MINUTES OF THE MEETING OF THE GENERAL EMPLOYEES PENSION BOARD, JULY 18, 2011 Present: Vice-Chair Cheri Potts, Secretary Pamela Nadalini, Treasurer Christopher Lyons, and Trustees Barry Keeler, Susan Kosko, and Gretchen Schneider Absent: Chair Mike Taylor Others Present: Attorney Lee Dehner, Mr. Marquette Chester and Ms. Keri Hepburn, Invesco, Pension Analyst Gail Loeffler, and Staff Member Diane Torres CALL TO ORDER Vice-Chair Potts called the meeting to order at 8:30 a.m. APPROVAL OF THE MINUTES OF JUNE 20, 2011 On a motion of Trustee Kosko and a second of Trustee Schneider, it was moved to approve the minutes of June 20, 2011. Motion passed unanimously. APPROVAL: EARLY TERMINATION BENEFIT FOR COYETTA SANDERS, RETIREMENT REQUEST OF DENIS BEAUCHAMP AND JOE FUGER, AND DROP REQUEST OF MARGARET SAWYER Ms. Loeffler stated that Coyetta Sanders is 34 years and 6 months of age with 11 years of service and has selected the lump sum option. Ms. Loeffler stated that Denis Beauchamp, 65 years of age, with 11 years and 1 month of service is requesting the lump sum option, effective October 1, 2011. Ms. Loeffler stated that Joe Fuger, 55 years of age, 35 years of service is requesting the Lifetime Option, effective December 1, 2011. Ms. Loeffler stated that Margaret Sawyer, 65 years and 1 month of age, 10 years and 1 month of service is requesting DROP retirement with the Lifetime Option, effective August 1, 2011. On a motion of Trustee Kosko and a second of Treasurer Lyons, it was moved to approve the Early Termination of Coyetta Sanders, Normal Retirement of Dennis Beauchamp, the Early Retirement of Joe Fuger, and the DROP of Margaret Sawyer. Motion passed unanimously. INVESTMENT REPORT: INVESCO Mr. Chester and Ms. Hepburn presented the portfolio results of the quarter ending March 31, 2011. Ms. Hepburn stated that the firm currently has $641.9 billion in global assets under management and $193.5 billion fixed income assets under management. Mr. Chester stated that Invesco manages $31,548,964 for the General Employees' Pension Plan. He continued that the firm does not purchase any securities rated below A. He continued that the portfolio is July 18, 2011 1 down 2.07% VS. the Barclays Intermediate Aggregate Index at 2.17% for the second quarter. He continued that the firm requested the Board be advised they are comfortable with the mandate given by the City and are not recommending any changes at this time. Secretary Nadalini questioned whether the City's portfolio includes any credit swaps. Mr. Chester stated that the City's portfolio does not have any credit swap exposure. DISCUSSION RE: FIDUCIARY INSURANCE Ms. Loeffler reported the Plan's Fiduciary Liability Insurance policy expires August 5, 2011. She stated that Annual Aggregate Limit of Liability will be renewed at $1 million through Ludwig-Walpole Travelers Co. which covers the Trustees and the Pension Plans Administrator. Attorney Dehner stated that the Board should consider obtaining a quote including defense costs as litigation is very expensive. Secretary Nadalini stated that the next meeting is scheduled for August 15, 2011, which is after the expiration date of August 5, 2011. On a motion of Treasurer Lyons and second Secretary Nadalini, it was moved to postpone approval of the City's Fiduciary Liability Insurance policy to receive additional quotes to include defense costs and to schedule a General Employees' Pension Special Board meeting prior to August 5, 2011. Motion passed unanimously. Attorney Dehner stated that the Police Officers' Pension Fund has $3 million in coverage with a $50,000 deductible. He continued that the Board may want to consider receiving a quote to increase the limit of liability to either $2 million or $3 million in addition to considering defense costs. Secretary Nadalini questioned the willingness of Treasurer Lyons to make an amendment to the motion to request quotes for increasing the limit of liability to either $2 million or $3 million with a greater deductible. Treasurer Lyons stated that he agrees to the amendment to the motion to request several quotes on various options on increasing the limit of liability up to $3 million with a higher deductible. APPROVAL OF PENSION DEPARTMENT BUDGET On a motion of Treasurer Lyons and a second of Secretary Nadalini, it was moved to approve the Pension Department budget. Motion passed unanimously. PUBLIC INPUT Legislation Attorney Dehner stated that the Governor has signed SB 1128 into law. He continued that the City must determine how to measure the 300 hours of overtime to which employees are now limited for future years of service. He continued that the Pension ordinance must also be 2 July 18, 2011 amended to exclude overtime in excess of 300 hours from the Final Average Compensation for calculating pension benefits. Annual Financial Disclosure Attorney Dehner stated that the annual financial disclosure forms have been received. OTHER MATTERS General Employees' Tentative Union Agreement Treasurer Lyons gave a summary of the tentative agreement approved by the Teamsters. Next Meeting The next regular meeting will be on August 15, 2011, in the City Commission Chambers. ADJOURN The meeting was adjourned at 9:24 a.m. Cheri Potts, Vice Chair Pamela Nadalini, Secretary July 18, 2011 3