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November, 2006 |
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POLICE & FIREFIGHTERS' PENSION BOARD REGULAR MEETING
Pursuant to authority of Ordinance C-00-34, Article II, this regular meeting of the Police & Firefighters' Pension Board convened at 12:35 P.M., Wednesday, November 8, 2006 in the Pension Board Conference Room, 888 S. Andrews Avenue, Suite 202, Ft. Lauderdale, Florida 33316.
PRESENT: Dee Seibert, Chairman
Allan Curry, Vice Chairman
Romney C. Rogers, Secretary
Mark Burnam, Trustee
Ian Kemp, Trustee
Michael Dew, Trustee
Tom Topor, Trustee
James G.Behrendt, City Controller
Steve Cypen, Board Attorney
Lynn Wenguer, Administrator
Laurie DeZayas, Pension Aide
Renee Lipton, Recording Secretary
ABSENT: Betty Burrell, Ex-officio
ALSO PRESENT:
Fuzzy Larkin, President, Retirees’ Assoc.
Bill Paton, Vice President, Retirees’ Assoc.
Jack Chew, Director, Retirees’ Assoc.
Dennis Hole, Retiree
Gary Martin, Jr., Police Dept.
Alan Summersgill, Retirees’ Assoc.
Michael Salzano, President, Local 765
Jason Pulos, Asset Consulting Group
Adam Craig, Essex
David Goss, Essex
Beth Stone, Standish Mellon
Greg Curran, Standish Mellon
ASSET VALUE as of November 7, 2006: $465,647,298.
Chairman Seibert called the meeting to order at 12:30 P.M.
MINUTES: Regular Meeting, October 4, 2006. Mr. Curry made a motion to approve the minutes as submitted. Mr. Kemp seconded the motion. The motion was approved UNANIMOUSLY by the Board.
BENEFIT REVIEW: POLICE DEPARTMENT – DROP Retirees: Martin F. Lenihan, Police Officer. Date of DROP retirement November 24, 2006 with 20 years of service. Monthly pension benefit $4,135.14 (Life Annuity).
Samuel Andy Bryant, Detective. Date of DROP retirement November 3, 2006 with 20 years of service. Monthly pension benefit $4,147.83 (Life Annuity).
Vested Retirement: John E. Miller, Police Officer. Date of termination May 4, 1993. Date of retirement November 1, 2006 with 10 years of service. Monthly pension benefit $1,151.84.
FIRE DEPARTMENT - New Retiree (Termination of DROP Retirement): John T. Calenback, Driver/Engineer. Date of DROP Retirement December 5, 2001 with 20.05 credited years of service and 25 total years of service. Termination date November 16, 2006. Monthly pension benefit $3,662.95. DROP account total $257,766.23.
Request for Lump Sum Refund: Dallas Shumaker, Firefighter. Date of separation July 27, 2006. Creditable years of service 9.90. Lump sum payment due $43,699.22.
Mr. Kemp noted that Mr. Shumaker had been given Share Funds in error. Ms. Wenguer added that after speaking with him about returning these funds, she sent him a registered letter. He has verbally agreed to return this money, however, to date these funds have not been received.
Motion was made by Mr. Curry to approve the Benefit Review with Mr. Kemp seconding the motion. The motion was approved UNANIMOUSLY by the Board.
DISABILITY APPLICATION: John Bruce, Firefighter. Mr. Cypen noted that this was an informal disability hearing. There were 33 pages of medical information submitted and he was requesting a non-service disability due to Amyotrophic Lateral Sclerosis (ALS).
After discussion, Mr. Kemp made a motion to grant a non-service disability to John Bruce. Mr. Dew seconded the motion. The motion was approved UNANIMOUSLY by the Board.
Mr. Kemp then thanked the trustees on behalf of Mr. Bruce and his family.
BILLS: Systematic Financial Management submitted a bill for investment management fees for the period from 7/1/06 – 9/30/06 in the amount of $63,420.13.
Essex Investment Management Co. submitted a bill for investment management fees for the period from 7/1/06 – 9/30/06 in the amount of $61,586.74.
Agincourt Capital Management submitted a bill for investment management fees for the period from 7/1/2006 – 9/30/2006 in the amount of $45,515.73.
The Boston Co. submitted a bill for investment management fees for the period from 7/1/2006 –9/30/2006 in the amount of $37,869.84.
InTech submitted a bill for investment management fees for the period from 7/1/2006 – 9/30/2006 in the amount of $34,493.75.
The Northern Trust Co. submitted a bill for custodial services for the period ending 9/30/06 in the amount of $29,407.82.
RhumbLine Advisers submitted a bill for investment management fees for the period ending 9/30/06 in the amount of $13,799.64.
Stanley, Holcombe & Associates submitted a bill for Actuarial Consulting Services through October 17, 2006 in the amount of $5,745.
Cypen & Cypen submitted an invoice for professional services from 9/01/06 through 9/30/06 re Phillip Girrbach in the amount of $2,951.90.
Cypen & Cypen submitted an invoice for professional services rendered through 09/03/06 in the amount of $200.17.
The trustees discussed the cost incurred from the trading fees. It was decided to have the administrator look into a solution for reducing this expense. Ms. Wenguer will report to the Board as to her findings.
Ms. Wenguer also discussed the bill from the actuary and how to reduce this cost of $3,900. next year when changes are made to the Share Plan spreadsheet. She will discuss this with the actuary and get a price for next year prior to doing this project.
Mr. Curry then made a motion to approve payment of these bills with Mr. Burnam seconding the motion. The motion was approved UNANIMOUSLY by the Board.
PORTFOLIO REVIEW: Standish Mellon represented by Greg Curran and Beth Stone presented their portfolio review. This is a fixed income firm with $155 billion under investment. They reviewed their management leadership as well as their strategy to match the index return without an increase in risk level. They stated they are constantly monitoring the selection process.
This fund as of September 30, 2006 has a market value of $85,230,770. Year-to-date this bond index fund earned 3.07% with the Lehman Brother Index earning 3.06%. For three years, this fund earned 3.68% with Lehman earning 3.38%.
Chairman Seibert thanked Ms. Stone and Mr. Curran for their report.
Essex Investment Management Co. represented by David Goss and Adam Craig reviewed their portfolio. This is a growth stock portfolio. They have $3.4 billion assets under management. There have been several changes in their staff. One analyst left the firm and the Co-CEO who was responsible for market and client service has resigned. They assured the trustees that these changes had no effect on the portfolio.
Since inception 6/30/04 through 9/30/06, this portfolio earned 8.2% with the Russell 1000 Growth earning 12.2%. Year-to-date this portfolio earned –1.7% with the Russell 1000 Growth earning 3.0%.
They discussed their holdings and their high expectations for the future of growth stocks.
Chairman Seibert thanked them for their report. Mr. Burnam left the meeting at 2:25 P.M.
Asset Consulting Group represented by Jason Pulos. The trustees discussed their concern about the changes in Essex and requested that Jason report on this issue at the next meeting.
The beginning market value for the total fund year-to-date is $441,338.00. The ending market value for the same period is $443,227.00. For the quarter, Systematic returned 4.6%, InTech returned 5.2%, RhumbLine Large Cap returned 5.7%, Essex returned 2.0%, RhumbLine Mid Cap returned –1.1%, The Boston Co. returned 4.1%, Agincourt returned 3.9%, Mellon returned 3.8%.
Mr. Pulos reviewed the Essex portfolio due to the expressed concerns of the trustees. The trustees discussed other investment options open to them and requested that Mr. Pulos take a more active position in their educational process and well as in additional investment options. Mr. Pulos to step-up the educational process for the trustees.
Chairman Seibert thanked Mr. Pulos for his report.
INPUT FROM ACTIVE & RETIRED POLICE OFFICERS & FIREFIGHTERS: None.
ADMINISTRATOR’S REPORT – Share Plan Expenses: The trustees reviewed the Share Plan Expense Report for the year 2005 prepared by Ms. Wenguer. After this review, Mr. Rogers made a motion to adopt the proposed Share Plan Expenses. Mr. Kemp seconded the motion. The motion was approved UNANIMOUSLY by the Board.
Police Overtime: Funds are to be accounted for separately as per State Statute 99-1.
Pension Protection Act of 2006. Mr. Cypen advised that there has been no guidance in how this is to be handled. Payment may also have to be made to qualified plans other than the city plans. The trustees discussed preparing checks made payable to the insurance company and having the individual mail them personally. A list will be prepared for those people who are not a member of one of the city’s insurance plans.
Disability Update: Philip Girrbach. Mr. Cypen advised that depositions have been taken. He requested that Mr. Girrbach be examined by Dr. Thomas Goldschmidt for Post Traumatic Stress Syndrome (PTSD).
After discussion, Mr. Rogers made a motion to have Mr. Girrbach examined by Dr. Thomas Goldschmidt. Mr. Curry seconded the motion. The motion was approved UNANIMOUSLY by the Board.
Board Trustee Election: Ms. Wenguer advised the Board that Gary Martin, Jr. and Rich Fortunato were running for this position. After the election, she will advise of the results.
7th Member Seat: This seat is filled by a vote of the Board. This term of office ends December 31, 2006. The present member will stay until there is a replacement elected. Nominations are being accepted for this position. The seated Board members will elect a new member at the January, 2007 meeting.
Computer Replacement: The trustees discussed the need for new computers. After this discussion, Mr. Rogers made a motion to approve the purchase of two computers not to exceed $1500. each. Mr. Curry seconded the motion. The motion was approved UNANIMOUSLY by the Board.
Webmaster: The trustees discussed the fees other funds pay for this service. It was decided to have the administrator look into other Webmaster services and report at the next meeting.
FOR YOUR INFORMATION: No action.
There being no further business to be brought before the Board, Mr. Topor made a motion to adjourn at 3:30 P.M. with Mr. Dew seconding the motion. The motion was UNANIMOUSLY approved.
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