General Employees Pension Board Minutes - 1-8-15 CITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
GENERAL EMPLOYEES' PENSION BOARD MEETING
MEETING MINUTES
January 8,2015
1. The City of Atlantic Beach General Employees' Pension Board meeting was called to order at
6:32 P.M. The members in attendance were trustees: Alan Gleit, Gil Flores and Ray Brandstaetter.
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 to begin the nomination process and election of new Chair. The Board approved the
nomination process to find a replacement for Tim Townsend. Alan Gleit made a motion to nominate
Gil Flores as Chair and Ray Brandstaetter seconded the motion. The vote to approve was unanimous
and Gil accepted. Then Alan made a motion to nominate Ray Brandstaetter as Vice Chair with a
second from Gil. The vote to approve was unanimous and Ray accepted.
4. Approval of the Minutes for December 11,2014, General Employees' board meeting. Motion to
approve was made by Gil Flores and seconded by Alan Gleit. The vote to approve was unanimous.
5. 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, 5.0% in Fixed Income, and 25.3%in Cash. The ending portfolio
value of$15,275,564 represents an annualized return of 7.8%for the period
12/31/11 to 12/31/14.
6. 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.
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7. Approval of lump sum pay-out of retirement for Doris Smith. Doris Smith received a lump
sum DROP distribution in the amount of$19,113.42.
8. New business: No new business
9. Adjournment—Gil Flores made a motion to adjourn the meeting at 8:00 PM.
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Gil Flores Ray Bra I staetter
Chair Vice Chair
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