Police Employees Pension Board Minutes - 1-8-15 CITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
POLICE EMPLOYEES' PENSION BOARD MEETING
MEETING MINUTES
January 8,2015
1. The City of Atlantic Beach Police Employees' Pension Board meeting was called to order at
6:32 P.M. The members in attendance were trustees: Vic Gualillo, David Cameron, Bill Tomson,
John Wolfel, and Tim Saggau. Pension Plan Administrator Nelson Van Liere, Investment Advisor
Michael O'Shields, and Actuary Jim Rizzo from Gabriel, Roeder, Smith, & Company also attended.
2. Courtesy of the floor to visitors. Chris Jorgensen expressed his enthusiasm in the way the Pension
Board is developing into a fascinating group.
3. Approval of the Minutes for December 11,2014,Police Employees' board meeting. Motion to
approve was made by Bill Tomson and seconded by Tim Saggau. The vote to approve was
unanimous.
4. Michael O'Shields led the discussion on investment performance as of 12/31/14 including year
to date information.
a. Michael provided several handouts for information purposes including Morgan
Stanley's "On the Markets," "Strategic Asset Allocation," and the"2014 Year
Asset Return Analysis"which includes a series of articles laying out the 2015
Outlook and describing factors that have affected the market.
b. Discussion related to current allocation and rate of return. The current plan has
69.7%in Equity, 5.3%in Fixed Income, and 25.0%in Cash. The ending portfolio
value of$8,130,020 represents an annualized return of 7.2% for the period
12/31/11 to 12/31/14.
5. Discussion with James J. Rizzo about the long-term expected rate of return and mortality
assumptions. Jim gave an overview of the way his firm determines the investment assumptions
and rate of return. Michael and Jim talked about looking at 7 year estimates versus a 20 year time
period. Michael explained some of the"Asset Restructuring"the Board has made to offset some
of the volatility of the market. Jim discussed recalibrating the targets based on Mortality Rate
Tables and the use of the FRS Mortality Assumptions.
a. the 10/1/14 valuation for funding purposes and
b. the 9/30/14 City's financial reporting purposes
Both Boards agreed to meet on January 29, 2015 to discuss the investment return.
6. New business: No new business
7. Adjournment—David Cameron made a motion to adjourn the meeting at 8:00 PM.
Vic Gualillo David Cameron
Chair Secretary
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