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02-11-1993 Regular MeetingMIAMI SHORES VILLAGE PENSION BOARD MEETING FEBRUARY 11, 1993 A meeting of the Village of Miami Shores Pension Board was called to order by Chairman Johnson at 8:10 A.M. The follow- ing were In attendance: Board Members: Also Present: Mr. Steven Johnson Mr. Joseph Charles Officer Tim Dearden Mr. Walter Latimer Mr. Henry Courtney Mr. Richard Trumble Ms. Gail Macdonald Mrs. Patricia Varney, Plan Administrator Mr. William Fann, Village Attorney Mr. Steve Palmquist and Ms. Barbara Ochipintl of Kruse, O'Connor & Ling Mr. Joe Luksis and Mr. Ray Dunleavy of Sun Bank Mr. Don Bryant of Barnett Bank Trust Mr. Tom Cochran of NCNB Ms. Karen Cole of Merrill Lynch 1. Introduction of new Pension Board member. With the retirement of Lt. Ulmer, Mrs. Varney Introduced Officer Timothy Dearden as the new Police representative to the Pension Board. 2. Quarterly Investment Review Sun Bank - Mr. Joe Luksis reported the first quarter Is off to a good start and the fund Is performing well. The total fund return for the quarter ending December 1992 was 4.9%. NCNB - Mr. Tom Cochran reported the Real Estate Fund Is per- forming well. Mr. Cochran also stated that at the end of the fourth quarter of this year, NCNB will be offering a proposal of a "standby trust" funded by NationsBank, to allow plans who want to terminate their fund to receive their Investment back earner rather than to wait for liquidation. This process is under review by various regulatory agencies as well as the Department of Labor. Barnett Bank - Mr. Don Bryant reported that the portfolio Is performing well. The total fund return for quarter ending December 1992 was 3.4% Merrill Lynch - Ms. Karen Cole reported the overall gain for the 1st quarter was very good and the two managers have done a fine Job with the Equity portfolio. She also stated that the Real Estate portion Is being handled as best as It can be at this point In time and that the Real Estate portion pre- vents the portfolio from showing a larger gain. Mr. Courtney was called away at 9:30 A.M. 3. Discussion and possible action regarding Older Workers Benefit Protection Act. Mrs. Varney opened the discussion stating that the Board, besides deciding the benefit effective date, needs to address the retro contribution date for the four potential em- ployees. According to Sec 18-48 of the Pension Ordinance, "if any employee remains In service of the Village for the ten years or more, his creditable service shall be computed from his date of employment". Employee pension contributions do not start until the second year of service. Mr. Fann recommended that the Board address the Issue of effective date separate from the benefit to be retro for the four em- ployees. After much discussion, Mr. Latimer moved to recommend the effective date for eliminating the upper age limit be October 1, 1992. Mr. Charles seconded the motion and it passed unanimously. The Board also appointed Kruse, O'Connor & Ling to prepare the Impact statement and decided that the four employees should not contribute to the Plan until October 1993. 4. Presentation of 1992 Actuarial Report. Mr. Palmquist Introduced his assistant, Ms. Barbara Ochipintl, to the Board. Mr. Palmquist presented the Actuarial Evalu- ation Report for fiscal year ending September 1992. Contri- butions for FY 1994 are protected to be $179,902. The Plan is In sound fiscal position. Mr. Johnson was called away at 10:12 A.M. Ms. Macdonald, substituting as Chairperson, called a recess at 10:15 A.M. and reconvened at 10:25 A.M. 5. Request approval of payment to Barnett Bank Trust Company in the amount of $6,636.61 for the quarterly management fee ending December 31, 1992. Mr. Latimer moved to approve payment In the amount of $6,636.61 to Barnett Bank Trust Company for the quarterly management fee ending December 31, 1992. Mr. Charles second- ed the motion and It passed unanimously. • 6. Request approval of payment to Kruse, O'Connor & Ling in the amount of $7,320 for annual fee and services rendered. Mr. Latimer moved to approve payment In the amount of $7,320 to Kruse, O'Connor & Ling for annual fee and services rendered. Mr. Trumble seconded the motion and it passed unanimously. 7. Request approval of payment to Sun Bank In the amount of $7,963.63 for quarterly management fee. Mr. Latimer moved to approve payment In the amount of $7,963.63 to Sun Bank for quarterly management fee. Mr. Trumble seconded the motion and it passed unanimously. 8. Request approval of reimbursement to Miami Shores Village In the amount of $250.03 for services rendered by Carson, Linn and Adkins. Mr. Latimer moved to approve payment In the amount of $250.03 to Carson, Linn and Adkins for services rendered. Mr.Trumble seconded the motion and it passed unanimously. 9. Approval of the Minutes of the January 12, 1993 meeting. Mr. Latimer moved to approve the Minutes of the January 12, 1993 meeting. Mr. Trumble seconded the motion for dis- cussion. Ms. Macdonald stated that the wording on Item 10 - Approval of Lt. Jack Ulmer's retirement benefit, needed to be further clarified. After further discussion, Mr. Latimer withdrew his previous motion and moved to defer approval of the Minutes until further clarification of this item on the January 12, 1993 Minutes. Mr. Trumble seconded the motion and it passed unanimously. 10. A motion for adjournment was made at 11:03 A.M. • Gal Mac•onald, Secretary Steven J n n, Mayor