05-10-07CITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
POLICE EMPLOYEES PENSION BOARD MEETING
May 10, 2007
1. The City of Atlantic Beach Police Employee Pension Board meeting was called to order at
6:03 P.M. Those members in attendance were trustees Henry Bartle, Tony Downing and Dale
Hatfield. Richard Downes and Harry McNally were absent. Also in attendance were Nelson Van
Liere, Plan Administrator and Mike Calloway of Merrill Lynch.
2. The Police Pension Board again selected Harry McNally to serve another two year term for
the term that expired March 27, 2007. The new term will be from May 10, 2007 until May 9,
2009. The motion was made by Dale Hatfield and seconded by Henry Bartle. The selection was
unanimously approved.
3. Approval of the minutes from the February OS`~, 2007, Police Employees Pension Board
Meeting:
Motion made by Dale Hatfield and seconded by Henry Bartle. The minutes were unanimously
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 Police Pension Plan was 6.4°/a. Domestic stocks
were up 8.4%, Foreign investments up 11.9% and the Fixed Income investments improved 2.7%.
6. The Plan Administrator also made the board aware of a State Division of Retirement letter
indicating two issues to resolve in our state report.
The first issue was a comment concerning the relationship of Monev Managers listed and
Merrill Lynch, Mr. Calloway drafted a letter explaining the relationship and sent it to the Ptan
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 Plan Assets to
be elan assets instead of emplovee 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.
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7. Financial Expenditures:
The board was provided a detailed listing of expenditures through the fiscal year second quarter.
Dale Hatfield made a motion to accept, Henry Bartle seconded; the vote was unanimous to approve.
8. FTTP Upcoming Events: Calendar provided, no issues discussed.
9. The Plan administrator reviewed the annual actuarial report and informed the board
members that the report was provided to the Cfty Commissfon. The only concern discussed by
the City Commission was the funding levels. The administrator directed them to page D-3. This
indicated that the Police Plan funding status improved from 68.2% to 73.6% from the previous year.
It is hopeful that this is the turning point in the trend we have been waiting for.
10. The plan administrator informed the board that the ordinance including the provision to
increase the Police employees contributions to the plan still had not been approved by the State.
11. The plan administrator requested approval of a comprehensive forms packet. A motion to
approve the packet was made by Dale Hatfield and seconded by Henry Bartle. The vote was
unanimous to approve.
12. Adjourn -Motion by Dale Hatfield at 7:19pm
eery Bartle
Board Chairp on
Tony Downing
Board Secretary
Minutes taken and prepared by Ne1soR Van Liere, Pension Board Adminish~ative Manager, 247-5807
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