11-08-2001 Regular Meeting•
•
MIAMI SHORES VILLAGE
POLICE PENSION BOARD REGULAR MEETING
NOVEMBER 8, 2001
1. CALL TO ORDER
The regular meeting of the Miami Shores Village Police Pension Board was held on Thursday,
November 8, 2001 in the Conference Room of the Village Hall. The meeting was called to order at
8:05 A.M.
2. ROLL CALL
In order for the record to reflect those present the roll was called with the following members present:
Robert Blum
Sergeant Robert Frame
Detective Timothy Dearden
Absent: William Heffernan
Mark Ulmer
Also Present: Steve Cypen, Pension Board Attorney (via telephone)
Mark A. Malatak, Plan Administrator
Lisa Keeley, Recording Secretary
EMERGENCY AGENDA ITEM
Due to the chairman, Mr. Ulmer, being absent, Detective Dearden moved that Mr. Blum be elected as chairman.
Sgt. Frame seconded the motion and the vote was unanimous in favor.
6. MINIMUM BENEFITS OF CHAPTER 185 - Steve Cypen
Mr. Cypen explained that any and every year there is an increase in premium tax dollars, a calculation to meet
statutory minimums must be made until such time that the plan reaches all statutory minimums as per Chapter 99-
1. His suggestion was to inquire of the actuary, Mr. Palmquist, the cost to calculate the Chapter minimum
benefits, if any, could be enacted with the additional $7,944 dollars not to exceed a cost value of $1,000. Ifthere
are any minimum benefits that can be bought, there would be an amendment to the plan and the benefit would
have to be bought.
Mr. Malatak arrived at this time.
As indicated in his letter of October 23, 2001, Mr. Palmquist was certain that the additional revenue could not
buy all cash renumeration to be pensionable as well as changing the normal form of pension from a single life
annuity to a ten year certain and life annuity. Mr. Cypen indicated that if the fee for the study was excessive, an
inquiry of Mr. Palmquist to revise the letter of October 23, 2001 to reflect that none of the items could be bought
with the additional revenues this year.
Mr. Cypen clarified the use of the excess premium tax dollars indicating that before you can use the excess
monies of 1997 (which will accumulate until you get all of the minimum benefits), you have to use that source of
money for those benefits until you get all five options.
Detective Dearden moved to authorize and direct the actuary, Mr. Palmquist, to perform a study as outlined in his
October 23, 2001 letter providing the purchase cost for statutory minimum benefit items numbered (2), (4) & (5)
and providing the actuarial fee does not exceed $1,000.00. Sgt. Frame seconded the motion and the vote was
unanimous in favor.
•
•
Police Pension Board November 8, 2001 Page 2
3. APPROVAL OF PAYMENT WARRANT
Detective Dearden moved for approval of the payment warrant as submitted. Sergeant Frame seconded the
motion and the vote was unanimous in favor.
7. OTHER BUSINESS - Custodial Services
Mr. Malatak explained that although Fiduciary Trust did meet the minimum requirements of the Board, the
Fiduciary Trust administration advised that there would still be an interrelationship between Colonial Trust
Services and Fiduciary Trust. As such, Salem Trust was selected, meeting the fee structure of six basis points as
long as both plans utilize their services. In the event one plan moves services, an alternate fee structure would
become effective. The contracts were reviewed and approved by Mr. Cypen and await signature.
Mr. Malatak introduced the representatives from the new plan custodian, Salem Trust. Mr. Robert Darr and Ms.
Karen Russo. Mr. Darr gave a brief explanation of Salem Trust as a custodial company. Ms. Russo provided
information on the day to day custodial services provided through her offices. She did confirm experience with
the Village Pension Plan through Barnett Bank some years prior. The Board welcomed Salem Trust services.
4A. INVESTMENT MANAGERS REPORT - Davis, Hamilton, Jackson - Janna Woods
Ms. Woods reported that the fund's total market value as of September 30, 2001 was $4,886,741. The total
equity return for the period ending September 30, 2001 was -14.6% beating the Russel 1000 Growth by 4.8%
with a fixed income return of 4.9% compared to the Lehman Intermediate Government Corporation. Ms. Woods
reviewed the market factors that prompted the company's buys and sells for the quarter.
4B. INVESTMENT MANAGERS REPORT - The Boston Company - Carl O'Connell & Paul Leahy
Mr. O'Connell gave a brief overview of the equities held and the investment objectives utilized by the firm in their
value -oriented investment process. The total market value of the fund ending September 30, 2001 was
$4,944,376. The total portfolio return for the period was -7.4% with an equity return of -13.7% and a fixed
income return of 6.0% beating the Merrill Lynch Government/Corporation return of 5.0%.
5. CONSULTANTS REPORT - Merrill Lynch - Larry Cole & Jeff Swanson
Mr. Cole reviewed the investment managers returns for the quarter. He noted that the stock market had a poor
quarter, but the bond market kept the fund from major losses with the 40% asset allocation. The total combined
fund balance at September 30, 2001 was $9,822,490 with a return of -6.6%. In comparison to other Florida
municipal funds, the Police plan ranked in the fortieth percentile.
8. ADJOURNMENT
The November 8, 2001 regular meeting of the Police Pension Board was adjourned at 9:30 A.M. as Sgt. Frame
left at this time and there no longer was a quorum.
obert Blum, Acting Chairperson
Lisa Keeley, Recording Secretary