General Employee Pension Board Minutes 01-22-2013 - SpecialCITY OF ATLANTIC BEACH
ATLANTIC BEACH
GENERAL EMPLOYEES' SPECIAL PENSION BOARD MEETING
MEETING MINUTES
January 22, 2013
1. The City of Atlantic Beach General Employees' Special Pension Board meeting
was called to order at 2:10 P.M. The members in attendance were trustees: Timothy
Townsend, Alan Gleit, Gil Flores and Dennis Roberts. The board has one Commission
appointed seat unfilled. Nelson Van Liere, Pension Plan Administrator; & Michael
O'Shields, Senior Vice President & Institutional Consultant, Morgan Stanley was also
in attendance. A reporter from The Beach's Leader was also present.
2. The following was presented by Michael O'Shields of Morgan Stanley:
Michael O'Shields gave report on Morgan's Stanley's long term outlook for the
discount rate and advised the board that 8 % was still a good number to use for the
actuarial assumptions. The basis of this recommendation was the February 2012
Morgan Stanley Smith Barney Global Investment Committee Strategic Asset
Allocation Annual Update of Return, Risk and Correlation Estimates. The results of
that report was that there was a reasonable expectation that an 8% expected rate of
return was still a good long term assumption for our plan to rely on.
Alan Gleit made a point that the curve of expected returns was flat and that the
expectation really could be expressed in terns of a range without much difference in
probability plus or minus a percent. He also expressed that since there was such a
small difference in the recommended 8% and the 7.75% rate the state will require us to
report, why not go to the 7.75% so that we have only one set of numbers to refer to?
Tim Townsend stated that the lower the expected rate of return the board sets, the
more the City will have to contribute. He was concerned that a higher Annual
Required Contribution amount would cause concern of the City Commission.
After a lengthy discussion and comments that we can change the rate it next
year if circumstances change, and understanding that a new report will be out this
February, the board was ready to vote.
Tim Townsend made the motion to keep it at 8% and Gil Flores seconded it.
The vote was Tim Townsend, Gil Flores and Dennis Roberts for and Alan Gleit
against. The motion was approved.
3. Adjournment — the meeting was adjourned at 2:50
Alan Gleit
Secretary