11-09-06CITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
POLICE EMPLOYEES PENSION BOARD MEETING
November 09, 2006
1. The City of Atlantic Beach Police Employee Pension Board meeting was called to order at
6:OS P.M. Those members in attendance were trustees, Harry McNally, Tony Downing, Richard
Downes and Henry Bartle. Tony Downing arrived at 6:09pm. Dale Hatfield was absent. Also in
attendance were Nelson Van Liere, Plan Administrator and Mike Calloway of Merrill Lynch. The
Beaches Leader also had a reporter present at the meeting.
2. Approval of the minutes from the August 10"', 2006, Police Employees Pension Board
Meeting:
Motion made by Henry Bartle, seconded by Harry McNally. The minutes were unanimously
approved.
3. Meeting Calendar Established
The board established February $~` 200'7 as the date for the next regular board meeting with the time
of the meeting being 6:OOp.m
4. Merrill Lynch investment Consulting Report: -Third Quarter
Discussion related to the financial presentations given by Michael Callaway. Results for the quarter
were very good. Mike expressed that so far the changes made in the portfolio have proven to be
good for the plan. Mike also noted that from now on, return on investment figures provided in the
reports would be net of fees.
The overall return for the General Pension Plan was 3.S% for the quarter. Domestic stocks
were up 2.9%, Foreign investments up 5.0% and the Fixed Income investments improved 3.9%.
5. Financial Expenditures:
The board was provided a detailed listing of expenditures through the fiscal year fourth quarter.
Henry Bartle made a motion to accept, Richard Downes seconded; the vote was unanimous to
approve.
6. FTTP Upcoming Events: Calendar provided, no issues discussed.
7. COLA Proposed: The plan administrator proposed to the commission a 3% one time cost of living
adjustment for all retirees as the board instructed. The commission discussed the three percent
increase as well as other less expensive options such as limiting the eligibility of those to receive it to
members having been retired more than five years or ten years. The commission declined to
consider the cola at that meeting, but instead requested more time to consider. On the October 23`x,
2006 meeting, the City Manager gave a report to the commission on the COLA recommending that
this was not the time to approve a COLA. The commission requested that the COLA be addressed
in the strategic planning sessions as part of the budgetary process. These meetings are usually held
in March. Tim Townsend suggested that in the meantime, the board should work on a proposal that
may be acceptable to the commission.
8. Pension Benefit Changes: 'The plan administrator discussed the status of changing the
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contribution rate of Police Employees to the pension plan from 1 % to 4.815% of salary.
Negotiations with the attorney and the state aze on-going and that we hope for same 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 has sent
another letter to the state requesting further review of our position and we are waiting for a reply.
The Plan administrator also informed the board that any additional attorney's costs associated with
this issue would be charged to the City, not the pension plan.
9. The David Archer retirement was pulled from the agenda. Mr. Archer was undecided on which
option he would go with at the time of this meeting.
10. Adjourn -Motion by Henry Bartle at 7:15pm
eery Bartle
Board Chairpe on
~~-
Tony Downing ~""
Board Secretary
Minutes taken and prepared by Nelson Van Liere, Pension Board Administrative Manager, 247-5807
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