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Agenda 11-10-15 BOYNTON BEACH POLICE OFFICERS' PENSION FUND QUARTERLY BOARD MEETING Tuesday, November 10, 2015 (k 10:30 AM Renaissance Commons Executive Suites 1500 Gateway Blvd., Suite 4220 Boynton Beach, FL 33426 AGENDA L CALL TO ORDER — Toby Athol, Chair II. AGENDA APPROVAL — III. APPROVAL OF MINUTES — Special Meeting 07 -21 -2015 Quarterly Meeting 08 -11 -2015 IV. FINANCIAL REPORTS: A) Quarterly & PYE Investment Review — 09 -30 -2015 1) Russell Investment Group — MJ (Candioto) Serene, CFA a) LSEG agrees to proposed sale of Russell Investments b) Investment Review — 2.) Burgess Chambers & Associates - Head of Research Frank Wan a) Fund Performance review — V. CORRESPONDENCE: 1) GRS — Authorization from the Board to work with City to comply with new GASB 68 disclosure. VI. OLD BUSINESS: N/A VII. NEW BUSINESS: A. Invoices for review and approval: 1. Russell Investment Gp. — Quarter End 09 -30 -2015 - $131,372 2. Russell Payment Services — Quarter End 09 -30 -2015 - $1,004.99 3. Bonni Jensen PA — Service Aug, Sep & Oct. 2015 - $5,253.22 4. Burgess Chambers & Assoc — 3rd Qtr 2015 fee - $6,250 5. Gabriel, Roeder, Smith & Co- Service thru Aug 2015 - $7,192 B) Attorney Report - Bonni Jensen 1) Relocation Notice 2) NCPERS Code of Conduct 3) Determination of Supplemental Benefit — Ltr of 10 -14 -2015 4) Police & Fire Pension Board — RFP for Pension Administrator — Joint venture set up and review process. 1 C) Alive & Well Statements —Institute $100 administration fee for late return of statement VIII. PENSION ADMINISTRATOR'S REPORT 1. Benefits as of PYE 9 -30 -2015 2. Pension Administrator — Review for 5% raise eff 10 -01 -2015 ($119.85 a month) IX. PUBLIC AUDIENCE COMMENTS: (Limited to three (3) Minutes) X. ADJOURNMENT: Next Regular Meeting Date — Tuesday, February 9, 2016 @ 10:30 a.m. — Renaissance Commons If you cannot attend, please call Barbara @ 561- 739 -7972 NOTICE IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY THE POLICE OFFICERS' PENSION BOARD WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING, HE /SHE WILL NEED A RECORD OF THE PROCEEDINGS AND, FOR SUCH PURPOSE, HE /SHE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDING IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. F.S. 286.0105) THE CITY SHALL FURNISH APPROPRIATE AUXILIARY AIDS AND SERVICES WHERE NECESSARY TO AFFORD AN INDIVIDUAL WITH A DISABILITY AN EQUAL OPPORTUNITY TO PARTICIPATE IN AND ENJOY THE BENEFITS OF A SERVICE, PROGRAM, OR ACTIVITY CONDUCTED BY THE CITY. PLEASE CONTACT CITY CLERK'S OFFICE, (561) 742 -6060 AT LEAST TWENTY -FOUR HOURS PRIOR TO THE PROGRAM OR ACTIVITY IN ORDER FOR THE CITY TO REASONABLY ACCOMMODATE YOUR REQUEST. S: \CC \WP \JANET \POLICE PENSION FUND.doc 2 MINUTES OF THE BOYNTON BEACH POLICE OFFICERS' PENSION FUND SPECIAL MEETING HELD ON TUESDAY, JULY 21, 2015, AT 10:30 A.M. RENAISSANCE EXECUTIVE SUITES, SUITE 220, CONFERENCE ROOM 1 1500 GATEWAY BOULEVARD, BOYNTON BEACH, FLORIDA PRESENT: Toby Athol, Chair Barbara LaDue, Pension Administrator Jason Llopis, Secretary Bonni Jensen, Board Attorney Scott Caudell Joe DeGuilio I. CALL TO ORDER Chair Athol called the meeting to order at 10:34 a.m. ll. AGENDA APPROVAL Ms. LaDue added Item A.2 to New Business Pension Amendment Ordinance on the multiplier Motion Mr. Llopis moved to approve the agenda as amended. Mr. Caudell seconded the motion that unanimously passed. III. APPROVAL OF MINUTES — NIA IV. FINANCIAL REPORTS: None. V. CORRESPONDENCE: 1) Engagement of GRS by City - Letter of July 8, 2015 by Jerry Taylor, Mayor Attorney Jensen explained the Board has a request from the City to allow them to contract with GRS which requires the Board's consent. Attorney Jensen explained the Board would be allowing the City to use Pete Strong, Plan Actuary with GRS, who is familiar with the Plan and it would save the City about $25,000. Since GRS provides actuary services for the Plan, regardless of what another actuary would say, the Board would abide by GRS. Mr. Strong explained GRS would only run numbers for the City. It was important to get the Board's input on the scope of information to be provided in case the City asked for opinions. Meeting Minutes Police Pension Board Boynton Beach, Florida July 21, 2015 He would indicate the basics that other plans reviewed. These were mainly the retirement date, multiplier, final average earnings calculation and the number of years. Beyond that, there is not much that would significantly impact benefits. If limited to the main component of the Plan, there is a minimum multiplier under the new State Statute of 2.75 %. Chair Athol noted the Plan did not have a COLA or medical benefits. Chair Athol thought it made sense to use them and the direction is to respond to their questions specifically, but he thought it would be a bad practice to randomly provide information that was not requested. Chair Athol suggested moving New Business up on the Agenda because Mr. Strong was present. VI. Old Business A. Gabriel, Roeder Smith & Co. - Pete Strong Plan Actuary 1) Extra payments toward unfunded liability and other ideas for cutting costs Mr. Strong explained the Plan is amortizing its unfunded liability as a level percent of pay. This year, they are paying a lower amount if calculated as a mortgage payment understanding it would go up 4% each year and the payment curve would increase. If there was a level dollar amortization, there would be no curve for the next 30 years or until some of the basis were paid off. The State says this could be done, but the State prohibits using more than the 10 -year historical average of pay increases. The average of the total covered payroll over the last ten years was a 4.4% compound average. He pointed out those aspects change and they tend to have a spike. Mr. Strong explained payroll on October 1, 2005 was $7.8 million and on October 1, 2014, was $11.1 million. That was still close to 4% on average, but on October 1, 2016, there is a big jump. If payroll stays flat for the next few years, there is about a 2% average increase. Chair Athol commented there will be payroll increases in the next few years and Mr. Strong advised it will put upward pressure on the cost. It would take a jump to $14 million or $15 million to continue to use the 4% payroll growth assumption over next few years. If there is a 0% level dollar amortization, they would see a $960,000 increase in contributions. Mr. Strong anticipated they would see increases in contributions of about $500,000 at first for the next few years. When GRS makes their projections they reflect future payroll growth and they would want to see the long -term impact. The City will see future expected increases, but he noted that would create a new base line to measure against. Some plans were proactive and made changes to ward off a large increase down the road. The information should indicate the need to do something. Mr. Strong noted there is a vague exception in Chapter 112, if they realistically expect future payroll increases to be x% and they have been using payroll increases since 1998, the Board can, with State approval, ignore the 10 -year history. 2 Meeting Minutes Police Pension Board Boynton Beach, Florida July 21, 2015 Chair Athol commented they had three buyouts in 1999 and he wanted to know how those factored in as there was a decrease in payroll for a while. Mr. Strong responded it was too far back and they were excluded from their 10 -year calculations. Mr. Strong commented the Fire Pension was interested in SB 172, pertaining to the new 175 and 185 money and how it could be used because it throws out the old base amount. They can continue to do things as is without changes if the City and the Board agreed. There is flexibility, but it opens up discussion about how to use the money. Mr. Strong was aware most of the funds were used for the ad hoc benefit for Fire, but the excess money could be rerouted to pay down the unfunded liability. If that were done, the excess would not go to the City's contribution directly, but the extra payments could be directed towards the unfunded liability and the Board choose where to put it. He suggested choosing where one would get the most bang for the buck which was the basis with fewest years left. Attorney Jensen explained the have to really work with that because it is a negotiated item. It is different than the 13 check. Chair Athol pointed out the 185 monies are tied to the excess and the 1% supplement as far as the City contributing to it. Attorney Jensen explained it has a required distribution for 10% of the principal and all the interest. It was already a designated benefit. She commented they could do something prospectively, but it had to be negotiated. Chair Athol understood everything past $645,000 could go towards an unfunded liability. Everything under that amount was divided into benefits. Chair Athol thought it was important for the City to know it is a current benefit; not excess State money sitting there. The benefits are divided per member, but future money could be. Mr. Strong explained if the City and Union do not reach an agreement, the default was anything above the 2013 amount is spent 50/50 between the unfunded liability and benefits. Last year, they received $645,000. He clarified the new base amount for 2012 is the amount received in 2013. Attorney Jensen explained the amount between 2003 and 2013 has to be used for benefits per Ordinance and she did not believe the entire amount could be allocated. Attorney Jensen explained they codified what they did and the Board could use the $645,000. Anything over the $645,000 would be split if there is a default. Attorney Jensen pointed out the first question is whether the Plan is a supplemental plan. Supplemental plans are plans created post December 2000. That would put them in a different category. It was open to interpretation. The Board asked this question two years ago, but Senate Bill 172 did not pass so it was left as is. Attorney Jensen thought there was a 50/50 chance they are a supplemental plan. Mr. Llopis inquired what if the Plan did not qualify as a supplemental plan and learned they would then have to set up a defined contribution plan. Attorney Jensen explained they could mutually consent out and that was what the League of Cities was pushing. The best and highest use of monies is mutual consent. Attorney Jensen was pushing the State for an interpretation. In 85% of the cases, the Plan would end up allocating the $645,000 as it was currently used. They meet the supplemental plan criteria. Chair Athol thought all the money 3 Meeting Minutes Police Pension Board Boynton Beach, Florida July 21, 2015 coming in above the 2013 or 2014 amount could be split and the extra money could be allocated towards the unfunded liability. Mr. Strong explained the concept of an extra payment being made towards the unfunded liability was like an extra mortgage payment made each year to pay down the principal. Mr. Strong explained the biggest impact on the contribution requirement was to pay down the basis with the highest payment relative to the unamortized balance because they would get the highest ratio. If they apply it to a basis with 30 years remaining, it would only reduce the contribution requirement about 5% for every $100 paid. If applied toward a basis with the fewest years remaining, there would be a ratio of about 10 %. Chair Athol inquired where the extra payment would come from and learned it could come from excess Chapter money or via negotiation with the City that they pay extra to be targeted to pay down the principal. It could come from different sources, but it had to be new money above the minimum contribution requirement. Mr. Llopis inquired what other plans have done. Mr. Strong explained the City of Coral Gables agreed to pay $2.5 million above the required contributions in October 2015. They were asking it go into a reserve account so it will leave their amortization payments unchanged and not go to a specific base_ It is in a reserve account and they will accelerate the payment of their unfunded liability with ongoing, required contributions. It will not reduce the basis until they reach full funding, but it would occur sooner. Attorney Jensen asked if they were making investment restrictions and learned it was going into their general investment pool. Chair Athol asked if the City budgets for 100 officers and there are 90, if the excess money in the budget for those vacant positions could be used to pay down one of the basis and learned it could. Mr. Strong thought it was worth discussing with the City. Mr. Strong explained the Palm Beach Gardens Police recently decided to make an extra payment towards the unfunded liability. Mr. Strong was unsure how they will do that, but the finance director asked Mr. Strong how it would work. Attorney Jensen noted it was assumed the Plan would meet the rate of return. Chair Athol commented there are always extra salaries. He also commented they would work on their end to try to find funds, and they were open to any option that would strengthen the pension_ Mr. Strong commented the Board has been phasing in mortality tables and they will be fully phased in on October 1, 2015. House Bill 1309 requires them to use the FRS Special Risk Mortality tables commencing in 2016. He commented the Boynton Firefighters have been hit hard by this. In general, the table the Board was phasing towards was not much different than what FRS was using. The Board uses the RP 2000 Fully Generational Table and was phasing to Scale AA and FRS uses Scale Boynton Beach, but they applied a 90% blue collar adjustment for all males. They use a white collar adjustment for female special risk. 4 Meeting Minutes Police Pension Board Boynton Beach, Florida Ju 21, 2015 Mr. Strong explained the Plan is very close to the new table and he did not expect the change would have much of a variance. His proposal was they move to the FRS table now. They could implement this a year ahead. Attorney Jensen thought the advantage of this bill is they have a year to review it. Mr. Strong commented they could review it from both sides, because they were nearly fully phased in, so they would determine the difference with FRS. It may be slightly less. Mr. Strong would have to do the numbers both ways for the October 1, 2015 valuation. He suggested he be given contingent approval to do so if it had less than a 1% impact or if going to the FRS table reflected on October 1, 2015 was an improvement. Chair Athol thought if over 1%, they could talk about it. Motion Mr. Llopis moved to approve a sub 1 % approval. Mr. Caudell seconded the motion that unanimously passed. Mr. Strong inquired if a motion was needed for him to provide requested calculations to the City. Chair Athol did not know what the process was and thought it would be fine for calculation purposes. Mr. Strong inquired how he should respond to the City if he was asked for his advice. Chair Athol pointed out he did not know how to put a cap on advice or opinions. They will field any thought, process or question, but he did not want Mr. Strong to be put in a position that the City was there for him to tell them what to do. Mr. Strong explained other plans have put a dollar cap on benefits. If someone was over the cap when instituted, they would be grandfathered and receive a benefit they already earned. One plan put in a $90,000 annual benefit cap with no future increases attached to it. Attorney Jensen thought a percentage of payroll would be much easier to implement. She had a plan with a dollar cost value of 1% based on a funded ratio of 80%, but they also had a COLA and implementation was messy. Chair Athol commented they try to front load their Plan because they do not have a COLA or medical benefits. Using a dollar amount would not work. A percentage of the plan, relative to earnings and benefits, may be better. Mr. Strong explained this plan changed so they would not have to move to a defined contribution plan. When they need to increase the $90,000 cap due to inflation, they will reach other caps and implode. Mr. Llopis inquired when Mr. Strong works with the City if he would bring back information on what the City requested and learned they could include that in their response letter- 5 Meeting Minutes Police Pension Board Boynton Beach, Florida July 21, 2015 Mr. Strong advised they would not suggest anything other than what was discussed at the meeting. The main items to review were the 3.5% multiplier. Normal retirement dates would not make much of a difference. Employee contribution rates could change and changing retirement dates with a higher multiplier would not be significant. Chair Athol thought showing the projections regarding the impact of having new members would be helpful, but it would have an immediate impact. Mr. Strong explained the first time it would affect the valuation results would be in the October 1, 2016 valuation which calculates the contribution requirement for the 2018 fiscal year. Mr. Strong reiterated the four areas to study were the multiplier, the normal retirement, final average earnings, which is the top five years out of 10 that has a state minimum, or adjust the member contribution rate. The five going to 10 years final earnings would not result in much of a change. He noted most people work until they are vested, but it was something the City may ask about. Chair Athol suggested Mr. Strong field whatever specific questions the City has and its impact. If they have a particular question as opposed to here is my opinion of what will work the best, he should calculate the impacts of their questions. Attorney Jensen noted they could limit the scope to requests that come from the parties, so there would be some level of consent. Motion Mr. Caudell moved to approve Mr. Strong to run cost calculations or cost impacts of the changes presented by the bargaining parties contingent on the Board receiving copies of the work. Mr. DeGuiiio seconded the motion that unanimously passed. Mr. Strong will create an impact statement regarding new entrants with a 3% multiplier and calculate projections what the impact would be in the future. He noted that projection will become a new baseline. Attorney Jensen will draft a response to the City's letter that the Board approved GRS to calculate cost impacts of scenarios requested by the collective bargaining parties and the Board wants copies. The Board took a short break at 11:27 a.m. and reconvened at 11:31 a.m. VI. OLD BUSINESS: A) Pension Disability Application — Gregory Kenny - 1) Current Estimated Disability Benefit Attorney Jensen distributed the disability application from Gregory Kenny, the application for Social Security Disability, which is required, and an application for Workers' Compensation. Tim McPherson from Human Resources was present. 6 Meeting Minutes Police Pension Board Boynton Beach, Florida J uly 21, 2015 Attorney Jensen had provided a copy of the process to be followed and explained the requirement is to review the application as presented. The applicant provided relevant documentation, a signed release and information from doctors. He could apply for Workers' Compensation and Social Security. The records were reviewed by the Board's independent medical examiner. For this case, they sent records to an orthopedic doctor for an exam, but he was not able to make a final determination. They sent the records to a neurological physician who could not make a conclusion, but the orthopedic doctor had recommended a Functional Capacity Exam (FCE). That information was provided. The Trustees needed to review the medical documents. The doctors' reports they completed following the process would indicate if Mr. Kenny was totally disabled from performing the duties of a police officer. Attorney Jensen noted other items to consider were: • Are there other positions available he could perform either with or without a reason accommodation; • If his disability was permanent, is the disability caused by employment; and • Did the disability arise from any excluded items? The Board could make a decision from that point. She reminded the Board the burden of proof was on the applicant, and the decision of the Trustees must be based on a preponderance of the evidence. Attorney Jensen stated for the record the Trustees were provided, through a secure exchange server, all of the documentation. Attorney Jensen reviewed Mr. Kenny was in a car accident on October 22, 2011, while on duty. He returned to work and went to MedExpress. The doctor documented Mr. Kenny hit a wall at a speed of about 30 miles per hour. The airbag did not deploy. Attorney Jensen reviewed the various doctor reports, the extent of Mr. Kenny's injuries, and the treatments he received. He was seen by various doctors including an orthopedic physician and a neurologist. There were two Independent Medical Examinations and he underwent MRIs and a FCE. It was concluded Mr. Kenny would be unable to return to duty based on his job description. An email was sent to the Police Chief asking if he had a position available for Mr. Kenny and Attorney Jensen had not received a response. Chair Athol inquired if there were any other suits that contradicted any of the information the Board was provided and learned there were none. It was acknowledged there were some pre- existing conditions, but the disabling injury was job related. Both Mr. Kenny's personal injury and Worker's Comp attorney agreed he cannot return to work in law enforcement. Attorney Jensen advised the Trustees can make a decision at the meeting or request additional information. The personal injury case was for the October 2011 car accident. A personal Injury suit was not filed for the 2014 accident. Attorney Jensen commented it was clear to the doctors the pre - existing conditions were aggravated by the second accident, but they were not considered to have been a part of the disabling injury. 7 Meeting Minutes Police Pension Board Boynton Beach, Florida .July 21, 2015 Mr. Caudell inquired if surgery was recommended or would be in the future and learned it was not. Mr. Kenny's counsel, Attorney Kelly advised Mr. Kenny had been working for the City for 12.5 years and had two motor vehicle accidents. This second accident brought out headaches but injuries from a 2011 accident. He was previously treated for migraine , 1 p the accident increased the intensity of them and he had low back pain on his right side which was responsive to treatment. He was released and returned to full duty. A pain management specialist advised there was nothing surgically that could be done and surgery 9 was not recommended. A neurologist was treating him for migraines and he was doing better. His main complaint was his back, but he was released for full duty, and then had his second car accident. He was told he would not be able to return to work. While he was moderately cleared he cannot sit for prolonged periods of time or perform any lifting or be involved in any altercations. Mr. Kenny did all he was asked to do. He did not choose his doctors and Attorney Kelly commented this group selected Medical Improvement MMI ) October 21.2013 he was at Maximum ( quality doctors. On Octo p and had a 4% impairment rating. He has issues with walking and both doctors indicated he was totally disabled for law enforcement. He had a permanent injury. The records indicated it was work related and no exclusionary provisions exist. Attorney Kelly advised Mr. Kenny should meet the disability provisions. Attorney Jensen commented if there was something additional the Trustees wanted to know, they should obtain additional information and then make a decision because once a decision was made the burden shifts. Chair Athol asked if there was a simple synopsis to coincide with the approval. Attorney Kelly explained the 2011 civil suit was closed. Mr. Kenny settled the case as opposed to going to trial. Attorney Kelly pointed out if a suit was settled, the person signs a general release. Mr. Kenney explained all the information given to the Board was from the civil suit. Chair Athol was only concerned the complaints were consistent. Attorney Jensen did not have a copy of the complaint and noted the complaint may not have been filed. Some people settle before that occurs. Attorney Jensen reviewed the interrogatories from Attorney Bill Bone, Mr. Kenny's prior personal injury attorney. Chair Athol thought it was incumbent on the Trustees to ascertain if the civil suit was consistent with the application and learned it was. Attorney Kelly advised often if Workers' Compensation was controlling the doctors and the personal injury attorney does not think their client is receiving a realistic evaluation, they send them to their own doctors. In this case they did not do so. Chair Athol thought all was consistent and it was fine. Attorney Jensen did not find any other doctors named in the medical records. Attorney Jensen inquired if Workers' Compensation was still paying for the medical treatment. Mr. McPherson explained a doctor on June 26, 2015, indicated Mr. Kenny still had restrictions of no lifting over 20 pounds and no working past six hours. They had filed a written request for surgical intervention requesting surgery on certain discs. 8 Meeting Minutes Police Pension Board Boynton Beach, Florida July 21, 2015 Mr. Kenny explained they were doing an epidural and he had remained status quo since reaching MMI. Attorney Jensen asked if there were any Workers' Compensation issues as a result of the October 2014 accident. Mr. McPherson was aware of a personal injury but it was hard to pin which accident caused which condition. Attorney Jensen also announced she received a response from the Chief advising that regretfully there were no positions to accommodate Mr. Kenny in the Police Department. Motion Mr. Caudell moved to approve the application. Mr. DeGuilio seconded the motion that unanimously passed. Attorney Jensen explained the disability approval was effective today or the date of the last payment from the City. Attorney Jensen read from the Ordinance and explained how payment would be handled. 2) Social Security Disability Online Application 3) "The Disability Decision" by Attorney Jensen 4) Disability Ordinance 5) Kenny Disability Notebook — includes medical records, IME & FCE reports, etc. — Access Secure Server — Email 7 -13 -2015 B) Nomination of 5 Trustee - Chair Athol explained Trustee John Huntington resigned. He commented there was not a lot of interest, except for Russell Faine who had been interested in the Board for a while. Chair Athol supported him. It was noted Messrs. Llopis and Caudell had tried to spread the word of the vacancy. Motion Mr. Llopis moved to make Russell Faine a Fifth Trustee. Mr. Caudell seconded he motion that unanimously passed. Chair Athol advised there are two schools and conferences for Trustees. The Trustee school will take place in October and the State puts on two conferences each year, usually in Orlando and Tallahassee. There was agreement to send a letter to the City Commission to appoint Russell Faine as the Fifth Trustee as a ministerial duty. Mr. Faine was advised to complete Form 1 within 30 days and file it with the Supervisor of Elections. Ms. Ladue would assist. VII. NEW BUSINESS: A. Gabriel, Roeder Smith & CO -Pete Strong — Plan Actuary 1) "Extra payments toward Unfunded Liability" and other ideas 9 Meeting Minutes Police Pension Board Boynton Beach, Florida July 21, 2015 for cutting costs. VIII. PENSION ADMINISTRATOR'S REPORT — NIA IX PUBLIC COMMENTS: None. X. ADJOURNMENT: There being no further business to discuss, Chair Athol properly adjourned the meeting at 12: 18 p.m. Catherine Cherry 4 Minutes Specialist 100215 10 MINUTES OF THE BOYNTON BEACH POLICE OFFICERS' PENSION FUND QUARTERLY MEETING HELD ON TUESDAY, AUGUST 11, 2015, AT 10:30 A.M. RENAISSANCE EXECUTIVE SUITES, SUITE 220, CONFERENCE ROOM 1 1500 GATEWAY BOULEVARD, BOYNTON BEACH, FLORIDA MUM— PRESENT: Toby Athol, Chair Barbara LaDue, Pension Administrator Jason Llopis, Secretary Bonni Jensen, Board Counsel Russell Faine Joe DeGuilio (arrived 11:28 a.m.) ABSENT: Scott Caudell I. Call to Order Chair Athol called the meeting to order at 10:37 a.m. 11. Approval of Minutes - Quarterly Meeting May 12, 2015 Motion Mr. Llopis moved to approve the minutes. Mr. Faine seconded the motion that unanimously passed. Ill. Approval of the Agenda The following items were added to the agenda under VII New Business: • Item E, Rental Agreement Starting October 1; and • Item F, Trustee Expenses Motion Mr. Llopis moved to approve the agenda as amended. Mr. Faine seconded the motion that unanimously passed. IV. FINANCIAL REPORTS: A. Quarterly Investment Review – June 30, 2015 1. Russell Investment Group – MJ (Candioto) Serene, CFA a) Investment Review Meeting Minutes Police Officers Pension Fund Boynton Beach, Florida August 11, 2015 Ms. Serene reviewed there were no changes to report since the last meeting regarding Russell organizational changes. The firm was for sale and the London Stock Exchange Group bought the entire firm. They decided to sell the non -index portion of the business, which the Board's Pension Plan fell under, because it was not a strategic part of their business. Ms. Serene commented they had a semi - annual update that indicated everything was on track and they were looking to close by the end of the year. She anticipated they should have a letter of intent with a buyer identified soon. Ms. Serene reviewed the Plan's client service team. She also advised their client conference would be held in Arizona. Previously it was held the first week in May. This year it will be held the third week in May. Ms. Serene gave a snapshot of the fund's performance for the quarter and advised the total portfolio was flat although there was a lot of volatility. There was a threat of exiting the Euro without materially impacting overall markets and economies and the Chinese market tumbled. There were still ongoing questions about the Central Bank Policy. Earnings were flat for the quarter in developed U.S. and non -U.S. equity markets. Emerging markets had a slight gain and then faltered in the third quarter. There were also slightly negative returns because of increased interest rates. There were concerns Greece would exit the Euro, and the Euro was weak. European equities dropped and Russell made purchases for the portfolio, which was now overweight in Europe. It was noted less than 2% of the European economy was driven by Greece. Ms. Serene anticipated the Gross Domestic Product (GDP) would increase 2.5% to 3% during the remainder of 2015 and there would be an interest rate hike. From a market perspective, the U.S. was overvalued compared to other parts of the world. They were watching China and commodity producing countries. They were overweight in Japan on a hedged basis so they would not pick up currency exposure. Ms. Serene advised the strategy worked out very well. The fund's asset allocations were in balance with the targeted weights. Fiscal year -to- date, the fund started with $76 million in assets. Inflows outpaced outflows by about $500,000 and there was about $4 million in appreciation. The fund ended the quarter just shy of $81 million. There were positive returns from real estate. For the three month period, net of fees, there was $230,000 and as of yesterday, the portfolio had $81.5 million in assets. For the quarter, net of fees, real estate was 30 basis points ahead of the benchmark and about 65 basis points on a year -to -date basis. Ms. Serene reviewed being underweight in interest -rate sensitive securities such as utilities, REITS and high yielding securities, drove the Multi -Asset Core (MAC) product to perform above the benchmark. Previously, these securities dragged over the year, and it was good to see the strategy worked. The portfolio was also overweight in Japan and was recently 2 Meeting Minutes Police Officers Pension Fund Boynton Beach, Florida August 1 1, 201 rebalanced, which resulted in excess returns over the trading year. They were overweight in Europe relative to commodity producing countries and for the same reason they were overweight in U.S. dollars. Fixed income rates increased during the quarter. On a year -to -date basis, the fund started the year with the 10 -year treasury at 2.1 %. At the end of March, it was 1.9% and it ended the quarter at 2.9 %. The Multi- Manager Bond (MMB) return was slightly ahead of the Barclay Capital benchmark. One concern the Trustees had was whether to move money from fixed income. They moved some money to private real estate. Then they discussed the absolute fixed income strategy. That fund was recently launched and it did not have a long track record. Ms. Serene explained there is a strategy that is not interest rate sensitive that has a specific return pattern that allows managers in the portfolios to add alpha. The Board was invested in RTC funds for pension plans. Russell Investment created a similar private placement fund with a different legal structure from what non - qualified clients typically had, Clients would have to qualify as institutional investors, but it created additional review. Attorney Jensen thought it had to be a K -1 Plan. Ms. Serene responded they would be issued a K -1 schedule because there are taxable investors that invest in the product. It would not impact non - taxable investors. Attorney Jensen commented the product was still exempt under the current state of the law, but it was discussed at a National Association of Public Pension Attorney Conference that taxability was potentially pending. Frank Wan, Head of Research, Burgess Chambers Associates, suggested the Board prioritize what they want to accomplish and decide to address risk management, risk individually, market risk or interest risk. He noted the portfolio needed more alternative investments and many pension plans invest in hedge funds which have significantly more risk than what Ms. Serene was proposing. The fund may be a good start, but the idea was to watch the fund first to ensure it performed as expected. They could not measure the fund because rates did not increase. The members discussed if they should move money out of fixed income. Ms. Serene recommended if the Board was concerned about rising interest rates, they could take funds from fixed income or the MMB fund and move it to the absolute fixed income. They also have to be mindful of a higher proportion of non -U.S. exposure. Any movement would have to be modest. The fund costs 99 basis points where the MMB fund costs 49 basis points. The Board had previously discussed Russell adjusting their fee to be more in -line with the rest of their clients, and the fees were reduced from 79 basis points to 77 basis points. Mr. Llopis inquired if the product would mitigate the market impact when interest rates rise and Ms. Serene thought there was reason to 3 Meeting Minutes Police Officers Pension Fund Boynton Beach, Florida Augu 11, 201 believe there would be an equity market premium. If it was an alpha only strategy and if the managers performed poorly, there could be no gain. Mr. Wan agreed and noted over the last two quarters, the absolute return strategy outperformed by almost 2% and the second quarter by 1 %. He agreed if interest rates do not move, bonds would do better, but there was plenty of time to decide whether to invest in the product. For the benefit of new member Russell Faine, Chair Athol gave an overview of the fund, the role of Ms. Serene and Mr. Wan, and fund diversification and allocations. Ms. Serene agreed to provide additional information at the next meeting to help in this regard. She explained the large cap defensive equity fund was a U.S. large cap fund that is used in the portfolio to help keep non -U.S. exposure below the 25% threshold. The portfolio has global equities, fixed income, real estate, infrastructure and commodities. She explained Russell uses underlying managers as part of the fund structure to manage funds for their clients and a manager who handles the overall exposures based on strategic preferences. Russell manages macro risk, hires and fires managers, and adjusts weights or positions to counter market changes. Russell Investments manages the portfolio. Asset allocations are driven by the Investment Policy Statement (IPS) the Trustees adopted. They operate within its established guidelines established and in compliance with Florida Law. (Joe DeGuilio arrived 11:28 p.m.) Chair Athol advised many Boards have different managers. When changes in the market occurred, they would have to meet with all the different managers to make changes and it caused a lag. Russell Investments was hired to invest the funds and handle the managers. The Trustees originally split the fund between two managers, but Russell significantly outperformed and the Board took the entire fund and invested it with Russell Investments. The Board gave Russell investments the ability to make the changes timely. They have a pool and a percentage range in which to work and they adjust allocations as needed. Mr. Wan monitors the fund. Mr. Faine asked about the cost. Chair Athol responded at the end of the year, they look at the net of fee returns. Mr. Wan compares the Boynton Plan to other similar funds. if they pay more, it is worth it. The Boynton Beach Plan was the only plan Mr. Wan was aware of that operates in this fashion. Mr. Wan explained two years ago, the Board switched from a manager of managers to a multi -core product. Ms. Serene suggested Keith Brake, the lead portfolio manager for the absolute fixed income product and the MMB fund, speak with the Board in the future. It was hoped Mr. Brake could attend a meeting, but at a minimum, he could participate by phone. Chair Athol thought they would likely do a cost study and go from there six to nine months down the road. 2. Burgess Chambers & Associates - Head of Research, Frank Wan 4 Meeting Minutes Police Officers Pension Fund Boynton Beach, Florida August 11, 2015 a) Fund Performance review — Mr. Wan, explained the investment policy is the benchmark policy which Russell strives to achieve. For the last year, Russell made 4.6% net of investment fees, versus the target of 2.9 %. He explained the compliance report and advised the fund needed to achieve the 7.75% number consistently over time. This would relieve the City and participants from having to contribute more to the Plan. Mr. Wan explained they break down all the assets into other components, such as global equities, fixed income, global REITS, infrastructure and commodities and they are embedded in the multi fund product that was previously discussed. Currently there was a strategic plan for Russell to underweight REITS and commodities, and this strategy worked well for the Plan. Mr. Wan reviewed the Multi -Asset Core (MAC) product had REITS. They try to benchmark everything to get an idea of how the asset classes perform. For the past year, commodities were down 23.7 %. For the most recent quarter, REITS were down 9.1%, so having an underweight in those asset classes had been helpful. He explained commodity producing nations are very sensitive to economic cycles and to the U.S. dollar. The value of the dollar continued to climb so oil prices and other commodities had fallen. There is an inverse relationship between the two. Most pension plans do not hedge and the product would protect the fund from extreme volatility. REITS are sensitive to interest rate changes, and the fund was moving away from interest -rate environments. Ms. Serene explained the real estate in the portfolio were globally listed REITS, which are stocks that are traded. These were in the MAC product. There is also a private U.S. real estate holding and the underlying managers physically purchase buildings. Mr. Wan explained $6.1 million of the portfolio was invested in real estate that is more than 90% occupied. He thought the portfolio was moving in the right direction and they try to rank the managers against their benchmark. Every product they have, including the multi fund product, has a component he reviews. If any product deteriorates, he alerts the Board to watch and he makes inquiries to Ms. Serene. Mr. Wan advised they have earned 7.5% on average every year and were paying down the unfunded liability. The Boynton Beach Plan ranked in the top 29 percentile and for the last five years, earned 9.7 %. Chair Athol inquired if there was a correlation between the Boynton Beach Plan and Russell being able to make changes right away, as opposed to the other plans that have a lag. Mr. Wan thought it was a difficult question because the Board's return patterns were not typical pension return patterns. Their risk is not a high as typical pension risk. Measured by the standard deviation, they were at 8.1 % five years ago and the average peer group had 8.5% to 8.8 %. During the last three years, the Plan's average deviation was 4.6% and the average peer group had 6% deviation. By having indirect exposure, the Board can allocate more money to a fund they are already in, as opposed to having to enter a queue to enter a fund in which they were not invested. This resulted in higher earnings. 5 Meeting Minutes Police Officers Pension Fund Boynton Beach, Florida August 11, 2015 Mr. Wan explained they moved money into real estate and it exceeded the threshold of 7% in the IPS by 3 %. He distributed an IPS with one change. Ms. Serene inquired if she needed to increase the target weight from 5% to 7 %. Mr. Wan thought they should keep it at 5% and increase the upper threshold to 10 %. Motion 0 /o 0 to 7° o Mr. Llo p is moved to approve the change in the policy range from 0% to t /o 10% while keeping the strategic allocation the same. Mr. DeGuilio seconded the motion that unanimously passed. Mr. Wan commented from a portfolio standpoint, the Plan was performing better than other plans in Florida. IV. CORRESPONDENCE: N/A V. OLD BUSINESS: A. Disability Application: Update /Status 1) Gregory Kenny — Final Order LOD Disability — Approved July 21, 2015 Attorney Jensen announced Mr. Kenny's Final Order was approved. He separated from service from the City and his first benefit check was this month. They had to sign the Order for his disability which Ms. LaDue will put in his file and send him a copy. Chair Athol signed the document. VI. NEW BUSINESS: A. Invoices for review and approval: 1. Russell Investment Gp. — Quarter End 06 -30 -2015 - $136,783 2. Russell Payment Services — Quarter End 06 -30 -2015 - $1308.50 3. Bonni Jensen PA — Service May, Jun & Jul 2015 - $6,489.62 4. Burgess Chambers & Assoc — 2nd Qtr 2015 fee - $6,250 5. Gabriel, Roeder, Smith & Co- Service thru June 2015 - $3,593 Motion Mr. Llopis moved to pay the bills. Mr. Faine seconded the motion that unanimously passed. B. Attorney Report - Bonni Jensen 1. 2015 IRS Determination Letter 7 -28 -2015 6 Meeting Minutes Police Officers Pension Fund Boynton Beach, Florida August 11, 2015 Attorney Jensen announced the IRS determined the Plan was tax qualified and could continue to operate in a tax -free manner. The prior Determination Letter expired in 2014. They extended the letter to January 31, 2016 and 2016 would be the last time the IRS reviews individually designed plans such as pension and governmental plans because they cannot afford to run the program. They will only review plans when they are initially created and to determine if it is an individually designed plan. Attorney Jensen was waiting for the comment period to make further inquiries. Attorney Jensen asked if the Board wanted to file. She advised it will be the last time they could and she thought it was worthwhile to do so. After brief discussion there was agreement to continue to submit the letter until the IRS stopped their review. Motion Mr. Faine moved to complete the final IRS Tax Assessment. Mr. Llopis seconded the motion that unanimously passed. 2. Amend ment/Clarification to Disability Provision — Actuarial Impact Statement. Since the last meeting, there were two proposed amendments for the Plan; one for the changes made to the Collective Bargaining Agreement and the other for the 3% tier for new members. Attorney Jensen advised she was unsure it passed. Chair Athol gave the history of a prior disability application to Mr. Faine. Other plans gave 30 days to file for disability after termination. He explained there would be a language change to the Boynton Beach Plan to allow members to do the same. 3. Pending eadlines — New Reporting Requirements — Memo 7 -8 -2015 g p 9 q Attorney Jensen discussed Senate Bill (SB) 534 passed in 2013. The actuaries received a final ruling about it at the end of April so they filed the new SB 534 report. a. Required Reports /Disclosures for City's Website 6 -23 -15 Attorney Jensen advised the Trustees have to post the 534 Report and have it available for members and the public to view. Attorney Jensen advised they could post the report, the actuarial valuation, audit, a document showing years or return, the actuarial assumptions and asset allocations and a link to a summary fact sheet the State has on the webpage. Chair Athol had spoken with Scott Bauer and they will create a website for the Board. Chair Athol pointed out West Palm Beach has a website where members can go online and check their DROP accounts. He advised they would like Boynton Beach members to be able to apply online in the future although the Board still wanted physical contact with a Pension Administrator for verification. Ms. LaDue commented she had sent all the information to the City to include on the website. 7 Meeting Minutes Police Officers Pension Fund Boynton Beach, Florida August 11, 2015 Attorney Jensen spoke about the next collective bargaining agreement. The members have until September 30, 2016 to address the issues. They will need to negotiate a share account plan and decide whether to fund it, whether they will follow the statutory provisions or stay status quo. The League of Cities was encouraging all to opt for mutual consent. Attorney Jensen explained they needed to renew their request about whether they are a supplemental plan. The State never responded to the Board's question and they did not pursue the matter because the legislation died. They still needed an opinion. Chair Athol inquired if they qualified or were already a share plan. Attorney Jensen would have to determine when the plan was created and thought it had to be after December 2000. She explained if it was a share plan, they would still have to address the mutual consent issue. b. Revised Chapter 112.664 by GRS 6 -26 -15 4. Memo to Interested Parties June 2015 — Reporting Requirements 5. Administrative Expense Budget — Sample 7 -15 -2015 a. Administrative Expenses for past years 2011, 2012, 2013 & 2014 Attorney Jensen explained this had to be filed with the City before October 1 The previous expenses for 2011 through 2014 were included in the meeting backup. She explained they need to use all the items in the administrative expense column and the performance monitor because administrative expenses was defined as all the items in the administrative expense column and all other consultants. She recommended increasing those amounts by 20% because as of September 30, 2014, it did not include what was expended this year. She also recommended adding a miscellaneous expense line item to deal with any potential disability applications. The legal fees listed did not include Mr. Epstein's disability because insurance paid for it. The actuary figures will increase due to new reporting requirements. After discussion, the members approved the following expenses for the 2015/2016 budget: • Actuary fees - $40,000; • Administrator's fees - $30,132; • Audit fees - $16,000; • Bank Charges - $250; • Computer service - $10,000; • Liability insurance - $30,000; • Dues and subscriptions - $725; • Legal fees - $20,000; • Medical advisor would be handled as a miscellaneous expense; • Office expenses - $1,800; • Office rent - $8,000; • Pension program maintenance - $5,000; 8 Meeting Minutes Police Officers Pension Fund Boynton Beach, Florida A ug u st 11, 2015 • Seminars and training - $35,000; • Printing expense - $4,000; and • Miscellaneous expenses - $50,000. • Performance Monitor - $20,000 • Total - $270,907 It was noted they need to bid liability insurance and use a different broker. Attorney Jensen explained this item will be on every meeting agenda because they need to compare the current expenses against the budget. Ms. LaDue noted sometimes they do not have financials for the quarter. Motion Mr. Llopis moved to approve the budget of $251,907 per the categories. Mr. DeGuilio seconded the motion that unanimously passed. C. Police & Fire Pension Board — RFP for Pension Administrator — Joint venture — Set -up and review process. Attorney Jensen provided a copy of a standard RFP seeking the services of an Administrative Manager. She believed the Firefighters also received a copy. Chair Athol commented they need to issue an RFP, review the responses next year and interview the candidates. If a candidate is selected between March and June of next year, they can hire someone to shadow Ms. LaDue for six months. Attorney Jensen commented they had to include in the RFP they have their own software system they would continue to use that keeps track of the members. They could ask if potential candidates were familiar with the current software. Ms. LaDue reviewed the document and inquired if the administrator would draft the minutes in the manner currently provided and Chair Athol did not want to eliminate that service. Ms. LaDue inquired if the language to assist in making arrangements and reservations should be included because the members do that on their own. Chair Athol thought the administrator should be familiar with how to handle those tasks. Attorney Jensen was aware from other administrators that when they know their Board members will attend a conference and no one has made a reservation, the administrator reserves a block of rooms and issues checks directly to the hotel so taxes will not be charged. They need to be able to review and understand expense sheets. Ms. LaDue recommended removing the word assist with the plan financials in the RFP because there was no assistance in reconciliation of accounts. It is a job they do themselves. They would also remove the word assist from assist in maintenance of the general ledger and the same for creation of financial statements. It was noted they may not use all those skills, but they need to have them. 9 Meeting Minutes Police Officers Pension Fund Boynton Beach, Florida August 11, 2015 Attorney Jensen was aware the Firefighters' Pension Board was interested in designing around an outside company and a person. She suggested they indicate their office hours if they come from a company. Chair Athol spoke to one of the Firefighters' Trustees because the RFP would be issued in conjunction with their Board to cover both pension plans. The idea was to hire someone that was able to be in the office. They do not want an outside source via phone or available through a messaging system, even if it was associated with a company. They must be physically in the office and have office hours. Attorney Jensen commented the General Employees' Board has office hours at City Hall one day a week. Chair Athol wanted normal office hours to be included in the RFP. He recommended any further changes to the RFP be sent to Attorney Jensen. The RFP would be finalized at the November meeting and issued. Attorney Jensen had a list of organizations to send the RFP. She cautioned if the position is advertised in pension magazines, it would cost a lot of money and they would receive responses from all over the country. Chair Athol wanted someone familiar with a Florida plan. Ms. LaDue was aware of two people already interested in the position. Attorney Jensen also was aware of individuals that would be interested in the RFP. The Firefighters' and the Police Pension Boards should coordinate and issue one RFP. They will have a deadline in January or February, rank the candidates and interviews would be coordinated with both Boards. Then they could have a joint meeting. D. Review and Verification of Retirement Benefits: a. Luis Rodrigues retirement into DROP Chair Athol noted this item was a verification of benefits. Motion Mr. Llopis moved to approve. Mr. Faine seconded the motion that unanimously passed. b. Gregory Kenny LOD Disability Motion Mr. Llopis moved to approve Mr. Kenny's Disability benefits. Mr. DeGuilio seconded the motion that unanimously passed. E. Rental Agreement Starting October Ms. LaDue received the rental agreement and noted there was an increase of 5% for the rent. There were other expenses such as photocopies. It was noted the rent is split between the Firefighters' and the Police Pension Boards. 10 Meeting Minutes Police Officers Pension Fund Boynton Beach, Florida August 11, 2015 Motion Mr. DeGuilio moved to approve the 5% increase. Mr. Llopis seconded the motion that unanimously passed. F. Trustee Expenses Chair Athol noted administrative travel expenses are paid per diem. This item would increase the per diem payment to $60 and increase three percent each year. Attorney Jensen explained a motion to adopt the revised statement of policy regarding these expenses was needed. Motion Mr. Llopis moved to approve. Mr. DeGuilio seconded the motion that unanimously passed. VII. PENSION ADMINISTRATOR'S REPORT 1. Benefits as of 08 -01 -2015 Ms. LaDue explained this item was for information only. 2. Review of Scheduled 2016 Quarterly Board Meetings Ms. LaDue explained the City asked for this because they want to include all the Board meetings in the City's calendar. VIII. COMMENTS: None. IX. ADJOURNMENT: There being no further business to discuss, Chair Athol adjourned the meeting at 12:55 p.m. Catherine Cherry Minutes Specialist 102815 11 Russell Investments Invoice Invoice for: Invoice Number Russell Client ID Billing Period Ending City of Boynton Beach Police Retirement 51357 C04616001 09/30/2015 Fund 1500 Gateway Blvd #220 Invoice Date Payment Terms Total Amount Due Boynton Beach, FL 33426 10119/2015 Net 30 Days $ 131,372.00 Mail to: City of Boynton Beach Police Retirement Specify Remittance Information Fund 1500 Gateway Blvd #220 ❑ Payment by check Boynton Beach, FL 33426 Make check payable to: Russell Investments Check Amount $ I��II���II��I��I��I�I�II����I�II ❑ Request payment by Direct Debit Authorized Signer See additional instructions on reverse side. Please return upper portion with your check or direct debit request - --------- ------------------------------------ ----------- The following is a summary of your account(s). For more information, please review the enclosed detail. Direct Debit per Description of Service Fee Amount Standing Instructions or Amount Due Payments Received Russell Investments Investment Management Fees $ 131,372.00 $ 0.00 $ 131,372.00 Current Period Fees $ 131,372.00 $ 0.00 $ 131,372.00 Balance Forward 136,783.00 (136,783.00) 0.00 Total Amount Due $ 131,372.00 Invoice Number Invoice Date Russell Client ID Payment Terms Billing Period Ending 51357 10/19/2015 C04616001 Net 30 Days 09/30/2015 Current Period Over 30 Days Over 60 Days Over 90 Days Total Amount Due $ 131,372.00 $ 0.00 $ 0.00 $ 0.00 $ 131,372.00 Invoice for: City of Boynton Beach Police Retirement Fund 1500 Gateway Blvd #220 Boynton Beach, FL 33426 (See reverse side for additional information) Invoice Invoice Number: 51357 Billing Period Ending: 09/30/2015 Russell Investments - FEE DETAIL Investment Management Fees City of Boynton Beach Police Retirement Fund Boynton Beach Police Officers Retirement Trust Funds Investment Account Account Number: QU7W Fund Name Average Rate% Fee Amount Market Value Russell Multi -Asset Core Fund 30,702,743 0.23000 70,616.00 Russell Large Cap Defensive 20,644,497 0.16500 34,063.00 Equity Fund Russell Multi- Manager Bond Fund 22,410,408 0.12250 27,453.00 Russell Real Estate Equity Fund 6,083,011 0.36250 2 2,051. 00 Subtotal 79,840,659 $ 154,183.00 Russell Real Estate Equity Fund - Internal Fee Paid (22,811.00) Account Total $ 131,372.00 Total Investment Management Fees $ 131,372.00 Page 2 Russell Investments MANAGER 4525 - - INVOICE NO. 1509074706 -9997 PO BOX 856847 DATE 2015/10/29 Minneapolis, MN 55485 -6847 PAGE 1 OF 1 TOTAL CHARGES CURRENT PERIOD USD 1,004.99 9BYM- Police Officer Retirement Trust Police Officer Retirement Trust FOR 3 MONTH PERIOD 7/01/15 to 9/30/15 City of Boynton Beach DB Boynton Police & Fire Pension Fnds, 1500 Gateway B1vd,Suite #220Account ID: BOYNTON POLICE Pension Administrator Pay Type 3 Boynton Beach, FL 33426 ATTENTION Barbara L. Ladue PLEASE DETACH THIS PORTION AND RETURN WITH YOUR PAYMENT CHARGES BENEFIT PAYMENT CHECK FEES ACH Benefit Payments 321 AT 1.25 401.25 Benefit Payments 9 AT 1.25 11.25 Lump Sum Payments 9 AT 10.00 90.00 BENEFIT PAYMENT: OTHER FEES Pensioners Added 2 AT 0.50 1.00 State Tax Filing 9 AT 25.00 225.00 ** SUBTOTAL FEES ** 728.50 OUT OF POCKET CHARGES POSTAGE 15 -2014 Tax Form 1099R Postage 8.55 112 -2014 Tax Form 1099R Postage 63.84 72.39 Advice of Deposit 181.26 Benefit Payment 5.13 Lump Sum 5.13 UPS DELIVERY UPS Charges 7/30/2015 6.32 UPS Charges 8/28/2015 6.26 12.58 ** SUBTOTAL OUT OF POCKET ** 276.49 CURRENT CHARGES USD 1,004.99 INV.# 1509074706 -9997 9BYM- Police Officer Retirement Trust 2015/10/29 LAW OFFICES OF BONNI JENSEN, P.A. October 21, 2015 Via Email Boynton Beach Police Officers' Pension Fund Toby Athol 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 Re: Legal Services Provided Invoice #73442 Dear Toby: Enclosed please find the Firm's invoice for services rendered for the period that ended 10/15/2015. Your current balance due is $5,253.22. Ll As a result of the transition to Klausner, Kaufman, Jensen & Levinson billing (see enclosed flyer), you will receive another invoice at the end of this month for billing charges through the end of October. Future invoices will be billed as of the last day of the month. Please note that after November 1, 2015, invoices will be payable to Klausner, Kaufman, Jensen & Levinson, enclosed is a W -9 for your records. If you have any questions, please do not hesitate to contact me. Sincerely yours, r Bonni S. Jensen BSJIIg Enclosure Copy to: Barbara LaDue Via Email Only 400 EXECUTIVE CENTER DRIVE, SUITE 207 ♦ WEST PALM BEACH, FLORIDA 33401 -2922 PHONE: (561) 686 -6550 ♦ FAX: (561) 686 -2802 LAW OFFICES OF BONNI JENSEN, P.A. 400 Executive Center Drive Suite 207 West Palm Beach, FL 33401 -2922 bsjteam @robertdklausner.com & bonni @robertdklausner.com Invoice submitted to: Boynton Beach Police Officers' Pension Fund Attn: Chairman 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 Copy to: Barbara LaDue - Via Email October 20, 2015 In Reference To: FOR PROFESSIONAL SERVICES RENDERED AS FOLLOWS: Client/ File No.: 0188 Invoice #73442 Professional Services Hrs /Rate Amount Administrator Administrator 9/20/2015 BSJ Review & Respond to email from Barbara LaDue & Attachments re: 0.25 56.25 Request For Proposal 225.00 /hr Administrator Administrator 9/21/2015 PH Revise Request For Proposal for Administrative Services per Bonni's 0.20 15.00 mark up 75.00 /hr Administrator Administrator 10/7/2015 BSJ Review and revise Request For Proposal 0.10 22.50 Review email from Adam Levinson with Boynton Beach Firefighters 225.00 /hr Administrator Administrator 10/8/2015 PH Revise Request For Proposal for Administrative Services per Bonni's 0.70 52.50 mark up 75.00 /hr E -mail to Trustees & Administrator Administrator Boynton Beach Police Officers' Pension Fund Page 2 Hrs /Rate Amount SUBTOTAL: [ 1.25 146.25] Insurance Insurance 10/7/2015 BSJ Review email from Barbara LaDue re: Notice of Bond Cancellation Form 0.25 56.25 Insurance 225.00/hr Insurance 10/8/2015 BSJ Telephone calls with Florida League of Cities re: Canceled Bond 0.50 112.50 Insurance 225.00/hr Insurance 10/9/2015 BSJ E -mail to Barbara LaDue 0.20 45.00 Review email from Laura Underhill 225.00 /hr Insurance SUBTOTAL: [ 0.95 213.751 Inv Mqr - Frank Russell Inv Mgr - Frank Russell 10/8/2015 BSJ Review Notice of Russell Purchase by TA Associates 0.20 45.00 E -mail to Trustees 225.00 /hr Inv Mgr - Frank Russell SUBTOTAL: j 0.20 45.00] Minutes of Trustee Meetings Minutes of Trustee Meetings 10/8/2015 BSJ Review and revise Minutes of 10/8/15 Meeting 0.35 78.75 Minutes of Trustee Meetings 225.00 1hr Minutes of Trustee Meetings BSJ E -mail to Catherine Cherry- Guberman re: Changes to Minutes 0.20 45.00 Minutes of Trustee Meetings 225.00 /hr SUBTOTAL: [ 0.55 123.75] Boynton Beach Police Officers' Pension Fund Page 3 Hrs /Rate Amount Miscellaneous Matters Miscellaneous Matters 10/14/2015 BSJ Research NCPERS Code of Conduct 0.10 22.50 Miscellaneous Matters 225.00 /hr Miscellaneous Matters PH E -mail to Trustees & Administrator re: NCPERS Code of Conduct 0.05 3.75 Miscellaneous Matters 75.00/hr SUBTOTAL: [ 0.15 26.25] Plan Document Plan Document 10/9/2015 PH Download Plan Document and Add Ordinance 15 -022 to New Plan 0.50 37.50 Document 75.00 /hr Plan Document SUBTOTAL: [ 0.50 37.50] Policies - General Policies - General 9/29/2015 BSJ Correspondence with Barbara LaDue re: 2005 Statement of Policy 0.50 112.50 Regarding DROP Distributions 225.00/hr Policies - General Policies - General PH E -mail to Barbara LaDue, Chairman & Secretary re: 2005 Statement of 0.30 22.50 Policy Regarding DROP Distributions 75.00 /hr Ship via UPS to Barbara LaDue Policies - General SUBTOTAL: [ 0.80 135.00] QDRO Procedure QDRO Procedure 10/1/2015 BSJ Review emails from Barbara LaDue & Attached Documents 0.50 112.50 Telephone call with Captain McNevin 225.00/hr Boynton Beach Police Officers' Pension Fund Page 4 Hrs /Rate Amount E -mail to Captain McNevin QDRO Procedure QDRO Procedure 10/6/2015 BSJ Review & Respond to email from Captain McNevin 0.20 45.00 QDRO Procedure 225.00/hr QDRO Procedure 10113/2015 BSJ Review Marital Settlement Agreement & Pension Addendum 1.00 225.00 E -mail to Barbara LaDue 225.00/hr QDRO Procedure SUBTOTAL: [ 1.70 382.50] State State 10/13/2015 BSJ Draft Letter to State 1.00 225.00 Review Actuarial Valuation 225.00/hr Review Audit E -mail to Barbara LaDue re: Page 6A State Report State State 10/14/2015 BSJ Correspondence with Julie Browning with Attachments re: Supplemental 0.50 112.50 Plan Determination 225.00/hr State State PH E -mail to Julie Browning, Trustees, & Administrator re: Letter with 0.10 7.50 Attachments re: Supplemental Plan Determination 75.00 /hr State State PH E -mail to Barbara LaDue & Pete Strong requesting Page 6A 0.20 15.00 State 75.00/h r SUBTOTAL: [ 1.80 360.00] For professional services rendered 7.90 $1,470.00 Boynton Beach Police Officers' Pension Fund Page 5 Additional Charges Amount Bill File 10/15/2015 Copy Charges 10.95 SUBTOTAL: [ 10.95] Total additional charges $10.95 For professional services rendered 7.90 $1,480.95 Total amount of this bill $1,480.95 Previous balance $3,772.27 Balance due $5,253.22 LAW OFFICES OF BONNI JENSEN, P.A. September 25, 2015 Via Email Boynton Beach Police Officers' Pension Fund Toby Athol 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 Re: Legal Services Provided Invoice #73369 Dear Toby: Enclosed please find the Firm's invoice for services rendered for the period that ended 9/15/2015. Your current balance due is $3,772.27. If you have any questions, please do not hesitate to contact me. Sincerely yours, Bonni S. Jensen BSJ /lg Enclosure Copy to: Barbara LaDue Via Email Only 400 EXECUTIVE CENTER DRIVE, SUITE 207 ♦ WEST PALM BEACH, FLORIDA 33401 -2922 PHONE: (561) 686 -6550 ♦ FAX: (561) 686 -2802 LAW OFFICES OF BONNI JENSEN, P.A. 400 Executive Center Drive Suite 207 West Palm Beach, FL 33401 -2922 bsjteam @robertdklausner.com & bonni @robertdklausner.com Invoice submitted to: Boynton Beach Police Officers' Pension Fund Attn: Chairman 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 Copy to: Barbara LaDue - Via Email September 24, 2015 In Reference To: FOR PROFESSIONAL SERVICES RENDERED AS FOLLOWS: Client / File No.: 0188 Invoice #73369 Professional Services Hrs /Rate Amount Administrator Administrator 9/8/2015 BSJ E -mail to Barbara LaDue re: Request For Proposal 0.50 112.50 Review and revise Request For Proposal 225.00 /hr Administrator SUBTOTAL: 1 0.50 112.50] Attendance at Trustee Meetings Attendance at Trustee Meetings 8/17/2015 LG Review Post Meeting Folder 0.30 22.50 Attendance at Trustee Meetings 75.00 /hr SUBTOTAL: 1 0.30 22.501 Boynton Beach Police Officers' Pension Fund Page 2 Hrs /Rate Amount Investment Policy Guidelines Investment Policy Guidelines 8/1712015 BSJ Review Investment Policy Guidelines from Frank Wan 0.20 45.00 Investment Policy Guidelines 225.00/hr SUBTOTAL: [ 0.20 45.00] Participant - Kenny Participant - Kenny 8/26/2015 BSJ Correspondence with Barbara LaDue re: Original MRI Disc 0.50 112.50 Participant - Kenny 225.00/hr Participant - Kenny PH E -mail to Barbara LaDue & Toby Athol re: Original MRI Disc 0.30 22.50 Ship via UPS to Barbara LaDue 75.00/hr Participant - Kenny SUBTOTAL: [ 0.80 135.001 Plan Document Plan Document 8/28/2015 BSJ Review Actuarial Impact Statement for Collective Bargaining Agreement 0.50 112.50 Change Ordinance 225.00/hr Plan Document Plan Document PH E -mail to Lynn Swanson re: Actuarial Impact Statement received from 0.05 3.75 Pete Strong 75.00 /hr Plan Document Plan Document 9/1/2015 BSJ Telephone calls with Toby Athol re: Misc Matters Disability & Administrator 0.25 56.25 Plan Document 225.00 /hr Plan Document BSJ Review Pension Plan Document 0.20 45.00 Plan Document 225.00 /hr Boynton Beach Police Officers' Pension Fund Page 3 Hrs /Rate Amount Plan Document 9/14/2015 BSJ Correspondence with Sarah Carr re: Ordinance 15 -022 0.50 112.50 Plan Document 225.00 /hr Plan Document PH E -mail to Sarah Carr, Barbara LaDue, Jason Llopis, & Toby Athol re: 0.30 22.50 Ordinance 15 -022 & Actuarial Impact Statement from GRS 75.00 /hr Plan Document SUBTOTAL: [ 1.80 352.50] State State 8/24/2015 BSJ E -mail to Trustees re: 185 Monies 0.25 56.25 State 225.00 /hr State 9/1/2015 BSJ Review email from Barbara LaDue re: 185 Money Received 0.10 22.50 State 225.00/h r State 9/9/2015 BSJ Telephone call with Julie Oldbury 0.25 56.25 State 225.00 /hr SUBTOTAL: [ 0.60 135.001 For professional services rendered 4.20 $802.50 Additional Charges Bill File 9/15/2015 Copy Charges 1.20 SUBTOTAL: [ 1.20] Participant - Kenny 8/26/2015 United Parcel Service Invoice No.: OOOOF49280355 10.96 Tracking #1 ZF492804294308231 to Barbara LaDue re: Medical Records & MRI Boynton Beach Police Officers' Pension Fund Page 4 Amount 8/26/2015 United Parcel Service Invoice No.: OOOOF49280355 7.05 Tracking #1ZF492804294308231 Pickup Request No.: 2938605C6C2 Re: Medical Records & MRI SUBTOTAL: [ 18,01] Total additional charges $19.21 For professional services rendered 4.20 $821.71 Total amount of this bill $821.71 Previous balance $2,950.56 Balance due $3,772.27 LAW OFFICES OF BONNI JENSEN, P.A. August 24, 2015 Via Email Boynton Beach Police Officers' Pension Fund Toby Athol 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 Re: Legal Services Provided Invoice #73308 Dear Toby: Enclosed please find the Firm's invoice for services rendered for the period that ended 8/15/2015. Thank you for your payment of $6,489.62. Your current balance due is $2,950.56. If you have any questions, please do not hesitate to contact me. Sincerely yours, Bonni S. Jensen Signed in Ms. Jensen's absence to expedite delivery BSJ /lg Enclosure Copy to: Barbara LaDue Via Email Only 400 EXECUTIVE CENTER DRIVE, SUITE 207 ♦ WEST PALM BEACH, FLORIDA 33401 -2922 PHONE: (561) 686 -6550 ♦ FAX: (561) 686 -2802 LAW OFFICES OF BONNI JENSEN, P.A. 400 Executive Center Drive Suite 207 West Palm Beach, FL 33401 -2922 bsjteam @robertdklausner.com & bonni @robertdklausner.com Invoice submitted to: Boynton Beach Police Officers' Pension Fund Attn: Chairman 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 Copy to: Barbara LaDue - Via Email August 24, 2015 In Reference To: FOR PROFESSIONAL SERVICES RENDERED AS FOLLOWS: Client / File No.: 0188 Invoice #73308 Professional Services Hrs /Rate Amount Actuary - GRS Actuary - GRS 8/7/2015 BSJ Correspondence with Mayor Jerry Taylor responding to Letter to Board 0.50 112.50 dated 7/8/15 225.00/hr Actuary - GRS Actuary - GRS PH E -mail to Mayor Jerry Taylor, Lori LaVerriere, Tim Howard, Toby Athol, 0.10 7.50 Jason Llopis, Barbara LaDue, & Pete Strong responding to Letter to 75.00 /hr Board dated 7/8/15 Actuary - GRS SUBTOTAL: [ 0.60 120.00] Administrator Administrator 7/31/2015 BSJ E -mail to Toby Athol 0.20 45.00 Review Request For Proposal for Administrator 225.00 /hr Administrator Boynton Beach Police Officers' Pension Fund Page 2 Hrs /Rate Amount Administrator 8/6/2015 BSJ Review & Respond to emails from Adam Levinson re: Administrator 0.25 56.25 Request For Proposal 225.00/hr Administrator Administrator BSJ Review emails from Adam Levinson re: Coordination of Request For 0.25 56.25 Proposal Process with Boynton Fire Fund 225.00/hr Administrator SUBTOTAL: [ 0.70 157.50] Attendance at Trustee Meetings Attendance at Trustee Meetings 7/21/2015 BSJ Attend Special Meeting 2.00 450.00 Attendance at Trustee Meetings 225.00/hr Attendance at Trustee Meetings 7/22/2015 PH Review Post Meeting Folder 0.50 37.50 Attendance at Trustee Meetings 75.00 /hr Attendance at Trustee Meetings 8/11/2015 BSJ Attend Meeting 2.50 562.50 Attendance at Trustee Meetings 225.00/hr SUBTOTAL: [ 5.00 1,050.00] Meeting Notices and Agendas Meeting Notices and Agendas 8/6/2015 PH Prepare Attorney Report, Handouts, and Notebook for upcoming Meeting 1.50 112.50 -8/11/15 75.00 /hr Meeting Notices and Agendas Meeting Notices and Agendas 8/11/2015 BSJ Review Agenda and Backup Material 0.25 56.25 Meeting Notices and Agendas 225.00/hr SUBTOTAL: ( 1.75 168.75] Boynton Beach Police Officers' Pension Fund Page 3 Hrs /Rate Amount Participant - Kenny Participant - Kenny 7/2012015 BSJ Review Medical Records, IME & Workers Compensation Records 2.00 450.00 Telephone call with City's Workers Compensation Specialist 225.00 /hr Telephone call with Chiefs Office E -mail to Chief Katz Participant - Kenny Participant - Kenny PH Copies of all IME's & FCE 1.00 75.00 Assemble 10 Copies for Discussion at the Meeting 75.00 /hr Participant - Kenny Participant - Kenny 7/21/2015 BSJ E -mail to Chief Katz 0.10 22.50 Review Response from Chief Katz 225.00 /hr Participant - Kenny Participant - Kenny 7/22/2015 PH Revise Order Granting Disability Disabili per Bonni's mark up 0.50 37.50 Participant - Kenny 75.00/hr Participant - Kenny 7/26/2015 BSJ Draft Order 0.50 112.50 Participant - Kenny 225.00/hr Participant - Kenny 7/30/2015 BSJ Review and revise Order 0.75 168.75 Review Plan Document 225.00/hr Review Kenny File Participant - Kenny Participant - Kenny PH Revise Order on Kenny per Bonni's mark up 0.70 52.50 E -mail to Trustees & Administrator for Consideration at the Meeting 75.00 /hr Participant - Kenny Participant - Kenny 8/1112015 BSJ Correspondence with Barbara LaDue re: Signed Order 0.50 112.50 Participant - Kenny 225.00 /hr Boynton Beach Police Officers' Pension Fund Page 4 Hrs /Rate Amount Participant - Kenny 8/11/2015 PH E -mail to Barbara LaDue, Toby Athol, & Jason Llopis re: Signed Order 0.30 22.50 Ship via UPS to Barbara LaDue 75.00 /hr Participant - Kenny SUBTOTAL: [ 6.35 1,053.75] Plan Document Plan Document 8/13/2015 BSJ E -mail to Pete Strong re: Status of Impact Statement for Collective 0.10 22.50 Bargaining Agreement Amendment - New Hire 3% Multiplier 225.00 /hr Plan Document Plan Document BSJ E -mail to Lynn Swanson re: Status 0.10 22.50 Plan Document 225.00/hr SUBTOTAL: [ 0.20 45.00] Policies - General Policies - General 8/11/2015 BSJ Correspondence with Barbara LaDue re: Executed Expense Policy 0.50 112.50 Policies - General 225.00 /hr Policies - General PH E -mail to Barbara LaDue, Toby Athol, & Jason Llopis re: Executed 0.30 22.50 Expense Policy 75.00 /hr Ship via UPS to Barbara LaDue Policies - General SUBTOTAL: [ 0.80 135.00] State State 7/27/2015 BSJ Review Q &A from Division of Retirement re: Implementation of SB172 0.25 56.25 State 225.00/hr SUBTOTAL: [ 0.25 56.25] Boynton Beach Police Officers' Pension Fund Page 5 Hrs /Rate Amount Trustee Form 1 Trustee Form 1 7/21/2015 PH E -mail to Barbara LaDue requesting Contact Information 0.10 7.50 Trustee Form 1 75.00 /hr Trustee Form 1 7/22/2015 PH E -mail to Russell Faine re: Form 1 0.10 7.50 Trustee Form 1 75.00 /hr Trustee Form 1 PH E -mails to Barbara LaDue re: Russell Faine's Email Address to Resend 0.10 7.50 Email to Russell Faine 75.00 /hr Trustee Form 1 Trustee Form 1 BSJ Review email from Barbara LaDue re: Notice of Resignation of John 0.10 22.50 Huntington from Board 225.00/hr Trustee Form 1 Trustee Form 1 7/23/2015 PH Telephone call with Toby Athol re: Russell Faine's Email Address 0.05 3.75 Trustee Form 1 75.00 /hr SUBTOTAL: [ 0.45 48.75] For professional services rendered 16.10 $2,835.00 Additional Charges Bill File 8/15/2015 Copy Charges 101.55 SUBTOTAL: [ 101.55] Participant - Kenny 8/11/2015 United Parcel Service Invoice No.: OOOOF49280335 6.96 Tracking #1ZF492800390819359 to Barbara LaDue re: Kenny Order & Expense Policy Boynton Beach Police Officers' Pension Fund Page 6 Amount 8/11/2015 United Parcel Service Invoice No.: OOOOF49280335 7.05 Tracking #1ZF492800390819359 Pickup Request No.: 2937K2H071M Re: Kenny Order & Expense Policy SUBTOTAL: [ 14.01] Total additional charges $115.56 For professional services rendered 16.10 $2,950.56 Total amount of this bill $2,950.56 Previous balance $6,489.62 Accounts receivable transactions 8/21/2015 Payment - Thank YouL Check No. 053571 ($ 6,489.62) Total payments and adjustments ($6,489.62) Balance due $2,950.56 BURGESS CHAMBERS & ASSOCIATES, INC Invoice INVESTMENT ADVISORS S.E.C. REGISTERED 315 E. Robinson Street, Suite 690 Date Invoice # Orlando, Florida 32801 9/10/2015 15 -259 Bill To Boynton Beach Police Officers' Pension Barbara La Due, Administrator 1500 Gateway Blvd, Suite 220 Boynton Beach, Florida 33426 �I Description Amount Third Quarter 2015 Investment and Performance Monitoring and Advisory Fee per Contract 6,250.00 Tota $6,250.00 Phone # Fax # (407) 644 -0111 (407) 644 -0694 f--%T) Gabriel, Roeder, Smith & Company Consultants & Actuaries One East Broward Blvd. Suite 505 Invoice Ft. Lauderdale, Florida 33301 -1804 (954) 527 -1616 9/11/2015 416367 Please Remit To: Attention: Ms. Barbara La Due Dept. # 78009 Pension Administrator Gabriel, Roeder, Smith & Company Municipal Police Officers' Retirement Fund PO Box 78000 City of Boynton Beach Detroit, Michigan 48278 -0009 Renaissance Executive Suites 1500 Gateway Blvd., Suite 220 Boynton Beach, Florida 33426 Federal Tax • 38- 1691268 �i For professional actuarial services rendered for the Boynton Beach Municipal Police Officers Retirement Fund through 8/31/2015 Service Purchase Calculations for: Martens and Naulty- Willis 2.00 450.00 900.00 Line -of -Duty Disability Retirement Benefit Calculation for Kenny 225.00 DROP Retirement Benefit Calculation for Rodrigues 225.00 Preparation for and attendance by Pete Strong at Special Pension Board meeting held on 874.00 July 21, 2015 Preparation of Actuarial Impact Statement with 30 -year projections (dated August 27, 4,968.00 2015) for proposed ordinance to reduce benefit multiplier for Police Officers hired after on and after October 1, 2015 Amount Due $7,192 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. Page 1of1 Gabriel, Roeder, Smith & Company STATEMENT I Date! 10/15/2 Dept. #78009 Account'. I BOYNTONP P.O. Box 78000 Detroit MI 48278 -0009 Amount Pai (248) 799 -9000 Ext. 1151 BOYNTON BEACH MUNICIPAL POLICE OFFICERS RETIREMENT FUND - ACCOUNTS PAYABLE RENAISSANCE EXECUTIVE SUITE 1500 GATEWAY BLVD., SUITE 220 BOYNTON BEACH, FL 33426 _ ^Please return this portion with your payment' Document No. Date Code Description Amount Balance 416367 9/11/2015 SLS $7,192.00 $7,192.00 PYMNT000000044525 6/2/2015 PMT 413314 ($10.00) $7,182.00 n $7 182.00 Please allow five business days for posting of payments to your account. 0 -30 Days 31 - 60 Days 61 - 90 Days 91 and Over ($10.00) $7,192.00 $0.00 $0.00 Codes: SLS = Sales/ Invoices FIN = Finance Charges CR = Credit Memos SCP = Scheduled Payments SVC = Service / Repairs RTN = Returns DR = Debit Memos WRN = Warranties PMT = Payments Barbara Ladue From: Pat Holt <bsiteam @robertdklausner.com> Sent: Wednesday, October 14,201S 4:08 PM To: Bonni Jensen Cc. BSJ Team Subject: NCPERS Code of Conduct & Schedule A Packet Trustees and Administrators: Included herein you will find correspondence from Hank Kim introducing the NCPERS Code of Conduct packet for consideration by public retirement systems. Our firm recommends that all public pension funds review and consider adopting the Code of Conduct. If adopted, the Code would be sent to all of your service providers to help identify conflicts of interest. We ask that you place the NCPERS Code of Conduct on one of your upcoming meeting agendas for discussion. KLAUSNER, KAUFMAN, JENSEN & LEVINSON 7080 N.W. 4th STREET PLANTATION, FLORIDA 33317 Telephone: (954) 916 -1202 www.robertdklausner.com X NCPERS September 16, 2015 Dear Public Pension Officials: The National Conference on Public Employee Retirement Systems (NCPERS) recommends that all public pensions 1) adopt the enclosed Code of Conduct for Public Pension Service Providers, 2) ask your service providers to endorse the Code of Conduct, and 3) let us know when your plan has adopted the Code of Conduct and your service providers have endorsed the Code of Conduct. The NCPERS Code of Conduct for Public Pension Service Providers identifies 10 principles for service providers. Pension plan fiduciaries are obligated to make prudent, informed decisions about plan services, with an eye at all times on discouraging conflicts of interest. NCPERS created this code of conduct to help fiduciaries and managers articulate 1 strong, consistent ethical expectations for service providers across the board. The accompanying packet includes: 1. The NCPERS Code of Conduct for Public Pension Service Providers 2. The 2015 Schedule A which lists foundations, think tanks, and other nonprofit entities that engage in ideologically, politically, or donor driven activities to undermine public pensions 3. A description of the annual process to determine Schedule A 4. A fiduciary memo 5. Model motions that public pension boards can use to adopt the Code of Conduct This packet is provided so that the adoption and implementation of the Code of Conduct is simple and easy because we need ALL public pensions, regardless of whether you're an NCPERS member or not, to get behind this effort. Without your participation we have little chance to ensure that service providers are free of conflicts and are acting in the best interest of your plan and its participants. As always please contact us at info @NCPERS.org or 202 - 624 -1456 if you have any questions or comments. Sincerely, x Hank Kim, Esq. Executive Director & Counsel Enclosures: NCPERS Code of Conduct for Public Pension Service Providers Schedule A Schedule A Annual Process Fiduciary Memo Model Motions [Hi NCPERS 444 North Capitol Street NW Suite 630 ! Washington DC ' 20001 2 NATIONAL CONFERENCE ON PUBLIC EMPLOYEE RETIREMENT SYSTEMS CODE OF CONDUCT FOR PUBLIC PENSION SERVICE PROVIDERS Companies, firms, and other entities that provide services and products to public sector pension plans must: 1. Act in a professional and ethical manner at all times in dealings with public plan clients. 2. Act for the benefit of public plan clients. 3. Act with independence and objectivity. 4. Fully disclose to public plan clients-conflicts of interest that arise that may impair the ability to act independently or objectively. 5. Act with reasonable care, skill, competence, and diligence when engaging in professional activities. 6. Communicate with public plan clients in a timely and accurate manner. 7. Uphold the applicable law, rules, and regulations governing your sector and profession. 8. Fully disclose to public plan clients all fees charged for the products or services provided to said client. 9. Not advocate for the diminishment of public defined benefit plans. 10. Fully disclose all contributions made to entities enumerated in Schedule A that advocate for the diminishment of public defined benefit plans. CERTIFICATION OF SERVICE PROVIDER The undersigned acknowledges receipt of the NCPERS Code of Conduct for Public Pension Service Providers and certifies that it agrees to abide by the provisions of the Code. Signed: Print Name: Print Title: Print Company: Date: Schedule A to the NCPERS Code of Conduct for Public Pension Service Providers The National Conference of Public Employee Retirement Systems (NCPERS) has developed an objective process to determine whether foundations, think tanks, and other nonprofit entities engage in ideologically, politically, or donor driven activities to undermine public pensions. The objective process includes evaluating these entities on the following criteria: ➢ Advocates or advances the claim that public defined benefit plans are unsustainable. ➢ Advocates for a defined contribution plan to replace the public defined benefit plan. ➢ Advocates for a poorly designed cash balance plan to replace the public defined benefit plan. ➢ Advocates for a poorly designed combination plan to replace the public defined benefit plan. ➢ Links school performance evaluation to whether it sponsors a defined benefit plan to its teachers /employees. Based on the criteria above, NCPERS has determined the following foundations, think tanks, and other nonprofit entities engage in ideologically, politically, or donor driven activities to undermine public pensions: • American Enterprise Institute • American Legislative Exchange Council • Brookings Institution • California Common Sense • California Policy Center • Heritage Foundation • Howard Jarvis Taxpayers Association • Jessie Ball DuPont fund • Laura and John Arnold Foundation • Manhattan Institute for Policy Research • Massachusetts Taxpayers Foundation • National Council on Teacher Quality • Pioneer Institute • R Street Institute • Reason Foundation • Show Me Institute • StudentsFirst • Taxpayers for Sustainable Pensions • Teacherspensions.org • Texas Public Policy Foundation • The Pew Charitable Trust • UnionWatch • Urban Institute • Wyoming Liberty Group Approved by NCPERS Executive Board on July 11, 2015 Schedule A Annual Process First, in Ma June NCPERS sends out request to Funds asking for F Y/ Q g input. We ask for name of entity, p website, and examples of five point Schedule A criteria below. Second, staff reviews the submissions from Funds. We document the supporting examples and prepare Schedule A entities for the NCPERS Executive Board. Third, NCPERS Executive Board reviews Schedule A. The Executive Board votes to approve at the July Executive Board Meeting. Schedule A criteria: ➢ Advocates that public defined benefit plans are unsustainable. ➢ Advocates for a defined contribution plan to replace the public defined benefit plan. ➢ Advocates for a poorly designed cash balance plan to replace the public defined benefit plan. ➢ Advocates for a poorly designed combination plan to replace the public defined benefit plan. ➢ Links school performance evaluation to whether it sponsors a defined benefit plan to its teachers /employees. TO: Public Pension Boards of Trustees FROM: NCPERS Executive Board of Directors RE: Code of Conduct for Pension Service Providers- Fiduciary Analysis NCPERS has unveiled a code of conduct for vendors of public employee retirement plans. The providers of professional services to public pensions must be independent of conflicts in the same way trustees are. It is for this reason that NCPERS is recommending that all boards of trustees for public plans confirm with their service providers by having them execute a code of conduct that they are free from conflicts of interest that can arise with regard to services provided to defined benefit plans. NCPERS also recommends that the code of conduct be included as part of the request for proposal process when a plan is soliciting a service provider. The code of conduct was crafted so that it can be sent to not only investment managers, but all service providers to public plans, including investment consultants, attorneys, actuaries, and custodians. The code was created to help fiduciaries articulate strong, consistent ethical expectations for service providers across the board. This analysis isfor the benefit of trustees when deciding whether to adopt the code of conduct for their plan. The intent is to arm trustees with the legal conclusion that it is part of their fiduciary duties to ensure that professionals are free of conflicts of interest. A person is a fiduciary with respect to an employee benefit plan to the extent he /she exercises discretionary authority with respect to the plan and its assets. Exercise of discretion is the key. As a general rule, fiduciary duties extend to attorneys, actuaries, accountants, investment management and consultants. The seminal decision in American jurisprudence on fiduciary duty is the decision of the New York Court of Appeals in Meinhard v. Salmon, 164 N.E. 545 (N.Y. 1928). In that case, the Court determined that the common standard of the marketplace is unacceptable to fiduciaries. Based on the ruling, the general trust standard was expanded for pension trustees to include a definition of "undivided loyalty" to be applied with "uncompromising rigidity." Much later, in NLRB v. Amax Coal Co., 453 U.S. 322 (1981), the U.S. Supreme Court held that plan trustees have an "unwavering duty of complete loyalty" to members and beneficiaries. Trustees cannot serve any master other than the fund. Trustees of a retirement system have a fiduciary duty to insure the integrity of the System. McComb County v. AFSCME, 294 Mich. 149, _N.W. 2011 WL 4374991 (Mich. App. 2011). The independence of the advice received and the actions taken by the fiduciaries in response is critical to accomplishing the high behavioral standards required by the law. Board of Trustees v. City of Detroit, 145 Mich. App. 651, 373 N.W.2d 173 (Mich. App. 1985). ERISA, although not applicable to governmental plans, codifies the duty of undivided loyalty to beneficiaries in several provisions, including the requirements that a plan fiduciary act "solely in the interest" of the plan and its participants and beneficiaries "for the exclusive purpose" of serving plan related goals. If a fiduciary takes action that he or she knows will harm a plan but will advance corporate or personal interests, that is a breach of the fiduciary duty to act "solely in the interest" of a plan. In orderfor a plan's conflict of interest guidelines to be effective, trustees must have access to information that adequately describes service provider interests and relationships that could, at a minimum, give rise 1 to an appearance of impropriety. Trustees and staff should periodically affirm and verify compliance with conflict rules, regulatory reporting requirements, political contribution disclosures and other policies intended to protect the plan against the actuality or appearance of self- interested transactions and conflicts. Asking all service providers to sign a code of conduct helps fulfill this mission. The responsibility for a trustee to be prudent covers a wide range of functions needed to operate a plan. Since you must carry out these functions in the same manner as a prudent person, it is in your best interest to consult experts in such fields as investments. What the courts refer to as prudence is actually a composite of separate duties of care, skill, prudence, and diligence. In general, the courts compare the conduct of a fiduciary to an objective standard of how a knowledgeable fiduciary would have acted under similar circumstances. Judicial decisions heavily emphasize the diligence component of the standard by examining whether and how the party considered issues that would be thought significant by a prudent fiduciary acting in similar circumstances. If a trustee cannot confirm that their outside plan experts are acting prudently and in the best interests of the plan, a case can be made that the trustee is not fulfilling his or her fiduciary responsibility to the plan. In light of the clear legal standards, not only for the Board of Trustees, but for all of its advisors, it is essential that the Board ensure the exclusive duty of loyalty to the System is observed at all times and in all transactions. Trustees, in the usual course of plan business, should require all service providers to agree contractually that they are fiduciariesto the plan. The failure to have a provider agree that they are fiduciaries to the plan would allow them to skirt around the basic fiduciary considerations they owe to the plan. It is the duty of all fiduciaries to a retirement system to say "no" when any answer to the contrary is not in the best interest of the system. The code of conduct does not require a plan to fire a service provider should they not agree to execute the code. Merely, it should serve as a tool for trustees to identify and make informed decisions on behalf of their plan, and its members and beneficiaries should a conflict arise. NCPERS recommends that all boards of trustees of public retirement plans adopt use of the code of conduct to help promote the highest standards of ethics, education and professional excellence for the benefit of governmental defined benefit pension funds. 2 Suggested motions to adopt and implement the NCPERS Code of Conduct for Public Pension Service Providers: Motion 1: 1 move that (insert name of public pension) adopts the NCPERS Code of Conduct for Public Pension Service Providers and asks our current providers to endorse the Code of Conduct. (Service providers can send the endorsed Code of Conduct to NCPERS by email to codeofconduct @NCPERS.org, fax to 202 - 624 -1439, or mail to NCPERS, 444 N. Capitol St., NW, Suite 630, Washington, DC 20001) Motion 2: 1 move that (insert name of'public pension) incorporates the NCPERS Code of Conduct for Public Pension Service Providers as part of our service provider searches /request for proposals (RFP) process. (Service providers can send the endorsed. Code of Conduct to NCPERS by email to codeofconduct @NCPERS.org, fax to 202 - 624 -1439, or mail to NCPERS, 444 N. Capitol St., NW, Suite 630, Washington, DC 20001) Motion 3: 1 move that (insert name of public pension) notifies NCPERS of our decision to adopt the NCPERS Code of Conduct for Public Pension Service Providers. (Public pensions can notify NCPERS by email to codeofconduct @NCPERS.org, fax to 202- 624 -1439, or mail to NCPERS, 444 N. Capitol St., NW, Suite 630, Washington, DC 20001) • A PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS ATTORNEYS AT LAW Email: bonni @robertdklausner.com October 14, 2015 Julie Browning, Accountant Municipal Police Officers' and Firefighters' Retirement Trust Funds Florida Department of Management Services Bureau of Local Retirement Systems Post Office Box 3010 Tallahassee, Florida 32315 -3010 Re: Boynton Beach Police Officers Pension Fund Determination of Supplemental Benefit status Dear Julie: This office is the legal counsel for the Boynton Beach Police Pension Fund ( "Fund "). On behalf of the Pension Fund, I have been requested to seek a determination whether the Pension Fund provided supplemental plan benefits in effect on September 30, 2014 in accordance with Section 185.35(1)(f) and deemed to be a defined contribution plan in compliance with §185.35(6). By letter dated July 24, 2013 (enclosed as Exhibit A) you asked the following: It has come to our attention that Section 18 -169F of the Local Plan provides a supplemental benefit to retirees using a portion of the State Premium Tax Moneys. It is unclear if this provision meets the definition of a Supplemental Plan as found in Section 185.02(15) [now §185.02(22)], or is simply a supplemental benefit that is provided in the base plan; Please provide an explanation of the status of this provision. Additionally, please explain how this supplemental benefit is recorded on the Annual Report and Actuarial Valuation. The Board responded by letter dated November 18, 2013 (see attached Exhibit B). The Board never received a determination as the then pending legislation never passed. SB 172 has a provision that addresses supplemental plan benefits and so a determination on this matter is once again needed. The short answer to your July 24, 2013 question is that the Fund's Monthly supplemental benefit is a supplemental benefit as provided for in Florida Statutes Section 185.02(22) and therefore provided supplemental benefits on September 30, 2014 and is 7080 NORTHWEST 4TH STREET, PLANTATION, FLORIDA 33317 PHONE: (954) 916 -1202 - FAX: (954) 916 -1232 www.robertdklausner.com I Julie Browning, Accountant Municipal Police Officers' and Firefighters' Retirement Trust Funds October 14, 2015 Page 2 of 4 also deemed to be a defined contribution plan in compliance with §185.35(6). LAW: Florida Statutes Section 185.02(22) provides as follows: (22) "Supplemental plan" means a plan to which deposits of the premium tax moneys as provided in s. 185.08 are made to provide special benefits to police officers, or police officers and firefighters if both are included. Such a plan is an element of a local law plan and exists in conjunction with a defined benefit plan component that meets the minimum benefits and minimum standards. Any supplemental plan in existence on March 1, 2015, shall be deemed to be a defined contribution plan in compliance with Section 185.35(6) City of Boynton Beach Code Section 18- 169(f) provides (in pertinent part): (f) Monthly supplemental benefits. (1) Effective October 1, 2006, any eligible retiree, including DROP participants, or beneficiary receiving pension benefits is entitled to a monthly supplemental pension benefit. The benefit pool will be funded by 100% of the annual earnings and 10% of the principal created by the contributions set forth in subparagraph b. [sic] below. a. Such benefit will be funded by a 1 % contribution from the members and a 1% contribution from the 185 monies. The member and the 185 contributions shall be effective October 1, 2001. Employees will contribute to this benefit through 20 years of service. (2) Beginning October 1, 2003, 100% of the money received pursuant to F.S. Chapter 185 (185 money ") each calendar year in excess of the base amount of $465,087, plus 1 % of payroll annually to fund the benefit as provided in paragraph (1), plus any 185 money held in reserve, shall be distributed to all current eligible retirees, including DROP participants, or beneficiaries receiving benefits. These supplemental benefit payments will be distributed according to the formula set for in subparagraph a. This distribution is in addition to the benefit provided for in paragraph (1) which shall begin October 1, Julie Browning, Accountant Municipal Police Officers' and Firefighters' Retirement Trust Funds October 14, 2015 Page 3 of 4 2006. ANALYSIS OF LAW: The Fund is a local law plan which deposits the premium tax moneys into the Fund to provide extra benefits to police officers. This benefit is a part of a defined benefit plan that meets the minimum benefits and minimum standards of this chapter. See attached Exhibit C which is a copy of the 2014 Annual Report page 6A. All of the premium tax money received by the Fund in excess of the frozen amount of $465,087 is used to pay this extra benefit to police officers in retirement. The Monthly Supplemental benefits are solely funded by the additional premium tax dollars. This is similar to a share account benefit that is funded by the additional premium tax dollars over the frozen amount. Annually, all of the premium tax dollars received over the frozen amount, plus the earnings on those dollars, are accumulated into the Supplemental Benefit reserves. These amounts are paid out to the retirees in two payments. The first is paid as of October 1 and is a distribution of the 2% of payroll contribution accumulated in Section 18- 169(f)(1)a. This amount is distributed on a pro- rata basis paying out 100% of the earnings plus 10% of principal. The second supplemental payment is paid June 1 and distributes, on a pro rata basis, 100% of the excess premium tax money over the frozen amount ($465,087) plus 1 % of payroll. The amounts are both accounted for in the actuarial valuation and the audit. See attached Exhibits D and E. The Monthly Supplemental Benefit is different than the variable Cost of Living Adjustment based on positive actuarial experience which is provided for in Section 18 -177. This is a benefit which is permitted under Florida Statutes Section 112.61 and is paid only when there is positive actuarial experience. The Monthly Supplemental benefit makes the Boynton Beach Police Pension Fund a "Supplemental Plan" as defined in Florida Statutes §185.02(22). The benefit: • is provided by the deposits of the premium tax moneys as provided in s. 185.08; • pays special benefits to police officer retirees; • is an element of a local law plan; and • exists in conjunction with a defined benefit plan that meets the minimum benefits and minimum standards of this chapter. Julie Browning, Accountant Municipal Police Officers' and Firefighters' Retirement Trust Funds October 14, 2015 Page 4 of 4 Please contact me if you have any additional questions. Sincerely yours, w Bonni S. Jensen Encl. Ecopy to: Chairman and Secretary Board of Trustees C: \Users \bonni \soonr Workplace \PENSION \BB Police 0188 \State \Plan is supplemental plan 2015.wpd Bureau of Local Retirement Systems h FLORIDA DEPARTMENTOF MANAGEMENT 5ERVICES Municipal Police Officers' and Firefighters' • Retirement Trust Funds' Office _ yeti rement P.O. Box 3010 We serve those who serve Fbrlda Tallahassee, Florida 32315 -3010 T ' y Tel: 850.922.0667 1 Fax: 850. 921.2161 1 Toll -Free: 877.738.6737 Rick Scott, Governor Craig J. Nichols, Agency Secretary July 24, 2013 SECOND NOTICE Mr. Richard A. Cristini, CPA Davidson, Jamieson & Cristini, P.L. iI = JUL Z 2013 1956 Bayshore Blvd. Dunedin, FL 34698 = = Dear Mr. Cristini: We have received your response to our previous correspondence regarding the 2012 Annual Report for the Boynton Beach Police Officers' Pension Fund. Based on our review of that reply, listed below are items that need corrections, clarification and /or additional information. • It has come to our attention that Section 18 -169F of the Local Plan provides a supplemental benefit to retirees using a portion of the State Premium Tax Moneys. it is unclear if this provision meets the definition of a Supplemental Plan as found in Section 185.02(15), or is simply a supplemental benefit that is provided in the base plan; Please provide an explanation of the status of this provision. Additionally, please explain how this supplemental benefit is recorded on the Annual Report and Actuarial Valuation. • Page 4, line 7 does not agree with page 8, line 5. Please revise. • Page 1 — Please verify the suite number for the address of the Chairman and Secretary. • Page 1 — Please verify the e-mail address for the Chairman. • Page 3, line 6 — Please verify the suite number in the address. • Page 12 — Cecile DeMastro does not appear to be listed on the prior years' report. Please explain. • Page 13 — Please verify the date of employment for Gerald Monroe. There appears to be a typo. • Page 13 — Please verify the date of employment for James Williams. The date appears different on page 14. • Page 14 — David A. Britto and Raymond C. Lugo don't appear to be listed on this years' report. Please explain. • Page 14 — Please verify the date of employment, years of service and date of plan entry for the following: Cory M. Herny, Stephen J. Mills, Patrick R. Roedel and Anthony S. Verrigni. • Page 14 — Thomas W. Jones is not listed on this years' report. Please verify he no longer is employed and has received all refunds due to him. • Page 15 — Please revise the top left corner of page to read "2012 ". • Page 15 — Please verify the total number of DROP members at the top of the page. • Please provide revised pages of any information that has been corrected. EXHIBIT b D (� THE LAW OFFICES OF PERRY & JENSEN, LLC ANN H. PERRY BONN] SPATARA UENSEN aperry@perryjensenlaw.com bsjensen @perryjensenlaw.com November 18, 2013 Julie Browning, Accountant Municipal Police Officers' and Firefighters' Retirement Trust Funds Florida Department of Management Services Bureau of Local Retirement Systems Post Office Box 3010 Tallahassee, Florida 32315 -3010 Re: Boynton Beach Police Officers Pension Fund Response to Letter on Supplemental Benefits dated 7 -24 -13 Dear Julie: This office is the legal counsel for the Boynton Beach Police Pension Fund ( "Fund "). In that capacity, your letter dated July 24, 2013 (enclosed as Exhibit A) was referred to me. Your letter (in pertinent part) states the following: It has come to our attention that Section 18 -169F of the Local Plan provides a supplemental benefit to retirees using a portion of the State Premium Tax Moneys. It is unclear if this provision meets the definition of a Supplemental Plan as found in Section 185.02(15), or is simply a supplemental benefit that is provided in the base plan; Please provide an explanation of the status of this provision. Additionally, please explain how this supplemental benefit is recorded on the Annual Report and Actuarial Valuation. The short answer is that the Fund's Monthly supplemental benefit is a supplemental benefit as provided for in Florida Statutes Section 185.02(15). LAW: Florida Statutes Section )85.02 15 provides as follows: ( (15) "Supplemental plan" means a plan to which deposits of the premium tax moneys as provided in s. 185.08 are made to provide extra benefits to police officers, or police officers and firefighters where included, underthis chapter. Such a plan is an element of a local law plan and exists in conjunction with a defined benefit plan that meets the minimum benefits and minimum EXHIBIT 400 EXECUTIVE CENTER DRIVE, SUITE 207•: WEST PALM BEACH, FLORIDA 33401 -2922 PH: 561.686.6550 •: FX: 561.686.2802 a 13 +i Julie Browning, Accountant Municipal Police Officers' and Firefighters' Retirement Trust Funds November 18, 2013 Page 2 of 3 standards of this chapter. City of Boynton Beach Code Section 18- 169(f) provides (in pertinent part): (f) Monthly supplemental benefits. (1) Effective October 1, 2006, any eligible retiree, including DROP participants, or beneficiary receiving pension benefits is entitled to a monthly supplemental pension benefit. The benefit pool will befunded by 100% of the annual earnings and 10% of the principal created by the contributions set forth in subparagraph b. [sic] below. a. Such benefit will be funded by a 1% contribution from the members and a 1 % contribution from the 185 monies. The member and the 185 contributions shall be effective October 1, 2001. Employees will contribute to this benefit through 20 years of service. I 0 (2) Beginning October 1, 2003, 100% of the money received pursuant to F.S. Chapter 185 (185 money ") each calendar year in excess of the base amount of $465,087, plus 1 % of payroll annually to fund the benefit as provided in paragraph (1), plus any 185 money held in reserve, shall be distributed to all current eligible retirees, including DROP participants, or beneficiaries receiving benefits. These supplemental benefit payments will be distributed according to the formula set for in subparagraph a. This distribution is in addition to the benefit provided for in paragraph (1) which shall begin October 1, 2006. ANALYSIS OF LAW: The Fund is a local law plan which deposits the premium tax moneys into the Fund to provide extra benefits to police officers. This benefit is a part of a defined benefit plan that meets the minimum benefits and minimum standards of this chapter. See attached Exhibit B which is a copy of the 2013 Annual Report page 6A. All of the premium tax money received by the Fund in excess of the frozen amount of $465,087 is used to pay this extra benefit to police officers in retirement. The Monthly Supplemental benefits are solely funded by the additional premium tax dollars. This is similarto a share account benefit that is funded by the additional premium tax dollars over Julie Browning, Accountant Municipal Police Officers' and Firefighters' Retirement Trust Funds November 18, 2013 Page 3 of 3 the frozen amount. Annually, all of the premium tax dollars received over the frozen amount, plus the earnings on those dollars, are accumulated into the Supplemental Benefit reserves. These amounts are paid out to the retirees in two payments. The first is paid as of October 1 and is a distribution of the 2% of payroll contribution accumulated in Section 18- 169(f)(1)a. This amount is distributed on a pro- rata basis paying out 100% of the earnings plus 10% of principal. The second supplemental payment is paid June 1 and distributes, on a pro rata basis, 100% of the excess premium tax money over the frozen amount ($465,087) plus 1% of payroll. The amounts are both accounted for in the actuarial valuation and the audit. See attached Exhibits C and D. The Monthly Supplemental Benefit is different than the variable Cost of Living Adjustment based on positive actuarial experience which is provided for in Section 18 -177. This is a benefit which is permitted under Florida Statutes Section 112.61 and is paid only when there is positive actuarial experience. The Monthly Supplemental benefit makes the Boynton Beach Police Pension Fund a "Supplemental Plan'' as defined in Florida Statutes §185.02(15). The benefit: • is provided by the deposits of the premium tax moneys as provided in s. 185.08; • pays extra benefits to police officer retirees; • is an element of a local law plan; and • exists in conjunction with a defined benefit plan that meets the minimum benefits and minimum standards of this chapter. Please contact me if you have any additional questions. Sincerely yours, Bonni S. Jensen Encl. Ecopy to: Chairman and Secretary Board of Trustees H:\BB Police 0188 \StateRan is supplemental plan.wpd City of Boynton Beach 2014 ACTUARIAL CONFIRMATION OF THE USE OF STATE MONEYS (LOCAL LAW PLANS ONLY) TO BE FORWARDED TO THE PLAN ACTUARY FOR COMPLETION AND RETURNED TO THE MUNICIPALITY AS SOON AS POSSIBLE, SO THAT IT MAY BE SUBMITTED TOGETHER WITH THE ANNUAL REPORT DUE ON MARCH 15, 2015. The Plan's actuary must provide the following information in order for the MPF office to determine that State premium tax revenues are being used in accordance with the provisions of sections 175351 and 18535, Florida Statutes, as amended by Chapter 99 -1, Laws of Florida. A. Name of actuarial firm Gabriel, Roeder, Smith and Company B. Date of most recent actuarial valuation 10/1/2014 C. Use of State money — Please provide the following information: (1) Annual cost of qualifying benefit improvements — required minimum benefit improvements or "extra benefit" improvements — enacted during the fiscal year. Recurrine costs One -time use Ordinance Number(s) 1999-2013 $ 37,213 (Previously reported) (Previously reported) 2014 $ 0 $ 152,637 N/A (2) For the Fiscal Year 2014, please indicate the amount of State premium tax moneys that are available to be used by the plan sponsor toward the minimum required contributions. (NOTE: If there have been no qualifying benefit improvements since the enactment of Chapter 99 -1, laws of Florida, this amount can be no more than the 1997 base year amount.) Police $ 465,087 Fire $ Firc. Supplemental $ (3) Are there any remaining minimum benefit improvements required to be made subject to the provisions of Chapter 99 -1, Laws of Florida? If yes, please identify. Attach additional page, if necessary. YES NO }C I (4) As of Fiscal Year End 2014, please provide the cumulative balance of additional premium tax revenues that are remaining to be used to provide firture minimum or "extra benefit" improvements. If the sum total of all qualifying benefit improvements enacted since Chapter 99 -1 exceeds the total additional premium tax revenues received this year, this may be a negative balance; however, negative balances are not cumulative. NOTE: Investment Earnings, i f included, may not be negative in the aggregate. I Total Accumulated Balance 9/30/14 $ 69,784 (Includes Investment Earnings of $ 0 ) I D. Actuary representing the Plan: ' Name: Peter N. Strong Telephone: (954) 527 -1616 i I lease print) i 3�o�ao)s (Signature) (Date) F.S. Chapters 175, 175 Supplemental and 185 separately tracked. Revised 11/2014 (6a) l EXHIBIT ' 9 C i Gabriel Roeder Smith & Company J Consultants & Actuaries CITY OF BOYNTON BEACH MUNICIPAL POLICE OFFICERS' RETIREMENT FUND ACTUARIAL VALUATION REPORT AS OF OCTOBER 1, 2014 ANNUAL EMPLOYER CONTRIBUTION IS DETERMINED BY THIS VALUATION FOR THE PLAN YEAR ENDING SEPTEMBER 30, 2016 EXHIBIT 29 SUMMARY OF ASSETS September 30 Item 2014 2013 A. Cash and Cash Equivalents (Operating Cash) $ 25,518 $ 25,894 B. Receivables: 1. Member Contributions $ - $ - 2. Employer Contributions - 3. State Contributions - 4. Buy -Backs 59,307 53,824 5. Receivable for Securities Sold 380,425 354,781 6. DROP Loans 238,163 173,596 7. Total Receivables $ 677,895 $ 582,201 C. Investments 1. Short-Term Investments $ - $ - 2. Domestic Equities (Large cap defensive) 19,631,376 17,672,434 3. Real Estate 4,181,355 3,042,335 4. Multi -Asset Core Fund (Equities) 29,300,544 27,141,597 5. Multi-Manager Bond Fund (Fixed Income) 22,669,808 20,759,282 6. Total Investments $ 75,783,083 $ 68,615,648 D. Liabilities and Reserves 1. Benefits Payable $ - $ - 2. Accrued Expenses and Other Payables (145,124) (141,953) 3. Total Liabilities and Reserves $ (145,124) $ (141,953) E. Total Market Value of Assets Available for Benefits $ 76,341,372 $ 69,081,790 F. Reserves 1. State Contribution Reserve $ (69,784) $ (41,929) 2. DROP Accounts (8,497,374) (8,058,513) 3. Supplemental Benefit Reserve (2,062,812) (2,080,498) $ (10,629,970) $ (10,180,940) G. Market Value Net of Reserves $ 65,711,402 $ 58,900,850 H. Allocation of Investments 1. Short-Term Investments 0.00% 0.00% 2. Domestic Equities (Large cap defensive) 25.90% 25.76% 3. Real Estate 5.52% 4.43% 4. Multi-Asset Core Fund (Equities) 38.67% 39.56% 5. Multi- Manager Bond Fund (Fixed Income) 29.91% 30.25% 6. Total Investments 100.00% 100.00% kJ� 30 I PENSION FUND DISBURSEMENTS & INCOME Se pte mbe r 3 0 Item 2014 2013 A. Market Value of Assets at Beginning of Year $ 69,081,790 $ 61,472,139 B. Revenues and Expenditures 1. Contributions a. Employee Contributions $ 885,669 $ 902,696 b. Employee Contributions (Back Pay Settlement) - - c. Employer Contributions 4,159,736 4,236,485 d. State Contributions 645,579 619,853 e. Buy Back Contributions 25,706 88220 f. Health Subsidy Contributions - g. DROP Rollover 28,186 126,821 h. Increase in Value of Future Buy Backs 5,483 10,295 i. Total $ 5,750,359 $ 5,984,370 2. Investment Income a. Interest, Dividends, and Other Income $ 1,060 $ 6,543 b. Net Realized Grains /(Losses) 1,142,185 3,476,520 c. Net Unrealized Gain/(Losses) 6,576,880 3,155,801 d. Investment Expenses (565,922) (519,021) e. Net Investment Income $ 7,154,203 $ 6,119,843 3. Benefits and Refunds a. Refunds $ (42 $ (67,665) b. Regular Monthly Benefits (4,597,183) (3,931,713) c. DROP Distributions (880,006) (389,249) d. Total $ (5,519,854) $ (4,388,627) 4. Administrative and Miscellaneous Expenses $ (125,126) $ (105,935) 5. Transfers $ - $ C. Market Value of Assets at End of Year $ 76,341,372 $ 69,081,790 D. Reserves 1. Supplemental Benefit Reserve $ (2,062,812) $ (2,080,498) 2. State Contribution Reserve (69,784) (41,929) 3. DROP Accounts (8,497,374) (8,058,513) 4. Total Reserves $ (10,629,970) $ (10,180,940) E. Market Value Net of Reserves $ 65,711,402 $ 58,900,850 GRS 46 I. Normal Retirement Eligibility: A member may retire on the first day of the month coincident with or next following the earliest of: (1) age 55 and 10 years of Credited Service, or (2) age 50 and 15 years of Credited Service, or (3) 20 years of Credited Service regardless of age. Benefit: 3.5% of AFC multiplied by years of Credited Service. Benefit is limited to 100% of AFC and the provisions of Internal Revenue Code Section 415. Normal Form of Benefit: 10 Years Certain and Life thereafter; other options are also available. COLA None Supplemental Benefit: All retirees in pay status are entitled to a monthly supplemental pension benefit paid in a lump sum on October I of each year. The supplemental benefit is funded by a 1% of pay contribution from the members and a I% of pay contribution from the Chapter 185 money. The benefit pool is divided according to the total number of shares of all eligible retirees on a pro -rata basis. The number of shares allotted to each eligible retiree is the sum of credited service at retirement (maximum of 20 years) and the number of years the participant has been retired (maximum of 20 years). An individual retiree's distribution is the number of shares multiplied by the share value. The benefit ceases upon the later of the death of the retired member or beneficiary. I Early Retirement Eligibility: A member may elect to retire earlier than the Normal Retirement Eligibility upon attainment of age 50 and 10 years of Credited Service. Benefit: The Normal Retirement Benefit is reduced by 1.5% for each year by which the Early Retirement date precedes the Normal Retirement date. For this purpose, the Normal Retirement date is the earlier of the date the member would have attained age 55 or completed 20 years of Credited Service had the member continued employment as a police officer. Normal Form of Benefit: 10 Years Certain and Life thereafter; other options are also available. COLA: None GRS BOYNTON BEACH POLICE OFFICERS' PENSION FUND FINANCIAL STATEMENTS September 30, 2014 and 2013 DAVIDSON, JANUESON & CRISTM, P.L. Certified Public Accountants EXHIBIT a a BOYNTON BEACH POLICE OFFICERS' PENSION FUND NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 1. Description of Plan (Continued) Pension Benefits - The pension plan provides retirement, death and disability benefits for its participants. A participant may retire with normal benefits after reaching age 55 and accumulating 10 or more years of credited service, at 20 years of service without regard to age, or at age 50 with 15 years of credited service. Normal retirement benefits are based on 3.5% of the participant's final average salary times the number of his or her credited years of service. The final average salary for purposes of calculating benefits is the participant's average salary during the five highest years of the last ten years of creditable service prior to retirement. A participant with 10 or more years of credited service is eligible for deferred retirement. These benefits begin upon application on or after reaching age 55 and are computed the same as normal retirement, based upon the participant's final average salary and credited service at the date oftermination. Benefits are reduced 1.5% per year for each year by which the participant's age at retirement preceded the participant's normal retirement age. Monthly Supplemental Retirement Benefit - Effective October 1, 2006, any retiree or beneficiary receiving pension benefits is entitled to a monthly supplemental pension benefit. The benefit pool will be funded by 100% of the annual earnings and 10% of the principal created by the contributions received. The benefit pool shall be divided according to the total number of years of service pro-rata rendered by all retirees, with a cap of 40 years. The shares will be divided on a p basis as defined in the ordinances. The supplemental benefits was to be funded by a 1% contribution from the Members and a 1% contribution by the City. Effective with the Chapter 185 monies received for calendar year 2001, the excess Chapter 185 dollars will be allocated to fund the City's contributions until the Chapter 185 dollars are received for calendar year 2005 or, if earlier, until the entire 1% of the City contributions are covered by the increase in the Chapter 185 monies. Employees will contribute to this benefit through 20 years of service. The actuarial value of the monthly supplemental benefit reserve at September 30, 2013 was approximately $2,080,498. 6 BOYNTON BEACH POLICE OFFICERS' PENSION FUND NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 6. Designations A portion of the plan's net assets are designated for benefits that accrue in relation to the DROP account as further described in Note 1. Allocations to the DROP plan account for the year ended September 30, 2014 are presented below as determined in the Plan's most recent accounting and valuation available for the fiscal year ended September 30, 2013: 2014 Designated for DROP accounts (fully funded) $ 8,643,403 Designated for the supplemental pension distribution reserve 2,080, Total designated net position 10,723,901 Undesignated net position 6 5 ,5 5 8, 164 Total plan net position $ 76,2Q065 7. Plan Assumption Changes The actuarial assumptions which were implemented beginning October 1, 2013 are summarized as follows: �. The mortality table, which was updated two years ago to the RP -2000 Combined Healthy Participant Mortality Tables for males and females, including projections for future improvements in mortality rates, continues to be phased in this year. �. The assumed withdrawal rates, which were updated two years ago (please see the actuarial assumptions and methods section), continue to be phased in this year. These revisions are being phased in over a five -year period, beginning with the October 1, 2011 actuarial valuation. In this year's actuarial valuation, 60% of the revised rates and 40% of the prior rates are used. In the previous year's actuarial valuation 40% of the revised rates and 60% of the prior rates were used. This change caused an increase in the contribution of 1.23% covered payroll. 19 Barbara Ladue From: Pat Holt <Pat@ PerryJensenLaw.com > Sent: Thursday, October 08, 2015 1:46 PM To: Barbara LaDue; Toby Athol; Jason Llopis; Scott Caudell; Joe Degiulio; Russell Faine Cc: BSJ Team; Bonni Jensen; Adam Levinson Subject: Boynton Beach Police Officers' Pension Fund (RFP Administrative Services) Attachments: 2015 Administrator RFP.pdf; 2015 list of admin duties.pdf All: Attached is Joint Request for Proposal for Administrative Services and the List of Plan Administration Duties. This needs to be added to the Agenda for discussion at the next meeting. Thanks, fat Legal Assistant — Pension Team of Bonni Jensen Klausner, Kaufman, Jensen & Levinson 400 Executive Center Drive, Suite 207 West Palm Beach, FL 33401 -2922 Phone: 561 - 686 -6550 Fax: 561 - 686 -2802 I �1 7080 Northwest 4 Street Plantation, Florida 33317 Telephone: 954 - 916 -1202 Facsimile: 954 - 916 -1232 CONFIDENTIALITY NOTICE: This communication is confidential, may be privileged and is meant only for the intended recipient. If you are not the intended recipient, please notify the sender ASAP and delete this message from your system. IRS CIRCULAR 230 NOTICE: To the extent that this message (or any portion thereof) concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 1 BOYNTON BEACH POLICE OFFICERS' PENSION FUND AND BOYNTON BEACH FIREFIGHTERS' PENSION FUND JOINT REQUEST FOR PROPOSAL FOR ADMINISTRATIVE SERVICES This request for proposal seeks an Administrative Manager for the Fund to provide the following functions for the Fund: 1. Establish a Fund office to be open to all interested parties for regularly scheduled business hours. The Fund office will also maintain all records of the Fund. 2. Attend all quarterly meetings of the Board of Trustees and special meetings as needed. 3. Prepare agendas and notices for, and attend all Board of Trustees meetings and records, transcribe and maintain minutes of those meetings. City currently takes and transcribes Minutes for the Board, but Administrator should have the capability to perform this function. 4. Ensure that the administrative matters of the Board of Trustees are handled, i.e. correspondence, coordination of Fund service providers, travel reservations for seminars. 5. Establish systems and procedures to record participant service based upon years of service. 6. Establish systems and procedures to record participant salary and contribution information. 7. Be familiar with all plan documents and provisions to assist participants in applications for benefits and generally answer questions regarding the Fund. Administrator must be familiar with Florida laws governing public employee pensions, through a dedicated response team and toll -free number. 8. Assist service providers in obtaining data regarding the Fund. 9. Pay or oversee the payment of benefits and expenses from the Fund. Responsibilities in this area include reconciliation of accounts and preparation of financial statements. 10. Prepare and file necessary government reports and other documentation required by law (e.g., W2P's, withholding election forms, 1099's). 11. Assist in preparation of Summary Plan Description. 12. Develop website for access by participants, which includes online benefit calculations. Page 1 of 3 13. Other matters which may be delegated to the Administrative Manager by the Board of Trustees. ALL SUBMISSIONS MUST CONTAIN THE FOLLOWING IN ORDER TO BE CONSIDERED. I. IDENTIFICATION OF THE BIDDER: a) The bidder's name, home office address, address of the office providing the services under the contract and telephone number for each. b) General description of the firm, including size, number of employees, primary business, other business services, type of organization (franchise corporation, partnership, etc.) and other descriptive material. c) Identification of personnel who will be assigned to the contract including their qualifications and number of clients for which each provides services. d) List of public and private sector retirement systems for which the bidder currently provides services. Also provide the address, telephone number, name and title of at least three (3) references who may be contacted. e) List of clients who have terminated services. f) A description of the bidder's understanding of the work to be performed. g) Relationship, if any, to any other service providers for the Fund. (See attached list). h) A statement of the bonding and /or insurance coverage carried by the bidder, if any. i) List of outstanding litigation involving the bidder. Provide a summary of suit, including causes of action and present status. II. FEES: a) Fees should include all travel, etc. No other charges will be allowed unless specifically authorized by the Board. Page 2 of 3 b) State with specificity those items which are excluded from your base fee. c) Fees should be guaranteed for three (3) years. I11. GENERAL INFORMATION ON THE SELECTION PROCESS: a) An oral presentation by the bidder may be required at a time and place scheduled by the Board. b) In evaluating the proposals, price will not be the sole factor. The Board may consider any factors it deems necessary and proper for best value, including price, quality of services, response to this request and general reputation. The Board reserves the right to reject any or all proposals. c) To ensure fair consideration, the Board prohibits communication to or with any Pension Board member during the submission process. If you have specific questions requiring explanation of the content of these proposal specifications, submit a written request for interpretation or additional information to the Fund's legal counsel, Bonni S. Jensen, Klausner, Kaufman, Jensen & Levinson, 7080 Northwest 4 th Street, Plantation, FL 33317. d) Submit twelve (12) copies of your response for distribution to the Trustees. e) The Administrative Manager that is selected will be required to acknowledge fiduciary responsibility to the Fund. f) Applicants may be required to complete a sworn statement under Section 287.133(3)(a), Public Entity Crimes. g) The Board bears no responsibility for the costs of preparation of your response to this proposal. C: \Users \pat \Soonr Workplace \PENSION \BB Police 0188 \vendors\Admin \RFP \Joint RFP \2015 Administrator RFP.wpd Page 3 of 3 List of Plan Administration Duties Administration of Meetings: • Schedule meetings (including coordination with City) • Gather and distribute meeting materials • Prepare agenda • Prepare minutes Trustee Organization: • Have working knowledge of Plan Document • Maintain Board contact list (Trustees and Service Providers) • Maintain list of Trustee position type and date of term expiration • Maintain pending matter list • Timely implement motions and decisions of Trustees • Ensure service providers are aware of motions and decisions which impact their projects • Run Trustee elections • Coordinate Trustee appointments through the City • Ensure timely selection of 5 th Trustee • Assist in creation of Board Policies including Internal Controls and Procedures • Familiarity with Sunshine laws, gift and ethics laws and public officer voting • Obtain quotes for fiduciary liability insurance and fidelity bonding • Keep Trustee memberships in Pension Organizations up to date • Assist in preparation of requests for proposals, as directed • Ensure that Trustees approve benefits and Fund expenses • Administer Travel Policy (including proper documentation and providing for reimbursements) • Assist in making reservations and arrangements • Familiarity with Microsoft Office Suite: Word, Excel, Access and PowerPoint Communication and Coordination: • Review correspondence, statements and documents from all service providers. • Distribute the documents as necessary Page 1 of 3 Member Administration: • Active Members • Ensure Enrollment • Monitor contributions from employees and City • Maintain data to determine Member eligibility • Assist Member in completing Beneficiary Form, as required • Assist Member in completing of Refund of Contribution forms (for non - vested terminated employee) • Provide pension benefit counseling upon request of a plan Member • Establish and maintain system for Share Account recording • Provide Member Share Account Statements • Establish and maintain system for DROP Accounts • Provide Member DROP Account Statements • Coordination of Participant Education • Retirement Process • Assist Members in completing applications for Retirement and Disability, as required • Assist Members in completing applications for DROP, as required • Coordinate benefit calculation and verification by actuary • Ensure Member completion of Benefit Election forms • Assist in processing Benefit and Disability denials and appeals • Retired Members • Assist Retiree in transition from active employment - Authorization for Deductions - Benefit Election Form - Confidentiality Request - Tax Withholding (W4 -P) - Withdrawal (DROP or Other Distributions) • Set up direct deposit as required • Establish system to conduct Death Record Searches • Ensure the Member is aware of required compliance of IRS distributions and compliance with minimum distribution /415 rules by the Member executing the special tax notice as required Records Custodian: • Maintenance of: • Incoming Correspondence, Documents, and Records • Member Data • Service Provider contracts and data • Oversee Computer System to maintain records (including security and backup of systems) • Respond to Public Records Requests • Ensure compliance with Public Records exemptions to the extent required by the Public Records Act, Chapter 119, Florida Statutes Page 2 of 3 Plan Financials: • Responsible for reconciliation of accounts • Compliance with Internal Controls and Procedures • Responsible for maintenance of General Ledger • Responsible for Financial Statements • Oversee creation of System to maintain Share and DROP Accounts • Coordinate Annual Audit with Auditor to ensure completion by the City's deadline • Accounts Payable: • Review of Invoices • Approval of Expenses by Board • Signed Warrant • Specific Reference to Minutes • Payment of Invoices • Employer Contributions: • Contribution Amounts • Monitor Deposits at least Quarterly • Direct Custodian to: • Process Tax Deposits • Prepare 1099Rs and IRS Reporting • Process and execute payment of Retiree Payroll, refund (Direct & Rollover) of Member Contributions, Payments for services, DROP loans as permitted or any other payments as deemed necessary so not to cause any inefficiency • Oversee and Coordinate o Annual Report Preparation - to ensure filing by March 15` each year Online Access to Members • Administer to oversee and coordinate online access for Members • Create, maintain, distribute newsletter BSJ:pah Revised 2015 C: \Users \pat \Soonr Workplace \PENSION \BB Police 0188 \vendors\Admin \RFP \Joint RFP\2015 list of admin duties.wpd Page 3 of 3 Boynton Beach Fire Pension Fund 1500 Gateway Blvd, Suite 220, Boynton Beach FL, 33426, Phone (561) 739 -7972 Request for Proposal for Administrative Services Table of Contents Section I. General Information Section II. Scope of Services Section III. Proposal Instructions Section IV. Selection Process Section I. General Information A. Purpose The Board of Trustees ( "Board ") of the Boynton Beach Firefighters' Pension Fund ( "Fund ") is seeking Proposals from qualified firms interested in providing comprehensive pension administration services. This Request for Proposal ( "RFP ") is offered to solicit responses for qualified vendors interested in providing such services as outlined herein. The Board is looking for an experienced firm with demonstrated experience in administration of governmental defined benefit plans, of preference, having experience with plans subjected to Florida Statutes 112, 175 and /or 185. B. Introduction/ Background The Fund, which has approximately eighty (80) million dollars in assets, is a defined benefit plan governed by Florida Statutes 112 and 175, and the City of Boynton Beach. The Fund includes a Cost of Living Adjustment ( "COLA ") and a Deferred Retirement Option Plan ( "DROP "). Members covered by the Fund are firefighters employed by the City of Boynton Beach, firefighter members participating in the DROP, deferred vested members, members retired due to normal or disability retirement and beneficiaries or former members. Currently, there are a total of 120 active members and 86 retired members. The Board is comprised of five (5) Trustees. Two (2) trustees are elected by the active membership, two (2) are appointed by the City, and one (1) is appointed by the existing four (4) trustees. C. Objective The Board is seeking proposals due to the impending retirement of the current Pension Administrator. D. Contact Rules To ensure fair consideration, the Board prohibits communication to or with any Pension Board member during the submission process. If you have a specific questions requiring explanation of the content of these proposal specifications, submit a written request for interpretation or additional information to Barbara Ladue, Pension Administrator, 1500 Gateway Blvd, Suite 220, Boynton Beach FL 33426, Phone (561) 739 -7972, or by email ladueb@bbpdpension.com E. Proposal Submission All proposals must be submitted in full by S:OOpm on January 29 2016. Must submit one (1) original, five (5) copies, and one (1) electronic copy of the proposal to: Mail: Barbara Ladue, 1500 Gateway Blvd, Suite 220, Boynton Beach FL 33426 Electronic copy: ladueb @bbpdpension.com Section II. Scope of Services A. Intent The intent of the Board is to seek proposals from firms, interested in providing pension administration services. B. Scope of Services The regular services to be provided to the Board include, but not limited to, the following: 1. Attend all quarterly meetings of the Board of Trustees and special meetings as needed. 2. Provide a regular schedule of day(s) /hours available, as approved by the Board, to meet in person, with plan members by appointment, in the City of Boynton Beach. 3. Prepare agendas and notices for, and attend all Board of Trustees meetings and coordinate with the city clerk's office to ensure the meeting are recorded and transcribed. 4. Ensure that the administrative matters of the Board of Trustees are handled, i.e. correspondence, coordination of Fund service providers, and reimbursements for travel. 5. Establish systems and procedures to record participant service based upon years of service. 6. Establish systems and procedures to record participant salary and contribution information. 7. Be familiar with all plan documents and provisions to assist participants in applications for benefits and generally answer questions regarding Fund. Administrator must be familiar with Florida laws governing public employee pensions, through a dedicated response team and toll free number. 8. Assist service providers in obtaining data regarding the Fund. 9. Pay or oversee the payment of benefits and expenses from the Fund. Responsibilities in this area include reconciliation of accounts and preparation of financial statements. 10. Prepare and /or oversee and file necessary government reports and other documentation required by law (e.g., W21 withholding election forms, 1099's). 11. Assist in preparation of Summary Plan Description. 12. Review correspondence, statements and documents from all service providers. 13. Respond to Public Records Requests. 14. Ensure compliance with Public Records exemptions to the extent required by the Public Records Act, Chapter 119, Florida Statutes. 15. Conduct annual Alive & Well Statements. 16. Assist members in transition form active to retirement including but not limited to, completing applications for Retirement, DROP, Benefit Election, and IRS related documents. 17. Establish and /or oversee online access for members. 18. Ensure compliance with Internal Controls and Procedures. 19. Oversee and coordinate preparation for the required State Annual Report. 20. Other matters which may be delegated to the Administrator by the Board of Trustees. Section Ill. Proposal Instructions All submissions must contain the following information in order to be considered. A. Identification of the Bidder: 1. The address of the business office providing the services under the contract and the telephone number. 2. The general description of the firm, including size, number of employees, primary business, other business services, type of organization (franchise corporation, partnership, etc.) and other descriptive material. 3. Identification of person or personnel who will be assigned to the contract, including their qualifications and number of clients for which each provides services. 4. List of public and private sector retirement systems for which the bidder currently provides services. Also provide the address, telephone number, name and title of at least three (3) references who may be contacted. 5. List of clients who have terminated services, if applicable. 6. A description of the bidders understanding of the work to be performed. 7. A statement of the bonding and /or insurance coverage carried by the bidder, if any. 8. List of outstanding litigation involving the bidder. Provide a summary of suit, including causes of action and present status. B. Fees 1. Fees should include all travel, etc. No other charges will be allowed unless specifically authorized by the Board. 2. State with specificity those items which are excluded from you base fee. 3. Fees should be guaranteed for three (3) years. Section IV. Selection Process A. General 1. An oral presentation by the bidder will be required at a time and place scheduled by the Board. 2. In evaluating proposals, cost will not be the sole factor. The Board may consider and factors it deems necessary and proper for the best value, including price, quality of services, response to this request, and general reputation. The Board reserves the right to reject any or all proposals. B. Conditions 1. The Administrator that is selected will be required to acknowledge fiduciary responsibility to the Fund. 2. Applicants may be requested to complete a sworn statement under Section 287.133(3)(a), Public Entity Crimes. 3. Any prospective Proposer must make an affirmative statement to the effect that its retention, if selected, shall not result in a conflict of interest or create an appearance of impropriety with any person or organization that may be affected under the Fund. 4. The Board bears no responsibility for the cost of preparation of response to this proposal. All proposals must be submitted in full by 5:00pm on January 29 th , 2016. Must submit one (1) original and one (1) electronic copy of the proposal to: Mail: Barbara Lodue, 1500 Gateway Blvd, Suite 220, Boynton Beach FL 33426 Electronic copy: lodueb @bbodpension.com CITY OF BOYNTON BEACH POLICE OFFICERS' PENSION SYSTEM POLICE OFFICERS' PENSION DATA PAGE 4 REPORTING PERIOD 1010112014 TO 0913012015 Social Names Date of Date of Benef. Total iecurity Birth Retire/ Disability Birth Pens. Monthly Received Number Last, First, I. Disab. Code Name of Beneficiary Date Opt. Pension This Yr 5037 YANNUZZI,CHRIS 03/1955 06/01/00 SONS EQUALLY 2 -9 -09 00 /0000 2 4,126.68 53,872.0 4732 ZEITINGER,LOUIS 10/1953 02/01/01 JANE A. ZEITINGER 07/1955 1 3,009.56 40,402.9 Total Retirement 4,547,445.56 CSABILITY 0403 BAXLEY,BRADFORD 08/1945 04/01/81 LOD 00 /0000 2 1,253.78 20,141.2 7621 CELESTINO,WILLIAM 08/1960 05/01/92 LOD 00 /0000 2 1,936.81 27,001.2 0970 DAVIS,JEFFERY 03/1958 08/01/01 NLOD ALICE COKEFAIR DAVIS EF 07/1956 3 -A 1,415.14 20,306.7 5969 DWYER,KAREN 09/1960 04/01/92 LOD 00 /0000 2 1,705.6 23,900.3. 2317 GONZALEZ,JOHN 12/1953 03/01/01 LOD JACOB ANTHONY GONZALEZ 02/1985 1 1,992.64 4 27,445.6' 7940 HAMMACK,DALE 07/1949 10/01/94 LOD 00 /0000 2 3,879.16 51,645.7 8498 JUNNIER,GEORGE 07/1941 04/01/80 LOD 00 /0000 2 1,045.78 17,645.2. 1238 KENNY,GREGORY 09/1971 08/01/15 LOD JUDITH L KENNY 04/1975 3 -A 3,474.84 6,949.6 1755 KUCER,ALEX 01/1947 04/01/86 LOD 00 /0000 2 1,172.89 18,013.7 7316 LINKOUS,RONALD 06/1955 03/01/87 LOD 00 /0000 2 1,291.98 19,267.0 6352 MOTTL,DAN 03/1952 04/01/88 LOD CATHY MOTTL - WIFE 00 /0000 2 1,801.60 26,164.7. 9667 RYAN,MICHAEL 04/1957 02/01/89 LOD 00 /0000 2 1,861.69 26,549.4' 9200 SORG,THEODORE 10/1942 02/01/81 LOD 00 /0000 2 1,112.80 18,449.4' 9702 TORTORICI,JOHN 03/1950 01/01/00 LOD 00 /0000 2 1,467.23 21,395.5 Disability 324,875.95 ENEFICIARY 1815 PARKER- POOLE,LINDA 04/1948 3 -B 783.10 12,114.5 2665 JACOBSON,CINDY 04/1964 3 -A 1,986.93 27,894.3; Death 40,008.96 NUMBER OF RETIRED EMPLOYEES ON THIS REPORT: 120 TOTAL PENSION PAYMENTS 4,912,330.47 CITY OF BOYNTON BEACH POLICE OFFICERS' PENSION SYSTEM POLICE OFFICERS' PENSION DATA PAGE 1 REPORTING PERIOD 1010112014 TO 09130/2015 Social Names Date of Date of Benef. Total > eCUrity Birth Retire/ Disability Birth Pens. Monthly Received Number Last, First, I. Disab. Code Name of Beneficiary Date Opt. Pension This Yr ;TIREMENT 5179 ANDERSON,BRIAN 02/1967 11/01/14 KELLY ANDERSON 12/1973 2 5,495.26 32,971. 2399 ANTHONY,CRAIG 06/1969 02/01/11 DONNA MARIE ANTHONY 03/1970 3 -A 6,906.51 85,892.3. 4464 ASPENLEITER,NANCY 09/1964 10/01/14 ELSIE ASPENLEITER -MOTHS 00 /0000 1 693.56 8,322.7. 4212 BEAN,GREGORY 07/1960 08/01/02 SHELLY BEAN 03/1963 3 -A 3,585.80 47,066.8 6494 BLUM JR.,WARREN 07/1951 08/01/01 LAUREEN BLUM EFF 6 -1 -20 05/1956 3 -A 714.47 11,524.1 0654 BRIGANTI,FRANK 01/1959 05/01/10 MICHELE BRIGANTI 06/1963 3 -D 8,392.12 103,815.2 2191 BROOKS,JAMES 03/1956 12/01/97 SUSAN BROOKS 02/1964 3 -A 2,503.30 34,731.6. 8218 BURNS,DAVID 12/1942 09/01/97 LYDIA BURNS 09/1951 3 -A 983.12 15,430.8 8787 CALE,STANLEY 06/1946 04/01/01 SHIRLEY CALE 09/1947 3 -A 3,994.00 52,195.8 9571 CAMEL,LIONEL 05/1967 05/01/13 PAMELA CAMEL 08/1966 1 1,602.61 20,826.3 5110 CARRION,SANTOS 04/1954 10/01/97 MARIA IRIS CARRION 11/1954 3 -A 3,055.37 41,378.1 2845 CASH,ROGER 05/1950 02/01/01 00 /0000 1 2,720.84 36,938.2 9205 CHAPMAN,GARY 04/1952 01/01/08 JANET CHAPMAN 03/1953 3 -A 6,145.82 77,157.7 6270 COFFEY,DAVID 11/1980 11/01/25 EE CONT27900.87 7 /1% 10 00 /0000 1 1,012.78 .0- 5507 CONNELLY JR,RICHARD 07/1958 04/01/01 00 /0000 2 3,008.48 40,369.5 6444 COONEY,JAMES 04/1980 05/01/26 00 /0000 1 1,113.97 .0 2274 CUMMINGS,JAMES 05/1959 02/01/01 JEAN CUMMINGS EFF 12 -20 08/1960 3 -D 3,948.66 51,672.1 5540 DEAN,SCOTT 01/1962 06/01/04 TINA DEAN 01/1965 3 -A 3,935.32 51,087.7 2200 DEIGHAN,JEFFREY 05/1941 08/01/97 BARBARA DEIGHAN 08/1943 3 -A 1,109.89 17,224.6' 0415 DELOACH,JOHN 09/1943 10/01/93 KATHLEEN DELOACH,WIFE 04/1957 2 3,417.58 46,106.8 6865 DETTMAN,THOMAS 08/1949 03/01/96 00 /0000 2 4,052.57 53,545.8 0099 DUPLANTIS,RUSSELL 08/1944 01 /01 /00 VIOLET DUPLANTIS 11/1951 1 1,139.72 16,829.7 6630 EGNOR,DAVID 12/1946 10/01/02 CONNIE CHRISTENSEN 04/1958 1 3,762.51 49,226.8: 5260 EPSTEIN,ROBERT 10/1974 11/01/24 02/1982 1 1,261.41 .0- IT R NALD 06 1947 04/01/01 JONNA E. ESPOSITO 12/1949 2 6,088.07 77,324.6 4013 ESPOS O, O / 1769 FELTER,MARSHALL 02/1961 06/01/09 00 /000 0 2 5 221.09 65,880.0. 9084 FREY,CHRIS 10/1965 05/01/04 THERESE FREY 07/1967 3 -A 4,209.40 54,386.9 5260 GAGE,MARSHALL 03/1950 08/01/05 DONNA GAGE 10/1950 3 -A 3,155.53 40,742.9 9798 GAINSBORG,DAVID 05/1960 02/01/01 MONICA GAINSBORG 05/1962 2 3,999.02 52,276.4: 3132 GALBRAITH II,WILLIA 12/1945 02/01/96 PATRICIA C. GALBRAITH 07/1946 3 -B 2,727.52 37,655.4 4938 GARDNER ESTATE OF,J 12/1936 03/01/83 00 /0000 2 2,090.50 9,276.8' 0354 GRAHAM,STEPHEN 07/1957 01/01/01 00 /0000 1 4,867.36 62,707.9' 3127 GRENIER,STEVEN 01/1956 01/01/98 MARJO GRENIER 09/1969 1 2,908.01 39,577.9. 4763 GRISWOLD,DANIEL 06/1967 01/01/10 BARBARA GRISWOLD 07/1965 3 -A 6,546.06 68,613.6' CITY OF BOYNTON BEACH POLICE OFFICERS' PENSION SYSTEM POLICE OFFICERS' PENSION DATA PAGE 2 REPORTING PERIOD 1010112014 TO 0913012015 Social Names Date of Date of Benef. Total >ecurity Birth Retire/ Disability Birth Pens. Monthly Received Number Last, First, I. Disab. Code Name of Beneficiary Date Opt. Pension This Yr 1172 HAMILTON,WILLIAM 05/1934 11/01/84 MADALINE HAMILTON, WIFE 08/1943 3 -B 2,303.05 32,732.4' 9117 HARRIS,JUSTIN 01/1982 07/01/20 00 /0000 1 2,959.38 .0 3807 HARRIS,MARLON 04/1956 01/01/98 TAMMIE HARRIS 02/1958 3 -A 2,854.50 38,935.8. 6677 HARRIS,SCOTT 02/1964 01/01/09 SANDI BREGLER - HARRIS 11/1964 3 -D 4,828.21 61,218.9 5904 HARRISON,LISA 11/1971 08/01/19 00 /0000 1 4,063.20 .0- 6084 HARVEY,DANIEL 02/1979 06/01/25 00 /0000 2 1,409.86 .0 0799 HILLERY,EDWARD 04/1940 04/01/93 ROSEMARY C. HILLERY,WIF 05/1943 3 -D 1,975.03 28,796.2. 7645 HILLERY,ROSEMARY 05/1943 03/01/96 00 /0000 3 -D 1,975.02 23,700.2 5164 HOLLIHAN,JOHN 08/1937 01/01/98 MARY L. HOLLIHAN 02/1947 3 -A 4,307.65 56,373.6 5329 HOPKINS,STEPHEN 04/1963 05/01/04 ELISSA A HOPKINS 10/1972 2 3,580.55 46,840.7 6076 HUNTINGTON,JOHN 12/1950 02/01/09 MARILYN HUNTINGTON 09/1955 2 4,841.37 60,985.8 2429 IMMLER,GEORGE 12/1951 08/01/13 CARYN IMMLER 10/1956 3 -D 6,110.45 75,280.9 9042 JENSEN,ERIC 07/1959 10/01/02 SHERYL JENSEN 04/1963 2 3,982.84 51,870.7 8026 KALIN,ANDREW 06/1957 02/01/01 ILONA KALIN 08/1957 1 3,519.74 46,525.0 5032 KING,CHARLES 02/1963 08/01/06 MINERVA KING 06/1969 1 5,647.22 71,354.1 9433 KIRRMAN,MICHAEL 03/1951 09/01/94 LISA MARIE KIRRMAN, WIF 04/1958 1 2,259.89 32,214.5. 4466 KUSS,CHARLES 11/1957 04/01/01 ANN MARIE KUSS 01/1958 3 -A 4,383.77 56,873.0 7346 LAAKSO,J. 11/1963 10/01/05 00 /0000 1 1,220.58 17,322.3 9988 LANE,MICHAEL 02/1960 06/01/07 JODY BARNETT 12/1959 3 -A 5,475.37 69,186.2 6385 LANIER,MARSHALL 02/1957 10/01/07 JAMIE LANIER 11/1958 3 -D 6,008.60 75,542.9. 5110 LEAL,DAVID 12/1962 05/01/10 00 /0000 1 2,536.15 32,851.7 2073 LEE,GARY 03/1953 03/01/01 MRS. LEE 07/1950 2 3,146.86 42,040.3 2043 LEONARD,PATRICK 05/1956 02/01/03 MARIA BEATRIZ CURRIER 11/1959 2 4,015.97 52,225.0. 8078 LEWIS,CLIFFORD 08/1944 05/01/91 DELORES A. LEWIS, WIFE 12/1960 3 -D 2,479.04 34,844.3. 5288 MAHONEY,JAMES 02/1948 03/01/01 SUSAN MAHONEY 11/1958 2 3,076.27 41,193.2. 6584 MAIORINO,STEPHEN 02/1979 05/01/26 MELISSA SEMCKEN MAIORIN 05/1980 1 1,733.81 .0 2571 MATSON,JEFFREY 11/1966 11/01/10 CARYANN MATSON - SPOUSE 06/1971 3 -A 1,235.87 16,670.0 6038 MCCABE,DEBRA 12/1962 04/01/06 TOM MCCABE 01/1959 3 -A 1,065.08 15,521.2' 7976 MCCABE,THOMAS 01/1959 01 /01 /10 DEBRA MCCABE 12/1962 3 -A 7,046.66 63,922.4 8766 MILLER,CARLTON 11/1960 05/01/04 IRMA MILLER 07/1960 1 5,154.49 65,728.0: 5542 MULCAHY,MICHAEL 07/1982 02/01/26 SAMANTHA MULCAHY 11/1985 3 -A 1,242.57 .01 8989 NISSENSOHN,DAVID 09/1954 12/01/97 00 /0000 2 2,913.64 39,655.7 6756 O'CONNOR,RICHARD 03/1959 08/01/04 ROBIN O'CONNOR 08/1961 3 -A 4,279.42 55,195.3. 9270 ORTMAN,CRAIG 11/1964 04/01/08 TALAINA ORTMAN 05/1982 1 1,271.97 17,602.6. 3698 OSTASZEWSKI,HENRY 07/1946 12/01/92 JUDITH OSTASZEWSKI, WIF 11/1948 3 -A 2,202.85 31,530.0' CITY OF BOYNTON BEACH POLICE OFFICERS' PENSION SYSTEM POLICE OFFICERS' PENSION DATA PAGE 3 REPORTING PERIOD 1010112014 TO 0913012015 Social Names Date of Date of Benef. Total security Birth Retire/ Disability Birth Pens. Monthly Received Number Last, First, I. Disab. Code Name of Beneficiary Date Opt. Pension This Yr 3513 PADICH,THEODORE 11/1957 11/01/97 BONNIE PADICH 06/1955 3 -A 2,932.74 39,895.1 8413 PANUCCI,RONALD 02/1956 09/01/02 RONDA L. PANUCCI 05/1957 3 -A 1,682.21 23,812.2. 6384 PASSALAQUA,PETER 04/1948 09/01/04 JOANNE SCHWARTZ- WIFE 04/1959 2 3,949.41 50,937.1 4173 PETERS,JOHN 05/1965 10/01/04 00 /0000 2 3,826.82 49,743.7 7453 PRESTINARI,JAMES 02/1959 06/01/04 LOIS R. PRESTINARI 04/1963 1 5,352.71 68,096.4' 2956 PRINCIPE JR,ANTHONY 09/1957 02/01/04 00 /0000 1 983.16 14,524.2: 4983 CUMMINGS,GERALD 12/1944 08/01/00 00 /0000 2 1,691.75 23,866.8 3584 RANZIE,FRANK 03/1964 09/01/12 CORINNE RANZIE 08/1967 3 -A 9,421.08 115,865.8 9280 RIGGLE,ROBERT 08/1966 07/01/04 00 /0000 1 3,504.77 45,911.0 1787 RITACCO,ERIK 03/1966 06/01/07 BOBBIE RITACCO 03/1969 3 -A 5,426.73 68,602.5. 0244 ROOT,RICHARD 11/1963 08/01/06 DIANN ROOT 12/1962 3 -A 5,138.28 65,246.8 2275 ROSENBERG,ANDREW 10/1958 03/01/05 DENICE ROSENBERG 05/1962 2 4,716.85 60,375.71 9178 ROSS,RICHARD 08/1953 02/01/01 00 /0000 1 2,847.00 38,452.1 2829 SCHILKE,RAYMOND 04/1961 10/01/02 LYNDA SCHILKE 11/1962 1 3,137.51 41,726.8. 2961 SCHOENFELD,STEVEN 01/1961 06/01/10 00 /0000 1 6,645.54 82,846.0 2650 SHANE,CHAD 07/1981 02/01/27 NEVADA JOY SHANE 09/1981 3 -A 1,423.21 .0- 5857 SHORTLEY III,WILLIA 08/1957 11/01/01 ELIZABETH A. SHORTLEY 10/1965 2 3,429.84 45,350.7 9558 SMITH,DANIEL 02/1953 03/01/01 MRS. SMITH 01/1961 1 2,874.59 38,773.0' 0829 SMITH,JOHN 09/1956 07/01/03 NANCY SMITH 12/1962 1 4,032.92 52,376.1 0094 SMITH,PATRICK 06/1943 01/01/98 GAIL SMITH 12/1943 1 4,408.93 57,588.9 2073 SPRUILL,SCOTT 11/1979 02/01/23 CHLOE SPRUILL 09/1977 3 -A 3,309.38 .0 5932 STEELE,STEWART 07/1964 03/01/11 LACITIKA (LACI) STEELE 04/1976 3 -A 5,736.01 5,736.0 3053 THOMAS,ROBERT 04/1959 05/01/07 00 /0000 1 5,796.70 73,052.3. 3981 THOMPSON,LEE 03/1952 07/01/04 ANGELA C. THOMPSON 12/1948 3 -A 2,820.13 37,444.3. 2145 THRASHER JR.,DONALD 03/1949 10/01/97 MARGARET THRASHER 05/1954 2 3,594.27 47,844.9. 7904 TOME,WILLIAM 12/1958 11/01/05 LINDA P TOME 11/1960 3 -A 3,292.19 43,189.3. 2185 TRAYLOR,EVERETT 12/1946 03/01/01 MARIE TRAYLOR 07/1954 2 2,897.87 39,052.4 9252 TRAYLOR,MARIE 07/1954 04/01/01 LEON TRAYLOR 12/1946 2 3,104.84 41,525.8 2425 TURNER,TERRENCE 08/1958 08/01/04 LISA TURNER 02/1963 3 -A 3,047.61 40,413.6 0631 UNGER,WENDY 07/1961 12/01/10 00 /0000 2 8,914.19 110,006.1. 1569 VALERIO JR.,PAUL 06/1953 08/01/00 00 /0000 2 4,209.44 54,865.1 3861 VARGAS,DANIEL 11/1961 10/01/02 MICHELL VARGAS 11/1961 1 3,367.64 44,488.3 7052 WALKER,GARY 08/1959 05/01/04 DIANE WALKER 08/1963 2 3,624.05 47,362.7 0524 WIER,DAVID 07/1968 07/01/12 00 /0000 1 6,700.01 83,234.7 0028 WISNIEWSKI,KATHRYN 06/1962 05/01/04 00 /0000 2 3,299.75 43,471.1 I BOYNTON BEACH POLICE OFFICERS' PENSION FUND Scheduled 2016 Quarterly Board Meetings 10 �+ February.9,2016, Tuesday, @ 10:30 AM May 10, 2016, Tuesday, @ 10:30 AM August 9, 2016, Tuesday, @ 10:30 AM November 8, 2016, Tuesday, @ 10:30 AM (Meeting dates on 2 " Tuesday of the Month- Subject to Change) Meeting Location: Renaissance Commons Executive Suites 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 May 26, 2015 s LM.4 A PARTNERSI4IP OF PROFESSIONAL ASSOCIATIONS ATTORNEYS AT LAW Relocation Notice I would like to express my gratitude for all your support with my partnership and our growing business. Please note that I will be relocating my office effective November 1, 2015 to the below address: fi fir 4 39 . New Address 7080 Northwest 4 1 " Street �- Plantation, Florida 33317 '` { Telephone 954 - 916 -1202 Fax 954 - 916 -1232 My other contact information will remain the same: Email bonni@robertdklausner.com G� Website www.robertdkiausner.com Effective in November, future invoices will be payable to: Klausner, Kaufman, Jensen & Levinson Thank you for taking the time to update your records. Please feel free to contact me to discuss any questions you may have. 7080 NORTHWEST 4TH STREET, PLANTATION, FLORIDA 33317 PHONE: (954) 916 -1202 • F AX: (954) 916 -1232 www.robertdkiausner.com �k F Barbara Ladue From: Pete.Strong @gabrielroeder.com Sent: Wednesday, October 14, 2015 4:22 PM To: ladueb @bbpdpension.com Cc: cl00560 @gabrielroeder.com; cl00550 @gabrielroeder.com Subject: GASB 68 disclosures - Boynton Fire and Boynton Police Hi Barbara, I don't recall whether or not I discussed GASB 68 with the Boynton Fire and Police Boards. GASB 68 is required for employer reporting effective for the fiscal year ending 9/30/2015. Since it is required for employer reporting purposes (not plan reporting... GASB 67 is for plan reporting), many Boards have opted to authorize us to work directly with the City to complete the GASB 68 disclosure work. Will you please check to see if the Boards have authorized this? If not, will you please add it to the agendas for both Boards' next meetings (just asking if the Boards will authorize GRS to work directly with the City to help the City comply with the new GASB 68 disclosure requirements)? Thank you! -Pete Strong Peter N. Strong, FSA, EA, FCA, MAAA Senior Consultant and Actuary Gabriel, Roeder, Smith & Company One East Broward Boulevard Suite 505 Fort Lauderdale, FL 33301 -1804 Telephone: (954) 527 -1616 (ext. 2102) Direct: (954) 713 -2102 Fax: (954) 525 -0083 pete.strong@gabrielroeder.com The above communication shall not be construed to provide tax advice, legal advice or investment advice. Notice of Confidentiality: This transmission contains information that may be confidential and that may also be privileged. Unless you are the intended recipient of the message (or authorized to receive it for the intended recipient), you may not copy, forward, or otherwise use it, or disclose its contents to anyone else. If you have received this transmission in error, please not6 the sender immediately and delete it from your system. ` Please consider the environment before printing this e-mail. 1 Barbara Ladue From: Serene, Mary Jean <mjserene @russell.com> Sent: Thursday, October 08, 2015 2:27 PM To: Barbara Ladue; Athol, Toby Cc: Frank Wan Subject: FW: LSEG agrees to the proposed sale of Russell Investments Barb and Toby, Please find below a message that you should have received today from Len Brennan announcing that LSEG has entered into an agreement to sell the investment management and solutions business of Russell Investments. I wanted to follow -up personally to make sure this important communication was received. Please forward to others as you think makes sense. If you have any questions or would like to discuss further please don't hesitate to let me know. Warm regards, MJ Securities products and services otftered through Russell Financial Services Inc. member FIKIRA and SIPC, 9301 Second Avenue 98th Floor, Seattle, Ri'i1A 98101, part of Russell Investments. The information contained in this message is for the use of the intended recipient(s) named above. If you received this e-mail in error, please notify us immediately at (810) 787 -7354. Russell Investments is a trade name and registered trademark of Frank Russell company, a Washington USA corporation, which operates through subsidiaries worldwide and is part of London stodh Exchange Gvoup. From: Len Brennan [ mailto: russellinvestment group@russell.com Sent: Thursday, October 08, 2015 12:48 PM To: Serene, Mary Jean < miserene(@russell.com > Subject: LSEG agrees to the proposed sale of Russell Investments view online October 8, 2015 Dear valued clients and partners, I am pleased to inform you that today London Stock Exchange Group (LSEG) announced it has entered into an agreement to sell the investment management and solutions business of Russell Investments to TA Associates, one of the world's oldest and most experienced global growth- oriented private equity firms. Reverence Capital Partners (Reverence Capital), an investment firm with broad asset management experience, has partnered with TA Associates and will be a significant minority investor. Headquartered in Boston, and with additional offices in Menlo Park, London, Mumbai and Hong Kong, TA Associates has a long and successful track record of partnering 1 with management teams to invest in industry - leading, growing companies, including asset managers. TA Associates has been a leading partner to asset managers for more than 25 years, having made 17 investments in the asset management space to date. Since 1968, TA Associates has invested in more than 450 companies globally and across industries, and has raised more than $18 billion in capital. Based in New York, Reverence Capital was founded in 2013 by former partners of Goldman Sachs and General Atlantic. Its partners have more than 90 years of combined experience in the financial services industry, and the firm has invested in several asset management firms since its founding. TA Associates' and Reverence Capital's combined experience, considerable knowledge of our industry, global business insights and strong financial backing make them an exemplary fit for Russell Investments' growing, global business. TA Associates and Reverence Capital have each known Russell Investments and some of the management team for more than 20 years and were both attracted to our strong reputation, industry- leading investment capabilities, the quality of our client services and our differentiating execution capabilities. While they will play an active role in the strategic and financial aspects of our business through their involvement at the board level, our management team will lead and manage the day -to -day business of Russell Investments. I will continue to lead the firm as its President and CEO and will remain a member of the board. Our capabilities, products, services, and client service teams will remain in place globally. While these important aspects of Russell Investments will stay the same, TA Associates and Reverence Capital are committed to investing in the long term for growing and supporting our collective vision - further enhancing Russell Investments' value proposition to our clients worldwide. Last year, as you know, we worked with LSEG to obtain the necessary shareholder and regulatory approvals for its acquisition of our business. A similar process will take place in the coming months in relation to this transaction. We will keep you informed, to the extent regulations permit, as we make progress. We expect the transaction to close in the first half of 2016, subject to the necessary approvals. Until completion, LSEG remains firmly committed to partnering with us to ensure that the quality of our investment process and client service remains unchanged. We greatly appreciate your continued support throughout this process. In closing, I want to reiterate that, together with our new owners, Russell Investments will continue to deliver the trusted open- architecture investment proposition and client service that you expect from us. I also want to assure you that our long -held values of behaving with non - negotiable integrity, having a genuine focus on our people, and striving to exceed client expectations will not waver. Thank you, as always, for trusting us with your business. This is an exciting opportunity for us all. Sincerely, 2 Len Brennan President & CEO Russell Investments IHI I The Russell logo is a trademarK and service mark of Russell Investments. UNI —10525 This email was sent to: miserene@russell.com You have the right to unsubscribe at any time. To 'opt -out' of receiving further email communications from Russell Investments, please click here We cannot process your request if you reply to this message. Russell Investments, 1301 Second Ave, 18th floor, Seattle, WA 98101, United States. RSSL -MKTG I I 3 Barbara Ladue From: Bonni Jensen <bonni @robertdklausner.com> Sent: Thursday, October 08, 2015 5:01 PM To: Cherry- Guberman, Catherine Cc: Athol, Toby; Caudell, Scott; DeGiulio, Joseph; Faine, Russell; LaDue, Barbara; Llopis,Jason; bsjteam; Linda Sultzer Subject: Boynton Beach Police Pension Fund RE: Minutes of the July 2015 Police Pension Board Catherine, Please revise the motionon page 5 to read: Mr. Llopis moved to approve changing to the new required mortality table if the cost of implementation was less than 1% of payroll. Call me if you have any questions. Thanks! To make sure that your email is handled in a timely manner, please copy BSJTeam@robertdklausner.com Bonni S. Jensen Klausner, Kaufman, Jensen & Levinson 400 Executive Center Drive, #207 West Palm Beach, Florida 33401 Telephone: 561 - 686 -6550 bon ni(a)-robertdklausner.com NE I L Nd 7080 N.W. 4 1h Street Plantation, Florida 33317 Telephone: 954- 916 -1202 Facsimile: 954 - 916 -1232 CONFIDENTIALITY NOTICE: This communication is confidential, may be privileged and is meant only for the intended recipient. If you are not the intended recipient, please notify the sender ASAP and delete this message from your system. IRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. From: Cherry- Guberman, Catherine [ mailto:CherryC bbfl.us Sent: Thursday, October 08, 2015 12:17 PM To: Athol, Toby; Bittinger Jeanine; Bonni Jensen; Candioto Mary; Casello, Joseph; Caudell, Scott; Cristini Richard; CUMULATIVE EXCESS SEPTEMBER 30, 2012 TO SEPTEMBER 30, 2015 I 1 z w w cn U p� x w w Q J U _1 Z \,00� i -2 12/2012 6/2013 12/2013 6/2014 12/2014 6/2015 Latest Quarter 1 Year 2 Years 3 Years Russell ARFI Russell ARFI -0.62 -0.93 1 -1.37 -1.05 Barclays Aggregate 0.00 0.00 0.00 0.00 RISK BENCHMARK USED FOR THIS ANALYSIS: BARCLAYS AGGREGATE � a PERFORMANCE BAR PERIODS ENDING SEPTEMBER 30, 2015 3 I 2 - - Z w cr LL O -2 12/2014- 9/2014- 12/2013- 9/2013- 6 /2015 - 9/2015 3/2015- 6/2015 3/2015 12/ 2014 6 /2014 - 9/2014 3/2014- 6/2014 3/2014 12/2013 6/2013- 9/2013 Russell ARR Russell ARFI 0.61 -0.87 1.98 0.30 0.65 0.81 0.18 2.12 -1.20 Barclays Aggregate 1.23 1.68 1.61 1.79 0.17 2.04 1.84 0.14 0.57 ill Russell Investments Quafterly Investment Review City of Boynton Beach Police Retirement Fund THIRD QUARTER 2015 ••• �• �••••••• •�a•s�a•• ••�s••••••••••••�••••• ••••••••••••• ••••••••••••••••••••••••••••••• Quarterly Investment Review City of Boynton Beach Police Retirement Fund Your Client Service Team Mary Jean Serene, CFA Karen Pheneger Jacqueline Pedraza Michael Auger Client Executive Client Service Analyst Senior Account Executive Regional Director (877) 500 -1298 (800) 426 -7969 (800) 455 -3782 (312) 780 -7124 (206) 505 -1972 (206) 505 -1939 (813) 288 -4624 mjserene @russell.com kpheneger @russell.com jpedraza @russell.com mauger @russell.com Russell Investments Russell Investments Russell Investments Russell Investments 71 S. Wacker Drive, Suite 2040 1301 Second Avenue, 18th Floor 1301 Second Avenue, 18th Floor 15310 Amberely Drive Chicago, 11 60606 Seattle, WA 98101 Seattle, WA 98101 Tampa, FL 33647 Fax (312) 780 -7159 Fax (206) 505 -1565 Fax (206) 505 -1565 Fax (813) 910 -7676 p.2 �i. Russell Investments 00000•000r 000*90000 000•00000000S00i00000000i Important Information Russell Trust Company Funds are collective or commingled funds for which Russell Trust Company serves as trustee. They are not funds of Russell Investment Company, nor a mutual fund registered under the Investment Company Act of 1940. Russell Institutional Funds, LLC (RIFL) funds are not mutual funds, but are funds of the Russell Institutional Funds, LLC, they are private placements. An investment in the Russell Institutional Funds, LLC involves certain risks and considerations that prospective investors should evaluate before making a decision to invest. The information provided in this material is for the exclusive use of the recipient for the sole purpose of evaluating the Russell Institutional Funds, LLC private placement. The material may not be reproduced, provided or disclosed to others or used for any other purpose without prior written authorization. No investment may be made in any fund unless the investor has reviewed the Private Placement Memorandum ( "PPM ") and the PPM Supplement with respect to the particular fund(s) under consideration. Prospective investors should read all of the materials carefully before investing, and are advised to consult with their own legal, tax and financial advisers as to the consequences of an investment in any fund. Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns. Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors and size of companies preferred by the advisors. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. Indexes and /or benchmarks are unmanaged and cannot be invested in directly. Past performance is not indicative of future results. Performance is gross of fees unless otherwise noted. Fees will reduce the overall performance of the fund. Only client account performance is reflective of actual investments from the client's investment inception date. Fund performance shown does not reflect individual client investment inception dates or other client specific actions such as contributions. Russell Investments and Standard & Poor's Corporation are owners of the trademark, service marks, and copyrights relating to the Russell Indexes and the S &P 500, respectively. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI. Source: BofA Merrill Lynch, used with permission. BofA Merrill Lynch is licensing the BofA Merrill Lynch Indices "as is ", makes no warranties regarding same, does not guarantee the quality, accuracy, and /or completeness of the BofA Merrill Lynch Indices or any data included therein or derived there from, and assumes no liability in connection with their use. Copyright© Russell Investments 2015. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an "as is" basis without warranty. Russell Investments is a trade name and registered trademark of Frank Russell Company, a Washington USA corporation, which operates through subsidiaries worldwide and is part of London Stock Exchange Group. The Russell logo is a trademark and service of the Russell Investments. First used: August 2015; updated November 2015 USI -22695 08 -16 p.3 Russell Investments V Russell Investments Russell Update Third Quarter 2015 Russell Investments sale update Third quarter 2015 October 8, 2015 - TAAssociates announced it has signed a definitive agreement to acquire Russell Investments' asset management business. The transaction is expected to be completed (pending regulatory and other approvals) in the first half of 2016. TAAssociates is one of the oldest and most experienced PE firms and has been a leading investor in the asset management industry for more than 25 years. Reverence Capital Partners partnered with TAAssociates and will make a significant minority investment in Russell Investments. Benefits of acquisition for Russell Investments and our clients: > TAAssociates and Reverence Capital are committed to partnering for the long -term — they support our vision to enhance Russell Investments as a leader in multi -asset solutions. > Russell Investments' management will lead the day -to -day business of the firm — Len Brennan remains our President & CEO and will be a member of the Board. > TAAssociates and Reverence Capital are focused on stability — commitment to client service, our capabilities, products and services remain in place. > New owners will offer financial backing, strategic guidance, and industry expertise to help Russell Investments continue to invest and grow. > New owners have known some of Russell Investments' senior management for more than 20 years — attracted to our strong reputation and differentiating capabilities. p.5 G Russell Investments Russell update and events Third quarter 2015 Russell hosted event 1 • RUSSELL INSTITUTK)NAL •• •• RESORT • /• > May 14 -17 2016 — Russell Institutional Summit L l Scottsdale, AZ p.6 VY.*1 Russell Investments Russell �Investments Economic and Financial Markets Review Third Quarter 2015 ••••••••••••• ••••••••••••••••••••••••••••••• Capital markets Periods ending September 30, 2015 ■ U.S. Equity Capital Market Returns 20 ■ Non -U.S. Developed Equity 15 ■ Emerging Markets 12 . 5 13.3 ■ U.S. Bonds 10 ■ Global REITs 7.5 6.9 1 6.2 3 Commodities 4.8 4.6 4.7 Z 5 1.2 1.1 2.9 2.7 5. 1.7 . 3.1 '3.3 0 �� _K. - 1 6 .. -0.5, -2.9 LL -5.5 -6.3 -4.8 -4.1 -5.7 O- 10 - 7.3 _,., --. - -10.3 I - 9.5 -8.9 - 20 X 18.1 -14.5 $ -15.0 -15.8 -16.0 -19.1 - 25 -30 -26.0 3Q 2015 YTD 1 -Year 3 -Years 5 -Years 10 -Years ANNUALIZED U.S. Equity: (Russell 3000 Index) U.S. stock index which includes the Capital Markets: 3,000 largest U.S. stocks as measured by market capitalization Non -U.S. Developed Equity: (Russell Developed ex -U.S. Large Cap > Federal Reserve uncertainty and global growth concerns contributed Index) International market index that includes Western Europe, Japan, to volatile U.S. equity markets Australia and Canada > Developed non -U.S. equity markets, hurt by economic uncertainty Emerging Markets: (Russell Emerging Markets Index) Emerging and choppy growth, lagged U.S. markets markets index that includes S. Korea, Brazil, Russia, India and China > Emerging markets impacted by Chinese market volatility and slowing U.S. Bonds: (Barclays U.S. Aggregate Bond Index) Broad index for growth expectations U.S. Fixed Income market > U.S. bonds buoyed by decrease in interest rates during the quarter Global REITs: (FTSE EPRA /NAREIT Developed Real Estate Index) > Global REITs finished down almost -1.6% with mixed regional Index for global publicly traded real estate securities returns Commodities: (Bloomberg Commodity Index Total Return) Broad > Commodities hurt by falling energy prices and global growth index of common commodities concerns Source: Russell, Barclays, Bloomberg, and FTSE NAREIT. p.8 Index returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Vial Russell Investments Every year has a pullback And should not distract the long -term investor Calendar -year U.S. equity returns ( %) and intra -year declines 50 40 38 33 33 30 27 30 28 In 16 of - last 2 22 21 eq uity Z 20 15 16 16 13 - -• in 11 • 0 - - average Q territory LU ■ -10 -3 ■ ■ ■ ■ ■ ■ ■ -5 • • . ■ -8 -7 -8 -6 -8 -8 R (peak Q -10 -12 -12 ■ -8 -10 -10 -12 ■ -13 -16 was 15.7% w -20 -18 -22 ■ -20 a -30 ■ U -30 ■ -27 - pullba -40 -33 -38 were greate 10%, 9 of those 13 -49 years finished in -60 1 positive territo 4 cp 4A 0 0 0 0'` 'g p o°` 4 `3 o`O 4'A z% 4 N N N -1, N NN +�°� �g h ,�°� �°� ti ti ti4 �4 , ti 0 ti , L O 1 � ti0 �4 � , ti 0 , L O � �� ■ Russell 10000 Index ■ Maximum peak - to - trough during the year Source: Russell. Returns calculated with dividends included. Maximum peak -to- trough represents the return difference between the largest peak -to- trough of the calendar year. Index returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Indexes are unmanaged and cannot be invested in directly. P.9 Vim] Russell Investments China is slowing, not collapsing Important driver of world growth • • • • • 4x the size of U.S., 1 Ox Japan, 15x Germany y Rural to urban, manufacturing to consumer driven WORLD POPULATION Remains emerging due to low GDP per capita > 60% the size of U.S., 2x Japan's, 2.5x Germany's ?nd > Growth Is slowing ( -7 %), not ending > Top export destination for GLOBAL ECONOMY > Australia, Japan, South Korea, Singapore, Philippines, Saudi Arabia, Nigeria, Brazil and Venezuela t h > 1/16 the size of U.S., 1 /3rd Japan's, = Germany's 8 > The largest emerging market at ^-3% of world cap STOCK MARKET > Down 11 % YTD, returned 0.0% over five years Sources: World Bank, IMF, and MSCI Indexes. All data as of 9/30/2015. p.10 Russell Investments i Inflection point Russell fourth quarter 2015 strategist outlook UNITED STATES Fed lift-off looms Alive and well Taking a -. . ASIA-PACIFIC breather -W > Forecast 2.5% GDP growth > Forecast 1.5 % -2% > China experiencing over next 12 months GDP growth slowdown — but expected > December Fed interest rate > Continued monetary soft landing hike anticipated stimulus from European > Commodities tempering > U.S. Dollar still room to Central Bank Australia and New move higher > Expect 8 % -10% Zealand growth > U.S. stock and bond corporate earnings growth > Unconvincing economic valuations above long -term > Valuations attractive growth in Japan, perhaps averages relative to U.S. more monetary stimulus > Low risk of economic > Favored global equity recession market • e There is no guarantee the stated expectations will be met. As of 10/1/2015 P.11 Russell Investments ill Russell Investments Account Review Third Quarter 2015 ••! � ••••�•••••••••••!••i••�••�!•••• Asset Summary Report City of Boynton Beach Police Retirement Fund As of September 30, 2015 Market Actual Policy Holding Value Holding Holding Variance Boynton Beach Police Officers Retirement Trust Investment Account - OU7V Total Assets $ 77,860,912 100.00% 100.00% % RTC Multi -Asset Core Fund 29,668,247 38.10 39.00 -0.90 RTC Russell LC Defensive Equity Fd 20,005,118 25.69 26.00 -0.31 RTC Multi- Manager Bond Fund 21,709,238 27.88 28.00 -012 RTC Real Estate Equity Fund ' 6,083,000 7.81 7.00 0.81 Cash, Payable /Receivable 395,310 0.51 0.00 0.51 Please read the endnotes included with the report. Endnotes: 1 Market value is as of the quarter ending 06/30/15. PRELIMINARY 11- Oct -2015 8:36:37 PM EDT Copyright (c) Russell Investments 2015. All rights reserved. p.13 FA61 Russell Investments Market Value Reconciliation City of Boynton Beach Police Retirement Fund As of September 30, 2015 FYTD One Month Three Months Year to Date 09/30 Bn n ±,ar n arh Pnlirr• nfficers Retirement Trust Investment Acc . ni 17W Beginning Market Value $ 78,507,505 $ 80,967,512 $ 81,540,326 $ 76,153,463 Inflows 774,159 1,018,192 1,666,983 6,301,117 Outflows - 463,456 - 1,531,808 - 4,629,673 - 6,376,972 Net Inflows /Outflows 310,703 - 513,616 - 2,962,690 - 75,855 Appreciation /Depreciation - 957,295 - 2,592,983 - 716,724 1,783,305 Income Earned 0 0 0 0 Net Market Gain /Loss - 957,295 - 2,592,983 - 716,724 1,783,305 Ending Market Value 77,860,912 77,860,912 77,860,912 77,860,912 PRELIMINARY 11- Oct -2015 8:36:37 PM EDT Copyright (c) Russell Investments 2015. All rights reserved. p.14 iii. Russell Investments ••••••••••••• ••••••••••••••••••••••••••••••• Systematically bringing you manager insight The 4 P's of skillful manager research 2,958 Are people or TOTAL INVESTMENT PRODUCTS MONITORED •' organizational > advantages evident? 7,322 4 INVESTMENT PRODUCTS Q V CONTINUALLY RESEARCHED V .. Is process powerful Olt >j# 773 and distinctive? INVESTMENT PRODUCTS WITH A PRIMARY "HIRE" RATING w > _ Is portfolio consistent 439 with expectations? IV INVESTMENT MANAGERS USED z _ _ Is performance IN RUSSELL FUNDS indicative of skill? d Manager research & 13 portfolio management 39 manager due diligence Countries covered by Voted tops for having best • • • dill ' - professionals our research team 9 g Data as of 3/31/2015. Total Investment Products Monitored: is the total number of products listed in the database, including Alternatives products. Investment Products continually Researched is the number of products in the database with an active offering status where Russell has applied a defined rank (1,2,3,4,A,B,C,D), including Alternatives products. Investment Products with a primary'Hire' Rating is the number of products in the database with an active offering status with a Hire (4) rank including Alternatives products. Investment Managers used in Russell Funds is the total number of Investment Managers with signed executed contracts as of the quarter -end reporting period. For a sixth year in a row, Russell was voted among the top two for having the best manager due diligence practices by respondents in a 2014 FundFire survey of nearly 100 consultant relations professionals. Russell was rated as having the most rigorous due diligence process for evaluating a product's suitability in a client portfolio. In five of those years, we were ranked #1. p.15 Vial Russell Investments Building a responsive portfolio Positioning strategies enhance implementation skill CONSTRUCT A M MANAGE Y Manager allocation Market over time Strategic positioning strategies ■ ■ � O ♦ �r Manager Manager weight Dynamic positioning . changes changes strategies p. 16 Russell Investments RTC Multi -Asset Core Fund Asset allocation and advisor lineup as of September 30, 2015 RTCS all a Fund r .. F�n 1 • , • •' Ancora Advisors Alliance Bernstein Cohen & Steers Cohen & Steers CoreCommodity Neuberger Berman Polaris INVESCO Colonial First Credit Suisse Sanders Morgan Stanley Lazard Gresham Wellington Harding Loevner Russell Trust Company Nuveen Russell Backwardation Strategy Russell Posit M o - S trategies ag Russell 111 Posit Strategies Allocations and Advisors /Funds /Strategies are as of September 2015. Current data may be different. The Russell Multi -Asset Core Fund is a dynamic, diversified portfolio designed to capture market opportunities. The underlying allocations to various asset classes will shift over time, but the overall strategic allocation will remain 75% global equity /15% marketable real assets /10% U.S. fixed income. 'Russell positi strategie are customiz exposu directly managed b y Russell fo use within th total p ortfolio and may include overlays, i ndex replication, smart beta strategies, an custom quantitative strategies. - -- - -- - This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. P 17 Russell Investments � Performance Report City of Boynton Beach Police Retirement Fund As of September 30, 2015 Annualized Market One Three Year to FYTD One Three Five Ten Since Inception Value Month Months Date 09/30 Year Years Years Years Inception Date Boynton Beach Police Officers Retirement Trust Investment Account - QU7V Total Assets -Gross 12 $ 77,860,912 -1.21 % -3.23% -0.96% 2.07% 2.07% 7.76% 8.31 % 5.66% 6.43% 07/01/2002 Total Assets -Net 1.2 77,860,912 -1.26 -3.39 -1.49 1.32 1.32 6.93 7.46 4.87 5.64 07/01/2002 Russell Custom Benchmark 3 -1.15 -3.66 -2.42 0.19 0.19 6.42 7.31 5.24 6.04 Consultant Benchmark 4 -1.69 -4.73 -3.67 -1.75 -1.75 4.42 6.25 4.97 5.77 Total Liquid Return Seeking 49,673,365 -2.04 -5.43 -2.94 0.62 0.62 9.62 10.38 08/31/2012 RTC Multi -Asset Core Fund 29,668,247 -2.67 -6.58 -2.89 -0.54 -0.54 8.23 9.02 08/31/2012 Multi -Asset Core Composite Bmk s.s -2.89 -7.81 -574 -4.35 -4.35 6.28 704 RTC Russell LC Defensive Equity Fd 20,005,118 -1.10 -3.69 -3.07 2.33 2.33 9.33 09/18/2013 Russell 1000 Defensive Index (Linked) -0.81 -3.62 -3.97 1.20 1.20 8.82 Total Fixed Income 21,709,238 0.32 0.97 1.30 2.91 2.91 2.68 4.17 5.46 5.43 09/01/2002 Barclays U.S. Aggregate Bond Index 0.68 1.23 1.13 2.94 2.94 1.71 3.10 4.64 4.58 RTC Multi- Manager Bond Fund 21,709,238 0.32 0.97 1.30 2.91 2.91 2.68 4.17 6.53 09/30/2008 Barclays U.S. Aggregate Bond Index 0.68 1.23 1.13 2.94 2.94 1.71 3.10 4.65 Total Alternative Investments 2 6,083,000 0.00 0.00 7.91 11.88 11.88 12.74 12.76 4.73 07/01/2006 Please read the endnotes included with the report. PRELIMINARY 11- Oct -2015 8:36:37 PM EDT Copyright (c) Russell Investments 2015. All rights reserved. Past performance is not indicative of future results. p 18 Russell Investments 00.00000.0000 000000.001000000000.00000000 Performance Report City of Boynton Beach Police Retirement Fund As of September 30, 2015 Annualized Market One Three Year to FYTD One Three Five Ten Since Inception Value Month Months Date 09130 Year Years Years Years Inception Date RTC Real Estate Equity Fund 2 $ 6,083,000 0.00% 0.00% 7.91 % 11.88% 11.88% 12.74% 13.90% % 5.13% 07/01/2006 NFI - ODCE -E0 7 0.00 0.00 7.45 10.79 10.79 11.88 13.06 5.09 Please read the endnotes included with the report. Endnotes: 1 Fee adjusted returns are estimated using basis point adjustments. Returns are geometrically linked and could experience compounding effects. 2 RTC Real Estate Equity Fund is valued quarterly. The market value shown is as of the quarter ending 06/30/15 while the performance is reported as of the date of the performance report. The market value is reported net of fees while returns are reported gross of fees unless otherwise noted. Fee adjusted returns are estimated using basis point adjustments. Returns are geometrically linked and could experience compounding effects. 3 Russell Custom Benchmark currently consists of: 39.0% Multi -Asset Core Composite Bmk, 26.0% R1000 Defensive, 28.0% Barclays Aggregate, 7.0% NFI - ODCE -EQ. 4 Consultant Benchmark currently consists of: 30.0% MSCI ACWI, 25.0% R1000, 32.0% Barclays Aggregate, 2.0% FTSE /NAREIT, 2.0% S &P Gbl Infrastructure Net, 5.0% NFI - ODCE -EQ, 2.0°% Bloomberg Commodity, 2.0% BofAML 3 -Month US T -Bill. 5 The Multi -Asset Core Composite Bmk is appropriate for evaluating the Fund over a 3 to 5 year horizon. 6 The Multi -Asset Core Composite Benchmark currently consists of: 75.0°% Russell World Cap 50% Hedged Net Index, 5.0% Bloomberg Commodity Index, 5.0% FTSE EPRA/NAREIT Dev Real Estate Net, 5.0°% S &P Global Infrastructure Index Net, 7.0°% Barclays U.S. Aggregate Bond Index, 3.0% Barclays U.S. 1 -3 Month Treasury Bill Index. Allocation changes and underlying fund additions and deletions over time will be captured in the composite index. Prior allocations available upon request. 7 NCREIF Fund Index Open -End Diversified Core Equity -Equal Weight (NFI - ODCE -EQ). i PRELIMINARY 11- Oct -2015 8:36:37 PM EDT Copyright (c) Russell Investments 2015. All rights reserved. Past performance is not indicative of future results. P.19 Russell Investments Am V Russell Investments Russell Fund Review Third Quarter 2015 ••••••••••••! •••••••••••••••••••!••i•••••••• RTC Multi-Asset Core Fund ++ Significantly positive + Positive Fund positioning — third quarter 2015 Negative - Significantly negative Strategic • • ns Justification Quarterly Impact • Small cap, value, and I Consistent with our strategic beliefs, we N/A I Despite this long term strategic belief, after a strong momentum overweights in ! believe these factor biases have long run by small cap and value over the past 5 years, equity term excess return potential neutralized these factor biases in 2014 Passive 50% currency hedge Hedging currency helps reduce regret, + We remain 50% hedged gives us ability to be tactical and can reduce overall volatility Tactical Tilts Justification Quarterly .. Underweight interest rate ■ Expensive relative to their historical + Maintained view in Q3 sensitive equities (REITs, levels, not likely to perform well in a Utilities, high dividend yield) rising interest rate scenario vs. cash Overweight Europe (hedged) ■ Low valuations, a supportive ECB and -- Maintained view in Q3 earnings improving on a weak Euro j could lead to outperformance 1 Overweight Growth Expected long term mean reversion + Growth managers have benefited from several Managers following value manager outperformance quarters of outperformance; began increasing weight to value managers with addition of Kopernik Overweight USD Economic growth, rising rates and policy + Continue to maintain underweight to CAD and AUD divergence could lead to strong USD Underweight Commodities Supply /demand imbalances and strong ++ Neutralized commodities position in mid - September dollar would cause headwinds Beta Underweight due to anticipated market + Entered the quarter with risk -off positioning volatility Selection •. ct Justification Quarterly Impact • Active manager stock Idiosyncratic in nature; Russell has ++ Incrementally added to high conviction active selection as the main driver differentiated research and managers managers after periods of underperformance of excess returns with skill i Past performance is not indicative of future results. p.21 This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. Russell Investments Any stock level commentary is specific to the impact on fund performance only and is not a recommendation to purchase or sell any specific security. RTC Multi -Asset Core Fund — period ending September 30, 2015 Strategy Annualized Performance 20 2015 One Year Yearto Three Inception The Russell Multi -Asset Core Fund has a strategic Date Years to date' allocation of 75% global equity, 15% real assets (global RTC Multi -Asset Core Fund - 6.58% - 2.89% -0.54% 8.23% 7.25% REITs, listed infrastructure, and commodities), and 10% Multi -Asset Core Composite Index - 7.81% -5.74% - 4.35% 6.28% 5.92% fixed income. The Fund is dynamic in nature and so the 'Fund inception date is 05/07/1992. Effective April 2, 2012 the Russell Global Equity Fund changed its name to the Russell Multi -Asset Core Fund and changes were made to the portfolio manager is allowed to deviate up to +/- 3% from underlying allocations/ investments. In addition, the Fund's primary benchmark changed from the Global Equity Composite Index to the Multi -Asset Core Composite Index, Historical performance of the Russell Multi -Asset Core Fund is available upon request. the strategic targets to take advantage of market Russell Multi -Asset Core Fund Composite Benchmark consists of 75% Russell World Cap 50 % Hedged Index, 5% Bloomberg Commodity Index Total Return (USD), 5% FTSE opp ortunities to enhance return and /or to manag risk. EPRA/NAREIT Developed Real Estate Index (Net),5 %S&P Global Infrastructure Index Net(USD), 7% Barclays U.S. Aggregate Bond Index, 3% Barclays U.S 1 -3 Month Treasury Bill 0 pp g Index. Strategic asset allocation changes overtime will be captured in the composite index. The Fund utilizes a combination of Russell asset class funds, separate manager accounts, and positioning Characteristics 302015 202015 strategies3. Total Net Assets $1.6713 $1.776 Excess Return Attribution 3Q 2015 Global Equity Fund Russell Fund Russell World Cap World Cap Top three contributors to excess return Portfolio P/E 16.4 15.3 16.0 17.3 Portfolio P/E — I /B /E /S 1 yr. Forecast EPS 15.0 15.1 16.2 16.4 $ Weighted Average Market Capitalization $81.5213 $79.0013 $89.536 $83.566 Active Managers 0 6% Return Seeking Fixed Incomes Fund Barclays US Fund Barclays US Aggregate Aggregate Current Yield ( %) 2.3 2.3 2.4 2.3 US Large Cap 01 Underweight Weighted Average Duration 5.4 5.4 5.4 5.2 Average Credit Quality Aa3 Aa2 Aa2 Aa2 CAD Underweight ■ 0.1 Strategic Asset Allocation Actual Asset Allocation as of 9/30/2015 0.00 % 0.10% 0.20% 0.30% 0.40 % 0.50 % 0 60°i 0.70 % Aggregate Cash Aggregate F Fixed Cash Income 3% Fixed 5 ■ Contribution to Excess Return Global c% Global Income Commodities Commodities 6% Top three detractors from excess return s% 6% Global Listed Real Estate s Global Equity 5 y Global Listed 49 EMEA ex UK Overweight -0 2% Real Estate _ Globa 3% Infra 5% Global Emerging Markets Neutral 0.0% ' S % Infrastructure 5% Emerging � Global UK Neutral 0 ' Markets Equities 3% Equites -0.60% -0,50% -0.40% -0.30% -020% -0,10% 0.00% Regional _ Small Cap 2% Is Contribution to Excess Return US Large Global ex- ,,A Lh,. Ca p Equities 8% 13% 3 PositioningstrategLi es - cus e directly managed by Russ for use within the total portfolio to effect the funds' in vestment strategies and /or to modify overall port folio c to seek to achie the desired risk/retum profile. 4 Strategic allocations may vary based on tactical allocations made by the portfolio manager, which may allow the weightings of each asset class to take advantage of potential opportunities as market and economic conditions change. See next page for additional disclosures. p.22 'Source FactSet �i. Russell Investments RTC Multi -Asset Core Fund - period ending September 30, 2015 Global Equities Regional Exposure Sector Exposure Local L)'' Local USD Index Return Index Return Index Return Index Return Utilities ` -0.5% -1.8% US 7.3% 7.3% Telecom -8.4% - 10.0% UK . -6.3% -9.6% IT -6.7% -7.1% Japan 13.3% - 11.4% Financials -8.6% -10.3% Health Care -8.9% -9.7% Canada ` -8.1% -14.3% Cons. Staples -0.4% -2.1% EMEA ex UK ! _&8% -7-7% Cons. Disc. -6.7% -7.4% I Asia /Pacific Ex Japan ° ° Industrials -9.1% -9.6% P - 10.9/0 - 15,9/0 Materials - 17.1% - 19.1% Emerging - 12.3% - 18.1% Energy -17.4% -19.2% 0% 20 % 40% 60% 0% 5% 10% 15% 20% 25% ■ Russell Multi -Asset Core Fund - Global Equities ■ Russell World Cap Index ■ Russell Multi -Asset Core Fund - Global Equities ■ Russell World Cap Index Real Assets Global Real Estate Exposure Global Infrastructure Exposure Commodities Exposure Highways 8 Other 15 % _. Railtracks 19% Cash 16% Diversified - 28% Railroads 4 %„ Livestock Retail 26% __ 3% Marine Ports Softs Services 4% SW 5% Gas Utilities 4% Electric Utilities 18% Airport Services 8% Precious Health Care Metals 5% 16% Industrial 4% Grains Residential f \ LodginglResorts Multi- Utildies l5% Oil &Gas 18/ 14% 5% Office Mixed _! I Storage & industrial 0% Transportation Metals - - Office 93 %. 13 %- 13 % The Russell Multi -Asset Core Fund is a dynamic, diversified portfolio designed to capture market opportunities. The underlying allocations to various asset classes will shift over time, but the overall strategic allocation will remain 75% global equity /15% marketable real assets /10% U.S. fixed income. The Russell Mulfi -Asset Core Fund invests in underlying funds of the Commingled Employee Benefit Funds Trust and/or separate accounts managed by Russell Trust Company. Prior allocations available up request. R ussell Multi -Asset Core Fund is an investment fund of the Russell Trust Company Commingled Employee Benefit Funds Trust. It is not a fund of Russell Investment Company, nor a mutual fund registered under the Investment Company Act of 1940 SSource: FactSet p.23 VY.-I Russell Investments RTC Multi -Asset Core Fund Asset class returns and average relative positioning as of September 30, 2015 Asset Class Returns Average Relative Position Fund Return (- 6.58 %) - - Benchmark Return ( -7.81 %) 4.0% 2.9% 2.1% 2.2% 2.0% 1.3% 0.1% 0.1% 0.0% 0.1% ' 41A 0.0 0.3% 0.1% 0.0% 0.0% .3 /0 0 0% 0.0% 0.0% f % .5% rn 2.0% - - - 1.8 1! 0 2% -4.0% - - - -- -- - - -- ... - -3.7% m 6.0% - 4.8% �6.�/0 6.3% a� -8.0% �6.81a - 6.910 .'.24M, _- - - - -8.2 -8.7% - 10.0% -8.9% -12.0% - 10.9% -14.0% _ -12.8% cn is a� io a�i in c °� 2 N J_ - a 0 0 - n m m c m d 0 m Q w 0 Y w o o U w U U Y Q N l0 c0 o m Y Q :3 Lu Lu cc m U @ rn a) cc E m � m o S U U) o rn c 0 a) -0 76 m 0 rn 0 W 0 2 C7 w Global Equities Real Assets Fixed Currencies Income /Cash *Local market returns. * *MSCI Emerging Markets Currency Index. The Index weights each emerging market currency return vs. the dollar by its market cap in the MSCI Emerging Markets Index. Currency returns are spot returns vs. USD. Performance is gross of fees. Fees will reduce the overall performance of the fund. Indexes /benchmarks are unmanaged and cannot be invested in directly. Data is historical and is not indicative of future results. Russell Multi -Asset Composite Benchmark consists of 75% Russell World Cap Index 50% Hedged, 5.0% Bloomberg Commodities Index, 5.0% FTSE EPRA/NAREIT Developed Real Estate Index(Net), 5% S &P Global Infrastructure Index, 7% Barclays US Aggregate Bond Index and 3% Barclays US 1 -3 Month Treasury Bill Index. Ru Volatility Equivalent Benchmarks consists of 85% Russell Wo CWndex 50% Hedged and _15 Barclays US Aggregate Bond Index. This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. p.24 Average relative position is average of weekly relative weights during the quarter. Russell Investments ••• •••••••••• •• ••• •••••• • ••••••••• RTC Multi -Asset Core Fund Asset allocation and advisor lineup as of September 30, 2015 Re ASSET CATEGORY Global Equity Real Assets i Income ASSET CLASS Global Equities Emer ADVISORSISTRATEGIES RTC _ Bo • RTC Small Cap Fund =MM 2.1% 2.7% Comm Fund Securities Fund Infrastructure Fund Fund 2. 9% 5 Kopemilk Ancora Advisors Cohen & Steers Cohen & Steers CoreCommodity Neuberger Berman 3,5 M Perkins Polaris INVESCO Colonial First Credit Suisse Sanders Morgan Stanley Lazard Gresham 6.9% M Wellington . Point Harding Loevner Russell Trust Company Nuveen RussellBackwardation Strategy Positioning Russell . Strategies 0, Snow Capital �. .. Russell Positioning Strategies Allocations and Advisors /Funds /Strategies are as of September 2015. Current data may be different. The Russell Multi -Asset Core Fund is a dynamic, diversified portfolio designed to capture market opportunities. The underlying allocations to various asset classes will shift over time, but the overall strategic allocation will remain 75% global equity /15% marketable real assets /10% U.S. fixed income. 'Russ positio strategies are customized exposures directl managed by Russell for use within t he total portfol and m ay i overlays, inde replication, smart beta strategies, and custom quantitative strategies. This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. p.25 Russell Investments � RTC Large Cap Defensive Equity Fund - period ending September 30, 2015 Strategy Performance - __ Annualized 302015 Year to date One year Three years Five years Ten years Seeks higher long -term returns that exceed the Russell 1000 RTC Large Cap Defensive Equity Fund - 3.69% - 3.07% 2.33 12.74% 13.80% 6.36 Defensive Index® by investing in common stocks that rank among Russell 1000 Defensive IndexQD (Linked)' - 3.62 - 3.97 1.20 12.13 12.82 6.67 the largest 1,000 companies in the U.S. stock market while main- - ` - -- - - taining volatility and diversification similar to the index over a full r 302 015 202015 market cycle. Characteristicsl Russell 1000 Russell 1000 Fund Defensive Index® Fund Defens Index® Total Net Assets 423.17 $9.90T $493.78M $ 10.34T Top 10 fund holdings' Fund % index %� - - Portfolio P/E - I /B/E/S 1 yr. Forecast EPS 16.2 16.5 17.7 17.7 Apple, Inc. 3.33 4.67 Procter 8 Gamble Co. (The) 2.57 1.97 LT Growth Fore I /B/E/S Medi ans 9.39% 9.18 90 9.33% 8.99 Price /Book Ratio 3.15 3.08 3.22 3.29 Johnson 8r Johnson 2.47 2.62 - - Wells Fargo 8 Co. 2.16 2.42 $ Weighted Average Market Capitalization $118.50B $147.96B $136.12B $157.198 UnitedHealth Group, Inc. 2,04 1.12 Portfolio Beta vs. Russell 3000 Index 0.79 0.77 0.78 0.76 Exxon Mobil Corp. 1.96 3.14 t Source: BNY Mellon Asset Servicing except Total Net Assets. Pfizer, Inc. 1.80 1.95 Se ctor weightings & 30 returnsl (%) Fund advisor s tyles Microsoft Corp. 1.71 1.99 Target weightings % 302015 202015 Coca -Cola Co. (The) 1.67 1.59 Market - oriented 100 100 Philip Morris International, In 1 1.59 1.24 RTC Large Cap Defensive Equity Fund � Raters Total 21.30 22.71 Russell 10000 Defensive % Advisor diversification -- - - t The top ten holdings list does not reflect the investment of cash Consum to3 reserves and cash collateral received in securities lending transactions in Discreu one or more of Russell's money market funds. consumer Large 2 Source: BNY Mellon Asset Servicing Staples 0.49 Jacobs Levy 30 Greatest i actl + Ovedunder contribution Financial 236 ( ) weight % to return % Services Russell I 00V Defensive Index Procter 8 Gamble Co. The 1.45 0.08 Health Care I I -8.07 AL Accenture PLC 0.89 0.06 +` Molson Coors BrewingGo. 0.26 0.06 Materials and , 790 RTC Defensive Equity Fund PanAgora Coca -C Co. (_The) 0.71 0.05 Processing Automati Data Processing, Inc. 0.56 0.04 Energ -22.60 JP Morgan 1 Ovedunder Conbibution 1 Msdiam Russell positioning strategies 30 Greatest impact (�) Producer. -5.30 Weight % t0 return % Durables Coho General Electric Company _ rt _ -1.24 0.07 3zo v kn GrsWh Abbott Laboratories 0.63 -0.06 Technol Am gen, Inc. 0.32 -0.05 Am erisourceB ergen Corp_._ 0.41 -0.04 Utilities z rz Gile Scie nces, Inc. -0.20 -0.03 - - 0 5 10 15 20 Source: FactSet I Source: BNY Mellon Asset Servicing 'Historical performance prior to July 2, 2012 is linked to the Russell 10006) Index. Advisors listed are current as of September 30, 2015. Russell has the right to engage or terminate an advisor at any time and without notice. This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. Performance shown is gross of fees. Fees will reduce the overall performance of the fund. Indexes are unmanaged and cannot be invested in directly. Past performance is not indicative of future results. p.26 O Russell Investments ••• •••••••••• •• •• ••••••••••••••••• RTC Multi- Manager Bond Fund - period ending September 30, 2015 -- gy - _ Performance - 302015 Year date one ye ar Thr ee a y ^bon Strata Annualized Seeks favorable returns com to the broad fixed income ye ye ar s Five ears to date' market by investing in bonds representing diverse sectors and RTC Multi- Manager Bond Fund 0.97% 1. 30% 2.91% 2.68% 4.17% 5.20% maturities. Ba rclays US Aggregate Bond I ndex 1.23 1.13 2.94 1.71 3.10 4.38 - - - -- - -' - -_ 1 Inception date 4/30/03. The date shown represents the date the index comparison began and may not be the actual index inception date. Qua lity istributi"' -i- y ons � Fund ( Yo� Index ( %) AAA 51.8 72.4 302015 202015 AA 4.3 3.7 Characteristics'! Barclays US Aggregate Barclays US Aggregate -- Fund Bond Index Fund Bond Index A 13.9 111.4 Total Net Assets $3.13B $18.18T $3.2813 $17.93T BBB 15.4 12.4 Current Yiel 2.67% 2.27% 2.82% 2.31% BB 3.9 0.0 Weighted Average Yield to Maturity 2.6% 2.3% 2.8% 2.3% B 1.7 0.0 Weighted Average Life 6.7 yrs. 7.5 yrs. 7.3 yrs. 7.3 yrs. CCC & Below 3.5 0.0 Weighted Average Duration 5.3 yrs. 5.4 yrs. 5.4 yrs. 5.2 yrs. Unrated 5.6 0.0 Average Quality' A2 Aa2 Al Aa2 Maturity distributions Fund (56) i IrWez (X.) 1 Source: FactSet except for Total Net Assets 0 to 3 Years 59.8 54.0 Fund advisor styles 3 to 5 Years 8.9 14.5 Sector weightings( %)s ,2 Target weightings 5 to 7 Years 9.3 9.2 Fund Index _ 3p301g 2p2pig 7 to 10 Years 10.5 8.9 Developed Government/ 19.3 43.4 ■ Fully discretionary 72.5 72.5 Government Related Alpha Overlay 14.0 14.0 10 to 15 Years 1.3 1.4 Investment Grade Credit 25.2 23.5 ■ Sector Specialist 5.0 5.0 15 to 20 Years 1.6 1.5 Nigh Yield 6.0 0.0 ■ Russell Strategies 6.0 6.0 20 to 25 Years 1.6 3.4 Commercial Mortgage Backed 5.6 1.9 25+ Years 7.2 7.1 Residential Mortgage Backed 17.9 28.2 A dvisor diversification 'Source: FactSet Asset Backed 7.1 0.6 Credit qualilty exposures and/or maturity distributions may not equal 100 percent as a result of the fund's use of certain financial Instruments Emerging Markets Debt 4.5 2.3 Russell Currency overlay such as Futures, forwards, options, swaps and when issued transac- Net Cash & Equivalents 12.8 0.0 Strategy western Asset lions or forward commitments. In the event short positions are created, q Russell Absolute Return 5.3% Management they may be reflected as negative weightings in sector allocations, cred- Deriv 0.0 0.0 Fixed Income Fund Conpany(Bank Loan) it quality exposures and /or maturity distributions. - - 0 1 Sector Allocations may not equal 100 percent as a result of the Macro Currency Group 1 fund's use of certain financial instruments such as futures, forwards _ Western Asset options, swaps and when issued transactions or forward commit- 8.0% Management Company ments. In the event short positions are created, they may be reflected Colchester Global 21.0% as negative weightings in sector allocations. Investors Larded 2 Source: FactSet and BNY Mellon Asset Servicing 6.0% Logan Circle Scout Investment Inc., partners, L. P. 18.5% 21.0% Brookfield Investment Wellington Management �- Management Inc. Corrpanay 4.0% 12.0% Advisors listed are current as of September 30, 2015. Russell has the right to engage or terminate an advisor at any time and without notice. -- This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. Performance shown is gross of fees. Fees will reduce the overall performance of the Fund. Indexes are unmanaged and cannot be invested in directly. Past performance is not indicative of future results. 'The sum of the debt instrument quality ratings is based upon the Barclays index methodology, which reflects the ratings of Moody's, Fitch and S &P in such a way that if three different ratings exist for the same instrument, the median rating is used: if two different ratings exist, the lower of the two is used and if only one rating exists, then that rating is used. If the debt instrument has not been rated by any of the three rating agencies, the security is classified as'Unrated." p .27 Viol Russell Investments Russell Real Estate Equity Fund - period ending June 30, 2015 - - - strategy Performance Annualized - - - - - -- - 2 One year Three years Five years Ten years Employs a Multi- advisor, multi -fund investment approach ap- Russell Real Estate Equity Fund 4.32 %° 15.63% 13.81 ° 15.08% 6.67% plied to private core and enhanced core real estate funds. NFI- ODCE -EQ 3.92 14.62 12.9 14.29 6.58 Focus on high current income. Manage risk through property - type / regional diversification and generally limit portfolio lever- 1 NCREIF Fund Index Open -End Diversified Core Equity - Equal Weight (NFI- ODCE -EQ). age to 30 %.1 Characteristics Total gross returns 1 RTC- REEF's leverage of 21.6% at 6/3012015 was within the general Target Market value Market value Three One guideline limit of 30% and below the Benchmark leverage of 23.2%. Core fund weighting % $ Millio % of total months % year % Morgan Stanley Prime Property Fund 20 -30 234.8 1 32.6 4 .50 1 Property type composition J.P. Morgan Strategic Property Fund 30 -35 222.0 30.9 3.70 13.37 INVESCO Core Real Estate - USA 15 -25 171.1 23.8 5.26 16.38 UBS Trumball Property Fund 20 -30 61.5 8.6 2.92 12.68 Clarion lion Properties Fund 20 -30 27.7 3.8 4.68 17.22 I Industrial 11.7% - -, - - - -- Apartments 25.2% B enchmark total return b rea kout % 20201 Y ear to date One year Income 1.2 2.41 r 4.91 Capital Appreciation 2.72 4.97 9.36 Self Storage 1.8% Retail 19.0% Other 0.21 Re gional compositio Hotels 0.8 I ■ PACIFIC 36.6% Office 41.3% ❑ MOUNTAIN 5.1% i � ® WEST NORTH CENTRAL 1.3 ■ SOUTHWEST 12.2% ❑ EAST NORTH CENTRAL 6.1 ■ NORTHEAST 20.2% ❑ MIDEAST 10.2% ■ SOUTHEAST 8.3% Funds listed are current as of June 30, 2015. Russell has the right to engage or terminate a fund at any time and without notice. This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. Performance is shown gross of fees. Fees will reduce the overall performance of the fund. Indexes are unmanaged and cannot be invested in directly. Past performance is not indicative of future results. p.28 50 Russell Investments � Russell / Investments Appendix Absolute Return Fixed Income ••••••••••••• i•• •••••••••••••••••••••••••••• RIFL Absolute Return Fixed Income Fund What is it? > A combination of liquid long -short strategies across global interest rates, credit and currency, where manager skill tends to drive total returns rather than systemic benchmark risks. > Return and risk are designed to be a core fixed income substitute with bond -like volatility and mid single -digit returns over the long term. Benefits > Seeks to deliver positive returns independent of the market cycle. > Flexible strategy not tied to a benchmark. > Broad investment universe creates more opportunity. > Focus is on downside protection. > Liquid strategy. > Broad diversifier to equities and bonds. The Russell Absolute Return Fixed Income Fund is not a mutual fund b ut i a fund of the Russel I nstitutional Funds, LLC; it is a private placement. p.30 Russell Investments RIFL Absolute Return Fixed Income Fund - period ending September 30, 2015 str ategy Annua Performance -- -- Inception 502015 Year to date One year Threa year Five year to date - Seeks to outperform the 3 Month LIBOR Constrained Index -- -- _ _ __ (USD Hedged) over an interest rate cycle. RIFL Absolute Return Fixed Income Fund -0.20% 0.89% 1.19% - % - % 1.13% Barclays 3 Month USD LIBOR Cash Index 0.08 0.22 0.8 - - 0.26 Qualit Distribution- 1 Inception 03/31/14. The date shown represents the date the index comparison began and may not be the actual index inception date. I y Fund (%) Index ( %) 2 Source: Barclays 3 Month USD LIBOR Cash Index, used with permission. Barclays 3 Month USD LIBOR Cash Index is licensing the Barclays AAA 84.2 100.0 3 Month USD LIBOR Cash Index Indices "as is ", makes no warranties regarding same, does not guarantee the quality, accuracy, and /or com- pleteness of the Barclays 3 Month USD LIBOR Cash Index Indices or any data included therein or derived therefrom, and assumes no liability AA 1.3 0.0 in connection with their use. A 1.7 0.0 302015 - - - � 202015 BBB 8.5 0.0 1 Characteristics Barclays 3 Month USD Bert 3 Month USD BB 2.6 0.0 Fund LIBOR Cash Index Fund LIBOR Cash Index B 0.6 0.0 Total Net Assets $172.85M $149.83T $115.93M $149.71T CCC & Below 0.0 0.0 Weighted Average Yield to Maturity 1.17% 0.33 0.14% 0.28% - -- - - Unrated 1.1 0.0 Weighted Average Duration 1.61 0.25 0.74 0.25 1 Source: FactSet Average Quality' Aa3 AAA Aa3 Aaa 1 Source: FactSet -- - - - - - 30 Currency Exposure (+) Portfolio Sector Weightings ( %)r 1 Fu Mana ger Styles USD 8.10 Fund Targ Weighting % 302015 202015 JPY 7.80 Cash 67.7 C urrency 55 55 NZD 1.02 Govt 3.08 A Multistrat 45 45 I MXN 0.01 Govt related (Quasi) 3.3 - - Finance 7.8 Manager D iversification Industrial 9.24 Utility 0.81 30 Currency Exposurel ( -) Portfolio ABS 3.27 Macro Russell GBP -2.00 Other 1.49 Currency Investments Group 5% TBH -2,01 1 The Other sector includes pooled investment vehicles, certain deriv- 50% atives, stocks and other investments not falling within one of the other CNY -2.30 listed sectors. EUR -2.43 Blue Bey AUD -4.39 Investment Grade 1 Source:FactSet Absolute Return Bond 490 investrnent Fund 45% Managers listed are current as of September 30, 2015. Russell has the right to engage or terminate a manager at any time and without notice. This is a fund of Russell Institutional Funds, LLC; it is a private placement. It is not a mutual fund or a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust. Performance is shown gross of fees. Fees will reduce the overall performance of the Fund. Indexes are unmanaged and cannot be invested in directly. Past performance is not indicative of future results. 'The sum of the debt instrument quality ratings is based upon the Barclays index methodology, which reflects the ratings of Moody's, Fitch and S &P in such a way that if three different ratings exist for the same instrument, the median rating is used: if two different ratings exist, the lower of the two is used and if only one rating exists, then that rating is used. If the debt instrument has not been rated by any of the three rating agencies, the security is classified as 'Unrated.' p.31 5_0 Russell Investments lP�' �tfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfiNCfi t 1' 1' 1' J J h J 1 J. CU i 1 1 j I As AkAk x@ 21 R . t&: 1 i! C. t&: 1 i! C. t&: 1 i! C. t&: 1 i! C. t&: 1 i! C. t&: 1 i! 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