8-19-10 - General v CITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
GENERAL EMPLOYEES' PENSION BOARD MEETING
MEETING MINUTES
August 19, 2010
1. The City of Atlantic Beach General Employees' Pension Board meeting was called to order at
7:01 PM. The members in attendance were trustees: Bob Sternfeld, Alan Gleit, Harry McNally and
Jeri Benjamin. Malcolm Clemons was absent. Also in attendance were: Scott Christiansen, Pension
Board Attorney; Nelson Van Liere, Pension Plan Administrator; Michael O'Shields, Investment
Consultant from Morgan Stanley Smith Barney; George Foster, Human Resources Manager for the
City; James Rizzo & Piotr Krekora, Actuaries from Gabriel, Roeder, Smith & Company.
2. The Minutes for May 20, 2010, General Employees' Pension Board meeting were approved: the
motion was made by Harry McNally, seconded by Bob Sternfeld & was unanimously approved.
3. The Quarterly Investment Performance Report for the quarter ended June 30, 2010 was
provided & presented by Michael O'Shields of Morgan Stanley Smith Barney. According to the
report received from MSSB, the portfolio had a 5.27% decrease for the quarter ending June 30, 2010.
A discussion was held on the contents of the report & one investment manager will be presented in
detail each quarter.
4. The Discussion of Matters of Interest to the General Employees' Pension Board by Mr. James
Rizzo, Senior Consultant & Actuary of Gabriel, Roeder, Smith, & Company: reviewed The City
of Atlantic Beach General Employees' Retirement System Annual Actuarial Valuation Report as of
September 30, 2009 & discussed the annual contract for actuarial services that expired 06/30/10. Mr.
Scott Christiansen, Pension Board Attorney, advised the board to have a contract with Gabriel,
Roeder, Smith, & Company rather than the letter that has been used in the past. Mr. Rizzo, Senior
Consultant & Actuary of Gabriel, Roeder, Smith, & Company recommended that the actuarial
assumptions be reviewed as they are greater than 10 years old. The Board approved Mr. Christiansen
to review & prepare the contract that will be effective 10/01/10 to coincide with the City's current
fiscal year & after the contract is approved, Mr. Rizzo will review the actuarial assumptions.
Additionally, Mr. Scott Christiansen, Pension Board Attorney, advised the Board that the Annual
Actuarial Valuation Report will need to be presented to the City Commission. Mr. Nelson Van Liere,
Pension Plan Administrator, advised the Board he would handle this matter. The motion to approve
theses matters was made by Harry McNally, seconded by Jeri Benjamin & was unanimously
approved.
5. The Discussion of Matters of Interest to the General Employees' Pension Board by Pension
Board Attorney Scott Christiansen of Christiansen & Dehner, P.A.: a signed copy of the
investment policy adopted at the special meeting on 03/04/10 needs to be mailed to the State of
Florida. Mr. Nelson Van Liere, Pension Plan Administrator, advised the Board he would handle this
matter. Also, the proposed Pension Plan document was reviewed & several administrative issues
were presented. The Plan document will be revised by George Foster, Human Resources Manager
for the City, & Mr. Scott Christiansen. Any changes made to the document will be non - material & an
impact study will be conducted by Mr. Rizzo, Senior Consultant & Actuary of Gabriel, Roeder,
Smith, & Company, once the document is finalized. The motion to approve was made by Alan Gleit,
seconded by Jeri Benjamin & was unanimously approved.
6. The Financial Expenditures through June 30, 2010 for the General Employees' Pension
Plan were approved: the motion was made by Alan Gleit, seconded by Harry McNally &
unanimously approved.
7. The Schedule of General Employees Pension Changes was discussed: the motion to approve
was made by Harry McNally, seconded by Alan Gleit & was unanimously approved.
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CITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
GENERAL EMPLOYEES' PENSION BOARD MEETING
MEETING MINUTES
August 19, 2010
8. The Buy Back of Pension Service was discussed: the first calculation will be paid by the
Pension Plan & any subsequent calculations for that employee will be paid by the employee. Mr.
Rizzo, Senior Consultant & Actuary of Gabriel, Roeder, Smith, & Company, also advised the
Board he will need: the assumptions defined to calculate the amount & a definition of the
actuarial equivalents to avoid a negative effect on the Pension Plan. The motion to include these
items in the contract was made by Bob Sternfeld, seconded by Jeri Benjamin & was unanimously
approved.
9. The Fiduciary Liability Insurance was discussed: Mr. Scott Christiansen, Pension Attorney,
recommended the policies for the General Employees'& Police Officers' Pension Plans be
separate & for $1,000,000 each. The motion to keep the policies together & increase the amount
to $2,000,000 was made by Harry McNally, seconded by Alan Gleit & was unanimously
approved.
10. No New Business.
11. Adjournment — the meeting was adjourned at 10:06 PM by Alan Gleit.
l/i/r AL 1 y 4
Harry Mc ally Alan e' eit
Vice -Chair Secretary
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