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Home My WebLink About2008-02-18 Police & Fire Pension Board Minutes REC D MAR 18 2008 BY: City of Dania Beach Police and Fire Fighters Retirement System 113 S.W. 1 Street Dania Beach, Florida 33004 Phone: (954) 921-0404 Fax: (954) 921-1403 E-mail: PFPENS@bellsouth.net Page 1 of 5 MINUTES FEBRUARY 18, 2008 REGULAR MEETING I. CALL TO ORDER The meeting was called to order by Secretary Beulah Lair at 7:35 PM MEMBERS PRESENT: MEMBERS ABSENT: Chairman Larry Rogers Commissioner John Bertino Chairman Vince Marlin John Williamson Secretary Beulah Lair Wardell Lee Ted Spongross Carolyn Jones Roger Handevidt ALSO PRESENT: Attorney Pedro Herrera - Sugarman & Susskind, PA Mike Welker — Bogdahn Consulting Tom Tight — MBIA Actuary Steve Palmquist— Gabriel, Roeder & Smith II. APPROVAL OF MINUTES MOTION: by Beulah Lair to accept minutes from the January 14, 2008 meeting as submitted. SECOND: Roger Handevidt PASSED UNANIMOUSLY February 18, 2008 III. CONSENT AGENDA Page 2 of 5 No items listed on the Consent Agenda IV. OLD BUSINESS 4.1 STATE FARM LIFE INSURANCE Chairman Rogers opened discussion with the Board and the Systems actuary Steve Palmquist regarding the life insurance paid for active and retired police and fire fighters. According to Steve Palmquist there is no reason to cover those already retired because liabilities are released upon the death of a retiree. The new monthly payment for active fire fighter life insurance is $1565.71 down from $3136.35 after eliminating police and fire fighter retirees. MOTION by Beulah Lair to remove the retired police and fire fighters from the Systems life insurance and pay $1565.71 per month. SECOND: Carolyn Jones PASSED UNANIMIOUSLY 4.2 CVS/CAREMARK TENNESSEAN COM ARTICLE A recent article located at Tennessean.com mentions various orders given by Davidson County Circuit Judge Hamilton Gayden in Tennessee. The Judge said that the attorneys who sued CVS/Caremark Corp last year were entitled to be paid $7.5 million in legal fees. The judge had one caveat: $500,000 of it had to be donated to charity. The Judge ordered lawyers to pay $400,000 to the Nashville Chamber of Commerce Public Benefit Foundation to distribute free tickets to hockey games and also that an additional $100,000 go to the Legal Aid Society of Middle Tennessee and the Cumberlands. CVS/Caremark agreed to pay the legal fees of the 23 law firms around the country that represented the stockholders. 4.3 RETIREE HEALTH INSURANCE Authorization to pay $12,779.41 to the City for balance due on retiree health insurance. This balance was calculated after receiving new rates from the City. MOTION by Beulah Lair to pay $12,779.41 to the City for the Balance due for retiree health insurance for October 1, 2007 to September 30, 2008 SECOND: Ted Spongr055 PASSED UNANIMIOUSLY February 18, 2008 Page 3 of 5 V. NEW BUSINESS 5.1 4th Quarter Performance Review — MBIA ASSET MANAGEMENT Tom Tight reviewed MBIA'S positive performance of 3.15 for that firm's portion of the Fund for the quarter ending December 31, 2007. MBIA's report is incorporated into these February 19, 2007 minutes by reference. MBIA Asset Management is a subsidiary of MBIA, Inc. Tom Tight stated that there were no sub-prime mortgages within any of the Systems investments. All of the assets in MBIA Asset Management are AAA rated and wrapped by FSA insurance. Tom Tight also stated the MBIA, Inc has not taken any money from MBIA Asset Management nor has MBIA, Inc or MBIA Asset Management lost clients or employees. 5.2 Boodahn Consulting - 4`h Quarter Performance Summary Mike Welker then reviewed the Fund's total performance summary for the quarter ending December 31, 2007. The return for quarter ending December 31, 2007 was .78 (net of fees) which was considered good by the Systems actuary, Steve Palmquist and also Mike Welker. Many other Funds' earnings were negative given the rockiness of the stock market. The Bogdahn Consulting report is incorporated into these minutes by reference, along with the reports of ICC Capital Management, American Stable Value Fund, Capital Management Associates and Voyageur Asset Management. 5.3 Seotember 30 2007 Actuarial Valuation Mr. Stephen Palmquist of Gabriel, Roeder, Smith & Company reviewed and distributed in writing the highlights of the actuarial valuation performed by his firm on the plan for fiscal year ending September 30, 2007. Mr. Palmquist then reviewed with the Board the Chapter 175 benefit reserve. There were no COLA's available this year. MOTION by Beulah Lair to approve the actuarial valuation presented by Steve Palmquist of Gabriel, Roeder, Smith for plan year ending September 30, 2007 SECOND: Roger Handevidt PASSED UNANIMIOUSLY VI. CORRESPONDENCE VII. NEW EMPLOYEE APPLICATIONS VIII. RETIREMENTS / TERMINATIONS February 18, 2008 Page 4 of 5 IX. OPEN DISCUSSION AND INFORMATION 9.1 Attorney Herrera brought the Board up to date on the class action suits that are pending and new legislature currently being considered in the state. Merrill Lynch did not accept our request for a Tolling Agreement therefore Attorney Sugarmans office is gathering information from this office for a possible lawsuit. 9.2 State of Florida Public Disclosure Act The State of Florida has passed the Florida Public Records Act Amendment regarding the collection of Social Security Numbers. Public agencies (including pension boards) are prohibited from collecting social security numbers unless the agency is authorized to do so by specific law or it is imperative for the performance of the agency's duties. A public agency is required to state in writing the purpose for its collection of social security numbers. Mr. Herrera stated that the board needed to adopt a policy that states the specific law or necessity of such collection which should be included on all forms requiring a social security number. A policy statement was prepared by legal counsel and approved b 9 PP Y the Board. Furthermore, a certification of compliance in writing to both the President of the Senate and the Speaker of the House is required. Form letters were prepared by legal counsel and presented to the Plan Administrator with instruction to file such notice with the proper authorities. MOTION by Beulah Lair to accept the Public Disclosure Act as approved by the State of Florida and to have the Administrator instruct our service providers to send letters to the Senate and House of Representatives as required by the Act. SECOND: Carolyn Jones PASSED UNANIMIOUSLY 9.3 IRS Determination Letter The IRS has a one year window to review/audit the System and for the System to re-apply for an IRS Determination Letter. The IRS fee is $1000.00. Attorney Sugarmans fee is $8500.00 to complete the application and to handle all correspondence involved with the application. MOTION by Roger Handevidt for Attorney Sugarmans office to apply for the IRS Determination Letter and handle all correspondence pertaining to the application for $9500.00 SECOND: Beulah Lair PASSED UNANIMIOUSLY February 18, 2008 Page 5 of 5 9.4 State Trustee School May 12-14 2008 The Division of Retirement will be holding their State Trustee School May 12-14, 2008 in Tallahassee. MOTION by Beulah Lair to approve expenses for Trustees to attend the State sponsored Trustee School in Tallahassee May 12-14, 2008 as set forth in the Trustee Travel Guidelines SECOND: Ted Spongross PASSED UNANIMIOUSLY X. ADJOURN MOTION by Roger Handevidt to adjourn meeting SECOND: by Beulah Lair Meeting adjourned at 9:40 PM