09/13/1989
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POLICE
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.SUPPLEMENT ARY
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,PENSION
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Minutes.
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'DATE
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AGE N D A
CLEARWATER POLItE SUPPLEMENTARY PENSION: FUND
Meeting of September 13, 1?89
1. Approval of. the Minutes of the meeting held on JU~Y 20,
1989.
,2. Discu5sfon of Performance Evaluation with Representatives of
Flo~ida National Bank.
'3. Ratification of the Payment of,$22,217.49 to Mark F. Cairns
for his Share' value (less perial~y for early ",i thdrawal )00 I
hi5"Res19na~10n Date o~ July 09" 1989 (ehd of shift).
4~ Approval of the Payment of $44,812.45 to Raymond L. Emmons
for his Share Value on his Retirement Date o'f August 17,
19 8 9, (e nd 0 f 5 h i f t ) . . '
,5.
Southeastern
for Quarter
Approval of the payment of $1,000.00 to
Advisory Services, Inc. for Consulting Service
Ending June 1969.
6. Ratification of the Payment of $3,084.39 to Florida National
Bank for the Pr'iod of 4/1/89 to 6/30/89.
7. Distribution of the Quarterly Report from Southeastern
Advisory Services, Inc. for the Period Ending June 30, 1989.
8. Dlst~lbution of Monthly Financial Report from Florida
National Bank for the month of July 1989.
9. Ap~rove the Entry of Four (4) new Officers into the plan:
Robert J. Fava (recruit II)
Eugene M. 'l'obias, Jr. (recruit II) ,
Mark Beaudette (recruit II)
Wayne spitalerl (recruit II)
10. Other business.
08-05-89
08-05-89
09-01-89
09-01-89
(
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WILLIAM BEDRICK, chaIrman
Board of Trustees
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CLEARWATER POLICE SUPPLEMENTARY PENSION
MINUTES OF MEETING HELD SEPTEMBER 13, 1989
9:00 A.M. '
A meeting of the Board of trustees was held on September 13, 1969 at 9:00
A.M. in the second floor conference room of Police Headquarters, 6~4 Pierce
street, Clearwater, Florida.
The following trustees were 'present:
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Sergeant William Sedrick, Chairman
ROY May, Vice-Chairman
John Dean, Secretary
Donald Hibbard, Trustee
,William Horton, Trustee
Miles Lance, Assistant City Attorney and
,Police Legal Advisor
Cindy Hicks, secretary to Deputy Chief DesmaraIs was
present to record the minutes
Chairman sedrick called the meeting to order at 9:00 A.M. The first item
on the' agenda was' approval of the minutes of the meeting held on July 20,
1989; Motion was"made by William Horton that the minutes be approved (witH
a deletion of the line at the beginning of, the minutes that noted that John
Dean was unable to attend as he was 1n attendance). Se~onded.by Donald
Hibbard. Motion carried unanimously. 'I
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Item ~2 on the agenda vas postponed to later in the meeting as Torn James
(from Flor Ida Na t i ona 1,) had not arr 1 ved .
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Item HJ on the agenda was ratification of ,the- payment of $22,217.49 to Mark'
F. Calrnsfor his share value (less penalty for early withdrawal) on his
resignation date of JUly 09, 1909 (end of shift). Chairman Sedrick
reminded the Board of his previous conversation with Marvin Cl~yton about
the payment to Mark Cairns as he was transferring to the Fire Department
and Harvin Clayton's decision that the two plans"were t'Otally different,
and not compatible, and therefore the money should be paid directly to Mark
Cairns.' The calculation was made as follows:
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Regular retirement day - 09/29/95
Official resignation date - 07/10/89 (start of day)
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Resignation date is 2,272 days short of regular retirement
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2,272 d~ys divided by 365.25 (days per year) = 6.220396988 years short
of regular retirement date "
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6.220396968 x .03
18.66119096%
(penalty per year for early
withdrawal) =
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'Total value of plan assets - $4,085,533.06
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...J.. Regul..'H retlrement amount fot 5,033 Bhares would have been $27,314.'75
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$27,314.75 x 18.66119096\
, wi thdra\tlal)
= $5,097.257658
(penalty for
early
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$27,3~.75 minus, 5,097.26 ..
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$22,217.49
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Minutes
Supplementary pension Fund
I~ Page 2
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Motion to
Hibbard.
ratify th~ payment made
Motion carried unanlmously.
by ,John
Dean.
Seconded
by
Donald
Item #4 on the agenda concerned the approval of the payment of $44,812.45
to Raymond L. Emmons for. his share value on his retirement date of August
17, 1969 (end of shift). Chairman Sedrick explained to the Board that this
was a normal 20 year retirement and that the calculations had been made to
determine the share value for the 7,354 ,days in the plan. Motion to
. approve the payment \las made by William Horton and seconded by John Dean.
Motion, carried unanimously.
Item >>5 concerned the payment of $1,000.00 to Southeastern Advisory
Services, Lne. ,for consulting se~vice for the quarter ending June 1989.
Chairman Sedrlck explained that this was a contractual item regarding the
performapce evaluation service provided by Southeastern Services, Inc.
Motion to approve the payment made by Donald Hibbard, seconded b~ William
Horton. Motion carried unanimously.
"0
Item 86 concerned ratification of the paymeht of $3,064.39 to Florida
National Bank for the period of 4/1/89 to 6/30/89. Motion made by John
Dean and seconded by Donald Hibbard. Motion ca~rled unanimously.
Item 37 was di~t~ibutlon of the quarterly report f~om southeasternAd~isory
Service, Inc. Discussion of this report was postponed until later in the
meeting.
Item D8, distribution of monthly report from Florida National Bank, was
combined with Item >>2, discussion \lith representatlvAs of Florida National
Bank.
Item U9 concerned the entry of four (4) new officers into the plan:
Robert J. Fava (recruit II)
Eugene M. Tobias Jr. ,(recruit II)
Mark Beaudette (recruit II)
Wayne Spitalerl (recruit II)
08-05-09
08-05-89
09-01-89
09-01-89
,
Motion made by John Dean to approve their entry irlto the plan, seconded by
William Horton. Motion car.ried unanimously.
At this point, Chairman, Sedrick returned to I~em >>2 on the agendal
discussion of the performance evaluation with representatives of Florida
National' Bank, DennLs Gaines and Tom James (Investment Officer); and Item
>>7 - distribution pf the monthly report from Florida National Bank for the
month of July 1909. '1'0m James expressed \;0 the. Board that he feels that
the assessment of their performance. Mr. James did bring up the ,fact that
they hav'e a maxLmum of , 25\ that can be invested in the stock market and
'J what they have chosen, over the last couple of years has' been very
conservative. He has gradually been re-investing mOllei' in stocKs. 'I'he
other plans Florida National nank Is being compnred with have an average
investment of 45\ 1n the market, compated \lith only 13% for thIs fund.
With the market being strong, as it has been recently, and only being 13\
1 nvested Wder -i nvested 1 n stocks), then" the per formi1n~c 15 not go 1 ng to
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Minutes
Supplementary PensIon Fund
r) Pa,ge 3
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be as good. Mr.' James sa id the bOrid port: Ion (? 5\) bas leally 1 s fully
invested. stock investments are gradually being increased; from April 1 to
September 12, the total fund 1s up 6.81%. Mr. James stated that their
philosophy has been to keep 10-15\ of th~ total value of the fund In cash.
Mr. James feels that the assessment, placing them above average, is a fair
assessment of what they have done.
Mr.. May questioned hoy much of the "cash on hand, II is doing nothing? Tom
James sa id "there is none it is pa Id money market interest' ra tes
(presently 8.53%)."
Mr. May ,also questioned a portion of the latest assessment report (for
quarter end Lng June 1989) page 2, which suggests a study to determine
actuarial soundness, termed, an "asset liabl1\ty study." Chairman Sedrlek
,explained that the plan is a non-contributory type plan. It is understood
on the part of 'the officers' that the value of the plan could go down in a
given year. Dennis Gaines explained that it sounds as though Southeastern
Advisory Services, I nc., fee 1s tha t we 'have a "bene fit plan 11 as opposed" to
a "defined contribution" type plan which means t~at money is invested and
,whatever the results of the investments, the plan members get a share of
the total.
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Miles Lance suggested that a sentence be added to the annual letter to each
participant in the plan, that: "the value of each share may go up or down
depending upon investments.1I
Hr. May questioned whether or not a summary eheet could be included with
the monthly report that Florida National Bank submits to the Board. He
distributed copies of a sample sheet to all present. Dennis Gaines
explained the current printout and the information contained in it. After
his explanation, the Board agreed that a summary page would not be
necessary.
John Dean asked Hr. James how many other plans he was r~Rponsible for. Mr.
James said 20-30 employee benefit plans and a lot of personal trust
accounts, however, the supplementary pension plan is one of the larger
accounts and therefore receives a lot of attention.
Mr. May raised the Issue of "stop loss" to Hr. James and asked if he used
It. Mr. James said they don't use it normally. Miles Lance explained to'
the Board that the usc.of "!>top loss" is in essence delegating part of the
respons iblll'l:y to the 5 tack br: eker: to make the dec is ion on the investments,
which is something that we have the professional money rnnn~ger to handle.
Tom James ques t I oned whe the t he can I nves t: money in II U. s. agency bonds"
(this includes FannleMae's, Ginnie Maets, etc.) under the 'current
ordinance. It was a consensus of the Board that the state statute was
somewhat outdated in that area and ChaIrman ~edrlck 'said that he would
,-,' contact Marvin Clayton te get a clarification 'of the statute.
Chairman Sedrlck said that we will supply a copy of the latest quarterly
report fr9m Southeastern Advisory Services, Inc. to Florida National Bank.
'At"thl~ point, the Hr. James and Mr. Gaines departed.
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Minutes
Supplementary ,Pension Fund
page 4
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hfte~ a b~ief break, under item 110, other business, Chairman Sedrlck,
brought up the' issue '. 0 f . the "lag t im.e II to pay a re t iree, (or otherwIse
departed e~ployee) for his share values. Thls "lag tjme11 is created by the
necessity ~f'manually tabulating the total assets as of the close of
pusiness on the 'employee1s last day. Chairman Sedricksuggested that the
City ordinance be revised 50 that the previous month's close of business I
figure 60uld .be ,used. ThIs figure is already available and would
considerably cut down the amount of "lag time" to only a few'days. The
'difference in the amount of money involved would only be a m~tter, of a few
dollars under most, circumstances. It was the consensus of the Board ,that
,c~alrman Sedrlck get in touch ~i~h Marvin Clayton to get his approval (in
vriting) of this proposed ordinance change. Then Hiles ~ance will be'
contacted to write the requested ordinance change and schedule an agenda
,item for the city commission. A motion was made by William Horton to check
with Marvin Clayton and with his approval proceed with the prodess ' to
revise the ordinance. The motion: ~as seconded by John Dean. Motion
'carr led unanimously. 'I
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There being no further business, the meeting was adjourned at 10:15 A.M.
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