehner offered a friendly reminder to contact former Chairperson, Gene Ewert, and remind him of his "final disclosure" obligation. ... 2. Discussion regarding the Plans "chapter" status or "local law" status ensued. The Board was informed about a way to calculate the cost of becoming a "local law" plan by using a "reduction in benefit technique." A motion was made by Mr. Perez to have Ward Foster (the Funds actuary) calculate the cost of becoming a local law plan by using the reduction in benefit technique. Motion seconded by Mr. Hovasse. Motion passed 3-1. Mr. Sexton was the nay vote. 3. The Board asked Mr. Dehner if it was legal to purchase a short/long-term disability plan to remove the risk of such payments from the fund. Mr. Dehner advised that it was legal; however, usually not cost effective. Mr. Wheeler made a motion to research the cost effectiveness of purchasing such a plan. Mr. Hovasse seconded the Motion. Motion passed 4-0. 4. Fund report offered by Mr. McMurray of ICC and Mr. Pete Goodrich of Prudential. Total fund balance was $2.696 million dollars. Since 1995, the Fund has outperformed the frequently used indices. The Fund didn't do so well over the past year, but is exceeding expectations for long-term. The fund is doing well. a. Discussion regarding the Investment Policies ensued. This subject has been discussed at several previous meetings, but has never been acted upon. Both Prudential and ICC felt it was time to amend the Funds investment policy. A short presentation followed, with recommendations to change the maximum percentage that may be committed to equity securities and the maximum percentage that can be invested in the S&P 500 and the Shearson Lehman Government Credit Bond Index. A motion was made by Mr. Perez to adopt the changes as recommended by Prudential and ICC. Mr. Hovasse seconded the motion. Motion passed 4-0. b. In addition to making the necessary changes to the investment policy, all parties signed the bottom so that it went into effect 31 days after filing to the City. Mr. Sexton was directed to get the signed changes stamped by the City Clerks office so that the official time would start to run. Additionally, an updated policy was to be sent to the Florida Division of Retirement and Foster and Foster (actuary). OLD BUSINESS: 1. Discussion regarding an update of file ensued. Mr. Dehner was authorized to correspond with Mr. Sexton was to make a copy of the current file and mail to Mr. Dehner. Being no other business, the meeting Adjourned at 12:55 p.m.