HomeMy WebLinkAbout02012018 PP minsSANFORD POLICE OFFICERS' RETIREMENT SYSTEM
PENSION BOARD MEETING MINUTES
Thursday, February — 2018 —10:30 A.M.
1. Call to Order andRollCall
The meeting was called to order at 10:30 a.m, by the Chairman, Darrel Presley. The following
members were present: Bill Erwin, Michael Taylor and new Trustee, Hector Rosado who
replaced Nigel Price. Christopher Henry was excused. The following service providers were also
in attendance: Scott Christiansen, Plan Counsel, Tom Donegan, Investment Consultant, Patrick
Hearne, Investment Manager, and Patrick Donlan, Plan Actuary. Also present was Cynthia
Lindsay, Finance Director.
2. Approval of Minutes
A motion was made by Bill Erwin to approve the minutes from the regular meeting held on
November 2, 2017 and the Disability Hearing held on November 2, 2017. Seconded by Michael
Taylor, the motion carried unanimously.
3. ARprovall of Disbursement Report
The Plan Administrator reviewed the Contribution Refund spreadsheet with the Board. A motion
was then made by Michael Taylor to approve the regular disbursement report and the
contribution refund report as presented. zSeconded by Bill Erwin, the motion carried
unanimously. (Copy is attached for the record.)
4. Investment Manager's Rel2grts
Patrick Hearne presented the State Street Global Advisors investment report as of December
31, 2017. Ending market value was $6,221,873.
5. Investment Consultant's Re -port — Dahab Associates
Tom Donegan reviewed the performance report as of December 31, 2017. Asset allocation for
the period: Large Cap Equities — 30.6%, Mid Cap Equities — 10.3%, Small Cap Equities —
11.0%, International Equity — 12.9%, Real Estate — 15.6%, Fixed Income — 18.0% and Cash —
1.8%. Total portfolio value was $48,412,306.
Tom concluded his report by recommending that the Trustees reallocate approximately
$600,000 from Sawgrass Asset Management and the Small Cap Portfolio into the International
sector in order to comply with Investment Policy targets. Following a brief discussion, a motion
was made by Michael Taylor to approve of the Investment Consultants recommendation.
Seconded by Bill Erwin, the motion carried unanimously. Tom will coordinate the transaction
with the Plan Administrator.
6. Actuary's Report
Patrick Donlan presented the Actuarial Valuation Report as of October 1, 2017. Following the
review, and a lengthy discussion, a motion was made by Michael Taylor to approve the report
as presented. Seconded by Bill Erwin, the motion carried unanimously.
During the presentation, a number of assumptions were discussed and Patrick recommended
that the Trustees consider an Experience Study (the last one was done 5 years ago.) Following
some discussion, a motion was made by Michael Taylor to authorize the Actuary to perform the
Experience Study at a not -to -exceed cost of $6,000 and to present it to the Board at the August
2nd meeting. Seconded by Bill Erwin, the motion carried unanimously.
Page 2 of 2 C -F -A Police Retirement System February 1, 2018
A discussion then took place regarding the annual Declaration of Returns letter. Following input
from the investment professionals, attorney, and the Trustees, a motion was made by Bill Erwin
to submit the annual letter to the Division of Retirement stating that the total expected annual
rate of investment return for the fund for the next year, the next several years, and the long-
term thereafter, shall be 7.75%, net of investment expenses. Seconded by Hector Rosado, the
motion carried unanimously.
7. Attorney's Report
Scott Christiansen began his report with a brief legislative update. He continued his report to
the Board under the Agenda Item's requiring his input.
I Old Business
At the last meeting the Trustees asked that Scott provide them with additional information
regarding Securities Monitoring Services. Kessler Topaz Meltzer Check submitted a packet of
information for the Trustees' consideration. Following the discussion, a motion was made by
Michael Taylor to execute the Retainer Agreement for Securities Monitoring. Seconded by
Hector Rosado, the motion carried unanimously, The Plan Administrator will see to the proper
distribution.
9. New Business
(a) A motion was made by Bill Erwin to approve of the retirements of Robert Mitchell effective
09/30/17 and Ence Spann, Jr. effective 11/17/17. Seconded by Michael Taylor, the motion
carried unanimously.
(b) A motion was made by Bill Erwin to approve of the DROP exit/retirements of John Hammel
effective 01/26/18 and James McAuliffe effective 01/31/18. Seconded by Michael Taylor, the
motion carried unanimously.
10. Public Comments
There were none.
11. Next Meeting Date
The next regular meeting date was set for Thursday, May 3, 2018 at 10:30 a.m.
12. Adjournment
The meeting ended at 11:40 a.m.
For the