08-10-06 vCITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
POLICE EMPLOYEES PENSION BOARD MEETING
August 10, 2006
1. The City of Atlantic Beach Police Employee Pension Board meeting was called to order at
6:05 P.M, Those members in attendance were Trustees, Harry McNally, Tony Downing, Dale
Hatfield, Richard Downes and Henry Bartle. Also in attendance was Nelson Van Liere, Plan
Administrator and Mike Calloway of Merrill Lynch.
2. Approval of the minutes from the May 11~, 2006, Police Employees Pension Board Meeting:
Motion made by Henry Bartle, seconded by Dale Hatfield. The minutes were unanimously
approved.
3. Meeting Calendar Established
'The board established November 9~ 2006 as the date for the next regular board meeting with the
time of the meeting being 6:OOp.m
4. Merrlll Lynch investment Consulting Report: -Second Quarter
Discussion related to the fmancial presentations given by Michael Callaway.
The overall return for the General Pension Plan was 5.7% for the quarter. Domestic stocks
were up 5.6%, Foreign investments up 14.4% and the Fixed Income investments improved 0.4%.
5. Financial Expenditures:
The board was provided a detailed listing of expenditures through the second quarter. Dale Hatfield
motion to accept, Richard Downes seconded; the vote was unanimous to approve.
6. FTTP Upcoming Events: Calendar provided, no issues discussed.
7. The board was informed that the Annual Financial Report to the State of Florida was approved
by the state.
S. The Annual Actuarial Report was accepted by the board.. Dale Hatfield made a motion to
accept, Harry McNally seconded; the vote was unanimous to approve.
9. COLA Proposed: The Police Board instructed the Plan Administrator to propose to the City
Commission a 3% one time cost of living adjustment for all retirees. The board discussed the option
of limiting the eligibility of those to receive it to members having been retired more than five years
or ten years. The board did not want to discriminate and recommends the adjustment to apply to all
retirees. A motion was made by Tony Downing to authorize the Plan Administrator to propose the
ordinance change and seconded by Dale Hatfield. The vote was unanimous in favor.
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10. Pension Benefit Changes: The plan administrator discussed the status of changing the
contribution rate of Police Employees to the pension plan from 1 % to 4.$15% of salary.
Negotiations with the attorney and the state are on-going and that we hope for some compromise.
The State initially did not approved the amendments because in their opinion, the City will have to
relate the increase in contributions with the increased benefits with respect to cost. The City
contends that the statutes do not require a cost relationship, only that greater benefits are added and
that the increase in contributions is agreed to by the collective bargaining unit. Patricia Shoemaker
of the State still contends that the City must approve greater benefits in order to elTect a contribution
increase.
11. The board reviewed a letter received by the Police Chief David Thompson concerning a disability
retiree, Ransom Beaty, that allegedly misrepresented his disability and was working elsewhere. The
board took the position that this was not an issue they needed to address.
12. Adjourn -Motion by Dale Hatfield at 7:12pm
/~~ \
Henry Bartle
Hoard Chairp n
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Tony Downing
Board Secretary -
Minutes taken and prepared by Nelson Van Liere, Pension Board Administrative Manager, 247-5807
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