02-08-07 vCITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
POLICE EMPLOYEES PENSION BOARD MEETING
February 08, 2007
1. The City of Atlantic Beach Police Employee Pension Board meeting was called to order at
6:06 P.M. Those members in attendance were trustees, Harry McNally, .Richard Downes and Henry
Bartle. Tony Downing and Dale Hatfield were absent. Also in attendance were Nelson Van Liere,
Plan Administrator and Mike Calloway of Merrill Lynch.
2. Approval of the minutes from the November 09"', 2006, Police Employees Pension Board
Meeting:
Motion made by Henry Bartle, seconded by Richard Downes. The minutes were unanimously
approved.
3. Approval of the minutes from the 1Deceanber 12"', 2006, Police Employees Special Called
Pension Board Meeting:
Motion made by Harry McNally, seconded by Richard Downes. The minutes were unanimously
approved.
4. Meeting Calendar Established
The board established May 10`~ 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: -First Quarter -Fiscal Year
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
The overall return for the Police Pension Plan was 4.6% for the quarter. Domestic stocks were
up 6.7%, Foreign investments up 8.7% and the Fixed Income investments improved 0.9%.
6. Mr. Calloway also discussed a letter ~•eceived by the City from Merrill Lynch indicating that
we would 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 consulting services are not independent from the trades
themselves.
7. Financial Expenditures:
The board was provided a detailed listing of expenditures through the fiscal year fourth quartep.
Harry McNally made a motion to accept, Richard Dowries seconded; the vote was unanimous to
approve.
8. FTTP jJpcon~ing Events: Calendar provided, no issues discussed.
9. 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 Henry Baztle and seconded by Harry McNally and the vote was unanimous to set the
rate at 1.5%.
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10. The board brie€iy discussed the Pension Protection Act. Tim Townsend contributed 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.
11. The board discussed voting proxies received for the Baron Mutual Funds. A motion was made
by Henry Bartle to vote for in approval of the managers changes, the motion was seconded by Harry
McNally and the vote 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.
12. Pension Senefat Changes: The plan administrator discussed the status of changing the
contribution rate of Police Employees to the pension plan from 1% to 4.815% of salary. The City
received a response to a letter to the state requesting further review of our position. The letter only
stated that they had received our request and will be reviewing it.
13. Adjourn -Motion by Henry Bartle at 7:45pm
eery Bartle
Board Cha' erson
Tony Downing r ~-~'''~
Board Secretary
Minutes taken and prepared by Nelson Van Liere, Pension Board Administrative Manager, 247-580'1
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