02-08-07 vCITY OI+' ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
GENERAI.~ EMPLOYEES PENSION BOARD MEETING
February 08, 2007
1. The City of Atlantic Beach General Employee Pension Board meeting ®vas called to order at
6:07 P.M. Those members in attendance were Trustees, Tim Townsend, Harry McNally, Richard
Downes and Malcolm Clemons. Also in attendance was Nelson Van Liere, Plan Administrator and
Michael Calloway of Merrill Lynch.
2. Approval of tlae minutes from the November 9`~, 2006, General Employees Pension Board
Meeting:
Motion made by Harry McNally, seconded by Tim Townsend. The minutes were unanimously
approved.
3. Meeting Calendar Established
The board established May l0a` 2007 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: - Fixst 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 retarn for the General Pension Plan is 04.7%. Domestic stocks
are up 6.7%, Foreign investments up 8.7% and the Fixed Income investments were at 0.9%.
5. Mr. Calloway also discussed a letter received by the City from Merrill Lynch indicating that
we evonld be refunded a portion of fees previously charged due to a change in company policy
on the fee structure and a retro application of that policy. The changes are designed to further
eliminate any perception that Merrill Lynch is not independent from
6. Financial Ezpenditnres:
'The board was provided a detailed listing of expenditures through the fiscal year first quarter. Tim
Townsend motion to accept, Malcolm Clemons seconded; the vote was unanimous.
7. FTTP Upcoming Events calendar provided, no issues discussed.
8. The board established the interest rate at 1.5% for member savings accounts. This rate will be
used to credit accounts for 2006 and to credit accounts going forward biweekly for 2007. A motion
was made by Harry McNally and seconded by Tim Townsend and the vote was unanimous to set the
rate at 1.5%.
9. The board briefly discussed the Pension Protection Act. Tim Townsend con#ibuted the names
of persons he met at a recent seminar as contacts for technical questions. The pre or post tax
application of health care premiums was the issue discussed. The Plan Administrator will follow up
for more information.
10. The boai"d discussed voting prozies received for the Baron amutnal ffannds. A motion was made
by Malcolm to vote for in approval of the managers changes, the motion was seconded by Tim
Townsend and the vate was unanimous in favor. The board also, as a matter of policy, instructed the
plan administrator to bring ballots to the meeting when timely, and to disregard them when they
were not. The issue for this vote was the managers of Barons requesting to move towards mid cap-
stocks from small and mid-cap stocks. ' ~ I
PaC7P. 1 of 7
11. The Plan Administrator requested permission to use an attorney to process the pending
disability application if necessary. Malcolm Clemons made a motion and Tim. Townsend
seconded it to agree to use an attorney if necessary. The vote was unanimous for the motion. Tiro
Townsend provided a disability application guidebook prepared by our attorney to assist in the
evaluation.
12. The Plan Adffiinistrator requested that a new Chair Pro-Tem be selected by the board. Tim
Townsend made a motion and Harry Seconded the motion to appoint Malcolm Clemons as Chair
Pro-Tem. The vote was unanimous for the motion.
13. Under new business, Tim Townsend expressed that he wanted the City Commission to
approve a COLA for all retirees and that he hag written a letter to the Commissiona explaining
his position. He requested that he be able to address the commission at the strategic planning '
session at the end of the month if the rest of the board agreed. Tle board did agree and ~1~ Polan
administrator agreed to speak to the City Manager and iind out what was necessary
happen and report back to Tim Townsend. The letter is on file with the Plan Administrator.
11. Adjourn -Motion by Harry McNally at 7:45pm
..
Tim T send Tony Downing ~
Board Chairperson Board Secretary
Minutes taken and prepared by Nelson Van Liere, Pension Board Administrative Manager, 247-5807
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