HomeMy WebLinkAbout2010-11-03 General Employees Pension Board Minutes
MINUTES
GENERAL EMPLOYEES RETIREMENT SYSTEM
BOARD OF TRUSTEES
REGULAR MEETING
NOVEMBER 3, 2010
3:30 PM
ROLL CALL:
Myrtle Corbin Present
Walter Duke Present
Patricia Rafacz Present
Leo Williams Present
Joseph Husosky Present
Attorney Harrison Present
Marie Jabalee, Administrative
Manager Present
:
1. CONSENT AGENDA
1.1 Approval of minutes of August 4, 2010.
1.2 Approval of minutes of August 9, 2010.
1.3 Ratification of payment of the August Cardmember Services statement
for the July phone bill, office supplies and postage.
1.4 Ratification of payment of the September Cardmember Services
statement for the August phone bill.
1.5 Ratification of payment of the October Cardmember Services statement
for the September phone bill.
1.6 Approval to pay Gabriel, Roeder Smith & Co. for invoice #113080,
actuarial services through 9/30/2010.
1.7 Approval to pay Citi Smith Barney for consulting services from 7/1/2010
to 9/30/2010.
Motion by Rafacz, second by Corbin to approve the Consent Agenda. The
motion passed unanimously.
2. OLD BUSINESS.
2.1 IRS Determination Request
Mr. Harrison explained the need to apply to the IRS for a favorable
Determination Letter during Cycle E which ends January 31, 2011. A favorable
Determination Letter means that the provisions of the Plan satisfy the
requirements of Section 401(a) of the IRS Code. When the Plan is deemed
“qualified”, employees are not taxed on the value of contributions made into the
2
Plan on their behalf until they began receiving benefits and the income of the
Plan is not taxed.
Motion by Rafacz, second by Corbin to accept the proposal from Sugarman &
Susskind to take the necessary steps to prepare the application for a
Determination Letter and authorize payment of the fee as stated in their letter
dated August 30, 2010. The motion passed unanimously.
2.2 Proposed ordinance amending the code of ordinances to provide for
compliance with the IRS code.
Mr. Harrison explained that due to changes in federal and state laws and
regulations various amendments must be made to the Plan in order to keep the
“qualified“status.
Motion by Corbin, second by Rafacz to submit the proposed ordinance to the
City Commission for approval. The motion passed unanimously.
3. NEW BUSINESS
3.1 SunTrust Bank report September 30, 2010– Blake Myton.
Mr. Myton reported that it was a strong quarter. Earnings were good and the
plan exceeded the actuarial assumption for the fiscal year. Corporate profits
were up while the housing market and bank lending remained sluggish. Mr.
Harrison asked about holdings in investments on the State’s list of scrutinized
companies. Mr. Myton responded that the Plan’s holdings are in mutual funds
and not individual securities. He was directed to report on the issue each
quarter.
3.2 Graystone Consulting report – September 30, 2010– Charles Mulfinger
Mr. Mulfinger agreed that it was a strong quarter. He stated that International
Markets were performing better than domestic and liked the idea of moving
forward in that direction. The net return for the quarter was 8.49%.
3.3 Annual rate of investment return for the next year, the next several years
and the long term thereafter. To be determined after input by the Board’s
investment professionals and actuarial experience.
After discussion with the Investment Manager and Consultant, it was agreed
that the assumed investment return is 7.75%.
Motion by Duke, second by Corbin to approve the assumed investment return
of 7.75%. The motion passed unanimously.
4. CORRESPONDENCE
3
4.1 Approval of fee proposed by Gabriel, Roeder & Smith 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.
Motion by Rafacz, second by Williams to approve item 4.1. The motion passed
unanimously
4.1 Changes relating to SunTrust liquidity accounts.
Mr. Myton explained that SunTrust has entered into an agreement with
Federated Investors, Inc. to liquidate and manage money market funds. SunTrust
will liquidate the Plan’s money market funds and reinvest them in the Federated
Fund that most closely matches the risk and characteristics of the Ridgeworth
Fund.
5. RETIREMENT & WITHDRAWAL APPLICATIONS
5.1 Ratification of withdrawal of contributions – Byron Middleton
Motion by Corbin, second by Rafacz to approve item 5.1. The motion passed
unanimously.
5.2 Approval of early retirement for terminated/vested member Timothy
Sklark effective 10/1/10.
Motion by Rafacz, second by Corbin to approve item 5.2. The motion passed
unanimously
5.3 Approval of DROP application for Gary Phaneuf effective December 1,
2010.
Motion by Rafacz, second by Williams to approve item 5.3. The motion passed
unanimously
6 .OPEN DISCUSSION
6.1 Attorney’s comments:
Legislative action re Laws of Florida.
Change in joint annuitant option
Motion by Rafacz, second by Williams to direct Attorney Harrison to draft a
proposed ordinance allowing retirees to change the designated joint annuitant
after retiring providing there is no cost to the Plan.
6.2 2011 Meeting dates.
Motion by Williams, second by Rafacz to approve the meeting dates for 2011.
4
6.3 The Administrative Manager was directed to prepare a procedures
manual on the operation of the pension office.
7. ADJOURN
__________________
Secretary