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Police Retirement Pension Board - 04-18- 2017MIAMI SHORES VILLAGE POLICE OFFICERS’ RETIREMENT SYSTEM BOARD MEETING The Miami Shores Village Police Retirement Board and General Employee Pension Board jointly met on Tuesday, April 18, 2017 at the C. Lawton McCall Community Center. The Police Officers’ Retirement Board meeting was called to order at 8:30 AM. The following individuals were present for the meeting: PRESENT: Herta Holly John Bolton Cliff Vickers Also present were Pension Plan Administrators, Yolanda Shea and Doug Falcon, Dave West of AndCo Consulting (formerly The Bogdahn Group), and Pension Attorney Adam Levinson. APPROVAL OF MINUTES – January 31, 2017 Mr. Bolton moved approval of the January 31, 2017 Board meeting minutes. Officer Vickers seconded the motion and the vote was unanimous in favor of the motion. PUBLIC COMMENT: Officer Josh Koop spoke of the still pending issue of electing new Police Officer Board Members to the Board. Attorney Levinson responded indicating that he had been in touch with the attorney for the Police Union and they had agreed that an election could be conducted either through the Pension Plan Administrators, the Village Clerk’s office, or the Union. Following the discussion, Councilwoman Holly moved to have the Pension Plan Administrators and Village Clerk’s office conduct the board member election. Officer Vickers seconded the motion and the vote was unanimous in favor of the motion. THE BOSTON COMPANY – Meghan Timbas Ms. Timbas, representing the Boston Company, was present and spoke briefly regarding the firm’s investment strategy and performance throughout their relationship with the Village’s Plan. She spoke of the Company’s decision to lower their rates and associated fee schedules. Ms. Timbas confirmed that the lower fee structure will be effective April 1, 2017 and represents a 5 basis point reduction for the Plan funds. In response to questions posed regarding a comparison of fees amongst Plan Managers, Mr. West confirmed that the fee structure is very competitive and in-line with other, similar Plan Manager fees. A discussion regarding the Plan’s investment strategy took place, specifically active versus passive investments and the use of index investing. Mr. West advised the Board that his firm continues to monitor the Fund’s balances and that the Investment Policy calls for automatic rebalancing if necessary. Mr. West stated that it is his recommendation to continue to follow the Policy’s guidelines as approved by the Board. Subsequent to these discussions, Mr. Bolton moved to approve the amendment to the Investment Advisory Agreement. Officer Vickers seconded the motion and the vote was unanimous in favor of the motion. APPROVAL OF PAYMENT WARRANT: 2016-0026 Mr. Bolton moved to approve Payment Warrant number 2016-0022. Mr. Benton seconded the motion and the vote was unanimous in favor of the motion. RATIFY PAYMENT WARRANTS: 2016-0024 and 2016-0025 Mr. Bolton moved to ratify payment warrants 2016-0024 and 2016-0025 as presented. Officer Vickers seconded the motion and the vote was unanimous in favor of the motion. INVESTMENT CONSULTANT REPORT Mr. Dave West of AndCo Consulting, formerly The Bogdahn Group, briefly reviewed the Plan’s quarterly performance, indicating that it was an excellent quarter with a 4.5 % increase and ahead of benchmarks. Specific investment performances referenced are attached hereto and made a part hereof. Mr. West spoke of the positive fund performance by Wells Fargo, hopefully signaling an upward trend in the Fund’s performance. Mr. West clarified that the planned share class conversion was accomplished however the original Fund to which monies were to be transferred was closed and therefore, funds were transferred to the Wells Fargo SGRHXH fund, resulting in a 5 basis point reduction in fees. ATTORNEY REPORT Attorney Adam Levinson distributed an article from NASRA (National Association of State Retirement Administrators) regarding a comparison of State run retirement plans. In addition, Mr. Levinson provided an update of a legislative issue relating to the mortality tables used by the actuary. Attorney Levinson introduced an additional item relating to a retired police officer, Raymond Newby. It has been reported that Mr. Newby did not receive the retiree COLA for the last number of years and Attorney Levinson provided a copy of the ordinance relating to retiree COLA’s to determine that there had not been a policy change. Following a brief discussion amongst the Board and Attorney Levinson, Ms. Estep advised that the non-payment must have been an oversight by the Finance Department and that it certainly would not have been a change in policy. Attorney Levinson requested that the Board vote whether or not to pay Mr. Newby the back COLA benefit owed him. Mr. Bolton then moved to correct the COLA deficiency and pay Mr. Newby the COLA benefit owed. Officer Vickers seconded the motion and the vote was unanimous in favor of the motion. ADMINISTRATOR REPORT Mr. Falcon advised the Board that there has been a request by the Salem Trust Insight Investment Bond Manager to utilize a new computer software program which represents a technology update. The new software system provider is Electra Information Systems and will be used to provide data collection services only. There is no trading authority associated with the upgrade. Mr. West confirmed the information and recommended that the Board authorize the request as presented. Officer Vickers moved to authorize Salem Trust to work with Electra Information Systems. Mr. Bolton seconded the motion and the vote was unanimous in favor of the motion. ADJOURNMENT The Police Officers’ Retirement Board meeting was adjourned at 9:48 AM. _________________________ Herta Holly, Chair _________________________ Barbara A. Estep, MMC Village Clerk