DRAFT
CITY OF
PENSION
PLAN BOARD OF TRUSTEES
November
29, 2010 - 8:35 A.M.
Present:
JF
RD
AT
MB
EL
KS
JT (Absent)
1. CALL TO ORDER by Chair Dielman
2. DISABILITY – INITIAL HEARING FOR CARLTON
RAMSEY
Scott Christian
explained the procedure in processing disability claims, review of criteria to
consider in awarding or denying a disability claim.
Claimant William
Carlton Ramsey’s application for permanent disability was considered by the
Board of Trustees. Dr. Johnson,
independent medical examiner, expertise is an giving occupational opinion about
individuals performing jobs. Reviewing
records collected and based on records collected, will determine if evidence is
sufficient to grant disability.
Options: Records sufficient to
support criteria, one or more have not been established by recorcs, can deny
one or more criteria have not been established; third option would be based on
a piece of information is missing, can recess, request add info and come back to
consider the disability. If deny, second
proceeding would be formal evidenciery hearing stage, add evidence would be
sought. If deny at formal evidenciary
can request an appellate process before circuit court judge.
SC job is same
fiduciary claim as Trustees, normal job to advise board with regard to legal
issues. Burden of proof is collected by
atty, burden of proof to establish the pension lies with the claimant.
Standard of proof ,
with regard to criteria have to use, is prponderence of the evidence.
RD: Board can ask questions of the claimant. Majority vote is required.
CRITERIA: 22-88; Totally and permanent disabled to
perform duties assigned or another position or job insimilar classification
& rank and unable to perform employment with another employer.
Total &
Permanent disabled: Toally; meet all 3
criteria; can’t do gainful employment
Permanent: Condition from medical definition is can’t
perform gainful employment; if condition can be fixed, cured or corrected, not
permanent. If permanent: disqualifying conditions.
COLLECTED Records:
recving SS disability 2010; 26 years of employment
Blake Medical,
Lakewood Ranch Medical Center, Sergio Perez, primary physician; Dr. Ropppp……….
Indepdent Dr.
Richard Johnson Lakeside Occupational-information reviewed with the Board; not
disabled, weight loss would cure existing conditions;
Mr. Ramsey: Applied for disability, family medical leave
for 3 months; at time no other job available, applied for medical
disability. Approved by SS
disability. (SS disability subject to
review; not sure of all the criteria, criteria is also unable to perform
gainful employment; Board look only at
ordinance to make determination. In event will not grant is eligibile for early
retirement
In line/off line
not relevant to this case.
AT: Worked at PW; because of sleep disorder, had
to remove did not have any other jobs,
EL: Any efforts made to determine if suitabvle
for employment in any other department of the city;
JF: Statement had no desire to return to work; if
able to find position would he return?
Mr. Ramsey would return if give me a job, wouldn’t be very much;
wouldn’t be able to drive because of FDOT, on machine & still fall asleep,
sill have medical conditions, missed work from asthma; have always only driven
a truck
AT: History, had solid waste, ran garbage truck,
when contracted service out, remained with the city
KS: Weight loss surgery not covered by insurance;
what process did Ramsey apply – with BCBS wouldn’t pay that operation. Check with prior medical insurance carrier,
switched to BCBS
JF: Normal retirement: 30 yeas/55
Can retire at 55
with reduction
SC: Option is not germain to consideration for
disability pension
SC: May well be unable to do any job; Board has
to focus if this a permanent situation; nothing can be done to improve his
condition; can’t require him to have surgery; is there a non surgical way to
improve his condition
Approve,
disapprove, need add information
EL:: To deny or disapprove based upon factor
criteria has not been met and claiminant has not
JF second
Claimant has right
to reques forman evidencary hearing 5-0
SC: Will do order to state has been denied. Ramsey can request or apply for early
retirement. If apply todaym, can begin
first of December.
BOARD:
3. APPROVAL OF MINUTES (TAB
1)
Action Request: Motion to approve the August 30, 2010 minutes. JF
4. INVESTMENT REVIEW
Smith Barney will review
the investment performance for the quarter ending September 30, 2010.
Charlie Mulfinger: Much better this quarter
Strong July; housing and
employment high, bid Aug; Sept
QE2 buy gov’t securities,
best Sept since 1939
Fundamentals of economy
GDP 2.5%,
ISM Mfg, above expectation
Job: 151,000 in private sector
Reviewed has market
performed SP 11.3, DOW 11, Russell 13 Rusel valu 10
Intl 16.5 emerging 18.2
Plan’s value at September
30, 2010 is $8,370,391.49, a gain
Make a motin to rebalance
because o9ut of range of 62.5%
Reviewed managers; Eli
Saltzman, se port mgr for Lord Abbot resigned, will perform due diligence to
make determination about keeping as mgr ;
discussed Saltzman’s reason for resignation, liked ability to direct how
research structure; taking a year off to spend more time with family Anticipate will put LA on watch
Not recommending replace
Renaissance but performed a search; have only had since 9/07.
Up 8.8 for quarter; bm 9.2
up less because of high quality mgrs; above assumption for year.
Compliance checklist:
Up 4.5% since last year,
thru 11/24
UBS has que, about a year
before can enter the real estate mgr.
Private r/e as a compliment to fixed income; Minimum $1,000,000 – by
time in que could be $10,000 which would be 10%; have ability to decline to
invest in the quet
JF: What about Golden? Since 3/07; Not recommend change because no
change in people or process.
Institutional or private
real estate (page 3) much lower volatility; does well in econ gwith & job
creation, GDP growth; low inflation; job grwth, strong consumer spending. Will be considering CORE properties, looking
for cash flow in 4% range
UBS presenting education
because of $1mill deposit requirement; US portfolio
US Trumbull
Property Fund Wayne Zorger presented organization & investment process. 30
year of experience on investment committee 14. Billion in assets under management
Value added and core
investments since 1978 ;32 year performance track record, diversification; qty
cash distribution; low leverance
Can w/d with notice w/I 60
days provided no block; The que is out one year, to allow portfolio mngment
team to perform due diligence to benefit portfolio.
AT: Could work will with hedge funds to stabilize
& remove volatility; can w/d with notice; only twice since 1978 have
blocked w/d; most recent block 2-3 quarters
Requested breakdown of
investors
CM recommend investment of
a portion from the bond portfolio.
Would have to changed
Investment Police to reflect a 10% investment range;
UBS Real Estate is being
sued in connectiuon with Madoff hedge fund case.
MOTION: AT
Authorize rebalancing of portfolio to target. El 5-0
MOTION: Join the que with USB
JF: Can decide and discuss before the que is up;
no fee, but paperwork must be completed; attorney fees involved; not big as ordeal; CM-=Morgan Stanley not
investment agent
RD: Don’t oppose cuing up; would like more
opinion on this approach; want more info
EL: Lowest leverage at 16%; track record since
1978. Experience of people; process,
operation
MOTION: initiate
procee to apply to USB… to be placed in their cue and direct SC to redirect
docs. EL/KS 5-0
5. APPROVAL OF EXPENSES
A) Christiansen & Dehner: July (disability expense), August, September,
October, 2010
B) Foster & Foster: November 11, 2010
C) Florida Municipal Insurance Trust
Action Request: AT/KS Motion to
ratify payment of the expenses as presented.
JF: Scott-disability
claim total $
Medical pass through from SC office; total
about $4,000; $1500 medical exam 5-0
6. PROPOSED 2011 MEETING DATES (TAB
3)
Action request: Motion to approve the 2011 meeting schedule as presented. JF/EL
5-0
7. APPROVAL:
DROP PARTICIPATION (TAB
4)
Action Request: Motion to acknowledge and approve the entry of George A.
David into the Plans’ Deferred Retirement Option Plan. JF/KS
5-0
8. DISCUSSION:
IRS DETERMINATION LETTER
Talked about at last mtg about whether or not
to apply to IRS to determine if Plan meets IRS requirements for tax qualified
pension plan; not legally required to make application. IRS changed position regarding governmental
pension plans to provide assistance to gov’t plans. SC the Plan has all the requirements to meet
the IRS tax qualifications, but may be issues to timeliness of the changes that
have been made. Of 60 meetings, only 8
have made determination to do application; will share info on the 8 that have
received the letter or issues with any of the 8 clients, that info will be
shared among all the firm’s clients.
Currently in cycle E expiring 1/31/11; If don’t do now will have another
chance in 2013. ICE Miller Law Firm will
assist. Range 10-20 include atty fees,
IS filing fee and any potential penalties.
If Plan found to be not tax qualified, will
pay taxes on employee contributions and benefit accruals. Voluntary application takes care of issues;
ultimately city would pay penalties
Motion: Application
for tax determination letter or revisit in 2013.
JF Defer submittal of IRS letter to future
date deter by this Board. EL 5-0
9. ATTORNEY’S REPORT
Investment Policy amended
8/30;
Terms expiring RD, EL, JT
expiring 2011 get reappointed EL on next agenda
Summary Plan description
required every 2 years; by mext mtg.
MOTION: To auth counsel to update SPD JF/AT
Physical year end rpt
Pension Letter #2 (Get from CM)
10. OTHER BUSINESS
A) DROP statement update.
B) Appointed officer’s opt-out notification
letter.
JF: DROP Statement all participats select the
fixed rate option at 6.5% vs market. Is
language consistent with what other plans have; FRS still has 6.5% as
well. Couple of plans that have changed
or are considering changing to a lower rate.
JF: During budget discussed defined benefit vs
defined contribution; looking longer term.
SC: Have had cities that have
done studies to look at other options, some have closed db and gone to dc
plans; leaving current in & putting new in dc plans; couple have
closed. DC not nearly as good for employees
at DB plans.
Meeting adjourned at 11:05
am.
Meeting adjourned at
11. ADJOURN
If any person desires to appeal any decision
of the Board of Trustees, that person will need to ensure that a verbatim
record of the proceedings is made, which record includes the testimony and
evidence upon which the appeal is to be based (F.S. 286.0105)
The City of
POSTED AND DISTRIBUTED: NOVEMBER 23, 2010
NEXT MEETING: FEBRUARY 28, 2011