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Agenda 05-12-15 r BOYNTON BEACH POLICE OFFICERS' PENSION FUND QUARTERLY BOARD MEETING Tuesday, MAY 12, 2015 @ 10:30 AM Renaissance Commons Executive Suites 1500 Gateway Blvd., Suite #220 Boynton Beach, FL 33426 AGENDA I. CALL TO ORDER — Toby Athol, Chair III. APPROVAL OF MINUTES — IV. FINANCIAL REPORTS: A) Quarterly Investment Review — March 31, 2015 1) Russell Investment Group — MJ (Candioto) Serene, CFA a) Investment Review — b) Absolute Return Fixed Income Fund (ARFI Fund) — Review and discussion - 2.) Burgess Chambers & Associates - Head of Research Frank Wan a) Fund Performance review — V. CORRESPONDENCE: 1) Kamp Consulting Solutions —" Liabilities Aware" memo dated 3 -5 -15 VI. OLD BUSINESS: A) Disability Application: Update /Status 1) Gregory Kenny — In process of Functional Capacities Exam — B) Response in reference to media coverage on Pensions - update VII. NEW BUSINESS: A. Invoices for review and approval: 1. Russell Investment Gp. — Quarter End 03 -31 -2015 - $137,952 2. Russell Payment Services — Quarter End 03 -31 -2015 - $ 921.87 3. Bonni Jensen PA — Service Feb, Mar & Apr 2015 - $2,954.16 — Special Disability FCE cost Kenny - $682 4. Burgess Chambers & Assoc — 1st Qtr 2015 fee - $6,250 5. Gabriel, Roeder, Smith & Co- Service thru Mar 2015 - $5,253 6. Davidson, Jamieson & Cristini — Audit balance billing $4,700 & State Report for 2014 - $1,200. 7. Professional Indemnity Agency, Inc. — Renewal Premium $16,445 paid 4 -7 -2015 for 4 -10- 2015/4 -10 -2016 — Review and ratification - 1 B) Attorney Report - Bonni Jensen 1) Statement of Policy for Trustee Expenses — Review and approval 2) Annual Form 1 Filing 3) HB 534 — Implementation requirements & Section 112.664, F.S. by Keith Brinkman, Bureau Chief C) Verification of Retirement Benefits: 1) Chad Shane — Vested Deferred Benefit D) Police & Fire Pension Board — RFP for Pension Administrator — Joint venture — Set-up and review process. VIII. PENSION ADMINISTRATOR'S REPORT 1. Benefits as of 05 -01 -2015 2. Pension Hardware /Software Update — Desktop/Monitor and All- purpose Printer - Existing program transfers completed and working with no problems 3 -23 -2015 IX. COMMENTS: X. ADJOURNMENT: Next Regular Meeting Date Tuesday, August 11, 2015 @ 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 \WPUANET\POLICE PENSION FUND.doc 2 I( it "fir- `... MINUTES OF THE BOYNTON BEACH POLICE OFFICERS' PENSION FUND SPECIAL MEETING HELD ON TUESDAY, MARCH 17, 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 Scott Caudell Joe DeGiulio John Huntington ABSENT: Jason Llopis, Secretary I. CALL TO ORDER — Toby Athol, Chair Chair Athol called the meeting to order at 10:31 a.m. II. AGENDA APPROVAL Ms. LaDue added GRS invoice for $4,86 2 to VII., New Business, as A.3. There was consensus to add the invoice to the agenda. III. APPROVAL OF MINUTES — Special Meeting, September 9, 2014 Quarterly Meeting, February 10, 2015 Motion Mr. Caudell moved to approve the minutes. Mr. Huntington seconded the motion that unanimously passed. IV. FINANCIAL REPORTS: A) Davidson, Jamieson & Cristini, PL - Richard Cristini and Jeanine Bittinger — 1) Audit — Financial Statement for PYE 9 -30 -2015 Richard Cristini, Davidson, Jamieson & Cristini, advised Ms. Bittinger became a partner in the firm. The members congratulated her. Meeting Minutes Special Police Pension Meeting Boynton Beach, FL March 17, 2015 Mr. Cristini explained the report was the independent auditor report. They cover letter indicated that in all material respects, the assets, liabilities, revenues and expenses in the Plan were fairly stated, there were no control or significant deficiencies or material weakness. When they audit, they do so with regulations, policy and good business practices in mind. They dealt with Ms. LaDue and the City and found no exceptions in those areas. The Board was doing what they were supposed to and was following policies. The total investments increased from $68 million to $75 million and DROP loans increased. Broker dealer receivables were reported on a trade date basis, not sale date basis. Net position, restricted for pensions increased, going from $69 million in 2013 to $76 million in 2014 and it was a good year. Statement of changes reflected employer contributions were about the same. Plan member contributions went down, there were fewer buybacks this year than last, and less roll overs to DROP. The total contributions went from $5.3 million to $5.1 million. The Intergovernmental State Excise Chapter 185 taxes increased. Mr. Cristini explained most of the 185 Plans he audited were flat or went down. Investment income were composed of gains on sales and increases in market value over cost from year to year. Combined, the monies increased from $6.6 million to $7.6 million; less the Plan expenses, the Fund increased from $6.1 million to $7.1 million. Total additions to the Plan were $12,093,000 last year and $12,899,000 this year. Age in service showed retirees and disabilities were up slightly and beneficiaries were the same. DROP payments increased about $500,000 and refunds were down. Administrative expenses were up slightly. Total Plan deductions went from $4.4 million versus $5.6 million. The net increase in net position was $7.5 million versus $7.2 million which was an excellent result for the Plan. Mr. Cristini commented during his audit, there was nothing that jumped out at him. This Plan was highly ranked, in terms of financial results. In response to a question if the DROP payments have adverse effects on the solvency of the Plan, Mr. Cristini explained the payments were already included in the numbers and were earmarked for retirees. Even though that amount doubled, it was not a negative factor and it does not affect the actuarial evaluation. Mr. Cristini reviewed the Summary of Significant Accounting Policies and noted the new accounting pronoucements indicate an accounting standard change, and the report was prepared using the GASB 67 standards. He commented GASB 68 would be in effect next year. Mr. Cristini explained what GASB does and their authority. Florida Statute says the Auditor General determines the accounting and audit standards for governmental entities in the State, and Florida's Auditor General requires the Board follow GASB. Governments have different accounting standards and the requirement mandates the report has to be included with the City's CAFR. The Plan's investment asset allocation was reviewed as contained in the Investment Policy Statement. The rate of return for the Plan, net of pension Plan expenses were 2 L Meeting Minutes Special Police Pension Meeting Boynton. Beach, FL March 17, 2015 11% for the year. There will be a table in the back of the report and the figure that will be built into a 10 -year table. Mr. Cristini advised 11% was very good and so were the target allocation percentages. The Plan designations identify monies belonging to specific members for DROP. The funds were earmarked. The total designated position was $10.7 million, but the funds were in the total Plan. The undesignated net position of the Plan was $65.5 million. Discussion of DROP loans took place. Some plans do not permit DROP loans and others that do result in the Plan acting like a bank. They are required to show the minimum annual payments which, in the next five years, would be paid off according to a schedule. The DROP loans have to be paid back within a five -year period and the payments are deducted from the pension benefit checks. The Boynton Plan does not permit DROP loan repayments to be deducted from member DROP account balances. The net pension liability for the City was reviewed. Mr. Cristini explained in some cases, the total pension liability was less than the Plan's fiduciary net position, so there was no liability. There was a pension asset. This was the figure used in the City's CAFR starting next year. Mr. Cristini clarified the actuarial assumptions have an inflation rate of 4 %. The rate of return of 7.75% includes inflation. Mr. Huntington commented the Florida League of Cities focuses on this as the number and uses it as the basis for why governments were going broke. He inquired how the number compared to other Plans. Mr. Cristini responded it was a normal percentage. Pete Strong, Plan Actuary, commented it was slightly less than 50 %. The average was in the mid to upper 70s and it had improved over the last three years. A question was posed if the Board had to figure out how to increase the number or if it was the manager's responsibility. Mr. Cristini explained it starts with policy and reasonable accounting assumptions. Discussion about other plans ensued. Mr. Strong explained in a few years, a review of the last 30 -year period would show ups and downs and, on average, an 8.5% rate of return. The long -term rate of return of what was anticipated without inflation was reviewed. These figures were purely a disclosure required by GASB and meant virtually nothing. This was the one area with the most misunderstanding, and it had nothing to do with the reality of the Plan. Mr. Cristini explained all the formats used for the schedule of funding progress were gone. The actuarial calculations showed the Plan Fiduciary Net Position was $76 million. The net change in fiduciary net position was $7 million, and the Net Pension Liability was $35,501,006. This was just market value not smoothing. With respect to employee payroll, GASB indicated there were elements included in compensation paid to active employees in which contributions to a pension plan are based. If contributions are calculated on base pay, including overtime, GASB indicated that the definitions of 3 Meeting Minutes Special Police Pension Meeting Boynton Beach, FL March 17, 2015 covered employee payroll are different in GASB 25 and GASB 67. Chair Athol explained presently, everything they earned was pensionable, except for the overtime hours over 300. They were currently negotiating the detail pay being excluded from remuneration and advised when that occurred, they would notify Mr. Strong. The notes to Schedule of Contributions and the methods and assumptions were included. The investment and administrative expenses were under 1% in both categories, which was good. Mr. Strong pointed out the investment expenses were slightly above average. They normally see 50 to 55 basis points and 75 basis points was slightly higher compared to other plans. Chair Athol noted vesting is done at five years. Page 20, Item 9, states contributions would be refunded to participants who terminate with Tess than 10 years and Mr. Cristini advised a correction would be made, Mr. Cristini also explained GASB 72 called for fair value measurement — how the Board should measure criteria. 2) Annual 2014 State Report Ms. Bittinger advised they sent a letter regarding the GASB 67 rules required more time for them to prepare the audit. She explained there would be an extra bill for just this year to report changes for the new standards. Now that the work was completed, they requested approval for just this year for GASB 67 only of $3,000. The Board had previously discussed this, but they did not know the amount of the additional work. Athol thought they had approved the expense g y pp ense within a certain range. p Motion Mr. Caudell moved to pay the additional $3,000. Mr. Huntington seconded the motion that unanimously passed. 3) Renewal contract — Ms. Bittinger explained this year was the last year in their three -year contract. A proposal for another three -year contract was included. The fee schedule was an exhibit in the backup. For the year ending September 30, 2015, the amount would be $11,500. For 2016, the amount was $12,500, and $13,500 for 2017. The preparation of the annual report was for $2,000. There will be no additional fees for the GASB 67 standards. Chair Athol explained Attorney Jensen had already reviewed the document and advised it was okay to approve. Motion Mr. Caudell moved to approve. Mr. DeGiulio seconded the motion that unanimously passed. B) Gabriel, Roeder, Smith & Co — Pete Strong, 4 Meeting Minutes Special Police Pension Meeting Boynton Beach, FL March 17, 2015 1) Actuarial Valuation Report 10 -01 -2014 Mr. Strong reviewed the summary of the Valuation Report and the Annual Required Contributions (ARC). He anticipated the next few years would be good and in the black as bad years dropped off from smoothing. Gains would offset the effect of the assumed rate of return. Discussion followed about salaries not increasing. The percent of covered payroll was based on what the reported payroll was. Chair Athol asked how accurate the projections were, and Mr. Strong responded it was usually to within 10 %. The market value of gains would help the Board down the road. He reviewed the revisions in the actuarial assumptions and methods. Gains and losses are phased in at 20 %. This year, they were phased in at 80% and last year was 60/40. The 20% phase in caused an increase in the contribution rate of 1.22 %. There was one more year of phasing in 1.22% and that would end the phase in of the new mortality and termination rates. (Mr. Caudell left the meeting the 11:31 a.m.) There was a lot of pressure to lower the assumed rate. An issue with this Plan was with its investment load at 75 basis points translated to an 8.5% gross return. The forecast was too high, even with an aggressive asset allocation. The best was 7% or lower. There was a net actuarial gain this year. This was the third year in a row there was a positive experience. It had a net return on the market value of assets between 10% and 11%, but the money weighted return used a balanced cash flow approach. The best experienced gain was from salary increases being less than expected which averaged 1% against the long -term expectation of 5.8 %. The funded ratio was different this year than what was in the GASB 67 report, which was market value and gross value. Mr. Strong explained what was used in the actuarial report. On a smooth actuarial basis, the funded ratio was 62.3 %, up from 59.1% from last year. The market value was 65.7% up from 49.2 %. Mr. Strong discussed the Plan amortization on the unfunded liability using a percentage of the payroll growth assumption. The Statute prohibits using a payroll increase assumption above the 10 -year historical average. The last six or seven years, payroll was flat. Looking ahead, the 10 -year average will come down unless payroll increased. He reviewed the covered annual payroll. Unless payroll increases in 2017 and 2018, the 10 -year average will go down. Next year was anticipated to be less than 4 %, and the year after that, it could be 2 %. That will put upward pressure on the amortization payment. Mr. Strong reviewed the unfunded liabilities and the calculations. The Plan had three years in a row of experienced gains starting in 2012, which was good, but on the heels of 11 years in a row of losses. The funded ratio was 62.3 %. The Plan was at the highest funded ratio since before the 2008/2009 collapse. 5 Meeting Minutes Special Police Pension Meeting Boynton Beach, FL March 17, 2015 Mr. Strong explained the pending gains in the actuarial value of assets. Each year, they review the total market investment returns and they review what they assumed they would have been. The net difference was almost $2 million, which is phased in over five years. He explained they have one more negative period to recognize. The investment earnings and contributions are the two sources of income. Motion Mr. DeGiulio moved to approve the Report. Mr. Caudell seconded the motion that unanimously passed. V. CORRESPONDENCE: 1) Russell Account Services Email 3 -5 -2015 — RIFL Memorandum & PPM Supplement Ms. LaDue confirmed this was received. VI. OLD BUSINESS: A) Updated Board of Trustee listing 3 -10 -2015 This item was information only. It was noted several Trustees were longstanding members. Chair Henderson, from the Firefighters' Plan, has served on the Board for 20 years. Mr. Strong explained there was an outlandish bill that would limit board service to eight years; however, it only pertained to participants of the plan. If one was not a current active member of the plan and was a City appointee, they could serve. SB 242 would require all municipal plans to use the same mortality as FRS. FRS uses a version of the RP 2000 Table, and a more conservative mortality projection scale, but they use blue collar adjustments for special risk, which offset each other and did not result in much of a difference in liabilities for the plan. The immediate effect would be minimal. If FRS changed tables, the local plans would have to change as well. B) Trustee Liability Coverage Renewal effective 4 -15 -2015 - Ms. LaDue explained she was obtaining three or four quotes, but the premium was due April 14 ". She needed Chair Athol or Attorney Jensen to review the Policy so she could pay the bill. Chair Athol commented they never had a claim before, and now they did from the Epstein case. He suggested the quotes be forwarded to him and Attorney Jensen. The current coverage was for $2 million with a $25,000 deductible. It was noted the Board had $1 million in coverage for 10 years. Fire also has $1 million. A suggestion was made it may be practical to reduce the coverage to the $1 million. VII. NEW BUSINESS: A. Invoices for review and approval: 6 Meeting Minutes Special Police Pension Meeting Boynton Beach, FL March 17, 2015 1. Bonni Jensen PA — Service January/February 2015- $2,263.50 2. Burgess Chambers & Assoc — First Quarter 2015 Fee - $6,250 3. GRS Invoice - $4,862 Motion Mr. Huntington moved to pay the invoices. Mr. DeGuilio seconded the motion that unanimously passed. B) Attorney Report - Bonni Jensen — N/A None. VIII. PENSION ADMINISTRATOR'S REPORT — N/A None. IX PUBLIC COMMENTS: None. X. ADJOURNMENT: There being no further business to discuss, Chair Athol properly adjourned the meeting at 12:02 p.m. 0 Catherine Cherry Minutes Specialist 040815 7 i i f ! I I f f I �I BCA Burgess Chambers & Associates, Inc. Institutional Investment Advisors www.burgesschambers.com BOYNTON BEACH POLICE PENSION FUND INVESTMENT PERFORMANCE PERIOD ENDING MARCH 31, 2015 The following investment information was prepared by BCA, relying upon data from statements provided by the plan custodian and /or investment manager(s). 13CA BCA reviews transactions provided by the custodian and uses reasonable care to ensure the accuracy of the data contained herein. However, BCA cannot guarantee the accuracy of the custodian's statement. Boynton Beach Police Pension Fund BCA Market Perspective © Impact of a Strong U.S. Dollar April 2015 The U.S. dollar has appreciated 25% against the euro since early 2014 and 45% to the yen since early 2012. The last time the dollar began this magnitude of strengthening in such a short period of time was during the early 1980s when the Federal Reserve, under Paul Volcker, began an aggressive anti - inflation policy of raising borrowing costs. Is a strengthening dollar good or bad policy? The answer depends on your perspective. ®USO / EUR ®USD/ JPY 0.9226 120.31 0. 0500 ..... ... 130.00 __..._ 0.0000 120. DO 0.8500 110.00 0.8000 100.00 0.7500 00 DO 0.7000 0.8500 80.00 70.00 January 2008 January 2010 January 2012 January 2014 January 2008 January 2010 January 2012 January 2014 The strong dollar means that U.S. imports cost less to consumers, businesses and manufacturers. Oil, cars, trucks, tractors, clothing, electronics, and durable goods cost less. There is a wealth effect — which encourages more spending and consumption. This cycle leads to a worldwide glut of U.S dollars that eventually leads to its weakening. U.S. multinational corporations have already reported the strong dollar hurting sales. German export manufacturers reported strong sales growth in February and March. Why would the Federal Reserve (FOMC) elect to raise policy interest rates during the summer or fall of 2015? This measure of tightening would risk moving the U.S. economy into a slower growth profile and perhaps a recession in 2016. Accordingly, it appears more likely, given the above, that the Fed will delay any meaningful policy to raise interest rates. Disadvantages of a Strong Dollar Advantages of a Strong Dollar • Decreases U.S. exports — cuts revenues and market share • Lower import prices contribute to lower inflation • U.S. firms can't raise local prices • Consumer wealth effect • Fewer foreign tourists visit the U.S. • Cost to travel abroad decreases • Less direct investment by foreign investors • Foreign ownership (and influence) of U.S. assets decreases • Fewer foreign companies outsource facilities to the U.S. • U.S. manufacturers move offshore (again) Currency source: www.oanda.com Disclosure: All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. Content should not be regarded as a complete analysis of the subjects discussed or as personalized investment advice. All investment strategies have the potential for profit or loss. References to market performance in publications do not represent the returns achieved by Burgess Chambers & Associates or any of its advisory clients. 1 Boynton Beach Police Pension Fund Total Fund Investment Summary March 31 , 2015 Currency source: www.oanda.com Disclosure: All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. Content should not be regarded as a complete analysis of the slects discussed or as personalized investment advice. All investment strategies have the potential for profit or loss. References to market performance in publications do not represent the returns achieved by Burgess Chambers ssociates or any of its advisory clients. 1 Boynton Beach Police Pension Fund Total Fund Investment Summary March 31, 2015 • For the quarter, the Fund earned +2.4% gross (or +2.2% net; $1.8 million), which performed above the Policy Benchmark ( +1.8 %). The best performing asset category was the RTC Multi Asset Core Fund ( +3.5 %). • For the Fiscal year, the Fund earned $4.1 million or +5.5 gross ( +5.1% net). This exceeded the Policy Benchmark by approximately 1.6 %. • For the year, the Fund earned $6.3 million or +9.1% gross ( +8.3% net), exceeding the Policy benchmark ( +7.2 %) and ranking in the top 21st percentile. • The best performing asset category for the year was the RTC Real Estate Equity Fund ( +14.3 %). • For the three -year period, the Fund earned $18.5 million or +9.7% ( +8.9% net), which was above the Policy Benchmark ( +8.8 %) and above the actuarial investment return assumption rate ( +7.75 %). • For the five -year period, the Fund earned $27.6 million or +9.7% ( +8.9% net), which was in line with the Policy Benchmark ( +9.2 %) and above the actuarial investment return assumption rate ( +7.75 %). • An additional $1.4 million was added to the Real Estate allocation on March 31, 2015. BC A, ,� Boynton Beach Police Pension Fund Total Fund Investment Performance March 31, 2015 Dollars Quarter One Year Beginning Market Value 81,540,326 75,731,397 Ending Market Value 82,350,304 82,350,304 Net Contributions - 976,166 +282,030 Investment Gain/(Loss) +1,786,144 +6,336,877 Investment Return, net +2.2% +8.3% Policy Benchmark +1.8% +7.2% Value Added (pts.) +0.4 +1.1 Fiscal Year: October 1st — September 30th 3 BCA Boynton Beach Police Pension Fund Total Fund Investment Policy Review March 31, 2015 3 BC,, Boynton Beach Police Pension Fund Total Fund Investment Policy Review March 31, 2015 Yes No The total Fund's annualized three -year performance achieved the Policy Benchmark. XI n The total Fund's annualized three -year performance ranked in the top 40th percentile of the universe. X The total Fund's annualized five -year performance achieved the Policy Benchmark. The total Fund's annualized five -year performance ranked in the top 40th percentile of the universe. ❑ 7 The total Fund's annualized three -year performance achieved the +7.75% actuarial assumption rate. ® ❑ The total Fund's annualized five -year performance achieved the +7.75% actuarial assumption rate. ® ❑ Multi Mgr Bonds annualized three -year performance achieved the fixed income benchmark. Multi Mgr Bonds annualized three -year performance ranked in the top 40th percentile of the universe. Multi Mgr Bonds annualized five -year performance achieved the fixed income benchmark. Multi Mgr Bonds annualized five -year performance ranked in the top 40th percentile of the universe. Real Estate Equity's annualized three -year performance achieved the real estate benchmark. ® ❑ Real Estate Equity's annualized three -year performance ranked in the top 40th percentile of the universe. ❑ Real Estate Equity's annualized five -year performance achieved the real estate benchmark. ® ❑ Real Estate Equity's annualized five -year performance ranked in the top 40th percentile of the universe. ❑ PFIA Compliant ® ❑ Investments in equity securities were 58.2% which did not exceed 70% of Fund's assets at market value. ® ❑ Foreign equity investments were 18.8% (at market) and did not exceed the 25% of the total Fund's assets at market. ® ❑ Asset allocation among fixed income was 29.8% (at market) within the 30% minimum limitation. ❑ X Asset allocation among alternatives was 11.5% (at market) within the 20% maximum limitation. X BC A, k Boynton Beach Police Pension Fund Total Fund March 31, 2015 Actual vs. Target Asset Allocation 1.3% 7.1% 0.5% 2.0% 5.0% 2.0% 1. n I 2.0% 1 0 2.0% , 2.0% 1.2% Wa a . ,; • Global Equities ' • Global Equities WI • Fixed Income • Fixed Income ■Global REIT ■Global REIT ■ Global Listed Infrastructure ■Global Listed Infrastructure • Commodities 55.0% • Commodities 29.8% 58.2% • Private Real estate • Private Real estate 32.0% • Cash ■ Cash MV($) Current Target Difference Global Equities $ 47,889,061 58.2% 55.0% 3.2% Fixed Income $ 24,541,331 29.8% 32.0% -2.2% Global REIT $ 971,388 1.2% 2.0% -0.8% Global Listed InfrastructL $ 1,607,951 2.0% 2.0% 0.0% Commodities $ 1,078,327 1.3% 2.0% -0.7% Private Real estate $ 5,852,120 7.1% 5.0% 2.1% Cash $ 410,127 0.5% 2.0% -1.5% Total 82,350,304 100.0% 100.0% 0.0% *Total International = 18.84% 5 BCA Boynton Beach Police Pension Fund Total Fund Asset Allocation -\ 5 ni C 1 Boynton Beach Police Pension Fund Total Fund Asset Allocation TOTAL MARKET VALUE AS OF MARCH 31, 2015 $ 82,350,304 RTC CASH 0.5% RTC RUSSELL LG CAP DEFENSIVE RTC MULTI MGR EQ FD 25.9% BOND FUND 27.5% RTC REAL ESTATE EQUITY FD 7.1% TC MULTI ASSET CORE FD 39.0% VALUE PERCENT RTC MULTI ASSET CORE FD 32,141,704 39.03 RTC MULTI MGR BOND FUND 22,623,077 27.47 RTC RUSSELL LG CAP DEFENSIVE EQ FD 21,323,276 25.89 RTC REAL ESTATE EQUITY FD 5,852,120 7.11 RTC CASH 410,127 0.50 I;( \ 6 Boynton Beach Police Pension Fund Total Fund Asset Distribution March 31, 2015 65.00 60.00 55.00 rt 50.00 45.00 a 8 40.00 a. 0 35.00 1.1! a V 30.00 d 25.00 20.00 15.00 10.00 5.00 0.00 - - ■ ill %•..... ; ■ - - - QUARTER TO DATE 1 YEAR 2 YEARS 3 YEARS 4 YEARS 5 YEARS • EQUITY 64.92 64.64 66.16 55.66 57.23 61.75 FIXED INCOME 27.47 29.67 29.31 34.71 35.10 34.73 CASH 0.50 0.46 0.38 0.50 0.52 0.59 ALTERNATIVE 7.11 5.22 4.15 9.13 7.15 2.93 L__ __ 7 J Boynton Beach Police Pension Fund Total Fund March 31, 2015 C:rncc of FPPC 13CA 7 l _ Boynton Beach Police Pension Fund Total Fund March 31, 2015 Gross of Fees QTD FYTD 1 Year 2 Year 3 Year 5 Year Name Market Values ROR ROR ROR ROR ROR ROR Equity RTC Multi Asset Core Fd 32,141,704 3.5% 5.9% 8.0% 10.6% N/A N/A RTC Russell Lg Cap Defensive Eq Fd 21,323,276 1.1% 6.7% 12.4% N/A N/A N/A Total Equity 53,464,981 2.5% 6.3% 9.8% 12.1% 11.2% 10.8% Fixed Income RTC Multi Mgr Bond Fund 22,623,077 1.9% 3.6% 6.7% 3.6% 4.5% 5.8% Total Fixed Income 22,623,077 1.9% 3.6% 6.7% 3.6% 4.5% 5.8% Cash RTC Cash 410,127 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% Alternative RTC Real Estate Equity Fd 5,852,120 3.4% 7.3% 14.3% 14.2% 13.2% 15.2% Total Alternative 5,852,120 3.4% 7.3% 14.3% 14.2% 13.5% 13.5% TOTAL: (1, 2, 3, 4) 82,350,304 2.4% 5.5% 9.1% 9.7% 9.7% 9.7% Policy Benchmark 1.8% 3.9% 7.2% 8.0% 8.8% 9.2% RTC Multi -Asset Core 2.7% 4.2% 6.6% 9.8% N/A N/A MSCI ACWI NR 2.3% 2.7% 5.4% 10.8% 10.7% 9.0% SP GI Infrastructure -0.9% 0.0% 3.9% N/A N/A N/A DJUBS Commodities -5.9% -17.3% -27.0% -15.5% -11.5% -5.7% Russell 1000 Index 1.6% 6.6% 12.7% 17.5% 16.4% 14.7% Fixed Income Bnch 1.6% 3.4% 5.7% 2.8% 3.1% 4.4% ML 3M TBill 0.0% 0.0% 0.0% 0.0% 0.1% 0.1% Real Estate Bnch 3.4% 6.6% 13.3% 13.3% 12.5% 14.4% NFI ODCE EQ 3.4% 6.6% 13.3% 13.3% 12.5% 14.4% NAREIT 4.0% 17.4% 22.7% 12.5% 14.0% 15.6% 1 Policy Benchmark (IPS hybrid benchmark objective): March '14 30% MSCI ACWI + 25% Russell 1000 + 32% BC Aggregate + 2% NAREIT + 2% S &P Global Infrastructure Index + 5% NFI ODCE EQ + 2% DJ UBS Commodities + 2% ML 3M T- Bills; prior from May'13 48% MSCI ACWI + 35% BC Aggregate + 5% NAREIT + 5% NFI ODCE EQ + 5% DJ UBS Commodities + 2% ML 3M T- Bills; Mar'12 is 34% Russell 1000 + 11% Russell Mid -Cap + 11% MSCI Net EAFE + 4% MSCI Net EM + 5% FTSE /NAREIT + 30% BC Aggregate + 5% BC TIPS; from Sep'09 was 34% Russell 1000 + 11% Russell Mid -Cap+ 11% MSCI Net EAFE + 4% MSCI Net EM + 5% Wilshire REIT + 30% BC Aggregate + 5% BC TIPS; from May'05 was 34% Russell 1000 + 16% Russell Mid -Cap+ 10% MSCI Net EAFE +5% Wilshire REIT + 30% LB Interm Aggregate + 5% Lehman Interm TIPS; from Jul'02 was 60% S &P 500 + 35 LB Gov't/Credit. 2 The Multi -Asset Core Composite Benchmark is comprised of 75.0% Russell World Cap 50% Hedged Net Index / 7.5% Dow Jones UBS Commodity Index / 7.5% FTSE EPRA/NAREIT Developed Real Estate Index (Net) / 7.0% Barclays U.S. Aggregate Bond Index / 3.0% Barclays U.S. 1 -3 Month Treasury Bill Index. This benchmark is appropriate for evaluating the Russell Multi -Asset Core Fund over a 3 to 5 year horizon. 3 Fixed Income Bnch (IPS fixed income hybrid) Sep'09 is 100% BC Aggregate; from May05 was 100% LB Intermediate Aggregate; from Jun'02 was 100% Lehman Gov't/Credit. 4 Real Estate Bnch: from Sept'09 is 100% NFI ODCE EQ; prior was 100% NCREIF. 13(.A 8 Boynton Beach Police Pension Fund Total Fund Fiscal Year Rates of Return (September 30) September 30, 2004 Through March 31, 2015 20.00- 18.00 16.00 14.00 12.00- 10.00 8.00- 6.00 4.00 2.00- F 0.01 ° -2.00 - g -4.00- -6.00 -8.00- -10.00 -12.00 - 14.00- -16.00 - 18.00 FYTD 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 TF 5.53 10.99 10.28 18.47 0.29 11.73 0.25 -17.78 14.22 7.85 11.83 9 Boynton Beach Police Officers' Retirement Plan Total Fund r>, t. '2 1 7n1 A BC:A 9 Boynton Beach Police Officers' Retirement Plan Total Fund December 31, 2014 Performance Rankings December 312014 Qtr 1 YR 2 YRS 3 YRS 5 YRS Boynton Beach Police Return 3.00% 8.70% 10.90% 11.90% 10.10% Boynton Beach Police Rank 14th 4th 78th 55th 29th BCA. Note: Returns above are gross of fees. For illustrative purposes only. 10 *BCA Public Pension Universe contains of 51 clients. Boynton Beach Police Pension Fund Quartile Ranking Total Fund Versus BNY Mellon Public Funds Universe March 31, 2010 Through March 31, 2015 17.00 - 16.00 - 15.00 - 14.00 13.00- 12.00 F 11.00 10.00 • 9.00- • • 0 8.00 _ • p 7.00 H 6.00 g 5.00 4.00 3.00 2.00- -��. * 1.00 ! 0.00- -1.00/ LATEST OUARTER ONE YEAR TWO YEARS THREE YEARS FIVE YEARS HIGHEST VALUE 4.50 15.17 16.14 14.08 11.60 FIRST QUARTILE 2.64 7.88 10.65 10.77 10.14 MEDIAN VALUE 2.32 6.88 9.43 9.78 9.68 THIRD QUARTILE 2.02 5.65 8.48 8.84 8.76 LOWEST VALUE 0.00 2.47 4.13 4.68 6.12 MEAN 2.31 7.34 9.68 9.68 9.35 LATEST QUARTER ONE YEAR TWO YEARS THREE YEARS FIVE YEARS RETURN RANK RETURN RANK RETURN RANK RETURN RANK RETURN RANK A TF 2.43 42 9.12 21 9.67 47 9.72 52 9.69 47 • POLICY BENCHMARK 1.79 78 7.24 42 8.02 78 8.85 73 9.23 63 i 11 ■- - Boynton Beach Police Pension Fund Total Fund Growth of a Dollar Analysis iii 11 Boynton Beach Police Pension Fund Total Fund Growth of a Dollar Analysis March 31, 2010 Through March 31, 2015 170.00 160.00 158.77 155.52 150.00 140.00- N 130.00 - O A 120.00 1 -- 110.00 - A 100.0 1 90 3 /22010 3/2011 3/2012 3/2013 3/2014 3/2015 LATEST QUARTER ONE YEAR THREE YEARS FIVE YEARS TOTAL FUND 2.43 9.12 9.72 9.69 POLICY BENCHMARK 1.79 7.24 8.85 9.23 11( 12 Boynton Beach Police Pension Fund Total Fund Capital Market Line Period Ending March 31, 2015 3 -Year Risk /Reward 5 -Year Risk /Reward / .00 20 MORE RETURN MORE RETURN 18.00 MORE RETURN MORE RETURN 19.00 LESS RISK MORE RISK 17.00 LESS RISK MORE RISK 18.00- • 16.00- • 17.00 15.00- 16.00- Li • 0 14.00- 15.00 14.00 13.00 13.00 • 12.00 12.00 11.00 0 11.00- 0 10.00' 10.00- 9.00 9.00 g 8.00 0 8. a 7.00- • N 6.00 N 6.00 5.00 5.00 • 4.00 4.00 3.00- 3.00 0 2.00 2 . 0 ° - 1.00 1.00 0.00- 0.00- I - 1.00 LESS RETURN LESS RETURN -1.00 LESS RETURN LESS RETURN - 2.00 LESS RISK MORE RISK 2.00 LESS RISK MORE RISK , . -2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 -2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 VARIABILITY OF RETURNS (RISK) VARIABILITY OF RETURNS (RISK) RETURN STD DEV BETA ALPHA R- SQUARED RETURN STD DEV BETA ALPHA R- SQUARED ♦ TOTAL FUND 9.72 5.72 0.96 1.16 95.64 ♦ TOTAL FUND 9.69 8.64 1.00 0.41 98.21 • POLICY BENCHMARK 8.85 5.84 1.00 0.00 100.00 • POLICY BENCHMARK 9.23 8.55 1.00 0.00 100.00 ❑ RUSSELL 1000 INDEX 16.45 9.49 1.00 0.00 100.00 ❑ RUSSELL 1000 INDEX 14.73 13.09 1.00 0.00 100.00 ♦ RUSSELL MIDCAP 18.10 10.15 1.00 0.00 100.00 • RUSSELL MIDCAP 16.16 14.48 1.00 0.00 100.00 • RUSSELL 2000 16.27 13.22 1.00 0.00 100.00 • RUSSELL 2000 14.57 17.61 1.00 0.00 100.00 ♦ ML CNV X144A ALLQUAL 13.49 7.29 1.00 0.00 100.00 ♦ ML CNV X144A ALLQUAL 10.77 9.39 1.00 0.00 100.00 • MSCI GROSS EAFE 9.52 12.82 1.00 0.00 100.00 • MSCI GROSS EAFE 6.64 16.40 1.00 0.00 100.00 ■ BC AGGREGATE 3.10 2.86 1.00 0.00 100.00 ■ BC AGGREGATE 4.41 2.78 1.00 0.00 100.00 Il( \ 13 --- -- - -a.. <. Boynton Beach Police Pension Fund Total Fund Performance in Rising and Declining Markets ■ BC AGGREGATE 1 3.10 1 2.86 I 1.00 I 0.00 I 100.00 I 13 • BC AGGREGATE I 4.41 1 2.78 1 1.00 I 0.00 I 100.00 Boynton Beach Police Pension Fund Total Fund Performance in Rising and Declining Markets March 31, 2010 Through March 31, 2015 UP MARKET PERFORMANCE DOWN MARKET PERFORMANCE 30.00 0.00 ' 28.00 -1.00 26.00 -2.00- 00- 24.00 22.00 -5-3-4.00- . .00- 20.01 0 6.oa 18.0 - 7.08.00 0- 16.00 -9.00- w0 14.00 - 1 0 0 d 12 H -12.00- 04 10.00 g -13.00- 8.00 -14.00- - 15.00- 6.00 4.00 -16.00- -17.00- -18.00- 2.0 1 -19.00- 0.01 ONE YEAR THREE YEARS F VE YEARS ONE YEAR THREE YEARS FIVE YEARS TOTAL FUND 12.44 21.79 29.34 TOTAL FUND 2.96 -12.40 -19.24 POLICY BENCHMARK 12.03 21.58 29.05 U POLICY BENCHMARK -4.27 -14.16 -19.85 DIFFERENCE 0.42 0.21 0.30 DIFFERENCE 1.31 1.76 0.61 RATIO 1.03 1.01 1.01 RATIO 0.69 0.88 0.97 UP PERIODS 7 25 39 DOWN PERIODS 5 11 21 t 4 14 Boynton Beach Police Pension Fund RTC Multi Asset Core Fd Performance Profile Period Ending March 31, 2015 STD SHARPE 109.00 PERIOD RETURN BETA ALPHA DEV RATIO 108.00 1 - 708,03 ONE YEAR 8.03 1.02 1.19 6.68 1.20 107.00 1 1 106.00 1 1 - - - - 105.00 r 1 ONE 104.00- 1 J O 1 YEAR TOTAL FUND � 8.03 ° 103.00- MULTI -ASSET INDEX 2.70 6.63 102.00 1 EXCESS 0.80 1.40 101.00- - r , RISKLESS INDEX 0.00 0.03 1 1 REAL ROR 3.00 8.25 100.0 1 1 9 9 10 014 6/2014 9/2014 12/2014 3/2015 DOWN MARKET PERFORMANCE UP MARKET PERFORMANCE 0.00' 15.00 14.00 - 1.00 13.0 12.00 Lriit X -2.00 X 11.00 p 10.00 9.00 -3.00 M 8.00 p 6. 7.00 -4.00 N ` 6.00 a y 5.00 -5.00 4.00 3.00 -6.00 2.00 1.00 ---> 0.00 _ QTD ONE YEAR QTD ONE YEAR . TOTAL FUND -1.03 -6.14 TOTAL FUND 4.58 15.10 MULTI -ASSET INDEX -1.44 -6.64 _ MULTI -ASSET INDEX 4.20 14.21 DIFFERENCE 0.40 0.50 DIFFERENCE 0.38 0.89 RATIO 0.72 0.92 RATIO 1.09 1.06 DOWN PERIODS 2 5 UP PERIODS 1 7 15 Boynton Beach Police Pension Fund RTC Russell Lg Cap Defensive Eq Fd Performance Profile DOWN PERIODS 1 2 V 5 UP PERIODS I 1 1 1 7 15 Boynton Beach Police Pension Fund RTC Russell Lg Cap Defensive Eq Fd Performance Profile Period Ending March 31, 2015 STD SHARPE 114.00 PERIOD RETURN BETA ALPHA DEV RATIO 112.44 ONE YEAR 12.44 0.87 1.23 7.78 1.60 //z.00 rro.00- 10000- 1 i I ONE V 106.00- QTD YEAR q TOTAL FUND 1.14 12.44 104.00 RUSSELL 1000 INDEX 1.59 12.73 I I EXCESS -0.45 -0.29 102.00 RISKLESS INDEX 0.00 0.03 T REAL ROR 0.65 12.66 100.0 7 pp 98 3/1014 62014 9/2014 12/2014 3!1015 DOWN MARKET PERFORMANCE UP MARKET PERFORMANCE 0.00 - 22.00 20.00 .1.00 18.00 X -200 X 16.00 -3.00 i 14.00 ow 12.00 p 400 C 10.00 -5.00 g 8.00 It 6.00 i n -6.00 4.00 -7.00 2.00 - ' 0.00' QTD ONE YEAR QTD ONE YEAR TOTAL FUND -3.55 -6.27 TOTAL FUND 4.86 19.97 RUSSELL 1000 INDEX -3.96 -7.38 RUSSELL 1000 INDEX 5.78 21.72 DIFFERENCE 0.41 1.11 DIFFERENCE -0.92 -1.76 RATIO 0.90 0.85 RATIO 0.84 0.92 DOWN PERIODS 2 5 UP PERIODS 1 7 16 i Boynton Beach Police Pension Fund rI RTC Multi Mgr Bond Fund Performance Profile Period Ending March 31, 2015 I STD SHARPE 135.01 PERIOD RETURN BETA ALPHA DEV RATIO 1 1 ■ 132.87 ONE YEAR 6.67 0.97 1.09 2.78 2.39 13o r y - - - - THREE YEARS 4.51 1.03 1.27 3.02 1.47 FIVE YEARS 5.85 0.97 1.49 2.97 1.94 lzs 1 120.00 - - ONE THREE FIVE ! 115.01 1 L J QTD YEAR YEARS YEARS $ � TOTAL FUND 1.95 6.67 4.51 5.85 110.0 , FIXED INCOME BNCH 1.61 5.72 3.10 4.41 EXCESS 0.34 0.95 1.41 1.44 105.0 - RISKLESS INDEX 0.00 0.03 0.07 0.09 REAL ROR 1.42 6.87 3.56 4.14 100. - r P , 078 3/2011 3/2012 312013 3/2011 3/2015 DOWN MARKET PERFORMANCE UP MARKET PERFORMANCE 0.0 -6.00 -7.00 4.00 3.00 2.00 1.00 THREE THREE IN QTD ONE YEAR YEARS FIVE YEARS QTD ONE YEAR YEARS FIVE YEARS TOTAL FUND -0.74 -1.44 -6.82 -6.19 TOTAL FUND 2.71 8.23 10.23 11.02 J FIXED INCOME BNCH -0.94 -1.86 -7.42 -7.02 FIXED INCOME BNCH 2.57 7.72 8.44 9.31 DIFFERENCE 0.20 0.42 0.60 0.83 DIFFERENCE 0.13 0.51 1.79 1.71 RATIO 0.79 0.77 0.92 0.88 RATIO 1.05 1.07 1.21 1.18 DOWN PERIODS 1 3 11 17 UP PERIODS 2 9 25 43 17 Boynton Beach Police Pension Fund RTC Real Estate Equity Fd Performance Profile DIFFERENCE 0.20 0.42 0.60 0.83 DIFFERENCE 0.13 0.51 1.79 1.71 RATIO . 0.79 0.77 0.92 0.88 RATIO 1.05 1.07 1.21 1.18 DOWN PERIODS 1 3 11 17 UP PERIODS 2 9 25 43 17 i l 1°- _ ---,---) k Boynton Beach Police Pension Fund RTC Real Estate Equity Fd Performance Profile Period Ending March 31, 2015 STD SHARPE 203.14 PERIOD RETURN BETA ALPHA DEV RATIO 200.00 ONE YEAR 14.28 1.06 0.10 5.56 2.56 190.00- 7 r THREE YEARS 13.17 1.06 -0.08 5.28 2.48 180.00- i } FIVE YEARS 15.23 1.06 -0.06 6.21 2.44 170.00- 1 i J I 160.00 - ONE THREE FIVE 150.00 QTD YEAR YEARS YEARS 0 140.00 Y r 7 TOTAL FUND 3.45 14.28 13.17 15.23 I REAL ESTATE BNCH 3.40 13.35 12.46 14.35 190.00- i } 4 EXCESS 0.05 0.93 0.71 0.88 120.00 L J RISKLESS INDEX 0.00 0.03 0.07 0.09 110.00- ' REAL ROR 2.95 14.51 12.16 13.39 100.0 7 1 - i 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 DOWN MARKET PERFORMANCE UP MARKET PERFORMANCE 15.11 14.1i 13.11 12 .11 X e 11.11 10.01 9.11 M 0.00' y 19 8.11 O O 7.00 a 6.11 a g 5.00 4.00 3.11 2.00 1.11 i i 0.11 - THREE THREE QTD ONE YEAR YEARS FIVE YEARS QTD ONE YEAR YEARS FIVE YEARS TOTAL FUND N/A N/A N/A N/A • TOTAL FUND 3.45 14.28 13.17 15.23 REAL ESTATE BNCH N/A N/A N/A N/A REAL ESTATE BNCH 3.40 13.35 12.46 14.35 DIFFERENCE N/A N/A N/A N/A DIFFERENCE 0.05 0.93 0.71 0.88 RATIO N/A N/A N/A N/A RATIO 1.01 1.07 1.06 1.06 DOWN PERIODS 0 0 0 0 UP PERIODS 3 12 36 60 18 1 1 1 Boynton Beach Police Pension Fund Glossary of Terms - ACCRUED INTEREST- Bond interest earned since the last interest payment, but not yet received. - ALPHA- A linear regressive constant that measures expected return independent of Beta. -ASSET ALLOCATION - The division of portfolio asset classes in order to achieve an expected investment objective. - BALANCED UNIVERSES - BNY Mellon Public Funds, Endowments & Foundations, Corporate peer groups, and PSN peer groups. -BETA- A measure of portfolio sensitivity (volatility) in relation to the market, based upon past experience. -BOND DURATION- A measure of portfolio sensitivity to interest rate risk. - COMMINGLED FUND - An investment fund which is similar to a mutual fund in that investors are permitted to purchase and redeem units that represent ownership in a pool of securities. - CONVERTIBLE BONDS - Hybrid securities' that offer equity returns during rising equity markets and improved down - market protection. - CORE - An equal weighting in both growth and value stocks. - CORRELATION COEFFICIENT- A measure of how two assets move together. The measure is bounded by +1 and -1; +1 means that the two assets move together positively, while a measure of -1 means that the assets are perfectly negatively correlated. - GROWTH MANAGER- Generally invests in companies that have either experienced above - average growth rates and/or are expected to experience above - average growth rates in the future. Growth portfolios tend to have high price /earnings ratios and generally pay little to no dividends. - INDEXES- Indexes are used as "independent representations of markets" (e.g., S &P 500). - INFORMATION RATIO- Annualized excess return above the benchmark relative to the annualized tracking error. -LARGE CAP- Generally, the term refers to a company that has a market capitalization that exceeds $10 billion. - MANAGER UNIVERSE- A collection of quarterly investment returns from various investment management firms that may be subdivided by style (e.g. growth, value, core). -MID CAP- Generally, the term refers to a company that has a market capitalization between $2 and $10 billion. - NCREIF - A quarterly time series composite total rate of return measure of investment performance of a large pool of individual commercial real estate properties acquired in the private market for investment purposes only. - NCREIF ODCE - Open End Diversified Core Equity index which consists of historical and current returns from 26 open -end commingled funds pursuing c stategy. This index is capitalization weighted, time weighted and gross of fees. 19 Boynton Beach Police Pension Fund Glossary of Terms a - -+ -r — — �' ---- �-�-^- -- -•�•+� �•• y a �. +• +•+ + +�� . �+ a 5 r v. va aaauavauuua cvlluii i61411GC11 GSL'QLG properties acquired in the private market for investment purposes only. - NCREIF ODCE - Open End Diversified Core Equity index which consists of historical and current returns from 26 open -end commingled funds pursuing co BCA stategy. This index is capitalization weighted, time weighted and gross of fees. 19 Boynton Beach Police Pension Fund Glossary of Terms - NET - Investment return accounts only for manager fees. - PROTECTING FLORIDA INVESTMENT ACT (PFIA) - SBA publishes a list of prohibited investments (scruntinized companies). -RATE OF RETURN - The percentage change in the value of an investment in a portfolio over a specified time period, excluding contributions. -RISK MEASURES- Measures of the investment risk level, including beta, credit, duration, standard deviation, and others that are based on current and historical data. -R- SQUARED- Measures how closely portfolio returns and those of the market are correlated, or how much variation in the portfolio returns may be explained by the market. An R2 of 40 means that 40% of the variation in a fund's price changes could be attributed to changes in the market index over the time period. - SHARPE RATIO - The ratio of the rate of return earned above the risk -free rate to the standard deviation of the portfolio. It measures the number of units of return per unit of risk. - SMALL CAP- Generally refers to a company with a market capitilation $300 million to $2 billion. - STANDARD DEVIATION- Measure of the variability (dispersion) of historical returns around the mean. It measures how much exposure to volatility was experienced by the implementation of an investment strategy. - SYSTEMATIC RISK- Measured by beta, it is the risk that cannot be diversified away (market risk). - TIME WEIGHTED (TW) RETURN - A measure of the investments versus the investor. When there are no flows the TW & DOLLAR weighted (DW) returns are the same and vice versa. - TRACKING ERROR- A measure of how closely a manager's performance tracks an index; it is the annualized standard deviation of the differences between the quarterly returns for the manager and the benchmark. - TREYNOR RATIO- A measure of reward per unit of risk. (excess return divided by beta) -UP AND DOWN - MARKET CAPTURE RATIO - Ratio that illustrates how a manager performed relative to the market during rising and declining market periods. -VALUE MANAGER- Generally invests in companies that have low price -to- earnings and price -to -book ratios and/or above - average dividend yields. 20 Boynton Beach Police Pension Fund Disclosure Advisory services are offered through or by Burgess Chambers and Associates, Inc., a registered SEC investment advisor. Performance Reporting: 1.Changes in portfolio valuations due to capital gains or losses, dividends, interest, income and management fees are included in the calculation of returns. All calculations are made in accordance with generally accepted industry standards. 2.Transaction costs, such as commissions, are included in the purchase cost or deducted from the proceeds or sale of a security. Differences in transaction costs may affect comparisons. 3.Individual client returns may vary due to a variety of factors, including differences in investment objectives, asset allocating and timing of investment decisions. 4.BCA does not have discretion or decision making authority over any investments. All decisions regarding investment manager selection and retention, asset allocation, and other investment policies were made by the client. While BCA provides recommendations and choices regarding suitable investments, not all clients take these recommendations or select from the choices offered. 5.Performance reports are generated from information supplied by the client, custodian, and/or investment managers. BCA relies upon the accuracy of this data when preparing reports. 6.The market indexes do not include transaction costs, and an investment in a product similar to the index would have lower performance dependent upon costs, fees, dividend reinvestments, and timing. Benchmarks and indexes are for comparison purposes only, and there is no assurance or guarantee that such performance will be achieved. 7.Performance information prepared by third party sources may differ from that shown by BCA. These differences may be due to different methods of analysis, different time periods being evaluated, different pricing sources for securities, treatment of accrued income, treatment of cash, and different accounting procedures. 8.Certain valuations, such as alternative assets, ETF, and mutual funds, are prepared based on information from third party sources, the accuracy of such information cannot be guaranteed by BCA. Such data may include estimates and maybe subject to revision. 9.BCA has not reviewed the risks of individual security holdings. 10.BCA investment reports are not indicative of future results. 11. For a free copy of Part II (mailed w/i 5 bus. days from request receipt) of Burgess Chambers & Associates, Inc.'s most recent Form ADV which details pertinent business procedures, please contact: 315 East Robinson Street Suite #690, Orlando, Florida 32801, 407 - 644 -0111, info @burgesshcambers.com. BCA 21 goAt 1 Burgess Chambers & Associates, Inc. Institutional Investment Advisors www.burgesschambers.com 315 East Robinson Street, Suite 690, Orlando, Florida 32801 P: 407- 644 -0111 F: 407- 644 -0694 1. • Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.1616 phone Consultants & Actuaries Suite 505 954.525.0083 fax Ft. Lauderdale, FL 33301 -1804 www.gabrielroeder.com March 25, 2015 CONFIDENTIAL Ms. Barbara LaDue Pension Administrator Boynton Police & Fire Pension Funds Renaissance Executive Suites 1500 Gateway Blvd., #220 Boynton Beach, Florida 33426 Re: Boynton Beach Police Retirement System Dear Barbara: You have asked us to verify the retirement benefits for the following participant: SHANE, Chad M. (Vested Termination) Based on the information provided, we have determined that the retirement benefits that have been calculated for the above participant are in accordance with plan provisions. Please note that we did not perform a review of the average monthly salary. The actuarial equivalence assumptions used to compute optional forms were an 8.0% annual rate of return, and the 1983 GA Mortality Table blending 80% male rates and 20% female rates. We welcome your questions and comments. Sincerely yours, 72, e ter N. Strong, FSA Senior Consultant and A• • ary PS /ib Circular 230 Notice: Pursuant to regulations issued by the IRS, to the extent this communication (or any attachment) concerns tax matters, it is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax - related penalties under the Internal Revenue Code or (ii) marketing or recommending to another party any tax- related matter addressed within. Each taxpayer should seek advice based on the individual's circumstances from an independent tax advisor. This communication shall not be construed to provide tax advice, legal advice or investment advice. Barbara Ladue From: Barbara Ladue [Iadueb @bbpdpension.com] Sent: Wednesday, March 04, 2015 10:57 AM To: ' Travis .Robinson @gabrielroeder.com' Cc: 'Pete.Strong @gabrielroeder.com' Subject: Boynton Police - Chad Shane - Deferred Vested Benefit - Verification Attachments: D00O30415.pdf Travis: Attached is the benefit calculation for Chad Shane - For a deferred vested benefit, for your review and verification for the Police Pension Board: Chad Shane, SS# 525 -61 -XXXX, terminated employment 01 -23 -2015, with a deferred vested benefit to begin 02 -01 -2027, 100% Survivor option with monthly benefit of $1,423.21. Thank you. Barb La Due Original Message From: Scanner [ mailto:faxexecsuites @gmail.com] Sent: Wednesday, March 04, 2015 9:58 AM To: BARBARA LADUE Subject: Send data from MFP07580425 03/04/2015 09:58 Scanned from MFP07580425 Date:03/04/2015 09:58 Pages:9 Resolution:200x200 DPI 1 CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL WORKSHEET OF RITIREMENT BENEFITS PAGE 1 February 17, 2015 NAME SHANE, CHAD M # 3387 SSN 525 -61 -xxxx DEPT 21 ADDRESS 11953 MELLOW CT YT CONTR. 835.88 ROYAL PALM BEACH, FL 33'' /I( CONTR(TAX) 33, 990.22 BIRTH 07/19/1981 CONTR(NTX) .00 PEN HIRE 01/22/2007 BALANCE 33,990.22 ADJ HIRE 01/22/2007 RETIRE 01/23/2015 TYPE V LAST SERV 01/23/2015 60 MO EARN 321$62.59 ELIG NORM 01/22/2027 AVG MO EARN 5,364.38 ELIG EARLY 00 /00 /0000 SERV AT TERM 8 0 1 100% VEST 01/22/2012 AGE AT RETIRE 33 6 4 COMMENCE 02/01/2027 COM ANB /DIFF 46 0 LAST EARN 00 /00 /0000 VESTED TDY /RET 100 100 BEN NAME NEVADA JOY SHANE SERV OVERRIDE BEN BDAY 09/10/1981 PAY HIST FLAG IRREGULAR VAC HRS /CD .00 /EH HOURY RATE 25.470 SIC HRS /CD .00 S2 VAC SIC PAYOUT .00 ACCRUE PER .00 EARLY OPTION DEFERRED LAST PAY 20150126- 20150208 TERM -DATE 20150123 QDRO BENEFIT 1,502.54 EARLY REDUCTION FACTOR: .00000 EARLY RETIRE BENEFIT .00 TEN YEAR CERTAIN & LIFE 1,502.54 LIFE ANNUITY FACTOR: 1.(0754 MODIFIED LIFE ANNUITY 1,513.87 100% SURVIVOR FACTOR: .94720 100% SURVIVOR ANNUITY 1,423.21 SURVIVOR BENEFIT 1,423.21 75% SURVIVOR FACTOR: .96160 '5% SURVIVOR ANNUITY 1,444.84 SURVIVOR BENEFIT 1,083.63 50% SURVIVOR FACTOR: .97640 50% SURVIVOR ANNUITY 1,467.08 SURVVOR BENEFIT 733.54 66% JOINT & LAST FACTOR: .98650 66% JOINT & LAST ANNUITY 1,482.26 SURVIVOR BENEFIT 988.16 50% JOINT & LAST FACTOR:1.00750 50% JOINT & LAS ANNUITY 1,513.81 SURVIVOR BENEFIT 756.91 EXCLUSION RA'IIO USING SAFE HARBOR METHOD: ANNUITY JOINT SRV NUMBER OF EXPECTED PAYMENTS 0 0 TAX -FREE PORTION OF MONTHLY BENEFIT .00 .00 DATE WHEN BENEFIT BECG4ES FULLY TAXABLE 00 /00 /0000 00 /00 /0000 Prepared by * indicates manual override CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE 2 Felruary 17, 2015 CHAD M SHANE H I G H Y E A R O N E H I G H Y E A R T W O /' AV PAY EFF WEEKS WAGES / PAY JIFF WEEKS WAGES , 01/26/15 .4 5,018.51 10/21/13 2.0 2,988.65 01/12/15 2.0 2,439.74 10/07/13 2.0 2,701.99 i 12/29/14 2.0 2,190.49 09/23/13 2.0 2,'757.22 12/15/14 2.0 2,292.37 09/09/13 2.0 4,657.36 1 , 12/01/14 2.0 2,307.68 08/26/13 2.0 2,165.03 l 11/17/14 2.0 2,769.96 08/12/13 2.0 2,301.60 11/03/14 2.0 2,185.03 07/29/13 2.0 2,037.68 10/20/14 2.0 2,037.68 07/15/13 2.0 2,037.68 10/06/14 2.0 2,172.30 07/01/13 2.0 2,939.60 09/22/14 2.0 2,037.68 06/17/13 2.0 2,187.95 09/08/14 2.0 3,071.80 06/03/13 2.0 3,110.01 08/25/14 2.0 2,419.74 05/20/13 2.0 3,024.68 08/11/14 2.0 2,057.68 05/06/13 2.0 2,286.92 07/28/14 2.0 2,037.68 04/22/3 2.0 2,037.68 07/14/14 2.0 2,037.68 04/08/13 2.0 2,413.00 06/30/14 2.0 2,299.65 03/25/13 2.0 2,665.53 06/16/14 2.0 2,088.62 03/11/13 20 2,518.30 06/02/14 2.0 2,307.68 02/25/13 2.0 2,190.68 05/19/14 2.0 2,419.74 02/11/13 2.0 2,457.96 05/05/14 2.0 2,229.61 01/28/13 2.0 2184.99 04/21/14 2.0 2,266.92 01/14/13 2.0 2,639.39 04/07/14 2.0 2,(96.78 12/31/12 2.0 2,535.21 03/24/14 2.0 2,037.68 12/17/12 2.0 2,941.85 03/10/14 2.0 2,307.68 12/03/12 2.0 2,197.73 02/24/14 2.0 2,037.68 11/19/12 2.0 3,208.03 02/10/14 2.0 2,439.73 11/05/12 2.0 2,877.79 01/27/14 1.6 1,630.14 00 /00 /00 .0 .00 F TOTAL 52.0 63,237.93 TOTAL 52.0 68,064.51 i CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL WORKSHEET OF RETIREMENT BENFITS PAGE 3 February 17, 2015 CHAD M SHANE H I G H YEAR T H R E E H I G H Y E A R F O U R PAY EFF WEEKS WAGES PAY EFF WEEKS WAGES 05/07/12 2.0 2,246.82 05/09/11 2.0 2,070.37 04/23/12 2.0 2,050.37 04/25/11 2.0 2,050.7 04/09/12 2.0 2,070.37 04/11/11 2.0 2,238.47 03/26/12 2.0 2,050.3' 03/28/11 2.0 2,050.38 03/12/12 2.0 2,070.37 03/14/11 2.0 2,050.37 02/27/12 2.0 2,312.08 02/28/11 2.0 2,184.99 02/13/12 2.0 2,744.44 02/1./11 2.0 2,489.74 01/30/12 2.0 2,719.86 01/31/11 2.0 2,070.38 01/16/12 2.0 2,763.54 01/17/11 2.0 2,489.74 01/02/12 2.0 2,509.74 01/03/11 2.0 2,070.37 12/19/11 2.0 2,929.11 12/20/10 2.0 3,483.11 12/05/11 2.0 2,070.37 12/06/10 2.0 2,070.37 11/21/11 2.0 3,272.96 11/22/10 2.0 2,941.85 11/07/11 2.0 2,509.74 11/08/10 2.0 2,834.49 10/24/11 2.0 ,203.20 10/25/10 2.0 2,176.45 10/10/11 2.0 2,070.37 10/11/10 2.0 2,070.37 09/26/11 2.0 2,050.37 09/27/10 2.0 2,050.37 09/12/11 2.0 3,980.68 09/13/10 2.0 4,269.65 08/29/11 2.0 2,489.74 08/30/10 2.0 2,509.75 08/15/11 2.0 2,247.76 08/16/10 2.0 2,172.63 08/01/11 2.0 2,038.54 08/02/:0 2.0 2,127.69 07/18/11 2.0 2,195.55 07/19/10 2.0 2,050.37 07/04/11 2.0 2,942.74 07/05/10 2.0 2,216.83 06/20/11 2.0 2,658.62 06/21/10 20 2,050.37 06/06/11 2.0 2,070.38 06/07/10 2.0 2,070.37 05/23/11 2.0 2,712.61 05/24/10 2.0 2,489.74 TOTAL 52.0 63,980.70 TOTAL 52.0 6,349.59 r i CITY OF BOYrTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE February 17, 2015 CHAD M SHANE H I G H Y E A R F I V E PAY EFF WEEKS WAGES 05/10/10 2.0 2,356.92 04/26/10 2.0 2,260.50 04/12/10 2.0 2,581.92 03/29/10 2.0 2,230.37 03/15/10 2.0 1,880.56 03/01/10 2.0 2,229.56 02/15/10 2.0 3,269.74 02/01/10 2.0 2,070.37 01/18/10 2.0 2,196.83 01/04/10 2.0 2,070.37 12/21/09 2.0 3,495.84 12/07/09 2.0 2,210.4E 11/23/09 2.0 2,929.11 11/09/09 2.0 2,509.74 10/26/09 2.0 2,386.58 10/12/09 2.0 2,286.87 09/28/09 2.0 2,395.49 09/14/09 2.0 4,343.59 08/31/09 2.0 2,509.74 08/17/09 2.0 2,377.46 08/03/09 2.0 2,095.84 07/20/09 2.0 2,050.37 07/06/09 2.0 ,070.37 06/22/09 2.0 2,489.74 06/08/09 2.0 2,217.47 05/25/09 2.0 2,678.86 05/11/09 1.0 1,035.19 TOTAL 53.0 65,229.86 CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL STATEMENT OF RETIREMENT BENEFITS February 17, 2015 Participant's Name: CHAD M SHANE Social Security #: 525 -61 -xxxx You are eligible for a(n) VESTED Retirement Benefit from the Plan. Your benefit is payable at the beginning of each month com- mencing February 1, 2027. The amount of your monthly benefit depends on the optional form of annuity which you choose. Please indicate the one optional form listed below which you elect to recieve: 1. MODIFIED CASH REFUND ANNUITY :This option provides monthly pay- ments of $ 1513.87 to you as long as you live. If you should die before you have received an amount equal to your own contributions to the Plan, payments will continue to your beneficiary until your own contributions have been used up. 2. TEN YEAR CERTAIN AND LIFE THEREAFTER: This option provides monthly payments of ; 1502.54 to you as long as you live. If you should die before 120 monthly payments have been made, the monthly payment of $ 1502.54 will continue to be made to your beneficiary until a total of 120 monthly payments have been made in all. 3. 100% SURVIVOR ANNUITY: This option provides monthly payments of $ 1423.21 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of 1423.21 for as long as he /she lives. 4. 75% SURVIVOR ANNUITY: This option provides monthly payments of $ 1444.84 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of 1083.63 for as long as he /she lives. 5. 50% SURVIVOR ANNUITY: This option provides monthly payments of $ 1467.08 to you as long as you live. Your beneficiary, if living at I-- the time of your death, will receive monthly payments of 733.54 for as long as he /she lives. 6. 66 -2/3% JOINT AND LAST SURVIVOR ANNUITY This option provides monthly payments of 4 1482.26 to you as long as both you and your bene- ficiary are living. After the death of either you or your beneficiary, monthly payments of 4 988.16 will continue for the life of the remain- ' ing person. 7. 50% JOINT AND LAST SURVIVOR ANNUITY: This option provides monthly payments of 4 1513.81 to you as long as both you and your bene- ficiary are living. After the death of either you or your beneficiary, monthly payments of 756.91 will continue for the life of the remain- ing person. THESE AMOUNTS ABOVE ARE BASED UPON THE FOLLOWING INFORMATION: Your Date of Birth: 07/19/1981 Pension Hire Date: 01/22/2007 Date of Termination: 01/23/2015 Adjusted Hire Date: 01/22/2007 Avg Final Monthly Comp: $5,364.38 Years of Credited Service: 8 Beneficiary Name: NEVADA JOY SHANE Date of Birth: 09/10/1981 • Page 2 Participant's Name: CHAD M SHANE Social Security #: 525- 61 -xxxx Accumulated Contributions: $33,990.22 After -Tax Contributions: $.00 Pre -Tax Contributions: $33,990.22 Nontaxable Portion of Life Number of Months Nontaxable Annuity Monthly Benefit: $.00 Portion Continues: 0 Nontaxable Portion of Joint Number of Months Nontaxable Survivor Monthly Benefit: $.00 Portion Continues: 0 The Survivor Annuity benefit amounts shown above are based on the beneficiary named above and are payable only to this beneficiary. If you wish to change your beneficiary before your payments begin, new amounts will have to be calculated. BOARD OF TRUSTEES: By DATE: I accept the terms above, including my choice of annuity form, and confirm the information shown above to be correct. PARTICIPANT'S SIGNATURE: DATE: BENEFICIARY'S SIGNATURE: DATE: Calculation Date: CITY OF BOYNT�O EACH POLICE OFFICERS' RETIREMENT SYSTEM * ]E:STIMATE OF RETIREMENT BENEFITS * * F;J Pi January 14, 2015 d 9 f Participant's Name: CHAD M SHANE Social Security #: 525 61 - xxxx You are eligible for a(n) VESTED Retirement Benefit from Y■-- the Plan. Your benefit is payable at the beginning of each month com- mencing February 1, 2027. The amount of your monthly benefit depends on the optional form of annuity which you choose. Please indicate the one optional form listed below which you elect to recieve: 0 1. MODIFIED CASH REFUND ANNUITY:This option provides monthly pay- ments of $ 1522.73 to you as long as you live. If you should die before you have received an amount equal to your own contributions to the Plan, payments will continue to your beneficiary until your own contributions have been used up. 2. TEN YEAR CERTAIN AND LIFE THEREAFTER: This option provides monthly payments of 1511.33 to you as long as you live. If you should die before 120 monthly payments have been made, the monthly payment of $ 1511.33 will continue to be made to your beneficiary until a total of 120 mon ly payments have been made in all. 3. 100% SURVIVOR ANNUITY: This option provides monthly payments of $ 1431.53 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of 1431.53 for as long as he /she lives. 4. 75% SURVIVOR ANNUITY: This option provides monthly payments of $ 1453.29 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of 1089.97 for as long as he /she lives. 5. 50% SURVIVOR ANNUITY: This option provides monthly payments of $ 1475.66 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of 737.83 for as long as he /she lives. 6. 66 - 2/3% JOINT AND LAST SURVIVOR ANNUITY This option provides monthly payments of $ 1490.93 to you as long as both you and your bene- ficiary are living. After the death of either you or your beneficiary, monthly payments of $ 993.94 will continue for the life of the remain- ing person. 7. 50% JOINT AND LAST SURVIVOR ANNUITY: This option provides monthly payments of $ 1522.66 to you as long as both you and your bene- ficiary are living. After the death of either you or your beneficiary, monthly payments of $ 761.33 will continue for the life of the remain- ing person. — THESE AMOUNTS ABOVE ARE BASED UPON THE FOLLOWING INFORMATION: Your Date of Birth: 07/19/1981 Pension Hire Date: 01/22/2007 Date of Termination: 01/24/2015 Adjusted Hire Date: 01/22/2007 Avg Final Monthly Comp: $5,393.90 Years of Credited Service: 8 Beneficiary Name: NEVADA JOY SHANE Date of Birth: 09/10/1981 i Page 2 Participant's Name: CHAD M SHANE Social Security #: 525- 61 -xxxx Accumulated Contributions: $33,314.81 After -Tax Contributions: $.00 Pre -Tax Contributions: $33,314.81 Nontaxable Portion of Life Number of Months Nontaxable Annuity Monthly Benefit: $.00 Portion Continues: 0 Nontaxable Portion of Joint Number of Months Nontaxable 0 Survivor Monthly Benefit: $.00 Portion Continues: The Survivor Annuity benefit amounts shown above are based on the beneficiary named above and are payable only to this beneficiary. If you wish to change your beneficiary before your payments begin, new amounts will have to be calculated. BOARD OF TRUSTEES: By DATE: I accept the terms above, including my choice of annuity form, and confirm the information shown above to be correct. 01 ( 1 15 PARTICIPANT'S SIGNAT, °E : m^: DATE: BENEFICIARY'S SIGNATURE: DATE: 1- Calculation Date: CITY OF BOYNTON BEACH POLICE OFFICERS' PENSION SYSTEM POLICE OFFICERS' PENSION DATA PAGE 1 REPORTING PERIOD 10/01/2014 TO 05/01/2015 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 .ETIREMENT 5179 ANDERSON,BRIAN 02/1967 11/01/14 KELLY ANDERSON 12/1973 2 5,495.26 10,990.5. 2399 ANTHONY,CRAIG 06/1969 02/01/11 DONNA MARIE ANTHONY 03/1970 3 -A 6,906.51 57,785.8' 4464 ASPENLEITER,NANCY 09/1964 10/01/14 ELSIE ASPENLEITER -MOTHE 00 /0000 1 693.56 5,548.4 4212 BEAN,GREGORY 07/1960 08/01/02 SHELLY BEAN 03/1963 3 -A 3,585.80 32,080.1 6494 BLUM JR.,WARREN 07/1951 08/01/01 LAUREEN BLUM EFF 6 -1 -20 05/1956 3 -A 714.47 8,196.0 0654 BRIGANTI,FRANK 01/1959 05/01/10 MICHELE BRIGANTI 06/1963 3 -D 8,392.12 69,751.0' 2191 BROOKS,JAMES 03/1956 12/01/97 SUSAN BROOKS 02/1964 3 -A 2,503.30 23,970.5 8218 BURNS,DAVID 12/1942 09/01/97 LYDIA BURNS 09/1951 3 -A 983.12 10,919.2. 8787 CALE,STANLEY 06/1946 04/01/01 SHIRLEY CALE 09/1947 3 -A 3,994.00 35,539.5 9571 CAMEL,LIONEL 05/1967 05/01/13 PAMELA CAMEL 08/1966 1 1,602.61 14,161.6' 5110 CARRION,SANTOS 04/1954 10/01/97 MARIA IRIS CARRION 11/1954 3 -A 3,055.37 28,405.3 2845 CASH,ROGER 05/1950 02/01/01 00 /0000 1 2,720.84 25,371.4. 9205 CHAPMAN,GARY 04/1952 01/01/08 JANET CHAPMAN 03/1953 3 -A 6,145.82 52,031.2' 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 27,655.4. 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 35,193.9 5540 DEAN,SCOTT 01/1962 06/01/04 TINA DEAN 01/1965 3 -A 3,935.32 34,730.6 2200 DEIGHAN,JEFFREY 05/1941 08/01/97 BARBARA DEIGHAN 08/1943 3 -A 1,109.89 12,162.5 0415 DELOACH,JOHN 09/1943 10/01/93 KATHLEEN DELOACH,WIFE 04/1957 2 3,417.58 31,624.3 6865 DETTMAN,THOMAS 08/1949 03/01/96 00 /0000 2 4,052.57 36,552.1 0099 DUPLANTIS,RUSSELL 08/1944 01 /01 /00 VIOLET DUPLANTIS 11/1951 1 1,139.72 11,768.2 6630 EGNOR,DAVID 12/1946 10/01/02 CONNIE CHRISTENSEN 04/1958 1 3,762.51 33,527.0. 5260 EPSTEIN,ROBERT 10/1974 11/01/24 02/1982 1 1,261.41 .0 4013 ESPOSITO,RONALD 06/1947 04/01/01 JONNA E. ESPOSITO 12/1949 2 6,088.07 52,292.1 1769 FELTER,MARSHALL 02/1961 06/01/09 00 /0000 2 5,221.09 44,481.3 9084 FREY,CHRIS 10/1965 05/01/04 THERESE FREY 07/1967 3 -A 4,209.40 36,931.8 5260 GAGE,MARSHALL 03/1950 08/01/05 DONNA GAGE 10/1950 3 -A 3,155.53 27,662.3' 9798 GAINSBORG,DAVID 05/1960 02/01/01 MONICA GAINSBORG 05/1962 2 3,999.02 35,596.8' 3132 GALBRAITH II,WILLIA 12/1945 02/01/96 PATRICIA C. GALBRAITH 07/1946 3 -B 2,727.52 25,960.3. 4938 GARDNER ESTATE OF,J 12/1936 03/01/83 00 /0000 2 2,090.50 8,464.6' 0354 GRAHAM,STEPHEN 07/1957 01/01/01 00 /0000 1 4,867.36 42,553.2 3127 GRENIER,STEVEN 01/1956 01/01/98 MARJO GRENIER 09/1969 1 2,908.01 27,199.7 4763 GRISWOLD,DANIEL 06/1967 01 /01 /10 BARBARA GRISWOLD 07/1965 3 -A 6,546.06 41,926.8 CITY OF BOYNTON BEACH POLICE OFFICERS' PENSION SYSTEM POLICE OFFICERS' PENSION DATA PAGE 2 REPORTING PERIOD 10/01/2014 TO 05/01/2015 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 1172 HAMILTON,WILLIAM 05/1934 11/01/84 MADALINE HAMILTON, WIFE 08/1943 3 -B 2,303.05 22,708.0' 3807 HARRIS,MARLON 04/1956 01/01/98 TAMMIE HARRIS 02/1958 3 -A 2,854.50 26,771.6. 6677 HARRIS,SCOTT 02/1964 01/01/09 SANDI BREGLER- HARRIS 11/1964 3 -D 4,828.21 41,383.2 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 20,083.9 7645 HILLERY,ROSEMARY 05/1943 03/01/96 00 /0000 3 -D 1,975.02 15,800.1 5164 HOLLIHAN,JOHN 08/1937 01/01/98 MARY L. HOLLIHAN 02/1947 3 -A 4,307.65 38,396.8. 5329 HOPKINS,STEPHEN 04/1963 05/01/04 ELISSA A HOPKINS 10/1972 2 3,580.55 31,901.0 6076 HUNTINGTON,JOHN 12/1950 02/01/09 MARILYN HUNTINGTON 09/1955 2 4,841.37 41,159.8' 2429 IMMLER,GEORGE 12/1951 08/01/13 CARYN IMMLER 10/1956 3 -D 6,110.45 50,527.4 9042 JENSEN,ERIC 07/1959 10/01/02 SHERYL JENSEN 04/1963 2 3,982.84 35,289.6 8026 KALIN,ANDREW 06/1957 02/01/01 ILONA KALIN 08/1957 1 3,519.74 31,762.6 5032 KING,CHARLES 02/1963 08/01/06 MINERVA KING 06/1969 1 5,647.22 48,193.4' 9433 KIRRMAN,MICHAEL 03/1951 09/01/94 LISA MARIE KIRRMAN, WIF 04/1958 1 2,259.89 22,362.7 4466 KUSS,CHARLES 11/1957 04/01/01 ANN MARIE KUSS 01/1958 3 -A 4,383.77 38,657.7 7346 LAAKSO,J. 11/1963 10/01/05 00 /0000 1 1,220.58 12,013.5' 9988 LANE,MICHAEL 02/1960 06/01/07 JODY BARNETT 12/1959 3 -A 5,475.37 46,729.7. 6385 LANIER,MARSHALL 02/1957 10/01/07 JAMIE LANIER 11/1958 3 -D 6,008.60 50,960.2. 5110 LEAL,DAVID 12/1962 05/01/10 00 /0000 1 2,536.15 22,321.8' 2073 LEE,GARY 03/1953 03/01/01 MRS. LEE 07/1950 2 3,146.86 28,771.0. 2043 LEONARD,PATRICK 05/1956 02/01/03 MARIA BEATRIZ CURRIER 11/1959 2 4,015.97 35,518.2 8078 LEWIS,CLIFFORD 08/1944 05/01/91 DELORES A. LEWIS, WIFE 12/1960 3 -D 2,479.04 24,115.9 5288 MAHONEY,JAMES 02/1948 03/01/01 SUSAN MAHONEY 11/1958 2 3,076.27 28,206.3' 2571 MATSON,JEFFREY 11/1966 11/01/10 CARYANN MATSON - SPOUSE 06/1971 3 -A 1,235.87 11,433.3' 6038 MCCABE,DEBRA 12/1962 04/01/06 TOM MCCABE 01/1959 3 -A 1,065.08 10,824.1 7976 MCCABE,THOMAS 01/1959 01/01/10 DEBRA MCCABE 12/1962 3 -A 7,046.66 35,233.3' 8766 MILLER,CARLTON 11/1960 05/01/04 IRMA MILLER 07/1960 1 5,154.49 44,492.5 5542 MULCAHY,MICHAEL 07/1982 02/01/26 SAMANTHA MULCAHY 11/1985 3 -A 1,242.57 .0' 8989 NISSENSOHN,DAVID 09/1954 12/01/97 00 /0000 2 2,913.64 27,253.3 6756 O'CONNOR,RICHARD 03/1959 08/01/04 ROBIN O'CONNOR 08/1961 3 -A 4,279.42 37,465.2. 9270 ORTMAN,CRAIG 11/1964 04/01/08 TALAINA ORTMAN 05/1982 1 1,271.97 12,141.9 3698 OSTASZEWSKI,HENRY 07/1946 12/01/92 JUDITH OSTASZEWSKI, WIF 11/1948 3 -A 2,202.85 21,906.4' 3513 PADICH,THEODORE 11/1957 11/01/97 BONNIE PADICH 06/1955 3 -A 2,932.74 27,414.6 8413 PANUCCI,RONALD 02/1956 09/01/02 RONDA L. PANUCCI 05/1957 3 -A 1,682.21 16,505.5 CITY OF BOYNTON BEACH POLICE OFFICERS' PENSION SYSTEM POLICE OFFICERS' PENSION DATA PAGE 3 REPORTING PERIOD 10/01/2014 TO 05/01/2015 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 6384 PASSALAQUA,PETER 04/1948 09/01/04 JOANNE SCHWARTZ- WIFE 04/1959 2 3,949.41 34,574.5' 4173 PETERS,JOHN 05/1965 10/01/04 00 /0000 2 3,826.82 33,827.3 7453 PRESTINARI,JAMES 02/1959 06/01/04 LOIS R. PRESTINARI 04/1963 1 5,352.71 46,069.7 2956 PRINCIPE JR,ANTHONY 09/1957 02/01/04 00 /0000 1 983.16 10,157.0 4983 CUMMINGS,GERALD 12/1944 08/01/00 00 /0000 2 1,691.75 16,531.5 3584 RANZIE,FRANK 03/1964 09/01/12 CORINNE RANZIE 08/1967 3 -A 9,421.08 77,733.2. 4076 REMCHUK,ESTATE 05/1932 00 /00 /00 00 /0000 3 -C 2,222.55 .0 9280 RIGGLE,ROBERT 08/1966 07/01/04 00 /0000 1 3,504.77 31,277.6 1787 RITACCO,ERIK 03/1966 06/01/07 BOBBIE RITACCO 03/1969 3 -A 5,426.73 46,340.6 0244 ROOT,RICHARD 11/1963 08/01/06 DIANN ROOT 12/1962 3 -A 5,138.28 44,121.9. 2275 ROSENBERG,ANDREW 10/1958 03/01/05 DENICE ROSENBERG 05/1962 2 4,716.85 40,906.8 9178 ROSS,RICHARD 08/1953 02/01/01 00 /0000 1 2,847.00 26,380.7 2829 SCHILKE,RAYMOND 04/1961 10/01/02 LYNDA SCHILKE 11/1962 1 3,137.51 28,527.0. 2961 SCHOENFELD,STEVEN 01/1961 06/01/10 00 /0000 1 6,645.54 55,769.8 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 30,963.1 9558 SMITH,DANIEL 02/1953 03/01/01 MRS. SMITH 01/1961 1 2,874.59 26,592.8 0829 SMITH,JOHN 09/1956 07/01/03 NANCY SMITH 12/1962 1 4,032.92 35,609.9. 0094 SMITH,PATRICK 06/1943 01/01/98 GAIL SMITH 12/1943 1 4,408.93 39,207.0 2073 SPRUILL,SCOTT 11/1979 02/01/23 CHLOE SPRUILL 09/1977 3 -A 3,309.38 .0' 8315 SWAIN, JR.,ESTATE 08/1948 09/01/88 00 /0000 2 1,947.21 .0 3053 THOMAS,ROBERT 04/1959 05/01/07 00 /0000 1 5,796.70 49,308.9 3981 THOMPSON,LEE 03/1952 07/01/04 ANGELA C. THOMPSON 12/1948 3 -A 2,820.13 25,589.6 2145 THRASHER JR.,DONALD 03/1949 10/01/97 MARGARET THRASHER 05/1954 2 3,594.27 32,716.5 7904 TOME,WILLIAM 12/1958 11/01/05 LINDA P TOME 11/1960 3 -A 3,292.19 29,433.5 2185 TRAYLOR,EVERETT 12/1946 03/01/01 MARIE TRAYLOR 07/1954 2 2,897.87 26,779.1 9252 TRAYLOR,MARIE 07/1954 04/01/01 LEON TRAYLOR 12/1946 2 3,104.84 28,426.3 2425 TURNER,TERRENCE 08/1958 08/01/04 LISA TURNER 02/1963 3 -A 3,047.61 27,610.7' 0631 UNGER,WENDY 07/1961 12/01/10 00 /0000 2 8,914.19 73,865.5. 1569 VALERIO JR.,PAUL 06/1953 08/01/00 00 /0000 2 4,209.44 37,333.7 3861 VARGAS,DANIEL 11/1961 10/01/02 MICHELL VARGAS 11/1961 1 3,367.64 30,368.0 7052 WALKER,GARY 08/1959 05/01/04 DIANE WALKER 08/1963 2 3,624.05 32,249.0 0524 WIER,DAVID 07/1968 07/01/12 00 /0000 1 6,700.01 55,982.8' 0028 WISNIEWSKI,KATHRYN 06/1962 05/01/04 00 /0000 2 3,299.75 29,654.6 5037 YANNUZZI,CHRIS 03/1955 08/01/00 SONS EQUALLY 2 -9 -09 00 /0000 2 4,126.68 36,671.7? CITY OF BOYNTON BEACH POLICE OFFICERS' PENSION SYSTEM POLICE OFFICERS' PENSION DATA PAGE 4 REPORTING PERIOD 10/01/2014 TO 05/01/2015 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 4732 ZEITINGER,LOUIS 10/1953 02/01/01 JANE A. ZEITINGER 07/1955 1 3,009.56 27,681.1 Total Retirement 3,067,604.06 DISABILITY 0403 BAXLEY,BRADFORD 08/1945 04/01/81 LOD 00 /0000 2 1,253.78 14,313.9 7621 CELESTINO,WILLIAM 08/1960 05/01/92 LOD 00 /0000 2 1,936.81 18,654.7 0970 DAVIS,JEFFERY 03/1958 08/01/01 NLOD ALICE COKEFAIR DAVIS EF 07/1956 3 -A 1,415.14 14,116.2. 5969 DWYER,KAREN 09/1960 04/01/92 LOD 00 /0000 2 1,705.69 16,530.5 2317 GONZALEZ,JOHN 12/1953 03/01/01 LOD JACOB ANTHONY GONZALEZ 02/1985 1 1,992.64 18,911.8 7940 HAMMACK,DALE 07/1949 10/01/94 LOD 00 /0000 2 3,879.16 35,316.9 8498 JUNNIER,GEORGE 07/1941 04/01/80 LOD 00 /0000 2 1,045.78 12,649.9 1755 KUCER,ALEX 01/1947 04/01/86 LOD 00 /0000 2 1,172.89 12,694.4 7316 LINKOUS,RONALD 06/1955 03/01/87 LOD 00 /0000 2 1,291.98 13,499.3 6352 MOTTL,DAN 03/1952 04/01/88 LOD CATHY MOTTL - WIFE 00 /0000 2 1,801.60 18,233.8 9667 RYAN,MICHAEL 04/1957 02/01/89 LOD 00 /0000 2 1,861.69 18,431.8 9200 SORG,THEODORE 10/1942 02/01/81 LOD 00 /0000 2 1,112.80 13,186.0' 9702 TORTORICI,JOHN 03/1950 01 /01 /00 LOD 00 /0000 2 1,467.23 14,922.7 Disability 221,462.39 3ENEFICIARY 1815 PARKER - POOLE,LINDA 04/1948 3 -B 783.10 8,549.0 2665 JACOBSON,CINDY 04/1964 3 -A 1,986.93 19,300.9 Death 27,850.03 NUMBER OF RETIRED EMPLOYEES ON THIS REPORT: 118 TOTAL PENSION PAYMENTS 3,316,916.48 PENSION FUND 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. 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. 13. Other matters which may be delegated to the Administrative Manager by the Board of Trustees. Page 1 of 3 III. 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, Hanson, Perry & Jensen, 400 Executive Center Drive, Suite 207, West Palm Beach, FL 33401 -2922. d) Submit seven (7) 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. H: \All Miscellaneous \R F P s \2010 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 o Timely implement motions and decisions of Trustees o 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 5th 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 Communication and Coordination: • Review correspondence, statements and documents from all service providers. • Distribute the documents as necessary Page 1 of 3 i Plan Financials: • Assist in reconciliation of accounts • Compliance with Internal Controls and Procedures • Assist in maintenance of General Ledger • Assist in creation of 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: o Review of Invoices o Approval of Expenses by Board o Signed Warrant o Specific Reference to Minutes o Payment of Invoices • Employer Contributions: o Contribution Amounts o Monitor Deposits at least Quarterly • Direct Custodian to: o Process Tax Deposits o Prepare 1099Rs and IRS Reporting o 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 o Administer to oversee and coordinate online access for Members o Create, maintain, distribute newsletter BSJ:pah Revised 2015 H: \BB Police 0188 \vendors\Admin \RFP \list of admin duties.wpd Page 3 of 3 RUSSELL ARFI RUSSELL ARFI BCA PERFORMANCE BAR PERIODS ENDING MARCH 31, 2015 6 5 _ z 4 ct w 3 - - . O i— < 2 - - -- - -- Latest Quarter FYTD 1 Year 2 Years 3 Years 5 Years Since Inception • Russell ARFI Russell ARFI 1.98 2.29 2.12 0.83 1.12 N/A 2.32 ▪ Barclays Aggregate 1.61 3.43 5.72 2.77 3.10 4.41 3.90 Barbara Ladue From: Pat Holt <bsjteam @robertdklausner.com> Sent: Tuesday, May 05, 2015 3:57 PM To: Lori LaVerriere Cc: BSJ Team; Bonni Jensen; Barbara LaDue; Toby Athol; Jason Llopis; Scott Caudell; Joe Degiulio; John Huntington Subject: Boynton Beach Police Officers' Pension Fund (Ordinance) Attachments: 2015 -05 -05 Ltr to City re amend.pdf; ORD disability app by member except 30 days if terminated for medical reason.pdf Lori: Attached is correspondence from Bonni and an ordinance to amend the Pension Plan Document at Section 18 -169 for the Boynton Beach Police Officers' Pension Fund. If you have any questions, please let us know. Thanks, Pa q0te 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 Ks , J'+ +F 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 KLAUSNER KAUFMAN JENSEN LEVINSON A PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS ATTORNEYS AT LAW Reply to: 400 Executive Center Drive Suite 207 West Palm Beach, Florida 33401 Telephone: (561)686 -6550 Facsimile: (561)686 -2802 bonni(a�robertdklausner.com May 5, 2015 VIA EMAIL TRANSMISSION Lori LaVerriere, City Manager City of Boynton Beach 100 East Boynton Beach Boulevard Boynton Beach, Florida 33425 Re: Boynton Beach Police Officers' Pension Fund Ordinance to Amend Plan Document Our File No.: 0188 Dear Lori: On behalf of the Board of Trustees of the Boynton Beach Police Officers' Pension Fund ( "Fund "), attached is an ordinance to amend the Pension Plan Document at Section 18 -169 to provide for clarification that to apply for a disability benefit, an employee must be a member and to amend the plan to provide for a 30 day period to apply in the event a member is terminated from employment for medical reasons. The Trustees would like to have this amendment considered by the City Commission. I will provide the impact statement upon receipt. It is expected that this language change will not have a cost impact. If you have any questions regarding this or any other matter, please do not hesitate to contact my office. Sin -rely yours, BSJ:pah Bonni S. Jensen Enclosure E -Copy to: Board of Trustees Administrator H: \BB Police 0188 \Plan Doc\Amend\2015\2015 -05 -05 Ltr to City re amend.wpd 7080 NORTHWEST 4TH STREET, PLANTATION, FLORIDA 33317 PHONE: (954) 916 -1202 • FAX: (954) 916 -1232 www.robertdklausner.com ORDINANCE , 2015 AN ORDINANCE OF THE CITY OF BOYNTON BEACH, FLORIDA, AMENDING ARTICLE III, OF CHAPTER 18 OF THE BOYNTON BEACH CODE OF ORDINANCES, ENTITLED "MUNICIPAL POLICE OFFICERS' RETIREMENT TRUST FUND;" AMENDING SECTION 18 -169 PROVIDING FOR CLARIFICATION THAT TO APPLY FOR THE DISABILITY BENEFIT AN EMPLOYEE MUST BE A MEMBER AND TO AMEND THE PLAN TO PROVIDE FOR A 30 DAY PERIOD TO APPLY IN THE EVENT A MEMBER IS TERMINATED FROM EMPLOYMENT FOR MEDICAL REASONS; PROVIDING FOR CODIFICATION; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND, PROVIDING FOR AN EFFECTIVE DATE HEREOF. WHEREAS, the Board of Trustees ( "Trustees ") of the Boynton Beach Municipal Police Officers' Retirement Trust Fund recommend that the Plan Document be amended to clarify that the only members may apply for a disability pension and to amend the Plan to provide that a member who is terminated for medical reasons can apply within 30 days of termination; and WHEREAS, the City Commission of the City of Boynton Beach, Florida, desires to revise its Police Officers' Plan in order to provide this administrative change; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA: Section 1. The foregoing "WHEREAS" clauses are hereby certified as being true and correct and are incorporated herein by this reference. Section 2. Section 18 -169 of Article III of Chapter 18 of the Boynton Beach Code of Ordinances is hereby amended as follows: Sec. 18 -169. Requirements for retirement- benefit amounts. Page 1 of 7 (c) Disability retirement. (1) Service incurred. a. Any member who receives a medically substantiated service connected injury, disease or disability which injury, disease or disability totally and permanently disabled him or her to the extent that in the opinion of the Board of Trustees, he or she is wholly prevented from rendering useful and efficient service as a police officer shall receive a monthly benefit equal to 66 2 /3% of his or her basic rate of earnings in effect o n the date of disability. 1. Such benefit shall be payable on the first day of each month, commencing on the first day of the month following the latter to occur of the date on which the disability has existed for three months and the date the Board of Trustees approved the payment of such retirement income. A disability retiree may select from the optional forms of benefits available to service retirees in accordance with Section 18 -170. 2. In the event of recovery prior to the otherwise normal retirement date, credit for service during the period of disability shall be granted for purposes of subsequent retirement benefits. Subsequent retirement benefits will be actuarially reduced to account for the benefits that were paid during the period of Page 2 of 7 disability. 3. The amount of the disability benefit payment from the fund shall be reduced by any amounts paid from worker's compensation and the federal social security system. The reduction for social security benefits shall be in the amount of the primary insurance amount (PIA) only, and future increases, if any, in the disabled member's social security disability benefits shall not serve to reduce any further the disability benefit from the fund. The reduction for social security shall terminate upon the attainment of age 65. The pension benefit may only be reduced to the extent that the total of the benefits from this fund, workers' compensation and social security benefits exceed 100% of the disabled member's basic rate of earnings on the date of disability. However, in all cases the benefit will be at least 42% of average final compensation. b. Terminated persons, either vested or non - vested, are not eligible for disability benefits, except that those terminated by the city for medical reasons may apply for a disability within 30 days after termination. c.b7 Any condition or impairment of health of a member caused by tuberculosis; hypertension, heart disease, hardening of the arteries, hepatitis, or meningococcal meningitis resulting in total or partial disability or death, shall be presumed to be accidental and suffered in the line of Page 3 of 7 duty unless the contrary be shown by competent evidence. Any condition or impairment of health caused directly or proximately by exposure, which exposure occurred in the active performance of duty at some definite time or place without willful negligence on the part of the member, resulting in total or partial disability, shall be presumed to be accidental and suffered in the line of duty, provided that such member shall have successfully passed a physical examination upon entering such service, which physical examination including electrocardiogram failed to reveal any evidence of such condition. In order to be entitled to presumption in the case of hepatitis, meningococcal meningitis, or tuberculosis, the member must meet the requirements of F.S. Section 112.181. The final decision whether a member meets the requirements for duty disability pension rests with the board and shall be based on substantial competent evidence on the record as a whole. (2) Nonservice incurred. Effective October 1, 2000, any member with ten years of continuous service who receives a nonservice incurred injury, illness, disease or disability, and which illness, injury, disease or disability totally and permanently disables him or her to the extent that, in the opinion of the Board of Trustees, he or she is wholly prevented from rendering useful and efficient service as a police officer, shall receive from the fund in equal monthly installments an amount equal to 3.5% of his or her average final compensation for each year of continuous service until Page 4 of 7 death or recovery from disability whichever shall first occur, provided, however, the maximum benefit to which a member may become entitled under this paragraph shall not exceed 60% of his or her average final compensation during said period, but in all cases the benefit will be at least 25% of average final compensation during said period. Such benefit shall be payable on the first day of each month, commencing on the first day of the month following the latter to occur of the date on which the disability has existed for three months and the date the Board of Trustees approved the payment of such retirement income. Terminated persons, either vested or non - vested, are not eligible for disability benefits, except that those terminated by the city for medical reasons may apply for a disability within 30 days after termination. Section 3. It is the intention of the City Commission of the City of Boynton Beach that the provisions of this Ordinance shall become and be made a part of the Code of Ordinances of the City of Boynton Beach, Florida. The Sections of this ordinance may be renumbered, re- lettered and the word "Ordinance" may be changed to "Section," "Article" or such other word or phrase in order to accomplish such intention. Section 4. All Ordinances or parts of Ordinances, Resolutions or parts of Resolutions in conflict herewith be and the same are hereby repealed to the extent of such conflict. Section 5. If any clause, section, or other part or application of this Ordinance Page 5 of 7 shall be held by any court of competent jurisdiction to be unconstitutional or invalid, such unconstitutional or invalid part or application shall be considered as eliminated and so not effecting the validity of the remaining portions or applications remaining in full force and effect. Section 6. This Ordinance shall become effective when the following have occurred: (a) the City Commission has received and has accepted a report establishing the actuarial soundness of these amendments; (b) a copy of this Ordinance has been sent to the Florida Division of Retirement; and (c) when a collective bargaining agreement ratifying the foregoing changes to pension benefits has been ratified by the City Commission and the Municipal Police Officers' Pension Board of Trustees, or their successor organization, or a letter from such union stating it accepts the terms of this Ordinance or otherwise does not object to its contents. Upon satisfaction of all of the above requirements, then in that event, the terms and provisions of this Ordinance shall become effective. FIRST READING THIS DAY OF , 2015. SECOND, FINAL READING and PASSAGE THIS DAY OF 2015. PASSED AND ADOPTED THIS DAY OF 2015. Page 6 of 7 • CITY OF BOYNTON BEACH, FLORIDA Mayor Vice Mayor Commissioner Commissioner Commissioner ATTEST: CITY CLERK H: \BB Police 0188 \Plan Doc\Amend \2015 \ORD disability app by member except 30 days if terminated for medical reason.wpd Page 7 of 7 Barbara Ladue From: Serene, Mary Jean <mjserene @russell.com> Sent: Friday, May 01, 2015 3:34 PM To: bsjensen @perryjensenlaw.com Cc: Athol, Toby; Barbara Ladue; Pheneger, Karen; Delyanis, Peter Subject: RE: Russell Absolute Return Fixed Income Fund Attachments: RIFL PPM.ZIP; RIFL Subscription Material.zip Hi Bonni, I wanted to check -in with you in advance of the May 12 meeting as it relates to the fund structure for the Absolute Return Fixed Income Fund (ARFI Fund). I believe it was our intention to re -visit the investment merits of the ARFI at the May meeting, but also want to be mindful of any potential concerns from a legal /structure perspective. Any initial questions or concerns as you've reviewed the documents provided by Peter? Thanks, MJ securities products an services Griever; `ili'(33 . h • , . • : • - 1 3 ) C , ' 1?:1;1 Zieeortd Avenue iBtit F=loor, Seattle, 'NA 9ai0i, of Rurst)li (rtVC': L4, iklilf:•..7t..:rtfasirtiatit>ii ,.c :, PYi.. „...: •.: t.i t.:e intended recipiont(s) named• r.2llove. It y<>ii received this N ^Ytlali lfi orroP, oleair.o iYL`til`/ +N: • - I:18i'1LF is a trade Ptarna and rigistereci ':i'ei(it:i3t._ark ! >i Fretii:i ftiLS'Sx:ii f:fln pz; tv, i,'fi .A :.f ,, .ic:i,.. t.,e il� .l:t"e)t1 ;,e?.ti)!:, i. t I� r ,:- _:e woriti#idi, and is part of { `itOt:4t rixdnnge Group. From: Delyanis, Peter Sent: Wednesday, February 11, 2015 5:59 PM To: bsjensen@perrvjensenlaw.com Cc: Athol, Toby; Barbara Ladue; Serene, Mary Jean; Pheneger, Karen Subject: Russell Absolute Return Fixed Income Fund Hi Bonni, MJ mentioned that the Committee discussed the Russell Absolute Return Fixed Income Fund during the meeting on Tuesday. This particular fund is part of a private placement fund complex known as the Russell Institutional Funds, LLC ( "RIFL "). Accordingly, please see the confidential and proprietary Private Placement Memorandum ( "PPM ") attached to this email for your review. This version is individually numbered for the City of Boynton Beach and I am providing this document on behalf of MJ at her request. MJ has prequalified The City as a potential investor in the RIFL complex. I've also attached the RIFL Operating Agreement, the Subscription Agreement and accompanying Russell ADVs for your review, as well. Whenever the Committee may decide to move forward with the investment, I would be happy to review the Subscription Agreement over the phone with whomever will be completing it. If you have any questions or if you would like more information about the fund or the RIFL complex, please let me know. Regards, _ Peter Peter De aiil9 Seattle, WA I 98101 Senior Account Executive p. 206 - 505 -4554 Americas Institutional I Russell Investments RhLIM -Asset Solutions 1301 2nd Avenue 1 18th floor Visit Russell.corn j Read the Fiduciary Matters blog j Follow us on T' Barbara Ladue From: Bonni Jensen <bonni @robertdklausner.com> Sent: Tuesday, May 05, 2015 9:21 AM To: Burgess Chambers; Frank Wan Cc: bsjteam; MJSerene @russell.com; 'Barbara Ladue' (ladueb @bbpdpension.com) Subject: Boynton Beach Municipal Police Officers Pension Trust Fund - Russell Absolute Return Fixed Income Fund Attachments: Abs Return Fixed Income.pdf Burgess /Frank, Attached is a copy of the Investment Policy for Russell Absolute Return Fixed Income Fund suggested by MJ at the last meeting. Please review for the discussion at the next meeting. 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 bonni ci robertdklausner.com AU JENCEN LEVINSON 7080 N.W. 4th 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. 1 RUSSELL ABSOLUTE RETURN FIXED INCOME FUND MARCH 31, 2014 THIS FUND MAY TRADE COMMODITY INTEREST POSITIONS WITHIN THE MEANING OF THE U.S. COMMODITY EXCHANGE ACT AND RULES AND REGULATIONS THEREUNDER. IN CONNECTION WITH SUCH TRADING ACTIVITIES, THE MANAGING MEMBER AND ITS BOARD OF MANAGERS HAVE DELEGATED COMMODITY POOL OPERATOR ( "CPO ") RESPONSIBILITY TO RUSSELL INVESTMENT MANAGEMENT COMPANY, THE INVESTMENT MANAGER OF THIS FUND. NOTWITHSTANDING ANYTHING IN THE MEMORANDUM TO THE CONTRARY, WHILE THE INVESTMENT MANAGER IS REGISTERED AS A CPO WITH THE COMMODITY FUTURES TRADING COMMISSION (THE "CFTC "), THE INVESTMENT MANAGER HAS NOTIFIED THE CFTC THAT IT IS ELIGIBLE FOR EXEMPTION FROM CERTAIN COMPLIANCE REQUIREMENTS AS A CPO WITH RESPECT TO THE FUND PURSUANT TO CFTC RULE 4.7 BECAUSE ALL INVESTORS IN THE FUND ARE AND WILL BE QUALIFIED ELIGIBLE PERSONS AS THAT TERM IS DEFINED IN CFTC RULE 4.7. PURSUANT TO AN EXEMPTION FROM THE CFTC IN CONNECTION WITH POOLS WHOSE PARTICIPANTS ARE LIMITED TO QUALIFIED ELIGIBLE PERSONS, THE MEMORANDUM AND THIS PPM SUPPLEMENT ARE NOT REQUIRED TO BE, AND HAVE NOT BEEN, FILED WITH THE CFTC. THE CFTC DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN THIS FUND OR UPON THE ADEQUACY OR ACCURACY OF THE MEMORANDUM AND THIS PPM SUPPLEMENT. CONSEQUENTLY, THE CFTC HAS NOT REVIEWED OR APPROVED THE OFFERING OF THE PARTICIPATING SHARES MADE PURSUANT TO THE MEMORANDUM AND THIS PPM SUPPLEMENT. PROSPECTIVE INVESTORS SHOULD NOTE THAT THE INVESTMENT MANAGER IS NOT REQUIRED TO REGISTER AS A COMMODITY TRADING ADVISOR WITH RESPECT TO THE FUND IN RELIANCE ON CFTC RULE 4.14(A)(4). I. INVESTMENT OBJECTIVE AND STRATEGY The primary investment objective of the Russell Absolute Return Fixed Income Fund (this "Fund ") is to provide capital appreciation with a consistent positive rate of return that is competitive with the long -run returns achieved by typical investment grade core bond funds. As B -56 a secondary objective, the Fund will seek to maintain a relatively low correlation to both bonds and equities. The Fund's benchmark index is the Barclays 3 Month USD LIBOR Cash Index. With respect to a portion of its assets, the Fund generally employs the "multi- style, multi - manager diversification" approach detailed in the Memorandum to gain exposure to the instruments described below. In addition, from time to time, this Fund may gain exposure to the instruments described below indirectly by investing in one or more other privately- offered collective investment funds managed by unaffiliated money managers (each such fund in which the Fund may invest, a "Third -Party Fund "), with such Third -Party Fund generally investing directly in the instruments described below. Therefore, the Fund expects to gain direct and indirect exposure to the instruments described below. The Fund expects to invest in instruments across a variety of fixed income markets, including currencies, to obtain both long and short exposure. Cash bond investments may include, but are not limited to, investment grade and non - investment grade corporate bonds, U.S. and international government bonds, emerging market debt, bank loans, private placements, convertible and preferred securities, and mortgage- backed and asset - backed securities. The Fund may invest in non -U.S. dollar denominated debt securities without limitation. To the extent permitted under applicable law, the Fund may invest in private placement securities issued under Rule 144A of the Securities Act of 1933, as amended. The Fund will also have significant investments in derivatives. The Fund may (i) purchase and sell futures contracts, including interest rate, foreign currency and Treasury futures, (ii) enter into options, when issued or forward commitment transactions, forward foreign currency contracts and (iii) enter into a variety of swap agreements, in each case, among other reasons, as a substitute for holding securities directly, for hedging purposes, to take a net short position in certain markets, or to adjust the interest rate sensitivity and duration of this Fund's portfolio. The Fund may buy or sell credit default swaps or other credit derivatives as an alternative to buying or selling debt securities themselves or otherwise in an effort to increase the Fund's total return. The Fund may also make limited investments in non -fixed income securities, including equity securities, directly or indirectly through derivative exposure. Unhedged equity investments will generally be limited to 10% the Fund's Net Asset Value, while derivative exposure to equity investments, through investments in futures, options, derivatives related equity volatility and other instruments, will in normal circumstances be limited primarily to hedging techniques and to techniques seeking to generate returns through volatility premiums rather than outright long equity exposure. The Fund may enter into repurchase agreements. A repurchase agreement is an agreement under which the Fund acquires a fixed income security from a commercial bank, broker or dealer and simultaneously agrees to resell such security to the seller at an agreed upon price and date (normally the next business day). The Fund may take investment positions in currencies. B -57 The Fund may purchase shares of exchange traded funds ( "ETFs ") to gain exposure to a particular portion of the market (i) while awaiting an opportunity to purchase securities directly or (ii) that may not be efficiently investable through the cash bond market at a given point in time. In any such case, the Fund is expected to bear management and other fees and expenses of the ETF as a result of holding ETF shares. However, from time to time, the Managing Member may determine to make payments to the Fund in amounts intended to offset all or part of such ETF- related fees and expenses borne by the Fund during certain periods, although the Managing Member is not obligated to do so and may discontinue making any such payments at any time in its sole and absolute discretion. The Fund's average weighted duration may vary, and will generally remain between -5 and +7 years. There is no limit on the maturity or on the credit quality of any security held by the Fund. The Fund expects to invest in securities across the rating spectrum, although the Fund typically expects that at least 50% of its investments will be comprised of investment grade securities or cash. Cash reserves are invested in short-term investments. In addition, this Fund may pursue its strategy to be fully invested by exposing its cash reserves to the performance of appropriate markets by purchasing fixed income securities and /or derivatives, including currency forwards. On rare occasions, the Fund may take a temporary defensive position that may be inconsistent with its long -term investment strategy in an attempt to respond to adverse market, economic, political or other conditions. If this occurs, the Fund may not achieve its investment objective during such times. The Fund may take a defensive position by raising cash levels and /or reducing or eliminating the strategy to expose its cash reserves to the performance of appropriate markets. Investments by Other Funds. From time to time, one or more other Funds may invest in this Fund, which investments may constitute a substantial portion of this Fund's Net Asset Value. Additional Investment Strategies Implemented by RIS. In addition to the discretionary investment management services that may be provided by RIS to this Fund with respect to cash reserves and certain Fund assets during transitions between Sub - Advisors, as further described in the Memorandum under the section titled "INVESTMENT APPROACH AND MANAGEMENT OF THE FUNDS — The Sub- Advisors," RIS may also implement the following strategies directly in a discretionary investment management capacity with respect to certain of the Fund's assets from time to time: o Currency Indexes: RIS may seek to hedge all or part of the effects of increases or decreases in the values of non -U.S. currencies to which this Fund may be exposed from time to time, relative to the base currency of this Fund, generally through the use of currency forward contracts. Additionally, RIS may use currency forward contracts to capture value, carry and trend index factors in the global currency markets. 0 o Tactical exposures: RIS may trade on behalf of the Fund for total return purposes by allocating to ETFs and exchange traded notes ( "ETNs ") or using derivatives such as B -5 8 futures, options and swaps to add or subtract exposure to sectors, countries, interest rate or credit risk. From time to time, RIS may also serve as discretionary investment manager with respect to portions of the Fund's assets to implement directly certain investment strategies in addition to those described above. II. RISK FACTORS The Fund is subject to various risks as described in the Memorandum. Investors should consult the risks appearing under the headings "RISKS ASSOCIATED WITH ALL FUNDS" and "RISKS ASSOCIATED WITH CERTAIN FUNDS" in the Memorandum. In connection with a review of the foregoing sections of the Memorandum, prospective Investors should also consult the table attached hereto as Appendix A which specifically identifies the types of investment - related risks to which this particular Fund is subject. The Fund may engage in short sales, but may effectively take synthetic short positions through the use of derivatives (e.g., credit default swaps, futures). Derivatives are used extensively by certain managers and as mentioned in the description above. The Fund may have synthetic leverage by virtue of using certain derivatives such as futures and swaps. In addition, as described above in this PPM Supplement, this Fund may invest in one or more Third -Party Funds from time to time. Such investments carry certain risks in addition to the risks described in the Memorandum, which include, without limitation, the following: Duplicative Expenses. As an investor in a Third -Party Fund, the Fund will bear, along with other investors in that Third -Party Fund, a portion of the expenses of the Third -Party Fund, which may include investment- related and trading - related, auditing, legal, administrative, custodial, accounting and other expenses incurred in connection with the operations and investment activities of the Third -Party Fund. These expenses will be in addition to the expenses borne by the Fund and the Management Fee borne by each Investor in connection with its investment in the Fund. Concentration. At times, the Fund's investment in a Third -Party Fund may constitute a substantial portion of the Fund's Net Asset Value. Such concentrated investment in a Third - Party Fund magnifies the risk of loss to the Fund if such Third -Party Fund suffers losses. In addition, the Fund's investment in a Third -Party Fund may at times constitute a substantial portion, or even all, of the net asset value of the Third -Party Fund. If the Fund makes a substantial or full redemption from that Third -Party Fund during such time, the Third -Party Fund may be required to liquidate all or a substantial portion of its investment portfolio at prices substantially lower and in a less orderly manner than would have occurred had the Fund not made the substantial or full redemption, which could result in material losses to the Fund. IIliquidity and Resultant Actions of Third -Party Funds and their Investment Managers. The Fund's ability to pay redemption proceeds to Investors depends on the Fund's receipt of proceeds upon redemption from the Third -Party Funds to the extent of the Fund's investment in such Third -Party Funds. A Third -Party Fund or its investment manager may seek to impose certain limitations on the Fund's redemptions from such Third -Party Fund for prolonged periods B -59 by, for example: (1) suspending the determination of the Third -Party Fund's net asset value, (2) suspending redemptions in whole or in part, (3) suspending subscriptions or capital contributions, (4) imposing "gates" or restrictions on redemption amounts above a certain level, and /or (5) deferring or delaying payments of redemptions and /or extending the period for payment of redemption proceeds and /or retaining a percentage of redemption proceeds until after the annual audit (commonly referred to as an "audit holdback "). In addition, such Third -Party Fund or its investment manager may seek to, among other things, (i) wind -up the relevant Third -Party Fund, including at times and under conditions where the disposition of its securities and other assets may not be at prices deemed favorable to the Fund and other investors therein, (ii) assign certain illiquid or similar assets held by the relevant Third - Party Fund to "special situation" or "side pocket" accounts, from which redemptions are prohibited, (iii) distribute certain securities or other assets held by the relevant Third -Party Fund into a liquidating trust or similar account or vehicle, in which case payment to the Fund and other investors in such Third -Party Fund of the portion of their redemptions attributable to the securities or other assets held in such liquidating trust or similar account or vehicle may be delayed until such time as such securities and other assets are liquidated or become freely tradable, and /or (iv) distribute certain securities and other assets held by such Third -Party Fund in -kind to the Fund and other investors therein, in which case the Fund may not be able to liquidate such securities and other assets during certain periods and /or at prices deemed favorable to Investors. The occurrence of any one or more events described above may render the Fund's investment in a Third -Party Fund illiquid and /or may substantially impair the value of one or more investments of the Fund, including any investment in a Third -Party Fund. This, in turn, may have a material and adverse effect on Investors, including without limitation by causing the Fund to delay payment of redemption proceeds on the redemption of Shares or to suspend or limit the redemption of Shares, in each case as further described in the Memorandum, or by otherwise rendering some or all of the Shares illiquid or substantially impairing the value of the Shares, in each case for prolonged periods. Such illiquidity may result in substantial delays to an Investor's ability to redeem from the Fund, in whole or in part, and may result in reduced proceeds of redemption of an Investor's Shares had such event not occurred. No Active Role in Third - Party Fund Management. The Fund will not have an active role in the day -to -day management of Third -Party Funds, and will generally not have the opportunity to evaluate the specific investments made by a Third -Party Fund before they are made. In particular, the Fund will not carry out due diligence on the underlying investments selected for investment by the relevant Third -Party Fund and will instead rely exclusively on, and not be responsible for, the due diligence carried out on those underlying investments by the relevant Third -Party Fund's investment manager. Accordingly, to the extent the Fund invests in Third - Party Funds, the returns of the Fund will depend in part on the performance of the Third -Party Funds (and their respective investment managers) and may be substantially adversely affected by the unfavorable performance of the Third -Party Funds and their investment managers. Before investing in a Third -Party Fund, the Investment Manager conducts initial due diligence with respect to the Third -Party Fund and its investment managers and advisers. After an investment in a Third -Party Fund, the Fund and the Investment Manager continue monitoring the B -60 Third -Party Fund and its investment managers and advisers. However, there can be no assurance that such due diligence and monitoring will detect misconduct, negligence or fraud on the part of the Third -Party Funds and their investment managers and advisers. Inexperienced Third -Party Funds and Investment Managers. Although the Fund will choose Third -Party Funds which, in the opinion of the Investment Manager, have appropriate investment backgrounds and show substantial performance potential, some of these Third -Party Funds or their investment managers may not have extensive track records or may be newly formed with no track record. Multiple Third -Party Funds and Sub - Advisors. As the Fund may invest in different Third - Party Funds, it is theoretically possible that one or more of such Third -Party Funds and the Sub - Advisors employed in the "multi- style, multi- manager diversification" approach may, at any time, take investment positions that are the opposite of positions taken by other Third -Party Funds or Sub - Advisors. It is also possible that the Third -Party Funds or Sub - Advisors may on occasion be competing with each other for similar positions at the same time. Also, the investment manager of a particular Third -Party Fund or a Sub - Advisor may take positions for its other clients that are the opposite of positions taken for the relevant Third -Party Fund or portion of the Fund's assets managed by such Sub- Advisor. Access to Information from Third -Party Funds. The Investment Manager may request information from each Third -Party Fund regarding the historical performance and investment strategy of the Third -Party Fund or its investment manager. The Investment Manager may also request detailed portfolio information on a continuing basis from each Third -Party Fund or its investment manager. However, the Investment Manager may not always be provided with such information because parts of this information may be considered proprietary information by the particular Third -Party Fund or investment manager. This lack of access to information may make it more difficult for the Investment Manager to select, allocate among and evaluate Third - Party Funds. Limited Ability to Verify Valuation Information. The value of the Fund's investment in a Third -Party Fund will generally be determined in accordance with the valuation policies of the Third -Party Fund and its investment manager. Such valuations will generally be calculated by the investment manager of such Third -Party Fund or its agent, not by the Fund, the Administrator or the Investment Manager. The Fund, as an investor in a Third -Party Fund, has only limited access to the portfolio holdings of such Third -Party Fund and thus the Fund and the Investment Manager may have a limited ability or no ability to independently verify the valuation information provided by the Third -Party Fund. Risk Management Control Issues. The investment managers of the Third -Party Funds may use proprietary investment strategies that are not fully disclosed to the Investment Manager. These strategies may involve risks under certain market conditions that have not been anticipated by the investment managers of the Third -Party Funds. The Investment Manager's inability to control the frequency, quantity or quality of information obtained from the Third -Party Funds regarding their investment portfolios may make it difficult or impossible for the Investment Manager to implement its risk management strategies as intended. There can be no assurance or guarantee B -61 that the Fund will be profitable even if the Investment Manager is able to implement its risk management strategies as intended. Estimated and Unaudited Valuations. In most cases, the Fund and the Administrator will have no ability to assess the accuracy of the valuations received from a Third -Party Fund. Further, the net asset values received by the Fund or the Administrator in respect of such Third -Party Fund may be estimates and will typically be unaudited at the time such net asset value calculations are distributed and subject to further confirmation until the annual audit is finalized. As a result, the exact number of Shares to be issued upon a subscription for Shares or the price to be paid by the Fund on a redemption of Shares may not be known until the net asset values of the Third -Party Funds in which the Fund invests have been confirmed. Leverage and Other Borrowings. The Third -Party Funds may employ leverage in implementing their investment programs. The use of leverage creates special risks and may significantly increase a Third -Party Fund's investment risk. Leverage creates an opportunity for greater yield and total return but, at the same time, will increase the Third -Party Fund's exposure to capital risk and interest costs. Any investment income and gains earned on investments made through the use of leverage that are in excess of the interest or other costs associated with obtaining such leverage may cause the Third -Party Fund's net asset value to increase more rapidly than would otherwise be the case. Conversely, where the associated costs are greater than such income and gains or where the Fund incurs a loss on investments made through the use of leverage, the Third -Party Fund's net asset value may decrease more rapidly than would otherwise be the case. A Third -Party Fund that borrows money may pledge its assets as security for the repayment of such borrowing. If a Third -Party Fund defaults under any such borrowing arrangements, such default may have a material and adverse effect on the Third -Party Fund, its operations and its ability to engage in subsequent borrowings. Possibility of Misconduct by the Investment Managers of Third -Party Funds. Because the Fund will not have custody or control over the assets it invests in a Third -Party Fund, an investment manager of any such Third -Party Fund could divert or abscond with the Third -Party Fund's assets, fail to follow its stated investment strategies, issue false reports or engage in other misconduct. Litigation Risk. A Third -Party Fund could become involved in shareholder, insider trading or other litigation as a result of its investment activities, which could adversely affect the Third - Party Fund. Indemnification of Investment Managers of Third -Party Funds. The Fund, as an investor in a Third -Party Fund, may agree to indemnify the Third -Party Fund, its investment manager and other advisors, and their respective officers, directors, and affiliates from any liability, damage, cost, or expense arising out of, among other things, acts or omissions relating to the offer or sale of interests by the Third -Party Fund. B -62 III. PORTFOLIO MANAGER Keith L. Brakebill, Portfolio Manager since August 2011. From 2010 to 2011, Mr. Brakebill was a Senior Research Analyst. From 2007 to 2010, Mr. Brakebill was a Research Analyst. IV. SUB - ADVISORS AND THIRD -PARTY FUNDS Sub- Advisors and Third -Party Funds may be changed from time to time in the Investment Manager's sole discretion. For a current list of a particular Fund's Sub - Advisor(s) and Third - Party Fund(s), please visit https: / /clientlink.russell.com. V. TRADING TERMS OF FUND A. Trading. This Fund is priced and traded on each Trading Day. B. Share Purchases. • The Trading Date Cutoff for this Fund for Share purchases is 1:00 p.m. Pacific Time on the Trading Day that is three business days prior to a given Trade Date. If the Trade Authorization is received by the Administrator on such Trading Day but after this Trading Date Cutoff, the Trade Date will be effective as of the end of the Trading Day that is four business days after that Trading Day. • The Settlement Date for this Fund is 5:00 p.m. Pacific Time on the Trading Day that is three business days following the Investor's Trade Date. If monies are not received by the Administrator by this time, overdraft fees and other penalties will be assessed against the Investor as described in the Memorandum. C. Share Redemptions. • The Trading Date Cutoff for this Fund for Share redemptions is 1:00 p.m. Pacific Time on the Trading Day that is three business days prior to a given Redemption Date. If the Trade Authorization is received by the Administrator on such Trading Day but after this Trading Date Cutoff, the Redemption Date will be as of the end of the Trading Day that is four business days after that Trading Day. • A redeeming Investor generally will receive amounts owed to it from such redemptions within three business days after a Redemption Date. VI. INTERNAL FEES There are currently no Internal Fees for this Fund. VII. FISCAL YEAR The fiscal -year end for this Fund is June 30. B -63 VIII. FIRST AVAILABLE INVESTMENT DATE This Fund expects to accept limited investments on or about March 31, 2014 and to accept investments after that date. IX. ADDITIONAL ELIGIBILITY REQUIREMENTS Other than the requirements applicable to all Funds described in the Memorandum under "TERMS OF THE OFFERING — Eligibility," there currently are no additional eligibility requirements. X. CERTAIN ERISA AND BROKERAGE CONSIDERATIONS It is currently anticipated that the assets of this Fund may from time to time be deemed to include "plan assets" of each Plan which becomes an Investor in this Fund. At any time the Fund is subject to ERISA, the Investment Manager anticipates satisfying the conditions of PTE 86 -128 and, in connection therewith, causing this Fund to pay brokerage commissions to RIS or another broker- dealer affiliated with the Investment Manager in connection with the execution of securities transactions for this Fund, as further described in the Memorandum under the section titled "INVESTMENT APPROACH AND MANAGEMENT OF THE FUNDS — Brokerage." B -64 APPENDIX A RISK MATRIX An investment in these Funds, like any investment, has risks. The value of each Fund fluctuates and you could lose money. The following table lists these Funds and the types of specific investment - related risks to which these Funds are subject, and identifies which Funds are most likely to be affected by each risk. The risks identified below for each Fund are in addition to those risks identified in the Memorandum to which all of the Funds are or may be subject from time to time. In addition, although certain Funds may not be identified below as being subject to one or more of the specific risks listed below and, from time to time, could become subject to any such risk, this table is intended to identify those risks that are expected to principally affect the performance of a Fund as a whole in addition to the risks generally applicable to all Funds. Please refer to the risks appearing under the heading "RISKS ASSOCIATED WITH ALL FUNDS" and "RISKS ASSOCIATED WITH CERTAIN FUNDS" in the Memorandum and the PPM Supplement for each Fund distributed herewith for a discussion of the risks of investing in the Funds and the specific risks associated with particular Funds. B -65 Appendix A (Additional funds are listed on the next page.) q ? i tvsC2� 0 .c -': , Q - , , 1 0 r F.' Ru Sell , i I v, �.., ,{ ; [a - � •tn :wit Ji { 3; xt r x. �uSSe l'�.,` `y' h : .., fit• r x ,� • Y S 1 u sell ;+ ,R , � l , �, p ruts oip 1 I j t " , � u, �� x � � , �i �� #, t ro � �' �t"��15�' , �S' , ��a �:� , r' . "•?+�� `,�� .x I ,� � � �� .� , ` �', , s �. a� � � 1 u � V6 jj � �. ;� l ; �a , e , . I 1 l r;ge , 1 , efensiv F ma p 0 , 5 k ., g r u , ' d ' , i. . � li 3 r . e . �y �• P � i 1 !1, q P 6 F i qi ,s �, ' } � ,r,. �� : � �aiu�r,tt i� i " .• � � H �i R b: t 7'a.�eY, .-1 ,F • ' E 4 4, f, ; Ili , 1 .,,: 1'045 r Ru s sel lj , s' " ,]'rise' 5 .so . • t , i� ' arkets' '' -.p IIE .1 '� g ; �� p I 4 E�'t p iY F� "� p . I^' • n' j T • �' tr•�:r 2' 13n i s n. 'f �x 4 d. ; : i 1 . F - j�.I r"75 a - s t ` � ig ' ct .;t 1, t .,• D 1 ' � a • ` d' ' . : b i i t y f 6tlit t rd o q� , . lobal Au - q ui , 0. { .9 ' S, A d 1 ',1 , q u �x, s - F '� :Ak Ferrari r �'f V �, x 1 i i n ti �, n nr p ill i ; h d1 i , D 3 ^F� ulyz 1� 1111 Vii' sPzlusiut.. -., 01':+ o EI S 05: 'NI li uu. § '' =gull uli u d o,<.� q. ,�• ;;,; Multiple Sub Advisors ' Multi- Manager Approach • ;Risks' Relating to'Short Sales : . Risks Relating to the Use of • Derivatives - Leveraging Risk,,.. Use of Exchange Traded • Funds ( "ETFs ") Use of;Exchange' • ( "ETNs ") . Equity Securities • International Secunties.. :: " Fixed - Income Securities • • Emerging;Markets :Debt ,;. • .: _ .:. Forward Currency Contracts • • • =Real Estate Securities . Real Estate Investment Trusts • • ( "REITs ") Industry Concentration Geographic Concentration • • Depositary Receipts • .. • Exposing Cash Reserves to • Securities Markets Securities "Lendin ::..::::::.: • g... Commodity Risk Infrastructure Companies . • :". Master Limited Partnerships ( "MLPs ") 'Comparisons to Performance of Broad Miarke't Returns B -66 (Additional funds are listed on the preceding page.) p b ° Wi441114 �i3� r �',� f Vdi36J „ ' � f ;� �iro�rr i { � t � 7. T. `1".94 ly I s- 's�s ..i} � `f ,� �. ��i �, . >.�" � J; > F "." d .'iP �'F� '„ r a ..,o , I s { , f „ + k � ,; *_ g i t ` 6 �' : a l i' k i � l .P S p ° y e _ ? , , -' vE 1 ,p;1 1 . , y , ! --;,:,1,,:4.1 usse 1 I ' i - m ;e f t �E Y ;�l: Ik, G aI �aRus :, : U �� N F q y ' ° ^ y p 1 Y; '�. �� d � .I r.A r•� A { : °� r t W - 1. r we ➢ f e ll d .. F 6'I i t Y d �, ! �� ii. ,I ' j '•�� ! ' � ,, � I �" 4� i e a'l� � ' `�3 �o `� ' u �4] t!isse � � Dyn a ml ctir s e GG�obal � ,i� ' , usse ��, _ " E ' r S , , e . 08„ 1 4 I r # , _. ( . y = , � H' . 4 .,,'4t °n� R ' , ... 1k:I ,.. e,J , l , iA r ; g i r :Lt I i I ^; ..'4. . ril js tater � ^ i 'bllratlo � d i 1 field a , i l u t l ; k & j`Oinnloultyi, ' ste i P '' { bso lll a ., n ` . { ,.. i ,,,, I `' S i ' = t ' eCll �l ..6. z �vt a '�,,.1,1 m 1g, { f - • 694-+4,- , . , , ; e ' - b k d ' S ' ; ; �" 4.i Fl, 5 . nt}��Tt+xl�4' 'mnit. a° � S S D h ,' „• „ , ond : - set Corer� S �rate e I r fra u 11. e turn, ixe di t ,' It a .spar TM r..5s . __ „EV a- r s._ Sli ' v k .“- i " 7 vIglis I z° ' t : r c 4 vat, L st liki e '' GREATS hICS _ 4” .,MMON 6E,111.1 0 ` a i u n nlwk l' 11ISs . __A t_ '!mod, a ; 4 ' , � a t - nn Multiple Sub Advisors Multi- Manager Approach - Risks `Relating to Short Sales • Risks Relating to the Use of Derivatives - Levera 'n Risk , r Use of Exchange Traded • Funds ( "ETFs ") _ Use of Exchange Traded Notes a b r ; _ - - - : .4 „; xi t • ( "ETNs,>) f r 7 . ., i, , ; Equity Securities • International Securities Fixed - Income Securities • Emerging Markets Debt Forward Currency Contracts • • - Real EstateSecurities • _'; Real Estate Investment Trusts S "REITs ") - • IndustryConcentration Geographic Concentration Depositary Receipts — — �_ ,- ' Exposing Cash Reserves to - • Securities Markets Securities Lending . . Commodity Risk • '.! Infrastructure Companies • Master Limited Partnerships • ( "MLPs ") Comparisons to, • of Broad Market , ,., _ . B -67 Barbara Ladue From: Barbara Ladue <ladueb @bbpdpension.com> Sent: Thursday, April 30, 2015 9:29 AM To: Kenny, Greg (KennyG @bbfl.us) Cc: Pat Holt (bsjteam @robertdklausner.com); Bonni Jensen (bonni @robertdklausner.com) Subject: Functional Capacities Exam Greg: The HealthSouth in Sunrise that will do a Functional Capacities Examination has indicated the appointment date is for May 6, 2015 at 8:00 am. This is short notice so let us know if you will be able to make this appointment. Several dates were requested for this appointment but they only provided this one date. Thanks. Barb La Due Pension Administrator Boynton Beach Police & Fire Pension Funds Phone: (561) 739.7972 1 Hp"! G KLAUSNER V KAU FM AN JENSEN Oa) LEVINSON A PARTNERSHIP OF PROFESSIONAL ASSOC ATIONS ATTORNEYS AT LAW Reply to: 400 Executive Center Drive Suite 207 West Palm Beach, Florida 33401 Telephone: (561)686 -6550 Facsimile: (561)686 -2802 bonni(a robertdklausner.com April 15, 2015 SENT VIA UPS DELIVERY Paul Kelley, Esq. Bichler, Kelley, Oliver, Longo, PLLC 541 South Orlando Avenue, Suite 310 Maitland, FL 32751 Re: Boynton Beach Police Officers' Pension Fund Gregory B. Kenny Our File Number: 0188.9012 Dear Paul: Pursuant to your letter dated April 14, 2015, confirming your continued representation of Gregory Kenny, enclosed please find the two disks of medical records as provided to Dr. Harris for Mr. Kenny's Independent Medical Examination. Also enclosed are the Independent Medical Examination reports provided to us from Dr. Worth and Dr. Harris. If you have any questions, please do not hesitate to contact me. Sin rely yours, r Bonni S. Jensen BSJ /pah cc: Barbara LaDue, Administrator (without enclosures) Chair and Secretary (without enclosures) H:\BB Police 0188 \Pad cioants \Kenny 9012 \IME\2015 -04 -15 Ltr to Paul Kelley w med disks & IME.wpd / /ll/)ttSSIU NNORTTHWEST 4TH STREET, PLANTATION, FLORIDA 33317 PHONE: (954) 916 -1202 • FAX: (954) 916 -1232 www.robertdklausner.com • Barbara Ladue From: Jock McQuilkin [ jmcquilkin @kampconsultingsolutions.com] Sent: Thursday, March 05, 2015 1:31 PM To: Iadueb @bbpdpension.com Cc: R Kamp Subject: RE: Kamp Consulting Solutions Attachments: KCS - Your Liability Consultant.pdf Good afternoon Barbara; Thank you -For being such a good listener this morning and -For your willingness to share our information with your Boynton Beach Board members. As mentioned, KCS is pioneering an effort to get DB plans more focused on the liability side of the pension equation. We have for years recognized that plans and their consultants have singularly focused on achieving the Return on Assets (ROA) as their primary objective. Unfortunately, we are aware of too many situations in which the ROA has been achieved, but the plan's - Funded status has declined and contribution costs have escalated. 2014 was another disappointing year for DB plans, but most sponsors haven't realized that because liabilities are mostly absent, if not entirely, from quarterly reviews. Why was 2014 so bad? Despite assets growing at or near the ROA, liabilities grew substantially more with the precipitous decline in US rates (estimates suggest that liabilities grew by more than 20 %). This is a similar result to that which we observed in 2011, and during the entire 1999 through 2014 period. We have attached our "Liabilities Aware" slide presentation which looks at the challenges and our firm's solutions to this pension crisis. Sincerely, Jock Jock McQuilkin, CFA Senior Consultant Kamp Consulting Solutions, LLC T: 973.509.4616 C: 404.662.9113 F: 201.670.4454 E: imcquilkin @kampconsultingsolutions.com 1 Kamp Consulting Solutions, LLC As the Liability Aware Consultant The Ultimate De- Risking Strategy Improving the Funded Ratio — Stabilizing Contribution Costs The Issue: Defined Benefit (DB) plans are disappearing at a rapid clip. According to the Department of Labor, the US retirement industry has seen the number of DB plans fall from roughly 146,000 in 1986 to fewer than 25,000 in 2014. We, at KCS, don't believe that defined contribution plans provide a similar benefit to those received through DB plans. If the decline in the use of DB plans continues, we believe that there are likely going to be significant economic, social and perhaps political consequences from their demise. Regrettably, since 1999, pension asset growth has significantly underperformed pension liability growth and the Return on Assets (ROA) causing significantly increased contribution costs, declining funded ratios and greater public scrutiny. Why Do Pension Plans Exist? Pension Plan Objective: The true objective of any pension plan is to fund their liabilities (benefit payments) at low and stable contribution costs, and with reduced risk through time. If the objective is to fund liabilities, then why do asset consultants continue to focus on the return on assets (ROA) target as the primary objective? Wrong Index Objectives: Asset allocation models, asset management and performance measurement are all focused on generic market index benchmarks (asset side of the equation), which have nothing to do with your plan's liabilities. Such index objectives misalign assets /liabilities and risk/reward behaviors. Indeed, if you outperform the ROA but lose to liabilities ... the Plan loses! Wrong Definitions: The terms Alpha, Beta and Risk need to be redefined with a liability objective as the primary focus for the Pension Board. Alpha (traditional) = the excess return vs. the index objective return. (redefined) = excess growth above your plan's liability growth (requires Custom Liability Index). Beta (traditional) = portfolio that matches the index's objective risk/reward behavior (redefined) =portfolio that matches liability risk/reward behavior (requires CLI). Risk (traditional) = the volatility of returns (Sharpe Ratio). (redefined) = the uncertainty of funding your plan's liabilities. New Sharpe Ratio requires a Custom Liability Index to accurately measure growth in liabilities. Kamp Consulting Solutions — Game Plan Becoming More Liability Aware KCS, in conjunction with Ryan ALM, has created a three -step process to enhance the evaluation of the plan's liabilities, allocate the plan's assets, and create a glide path (de- risking strategy) to achieving a fully funded status in a defined timeframe. The process begins with the creation of the Custom Liability Index (CLI). We use the output from your plan's actuarial report to produce the index. In order to build the index, we need to receive two schedules — projected benefits and projected contributions. Once this data has been received, the CLI will be constructed. Unlike a traditional actuarial valuation, which is often received every two years, delayed 6 -9 months, the CLI provides a real -time view of your plan's liabilities. Custom Liability Index (CLI): As stated above, the first step in prudent pension management is to measure and monitor the liabilities frequently and accurately (real time). Until the plan's liabilities are priced as a Custom Liability Index (CLI) the asset side is in jeopardy of managing to the wrong objectives (i.e. ROA and generic market indexes). KCS uses a CLI provided by Ryan ALM and the CLI prices liabilities in conformity to ASC 715 (providing the discount rates), PPA (both spot rates + 3- segment rates) and market rates (Treasury STRIPS). The CLI also calculates a gross and net CLI (with contributions). Only the CLI best represents the risk/reward behavior of your fund's pension liability schedule. No two pensions' liability schedules are alike due to different labor forces, salaries, mortality, and plan features. How could a static ROA or generic market indexes ever properly represent the risk/reward behavior of such a diverse array of pension liabilities? Once the CLI is installed the pension plan will now know the Funded Ratio monthly (or more frequently, if desired), which should dictate the appropriate Asset Allocation. Asset Management should focus on outgrowing liability growth (CLI). Performance Measurement should monitor assets vs. liability based on the CLI. It should all link to the CLI as an asset /liability system. Asset Allocation: The second step in becoming more liability aware is the allocation of the plan's assets. Asset Allocation should be based on the Funded Ratio. A surplus position should have a radically different asset allocation than a deficit position. The KCS asset allocation model calculates the Funded Ratio, the annual liability Alpha hurdle rate to reach full funding, and the appropriate allocation % to the Alpha/Beta assets. Liability Alpha Assets: Alpha assets are the plan's performance assets, which are managed vs. the CLI to exceed liability growth (earn Alpha) and enhance the Funded Ratio. The goal is to outgrow liabilities (relative returns) by enough to erase the deficit over a time horizon equal to the average life (duration) of liabilities and reduce contribution costs along the way. As the Alpha assets achieve the annual Alpha, such excess returns are ported over to the Beta portfolio to secure the victory. Liability Beta Assets: The core (Beta) portfolio for a pension should be in high quality bonds that match/fund liabilities (benefits) chronologically thereby buying time for the Alpha assets to outgrow liabilities and erase the deficit. The proper Beta portfolio for any liability objective should be a Liability Index Fund. This requires a Custom Liability Index in order to be executed. Performance Reporting: The final step in our three -step process is the on -going evaluation of the program. The KCS Performance Attribution Report (PAR) measures the risk/reward of the Alpha and Beta assets vs. the CLI through a series of measurements to make sure that Alpha is being earned and the Funded Ratio is on track to full funding over the desired horizon (CLI duration). Final Thoughts Can you imagine playing a football game and not knowing which offense to run or defense to play because you don't know the score? This is precisely what is happening to pension plan staffs / boards. We are asking our sponsors to manage their plans without knowledge of the score. For instance, your team has 30 points (assets) in the fourth quarter. Do you become more or less aggressive? Don't know? We are not surprised. Of course you don't know because you don't know how many points the opposition has (liabilities)! You, like a good football team, should adjust your playbook based on how many points the opposition has. We would suggest that you get more defensive if you are leading in the fourth quarter, but more aggressive if you are losing the contest. This is precisely what needs to happen with the management of pension plans. Our role as the Liability -Aware Consultant is to determine whether or not you are winning the game versus your plan's liabilities, and adjust your approach based on the findings. This approach is a de- risking strategy that should provide comfort to all of the plan's interested parties including the employees, sponsor, and the taxpayers. This approach will create a glide path to a successful outcome. Furthermore, given the unsettling environment for US interest rates, and the impact that has on traditional fixed income portfolios, we suggest that this de- risking strategy will use your current fixed income exposure more prudently, while significantly reducing the interest rate sensitivity of your portfolio. Wouldn't it be nice not to have to worry about where interest rates will trend? Our role enhances the contributions currently being received from your actuary, asset consultant and asset management team. KCS, LLC is a full- retainer asset / liability consulting firm. However, as a consultant focused exclusively on the liabilities, we work in conjunction with the Plan's general consultant and the actuary to insure that the liabilities are being given the appropriate focus. We will provide the Custom Liability Index, the Asset Allocation framework for improving the funded ratio, and performance measurement services as it relates to the liabilities, while working with the general consultant to assist in implementing any necessary changes. We can provide management of the beta portfolio, if desired. We look forward to assisting you in securing the pensions that have been promised to your plan participants. D Russell Investments Invoice Invoice for: Invoice Number Russell Client ID Billing Period Ending City of Boynton Beach Police Retirement 49950 C04616001 03/31/2015 Fund 1500 Gateway Blvd #220 Invoice Date Payment Terms Total Amount Due Boynton Beach, FL 33426 04/21/2015 Net 30 Days $ 137,952.00 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 $ 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 $ 137,952.00 $ 0.00 $ 137,952.00 Current Period Fees $ 137,952.00 $ 0.00 $ 137,952.00 Balance Forward 143,339.00 (143,339.00) 0.00 Total Amount Due $ 137,952.00 Invoice Number Invoice Date Russell Client ID Payment Terms Billing Period Ending 49950 04/21/2015 C04616001 Net 30 Days 03/31/2015 Current Period Over 30 Days Over 60 Days Over 90 Days Total Amount Due $ 137,952.00 $ 0.00 $ 0.00 $ 0.00 $ 137,952.00 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: 49950 Billing Period Ending: 03/31/2015 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 32,025,108 0.23000 73,658.00 Russell Large Cap Defensive 21,327,935 0.16500 35,191.00 Equity Fund Russell Multi- Manager Bond Fund 24,198,064 0.12250 29,643.00 Russell Real Estate Equity Fund 4,319,551 0.36250 15,658.00 Subtotal 81,870,658 $ 154,150.00 Russell Real Estate Equity Fund - Internal Fee Paid (16,198.00) Account Total $ 137,952.00 Total Investment Management Fees $ 137,952.00 Page 2 • Russell Investments MANAGER 4525 - - INVOICE NO. 1503074706 -9997 NW 6327 DATE 2015/04/27 PO BOX 1450 PAGE 1 OF 1 Minneapolis, MN 55485 -6327 US TOTAL CHARGES CURRENT PERIOD USD 921.87 9BYM- Police Officer Retirement Trust Police Officer Retirement Trust FOR 3 MONTH PERIOD 1/01/15 to 3/31/15 City of Boynton Beach DB Boynton Police & Fire Pension Fnds, 1500 Gateway Blvd,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 315 AT 1.25 393.75 Benefit Payments 9 AT 1.25 11.25 Lump Sum Payments 7 AT 10.00 70.00 Lump Sum Rollover 1 AT 15.00 15.00 BENEFIT PAYMENT: OTHER FEES Pensioners Added 1 AT 0.50 0.50 State Tax Filing 9 AT 25.00 225.00 ** SUBTOTAL FEES ** 715.50 OUT OF POCKET CHARGES POSTAGE Lump Sum Rollover 0.57 Advice of Deposit 177.84 Benefit Payment 5.13 Lump Sum 3.99 UPS DELIVERY UPS Charges 12/29/2014 6.47 UPS Charges 02/25/2015 0.03 UPS Charges 02/25/2015 6.08 UPS Charges 03/27/2015 6.26 18.84 ** SUBTOTAL OUT OF POCKET ** 206.37 CURRENT CHARGES USD 921.87 INV.# 1503074706 -9997 9BYM- Police Officer Retirement Trust 2015/04/27 LAW OFFICES OF BONNI JENSEN, P.A. April 23, 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 #73065 Dear Toby: Enclosed please find the Firm's invoice for services rendered for the period that ended 4/15/2015. Thank you for your payment of $2,263.50. Your current balance due is $2,954A6. a.. If you have any questions, please do not hesitate to contact me. Sincerely yours, s Z5‘772,2e Bonni S. Jensen Signed in Ms. Jensen's absence to expedite delivery BSJ /ig 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 April 22, 2015 In Reference To: FOR PROFESSIONAL SERVICES RENDERED AS FOLLOWS: Client / File No.: 0188 Invoice #73065 Professional Services Hrs /Rate Amount Auditor - DJC Auditor - DJC 3/16/2015 BSJ Review Engagement Agreement with DJC 0.35 78.75 E -mail to Barbara LaDue 225.00/hr Auditor - DJC SUBTOTAL: [ 0.35 78.75] DROP DROP 3/26/2015 BSJ Review Status Update re: Internal Revenue Service DROP Language 0.10 22.50 Rev. Ruling 1968 -647 & Rev. Ruling 71 -24 225.00/hr DROP SUBTOTAL: [ 0.10 22.50] Boynton Beach Police Officers' Pension Fund Page 2 Hrs /Rate Amount Financial Statements Financial Statements 3/18/2015 BSJ Review Audited Financial Statements 0.50 112.50 Financial Statements 225.00/hr SUBTOTAL: [ 0.50 112.50] Insurance Insurance 4/1/2015 BSJ Review Quotes for Insurance Renewal 0.25 56.25 E -mail to Barbara LaDue 225.00/hr E -mail to Toby Athol Insurance Insurance 4/6/2015 BSJ Telephone call with Barbara LaDue re: Insurance Selection 0.20 45.00 Insurance 225.00/hr SUBTOTAL: [ 0.45 101.25] Inv Mgr - Frank Russell Inv Mgr - Frank Russell 4/1/2015 LG E -Mail to Barbara LaDue requesting Fully Executed Allocation Certificate 0.10 7.50 and Amendment 13 75.00 /hr Inv Mgr - Frank Russell Inv Mgr - Frank Russell 4/2/2015 LG Review email from Barbara LaDue re: Copy of Fully Executed Asset 0.10 7.50 Allocation Certificate & Amendment 13 75.00 /hr Inv Mgr - Frank Russell SUBTOTAL: [ 0.20 15.00] Miscellaneous Matters Miscellaneous Matters 3/19/2015 BSJ Review HB 1279 0.06 13.50 Miscellaneous Matters 225.00/hr Boynton Beach Police Officers' Pension Fund Page 3 Hrs /Rate Amount Miscellaneous Matters 3/23/2015 BSJ Telephone call with Toby Athol 0.20 45.00 Review Plan Document re: Vested Terminated Participant & Benefit Start 225.00 /hr Miscellaneous Matters Miscellaneous Matters 4/8/2015 BSJ Review HB 341 0.35 78.75 Miscellaneous Matters 225.00/hr SUBTOTAL: [ 0.61 137.25] Participant - Davis Participant - Davis 3/30/2015 BSJ Review Subpoena 0.10 22.50 E -mail to Barbara LaDue 225.00/hr Participant - Davis SUBTOTAL: [ 0.10 22.50] Participant - Kenny Participant - Kenny 3/24/2015 BSJ Review Disability Application Status 0.20 45.00 Participant - Kenny 225.00/hr Participant - Kenny 3/25/2015 BSJ Review & Respond to email from Barbara LaDue 0.10 22.50 Participant - Kenny 225.00/hr Participant - Kenny 3/30/2015 PH E -mail to Janel with Paul Kelley's Office requesting Release to Release 0.10 7.50 Medical Records 75.00 /hr Participant - Kenny Participant - Kenny 4/10/2015 BSJ Review Dr. Harris' IME 0.50 112.50 Participant - Kenny 225.00/hr Boynton Beach Police Officers' Pension Fund Page 4 Hrs /Rate Amount Participant - Kenny 4/14/2015 BSJ Telephone call with Toby Athol 0.25 56.25 Participant - Kenny 225.00/hr Participant - Kenny BSJ Correspondence with Dr. Winner to Request Updated Medical Records & 0.50 112.50 MRI 225.00 /hr Participant - Kenny Participant - Kenny PH Fax to Dr. Winner to Request Updated Medical Records & MRI 0.10 7.50 Participant - Kenny 75.00 /hr Participant - Kenny BSJ Correspondence with Dr. Richman to Request Updated Medical Records 0.50 112.50 & MRI 225.00/hr Participant - Kenny Participant - Kenny PH Fax to Dr. Richman to Request Updated Medical Records & MRI 0.10 7.50 Participant - Kenny 75.00 /hr Participant - Kenny PH Telephone call with Dr. Harris re: Name of Doctor to Perform Functional 0.10 7.50 Capacity Exam 75,00 /hr Participant - Kenny Participant - Kenny 4/15/2015 BSJ Correspondence with Paul Kelley re: Medical Records & IME's from Dr. 0.50 112.50 Harris & Dr. Worth 225.00/hr Participant - Kenny Participant - Kenny PH E -mail to Paul Kelley & Janel Stephens re: Medical Records & IME's from 0.30 22.50 Dr. Harris & Dr. Worth 75.00 /hr Ship via UPS to Paul Kelley Participant - Kenny Participant - Kenny PH E -mail to Administrator, Chairman & Secretary re: Letter to Paul Kelley 0.10 7.50 regarding Medical Records from Dr. Harris & Dr. Worth 75.00 /hr Participant - Kenny Boynton Beach Police Officers' Pension Fund Page 5 Hrs /Rate Amount SUBTOTAL: [ 3.35 633.75] Policies - General Policies - General 3/21/2015 BSJ Review Expense Policy 0.35 78.75 Policies - General 225.00/hr Policies - General 3/31/2015 PH Revise Expense Policy per Bonni's mark up 0.20 15.00 Policies - General 75.00 /hr Policies - General 4/1/2015 BSJ Review and revise Trustee Expense Policy 0.75 168.75 Research City Code re: Expense Policy 225.00/hr Policies - General Policies - General 4/6/2015 BSJ Review and revise Expense Policy 0.25 56.25 Policies - General 225.00/hr Policies - General 4/13/2015 PH Revise Policy for Trustee Expenses 0.30 22.50 E -mail to Barbara LaDue 75.00 /hr E -mail to Trustees & Administrator re: Draft Policy Policies - General SUBTOTAL: [ 1.85 341.25] For professional services rendered 7.51 $1,464.75 Additional Charges : Bill File 4/15/2015 Copy Charges 39.60 SUBTOTAL: [ 39.60] Boynton Beach Police Officers' Pension Fund Page 6 Amount Participant - Kenny 3/6/2015 United Parcel Service Invoice No.: 0000F49280115 10.97 Tracking #1ZF492804293873122 to Billie Colton /Dr. Harris re: Medical Records 3/9/2015 United Parcel Service Invoice No.: 0000F49280115 10.97 #1ZF492 042 1 Tracking 8 9 9 9 42140 to Billie Colton /Dr. Harris re: Medical Records United Parcel Service Invoice No.: 0000F49280115 7.07 Tracking #1ZF492804291942140 Pickup Request No.: 2932A3DPD02 Re: Medical Records SUBTOTAL: [ 29.01] Total additional charges $68.61 For professional services rendered 7.51 $1,533.36 Total amount of this bill $1,533.36 Previous balance $3,684.30 Accounts receivable transactions 3/26/2015 Payment - Thank You!. Check No. 053540 ($2,263.50) Total payments and adjustments ($2,263.50) Balance due $2,954.16 LAW OFFICES OF BONNI JENSEN, P.A. March 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 #72990 Dear Toby: Enclosed please find the Firm's invoice for services rendered for the period that ended 3/15/2015. Thank you for your payment of ;08fr64. Your current balance due is $3 f lir 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 /Ig 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 March 23, 2015 In Reference To: FOR PROFESSIONAL SERVICES RENDERED AS FOLLOWS: Client! File No.: 0188 Invoice #72990 Professional Services Hrs /Rate Amount Actuarial Valuations Actuarial Valuations 3/10/2015 BSJ Review Actuarial Valuation 0.50 112.50 Actuarial Valuations 225.00/hr SUBTOTAL: [ 0.50 112.50] Insurance Insurance 2/24/2015 BSJ Review & Respond to emails from Barbara LaDue re: Insurance Renewal 0.25 56.25 Insurance 225.00 /hr SUBTOTAL: [ 0.25 56.25] Inv Mgr - Frank Russell Inv Mgr - Frank Russell 2/18/2015 BSJ Review Fee Agreement 0.25 56.25 Inv Mgr - Frank Russell 225.00 /hr Boynton Beach Police Officers' Pension Fund Page 2 Hrs /Rate Amount Inv Mgr - Frank Russell 2/23/2015 BSJ Review Asset Allocation Certificate Amend 13 0.75 168.75 E -mail to Toby Athol 225.00/hr Inv Mgr - Frank Russell SUBTOTAL: [ 1.00 225.00] Miscellaneous Matters Miscellaneous Matters 3/3/2015 BSJ Telephone call with Toby Athol re: SB172 0.10 22.50 Miscellaneous Matters 225.00/hr Miscellaneous Matters 3/9/2015 BSJ Review SB242 Amendment 0.06 13.50 E -mail to Actuaries 225.00/hr Review League of Cities Position Memorandum Miscellaneous Matters Miscellaneous Matters 3/11/2015 BSJ Review HB 1279 0.05 11.25 Miscellaneous Matters 225.00/hr SUBTOTAL: [ 0.21 47.25] Monitor /Consultants - Burgess Chambers, Associates Monitor /Consultants - Burgess Chambers, Associates 2/23/2015 LG Follow up Email to Barbara LaDue re: Chair & Secretary Signing the 0.20 15.00 Original Partially Executed Fee Addendums 75.00 /hr Monitor /Consultants - Burgess Chambers, Associates Monitor /Consultants - Burgess Chambers, Associates 2/26/2015 LG Follow up Email to Barbara LaDue re: Chair & Secretary Signing the 0.10 7.50 Original Partially Executed Fee Addendums 75.00/hr Monitor /Consultants - Burgess Chambers, Associates Monitor /Consultants - Burgess Chambers, Associates 2/27/2015 LG Review Email from Barbara LaDue re: Original Fully Executed Fee 0.10 7.50 Addendums are being Returned by UPS 75.00 /hr Monitor /Consultants - Burgess Chambers, Associates Boynton Beach Police Officers' Pension Fund Page 3 Hrs /Rate Amount Monitor /Consultants - Burgess Chambers, Associates 3/3/2015 BSJ Correspondence with Karla Engard with Burgess Chambers & Associates 0.50 112.50 re: Original Fully Executed Addendum 225.00/hr Monitor /Consultants - Burgess Chambers, Associates Monitor /Consultants - Burgess Chambers, Associates BSJ Correspondence with Karla Engard re: Original Fully Executed Fee 0.50 112.50 Addendum 225.00/hr Monitor /Consultants - Burgess Chambers, Associates Monitor /Consultants - Burgess Chambers, Associates LG E -mail to Karla Engard, Frank Wan, Barbara LaDue, Chairman & 0.30 22.50 Secretary re: Original Fully Executed Fee Addendum 75.00 /hr Ship via UPS to Karla Engard Monitor /Consultants - Burgess Chambers, Associates SUBTOTAL: [ 1.70 277.50] Participant - Kenny Participant - Kenny 2/20/2015 BSJ Correspondence with Dr. Gary Richman requesting Updated Medical 0.50 112.50 Records 225.00/hr Participant - Kenny Participant - Kenny PH Fax Letter to Dr. Gary Richman requesting Updated Medical Records 0.10 7.50 Participant - Kenny 75.00 /hr Participant - Kenny 2/24/2015 PH Scan Updated Medical Records Received from Dr. Richman 0.20 15.00 Participant - Kenny 75.00 /hr Participant - Kenny BSJ Review Updated Medical Records from Dr. Richman 0.25 56.25 Participant - Kenny 225.00/hr Participant - Kenny 3/6/2015 PH Telephone call with Dr. Harris' Office to Confirm IME 0.10 7.50 Participant - Kenny 75.00 /hr Boynton Beach Police Officers' Pension Fund Page 4 Hrs /Rate Amount Participant - Kenny 3/6/2015 BSJ Correspondence with Dr. Harris re: Medical Records Disability Notebook 0.50 112.50 & IME Forms 225.00/hr Participant - Kenny Participant - Kenny PH E -mail to Barbara LaDue & Trustees re: Letter to Dr. Harris on Reviewing 0.75 56.25 Disability Notebook & IME Forms 75.00 /hr E -mail to Paul Kelley, Barbara LaDue, & Toby Athol re: Letter to Dr. Harris with Forms Prepare Disc with Medical Records Disability Notebook Ship via UPS to Dr. Harris with Letter, Disc of Medical Records, & Forms to Perform the IME Participant - Kenny Participant - Kenny 3/9/2015 PH Redact Additional Medical Records Received from Dr. Richman 0.35 26.25 Prepare Disc with Additional Records 75.00 /hr Participant - Kenny Participant - Kenny BSJ Correspondence with Dr. Harris re: Additional Records to do the IME 0.50 112.50 Participant - Kenny 225.00/hr Participant - Kenny PH E -mail to Barbara LaDue & Trustees re: Letter to Dr. Harris on the 0.40 30.00 Additional Records 75.00 /hr E -mail to Paul Kelley, Barbara LaDue, & Toby Athol re: Letter to Dr. Harris Ship via UPS to Dr. Harris with Additional Records Participant - Kenny SUBTOTAL: [ 3.65 536.25] Plan Document Plan Document 3/4/2015 BSJ Telephone call with Toby Athol 0.20 45.00 Plan Document 225.00/hr SUBTOTAL: [ 0.20 45.00] Boynton Beach Police Officers' Pension Fund Page 5 Hrs /Rate Amount Policies - General Policies - General 3/2/2015 BSJ E -mails to Barbara LaDue re: Travel & Expense Policy 0.25 56.25 Review Fire Expense Policy 225.00/hr Policies - General SUBTOTAL: [ 0.25 56.25] Summary Plan Description Summary Plan Description 2/26/2015 BSJ E -Mail to Pete Strong re: Page Numbers for Summary Plan Description 0.06 13.50 Summary Plan Description 225.00/hr SUBTOTAL: [ 0.06 13.50] For professional services rendered 7.82 $1,369.50 Additional Charges : Bill File 3/15/2015 Fax Charges 1.50 Copy Charges 21.15 SUBTOTAL: [ 22.65] Monitor /Consultants - Burgess Chambers, Associates 2/27/2015 United Parcel Service Invoice No.: 0000F49280105 7.54 Tracking #1ZF492809096909471 from Barbara LaDue re: Original Partially Signed Addendum to Monitor Agreement 3/3/2015 United Parcel Service Invoice No.: 0000F49280105 6.97 Tracking #1ZF492800394981514 to Karla Engard re: Original Signed Fee Addendum United Parcel Service Invoice No.: 0000F49280105 7.07 Tracking #1ZF492800394981514 Pickup Request No.: 293244ODDLB Re: Original Signed Fee Addendum Boynton Beach Police Officers' Pension Fund Page 6 Amount SUBTOTAL: [ 21.58] Participant - Kenny 3/6/2015 United Parcel Service Invoice No.: 0000F49280105 7.07 Tracking #1ZF492804293873122 Pickup Request No.: 29227097K0H Re: Medical Records SUBTOTAL: [ 7.07] Total additional charges $51.30 For professional services rendered 7.82 $1,420.80 Total amount of this bill $1,420.80 Previous balance g jc' seg 5-5 Accounts receivable transactions 4 4 44g 2/26/2015 Payment - Thank You!. Check No. 053531 ! ($3 „088 :64) Total payments and adjustments ($3,088.64) Balance due $3,684.30 12ar 5g Apr. 21. 2015 11:56AM No. um/ r. 1 HEALTHSOUTH SUNRISE OUTPATIENT CENTER . FAX TRANSMITTAL SHEET TO: Pat FROM: Judy Geiger Outpatient Admission Representative • MATE: 4 -16 -15 LL FAX NUMBER: 561- 686 -280 TOTAL # OF PAGES: (including cover sheet) lte: FCE COMMENTS: The cost for an FCE self pay (no insurance ) is $682,00 • If there are problems receiving this transmittal please call; SENDER NAME: Judy Geiger SENDER. PIQNE #:. 954 - 315 -3402 SENDER FAX #: 954 - 748 -0157 CONFIDENTIALITY NOTE: The information contained in this facsimile message may be legally privileged and confidential information intended only for the use of the individual or entity named above, If the reader of this message is not the intended recipient you are hereby notified that any use dissemination distribution or copying of this information is strictly prohibited and may result in violations of federal or state law. If you have received this telecopy in error please immediately notify us by calling the telephone number above collect and destroy the original message. Thank you • HSFax.dot 4399 NOB HILL RD, SUNRISE FL 33351 4/8/03 GRS Gabriel, Roeder, Smith & Company Consultants & Actuaries One East Broward Blvd. Suite 505 Invoice Ft. Lauderdale, Honda 33301 -1804 (954) 527 -1616 Date Invoice 4/7/2015 413314 Bill To: 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 ID 38- 1691268 Client 100550 Amount For professional actuarial services rendered for the Boynton Beach Municipal Police Officers' Retirement Fund through 3/31/2015 Service purchase calculation for Justin Harris 450.00 Benefit calculation for Shane 225.00 Final charges for preparation of the 10/1/2014 Actuarial Valuation Report; total fee of 1,528.00 $13,426* less previous charges of $11,898 Preparation of Governmental Accounting Standards Board (GASB) Statement No. 67 2,500.00 Projected 9/30/2015 disclosure exhibits in conjunction with the 10/1/2014 Actuarial Valuation Report (total hourly charges were $3,578, but fee is limited to $2,500 per agreement) Preparation of page 6a for inclusion in the 2014 Annual Report to the State 550.00 Amount Due $5,253 * Last year's fee of $13,202 increased by 1.7% due to increase in CPI from September 2013 to September 2014 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. Page 1 of 1 , Davidson, Jamieson & Cristini, P.L. Invoice 1956 Bayshore Blvd. Date Invoice Dunedin, Fl 34698 4/22/2015 R7352 Phone # 727- 734 -5437 Fax # 727 - 733 -3487 Bill To CITY OF BOYNTON BEACH POLICE PENSION PLAN 1500 Gateway Blvd. Suite 220 Boynton Beach, Florida 33426 Description Amount Audit of Financial Statements for the year ended September 30, 2014 Final billing 10 300.00 Less amount previously billed 142 - 5,600.00 49 - Total $4,700.00 Payments /Credits $0.00 Balance Due $4,700.00 Terms: Invoices are due and payable upon receipt. Any amounts remaining unpaid after 30 days will be assessed a Service Charge equal to 1% per month (12% per annum). Minimum monthly service charge is $5.00 08:7411 . Davidson, Jamieson & Cristini, P.L. Invoice 1956 Bayshore Blvd. Date Invoice # Dunedin, Fl 34698 4/22/2015 R7353 Phone # 727- 734 -5437 Fax # 727- 733 -3487 Bill To CITY OF BOYNTON BEACH POLICE PENSION PLAN 1500 Gateway Blvd. Suite 220 Boynton Beach, Florida 33426 Description Amount Preparation of the Plan's 2014 Annual Report for the Florida Division of 1,200.00 Retirement Total $1,200.00 Payments /Credits $0.00 Balance Due $1,200.00 Terms: Invoices are due and payable upon receipt. Any amounts remaining unpaid after 30 days will be assessed a Service Charge equal to 1% per month (12% per annum). Minimum monthly service charge is $5.00 PROFESSIONAL INDEMNITY AGENCY, INC. 37 RADIO CIRCLE DRIVE MOUNT KISCO, NY 10549 TO: CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT FUND RE: U. S. SPECIALTY INSURANCE COMPANY $2,000,000 LIMIT OF LIABILITY, $25,000 DEDUCTIBLE Renewal of Policy #U714 -51484 — 4/10/15- 4/10/16 PREMIUM $16,345.00 WAIVER OF RECOURSE 100.00 6fpski- 705 $16,445.00 tig Please make check payable to: PROFESSIONAL INDEMNITY AGENCY, INC. and mail to: TRUSTEE AND FIDUCIARY INSURANCE SERVICES, INC. 3810 Inverrary Boulevard, Suite 303 Lauderhill, FL 33319 THANK YOU. • ct, CC 11111r H US. Specialty Insurance Company Houston, Texas DECLARATIONS CORPORATE. FIDUCIARY' LIABILITY INSURANCE Li V (THIS IS A CLAIMS MADE AND REPORTED POLICY) Broker: 1. 7•i Policy Numbem11.7111.1 Trustee and Fi.duciary. Insurance Renewal of:U714-5148.4 Services, Ric IteM1, EMPLOYEE.BENEFitKANS:: Any Plan of thaSPONSORORGANIZATION Listed in item 2 as Definedin:Section 3(1) of ERMA; any INSURED PLAN and any Flan Listed by., Endorsement to this Policy. Item 2: SPONSOR ORGANIZATION City of BOylateil. Beath Item 3 Address of.SPONSOR ORGANIZATION': 15:010 Gateway ard uite an R.OVITtClt BeaCh,FI, .3342 it Iten4 POLICY PERIOD: inception Dato ApTil 10., 2015 Expiratiott APXil t� i „ 2c0.6 12:01 a.rn. Standard Time at.the Principal Address &the SPONSOR herein.: Item .5 Limit or *Liability: $ pot Each CLAIM andinthOLAggregatefOr all CLAIMS including, DEFENSE COSTS. Item 6 Deductible: $ 25 Each CLAIM including DEFENSE COSTS. Item 7 Premium: $ 1 61 Recourse - Premium a Int A:0 Total Premium. 16 Item 8 Form 'numbers of endorsements attached at issuance. , FI40O02 ETRIA, 1 .P4000 .Ft.0007„ FT.Q010, FLQO11, FL,Ct018„ FL044, F1,200.:64 EL2.010, .FL2D 14, F12036, FliciANLIOI FI,MANTJO2 S Atithofged Representative. FL000;1 -MO/011 Pam. oil TRUSTEE and FIDUCIARY INSURANCE SERVICES, INC. 3810 Inverrary Boulevard, Suite 303 Lauderhill, FL 33319 March 30, 2015 ' � C Zi To: Barbara LaDue, Pension Administrator Boynton Beach Police Retirement Fund 4 Re: Trustee Liability Renewal Barbara, we solicited bids from three companies who specialize in this type of coverage that are rated A +- Superior by A.M. Best. The results are as follows: O L 4 U. S. SPECIALTY (carrier providing coverage for the Plan since April 10, 2003) Limit of Liability $2,000,000, Retention (Deductible) $25,000, including Waiver of r i Recourse - Total Premium $16,445.00 P 2 741 +` s, Claims that are currently unknown and unreported that date back to 4/10/2003 are eligible for coverage. This is known as the Pending and Prior Litigation date. The defense costs to date in connection with the Epstein claim total $10,301.60. As you know, no dollar amounts for the claim itself were paid. HUDSON INSURANCE COMPANY Limit of Liability $2,000,000, Retention (Deductible) $25,000, including Waiver of Recourse Total Premium $13,846.00 Hudson will meet the Pending and Prior Litigation date of 4/10/2003. RLI CORP. RLI has declined to quote as the Plan's Funded Ratio does not meet its minimum level. Thank you very much for allowing us to obtain these proposals for the Trustees of the Boynton Beach Police Retirement Plan. Carolyn I. Furlong, CPCU, CLU, CEBS CIFurlong @aol.com EUCLID SPECIALTY INSURANCE GROUP 4323 WARREN STREET, N.W. WASHINGTON, DC 20015 TO: CITY OF HOMESTEAD MUNICIPAL POLICE OFFICERS' RETIREMENT FUND RE: HUDSON INSURANCE COMPANY $2,000,000 LIMIT OF LIABILITY, $25,000 DEDUCTIBLE New Policy — 4/10/15 - 4/10/16 PREMIUM $13,721.00 WAIVER OF RECOURSE 125.00 $13,846.00 Please make check payable to: TRUSTEE AND FIDUCIARY INSURANCE SERVICES, INC. and mail to: 3810 Inverrary Boulevard, Suite 303 Lauderhill, FL 33319 THANK YOU. Barbara Ladue From: ClFurlong @aol.com Sent: Tuesday, March 31, 2015 12:20 PM To: ladueb @bbpdpension.com Subject: Police Trustee Insurance Renewal Attachments: HUDSON INS. CO. - Boynton Beach Police (2015).doc; PROFESSIONAL INDEMNITY AGENCY Boynton Beach Police $25k ded.(2015).doc; TAFIS Boynton Beach Police Proposals 2015.doc Attached you will find a summary I have prepared for the Trustee insurance renewal. Although the Hudson proposal is somewhat less than the U.S. Specialty, there is something to be said for the continuity of staying with the same carrier. However, if the Trustees want to make a change, I will see that it will go smoothly. Thanks, Carolyn Carolyn 1. Furlong, CPCU, CLU, CEBS Trustee and Fiduciary Insurance Services, Inc. 3810 Inverrary Boulevard, Suite 302 Lauderhill, FL 33319 (305) 823 -0950 1 BOYNTON BEACH POLICE OFFICERS' PENSION FUND STATEMENT OF POLICY FOR TRUSTEE EXPENSES WHEREAS, the Trustees of the Boynton Beach Police Officers' Pension Fund ( "Trustees ") attend conferences, seminars, and meetings ( "conferences ") and otherwise engage in services necessary to perform their duties for the Boynton Beach Police Officers' Pension Fund ( "Plan "); and WHEREAS, the Trustees desire to adopt a Statement of Policy regarding Trustee conference expenses consistent with their fiduciary duties and all applicable laws; NOW, THEREFORE, it is hereby resolved that the following Statement of Policy Regarding Trustee Expenses is hereby adopted. I. GENERAL CONSIDERATIONS A. A Trustee shall be reimbursed only for expenses properly and actually incurred in the performance of his or her duties with the Plan. B. A Trustee shall not be reimbursed for any expenses for which he or she had been paid or is due payment from any other source. A Trustee shall not be reimbursed for any expenses which would result in double payment. C. Trustee expenses shall be reasonable in amount and necessarily incurred, taking into account the area of the country where the expense is incurred and the standards for business expenses allowable by the Internal Revenue Code. 1 D. The Board of Trustees shall approve all reimbursements for expenses in accordance with this Statement of Policy. E. This Statement of Policy shall be interpreted in accordance with the provisions of Fla. Stat. §112.061 and the Internal Revenue Code Beach Code of Ordinances, Article 1, Section F. Trustees are encouraged to attend pension conferences sponsored by NCPERS, FPPTA, the State of Florida, Frank Russell Company, NAPO, attendance at training with Opal Finance, and FPPTA approved outside continuing educational conferences such as NPEA and International Foundation of Employee Benefit Plans. Trustees' attendance at these conferences do not require prior approval. All other conferences require prior approval of the Board of Trustees 11. TRAVEL EXPENSES Trustees are entitled to payment for the actual costs incurred for: A. Air: Tourist Class airfare. B. Personal Can. Miles traveled times fifty -seven eight and one -half cents ($0.5785) per mile, or the IRS standard mileage rate, whichever is greater, subject to the maximum payable if the Trustee could have traveled by air. If more than one Trustee travels in the same car, reimbursement shall be made to the Trustee who incurs the expense. C. Other Means of Travel: Actual cost incurred on a common carrier, subject to the maximum payable if the Trustee could have traveled by air. 2 D. Rental Cars: Actual cost incurred for car rental plus reimbursement for gas expenditures, subject to the maximum payable if the Trustee could have traveled by air. No travel expenses shall be allowed if the Trustee is transported without charge. III. LODGING EXPENSES Trustees are entitled to reimbursement for actual costs incurred for lodging based on a single occupancy rate. IV. FOOD AND OTHER EXPENSES Trustees are entitled to reimbursement for actual costs incurred subject to the maximum amount allowable by this policy ' _ : _ , - 6 : - _ - - I:- _ = - The daily rate of reimbursement for out -of- pocket expenses and meals shall be $60 per day, exclusive of lodging, transportation, parking, tolls, or similar verified expenses. Included within the daily rate shall be reasonable gratuities, and tele • hone calls but the • er diem shall not include reimbursement for • ersonal expenses such as recreation charges, movies, etc. This per diem shall be adjusted annually for inflation at a rate of 3% per year, beginning January 1, 2016. All expenditures shall require a receipt in order to be reimbursed. Breakfast - $ 13.00 Lunch - $12.00 Dinner - $20.00 V. OTIIER EXPENSES - -, • ':: -, :::: : •- -- • , - _ =_ : 3 - - ; , - - - : . - : i 6 - 6 - - - - -- : - : -- • -- - ---- - - -- • - -- VVF. PER DIEM In lieu of all other payment for subsistence (including Lodging, Food and Other Expenses), a Trustee traveling overnight shall be entitled to receive $50.00 per diem, plus Travel and Conference Expenses. If travel is overnight but less than 24 hours, then $12.50 shall be paid for each six (6) hours, or fraction thereof, of the day, measured from midnight to midnight. VIV4I. CONFERENCE EXPENSES Convention registration fees and other actual and necessary fees for attending events which are not included in a basic registration fee, such as banquets are reimburs- able. If meals or lodging are included in the registration fee, the Trustee will not be entitled to be reimbursed for such expenses separately, and the per diem shall be reduced. VIIV+FF. DAYS FOR WHICH REIMBURSEMENT IS PAYABLE A. A Trustee shall be entitled to reimbursement while attending any conference and for direct travel to and from the point of origin and the point of destination, not to exceed one day of travel each way before and after the conference, unless it is not practical to complete the travel in one day. B. A Trustee shall not be entitled to any expense incurred as a result of any trips or personal expenditures outside the scope of his or her direct travel route on behalf of the Plan. 4 VIIN*. ACCOUNTING FOR EXPENSES A. A Trustee must submit an expense voucher for all expenses incurred, including per diem, within thirty (30) days after incurring the expense, on a form approved by the Board of Trustees. The approved Trustee Expense Voucher form is attached hereto. A copy of the Program or Agenda of the conference must be attached to the completed Trustee Expenses Voucher. B. per t for reimbursement for er diem, a Trustee must attach invoices, receipts or other written documentation to the completed Trustee Expense Voucher. Receipts are required for each expense in excess of $25.00. If any receipt includes amounts not subject to reimbursement (e.g., for a Trustee's spouse), the receipt should so indicate and be reduced accordingly. C. For any conference where a certificate of attendance is issued, a Trustee must earn such a certificate in order to be reimbursed for expenses, unless the Trustee's absence is the result of illness or other good cause. D. The Certified Public Accountant for the Plan shall audit all Trustees expenses on an annual basis. The Certified Public Accountant shall notify the Board of Trustees if any expenses for Trustees do not comply with this Statement of Policy regarding Trustee Expenses. IXX. ADVANCES A. A Trustee may receive an advance to cover the expenses to be properly and actually incurred in the immediate future. However, a copy of the Program or Agenda for the conference must be provided before the advance is paid, itemizing the registration fee and any meals or lodging included in the registration fee. 5 B. A Trustee shall promptly return to the Plan any amount advanced which exceeds the expenses incurred. C. A Trustee shall be entitled to reimbursement for expenses incurred in excess of the advance, but consistent with this Statement of Policy, and subject to approval by the Trustees. X*F. DIRECT PAYMENT OF EXPENSES The Fund's Administrative Manager is authorized to make direct payment of conference, lodging and transportation fees on behalf of a Trustee. THIS STATEMENT OF POLICY REGARDING TRUSTEE EXPENSES is adopted effective , by the Trustees of the Boynton Beach Police Officers' Pension Fund this day of , 2015. TRUSTEES Witnessed by: BSJ /pah H: \BB Police 0188 \Policies \EXP \2015 EXP POLICY (draft).wpd 6 KLAUSNER KAUFMAN JENSEN (Z)_, LEVINSON A PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS ATTORNEYS AT LAW MEMORANDUM TO: Board of Trustees BOYNTON BEACH POLICE OFFICERS' PENSION FUND FROM: Bonni S. Jensen Fund Legal Counsel DATE: May, 2015 RE: ANNUAL FORM 1 FILING Attached is Commission on Ethics (CE) Form 1 "Statement of Financial Interests" which must be filed by Trustees with the Supervisor of Elections for the county in which you reside, prior to July 1, 2015. The instructions for filing and completing the form are also attached. Please be sure to review them again as they were updated last year. Remember that your CPA or personal attorney can complete this Form 1 for you. Please note that it is recommended that current or former law enforcement officers and firefighters do not use their home addresses on the form; if you do not have a post office box, you may use your work address. You may also complete the form online using your keyboard to fill in the information, tabbing from one section to the next. However, you must print the completed form (just pages 1 and 2), sign and date it, then send it to the Supervisor of Elections for the county in which you reside. There is no current system available to file online. It is important that you timely file this form because the penalty for failure to timely file is $25.00 per day, to a maximum of $1,500.00. I suggest that you file this form by certified mail, return receipt requested, and keep a photo copy of the form for your files. Several Trustees have had to show proof of filing in the past, so it is my practice to always get a receipt for such documents. If you have any questions or if I may be of any assistance to you at all, please do not hesitate to contact me or one of my assistants. BSJ /Ig E -Copy: Administrator 7080 NORTHWEST 4TH STREET, PLANTATION, FLORIDA 33317 PHONE: (954) 916 -1202 • FAX: (954) 916 -1232 www.robertdklausner.com FORM 1 STATEMENT OF 2014 Please print or type your name, mailing FINANCIAL INTERESTS I FOR OFFICE USE ONLY: address, agency name, and position below: LAST NAME -- FIRST NAME -- MIDDLE NAME : MAILING ADDRESS : CITY : ZIP : COUNTY : NAME OF AGENCY NAME OF OFFICE OR POSITION HELD OR SOUGHT : You are not limited to the space on the lines on this form. Attach additional sheets, if necessary. CHECK ONLY IF ❑ CANDIDATE OR ❑ NEW EMPLOYEE OR APPOINTEE *'F ** BOTH PARTS OF THIS SECTION MUST BE COMPLETED * * ** DISCLOSURE PERIOD: THIS STATEMENT REFLECTS YOUR FINANCIAL INTERESTS FOR THE PRECEDING TAX YEAR, WHETHER BASED ON A CALENDAR YEAR OR ON A FISCAL YEAR. PLEASE STATE BELOW WHETHER THIS STATEMENT IS FOR THE PRECEDING TAX YEAR ENDING EITHER (must check one): ❑ DECEMBER 31, 2014 OR ❑ SPECIFY TAX YEAR IF OTHER THAN THE CALENDAR YEAR: MANNER OF CALCULATING REPORTABLE INTERESTS: FILERS HAVE THE OPTION OF USING REPORTING THRESHOLDS THATARE ABSOLUTE DOLLAR VALUES, WHICH REQUIRES FEWER CALCULATIONS, OR USING COMPARATIVE THRESHOLDS, WHICH ARE USUALLY BASED ON PERCENTAGE VALUES (see instructions for further details). CHECK THE ONE YOU ARE USING: ❑ COMPARATIVE (PERCENTAGE) THRESHOLDS OR ❑ DOLLAR VALUE THRESHOLDS PART A -- PRIMARY SOURCES OF INCOME [Major sources of income to the reporting person - See instructions] (If you have nothing to report, write "none" or "n /a ") NAME OF SOURCE SOURCE'S DESCRIPTION OF THE SOURCES OF INCOME ADDRESS PRINCIPAL BUSINESS ACTIVITY PART B — SECONDARY SOURCES OF INCOME [Major customers, clients, and other sources of income to businesses owned by the reporting person - See instructions] (If you have nothing to report, write "none" or "n /a ") NAME OF NAME OF MAJOR SOURCES ADDRESS PRINCIPAL BUSINESS BUSINESS ENTITY OF BUSINESS' INCOME OF SOURCE ACTIVITY OF SOURCE PART C -- REAL PROPERTY [Land, buildings owned by the reporting person - See instructions] (If you have nothing to report, write "none" or "n /a ") FILING INSTRUCTIONS for when and where to file this form are located at the bottom of page 2. INSTRUCTIONS on who must file this form and how to fill it out begin on page 3. CE FORM 1 - Effective: January 1, 2015 (Continued on reverse side) PAGE 1 Adopted by reference in Rule 34-8.202(1), F.A.C. PART D — INTANGIBLE PERSONAL PROPERTY [Stocks, bonds, certificates of deposit, etc. - See instructions] (If you have nothing to report, write "none" or "n /a ") TYPE OF INTANGIBLE BUSINESS ENTITY TO WHICH THE PROPERTY RELATES PART E — LIABILITIES [Major debts - See instructions] (If you have nothing to report, write "none" or "n /a ") NAME OF CREDITOR ADDRESS OF CREDITOR PART F — INTERESTS IN SPECIFIED BUSINESSES [Ownership or positions in certain types of businesses - See instructions] (If you have nothing to report, write "none" or "n /a ") BUSINESS ENTITY # 1 BUSINESS ENTITY # 2 NAME OF BUSINESS ENTITY ADDRESS OF BUSINESS ENTITY PRINCIPAL BUSINESS ACTIVITY POSITION HELD WITH ENTITY I OWN MORE THAN A 5% INTEREST IN THE BUSINESS NATURE OF MY OWNERSHIP INTEREST IF ANY OF PARTS A THROUGH F ARE CONTINUED ON A SEPARATE SHEET, PLEASE CHECK HERE ❑ SIGNATURE OF FILER: CPA or ATTORNEY SIGNATURE ONLY If a certified public accountant licensed under Chapter 473, or Signature: attorney in good standing with the Florida Bar prepared this form for you, he or she must complete the following statement: , prepared the CE Form 1 in accordance with Section 112.3145, Florida Statutes, and the instructions to the form. Upon my reasonable knowledge and belief, the disclosure herein is true and correct. Date Signed: CPA /Attorney Signature: Date Signed: FILING INSTRUCTIONS: WHAT TO FILE: WHERE TO FILE: WHEN TO FILE: After completing all parts of this form, including If you were mailed the form by the Commission Initially, each local officer /employee, state officer, signing and dating it, send back only the first on Ethics or a County Supervisor of Elections for and specified state employee must file within sheet (pages 1 and 2) for filing. your annual disclosure filing, return the form to 30 days of the date of his or her appointment that location. or of the beginning of employment. Appointees If you have nothing to report in a particular Local officers /employees file with the who must be confirmed by the Senate must file section, you must write "none" or "n /a" in that Supervisor of Elections of the county in which they prior to confirmation, even if that is less than section(s). permanently reside. (If you do not permanently 30 days from the date of their appointment. reside in Florida, file with the Supervisor of the Candidates for publicly - elected local office must NOTE: county where your agency has its headquarters.) file at the same time they file their qualifying MULTIPLE FILING UNNECESSARY: papers. State officers or specified state employees Thereafter, local officers/employees, state A candidate who previously filed Form 1 because file with the Commission on Ethics, P.O. Drawer of another public position must at least file a copy 15709, Tallahassee, FL 32317 5709; physical officers, and specified state employees are win each his or her original Form 1 when qualifying. A address: 325 John Knox Road, Building E, Suite to file b te required by July 1 st folio e c g h calendar candidate who files a Form 1 with a qualifying 200, Tallahassee, FL 32303. year in which they hold their positions. officer is not required to file with the Commission Finally, at the end of office or employment, each or Supervisor of Elections. Candidates file this form together with their local officer /employee, state officer, and specified qualifying papers. state employee is required to file a final disclosure To determine what category your position falls form (Form 1 F) within 60 days of leaving office or under, see the "Who Must File" Instructions on employment. However, filing a CE Form 1F (Final page 3. Statement of Financial Interests) does not relieve Facsimiles will not be accepted. the filer of filing a CE Form 1 if he or she was in their position on December 31, 2014. CE FORM 1 - Effective. January 1, 2015. PAGE 2 Adopted by reference in Rule 34- 8.202(1), FA C. NOTICE Annual Statements of Financial Interests are due July 1. If the annual form is not filed or postmarked by September 1, an automatic fine of $25 for each day late will be imposed, up to a maximum penalty of $1,500. [s. 112.3145, F.S. - applicable to non - judicial officials] Failure to file also can result in removal from public office or employment. [Ch. 2014 -183, Laws of Florida] In addition, failure to make any required disclosure constitutes grounds for and may be punished by one or more of the following: disqualification from being on the ballot, impeachment, removal, or suspension from office or employment, demotion, reduction in salary, reprimand, or a civil penalty not exceeding $10,000. [s. 112.317, F.S.] WHO MUST FILE FORM 1: 1) Elected public officials not serving in a political subdivision of the municipal attomey; chief county or municipal building inspector; county state and any person appointed to fill a vacancy in such office, unless or municipal water resources coordinator; county or municipal pollution required to file full disclosure on Form 6. control director; county or municipal environmental control director; county 2) Appointed members of each board, commission, authority, or or municipal administrator with power to grant or deny a land development council having statewide jurisdiction, excluding members of solely advisory permit; chief of police; fire chief; municipal clerk; appointed district school bodies, but including judicial nominating commission members; Directors superintendent; community college president; district medical examiner; of Enterprise Florida, Scripps Florida Funding Corporation, and Workforce purchasing agent (regardless of title) having the authority to make any Florida; and members of the Council on the Social Status of Black Men purchase exceeding $20,000 for the local governmental unit. and Boys; the Executive Director, Governors, and senior managers of 8) Officers and employees of entities serving as chief administrative Citizens Property Insurance Corporation; Govemors and senior managers officer of a political subdivision. of Florida Workers' Compensation Joint Underwriting Association; board 9) Members of goveming boards of charter schools operated by a members of the Northeast Fla. Regional Transportation Commission; city or other public entity. members of the board of Triumph Gulf Coast, Inc; members of the board 10) Employees in the office of the Governor or of a Cabinet member of Florida Is For Veterans, Inc.; and members of the Technology Advisory who are exempt from the Career Service System, excluding secretarial, Council within the Agency for State Technology. clerical, and similar positions. 3) The Commissioner of Education, members of the State Board of 11) The following positions in each state department, commission, Education, the Board of Governors, and the local Boards of Trustees and board, or council: Secretary, Assistant or Deputy Secretary, Executive Presidents of state universities. Director, Assistant or Deputy Executive Director, and anyone having the 4) Persons elected to office in any political subdivision (such as power normally conferred upon such persons, regardless of title. municipalities, counties, and special districts) and any person appointed 12) The following positions in each state department or division: to fill a vacancy in such office, unless required to file Form 6. Director, Assistant or Deputy Director, Bureau Chief, Assistant Bureau 5) Appointed members of the following boards, councils, Chief, and any person having the power normally conferred upon such commissions, authorities, or other bodies of county, municipality, school persons, regardless of title. district, independent special district, or other political subdivision: the 13) Assistant State Attorneys, Assistant Public Defenders, criminal goveming body of the subdivision; community college or junior college conflict and civil regional counsel, and assistant criminal conflict and civil district boards of trustees; boards having the power to enforce local code regional counsel, Public Counsel, full -time state employees serving as provisions; boards of adjustment; planning or zoning boards having the counsel or assistant counsel to a state agency, administrative law judges, power to recommend, create, or modify and planning or zoning within and hearing officers. a political subdivision, except for citizen advisory committees, technical 14) The Superintendent or Director of a state mental health institute coordinating committees, and similar groups who only have the power established for training and research in the mental health field, or any to make recommendations to planning or zoning boards; pension or major state institution or facility established for corrections, training, retirement boards empowered to invest pension or retirement funds treatment, or rehabilitation. or determine entitlement to or amount of pensions or other retirement 15) State agency Business Managers, Finance and Accounting benefits. Directors, Personnel Officers, Grant Coordinators, and purchasing agents 6) Any appointed member of a local government board who is (regardless of title) with power to make a purchase exceeding $20,000. required to file a statement of financial interests by the appointing authority 16) The following positions in legislative branch agencies: each or the enabling legislation, ordinance, or resolution creating the board. employee (other than those employed in maintenance, clerical, 7) Persons holding any of these positions in local government: secretarial, or similar positions and legislative assistants exempted mayor; county or city manager; chief administrative employee or finance by the presiding officer of their house); and each employee of the director of a county, municipality, or other political subdivision; county or Commission on Ethics. INSTRUCTIONS FOR COMPLETING FORM 1• INTRODUCTORY INFORMATION (At Top of Form): PUBLIC RECORD: The disclosure form and everything attached to it is a public record. Your Social Security Number is not required and you If your name, mailing address, public agency, and position are already should redact it from any documents you file. If you are an active or printed on the form, you do not need to provide this information unless former officer or employee listed in Section 119.071(4)(d), F.S., whose it should be changed. To change any of this information, write the home address is exempt from disclosure, the Commission is required to correct information on the form, and contact your agency's financial maintain the confidentiality of your home address if you submit a written disclosure coordinator. Your coordinator is identified in the financial request for confidentiality. Persons listed in Section 119.071(4)(d), F.S., disclosure portal on the Commission on Ethics website: www.ethics. are encouraged to provide an address other than their home address. state.fl. us. DISCLOSURE PERIOD: The tax year for most individuals is the NAME OF AGENCY: This should be the name of the governmental calendar year (January 1 through December 31). If that is the case unit which you serve or served, by which you are or were employed, for you, then your financial interests should be reported for the or for which you are a candidate. calendar year 2014; just check the box and you do not need to add OFFICE OR POSITION HELD OR SOUGHT: Use the title of the office any information in this part of the form. However, if you file your IRS or position you hold, are seeking, or held during the disclosure period tax return based on a tax year that is not the calendar year, you even if you have since left that position. If you are a candidate for office should spec the dates of your tax year in this portion of the form or are a new employee or appointee, check the appropriate box. and check the appropriate box. This is the time frame or "disclosure period" for your report. CE FORM 1 - Effective: January 1, 2015. Adopted by reference in Rule 34- 8.202(1), F.A.C. PAGE 3 MANNER OF CALCULATING REPORTABLE INTEREST As noted on the form, filers have the option of reporting based on either thresholds that are comparative (usually, based on percentage values) or thresholds that are based on absolute dollar values. The instructions on the following pages specifically describe the different thresholds. Check the box that reflects the choice you have made. You must use the type of threshold you have chosen for each part of the form. In other words, if you choose to report based on absolute dollar value thresholds, you cannot use a percentage threshold on any part of the form. IF YOU HAVE CHOSEN DOLLAR VALUE THRESHOLDS THE FOLLOWING INSTRUCTIONS APPLY PART A - PRIMARY SOURCES OF INCOME (1) You owned (either directly or indirectly in the form of an equitable or beneficial interest) during the disclosure period more than 5% of the total [Required by s. 112.3145(3)(a)1 or (b)1, F.S.] assets or capital stock of a business entity (a corporation, partnership, Part A is intended to require the disclosure of your principal sources LLC, limited partnership, proprietorship, joint venture, trust, firm, etc., of income during the disclosure period. You do not have to disclose the doing business in Florida); and amount of income received, and you need not list your public salary from (2) You received more than $5,000 of your gross income during the serving in the position(s) which requires you to file this form. The income disclosure period from that business entity. of your spouse need not be disclosed; however, if there is joint income If your interests and gross income exceeded these thresholds, then for that or you and your spouse from you own join (such as interest business entity you must list every source of income to the business entity source dividends should which exceeded 10% of the business entity's gross income (computed on sourrcce of that from a bank accoount unt o or stocks), at income if it exceeded the threshold. ks), you sh houlld d disclose the the basis of the business entity's most recently completed fiscal year), the Please list in this part of the form the name, address, and principal source's address, and the source's principal business activity. business activity of each source of your income which exceeded $2,500 Examples: of gross income received by you in your own name or by any other person for your use or benefit. — You are the sole proprietor of a dry cleaning business, from which "Gross income" means the same as it does for income tax you received more than $5,000. If only one customer, a uniform rental purposes, even if the income is not actually taxable, such as interest company, provided more than 10% of your dry cleaning business, you on tax -free bonds. Examples include: compensation for services, must list the name of the uniform rental company, its address, and its income from business, gains from property dealings, interest, rents, principal business activity (uniform rentals). dividends, pensions, IRA distributions, social security, distributive share — You are a 20% partner in a partnership that owns a shopping mall of partnership gross income, and alimony, but not child support. and your partnership income exceeded the thresholds listed above. You Examples: should list each tenant of the mall that provided more than 10% of the partnership's gross income, the tenant's address and principal business — If you were employed by a company that manufactures activity. computers and received more than $2,500, then you should list the name of the company, its address, and its principal business activity PART C - REAL PROPERTY (computer manufacturing). — If you were a partner in a law firm and your distributive share [Required by s. 112.3145(3)(a)3 or (b)3, F.S.] of partnership gross income exceeded $2,500, then you should list In this part, list the location or description of all real property in Florida the name of the firm, its address, and its principal business activity in which you owned directly or indirectly at any time during the previous tax (practice of law). year in excess of 5% of the property's value. You are not required to list your residences and vacation homes. — If you were the sole proprietor of a retail gift business and your gross income from the business exceeded $2,500, then you should Indirect ownership includes situations where you are a beneficiary of a list the name of the business, its address, and its principal business trust that owns the property, as well as situations where you are more than activity (retail gift sales). a 5% partner in a partnership or stockholder in a corporation that owns the property. The value of the property may be determined by the most recently — If you received income from investments in stocks and bonds, assessed value for tax purposes, in the absence of a more current appraisal. you are required to list only each individual company from which you derived more than $2,500, rather than aggregating all of your The location or description of the property should be sufficient to enable investment income. anyone who looks at the form to identify the property. A street address should be used, if one exists. — If more than $2,500 of your gross income was gain from the sale of property (not just the selling price), then you should list as PART D - INTANGIBLE PERSONAL PROPERTY a source of income the name of the purchaser, the purchaser's [Required by s. 112.3145(3)(a)3 or (b)3, F.S.] address, and the purchaser's principal business activity. If the purchaser's identity is unknown, such as where securities listed Describe any intangible personal property that, at any time during the on an exchange are sold through a brokerage firm, the source disclosure period, was worth more than $10,000 and state the business of income should be listed simply as "sale of (name of company) entity to which the property related. Intangible personal property includes stock," for example. things such as cash on hand, stocks, bonds, certificates of deposit, vehicle — If more than $2,500 of your gross income was in the form of leases, interests in businesses, beneficial interests in trusts, money owed interest from one particular financial institution (aggregating interest you, Deferred Retirement Option Program (DROP) accounts, the Florida from all CD's, accounts, etc., at that institution), list the name of the Prepaid College Plan, and bank accounts. Intangible personal property institution, its address, and its principal business activity. also includes investment products held in IRAs, brokerage accounts, and the Florida College Investment Plan. Note that the product contained in PART B - SECONDARY SOURCES OF INCOME a brokerage account, IRA, or the Florida College Investment Plan is your asset —not the account or plan itself. Things like automobiles and houses [Required by s. 112.3145(3)(a)2 or (b)2, F.S.] you own, jewelry, and paintings are not intangible property. Intangibles This part is intended to require the disclosure of major customers, clients, relating to the same business entity may be aggregated; for example, CDs and other sources of income to businesses in which you own an interest. It and savings accounts with the same bank. Property owned as tenants by is not for reporting income from second jobs. That kind of income should be the entirety or as joint tenants with right of survivorship should be valued at reported as "Primary Sources of Income," if it meets the reporting threshold. 100 %. The value of a leased vehicle is the vehicle's present value minus the You will not have anything to report unless, during the disclosure period: lease residual (a number found on the lease document). CE FORM 1 - Effective: January 1, 2015 . Adopted by reference in Rule 34- 8202(1), F.A.C.. PAGE 4 PART E - LIABILITIES licensees; pari - mutuel wagering companies, utility companies, [Required by s. 112.3145(3)(a)4 or (b)4, F.S.] entities controlled by the Public Service Commission; and entities granted a franchise to operate by either a city or a county List the name and address of each creditor to whom you owed government. more than $10,000 at any time during the disclosure period. The You are required to disclose in this part of the form the fact that amount of the liability of a vehicle lease is the sum of any past- you owned during the disclosure period an interest in, or held any due payments and all unpaid prospective lease payments. You of certain positions with, particular types of businesses listed above. are not required to list the amount of any debt. You do not have You are required to make this disclosure if you own or owned (either to disclose credit card and retail installment accounts, taxes owed directly or indirectly in the form of an equitable or beneficial interest) (unless reduced to a judgment), indebtedness on a life insurance at any time during the disclosure period more than 5% of the total policy owed to the company of issuance, or contingent liabilities. assets or capital stock of one of the types of business entities listed A contingent liability" is one that will become an actual liability above. You also must complete this part of the form for each of these only when one or more future events occur or fail to occur, such types of businesses for which you are, or were at any time during as where you are liable only as a guarantor, surety, or endorser the disclosure period, an officer, director, partner, proprietor, or agent on a promissory note. If you are a "co- maker" and have signed as (other than a resident agent solely for service of process). being jointly liable or jointly and severally liable, then this is not a contingent liability. If you have or held such a position or ownership interest in one of these types of businesses, list the name of the business, its PART F - INTERESTS IN SPECIFIED BUSINESSES address and principal business activity, and the position held with [Required by s. 112.3145(5), F.S.] the business (if any). If you own(ed) more than a 5% interest in the The types of businesses covered in this disclosure include: state business, you must indicate that fact and describe the nature of your yp interest. and federally chartered banks; state and federal savings and loan associations; cemetery companies; insurance companies; mortgage (End of Dollar Value Thresholds Instructions.) companies; credit unions; small loan companies; alcoholic beverage IF YOU HAVE CHOSEN COMPARATIVE (PERCENTAGE) THRESHOLDS THE FOLLOWING INSTRUCTIONS APPLY PART A - PRIMARY SOURCES OF INCOME your total gross income, then you should list the name of the Re 112.3145(3)(a)1 or b O , F.S. 1 business, its address, and its principal business activity (retail [Required b y s. ] gift sales). Part A is intended to require the disclosure of your principal — If you received income from investments in stocks and sources of income during the disclosure period. You do not have bonds, you are required to list only each individual company to disclose the amount of income received, and you need not list from which you derived more than 5% of your gross income, your public salary received from serving in the position(s) which rather than aggregating all of your investment income. requires you to file this form, but this amount should be included when calculating your gross income for the disclosure period. The — If more than 5% of your gross income was gain from the sale income of your spouse need not be disclosed; however, if there is of property (not just the selling price), then you should list as a joint income to you and your spouse from property you own jointly source of income the name of the purchaser, the purchaser's (such as interest or dividends from a bank account or stocks), you address, and the purchaser's principal business activity. If the should include all of that income when calculating your gross income purchaser's identity is unknown, such as where securities listed and disclose the source of that income if it exceeded the threshold. on an exchange are sold through a brokerage firm, the source part of the form the name, address, and of income should be listed as "sale of (name of company) Please list in this p stock," for example. principal business activity of each source of your income which exceeded 5% of the gross income received by you in your own — If more than 5% of your gross income (or, alternatively, name or by any other person for your benefit or use during the $2,500) was in the form of interest from one particular financial disclosure period. institution (aggregating interest from all CD's, accounts, etc., at that institution), list the name of the institution, its address, and "Gross income" means the same as it does for income tax its principal business activity. purposes, even if the income is not actually taxable, such as interest on tax -free bonds. Examples include: compensation for services, PART B - SECONDARY SOURCES OF INCOME income from business, gains from property dealings, interest, rents, dividends, pensions, IRA distributions, social security, distributive [Required by s. 112.3145(3)(a)2 or (b)2, F.S.) share of partnership gross income, and alimony, but not child This part is intended to require the disclosure of major customers, support. clients, and other sources of income to businesses in which you own Examples. an interest. It is not for reporting income from second jobs. That kind — If you were employed by a company that manufactures of income should be reported as a "Primary Source of Income," if it computers and received more than 5% of your gross income meets the reporting threshold. You will not have anything to report (salary, commissions, etc.) from the company, you should list unless during the disclosure period: the name of the company, its address, and its principal business (1) You owned (either directly or indirectly in the form of an activity (computer manufacturing). equitable or beneficial interest) more than 5% of the total assets — If you were a partner in a law firm and your distributive or capital stock of a business entity (a corporation, partnership, LLC, limited partnership, proprietorship, joint venture, trust, firm, share of partnership gross income exceeded 5% of your gross income, then you should list the name of the firm, its address, etc., doing business in Florida); and and its principal business activity (practice of law). (2) You received more than 10% of your gross income from that business entity; and — If you were the sole proprietor of a retail gift business and your gross income from the business exceeded 5% of (3) You received more than $1,500 in gross income from that business entity. CE FORM 1 - Effective: January 1, 2015. Adopted by reference in Rule 34- 8.202(1), F.A.C. PAGE 5 If your interests and gross income exceeded these thresholds, then for that Example: business entity you must list every source of income to the business entity You own 50% of the stock of a small corporation that is which exceeded 10% of the business entity's gross income (computed on worth $100,000, the estimated fair market value of your home the basis of the business entity's most recently completed fiscal year), the and other property (bank accounts, automobile, furniture, etc.) source's address, and the source's principal business activity. is $200,000. As your total assets are worth $250,000, you must Examples: disclose intangibles worth over $25,000. Since the value of the — You are the sole proprietor of a dry cleaning business, from which stock exceeds this threshold, you should list "stock" and the name you received more than 10% of your gross income —an amount of the corporation. If your accounts with a particular bank exceed that was more than $1,500. If only one customer, a uniform rental $25,000, you should list "bank accounts" and bank's name. company, provided more than 10% of your dry cleaning business, you PART E — LIABILITIES must list the name of the uniform rental company, its address, and its principal business activity (uniform rentals). [Required by s. 112.3145(3)(a)4 or (b)4, F.S.] — You are a 20% partner in a partnership that owns a shopping mall List the name and address of each creditor to whom you owed any and your partnership income exceeded the thresholds listed above. amount that at any time during the disclosure period, exceeded your You should list each tenant of the mall that provided more than 10% net worth. You are not required to list the amount of any debt or your of the partnership's gross income, the tenant's address and principal net worth. You do not have to disclose: credit card and retail installment business activity. accounts, taxes owed (unless reduced to a judgment), indebtedness on a life insurance policy owed to the company of issuance, or contingent PART C — REAL PROPERTY liabilities. A "contingent liability" is one that will become an actual liability only when one or more future events occur or fail to occur, such as where [Required by s. 112.3145(3)(a)3 or (b)3, F.S.] you are liable only as a guarantor, surety, or endorser on a promissory In this part, list the location or description of all real property note. If you are a "co maker and have signed as being jointly liable or in Florida in which you owned directly or indirectly at any time jointly and severally liable, then this is not a contingent liability. during the previous tax year in excess of 5% of the property's Calculations: In order to decide whether the debt exceeds your net value. You are not required to list your residences and vacation worth, you will need to total all of your liabilities (including promissory homes. notes, mortgages, credit card debts, judgments against you, etc.). The 1 Indirect ownership includes situations where you are a amount of the liability of a vehicle lease is the sum of any past -due beneficiary of a trust that owns the property, as well as situations payments and all unpaid prospective lease payments. Subtract the sum where you are more than a 5% partner in a partnership or total of your liabilities from the value of all your assets as calculated stockholder in a corporation that owns the property. The value of above for Part D. This is your net worth." You must list on the form each the property may be determined by the most recently assessed creditor to whom your debt exceeded this amount unless it is one of the value for tax purposes, in the absence of a more current types of indebtedness listed in the paragraph above (credit card and retail appraisal. installment accounts, etc.). Joint liabilities with others for which you are "jointly and severally liable," meaning that you may be liable for either your The location or description of the property should be sufficient part or the whole of the obligation, should be included in your calculations to enable anyone who looks at the form to identify the property. A at 100% of the amount owed. street address should be used, if one exists. Examples: PART D — INTANGIBLE PERSONAL PROPERTY — You owe $15,000 to a bank for student loans, $5,000 for credit [Required by s. 112.3145(3)(a)3 or (b)3, F.S.] card debts, and $60,000 (with spouse) to a savings and loan for Describe any intangible personal property that, at any time a home mortgage. Your home (owned by you and your spouse) is during the disclosure period, was worth more than 1 0% of your worth $80,000 and your other property is worth $20,000. Since your total assets, and state the business entity to which the property net worth is $20,000 ($100,000 minus $80,000), you must report only related. Intangible personal property includes things such as the name and address of the savings and loan. cash on hand, stocks, bonds, certificates of deposit, vehicle PART F — INTERESTS IN SPECIFIED BUSINESSES leases, interests in businesses, beneficial interests in trusts, money owed you, Deferred Retirement Option Program (DROP) [Required by s. 112.3145(5), F.S.1 accounts, the Florida Prepaid College Plan, and bank accounts. Intangible personal property also includes investment products The types of businesses covered in this disclosure include: state and held in IRAs, brokerage accounts, and the Florida College federally chartered banks; state and federal savings and loan associations; Investment Plan. Note that the product contained in a brokerage cemetery companies; insurance companies; mortgage companies; credit account, IRA, or the Florida College Investment Plan is your unions; small loan companies; alcoholic beverage licensees; pan- mutuel asset —not the account or plan itself. Things like automobiles wagering companies, utility companies, entities controlled by the Public and houses you own, jewelry, and paintings are not intangible Service Commission; and entities granted a franchise to operate by either property. Intangibles relating to the same business entity may a city or a county government. be aggregated; for example, CD's and savings accounts with the You are required to disclose in this part of the form the fact that same bank. you owned during the disclosure period an interest in, or held any of Calculations: In order to decide whether the intangible certain positions with, particular types of businesses listed above. You property exceeds 10% of your total assets, you will need to total are required to make this disclosure if you own or owned (either directly the fair market value of all of your assets (including real property, or indirectly in the form of an equitable or beneficial beneficial interest) at any time intangible property, and tangible personal property such as jewelry, during the disclosure period more than 5% of the total assets or capital furniture, etc.). When making this calculation, do not subtract any stock of one of the types of business entities listed above. You also must liabilities (debts) that may relate to the property. Multiply the total complete this part of the form for each of these types of businesses figure by 10% to arrive at the disclosure threshold. List only the for which you are, or were at any time during the disclosure period, an intangibles that exceed this threshold amount. The value of a officer, director, partner, proprietor, or agent (other than a resident agent leased vehicle is the vehicle's present value minus the lease solely for service of process). residual (a number which can be found on the lease document). If you have or held such a position or ownership interest in one Property that is only jointly owned property should be valued of these types of businesses, list the name of the business, its address according to the percentage of your joint ownership. Property and principal business activity, and the position held with the business (if owned as tenants by the entirety or as joint tenants with right of any). If you own(ed) more than a 5% interest in the business, you must survivorship should be valued at 100 %. None of your calculations indicate that fact and describe the nature of your interest. or the value of the property have to be disclosed on the form. (End of Percentage Thresholds Instructions.) CE FORM 1 - Effective'. January 1, 2015. Adopted by reference in Rule 34- 8.202(1), FA.C. PAGE 6 Barbara Ladue From: Barbara Ladue <ladueb @bbpdpension.com> Sent: Thursday, April 16, 2015 11:50 AM To: 'Bonni Jensen' Subject: RE: Rule 60T- 1.0035 - HB 534 FYI Thanks, Bonni, they don't make things easy on all this extra reporting. Barb La Due Pension Administrator Boynton Beach Police & Fire Pension Funds Phone: (561) 739.7972 From: Bonni Jensen [ mailto :bonnarobertdklausner.com] Sent: Thursday, April 16, 2015 11:08 AM To: Barbara Ladue Cc: bsjteam; 'Athol, Toby'; Llopis, Jason Subject: Rule 60T- 1.0035 - HB 534 FYI Barbara, The Additional Actuarial Disclosures rule from HB 534 is effective as of April 29, 2015. These additional disclosures for Boynton Beach Police will be due within 60 days of that date or June 28, 2015 (which is a Sunday, so I assume that it is due on the following Monday) for actuarial valuations that have already been accepted by the Boards. For valuations that are issued in the future, the disclosures are due 60 days after the acceptance of the valuations by the Board. The actuary will be preparing this data —just wanted to let you know that this is happening. 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 bonni(c i . k ptts 7080 N.W. 4 Street Plantation, Florida 33317 Telephone: 954 - 916 -1202 Facsimile: 954 - 916 -1232 1 Barbara Ladue From: Llopis, Jason <LlopisJ @bbfLus> Sent: Thursday, April 30, 2015 9:45 AM To: Athol, Toby; DeGiulio, Joseph; Caudell, Scott; john007z3 @hotmail.com'; Barbara Ladue; Bonni Jensen (bonni @robertdklausner.com) Subject: FW: Implementation of Chapter 60T- 1.0035, Florida Administrative Code FYI From: DivisionOfRetirement ©rol.frs.state.fl.us [ mailto: DivisionOfRetirement @rol.frs.state.fl.us] Sent: Thursday, April 30, 2015 8:11 AM To: Llopis, Jason Subject: Implementation of Chapter 60T- 1.0035, Florida Administrative Code TO: Addressee FROM: Keith Brinkman, Bureau Chief Bureau of Local Retirement Systems DATE: April 30, 2015 RE: Rules Implementing Chapter 60T- 1.0035, Florida Administrative Code Additional Actuarial Disclosures required under section 112.664, F.S. In 2013, the Legislature amended Part VII of Chapter 112, Florida Statutes, to require certain additional actuarial disclosures from all local government pension plans, using prescribed assumptions and methods. The Department of Management Services has been working to promulgate rules implementing this statutory requirement, including holding two rules workshops and a hearing to encourage public feedback to the draft and proposed rules. The department carefully considered the written and verbal comments received during the rule- making process and many of the suggestions were incorporated into the final rule, contained in Chapter 60T- 1.0035, Florida Administrative Code, which went into effect on Apr. 29, 2015. A copy of the final rule may be accessed online at the Department of States website, www.flrules.org, or here. Section 112.664, Florida Statutes, requires that, "In addition to the other reporting requirements of this part, within 60 days after receipt of the certified actuarial report submitted after the close of the plan year that ends on or after Jun. 30, 2014, and thereafter in each year required under s. 112.63(2), each defined benefit retirement system or plan, excluding the Florida Retirement System, shall prepare and electronically report the following information to the Department of Management Services in a format prescribed by the department..." This required information includes: - annual financial statements that are in compliance with Governmental Accounting Standards Board Statement Nos. 67 & 68, using a prescribed mortality table and interest assumption rate; - information indicating the number of months or years that the plan's current market value of assets can sustain payment of expected retirement benefits under the current valuation and prescribed assumptions; and 1 - information indicating the recommended contributions to the plan as a dollar amount and percentage of payroll, under the current valuation and prescribed assumptions. The section also requires that each plan present this information on its website, along with links to recent financial statements and valuations, and a five -year history of investment returns compared to assumptions and investment portfolio asset allocations. The section defines non - compliance and describes the potential ramifications. Chapter 60T- 1.0035, Florida Administrative Code, provides the required format of the electronic data submissions to comply with this statutory provision and the Department of Management Services has already communicated instructions to the plan actuaries on how to use the online portal by which the submissions will be made. The data files must be submitted in a semi -colon delimited format, using the template specified in the rule. All submissions must include a pdf file of the annual financial statements in their entirety, and be certified by the submitting actuary for compliance. Please be sure to contact your plan actuary to ensure that all the required file submissions are timely made. The additional actuarial disclosures are required to be made within 60 days of the board of trustees' approval of the certified actuarial valuation for plan years ending on or after Jun. 30, 2014. For plans that have already approved actuarial valuations since Jun. 30, 2014, and before Apr. 29, 2015, (the effective date of the rule), the disclosures must be submitted to the department within 60 days of Apr. 29, 2015. If the 60 day falls on a weekend, then the submission deadline will be the following business day. If you have any questions about the requirements of the rule, please contact my office at 850 - 488 -2784, or via email at local ret@dms.myflorida.com. 2 AV Russell I2 Investments AI Quarterly Investment Review City of Boynton Beach Police Retirement Fund FIRST QUARTER 2015 L I p y 4 5 { P 1 i i I w Quarterly I t t R • City of Boynton Beach Police Retirement Fund Your Client Service Team Mary Jean Serene, CFA Karen Pheneger Peter Delyanis 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 -4554 (813) 288 -4624 mjserene @russell.com kpheneger @russell.com pdelyanis @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, Suite 250 Chicago, II 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 D2 Russell Investments AN M 1 �' �' �$ t t i 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: November 2014; updated May 2015 US I- 20895 -11 -15 p.3 G2 Russell Investments h d I 1 1 1 I I I I I Russell Investments Economic and Financial Markets Review First Quarter 2015 E F E C k e f s v i �� i t 6 P F _ , Capital markets Period ending March 31, 2015 Capital Market Returns 20 15.2 16.4 14.7 15 12.4 12.0 11.3 10 s 8.6 8.4 8.9 7.2 t '' 4.9 � 15.3 '� 3.9 4.0 5.7 1 11 6 .1 4.4 Z 5 1.8 X2.1 1.6 3.1 I 2.6 C 0 ■M� l ..... 0.5 II !, =� .1 =• 11 = w - -1.4 -3.6 0 10 • ■ U.S. Equity -5 i -5.7 w • Non -U.S. Developed Equity Q - 15 ■ Emerging Markets - 11.5 CC 20 • U.S. Bonds ■ Global REITs - 25 Commodities moomr - 30 1Q 2015 1 -Year -27.0 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 > Volatile first quarter for U.S. stocks as they trailed other equity Non -U.S. Developed Equity: (Russell Developed ex -U.S. Large Cap markets. Index) International market index that includes Western Europe, Japan, Australia and Canada > Non -U.S. developed equity markets produced strong local returns, Emerging Markets: (Russell Emerging Markets Index) Emerging but were somewhat muted by strength of U.S. dollar. markets index that includes S. Korea, Brazil, Russia, India and China > Emerging markets provided strong Asian market returns, but were U.S. Bonds: (Barclays U.S. Aggregate Bond Index) Broad index for balanced by struggles in South American markets. U.S. Fixed Income market > The U.S. bond market benefited from flat to slightly down interest Global REITs: (FTSE EPRA/NAREIT Index) Index for global publicly rates which helped produce solid results. traded real estate securities > Global REITs were the leading market segment for the quarter. Commodities: (Bloomberg Commodity Index) Broad index of common > Commodities continued to struggle as agriculture /energy prices commodities moved lower and concerns about the global economy remained. Source: Russell, Barclays, Bloomberg and FTSE NAREIT. Index returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Russell Investments P. Indexes are unmanaged and cannot be invested in directly. ■ QE: First in first out UNITED STATES EUROPE JAPAN Quantitative Easing Turning the corner "Abenomics" I > Federal Reserve's multiple > Outright Monetary Transaction > Prime Minister Abe's economic rounds of quantitative easing (OMT) in 2012 plan announced in January led to early market recovery > 60bn Euro per month 2013 targeted fiscal and and expansion quantitative easing program monetary reform announced: Mar. 2015 - Sept. 2016 190 w 160 J QE > announced X 130 w QE3 Ci Z .- 100 � QE2 Operation Twist A. `Z Ce 70 44, "Whatever g Q it takes" "Abenomics" V 40 Dec -06 Dec -07 Dec -08 Dec -09 Dec -10 Dec -11 Dec -12 Dec -13 Dec -14 —US —Japan — Europe Market index values: Russell 1000® Index (U.S.), Russell Large Cap Japan Index (Japan), and Russell Large Cap Eurozone Index (Europe). Index returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. E J Russell Investments all P• Indexes are unmanaged and cannot be invested in directly. Energy dominates headlines but not portfolios Energy is third smallest equity sector by market capitalization While energy has struggled, broad U.S. stocks have still advanced Impact to a diversified portfolio likely muted U.S. stocks vs. energy stocks Energy as % of U.S. stock market (January 2014 — March 2015) (As of March 31, 2015) $1.20 1$1.i5 Energy Materials& - - - - - -- 7.2% Processing $1.15 Health Care $1.10 $1.05 \� Producer $1.00 Durables 'Iv/VI $0.95 Technology $0.90 $0 Consumer Discretionary $0.85 $0.80 Consumer b b b b b R b b b b b b h h Staples • ^ � O � ^ � ^ O � � ^ � � � ^ O \<.3 O^ 419 , r 4 4 419 41 4 4 4 4 ,\19. 4 ^ �ti ^ �ti Financial 4 b> 4 4 1\ e2 0� ^O\ ^� d ry �� ry 4 uttl Services Energy Stocks U.S. Stocks Source: U.S. Stocks — Russell 3000® Index Source: Energy Stocks — Russell 3000° Energy Sector Index returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. p.7 Indexes are unmanaged and cannot be invested in directly. G2 Russell Investments MI Europe gets an upgrade Russell 2Q 2015 Strategist Outlook UNITED STATES EUROZONE 1 I ASIA Financial challenges Opportunities abound Respectable growth �` �i > Forecast 3.0% GDP growth in > Upgraded forecast of 1.5 -2% > 6.5 % -7% GDP growth for Economic 2015 GDP growth in 2015 China in 2015 > Interest rate hike in Sept 2015 outlook > Good economic news comes at , Favorable monetary and > Supportive monetary, fiscal, cost of earlier Fed tightening fiscal policy support and exchange -rate policy > Weak energy prices, > Challenges of the strong U.S. Valuations attractive relative exchange rates, and d ollar and declining corporate to U.S. assets supportive monetary policy Market > Expectation of earnings profit margins likely to help Outlook growth momentum ° > U.S. equity valuations above , Favorable monetary policy > 8 i EPS growth for average and weak Euro likely to help Asia- Pacific ex -Japan and low teens growth for Japan , 1. There is no guarantee the stated expectations will be met. As of 4/1/2015 p.8 D32 Russell Investments All El, Russell VIII Investments Account Review First Quarter 2015 f V I I I F �� Q Asset Summary Report City of Boynton Beach Police Retirement Fund As of March 31, 2015 Market Actual Policy Holding Value Holding Holding Variance Boynton Beach Police Officers Retirement Trust Investment Account - QU7W Total Assets $ 82,217,724 100.00 % 100.00 % -- % RTC Multi -Asset Core Fund 32,141,704 39.09 39.00 0.09 RTC Russell LC Defensive Equity Fd 21,323,276 25.94 26.00 -0.06 RTC Multi- Manager Bond Fund 22,623,077 27.52 28.00 -0.48 RTC Real Estate Equity Fund 1 5,719,540 6.96 7.00 -0.04 Cash, Payable /Receivable 410,127 0.50 0.00 0.50 Please read the endnotes included with the report. Endnotes; 1 Market value is as of the quarter ending 12/31/14. PRELIMINARY 10- Apr -2015 9:13:47 AM EDT Copyright (c) Russell Investments 2015. All rights reserved. p.10 Eli. Russell Investments Market Value Reconciliation City of Boynton Beach Police Retirement Fund As of March 31, 2015 FYTD One Month Three Months Year to Date 09/30 Boynton Beach Police Officers Retirement Trust Investment Account - QU7W Beginning Market Value $ 82,886,079 $ 81,540,326 $ 81,540,326 $ 76,153,463 Inflows 154,574 348,617 348,617 4,982,751 Outflows - 490,622 - 1,484,385 - 1,484,385 - 3,231,683 Net Inflows /Outflows - 336,048 - 1,135,767 - 1,135,767 1,751,068 Appreciation /Depreciation - 332,307 1,813,165 1,813,165 4,313,194 Income Earned 0 0 0 0 Net Market Gain /Loss - 332,307 1,813,165 1,813,165 4,313,194 Ending Market Value 82,217,724 82,217,724 82,217,724 82,217,724 PRELIMINARY 10- Apr -2015 9:13:47 AM EDT Copyright (c) Russell Investments 2015. All rights reserved. p.11 EZ Russell Investments ■ Performance Report City of Boynton Beach Police Retirement Fund As of March 31, 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 - QU7W Total Assets -Gross 1'2 $ 82,217,724 -0.40 % 2.24 % 2.24 % 5.36 % 8.94 % 9.74 % 9.70 % 6.59 % 6.95 % 07/01/2002 Total Assets -Net 1'2 82,217,724 -0.46 2.06 2.06 4.97 8.10 8.88 8.84 5.80 6.17 07/01/2002 Russell Custom Benchmark 3 -- -0.63 1.71 1.71 4.43 7.99 8.95 8.81 6.20 6.63 -- Consultant Benchmark ° -- -0.80 1.48 1.48 3.49 6.42 6.94 7.94 6.21 6.43 -- Total Liquid Return Seeking 53,464,981 -0.88 2.54 2.54 6.31 9.83 - -- - 14.94 08/31/2012 RTC Multi -Asset Core Fund 32,141,704 -0.66 3.50 3.50 5.99 8.10 - -- - 13.63 08/31/2012 Multi -Asset Core Composite Bmk 5,6 -- -0.86 2.71 2.71 4.22 6.62 -- -- -- 12.13 -- Volatility Equivalent Target 7,8 -- -0.58 3.35 3.35 5.44 8.71 -- -- -- 13.98 -- RTC Russell LC Defensive Equity Fd 21,323,276 -1.21 1.13 1.13 6.77 12.46 - - - 15.73 09/18/2013 Russell 1000 Defensive Index (Linked) - -1.67 0.49 0.49 5.90 12.12 -- -- -- 15.23 -- Total Fixed Income 22,623,077 0.59 1.94 1.94 3.56 6.66 4.51 5.84 5.80 5.71 09/01/2002 Barclays U.S. Aggregate Bond Index -- 0.46 1.61 1.61 3.43 5.72 3.10 4.41 4.93 4.81 -- RTC Multi- Manager Bond Fund 22,623,077 0.59 1.94 1.94 3.56 6.66 4.51 5.84 - 7.16 09/30/2008 Barclays U.S. Aggregate Bond Index -- 0.46 1.61 1.61 3.43 5.72 3.10 4.41 -- 5.10 -- Total Alternative Investments 2 5,719,540 0.00 0.00 0.00 3.68 10.43 12.06 13.57 - 4.10 07/01/2006 Please read the endnotes included with the report. PRELIMINARY 10- Apr -2015 9:13:47 AM EDT Copyright (c) Russell Investments 2015. All rights reserved. Past performance is not indicative of future results. p.12 Russell Investments All Performance Report City of Boynton Beach Police Retirement Fund As of March 31, 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 RTC Real Estate Equity Fund 2 $ 5,719,540 0.00 % 0.00 % 0.00 % 3.68 % 10.43 % 11.86 % 14.36 % -- % 4.52 % 07/01/2006 NFI - ODCE -EQ 9 -- 0.00 0.00 0.00 3.11 9.61 11.21 13.59 -- 4.53 Please read the endnotes included with the report. Fndnotes; 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 market value is as of the quarter ending 12/31/14. 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, 30.0% Barclays Aggregate, 5.0% 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 The Volatility Equivalent Target is appropriate for evaluating the Fund over a 5 to 7 year horizon. 8 The Volatility Equivalent Target consists of: 85.0% Russell World Cap 50% Hedged Net Index and 15.0% Barclays U.S. Aggregate Bond Index and is defined as the allocation to global equity and U.S. bonds that is forecast to have roughly the same volatility as the Composite Benchmark. 9 NCREIF Fund Index Open -End Diversified Core Equity -Equal Weight (NFI - ODCE -EQ). PRELIMINARY 10- Apr -2015 9:13:47 AM EDT Copyright (c) Russell Investments 2015. All rights reserved. Past performance is not indicative of future results. p.13 G2 Russell Investments Russell �i Invest Russell Multi- Asset Core Fund Rev First Quarter 2015 Performance impact Description RTC M u I t i -Asset Core Fund ++ Significantly positive + Positive Fund positioning — first quarter 2015 - Negative Significantly negative Strategic Positions Justification Quarterly Impact PM Action Small cap, value, and • Consistent with our strategic beliefs, we N/A 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 Impact PM Action I Underweight interest rate • Expensive relative to their historical - Maintained view in Q1 sensitive equities (REITs, levels, not likely to perform well in a Utilities, high dividend yield) rising interest rate scenario Overweight Japan (hedged) • Abenomics and attractive valuation + Maintained view in Q1 make Japan favorable equity opportunity Overweight Growth • Expected long term mean reversion ++ Value managers have rolled over significantly, but we Managers following global value manager have not yet begun to increase weights there outperformance Overweight USD • Strong economic growth, rising interest ++ On strength, closed JPY and EUR short position. rates and policy divergence across the Continue to maintain underweight to CAD and AUD world could lead to strong USD Underweight Commodities • Supply /demand imbalances and strong ++ Remain underweight by 1% but planning to add dollar would cause headwinds momentum driven strategy to mitigate risk of — significant rebound Selection Impact Justification Quarterly Impact PM Action Active manager stock • Idiosyncratic in nature; Russell has + ' Active managers continued to perform well in Q1 selection as the main driver differentiated research and managers primarily driven by growth managers of excess returns with skill Past performance is not indicative of future results. 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. This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund.. p.15 Russell Investments Mil RTC Multi -Asset Core Fund - period ending March 31, 2015 Strategy Annualized Performance Year to Three Inception 1Q 2015 Date One Year Years to dater The Russell Multi -Asset Core Fund has a strategic allocation of 75% global equity, 15% real assets (global RTC Multi -Asset Core Fund 3.50% 3.50% 8.10% 10.85% 10.86% REITs, listed infrastructure, and commodities), and 10% Multi -Asset Core Composite Index 2.71% 2.71% 6.62% 10.06% 10.07% 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 +1- 3% from underlying allocations/investments. In addition, the Funds primary benchmark changed from the Global Equity Composite Index to the Multi -Asset Core Composite Index. Historical P 9 P performance of the Russell Multi -Asset Core Fund is available upon request. the strategic targets to take advantage of market u 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 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 opportunities to enhance return and /or to manage risk. Index. Strategic asset allocation changes over time will be captured in the composite index. The Fund utilizes a combination of Russell asset class funds, separate manager accounts, and positioning Characteristics 1Q2015 4Q2014 strategies3. Total Net Assets $1.67B $1.70B Excess Return Attribution 1Q 2015 Global Equity Fund Russell Fund Russell World Cap World Cap Top three contributors to excess return Portfolio P/E 18.3 18.1 18.2 17.5 Portfolio P/E - I /B /E /S 1 yr. Forecast EPS 16.2 16.7 16.2 16.0 Active $ Weighted Average Market Capitalization $86.80B $84.54B $85.85B $83.53B Managers 0.3% Return Seeking Fixed Incomes Fund Barclays US Fund Barclays US Aggregate Aggregate EMEA ex Current Yield ( %) 2.01 1.41 2.11 1.51 UK Overweight 0.2% Weighted Average Duration 5.25 3.71 5.31 3.66 Average Credit Quality Aa2 Aa1 Aa2 Aa1 Japan Overweight 0.1% Strategic Asset Allocation Actual Asset Allocation as of 3/31/2015 0.0% 0.1% 0.2% 0.3% 04 Aggregate Cash Aggregate • • Contribution to Excess Retum Fixed 3% Global Fixed Cash Global Income Commodities Income 5% Commodities 7% 5% 5 %... L Top three detractors from excess return 5% Global Listed Global Listed Real Estate Real Estate 3% Canada 0 0 5% - lobal Equity Underweight Global 51 % Globa nfrastructure� Infrastru 5% Australia 5% _ l l Underweight -0.1% I Markets i 3% 1 al Real Estate ! Global Re tonal J 9 j Underweight 0.1 % Equities Small Cap 77% L -- c -0.4% -0.3% -0.2% -0.1% 0.1% US Large • Contribution to Excess Retum Cap Global ex- 10% Equities 11% 'Positioning strategies - customized exposures directly managed by Russell for use within the total portfolio to effect the funds_ investment strategies and /or to modify overall portfolio characteristics to seek to achieve the desired risklretum profile. °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.16 'Source: Wilshire t 52 Russell Investments al RTC Multi -Asset Core Fund - period ending March 31, 2015 Global Equities Regional Exposure Sector Exposure Local USD Local USD Index Return Index Return ' , Index Return Index Return - -- _ Utilities -0.3% ° US 1.8% 1.8% ` -0.3/° -3.5/° Telecom i 6.8% 3.3% UK 111 4.8% -0.5% IT 3.1% 2.4% Japan MI 10.6% 10.6% Financials 4.3% 1.0% Health Care 1111111 10.3% 8.7% Canada ` 2.5% -6.1% Cons. Staples INIMMIEmm 5.3% 2.5% EMEA ex UK ! 15.3% 5.6% Cons. Disc. IIIIIII 8.1% 5.7% Asia /Pacific Ex Japan ` 8.2% ° Industrials �I� 5.0% 2.4% 3.5 /° Materials - 5.6% 1.5% Emerging OM 5.1% 2.4% Energy 0.1% -2.9% 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 Hotel aid Leisure Gasni0ther RaiIt ks 18 "/o Cash Specialized 6 % 1 % Residential Devel 19% opment �� 11 % 1% \ Operating 9% Railroads 5% Livestock 5% Industrial 4% Retail 23% Marine Ports 111111111511."'- '--° / Services6 °h UtiEt es l6% 4 °Rs ipplir* Health Care / 5% Gas Utilities 7% Precious Airport Metals Grains Services 7% Oil 8 Gas 15% 15% Diversified 23% / Office 13% Storage J Multi- Utilities 2% Transportation Industrial 12% Metals 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 Multi -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 upon request. Russell 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.17 1] Russell Investments ■ RTC Multi -Asset Core Fund Asset class returns and average relative positioning March 31, 2015 Asset Class Returns ■ Average Relative Position - - Fund Return (3.50 %) - - Benchmark Return (2.71%) 20.0% - 14.9% 15.0% 10.4% 10.2% 10.0% 5.2% 4.5% 4.5% 0 5.0% E / 00. or . 1 �% L..-r= ., 2-irk.... 1% .1% 0.0% 0.0 0.1% 0.0% -0.6% -1.4% -0.2% ° 1.1 % o ° -0.4% 1 -1.9/0 .6 /0 -1.9/0 _5.00/0_ -4.9% -4.9% -6.9% -10.0% - -- -8.4% -11.3% -15.0% o . 3 E v m °' d m .c a s m 0 0 m Q L, v Y c a o 0 c7 Q 0 w w 7 -, C ca i W 0 W y E re ] 4 Y a '° re as E Q C Cy 2 O N C 0 U) C C ro 0 .0 7 p To Tx o w 0 o . Global Equities Real Assets Fixed Income /Cash Currencies *Local market returns. 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(Neij, 5% S &P Global Infrastructure Index, 7% Barcllys US Aggreegate Bond Index and 3% Barclays US 1 -3 Month Treasury Bill Index. Russell Volatility Equivalent Benchmarks consists of 85% Russell World Cap Index 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. Russell Investments p.18 Average bet is average of start of the quarter relative weight and end of the quarter relative weight. ■ RTC Multi -Asset Core Fund Asset allocation and advisor lineup as of March 31 2015 ASSET CATEGORY Global Equity Real Assets Diversifying Fixed Cash Income 77.3% 12.7% 5.1% 4.9% ASSET CLASS Global Equities Global ex US Equity US Large Cap Regional Small Cap Emerging Markets Global Real Estate Global Infrastructure Global Commodities US Agg Bonds Cash 51.2% 11.0% 9.7% 2.3% 3.1 °/ 3.0% 5.0% 4.7% 5.1% 4.9% ADVISORS/STRATEGIES Axiom Polaris SGA RTC Small Ca Fund RTC Emerging Markets RTC Global Real Estate RTC Global RTC Quantitative Bond p Fund Securities Fund Infrastructure Fund RTC Commodities Fund Fund Cash 3.7% 4.0% 9.7% 2.3% 3.1% 3.0% 5.0% 3.8% 5.1% 4 Hams Pzena Ancora Advisors Alliance Bernstein Cohen & Steers Cohen & Steers CoreCommodity Neuberger Berman 4.6% 3.2% Perkins MFS DePrince , Axiom INVESCO Colonial First Credit Suisse 9.8% 3.8% Sanders EAM Delaware Morgan Stanley Lazard Gresham 7.2% Wellington Falcon Point Harding Loevner Russell Trust Company Nuveen Russell Backwardation Strategy 5.9% Russell Positioning Mount Lucas Strategies Netols Genesis 9 Mana ement 20.1% 0.9% Robeco Numeric Snow Capital Oaktree Summit Creek Westwood Russell Positioning Strategies Allocations and Advisors /Funds /Strategies are as of March 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. This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. p.19 1] Russell Investments AN RTC Multi -Asset Core Fund Developments and outlook — first quarter 2015 Fund Activity > Incrementally added to Europe overweight after ECB QE announcement in February; now 230bps overweight vs. 75bps at the end of 2014 > Europe overweight partially funded from US after significant US outperformance in 2014 (now 125bps underweight US) > Added MLM commodity strategy which positions fund to benefit should momentum build in the asset class; also added 50bps to commodities from REITs at the end of the quarter > Converted completion portfolio from US to Global at the end of the quarter which should help us better control risks and target preferred positioning Fund Outlook & Positioning > Rising interest rates, real estate valuations and turning sentiment from yield investors expected to lead to underperformance versus other real assets; continue to maintain our underweight ) Quantitative easing and fiscal reform could lead to structural changes in Japan and Europe resulting in potentially superior relative returns for equity investors; overweight Japan and Europe vs. commodity producing countries like Australia & Canada > The US dollar may be early in a multi -year strengthening cycle, but currency volatility has increased sharply and the long USD trade has gotten very crowded. We have reduced our USD overweight and taken profits, but would look to renew the position at appropriate entry points. > Underweight to commodities /energy sector /commodity countries has been accretive to portfolio. With recent extreme sell off, will be cautious with underweight and look to mitigate risks from rebound in commodities over the next few months Past performance is not indicative of future results. There is no guarantee that any stated expectations will occur. 20 �.J RUSSell Investments P This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. Russell i Investments Russell U•S• Equity Review First Quarter 2015 1 '" ':, i '1 i i ?: I }; , 1 is I i i' i i i i- 1 f` r II RTC Large Cap Defensive Equity Fund Developments and outlook — first quarter 2015 Fund Outlook & Positioning > Continuing to sell out of the money index put options as a portion of the cash equitization program > The Fund has a tilt toward higher 12 -month momentum, higher value stocks, and higher beta > The Fund is underweight the largest stock by market capitalization and the highest dividend yielding stocks. As interest rates rise, higher yielding stocks are expected to lag the market > The Fund is overweight to the financial services and healthcare sectors, and underweight the technology sector Source: Russell There is no guarantee that any stated expectations will occur. This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. p.22 I Russell Investments RTC Large Cap Defensive Equity Fund - period ending March 31, 2015 Strategy Performance Annualized 102015 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 1.13 °a 1.13% 12.4652 14.69% 14.17% 7.50% i x® Defensive Inde by investing in common stocks that rank among Russell 1000® Defensive Indexe (Linked)" 0.49 0.49 12.12 14.51 1 13.58 ! 7.79 the largest 1,000 companies in the U.S. stock market while main- taining volatility and diversification similar to the index over a full 102015 402014 market cycle. Characteristics Russell 1000"- Russell 1000" Fund Defensive Index® Fund Defensive Index® Total Net Assets $540.27M S10 612 5579.18M S10 65T Top 10 fund holdings Fund % Index ./.2 Exxon Mobil Corp. 3.29 3.44 Portfolio P/E - I /B /E /S 1 yr. Forecast EPS 18.1 18.1 7 0 17 3 LT Growth Forecast I /B/E/S Medians 9.28% 8.54% 9.87% 9.17% Apple, Inc. 2.99 2.80 . Price /Book Ratio 3.19 3.28 3.08 _ 3.21 Microsoft Corp. ' 2.79 2.75 Pfizer, Inca 2.55 P.09 $ Weighted Average Market Capitalization $133.57B $150.94B $132.56B $152.23B Johnson & Johnson 2.43 2.68 1 Portfolio Beta vs. Russell 3000® Index 0.78 0 79 0.81 0.78 Wells Fargo & Co. 2.36 2.45 1 Source: BNY Mellon Asset Servicing except Total Net Assets. Chevron Corp. 2.14 1.88 o Sector weightings d� 10 returns (%) Fund advisor styles Procter & Gamble Co . The 1.94 2.09 Target weightings % 1 02015 402014 Union Pacific Corp. 1.89 0.93 Market oriented 100 100 Home Depot, Inc. 1.69 1.46 „RTC Large Cap Defensive Equity Fund trbex Returns Total 24.05 22.57 . .Russell 10000 Defensivelndex® , Advisor diversification 1 The top ten holdings list does not reflect the investment of cash Consumer _I 4.26 reserves and cash collateral received in securities lending transactions in Discretionary one or more of Russell's money market funds. consumer Lap 2 Source: BNY Mellon Asset Servicing staples -0.33 10 Greatest impact' ( +) Over /under Contribution Financial 067 JPMorgan . R�d1 1000" Defensive weight % to return % Service AmerisourceBergen Corp. (Holdin• Co.) 0.57 _ 0 Pdajore Health Care 11111=111111r 5.49 I Five Star Quality Care Inc. 0.63 _ 0.05 General Electric Co -1.18 0.04 Materials and iii Time Warner Inc. P rocessing ae 0.90 I 0.04 S Defensive Pfizer Inc 1.44 0.04 Energy EMI -6.47 3acotstaN 10 Greatest impactl ( -) Over /under Contribution weight % to return % Producer Durables 0.19 INTE01 Union Pacific Corp. 1.50 -0.13 Microsoft Corp 1.23 -0.08 Technology 'a 011 Kraft Foods Group Inc. _ -0.18 -0.06 --- Madan Exxon Mobil Corp 1.60 -0.05 Utilities tee 0 -.. trrm 9ly4e Down Intel Corp 0.47 -0.02 0 5 n s 20 1 Source: FactSet 1 Source: BNY Mellon Asset Servicing 'Historical performance prior to July 2, 2012 is linked to the Russell 1000® Index. Advisors listed are current as of March 31, 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.23 2 Russell Investments All Efl Russell IA Investments Russell F Income Review First Quarter 2015 i i RTC Multi- Manager Bond Fund Developments and outlook — first quarter 2015 Fund Activity > There were no material changes to Fund positioning or strategy during the quarter Fund Outlook & Positioning > The Fund is positioned in a way that is cautious but opportunistic towards credit. Continued monetary policy support and reasonable spread levels affirm current overweight, but we are wary of maturing credit cycle and potential illiquidity risk within corporate bond markets > We will continue to take advantage of and refine diversifying currency and country strategies as the credit cycle matures and rates are challenged > We expect sustained demand for high - quality sovereign bonds, even as central bank policies diverge. We anticipate broadly accommodative monetary policy around the world will anchor rates, while diverging economic cycles and policy dynamics will also create relative value opportunities Past performance is not indicative of future results. 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. Advisors listed are current as of March 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. p. Russell Investments AIM RTC Multi- Manager Bond Fund - period ending March 31, 2015 Strategy Annualized Performance Inception Seeks favorable returns comparable to the broad fixed income 102015 Year to date One year Three years Five years to date' market by investing in bonds representing diverse sectors and RTC Multi- Manager Bond Fund 1.94% 1.94% 6.66% 4.51% 5.84% 5.48% ; 1 maturities. Barclays US Aggregate Bond Index 1.61 1.61 5.72 3.10 4.41 4.61 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. Quality distribution),' Fund ( %) Index ( %) HA 45.2 71.7 102015 402014 13.8 4.6 Characteristics Barclays US Aggregate Barclays US Aggregate Fund ondln ex Fund Bondlndex 14.1 11.6_ Total Net Assets $3.378 $18.05T $3.47B $17 61T BBB 15.2 12.0 Current Yield 2.43% 1.96% 2.66% 2134 - BB 4.4 -- Weighted Average Yield to Maturity 2.5% 2.0% 2.7% 2.1% B 2.9 -- Weighted Average Life 6.5 yrs. 7.2 yrs. 6.6 yrs. 7.1 yrs. CCC & Below 3.7 Weighted Average Duration 5.2 yrs. 5.1 yrs. 5.3 yrs. 5.1 yrs. Unrtted 0.8 _ - _ Average Quality' Al Aa2 Al Aa3 Maturity distribution) -- 1 Source: Wilshire Associates except for Total Net Assets y Fund ( %) Index ( %) 0 to 3 Years 36.3 26.0 Fund advisor styles - Sector weightings( %) 3 to 5 Years 22.3 31.4 Target weightings 5 to 7 Years 12.4 17.3 Fund Index 102015 402014 7 to 10 Years 15.7 1 1 Developed Government/ I 23.6 44.2 • Fully discretionary 72.5 72.5 _ Government - Related Alpha Overlay 14.0 14.0 10 to 15 Years 3.1 1.5 Investment Grade Credit 25.6 23.1 15 to 20 Years 2.1 1.7 _ . • Sector Specialist 5.0 5.0 High Yield 5.8 0.0 Lilt Russell Strategies 6.0 6.0 20 to 25 Years 2.2 3.6 Commercial Mortgage Backed 4.2 1.5 -- - Advisor diversification 25+ Years 6.0 7.4 Residential Mortgage Backed 24.4 28.3 ource: Wilshire Associates Asset Backed 5.0 0.5 Credit qualilty exposures and/or maturity distributions may not equal - -- Russell Currency Overlay 100 percent as a result of the fund's use of certain financial instruments Emerging Markets Debt 4.4 2.3 Strategy Western Asset such as Futures, forwards, options, swaps and when issued transac- - - - 5.3% Management Net Cash & Equivalents 7.0 0.0 Ru ssell Absolute Return lions or forward commitments. In the event short positions are created, C Leant they may be reflected as negative weightings in sector allocations, cred- Other 0.0 0.0 Fued ncorte Fund t 1% Western Asset 0.7% it quality exposures and/or maturity distributions. ■ I Management Company 1 Sector Allocations may not equal 100 percent as a result of the 21.0% Macro Currency Group \, fund's use of certain financial instruments such as futures, forwards, 8 0% I options, swaps and when issued transactions or forward commit- ments. In the event short positions are created, they may be reflected Colchester Global as negative weightings in sector allocations. Investors Limited - -- 2 The Other sector includes pooled investment vehicles, certain deriv- 6 0% atives, stocks and other investments not falling within one of the other listed sectors. 3 Source: Wilshire Associates and BNY Mellon Asset Servicing Logan Crcle Scout Investment Inc. / - Partners, L.P. 18.5% 21.0% Brookfield Investment Management Inc. Wellington Management 4.0% Conpanay Advisors listed are current as of March 31, 2015. Russell has the right to engage or terminate an advisor at any time and without notice. 12.0% 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 reflects Barclays' rating methodology for debt instruments that are rated by Barclays. If Barclays does not rate an instrument, S &P and Moody's ratings are used such that if both S &P and Moody's rate an instrument, the lower of the two ratings is used, and if only one rates the instrument, that rating is used. If the debt instrument has not been rated by any of these three ratings agencies, the security is classified as 'Unrated'. p G2 Russell Investments A EA Russell IMAI Investments Private Real Estate Fund Review Fourth Quarter 2014 o RTC Real Estate Equity Fund Developments and outlook — fourth quarter 2014 Fund Activity: RTC -REEF produced a total gross return of 3.68% for 4Q 2014, comprised of 1.16% income and 2.52% appreciation; outperforming its benchmark by 57 basis points ) Appreciation continued to surprise to the upside during the quarter due to continued strong demand from strategic foreign and domestic investors ) MS PPF, Clarion Lion, and Invesco Core outperformed the benchmark by margins of 141, 117, and 39 basis points, respectively JPM Strategic and UBS Trumbull underperformed the benchmark by 37 and 2 basis points, respectively. ) Leverage ratio remained fairly steady at 23.2 %; in line with guideline but slightly above benchmark of 22.6% Fund Outlook & Positioning: ) Rent growth prospects shifting from apartment sector to industrial and office ) Capital market support for the asset class expected to remain strong and support portfolio valuations Completed comprehensive review of current core fund universe ranks. Initiating portfolio re- balance to reflect current research views ) Seeking to build $100 million capacity to accommodate potential new investor contributions ) Looking to increase core - plus /value add exposure in 2015 to add diversification and enhance return profile ) $50 million commitment to "Hire" ranked Core -Plus Fund reflects this view ) Attractive risk - adjusted approach to Core -Plus investing Indexes are unmanaged and cannot be invested in directly. Past performance is not indicative of future results. Advisors are current as of December 2014. 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. *Benchmark is the NCREIF Fund Index Open -end Diversified Core Equity - Equal Weight (NFI- ODCE -EQ) p.28 D2 Russell Investments al Russell Real Estate Equity Fund - period ending December 31, 2014 Strategy Performance Annualized 402014 One year Three years Five years Ten years Employs a Multi- advisor, multi -fund investment approach ap- Russell Real Estate Equity Fund 3.68% 12.91% 12.82% 14.48% 6.80% plied to private core and enhanced core real estate funds. NFI - ODCE -EQ 3.11 12.38 12.24 I 13.75 t 6.73 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 T otal gross returns Characteristics 9 1 RTC- REEF's leverage of 23.2% at 12/31/2014 was within the general Target Market value Market value Three One guideline limit of 30% and slightly above the Benchmark leverage of Core funds weighting % $Millions % of total months % year 22.6 %. Despite a favorable lending environment, overall portfolio le- Morgan Stanley Prime Property Fund 20 -30 223.0 30.1 4.52 15.46 verage is anticipated to remain at a fairly constant level as the under- lying funds are not seeking to increase leverage. J.P. Morgan Strategic Property Fund 20 -30 206.9 27.9 2.74 11.14 1 _ INVESCO Core Real Estate - USA 15 -25 158.1 21.4 3.50 12.35 Property type composition Clarion Lion Properties Fund 20-30 92.0 12.4 I 4.28 13.16 UBS Trumball Property Fund 20-30 58.3 7.9 3.02 11.69 hdustrial 12.1% Apartments 26.5% Benchmark total return breakout % I 402014 Year to date One year Income 1.19 5.07 5.07 Capital Appreciation 1.91 7.03 7.03 Self Storage 1.7% 9 Regional composition -��_ Other 0.3% Retail 19.0% Hotels 1.7% �� ■ PACIFIC 34.2% } Office 38.7% -41 ' i . - ❑ MOUNTAIN 5.1% 0 WEST NORTH CENTRAL 1.3% ■ SOUTHWEST 12.4% irllik ❑ EAST NORTH CENTRAL 5.7°% ■ NO 411L - ❑ M IDEAST RTHEAST 10.9°/ 22.4% • SOUTHEAST 8.0% Funds listed are current as of December 31, 2014. 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 L Russell Investments AM - - - - - V Russell Investments Appendix Absolute Return Fixed Income 1 1 1 I I I i RIFL Absolute Return Fixed Income Fund - period ending March 31 2015 Strategy Annualized Performance Inception Seeks to outperform the 3 Month LIBOR Constrained Index 102015 Year to date One year Three years Five years to dater (USD Hedged) over an interest rate cycle. RIFL Absolute Return Fixed Income Fund 1.98% 1.98% 2.80% - -% °/ 2.80% Barclays 3 Month USD LIBOR Cash Index 0.07 0.07 0.25 -- -- 0.24 Quality istributions 1 Inception 03/31/14. The date shown represents the date the index comparison began and may not be the actual index inception date. 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 69.37 100.0 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 1.9 0.0 in connection with their use. A 5.5 0.0 BBB 14.4 0.0 102015 402014 Characteristics Barclays 3 Month USD Barclays 3 Month USD BB 6.7 0.0 Fund LIBOR Cash Index Fund LIBOR Cash Index B 0.9 1 0.0 Total Net Assets $116.09M $149.60T $113.75M $149.51T CCC & Below 0.0 0.0 Weighted Average Yield to Maturity 0.48% 0.27% 0.27% 0.26% 1 Unrated 1.2 0.0 Weighted Average Duration 0.94 0.25 0.00 0.25 1 Source: Wilshire Average Quality' Aa3 I Aaa Aa2 Aaa 1 Source: Wilshire 1 Q Currency Exposure Y + P () Portfolio Sector Weightings ( %) Fund Manager Styles USD 29.02 Fund Target Weightings 102015 402014 CAD 2.30 Cash 59.88 1= Currency . 55 55 GBP 1.80 Govt 7.09 ■ Multistrat 45 45 JPY 0.01 Govt related (Quasi) 7.33 SGD _ 0.00 Finance 11.60 Manager Diversification Industrial 10.50 Utility 2.68 1 Q Currency Exposures ( - ) Portfolio ABS _ . 0 _ Russell Other 0.12 -- - Investments SEK 1.58 _ - 5% MYR -1.61 1 The Other sector includes pooled investment vehicles, certain deriv MXN -3.20 atives, stocks and other investments not falling within one of the other listed sectors. AUD -3.90 Blue Bay EUR 6.89 Investment Grade 1 Source:Wilshire Absolute Return Bond Investment Fund 45% Managers listed are current as of March 31, 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 reflects Barclays' rating methodology for debt instruments that are rated by Barclays. If Barclays does not rate an instrument, S &P and Moody's ratings are used such that if both S &P and Moody's rate an instrument, the lower of the two ratings is used and if only one rates the instrument, that rating is used. If the debt instrument has not been rated by any of these three ratings agencies, the security is classified as `Unrated'. p.31 I �i. Russell Investments Aim RIFL Absolute Return Fixed Income Fund Fund positioning — first quarter 2015 Significantly positive + Positive Negative -- Significantly negative Strategic Positions Justification Quarterly Changes over period Impact* Exposure to credit spreads • Credit risk compensated over time + Positioning maintained. Focus on European credit (particularly sovereign) Long duration position • Interest rate risk rewarded over time + Short duration in January later cut to • Diversification from credit risk neutral - i • Systematic exposures to Value, Carry and Trend Exposure to currency return factors tend to perform over the long -term _ Positioning maintained factors • Diversify the Fund's dominant return drivers (credit and duration) Tactical Tilts Justification Quarterly Changes over period Impact Long European credit, • Attractive yields given stable outlook and ECB ? + Exposure increased modestly including periphery backing /quantitative easing Modest 'flattener ' across • US economic growth expectations imply faster Positioning maintained yield curve pace of early rate hikes than market pricing Short AUD, EUR versus • Valuation Positioning maintained. Long JPY and Long USD and JPY • Expected relative economic performance ++ modest short CHF position Past performance is not indicative of future results. There is no guarantee that any stated expectations will occur. * Inception date 03/31/2014 This is a fund of the Russell Institutional Funds, LLC; it is a private placement. This is not a mutual fund. p.32 Managers listed are current as of March 2015. Russell has the right to engage or terminate a manager at any time and without notice. G2 Russell Investments AN RIFL Absolute Return Fixed Income Fund Manager s co re ca rd l — first quarter 2015 or a ncer Relative Performance vs performance Key Fund Benchmark + ++ > 3.0% ++ 1.0% to 3.0% + 0.25% to 1.0% Flat -0.25% to 0.25% -0.25% to -1.0% -1.0% to -3.0% < -3.0 Manager BlueBay Asset Management Macro Currency Group ' Positioning Strategy — Currency Overlay Strategy Target Weight ( %) 45.0 50.0 5.0 Style Fully Discretionary Active Currency Russell Strategies Quarter performance vs. Fund Benchmark ++ ++ - - One Year performance vs. Fund Benchmark* + n/a + ++ Manager and Strategy Highlights Macro Currency Group — The best performing manager in the Fund during the quarter, Performance was positive throughout the quarter, and was driven primarily by a "structural" long USD view. A "long volatility" bias was also materially positive, specifically long positions to the JPY and USD against shorts to the AUD and NZD. The fund's positioning strategy's underperformance occurred almost exclusively in January, as a short CHF position in `carry' and `value' and a long CAD position in `trend' detracted significantly following policy surprises from both central banks. 1 Past performance is not indicative of future results. Fund Benchmark = Barclays 3 Month USD LIBOR Cash Index 2 The target weight row represents the most current target weightings for the underlying managers. Target weights may be changed by Russell at any time and without notice. Any commentary about a security is in reference to its affect on the Fund performance, it is not a recommendation to purchase or sell any specific security Managers listed are current as of March 2015. Russell has the right to engage or terminate a manager at any time and without notice. Indexes and /or benchmarks are unmanaged and cannot be invested in directly. `Inception date 3/31/2014 G2 Russell Investments p.33 **An investment division division of Principal Global Investors AM This is a fund of the Russell Institutional Funds. LLC; it is a private placement. This is not a mutual fund. RIFL Absolute Return Fixed Income Fund Developments and outlook — first quarter 2015 Fund Activity > A modest short duration position held in January was neutralized during the quarter, and remained roughly neutral at quarter -end > Credit exposure increased during the quarter, particularly among European sovereign credit, in response to support from the ECB and anticipated spread compression > Overall, currency risk within the Fund was reduced, driven by the fund's discretionary strategies. However, long USD position maintained. Fund Outlook & Positioning > Overweight to European credit (mostly via sovereigns, but also corporate) is reflective of supportive supply /demand dynamics, as the ECB purchases significant quantities of sovereign debt while new issuance is expected to remain low. This is likely to cause a `search for yield' and further spread contraction, at least over the near -term. > However, we remain aware and watchful of credit headwinds in Europe (valuation) and U.S. (supply volumes) > Neutral duration exposure (from short previously), given continued monetary policy support and soft economic data; but expect there might be opportunities to short US duration should the likelihood of improved economic data increase. > Long USD position remains appropriate given divergent growth /monetary policy outlook compared to other regions Managers listed are current as of March 2015. Russell has the right to engage or terminate a manager at any time and without notice. There is no guarantee that stated expectations will occur. This is a fund of the Russell Institutional Funds, LLC; it is a private placement. This is not a mutual fund. p.34 2 Russell Investments AM