General Employee Pension Board Minutes 11-15-2012 - QuarterlyCITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
GENERAL EMPLOYEES' PENSION BOARD MEETING
MEETING MINUTES
November 15, 2012
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 and Gil Flores.
Dennis Roberts was not present. 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. Pension Board Attorney Scott Christiansen of
Christiansen & Delmer, P.A. arrived at 6:44 P.M.
2. The Plan Administrator reported on the status of the unfilled position, informing the members
of the pending Board Member Review Committee meeting that may not include a selection for the
Pension Board due to lack of qualified applicants. The board is encouraged to seek out qualified
applicants and let theirs know of the opportunity to serve.
3. The Minutes for August 16, 2012 General Employees' Pension Board meeting were approved:
the motion was made by Alan Gleit, seconded by Tim Townsend & unanimously approved.
4. The Minutes for October 11, 2012 General Employees' Special Called Pension Board meeting
were approved: the motion was made by Alan Gleit, seconded by Tim Townsend & unanimously
approved.
5. 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 September
30, 2012 and an update to October 31, 2012.
Proclaimed the rebalancing and changes made with the new portfolio policy were a success.
The portfolio avoided significant losses as a result.
Michael 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.
Tim Townsend made the motion to keep it at 8% and Gil Flores seconded it. The vote
was Townsend and Flores for and Alan Gleit against without any further discussion.
The board considered the motion passed and moved on. ( NOTE: The board was
informed shortly after the meeting that the board must have three votes for any
decision and therefore a special meeting will be held to reconsider a new motion when
all members are present. )
The use of options was discussed and the board was informed that they are permissible if our
policy is amended to include them. Alan Gleit will hold a workshop for tose interested
at their convenience at City Hall when scheduled.
6. The Financial Expenditures through September 30, 2012 for the General Employees' Pension
Plan were approved: the motion was made by Tim Townsend Roberts, seconded by Gil Flores &
unanimously approved.
7. The following was discussed by Pension Board Attorney Scott Christiansen of Christiansen &
Delmer, P.A.:
i. Scott inquired about the status of the Ordinance — is being reviewed by the attorneys handling
Union negotiations for the City. The union and the City are currently moving towards impasse.
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ii. Scott inquired about the status of new forms. They were received and forwarded to the HR
department. The change in beneficiary of a deceased retiree's pension when divorced was
discussed.
iii. Scott inquired about the status of the attempt to obtain notarized affidavits from those receiving
benefits. This should be completed soon; there were only a few remaining. Certified letters
would be the next step for those that we do not hear from.
iv. Scott informed the Plan Administrator that the insurance rider for waiver of recourse should be
paid for by the City, not the Pension plan. The Plan Administrator indicated that he would
follow up on that by the next meeting.
v. Scott informed the Plan Administrator of the requirement to report to the City Commission
Annually.
vi. Scott reported that he and another attorney were working on IRS tax qualified compliance
language for the ordinance and all of the other clients.
vii. Discussion of the Calendar — The board decided to have a Special Meeting on January 3, 2013
to discuss the investment results.
viii. The board has tentatively changed the February Meeting to February 21, 2013 to avoid
Valentine's Day
8. A motion by Alan Gleit to approve the beneficiary changes was seconded by Tim Townsend
and unanimously approved.
9. No new business.
10. Adjournment —the meeting was adjourned at 8:15
Timothy T wnsend
Chair
Secretary
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