General Employee Pension Board Minutes 02-21-2013 - QuarterlyCITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
GENERAL EMPLOYEES' PENSION BOARD MEETING
MEETING MINUTES
February 21, 2013
1. The City of Atlantic Beach General Employees' Pension Board meeting was called to order at
6:30 P.M. The members in attendance were trustees: Timothy Townsend, Alan Gleit, Gil Flores,
Dennis Roberts, and new board member Michael Diaz. Nelson Van Liere, Pension Plan
Administrator; & Michael O'Shields, Senior Vice President & Institutional Consultant, Morgan
Stanley was also in attendance. Pension Board Attorney Scott Christiansen of Christiansen &
Definer, P.A. was not in attendance although available by phone if needed.
Discussion on board member attendance - After welcoming the new board member to the General
Board, both boards were informed by the Plan Administrator of the attendance policy with regard to
un- excused absences. As indicated on the excerpts of the pension ordinances under agenda item
number (9), the requirement for General and Police are different. The General plan has a provision
to remove a member with three absences. The police plan has no such provision. We have a Police
member with four absences. Without a provision to remove a member, the board will need to wait
until the term expires to resolve the issue.
2. The Minutes for November 15, 2012 General Employees' Pension Board meeting was
approved: the motion was made by Tim Townsend, seconded by Dennis Roberts & unanimously
approved.
3. The Minutes for January 22, 2013 General Employees' Special Called Pension Board meeting
was approved: the motion was made by Tim Townsend, seconded by Dennis Roberts &
unanimously approved.
4. The following was presented by Michael O'Shields of Morgan Stanley Smith Barney:
Michael O'Shields gave a recap of the investment performance for the year ended December
31, 2012 and an update to January 31, 2013. He reported that the activity for the
quarter was basically flat. Michael gave information regarding the position of the
market relative to where we were when we cut our equity holdings in half. He
explained our position to protect the large gains and now it was time to address how
we would deploy the cash position of our portfolio. The board discussed the need to
be active and after a long discussion agreed to schedule meetings monthly on the
second Thursday of every month. Alan Gleit made the motion and Tim Townsend
seconded it. The motion was unanimously approved. Michael also discussed the
Morgan Stanley Global Investment Committee Hypothetical Economic and Financial
Scenario Analysis for 2013. Discussion regarding the boards views on either a more
bullish or more bearish outlook resulted in the board's decision not to change the
holdings at this time.
Michael reported that the Morgan Stanley Long Term forecast report was not finished, but
would be soon.
5. The Financial Expenditures through December 31, 2012 for the General Employees' Pension
Plan were approved: the motion was made by Tim Townsend, seconded by Gil Flores &
unanimously approved.
6. The following was discussed by Pension Board Attorney Scott Christiansen of Christiansen &
Delmer, P.A.:
i. Scott was not in attendance but was available by phone if needed. The Plan administrator
passed on Scott's items which were the expiration of Harry McNally's Tenn, the required
paperwork for the new Member, Michael Diaz — General Plan, and the status of the Ordinance.
After these items were discussed, the board agreed that getting Scott on the phone was not
necessary.
7. A motion by Tim Townsend to approve the beneficiary changes was seconded by Dennis
Roberts and unanimously approved.
8. No new business.
9. Adjournment — the meeting was adjourned at 7:58 PM.
imoth tyownsend
Chair
Alan Gleit
Secretary
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