HomeMy WebLinkAbout2008-09-15 Police & Fire Pension Board Minutes 7NFCEIVE- D
OV I12008
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@belisouth.net
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MINUTES
SEPTEMBER 15, 2008
REGULAR MEETING
I. CALL TO ORDER
The meeting was called to order by Secretary Beulah Lair at 6:45 pm
MEMBERS PRESENT: MEMBERS ABSENT:
Chairman Larry Rogers arrived at 7:30 pm
Secretary Beulah Lair
John Williamson
Wardell Lee
Vice Chairman Ted Spongross
Roger Handevidt
Commissioner John Bertino
Carolyn Jones
Vince Marlin by phone at 7:30 pm
ALSO PRESENT:
Attorney Robert Sugarman - Sugarman &Susskind, PA
Attorney Pedro Herrera — Sugarman &Susskind, PA
Mike Welker—The Bogdahn Group
Jack Farland —Voyageur Asset Management, Inc
Bruce Caruso— Fire Department
II. APPROVAL OF MINUTES
MOTION by Beulah Lair to accept the minutes from the July 28, 2008 meeting
as submitted.
SECOND by Carolyn Jones
PASSED UNANIMOUSLY
September 15, 2008
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III. CONSENT AGENDA
No items listed on the Consent Agenda
IV. OLD BUSINESS
4.1 Voyaaeur Asset Manaaement Inc.-International Eauity
Jack Farland opened discussion with the Board regarding
Voyageur Asset Management's International Equity Portfolio
and explained the firm's strategy and past performance.
Analysts visit companies abroad and talk to government
officials. They base their purchases on cash flow. If there
isn't cash flow they will not buy the company. The international
portion of the fund that is currently being managed by ICC Capital
would be split between Voyageur Asset Management/Polaris Capital
and Barings Asset Management in order to perform in up and down
markets. This item was tabled until the Board's next meeting on
October 20, 2008 and Barings Asset Management is interviewed.
Barings Asset Management could not attend this meeting.
4.2 Barings Asset Management
Barings Asset Management could not attend this meeting
and the Board has asked that they attend the next Board
of Trustees meeting on October 20, 2008.
MOTION by Beulah Lair for every new investment manager
to attend the Board of Trustees meeting in the system's office
for an interview in order to be hired.
SECOND by Commissioner John Bertino
September 15, 2008
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4.3 Pop-uo Provision
Attorney Sugarman explained what a"pop-up"provision is
for the system's retirees and DROP participants. The attached
correspondence explains that in their opinion that this retirement plan
does not contain a"pop-up" provision.
Attorney Sugarman discussed options for obtaining the provision.
Under Option 3, any Actuarially Equivalent Benefit, a cost neutral
actuarially equivalent pop-up option would be calculated by the
systems actuary, Steve Palmquist and placed among the
retirement options for new retirees. DROP participants would
be able to change their option to an actuarially equivalent cost neutral
pop-up benefit but they would pay for their retirement re-calculation
made by Steve Palmquist, Retirees no longer employed by the City
cannot switch options. The other choice is to amend the pension
plan to add a pop-up option to the others available.
MOTION by Trustee Commissioner John Bertino to offer the pop-up
option to all future retirees and DROP participants as long as it is
actuarially equivalent and cost neutral (no added cost to the System or
the City), for the Administrator to contact the system's actuary Steve
Palmquist of Gabriel, Roeder, Smith instructing GRS to place such a cost
neutral pop-up option on retirement options in the future, and estimate
the cost of having an Actuarial Equivalent pop-up benefit calculated for
current DROP participants who could have their retirement options re-
calculated but would have to pay the cost of the re-calculation done by
Steve Palmquist. Current retirees would not be able to change their
option.
SECOND by Carolyn Jones
PASSED UNANIMIOUSLY WITH NO DISSENTING VOTES
V. NEW BUSINESS- none
VI. CORRESPONDENCE-none
VII. NEW EMPLOYEE APPLICATIONS-none
VIII. RETIREMENTS / TERMINATIONS-none
September 15, 2008
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IX. OPEN DISCUSSION AND INFORMATION
9.1 Chaober 185 and Chapter 175 Reserve Revenue
Cathy David reported Chapter 185 Reserve Revenue and Chapter 175
Revenue $148,242.12 of Chapter 185 Revenue and $212,553.95
of Chapter 175 Revenue has been received and deposited
into the retirement system. The total Chapter 185 revenue
available for disbursement on December 1, 2008 is $80,352.12
divided by 25retirees and beneficiaries and $3,214.08 is the
amount each police retiree or beneficiary will receive.
9.2 Attorney's Repo
Attorney Sugarman is researching with other attorneys about the
possibility of arbitration or an actual lawsuit against Merrill Lynch, the
system's former consultant. Attorney Sugarman also informed the Board
that the Division of Retirement/State school was cancelled due to the
possibility of Hurricane Ike and was re-scheduled for
December 1, 2 and 3, 2008. Attorney Ken Harrison and Attorney
Sugarman will both speak at that meeting.
X. ADJOURN
MOTION by Beulah Lair to adjourn meeting
SECOND by Carolyn Jones
Meeting adjourned at 8:35 PM