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05-10-07 vCITY OF ATLANTIC BEACH BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND GENERAL EMPLOYEES PENSION BOARD MEETING May 10, 2007 1. The City of Atlantic Beach General Employee Pension~Board meeting was called to order at 6:03 P.M. Those members in attendance were Trustees, Tim Townsend, Tony Downing and Malcolm Clemons. Richard Downes and Harry McNally were absent. Also in attendance were Nelson Van Liere, Plan Administrator and Michael Calloway of Merrill Lynch. Georgia Horn joined the meeting for the discussion related to her disability retirement application. 2. -The General Pension Board again selected Harry McNally to serve another four year term that expired March 27, 2007. The new term will be from May 10, 2007 until May 9, 201 1. The motion was made by Tim Townsend and seconded by Malcolm Clemons. The selection was unapimously approved. 3. Approval of the minutes from the Febraary 8"', 2007, General Employees Pension Board Meeting: The motion was made by Tim Townsend and seconded by Malcolm Clemons. The minutes were unanunously approved. 4. Meeting Calendar Established The board established August 9~` 2007 as the date for the next regular board meeting with the time of the meeting being 6:OOp.m. 5. Merrill Lynch investment Consulting Report: -Second Quarter -Fiscal Year Discussion related to the financial presentations given by Michael Callaway. Results for the quarter were very good and Mike expressed that so far the changes made in the portfolio have proven to be good for the plan. The overall fiscal year to date return for the General Pension Plan is 06.6%. Domestic stocks are up 8.4%, Foreign investments up 11.8% and the Fined Income investments were at 2.7%. 6. The Plan Administrator also made the board aware of a Sta#e Division of Retirement fetter indicating two issues to resolve fn our state report. . The first issue was a comment concerning the relationship of Mone~Managgrs listed and Merrill Lynch. Mr. Calloway drafted a letter explaining the relationship and sent it to the Plan Administrator. The letter clarifies that Merrill Lynch only provides performance measurement and consulting services and does not manage the assets themselves. The board agreed that they fully understand the relationship and that no conflict of interest exists. The second issue is that the State Division of Retirement deemed our Dron PIan Assets to beplam assets instead of employee assets. The City's drop plan only allows deposit to the I.C.M.A., a plan sponsor selected by the City. Because they have been deemed plan assets, we need to split the Police and General plan investments into separate accounts. The board directed the administrator to proceed with the necessary paperwork. 8. Finabcial Expenditures: The board was provided a detailed listing of expenditures through the fiscal year second quarter. Malcolm Clemons made a motion to accept and Tim Townsend seconded; the vote was unanimous in favor. 9. FTTP Upcoming Events calendar provided, no issues discussed. 10. The Plan administrator reviewed the annual actuarial report and informed the board members that the report was provided to the City Commission. The only concern discussed by the City Commission was the funding levels. The administrator directed them to page D-3. This indicated that the General Plan funding status improved from 69.3% to 72.4% from the previous year. It is hopeful that this is the turning point in the trend we have been waiting for. 11. The Plan administrator reviewed the opinion of the General Pension Board's attorney Robert Sugarman, of Sugarman and Susslund to deny the disability benefft applied for, based on the information provided, pursuant to section 2-279 a of the Atlantic Beach Code. This letter was also sent to the applicant whereby the applicant forwarded additional information to the Plan administrator. The Plan administrator informed the board that he had forwarded all of the additional information to Ken Harrison, the attorney working on this application for Robert Sugarman and that he had received the information, and had determined that it did not change his opinion and that a letter to that affect would follow but would not be ready in time for this meeting, The plan administrator also explained, as it was explained to him by Ken Harrison, that Section 2-286 Subrogation rights would come into play if a disability benefit were determined to be justified. This would allow the pension board to be reimbursed for the cost to the plan for providing the benefit that was the result of an act of a third party. The plan administrator explained that that would mean the boazd has a claim on the applicant's award in the amount of the disability benefit. Board members Tim Townsend, Tony Downing, Malcolm Clemons along with Georgia Horn discussed various points of the case including her eligibility to apply based on the definition of disability, dates and other information establishing a timeline of events, the decision of social security as it relates to the disability and the selection of a doctor to evaluate for the purposes of determining a disability, A letter from the City Manager's administrative assistant who supervised the applicant was discussed as well as the subrogation rights of the board to have a claim On the applicants court award. The applicant claimed that she was in fact disabled at the time of employment termination and that she had medical documentation using the word disability in them. She also claimed that the City failed to give guidance to her when she terminated because staff did not tell her to put in her resignation letter that she was leaving because she was no longer able to perform her duties. She also claimed that her award was between her and ABC and that had nothing to do with the City of Atlantic Beach and therefore she does not agree that the city has subrogation rights to her award. Tony Downing expressed that vt%e are not making a motion here at this meeting, but simply giving direction to the plan administrator that after hearing from the attorney, Ken Harrison, for Georgia to work with Nelson to obtain any further information necessary to reach a decision on this case. All agreed. 12. The Forms Packet provided was approved, Tony Downing made the motion, Tim Townsend seconded it and the motion was unanimously approved. 13. Adjourn - Motion by Tim Townsend at 7:34pm ~~ Tim Tow nd Boazd Chairperson Tony Downing Boazd Secretary Minutes taken ead prepared by Nelson Van Liere, Pension Board Administrative Manager, 247-5807 Page 2 of 2