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05-10-1983 Regular MeetingMiami Shores Village PENSION BOARD MEETING May 10, 1983 A meeting of the Miami Shores Pension Board was held on Tuesday, May 10, 1983, 8:00 a.m., at the Village Hall, with the following Board members in attendance: Mayor Kevin P. O'Connor Councilwoman Elspeth Jensen Mr. Joseph Gionfriddo Mr. William H. Walker, III Village Manager Les Forney Ms. Ann Vigneron Chief John Fletcher Absent: None Also present: Mr. Wally Wilson, Actuary, Wyatt Company Mr. Donald G. Berdine, Mr. John Reneger, representa- tives of North Carolina National Bank, Trustee Ms. Gail Macdonald, Pension Administrator Mr. William F. Fann, Jr., Village Attorney As a first item of business Mr. Forney advised that the Board should elect a Chairman and a Secretary. Upon motions duly made and seconded, Mayor O'Connor was elected Chairman and Ms. Ann Vigneron, Secretary. APPROVAL OF MINUTES OF JAN. 26, 1983. Mr. Forney moved that the minutes be approved as written. The motion was seconded by Mr. Walker and passed unanimously. APPROVAL OF TRUST AGREEMENT BETWEEN NCNB AND VILLAGE. A final draft of the Trust Agreement prepared and approved by NCNB and the Village Attorney was presented to the Board. The following points were discussed: (a) No mention of fee schedule. Mr. Forney stated that this was in their original proposal. (b) Should there be a statement on the bonding of the Trustee? NCNB answered there is a Federal law govern- ing their bonding. (c) The Board previously agreed not to go into real estate investments but is listed in the Agreement. NCNB is aware of the Board's instructions but left it in to provide the option. The Board also specified no foreign investments. (d) Agreement is covered by Florida law. Mayor O'Connor suggested that it stipulate jurisdiction will be in Dade County Court. Mr. Fann will prepare this amendment. (e) Mr. Walker pointed out that something is missing in the first sentence of Paragraph 13. Mr. Fann will reword. 5/10/83 -2- Following discussion Mr. Walker moved that the Agreement with the changes noted be approved. The motion was seconded by Mr. Gionfriddo and passed unanimously. QUARTERLY ASSET AND TRANSACTION REVIEW. Mr. Donald Berdine, investment manager of the pension funds, presented the Board with an Investment Portfolio dated May 10, 1983, and reviewed the following items: (1) Investment Objections, (2) Asset Mix and Portfolio Holdings, (3) Macroeconomic Parameters and Outlook, and (4) Investment Strategy. It was noted that the Pension Plan should achieve an average annual investment return of at least 12% over a 3 to 5 yr. time period. Mr. Berdine also reviewed the present assets of the Plan with changes that may be accomplished in the future. REVIEW OF ACTUARIAL VALUATION AS OF JANUARY 1, 1983. Mr. Wilson reviewed the Wyatt Company's annual valuation of the Plan, with the conclusion that it is in a good cash flow position. APPROVAL OF RETIREMENT BENEFITS FOR HENRY BOLIEK, Recreation Dept. A request had been made by Henry Boliek for early retirement benefits to begin July 1, 1983. Late information was received that the planned closing on his house was being delayed and Mr. Boliek's termination might be extended. This led to a discussion of the number of times an employee can request computation of pension benefits and cost of same. Mr. Wilson suggested two in a year as reasonable, initial cost $50-$70. It was decided to go ahead on this approval pending adjustment if necessary. Mr. Gionfriddo moved that Henry Boliek's retirement benefits in the amount of $369.10 be approved as of July 1, 1983, with the further stipulation that the Board will meet again if reconsideration is requested. The motion was seconded by Mrs. Jensen and passed unanimously. OLD AND NEW BUSINESS. Mr. Forney brought up a proposal, to assist moveability of department heads, to exempt department heads from the Pension Plan with their contributions being made to other plans. Mr. Forney stated he would like to have the ordinance changed to allow the department heads that option. Mr. Walker pointed out that this could be discriminating against other employees& also might not be acceptable to the IRS. -3 - Chief Fletcher suggested as a salary supplement money could be put in a deferred compensation plan, without removing these employees from the Village Pension Plan. No action was taken. ADJOURNMENT: 9:15 a.m. • APPOVE Ke in P. O'Connor Mayor • Secretary 5/10/83 -r/i,zeAz,141 1. Name MIAMI SHORES PENSION FLAN Estimation of Early Retirement Income 2. Social Security number 4110 4. 5. 6. 7. 8. f 9. 10. Sex Date of birth Date of employment Assumed early retirement date Normal retirement date Age as of early retirement date Age as of normal retirement date Credited service as of early retirement date 11. Monthly average final compensation as of early retirement date Year 1983 1982 1981 1980 Basic Compensation Paid $ 8,132.80 $ 15,922.66 $ 14,461.00 $ 6,185.50 $ 44,701.96 No. of Months 06 12 12 06 36 12. Accrued monthly retirement income as of date of termination of service (a) 2% (.0200) x $1,241.72 = $24.83 (b) Item 10. x Item 12.(a) = 13. Monthly retirement income payable to the participant for life, first payment payable on May 1, 1990 • 14. Actuarial reduction factor for early retirement at age 55.167 years T E 6)/7J.Qt COMPANY Henry L. Boliek 267-36-6875 Male April 26, 1928 March 28, 1955 July 1, 1983 May 1, 1990 55.167 years 62.000 years 28.250 years $1,241.72 $ 701.45 $ 701.45 0.5262 Page Two 15. Monthly earlyretirement benefit payable during the lifetime of the participant, first payment commencing as of July 1, 1983 ($701.45 x .5262) • Henry L. Boliek $ 369.10 Calculated by: THE WYATT COMPANY Actuaries for the Plan Prepared by: ( z.6241._ Relezceeefi,L. ^ Reviewed by: Ua �c4gWn Jean/ Mauldin Wallace W. Wilson, F.S.A. Adm nistrative Assistant Actuary THE Wait COMPANY