05-11-1987 Regular MeetingMIAMI SHORES VILLAGE
PENSION BOARD MEETING
The meeting of the Miami Shores Village Pension Board was called to order 8:00 a.m.
on Monday May 11, 1987 by Mayor Spero Canton with the following in attendance:
Board Members:
Also Present:
Mayor Spero Canton
Dr. Robert Butler
Mr. William Heffernan
Mr. William Walker
Sergeant Jack Ulmer
Ms. Gail Macdonald,Acting Village Manager
Mr. William Fann, Village Attorney
Mr. Jim Rizzo and Ms. Susan Pouch
of Kruse, O'Connor & Ling
Mr. Bill Eickhoff of Eickhoff & Pieper
Ms. Karen Cole, Mr. Gerald Bott and
Mr. David Newman of Kidder Peabody
Ms. Ann Held and Mr. Scott Givens of
NCNB
Absent: Mr, John M. Moore
1. Election of a new Chairman
Dr. Robert Butler made a motion, in following tradition, to nominate Mayor
Spero Canton as Chairman of the Pension Board. The motion was seconded by
Mr. Heffernan.
The motion passed unanimously.
2. Election of a new Secretary
Dr. Butler made a motion to nominate the acting Village Manager as Secretary
of the Pension Board until such time as the new Village Manager takes office.
Mr. Walker Seconded the motion.
The motion passed unanimously.
3. Presentation by Kruse, O'Connor & Ling
Mr, Rizzo presented to the Board the annual actuarial evaluation for the period
ending January 1, 1987. He reported that income from investments was sufficient
to offset salary increases and that the annual contribution of $266,780 was ba-
sically the same as last year's requirement. Mr, Rizzo pronounced the plan
actuarially sound with 98% of accrued actuarial liabilities covered by assets.
Mr, Walker made a motion to adopt the report and was seconded by Dr. Butler.
The motion passed unanimously.
Ms. Macdonald made a motion to approve payment of the annual bill submitted by
Mr. Rizzo for services rendered. The motion was seconded by Dr. Butler.
The motion passed unanimously.
4. Presentation by Eickhoff & Pieper
Mr. Pieper presented a favorable report on the equity portion of the portfolio.
indicating earnings of 13.4% for the first quarter. Mr. Walker made a motion to
adopt the report and the motion was seconded by Dr. Butler.
The motion passed unanimously.
5. Presentation by NCNB
Mr. Scott Givens reported to the Board the fixed income portfolio yielded 1.4% for
the quarter, while the real estate fund yielded 2.9%.. Mr. Givens reported that the
fixed income portion of the portfolio as of 3/31/87 amounted to $2,510,345. Of
this amount, 65% is invested in collective funds operated by NCNB. While describing
the underlying securities for the consolidated income fund, Mr. Givens advised that
1% of that fund was invested in Canadian Government securities. Ms.. Macdonald
expressed concern that pension funds were invested in foreign securities inasmuch as.
foreign securities may prove to be illegal investment for municipal pensions. She
reported that the pension plan study was due back from the attorney within the next
two weeks and that this issue should be revisited at the next quarterly meeting.
Mr. Walker expressed his concern for the management fee required by NCNB for the
management of their own collective funds and suggested that the Board may wish
to reconsider this trustee relationship at the next scheduled meeting. Mr.
Heffernan made a motion to adopt the report as presented by NCNB and Dr. Butler
seconded the motion.
The motion passed unanimously.
6. Presentation by Kidder Peabody
Mr. Gerald Bott of Kidder Peabody reported that overall the Plan was performing well.
He recommended an increase in the Real Estate allocation to 15% by the end of the
year. The Board. Agreed to reconsider asset allocation at the next meeting. Sergent
Ulmer made a motion to adopt the report and it was seconded by Mr. Walker.
The motion passed unanimously.
7. Mr. Walker made a motion to approve the minutes of the February 13, 1987 meeting.
The motion was seconded by Mr. Heffernan.
The motion passed unanimously.
8. Mr. Walker made a motion for adjournment and it was seconded by Mr. Heffernan.
The motion passed unanimously.
Spero / anton
Mayor
Gail Ma,'c`donal d
Acting Village Manager/Secretary