MIAMI SHORES VILLAGE-POLICE MINUTES 4-24-2018-1
MIAMI 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 24, 2018 at the C. Lawton McCall Community Center. The Police Officers’
Retirement Board meeting called to order at 8:19 AM. The following individuals were present for
the meeting:
PRESENT: ABSENT:
Alice Burch, Chairwoman Jonathan Meltz, Trustee
John Bolton, Secretary
Christopher McDonald, Trustee
Shmueal Mauda, Trustee
Also present were Pension Plan Administrators, Doug Falcon and Yolanda Shea, FHA-TPA Benefit
Administrators, Inc., Dave West, AndCo Consulting, and Pension Attorney Adam Levinson, Klausner
Kaufman Jensen & Levinson.
APPROVAL OF MINUTES
The Chairman asked if anyone had any questions regarding the minutes of the meeting January 23,
2018, there being no further questions,
A motion made by Trustee Bolton seconded by Trustee McDonald to approve the January 23, 2018
minutes motion passed unanimously.
PUBLIC COMMENT:
None
APPROVAL OF PAYMENT WARRANT: 2018-0006
The Chairman asked if there were any questions regarding Warrant 2018-006 for $2,375.00, there being
no questions,
Trustee Bolton moved to approve the payment of Warrant number 2018-006 for $2,375.00 Trustee
McDonald seconded the motion, the motion passed unanimously.
RATIFY PAYMENT WARRANTS: 2018-002 through 2018-005
The Chairman asked if anyone had any questions regarding Warrant 2018-005 $18,295.36, Trustee Bolton
asked Mr. Falcon to explain the charges made by Gabriel Roeder Smith (GRS) and how they bill.
Mr. Falcon advised the Board that GRS charges on a regular basis for the actuarial valuation; they also
charge for each retirement calculation, DROP calculation, and Employee Statements. In addition they are
involved in the calculations and correspondence regarding Chapter 185 Reserve and Annual Revenue
based on default rules. Attorney Levinson pointed out that the State has now delegated the responsibility
of submitting the data to them to the Plan as a result the actuary submits the information to the state on
behalf of the Plan. The information requested from the State is very extensive and as a result has created
more work for the actuaries.
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Trustee Bolton moved to approve the payment of Warrant number 2018-005 for $18,295.36 Trustee
McDonald seconded the motion, the motion passed unanimously.
The Chairman asked if anyone had any questions regarding Warrant 2018-004 $626.49,
Trustee Bolton moved to approve the payment of Warrant number 2018-004 for $626.49 Trustee
McDonald seconded the motion, the motion passed unanimously.
The Chairman asked if anyone had any questions regarding Warrant 2018-003 $676.62,
Trustee Bolton moved to approve the payment of Warrant number 2018-003 for $676.62 Trustee Mauda
seconded the motion, the motion passed unanimously.
The Chairman asked if anyone had any questions regarding Warrant 2018-002 $17,455.81,
Trustee Bolton moved to approve the payment of Warrant number 2018-002 for $17,455.81 Trustee
McDonald seconded the motion, the motion passed unanimously.
INVESTMENT
Mr. West presented the Miami Shores Village Police Officers’ Pension Fund Investment Performance
Review Period Ending March 31, 2018
A few of the market status were as follows:
Market returns were broadly negative across major equity and fixed income indices as they
finished a highly volatile 1st. quarter of 2018. Broad domestic and international equity markets
pulled back modestly following a very strong 2017.
International equity market benchmarks were mixed with developed markets posting modestly
negative returns and emerging markets earning a slightly positive result. This is a continuation
of the 2017 trend of emerging market outperformance relative to developed market equities.
Interest rates on the US Treasury Yield Curve ended the 1st quarter of 2018 higher across all
maturities. The movement in rates was considerable during the quarter as markets reacted to
the greater likelihood of increasing inflation and a more restrictive than expected US monetary
policy going forward.
Us equity index returns were mixed across the style and capitalization spectrum to start 2018
with growth indices being the best performers.
During the quarter, small cap stocks outperformed mid and large cap equities. The small cap
Russell 2000 Index returned -01% during the period, while the large cap Russell 1000 Index
returned -0.7%.
Growth indices outperformed value indices across the market cap spectrum for the fifth straight
quarter and were all able to post a positive return for the 1st quarter of 2018.
Sector performance was largely negative across large cap sectors for the 1st quarter of 2018.
Only two of eleven sectors had positive returns for the quarter and only three of eleven
economic sectors outpaced the Russell 1000 Index return.
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Small cap sector results were mixed relative to their large capitalization counterparts. Only
three of eleven economic sectors outpaced the Russell 2000 Index return for the quarter and
posted positive results for the period.
Using S&P 500 sector valuations as a proxy for the market, forward P/E ratios for eight of the
GICS sectors were higher than their long-term averages a quarter-end.
Mr. West pointed out that although Insight investment is a fixed income manager with low interest,
it has been down in terms of investment results and while he is not suggesting terminating Insight
at this time, he is suggesting that at the next meeting they review other options in terms of bond
managers. Attorney Levinson advised the Trustees that once they see the various options
presented by Mr. West, if they wish they could have the managers come to a meeting and present
their product. The Board asked Mr. West to perform a review of the various bond managers and
report at the next meeting his findings.
This concluded the investment report.
ATTORNEY
Attorney Levinson reminded the Board to complete Form 1 and asked the administrator to circulate
the form to all the Trustees to ensure they are sent in to the state by the deadline date of June
30th.
Attorney Levinson asked the administrator to update the Board as to the status of the State Report
filing. Mr. Falcon reported that he is far along in completion of the report; however, he is still
waiting to obtain information regarding the mutual consent between the Plan and the Village. He
also pointed out that the report requires the signature of the Chairman and Secretary. Attorney
Levinson pointed out that having the Chairman and Secretary sign the state report represents that
they are relying on the individuals who completed the report such as the actuary, administrator,
etc.
Attorney Levinson advised the Board that the one bill that did pass is the Senate Bill 376 regarding Post
Traumatic Stress Disorder (PTSD). This Bill amends Section 112.1815 of Florida Statutes, governing
employment-related accidents and injuries for first responders. A prior version of the bill failed to
advance last year but gained momentum this year in the aftermath of the Marjory Stoneman Douglas
High School shooting. While the bill primarily intended to extend workers' compensation benefits under
Chapter 440, the bill is anticipated to apply broadly to first responder "benefits," including Chapters 175
and 185.
Trustee Bolton asked how Bill 376 affects the Pension Plan. Attorney Levinson responded to the
Board that although is a workers’ comp bill, if the Plan were to get an application from a member
for a disability pension retirement benefit as a result of a service connected condition as stated on
Bill 376, this Board would have to review the circumstances surrounding the disability claim. If the
Board finds the disability claim meets the requirements stated on Bill 376 then the member may be
entitled to a disability benefit.
This concluded the attorney’s report.
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ADMINISTRATOR
Mr. Falcon advised the Board that Cutwater Investor Services Corp. acquired Insight Investment
and because of the name change, they are asking the new Investment Management Agreement be
executed. Attorney Levinson advised the Board that he has read the agreement, and sees nothing
on the agreement that locks them for a specific period. The agreement allows them to terminate
the business relationship at any time.
The Board did not feel comfortable signing the Cutwater Investor amended agreement and as such
the following motion was made,
A motion made by Trustee Bolton seconded by Trustee McDonald to oppose signing the Cutwater
Investor amended agreement, motion passed unanimously.
Mr. Falcon also advised the Board that along with the amended agreement Cutwater Investor is
requesting an updated authorization form with the names of both Mr. West and himself. The
purpose of this authorization is to ensure that Cutwater Investments accepts direction from Mr.
West and himself regarding the investment advisory account. For example, the letter of direction
to Cutwater Investor would be in instances where they need to raise funds to cover pension plan
related expenses.
A motion made by Trustee Bolton seconded by Trustee Mauda to authorize the Chairman to sign
the new authorization document as stated above motion passed unanimously.
Mr. Falcon advised the Board that Karen Russo from Salem Trust would like to visit both boards;
the trustees asked Ms. Russo visit at the October pension meeting.
This concluded the administrator report.
The next pension meeting will be July 31, 2018.
There being no further business a motion made by Trustee Bolton seconded by Trustee Mauda to
adjourn the meeting at 9:33 a.m.
Approved: At pension meeting 7/31/2018