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Home My WebLink About2014-02-24 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 Page 1 of 4 MINUTES FEBRUARY 24, 2014 REGULAR MEETING I. CALL TO ORDER The meeting was called to order at 7:10 PM MOTION by Walter Duke to call the meeting to order. SECOND: Rae Sandler PASSED UNANIMOUSLY MEMBERS PRESENT: MEMBERS ABSENT: Chairman Larry Rogers Secretary Vince Marlin Mayor Walter Duke Vice Chairman Todd Neal Carolyn Jones Roger Handevidt Todd Lleras Vince Marlin Rae Sandler ALSO PRESENT: Robert Sugarman- Sugarman & Susskind, PA Cathy David - Administrator Jeff Amrose - Gabriel, Roeder, Smith & Co Steve Roth - Dahab Associates February 24, 2014 Page 2 of 4 II. APPROVAL OF MINUTES MOTION: by Rae Sandler to accept minutes from January 27, 2014 meeting as submitted. SECOND: Walter Duke PASSED UNANIMOUSLY III. PUBLIC COMMENT The floor was open and no public comment IV. CONSENT AGENDA No items listed on the Consent Agenda V. OLD BUSINESS 5.1 Custodian Search Steve Roth from Dahab Associates distributed a Custodial Bank Search Report to the trustees. This item had been tabled at the December 16, 2013 trustee meeting. Annual fee estimates as of December 31, 2013 were as follows: Comerica $20,650.00; Fiduciary Trust $17,162.00; Salem Trust $16,135.00; Wilmington $17,068.00. The previous problem with Salem Trust has been corrected. Mr. Roth recommends remaining with Salem Trust. MOTION by Mayor Walter Duke to continue the plan’s custodial service with Salem Trust Company as recommended by the plan’s consultant Dahab Associates. SECOND by Carolyn Jones PASSED UNANIMIOUSLY VI. NEW BUSINESS 6.1 Dahab Associates December 31, 2013 Quarterly Earnings Steve Roth from Dahab Associates reviewed with the trustees the plan’s December 31, 2013 earnings. The net of fees return was +6.0. MOTION by Mayor Walter Duke to accept the December 31, 2013 Performance Report SECOND by Carolyn Jones PASSED UNANIMIOUSLY February 24, 2014 Page 3 of 4 6.2 Gabriel, Roeder, Smith & Co- October 1, 2013 Actuarial Report Jeff Amrose of Gabriel, Roeder, Smith & Company reviewed the highlights and distributed in writing the highlights of the actuarial valuation performed by his firm on the Plan for the fiscal year October 1, 2013. This System was fully closed to new members in January 2011. One consequence of this closure is that the annual payment on the unfunded accrued liability will continue to increase as a percentage of covered payroll as such payroll decreases from year to year. Therefore, the overall cost as a percentage of covered payroll will be increasing each year. There was a net actuarial loss of $1,706,481 for the year which means that actual experience was less favorable than expected. The loss is primarily due to smoothed recognized investment return below the assumed rate of 7.75%. The year’s investment return was 11.3% based on market value of assets but 4.4% based on the smoothed actuarial value of assets. The net loss has increased the required employer contribution by about $261,000. Since the plan has a net cumulative loss there is no COLA available at April 1, 2014. The amount available for the Chapter 175 health insurance subsidy for firefighters is $122,860 for the fiscal year October 1, 2013 to September 30, 2014. The funded ratio this year is 57.5% compared to 58.2% last year. MOTION by Mayor Walter Duke to approve the final draft of the October 1, 2013 Actuarial Report as prepared by and recommended by Gabriel, Roeder, Smith & Company barring any objections from the City SECOND by Todd Lleras PASSED UNANIMIOUSLY 6.3 “Spouse” Definition of the Plan Attorney Bob Sugarman discussed with the trustees” the plan’s definition of “spouse” as a result of the Windsor Case which was a Supreme Court case that dealt with Equal protection of the law (the so-called gay marriage case). The IRS then issued a regulation that changes the way we must define spouse. Our plan says that a spouse is defined as the lawful wife or husband of a member at the time of pre-retirement death or retirement. We formerly looked at the law of Florida to see whether or not a same sex marriage would be recognized, which it would not. February 24, 2014 Page 4 of 4 Under Florida’s Defense of Marriage Act we would have been advised not to recognize that same sex marriage. However, the IRS has stated that in order to remain qualified we have to look at the state or country where the marriage was performed not where the people live. Should any members of the plan go out of the state or out of the country to get married they would have to present the plan with a marriage certificate saying they were married in a different country or state. So from now on this plan really won’t pay attention whether someone marries someone of the opposite sex or same sex because if the person gets a marriage certificate from a state that recognizes same sex marriage, that marriage will now be recognized by us. This only applies to this plan in limited circumstances when one of the members of this plan dies and all other beneficiaries have died first. The money/benefit has to be distributed to someone. This plan used to say we could look to their “spouse”. If someone had named someone other than their spouse but when they died that designated beneficiary was dead, this plan would pay the benefit to their spouse. MOTION by Carolyn Jones to interpret “spouse” in Section 18.40 (13) of our plan to mean someone who is a “spouse according to the laws of the state or country where the marriage took place”. SECOND: Mayor Walter Duke VII. CORRESPONDENCE VIII. RETIREMENTS / TERMINATIONS IX. OPEN DISCUSSION AND INFORMATION 9.1 Attorney Attorney Sugarman notified the board that the IRS Determination Letter has been filed and we should hear something in about a year. X. ADJOURN MOTION by Rae Sandler to adjourn meeting SECOND: by Mayor Walter Duke Meeting adjourned at 8:10 PM