Police Officer's Pension Board - October 25, 2016MIAMI SHORES VILLAGE
POLICE OFFICERS’ RETIREMENT SYSTEM BOARD MEETING
The Miami Shores Village Police Officers’ Retirement System Board and General Employee Pension
Board jointly met on Tuesday, October 25, 2016 at the C. Lawton McCall Community Center. The Police
Officers’ Board meeting was called to order at 8:30 AM. The following individuals were present for the
meeting:
POLICE OFFICERS’ RETIREMENT SYSTEM BOARD
Herta Holly
John Bolton
Natasha McKay
Also present were Pension Plan Administrator, Doug Falcon, Dave West of the Bogdahn Group, and
Pension Attorney Adam Levinson. Melissa Moskovitz from the actuarial firm of Gabriel, Roeder Smith
participated in a portion of the meeting via telephone.
APPROVAL OF MINUTES – July 28, 2016
Mr. Bolton moved approval of the July 28, 2016 Board Meeting Minutes. Ms. McKay seconded the
motion and the vote was unanimous in favor of the motion.
PUBLIC COMMENT:
Police Officer Joshua Koop asked about the Board Member selection process for police officers. Ms.
Estep provided a brief response and asked that Officer Koop speak with her following the meeting for
additional information if he wished.
APPROVAL OF PAYMENT WARRANT: 2016-018
Mr. Bolton moved to approve Payment Warrant number 2016-018. Ms. McKay seconded the motion
and the vote was unanimous in favor of the motion.
RATIFY PAYMENT WARRANTS: 2016-13, 2016-14, 2016-15, 2016-16, and 2016-17
Mr. Bolton moved to ratify payment warrants as provided. Ms. McKay seconded the motion and the
vote was unanimous in favor of the motion.
ACTUARY – MELISSA MOSKOVITZ: ACTUARIAL VALUATION REPORT AS OF OCTOBER 1, 2015
Ms. Moskovitz attended the meeting via telephone and provided highlights of the Police Officers'
Retirement System Fund’s valuation report compiled by Gabriel Roeder Smith (GRS). Ms. Moskovitz
reviewed, among other data, the required contributions, the calculation method and the rate of return.
Ms. Moskovitz spoke of the Plan Valuation being required every year as compared to the General
Employee Fund only every other year. In addition, Ms. Moskovitz spoke of the State 185 Funds being
provided to the Village. Ms. Moskovitz advised the Board that GRS is recommending that the Board look
to lower the rate of return (ROR) further over the next number of years, from 7.5% to 7.0%.
Mr. Bolton moved to accept the Actuarial Valuation Report as of October 1, 2015. Ms. McKay seconded
the motion and the vote was unanimous in favor of the motion.
INVESTMENT CONSULTANT REPORT
Mr. Dave West from The Bogdahn Group provided information regarding the Plan’s fiscal year end 2016
performance. Mr. West provided an overview of the various Plan investment earnings, rankings, cash
flow, and the fees associated with the Fund’s management. Specifically, Mr. West indicated that the
Fund’s gross rate of return closed the year up 10.09%. Based on discussions during the previous Board
Meeting and in an attempt to lower management fees, Mr. West recommends moving the Wells Fargo
SGRNX funds to a newer, lower share class; Wells Fargo SGRNIX. A brief discussion regarding the
recommendation ensued with Mr. West explaining the conceptual difference between the two funds
and the fact that there is no difference in the type of investments covered within the funds. Mrs. Holly
moved to accept the Investment Consultant’s recommendation to move the Wells Fargo SGRNX funds to
the Wells Fargo SGRNIX account. Mr. Bolton seconded the motion and the vote was unanimous in favor
of the motion.
Mr. West then spoke of The Bogdahn Group’s rebranding and name change which is scheduled for early
2017. He indicated that the people within the company will not change. He referenced the
informational letter included in the front of the Investment Performance Review. Mr. West reviewed
the company’s fee structure and the fact that fees have not increased, with the contract guarantee
expiring as of June, 2011. Mr. West proposed a new fee structure for the company to continue to
provide investment consulting services. Following a discussion regarding the proposed fee increases,
Mr. Bolton moved to approve increasing the consulting fees to $22,000 effective October 1, 2016 with a
3% inflation increase for a contract period of three years (through September 30, 2019). Ms. McKay
seconded the motion and the vote was unanimous in favor of the motion.
ATTORNEY REPORT
Attorney Adam Levinson provided a handout regarding legal services. In addition, Attorney Levinson
spoke about the State 185 funds available to the Village and some of the acceptable options for use of
the funds. Attorney Levinson stressed that use of the funds should be negotiated and determined by
the Village. He further spoke about a new State requirement that will require a Plan amendment to
include a provision in the Plan for a “share plan”. Attorney Levinson provided a brief explanation of a
“share plan” to the Board and indicated that he would send a proposed ordinance to the Village once
drafted. Ms. Estep advised the Board she would provide a copy of the proposed ordinance to them for
their information. Attorney Levinson requested a motion regarding authorization of a plan
amendment. Mrs. Holly moved to authorize the plan amendment as proposed by Attorney Levinson.
Mr. Bolton seconded the motion and the vote was unanimous in favor of the motion.
ADMINISTRATOR REPORT
Mr. Falcon provided the Board with a listing of the 2017 Board Meeting dates and advised the Board
that the Chapter 185 funds had been received and deposited by the Village. In addition, Mr. Falcon
requested the Board vote on authorizing payment to Board Members to reimburse expenses incurred
during authorized travel. The payment would then be ratified by the Board. Mr. Bolton moved to
approve payment of authorized expenses related to Pension Board education and training, ratification
of which will occur at the next scheduled Board Meeting. Mrs. Holly seconded the motion and the vote
was unanimous in favor of the motion.
ADJOURNMENT
The General Employee Pension Board meeting was adjourned at 10:45 AM.
_________________________
Herta Holly, Chair
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Barbara A. Estep, MMC
Village Clerk