HomeMy WebLinkAbout2012-09-17 Police & Fire Pension Board Minutes City of Dania Beach
Police and Fire Fighters Retirement System 113 S.W. 1 Street
Dania Beach, Florida 33004
Phone: (954) 393-9061
E-mail: pfpens@gmail.com
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MINUTES
SEPTEMBER 17, 2012
REGULAR MEETING
I. CALL TO ORDER The meeting was called to order by Mayor Pat Flury at 7:02 PM
MEMBERS PRESENT: MEMBERS ABSENT:
Chairman Larry Rogers Todd Neal
Secretary Vince Marlin
Vice Chairman Ted Spongross
Roger Handevidt
Mayor Pat Flury
Rae Sandler
Carolyn Jones Wardell Lee
ALSO PRESENT:
Pedro Herrera - Sugarman & Susskind, PA
Steve Palmquist – Gabriel, Roeder, Smith & Co
Cathy David - Administrator
II. APPROVAL OF MINUTES
MOTION: by Vince Marlin to accept minutes from the August 15, 2012 regular
meeting as submitted.
SECOND:
PASSED UNANIMOUSLY
September 17, 2012
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III. CONSENT AGENDA No items listed on the Consent Agenda
IV. OLD BUSINESS
4.1 Gabriel, Roeder, Smith & Company Supplemental Actuarial Study
Steve Palmquist from Gabriel, Roeder, Smith & Company discussed with
the board suggested changes in assumptions. Steve recommended using
the Aggregate funding method in financing the benefits of a closed Plan
such as this one. The goal of the Aggregate method is to fully fund
projected benefits by the time the last member of the group retires. In
projection scenario 1, they show a projection of Employer contributions
using the same assumptions and methods as used in the October 1, 2011 Actuarial Valuation Report. In projection scenario 2, they show a
projection using the Aggregate cost method. Additionally, the assumed
rate of investment return is lowered from 8.0% to 7.0%, and the projected mortality rates are updated from the 1983 Group annuity
Mortality Table to the RP 2000 Combined Healthy Participant Mortality
Table with the provision for future mortality improvements using Scale BB
after the year 2000. Projection scenario 3 is the same as projection scenario 2, but the assumed rate of investment return is lowered to
6.5%. In any actuarial model, it is important that the assumptions used
best reflect future expectations. These assumptions include future
investment returns and the future expected lifetimes of Plan members.
For this reason, GRS studied lowering the assumed rate of investment
return to reflect lowered expected market performance and anticipated
lower equity allocation due to the closed nature of the Plan, as well as lowering mortality rates to reflect increased expected longevity.
Most plans stretch out these changes over a 5 year period.
This item was tabled so the trustees and the City could review the
information.
September 17, 2012
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V. NEW BUSINESS
5.1 September 30, 2012 Audit
The September 30, 2012 audit will begin soon and Steven Gordon, CPA has been the plans auditor for 4 years and would like to continue this
year. Due to ongoing issues with the BSO merger it would be best for the
plan to remain with Steve Gordon.
MOTION by Vince Marlin for the plan to engage Steven Gordon, CPA for
the September 30, 2012 audit once the plans attorney approves their
engagement letter
SECOND: Roger Handevidt
PASSED UNANIMIOUSLY
5.2 Chapter 175 Revenue Received and Health Insurance The plan received $241,481.90 from the State for Chapter 185 Revenue.
The health insurance rates have increased. The plan will receive a small
supplemental amount soon and then the Plan’s actuary will calculate the
amount available for the retired fire/beneficiary health insurance benefit.
This item was tabled until further direction from actuary.
VI. CORRESPONDENCE VII. RETIREMENTS / TERMINATIONS VIII. OPEN DISCUSSION AND INFORMATION
9.1 Attorneys Report
Attorney Herrera reviewed current changes with the Division of
Retirement’s revised interpretation of eligibility for receipt of Chapter 175
and Chapter 185 premium tax funds.
9.2 FIRE Contributions
The plan received $571,841.08 from the City of Dania Beach for fire
contributions for fiscal year ending September 30, 2012. However,
The interest calculated by Gabriel, Roeder, Smith & Company in the amount of $32,583.34 was not paid.
MOTION by Ted Spongross to have the plan’s attorney send a letter
to BSO for collection of the interest.
SECOND: Carolyn Jones
September 17, 2012
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9.3 Chapter 185 Benefit December 1, 2012 Distribution
The plan received $190,921.63 for 2011 Chapter 185 revenue and
after the baseline amount of $67,890.00 from the $190,921.63 there is a
balance of $123,031.63 remaining and divided by 22 police
retirees/beneficiaries would give each one $5,592.34
IX. ADJOURN
MOTION by Roger Handevidt to adjourn meeting
SECOND: Rae Sandler
Meeting adjourned at 7:40 PM