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05-25-1990 Regular MeetingMIAMI SHORES VILLAGE PENSION BOARD MEETING MAY 25, 1990 The meeting of the Village of Miami Shores Pension Board was called to order by Vice Mayor Spahn at 8:07 a.m. The following were In attendance: 111 Board Members: Mr. William Walker Sgt. Jack Ulmer Mr. Steven Johnson Vice Mayor Herb Spahn Gall Macdonald Also Present: Ms. Laura Webb - Eagle Asset Management Mr. William Eickhoff - Eickhoff & Pieper Ms. Ann Miseyko, Mr.Scott Givens, Mr. James Jackson - NCNB Ms. Karen Cole, Mr. Gerald Bott and Mr. David Newman - Merrill Lynch Mr. William Fann, Village Attorney Ms.Patricia Varney, Plan Administrator Absent: Mayor Henry Courtney Ms. Jean Bryant 1. Actuarial Report - Mr. Wallace Wilson of the Wyatt Company presented to the Board the annual actuarial evalu- ation for the period ending January 1, 1990. Mr. Wilson told the Board that the Plan is very well funded and with a change in the Actuarial assumptions and good Plan experlence the overall performance of the Plan Is good. The Investment rate of return assumption Is at 8%. The assumed rate of pay Increases Is at 6 1/2 %. The cost to Miami Shores Village dropped approximately 2% of pay basically because of the actuarial gain. • 2. Quarterly Investment Review Mr. Bill Eickhoff reported that the performance of the Plan was satisfactory for the period ending 1989. Ms. Laura Webb of Eagle Asset Management reported that the portfolio was showing approximately a 14% loss for the year ending December 1989. Ms. Webb explained to the Board that the stocks that were Invested In were not performing with consistency but Eagle felt that the overall performance of the portfolio will staballze and the portfolio will benefit with their choice of Investments. Mr. Bott of Merrill Lynch asked Ms. Webb to explain why such a decline and he also asked why their method of Investing was not working for this particular Plan. Ms. Webb responded that the decline was due to the various conditions In the stock market and that Eagle was a combination growth and value manager and that the companies that Eagle Invested In are strong and sound and will show an Investment return In time. Ms. Webb Indicated that the choices made by Eagle In the companies that they Invested In were confident. Mr. Scott Givens of NCNB reported that the overall perfor- mance of the Plan was good with a very positive cash flow. Mr. Givens Informed the Board that he will have NCNB's Real Estate Investor present at the next Quarterly Review so that the Board can ask various questions that pertain to the Real Estate portion of the portfolio. Mr. Gerald Bott of Merrill Lynch reported to the Board that Eagle Asset Managements performance Is down 15% from the inception. Mr. Bott requested Ms. Webb to have an Investment objective study done with Mr. Wally Wilson and report back to the Board at the meeting on August 24, 1990. Mr. Bott also requested that Eagle Asset Management clarify to the Board In writing, within the next 30 days, as to the selling discipline of Eagle Asset Management. Mr. Bott reported the overall performance for NCNB was a 2/10 of 1% gain and the outlook for the future Is positive. Mr. Bott recommended that the Board not Increase Its Real Estate portion at this time. Mr. Bott reported that the overall performance of the port- folio is good and the performance Is strong. 3. Review of Services and Fee Structure proposed by Mr. James Jackson of NCNB. Mr. Jackson proposed an overall 16.5% Increase for the next 3 years effective January 1, 1991. After discussion, the Board Informed Mr. Jackson that the proposed rate increase was not acceptable and that he should resubmit a proposal that shows no more than an overall 14% increase. Mr. Jackson Informed the Board that he would have to discuss this proposition with NCNB and would be able to get back to the Pension Board with a new proposal In approximately 4 - 6 weeks. The Pension Board agreed with this and will review Mr. Jackson's new proposal and have a discussion of the new fee at the August meeting. 4. Mr. Walker made a motion to approve the payment of Invoice 04387 dated 4/4/90 In the amount of $5,232.88 for Eickhoff & Pieper's Statement of Management Fees. The motion was second- ed by Sgt. Ulmer and passed unanimously. 5. Sgt. Ulmer made a motion to approve payment to NCNB for six invoices totaling $11,226.32. The motion was seconded by Mr. Steve Johnson and passed unanimously. 6. Mr. Walker made a motion to approve the early retirement benefit for Ms. Marion Weedall In the amount of $314.53 per month. The motion was seconded by Mr. Steve Johnson and pass- ed unanimously. (Copy attached) 7. Mr. Walker made a motion to approve the minutes from the March 15,1990 Pension Board meeting. The motion was seconded by Ms. Macdonald and passed unanimously. 8. Ms. Miseyko of NCNB Informed the Board that with the assistance of Mr. David Newman of Merrill Lynch, they will try to modify the amount of reports that are distributed to the Board for their review and report back to the Board Just what the modification would be. Sgt. Ulmer brought before the Board a discussion regarding a change In the definition of "compensation" In the Pension Ordinance. He suggested that overtime be Included In the calculation for compensation. Sgt. Ulmer also brought up the discussion of Including cost of living benefit for all retirees in the Pension Plan. There was not a consensus among the Boardmembers present to support these propsals. Mr. Walker made a motion to adjourn at 12:10 p.m. and the motion was seconded by Mr. Spahn. Gall M:r donald,Secretary Mr. Herb S•-�j, ce Mayor MIAMI SHORES PENSION PLAN Calculation of Early Retirement Income 1. Name 2. Social Security number 3. Date of birth 4. Date of employment 5. Early retirement date 6. Normal retirement date 7. Age of participant as of early retirement date 8. Credited service as of early retirement date 9. Final monthly compensation as of early retirement date Basic No. of Year Compensation Paid Months 1990 1989 1988 1987 $ 10,565.00 18,313.00 18,311.00 6.985.83 $ 54,174.83 7 12 12 5 36 10. Accrued monthly retirement income as of early retirement date (a) 2% (.0200) x $1,504.86 = $ 30.10 (b) $30.10 x 16.000 years 11. Monthly normal retirement income payable for life, commencing as of normal retirement date, February 1, 1995 12. Early retirement reduction factor for retirement at age 57.500 years 13. Monthly early retirement income payable to the participant for life, commencing as of August 1, 1990 ($481.60 x 0.6531) rue lL/11 eribilDASIV Marion L Weedall 027-24-1585 January 18, 1933 July 12, 1974 August 1, 1990 February 1, 1995 57.500 years 16.000 years $1,504.86 $481.60 $481.60 0.6531 $314.53 Page Two Marion L Weedall Based on information supplied by the Village and the provisions of the Pian, the monthly early retirement income payable to Ms. Marion L Weedall is $314.53. The first payment is due on August 1, 1990, with the last payment being the payment due in the month in which death occurs. Calculated by: THE WYATT COMPANY Actuaries for the Plan Prepared by: LQJ4..iW2a. • ` Reviewed by: Y J Mauldin Lawrence F. Wilson, A. .A. A ministrative Assistant Actuary THE 6ryaii COMPANY