General Employee Pension Board - January 29, 2015MIAMI SHORES VILLAGE
GENERAL EMPLOYEE PENSION BOARD MEETING
The Miami Shores Village General Employee Pension Board and Police Retirement Board jointly met on
Thursday, January 29, 2015 at the C. Lawton McCall Community Center. The General Employee Pension
Board meeting was called to order at 8:25 AM. The following individuals were present for the meeting:
GENERAL EMPLOYEE PENSION BOARD
Herta Holly
Tom Benton
Averill Dorsett – arrived during discussion regarding Payment Warrant #2015-002A
Angela Dorney
Jim McCoy
Also present were Dave West of the Bogdahn Group, Pension Attorney Steve Cypen and Elizabeth
Keeley, Administrative Services Coordinator.
APPROVAL OF MINUTES – October 30, 2014
Mr. Benton moved approval of the October 30, 2014 Board meeting Minutes. Mr. McCoy seconded the
motion and the vote was unanimous in favor of the motion.
APPROVAL OF PAYMENT WARRANT: 2015-002 and 2015-002A
Ms. Keeley explained that due to the number of retirement calculations and payments pending, she split
the payments into two warrants. Ms. Dorney moved to approve payment warrant #2015-002. Mr.
Benton seconded the motion and the vote was unanimous in favor of the motion. Mr. Benton moved
to approve payment warrant #2015-002A. Ms. Dorney seconded the motion and the vote was
unanimous in favor of the motion.
APPROVAL OF ACTUARIAL COSTS FOR CHAPTER 2013-100 IMPLEMENTATION PACKAGE.
Ms. Keeley briefly explained the fact that new State requirements stipulate that certain information
related to the Village’s pension plans be posted on the Village website. To that end, the actuary firm will
need to develop the applicable reports and make the appropriate calculations. Mr. Cypen provided
additional information and recommended that in addition to the required Plan reports, the Board
approve an extra report which calculates a rate of return 2% above the Plan’s assumed rate of return.
Mr. West indicated that the Bogdahn Group has reviewed the proposal and concurs with Mr. Cypen’s
recommendation.
Ms. Dorsett moved to approve actuarial costs in the amount of $3,000 (to include the 2% above the
Plan’s assumed rate of return report) for Chapter 2013-100 implementation. Mr. Benton seconded the
motion and the vote was unanimous in favor of the motion.
DISCUSSION AND POSSIBLE ACTION REGARDING APPLYING IRC SECTION 415 LIMITS TO DROP PLANS
Mr. Cypen spoke briefly of his memo included in the agenda package and indicated that the
determination and clarification regarding the Section 415 limits was positive news.
INVESTMENT CONSULTANT REPORT
Mr. Dave West from The Bogdahn Group provided information regarding the Plan’s performance as of
12/31/14. Mr. West provided an overview of the various Plan investments and their rankings.
Specifically, Mr. West indicated that the Bogdahn Group is continuing to watch Manning & Napier due
to their performance rankings and suggested that the Board allow them one more quarter or consider
further action at that time. In addition, Mr. West indicated that the watch on Cutwater will be lifted as
Cutwater’s operations have not changed due to ownership/management changes instituted earlier last
year. Specific investment performances referenced are attached hereto and made a part hereof.
Board Members again questioned Manning & Napier’s poor performances and expressed their
frustrations which were shared by Mr. West. A lengthy discussion ensued regarding Manning & Napier
and international investments in general. At the conclusion of the discussions, the Board agreed that
Mr. West would bring recommendations for replacing Manning & Napier as the international asset
manager, including both an active manager and an indexing option. In addition, the Board agreed that
rebalancing of the international funds should be deferred until the issue with the international funds is
resolved.
DISCUSSION AND POSSIBLE ACTION REGARDING THE BOGDAHN GROUP CHANGE OF INTERNAL
CONTROL NOTIFICATION
Mr. West summarized the information contained in his memo regarding a change in the firm’s
management structure and per the requirements of the FEC, official notification is provided to the
Board. Mr. West is requesting consent for a change of internal control. Ms. Dorsett moved to approve
the requested change of internal control of the Bogdahn Group. Ms. Dorney seconded the motion and
the vote was unanimous in favor of the motion.
OTHER BUSINESS – SALEM TRUST LETTER REGARDING DEPARTURE OF ACCOUNT MANAGER, CINDY
FARROW
Ms. Keeley announced that Cindy Farrow from Salem Trust had submitted her resignation with Salem
Trust. Ms. Keeley indicated that her departure should not affect any of the Village’s transaction.
PUBLIC COMMENT
None
The General Employee Pension Board meeting was adjourned at 9:40 AM.
_________________________
Herta Holly, Chair
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Barbara A. Estep, MMC
Village Clerk