Police Officers' Pension Board - January 26, 2016MIAMI SHORES VILLAGE
POLICE RETIREMENT SYSTEM BOARD MEETING
The Police Retirement Board and the General Employee Pension Board jointly met on Tuesday, January
26, 2016 at the C. Lawton McCall Community Center. The Police Retirement Board meeting was called
to order at 8:25 AM. The following individuals were present for the meeting:
GENERAL EMPLOYEE PENSION BOARD
Herta Holly ABSENT: Cliff Vickers
Ivonne Ledesma
John Bolton
Natasha McKay
Also present were Dave West of the Bogdahn Group, Pension Attorney Adam Levinson; Salem Trust
representatives Bradley Rinsem and Karen Russo; Melissa Algayer from the actuarial firm of Gabriel,
Roeder Smith, and Finance Director, Holly Hugdahl.
Also present were Doug Falcon and Yolanda Shea from FHA-TPA.
APPROVAL OF MINUTES – October 22, 2015
Ms. Ledesma moved approval of the October 22, 2015 Board meeting Minutes. Mr. Bolton seconded
the motion and the vote was unanimous in favor of the motion.
ELECTION OF BOARD SECRETARY:
Board Member Natasha McKay volunteered to be the Board Secretary. By a consensus of the Board,
Natasha McKay was named Secretary.
INTRODUCTION AND REPORT BY THE PENSION BOARD ATTORNEY: Adam Levinson
Board Attorney Adam Levinson was introduced and provided information to the Board regarding his and
his firm’s background, his work and alliance with Steve Cypen and his familiarity with the Village’s plans.
APPROVAL OF PENSION PLAN ADMINISTRATORS
Ms. Hugdahl provided information regarding the process of soliciting, interviewing and recommending
selection of a firm to provide Plan Administration services to the Village’s pension boards.
Representatives from the recommended firm, FHA-TPA, were present and responded to questions
posed by the Board Members and provided a scenario of the typical transaction process. Details of the
term of the contract were highlighted. Mr. Bolton moved to hire FHA-TPA as the Police Officers’
Retirement System Board Plan Administrators. Ms. Ledesma seconded the motion and the vote was
unanimous in favor of the motion.
APPROVAL OF PENSION ADMINISTRATOR AUTHORIZATION LETTER FOR SALEM TRUST
Based on the approval to hire FHA-TPA, formal authorization by the Board to allow Salem Trust to work
with FHA-TPA is required for the records. Ms. Ledesma moved to approve execution of the approval
letter. Ms. McKay seconded the motion and the vote was unanimous in favor of the motion.
Mr. Bradley Rinsem, President and Chief Executive Officer and Karen Russo, Senior Vice President and
Regional Manager of Salem Trust were present and provided information regarding the services
provided by Salam Trust.
APPROVAL OF SIGNATORIES FOR SALEM TRUST
Ms. Hugdahl presented signature forms for completion by authorized signers for plan documents and
payment warrants. Ms. Ledesma moved approval of the signature forms as presented. Ms. Holly
seconded the motion and the vote was unanimous in favor of the motion.
APPROVAL OF PENSION ADMINISTRATOR AUTHORIZATION LETTER FOR GABRIEL, ROEDER SMITH &
COMPANY.
Ms. Melissa Algayer from the Village’s actuarial firm of Gabriel, Roeder Smith & Company was present
and offered information to the Board regarding their services.
Based on the approval to hire FHA-TPA, formal authorization by the Board to allow Gabriel, Roeder
Smith & Company to work with FHA-TPA is required for the records. Ms. Ledesma moved to approve
execution of the approval letter. Ms. McKay seconded the motion and the vote was unanimous in favor
of the motion.
APPROVAL OF PAYMENT WARRANT: 2016-002
Ms. Ledesma moved to approve Payment Warrant number 2016-002. Ms. McKay seconded the motion
and the vote was unanimous in favor of the motion. Ms. Ledesma requested clarification on a number
of the invoice billings contained on the payment warrant.
APPROVAL OF NATASHA McKAY TO ATTEND FPPTA CONFERENCE
Ms. Ledesma move to approve Ms. McKay’s attendance at the upcoming FPPTA Conference. Mr. Bolton
seconded the motion and the vote was unanimous in favor of the motion.
INVESTMENT CONSULTANT REPORT
Ms. Ledesma left the Board Meeting at this time.
Mr. Dave West from The Bogdahn Group provided information regarding the Plan’s performance as of
12/31/15. Mr. West provided an overview of the various Plan investments and their rankings.
Specifically, Mr. West indicated that the termination of Manning & Napier as per the Board’s
instructions had been completed in January. Specific investment performances referenced are attached
hereto and made a part hereof.
Ms. Hugdahl advised the Board that the Village’s annual contribution to the Plan would be done in the
next number of weeks. Based on this information Mr. West asked for approval to rebalance the funds
to be in line with Investment Policy Statement targets.
Mr. Bolton moved to approve the appropriate rebalancing to Investment Policy Statement targets. Ms.
McKay seconded the motion and the vote was unanimous in favor of the motion.
Mr. West provided information regarding a recommended change to the Investment Policy Statement,
summarizing the changes and proposed target levels; realigning the equity and domestic allocations,
and aligning the Police Retirement Pension funds with the General Employee Pension funds. In addition,
the new Policy Statement would reflect the change in the assumption rate at 7 ½%.
Mr. Bolton moved to approve the recommended changes to the Investment Policy Statement. Ms.
McKay seconded the motion and the vote was unanimous in favor of the motion.
PUBLIC COMMENT
None
The Police Officers’ Retirement System Board meeting was adjourned at 10:45 AM.
_________________________
Herta Holly, Chair
_________________________
Barbara A. Estep, MMC
Village Clerk