HomeMy WebLinkAbout2011-08-31 General Employees Pension Board Minutes
MINUTES
GENERAL EMPLOYEES RETIREMENT SYSTEM
BOARD OF TRUSTEES
REGULAR MEETING
AUGUST 31, 2011
3:30 PM
ROLL CALL:
Myrtle Corbin Present
Walter Duke excused
Patricia Rafacz excused
Leo Williams Present
Joseph Husosky Present
Attorney Harrison Present
Marie Jabalee, Administrative
Manager Present
Motion by Williams, second by Corbin to excuse Trustees Duke and Rafacz. The
motion passed unanimously
1. CONSENT AGENDA
1.1 Approval of minutes of May 4, 2011.
1.2 Ratification of payment of the May Cardmember Services statement for the
April phone bill office supplies and postage.
1.3 Ratification of payment of the June Cardmember Services statement for the
May phone bill.
1.4 Ratification of payment of the July Cardmember Services statement for the
June phone bill, postage & supplies.
1.5 Ratification of payment to Gabriel Roeder Smith & Co. for invoice #115133.
1.6 Approval to pay Citi Smith Barney for consulting services from 4/1/2011 to
6/30/11.
1.7 Approval to pay Gabriel Roeder Smith & Co. for invoice #115373.
1.8 Approval to pay Gabriel Roeder Smith & Co. for invoice #115726
Motion by Williams, second by Corbin to approve the Consent Agenda. The motion
passed unanimously
2. OLD BUSINESS.
2.1 Presentation by Stephen Palmquist of Gabriel, Roeder & Smith of report
prepared to determine the cost effect of making changes to the mortality tables and
assumption rates to be used in preparation of the 10/1/10 annual valuation report.
Mr. Palmquist presented a supplemental valuation report illustrating the impact of
changes using certain actuarial assumptions. The Board agreed on Scenario #7,
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lowering the investment rate of return assumption from 7.75% to 7.5%, lowering the
salary increase assumption from 6.5% to 4% and updating the mortality tables.
Motion by Williams, second by Corbin to approve Scenario #7 as presented in the GRS
report. The motion passed unanimously
2.2 Discussion and possible adoption of the investment strategies products
presented by Mr. Myton at the last meeting. Recommendation by Mr. Mulfinger.
Mr. Myton and Mr. Mulfinger discussed the services to be provided by SunTrust’s
proposed investment strategies. Under this proposal individual investment managers
would not be accountable to our Plan.
The proposal by Morgan Stanley Smith Barney would provide separately managed
accounts. Managers unaffiliated with MSSB would invest according to Plan policy.
There would be no trading costs involved.
Motion by Corbin, second by Williams to direct the Chairman to send a letter to
SunTrust terminating their services and to accept Morgan Stanley Smith Barney
Fiduciary Services Program. The motion passed unanimously
2.3 Discussion and possible approval of a new SunTrust Investment Contract.
This item was covered by the discussion and motion above.
3. NEW BUSINESS
3.1 SunTrust Bank report June 30, 2011– Blake Myton.
Mr. Myton talked about the market and economic conditions. He gave a summary of
the Plan’s performance for the quarter.
3.2 Graystone Consulting report – June 30, 2011– Charles Mulfinger Mr. Mulfinger
concurred with the summary of market conditions. He presented a review of the
Plan’s performance relative to the indexes and compliance with the Plan’s
investment guidelines. The rate of return net of fees for the quarter is 0.49%.
4. CORRESPONDENCE
4.1 NONE.
5. RETIREMENT & WITHDRAWAL APPLICATIONS
5.1 Approval of DROP application submitted by Dominic Orlando effective July 1,
2011.
Motion by Williams, second by Corbin to approve Item 5.1. The motion passed
unanimously
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5.2 Approval of retirement benefits and withdrawal of DROP funds for Kerry Roman
effective 9/1/2011.
Motion by Williams, second by Corbin to approve Item 5.2. The motion passed
unanimously
5.3 Approval of retirement benefits and withdrawal of DROP funds for Mardie
Holloway effective 10/1/2011. Mr. Holloway’s last day of employment is 9/30/11.
Motion by Williams, second by Corbin to approve Item 5.3. The motion passed
unanimously
5.4 Approval of retirement benefits and withdrawal of DROP funds for James Baker
effective 10/1/2011. Mr. Baker’s last day of employment is 9/12/11.
Motion by Williams, second by Corbin to approve Item 5.4. The motion passed
unanimously
6 .OPEN DISCUSSION
6.1 Attorney’s comments:
Mr. Harrison gave an update on changes to Chapter 112.
7. ADJOURN
Motion by Corbin, second by Williams to adjourn. The motion passed unanimously
_______________________
Secretary