MIAMI SHORES GE-MINUTES MEETING-9-24-20191
MIAMI SHORES VILLAGE
GENERAL EMPLOYEE PENSION BOARD MEETING
The Miami Shores Village General Employee Pension Board and Police Retirement Board
jointly met on Tuesday, September 24, 2019, at the C. Lawton McCall Community
Center. The General Employee Pension Board meeting called to order at 8:20 AM. The
following individuals were present for the meeting:
PRESENT: ABSENT:
Tom Benton, Pro-Tem Chairman Bob Williamson, Trustee
Angie Dorney, Trustee
Averill Dorsett, Trustee
Thomas J. Longman, Trustee
Jim McCoy, Trustee
Also present were Pension Plan Administrators, Doug Falcon and Yolanda Shea FHA-TPA
Benefit Administrators, Inc., Karen Russo, Salem Trust, Dina Lerner and Melissa
Moskovitz, Gabriel Roeder Smith (GRS), Dave West, AndCo Consulting, and Pension
Attorney Adam Levinson, Klausner Kaufman Jensen & Levinson.
A motion made by Trustee Dorney seconded by Trustee McCoy to appoint Trustee Benton
as Pro-tem Chairman motion passed unanimously.
APPROVAL OF MINUTES
The Pro-Tem Chairman asked if anyone had any questions regarding the minutes of the meeting held April
30, 2019 there being no questions,
A motion made by trustee Longman seconded by trustee Dorsett to approve the minutes of the
meeting held April 30, 2019 motion passed unanimously.
PUBLIC COMMENTS:
None
ACTUARY – Melissa Moskovitz & Dina Lerner – Gabriel Roeder Smith (GRS)
Ms. Moskovitz advised the GE Board of trustees that GRS prepares at the request of the Board an actuarial
valuation every other year. In keeping with that arrangement, she would not report on an actuarial valuation until
the next FYE October 1, 2019. She advised the trustees that if they have any questions regarding the actuarial
valuation she presented for FYE 2017 she would be happy to answer those questions.
Mr. Levinson reported that while the board is not required to have an annual valuation should they wish to
perform an annual valuation for the General Employee Plan this can be done. Ms. Moskovitz reported that 80% of
the plans she administers perform an annual valuation. The plan would not experience an increase in cost going
from every other year to performing one every year because the fees for every other year is higher due to the
information that has to be reviewed for the year the valuation is not done.
Ms. Moskovitz pointed out that there is a question regarding whether or not interest on DROP accounts when the
member exits the DROP and the money is in the account for 90 days from the day the member exits. It is her
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understanding that the interest is paid on the balance ending the exit date and not the balance when it is
withdrawn.
Mr. Levinson pointed out that in the General Employee Plan once a member exits the DROP the monies are
required to be withdrawn within 90 days however, that is not the case in the Police Plan. In the Police Plan, the
participant who exits the DROP can leave the funds in the plan and the IRS rules would apply.
There being no questions, this concluded the actuary report.
CUSTODIAN – Karen Russo – Salem Trust
Ms. Russo discussed the TMI Trust Company dated April 1, 2019 regarding Combined Synergies of TMI Trust
Company and Salem Trust Company. She confirmed that there are no material changes to how you interact with
Salem. The relationship Manager will not change, the account numbers will remain the same, the account access
will not change, there will be no impact on the client service and Salem’s services will not change. What does
change is clients will now have access to the combined strengths of both organizations. TMI has deep corporate
trust expertise as a bond trustee and escrow agent, while Salem is the recognized leader of custody services to
government retirement plans and institutional clients. All the fees will remain the same.
Mr. West reported that from AndCo’s respective the transition has been very transparent and are very comfortable
with the acquisition’s transition.
The next item Ms. Russo discussed is how the Money Market Sweep Vehicle works. She highlighted some of the
small changes, which do not affect the current process in place. Mr. West advised the Board that he is not
recommending any change to the current fund that the plan is participating in. The purpose of these moneys is to
provide for absolute liquidity. These moneys are not being invested in these funds to generate total returns; the
return advantage is secondary benefit primary focus of the fund selection is on safety principle dollar in dollar out;
the basis for the Goldman Sachs Treasury Fund the Plan is in.
She updated the board on the Quarterly Salem Trust Service Report results.
The next item she discussed was the existing letter of direction on file regarding the monies directed to Insight
investment, which is a manager no longer active on the plan; the letter of direction needs to be amended to
reflect funds, be sent to Integrity as per Mr. West’s recommendation. Mr. West pointed out the one amendment
to the standing letter of direction would be to reassign that allocation to Integrity Fixed Income which is the fund
that replaced Insight investment.
A motion made by trustee Dorney seconded by trustee Dorsett to authorize the Pro-Tem Chairman
to sign the standing letter of direction addressed to Salem Trust as stated above motion passed
unanimously.
The next item Ms. Russo discussed is the Mutual Funds. Ms. Russo advised they have mutual funds that are in a
mutual fund account, the suggestion is to move all your mutual funds in to the receipts disbursement account and
close the mutual fund account. This way all the mutual funds will be in one account the receipts and
disbursement account. By consolidating these accounts, the Plan would also reduce the annual fee by $500. Mr.
West has been working with Ms. Russo discussing operational efficiencies; while they were doing revisions this
item was identified. Is an opportunity to save $500 in fees? If the board agrees to move forward, he will work
with Ms. Russo to move forward accordingly. Mr. Levinson asked if there were any disadvantages consolidating
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these account, Mr. West responded that moving in this direction would make the process more fluid and sees no
disadvantage to move in this direction.
A motion made by trustee Dorsett seconded by trustee Dorney to consolidate the mutual fund
account with the receipts and disbursement account as state above motion passed unanimously.
Mr. Levinson advised the board that for the next meeting he will be bringing a memo regarding identity theft and
cyber-crime as it has been an increasing problem affecting all sorts of businesses small, large, cities, etc. He
asked Ms. Russo what type of cyber liability insurance does Salem Trust have. Ms. Russo confirmed Salem Trust
does have cyber coverage and would be happy to provide a copy of the policy and terms. Ms. Russo went over
the internal process they have in place to ensure the information received at Salem go through all the security
checks prior to releasing funds and or sensitive information.
This concluded Ms. Russo’s report.
APPROVAL OF WARRANT
The Pro Tem Chairman asked if anyone had any questions regarding Warrant 2019-0009 in the amount of
$1,300.00 there being no questions,
A motion made by trustee Dorsett seconded by trustee McCoy to approve Warrant 2019-0009 in
the amount of $1,300.00 motion passed unanimously.
RATIFY PAYMENT WARRANTS
The Pro-Tem Chairman asked if anyone had any questions regarding Warrants 2019-0006 in the amount of
$13,424.71 there being no questions,
A motion made by trustee Dorsett seconded by trustee Longman to approve Warrant 2019-0006
in the amount of $13,424.71 motion passed unanimously.
The Pro-Tem Chairman asked if anyone had any questions regarding Warrant 2019-0007 in the amount of
$5,304.50 there being no questions,
A motion made by trustee Dorsett seconded by trustee Longman to approve Warrant 2019-0007
in the amount of $5,304.50 motion passed unanimously.
The Pro-Tem Chairman asked if anyone had any questions regarding Warrant 2019-0008 in the amount of
$5,919.01 there being no questions,
A motion made by trustee Dorsett seconded by trustee McCoy to approve Warrant 2019-0008 in
the amount of $5,919.01 motion passed unanimously.
The Pro-Tem Chairman asked if anyone had any questions regarding Warrant 2019-0010 in the amount of
$3,295.31 there being no questions,
A motion made by trustee Dorsett seconded by trustee Longman to approve Warrant 2019-0010
in the amount of $3,295.31 motion passed unanimously.
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INVESTMENT
Mr. West discussed the Miami Shores Village General Employees’ Pension Fund
Investment Performance Review Ending June 30, 2019. He reported that it is highly unlikely to
make the actuarial required rate of return this year.
Below some of the market highlights:
Broad asset class returns were positive during the 2nd quarter of 2019 with both equity and
fixed income indices extending their year-to-date gains. Us stocks outperformed international
stocks during a very volatile quarter. Equity indices rose to start the period as progress in
global trade negotiations outweighed signs of weakness in macroeconomic data.
Similar to US markets, international markets were volatile during the 2nd quarter as investors
reacted to mixed economic data, heightened geopolitical uncertainty, particularly around the
outlook for global trade and Brexit, and increased accommodation in central bank policy with
the European Central Bank and People’s Bank of China pledging additional stimulus if needed.
Fixed income returns were in line with equities during the 2nd quarter. The broad market
Bloomberg Barclays Aggregate Index returned 3.1% as a more dovish stance from the Fed and
other global central banks pushed interest rates lower across the US Treasury Yield Curve.
US equity index returns were modestly positive across the style and capitalization spectrum for
the 2nd quarter.
During the quarter, higher market cap stocks outperformed lower market cap stocks across the
style spectrum with the only exception being the outperformance of mid cap growth stocks
relative to large cap growth stocks.
Growth indices outperformed value indices across the market cap spectrum during the 2nd
quarter. Growth stocks have outperformed value in nine of the last ten quarters.
Sector performance was broadly positive across large cap sectors for the 2nd quarter. There
were gains for ten out of eleven sectors within the Russell 1000 Index during the period with
four sectors outpacing the return of the Index.
Quarterly results for small cap sectors were generally worse than their large capitalization
counterparts with only two of eleven sectors (industries and utilities) outperforming their
corresponding large cap equivalents.
After reviewing the detail results of the Plan, Mr. West advised the Board that he would like to make an asset
recommendation. The fund is 8% overweight in the growth manager, Wells Fargo and a little underweight by
just under 3% in the value manager, Boston Company (Mellon). He thinks is a good time to take the overweight
off the table take the profits move back to the center line and have an equal allocation to the growth manager
and equal allocation going to the value manager. His recommendation is to rebalance the domestic equities back
to policy targets.
A motion made by trustee Longman seconded by trustee Dorsett to accept the investment
consultant’s recommendation as stated above motion passed unanimously.
This concluded the investment report.
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ATTORNEY REPORT
Mr. Levinson advised the board he did not have a report but for the next meeting he will be discussing
as previously stated cyber-coverage.
ADMINISTRATOR REPORT
Mr. Falcon advised the Board that he distributed a memorandum regarding members who exit the DROP and how
interest is calculated. There is no one affected by this at this time, however, would like to discuss further at the
next meeting.
There being no further business,
A motion made, seconded and passed unanimously to adjourn the meeting at
9:32 AM.
Approved: Minutes approved at the 2/10/2020 meeting