TOWN OF I N D I A L A N T I C

Brevard County, Florida 32903

PENSION BOARD OF TRUSTEES - POLICE/FIRE

MINUTES 05-04

July 20, 2005   10:00 A.M.

 

I.  CALL TO ORDER AT 10:00 A.M.

 

          Chairman Terkoski called the meeting to order at 10:00 a.m. with all members present.

 

          Eugene Terkoski, Chairman

Mike Biamonte, Fire Dept. Member

Sgt. Mike Casey, Member

Sgt. Scott Elliott, Police Dept. Member

Gerald Kowalski, Member

Scott Glover, Financial Adviser

Shirlee Walker, Recording Secretary

 

II.          APPROVAL OF MINUTES April 20, 2005

 

Mr. Kowalski moved to approve the minutes as written. Sgt. Casey seconded. Motion passed unanimously.

 

III.          REPORT FROM MR. GLOVER

 

Mr. Glover reported that the year to date return of the portfolio through June 30, 2005 is +0.46%. The index yielded +0.61%. No changes were recommended to the Asset Allocation Model. Through July 19, 2005 the portfolio was up 1.25%.

 

Mr. Glover recommended a money manager as custodian when the account value reaches three million dollars. The account value is $2,545,811.00 at the end the second quarter.

 

Mr. Kowalski moved to accept Mr. Glover’s report. Sgt. Casey seconded. Motion passed unanimously.

 

IV.          OTHER

 

1.      Officer Heath Higman –Application for Participation in retirement program

 

Sgt. Elliott moved to accept Officer Higman into the pension program.

 

2.       Memo from Chairman Terkoski Re: DROP Program

 

A memo to the Committee from Chairman Terkoski outlined the discussion with Town Manager Christopher Chinault, regarding the DROP Program.

 

 

Some of the points to be considered are:

·        Personnel

·        Compensation for the work

·        Reports, quarterly, annually, etc.

·        Investment options for the “Drop Program” enlistee

·        Can investments be changed; how often

·        Possibility of gain or loss of investment

·        Distribution of “Drop Program” proceeds

·        Guarantee of entrance into the program

·        Qualifications, i.e. age 52 services 25 yrs. (other)

·        Does the adoption of a Drop Program affect in any way the return of pension contributions to employees leaving the force early?

 

After discussion, the Board agreed to have a seminar/workshop. Mr. Glover volunteered to attend the session along with the Town Manager. Representatives from other municipalities that have the DROP Program in place will also be asked to attend. Mr. Glover suggested that Ward Foster attend in order to answer questions about the program.

 

Sgt Elliott will make arrangements for the workshop

 

Town Manager, Chinault was present and expressed the DROP Program must work for everyone stating that the Town Clerk as well as the Deputy Clerk should be present for the workshop.

 

Mr. Chinault advised the Board that employees leaving the pension plan before being vested receive a refund of their investment with 6% interest and feels the refund interest rate should not be more than the plan is earning. The Board was requested to recommend this change to the town council.

 

Sgt. Elliot advised the Board that a large percentage of people attending the recent seminar for Pension Board members were Certified Public Trustees. Sgt. Elliott will check on the requirements for being certified.

 

V.           ADJOURNMENT

 

 

                            Adjournment was at 10:40 a.m.

 

 

                                                                                                                                 

                                                                             Eugene Terkoski, Chairman

 

 

                                                         

          Shirlee Walker, Secretary