11-08-07CITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
GENERAL EMPLOYEES PENSION BOARD MEETING
November 00, 2007
1. The City of Atlantic Beach General Employee Pension Board meeting was called to order at 6:01 P.M.
Those members in attendance were trustees, Tim Townsend, Tony Downing, Malcolm Clemons, Alan Gleit
and Harry McNally. Also in attendance were Nelson Van Liere, Plan Administrator and Dan Johnson of
Merrill Lynch.
2. The new board members were introduced to the City Clerk, Domm. Bussey. New member Alan Gait, and
future member Bob Sternfeld were sworn in. Alan Gleit replaces Richard Downes and Bob Sternfeid
replaces Tony Downing when his term expires on 12/31!2007.
3. Approval of the minutes from the Aagast 9w, 2007, Genernl Employees Pension Board Meeting:
The motion was made by Harry McNally and seconded by Tony Downing. The minutes were unanimously
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4. Approval of the minutes Pram ifie Spacial CaDed August 29a', 2007, General Empbytes Pension
Hoard Meeting:
The motion was made by Harry McNally aml seconded by Tony Dawning. The minutes were unanimously
approved.
5. Meetins Calendar EstabB~shed
The board established'V~ednesdav. February 13n 2008 as the date for the next regular board meeting with
"`~'- due to Valentine's Day.
the time of the meeting being 6:OOp.m. This meeting is Wednesday
6. Dan Johnson, the repMoeraent for Milne Cs~e~ray introduced himself and assured the board ~ they
folly intend to continue providing full services to the boards despite the letters from Merrill Lynch and
MOce Callaway about the SEC investigation surna-nnding issues of disclosure and management fees. The
board discussed the fee st<ucture and recalled numerous instances of discussions about the fee structure
with Mike Callaway over the years. Tmr Towns~-d indicated that the board has been satisfied with the
services of Mike Callaway and Merrill Lynch and are fully aware of the fee arranged The board
discussed the contract with Merrill Lynch and that it was executed in 1993. The fee u~t was
amended with a letter ~ August 15, 2001 indicating that Merrill Lynch would continue to offset fees by
$.SO of each $1.00 in commissions received by Merrill"Lynch far the execution of securities transactions
on behalf of the fiords. Dian Johnson also informed the members that this had again been amended about a
year ago to refund the plan 100% of the fees. Dan brought copies of checks for the fees for the last two
quarters far both plans. Copies of the contract and the letter are attached to these minutes.
7, lf~rsill Lyncit investment Consulting !report; -Fourth Qnar~r -Fiscal Year
Dhscussion related to the financial presentations given by Dan Johnson. Results for the quarter were good
and Dan expressed that the changes made five quarters ago to move to mutual funds Dave proven to be good
fdr the plan.
The a+verall fiscal pear to date retort for the General Pension Plan is 14.8°/.. Domestic stocks are up
18.8%, Foreign investments up 27.6% and the Fixed Income investments were at 5.9% fiscal year to date.
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S. Financial Ezpenditnres: dtt~tres thou the fiscal year fourth quarter. HaTr1' made a motion
The board was provided a detailed listing of expen ' r~ovides details on actuary costs and om the instu~ance
to defer approval of the expenses uatil the Plan administrator p
allocation. Malcolm Clemons seconded, the vote was unanimous to defer.
9. 1TTP Upcoming Events calendar provided, There was discussion of the FPPTA seminars available at
Sawgrass in January. Any interested members need to contact the Plan Administrator far details.
ld. Ten Year Vesting Status: The plan administrator informed the board that the status of the vesting
change to ten years from five is on the table as part of on-going union negotiations.
11. Adjourn -Motion by Hxry McNally at 7:3dpm
T,,.., owN s ~,~c~
Board Cl-airperson
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Board Secretary
ts~aen amd prepared by ]Selson Vm I.iere, Pension Bond Plea Administrator' and repeeseot ra sumnury art Q~e actions taken. Audio tapes of the
~~ are ~~ ~ a ~mplete pubdc record, 247-5807
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