Police Employee Pension Board Minutes 11-15-2012 - QuarterlyCITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
POLICE EMPLOYEES' PENSION BOARD MEETING
MEETING MINUTES
November 15, 2012
1. The City of Atlantic Beach Police Employees' Pension Board meeting was called to order at
6:30 P.M. The members in attendance were trustees: Vic Gualillo, Bill Tomson, John Wolfel and
Harry McNally. Brannon Hicks was not present. 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 & Dehner, P.A. arrived at
6:44 P.M.
2. The Minutes for August 16, 2012 Police Employees' Pension Board meeting were approved: the
motion was made by Harry McNally, seconded by Bill Tomson & unanimously approved.
3. The Minutes for October 11, 2012 Police Employees' Special Called Pension Board meeting
were approved: the motion was made by Harry McNally, seconded by Vic Gualillo & 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 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.
Harry McNally made the motion to keep it at 8% and Bill Tomson seconded it. The
vote was Three for and John Wolfel against without any further discussion. The
motion passed.
The use of options was discussed and the board was inforined that they are permissible if our
policy is amended to include them. Alan Gleit will hold a workshop for those
interested at their convenience at City Hall when scheduled.
5. The Financial Expenditures through September 30, 2012 for the Police Employees' Pension
Plan were approved: the motion was made by John Wolfel, seconded by Vic Gualillo &
unanimously approved.
6. The following was discussed by Pension Board Attorney Scott Christiansen of Christiansen &
Dehner, 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.
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 infonned 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.
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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. Scott reported on the "Naples Letter ", indicated that many cities now have received similar
direction from the Department of Management Services loosening their interpretation of the
restrictions related to 185 funds.
viii. Discussion of the Calendar — The board decided to have a Special Meeting on January 3, 2013
to discuss the investment results.
ix. The board has tentatively changed the February Meeting to February 21, 2013 to avoid
Valentine's Day
7. The Police Board had no beneficiary changes to approve at this meeting.
8. No new business.
9. Adjournment — the meeting was adjourned at 8:15 PM.
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Harry Ac Nally
Secretary
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