General Employee Pension Board Minutes 02-13-14 v CITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
GENERAL EMPLOYEES' PENSION BOARD MEETING
MEETING MINUTES
February 13,2014
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, Gil Flores,Alan Gleit,
and Dennis Roberts. Pension Plan Administrator Nelson Van Liere,Investment Advisor Michael
O'Shields,and Pension Board Attorney Scott Christiansen of Christiansen&Dehner,P.A were also
in attendance.
2. Courtesy of the floor to visitors. No visitors exercised their right to speak.
3. Approval of the minutes from the General Employee Retirement System January 9,2014
meeting. Motion to approve was made by Dennis Roberts and seconded by Timothy Townsend. The
vote was unanimous to approve.
4. Discussion on board member composition.Timothy Townsend's term expires on February 16,
2014. Nominations have been submitted and an election is to follow. Additionally,Michael Diaz has
officially resigned from the Board via e-mail.
5. The Financial Expenditures through December 31,2013 for the General Employees' Pension
Plan were approved: the motion was made by Timothy Townsend and seconded by Dennis Roberts.
The vote was unanimous to approve.
6. Michael O'Shields led the discussion on investment performance for the month of January
including year to date information. Discussion related to current equity and bond investment
allocation. Current quarterly performance has resulted in an$86,200 loss with a current ending
portfolio value of$14,261,553. This represents a cumulative gain of 3.9%after the fourth month of
the fiscal year ended September 30,2014.
7. The following was discussed by Pension Board Attorney Scott Christiansen of Christiansen &
Dehner, P.A.:
A. Discussion related to potential legislation in the House and Senate that may force the
pension plan to offer a defined contribution plan component. Also, legislation may
affect the use of state monies provided to the pension plan.
B. Motion made by Dennis Roberts to authorize attorney to prepare ordinance with
further IRC updates and to request zero impact study from actuary in regards to
proposed changes in the ordinance. Seconded by Gil Flores and the vote was
unanimous to approve.
C. Current legislation requires the board to estimate the expected investment return
based on the current portfolio for several time periods including 1 year, several years,
and the long term thereafter. Based on the board's investment advisor's statements,
the board adopted an 8% expectation across all time periods. Motion to adopt 8%as
the expectation across all time periods was made by Timothy Townsend and
seconded by Dennis Roberts.
8. Benefit Changes for Roosevelt Brown and Paul Ledgister. Motion to approve was made by
Timothy Townsend and seconded by Dennis Roberts. The vote was unanimous to approve.
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9. Discussion of the Annual Valuation Report.
Pension Plan Administrator led discussion revolving around key points of the Annual Valuation
Report including unfunded liability ratios, schedule of funding, and impact statements. Motion to
approve the Annual Valuation Report was made by Timothy Townsend and seconded by Alan Gleit.
The vote was unanimous to approve.
10. Discussion for a Thirty and Out provision. Suggestion proposed by a general employee. Discussion
related to the minimal impact that the provision would have on the pension plan due to the low
volume of employees that would reach thirty years of service before retiring. No opposition to City
Manager introducing the idea to the City Commission.
11. Discussion related to outsourcing pension administration and/or custodianship. Suggestion was
proposed by a general employee. Pension Board Attorney discussed the differences between the two
services and gave examples of common fees associated with those services. No interest shown by
members at present time.
12. No new business.
13. Adjournment—Dennis Roberts made the motion to adjourn meeting a PM.
l'
imothy ownsend Alan Gleit
Chair Secretary
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