Agenda 02-03-16BOYNTON BEACH FIREFIGHTERS' PENSION FUND
QUARTERLY BOARD MEETING
WEDNESDAY, February 3.2016 (u) 9:OOAM
Renaissance Commons Executive Suites
1500 Gateway Blvd., Suite 220
Boynton Beach, FL 33426
AGENDA
I. CALL TO ORDER — Luke Henderson, Chairman
II. AGENDA APPROVAL -
III. APPROVAL OF MINUTES— Quarterly Meeting 11-04-2015
IV. FINANCIAL REPORTS:
A) Bogdahn Consulting — Dave West, Consultant
1) Investment Performance Review for Quarter 12-31-2015
B) Gabriel, Roeder, Smith & Co —
1) Actuarial Valuation PYE 9-30-2015 — Special meeting or May quarterly
Meeting date of May 4t'.
2) Updated GASB No. 67 Disclosure Information dated 1-22-16
C) Davidson, Jamieson & Cristini — Richard Cristini, CPA, CGFM &
Jeanine Bittinger, CPA
1) Audit Report/ Financial Statements for PYE 9-30-2015
Attorney Report — Adam Levinson
1) Client Conference March 6 — 9, 2016
2) DROP loan provision — status
3) Mutual Consent Agreement — City and Local 1891 — Letter dated 11-20-15
4) Insurance Premium Tax DataBase — Chapter 175/185 —Memo 12-5-2015
5) Ordinance 10-016 — Ad Hoc Supplemental Benefit and Administrative Rules
V. CORRESPONDENCE —
1) Notice of Security Interest, 11-16-15 — Crescent Direct Lending
VI. OLD BUSINESS —
1) Deputy Chief Hoggart — Transfer of contributions — status
2) Joint Request for Proposals for Pension Administrator — Matt Petty on update/status
VII. NEW BUSINESS:
A. Invoices for review and approval:
1. Schroder Fixed Income Mgt — Qtry fee -03-31-2016 - $
2. DSM Capital Partners LLC — Qtry fee 03-31-2016 - $23,735.95
3. Klausner, Kaufman, Jensen & Levinson — Service Oct, Nov & Dec 2015 -
$9,832.50
4. Bogdahn Group — Consulting Fee 12-31-2015 withdrawn R&D Account
$8,375
5. Anchor Capital Advisors — Quarterly fee —12-31-2015 - $
6. GRS - Service Nov 2015 - $5,472 & Dec 2015 - $3,653
7. Alerus — Qtry DROP Admin Fee - $500
8. Regions Trust Custodial Fee - 12-31-15 $5,000
9. Intercontinental- Management Quarterly fee 3rd Qtr 2015 - $9039.75
withheld from dividend reinvestment plan.
10. Davidson, Jamieson & Cristini — Progress billing Audit - $6,000
B) Application for Disability Retirement:
1) Rani DeMarco- Application, HIPPAform & MMI paper from Doctor
VIII. PENSION ADMINISTRATOR'S REPORT:
1. Benefits as of 01-01-2016
2. Transition from Salem to Regions - Update
IX. PUBLIC AUDIENCE COMMENTS:
(Limited to three (3) Minutes)
X. ADJOURNMENT:
Next Meeting Date — WEDNESDAY, May 4, 2016 @ 9:OOAM—
Renaissance Commons Executive Suites
If you cannot attend, please call Barbara @ 561/739-7972.
NOTICE
IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY THE FIREFIGHTERS' 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.
THE BOARD (COMMITTEE) MAY ONLY CONDUCT PUBLIC BUSINESS AFTER A QUORUM HAS BEEN ESTABLISHED. IF NO QUORUM IS
ESTABLISHED WITHIN TWENTY MINUTES OF THE NOTICED START TIME OF THE MEETING THE CITY CLERK OR DESIGNEE WILL SO NOTE
THE FAILURE TO ESTABLISH A QUORUM AND THE MEETING SHALL BE CONCLUDED. BOARD MEMBERS MAY NOT PARTICIPATE FURTHER
EVEN WHEN PURPORTEDLY ACTING IN AN INFORMAL CAPACITY.
2
BOYNTON BEACH FIREFIGHTERS' PENSION FUND
QUARTERLY BOARD MEETING
WEDNESDAY, February 3.2016 a 9:OOAM
Renaissance Commons Executive Suites
1500 Gateway Blvd., Suite 220
Boynton Beach, FL 33426
AGENDA
I. CALL TO ORDER — Luke Henderson, Chairman
H. AGENDA APPROVAL -
III. APPROVAL OF MINUTES — Quarterly Meeting 11-04-2015
IV. FINANCIAL REPORTS:
A) Bogdahn Consulting — Dave West, Consultant
1) Investment Performance Review for Quarter 12-31-2015
B) Gabriel, Roeder, Smith & Co —
1) Actuarial Valuation PYE 9-30-2015 — Special meeting or May quarterly
meeting date of May 4a'.
2) Updated GASB No. 67 Disclosure Information dated 1-22-16
C) Davidson, Jamieson & Cristini — Richard Cristini, CPA, CGFM &
Jeanine Bittinger, CPA
1) Audit Report/ Financial Statements for PYE 9-30-2015
Attorney Report — Adam Levinson
1) Client Conference March 6 — 9, 2016
2) DROP loan provision — status
3) Mutual Consent Agreement — City and Local 1891 — Letter dated 11-20-15
4) Insurance Premium Tax DataBase — Chapter 175/185 —Memo 12-5-2015
5) Ordinance 10-016 — Ad Hoc Supplemental Benefit and Administrative Rules
V. CORRESPONDENCE —
1) Notice of Security Interest, 11-16-15 — Crescent Direct Lending
VI. OLD BUSINESS —
1) Deputy Chief Hoggart — Transfer of contributions — status
2) Joint Request for Proposals for Pension Administrator — Matt Petty on update/status
VII. NEW BUSINESS:
A. Invoices for review and approval:
1. Schroder Fixed Income Mgt — Qtry fee -03-31-2016 - $
2. DSM Capital Partners LLC — Qtry fee 03-31-2016 - $23,735.95
3. Klausner, Kaufinan, Jensen & Levinson — Service Oct, Nov & Dec 2015 -
$9,832.50
4. Bogdahn Group — Consulting Fee 12-31-2015 withdrawn R&D Account
$8,375
5. Anchor Capital Advisors — Quarterly fee — 12-31-2015 - $
6. GRS - Service Nov 2015 - $5,472 & Dec 2015 - $3,653
7. Alerus — Qtry DROP Admin Fee - $500
8. Regions Trust Custodial Fee - 12-31-15 $5,000
9. Intercontinental- Management Quarterly fee 3rd Qtr 2015 - $9039.75
withheld from dividend reinvestment plan.
10. Davidson, Jamieson & Cristini — Progress billing Audit - $6,000
B) Application for Disability Retirement:
1) Rani DeMarco- Application, HIPPAform & MMI paper from Doctor
VIII. PENSION ADMINISTRATOR'S REPORT:
1. Benefits as of 01-01-2016
2. Transition from Salem to Regions - Update
IX. PUBLIC AUDIENCE COMMENTS:
(Limited to three (3) Minutes)
X. ADJOURNMENT:
Next Meeting Date — WEDNESDAY, May 4, 2016 @ 9:OOAM—
Renaissance Commons Executive Suites
If you cannot attend, please call Barbara @ 561/739-7972.
NOTICE
IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY THE FIREFIGHTERS' 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.
THE BOARD (COMMITTEE) MAY ONLY CONDUCT PUBLIC BUSINESS AFTER A QUORUM HAS BEEN ESTABLISHED. IF NO QUORUM IS
ESTABLISHED WITHIN TWENTY MINUTES OF THE NOTICED START TIME OF THE MEETING THE CITY CLERK OR DESIGNEE WILL SO NOTE
THE FAILURE TO ESTABLISH A QUORUM AND THE MEETING SHALL BE CONCLUDED. BOARD MEMBERS MAY NOT PARTICIPATE FURTHER
EVEN WHEN PURPORTEDLY ACTING IN AN INFORMAL CAPACITY.
2
&_ / (- /,I - 1,5,
MINUTES OF THE BOYNTON BEACH FIREFIGHTERS' PENSION FUND
QUARTERLY BOARD MEETING HELD ON WEDNESDAY, NOVEMBER 4, 2015, AT
9:00 A.M. AT RENAISSANCE COMMONS EXECUTIVE SUITES, CONFERENCE
ROOM 1, 1500 GATEWAY BLVD, SUITE 220, BOYNTON BEACH, FLORIDA
PRESENT:
Luke Henderson, Chair
Helen "Ginger' Bush
Matthew Petty
Jonathan Raybuck (arrived 9:98 a.m.)
Bob Taylor
Chief Ray Carter, Ex -Officio member
Also Present:
Mike Smollen
I. CALL TO ORDER
Barbara LaDue, Pension Administrator
Adam Levinson, Board Counsel
Chair Henderson called the meeting to order at 9:17 a.m.
!I. AGENDA APPROVAL
Barbara LaDue, Pension Administrator, added to IV., Financial Reports - Item C,
Attorney Report, No. 4 Request RFP for Third -Party Administrator, and IIV., New
Business - Item C, Backup Material for Custodial Services to the agenda.
(Jonathan Raybuck arrived 9:18 a.m.)
Attorney Levinson pointed out his office sent a letter dated October 5th to Human
Resources Director, Julie Oldbury and Firefighters' Union President Dean Kinser. A
letter to Tim Howard, Director of Financial Services, dated August 10th, and a one page
question and answer sheet from the State Division of Retirement was included in the
meeting backup.
Motion
Mr. Petty moved to approve the amended agenda. Mr. Taylor seconded the motion that
unanimously passed.
III. APPROVAL OF MINUTES — Special Meeting of 06-18-2015
Quarterly Meeting 08-05-2015
Ms. LaDue noted two changes: on page six of the June 18tt' meeting, GASBY 67, and
the August 5, 2015, meeting was a Quarterly meeting, not a Special meeting.
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Firefighters' Pension Fund
Boynton Beach, Florida November 4, 2015
Motion
Mr. Raybuck moved to approve the minutes as amended. Ms. Bush seconded the
motion that unanimously passed.
IV. FINANCIAL REPORTS:
A) Bogdahn Consulting — Dave West, Consultant
1) Investment Performance Review for Quarter and PYE end
September 30, 2015
Dave West, Bogdahn Consulting, advised markets were crushed and they had a
slightly negative return for the September quarter. Equity and international equity
markets corrected, but were still negative despite the Board's asset allocation efforts.
Averaged in, the Plan did not earn the actuarial required rate of return; however,
earnings in October recouped all that was lost. The Plan was off to an awesome start
this fiscal year. From an actuarial standpoint with five-year smoothing, the five-year
average will be 8% and the return would not impact the City's contribution.
Attorney Levinson requested Mr. Vilest compare the Fund's performance to other plans
across the State. Mr. West commented for the quarter, net, the total Fund was down
5%. For the fiscal year, net of investment manager fees, the Fund was at .75%. The
Fund outperformed the passive policy benchmark. Gross, the Fund in the public fund
peer group was in the top 14th percentile. The median for all public funds showed the
average pension system across the country lost .50%.
Mr. West explained most of the damage was from value stocks. High income dividend
stocks and financials did not perform well. Anchor was not able to provide an offset,
and they did not have good quarter. For the year, they were down 7%. The only
manager standing out was Anchor who was put on an internal notice. They were
disappointed by the results and the Bogdahn team was researching why this occurred.
The S&P 500 Index was down half a point for the year. DSM, the large cap growth
manager did well and was in-line for the quarter. Fiscal gear -to -date, it was up 8.5%
versus the growth benchmark of 3%, ranking in the top 7t percentile of its peer group
rankings.
The mid cap fund was upside for the year; however, Mr. West pointed out they picked
up 2% by having the mid cap orientation.
WCM had an excellent quarter and was down less than the benchmark resulting in
principal preservation. The American and Euro Pacific Funds declined less than the
markets. The new equity team with WCM more than doubled the return of the
benchmark and the Euro Pacific Fund provided substantial downside protection and
outperformance.
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Firefighters' Pension Fund
Boynton Beach, Florida November 4, 2015
The Schroders Fixed -Income Fund, fiscal year-to-date, earned 3.5%, and was in the top
8th percentile of their peer group
Treasury Inflated Protection Securities (TIPS) did not do anything, but they were
underweight in the allocation. The local bond portfolio was impacted by the sell-off of
equities and credit. The PIMCO Diversified Income Fund had heavy exposure to non-
governmental agency credit. With the credit market selling off, they struggled. For the
year, they were down 1.1 %, but it is still a strong performing fund.
Templeton had poor returns for the quarter. Mr. Petty inquired about Templeton's
performance. Mr. West explained their long-term numbers were impacted negatively
primarily by two quarters. Mr. Petty inquired if there was a reversal, why the benchmark
was up and they were down and learned this fund is managed by Templeton's
Investment Policy, which mandates the interest rate duration is 1.5 years. The Board
was looking for funds with minimal exposure to changes in interest rates, and most of
the return was coming from an active currency position, which was also unlike the
index.
The best performer was real estate. For the year, Intercontinental earned 14% and
ASB earned 15% which helped stabilize the Fund.
Middle market debt investments were a portfolio of loans to mainstream corporate
America and to companies too small to be bond rated. These investments were not
subject to fluctuations and not publicly traded. For the year, Crescent Direct Lending
earned 1.55% and was a new fund. LBC Credit Partners were up 8.35% and exceeded
the investment grade returns. Together, they earned 5.67% and the allocations worked
well. Mr. West anticipated these investments should work well next year.
The Fund opened the year with $78,184,621. Contributions totaled $6,384,156;
distributions for pension benefits were $4,763,804; investment manager fees as
invoiced and paid by the custodian were $252,292; and other administrative expenses
for Plan operations were $163,866. When Mr. West combined all the income from real
estate, operating distributions, bond coupons and stock dividends with the appreciation
and depreciation, the Fund netted $933,552. The total Fund was $80,322,367.
From an asset allocation standpoint, Mr. West thought they would be overweight with
equity, but suggested they let the allocation remain. The contribution to rebalance to
policy targets was evenly distributed to the asset allocation structure and no actions
were necessary. He recommended continuing to have a substantial allocation to real
estate and a slight overweight in equities.
With the rebound in October, Mr. West thought real estate would add another 2.75% or
3%. He was unsure about bonds, but thought there would be a positive return. Equities
were up 8% and foreign equities were performing well. He thought 3% may have
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Firefighters' Pension Fund
Boynton Beach, Florida November 4, 2015
already been recouped. Mr. West thought the Fund was optimally positioned going
forward.
B. Gabriel, Roeder, Smith & Co —
1) Memo 10-14-2015 authorization from Board to work directly with City to
Comply with the GASB 68 disclosure requirement.
Chair Henderson reviewed this item. Attorney Levinson clarified an email dated
October 14th in the meeting backup, indicates Mr. Strong did not remember whether the
Board authorized him to work with the City regarding the GASB 68 requirements. Mr.
Strong would do the work if authorized.
Motion
Mr. Taylor moved to authorize GRS work with the City regarding the GASB 68
requirements. Mr. Raybuck seconded the motion that unanimously passed.
2) Senate Bill 172 — Default Treatment of Future 175 Money — letter 10-
13-15
Attorney Levinson referred the members to the letter from his office dated October 5th to
Human Resources Director Julie Oldbury and Dean Kinser, Union President, as well as
a letter from GRS dated October 13th. Attorney Levinson explained the October 5th
letter pertained to Senate Bill (SB) 172, regarding a mutual consent agreement
proposed by the City. They also received a letter from the Firefighters' Union Local
1891. Both parties put something on the table. Chair Henderson explained the purpose
of the letter was to assist the parties with SB 172, which would pertain to next year's
premium taxes.
The Firefighters' Pension Board receives a check from Tallahassee for about $963,000.
If the Union and the City do not agree on how to use the premium taxes, the default is
split 50150. Attorney Levinson read his letter which summarized how the Ad Hoc
Supplemental Benefit would work, adopted by Ordinance 10-16. The Plan also has a
Cost of Living Adjustment (COLA). The members pay 5% for the COLA and 7% regular
funding for the Plan for a total of a 12% member contribution. Because the cost of the
COLA could increase, they would use those monies for it. The money is dedicated for a
supplemental benefit. The Board had discussed taking the money and dedicating it to
pay down the unfunded liability which does not reduce the City's contribution. They
want to be funded higher than 60% and there are benefits to paying down the unfunded
liability. The City would pay less interest.
Chair Henderson explained there are a lot of questions between the City and Union and
the State is not giving answers. When they look at the Boynton Beach Ad Hoc benefit
and last year's distribution, the Board needed to know if the State counts that benefit as
a share plan and if they set a base amount because the Union was asking Chair
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Firefighters' Pension Fund
Boynton Beach, Florida November 4, 2015
Henderson what it was. While the letter from the State explained it, it was not perfectly
clear and they asked the State for further clarification. The City Manager said they had
to save the City money for pension costs and a special meeting was held, but the
amount was not yet determined. The Pension Board allowed the City to work with GRS,
and the Union and GRS were looking at the numbers to create packages that reduce
costs. Chair Henderson commented SB 172 put a halt to the negotiations. The Board
was trying to give some direction and answers on where they are with SB 172 and
thought they were getting close to an answer.
Attorney Levinson noted GRS has seen pension reform and could make suggestions. If
the City had a dollar amount they wanted to save, the actuary and Board could play a
role to create those savings. A pension is based on a formula with a 3% multiplier.
After 20 years, the employee accumulates a 60% benefit. The benefit is based on
compensation excluding incentive pay or bonuses. Some cities give other benefits
during a particular contract period as opposed to wage increases. There are many
levers that can be used. This year's premium taxes would not be impacted, but they
could still agree to earmark some of the funds if there was mutual agreement to pay
down the unfunded liability.
B) Attorney Report — Adam Levinson
1) Client Conference March 6 — 9, 2016
Attorney Levinson announced his office holds a conference each year and it was
scheduled for March 6th to the 9th. He pointed out the Division of Retirement has their
Trustee School November 17th to the 19t'- The Division was supposed to hold a
webinar, but it was postponed. He hoped they would give more guidance on the current
issues and thought it would be a worthwhile conference to attend.
2) DROP loan provision — status
Attorney Levinson explained the Board was asked to look into implementing the DROP
Loan program used by the Police. Firefighters retire into DROP, lock in benefits and
instead of leaving, the money that would have been paid to the employee is paid to the
DROP account. The IRS allows employees to borrow against their DROP accounts in
accordance with IRS provisions. The Police Plan adheres to those regulations. A
Firefighters' DROP Loan program would need an Ordinance change. One way to effect
this change was to give the Board the authority to implement a DROP Loan program
through the Collective Bargaining Agreement and the Ordinance would be adopted.
Another way to implement the program if the parties did not want to negotiate was to
waive bargaining on the DROP Loan provisions and if the City was agreeable, the City
could adopt the provisions. The DROP Loan program is paid for by the member making
the loan and it was a no cost item to the City.
Mike Smollen, former Board member, commented the loan participant was paying back
the loan at 3.5% while foregoing the 7% they would have made on the same amount of
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Firefighters' Pension Fund
Boynton Beach, Florida November 4, 2015
MMM—
money. Ms. LaDue explained they were returning the principal and interest and as each
payment is made, they earn 7% on the payment. Mr. Smollen did not favor it being a
negotiated item. Attorney Levinson pointed out the City and Union have the right to
bargain for it, and the City may not want to make concessions. He asked how the
Police ensure the program is cost neutral. Ms. LaDue explained she does not charge
anything additional to administer the program and she maintains the DROP account
balances. It is set up where they automatically have the payment made from their
pension benefit check. In the end, the principal is paid plus the earnings and it is not
taxed. It is a fairly automatic process and this Board would ask for the same thing. It
would require an Ordinance change. Chair Henderson thought it would probably be
lumped in the package for pension reform and the Board did not need to take action on
it right now.
Chief Carter inquired if the Board would be supportive of the DROP Loan program and
learned they would.
3) NCPERS Code of Conduct packet for review and discussion
Attorney Levinson explained the National Conference of Public Employee Retirement
Systems (NCPERS) put together a Code of Conduct for providers of public pension
plans and he referenced the October 14"' memo in the meeting backup. Attorney
Levinson noted there are large institutions around the country that are quite hostile to
governmental pension plans and routinely make recommendations to replace Defined
Benefit plans with Defined Contribution plans. NCPERS was attempting to not hire any
money managers, consultants or institutions making donations to these groups that are
openly hostile to Defined Benefit plans. Three options were listed:
Adopt the NCEPRS Code and ask providers to endorse the Code;
Incorporate the NCPERS Code of Conduct as part of their service provider
searches. The Board could ask if the providers supported any organizations they
think are hostile to public pensions; and
Notify NCPERS of the Board's decision to adopt the Code of Conduct, but not
enforce the Code by holding providers accountable.
As fiduciaries, the members have to look out for the best interests of their members and
beneficiaries and it is not in their best interest to have pension fees going to managers
or those that want to undermine or close public pension retirement systems. There has
been a lot of negative press.
Mr. Taylor commented, philosophically, if they adopt anything, it should have teeth. He
favored recommendation two. Mr. Raybuck asked why the Leroy Collins Institute was
not on the list. Attorney Levinson explained the Leroy Collins Institute was a Florida
based institution and the list changes. Leroy Collins may eventually be on the list and
he noted there was an effort being made by the FPPTA to reach out to the Leroy Collins
Institute to ensure they paint a broader perspective. Florida has a law its cities have to
actuarially fund their plans over a 30 -year period. In some states, the legislature or
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Firefighters' Pension Fund
Boynton Beach, Florida November 4, 2015
governor take the valuation and ignore it. They only contribute what they want. New
Jersey had an egregious failure to fund their plan. In Florida, the problem was not the
failure to fund; it was bad performance in 2008 and 2010, changing their assumptions
which in the long term lowers the funded ratio, but then would later increase.
Mr. West cautioned they would need to review their current providers. Many larger
custodian entities were supportive of Defined Contribution plans and were contributors.
They have a custodian search and the providers that responded would not make the
list. If the Code was adopted, they must be careful how they proceed and not reduce
the universe they work within. They could encounter unexpected situations.
Mr. Smollen commented the idea was to change their behavior and there was a
business cost. It could be a deciding factor in selecting firms the Plan deals with. Chair
Henderson suggested this item be added to the next agenda. Mr. West pointed out this
was outside of his research, but he would get the list and go from there. Many firms may
not know they are contributing to the perception. Attorney Levinson advised the Code
could be adopted prospectively, but it should not be the primary driver of who the Board
hires.
4) Joint Request for Proposal for Administrative Services
Mr. Petty explained he used a sample RFP for Administrative Services Attorney
Levinson's office used in the past and modified it. He explained there are two RFPs; a
joint request created by Attorney Bonni Jensen using the same model they have with a
dedicated individual in the office providing services for the Police and Fire Department
personnel and an RFP for a Third -Party Administrator to provide what the Fire
Department needed. It would have to be reviewed by legal and it was culled from other
pension plan RFPs. He favored issuing both RFPs to see what comes back. Chair
Henderson commented it was all contingent on when Ms. LaDue wanted to retire. Mr.
Petty thought the RFPs should be issued which would allow interested parties to
respond by the next meeting in February. They could shortlist the respondents and
contact the Police Plan for their shortlist.
Chair Henderson thought there may be significant disparities in the cost, and they would
all do the same job. They could also rule one out and a decision did not have to be
made in February Mr. Petty agreed, but wanted the responses for the next meeting.
They can have a special meeting before the May meeting to interview the parties and
select one, but in his timeframe he thought the search process should be finished by the
May meeting. The new person could attend and then Ms. LaDue could spend time with
him/her and retire at her convenience. Ms. LaDue explained she was planning to retire
in December 2016, but would stay as long as was needed to ensure the transition was
smooth.
Mr. Taylor wanted to ensure the scope of
document and legally ensure the language
could be addressed in six months and the
7
nservices was accurately
in the RFP was correct.
make the transition. He
addressed in the
He thought this
thought the RFP
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Firefighters' Pension Fund
Boynton Beach, Florida November 4, 2015
was well done, he was just unsure it encompassed all the needed duties. Mr. Petty
explained he had consulted with Ms. LaDue and used Attorney Jensen's RFP. He also
included other duties as needed as a catch-all.
Attorney Levinson advised he would label one RFP a Third -party Administrator and the
other as an In -House Administrator. Ms. LaDue reminded the members the Resource
Center was already on board in case something happened to her and the Pension
Resource Center was setting up the website. Attorney Levinson commented they could
have a hybrid plan and require a pension firm to dedicate one individual to be available
at specific times. Mr. Petty pointed out he discussed this at the last Florida Pension
Plan Trustee Association (FPPTA) Conference and they said tell us what you want and
we will tell you what it costs. Mr. Taylor thought it would be very complex to evaluate
each proposal if they designed an RFP to capture all the scenarios. It was important
the RFP be clear and ask them to describe their service model. The Board had to lay
out what the Board's expectation was. Mr. Petty's intention with the Third -Party
Administrator was in case something happened, but noted they have the Pension
Resource Center.
Chief Carter pointed out whatever they request will dictate what proposals would be
received. Each time Chief Carter calls West Palm Beach regarding his pension, he is
asked what plan he belongs to and each time, he speaks with the same person. The
same person does all the work for the West Palm Beach Firefighters' Pension.
Attorney Levinson explained they know who the providers are. The Pension Resource
Center is the largest pension service provider, and they can advertise the position on
the City's website. They can send it to usual the candidates, reach out to the FPPTA
and send it via email. The difficult part was advertising it to administrators who would
leave their jobs to administer the Firefighters' Plan.
Mr. Taylor inquired what the prevailing practice in the industry was. If it was to have a
dedicated person with access to another resource base or just use a Third -Party
Administrator. If so, it was not necessary to look at something other than what the
Board already has. Attorney Levinson explained it was a function of how large the plan
is and how much they want to spend. He advised the City of Miami has four to six
employees dedicated to the plan because of the number of employees. The Boynton
Plan was not a small or overly large plan so they were caught in the middle. Mr. Taylor
commented Bethesda Hospital has a huge plan operated by a Third -Party Administrator
for years. There was no dedicated in-house staff other than one individual who could
answer basic questions. Everything else goes to the Third -Party Administrator. Attorney
Levinson thought there may be people in Finance or Human Resources that may have
skills that would be useful, that could be sent an RFP. The City may or may not be
willing to continue this relationship. Mr. Taylor suggested the decision be made before
the RFP is issued.
Chair Henderson clarified the Firefighters' Pension Plan is issuing an RFP for a Third
Party Administrator and the Police Pension Board was issuing an RFP for an In -House
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Meeting Minutes
Firefighters' Pension Fund
Boynton Beach, Florida November 4, 2015
Administrator. The two will meet and decide. Attorney Levinson advised he could
provide candidates. Benefits USA was another large pension administration firm. Mr.
Taylor favored mailing the RFPs by certified mail, return receipt requested. Mr. West
commented they could obtain names from the FPPTA vendors list, but it will be a
challenge to assess capacity in terms of what they want.
A suggestion was made to give tentative dates to the Police Pension Board for a joint
meeting. Attorney Levinson would work with Mr. Petty to tailor the RFP and advised a
motion to send out the RFP was needed.
Motion
Mr. Taylor so moved. Mr. Raybuck seconded the motion that unanimously passed.
Discussion followed the responses would be due January 31St. The members also
thought they should include the dates they were contemplating holding interviews or to
give a time frame in March in the RFP. Attorney Levinson thought including the dates
would help manage conflicts. Mr. Taylor also suggested the individual who has direct
oversight of day-to-day operations be available for the meeting.
Ms. LaDue explained when the Police receive their responses, they want the
Firefighters' input. Chair Henderson thought each Board could attend the other's
meetings and it was decided there would be a meeting just dedicated to this item on
Wednesday, March 16tt' at 9 a.m.
5) Deputy Chief Hoggart — Transfer of contributions- status
Attorney Levinson reviewed his letter dated August 10th that was sent to the Finance
Director, Tim Howard. After receiving the letter, Mr. Howard moved the Deputy Chief
into the Plan and they were receiving contributions into the Plan through payroll
deductions. The actuary still had to calculate what the Deputy Chief would owe due to
the General Employees having a 7% contribution and the Firefighters' Plan having a
12% contribution. He had to pay the 5% difference for the last three years. Attorney
Levinson explained the process that would be followed.
V. CORRESPONDENCE-
1)
ORRESPONDENCE-
1) Salem Trust —Recent Audit —June 2015 SSAE 16 available for review
Mr. West reviewed the follow up audit was fine and Salem worked through all of their
issues. The auditor had also confirmed everything was correct.
VI. OLD BUSINESS —
1) Scheduled 2016 Quarterly Board Meetings — Change February 2016 meeting
date to Wednesday, February 10, 2016 @ 9:00 AM.
9
Meeting Minutes
Firefighters' Pension Fund
Boynton Beach, Florida November 4, 2015
Ms. LaDue wanted to change the next meeting from February 3rd to February 10th
because that was when the auditors appear to give the Firefighters' Audit Report and
February 9th was a Police Pension audit meeting. After discussion, the member's left
the date February 3rd, plus the Special meeting March 16th 9 a.m.
VII. NEW BUSINESS:
A. Invoices for review and approval:
1. Schroder Fixed Income Mgt — Quarterly fee -12-31-2015 - $
2. DSM Capital Partners LLC — Quarterly fee 12-31-2015 - $
3. Klausner, Kaufman, Jensen & Levinson — Service July, August &
September 2015 - $8,190.
4. Bogdahn Group — Consulting Fee 9-30-2015 withdrawn R&D
Account $8,375
5. Anchor Capital Advisors — Quarterly fee — 09-30-2015 - $
6. GRS - Service Sep 2015 - $2,968
7. Alerus — Quarterly DROP Administration Fee - $500
8. Salem Trust Custodial Fee 6-30-15 - $8,126.17 charged to
account
9. Intercontinental- Management Quarterly fee 2nd Quarterly 2015 -
$8,812.79 withheld from dividend reinvestment plan
10. ASB Real Estate Fund — Quarterly Fee 9-30-2015 withheld -
$8,674.91
Chair Henderson noted some invoices were not received. He requested a motion to
pay them as long as they were in within the normal range.
Motion
Mr. Taylor so moved. Ms. Bush seconded the motion that unanimously passed.
B) Retirement Benefit Verification:
1) Michael Besosa — DROP Retirement
Chair Henderson reviewed Mr. Besosa's benefit, which was reviewed by the actuary.
He advised this was for information only.
C) Custodial Services:
Chair Henderson commented many Board members were unhappy with Salem Trust
over the last year. After Salem representatives met with the Board, Ms. LaDue has had
nothing but problems with them. Chair Henderson gave her direction to issue an RFP
to see who else could perform the service and Ms. LaDue vetted the responses as
follows:
10
Meeting Minutes
Firefighters' Pension Fund
Boynton Beach, Florida November 4, 2015
1) Fiduciary Trust International — Amed Avila, CPPT, VP
2) Fifth Third — Kimberly Kutlenios
3) Regions Bank & Trust — Dave Smeltzer
Ms. LaDue reviewed Salem Trust and their costs. She also reviewed the costs
associated with the three respondents.
Mr. West opined Fifth Third used an unsupported older system which may be why their
costs were less, and they found working with Fifth Third was cumbersome in getting
things done and the amount of paperwork needed to rebalance and move money.
Regions Bank provides outstanding service. Their wild card was they were competitive
and a top provider. Mr. West noted the head of their custodial services recently
transferred to another area of the bank. Mindy Johnson, a top notch service provider,
was also recently hired by Salem Trust. The replacements they were working with were
fine and Bogdahn had no issues with them. They were going through a service
personnel transition.
Ms. LaDue contacted Fiduciary Trust and they reduced the $10 benefit payment fee to
$5. The members thought Fiduciary Trust was expensive.
Mr. Taylor favored Regions Bank and thought they could negotiate a rate with them with
the understanding the Board would stay with the custodian for a certain time period. Mr.
West agreed, and they could also reduce the basis points. There was discussion the
best time to transition was while Ms. LaDue was still administering the Plan. Mr. West
suggested transferring the custodian when the fiscal year was finished and all the
auditing was finished.
Motion
Mr. Petty moved to terminate Salem Trust as custodian. Mr. Taylor seconded the
motion that unanimously passed.
Chair Henderson requested a motion to use Region's Bank as custodian.
Motion
Mr. Taylor moved to approve and try to negotiate a lower rate if possible. Ms. Bush
seconded the motion that unanimously passed.
Attorney Levinson explained there are advantages of having a new custodian start
January 1St and pointed out if done then, retirees would not receive two 1099s.
Mr. Taylor asked who would negotiate a lower rate with Regions Bank. Attorney
Levinson agreed to negotiate and if they did not lower the cost, they should ask for a
breakpoint as the fund was continuing to grow.
11
Meeting Minutes
Firefighters' Pension Fund
Boynton Beach, Florida November 4, 2015
Vlll. PENSION ADMINISTRATOR'S REPORT:
Benefits as of PYE 09-30-2015.
This item was for information only.
Chair Henderson was looking through the bills and noted one firefighter had calculations
run. The Board pays the bill, but the firefighter was supposed to start his payroll
deductions in August, but did not. Mr. Raybuck noted the firefighter had some life
changes. Chair Henderson requested they send him a bill.
IX. PUBLIC AUDIENCE COMMENTS:
(Limited to three (3) Minutes)
Mike Fitzpatrick, City Commissioner was concerned if the unfunded liability is not fixed,
there will be a lot of pressure to go to a Defined Contribution Plan for current members
in the next recession. He wanted to see things move a lot quicker and did not see much
movement at all. He noted Dean Kinser walked out of CBA negotiations. Commissioner
Fitzpatrick came up with his own suggestions how to start paying it down. Beginning in
2016, he proposed $750,000 in Chapter monies and the $2.7 million worth of accrued
Chapter 175 monies be used towards the unfunded liability, and to keep using $350,000
in Chapter 175 monies thereafter. By paying $750,000 at least $200,000 less would be
paid by the City and the $200,000 savings would also be used to pay down the
unfunded liability.
Commissioner Fitzpatrick noted Chapter 175 affects retirees. To make things equitable,
he believed the defined benefit multiplier should be reduced to 2.75%, but the City
would keep paying in as if there were a 3% multiplier. If the multiplier were lowered to
2.75%, it would save about 2% of payroll or $200,000. When added up, there would be
$750,000 plus the initial $2.7 million to pay the amount down. Commissioner Fitzpatrick
calculated it would take 21 years to pay it off. He wrote up his ideas which were
included in the meeting backup.
Mr. Raybuck was also concerned about unfunded liability. In 2004, there were buyouts
and the last one created a $4.3 million unfunded liability which has now risen to $5.1
million. The current unfunded liability attributed to the buyouts was about $15 million.
Mr. Raybuck commented cutting benefits based on the unfunded liability is similar to
private sector problems, where they borrow from pension plans and declare bankruptcy.
He agreed something needed to be done, but before they cut benefits they need to look
at funding the portion created by the early buyouts.
Commissioner Fitzpatrick inquired how that would be accomplished, and suggested
using his recommendations as a starting point. Chair Henderson clarified the Trustees
do not sit in negotiations. Chair Henderson pointed out, some of Commissioner
Fitzpatrick's suggestions, based on what he heard, were suggestions the Board had
already made to reduce costs and the Board and Union were looking at ways to reduce
12
Meeting Minutes
Firefighters' Pension Fund
Boynton Beach, Florida November 4, 2015
costs and pay down unfunded liability, but the early buyouts caused the problems and
according to the actuary, the $15 million worth of unfunded liability. Chair Henderson
suggested letting it play out and see what happens. There are things the City can do,
which they gave to the Union which are funding policies. Minimum funding policies
only cover the minimum. Chair Henderson thought the comment made about the Union
president walking out should be made to the City Manager, not the Pension Board.
Chair Henderson was aware Commissioner Fitzpatrick had spoken with the actuary and
City Manager. Commissioner Fitzpatrick asked a question, the actuary responded and
Commissioner Fitzpatrick did not like the answer. Commissioner Fitzpatrick agreed and
explained he disagreed because the answer was based on the current Ordinance. He
explained it only takes two more votes to change the Ordinance. The other way to
change things was if the Union wanted a different outcome, they change its position
when bargaining. Commissioner Fitzpatrick was present to let everyone know he
favored taking the Chapter 175 money to pay down the unfunded liability created by the
early buyouts.
Attorney Levinson thanked Commissioner Fitzpatrick for taking an active interest in the
Plan. He thought it would be beneficial to take what they have in writing and share it
with the Union and the City. He agreed the Board does not negotiate, but they assist
the parties and they had previously given them the authority for the actuary to do
studies.
X. ADJOURNMENT:
Motion
Mr. Taylor moved to adjourn. Mr. Raybuck seconded the motion that unanimously
passed. The meeting was adjourned at 11:45 a.m.
&jLu I)
Catherine Cher
ry
Minutes Specialist
110615
13
n
CITY OF BOYNTON BEACH
FIREFIGHTERS' PENSION PLAN
FINANCIAL STATEMENTS
September 30, 2015 and 2014
DAVIDSON, JAMIESON & CRISTINI, P.L.
Certified Public Accountants
CITY OF BOYNTON BEACH
FIREFIGHTERS' PENSION PLAN
TABLE OF CONTENTS
PAGE
INDEPENDENT AUDITOR'S REPORT ................................. I
FINANCIAL STATEMENTS
STATEMENTS OF FIDUCIARY NET POSITION ................... 3
STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION ...... 4
NOTES TO FINANCIAL STATEMENTS .......................... 5
REOUIRED SUPPLEMENTAL INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION
LIABILITY AND RELATED RATIOS ...................... 24
SCHEDULE OF CONTRIBUTIONS ................................... 25
NOTES TO SCHEDULE OF CONTRIBUTIONS ......................... 26
SCHEDULE OF INVESTMENT RETURNS ............................. 27
ADDITIONAL INFORMATION
SCHEDULES OF INVESTMENT AND ADMINISTRATIVE EXPENSES ..... 28
0
1
Member
American Institute of
Certified Public Accountants
Florida Institute of
Certified Public Accountants
We have audited the accompanying financial statements of City of Boynton Beach Firefighters'
Pension Plan (Plan), which comprise the statements of fiduciary net position as of September 30,
2015 and 2014, and the related statements of changes in fiduciary net position for the years then
ended, and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
The Plan's Board of Trustees is responsible for the preparation and fair presentation of these
financial statements in accordance with accounting principles generally accepted in the United
States of America; this includes the design, implementation, and maintenance of internal control
relevant to the preparation and fair presentation of financial statements that are free from material
misstatement.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States
of America. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud
or error, in making those risk assessments, the auditor considers internal control relevant to the
Plan's preparation and fair presentation of the financial statements, in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Plan's internal control. Accordingly, we express no such
opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Davidson, Jamieson & Cristini, P.L.
'
Certified Public Accountants
1956 Bayshore Boulevard
Dunedin, Florida 34698-2503
'
(727)734-5437 or 736-0771
FAX (727) 733-3487
Members of the Firm
'
John N. Davidson, CPA, CVA
Harry B. Jamieson, CPA
Richard A. Cristini, CPA, CPPT, CGFM
Jeanine L. Bittinger, CPA, CPPT
The Board of Trustees
'
City of Boynton Beach Firefighters' Pension Plan
Boynton Beach, Florida
INDEPENDENT AUDITOR'S REPORT
'
Report on Financial Statements
1
Member
American Institute of
Certified Public Accountants
Florida Institute of
Certified Public Accountants
We have audited the accompanying financial statements of City of Boynton Beach Firefighters'
Pension Plan (Plan), which comprise the statements of fiduciary net position as of September 30,
2015 and 2014, and the related statements of changes in fiduciary net position for the years then
ended, and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
The Plan's Board of Trustees is responsible for the preparation and fair presentation of these
financial statements in accordance with accounting principles generally accepted in the United
States of America; this includes the design, implementation, and maintenance of internal control
relevant to the preparation and fair presentation of financial statements that are free from material
misstatement.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States
of America. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud
or error, in making those risk assessments, the auditor considers internal control relevant to the
Plan's preparation and fair presentation of the financial statements, in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Plan's internal control. Accordingly, we express no such
opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
' The Board of Trustees
City of Boynton Beach Firefighters' Pension Plan
' Boynton Beach, Florida
IOpinion
' In our opinion, the financial statements referred to above present fairly, in all material respects, the
fiduciary net position of the City of Boynton Beach Firefighters' Pension Plan as of September 30,
2015 and 2014, and the changes in fiduciary net position for the years the ended in accordance with
' accounting principles generally accepted in the United States of America.
Other Matters
IRequired Supplementary Information
Our audits were made for the purpose of forming an opinion on the basic financial statements taken
' as a whole. The accompanying required supplementary information on pages 24 through 27 of the
City of Boynton Beach Firefighters' Pension Plan is required by Governmental Accounting
Standards Board Statement No. 67 and is not a required part of the basic financial statements. The
additional information on page 28 is presented for purposes of additional analysis and is also not
a required part of the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional
' procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
' generally accepted in the United States of America. In our opinion, the above information is fairly
stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management has omitted the Management's Discussion and Analysis that accounting principles
' generally accepted in the United States of America require to be presented to supplement the basic
financial statements. Such missing information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be
' an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. Our opinion on the basic financial statements is not
affected by this missing information.
gam,L44-ftl
'
January 14, 2016
CITY OF BOYNTON BEACH
FIREFIGHTERS' PENSION PLAN
STATEMENTS OF FIDUCIARY NET POSITION
September 30, 2015 and 2014
Assets
2015 2014
Cash $ 48,503 $ 37,728
Receivables:
Employer 29,486 29,486
Interest and dividends 59,138 71,836
Broker-dealers 244,649 355,004
Total receivables 333,273 456,326
Investments at fair value:
U.S. Government obligations
3,134,348
3,031,550
U.S. Government agency obligations
1,691,558
1,795,395
Municipal obligations
61,221
424,383
Domestic corporate obligations
3,568,452
3,682,032
Domestic fixed income investment funds
7,988,386
5,699,779
International fixed income investment fund
3,525,422
3,814,078
Domestic stocks
18,811,973
19,540,998
Domestic equity investment funds
21,685,681
21,135,699
Real estate investment funds
7,881,031
6,992,603
International equity investment funds
10,489,329
10,796,441
Temporary investments
1,513,346
1,117,490
Total investments
80,350,747
78,030,448
Prepaid expenses
4,834
4,891
Total assets
80,737,357
78,529,393
Liabilities
Accounts payable 80,428 66,940
Accounts payable, broker-dealers 250,236 183,362
Total liabilities 330,664 250,302
Net position restricted for pensions $ 80,406,693 L28,279,091
See Notes to Financial Statements.
3
CITY OF BOYNTON BEACH
FIREFIGHTERS' PENSION PLAN
STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION
Years ended September 30, 2015 and 2014
2015 2014
Additions:
' Contributions:
Employer
$ 3,930,996
$ 3,522,147
Plan members
1,195,448
1,191,111
Plan members, buy-back
56,082
100,662
'
Rollover to DROP
139,860
343,843
' Total contributions
5,322,386
5,157,763
Intergovernmental revenue:
Chapter 175 state excise tax rebate
963,573
1,016,561
' Total intergovernmental revenue
963,573
1,016,561
Investment income (loss):
' Net appreciation (depreciation) in fair value of investments
(2,236,222)
5,419,290
Interest
228,458
345,754
Dividends
2,571,370
1,691,112
Commission recapture
1,344
1,148
'
Class action settlement
6,196
661
Other
200
5,235
' Total investment income
571,346
7,463,200
Less investment expenses
288,493
275,620
Net investment income
282,853
7,187,580
Total additions
6,568,812
13,361,904
' Deductions:
Benefits:
' Age and service
Disability
3,883,951
40,963
3,804,080
40,410
Beneficiaries
224,862
222,880
Drop payments
154,373
224,700
Refunds
4,622
50,673
'
Administrative expenses
132,439
122,390
' Total deductions
4,441,210
4,465,133
Net increase in net position
2,127,602
8,896,771
Net position restricted for pensions:
Beginning of year
78,279,091
69,382,320
' End of year
$ 80,406,693
$ 78,279,091
11
� I
See Notes to Financial Statements.
4
' CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
' September 30, 2015 and 2014
Description of the Plan
The following brief description of the Boynton Beach Firefighters' Pension Plan
' (Plan) is provided for general information purposes only. Participants should refer to the
Plan Agreement for more complete information.
General - The Plan was created in 1958 by Section 21-95 of an Ordinance adopted
' by the City of Boynton Beach, Florida. This Ordinance was substantively amended in
1978, 1983, 1993, 2000 and 2002.
17
L
n
1
1
The Plan is a defined benefit pension plan covering all full-time firefighters of the
City of Boynton Beach, Florida (City). Participation in the Plan is required as a condition
of employment. The Plan provides for pension, death and disability benefits. In addition,
the Plan is a local law plan subject to provisions of Chapter 175 of the State of Florida
Statutes.
The Plan, in accordance with the above statutes, is governed by a five member
pension board. Two firefighters, two City residents and a fifth member elected by the other
four members constitute the pension board. The Fire Chief occupies an exofficio, non-
voting position on the board of trustees. The Chief shall have the opportunity to participate
in all board discussions and activities but shall not be counted for the purpose of a quorum
nor shall he be entitled to move or second the adoption of any issue or vote on any matter
before the board. The City and the Plan participants are obligated to fund all Plan costs
based upon actuarial valuations. The City establishes benefit levels while the board
establishes the actuarial methods followed by the Plan.
During the fiscal year ended September 30, 2015 the Plan's
membership consisted of:
Retirees and beneficiaries:
Currently receiving benefits 80
Drop Retirees 33
Terminated employees entitled to benefits but
not yet receiving them I
Total 114
Current employees:
Vested 69
Nonvested 51
Total 120
At September 30, 2014, the date of the most recent actuarial valuation, there were
120 retirees and beneficiaries receiving benefits.
1
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
1. Description of Plan (Continued)
Pension Benefits - The pension plan provides retirement, death and disability
benefits for its participants. A participant may retire with normal benefits after reaching
age 55 and accumulating 10 or more years of credited service or at 20 years of service
without regard to age. Normal retirement benefits are based on 3.0% of the participant's
final average salary times the number of his or her credited years of service. The final
average salary for purposes of calculating benefits is the participant's average salary during
the three highest years of the last ten years of creditable service prior to retirement. Salary
excludes bonuses and incentive pay received by a firefighter during that three year period.
A participant with 10 or more years of credited service is eligible for early
retirement. These benefits begin upon application on or after reaching age 50 and are
computed the same as normal retirement, based upon the participant's final average salary
and credited service at the date of termination. Benefits are reduced 3% per year for each
year by which the participant's age at retirement preceded the participant's normal
retirement age.
There have been revisions in benefits since the 2012 valuation to reflect Senate
Bill 1128. The definition of pensionable compensation has been changed to limit overtime
pay to 300 hours per year effective September 27, 2013 and to limit the number of
accumulated unused sick and vacation hours to the lesser of the number of hours
accumulated as of September 27, 2013 and the number of hours cashed out at retirement.
This change caused an initial increase in the employer contribution of 0.72% of covered
payroll due to the fact the current average accumulated sick and vacation hours exceed the
average amounts assumed for actuarial valuation purposes. Over time, however, this
change will reduce the cost of the Plan.
Cost of Living Adjustment - The Plan provides for a 2% annual cost -of -living
' adjustment (COLA) commencing five years after retirement from the City or entry into the
DROP Plan. This becomes available effective December 1, 2011 for all members who
retire or enter into the DROP on or after December 1, 2006; eligible members also includes
' all retirees electing early retirement and all disability retirees who enter pay status on or
after December 1, 2006.
IThe actuarial cost of this benefit was financed by an increase in the participants
contribution rate from 7% to 12%.
Ad Hoc Supplemental Benefits - Certain retirees are eligible to receive annual
distributions funded exclusively with available Chapter 175 premium tax revenue. Terms
of the benefit provide that each eligible retiree shall receive a distribution of available
' funds for up to five hundred dollars per year of credited service for each year of credited
service in the Plan not to exceed twenty years.
1
r
CITY OF BOYNTON BEACH FUIEFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
1. Description of Plan (Continued)
Deferred Retirement Option Plan - Any Plan participant who is eligible to receive
an early or normal retirement pension may elect to participate in a deferred retirement
option plan (DROP) while continuing his or her active employment as a firefighter. Upon
participation in the DROP, the participant becomes a retiree for all Plan purposes so that
he or she ceases to accrue any further benefits under the pension plan. Normal retirement
payments that would have been payable to the participant as a result of retirement are
accumulated and invested in the DROP to be distributed to the participant upon his or her
termination of employment. Participation in the DROP ceases for a Plan participant after
the earlier of 5 years or the attainment of 30 years of service.
An employee's account in the DROP program shall earn interest in one of three
' ways. The selection of the earnings program may be changed each year in January. The
options are summarized as follows:
' A. Gain or loss interest at the same rate as the Plan; or,
B. At an annual fixed rate of seven percent (7%); or,
C. A combination of the fixed and variable rates
Supplemental Pension Distributions - The Board of Trustees each year may
approve a supplemental distribution from a net actuarial gain as calculated by the Plan's
' actuary. The distribution shall be paid to the extent of the actuarial gains attributable to
retirees and beneficiaries which have been set aside in a supplemental pension reserve. In
years in which the Plan's actuarial gain is sufficient to support the payment of a thirteenth
' check, the payment shall be made in December. The Board did not approve a supplemental
distribution for the fiscal years ended September 30, 2015 and 2014.
Disability Benefits - Disability benefits for service related disabilities are paid to
a participant for life. Benefits are calculated as 66 2/3% of the participant's salary at the
time of retirement. This amount is reduced by any social security and workers'
compensation benefits received and will not be less than 42% of the participant's average
monthly salary.
Disability benefits for non -service related disabilities are paid to a participant for
' life. Benefits are calculated using a 2 '/z% accrual rate with a minimum of 25% of the
participant's final average salary.
' Death Benefits - Preretirement death benefits for participants with at least 10 years
of service are payable until the spouses death or remarriage. Benefits are calculated at 2
%s% of the participant's average final salary at the time of death. Beneficiaries of
' participants who die prior to vesting will receive a refund of the participants accumulated
contributions.
F -j
L
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
1. Description of Plan (Continued)
Post retirement death benefits are payable to the participant's eligible widow
depending on the survivor's benefit selected.
Refund of Participant Contributions - A participant who terminates employment
and is ineligible for pension benefits is refunded his or her contribution without interest.
2. Summary of Significant Accounting Policies
Basis of Accounting - Basis of accounting is the method by which revenues and
expenses are recognized in the accounts and are reported in the financial statements. The
accrual basis of accounting is used for the Plan. Under the accrual basis of accounting,
revenues are recognized when they are earned and collection is reasonably assured, and
expenses are recognized when the liability is incurred. Plan member contributions are
recognized in the period in which the contributions are due. City contributions to the plan
as calculated by the Plan's actuary, are recognized as revenue when due and the City has
made a formal commitment to provide the contributions. Benefits and refunds are
recognized when due and payable in accordance with the terms of the plan.
Basis of Presentation - The accompanying financial statements are presented in
accordance with Governmental Accounting Standards Board (GASB) Statement 67,
Financial Reporting for Defined Benefit Pension Plans and the Codification of
Governmental Accounting and Financial Reporting Standards which covers the reporting
requirements for defined benefit pensions established by a governmental employer. The
accompanying financial statements include solely the accounts of the Plan which include
all programs, activities and functions relating to the accumulation and investment of the
assets and related income necessary to provide the service, disability and death benefits
required under the terms of the Plan Ordinance and the amendments thereto.
Valuation of Investments - Investments in common stock and bonds traded on a
national securities exchange are valued at the last reported sales price on the last business
day of the year•, securities traded in the over-the-counter market and listed securities for
which no sale was reported on that date are valued at the mean between the past reported
' bid and asked prices; investments in securities not having an established market value are
valued at fair value as determined by the Board of Trustees. The fair value of an
investment is the amount that the Plan could reasonably expect to receive for it in a current
sale between market participants, other than in a forced or liquidation sale. Purchases and
sales of investments are recorded on a trade date basis.
1
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1
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
Summary of Significant Accounting Policies (Continued)
The Plan's investments include an alternative investments in the U.S. Real Estate
Investment Fund, the ASB Real Estate Fund, LBC Credit Partners Fund and Crescent
Direct Lending Fund. These funds are privately placed and operates in a manner
comparable to a mutual fund in many respects. The funds invest in a diverse portfolio of
real estate, futures, options and certain other investments with varying market
capitalizations.
The investments in the underlying funds are generally valued daily at fair value as
determined by the management of the fund by reference to the value of the underlying
securities, if available, or by the valuation of a security as provided by the general partner
or investment manager, if the securities are not publicly traded. While the fund manager
use its best judgment in estimating the fair values of underlying securities, there are
inherent limitations in any estimation technique. Therefore, the values of such securities
are not necessarily indicative of the amount that could be realized in a current transaction.
The fair values may differ significantly from the values that would have been used had a
ready market for the underlying securities existed, and the differences could be material.
Future confimiing events will also effect the estimates of fair value, and the effect of such
events on the estimates of fair value could be material.
These alternative investment funds expose the Plan to certain risks, including
liquidity risks, counterparty risks, foreign political, economic and governmental risks, and
market risk. In addition, these investments may have initial lock-up periods, as well as
restrictions for liquidating positions in these funds, that make the investments non-current
and non -marketable.
Investment income is recognized on the accrual basis as earned. Unrealized
appreciation in fair value of investments includes the difference between cost and fair value
of investments held. The net realized and unrealized investment appreciation or
depreciation for the year is reflected in the Statement of Changes in Fiduciary Net Position.
Custody of Assets - Custodial and investment services are provided to the Plan
under contract with a national trust company having trust powers. The Plan's investment
policies are governed by Florida State Statutes and ordinances of the City of Boynton
' Beach, Florida.
Authorized Plan Investments - The Board recognizes that the obligations of the
' Plan are long-term and that its investment policy should be made with a view toward
performance and return over a number of years. The general investment objective is to
obtain a reasonable total rate of return defined as interest and dividend income plus realized
' and unrealized capital gains or losses commensurate with the prudent investor rule and
Chapter 175 of the Florida Statutes.
1
11
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
2. Summary of Significant Accounting Policies (Continued)
Permissible investments include obligations of the U.S. Treasury and U.S.
agencies, high capitalization common or preferred stocks, pooled equity funds, high quality
bonds or notes, foreign securities and fixed income funds. In addition, the Board requires
that Plan assets be invested with no more than 70% in stocks and convertible securities
measured at cost at the end of each reporting period. Further information regarding the
permissible investments from the Plan can be found in the Statement of Investment Policies
and Objectives.
' Actuarial Cost Method - The Plan changed its actuarial cost method from the
Frozen Entry Age to the Entry Age Normal Method for funding purposes. This method
allocates the actuarial present value of each participant's projected benefit on a level basis
over the participant's earnings from the date of entry into the Plan through the date of
retirement.
' Reporting Env -The financial statements presented are only for the Plan and are
not intended to present the basic financial statements of the City of Boynton Beach,
Florida.
The Plan is included in the City's Comprehensive Annual Financial Report
(CAFR) for the years ended September 30, 2015 and 2014, which are separately issued
' documents. Anyone wishing further information about the City is referred to the City's
CAFR.
' The Plan is a pension trust fund (fiduciary fund type) of the City which accounts
for the single employer defined benefit pension plan for all City Firefighters. The
provisions of the Plan provide for retirement, disability, and survivor benefits.
' Funding Policv - Participants are required to contribute 12.0% of their annual
earnings to the Plan. Prior to 1986, contributions to the Plan were made on an after-tax
basis. Subsequent to this date, contributions are made on a pre-tax basis pursuant to an
' amendment to the Plan. These contributions are designated as employee contributions
under Section 414(h)(2) of the Internal Revenue Code. Contribution requirements of the
Plan's participants are established and may be amended by the City of Boynton Beach,
' Florida.
A rehired member may buy back one or more years of continuous past service by
paying into the Plan the amount of contributions that the participant would otherwise have
paid for such continuous past service, plus the interest that would have been earned had
such funds been invested by the Plan during that time.
10
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
2. Summary of Significant Accounting Policies (Continued)
The City's funding policy is to make actuarially computed monthly contributions
to the Plan in amounts, such that when combined with participants' contributions and the
State insurance excise tax rebate, all participants' benefits will be fully provided for by the
time that they retire.
' The City's actuarially determined contribution rate for the year ended
September 30, 2015 and 2014 was 42.27% and 37.5%, respectively. This rate consists of
20.50% and 19.42% of member salaries to pay normal costs plus 21.77% and 17.73% to
' amortize the unfunded actuarially accrued liability pursuant to the September 30, 2014
actuarial valuation.
Administrative Costs - All administrative costs of the Plan are financed through
employee contributions and charges against the DROP accounts and supplemental
distributions.
Cash - The Plan considers money market and demand account bank and broker-
dealer deposits as cash. Temporary investments, shown on the balance sheet are composed
I
of investments in short-term custodial proprietary money market funds.
Federal Income Taxes - A favorable determination letter indicating that the Plan
' is qualified and exempt from Federal income taxes was not issued by the Internal Revenue
Service. The Board believes that the Plan is designed and continues to operate in
compliance with the applicable requirements of the Internal Revenue Code.
' Use of Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of
' contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ
' from those estimates.
Subsequent Events - Management has adopted the provisions set forth in GASB
Statement No. 56, Subsequent Events and considered subsequent events through the date
' of the audit report which is the date that the financial statements were available to be
issued.
1
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
Summary of Significant Accounting Policies (Continued)
New Accounting Pronouncements - Governmental Accounting Standards Board
(GASB) 67, Financial ReportingforPension Plans and GASB 68, Accounting & Financial
Reporting for Pensions (Employer), address accounting and financial reporting
requirements for pension plan activities. The City of Boynton Beach Firefighters' Pension
Fund (Plan) is a single employer pension plan as defined by GASB 67. The requirements
for GASB 67 require changes in presentation of the financial statements, notes to the
financial statements, and required supplementary information.
' It is important to note that the disclosures related to GASB 67 are accounting
measurements, not actuarial measurements of the funded status of the Plan, and not used
to develop employer contribution rates.
3. Deposits and Investments
Deposits
' At year end September 30, 2015 the carrying amount of the Plan's deposits was
$31.964 and the bank balance was $32,065. The bank balance was covered by federal
depository insurance and, for the amount in excess of such federal depository insurance,
' by the State of Florida's Security for Public Deposits Act. Provisions of the Act require
that public deposits may only be held at qualified public depositories. The Act requires
each qualified public depository to deposit with the State Treasurer eligible collateral equal
to or in excess of the required collateral as determined by the provisions of the Act. In the
event of a failure by a qualified public depository, losses in excess of federal depository
insurance and proceeds from the sale of the securities pledged by the defaulting depository,
are assessed against the other qualified public depositories of the same type as the
depository in default.
Salem Trust Company (Salem) periodically holds uninvested cash in its capacity
' as custodian for the Plan. These funds exist temporarily as cash in the process of collection
from the sale of securities or mutual funds.
1
1
12
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
' NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
' 3. Deposits and Investments (Continued)
Investments
' Investments that are not evidenced by securities that exist in physical or book -
entry form include investments in open-ended mutual or alternative investment funds.
' The Plan's investments other than cash held by its administrative manager, are
segregated into a separate account and managed under separate investment agreements with
Schroder Management, Ltd., Anchor Capital Advisors, L.L.C., and DSM Capital Partners,
' L.L.C. All of these accounts give Salem the custodianship, but give Schroder Management,
Ltd, Anchor Capital Advisors, L.L.C., and DSM Capital Partners the authority to manage
the investments.
The Vanguard 500 Index Fund and the Vanguard MidCap Fund are open-ended
exchange traded funds and PIMCO Diversified Domestic Fixed Income Fund, the
' American Funds Europacific Fund, the WCM Focused International Growth fund and
Templeton Global Bond Fund are mutual funds.
' These assets are invested in accordance with the specific investment guidelines as
set forth in the Statement of Investment Policies and Objectives. Investment management
fees are calculated quarterly as a percentage of the fair market value of the Plan's assets
' managed.
The Plan's investments are uninsured and unregistered and are held in custodians'
' or the Bank's accounts in the Plan's name. The U. S. Real Estate Investment fund, the ASB
Real Estate Fund, the LBC Credit Partners Investment Fund, and the Crescent Direct
Lending Fund are privately placed funds, which operate as an alternative investment fund
which offers their shares at the net asset value (NAV) of the fund. The NAV is based on
' the value of the underlying assets owned by the fund minus its liabilities and then divided
by the number of shares or percentage of ownership outstanding.
The exchange traded funds are commonly referred to as "BTFs". ETFs are funds
that trade like other publicly -traded securities and are designed to track an index. Similar
to shares of an index mutual fund, each share of the Fund represents a partial ownership
' in an underlying portfolio of securities intended to track a market index. Unlike shares of
a mutual fund, which can be bought and redeemed from the issuing fund by all
shareholders at a price based on NAV, only authorized participants may purchase or
' redeem shares directly from the Fund at NAV. Also, unlike shares of a mutual fund, the
shares of the Fund are listed on a national securities exchange and trade in the secondary
market at market prices that change throughout the day.
1
u
13
1
' CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
3. Deposits and Investments (Continued)
The Fund invests in a particular segment of the securities market and seeks to track
the performance of a securities index that generally is not representative of the market as
' a whole.
The Plan had no investments that individually represented 5% or more of the
' Plan's net assets available for benefits as of September 30, 2015.
Further, the Plan has no instrument that, in whole or in part, is accounted for as a
derivative instrument under GASB statement No. 53, Accounting and Financial Reporting
for Derivative Instruments during the current Plan year.
The Plan held the following fixed income investments as of September 30, 2015:
'
Rating
Standard
Effective
Fair
&
Duration
Investment Type
Value
Poor's
ears
'
U.S. Government and
agency obligations
$ 4,825,906
AA
7.4
'
Municipal obligations
61,221
A
6.2
Domestic corporate obligations
3,568,452
BBB - AA
8.7
'
Domestic fixed income investment funds
7,988,386
_
International fixed income investment fund
3,525,422
=
'
Temporary investment funds
1.513.346
AAA
Daily
Total
$ 21,482,733
Interest Rate Risk - Interest rate risk is the risk that changes in interest rates will
' adversely affect the fair value of an investment in debt securities. Generally, the longer the
time to maturity, the greater the exposure to interest rate risk. Through its investment
' policies the Plan manages its exposure to fair value losses arising from increasing interest
rates. The Plan limits the effective duration of its investment portfolio through the
adoption of nationally accepted risk measure bench marks.
1
14
3.
1
�I
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
Deposits and Investments (Continued)
Credit Risk - Credit risk is the risk that a debt issuer will not fulfill its obligations.
Consistent with state law the Plan's investment guidelines limit its fixed income investment
to a quality rating of `A' or equivalent as rated by one ore more recognized bond rating
service at the time of purchase. The Plan's fixed income portfolio may not include more
than 10% of its investments in securities having a quality rating of Baa.
Custodial Credit Risk - Custodial credit risk is defined as the risk that the Plan may
not recover cash and investments held by another party in the event of a financial failure.
The Plan requires all securities to be held by a third party custodian in the name of the
Plan. Securities transactions between a broker-dealer and the custodian involving the
purchase or sale of securities must be made on a "delivery vs. payment" basis to ensure that
the custodian will have the security or money, as appropriate, in hand at the conclusion of
the transaction. The investments in mutual funds and investment partnerships are
considered unclassified pursuant to the custodial credit risk categories of GASB Statement
No. 3, because they are not evidenced by securities that exist in physical or book -entry
form.
Investing in Foreign Markets - Investing in foreign markets may involve special
risks and considerations not typically associated with investing in companies in the United
States of America. These risks include revaluation of currencies, high rates of inflation,
repatriation restrictions on income and capital, and future adverse political, social, and
economic developments. Moreover, securities of foreign governments may be less liquid,
subj ect to delayed settlements, taxation on realized or unrealized gains, and their prices are
more volatile than those of comparable securities in U.S. companies.
Foreign Tax Withholdings and Reclaims - Withholding taxes on dividends from
foreign securities are provided for based on rates established via treaty between the United
States of America and the applicable foreign jurisdiction, or where no treaty exists at the
prevailing rate established by the foreign country. Foreign tax withholdings are reflected
as a reduction of dividend income in the statement of operations. Where treaties allow for
a reclaim of taxes, the Fund will make a formal application for refund. Such reclaims are
included as an addition to dividend income.
Investing in Real Estate - The Plan is subject to the risks inherent in the ownership
and operation of real estate. These risks include, among others, those normally associated
with changes in general economic climate, trends in the industry including creditworthiness
of tenants, competition for tenants, changes in tax laws, interest rate levels, the availability
of financing and potential liability under environmental and other laws.
15
11
i�
1
F
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
3. Deposits and Investments (Continued)
Investment Asset Allocation - The Plan's adopted asset allocation policy as of
September 30, 2015 is as follows:
In order to provide for a diversified portfolio, the Board has engaged investment
professional(s) to manage and administer the fund. The investment manager(s) are
responsible for the assets and allocation of their mandate only and may be provided as an
addendum to this policy with their specific performance objectives and investment criteria.
The Board has established the following asset allocation targets for the total Plan:
Asset Class
Target Range Benchmark Index
Broad Cap Value Equity
20%
15%-25%
Russell 3000 Value
Broad Large Cap Growth Equity
20%
15%-25%
Russell 1000 Growth
Large Cap Core Equity
5%
0%-10%
S&P 500
International Equity
15%
10%-20%
MSCI -World x -U.S.
Broad Market Fixed Income
10%
15%-25%
Barclays Int. Aggregate
TIPS*
5%
0%-7.5%
Barclays TIPS
Non -Core Global Bond
5%
.00/6-7%
MS Global Bird Mkt x USD
Real Estate*
10%
0%-15%
NCREIF Property
Alternative Investment*
10%
0%-20%
TBD (mandate appropriate)
*Benchmark will default to "broad market fixed income" if these portfolios are not funded. Targets and ranges above are
based on market value of total Plan assets.
The investment consultant will monitor the aggregate asset allocation of the
portfolio, and will rebalance to the target asset allocation based on market
conditions. If at the end of any calendar quarter, the allocation of an asset class falls
outside of its allowable range, barring extenuating circumstances such as pending
cash flows or allocation levels viewed as temporary, the asset allocation will be
rebalanced into the allowable range. To the extent possible, contributions and
withdrawals from the portfolio will be executed proportionally based on the most
current market value available. The Board does not intend to exercise short-term
changes to the target allocation.
Rate of Return - For the year ended September 30, 2015 the annual money -
weighted rate of return on pension plan investments, net ofpension plan investment
expense, was 0.78 percent. The money -weighted rate of return expresses
investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
16
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
4. Net Increase (Decrease) in Realized and
Unrealized Appreciation (Depreciation) of Investments
The Plan's investments appreciated (depreciated) in value during the years ended
September 30, 2015 and 2014 as follows:
The calculation of realized gains and losses is independent of the calculation of net
appreciation (depreciation) in the fair value of plan investments.
Unrealized gains and losses on investments sold in 2015 that had been held for more than
one year were included in net appreciation (depreciation) reported in the prior year.
17
2015
2014
Realized
Unrealized
Realized
Unrealized
Appreciation
Appreciation
Appreciation
Appreciation
(Depreciation)
(Depreciation)
Total
(Depreciation)
(Depreciation)
Total
Investments at fair value as determined
by quoted market price:
U.S. Government obligations
$ 40,256
$ 9,526
$ 49,782
$ (75,779)
$ 26,305
$ (49,474)
U.S. Government agency
obligations
(388)
(4,974)
(5,362)
(452)
20,569
20,117
Municipal obligations
20,520
(20,164)
356
25,365
10,526
35,891
Domestic corporate obligations
36,391
(70,051)
(33,660)
(32,193)
(20,630)
(52,823)
Domestic fixed income
investment funds
-
(158,284)
(158,284)
191,968
191,968
International fixed income
investment fund
-
(553,890)
(553,890)
-
84,940
84,940
Domestic stocks
2,456,792
(2,711,676)
(254,884)
1,138,554
1,194,310
2,332,864
Domestic equity investment funds
1,005,247
(1,179,657)
(174,410)
716,017
2,152,203
2,868,220
Real estate investment funds
8,482
773,351
781,833
(3,201)
635,152
631,951
International equity
investment funds
(1,244,179)
(643,524)
(1,887,703)
(644,364)
(644,364)
Net increase (decrease) in realized
and unrealized appreciation
(depreciation) of investments
$ 2,323,121
$ (4,559,343)
$ (2,236,222)
$ 1,768,311
$ 3,650,979
$ 5,419,290
The calculation of realized gains and losses is independent of the calculation of net
appreciation (depreciation) in the fair value of plan investments.
Unrealized gains and losses on investments sold in 2015 that had been held for more than
one year were included in net appreciation (depreciation) reported in the prior year.
17
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
5. Investments
The Plan's investments at both carrying value and cost or adjusted cost as of
September 30, 2015 and 2014 are summarized as follows:
Total investments 73.313.330 $ 80,350,747 $ 65,196,808 $ 78,030,448
18
2015
2014
Market
Market
Investment
Cost
Value
Cost
Value
U.S. Government obligations
$ 3,178,983 $
3,134,348
$ 3,085,712 $
3,031,550
U.S. Government agency obligations
1,675,963
1,691,558
1,774,826
1,795,395
Municipal obligations
56,176
61,221
399,172
424,383
Domestic corporate obligations
3,469,170
3,568,452
3,512,699
3,682,032
Domestic fixed income investment funds
8,003,042
7,988,386
5,556,153
5,699,779
International fixed income investment fund
4,174,845
3,525,422
3,909,610
3,814,078
Domestic stocks
15,700,695
18,811,973
13,720,043
19,540,998
Domestic equity investment funds
19,215,270
21,685,681
17,485,632
21,135,699
Real estate investment funds
5,192,988
7,881,031
5,077,911
6,992,603
International equity investment funds
11,132,852
10,489,329
9,557,560
10,796,441
Temporary investments
1,513,346
1,513,346
1,117,490
1,117,490
Total investments 73.313.330 $ 80,350,747 $ 65,196,808 $ 78,030,448
18
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
6. Designations
A portion of the fiduciary net position is designated for benefits that accrue in
relation to the DROP account as further described in Note 1. Allocations to the
DROP plan account for the years ended September 30, 2015 and 2014 are presented
below as determined in the TPA's most recent accounting and valuation available for
the fiscal years ended September 30, 2015 and 2014:
Designated for DROP accounts (fully
funded)
Designated for the supplemental pension
distribution reserve (13 h check)
Total designated net position
Undesignated net position
Total net position
7. Plan Amendments
2015.
follows:
2015 2014
$ 12,465,519 $ 10,406,243
12,465,519 10,406,243
67,941,174 67,872,848
$ 80,406,693 $ 78,279,091
There were no Plan amendments during the fiscal year ended September 30,
The Plan was amended during the fiscal year ended September 30, 2014 as
Plan amended to extend pension trustee terms of office from two to four
years as permitted by Section 175.051, Florida Statutes. All pension
trustees serving as of January 1, 2014 shall have their current term extended
for a two year period.
These changes will not have an actuarial impact on the cost of this plan.
19
' CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
' September 30, 2015 and 2014
8. Plan Termination
Although it has not expressed an intention to do so, the City may terminate the
' Plan at any time by a written ordinance of the City Commission of Boynton Beach,
duly certified by an official of the City. In the event that the Plan is terminated or
contributions to the Plan are permanently discontinued, the benefits of each firefighter
' in the Plan at such termination date would be non -forfeitable.
1
9. Commitments and Contingencies
As described in Note 1, certain members of the Plan are entitled to refunds of
their accumulated contributions, without interest, upon termination of employment
with the City prior to being eligible for pension benefits. At September 30, 2015 and
2014, aggregate contributions from active members of the Plan were approximately
$12,295,000 and $11,100,000, respectively. The portion of these contributions which
are refundable to participants who may terminate with less than ten years of service
has not been determined.
10. Risk and Uncertainties
The Plan invests in a variety of investment funds. Investments in general are
exposed to various risks, such as interest rate, credit, and overall volatility risk. Due
to the level of risk associated with certain investments, it is reasonably possible that
changes in the values of investments will occur in the near term and that such changes
could materially affect the amounts reported in the statements of net assets available
for benefits.
11. Revisions in Actuarial Assumptions or Methods
The investment return assumption was lowered from 7.65% to 7.50% as of
September 30, 2015. This change caused the employer contribution rate to increase
by 1.54% of covered payroll.
20
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
12. Rent Expense
The Plan and Boynton Beach Police Officers' Pension Fund are obligated under
a joint rental operating lease for office space, which expires on September 30, 2015.
The base rent of the lease is $1,166 per month plus applicable sales tax and is
prorated 50150 for each plan, respectively. During the years ended September 30,
2015 and 2014, rent expense for the Plan under the lease agreement was $7,530 and
$6,960, respectively.
13. Net Pension Liability of the City
The components of net position liability of the City of Boynton Beach (City) as
of September 30, 2015 were as follows:
Total Pension Liability
Plan Fiduciary Net Position
City's Net Pension Liability
Plan fiduciary net position as a percentage of
total pension liability
21
$ 126,579,666
Q0 AAA 401
$ 46,172,973
63.52%
1
' CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
' September 30, 2015 and 2014
13. Net Pension Liability of the City (Continued)
Actuarial Assumptions - The total pension liability was determined by an
' actuarial valuation as of October 1, 2014 using the following actuarial assumptions
applied to all measurement periods.
' Actuarial cost method Entry age normal
Inflation 3.50%
' Salary increases Varies by years of service from
3.5% to 14.0%
Investment rate of return 7.50%
' Retirement age Rates vary by age and years of
service
Mortality 1983 Group Annuity Mortality
Table for males and females
The long-term expected rate of return on pension plan investments was
determined using a building-block method in which best -estimate ranges of expected
future real rates of return (expected returns, net of pension plan investment expenses
' and inflation) are developed for each major asset class. These ranges are combined
to produce the long-term expected rate of return by weighting the expected future real
' rates of return by the target asset allocation percentage and by adding expected
inflation. Best estimates of arithmetic real rates of return for each major asset class
included in the pension plan's target asset allocation (as provided by the Fund's
' performance monitor) as of September 30, 2015 are summarized in the following
table:
Target
Allocation
Asset Group Proxy
Long -Term
Real Return
Domestic equity
45.0%
5.20%
International equity
15.0%
2.40%
Domestic bonds
25.0%
2.50%
International bonds
5.00%
3.50%
Real estate
10.0%
4.50%
22
Li
1
7
L
7
7-
L L
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
13. Net Pension Liability of the City (Continued)
Discount Rate - A singe discount rate of 7.50% was used to measure the total pension
liability. This single discount rate was based on the expected rate of return on pension plan
investments of 7.50%. The projection of cash flows used to determine this single discount
rate assumed that plan member contributions will be made at the current contribution rate and
that employer contributions will be made at rates equal to the difference between the total
actuarially determined contribution rates and the member rate. Based on these assumptions,
the pension plan's fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term expected rate of
return on pension plan investments (7.50%) was applied to all periods of projected benefit
payments to determine the total pension liability.
Sensitivity of the Net Pension Disability to Changes in the Discount Rate - Regarding
the sensitivity of the net pension liability to changes in the single discount rate, the following
presents the plan's net pension liability, calculated using a single discount rate of 7.50%, as
well as what the plan's net pension liability would be if it were calculated using a single
discount rate that is 1 -percentage -point lower or 1 -percentage -point higher:
City's net
pension
liability
Sensitivity of the Net Pension Liability
to the Single Discount Rate Assumption
Current
Single Discount
I% Decrease Rate Assumption 1% Increase
6.50%
7.50%
8.50%
$ 59,627,317 $ 46,172,973 $ 34,984,486
23
1
REQUIRED SUPPLEMENTARY INFORMATION
1
1
L -7
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
SCHEDULE OF CHANGES IN THE CITY'S
NET PENSION LIABILITY AND RELATED RATIOS
Last Two Fiscal Years
Total pension liability:
Service cost
Interest
Benefit changes
Differences between actual and expected experience
Assumption changes
Benefit payments,
Refunds
Other (increase in excess state reserve)
Other (rollovers into DROP)
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending (a)
Plan fiduciary net position:
Contributions - employer
Contributions - non -employer contributing entity (state)
Contributions - members (including buyback contributions)
Net investment income
Benefit payments
Refunds
Administrative expenses
Other (Rollovers into DROP)
Net change in plan fiduciary net position
'
Plan fiduciary net position - beginning
8,955,215
Plan fiduciary net position - ending (b)
'
Net Pension Liability - Ending (a) - (b)
1,809,581
Plan fiduciary net position as a percentage of
(4,304,149)
total pension liability
(4,622)
Covered employee payroll
'
Net pension liability as a percentage
139,860 343,843
of covered employee payroll
24
September 30,
2015
September 30,
2014
$ 2,988,536$
2,772,724
8,955,215
8,188,369
708,071
(28,363)
1,809,581
-
(4,304,149)
(4,292,070)
(4,622)
(50,673)
259,251
312,239
139,860 343,843
10,551,743 7,246,069
116,027,923 108,781,,854
$ 126,579,666 $ 116,027,923
$
3,930,996$
3,522,147
963,573
1,016,561
1,251,530
1,291,773
282,853
7,187,580
(4,304,149)
(4,292,070)
(4,622)
(50,673)
(132,439)
(122,390)
139,860
343,843
2,127,602 8,896,771
78,279,091 69,382,320
$ 80,406,693 $ 78,279,091
$ 46,172.973 $ 37,748.832
63.52% 67.47%
$ 11,784,702 $ 11,307,953
391.80% 333.83%
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
SCHEDULE OF CONTRIBUTIONS
Last Two Fiscal Years
25
Actual
Fiscal
Contribution
Year
Actuarially
Contribution
as a Percentage
Ended
Determined
Actual Deficiency
Covered
of Covered
September 30,
Contribution
Contribution Excess
Payroll
Payroll
2015
$ 4,635,318
$ 4,635,318 $ -
$ 11,784,702
39.33%
2014
4,226,469
4,226,469 -
11,307,953
37.38
25
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
NOTES TO THE SCHEDULE OF CONTRIBUTIONS
September 30, 2015
Last Two Fiscal Years
Valuation date: October 1, 2014
Actuarially determined contribution rates are
calculated as of October 1, which is two year(s) prior
to the end of the fiscal year in which contributions are
reported.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial cost method Entry age normal
Amortization method Level percentage of payroll, closed
Remaining amortization period 23 years
Asset valuation method 5 -year smoothed market
Inflation 3.5%
Salary Increases Varies by years of service from 3.5% to 14.0%
Investment Rate of Return 7.50%
Retirement Age Rates vary by age and years of service
Mortality 1983 Group annuity Mortality Table for males and
females
26
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
SCHEDULE OF INVESTMENT RETURNS
Last Two Fiscal Years
September 30, September 30,
2015 2014
Annual money -weighted rate
of return, net of investment expense 0.78% 9.54%
27
ADDITIONAL INFORMATION
1
CITY OF BOYNTON BEACH FRZEFIGHTERS' PENSION PLAN
SCHEDULES OF INVESTMENT AND ADMINISTRATIVE EXPENSES
Years ended September 30, 2015 and 2014
$ 288,493 $ 132,439 $ 275.620 $ 122,390
Percentage of
plan net position 0.36% 0.16% 0,35% 0.16%
28
2015
2014
Investment
Administrative
Investment
Administrative
Expenses
Expenses
Expenses
Expenses
Expenses:
Actuary fees
$ -
$ 23,000
$ -
$ 27,054
Administrator's fees
-
28,763
-
27,393
Audit fees
-
14,500
-
11,000
Bank charges
-
322
-
402
Computer supplies
-
12,890
-
5,581
Custodial fees
41,036
-
39,836
-
Directors' liability insurance
-
9,067
-
9,063
DROP Administration
2,000
-
2,500
-
Dues and subscriptions
-
850
-
600
Investment managers' fees:
ASB Allegiance
32,835
-
15,737
-
STW
-
-
7,628
-
Anchor Capital
60,298
-
45,357
-
DSM Capital
90,360
-
98,733
-
Schroder
28,464
-
32,329
-
Legal fees
-
27,845
-
18,173
Office expenses
-
471
-
809
Office rent
-
7,530
-
6,960
Pension program maintenance
-
1,496
-
2,769
Performance monitor
33,500
-
33,500
-
Seminars and training
-
5,705
-
12,586
$ 288,493 $ 132,439 $ 275.620 $ 122,390
Percentage of
plan net position 0.36% 0.16% 0,35% 0.16%
28
1
7
1
1
1
1
1
CITY OF BOYNTON BEACH
FIREFIGHTERS' PENSION PLAN
MEMORANDUM ON REVIEW OF
INTERNAL CONTROL STRUCTURE
September 30, 2015 and 2014
DAVIDSON, JAMIESON & CRISTINI, P.L.
Certified Public Accountants
Davidson, Jamieson & Cristini, P.L.
Certified Public Accountants
1956 Bayshore Boulevard
Dunedin, Florida 34698-2503
(727)734-5437 or 736-0771
FAX (727) 733-3487
Members of the Firm
John N. Davidson, CPA, CVA
Harry B. Jamieson, CPA
Richard A. Cristini, CPA, CPPT, CGFM
Jeanine L. Bittinger, CPA, CPPT
January 14, 2016
Board of Trustees
City of Boynton Beach Firefighters'
Pension Plan
Boynton Beach, Florida
Member
American Institute of
Certified Public Accountants
Florida Institute of
Certified Public Accountants
' In planning and performing our audits of the financial statements of the City of Boynton Beach
Firefighters' Pension Plan (Plan) as of and for the years ended September 30, 2015 and 2014, in
' accordance with auditing standards generally accepted in the United States of America, we
considered the Plan's internal control over financial reporting (internal control) as a basis for
designing our auditing procedures for the purpose of expressing our opinion on the financial
tstatements, but not for the purpose of expressing an opinion on the effectiveness of the Plan's
internal control. Accordingly, we do not express an opinion on the effectiveness of the Plan's
I
internal control.
' Our consideration of internal control was for the limited purpose described in the preceding
paragraph and was not designed to identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses and, therefore, there can be no assurance that all
' such deficiencies have been identified. However, as discussed below, we identified certain
deficiencies in internal control that we consider to be significant deficiencies.
A deficiency in internal control exists when the design or operation of a control does not
allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct misstatements on a timely basis. A material
weakness is a deficiency, or combination of deficiencies in internal control, such that there
' is a reasonable possibility that a material misstatement of the entity's financial statements
will not be prevented, or detected and corrected on a timely basis. We did not identify any
' deficiencies in internal control that we consider to be material weaknesses.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is
less than severe than a material weakness, yet important enough to merit attention by those
charged with governance (the Board of Trustees). The auditor's report and related bridge letter
issued by Salem Trust Company (Salem) for the year ended September 30, 2015 provide that
Salem's service organization system and the suitability of its design and operating effectiveness of
controls were operating as intended.
Current Year
1. SSAE No. 16, SOC 1, Type 2 Report on a Description of a
Service Organization's System and the Suitability of the Design
and Operating Effectiveness of Controls related to Salem.
Prior Year
1. SSAE No. 16, SOC 1, Type 2 Report on a Description of a
Service Organization's System and the Suitability of the Design
and Operating Effectiveness of Controls related to USF Affiliate
Services, Inc. Affiliate Fiduciary and Investment Support Services
— Including Salem Trust Company (Salem)
PA
Current Year
The SSAE No. 16, SOC 1, Type 2 report dated August 31, 2015 provided the following opinion
on the USF Affiliate Services, Inc. Affiliate Fiduciary and Investment Support Services (Salem
Trust Company):
Auditor's Opinion
In our opinion, in all material respects, based on the criteria describe in USFAS' assertion
related to its system for processing transactions for user entities of its institution's clients.
a. The description fairly presents the system that was designed and
implemented throughout the period July 1, 2014 to June 30, 2015.
b. The controls related to the control objectives stated in the description were
suitably designed to provide reasonable assurance that the control
objectives would be achieved if the controls operated effectively
throughout the period July 1, 2015 to June 30, 2015, and user entities
applied the complementary user entity controls contemplated in the design
of USFAS controls throughout the period July 1, 2014 to June 30, 2015.
C. The controls tested, which together with the complementary user entity
controls referred to in the scope paragraph of this report, if operating
effectively were those necessary to provide reasonable assurance that the
control objectives stated in the description were achieved, operated
effectively throughout the period July 1, 2014 to June 30, 2015.
The auditor identified one finding which was cleared to the satisfaction of the auditor in arriving
at the above opinion. (copy of finding enclosed).
We repeat our prior year recommendation regarding the Board's responsibility to monitor its
Complementary User Entity Controls (copy enclosed) when using the Salem Trust Company's
services.
A copy of the USFAS USF Affiliate Services bridge letter is enclosed.
41
I
Prior Year
' The SSAE No. 16, SOC 1, Type 2 report dated February 2, 2015 provided an adverse report on
the effectiveness of the Service Organization's system of internal control policies and procedures.
We recommended that the Board continue to monitor the correction of the findings in the report.
We further recommended that the complementary user entity controls at the Plan level (copy
enclosed) should be documented and enhanced as necessary. Listing the exceptions and the
I
response of the service organization's management alone is not sufficient. The Board must
document its own conclusions.
11
4
1
' FINDING — FEE PROCESSING
CONTROL OBJECTIVE 11— Controls provide reasonable assurance fees are calculated in
' accordance with the agreed upon fee schedule and processed timely and accurately.
Controls Tested
Tests Performed
Test Results
Fees are calculated by the
1. Selected a sample of
One instance was identified
SunGard system based upon
accounts and determined
in a sample of 25 accounts
parameters set up by the
whether the fee schedule
where the fee per the trust
account administrator and
indicated on the Trust
accounting system did not
agreed to by the client.
Accounting System
agree to the terms of the
agreed to documentation
governing instrument
agreed to by the client.
signed by the customer.
Management's Response:
The client account was part of
approximately 40 accounts
purchased shortly before the
beginning of the SSAE 16
period. The incorrect fee was
transmitted and set up on the
trust system. The fee was
corrected on the trust system and
on the quarterly invoice and no
other errors were discovered.
Management reminded personnel
of the importance of reviewing
fees during the initial and annual
administrative account review
process.
1
Complementary User Entity Controls
° Instructions and information provided to Salem are in accordance with the
provisions of the servicing agreement, trust agreement, or other applicable
governing agreements or documents between Salem and the Plan.
° Timely written notification of changes to Salem, its objectives, participants, and
investment managers is adequately communicated thereto.
° Timely written notification of changes in the designation of individuals authorized
to instruct Salem regarding activities, on behalf of the Plan, is adequately
communicated thereto.
Timely review of reports provided by Salem of trust account balances and related
activities is performed by the Plan and written notice of discrepancies is provided
to Salem.
Timely written notification of changes in related parties for purposes of
identifying parties -in -interest transactions is adequately communicated to Salem.
Co
USFAS
U',-3 1" i 5 1•;F I LI ATE SEW ICES
Scpt,ember 30, 2015
Re; Bridge Lehrer fee USFAS' SSA iG (PU4,x-at on Description of USFAS' System and the -Suitability
of the Drs gn acid Operitting C- ff"cctiverim of Controls)
Dear Report Recipient:
' Crowe t lorwath LLP cotidu:cted an utdepeodent exiiminat on related to the fiduciary and investment
suppcaot services of USF Afftlisire Services, Inc. CIUSFASI performed on behalf of two of its
9ffiliau true companies, GraatBanc Tam Compsay and Selcm Trust (Company, In atzordance with
the Statement on 5tandiLrds for Attestation Engagetnents Na_ 16 ("SSAE 16"). The USFAS SSAE
' 16 report addressed the period from July 1, 3014 through June 30, 2115. For the peciod from Judy 1,
31115 through September 310, ?015, we make the following rcpresentationx which are true to the best
of our knowledge and belief:
l
J
1
a USFAS management is rc"nsible for the design and implementation of ltttemal control
procedures. We believe that the description of these controls in the USFAS SSAE 16 report
is Uxurate.
a USFAS, as a normal part of its operations, continues to update surd enhiritce its services and
technology; hou°cscr, theirs hiorr be:n no significant changes in control procedures nc in the
opetatkm of controls.
• We sue not aware of any instance where controls sverc tioi operating With sufficWnt
effectiveness to achieve the specified control objmtivcs,
Please "c thnt the controls for USFAS are de•sigtted with certain respoiWbilities required of the
report users (,Sec the coaTtementaty user entity controls noted in dile rnmt recent USriAS SSA(✓ 16
report_) Controls must ahvays be evahtaicd in cimiuncrian pith an assessment of the strength of
client cnntmis.
if you have any gucstirms, Feil Free Lx), directly conLact our office cit th.c number listed bclm. -.
Sincere -11"
r
James F. Lluca E N'latthew J. 13owinan
Pres dei,t and C'l7ief' Executive Officer Sr Vice President and Manager of Operatieuns
i I'. s. .. I,. II .;li 1", . .x.11, W11 It1111 ?"'-'d, 111 • I_ I. -I .i' .1 7, -1 *0 a 1 a"z I....1•1'l I I:
- -_. �.l .,, M -"'i /IIc•d-I 'pct' /'N.tu'-i..'SR.3'nl id.'
7
� I
� I
' We will review the status of these comments during our next audit engagement. We have already
discussed many of these comments and suggestions with Plan personnel, and we will be pleased
' to discuss them in further detail at your convenience, to perform any additional study of these
matters, or to assist you in implementing the recommendations.
This communication is intended solely for the information and use of management and is not
intended to be and should not be used by anyone other than these specified parties.
I
DAVIDSON, JAMIESON& CRISTINI, P.L.
1I
F]
1I
� I
� I
i I
� I
7
I
WWW.BOGDAHNGROUP.,
of Boynton Beach
Firefighters'
tirement System
int Performance Review
nth Quarter 2015
Preliminary
E
BOGDAHN
GRoup.
simPCifying your investment and frducimy decisions
4th Quarter 2015 Market Environment
■ The 4th quarter of 2015 saw broad equity markets recover some of the
losses experienced during the previous quarter. The majority of the 4th
quarter's returns were generated during the month of October as
markets reacted positively to news that several major central banks,
notably Europe and China, would inject additional stimulus into their
economies. However, returns in November began to lose momentum,
and December's monthly returns were broadly negative as investors
weighed the reality of a weaker -than -expected policy response from the
European Central Bank (ECB) and ongoing weakness in energy and
commodity prices. Although largely telegraphed, December saw the U.S.
Federal Reserve (the Fed) raise the Federal Funds Rate by 25 basis
points (bps) following positive news regarding employment, housing, and
consumer confidence. While the rate increase was small and expected, it
did signal the Fed's belief in the sustainability of U.S. economic growth.
This increase also begins the process of "rate normalization" after seven
years of the Fed's "zero interest rate policy" and foreshadows the
prospect of additional rate increases in 2016.
■ Led by large capitalization issues, domestic equity market indices all
posted positive results for the 4th quarter. For the calendar year,
domestic large cap stock indices posted small, but positive gains, while
domestic small- and mid -capitalization indices posted slightly negative
results. In U.S. dollar (USD) terms, non -U.S. equity indices posted gains
in the 4th quarter with broad developed market proxies continuing to
outpace riskier emerging market composite indices. On a one-year basis,
emerging market equity returns struggled mightily relative to their
developed market counterparts due to ongoing concerns over the
prospect of stagnant global economic growth. While international market
returns lagged their domestic market counterparts during 2015, a large
portion of the disparity can be attributed to the significant appreciation of
the USD throughout the year.
■ U.S. fixed income indices tracked on the chart were all modestly
negative for the 4th quarter. As expected, the Fed's decision to move
short-term rates higher had a negative impact on bond returns during the
quarter. In addition to the December interest rate increase, investor
concerns over global deflationary pressures and low economic growth
pushed Treasury Inflation Protected Securities (TIPS) and investment
grade corporate bond returns into negative territory for the calendar year.
MSCI ACWxUS
MSCI EAFE
MSCI Emerg Mkts
S&P 500
Russell 3000
Russell 1000
Russell MidCap
Russell 2000
Barclays US Agg
Barclays US Govt
Barclays US TIPS
Barclays MBS
Barclays Corp IG
3 -Month T -Bill
Quarter Performance
0.7%
-2.0% 0.0% 2.0%
1 -Year Performance
MSCI ACWxUS
MSCI EAFE
MSCI Emerg Mkts
-14.9%
S&P 500
Russell 3000
Russell 1000
Russell MidCap
Russell 2000
Barclays US Agg
Barclays US Govt
Barclays US TIPS
Barclays MBS
Barclays Corp IG
3 -Month T -Bill
-16.0% -12.0% -8.0%
The Market Environment
Major Market Index Performance
As of December 31, 2015
3.2%
4.7%
7.0%
6.3%
6.5%
3.6%
3.6%
4.0% 6.0% 8.0%
-5.7%
-0.8%
1.4%
0.5%
0.9%
-2.4%
-4.4%
0.5%
0.9%
-1.4%
1.5%
-0.7%
0.0%
-4.0%
0.0%
4.0%
TI -IL
Source: Investment Metrics 2 BO�GDA- jy
re i
GRoup.,
• Domestic equity index performance was positive across the style and
capitalization spectrum during the 4th quarter. Outside of macroeconomic
and geopolitical factors that impacted all equity performance, there were
two notable trends affecting domestic equity results during the 4th quarter
of 2015. First, large cap indices outperformed their small cap
counterparts. Second, growth stock index returns meaningfully outpaced
their value index counterparts at all levels of the capitalization spectrum.
The dominance of large cap index performance for the quarter was
influenced by their perceived safety and stability of their earnings growth.
The dominance of growth indices for the quarter is largely attributable to
the indices' lower weight to cyclical sectors heavily exposed to ongoing
weakness in commodity prices and capital spending.
■ Performance for the 4th quarter echoed throughout calendar year 2015 as
both large cap and growth indices proved to be the best performers over
the trailing one-year period. In fact, only growth and core large cap
issues managed positive returns for the year. All value benchmarks, as
well as small- and mid -cap core and growth indices, posted negative
results for the year.
■ From a valuation perspective, current Price/Earnings ratios (P/E) for
value indices appear stretched relative to their long-term (20 -year)
averages. The mid -cap value index appears most expensive at 111% of
its long-term average. Despite strong performance in 2015, current P/E
valuations for the growth indices fall between 85% and 90% of their
historical long-term averages.
3000 Value
3000 Index
3000 Growth
1000 Value
1000 Index
1000 Growth
MidCap Value
MidCap Index
MidCap Growth
2000 Value
2000 Index
2000 Growth
The Market Environment
Domestic Equity Style Index Performance
As of December 31, 2015
Quarter Performance - Russell Style Series
0.0% 2.0% 4.0%
1 -Year Performance - Russell Style Series
3000 Value
3000 Index
3000 Growth
1000 Value
1000 Index
1000 Growth
MidCap Value
MidCap Index
MidCap Growth
2000 Value
2000 Index
2000 Growth
6.0% 8.0%
-4.1%
0.5%
.1%
-3.8%
0.9% 5.7%
-4.8%
-2.4%
-0.2%
-7.5% -4.4%
-1.4%
-8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0%
TI -IL
Source: Investment Metrics 3 BO�GDA- jy
re i
GRoup.,
• Large cap sector performance was broadly positive for the 4th quarter as
every sector within the Russell 1000 Index, with the exception of energy,
posted positive results. Sector strength was notably broad with eight of
the ten GICS sectors posting returns of at least 5.0% for the quarter. The
materials sector was the strongest performer for the quarter, returning
9.0%. Merger and acquisition activity between the sector's two largest
constituents - Dow Chemical (DOW) and DuPont (DD) - provided a
substantial boost to the sector's performance. Information technology
and health care were also strong performers, posting returns of 8.8%
and 8.7% respectively. Led by an ongoing slide in oil prices, which
closed the year below $40/barrel, energy was the only sector to post
negative performance for the quarter. This energy weakness is further
illustrated on the table below with nine of the ten worst performing stocks
in the Russell 1000 coming from the sector. Over calendar year 2015,
five of ten sectors in the large cap index had positive performance with
the consumer discretionary (7.7%) and health care (7.1%) sectors
posting the strongest results. On the negative side, commodity price
driven sectors were the worst performers for the year with energy (-
22.6%) and materials (-8.9%) suffering the brunt of the losses.
• Similar to large cap indices, small cap index performance was largely
positive for the quarter with only the consumer discretionary (-3.1%) and
energy (-8.0%) sectors posting negative returns. However, in contrast to
the large cap benchmark's balanced one-year sector results, only two
sectors, health care (8.6%) and information technology (2.7%), managed
to post positive returns. Similar to the large cap index, the energy (-39.3)
and materials (-22.7%) sectors posted the Russell 2000's weakest
annual sector performance.
■ Using the S&P 500 as a proxy, trailing P/E ratios for five GICS sectors
were below their 20 -year averages at quarter -end. The information
technology and financials sectors were trading at the largest discount to
their long-term average P/E ratios. In contrast, telecommunication
services, utilities, and consumer discretionary sector valuations were the
most extended relative to historical P/E ratios.
Consumer Disc (13.6%)
Consumer Staples (9.0%)
Energy (6.8%)
Financials (17.5%)
Health Care (14.2%)
Industrials (10.6%)
Info Technology (20.0%)
Materials (3.1%)
Telecom Services (2.2%)
Utilities (3.0%)
The Market Environment
GICS Sector Performance & (Sector Weight)
As of December 31, 2015
Russell 1000 1■Quarter 01 -Year
-0.9%
-0.6%
1.5%
5.0%
7.7%
7.3%
5.7%
5.6%
8.7%
7.1%
7.2%
8.8%
5.6%
9.0%
7.0%
-25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0%
Russell 2000 EQuarter ❑1 -Year
Consumer Disc (13.9%)
Consumer Staples (3.4%)
Energy (3.0%)
Financials (25.9%)
Health Care (15.4%)
Industrials (12.4%)
Info Technology (17.8%)
Materials (3.7%)
Telecom Services (0.9%)
Utilities (3.7%)
-3.1%
-10.4%
3.3%
-3.1 %
-8.0%
-39.3% 3.1%
-0.2%
9.9%
8.6%
2.8%
-12.9%
6.8%
2.7%
3.0%
-22.7%
6.2%
-1.9%
4.5%
-2.0%
-40.0% -30.0% -20.0% -10.0% 0.0% 10.0%
TI -IL
Source: Morningstar Direct 4 BO�G - j y
re i � 71 ,
Apple Inc
2.97%
11.2%
-3.0%
Information Technology
Microsoft Corp
2.20%
26.2%
22.7%
Information Technology
Exxon Mobil Corporation
1.60%
5.8%
-12.8%
Energy
General Electric Co
1.43%
24.4%
27.5%
Industrials
Johnson & Johnson
1.40%
10.8%
1.2%
Health Care
Amazon.com Inc
1.26%
32.0%
117.8%
Consumer Discretionary
Wells Fargo & Co
1.24%
6.6%
1.8%
Financials
Berkshire Hathaway Inc Class B
1.20%
1.3%
-12.1%
Financials
JPMorgan Chase & Co
1.20%
9.1%
8.4%
Financials
Facebook Inc Class
1.11%
16.4%
34.1%
Information Technology
AAA
Teekay Corp
aEll
F
-66.2%
F
-79.8%
Energy
aaa
Keurig Green Mountain Inc
0.06%
72.6%
-31.1%
Consumer Staples
Advanced Micro Devices Inc
0.00%
66.9%
7.5%
Information Technology
Rayonier Advanced Materials Inc
0.00%
61.1%
-54.9%
Materials
Rovi Corp
0.00%
58.8%
-26.3%
Information Technology
Airgas Inc
0.05%
55.5%
22.7%
Materials
First Solar Inc
0.02%
54.4%
48.0%
Information Technology
lonis Pharmaceuticals Inc
0.04%
53.2%
0.3%
Health Care
SolarWinds Inc
1 0.02%
1 50.1%
18.2%
Information Technology
SunPowerCorp
0.01%
1 49.8%
16.2%
Information Technology
Bruker Corp
0.01%
47.7%
23.7%
Health Care
AAA
Teekay Corp
A
0.00%
F
-66.2%
F
-79.8%
Energy
Peabody Energy Corp
0.00%
-62.9°% '
-93.4%
Energy
Ultra Petroleum Corp
0.00%
-60.9%
-81.0%
Energy
Targa Resources Corp
0.01%
-46.6%
73.4%
Energy
Tidewater Inc
0.00%
-45.5%
-77.1%
Energy
Kinder Morgan, Inc_
0.13°%
-45.1% ''
-62.8%
Energy
Southwestern Energy Co
0.01%
-44.0%
-73.9%
Energy
GoPro Inc Class A
0.01%
-42.3%
71.5%
Consumer Discretionary
Golar LNG Ltd
0.01%
-41.9%
-54.0%
Energy
Seadrill Ltd
0.01°%
-40.7%
-70.1%
Energy
The Market Environment
Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000
As of December 31, 2015
TI -IE
Source: Morningstar Direct 5BOiG - j y
re i � 71 ,,
■ The quarter started strong as investors anticipated additional economic
stimulus announcements from the European Central Bank (ECB) and the
People's Bank of China (PBoC). The latter occurred in October when the
PBoC lowered the banking reserve requirement, cut interest rates, and
removed a deposit cap that limited the rate of interest banks could pay
savers. This stimulus package encouraged investors and initially drove
markets higher. However, when the ECB announced only a minimum cut in
its deposit rate and a six-month extension to its quantitative easing program
on December 3rd, it was less than investors expected and global markets
sold off through the remainder of the month. Despite a disappointing
December, the majority of international equity index results were positive for
the 4th quarter in both local and USD terms. Only the European (-8.2%) and
Latin American (-2.7%) sub -segments of the emerging market index posted
negative results in both local and USD terms for the quarter. Within broad
market USD quarterly results, developed market (3.2%) returns easily
outpaced emerging market (0.7%) performance.
The Market Environment
International and Regional Market Index Performance (Country Count)
As of December 31, 2015
AC World x US (45)
WORLD x US (22)
EAFE (21)
Europe & ME (16)
Pacific (5)
Emerging Mkt (23)
EM EMEA (10)
EM Asia (8)
■ Developed markets, as measured by the MSCI EAFE Index, performed well EM Latin Amer (5)
Quarter Performance I■USD ❑Local Currency
3.2 %
4 .,
3.9%
5.7%
4.7%
6.3%
2.6%
5.2% 9.0%
8.6%
o.7°ro
1.5%
-8.2%
-1.5%
3.5%
2.9%
-2.7%
2.1 %
during the quarter In both USD (4.7%) and local currency (6.3%) terms, but -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
the index's two largest countries posted mixed results for the period. As the ■USD ❑Local Currency
largest weight in the index, Japan's 9.3% return had a large positive impact 1 -Year Performance
on broad index return as the country benefited from continued quantitative AC World x US (45)
easing and some improvement in corporate earnings. Unfortunately, the
benchmark's second largest country, the UK, managed only a mild 0.7% for WORLD x US (22)
the period and struggled relative to other European markets due to its
greater exposure to commodity sensitive industries. Finally, USD strength EAFE (21)
was once again a major theme across global market index returns during
2015. While the trailing one-year USD performance was unilaterally lower Europe & ME (16)
than local currency results, the disparity was particularly notable in
developed market indices (outside of the Pacific index) where local currency Pacific (5)
returns were positive for the year but USD equivalent results were negative.
Emerging Mkt (23)
■ Emerging markets, as measured by the MSCI Emerging Market Index,
returned 0.7% in USD and 1.5% in local currency for the quarter. The
index's positive performance was driven by regional results in the EM Asia
index as both the EM EMEA and EM Latin America indices posted negative
results for the period. Over the trailing one-year period, the broad emerging
market index and each of its regional index components finished the year in
negative territory measured in both USD and local currency terms.
EM EMEA (10)
EM Asia (8)
EM Latin Amer (5)
-5.7%
1.9%
-3.0%
4.0%
-0.8%
5.3%
-2.7%
s.o°ro
6.0%
-14.9%
5.8%
-20.0%
-2.6%
-9.8%
-31.0%
-8.8%
-35.0% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0%
TI -IL
Source: MSCI Global Index Monitor (Returns are Net) 6 BOGDAHN
jy
re i
GRoup.,
The Market Environment
U.S. Dollar International Index Attribution & Country Detail
As of December 31, 2015
Japan
23.4%
17.3%
9.3%
9.6%
United Kingdom
19.4%
14.3%
0.7%
-7.6%
France
9.7%
7.2%
1.7%
-0.1%
Switzerland
9.4%
690/6
2.0%
0.4%
Germany
9.1%
6.7%
7.7%
-1.9%
Australia
6.8%
S:0%
10.0%
-10.0%
Spain
3.2%
2.3%
-2.6%
-15.6%
Hong Kong
3.1%
2.3%
6.0%
-0.5%
Netherlands
2.9%
2.1%
3.1%
1.3%
Sweden
2.9%
21%
2.4%
-5.0%
Italy
2.4%
1.7%
-2.3%
2.3%
Denmark
1.9%
1'40/6
6.7%
23.4%
Belgium
1.4%
1.1%
13.6%
12.1%
Singapore
1.3%
0;9%
4.2%
-17.73/o
Finland
0.9%
0.7%
9.6%
2.0%
Israel
0.8%
06%
8.9%
10.4%
Norway
0.6%
0.4%
-0.5%
-15.0%
Ireland
0.4%
03%
7.0%
16.5%
Austria
0.2%
0.1%
6.9%
3.5%
New Zealand
0.2%
01%
18.2%
-6.3%
Portugal
Canada
Total D-
China
0.2%
t® ®
0.1%
5.9%
5.5%
4.2%
-5.1%
4.0%
0.9%
a
-24.2%
a
-7.8%
Korea
3.2%
5.4%
-6.7%
Taiwan
2.5%
1.2%
-11.7%
India
1.8%
-0.9%
-6.1%
South Africa
1.4%
-10.6%
-25.5%
Brazil
1.1%
-3.3%
-41.4%
Mexico
0.9%
-1.2%
-14.4%
Russia
0.7%
-4.1%
4.2%
Malaysia
0.7%
7.9%
-20.1%
Indonesia
0.5%
20.8%
-19.5%
Thailand
0.4%
-6.2%
-23.5%
Philippines
0.3%
-0.5%
-6.8%
Turkey
0.3%
-0.3%
-31.9%
Poland
A3%
-12.9%
-25.4%
Chile
0.2%
-1.1%
-17.7%
Qatar
02%
-10.2%
-19.5%
United Arab Emirates
0.2%
-12.6%
-17.9%
Greece
01%
-19.0%
-61.3%
Colombia
0.1%
-9.4%
-41.8%
Peru
01%
-8.1%
-31.70
Hungary
0.1%
11.4%
36.3%
Czech Republic
0.0%
-11.3%
-18.4%
Egvr)t
0.0%
-7.8%
-23.7%
TI -IL
Source: MSCI Global Index Monitor (Returns are Net in USD) Gj A - j y
Q -,&O � 71 ,
■ Fixed income index performance was modestly negative for the 4th
quarter. Much of the quarter's negative performance was attributable to
the market's anticipation and reaction to the Fed's December decision to
raise the Federal Funds Rate by 25 bps. This shift in monetary policy
represented both an end to the Fed's seven year (December 2008) zero -
interest rate policy and the first rate increase in nearly ten years (July
2006). The Fed's action caused a flattening of the U.S. Treasury yield
curve with short-term yields rising more than long-term rates. Despite the
larger increase in rates at the short end of the yield curve, longer -dated
maturity issues underperformed due to their higher durations and the
resulting greater sensitivity to interest rate increases. The calendar
year's fixed income results were mixed with high-quality issues posting
small, positive results, while lower -quality and international bonds posted
negative performance for the year.
■ The broad market Aggregate benchmark posted a return of -0.6% for the
quarter. Within the Aggregate index, the mortgage index, aided by its
lower duration, was down less than Treasury and corporate issues
during the quarter. While the Treasury and mortgage indices finished the
year with positive returns, the combined impact of rate increases on the
Treasury yield curve, and widening credit spreads during the second half
of the year, caused the investment grade corporate index to end the year
in negative territory. Due to persistent strength in the USD throughout
2015, unhedged global bond index performance lagged broad domestic
index returns for both the quarter and the calendar year.
■ Lower credit quality and high yield indices underperformed other
domestic indices for both the 4th quarter and the trailing year. Within both
bond market segments, issues in energy and commodity related
companies were hit particularly hard as credit spreads widened
substantially in these industries. While theoretical liquidity concerns in
the bond market had been expressed due to structural changes in
trading and inventory since the financial crisis, these concerns became a
reality during the quarter when the Third Avenue Focused Credit Fund
(TFCVX) abruptly closed and suspended investor redemptions in order
to liquidate the fund's high yield, illiquid positions in an orderly fashion.
Only time will tell if this problem was due to excessive risk taking by the
single fund or if it is more endemic of the overall structure of the high
yield market.
Source: Barclays Capital Live
The Market Environment
Domestic Bond Sector & Broad/Global Bond Market Performance (Duration)
As of December 31, 2015
AAA (5.2)
AA (5.9)
A (7.0)
Baa (7.2)
U.S. High Yield (4.3)
U.S. Treasury (5.9)
U.S. Mortgage (4.5)
U.S. Corporate IG (7.0)
U.S. TIPS (4.9)
Aggregate (5.7)
Intermediate Agg (4.2)
Global Agg x US (7.4)
Multiverse (6.5)
Quarter Performance
-3.0% -2.0% -1.0% 0.0%
AAA (5.2)
AA (5.9)
A (7.0)
Baa (7.2)
U.S. High Yield (4.3)
U.S. Treasury (5.9)
U.S. Mortgage (4.5)
U.S. Corporate IG (7.0)
U.S. TIPS (4.9)
Aggregate (5.7)
Intermediate Agg (4.2)
Global Agg x US (7.4)
Multiverse 6.5
1 -Year Performance
1.1%
_ 1.0%
0.5%
2.7%
-4.5%
0.8%
-0.7% 1.5%
-1.4%
0.5%
1.2%
-6.0%
-3.3%
-8.0% -6.0% -4.0% -2.0%
8
0.0% 2.0%
BO'GDAHN
i
• U.S. Treasury Inflation Protected Securities (TIPS) finished the quarter
and year in negative territory returning -0.6% and -1.4%, respectively.
Current inflation readings continue to fall below the Fed's 2.0% target,
and future inflation expectations are tempered by a strong USD and the
deflationary pressures of falling energy and commodity prices.
■ Much of the index performance detailed in the bar graphs on the
previous page is visible on a time series basis by reviewing the line
graphs to the right. The `1 -Year Trailing Market Rates' chart illustrates
that the 10 -year Treasury (green line) rose over the quarter and ended
the year slightly higher than where it started. The blue line illustrates
changes in the BAA OAS (Option Adjusted Spread), which quantifies the
additional yield premium that investors demand to purchase and hold
non -Treasury issues. After falling below 2.0% early in 2015, this spread
rose throughout the remainder of the year. This "spread -widening" is
equivalent to an interest rate increase on corporate bonds, which creates
drag on realized corporate bond returns. Finally, the Federal Funds Rate
(light green shading) has a small uptick on the right of the graph showing
the Fed's announcement to end its zero interest rate policy. The lower
graph provides a snapshot of the U.S. Treasury yield curve at each of
the last four calendar quarters. Maturities out to seven years ended 2015
at their highest levels of the year while 10-, 20-, and 30 -year maturities
issues finished the year marginally lower than their June 30th levels.
■ Based on moderate U.S. economic growth, stable employment, and
below target inflation, it is unlikely the Fed will move aggressively to
increase (normalize) the Federal Funds Rate during 2016. The Fed has
stated future rate increases would be implemented at a measured pace
and with ongoing assessment of current economic data. Geopolitical
events and stimulus programs by other countries should keep demand
for U.S. Treasury issues elevated and put downward pressure on how
high domestic rates will rise in the short-term.
3.50
3.00
2.50
2.00
1.50
1.00
0.50
The Market Environment
Market Rate & Yield Curve Comparison
As of December 31, 2015
1 -Year Trailing Market Rates
0.00 Ii 1 a ter s i� sd sdi�mw iuutdes, s s, s u� s sd u¢ s uu gars sd uwu r
Dec -14 Jan -15 Feb -15 Mar -15 Apr -15 May -15 Jun -15 Jul -15 Aug -15 Sep -15 Oct -15 Nov -15 Dec -15
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
Treasury Yield Curve
X12/31/2014 6/30/2015 9/30/2015 12/31/2015
1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr
TkW
Source: US Department of Treasury, FRED (Federal Reserve of St. Louis) 9 G - j y
re i � 71 ,
Asset Allocation Summary
Total Fund
As of December 31. 2015
Segments
Market Value
Allocation
Segments
Market Value
Allocation
IS Domestic Equity
40,497,654
50.4
IS Domestic Equity
44,104,451
50.6
11 International Equity
10,489,319
13.0
11 International Equity
11,960,500
13.7
Domestic Fixed Income
8,473,365
10.5
0 Domestic Fixed Income
9,437,697
10.8
Global Fixed Income
7,372,693
9.2
Global Fixed Income
7,487,070
8.6
■ Other Fixed Income 4,141,115
Real Estate 7,881,253
Cash 1,574,281
5.1 0 Other Fixed Income 4,459,192
9.8 0 Real Estate 8,261,933
2.0 Cash 1,523,186
5.1
9.5
1.7
TI -IL
10BO�GDAHN
.-,p up.,
Asset Allocation Summary
Total Fund
As of December 31. 2015
Market Value Allocation Market Value Allocation
IN Vanguard Mid -Cap Index Fund (VMCIX)
12,801,440
15.9
IN Vanguard Mid -Cap Index Fund (VMCIX)
12,746,685
14.6
* DSM Large Cap Growth
10,130,456
12.6
0 Anchor All Cap Value Equity
11,062,836
12.7
Anchor All Cap Value Equity
9,459,423
11.8
iia DSM Large Cap Growth
10,993,407
12.6
Vanguard 500 Index Signal (VFIAX)
8,884,240
11.0
Vanguard 500 Index Signal (VFIAX)
10,404,946
11.9
■ Schroders Core Fixed Income
7,526,517
9.4
0 Schroders Core Fixed Income
8,427,408
9.7
WCM International Growth Fund (WCMIX)
5,349,109
6.7
0 WCM International Growth Fund (WCMIX)
6,667,487
7.6
American Funds Euro Pacific Gr R6 (RERGX)
5,140,209
6.4
American Funds Euro Pacific Gr R6 (RERGX)
5,293,013
6.1
Intercontinental
5,039,408
6.3
Intercontinental
5,269,348
6.0
PIMCO Diversified Income Fund (PDIIX)
3,847,282
4.811
PIMCO Diversified Income Fund (PDIIX)
3,880,741
4.4
Templeton Global Bond Fund (FBNRX)
3,525,422
4.4
Templeton Global Bond Fund (FBNRX)
3,606,329
4.1
■ ASB RE
2,841,845
3.5
■ ASB RE
2,992,585
3.4
T LBC Credit Partners III
2,273,448
2.8
i LBC Credit Partners III
2,573,448
3.0
■ Crescent Direct Lending Levered Fund
1,867,667
2.3
■ Crescent Direct Lending Levered Fund
1,885,744
2.2
Schroders TIPS
1,147,956
1.4
Schroders TIPS
1,141,173
1.3
W Receipt & Disbursement
580,057
0.7
W Receipt & Disbursement
274,730
0.3
Mutual Fund Cash
15,200
0.011
Mutual Fund Cash
14,150
0.0
TkW
11 GDAHN
r z
GRoup.,
Asset Allocation versus Target Allocation
Vanguard 500 Index Signal (VIFSX)
DSM Large Cap Growth
Anchor All Cap Value Equity
Vanguard Mid -Cap Index Fund (VMCIX)
WCM International Growth Fund (WCMIX)
American Funds Euro Pacific Gr R6 (RERGX)
Schroders Core Fixed Income
Schroders TIPS
PIMCO Diversified Income Fund (PDIIX)
Templeton Global Bond Fund (FBNRX)
Intercontinental
ASB RE
Crescent Direct Lending Fund
LBC Credit Partners III
Receipt & Disbursement
Mutual Fund Cash
Asset Allocation vs. Target Allocation
Total Fund
As of December 31, 2015
-9.0% -6.0% -3.0% 0.0% 3.0% 6.0%
IN Allocation Differences
Vanguard 500 Index Signal (VIFSX)
10,404,946
11.9
15.0
DSM Large Cap Growth
10,993,407
12.6
10.0
Anchor All Cap Value Equity
11,062,836
12.7
10.0
Vanguard Mid -Cap Index Fund (VMCIX)
12,746,685
14.6
10.0
WCM International Growth Fund (WCMIX)
6,667,487
7.6
7.5
American Funds Euro Pacific Gr R6 (RERGX)
5,293,013
6.1
7.5
Schroders Core Fixed Income
8,427,408
9.7
10.0
Schroders TIPS
1,141,173
1.3
5.0
PIMCO Diversified Income Fund (PDIIX)
3,880,741
4.4
3.5
Templeton Global Bond Fund (FBNRX)
3,606,329
4.1
3.5
Intercontinental
5,269,348
6.0
5.0
ASB RE
2,992,585
3.4
5.0
Crescent Direct Lending Fund
1,885,744
2.2
4.0
LBC Credit Partners III
2,573,448
3.0
4.0
Receipt & Disbursement
274,730
0.3
0.0
Mutual Fund Cash
14,150
0.0
0.0
9.0% 10.0%
TkW
13BO�GDAHN
r z
GRoup.,
Asset Allocation History by Portfolio
Total Fund
As of December 31, 2015
Asset Allocation Attributes
Dec -2015
10.97
Sep -2015
10.79
Jun -2015
10.22
Mar -2015
10.59
Dec -2014
10.83
Total Equity
57,168,373 i
65.53
51,764,878
64.36
56,194,063
66.65
57,370,846
67.55
56,045,827
66.99
Total Domestic Equity
45,207,873
51.82
41,275,560
51.32
45,290,063
53.72
46,580,067
54.84
45,760,496
54.69
Anchor All Cap Value Equity
11,062,836
12.68
9,459,423
11.76
10,781,370
12.79
10,972,688
12.92
10,972,169
13.11
Vanguard 500 Index Signal (VFIAX)
10,404,946
11.93
8,884,240
11.05
9,907,314
11.75
10,595,994
12.48
10,688,544
12.77
DSM Large Cap Growth
10,993,407
12.60
10,130,456
12.60
10,769,362
12.77
10,514,519
12.38
10,112,333
12.09
Vanguard Mid -Cap Index Fund (VMCIX)
12,746,685
14.61
12,801,440
15.92
13,832,017
16.41
14,496,866
17.07
13,987,451
16.72
Total International Equity
11,960,500
13.71
10,489,319
13.04
10,904,000
12.93
10,790,778
12.71
10,285,331
12.29
Manning & Napier Overseas (EXOSX)
-
0.00
-
0.00
-
0.00
-
0.00
10,285,331
12.29
American Funds Euro Pacific Gr R6 (RERGX)
5,293,013
6.07
5,140,209
6.39
5,449,911
6.46
5,389,428
6.35
-
0.00
WCM International Growth Fund (WCMIX)
6,667,487
7.64
5,349,109
6.65
5,454,089
6.47
5,401,350
6.36
2,081,427
0.00
Total Domestic Fixed Income
9,568,581
10.97
8,674,473
10.79
8,616,881
10.22
8,996,061
10.59
9,061,325
10.83
Schroders Core Fixed Income
8,427,408
9.66
7,526,517
9.36
7,458,479
8.85
7,834,907
9.22
7,916,161
9.46
Schroders TIPS
1,141,173
1.31
1,147,956
1.43
1,158,402
1.37
1,161,154
1.37
1,145,165
1.37
Total Global Fixed Income
7,487,070
8.58
7,372,704
9.17
7,703,229
9.14
7,723,889
9.09
7,585,629
9.07
PIMCO Diversified Income Fund (PDIIX)
3,880,741
4.45
3,847,282
4.78
3,949,641
4.68
3,961,428
4.66
3,832,746
4.58
Templeton Global Bond Fund (FBNRX)
3,606,329
4.13
3,525,422
4.38
3,753,588
4.45
3,762,461
4.43
3,752,883
4.49
Total Real Estate "
8,2615933
9.47
758815253
9.80
756455850
9.07
7,3665251
8.67
752565463
8.67
Intercontinental
5,269,348
6.04
5,039,408
6.27
4,869,642
5.78
4,719,085
5.56
4,672,775
5.58
ASB RE
2,992,585
3.43
2,841,845
3.53
2,776,208
3.29
2,647,166
3.12
2,583,688
3.09
Total Non -Core Fixed Income
43469,192
6.11
4,141,115
5.15
3,7995969
4.51
3,056,310
3.60
3,242,770
3.88
LBC Credit Partners III
2,573,448
2.95
2,273,448
2.83
2,285,410
2.71
1,786,637
2.10
2,081,427
2.49
Crescent Direct Lending Levered Fund
1,885,744
2.16
1,867,667
2.32
1,514,559
1.80
1,269,673
1.49
1,161,343
1.39
Cash
Receipt & Disbursement
274,730
0.31
580,057
0.72
207,181
0.25
287,611
0.34
324,780
0.39
Mutual Fund Cash
14,150
0.02
15,200
0.02
146,692
0.17
131,473
0.15
152,023
0.18
Boynton Beach Firefighters' Total Fund
87,234,030
100.00
80,429,680
100.00
84,313,865
100.00
84,932,441
100.00 !
83,668,818
100.00
14
TE
BOC GDAHN
r Group.,
Asset Allocation Attributes
100.0
90.0
80.0
70.0
60.0
0
0
.. 50.0
0
a
40.0
30.0
20.0
10.0
0.0
9/07 3/08 9/08
Domestic Equity
Other Fixed Income
Asset Allocation History by Segment
Total Fund
October 1, 2007 To December 31, 2015
3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 12/15
International Equity Domestic Fixed Income Global Fixed Income
Real Estate Alternative Investment Cash
TI -IL
15BO�GDAHN
Q—,pf GRoup.,
Plan Sponsor TF Asset Allocation
Total Fund Vs. All Public Plans -Total Fund
As of December 31, 2015
® Total Fund
51.82 (19)
13.71 (49)
10.97 (97)
8.58 (3)
5.11 (62)
9.47 (37)
0.33 (86)
5th Percentile
58.87
22.52
46.78
6.52
24.75
13.96
6.54
1st Quartile
50.57
15.31
35.41
5.03
11.98
10.07
2.30
Median
45.75
13.60
30.22
4.79
7.08
7.35
1.25
3rd Quartile
40.35
11.28
22.81
4.44
3.81
5.25
0.69
95th Percentile
27.27
7.72
13.67
3.90
1.02
3.01
0.04
TvIE
16BO�GDAHN
r z
GRoup.,
Financial Reconciliation Quarter to Date
Total Fund
1 Quarter Ending December 31, 2015
Market Value Net Contributions Distributions Management Other Return On Market Value
10/01/2015 Transfers Fees Expenses Investment 12/31/2015
Total Domestic Equity
41,275,560
1,417,015 - -
-
-1,957
2,517,256
45,207,873
Anchor All Cap Value Equity
9,459,423
1,000,000
-944
604,357
11,062,836
Vanguard 500 Index Signal (VFIAX)
8,884,240
917,015
-
603,691
10,404,946
DSM Large Cap Growth
10,130,456
-
-1,013
863,963
10,993,407
Vanguard Mid -Cap Index Fund (VMCIX)
12,801,440
-500,000
-
445,245
12,746,685
Total International Equity
10,489,319
1,000,000
471,181
11,960,500
American Funds Euro Pacific Gr R6 (RERGX)
5,140,209
-
-
152,804
5,293,013
WCM International Growth Fund (WCMIX)
5,349,109
1,000,000
-
318,377
6,667,487
Total Fixed Income
20,188,292
1,224,943
-864
102,473
21,514,844
Total Domestic Fixed Income
8,674,473
917,015 - -
-
-864
-22,042
9,568,581
Schroders Core Fixed Income
7,526,517
917,015
-749
-15,374
8,427,408
Schroders TIPS
1,147,956
-
-
-115
-6,668
1,141,173
Total Global Fixed Income
7,372,704
114,366
7,487,070
PIMCO Diversified Income Fund (PDIIX)
3,847,282
33,459
3,880,741
Templeton Global Bond Fund (FBNRX)
3,525,422
- - -
-
-
80,907
3,606,329
Total Real Estate "
7,8815253
-735632
4545312
852615933
Intercontinental
5,039,408
- - -
-64,752
-
294,692
5,269,348
ASB RE
2,841,845
- - -
-8,880
-
159,620
2,992,585
Total Non -Core Fixed Income
45141,115
307,928 -
10,149
45459,192
LBC Credit Partners III
2,273,448
300,000 - -
-
2,573,448
Crescent Direct Lending Levered Fund
1,867,667
7,928 - -
-
10,149
1,885,744
Cash
Receipt & Disbursement
580,057
-3,644,861 4,619,027 -1,278,627
-880
13
274,730
Mutual Fund Cash
15,200
2,904 -
-
-3,955
1
14,150
Boynton Beach Firefighters' Total Fund
80,429,680
4,619,027 -1,278,627
-73,632
-7,655
3,545,237
87,234,030
TI -W
17 BOGDAHN
rGRoup.,
Financial Reconciliation Fiscal Year to Date
Total Fund
October 1, 2015 To December 31, 2015
Market Value Net Contributions Distributions Management Other Return On Market Value
10/01/2015 Transfers Fees Expenses Investment 12/31/2015
Total Domestic Equity
41,275,560
1,417,015 - -
-
-1,957
2,517,256
45,207,873
Anchor All Cap Value Equity
9,459,423
1,000,000
-944
604,357
11,062,836
Vanguard 500 Index Signal (VFIAX)
8,884,240
917,015
-
603,691
10,404,946
DSM Large Cap Growth
10,130,456
-
-1,013
863,963
10,993,407
Vanguard Mid -Cap Index Fund (VMCIX)
12,801,440
-500,000
-
445,245
12,746,685
Total International Equity
10,489,319
1,000,000
471,181
11,960,500
American Funds Euro Pacific Gr R6 (RERGX)
5,140,209
-
-
152,804
5,293,013
WCM International Growth Fund (WCMIX)
5,349,109
1,000,000
-
318,377
6,667,487
Total Fixed Income
20,188,292
1,224,943
-864
102,473
21,514,844
Total Domestic Fixed Income
8,674,473
917,015 - -
-
-864
-22,042
9,568,581
Schroders Core Fixed Income
7,526,517
917,015
-749
-15,374
8,427,408
Schroders TIPS
1,147,956
-
-
-115
-6,668
1,141,173
Total Global Fixed Income
7,372,704
114,366
7,487,070
PIMCO Diversified Income Fund (PDIIX)
3,847,282
33,459
3,880,741
Templeton Global Bond Fund (FBNRX)
3,525,422
- - -
-
-
80,907
3,606,329
Total Real Estate "
7,8815253
-735632
4545312
852615933
Intercontinental
5,039,408
- - -
-64,752
-
294,692
5,269,348
ASB RE
2,841,845
- - -
-8,880
-
159,620
2,992,585
Total Non -Core Fixed Income
45141,115
307,928 -
10,149
45459,192
LBC Credit Partners III
2,273,448
300,000 - -
-
2,573,448
Crescent Direct Lending Levered Fund
1,867,667
7,928 - -
-
10,149
1,885,744
Cash
Receipt & Disbursement
580,057
-3,644,861 4,619,027 -1,278,627
-880
13
274,730
Mutual Fund Cash
15,200
2,904 -
-
-3,955
1
14,150
Boynton Beach Firefighters' Total Fund
80,429,680
4,619,027 -1,278,627
-73,632
-7,655
3,545,237
87,234,030
TI -W
18 BOC GDAHN
rGRoup.,
Comparative Performance Trailing Returns
Total Fund
As of December 31, 2015
moenuvn
Date
Total Fund Policy
3.55
3.55
1.34
8.53
8.03
5.39
Difference
0.80
0.80
0.83
0.51
'0.38
'0.48
Total Fund (omss)
4.44
(a)
4.44
(a)
2.55
(4)
9.49
(a)
8.16
(15)
5.16
(88)
01m1/2002
Total Fund Policy
3.55
(17)
3.55
(17)
1.34
(17)
8.53
(30)
8.03
(18)
5.39
(81)
Difference
0.88
0.88
121
0.88
013
'023
All Public Plans -Total Fund Median
2.83
2.83
'0.08
7.82
7.02
5.82
Total Equity
6.84
5.84
0.81
12.64
9.44
3.12
10/01/2007
Total Equity Policy
5.53
5.53
'0.84
11.48
8.48
4.24
Difference
0.31
0.31
1.75
1.08
'0.04
412
Total Domestic Equity
6.15
(27)
6.15
(27)
0.57
(38)
15.33
(26)
11.72
(32)
5.05
(ss)
10m1m007
Total Domestic Equity Policy
827
(23)
827
(23)
0.48
(38)
1474
(35)
1218
(23)
5.88
(38)
Difference
'012
'012
0.08
0.59
'0.46
'0.83
|M U.S.All Cap Equity (SA+CF+MF)Median
4.82
4.82
'078
1388
1077
5.24
Total International Equity
4.61
(15)
4.61
(15)
2.06
(11)
xxm
(67)
2.16
(76)
~4.27
(98)
10m1m007
Total International Equity Policy
3.30
(62)
3.30
(62)
`525
(84)
1.84
(82)
1.51
(85)
4.32
(54)
Difference
1.31
1.31
7.31
1.46
0.85
`2.85
|M International Multi -Cap Core Equity (MF)Median
3.54
3.54
'0.88
425
3.01
424
Total Fixed Income Policy
'0.53
(87)
'0.53
(87)
077
(88)
0.80
(88)
271
(70)
4.01
(88)
Difference
1.08
1.08
1.87
1.88
1.35
0.88
|MU.S.Intermediate Duration (SA+CF)Median
'0.45
'0.45
129
1.40
2.87
444
Total Domestic Fixed Income
'0.23
(12)
'0.23
(12)
1.67
(x)
1.55
(70)
3.16
(os)
4.41
(90)
10m1m007
Total Domestic Fixed Income Policy
'0.53
(65)
'0.53
(65)
0.77
(51)
0.80
(100)
271
(100)
4.01
(98)
Difference
0.30
0.30
0.80
0.75
0.45
0.40
|MU.S.Broad Market Core Fixed Income (SA+CF)Median
'0.48
'0.48
078
188
385
4.88
Total Global Fixed Income
1.55
(1)
1.55
(1)
-1.30
(28)
0a1
(27)
mw`
3.52
(15)
03m1m011
BofA Merrill Lynch Global Broad Market Index
'0.88
(58)
'0.88
(58)
`2.75
(37)
4.39
(51)
118
(55)
1.04
(54)
Difference
2.51
2.51
1.45
1.80
N/A
2.48
|M Global Fixed Income (MF)Median
'0.82
'0.82
`371
4.37
1.38
121
Total Real Estate
6.76
6.76
16.64
16.07
14.84
13.78
06/0112010
Total Real Estate Policy
3.47
3.47
1521
1380
13.55
1471
Difference
2.29
2.29
0.43
1.47
1.29
-0.93
Returns for periods greater than one year are annualized. Returns are expressed as percentages.
Parenthesized number represents pertinent peer group ranking: 1-100, best to worst
Non -Core Fixed Income reported on IRR page. 19
n -W
BO�G1AHN
Comparative Performance Trailing Returns
Total Fund
As of December 31, 2015
moenuvn
Date
Anchor All Cap Value Equity
6.53
(10)
6.53
(10)
~o.aa
(70)
12.59
(57)
11.02
(45)
13.35
(56)
08m1/2009
Russell 3OUUValue Index
5.41
(33)
5.41
(33)
413
(81)
1278
(50)
10.88
(45)
13.30
(57)
Difference
112
112
420
'017
0.04
0.05
|M U.S.All Cap Value Equity (SA+CF)Median
4.35
4.35
`325
1275
10.88
13.58
Vanguard nooIndex Signal (VFmx)
7.04
(a)
7.04
(a)
1.36
(r)
15.0*
(a)
12.48
(a)
6a1
(n)
12/01/2007
S&P 5OUIndex
7.04
(6)
7.04
(6)
1.38
(4)
1513
(1)
12.57
(1)
8.38
(3)
Difference
0.00
0.00
'0.02
'0.04
'0.08
'0.05
|M S&P 5OUIndex (MF)Median
8.84
8.84
0.84
1481
12.04
5.88
ooM Largo Cap Growth
8.53
(21)
8.53
(21)
8.76
(19)
18.41
(22)
14.*6
(17)
15o5
(an)
11m1/200e
Russell 1000 Growth Index
7.32
(45)
7.32
(45)
5.87
(45)
18.83
(47)
13.53
(40)
1583
(35)
Difference
121
121
3.08
1.58
1.43
0.02
|MU.S.Large Cap Growth Equity (SA+CF)Median
8.87
8.87
5.07
18.82
12.83
14.88
Vanguard Mid -Cap Index Fund (Vwo|x)
3.44
(32)
3.44
(32)
'1.33
(23)
wx\
wx\
11.46
(10)
07m1o013
cRSPU.S. Mid Cap TRIndex
3.48
(30)
3.48
(30)
428
(22)
14.88
(7)
1174
(7)
11.57
(8)
Difference
'0.02
'0.02
'0.05
N/A
N/A
'0.11
IM U.S. Mid Cap Core Equity (MF) Median
2.80
2.80
'3.54
11.85
8.18
8.32
International Equity
vvoMInternational Growth Fund (mCM|x)
615
(n)
615
(n)
wx\
wx\
wx\
0.62
(4)
04m1x2015
MSCI ACWorld exUSA
3.30
(88)
3.30
(88)
'525
(88)
1.84
(82)
1.51
(85)
'8.54
(82)
Difference
285
285
N/A
N/A
N/A
8.18
|M International Large Cap Growth Equity(MF)Median
4.40
4.40
'0.57
4.15
3.31
'5.58
American Funds EumPaumuornn(nEnox)
2.97
(72)
2.97
(72)
wx\
wx\
wx\
'n.Vo
(64)
04m1x2015
MSCI ACWorld exUSA
3.30
(88)
3.30
(88)
'525
(88)
1.84
(82)
1.51
(85)
'8.54
(82)
Difference
'0.33
'0.33
N/A
N/A
N/A
2.45
|M International Large Cap Growth Equity(MF)Median
4.40
4.40
'0.57
415
3.31
`5.58
Returns for periods greater than one year are annualized. Returns are expressed as percentages.
Parenthesized number represents pertinent peer group ranking: 1-100, best to worst
Non -Core Fixed Income reported on IRR page. 20
TI -1E
BO�G1AHN
Comparative Performance Trailing Returns
Total Fund
As of December 31, 2015
moenuvn
Date
Schroders Core Fixed Income
'0.18
(11)
'0.18
(11)
1.98
(r)
2.09
(14)
3.33
(26)
4.60
(39)
04m1/2007
Schroders Core Fixed Income Policy
'0.51
(62)
'0.51
(62)
121
(63)
1.41
(50)
2.74
(67)
415
(80
Difference
0.33
0.33
0.77
0.88
0.59
0.45
|MU.S.Intermediate Duration (SA+CF)Median
'0.45
'0.45
129
1.40
2.87
4.47
Schroders TIPS
'o.na
'o.na
'0a1
'1.83
1.e2
3.23
11m1/2007
Barclays U.S. Treasury: U.S. TIPS Index
'0.84
'0.84
444
`227
2.55
3.85
Difference
0.08
0.08
113
044
'0.73
'0.82
Barclays U.S. TIPS 1-10 Year
'070
'070
'0.52
477
1.84
320
Difference
012
012
021
'0.08
018
0.03
Global Fixed Income
PIMooDiversified Income Fund (Ponx)
0.87
(2)
0.87
(2)
1.25
(1)
1.0e
(20)
wx\
4.28
(n)
03m1o011
Barclays Global Credit (Hedged)
0.00
(18)
0.00
(18)
'020
(14)
2.33
(7)
4.84
(5)
4.80
(4)
Difference
0.87
0.87
1.45
425
N/A
-0.32
|M Global Fixed Income (MF)Median
'0.82
'0.82
`371
4.37
1.38
121
Templeton Global Bond Fund (Fewnx)
2.29
(1)
2.29
(1)
'3.91
(54)
000
(33)
wx\
2.84
(22)
03m1o011
cmgmupWorld Government Bond Index
423
(77)
423
(77)
`3.57
(47)
`288
(74)
'0.08
(81)
'018
(80)
Difference
3.52
3.52
'0.34
2.78
N/A
3.00
|MGlobal Fixed Income (MF)Median
'0.82
'0.82
`371
4.37
1.38
121
Real Estate
Intercontinental
5.85
5.85
14.77
15.24
15.24
13.91
04m1o010
NCRE|FODCE
3.47
3.47
1521
1380
13.55
14.48
Difference
2.38
2.38
'044
1.84
1.88
'0.58
ASB RE
5a2
5a2
17.23
14.77
wx\
14.48
10m1o012
mCRBFODCE
3.47
3.47
1521
1380
13.55
1329
Difference
2.15
2.15
2.02
1.17
N/A
1.19
Returns for periods greater than one year are annualized. Returns are expressed as percentages.
Parenthesized number represents pertinent peer group ranking: 1-100, best to worst
Non -Core Fixed Income reported on IRR page. 21
TI -1E
BO�G1AHN
Comparative Performance - IRR
As of December 31, 2015
Comparative Performance - IRR
QTR
1 YR Inception Inception
Date
Total Non -Core Fixed Income 0.25
8.92 8.51 06/23/2014
Crescent Direct Lending Levered Fund 0.54
6.82 3.75 10/01/2014
LBC Credit Partners III 0.00 10.54 11.37 06/23/2014
TkW
22BO�GDAHN
r z
GRoup.,
Comparative Performance Fiscal Year Returns
Total Fund
As of December 31, 2015
RParenthesized eturns for periods greater than one year are annualized. Returns are expressed as percentages. THE������ed���me���d�n�RR�a�-^----~� ------- 23 BO�GDAHN
���
� ~���mp^
oxt-2014
oxt-2013
oxt-2012
oxt-2011
oxt-2010
oxt-0000
oxt-000x
oxt-000r
oxt-0000
FYTD
TO
TO
TO
TO
TO
TO
TO
TO
TO
Sep -2015
Total Fund Policy
3.55
018
10.72
1275
18.48
214
8.88
0.48
4278
12.37
Difference
0.80
0.72
'0.45
0.44
481
`278
410
-I07
4.08
023
Total Fund (Gross)
4.44
(3)
1.23
(12)
10.82
(36)
13.73
(30)
17.43
(56)
-0.15 (62)
9.37
(66)
0.75
(64)
-16.85
(92)
12.71
(75)
Total Fund Policy
3.55
(17)
018
(32)
10.72
(38)
1275
(48)
18.48
(37)
214 (17)
8.88
(51)
0.46
(67)
4278
(42)
12.37
(80
Difference
0.88
1.05
010
0.88
4.03
`229
'0.58
029
4.08
0.34
All Public Plans -Total Fund Median
2.83
'0.47
1013
12.50
17.88
0.32
8.88
188
43.41
1428
Total Equity Policy
5.53
`3.37
14.53
20.52
28.34
`227
10.41
4.84
-23.02
18.02
Difference
0.31
2.41
4.48
1.47
`221
`2.57
1.00
`3.08
`3.57
N/A
Total Domestic Equity
6.15
(27)
0.63
(35)
17.31
(30)
22.27
(59)
ozos
(48)
-1y8 (53)
13.08
(30)
-8.26
(77)
-24.14
(57)
mw
Total Domestic Equity Policy
827
(23)
'0.48
(44)
1778
(25)
2180
(84)
3020
(20)
0.55 (30)
10.88
(48)
'815
(84)
`2177
(34)
1588
(83)
Difference
'012
112
'0.45
087
`315
`2.53
212
`211
`2.37
N/A
|MU.S.All Cap Equity (SA+CF+MF)Median
4.82
418
15.34
23.38
2871
478
10.41
422
-23.38
17.46
Total International Equity
4.61
(15)
-7.06
(40)
-0.43
(95)
20.93
(54)
15.82
(38)
-13.23 (82)
2.52
(80)
-4.87
(90)
-39.20
(98)
N/A
Total International Equity Policy
3.30
(82)
4178
(85)
5.22
(30)
18.88
(84)
15.04
(51)
4O.42(37)
8.80
(30)
3.80
(35)
`3013
(34)
25.38
(41)
Difference
1.31
4.72
`5.85
3.85
0.78
`281
4.38
-8.87
'8.07
N/A
|MInternational Multi -Cap Core Equity (MF)Median
3.54
'7.88
429
2180
15.08
4118
488
175
`3113
24.88
Total Fixed Income
0.55
2.33
6.10
0.12
8.83
1.60
8.26
13.29
0.63
NIA
Total Fixed Income Policy
'0.53
2.32
2.55
4.82
511
518
778
818
3.52
5.31
Difference
1.08
0.01
3.55
1.74
3.72
`3.58
0.47
410
`2.88
N/A
Total Domestic Fixed Income
-0.23
(12)
oym
(61)
3.13
(97)
-0.67
(23)
5.88
(77)
3.91 (94)
8.25
(84)
13.29
(33)
0.63
(67)
mw
Total Domestic Fixed Income Policy
'0.53
(85)
2.32
(85)
2.55
(88)
4.82
(78)
511
(83)
5.16 (58)
778
(83)
818
(80)
3.52
(38)
5.31
(34)
Difference
0.30
0.80
0.58
0.85
0.77
425
0.47
410
`2.88
N/A
|MU.S.Broad Market Core Fixed Income (SA+CF)Median
'0.48
3.02
4.50
428
880
528
823
1228
2.53
515
Total Global Fixed Income
1.55
(1)
~4.30
(59)
6.22
(14)
1.63
(o)
14.77
(x)
mw`
mw`
mw`
mw`
mou
Bo0\Merrill Lynch Global Broad Market Index
'0.88
(58)
`2.44
(34)
1.45
(81)
`285
(84)
510
(88)
4.18 (9)
822
(84)
13.38
(58)
280
(14)
8.01
(44)
Difference
2.51
4.88
477
428
887
N/A
N/A
N/A
N/A
N/A
|MGlobal Fixed Income (MF)Median
'0.82
`375
3.53
4.52
718
181
7.82
13.88
4.53
7.30
Total Real Estate
6.76
14.34
13.66
16.37
12.16
16.62
N/A
NIA
NIA
N/A
Total Real Estate Policy
3.47
1471
12.39
12.47
11.77
18.03
814
`38.08
373
17.84
RParenthesized eturns for periods greater than one year are annualized. Returns are expressed as percentages. THE������ed���me���d�n�RR�a�-^----~� ------- 23 BO�GDAHN
���
� ~���mp^
Comparative Performance Fiscal Year Returns
Total Fund
As of December 31, 2015
oxt-2014 oxt-2013 oxt-2012 oxt-2011 oxt-2010 oxt-0000 oxt-000x oxt-000r oxt-0000
FYTD TO TO TO TO TO TO TO TO TO
Sep -2015
Domestic Equity
Anchor All Cap Value Equity
6.53
(10)
'7.19
(83)
17.85
(24)
22.80
(68)
23.97
(75)
3o1 (16)
12.47
(41)
wx\
wx\
wx\
Russell 3OUUValue Index
5.41
(33)
4.22
(88)
1788
(28)
2287
(88)
31.05
(18)
`2.22 (81)
815
(71)
4078
(84)
`2270
(78)
1373
(78)
Difference
112
`2.87
018
0.13
'7.08
5.83
3.32
N/A
N/A
N/A
|MU.S.All Cap Value Equity (SA+CF)Median
4.35
`288
15.40
28.38
27.72
425
1077
`3.48
48.80
18.83
Dalton All Cap Value Equity
N/A
N/A
N/A
N/A
22.28
(83)
-5.44 (92)
17.46
(12)
N/A
N/A
N/A
Russell 3000 Value Index
5.41
(33)
422
(68)
1788
(28)
2287
(68)
31.05
(18)
`222 (61)
815
(71)
40.78
(94)
-2270
(78)
1373
(78)
Difference
N/A
N/A
N/A
N/A
-8.77
-3.22
8.31
N/A
N/A
N/A
|MU.S.All Cap Value Equity (SA+CF)Median
4.35
`2.88
15.40
28.38
27.72
425
1077
`3.48
48.80
18.83
Vanguard nooIndex Signal (VFmx)
7.04
(a)
'o.no
(1)
19o5
(r)
19a1
(a)
29.99
(18)
0.99 (16)
10.16
(4)
'n.ao
(10)
wx\
wx\
S&P 5OUIndex
7.04
(6)
'081
(2)
1873
(1)
18.34
(1)
3020
(1)
114 (2)
10.18
(4)
'8.81
(21)
`21.88
(10)
1844
(2)
Difference
0.00
0.01
'0.08
-I03
'021
'015
0.00
0.11
N/A
N/A
|M S&P 5OUIndex (MF)1st Quartile
7.00
'078
18.48
1810
29.83
0.80
8.85
'8.87
-2213
1817
DSM Large Cap Growth
8.53
(21)
8.57
(r)
17.22
(59)
19.76
(59)
35.68
(a)
'0.e2 (ra)
17.48
(o)
wx\
wx\
wx\
Russell 1OUUGrowth Index
7.32
(45)
317
(58)
1815
(38)
1827
(85)
2918
(38)
378 (29)
1285
(37)
485
(38)
`2088
(54)
18.35
(57)
Difference
121
5.40
4.83
0.48
8.48
480
483
N/A
N/A
N/A
|M U.S. Large Cap Growth Equity (SA+CF)Median
8.87
375
18.03
20.31
27.57
1.38
11.31
`3.07
`20.31
2018
Vanguard Mid -Cap Index Fund (Vwo|x)
3.44
(32)
1.61
(22)
15.89
(12)
wx\
wx\
wx\
wx\
wx\
wx\
wx\
cRSPU.S. Mid Cap TRIndex
3.48
(30)
178
(21)
15.84
(12)
28.08
(37)
2823
(48)
'O18(21)
18.04
(5)
475
(52)
`2320
(84)
18.82
(35)
Difference
'0.02
'015
'0.05
N/A
N/A
N/A
N/A
N/A
N/A
N/A
IM U.S. Mid Cap Core Equity (MF)Median
2.80
4.35
1175
27.58
2814
`388
13.45
488
`21.53
1888
International Equity
Manning mNapier Overseas (Exoox)
wx\
wx\
'0.43
(on)
20.93
(54)
16.04
(an)
'12.54 (100)
2.52
(80)
wx\
wx\
wx\
Total International Equity Policy
3.30
(82)
4178
(85)
522
(30)
18.88
(84)
15.04
(51)
-10.42 (100)
8.80
(30)
380
(35)
'3013
(34)
25.38
(41)
Difference
N/A
N/A
'585
3.85
1.00
`212
4.38
N/A
N/A
N/A
|MInternational Multi -Cap Core Equity (MF)Median
3.54
'7.88
429
2180
15.08
29.82
488
175
`3113
24.88
American Funds EumPacifiuorR6(nERGX)
2.97
(72)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
MSCI ACWorld ex USA
3.30
(88)
4178
(87)
5.22
(35)
18.88
(84)
15.04
(75)
40.42 (43)
8.00
(44)
8.43
(15)
`29.87
(84)
31.08
(28)
Difference
-0.33
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
|MInternational Large Cap Growth Equity (MF)Median
4.40
'8.00
3.80
1828
1783
40.88
7.32
112
`28.38
2783
WCMInternational Growth Fund (WCM|x)
6.15
(6)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
MSCI ACWorld ex USA
3.30
(88)
4178
(87)
5.22
(35)
18.88
(84)
15.04
(75)
40.42 (43)
8.00
(44)
8.43
(15)
`29.87
(84)
31.08
(28)
Difference
2.85
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
|MInternational Large Cap Growth Equity (MF)Median
4.40
'8.00
3.80
1828
1783
40.88
7.32
112
`28.38
2783
Returns for periods greater than one year are annualized. Returns are expressed =percentages.
Parenthesized number retsm"°"^pee,uroup="m"u.,',nn.��m°°"*
zas
w��o�r*�/�om°�p�° �/nnp�°
24
BO�GDAHN
�
���
~���mp^
Comparative Performance Fiscal Year Returns
Total Fund
As of December 31, 2015
PIM000*onsifiouIncome Fund (PonX)
Barclays Global Credit (Hedged)
Difference
|M Global Fixed Income (MF)Median
Templeton Global Bond Fund (Fewnx)
cihgmupWorld Government Bond Index
Difference
|M Global Fixed Income (MF)Median
Real Estate
0.87
FYTD
oxt-2014
TO
Sep -2015
oxt-2013
TO
oxt-2012
TO
oxt-2011
TO
oxt-2010
TO
oxt-0000
TO
oxt-000x
TO
oxt-000r
TO
oxt-0000
TO
Domestic Fixed Income
0.88
(17)
8.83
(9)
1.46
(9)
1181
(7)
0.87
N/A
Schroders Core Fixed Income
'0.18 (11)
3.50 (r)
3.46 (28)
0.04 (32)
5.63 (48)
3.20 (71)
8.34 (46)
14.83 (12)
'o.an (ar)
wx\
Schroders Core Fixed Income Policy
'0.51 (62)
2.85 (30)
2.74 (58)
'071 (77)
4.31 (84)
422 (23)
7.52 (77)
8.88 (81)
418 (35)
4.85 (93)
Difference
0.33
0.55
0.72
075
1.32
4.02
0.82
514
4.52
N/A
|MU.S.Intermediate Duration (SA+CF)Median
'0.45
288
2.87
-027
5.58
380
828
11.52
324
5.48
Schroders TIPS
'o.na
'o.an
0.77
'4.47
n.*n
7.69
7.59
3.80
wx\
wx\
Barclays U.S. Treasury: U.S.TIPS Index
'084
'083
1.59
'810
810
887
888
5.87
820
4.87
Difference
0.08
'0.02
'0.82
183
`214
`218
4.30
487
N/A
N/A
Barclays U.S. TIPS 14OYear
'0.70
'0.82
081
`3.80
8.32
718
7.40
4.02
7.88
5.32
PIM000*onsifiouIncome Fund (PonX)
Barclays Global Credit (Hedged)
Difference
|M Global Fixed Income (MF)Median
Templeton Global Bond Fund (Fewnx)
cihgmupWorld Government Bond Index
Difference
|M Global Fixed Income (MF)Median
Real Estate
0.87
(2)
'1.10
(27)
noo
(17)
0.35
(25)
16.25
(4
0.00
(18)
0.88
(17)
8.83
(9)
1.46
(9)
1181
(7)
0.87
N/A
4.88
N/A
'0.74
4.61 (8)
'111
1378 (51)
4.84
888 (31)
'0.82
N/A
`375
N/A
3.53
15o1
4.52
13.20
718
N/A
2.29
(1)
'r.nr
(90)
6.35
(12)
3.52
(4
13.25
(5)
423
(77)
`3.83
(52)
'0.07
(97)
4.80
(85)
329
(97)
3.52
N/A
`3.74
N/A
8.42
N/A
8.12
8.88
N/A
N/A
N/A
N/A
N/A
188 (48)
11.05 (31)
15.88 (25)
4.40 (78)
3.82 (82)
N/A
N/A
N/A
N/A
N/A
181
7.82
13.88
4.53
7.30
N/A
N/A
N/A
N/A
N/A
4.61 (8)
4.88 (85)
1378 (51)
5.80 (8)
888 (31)
N/A
N/A
N/A
N/A
N/A
15o1
12.85
13.20
N/A
N/A
Intercontinental
5.85
13.96
14.10
18.21
12.21
16.52
wx\
wx\
wx\
wx\
NCRE|FODCE
3.47
1471
12.39
12.47
11.77
18.03
814
`38.08
373
17.84
Difference
2.38
'0.75
171
5.74
044
4.51
N/A
N/A
N/A
N/A
ASB RE
5.62
15o1
12.85
13.20
N/A
N/A
N/A
N/A
N/A
N/A
NCRE|FODCE
3.47
1471
12.39
12.47
11.77
18.03
814
`38.08
373
17.84
Difference
215
0.30
0.46
0.73
N/A
N/A
N/A
N/A
N/A
N/A
RParenthesized eturns for periods greater than one year are annualized. Returns are expressed as percentages. THE������ed���me���d�n�RR�a�-^----~� ------- 25 BO�GDAHN
���
� ~���mp^
14.00
12.00
10.00
8.00
6.00
v
K
4.00
2.00
0.00
-2.00
-4.00
J
iuuuuuuumiiiii uuuuuuuuiiiiiiu
C]
QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR
28.00
24.00
20.00
16.00
12.00
' 8.00
v
K
4.00
0.00
-4.00
-8.00
-12.00
Performance Review
Total Fund
As of December 31. 2015
Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009
To To To To To To
Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010
Total Fund 4.44 (3)
4.44 (3) 2.55 (4)
5.09 (5) 9.49 (8) 10.35 (13)
8.16 (15)
0 Total Fund
1.23 (12) 10.82 (36) 13.73 (30) 17.43
(56) -0.15 (62) 9.37 (66)
* Total Fund Policy 3.55 (17)
3.55 (17) 1.34 (17)
4.40 (15) 8.53 (30) 9.50 (33)
8.03 (18)
0 Total Fund Policy
0.18 (32) 10.72 (38) 12.75 (46) 18.46
(37) 2.14 (17) 9.96 (51)
Median 2.93
2.93 -0.06
3.38 7.82 8.98
7.02
Median
-0.47 10.13 12.50 17.86
0.32 9.96
Comparative Performance
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
Ending
Ending
Ending
Ending
Ending
Ending
Sep -2015
Jun -2015
Mar -2015
Dec -2014
Sep -2014
Jun -2014
Total Fund
-4.77 (42)
0.51 (16)
2.58 (39)
3.09 (17)
-1.04 (47)
3.72 (43)
Total Fund Policy
-4.56 (30)
0.37 (22)
2.16 (73)
2.37 (44)
-0.51 (19)
3.85 (36)
All Public Plans -Total Fund Median
-5.02
-0.09
2.44
2.26
-1.13
3.63
26
TI -IL
BOIGDAHN
r z
GRoup.,
Performance Review
Total Fund
As of December 31, 2015
3 Yr Rolling Under/Over Performance - 5 Years
3 Yr Rolling Percentile Ranking - 5 Years
7.01
0 Total Fund
20.0
8.00
0.0
8.53
6.29
0 Total Fund Policy
8.03
Over
7.33
Median
7.83
6.76
Median
7.02
Performance
7.98
�
15.0
• w 25.0
Up
Down
Information
a 10.0
• • ®
v 50.0
Market
Market
Alpha
Ratio
;9
Beta
®
a
Capture
Capture
5.0
75.0
109.48
106.96
0.06
0.82
1.33
1.10
3.62
Under r
100.00
100.00
0.00
N/A
0.0
1.00
3.22
Performance - --
100.0
-
--
-
--
0.0
5..0 10.0
15.0 20.0 3/11 9/11 3/12
9/12 3/13
9/13 3/14
9/14 3/15
12/15
Sharpe
Total Fund Policy (%)
Error
Market
Market
Alpha
Ratio
Ratio
Beta
Risk
Total Period
5-25
25 -Median
Median -75
75-95
Over Performance
Under Performance
Count
Count
Count
Count
Earliest Date
X Latest Date
Total Fund 20
5 (25%)
7 (35%)
7 (35%)
1 (5%)
0 Total Fund Policy 20
8 (40%)
10 (50%)
2 (10%)
0 (0%)
9.90
9.35
8.80
«9
8.25
v
rr
7.70
7.15
6.00 6.20 6.40 6.60 6.80 7.00
Risk (Standard Deviation %)
Return Standard
Deviation
8.36
.-.7.98
7.60
«9 7.22
v
6.84
6.46
7.20 7.2 7.4 7.6 7.8 8.0
Risk (Standard Deviation %)
Return Standard
Deviation
8.2
Total Fund
9.49
7.01
0 Total Fund
8.16
8.00
0 Total Fund Policy
8.53
6.29
0 Total Fund Policy
8.03
7.33
Median
7.83
6.76
Median
7.02
7.98
Historical Statistics - 3 Years
Tracking
Up
Down
Information
Sharpe
Downside
Error
Market
Market
Alpha
Ratio
Ratio
Beta
Risk
Capture
Capture
Total Fund 1.14
109.48
106.96
0.06
0.82
1.33
1.10
3.62
Total Fund Policy 0.00
100.00
100.00
0.00
N/A
1.33
1.00
3.22
Historical Statistics - 5 Years
Tracking
Up
Down
Information
Sharpe
Downside
Error
Market
Market
Alpha
Ratio
Ratio
Beta
Risk
Capture
Capture
Total Fund 1.16 106.42 111.64 -0.49 0.15 1.01 1.08 4.78
Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.08 1.00 4.21
27
TkW
BO�GDAH1
7y1 �y
ett CJ ,
25.00
20.00
15.00
10.00
5.00
0.00
-5.00
-10.00
-15.00
-20.00
52.00
44.00
36.00
28.00
20.00
12.00
4.00
-4.00
-12.00
-20.00
Performance Review
Anchor All Cap Value
As of December 31. 2015
TI -IL
28BO�GDAHN
r z
GRoup.,
Oct -2014
Oct -2013 Oct -2012 Oct -2011
Oct -2010 Oct -2009
To
To To To
To To
QTR
FYTD
1 YR 2 YR
3 YR 4 YR
5 YR
Sep -2015
Sep -2014 Sep -2013 Sep -2012
Sep -2011 Sep -2010
Anchor All Cap Value 6.53 (10)
6.53 (10)
-5.33 (70) 3.71 (58)
12.59 (57) 12.85 (52)
11.02 (45)
0 Anchor All Cap Value -7.19 (83)
17.85 (24) 22.80 (68) 23.97 (75)
3.61 (16) 12.47 (41)
* Russell 3000 Value 5.41 (33)
5.41 (33)
-4.13 (61) 3.94 (50)
12.76 (50) 13.94 (46)
10.98 (45)
0 Russell 3000 Value
-4.22 (69)
17.66 (28) 22.67 (69) 31.05 (18)
-2.22 (61) 9.15 (71)
Median 4.35
4.35
-3.25 3.92
12.75 13.24
10.86
Median
-2.66
15.40 26.39 27.72
-1.25 10.77
Comparative Performance
_
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
Ending
Ending
Ending
Ending
Ending
Ending
Sep -2015
Jun -2015
Mar -2015
Dec -2014
Sep -2014
Jun -2014
Anchor All Cap Value
-9.58 (63)
-1.73 (92)
0.01 (78)
4.43 (47)
-0.73 (31)
5.58 (28)
Russell 3000 Value
-8.59 (49)
0.00 (48)
-0.51 (87)
5.31 (28)
-0.87 (35)
4.89 (49)
IM U.S. All Cap Value Equity (SA+CF) Median
-8.73
-0.08
1.72
4.25
-1.36
4.86
TI -IL
28BO�GDAHN
r z
GRoup.,
Performance Review
Anchor All Cap Value
As of December 31, 2015
3 Yr Rolling Under/Over Performance - 5 Years
3 Yr Rolling Percentile Ranking - 5 Years
11.23
0 Anchor All Cap Value
-- 30.0
11.56
m 0.0
12.76
10.34
0 Russell 3000 Value
...-
Over
13.76
Median
12.75
10.38
'..
0 25.0
- Performance
14.64
A
w 25.0
Up
Down
Information
>
Downside
Error
Market
Market
Alpha
Ratio
Ratio
Beta
Risk
Capture
Capture
U20.0
v 50.0
94.50
89.52
0.65
-0.06
15.0
'..
• ®
I,. a
100.00
100.00
0.00
'..
°r
10.0
1.00
6.02
7s.o
Under
Up
Down
Information
5.0
Downside
Performance
100.0
Market
Market
Alpha
{'
Ratio
5.0 10.0
15.0 20.0
25.0 30.0 3/11 9/11
3/12 9/12 3/13
9/13 3/14
9/14 3/15
12/15
Russell 3000 Value (%)
Total Period 5-25
25 -Median
Median -75
75-95
Over Performance
Under Performance
Count
Count
Count
Count
Earliest Date
X Latest Date
Anchor All Cap Value
14 1 (7%)
8 (57%)
4 (29%)
1 (7%)
Russell 3000 Value
20 0 (0%)
10 (50%)
6 (30%)
4 (20%)
12.84 11.10
12.78 11.04
12.72 10.98
«9 12.66 «9 10.92
12.60 10.86
12.54
10.00 10.20 10.40 10.60 10.80 11.00 11.20 11.40 10.35 11.04 11.73 12.42 13.11 13.80 14.49 15.18
Risk (Standard Deviation %) Risk (Standard Deviation %)
Return Standard Return Standard
Deviation Deviation
Anchor All Cap Value
12.59
11.23
0 Anchor All Cap Value
11.02
11.56
0 Russell 3000 Value
12.76
10.34
0 Russell 3000 Value
10.98
13.76
Median
12.75
10.38
Median
10.86
14.64
Historical Statistics - 3 Years
Tracking
Up
Down
Information
Sharpe
Downside
Error
Market
Market
Alpha
Ratio
Ratio
Beta
Risk
Capture
Capture
Anchor All Cap Value 3.12
94.50
89.52
0.65
-0.06
1.18
0.93
5.73
Russell 3000 Value 0.00
100.00
100.00
0.00
N/A
1.17
1.00
6.02
Historical Statistics - 5 Years
Tracking
Up
Down
Information
Sharpe
Downside
Error
Market
Market
Alpha
Ratio
Ratio
Beta
Risk
Capture
Capture
Anchor All Cap Value 3.89 87.90 77.87 1.90 -0.04 1.05 0.82 5.88
Russell 3000 Value 0.00 100.00 100.00 0.00 N/A 0.92 1.00 7.27
29
TkW
BO�GDAHN
rr z
GRoup.,
20.00
17.00
14.00
11.00
' 8.00
v
K
5.00
2.00
-1.00
-4.00
N
No
QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR
Vanguard 500 Index Signal (VFIAX) 7.04 (8) 7.04 (8) 1.36 (7) 7.34 (2) 15.09 (3) 15.27 (7) 12.48 (8)
0 S&P 500 Index 7.04 (6) 7.04 (6) 1.38 (4) 7.36 (1) 15.13 (1) 15.35 (1) 12.57 (1)
38.00
32.00
26.00
20.00
' 14.00
v
K
8.00
2.00
-4.00
-10.00
Performance Review
Vanguard 500 Index Signal (VFIAX)
As of December 31. 2015
Oct-
Oct-
Oct-
Oct-
Oct-
Oct -
2014
2013
2012
2011
2010
2009
To
To
To
To
To
To
Sep-
Sep-
Sep-
Sep-
Sep-
Sep -
2015
2014
2013
2012
2011
2010
Vanguard 500 Index Signal (VFIAX) 0.60 (1) 9.65 (7) 9.31 (3) 9.99 (18) 0.99 (16) 0.16 (4)
0 S&P 500 Index 0.61 (2) 9.73 (1) 9.34 (1) 0.20 (1) 1.14 (2) 0.16 (4)
Median
6.94 6.94 0.94
6.89 14.61
14.81 12.04
Median
1.06 9.19 8.80
9.58 0.68 9.68
Comparative Performance
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
Ending
Ending
Ending
Ending
Ending
Ending
Sep -2015
Jun -2015
Mar -2015
Dec -2014
Sep -2014
Jun -2014
Vanguard 500 Index Signal (VFIAX)
-6.46 (22)
0.28 (6)
0.95 (2)
4.97 (1)
1.12 (4)
5.21 (8)
S&P 500 Index
-6.44 (6)
0.28 (10)
0.95 (2)
4.93 (4)
1.13 (2)
5.23 (1)
IM S&P 500 Index (MF) Median
-6.55
0.18
0.85
4.81
1.01
5.11
TI -IL
30BO�GDAHN
r z
GRoup.,
Performance Review
Vanguard 500 Index Signal (VFIAX)
As of December 31. 2015
Over Performance
Earliest Date
15.40
15.20
15.00
«9 14.80
v
K
14.60 -
14.40
10.46
S&P 500 Index (%)
40 Under Performance
Latest Date
10.47
Risk (Standard Deviation %)
Return
91
Standard
Deviation
10.48
Total Period 5-25 25 -Median Median -75 75-95
Count Count Count Count
Vanguard 500 Index Signal (VFIAX) 20 20(100% 0 (0%) 0 (0%) 0 (0%)
* S&P 500 Index 20 20(100% 0 (0%) 0 (0%) 0 (0%)
Peer Group Scattergram - 5 Years
12.80
r 12.60
12.40
«9 12.20
v
12.00
11.80
11.59 11.60 11.61
Risk (Standard Deviation %)
Return Standard
Deviation
Vanguard 500 Index Signal (VFIAX)
15.09
10.47
0 Vanguard 500 Index Signal (VFIAX)
12.48
11.61
0 S&P 500 Index
15.13
10.47
0 S&P 500 Index
12.57
11.60
Median
14.61
10.47
Median
12.04
11.60
Historical Statistics - 3 Years
Tracking
Up
Down
Information
Sharpe
Downside
Error
Market
Market
Alpha
Ratio
Ratio
Beta
Risk
Capture
Capture
Vanguard 500 Index Signal (VFIAX)
0.03
99.89
100.02
-0.02
-0.90
1.40
1.00
5.37
S&P 500 Index
0.00
100.00
100.00
0.00
N/A
1.40
1.00
5.36
Historical Statistics - 5 Years
Tracking
Up
Down
Information
Sharpe
Downside
Error
Market
Market
Alpha
Ratio
Ratio
Beta
Risk
Capture
Capture
Vanguard 500 Index Signal (VFIAX) 0.08 99.78 100.27 -0.09 -1.05 1.07 1.00 6.56
S&P 500 Index 0.00 100.00 100.00 0.00 N/A 1.08 1.00 6.53
TI -IE
31BO�GDAHN
rr z
GRoup.,
28.00
24.00
20.00
16.00
12.00
K
8.00
4.00
0.00
-4.00
-8.00
44.00
36.00
28.00
20.00
12.00
K
4.00
-4.00
-12.00
-20.00
Performance Review
DSM Large Cap Growth
As of December 31. 2015
Oct -2014
Oct -2013 Oct -2012 Oct -2011
Oct -2010 Oct -2009
To
To To To
To To
QTR
FYTD
1 YR 2 YR
3 YR 4 YR
5 YR
Sep -2015
Sep -2014 Sep -2013 Sep -2012
Sep -2011 Sep -2010
DSM Large Cap Growth 8.53 (21)
8.53 (21)
8.76 (19) 10.47 (23)
18.41 (22) 19.18 (13)
14.96 (17)
0 DSM Large Cap Growth 8.57 (7)
17.22 (59) 19.76 (59) 35.68 (3)
-0.82 (73) 17.48 (9)
* Russell 1000 Growth 7.32 (45)
7.32 (45)
5.67 (45) 9.30 (39)
16.83 (47) 16.43 (50)
13.53 (40)
0 Russell 1000 Growth
3.17 (56)
19.15 (38) 19.27 (65) 29.19 (38)
3.78 (29) 12.65 (37)
Median 6.97
6.97
5.07 8.51
16.62 16.42
12.93
Median
3.75
18.03 20.31 27.57
1.36 11.31
Comparative Performance
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
Ending
Ending
Ending
Ending
Ending
Ending
Sep -2015
Jun -2015
Mar -2015
Dec -2014
Sep -2014
Jun -2014
DSM Large Cap Growth
-5.92 (52)
2.43 (7)
3.99 (49)
8.34 (4)
2.54 (16)
2.28 (92)
Russell 1000 Growth
-5.29 (34)
0.12 (66)
3.84 (52)
4.78 (58)
1.49 (40)
5.13 (34)
IM U.S. Large Cap Growth Equity (SA+CF) Median
'.
0.63
i
3.92
5.12
1.15
4.59
'.
llllllllll�
llllllll�
11
44.00
36.00
28.00
20.00
12.00
K
4.00
-4.00
-12.00
-20.00
Performance Review
DSM Large Cap Growth
As of December 31. 2015
TI -IL
32BO�GDAHN
r z
GRoup.,
Oct -2014
Oct -2013 Oct -2012 Oct -2011
Oct -2010 Oct -2009
To
To To To
To To
QTR
FYTD
1 YR 2 YR
3 YR 4 YR
5 YR
Sep -2015
Sep -2014 Sep -2013 Sep -2012
Sep -2011 Sep -2010
DSM Large Cap Growth 8.53 (21)
8.53 (21)
8.76 (19) 10.47 (23)
18.41 (22) 19.18 (13)
14.96 (17)
0 DSM Large Cap Growth 8.57 (7)
17.22 (59) 19.76 (59) 35.68 (3)
-0.82 (73) 17.48 (9)
* Russell 1000 Growth 7.32 (45)
7.32 (45)
5.67 (45) 9.30 (39)
16.83 (47) 16.43 (50)
13.53 (40)
0 Russell 1000 Growth
3.17 (56)
19.15 (38) 19.27 (65) 29.19 (38)
3.78 (29) 12.65 (37)
Median 6.97
6.97
5.07 8.51
16.62 16.42
12.93
Median
3.75
18.03 20.31 27.57
1.36 11.31
Comparative Performance
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
Ending
Ending
Ending
Ending
Ending
Ending
Sep -2015
Jun -2015
Mar -2015
Dec -2014
Sep -2014
Jun -2014
DSM Large Cap Growth
-5.92 (52)
2.43 (7)
3.99 (49)
8.34 (4)
2.54 (16)
2.28 (92)
Russell 1000 Growth
-5.29 (34)
0.12 (66)
3.84 (52)
4.78 (58)
1.49 (40)
5.13 (34)
IM U.S. Large Cap Growth Equity (SA+CF) Median
-5.88
0.63
3.92
5.12
1.15
4.59
TI -IL
32BO�GDAHN
r z
GRoup.,
Performance Review
DSM Large Cap Growth
As of December 31, 2015
3 Yr Rolling Under/Over Performance - 5 Years
3 Yr Rolling Percentile Ranking - 5 Years
15.64
2 18.60
14.96
e 30.0
14.36
17.98
0.0
14.28
17.36
13.53
w 13.60
Over
Median
16.62
9.47
16.74
=-
25.0
Performance
Historical Statistics - 3 Years
25.0
12.24
J
7.98
8.40 8.82 9.24 9.66 10.08 10.50
2
12.15 12.60 13.05 13.50 13.95 14.40 14.85
Tracking
v 011 C1
Down
Risk (Standard Deviation %)
Information
Standard
o. 20.0
Standard
®
G
Market
0
Ratio
Deviation
A
w
Deviation
°
•
50.0
',,. v
Capture
15.0
•
a
103.23
-0.24
0.34
1.39
rn
6.25
Russell 1000 Growth 0.00
75.0
100.00
0.00
N/A
#
10.0
-
Historical Statistics - 5 Years
Under '
�
ul
- 5.0
Tracking
Performance - -- -
100.0
Down
-- -
Information
--
5.0 10.0
15.0 20.0
25.0 30.0 3/11 9/11 3/12 9/12
3/13 9/13
3/14
9/14 3/15
12/15
Beta
Risk
Russell 1000 Growth (%)
Capture
Capture
Total Period
5-25
25 -Median
Median -75
75-95
Over Performance
Under Performance
Count
Count
Count
Count
Earliest Date
X Latest Date
DSM Large Cap Growth 17
13 (76%)
3 (18%)
1 (6%)
0 (0%)
0 Russell 1000 Growth 20
0 (0%)
17 (85%)
3 (15%)
0 (0%)
19.22
18.41
15.64
2 18.60
14.96
2 14.96
14.36
17.98
16.83
14.28
17.36
13.53
w 13.60
12.48
Median
16.62
9.47
16.74
=-
12.92
13.51
Historical Statistics - 3 Years
12.24
J
7.98
8.40 8.82 9.24 9.66 10.08 10.50
10.92 11.70
12.15 12.60 13.05 13.50 13.95 14.40 14.85
Tracking
Risk (Standard Deviation %)
Down
Risk (Standard Deviation %)
Information
Standard
Standard
Error
Return
Market
Return
Ratio
Deviation
Beta
Deviation
DSM Large Cap Growth
18.41
10.47
0 DSM Large Cap Growth
14.96
14.36
0 Russell 1000 Growth
16.83
8.60
0 Russell 1000 Growth
13.53
12.48
Median
16.62
9.47
Median
12.93
13.51
Historical Statistics - 3 Years
Tracking
Up
Down
Information
Sharpe
Downside
Error
Market
Market
Alpha
Ratio
Ratio
Beta
Risk
Capture
Capture
DSM Large Cap Growth 4.75
107.60
103.23
-0.24
0.34
1.39
1.11
6.25
Russell 1000 Growth 0.00
100.00
100.00
0.00
N/A
1.51
1.00
4.93
Historical Statistics - 5 Years
Tracking
Up
Down
Information
Sharpe
Downside
Error
Market
Market
Alpha
Ratio
Ratio
Beta
Risk
Capture
Capture
DSM Large Cap Growth 4.37 108.63 105.41 0.17 0.34 1.08 1.10 7.47
Russell 1000 Growth 0.00 100.00 100.00 0.00 N/A 1.12 1.00 6.47
33
TkW
BO�GDAHN
rr z
GRoup.,
25.00
20.00
15.00
10.00
5.00
v
K
0.00
-5.00
-10.00
-15.00
-20.00
44.00
36.00
28.00
20.00
' 12.00
v
K
4.00
-4.00
-12.00
-20.00
Performance Review
VG Mid -Cap Index (VMCIX)
As of December 31. 2015
TI -IL
34BO�GDAHN
r z
GRoup.,
Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009
To To To To To To
QTR
FYTD 1 YR
2 YR
3 YR 4 YR
5 YR
Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010
VG Mid -Cap Index (VMCIX)
3.44 (32)
3.44 (32) -1.33 (23)
5.90 (7)
N/A N/A
N/A 0 VG Mid -Cap Index (VMCIX)
1.61 (22) 15.89 (12) N/A N/A N/A N/A
* CRSP U.S. Mid Cap TR
3.46 (30)
3.46 (30) -1.28 (22)
6.01 (5)
14.98 (7) 15.41 (7)
11.74 (7) 0 CRSP U.S. Mid Cap TR
1.76 (21) 15.94 (12) 28.08 (37) 26.23 (49) -0.18 (21) 18.04 (5)
Median
2.90
2.90 -3.54
2.24
11.95 12.70
9.18 Median
-1.35 11.75 27.56 26.14 -3.68 13.45
Comparative Performance
1 Qtr
1 Qtr
1 Qtr 1 Qtr
1 Qtr 1 Qtr
Ending
Ending
Ending Ending
Ending Ending
Sep -2015
Jun -2015
Mar -2015 Dec -2014
Sep -2014 Jun -2014
VG Mid -Cap Index (VMCIX)
-7.45 (26)
-1.16 (57)
4.28 (31) 6.52 (28)
-1.14 (9) 4.51 (38)
CRSP U.S. Mid Cap TR
-7.44 (25)
-1.18 (58)
4.32 (29) 6.65 (25)
-1.15 (10) 4.53 (36)
IM U.S. Mid Cap Care Equity (MF)
Median
-8.61
-0.94
3.50 5.61
-2.91 3.92
TI -IL
34BO�GDAHN
r z
GRoup.,
Performance Review
AF EuroPacific Gr R6 (RERGX)
As of December 31. 2015
14.00
36.00
11.00
28.00
8.00
20.00
jjjjlii{
6
5.00
12.00
n»il}
£
it I�i{
2.00
w
',.
w 4.00
K
t
K
-1.00
-4.00
4,„
-4.00
»�„k,',
-12.00
-7.00
-20.00
-10.00
...
...
J
-28.00
.... ..
Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009
To To To To To To
QTR
FYTD
1 YR 2 YR
3 YR
4 YR
5 YR
Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010
AF EuroPacific Gr R6 (RERGX)
2.97 (72)
2.97 (72)
N/A N/A
N/A
N/A
N/A
0 AF EuroPacific Gr R6 (RERGX)
N/A N/A N/A N/A N/A N/A
* MSCI AC World ex USA
3.30 (66)
3.30 (66)
-5.25 (96) -4.35 (89)
1.94 (92) 5.60 (95)
1.51 (95)
0 MSCI AC World ex USA
11.78 (97) 5.22 (35) 6.98 (64) 15.04 (75) 10.42 (43) 8.00 (44)
Median
4.40
4.40
-0.57 -2.31
4.15
7.65
3.31
Median
-6.00 3.90 8.28 17.83 10.98 7.32
Comparative Performance
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr 1 Qtr
Ending
Ending
Ending
Ending
Ending Ending
Sep -2015
Jun -2015
Mar -2015
Dec -2014 Sep -2014 Jun -2014
AF EuroPacific Gr R6 (RERGX)
-9.81 (42)
1.12 (37)
N/A
N/A
N/A N/A
MSCI AC World ex IDSA
-12.10 (85)
0.72 (65)
3.59 (75)
-3.81 (88)
-5.19 (77) 5.25 (15)
IM International Large Cap Growth Equity (MF) Median
-9.97
0.97
5.48
-1.80
-4.63 3.32
TI -IE
35 BOiGDAHN
r z
GRoup.,
Performance Review
WCM International (WCMIX)
As of December 31. 2015
14.00
36.00
'..
11.00
28.00
8.00
20.00
5.00
12.00
'..
2.00
v
E
4.00
-1.00
-4.00
-4.00
liriiili,. i`ir
-12.00
-7.00
-20.00
-10.00
..
J
-28.00
...
J
Oct -2014
Oct -2013
Oct -2012 Oct -2011
Oct -2010 Oct -2009
To
To
To To
To To
QTR
FYTD
1 YR 2 YR
3 YR
4 YR
5 YR
Sep -2015
Sep -2014
Sep -2013 Sep -2012
Sep -2011 Sep -2010
WCM International (WCMIX)
6.15 (6)
6.15 (6)
N/A N/A
N/A
N/A
N/A
0 WCM International (WCMIX) N/A
N/A
N/A N/A
N/A N/A
* MSCI AC World ex USA
3.30 (66)
3.30 (66)
-5.25 (96) -4.35 (89)
1.94 (92)
5.60 (95)
1.51 (95)
0 MSCI AC World ex USA 11.78 (97)
5.22 (35)
16.98 (64) 15.04 (75)
10.42 (43) 8.00 (44)
Median
4.40
4.40
-0.57 -2.31
4.15
7.65
3.31
Median
-6.00
3.90
18.28 17.83
10.98 7.32
Comparative Performance
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
Ending
Ending
Ending
Ending
Ending
Ending
Sep -2015
Jun -2015
Mar -2015
Dec -2014
Sep -2014
Jun -2014
WCM International (WCMIX)
-6.12 (8)
0.98 (49)
N/A
N/A
N/A
N/A
MSCI AC World ex IDSA
-12.10 (85)
0.72 (65)
3.59 (75)
-3.81 (88)
-5.19 (77)
5.25 (15)
IM International Large Cap Growth
Equity (MF) Median
-9.97
0.97
5.48
-1.80
-4.63
3.32
TI -IE
36BO�GDAHN
r z
GRoup.,
Performance Review
Schroders Core Fixed Income
As of December 31. 2015
5.60
17.00
'..
4.80
14.00
4.00
11.00
'..
3.20
2.40
8.00
,
E
`
rv
1.60
...
�
'.
5.00
0.80
:
2.00
0.00,,
-
.-
G
-0.80
-1.00
G
-1.60
-4.00
-2.40
Oct-
Oct- Oct-
Oct-
Oct- Oct -
2014
2013 2012
2011
2010 2009
To
To To
To
To To
Sep-
Sep- Sep-
Sep-
Sep- Sep -
QTR
FYTD 1 YR
2 YR
3 YR 4 YR
5 YR
2015
2014 2013
2012
2011 2010
Schroders Core Fixed Income
-0.18 (11)
-0.18 (11) 1.98 (7)
3.39 (8)
2.09 (14) 2.87 (19)
3.33 (26)
0 Schroders Core
Fixed Income
3.50(7)
3.46 (28) 0.04 (32) 5.63 (48) 3.20 (71) 8.34 (46)
* Schroders Core Fixed Income Policy
-0.51 (62)
-0.51 (62) 1.21 (63)
2.66 (32)
1.41 (50) 1.95 (74)
2.74 (67)
0 Schroders Core
Fixed Income Policy 2.95 (30) 2.74 (58) 0.71 (77) 4.31 (84) 4.22 (23) 7.52 (77)
Median
-0.45
-0.45 1.29
2.41
1.40 2.28
2.97
Median
2.69
2.87 0.27
5.58
3.60 8.26
Comparative Performance
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
Ending
Ending
Ending
Ending
Ending
Ending
Sep -2015
Jun -2015
Mar -2015
Dec -2014
Sep -2014
Jun -2014
Schroders Core Fixed Income
1.36 (4)
-0.84 (86)
1.64 (20)
1.31 (8)
0.23 (15)
1.50 (38)
Schroders Care Fixed Income Policy
1.08 (30)
-0.67 (61)
1.32 (79)
1.20 (17)
0.03 (39)
1.62 (27)
IM U.S. Intermediate Duration (SA+CF) Median
0.93
-0.61
1.47
0.92
0.01
1.40
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Performance Review
Schroders Core Fixed Income
As of December 31. 2015
Over Performance Earliest Date Latest Date
Schroders Core Fixed Income 20 6(30%) 8(40%) 6(30%) 0(0%)
* Schroders Core Fixed Income Policy 20 0(0%) 1 (5%) 11 (55%) 8(40%)
2.40 3.60
2 2.10 ,: ^ 3.30
1.80 E 3.00
o I o -
1.50 AM 2.70
1.20 - 2.40
1.88 1.92 1.96 2.00 2.04 2.08 2.12 2.16 1.90
Risk (Standard Deviation %)
Return Standard
Deviation
1.91 1.92
Risk (Standard Deviation %)
Return
1.93 1.94
Standard
Deviation
Schroders Core Fixed Income
2.09
2.09
0 Schroders Core Fixed Income
3.33
1.92
0 Schroders Core Fixed Income Policy
1.41
1.95
0 Schroders Core Fixed Income Policy
2.74
1.93
Median
1.40
1.92
Median
2.97
1.93
Historical Statistics - 3 Years
Tracking
Up
Down
Information
Sharpe
Downside
Error
Market
Market
Alpha Ratio
Ratio
Beta
Risk
Capture
Capture
Schroders Core Fixed Income
0.53
115.42
95.76
0.51 1.27
0.86
1.11
1.34
Schroders Care Fixed Income Policy
0.00
100.00
100.00
0.00 N/A
0.66
1.00
1.26
Historical Statistics - 5 Years
Tracking
Up
Down
Information
Sharpe
Downside
Error
Market
Market
Alpha Ratio
Ratio
Beta
Risk
Capture
Capture
Schroders Core Fixed Income 0.60 116.11 106.02 0.37 0.97 1.48 1.08 1.07
Schroders Care Fixed Income Policy 0.00 100.00 100.00 0.00 N/A 1.37 1.00 0.98
TI -IE
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Performance Review
Schroders TIPS
As of December 31. 2015
4.40
17.00
3.53
14.00
2.66
11.00
1.79
8.00
T
0.92
5.00
'..
E
E
'..
«9 0.05
�«'
2.00
..
-0.82
®
®
-1.00
-1.69
-4.00
-2.56
-7.00
-3.43
-10.00
-4.30
...
...
J
-13.00
.... ..
Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009
To To To To To To
QTR FYTD
1 YR
2 YR 3 YR
4 YR
5 YR
Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010
Schroders TIPS
-0.58
(34) -0.58 (34)
-0.31 (10)
0.27 (70) -1.83 (35)
-0.12 (77)
1.82 (71)
0 Schroders TIPS
-0.85 (64) 0.77 (71) -4.47 (32) 6.96 (77) 7.69 (73) 7.59 (90)
* Barclays US Treasury US TIPS
-0.64
(47) -0.64 (47)
-1.44 (58)
1.07 (41) -2.27 (67)
-0.03 (53)
2.55 (48)
0 Barclays US Treasury US TIPS
-0.83 (57) 1.59 (42) -6.10 (71) 9.10 (45) 9.87 (32) 8.89 (75)
Median
-0.65
-0.65
-1.39
0.84 -2.07
-0.02
2.54
Median
-0.79 1.53 -5.62 9.02 9.54 9.36
Comparative Performance
_
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr 1 Qtr
Ending
Ending
Ending
Ending
Ending Ending
Sep -2015
Jun -2015
Mar -2015
Dec -2014
Sep -2014 Jun -2014
Schroders TIPS
-0.89 (28)
-0.23 (23)
1.41 (59)
-1.12 (91)
-1.91 (15) 2.96 (78)
Barclays US Treasury US TIPS
-1.15 (58)
-1.06 (52)
1.42 (57)
-0.03 (33)
-2.04 (59) 3.81 (35)
IM U.S. TIPS (SA+CF) Median
-1.12
-1.06
1.46
-0.14
-2.02 3.72
TI -IL
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GRoup.,
Performance Review
Schroders TIPS
As of December 31, 2015
3 Yr Rolling Under/Over Performance - 5 Years
3 Yr Rolling Percentile Ranking - 5 Years
4.30
0 Schroders TIPS
1.82
15.0
4.14
0 Barclays US Treasury US TIPS
m 0.0
5.11
0 Barclays US Treasury US TIPS
2.55
5.17
Over
-2.07
4.86
Median
2.54
5.05
Historical Statistics - 3 Years
Performance
A
rn 10.0
,:,
•
w 25.0
Sharpe
Downside
Error
EL
Market
_ ••
Ratio
Beta
Risk
Capture
5.0
v
50.0
a 0
Schroders TIPS
1.59
69.69
73.24
o0.0
-0.48
0.74
. 75.0 ! i iii Irk R t} �sy.,.
Barclays US Treasury US TIPS
18
sale
041,111',i
G
U)
1.00
4.10
Under
o
-5.0
Performance --
100.0
Up
Down
Information
Sharpe
Downside
-5.0
0..0 5..0 10.0
15.0 3/11 9/11 3/12
9/12 3/13
9/13
3/14
9/14 3/15
12/15
Barclays US Treasury US TIPS (% )
Capture
Total Period
5-25
25 -Median
Median -75
75-95
Over Performance
Under Performance
Count
Count
Count
Count
Earliest Date
X Latest Date
Schroders TIPS
20
0 (0%)
2 (10%)
6 (30%)
12 (60%)
Barclays US Treasury US TIPS
20
0 (0%)
6 (30%)
13 (65%)
1 (5%)
-1.40 2.70
-1.60 ',. e 2.40 '..
-1.80
2.10
«' -2.00 '
-2.20 ® 1.80
1.50
4.16 4.32 4.48 4.64 4.80 4.96 5.12 5.28 3.78 3.99 4.20 4.41 4.62 4.83 5.04 5.25 5.46
Risk (Standard Deviation %) Risk (Standard Deviation %)
Return Standard Return Standard
Deviation Deviation
Schroders TIPS
-1.83
4.30
0 Schroders TIPS
1.82
4.14
0 Barclays US Treasury US TIPS
-2.27
5.11
0 Barclays US Treasury US TIPS
2.55
5.17
Median
-2.07
4.86
Median
2.54
5.05
Historical Statistics - 3 Years
Tracking
Up
Down
Information
Sharpe
Downside
Error
Market
Market
Alpha Ratio
Ratio
Beta
Risk
Capture
Capture
Schroders TIPS
1.59
69.69
73.24
-0.17 0.25
-0.48
0.74
3.13
Barclays US Treasury US TIPS
0.00
100.00
100.00
0.00 N/A
-0.44
1.00
4.10
Historical Statistics - 5 Years
Tracking
Up
Down
Information
Sharpe
Downside
Error
Market
Market
Alpha Ratio
Ratio
Beta
Risk
Capture
Capture
Schroders TIPS 1.77 70.29 69.96 0.01 -0.43 0.50 0.71 2.46
Barclays US Treasury US TIPS 0.00 100.00 100.00 0.00 N/A 0.53 1.00 3.24
40
TI -IE
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Performance Review
PIMCO Div Income Fund (PDIIX)
As of December 31. 2015
8.00
24.00
'..
6.00
20.00
16.00
4.00
12.00
2.00
0
8.00
0.00
4.00
0
2.00
0.00
-4.00
4.00
-6.00
-8.00-12.00
-8.00
-16.00 I.
-10.00
J
Oct -2014 Oct -2013 Oct -2012 Oct -2011
Oct -2010 Oct -2009
To To To To
To To
Sep- Sep- Sep- Sep-
Sep- Sep -
QTR
FYTD
1 YR
2 YR 3 YR
4 YR
5 YR
2015 2014 2013 2012
2011 2010
PIMCO Div Income Fund (PDIIX)
0.87 (2)
0.87 (2)
1.25 (1)
2.10 (17) 1.08 (20)
4.39 (2)
N/A
0 PIMCO Div Income Fund (PDIIX)
1.10 (27) 6.09 (17) 0.35 (25) 6.25 (3)
N/A N/A
* BofA Merrill Lynch Global Brd Mkt
-0.96 (56)
-0.96 (56)
-2.75 (37)
-0.75 (48) -1.39 (51)
-0.01 (73)
1.16 (55)
0 BofA Merrill Lynch Global Brd Mkt
2.44 (34) 1.45 (81) 2.65 (64) 5.10 (88)
4.18 (9) 6.22 (84)
Median
-0.82
-0.82
-3.71
-0.96 -1.37
1.01
1.36
Median
3.75 3.53 1.52 7.19
1.61 7.82
Comparative Performance
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
Ending
Ending
Ending
Ending
Ending
Ending
Sep -2015
Jun -2015
Mar -2015
Dec -2014
Sep -2014
Jun -2014
PIMCO Div Income Fund (PDIIX)
-2.59 (79)
-0.30 (11)
3.36 (1)
-1.48 (71)
-2.12 (57)
4.18 (2)
BofA Merrill Lynch Global Brd Mkt
1.16 (5)
-1.26 (28)
-1.70 (87)
-0.64 (39)
-2.84 (74)
2.41 (49)
IM Global Fixed Income (MF) Median
-0.35
-1.91
0.08
-1.04
-1.64
2.39
TI -IE
41BO�GDAHN
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GRoup.,
Performance Review
PIMCO Div Income Fund (PDIIX)
As of December 31. 2015
Over Performance Earliest Date Latest Date
1.64
0.82
0.00
«9 -0.82
v
K
-1.64
-2.46
3.20 3.52 3.84 4.16 4.48 4.80
Risk (Standard Deviation %)
Return
PIMCO Div Income Fund (PDIIX) 8 8(100% 0 (0%) 0(0%) 0(0%)
* BofA Merrill Lynch Global Brd Mkt 20 0(0%) 1 (5%) 16(80%) 3(15%)
1.47
1.40
0 1.33
«9 1.26
v
K
1.19
1.12
5.12 5.44 5.76 3.60 3.75 3.90
Standard
Deviation
4.05 4.20 4.35
Risk (Standard Deviation %)
Return
4.50 4.65 4.80
Standard
Deviation
PIMCO Div Income Fund (PDIIX)
1.08
5.37
0 PIMCO Div Income Fund (PDIIX)
N/A
N/A
* BofA Merrill Lynch Global Brd Mkt
-1.39
3.74
0 BofA Merrill Lynch Global Brd Mkt
1.16
3.84
Median
-1.37
4.24
Median
1.36
4.64
Historical Statistics - 3 Years
Tracking
Up
Down
Information
Sharpe
Downside
Error
Market
Market
Alpha Ratio
Ratio
Beta
Risk
Capture
Capture
PIMCO Div Income Fund (PDIIX)
4.33
115.29
68.56
2.39 0.59
0.22
0.86
3.91
BofA Merrill Lynch Global Brd Mkt
0.00
100.00
100.00
0.00 N/A
-0.37
1.00
3.02
Historical Statistics - 5 Years
Tracking
Up
Market
Down
Market
Information
Alpha
Sharpe
Beta
Downside
Error
Capture
Capture
Ratio
Ratio
Risk
PIMCO Div Income Fund (PDIIX) N/A N/A N/A N/A N/A N/A N/A N/A
BofA Merrill Lynch Global Brd Mkt 0.00 100.00 100.00 0.00 N/A 0.31 1.00 2.65
TI -IE
42BO�GDAHN
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8.00
6.00
4.00
2.00
0.00
v
-2.00
-4.00
-6.00
-8.00
-10.00
QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR
Templeton Global Fund (FBNRX) 2.29 (1) 2.29 (1) -3.91 (54) -1.05 (54) 0.09 (33) 3.88 (8) N/A
* BofA Merrill Lynch Global Brd Mkt -0.96 (56) -0.96 (56) -2.75 (37) -0.75 (48) -1.39 (51) -0.01 (73) 1.16 (55)
20.00
16.00
12.00
8.00
4.00
E
r
0.00
4.00
8.00
-12.00
-16.00
Performance Review
Templeton Global Fund (FBNRX)
As of December 31. 2015
Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009
To To To To To To
Sep- Sep- Sep- Sep- Sep- Sep -
2015 2014 2013 2012 2011 2010
Templeton Global Fund (FBNRX) 7.57 (90) 6.35 (12) 3.52 (3) 3.25 (5) N/A N/A
* BofA Merrill Lynch Global Brd Mkt 2.44 (34) 1.45 (81) 2.65 (64) 5.10 (88) 4.18 (9) 6.22 (84)
Median -0.82
-0.82 -3.71
-0.96 -1.37 1.01
1.36 Median
3.75 3.53 1.52
7.19 1.61 7.82
Comparative Performance
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
1 Qtr
Ending
Ending
Ending
Ending
Ending
Ending
Sep -2015
Jun -2015
Mar -2015
Dec -2014
Sep -2014
Jun -2014
Templeton Global Fund (FBNRX)
-6.08 (100)
-0.24 (10)
0.26 (45)
-1.60 (73)
0.08 (15)
2.68 (40)
BofA Merrill Lynch Global Brd Mkt
1.16 (5)
-1.26 (28)
-1.70 (87)
-0.64 (39)
-2.84 (74)
2.41 (49)
IM Global Fixed Income (MF) Median
-0.35
-1.91
0.08
-1.04
-1.64
2.39
TI -IL
43BO�GDAHN
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Performance Review
Templeton Global Fund (FBNRX)
As of December 31. 2015
Over Performance Earliest Date Latest Date
0.50
0.00
-0.50
«9 -1.00
v
K
1.50
-2.00
3.20 3.60 4.00 4.40 4.80 5.20
Risk (Standard Deviation %)
Return
Templeton Global Fund (FBNRX) 8 5(63%) 3(38%) 0(0%) 0(0%)
* BofA Merrill Lynch Global Brd Mkt 20 0(0%) 1 (5%) 16(80%) 3(15%)
1.47
1.40
0 1.33
«9 1.26
v
1.19
1.12
5.60 6.00 6.40 3.60 3.75 3.90
Standard
Deviation
4.05 4.20 4.35
Risk (Standard Deviation %)
Return
4.50 4.65 4.80
Standard
Deviation
Templeton Global Fund (FBNRX)
0.09
5.70
0 Templeton Global Fund (FBNRX)
N/A
N/A
* BofA Merrill Lynch Global Brd Mkt
-1.39
3.74
0 BofA Merrill Lynch Global Brd Mkt
1.16
3.84
Median
-1.37
4.24
Median
1.36
4.64
Historical Statistics - 3 Years
Tracking
Up
Down
Information
Sharpe
Downside
Error
Market
Market
Alpha Ratio
Ratio
Beta
Risk
Capture
Capture
Templeton Global Fund (FBNRX)
5.96
35.65
23.35
0.78 0.27
0.04
0.39
4.16
BofA Merrill Lynch Global Brd Mkt
0.00
100.00
100.00
0.00 N/A
-0.37
1.00
3.02
Historical Statistics - 5 Years
Tracking
Up
Market
Down
Market
Information
Alpha
Sharpe
Beta
Downside
Error
Capture
Capture
Ratio
Ratio
Risk
Templeton Global Fund (FBNRX) N/A N/A N/A N/A N/A N/A N/A N/A
BofA Merrill Lynch Global Brd Mkt 0.00 100.00 100.00 0.00 N/A 0.31 1.00 2.65
TkW
44BO�GDAHN
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GRoup.,
Private Equity Fund Overview
Crescent Direct Lending Levered Fund
As of December 31, 2015
Type of Fund: Direct Vintage Year: 2014
Strategy Type: Other Management Fee: 1.35% of invested equity capital
Size of Fund: - Preferred Return: 7.00%
Inception: 09/05/2014 General Partner: CDL Levered General Partner, Ltd.
Final Close: 9/5/2015 expected Number of Funds:
Investment Strategy: High Current income while focusing on preservation of capital through investment primarily in senior secured loans of private U.S. lower -middle -market companies. The Fund will seek to
enhance returns on its investments through the use of leverage. Fund size is $250 million/ $500 million with leverage.
Capital Committed:
$4,000,000
$3,900,000.0
Capital Invested:
$2,730,140
Management Fees:
$934
Expenses:
$69,652
$3,120,000.0
Interest:
-
Total Contributions:
$2,730,140
$2,340,000.0
Remaining Capital Commitment:
$2,154,094
Total Distributions:
$907,783
$1,560,000.0
Market Value:
$1,885,744
Inception Date:
10/01/2014
$780,000.0
Inception IRR:
3.8
NPI:
1.0
$0.0
($780,000.0)
10/14 1/15 4/15 7/15 10/15 1/16
Net Asset Value ' Distribution Contributions
TkW
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Private Equity Fund Overview
LBC Credit Partners III
As of December 31, 2015
Type of Fund:
Other
Vintage Year:
2014
Strategy Type:
Other
Management Fee:
1.50%
Size of Fund:
839,030,000
Preferred Return:
8.00%
Inception:
10/01/2014
General Partner:
LBC Credit Funding III L.P.
Final Close:
5/23/2014
Number of Funds:
$884,674
Investment Strategy:
Provider of middle market financing including senior term, unitranche, second lien, junior secured, and mezzanine
debt; and equity co -investments to companies with EBITDA generally.
Capital Committed:
$4,000,000
$4,550,000.0
Capital Invested:
$3,300,000
Management Fees:
$194,973
Expenses:
$176,469
$3,640,000.0
Interest:
$100,219
Total Contributions:
$3,400,219
$2,730,000.0
Remaining Capital Commitment:
$884,674
Total Distributions:
$1,140,670
$1,820,000.0
Market Value:
$2,573,448
Inception Date:
06/23/2014
$910,000.0
Inception IRR:
11.4
NPI:
1.1
$0.0
($910,000.0)
6/14 9/14 12/14 3/15 6/15 9/15 12/15
Net Asset Value j ' Distribution 0 Contributions
TkW
46BO�GDAHN
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Historical Benchmark Hybrid Compositions
Total Fund
As of December 31, 2015
Allocation Mandate
Weight (%)
Allocation Mandate
Jan -1979
Russell 1000 Growth Index
Jan -1973
S&P 500 Index
65.00
Barclays Intermediate U.S. Gov/Credit Index
3 Year U.S. Treasury Note
30.00
5.00
Citigroup 3 Month T -Bill Index
5.00
Jul -2007
Barclays Intermediate Aggregate Index
Jul -2007
Citigroup 3 Month T -Bill Index
5.00
Oct -2007
Barclays Intermediate Aggregate Index
35.00
Barclays Intermediate U.S. Gov/Credit Index
MSCI EAFE Index
10.00
Barclays U.S. Treasury: U.S. TIPS Index
Russell 3000 Index
50.00
Oct -2007
Russell 3000 Value Index
20.00
Russell 1000 Growth Index
20.00
S&P 500 Index
10.00
Barclays Intermediate Aggregate Index
35.00
Barclays U.S. Treasury: U.S. TIPS Index
5.00
MSCI EAFE Index
10.00
Jun -2009
Russell 3000 Index
50.00
Barclays Intermediate Aggregate Index
25.00
Barclays U.S. TIPS 1-10 Year
5.00
MSCI EAFE Index
10.00
Citigroup 3 Month T -Bill Index
5.00
NCREIF Fund Index -Open End Diversified Core (EW)
5.00
Feb -2010
Russell 3000 Index 45.00
Barclays Intermediate Aggregate Index 25.00
Barclays U.S. TIPS 1-10 Year 5.00
MSCI AC World ex USA 15.00
NCREIF Fund Index -Open End Diversified Core (EW) 10.00
Mar -2010
Russell 3000 Index
45.00
Barclays Intermediate Aggregate Index
25.00
Barclays U.S. Treasury: U.S. TIPS Index
5.00
MSCI AC World ex USA
15.00
NCREIF Fund Index -Open End Diversified Core (EW)
10.00
Jun -2009
Barclays Intermediate Aggregate Index
Barclays U.S. TIPS 1-10 Year
Feb -2010
Barclays Intermediate Aggregate Index
Barclays U.S. Treasury: U.S. TIPS Index
100.00
100.00
87.50
12.50
83.33
16.67
83.33
16.67
Allocation Mandate Weight (%)
Jan -1973
Barclays U.S. Gov't/Credit 100.00
Jun -2007
Barclays Intermediate Aggregate Index
TI -IL
47BO�GDAHN
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Total Equity Policy'
Allocation Mandate
Weight (%)
Jan -192&
S&P 500 Index
100.00
Jul -2007
Russell 3000 Index
85.00
MSCI EAFE Index
15.00
Oct -2007
40.00
MSCI EAFE Index
15.00
S&P 500 Index
15.00
Russell 3000 Value Index
35.00
Russell 1000 Growth Index
35.00
Jun -2009
Russell 3000 Index
83.33
MSCI EAFE Index
16.67
Feb -2010
Russell 3000 Index
75.00
MSCI AC World ex USA
25.00
48
Total Domestic Equ
Allocation Mandate
Historical Benchmark Hybrid Compositions
Total Fund
As of December 31, 2015
Weight (%)
Jan -192&
S&P 500 Index
100.00
Jul -2007
Russell 3000 Index
100.00
Oct -2007
Russell 3000 Value Index
40.00
Russell 1000 Growth Index
40.00
S&P 500 Index
20.00
Jun -2009
Russell 3000 Index
100.00
Total International Equity Policy
Allocation Mandate Weight (%)
Jan -1970
MSCI EAFE Index 100.00
Feb -2010
MSCI AC World ex USA 100.00
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Boynton Beach Firefighters' Retirement System
Fee Analysis
As of December 31, 2015
Vanguard 500 Index Signal (VFIAX)
0.05
10,404,946
5,202
0.05 % of Assets
DSM Large Cap Growth
0.86
10,993,407
94,951
1.00 % of First $5 M
0.75 % of Next $15 M
0.63 % of Next $80 M
0.50 % Thereafter
Anchor All Cap Value Equity
0.57
11,062,836
62,814
0.75 % of First $3 M
0.50 % Thereafter
Vanguard Mid -Cap Index Fund (VMCIX)
0.08
12,746,685
10,197
0.08 % of Assets
Total Domestic Equity
0.38
45,207,873
173,165
WCM International Growth Fund (WCMIX)
1.04
6,667,487
69,342
1.04 % of Assets
American Funds Euro Pacific Gr R6 (RERGX)
0.49
5,293,013
25,936
0.49 % of Assets
Total International , Equity
0.80
11,960,500
96,278
Schroders Core Fixed Income
0.38
8,427,408
31,603
0.38 % of Assets
Schroders TIPS
0.00
1,141,173
-
0.00 % of Assets
Total Domestic Fixed Income
0.33
9,568,581
31,603
PIMCO Diversified Income Fund (PDIIX)
0.75
3,880,741
29,106
0.75 % of Assets
Templeton Global Bond Fund (FBNRX)
0.51
3,606,329
18,392
0.51 % of Assets
Total Global Fixed Income?
0.63
7,487,070
47,498
LBC Credit Partners III
1.75
2,573,448
45,035
1.75 % of Assets
Crescent Direct Lending Levered Fund
1.35
1,885,744
25,458
1.35 % of Assets
Total Non -Core Fixed Income
1.58
4,459,192
70,493
ASB RE
1.25
2,992,585
37,407
1.25 % of Assets
Intercontinental
1.10
5,269,348
57,963
1.10 % of Assets
Total Real Estate
1.15
8,261,933
95,370
Mutual Fund Cash
14,150
-
Receipt & Disbursement
274,730
Total Cash Composite
288,880
-
Total Fund
0.59
8752345030
5135406
TkW
49BO�GDAHN
r z
GRoup.,
• Returns prior to 9/30/2009 are gross of fees.
Disclosures
Total Fund
As of December 31, 2015
TI -IE
50BO�GDAHN
Q—,&O GRoup.,
Department: Performance Measurement
Direct Phone: 863-904-0856
Department: (bnsultant Team
s,
Title: Internal Oonsulta
Direct Phone: 863-5941425
Email: Mishab(a)bogdah
51
Department:
I1111=W .T.7in
Address.
Service Team Group Email:
The Bogdahn Group
Your Service Team
Contact Information
(bnsultant Team
1065I!111E:11- 3
4901 Vineland Ibad, Suite 600
Orlando, Florida 32811
Sarvi ceTeam003(a�bogdah ngrou p. com
r� its
GDAHI'
ou
Report Statistics
Definitions and Descriptions
Active Return - Arithmetic difference between the manager's performance and the designated benchmark return over a specified time period.
Alpha - A measure of the difference between a portfolio's actual performance and its expected return based on its level of risk as determined by beta. It determines the portfolio's
non -systemic return, or its historical performance not explained by movements of the market.
Beta - A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of the portfolio's systematic risk.
Consistency - The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. Higher consistency indicates the manager has contributed more to the
product's performance.
Down Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of negative returns. A lower value indicates better product performance
Downside Risk - A measure similar to standard deviation that utilizes only the negative movements of the return series. It is calculated by taking the standard deviation of the negative
quarterly set of returns. A higher factor is indicative of a riskier product.
Excess Return Arithmetic difference between the manager's performance and the risk-free return over a specified time period.
Excess Risk A measure of the standard deviation of a portfolio's performance relative to the risk free return.
Information Ratio This calculates the value-added contribution of the manager and is derived by dividing the active rate of return of the portfolio by the tracking error. The higher the
Information Ratio, the more the manager has added value to the portfolio.
R -Squared - The percentage of a portfolio's performance that can be explained by the behavior of the appropriate benchmark. A high R -Squared means the portfolio's performance has
historically moved in the same direction as the appropriate benchmark.
Return - Compounded rate of return for the period.
Sharpe Ratio - Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is an absolute rate of return per unit of risk. A
higher value demonstrates better historical risk-adjusted performance.
Standard Deviation - A statistical measure of the range of a portfolio's performance. It represents the variability of returns around the average return over a specified time period.
Tracking Error - This is a measure of the standard deviation of a portfolio's returns in relation to the performance of its designated market benchmark.
Treynor Ratio - Similar to Sharpe ratio but utilizes beta rather than excess risk as determined by standard deviation. It is calculated by taking the excess rate of return above the risk free
rate divided by beta to derive the absolute rate of return per unit of risk. A higher value indicates a product has achieved better historical risk-adjusted performance.
Up Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of positive returns. A higher value indicates better product performance.
52
Disclosures
The Bogdahn Group compiled this report for the sole use of the client for which it was prepared. The Bogdahn Group is responsible for evaluating the performance results of the Total Fund along with the
investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. The Bogdahn group uses the results from this evaluation to make observations
and recommendations to the client.
The Bogdahn Group uses time -weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from
custodians. The Bogdahn Group analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides The Bogdahn Group with a
reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides The Bogdahn Group with a practical foundation
for our observations and recommendations. Nothing came to our attention that would cause The Bogdahn Group to believe that the information presented is significantly misstated.
This performance report is based on data obtained by the client's custodian(s), investment fund administrator, or other sources believed to be reliable. While these sources are believed to be reliable, the data
providers are responsible for the accuracy and completeness of their statements. Clients are encouraged to compare the records of their custodian(s) to ensure this report fairly and accurately reflects their various
asset positions.
The strategies listed may not be suitable for all investors. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. Past performance is not an indication of future
performance. Any information contained in this report is for informational purposes only and should not be construed to be an offer to buy or sell any securities, investment consulting, or investment management
services.
Additional information included in this document may contain data provided by from index databases, public economic sources and the managers themselves.
This document may contain data provided by Barclays. Barclays Index data provided by way of Barclays Live.
This document may contain data provided by Standard and Poor's. Nothing contained within any document, advertisement or presentation from S&P Indices constitutes an offer of services in jurisdictions where
S&P Indices does not have the necessary licenses. All information provided by S&P Indices is impersonal and is not tailored to the needs of any person, entity or group of persons. Any returns or performance
provided within any document is provided for illustrative purposes only and does not demonstrate actual performance. Past performance is not a guarantee of future investment results.
This document may contain data provided by MSCI, Inc. Copyright MSCI, 2012. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or
redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an "as is" basis and the user of this information assumes the entire
risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information makes any
express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all
warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non -infringement, merchantability and fitness fora particular purpose) with respect to this information.
Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect,
special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages.
This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related
thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment
Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof.
This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is
proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are
responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not
guarantee of future results.
53
Kumowns
Orlando
4901 Vineland Road, Suite 600
Orlando, Florida 32811
866.240.7932
Chicago I Cleveland I Detroit I Milwaukee I Pittsburgh Tulsa
CITY OF BOYNTON BEACH
FIREFIGHTERS PENSION PLAN
MEMORANDUM ON REVIEWOF
INTERNAL CONTROL STRUCTURE
September 30, 2015
DAVIDSON, JAM I ESON & CRI STI NI, P.L.
Certified Public Accountants
Davidson, Jamieson & Cristini, P.L.
Certified Public Accountants
1956 Bayshore Boulevard
Dunedin, Florida 34698-2503
(727)734-5437 or 736-0771
FAX (727) 733-3487
Members of the Firm
John N. Datidson, CPA, CVA
Harry B. Jamieson, CPA
Richard A. Cristini, CPA, CPPT, CGFM
Jeanine L. Bittinger, CPA, CPPT
January 14, 2016
Board of Trustees
City of Boynton Beach Firefighters'
Pension Plan
Boynton Beach, Florida
M ember
American Instituteof
Certified Public Accountants
Florida Institute of
Certified Public Accountants
In planning and performing our audit of the fi nancial statements of the City of Boynton Beach
Fi ref i ghters' Pensi on PI an (PI an) as of and for the year ended September 30, 2015, i n accordance
wi th audi ti ng standards general I y accepted i n the U ni ted States of A meri ca, we consi dered the
PI an-, i nternal control over f i nanci al reporti ng (i nternal control) as a basi s for desi gni ng our
audi ti ng procedures for the purpose of expressi ng our opi ni on on Chef i nanci al statements, but not
for the purpose of expressing an opinion on the effectiveness of the Plan's internal control.
Accordi ngly, we do not express an opi pion on the effectiveness of the Plan-, i nternal control.
Our consideration of internal control was for the limited purpose described in the preceding
paragraph and was not designed to identify al I deficiencies in internal control that might be
si gni f i cant def i ci enci es or material weaknesses and, therefore, there can be no assurance that al I
such deficiencies have been identified. However, as discussed below, we identified certain
def i ci enci es i n i nternal control that we consi der to be si gni f i cant def i ci enci es.
B of gcljf odz j joLf sobrrrdpouspnf yjt Lt x i f o d f of t ho ps pqf sbgpo pgb dpoLsprrepf t opu
brrpx n bobhf o f o ps f n grpzf f t- j o d f opsn bmdpvst f pg of sg)sn j oh d f j s bt t hof e
giodgpot -Lpgsf\4ou-psefLfduboedpssfdunjttLbLfnfoLt pobynfrecbtjt/ BnbLfsjbm
x f bl of t jt bef gcljf odz-psdpn cjobgpo pgef gcljf o4 t jojoLf sobrdpoLspr�tvdi d bud f sf
j t b sf bt pobcrfi qpt tj cj 0z d bub n bLf sj bnm j t t LbLf n f oupgd f f oo u :t gobo4 bnh LbLf n f opt
xjmmpucf qsfv&foLfe-psefLfdLfeboedpssfdLfepobynfmcbtjt/Xf ejeopujefoyg:boz
of g4f o4f t jo joLf sobrrrdpoLspnu bux f dpotjof s Lp cf n bLf sjbnx f bl of ttf t/
1
A si gni f i cant deficiency is a deficiency, or a combination of def i ci end es, in internal control that is
less than severe than a material weakness, yet important enough to merit attention by those
charged with governance (the Board of Trustees). The auditor's report and related bridge letter
issued by Salem Trust Company (Salem) for the year ended September 30, 2015 provide that
Sal em's sev i ce organi zati on system and the sui tabi I i ty of i is desi gn and operati ng eff ecti veness of
control s were operati ng as i ntended.
Ciirrmt Ypar
1. SSA E N o. 16, SOC 1, Type 2 Report on a D escri pti on of a
Service Organization's System and the Sui tabi I i ty of the Design
and Operati ng Effecti veness of Control s rel aced to Sal em.
Prior Year
1. SSA E No. 16, SOC 1, Type 2 Report on a Description of a
Service Organization's System and the Sui tabi I i ty of the Design
and Operating Effectiveness of Controls related to USF Affiliate
Servi ces, I nc. Aff i I i ate Fi duci ary and I nvestment Support Sevi ces
— I ncl udi ng Sal em Trust Company (Sal em)
Current Year
The SSA E No. 16, SOC 1, Type 2 report dated August 31, 2015 Provided the fol I ow i ng opinion
on the U SF Aff i I i ate Services, Inc. Aff i I i ate Fiduciary and Investment Support Services (Sal em
Trust Company)-
Auditor's
ompany):
Auditor's Opinion
In our opi ni on, i n al I material respects, based on the cri Leri a descri be i n U SFAS assertion
rel aced to i is system for processi ng transacti ons for user esti ti es of i is i nsti tuti on' s cl i eats.
a. The descri pti on fai rl y presents the system that was desi gned and
i mpl emented throughout the peri od Jul y 1, 2014 to June 30, 2015.
b. The control s rel aced to the control obj ecti ves staked i n the descri pti on were
suitably designed to provide reasonable assurance that the control
obj ecti ves woul d be achi eved i f the control s operated eff ecti vel y
throughout the peri od Jul y 1, 2015 to June 30, 2015, and user esti ti es
appl i ed the compl ementary user esti ty control s contempl aked i n the desi gn
of USFAS control s throughout the peri od Jul y 1, 2014 to June 30, 2015.
C. The controls tested, which together with the complementary user entity
control s referred to i n the scope paragraph of thi s report, i f operati ng
effecti vel y were those necessary to provi de reasonabl a assurance that the
control objectives stated i n the description were achieved, operated
effectively throughout the period July 1, 2014 to June 30, 2015.
The audi for i denti f i ed one f i ndi ng whi ch was cl eared to the sati sfacti on of the audi for i n arri vi ng
at the above opinion. (copy of finding enclosed).
We repeat our prior year recommendation regarding the Board's responsi bi I i ty to monitor its
Compl ementary User Enti ty Control s (copy encl osed) when usi ng the Sal em Trust Company's
servi ces.
A copy of the U SFAS U SF Aff i I i ate Sery i ces bri dge I etter i s encl osed.
K
Prior Year
The SSAE No. 16, SOC 1, Type 2 report dated February 2, 2015 provided an adverse report on
the eff ecti veness of the Servi ce Organi zati on` s system of i nternal control pol i ci es and procedures.
We recommended that the Board conti nue to moni for the correcti on of the f i ndi ngs i n the report.
We further recommended that the complementary user entity controls at the Plan level (copy
enclosed) should be documented and enhanced as necessary. Listing the exceptions and the
response of the service organization's management alone is not sufficient. The Board must
document its own concl usi ons.
M
FINDING —FEE PROCESSING
CONTROL OBJECTIVE 11— Controls provide reasonable assurance fees are calculated in
accordance with the agreed upon fee schedule and processed ti mel y and accurately.
Controls Tested
Tests Performed
Test Results
Fees are cal cul aced by the
1. Sel ected a sampl a of
One i nstance was i denti f i ed
SunGard system based upon
accounts and determined
i n a sampl a of 25 accounts
parameters set up by the
whether the fee schedul a
where the fee per the trust
account administrator and
i ndi cated on the Trust
accounting system did not
agreed to by the d i ent.
Accounting System
agree to the terms of the
agreed to documentation
governing instrument
agreed to by the d i ent.
si gned by the customer.
M anagement's Response:
The client account was part of
approxi matel y 40 accounts
purchased shortly before the
beginning of the SSA E 16
period. The incorrect fee was
transmitted and set up on the
trust system. The fee was
corrected on the trust system and
on the quarterly i nvoi ce and no
other errors were discovered.
Management reminded personnel
of the i mportance of revi edvi ng
fees duri ng the i ni ti al and annual
administrative account revi edv
process.
Complementary User Entity Controls
°
Instructions and information provided to Salem are in accordance with the
provi si ons of the servicing agreement, trust agreement, or other appl i cabl e
governi ng agreements or documents between Sal em and the PI an.
° Ti mel y wri tten noti f i cati on of changes to Sal em, i is obj ecti ves, parti ci pants, and
investment managers is adequately communicated thereto.
° Timely written noti f i cati on of changes i n the desi gnati on of individual sauthorized
to instruct Salem regarding activities, on behalf of the Plan, is adequately
communicated thereto.
° Ti mel y revi ejv of reports provided by Salem of trust account balances and related
activities is performed by the Plan and written noti ce of discrepancies is provided
to Sal em.
°
Timely written notification of changes in related parties for purposes of
identifying parties -i n -i nterest transactions i s adequatel y communicated to Salem.
Ull�:B-'R-Ac
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K Ar Thign mJ 0�-pex;i of curitruls"
Dur Repwi KnOW
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Atre° rsticln Ftlyrag
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6l 1, Wu fihroup�p'j unc 30. 20'.� 5., Foz Lh,c pcv-,od Lorn_ j ul'e I,
2LIA 5 thyir r,is ','kp k--,( J)
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ot" our k,::,uMcdec and VS.,
k Msymoul: &"Jr I'll't de""gil i2riplitalvinuon tray' impnixtrumn)l
pvr�rvduro�. Wuhc We thm dw descApOw of rhme CMM Lruk in L! Ic U,Su I lcp� .wt
c c 1.1 io C.
L! 1s a n R� r rzwi 1Bc- r 1: :.1" LIQ up u .). I b n S. c" -j q., t b tj c: 1;p �,ip i o. :i Tk! e L L Ii �i, i -Lc c: i ':'s si c M cuss a n 6
i,u i.n thc,.
nPeMEMn af
We XV IMIL MWICO Of MY c!'Dl
C-ffe"novene"'s pcir.,rVc d'it SpCCifiCid CDOAVOI, 013jCCLINCS,
POW Mvw awq 050 ennuak Aw USM am &AWMd, "with rerulin rc.q',,,,flru6 af die
rivjpuft thlCWTIOMMIKY USU C-1 fi r7)' 0101 Mks CUM',(i i 11 a'TNV ruccli I: X1'S1r.`,:`5's 16"
tt'pr.-"'f?.j car'ucc;l"s Filum rdwap bg e"Mmu & Okynahn an ass',cmr1acrit of, dic 'azror.'gth Rif
diou can L.S.
vo"':t qku-,rx-m-;2' i'ucl :"I-" ars cull -au cx1r o [71'7lC� ,
jAnnes F. Duca Ig.
Pry i Lk- i ,:i I a L C, hi 0 f '' x 0 c 1i �j v 0 F1,
N-I'affiew J. Bowmmi
A VWO [AnSiML wind Manaper WOrleraftat".3,ii.43
WU wP * " -"I 4YW
I "A 501, ,P'_ 00 '— Y*AWNY 1*!j 1 M!"DWO MKIMS -44 aEVOWU =r:, .....f
Wewi I I review the status of these comments duri ng our next audit engagement. We haveal ready
discussed many of these comments and suggesti ons wi th Plan personnel, and we wi I I be pleased
to discuss them in further detail at your convenience, to perform any additional study of these
matters, or to assist you in implementing the recommendations.
Thi s communi cati on i s i ntended sol el y for the i nformati on and use of management and i s not
i ntended to be and shoul d not be used by anyone other than these speci f i ed part es.
DAVIDSON, JAMI ESON & CRI STI NI, P.L.
CITY OF BOYNTON BEACH
FI REFI GHTERS' PENS ON PLAN
FINANCIAL STATEMENTS
September 30, 2015 and 2014
DAVI DSON, JAM I ESON & CRI STI NI, P.L.
Certified Public Accountants
CITY OF BOYNTON BEACH
FIREFIGHTERS PENSION PLAN
TABLE OF CONTENTS
PAGE
INDEPENDENT AUDITOR'S REPORT ................................. 1
FI NANCIAL STATEM ENTS
STATEMENTS OF FIDUCIARY NET POSITION ................... 3
STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION ...... 4
NOTES TO FINANCIAL STATEMENTS .......................... 5
REQUI RED SUPPLEM ENTAL I NFORMATI ON
SCHEDULE OF CHANGES IN THE NET PENSION
LIABILITY AND RELATED RATIOS ...................... 24
SCHEDULE OF CONTRIBUTIONS ................................... 25
NOTESTO SCHEDULE OF CONTRIBUTIONS ......................... 26
SCHEDULEOF INVESTMENT RETURNS ............................. 27
ADDI TI ONAL I NFORM ATI ON
SCH EDU LES OF I NVESTM ENT AN D ADM I N I STRATIVE EX PENSES ..... 28
Davidson, Jamieson & Cristini, P.L.
Certified Public Accountants
1956 Bayshore Boulevard
Dunedin, Florida 34698-2503
(727)734-5437 or 736-0771
FAX (727) 733-3487
Members of the Firm
John N. Davidson, CPA, CVA
Harry B. Jamieson, CPA
Richard A. Cristini, CPA, CPPT, CGFM
Jeanine L. Bittinger, CPA, CPPT
The Board of Trustees
Ci ty of Boynton Beach Fi ref i ghters' Pend on R an
Boynton Beach, Florida
INDEPENDENT AUDI TOR'S REPORT
Report on Financial Statements
M ember
American Instituteof
Certified Public Accountants
Florida Institute of
Certified Public Accountants
We have audi ted the accompanyi ng f i nanci al statements of Ci ty of Boynton Beach Fi ref i ghters'
Pend on R an (PI an), whi ch compri se the statements of f i duci ary net pod ti on as of September 30,
2015 and 2014, and the rel aced statements of changes i n f i duci ary net pod ti on for the years then
ended, and the rel aced notes to the f i nanci al statements.
M anagement'sResponsibility for the Financial Statements
The R an' s Board of Trustees i s respond bl a for the preparati on and fai r presentati on of these
f i nand a1 statements i n accordance wi th accounti ng pri nd pl es general I y accepted i n the U ni ted
States of Ameri ca; thi s i nd udes the desi gn, i mpl ementati on, and mai ntenance of i nternal control
rel evant to the preparati on and f ai r presentati on of f i nanci al statements that are f ree f rom materi al
mi sstatement.
Auditor's Responsi bi I ity
Our respond bi I i ty i s to express an opi ni on on these f i nand a1 statements based on our audi ts. We
conducted our audi is i n accordancewi th audi ti ng standards general I y accepted i n the U ni ted States
of Ameri ca. Those standards requi re that we pl an and perform the audi t to obtai n reasonabl e
assurance about whether the f i nanci al statements are f ree of materi a1 mi sstatement.
An audi t i nvol ves perf ormi ng procedures to obtai n evi dente about the amounts and di scl osures i n
the f i nanci al statements. The procedures sel ected depend on the audi tor' sj udgment, i ncl udi ng the
assessment of the ri sks of materi al mi sstatement of the f i nand a1 statements, whether due to f raud
or error, i n maki ng those ri sk assessments, the audi for consi ders i nternal control rel evant to the
R an' s preparati on and f ai r presentati on of the f i nanci al statements, i n order to desi gn audi t
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opi ni on on the effecti veness of the R an' s i nternal control. Accordi ngl y, we express no such
opi ni on. An audi t al so i nd udes eval uati ng the appropri ateness of accounti ng pol i ci es used and the
reasonabl eness of si gni f i cant accounti ng esti mates made by management, as wel I as eval uati ng the
overal I presentati on of the f i nanci al statements.
We bel i eve that the audi t evi dencewe have obtai ned i s suf f i ci ent and appropri ate to provi de a bad s
for our audit opi ni on.
The Board of Trustees
Ci ty of Boynton Beach Fi ref i ghters' Pend on PI an
Boynton Beach, Florida
Opinion
I n our opi ni on, the f i nanci al statements ref erred to above present f ai rl y, i n al I materi a1 respects, the
f i duci ary net pod ti on of the Ci ty of Boynton Beach Fi ref i ghters' Pend on PI an as of September 30,
2015 and 2014, and the changes i n f i duci ary net pod ti on for the years the ended i n accordancewi th
accounti ng pri nd pl es general I y accepted i n the U ni ted States of Ameri ca.
Other M atters
Requi red &jppl ementary 1 nformati on
Our audits were made f or the purpose of f ormi ng an opi ni on on the bad c f i nand a1 statements taken
as awhol e. The accompanyi ng required supplementary information on pages 24 through 27 of the
City of Boynton Beach Fi ref i ghters' Pension Ran is required by Governmental Accounting
Standards Board Statement No. 67 and i s not a requi red part of the bad c f i nanci al statements. The
addi ti onal i of ormati on on page 28 i s presented for purposes of addi ti onal anal ysi s and i s a1 so not
a requi red part of the bad c f i nanci al statements. Such i nformati on has been subj ected to the
audi ti ng procedures appl i ed i n the audi t of the bad c f i nand al statements and certai n addi ti onal
procedures, including comparing and reconciI i ng such information directly to the underlying
accounti ng and other records used to prepare the bad c f i nand al statements or to the bad c f i nanci al
statements themsel ves, and other addi ti onal procedures i n accordance wi th audi ti ng standards
general I y accepted in the U ni ted States of America. In our opinion, the above i of ormati on i s f ai rl y
stated, i n a1 I materi al respects, i n rel ati on to the bad c f i nanci al statements as a whol e.
Other Information
Management has omitted the Management's Discussion and Analysis that accounting principles
general I y accepted i n the U ni ted States of America requi re to be presented to supplement the basi c
financial statements. Such missing information, although not a part of the basic financial
statements, i s requi red by the Governmental Accounti ng Standards Board, who consi ders i t to be
an essenti al part of f i nanci al reporti ng for pl ad ng the bad c f i nand a1 statements i n an appropri ate
operati onal, economi c, or hi stori cal context. Our opi ni on on the bad c f i nanci al statements i s not
affected by this missing information.
January 14, 2016
K
CITY OF BOYNTON BEACH
FIREFIGHTERS PENSION PLAN
STATEMENTS OF FIDUCIARY NET POSITION
September 30, 2015 and 2014
2015 2014
Cash $ 48,503 $ 37,728
Receivables:
Empl oyer 29,486 29,486
Interest and di vi dends 59,138 71,836
Broker -deal ers 244,649 355,004
Total receivables 333,273 456,326
I nvestments at fair value:
U.S. Government obligations
3,134,348
3,031,550
U.S. Government agency obligations
1,691,558
1,795,395
M uni ci pal obl i gati ons
61,221
424,383
Domestic corporate obligations
3,568,452
3,682,032
Domesti c f i xed i ncome i nvestment f unds
7,988,386
5,699,779
1 nternati onal f i xed i ncome i nvestment f and
3,525,422
3,814,078
Domestic stocks
18,811,973
19,540,998
Domesti c equi ty i nvestment f unds
21,685,681
21,135,699
Real estate investment funds
7,881,031
6,992,603
International equi ty i nvestment f unds
10,489,329
10,796,441
Temporary investments
1,513,346
1,117,490
Total investments
80,350,747
78,030,448
Prepaid expenses
4,834
4,891
Total assets
80,737,357
78,529,393
Liabilities
Accounts payabl e 80,428 66,940
Accounts payable, broker -deal ers 250,236 183,362
Total liabilities 330,664 250,302
Net position restricted for pensions $ 80,406,693 $ 78,279,091
See Notes to Fi nanci a1 Statements.
3
CITY OF BOYNTON BEACH
FIREFIGHTERS PENSION PLAN
STATEM ENTS OF CHANGES I N FI DUCIARY NET POSITION
Years ended September 30, 2015 and 2014
gni ti gnia
Additions:
Contri buti ons:
Empl oyer $ 3,930,996 $ 3,522,147
Ran members 1,195,448 1,191,111
Ran members, buy-back 56,082 100,662
Rollover to DROP 139,860 343,843
Total contributions 5,322,386 5,157,763
1 ntergovernmental revenue:
Chapter 175 state exci se tax rebate 963,573 1,016,561
Total i ntergovernmental revenue 963,573 1,016,561
I nvestment i ncome (I oss):
Net appreci ati on (depred ati on) i n fad r vat ue of i nvestments
(2,236,222)
5,419,290
Interest
228,458
345,754
Dividends
2,571,370
1,691,112
Commi ssi on recapture
1,344
1,148
Cl ass acti on settl ement
6,196
661
Other
200
5,235
Total investment income
571,346
7,463,200
Less investment expenses
288,493
275,620
Net investment income
282,853
7,187,580
Total additions
6,568,812
13,361,904
Deductions:
Benef i ts:
Age and service
3,883,951
3,804,080
Di sabi I i ty
40,963
40,410
Benef i ci ari es
224,862
222,880
Drop payments
154,373
224,700
Refunds
4,622
50,673
Admi ni strati ve expenses
132,439
122,390
Total deductions
4,441,210
4,465,133
Ne# increase in net position
2,127,602
8,896,771
Net position restricted for pensions:
Beginning of year
78,279,091
69,382,320
End of year
$ 80,406,693
$ 78,279,091
See Notes to Fi nanci a1 Statements
rd
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
1. Descrintion of the Plan
The fol I owi ng bri of descri pti on of the Boynton Beach Fi ref ghters' Pend on R an
(PI an) i s provi ded f or general i of ormati on purposes onl y. Parti ci pants shoul d refer to the
Ran Agreement for more complete information.
General - The R an was created i n 1958 by Secti on 21-95 of an Ordi nance adopted
by the City of Boynton Beach, Florida. This Ordinance was substanti vel y amended in
1978, 1983, 1993, 2000 and 2002.
The R an i s a def i ned benef i t pensi on pl an coveri ng a1 I f ul I -ti me f i ref i ghters of the
Ci ty of Boynton Beach, FI ori da (Ci ty). Parti ci pati on i n the R an i s requi red as a condi ti on
of empl oyment. The R an provi des f or pensi on, death and di sabi I i ty benef i ts. I n addi ti on,
the R an i s a I oval I aw pl an subj ect to provi si ons of Chapter 175 of the State of FI ori da
Statutes.
The R an, i n accordance wi th the above statutes, i s governed by a f i ve member
pensi on board. Two f i ref i ghters, two Ci ty resi dents and a f i fth member el ected by the other
four members consti tute the pensi on board. The Fi re Chi of occupi es an exoff i ci o, non-
voti ng posi ti on on the board of trustees. The Chi of shad I have the opportuni ty to part ci pate
i n a1 I board di scussi ons and acti vi ti es but shad I not be counted f or the purpose of a quorum
nor shad I he be enti td ed to move or second the adopti on of any i ssue or vote on any matter
bef ore the board. The Ci ty and the R an parti ci pants are obl i gated to f and a1 I R an costs
based upon actuarial vat uati ons. The City establishes benefit I evel s while the board
establ i shes the actuari a1 methods f of I owed by the R an.
Duri ng the f i scat year ended September 30, 2015 the Ran' s
membership consisted of:
Retirees and benef i ci ari es:
Currentl y recei vi ng benef i is 80
Drop Retirees 33
Termi nated empl oyees enti td ed to benef i is but
not yet recei vi ng them 1
Total 114
Current employees:
Vested 69
N onvested 51
Total 120
At September 30, 2014, the date of the most recent actuari a1 val uati on, there were
120 reti rees and benef i ci ari es recei vi ng benef i ts.
5
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
1. Description of Plan (Continued)
Pension Benefits - The pension plan provides retirement, death and di sabi I i ty
benef i is for i is parti ci pants. A parti ci pant may reti re wi th normal benef i is after reachi ng
age 55 and accumul ati ng 10 or more years of credi ted servi ce or at 20 years of servi ce
wi thout regard to age. N ormal reti rement benef i is are based on 3.0% of the parti ci pant's
f i nal average sal ary ti mes the number of hi s or her credi ted years of servi ce. The f i nal
averagesal ary for purposes of cal cul ati ng benef i is i sthe parti ci pant' saveragesal ary duri ng
the three hi ghest years of the I ast ten years of credi tabl a servi ce pri or to reti rement. Sal ary
excl udes bonuses and i ncenti ve pay recei ved by a f i ref i ghter duri ng that three year peri od.
A parti ci pant wi th 10 or more years of credi ted servi ce i s el i gi bl e f or earl y
reti rement. These benef i is begi n upon appl i cati on on or after reachi ng age 50 and are
computed the same as normal reti rement, based upon the parti ci pant's f i nal average sal ary
and credited servi ce at the date of termi pati on. Benefits are reduced 3% per year for each
year by which the participant's age at retirement preceded the participant's normal
retirement age.
There have been revi si ons i n benef i is si nce the 2012 val uati on to ref I ect Senate
Bi I 11128. The def i ni ti on of pensi onabl a compensati on has been changed to I i mi t overti me
pay to 300 hours per year effecti ve September 27, 2013 and to I i mi t the number of
accumulated unused sick and vacation hours to the lesser of the number of hours
accumulated as of September 27, 2013 and the number of hours cashed out at reti rement.
Thi s change caused an i ni ti a1 i ncrease i n the empl oyer contri buti on of 0.72% of covered
payrol I due to the f act the current average accumul aced si ck and vacati on hours exceed the
average amounts assumed for actuari a1 val uati on purposes. Over ti me, however, thi s
change wi I I reduce the cost of the R an.
Cost of L i vi ng Ado ustment - The R an provi des for a 2% annual cost -of -1 i vi ng
adj ustment (COLA) commenci ng f i ve years after reti rement f rom the Ci ty or entry i nto the
D ROP R an. Thi s becomes avai I abl a eff ecti ve December 1, 2011 f or a1 I members who
reti re or enter i nto the D ROP on or after December 1, 2006; el i gi bl a members a1 so i nd udes
al I reti rees el ecti ng earl y reti rement and al I di sabi I i ty reti rees who enter pay status on or
after December 1, 2006.
The actuari al cost of thi s benef i t was f i nanced by an i ncrease i n the parti ci pants
contri buti on rate f rom 7% to 12%.
Ad H oc Suppl emental Benef i is - Certai n reti rees are el i gi bl a to recei ve annual
di stri buti ons f unded exd usi vel y wi th avai I abl a Chapter 175 premi um tax revenue. Terms
of the benef i t provi de that each el i gi bl a reti ree shat I recei ve a di stri buti on of avai I abl e
f unds f or up to f i ve hundred dol I ars per year of credi ted servi ce for each year of credi ted
servi ce i n the R an not to exceed twenty years.
0
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
1. Description of Plan (Continued)
Deferred Red rement Opti on R an - Any R an parti ci pant who i s el i gi bl a to receive
an earl y or normal reti rement pensi on may el ect to parti ci pate i n a deferred reti rement
option plan (DROP) whi I e Continuing hi s or her acti ve empl oyment as a f i ref i ghter. Upon
parti ci pati on i n the DROP, the parti ci pant becomes a reti ree for a1 I R an purposes so that
he or she ceases to accrue any f urther benef i is under the pensi on pl an. N ormal reti rement
payments that woul d have been payabl a to the parti ci pant as a resul t of reti rement are
accumul ated and i nvested i n the DROP to be di stri buted to the parti ci pant upon hi s or her
termination of employment. Participation in the DROP ceases for a Ran participant after
the earl i er of 5 years or the attai nment of 30 years of servi ce.
An empl oyee' s account i n the DROP program shad I earn i nterest i n one of three
ways. The selection of the earni ngs program may be changed each year i n January. The
opti ons are summari zed as f of I ows:
A. Gai n or I oss i nterest at the same rate as the R an; or,
B. At an annual fixed rate of seven percent (7%); or,
C. A combi pati on of the f i xed and vari abl a rates
Supplemental Pension Distributions - The Board of Trustees each year may
approve a suppl emental di stri buti on f rom a net actuari a1 gai n as cad cud aced by the R an' s
actuary. The di stri buti on shad I be pai d to the extent of the actuari a1 gad ns attri butabl a to
reti rees and benef i ci ari es whi ch have been set asi de i n a suppl emental pensi on reserve. I n
years i n whi ch the R an' s actuari a1 gai n i s suff i ci ent to support the payment of a thi rteenth
check, the payment shad I be made i n December. The Board di d not approve a suppl emental
di stri buti on for the f i scal years ended September 30, 2015 and 2014.
Di sabi I i ty Benef i is - Di sabi I i ty benef i is for servi ce red aced di sabi I i ti es are pai d to
a parti ci pant f or I i f e. Benef i is are cad cud ated as 66 2/3% of the parti ci pant's sal ary at the
time of retirement. This amount is reduced by any social security and workers'
compensati on benef i is recei ved and wi I I not be I ess than 42% of the parti ci pant's average
monthly sal ary.
Di sabi I i ty benef i is f or non-servi ce red aced di sabi I i ti es are pai d to a parti ci pant for
I i f e. Benefits are cad cud ated using a2 '/2% accrual rate with a minimum of 25% of the
parti ci pant's f i nal average sal ary.
Death Benef i is - Prereti rement death benef i is for parti ci pants wi th at I east 10 years
of servi ce are payabl a unti I the spouses death or remarri age. Benef i is are cad cud ated at 2
'/2% of the participant's average f i nal salary at the time of death. Beneficiaries of
partici pants who die prior to vesting wi I I recei ve a refund of the participants accumulated
contri buti ons.
7
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
1. Description of Plan (Continued)
Post retirement death benefits are payable to the participant's eligible widow
dependi ng on the survi vor' s benef i t sel ected.
Ref and of Parti ci pant Contri buti ons - A parti ci pant who termi nates empl oyment
and i s i nel i gi bl a for pend on benef i is i s ref unded hi s or her contri buti on wi thout i nterest.
2. Summary of Significant Accounting Polices
Basi s of Accounti nq - Basi s of accounti ng i s the method by whi ch revenues and
expenses are recogni zed i n the accounts and are reported i n the f i nand a1 statements. The
accrual bad s of accounti ng i s used f or the R an. U nder the accrual bad s of accounti ng,
revenues are recognized when they are earned and col I ecti on is reasonably assured, and
expenses are recognized when the I i abi I i ty is incurred. Ran member contri buti ons are
recogni zed i n the peri od i n whi ch the contri buti ons are due. Ci ty contri buti ons to the pl an
as cal cul aced by the R an' s actuary, are recognized as revenue when due and the City has
made a formal commitment to provide the contributions. Benefits and refunds are
recognized when due and payabl e i n accordance with the terms of the pl an.
Basi s of Presentati on - The accompanyi ng f nand a1 statements are presented i n
accordance with Governmental Accounting Standards Board (GASB) Statement 67,
Financial Reporting for Defined Benefit Pension Plans and the Codification of
Governmental Accounti ng and Fi nand a1 Reporti ng Standards whi ch covers the reporti ng
requi rements for def i ned benef i t pensi ons establ i shed by a governmental empl oyer. The
accompanyi ng f i nand a1 statements i nd ude sol el y the accounts of the R an whi ch i nd ude
ail programs, activities and functions relating to the accumulation and investment of the
assets and related income necessary to provide the service, di sabi I i ty and death benefits
requi red under the terms of the R an Ordi nance and the amendments thereto.
Val uati on of I nvestments - I nvestments i n common stock and bonds traded on a
pati onal securi ti es exchange are val ued at the I ast reported sal es pri ce on the I ast bud ness
day of the year; securities traded in the over-the-counter market and I i sted securities for
whi ch no sal a was reported on that date are val ued at the mean between the past reported
bi d and asked pri ces; i nvestments i n securi ti es not havi ng an establ i shed market val ue are
valued at fair value as determined by the Board of Trustees. The fair value of an
investment i s the amount that the R an could reasonably expect to receive for it in a current
sale between market participants, other than in a f orced or liquidation sale. Purchases and
sal es of i nvestments are recorded on a trade date bad s.
0
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
2. Summary of Significant Accounting Policies (Continued)
The R an' s i nvestments i nd ude an a1 ternati ve i nvestments i n the U.S. Real Estate
Investment Fund, the ASB Real Estate Fund, L BC Credit Partners Fund and Crescent
Direct Lending Fund. These funds are privately placed and operates in a manner
comparabl a to a mutual f and i n many respects. The f unds i nest i n a di verse portfol i o of
real estate, futures, options and certain other investments with varying market
capi tal i zati ons.
The i nvestments i n the underl yi ng f unds are general I y vat ued dad I y at f ai r val ue as
determined by the management of the fund by reference to the val ue of the underl yi ng
securi ti es, i f avai I abl e, or by the val uati on of a securi ty as provi ded by the general partner
or i nvestment manager, i f the securi ti es are not publ i d y traded. Whi I e the f and manager
use i is best j udgment i n esti mati ng the fad r vat ues of underl yi ng securi ti es, there are
i nherent I i mi tali ons i n any esti mati on techni que. Theref ore, the val ues of such securi ti es
are not necessari I y i ndi cati ve of the amount that coul d be real i zed i n a current transacti on.
The f ai r vat ues may di ff er si gni f i cantl y f rom the vat ues that woul d have been used had a
ready market for the underl yi ng securi ti es exi sted, and the di fferences coul d be materi al.
Future conf i rmi ng events wi I I a1 so eff ect the esti mates of f ai r val ue, and the effect of such
events on the esti mates of f ai r val ue coul d be materi a1.
These a1 ternati ve i nvestment f unds expose the R an to certai n ri sks, i nd udi ng
I i qui di ty ri sks, counterparty ri sks, forei gn pol i ti cad, economi c and governmental ri sks, and
market ri sk. I n addi ti on, these i nvestments may have i ni ti a1 I ock-up peri ods, as wel I as
restri cti ons for I i qui dati ng poli ti ons i n these f unds, that make the i nvestments non-current
and non-marketabl e.
Investment income is recognized on the accrual basis as earned. U nreal i zed
appreciation i n f ai r vat ue of investments i ncl udes the di ff erence between cost and f air vat ue
of investments held. The net real i zed and unreal i zed investment appreciation or
depreciation for the year i s ref I ected in the Statement of Changes i n Fiduciary Net Position.
Custody of Assets - Custodi a1 and i nvestment servi ces are provi ded to the R an
under contract wi th a nati onal trust company havi ng trust powers. The R an' s i nvestment
pol i ci es are governed by FI ori da State Statutes and ordi nances of the Ci ty of Boynton
Beach, Florida
Authori zed R an I nvestments - The Board recogni zes that the obl i gati ons of the
R an are I ong-term and that i is i nvestment pol i cy shoul d be made wi th a vi edv toward
performance and return over a number of years. The general i nvestment obj esti ve i s to
obtai n a reasonabl etotal rate of return def i ned as i nterest and di vi dend i ncome pl us real i zed
and unreal i zed capi tal gad ns or I osses commensurate wi th the prudent i nvestor rul a and
Chapter 175 of the FI ori da Statutes.
9
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
2. Summary of Significant Accounting Policies (Continued)
Permissible investments include obligations of the U.S. Treasury and U.S.
agencies, high capital i zati on common or preferred stocks, pooled equity funds, high qual i ty
bonds or notes, forei gn securi ti es and f i xed i ncome f unds. I n addi ti on, the Board requi res
that R an assets be i nested wi th no more than 70% i n stocks and converti bl a securi ti es
measured at cost at the end of each reporting period. Further information regarding the
permi ssi bl ei nvestmentsfrom the Ran can befound in theStatement of Investment Policies
and Obj esti ves.
Actuarial Cost Method - The Ran changed its actuarial cost method from the
Frozen Entry Age to the Entry Age Normal Method for funding purposes. This method
al I ocates the actuari a1 present val ue of each parti ci pant's proj ected benef i t on a I evel basi s
over the parti ci pant's earni ngs f rom the date of entry i nto the R an through the date of
reti rement.
Reporti ng Enti ty - The f i nanci al statements presented are onl y for the R an and are
not i ntended to present the basi c f i nanci al statements of the Ci ty of Boynton Beach,
FI ori da.
The Ran is included in the City's Comprehensive Annual Financial Report
(CA FR) for the years ended September 30, 2015 and 2014, which are separately issued
documents. Anyone wi shi ng further information about the City is referred to the City's
CAFR.
The R an i s a pensi on trust f and (f i duci ary f and type) of the Ci ty whi ch accounts
for the single employer defined benefit pension plan for ail City Fi ref i ghters. The
provi si ons of the R an provi de for reti rement, di sabi I i ty, and survi vor benef i ts.
Fundi nq Pbl icy - Parti ci pants are requi red to contri bute 12.0% of thei r annual
earni ngs to the R an. Pri or to 1986, contri buti ons to the R an were made on an after-tax
basi s. Subsequent to thi s date, contri buti ons are made on a pre-tax basi s pursuant to an
amendment to the Ran. These contri buti ons are designated as employee contributions
under Secti on 414(h)(2) of the I nternal Revenue Code. Contri buti on requi rements of the
R an' s parti ci pants are establ i shed and may be amended by the Ci ty of Boynton Beach,
FI ori da.
A rehi red member may buy back one or more years of conti nuous past servi ce by
payi ng i nto the R an the amount of contri buti ons that the parti ci pant woul d otherwi se have
pai d for such conti nuous past servi ce, pl us the i nterest that woul d have been earned had
such f unds been i nested by the R an duri ng that ti me.
10
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
2. Summary of Significant Accounting Policies (Continued)
The Ci ty' s f undi ng pol i cy i s to make actuari a1 I y computed monthl y contri buti ons
to the R an i n amounts, such that when combi ned wi th parti ci pants' contri buti ons and the
State i nsurance exci se tax rebate, a1 I parti ci pants' benef i is wi I I be f ul I y provi ded for by the
time that they retire.
The City's actuari a1 I y determined contribution rate for the year ended
September 30, 2015 and 2014 was 42.27% and 37.5%, respecti vel y. Thi s rate consi sts of
20.50% and 19.42% of member sal ari es to pay normal costs pl us 21.77% and 17.73% to
amorti ze the unf unded actuari a1 I y accrued I i abi I i ty pursuant to the September 30, 2014
actuarial val uati on.
Administrative Costs - All administrative costs of the Ran are financed through
employee contributions and charges against the DROP accounts and supplemental
di stri buti ons.
Cash - The Ran considers money market and demand account bank and broker -
deal er deposi is as cash. Temporary i nvestments, shown on the bad ance sheet are composed
of i nvestments i n short-term custodi a1 propri etary money market f unds.
Federal I ncome Taxes - A f avorabl a determi pati on I etter i ndi cati ng that the R an
i s quad i f i ed and exempt f rom Federal i ncome taxes was not i ssued by the I nternal Revenue
Service. The Board bel i eves that the Ran is designed and continues to operate in
compel i ance wi th the appl i cabl a requi rements of the I nternal Revenue Code.
Use of Estimates - The preparation of financial statements in conformity with
general I y accepted accounti ng pri nci pl es requi res management to make esti mates and
assumptions that affect the reported amounts of assets and I i abi d i ti es and disclosure of
conti ngent assets and I i abi I i ti es at the date of the f i nanci a1 statements and the reported
amounts of revenues and expenses duri ng the reporti ng peri od. Actual resul is soul d di ff er
from those estimates.
Subsequent Events - Management has adopted the provi si ons set forth in GASB
Statement N o. 56, &jbsequent Events and consi dered subsequent events through the date
of the audi t report whi ch i s the date that the f i nanci a1 statements were avai I abl a to be
issued.
11
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
2. Summary of Significant Accounting Policies (Continued)
Nedv Accounting Pronouncements - Governmental Accounting Standards Board
(GASB) 67, Financial Reporting for Pension Plans and GASB 68, Accounting & Financial
Reporting for Pensions (Erployer), address accounting and financial reporting
requi rements f or pension plan activities. T he Ci ty of Boynton Beach Fi ref i ghters' Pension
Fund (Ran) i s a si ngl a empl oyer pension plan as defined by GASB 67. The requi rements
for GASB 67 requi re changes i n presentati on of the f i nanci a1 statements, notes to the
f nanci a1 statements, and requi red suppl ementary i nformati on.
I t i s i mportant to note that the di scl osures rel aced to GASB 67 are accounti ng
measurements, not actuari al measurements of the f unded status of the R an, and not used
to develop employer contribution rates.
3. Deposits and Investments
Deposits
At year end September 30, 2015 the carryi ng amount of the R an' s deposits was
$31.964 and the bank balance was $32,065. The bank balance was covered by federal
depository insurance and, for the amount in excess of such federal depository insurance,
by the State of FI ori da' s Securi ty for Publ i c Deposi is Act. Provi si ons of the Act requi re
that public deposits may only be held at qualified public deposi tori es. The Act requi res
each quad i f i ed publ i c deposi tory to deposi t wi th the StateT reasurer el i gi bl a col lateral equal
to or i n excess of the requi red col I ateral as determi ned by the provi si ons of the Act. I n the
event of a f ai I ure by a quad i f i ed publ i c deposi tory, I osses i n excess of federal deposi tory
i nsurance and proceeds f rom the sal a of the securi ti es pl edged by the def aul ti ng deposi tory,
are assessed against the other qualified public deposi tori es of the same type as the
depository in default.
Salem Trust Company (Salem) peri odi cal I y holds uninvested cash in i is capaci ty
as custodi an for the Ran. T hese f unds exi st temporari I y as cash i n the process of col I ecti on
f rom the sal a of securi ti es or mutual f unds.
12
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
3. Deposits and Investments(Continued)
I nvestments
I nvestments that are not epi denced by securi ti es that exi st i n physi cal or book -
entry form i ncl ude i nvestments i n open-ended mutual or a1 ternati ve i nvestment f unds.
The R an' s investments other than cash held by its administrative manager, are
segregated i nto a separate account and managed under separate i nvestment agreementswi th
Schroder M anagement, Ltd., Anchor Capital Advisors, L.L.C., and DSM Capital Partners,
L.L.C.AlI oftheseaccountsgiveSalern thecustodianship,but giveSchroder Management,
Ltd, Anchor Capital Advisors, L.L.C., and DSM Capital Partners the authority to manage
the i nvestments.
The Vanguard 500 1 ndex Fund and the Vanguard M i dCap Fund are open-ended
exchange traded funds and R M CO Diversified Domestic Fixed Income Fund, the
American Funds Europacific Fund, the WCM Focused International Growth fund and
Tempt eton GI obal Bond Fund are mutual f unds.
These assets are i nested i n accordance wi th the sped f i c i nvestment gui del i nes as
set forth i n the Statement of I nvestment Pb1 i ci es and Obj ecti ves. I nvestment management
fees are cad cul ated quarterly as a percentage of the fad r market vat ue of the R an' s assets
managed.
The R an' s i nvestments are uni nsured and unregi stered and are hel d i n custodi ans'
or the Bank's accounts i n the R an' s name. The U.S. Real Estate I nvestment f und, theASB
Real Estate Fund, the LBC Credit Partners Investment Fund, and the Crescent Direct
Lendi ng Fund are pri vatel y pl aced f unds, whi ch operate as an al ternati ve i nvestment f und
whi ch off ers thei r shares at the net asset vat ue ( NAV) of the f und. The NAV i s based on
the vat ue of the under) yi ng assets owned by the f und mi nus i is I i abi I i ti es and then di vi ded
by the number of shares or percentage of ownership outstanding.
The exchange traded funds are commonly referred to as" ETFs" . ETFs are f unds
that trade I i ke other publ i cl y -traded securi ti es and are desi gned to track an i ndex. Si mi I ar
to shares of an i ndex mutual f und, each share of the Fund represents a parti a1 ownershi p
i n an under) yi ng portfol i o of securi ti es i ntended to track a market i ndex. U nl i ke shares of
a mutual fund, which can be bought and redeemed from the issuing fund by all
shareholders at a price based on NAV, only authorized participants may purchase or
redeem shares directly from the Fund at NAV. Also, unlike shares of a mutual f und, the
shares of the Fund are I i sted on a pati onal securi ti es exchange and trade i n the secondary
market at market pri ces that change throughout the day.
13
3.
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
Deposits and Investments(Continued)
The Fund i nests i n a parti cul ar segment of the securi ti es market and seeksto track
the perf ormance of a securi ti es i ndex that general I y i s not representati ve of the market as
a whol e.
The R an had no i nvestments that i ndi vi dual I y represented 5% or more of the
R an' s net assets avai I abl a for benefits as of September 30, 2015.
Further, the R an has no i nstrument that, i n whol a or i n part, i s accounted for as a
deri vati ve i nstrument under GASB statement No. 53, Accounting and Financial Reporting
for Derivative Instruments duri ng the current R an year.
The R an hel d the fol I owi ng f i xed i ncome i nvestments as of September 30, 2015:
Rati ng
Standard Effective
Fad r & Duration
I nvestment Type Val ue Poor' s (Years)
U.S. Government and
agency obl i gati ons
$ 4,825,906 AA
7.4
M uni ci pal obl i gati ons
61,221 A
6.2
Domestic corporate obligations
3,568,452 BBB - AA
8.7
Domesti c f i xed i ncome i nvestment f unds
7,988,386 -
-
I nternati onal f i xed i ncome i nvestment f and
3,525,422 -
-
Temporary investment funds
1.513.346 AAA
Daily
Total $ 21,482,733
I nterest Rate Ri sk - I nterest rate ri sk i s the ri sk that changes i n i nterest rates wi I I
adversel y affect the fad r vat ue of an i nvestment i n debt securi ti es. General I y, the I onger the
time to maturity, the greater the exposure to interest rate risk. Through its investment
pol i ci es the R an manages i is exposure to fad r vat ue I osses ari si ng f rom i ncrea§ ng i nterest
rates. The Ran limits the effective duration of its investment portfolio through the
adopti on of pati onal I y accepted ri sk measure bench marks.
14
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
3. Deposits and Investments(Continued)
Credi t Ri sk - Credi t ri sk i s the ri sk that a debt i ssuer wi I I not f ul f i I I i is obl i gati ons.
Consi stent wi th state I aw the R an' s i nvestment gui del i nes I i mi t i tsf i xed i ncome i nvestment
to a quad i ty rati ng of 'A' or equi val ent as rated by one ore more recogni zed bond rati ng
servi ce at the ti me of purchase. The R an' s f i xed i ncome portfol i o may not i nd ude more
than 10% of i is i nvestments i n securi ti es havi ng a qual i ty rati ng of Baa
Custodi al Credi t Ri sk - Custodi al credi t ri sk i s def i ned as the ri sk that the R an may
not recover cash and i nvestments het d by another party i n the event of a f i nanci al f ai I ure.
The R an requi res al I securi ti es to be hel d by a thi rd party custodi an i n the name of the
R an. Securi ti es transacti ons between a broker -deal er and the custodi an i nvol vi ng the
purchase or sal a of securi ti es must be made on a " del i very vs. payment" basi s to ensure that
the custodi an wi I I have the securi ty or money, as appropri ate, i n hand at the cond usi on of
the transaction. The investments in mutual funds and investment partnerships are
consi dered unclassified pursuant to the custodi al credi t ri sk categori es of GASB Statement
N o. 3, because they are not evi denced by securi ti es that exi st i n physi cal or book -entry
form.
I nvesti ng i n Forei gn M arkets - I nvesti ng i n forei gn markets may i nvol ve sped al
ri sks and consi derati ons not typi cal I y associ aced wi th i nvesti ng i n compani es i n the U ni ted
States of Ameri ca. These ri sks i ncl ude revad uati on of currenci es, hi gh rates of i of I ati on,
repatri ati on restri cti ons on i ncome and capi tal , and f uture adverse pod i ti cad, soci al, and
economi c devel opments. M oreover, securi ti es of forei gn governments may be I ess I i qui d,
subj ect to del ayed settl ements, taxati on on read i zed or unreal i zed gai ns, and thei r pri ces are
more vol ati I e than those of comparabl a securi ti es i n U.S. compani es.
Forei gn Tax Wi thhol di ngs and Red ad ms - Wi thhol di ng taxes on di vi dends f rom
forei gn securi ti es are provi ded f or based on rates establ i shed vi a treaty between the U ni ted
States of Ameri ca and the appl i cabl a forei gn j uri sdi cti on, or where no treaty exi sts at the
prevai I i ng rate establ i shed by the forei gn country. Foreign tax wi thhol di ngs are ref d ected
as a reducti on of di vi dend i ncome i n the statement of operati ons. Where treati es al I ow for
a recd ad m of taxes, the Fund wi I I make a f ormal appl i cati on f or ref und. Such recd ad ms are
i nd uded as an addi ti on to di vi dend i ncome.
I nvesti ng i n Real Estate - The R an i s subj ect to the ri sks i nherent i n the ownershi p
and operati on of real estate. These ri sks i ncl ude, among others, those normal I y associ aced
wi th changes i n general economi c d i mate, trends i n the i ndustry i ncl udi ng credi tworthi ness
of tenants, competi ti on f or tenants, changes i n tax I advs, i nterest rate I evel s, the aval I abi I i ty
of f i nand ng and potenti al I i abi I i ty under envi ronmental and other I aws.
15
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
3. Deposits and Investments(Continued)
Investment Asset A I I ocati on - The R an' s adopted asset al I ocati on policy as of
September 30, 2015 i s as fol I ows:
I n order to provi de for a di versi f i ed portf of i o, the Board has engaged i nvestment
professional (s) to manage and administer the fund. The investment manager(s) are
respond bl a for the assets and a1 I ocati on of thei r mandate onl y and may be provi ded as an
addendum to thi s pol i cy wi th thei r sped f i c perf ormance obj esti ves and i nvestment cri teri a
The Board has establ i shed the fol I owi ng asset a1 I ocati on targets for the total R an:
Asset Class
Target
Range
Benchmark Index
Broad Cap Value Equity
20%
150/6-25%
Russell 3000 Value
Broad Large Cap Growth Equity
20%
150&25%
Russell 1000 Growth
Large Cap Core Equity
5%
0%-10%
S& P 500
International Equity
15%
100&20%
MSCI-Worldx-U.S.
Broad Market Fixed Income
10%
150&25%
Barclays I nt. Aggregate
TI PS*
5%
00&7.5%
Barcl ays TI PS
Non -Core Global Bond
5%
.0%-7%
MS Global BrdMktxUSD
Real Estate*
10%
0%-15%
NCREI F Property
Al ternati ve Investment*
10%
00&20%
TBD (mandate appropriate)
*Benchmark wi I I default to" broad market fixed income" if these portfolios are not funded. Targets and ranges above are
based on market vel ue of total Plan assets.
The investment consultant wi I I monitor the aggregate asset a1 I ocati on of the
portfolio, and will rebalance to the target asset a1 I ocati on based on market
cond i ti ons. If at the end of any calendar quarter, the a1 I ocati on of an asset cl ass f al Is
outsi de of its a1 I owabl a range, barring extenuating circumstances such as pending
cash f I ows or a1 I ocati on I evel s vi ewed as temporary, the asset a1 I ocati on wi I I be
retial anced i nto the a1 I owabl a range. To the extent possi bl e, contri buti ons and
withdrawalsfromthe portfoliowiII be executed proporti onal I y based on the most
current market value avai I abl e. The Board does not intend to exercise short-term
changes to the target a1 I ocati on.
Rate of Return - For the year ended September 30, 2015 the annual money-
wei ghted rate of return on pensi on pl an i nvestments, net of pensi on pl an i nvestment
expense, was 0.78 percent. The money -weighted rate of return expresses
investment performance, net of investment expense, adjusted for the changing
amounts actual I y invested.
16
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
4. Net I na-ease (Decrease) in Realized and
Unrealized Appreciation (Depreciation) of I nvestments
The PI an' s i nvestmentsappreci aced (depreciated) i n val ueduri ng theyearsended
September 30, 2015 and 2014 as fol lows.
The cal cul ati on of real i zed gai ns and I osses i s i ndependent of the cal cul ati on of net
appreci ati on (depred ati on) i n the fad r val ue of pl an i nvestments.
U nreal i zed gad ns and I osses on i nvestments sol d i n 2015 that had been hel d for more than
one year were i ncl uded i n net appreci ati on (deprecd ati on) reported i n the pri or year.
17
2015
2014
Real ized
U nreal ized
Real ized
U nreal ized
Appreciation
Appreciation
Appreciation
Appreciation
(Depreciation)
(Depreciation)
Total
(Depreciation)
(Depreciation)
Total
I nvestments at fai r val ue as determi ned
by quoted market price:
U.S. Government obligations
$ 40,256
$ 9,526
$ 49,782
$ (75,779)
$ 26,305
$ (49,474)
U.S. Government agency
obligations
(388)
(4,974)
(5,362)
(452)
20,569
20,117
Municipal obligations
20,520
(20,164)
356
25,365
10,526
35,891
Domestic corporate obligations
36,391
(70,051)
(33,660)
(32,193)
(20,630)
(52,823)
Domestic f i xed income
i nvestment f u nds
-
(158,284)
(158,284)
-
191,968
191,968
International fixed income
i nvestment f u nd
-
(553,890)
(553,890)
-
84,940
84,940
Domestic stocks
2,456,792
(2,711,676)
(254,884)
1,138,554
1,194,310
2,332,864
Domestic equity investment funds
1,005,247
(1,179,657)
(174,410)
716,017
2,152,203
2,868,220
Real estate i nvestment funds
8,482
773,351
781,833
(3,201)
635,152
631,951
International equity
i nvestment f u nds
(1,244,179)
(643,524)
(1,887,703)
-
(644,364)
(644,364)
Net increase (decrease) in real ized
and unrealized appreciation
(depreciation) of investments
$ 2,323,121
$ (4,559,343)
$ (2,236,222)
$ 1,768,311
$ 3,650,979
$ 5,419,290
The cal cul ati on of real i zed gai ns and I osses i s i ndependent of the cal cul ati on of net
appreci ati on (depred ati on) i n the fad r val ue of pl an i nvestments.
U nreal i zed gad ns and I osses on i nvestments sol d i n 2015 that had been hel d for more than
one year were i ncl uded i n net appreci ati on (deprecd ati on) reported i n the pri or year.
17
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
5. 1 nvestments
The R an' s investments at both carrying value and cost or adjusted cost as of
September 30, 2015 and 2014 are summari zed as f of I ows:
2015 2014
18
M arket
M arket
I nvestment
cost
Value
cost
Value
U.S. Government obligations
$ 3,178,983 $
3,134,348
$ 3,085,712
$ 3,031,550
U.S. Government agency obligations
1,675, 963
1,691, 558
1,774, 826
1,795, 395
Municipal obligations
56,176
61,221
399,172
424,383
Domestic corporate obligations
3,469,170
3,568,452
3,512,699
3,682,032
Domesticfixed income investment funds
8,003,042
7,988,386
5,556,153
5,699,779
International fixed incomeinvestment fund
4,174,845
3,525,422
3,909,610
3,814,078
Domestic stocks
15,700,695
18,811,973
13,720,043
19,540,998
Domestic equity investment funds
19,215,270
21,685,681
17,485,632
21,135,699
Real estate i nvestment funds
5,192,988
7,881,031
5,077,911
6,992,603
International equity investment funds
11,132,852
10,489,329
9,557,560
10,796,441
Temporary i nvestments
1,513, 346
1,513, 346
1,117,490
1,117,490
Total investments
$ 73,313,330 $
80,350,747
$ 65,196,808
$ 78,030,448
18
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
6. Designations
A portion of the fiduciary net position is designated for benefits that accrue in
relation to the DROP account as further described in Note 1. Allocations to the
D ROP pl an account for the years ended September 30, 2015 and 2014 are presented
below as determi ned i n the TPA' s most recent accounting and valuation avai I abl efor
the f i scal years ended September 30, 2015 and 2014-
Designated for DROP accounts (fully
funded)
Desi gnated for the supplemental pension
di stri buti on reserve (13th check)
Total designated net position
Undesignated net position
Total net position
2015 2014
$ 12,465,519 $ 10,406,243
12, 465, 519 10, 406, 243
67,941,174 67,872,848
$ 80.406.693 $ 78.279.091
7. Plan Amendments
There were no Plan amendments during the fiscal year ended September 30,
2015.
It•71115671W
The PI an was amended duri ng the f i scal year ended September 30, 2014 as
PI an amended to extend pensi on trustee terms of off i ce f rom two to four
years as permitted by Section 175.051, Florida Statutes. A I I pension
trustees serving as of January 1, 2014 shad I have their current term extended
for a two year period.
These changes wi I I not have an actuari a1 i mpact on the cost of thi s pl an.
19
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
8. Plan Termination
Although it has not expressed an intention to do so, the City may terminate the
Plan at anytime by awritten ordinance of the City Commission of Boynton Beach,
duly certified by an off i ci ad of the City. In the event that the Plan is terminated or
contri buti ons to the Plan are permanently di sconti nued, the benef i is of each f i ref i ghter
in the PI an at such termination date woul d be non -forfeitable.
9. Commitmentsand Contingencies
As described in Note 1, certain members of the Plan are entitled to refunds of
their accumulated contri buti ons, without interest, upon termination of employment
with the Ci ty pri or to being eligible for pension benefits. At September 30, 2015 and
2014, aggregate contri buti ons from active members of the Plan were approx i matel y
$12,295,000 and $11,100,000, respecti vel y. The portion of these contri buti onswhi ch
are refundable to participants who may term i nate with less than ten years of service
has not been determi ned.
10. Risk and Uncertainties
The PI an i nests i n a vari ety of i nvestment f unds. I nvestments i n general are
exposed to various risks, such as interest rate, credit, and overall volatility risk. Due
to the level of risk associated with certain investments, it is reasonably possible that
changes in theval ues of i nvestmentswi I I occur in the near term and that such changes
coul d mated ad I y affect the amounts reported i n the statements of net assets avai I abl e
for benefits.
11. Revisions in Actuarial Assumptions or Methods
The investment return assumption was lowered from 7.65% to 7.50% as of
September 30, 2015. Thi s change caused the empl oyer contri buti on rate to i ncrease
by 1.54% of covered payrol I .
20
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
12. Rent Expense
The PI an and Boynton Beach Police Officers' Penni on Fund are obl i gated under
aj of nt rental operating lease for office space, which expires on September 30, 2015.
The base rent of the lease is $1,166 per month plus applicable sales tax and is
prorated 50/50 for each plan, respectively. During the years ended September 30,
2015 and 2014, rent expense for the Plan under the lease agreement was $7,530 and
$6,960, respectively.
13. Net Pension Liability of the City
The components of net position I i abi I i ty of the Ci ty of Boynton Beach (City) as
of September 30, 2015 were as fol I ows.
Total Pend on L i abi I i ty
R an Fi duci ary N et Pod ti on
Ci ty's N et Pend on L i abi I i ty
R an f i duci ary net pod ti on as a percentage of
total pensi on I i abi I i ty
21
$ 126,579,666
80,406, 693
$ 46,172,973
63.52%
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
13. Net Pension Liability of the City (Continued)
Actuarial Assumptions - The total pension I i abi I i ty was determined by an
actuarial valuation as of October 1, 2014 using the fol I owi ng actuarial assumptions
appl i ed to ad I measurement peri ods.
Actuarial cost method
Inflation
Sal ary i ncreases
Investment rate of return
Retirement age
Entry age normal
3.50%
Varies by years of sere i ce f rom
3.5% to 14.0%
7.50%
Rates vary by age and years of
serve ce
M ortal i ty 1983 Group Annuity Mortality
Tabl e f or mal es and f emal es
The long-term expected rate of return on pension plan investments was
determined using a bui I di ng -block method i n whi ch best -esti mate ranges of expected
f uture real rates of return (expected returns, net of pensi on pl an i nvestment expenses
and inflation) are developed for each major asset class. These ranges are combined
to produce the I ong-term expected rate of return by wei ghti ng the expected future real
rates of return by the target asset al I ocati on percentage and by adding expected
inflation. Best esti mates of arithmetic real rates of return for each major asset class
included in the pension plan's target asset al I ocati on (as provided by the Fund's
performance monitor) as of September 30, 2015 are summarized in the following
tabl e:
Target
Allocation
Asset Group Proxy
Long -Term
Real Return
Domestic equity
45.0%
5.20%
International equity
15.0%
2.40%
Domestic bonds
25.0%
2.50%
International bonds
5.00%
3.50%
Real estate
10.0%
4.50%
22
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 2015 and 2014
13. Net Pension Liability of the City (Continued)
Di scount Rate - A si nge di scount rate of 7.50% was used to measure the total pensi on
I i abi I i ty. Thi s si ngl a di scount rate was based on the expected rate of return on pensi on pl an
i nvestments of 7.50%. The proj ecti on of cash f I ows used to determi ne thi s si ngl a di scount
rateassumed that pl an member contri buti onswi I I bemadeat thecurrent contri buti on rateand
that empl oyer contri buti ons wi I I be made at rates equal to the difference between the total
actuari a1 I y determi ned contri buti on rates and the member rate. Based on these assumpti ons,
the pensi on pl an' s f i duci ary net posi ti on was proj ected to be avai I abl a to make a1 I proj ected
f uture benef i t payments of current plan members. Therefore, the I ong-term expected rate of
return on pensi on pl an i nvestments (7.50%) was appl i ed to a1 I peri ods of proj ected benef i t
payments to determi ne the total pensi on I i abi I i ty.
Sensi ti vi ty of the N et Pensi on Di sabi I i ty to Changes i n the Di scount Rate - Regardi ng
the sensi ti vi ty of the net pensi on I i abi I i ty to changes i n the si ngl a di scount rate, the fol I owi ng
presents the pl an' s net pensi on I i abi I i ty, cal cul ated usi ng a si ngl a di scount rate of 7.50%, as
wel I as what the pl an' s net pensi on I i abi I i ty woul d be i f i t were cal cul aced usi ng a si ngl e
di scount rate that i s 1 -percentage -poi nt I ower or 1 -percentage -poi nt hi gher:
Sensitivity of the Net Pension Liability
to the Single Discount Rate Assumption
Current
Si ngl a Di scount
1 % Decrease Rate Assumpti on 1 % Increase
6.50% 7.50% 8.50%
City's net
pension
I i abi I i ty $ 59,627,317 $ 46,172,973 $ 34,984,486
23
I RED SUPPLEMENTARY INFORM ATI ON
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
SCHEDULE OF CHANGES IN THE CITY'S
NET PENSION LIABILITY AND RELATED RATIOS
Last Two Fiscal Years
Total pension liability:
Servi ce cost
Interest
Benefit changes
Differences between actual and expected experience
Assumption changes
Benefit payments,
Refunds
Other (increase in excess state reserve)
Other (rol I overs into DROP)
September 30, September 30,
2015 2014
$
2,988,536$ 2,772,724
8,955,215 8,188,369
708,071
(28,363)
1,809,581
-
(4,304,149)
(4,292,070)
(4,622)
(50,673)
259,251
312,239
139,860
343,843
Net change in total pension liability
10,551,743
7,246,069
Total pension liability - beginning
116,027,923
108,781,854
Total pension liability - ending (a)
$
126,579,666 $
116,027,923
Plan fiduciary net position:
Contributions- employer
$
3,930,996$
3,522,147
Contri buti ons - non-empl oyer contri buti ng enti ty (state)
963,573
1,016,561
Contri buti ons - members (i nd udi ng buyback contri buti ons)
1,251,530
1,291,773
Net investment income
282,853
7,187,580
Benefit payments
(4,304,149)
(4,292,070)
Refunds
(4,622)
(50,673)
Admi ni strati ve expenses
(132,439)
(122,390)
Other (Rol lovers into DROP)
139,860
343,843
Net change in plan fiduciary net position
2,127,602
8,896,771
Plan fiduciary net position - beginning
78,279,091
69,382,320
Plan fiduciary net position - ending (b)
$
80,406,693 $
78,279,091
N et Pend on L i abi I i ty - Endi ng (a) - (b)
$
46,172, 973 $
37,748, 832
R an f i dud ary net posi ti on as a percentage of
total pensi on I i abi I i ty 63.52% 67.47%
Covered employee payroll $ 11,784,702 $ 11,307,953
Net pension I i abi I i ty as a percentage
of covered employee payroll 391.80% 333.83%
24
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
SCH EDULE OF CONTRI BUTT ONS
25
Last Two Fiscal Years
Actual
Fiscal
Contribution
Year
Actuarially
Contribution
as a Percentage
Ended
Determined
Actual Deficiency
Covered
of Covered
September 30,
Contribution
Contribution (Excess)
Payroll
Payroll
2015
$ 4,635,318
$ 4,635,318 $ -
$ 11,784,702
39.33%
2014
4,226,469
4,226,469 -
11,307,953
37.38
25
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
NOTES TO THE SCHEDULE OF CONTRIBUTIONS
September 30, 2015
Last Two Fiscal Years
Valuation date: October 1, 2014
Actuari a1 I y determi ned contri buti on rates are
cal cul aced as of October 1, whi ch i s two year(s) pri or
to the end of the f i scal year i n whi ch contri buti ons are
reported.
M ethods and Assumptions Used to Determine Contribution Rates:
Actuari a1 cost method Entry age normal
Amortization method Leel percentage of payrol I , closed
Remai ni ng amorti zati on peri od 23 years
Asset val uati on method 5 -year smoothed market
I of I ati on 3.5%
Sal ary Increases V ari es by years of servi ce f rom 3.5% to 14.0%
Investment Rate of Return 7.50%
Red rement Age Rates vary by age and years of servi ce
M ortal i ty 1983 Group annui ty M ortal i ty Tabl e f or mal es and
femal es
26
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
SCHEDULE OF INVESTMENT RETURNS
Last Two Fiscal Years
September 30, September 30,
2015 2014
Annual money -weighted rate
of return, net of investment expense 0.78% 9.54%
27
ADDI TI ONAL I NFORM ATI ON
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN
SCHEDULES OF I NVESTM ENT AN D ADMINISTRATIVE EXPENSES
Years ended September 30, 2015 and 2014
Percentage of
plan net position
$ 288,493 $ 132,439 $ 275,620 $ 122,390
0,36% 0.16% 0,35% 0.16%
28
2015
2014
Investment
Administrative
Investment
Administrative
Expenses
Expenses
Expenses
Expenses
Expenses:
Actuary fees
$ -
$ 23,000
$ -
$ 27,054
Admi ni strator's fees
-
28,763
-
27,393
Audit fees
-
14,500
-
11,000
Bank charges
-
322
-
402
Computer suppl i es
-
12,890
-
5,581
Custodial fees
41,036
-
39,836
-
D i rectors' I i abi I i ty insurance
-
9,067
-
9,063
DROP Administration
2,000
-
2,500
-
Dues and subscriptions
-
850
-
600
1 nvestment managers' fees:
ASB Allegiance
32,835
-
15,737
-
STW
-
-
7,628
-
Anchor Capital
60,298
-
45,357
-
DSM Capital
90,360
-
98,733
-
Schroder
28,464
-
32,329
-
Legal fees
-
27,845
-
18,173
Office expenses
-
471
-
809
Office rent
-
7,530
-
6,960
Pension program maintenance
-
1,496
-
2,769
Performance monitor
33,500
-
33,500
-
Semi nars and trai ni ng
-
51705
-
12,586
Percentage of
plan net position
$ 288,493 $ 132,439 $ 275,620 $ 122,390
0,36% 0.16% 0,35% 0.16%
28
Barbara Ladue
From: Kimberly Bartholomew <Kimberly.Bartholomew@crescentcap.com>
Sent: Monday, November 16, 2015 5:29 PM
To: Investor Relations
Subject: IMPORTANT NOTICE - Crescent Direct Lending Levered Fund (Delaware), LP
Attachments: Notice of Security Interest - Delaware.pdf
Dear Investor,
We are sending you this notice as a limited partner in Crescent Direct Lending Levered Fund (Delaware), LP. No action is
required on your part.
As noted in the Amended and Restated Limited Partnership Agreement ("LPA"), and the Confidential Offering
Memorandum, the partnership is using leverage to enhance returns. The primary leverage is provided by an affiliate of
Deutsche Bank ("Deutsche"), secured by the underlying portfolio investments.. To facilitate temporary capital call
flexibility in the future, the fund has recently put in place a smaller capital call facility with Wells Fargo Bank,
N.A. (Wells Fargo) to facilitate additional leverage capability as needed. This Wells Fargo facility is secured by
the unfunded commitments of the limited partners. As set forth in Section 9.13 Credit Facility of the LPA, the
General Partner initially pledged the partnership interests to Deutsche to collateralize its credit facility. These
partnership interests will now be pledged to Wells Fargo.
This letter is a notification that the pledge has occurred, as well as an explanation of what that means to limited
partners.
Note that we are also working to replace the existing Paris -based bank accounts with domestic accounts. This will
simplify the process of funding capital calls by eliminating the need for international wires. We will notify you and
provide instructions once the new accounts are in place.
Please contact 310-235-5901 if you have any questions.
Best regards,
Kimberly Bartholomew, Assistant Vice President I Crescent Capital Group LP 111100 Santa Monica Boulevard, Suite
2000 1 Los Angeles, CA 90025
310-235-5913 directs kimberly.bartholomew@crescentcap.com
CRESCENT DIRECT LENDING LEVERED FUND (DELAWARE), LP
CRESCENT DIRECT LENDING LEVERED, LLC
One Post Office Square, 36th Floor
Boston, MA 02109
To: Each of the Investors of the Pledgor
Date: November 16, 2015
Dear Sir:
NOTICE OF SECURITY INTEREST
We hereby give you notice that pursuant to a security agreement (the "Security Agreement")
dated November 12, 2015, and made by and among Crescent Direct Lending Levered Fund
(Delaware), LP (the "Pledgor Fund"), acting by its general partner, Crescent Direct Lending
Levered, LLC (the "General Partner'), and Carne Global Fund Managers (Ireland) Limited,
acting solely on behalf of CDL Portfolio Fund, a sub -fund of CDL Unit Trust (Ireland) (the
"Pledgee"), each of the Pledgor Fund and the General Partner (each, a "Pledgor"), to the extent
of its respective interest, has granted a security interest in favour of the Pledgee: (i) over,
inter alia, its rights under that certain Amended and Restated Limited Partnership Agreement of
the Pledgor Fund dated 5 September 2014 (the "Partnership Agreement') to make Capital Calls
in respect of Capital Commitments, to issue and enforce Capital Calls for Capital Contributions
with respect to the Unfunded Capital Commitments of the Pledgor Fund's Limited Partners; (ii)
over its rights to receive such Capital Contributions and to enforce the payment thereof pursuant
to the terms of the Partnership Agreement; and (iii) over its rights under the Partnership
Agreement and the Subscription Agreements in and to the Unfunded Capital Commitments of
the Pledgor's Limited Partners; (iv) if applicable, over the unfunded capital commitments of the
Pledgor Fund's feeder funds ("Feeder Funds"), including, without limitation, any and all of its
rights to make calls for capital contributions from such Feeder Funds; (v) if applicable, over each
security agreement executed by a Feeder Fund for the benefit of, or ultimately pledged to, the
Pledgor Fund, all as more fully set out in the Security Agreement. Terms used but not defined
herein shall have the meaning set forth in the Partnership Agreement. The Pledgee may have
further assigned its rights to the foregoing security interest to a third party.
In connection with the foregoing, and on behalf of the Pledgor, all payments due or to become
due with respect to your Unfunded Capital Commitments under and in accordance with the terms
of the Partnership Agreement and your Subscription Agreement shall be made to such account as
is specified in Capital Calls issued by the General Partner or by the Pledgee (or its assignee on its
behalf and in its name) as assignee of the rights of each Pledgor. Any such payments made by
you to an account other than as specified in such Capital Calls shall be considered to have not
been received.
This notice shall be governed by, and construed in accordance with, the laws of the State of
Delaware and is hereby given in accordance with the terms of delivery under the Partnership
Agreement.
r
Yours faithfully
THE PLEDGOR FUND:
CRESCENT DIRECT LENDING LEVERED
FUND (DELAWARE), LP
By: Crescent Direct Lending Levered, LLC,
its General Partner
By: Crescent Capita Gra I;P,
its Member
By:
Name: Michael L. Rogers
Title: Managing Director
THE GENERAL PARTNER:
CRESCENT DIRECT LENDING LEVERED,
LLC
By: Crescent Capital up L
its Member
By:
Name: Michael L. Rogers
Title: Managing Director
cc: Wells Fargo Bank, National Association
1525 W WT Harris Blvd.
Charlotte, NC 28262
Mail Code: D 1109-019
i; Attention: Syndication/Agency Services
Telephone: (704) 590-2706
Facsimile: (704) 590 2790
Email: agencyservices.requests@wellsfargo.com
subscription.finance@wellsfargo.com
Barbara Ladue
From: Barbara Ladue <ladueb@'bbpdpension.com>
Sent: Monday, September 28, 2015 11:48 AM
To: Adam Levinson
Subject: FW: Administrative Rules - Ad Hoc
Attachments: D00092815.pdf
Barb La Due
Pension Administrator
Boynton Beach Police & Fire Pension Funds
Phone: (561) 739.7972
-----Original Message -----
From: Barbara Ladue [mailto:ladueb@bbpdpension.coml
Sent: Monday, September 28,2015 11:23 AM
To: Adam Levinson
Cc: Henderson, Luke (HendersonL@bbfl.us)
Subject: Administrative Rules - Ad Hoc
Adam:
Chave on file the attached (UNSIGNED) Administrative Rules for the Ad Hoc benefit. This is the method that we have
been paying out these benefits each year. My Board Minutes file indicates that there was a Special Sub -Committee
Meeting held @ 8:30 am on 9-1-2011 to discuss Admin Rules for Excess 175 Money. (I did not have any minutes to back-
up this meeting.) not sure if this type meeting that minutes. were required.
Then at our regular meeting of Nov 10, 2011, the Chair (Luke Henderson) moved to adopt the Admin Rules rewritten in
Legal language and the numbers validated by the Actuary. Passed unanimously.
Barb
Barb La Due
Pension Administrator
Boynton Beach Police & Fire Pension Funds
Phone: (561) 739.7972
----Original Message -----
From: Scanner[mailto:faxexecsuites@gmail.com]
Sent: Monday, September 28,2015 11:07 AM
To: BARBARA LADUE
Subject: Send data from MFP07580425 09/28/2015 11:07
Scanned from MFP07580425
Date:09/28/201511:07
Pages:2
j' Resolution:200x200 DPI
BOARD OF TRUSTEES
BOYNTON BEACH FIREFIGHTERS PENSION PLAN
ADN JNISTRATIVE RULES GOVERNING AD HOC SUPPLEMENTAL BENEFITS
In accordancewith the Firefighter Pension Board's administrative authority, the Board of
Trustees adopts the following administrative rules governing the Chapter 175 Ad Hoc
Supplemental Benefit, to be funded exclusively with Chapter 175 premium tax revenue.
1. Background: Ordinance 10-016 created the Ad Hoc Supplemental Benefit (hereinafter the
"Supplemental Benefit"). Pursuant to Section 18-184.2 of the Pension Plan, the Supplemental
Benefit is paid with "available funds" which are funded from "additional premium tax revenues,"
as defined by Section 175.351(1)(1), Florida Statutes. The Supplemental Benefit is payable to
eligible retirees one full year following retirement. Retirement is broadly defined as including
disability, early, normal, DROP or deferred vested retirement. The maximum Supplemental
Benefit is $500 per year of credited service, for each full year of credited service in the Plan, not
to exceed twenty years. Section 18-184.2(c) grants to the Pension Board the ability to adopt
administrative rules to implement the Supplemental Benefit.
2. Maximum Total Distribution: Based on the variability of premium tax receipts and in
order to preserve a stable member contribution consistent with Section 18-180.2, the maximum
annual distribution shall not exceed fifty percent (50016) of the year's available funds. Available
funds shall be determined annually by the actuary after deducting the applicable "base amount"
payable'to fund defined benefits and after recognizing any additional actuarial costs for the year,
as per Section 18-180.2.
Example based on the 2010 Actuarial Report:
Received $990,759
(premium tax revenue for the year)
minus $589,543
(base amount used to fund DB benefits)
minus $43,572
(COLA cost described in 18-180.2)
minus $19,715
(cost due to lower assumed rate)
$337,929
X.5
$168,964
(net available funds for distribution)
3. Actuarial Calculation: The Plan's actuary will determine available funds per retiree using
the attached Calculation Chart. The
actuary shall use a smoothed rate of return rather than the
more volatile market rate of return.
4. Initial Distribution: The first Supplemental Benefit for eligible retirees will be based on
the FYE 2010 actuarial valuation. Lump sum Supplemental Benefits for prior retirees, as set
forth in Section 18-184.2(e), shall be based on the FYE 2005 actuarial valuation, as appropriate.
Members eligible for all future supplemental distributions are not eligible for past distributions.
{00036657.DOCX;1 }
5. Credited Service for Full Years: Partial years of service do not count as credited service
when calculating a member's Supplemental Benefit.
6. Amendments: The Board of Trustees reserves the right to amend this Administrative Rule
from time to time as it deems appropriate. The Board shall retain the right to exercise its
discretion in interpreting this Rule and in resolving any disputes that may arise hereunder.
This rule is effective upon adoption.
Chairman
G" 4Pl//,
Date
(00036657.DOCX;1)
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION SYSTEM
FIREFIGHTERS' PENSION DATA
PAGE 1
REPORTING PERIOD 10/01/2015 TO 01/01/2016
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
=IREMENT
5297
ALLEN,EDWARD
08/1930
02/01/94
MRS. ALLEN
02/1927
3-A
4,464.39
17,857.5
6107
ALTMAN,RAYMOND
11/1962
01/01/13
DAWN ALTMAN
10/1953
3-A
3,609.89
14,439.5
0637
ANDERSON,ROBERT
12/1960
05/01/09
00/0000
1
7,425.87
29,703.4
9555
BELL,DANIEL
10/1955
01/01/98
RONNA R. BELL- DECEASED
06/1954
3-A
3,216.33
12,865.3:
7547
BINGHAM,WILLIAM
12/1953
10/01/09
AISHAH ABDUL AZIZ
04/1964
3-D
4,609.33
18,437.3.
4242
BONOMINI,JAMES
02/1955
01/01/98
PATRICIA BONOMINI
12/1952
3-A
2,913.58
11,654.3:
0362
BORDEN,BOBBY
02/1950
06/01/04
FREDA BORDEN
10/1949
2
8,611.80
34,447.21
1533
BROWN,ROBERT
03/1949
02/01/00
00/0000
1
4,076.38
16,305.5:
0316
CAMPBELL,STEVEN
04/1949
06/01/97
JOAN CAMPBELL
12/1949
3-A
2,384.98
9,539.9:
7839
CAUGHEY,GAYLE
08/1958
08/01/05
GARY CAUGHEY
10/1959
3-A
1,587.13
6,348.5-
2595
CAVANAUGH,WILLIAM
10/1943
01/01/98
ALISON CAVANAUGH
12/1963
1
3,458.01
13,832.0
1622
CROCKETT,DAVID
04/1936
11/01/91
PEGGY CROCKETT
09/1934
3-A
579.23
2,316.9.-
,316.9:9654
9654
CROFT,BRYAN
01/1964
02/01/07
BRENDA CROFT
08/1964
1
831.05
3,324.2,
8948
CROFT,ROBERT
01/1961
07/01/04
CHRISTINE CROFT
03/1962
2
4,508.53
18,034.1-
3953
DEMARCO,JOSEPH
08/1950
12/01/97
DANA DEMARCO
10/1947
3-A
3,205.02
12,820.0
9036
DOLPHIN,ANTHONY
03/1947
04/01/01
PATRICIA DOLPHIN
01/1947
3-B
3,476.21
13,904.8
2671
DUNKELMANN,WILLIAM
10/1941
07/01/95
LYNNE MCKIRDY
07/1951
2
3,103.59
12,414.3
5135
DYPOLD,DEBRA
05/1952
06/01/02
00/0000
2
2,796.14
11,184.5
2513
EBERLY,DEAN
04/1961
07/01/04
CHRISTINE EBERLY
01/1968
2
4,084.58
16,338.3-
1267
EHMKE,BARRY
07/1955
04/01/01
00/0000
2
3,368.39
13,473.5
8000
ESTEVES,EDWIN
04/1953
06/01/04
DIANE S ESTEVES
08/1952
3-A
3,773.22
15,092.8:
3427
FITZPATRICK,MICHAEL
06/1953
10/01/10
LISA HANLEY
09/1950
3-A
6,357.63
25,430.5:
6726
FLUSHING,DENNIS
09/1952
10/01/02
MARY KATHLEEN
02/1957
3-A
6,185.85
24,743.4,
5090
GALE,STEVEN
07/1950
05/01/04
PAMELA GALE
07/1951
3-A
10,221.46
40,885.8
2249
GARCIA,LUIS
05/1966
03/01/13
DAWN ROMEO GARCIA
10/1970
1
4,294.16
17,176.6
7946
GULBRANDSEN,WILLIAM
03/1956
02/01/01
JILL C. GULBRANDSEN
08/1957
2
4,231.13
16,924.5;
0453
HAGG,DIANE
11/1956
02/01/09
00/0000
2
3,306.90
13,227.61
8232
HAGG,WALTER
07/1953
10/01/02
DIANE SOUCY
11/1956
3-A
5,863.16
23,452.6
1678
HERIG,JAMES
05/1945
01/01/98
KATHLEEN HERIG
05/1950
3-A
3,047.04
12,188.1
9190
HERNANDEZ,DEREK
10/1962
12/01/06
CAROLYN ALLAN
06/1967
1
3,994.16
15,976.6
8208
JUTE,RANDALL
04/1958
07/01/04
CAROL JUTE
07/1955
2
4,285.55
17,142.21
8911
KAMIYA,HENRY
04/1944
01/01/98
00/0000
2
5,266.84
21,067.3
7037
KEEFE,MICHAEL
08/1949
01/01/98
CLARA ANN BOWLBY(MOM) 4
03/1928
3-D
4,282.53
17,130.1.-
7,130.1:3307
3307
KEISTER,RONALD
05/1953
10/01/10
KATHERINE KEISTER
01/1957
3-A
9,875.71
39,502.8
N,
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION SYSTEM
FIREFIGHTERS' PENSION DATA PAGE 2
REPORTING PERIOD 10/01/2015
TO 01/01/2016
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
3063
KIGHT,LUDDY
01/1942
01/01/98
SANDRA KIGHT
03/1945
19,700.4,
3-D
4,925.10
5513
KIRCHEN,ALAN
01/1956
10/01/01
00/0000
1
2,975.73
11,902.9:
4840
KNIGHT,KEITH
08/1957
08/01/05
00/0000
1
1,434.05
5,736.2
4746
LAMBERT,PAUL
08/1956
04/01/01
00/0000
2
4,034.11
16,136.4
6246
LEAMON,EDWARD
08/1958
10/01/05
KAREN LEAMON
07/1959
2
4,975.05
19,900.21
5297
LIMAURO,RICHARD
04/1960
07/01/04
DRU LIMAURO
05/1966
2
6,064.49
24,257.9
0505
LIU,DAVID
11/1963
07/01/04
PHILIP LIU(DAD) 4-1-201
04/1931
3-D
7,373.85
29,495.4,
3441
LOWERY,JOHN
01/1953
08/01/93
JERILYN C. LOWERY, WIFE
01/1958
3-A
600.92
2,403.6
9342
MACALPINE,JAIME
04/1979
07/01/24
CHRIS MACALPINE
04/1968
3-A
1,907.87
1414
MACRAE,THOMAS
03/1954
04/01/01
DIXIE MACRAE
09/1954
3-D
3,152.55
.0,
12,610.21
5106
MADIGAN,DOUGLAS
09/1953
03/01/97
LAURIE MADIGAN
02/1961
3-B
3,028.08
12,112.3:
3481
MARTIN MILKINS,CRYS
11/1963
02/01/09
LARRY MILKINS
01/1955
3-D
4,845.86
19,383.4•
9949
MARTIN,JOHN
06/1948
07/01/96
SHARON MARTIN
03/1950
3-A
3,118.47
12,473.8
2833
MCCONNELL,WILLIAM
08/1958
07/01/02
00/0000
1
1,318.30
5,273.21
7801
MITCHELL,F.
10/1927
08/01/85
BLANCHE GEIST, SISTER
00/0000
1
1,475.68
5,902.7:
4289
MORMAN,TIMOTHY
07/1951
03/01/02
SUSAN MORMAN/DECEASED 1
04/1959
2
7,202.62
28,810.4
8524
NESS,JAMES
02/1949
10/01/03
BARBARA L NESS
10/1959
3-B
5,650.56
22,602.2•
1780
NEWELL,DEAN
05/1949
10/01/02
PATRICIA ANNE NEWELL
11/1952
3-A
3,823.51
15,294.0
0868
NEWMAN,ALLEN
11/1962
02/01/11
LISA P. NEWMAN
03/1968
3-C
5,075.49
20,301.9
7918
OVERBY,KENNETH
12/1956
01/01/98
KATHERINE OVERBY
09/1956
3-B
3,701.17
14,804.6
1627
OXENDINE,PHILIP
01/1953
07/01/00
MICHELE OXENDINE
02/1954
3-B
3,844.77
15,379.0
9772
PATTERSON,PERRY
12/1950
02/01/96
MRS. PATTERSON
12/1953
1
3,013.69
12,054.7
6787
PICKLESIMER,ALAN
11/1955
01/01/98
DEBRA PICKLESIMER
09/1954
3-A
2,486.47
9,945.8
1006
PLAYNE,MATTHEW
09/1957
07/01/04
GERALYN PLAYNE
02/1959
3-A
5,320.21
21,280.8
8458
PODRAY,ANDREW
09/1952
04/01/01
ROZANNA PODRAY
03/1952
3-D
4,052.13
16,208.5:
8401
QUINN,KEVIN
04/1957
10/01/04
JEANNIE KASMER QUINN
06/1957
2
6,068.69
24,274.7
4065
RAHRIG,GILBERT
04/1939
05/01/95
WIFE - BARBARA
00/0000
2
3,088.93
12,355.7-
8312
REHR,ELIZABETH
04/1968
02/01/11
BOB REHR
04/1966
1
4,313.36
17,253.4•
3899
REITZ,THOMAS
07/1959
10/01/05
00/0000
2
4,758.38
19,033.5:
6678
RHODEN JR.,JAMES
07/1955
01/01/98
00/0000
1
4,234.24
16,936.9
0134
ROTHROCK,EDWARD
03/1950
04/01/01
00/0000
2
3,673.44
14,693.7
4097
RUDY,RONALD
05/1966
07/01/10
KAREN RUDY
05/1967
3-A
8,439.92
33,759.6;
9949
SEARS,ROBERT
10/1951
02/01/01
PATTI SEARS
01/1956
3-B
3,118.12
12,472.4
6451
SEIDER,GREGG
04/1956
05/01/06
LAWREN SEIDER
12/1960
3-A
923.39
3,693.5
2403
SHEMWICK,THOMAS
04/1942
05/01/96
GAYLE SHEMWICK
07/1941
3-A
3,401.90
13,607.61
CITY OF BOYNTON BEACH FIREFIGHTERS PENSION SYSTEM
FIREFIGHTERS' PENSION DATA
Social
Names
Date of
Date of
Security
Date
Birth
Retire/
Number
Last, First, I.
5,585.29
Disab.
5020
SIMPSON,GEOFFREY
05/1960
12/01/06
8086
SMOLLON,MICHAEL
08/1951
07/01/02
9257
SNOW,MARK
12/1952
04/01/01
7188
STARKOSKI,SHAWN
04/1951
08/01/00
2275
TEMPERILLI,MICHAEL
09/1961
02/01/11
8763
THYNG,BRADLEY
05/1964
03/01/09
8386
TRACY,BRENTON
08/1968
09/01/19
8477
VALENTINE,TIMOTHY
10/1958
07/01/04
1196
VICKI,RODNEY
01/1954
01/01/98
8790
WITT,JAMES
01/1962
09/01/10
6344
WOZNICK,MARK
09/1951
07/01/04
ISABILITY
0849 WANDELL,ERIC 06/1965 11/01/07
Disability
Code
PAGE 3
REPORTING PERIOD 10/01/2015 TO 01/01/2016
Total
Pens.
Benef.
Received
Birth
Name of Beneficiary
Date
3-B
6,484.85
JEAN SIMPSON
10/1955
5,585.29
00/0000
CATHERINE SNOW
12/1955
MARGARET STARKOSKI
04/1946
NANCY TEMPERILLI
12/1962
1
00/0000
KERSTIN TRACY
06/1966
CAROL COLON VALENTINE
1 10/1960
SHARON GOLDEN VICKI
02/1952
JOYCE WITT
11/1939
7,000.34
00/0000
Total
Pens.
Monthly
Received
Opt.
Pension
This Yr
3-B
6,484.85
25,939.4,
2
5,585.29
22,341.1
3-A
3,436.19
13,744.7
3-B
4,073.29
16,293.1
1
5,628.83
11,257.6
2
7,023.94
28,095.7
3-A
2,980.89
.0,
3-A
7,000.34
28,001.3
3-D
3,145.81
12,583.2
1
9,124.29
36,497.1
2
4,697.97
18,791.8
Total Retirement 1,344,781.54
LOD ROSEANNE WANDELL 09/1972 3-A 3,481.87 13,927.4
Disability 13,927.48
ENEFICIARY
7853
DUFFY,CAROLYN
04/1942
4-A
1,307.88
5,231.5:
7944
KINBACHER,LINDA
03/1949
3-A
3,292.54
13,170.1
7680
KNUTH,GLADYS
07/1937
3-A
1,209.79
4,839.1
9568
EUTIN,ARLEEN
09/1963
1
2,494.55
9,978.2,
8640
MANNING,ALICE
07/1928
3-A
1,345.18
5,380.7:
9653
RICHARDSON,MARTHA
06/1941
3-D
1,908.78
7,635.1-
2829
SISKO,ANNA
01/1941
3-A
2,434.05
9,736.2,
9298
WOJCIECHOWSKI,CECIL
02/1960
3-A
4,810.33
19,241.3:
Death
75,212.40
NUMBER OF RETIRED EMPLOYEES ON THIS REPORT: 81
TOTAL PENSION PAYMENTS 1,433,921.42
CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN
September 30, 2015
ROR
Inflation
7.50 %
3.50
ROR without Inflation 4.00 %
Ref. GASB 67, Illustration, pages 77, 78 and 79.
Long -Term
Target
Expected Real
GASB 67
Allocation
Asset Class
Rate of Return
Proof
45.00%
Domestic equity
5.20 %
2.33%
15.00
International equity
2.40
.43
25.00
Domestic bonds
2.50
.62
5.00
International bonds
3.50
.17
10.00
Real estate
4.50
.45
100%
Total
4.00%
ROR
Inflation
7.50 %
3.50
ROR without Inflation 4.00 %
Ref. GASB 67, Illustration, pages 77, 78 and 79.
Barbara Ladue
From: Barbara LaDue <ladueb@bbpdpension.com>
Sent: Monday, January 25, 2016 3:38 PM
To: Pete.Strong@gabrielroeder.com
Subject: Re: Boynton Fire Pension ;& Police Pension - Quarterly Meetings in February 2016
Thanks Pete it all works for both. No problem
Sent from my Virgin Mobile phone.
—=-- Reply message -----
From: Pete.Strong@gabrielroeder.com
To: <ladueb@bbpdpension.com>
Cc: <HendersonL@bbfl.us>, <AtholT@bbfl.us>, <c100550@gabrielroeder.com>,
<c100560@Rabrielroeder.com>
Subject: Boynton Fire Pension & Police Pension - Quarterly Meetings in February 2016
Date: Mon, Jan 25, 2016 2:49 PM
Hi Barbara,
We do not have all of the infonnation we need yet for Firefighters (there are some data questions pending), so
the 10/1/2015 valuation for Firefighters will not be completed by February P. This means I will not be
planning to attend next week's Firefighters' Board me6ting. I anticipate the valuation report will be completed
in late February / early March. If the Board would like! to schedule a special meeting to review the valuation
report, I am open to that. Otherwise, I will plan to present the firefighters' valuation report to the Board at the
May meeting.
We received the final pieces of information we needed Ifor the Police valuation last week, so we are trying to
complete the 10/1/2015 actuarial valuation report for Police in time for the 2/9 meeting, but we will probably
not have enough time to complete it in advance of the meeting (i.e., I'll probably be bringing the bound copies
of the reports with me to the meeting).. Please include Mme on the agenda for the Police meeting, and we will
complete the valuation report as soon as we can.
Thanks!
-Pete Strong
Peter N. Strong, FSA, EA, FCA, MAAA
Senior Consultant and Actuary
Gabriel, Roeder, Smith & Company
One East Broward Boulevard
Suite 505
;Fort Lauderdale, FL 33301-1804
,Telephone: (954) 527-1616 (ext. 2102)
Direct: (954) 713-2102
Fax: (954) 525-0083
'i,pete.strong@i,zabrielroeder.com
;,The above communication shall not be construed to provide tax advice, legal advice or investment advice.
jl 1
Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.1616 phone
GRS
Consultants &. Actuaries Suite 505 954.525.0083 fax
Ft. Lauderdale, FL 33301-1804 www.gabrielroeder.com
January 22, 2016
Ms. Barbara La Due
Pension Administrator
Renaissance Executive Suites
1500 Gateway Blvd. Suite 220
Boynton Beach, Florida 33426
Re: City of Boynton Beach Municipal Firefighters' Pension Trust Fund
Updated GASB No. 67 Disclosure Information for Fiscal Year Ending September 30, 2015
Dear Barbara:
We have prepared the updated actuarial disclosure information required under Governmental Accounting
Standards Board (GASB) Statement No. 67 for the fiscal year ending September 30, 2015.
The following exhibits were based upon audited financial information as of September 30, 2015, which
was furnished by the Plan's auditor (Davidson, Jamieson & Cristini), as well as information furnished by
the Plan Administrator. If any of this information changes during the auditing process (including benefit
payments, contributions, administrative expenses, or the actual market value of assets as of September
30, 2015), then the following exhibits will need to be revised:
■ Statement of Changes in Employer's Net Pension Liability and Ratios
■ Schedule of the Employer's Net Pension Liability
■ Notes to Net Pension Liability
■ Schedule of Contributions
■ Notes to Schedule of Contributions
■ Sensitivity Analysis
The actuarial valuation of the liabilities has been determined as of the beginning of the year, October 1,
2014, and "rolled forward" to the measurement date, September 30, 2015. Using beginning of the year
valuation of liabilities allows for more timely reporting at the end of the year.
Please refer to our October 1, 2014 Actuarial Valuation Report dated February 20, 2015 for information
related to participant data, economic and demographic assumptions, and benefit provisions.
Please note that there are other items not listed above that will be required in the Plan's financial
statements and/or the City's Comprehensive Annual Financial Report (CAFR) to fully comply with
GASB No. 67 standards. This additional information will need to be provided by the Plans' investment
consultants, accountants or other financial statement preparers.
Required Disclosures
The liability calculations are based upon information furnished by the Plan Administrator for the October
1, 2014 Actuarial Valuation concerning plan benefits, financial transactions, plan provisions, and active
Ms. Barbara La Due
January 22, 2016
Page 2
members, terminated members, retirees and beneficiaries. We reviewed this information for internal and
year-to-year consistency, but did not otherwise audit the data We are not responsible for the accuracy or
completeness of the information provided by the Plan Administrator.
I
The calculations are based upon assumptions regarding future events, which may or may not materialize.
They are also based on the assumptions, methods, and plan provisions outlined in our October 1, 2014
Actuarial Valuation Report. If you have reason to believe that the assumptions that were used are
unreasonable, that the plan provisions are incorrectly described, or that conditions have changed since the
calculations were made, you should contact the author of this letter prior to relying on information in the
letter. This letter may be distributed to other parties only in its entirety.
Future actuarial measurements may differ significantly from the current measurements presented in this
letter due to such factors as the following: plan experience differing from that anticipated by the
economic or demographic assumptions; changes in such assumptions; increases or decreases expected as
part of the natural operation of the methodology used for these measurements (such as the end of an
amortization period, or additional cost or contribution requirements based on the plan's funded status);
and changes in plan provisions or applicable law.
Peter N. Strong and Jeffrey Amrose are members of the American Academy of Actuaries (MAAA) and
meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions
contained herein. The signing actuaries are independent of the Plan sponsor.
To best of our knowledge, the information contained' in this letter is accurate and fairly presents the actuarial
position of the plan as of the valuation date. All calculations have been made in conformity with generally
accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial
Standard Board, and with applicable statutes.
We welcome your questions and comments,
Respectfully submitted,
eter N. Strong, FSA, E AAA /ffrl�'Amrose, EA, MAAA
Senior Consultant & Actu Senior Consultant & Actuary
PS/jc
Enclosures
Gabriel Roeder Smith & Company
SCHEDULE OF CHANGES IN THE EMPLOYER'S
NET PENSION LIABILITY AND RELATED RATIOS
GASB Statement No. 67
Fiscal year ending September 30,
Total pension liability
Service Cost
Interest
Benefit Changes
Difference between actual & expected experience
Assumption Changes
Benefit Payments
Refunds
Other (Increase in Excess State Reserve)
Other (Rollovers into DROP)
Net Change in Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability - Ending (a)
Plan Fiduciary Net Position
Contributions - Employer (from City)
Contributions - Employer (from State)
Contributions - Non -Employer Contributing Entity
Contributions - Members (Including Buyback Contributions)
Net Investment Income
Benefit Payments
Refunds
Administrative Expense
Other (Rollovers into DROP)
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Net Pension Liability - Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage
of Total Pension Liability
Covered Employee Payroll
Net Pension Liability as a Percentage
of Covered Employee Payroll
2015 2014
$ 2,988,536 $ 2,772,724
8,955,215 8,188,369
708,071
(28,363)
1,809,581
-
(4,304,149)
(4,292,070)
(4,622)
(50,673)
259,251
312,239
139,860
343,843
10,551,743
7,246,069
116,027,923
108,781,854
$ 126,579,666 $
116,027,923
$ 3,930,996 $
3,522,147
963,573
1,016,561
1,251,530
1,291,773
282,853
7,187,580
(4,304,149)
(4,292,070)
(4,622)
(50,673)
(132,439)
(122,390)
139,860
343,843
2,127,602
8,896,771
78,279,091
69,3 82,320
$ 80,406,693 $
78,279,091
46,172,973
37,748,832
63.52%
67..47%
$ 11,784,702 $
11,307,953
391.80 % 333.83 %
SCHEDULE OF THE EMPLOYER'S NET PENSION LIABILITY
GASB Statement No. 67
Total Plan Net Position Net Pension Liability
FY Ending Pension Plan Net Net Pension as a % of Total Covered as a % of
September 30, Liability Position Liability Pension Liability Payroll Covered Payroll
2014 $ 116,027,923 $ 78,279,091 $ 37,748,832 67.47% $11,307,953 333.83%
2015 126,579,666 80,406,693 46,172,973 63.52% 11,784,702 391.80%
NOTES TO NET PENSION LIABILITY
GASB Statement No. 67
Valuation Date: October 1, 2014
Measurement Date: September 30, 2015
Methods and Assumptions Used to Determine Net Pension Liability:
Actuarial Cost Method Entry Age Normal
Inflation 3.5%
Salary Increases Varies by years of service from 3.5% to 14.5%
Investment Rate of Return 7.50%
Retirement Age Rates vary by age and years of service
Mortality 1983 Group Annuity Mortality Table for males and females
Other Information:
Notes See Discussion of Valuation Results in the October 1, 2014 Actuarial
Valuation Report
FY Ending
September 30,
2014
2015
Actuarially
Determined
Contribution
SCHEDULE OF CONTRIBUTIONS
GASB Statement No. 67
Actual
Contribution
$ 4,226,469 $ 4,226,469
4,635,318 4,635,318
Contribution Covered
Actual Contribution
Deficiency Employee
as a % of Covered
(Excess) Payroll
Employee Payroll
$ - $ 11,307,953
37.38%
- 11,784,702
39.33%
NOTES TO SCHEDULE OF CONTRIBUTIONS
GASB Statement No. 67
Valuation Date: October 1, 2013
Notes Actuarially determined contribution rates are calculated as of October
1, which is two year(s) prior to the end of the fiscal year in which
contributions are reported.
Methods and Assumptions Used to Determine Contribution Nates:
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period 23 years
Asset Valuation Method 5 -year smoothed market
Inflation 3.5%
Salary Increases Varies by years of service from 3.5% to 14.5%
Investment Rate of Return 7.65%
Retirement Age Rates vary by age and years of service
Mortality 1983 Group Annuity Mortality Table for males and females
Other Information:
Notes See Discussion of Valuation Results on Page 1 of the October 1, 2013
Actuarial Valuation Report
SINGLE DISCOUNT RATE
GASB Statement No. 67
A single discount rate of 7.50% was used to measure the total pension liability. This single discount
rate was based on the expected rate of return on pension plan investments of 7.50%. The projection
of cash flows used to determine this single discount rate assumed that plan member contributions will
be made at the current contribution rate and that employer contributions will be made at rates equal
to the difference between the total actuarially determined contribution rates and the member rate.
Based on these assumptions, the pension plan's fiduciary net position was projected to be available to
make all projected future benefit payments of current plan members. Therefore, the long-term
expected rate of return on pension plan investments (7.50%) was applied to all periods of projected
benefit payments to determine the total pension liability.
Regarding the sensitivity of the net pension liability to changes in the single discount rate, the
following presents the plan's net pension liability, calculated using a single discount rate of 7.50%,
as well as what the plan's net pension liability would be if it were calculated using a single discount
rate that is 1 -percentage -point lower or 1 -percentage -point higher:
Sensitivity of the Net Pension Liability to the Single Discount Rate Assumption
Current Single Discount
1% Decrease Rate Assumption 1% Increase
6.50% 7.50% 8.50%
$ 59,627,317 $ 46,172,973 $ 34,984,486
_ _=KLAUSNER_
" �KAUFiYit1N
;JENSEN fFf.
-LEV INSON =,
Writer's e-mail: adam n.robertdl:lausner.com
November 20, 2015
Luke Henderson, Chair
Boynton Beach Firefighter Pension Plan
Renaissance Executive Suites
1500 Gateway Boulevard, Suite 220
Boynton Beach, FL 33426
Re: Boynton Beach Firefighter Pension Plan
Our File No. 900334
Dear Chairman Henderson:
You have inquired whether a proposed memorandum of understanding ("MOU") or
"Mutual Consent Agreement'" between the City of Boynton Beach and Local 1891 could be
implemented by°the Board of Trustees of the Firefighter Pension Pian ("Plan"). Based on my
understanding of the proposed::1VIOLJ, the =answer is yes.
if approved by the parties, the Board could allocate $333,333.33 per year of unallocated
Chapter 175 premium taxes over the three-year term of the pending collective bargaining
agreement.("CBA") to pay down the Klan's unfunded actuarial liability ("UAL"). These
proposed reductions, in unallocated premium taxes would not -result in a direct offset to the City's
annual contribution requirement, but would instead be applied to reduce the Plan's UAL. This
will in turn have an indirect impact on future year City contribution requirements, by lowering
amortization payments on the UAL.
As you know, Senate Bill 172 ("SB 172") allows labor and management to mutually
agree on the use of unallocated premium tax revenue in their city. See Section 175.35 1(1),
Florida Statutes. To the extent the Board has not yet approved the Plan valuation for this year,
the appropriate adjustments could be made for the current fiscal year, as per the parties' pending
agreement.
Attached hereto is an email from the Plan's actuary summarizing a procedure for doing
so. This item could be placed on the Board's next agenda for implementation. Of course, the
Board would need a copy of the finalized MOU or CBA.
7080 NORTHWEST 4TH STREET, PLANTATION, FLORIDA 33317
PHONE: (954) 916-1202 o FAX: (954) 916-1232
www.robertdklausner.com
Feel free to reply with any questions. Congratulations to the parties on their tentative
agreement. Wishing everyone a healthy and meaningful Thanksgiving holiday.
Respectfully,
Adam P. Levinson, Esq.
APUyv
Enclosure
cc: Julie Oldbury, Director of HR & Risk Management
Dean Kinser, President, Local 1891
Jim Cherof, Esq.
Mark Floyd, Esq.
Barbara LaDue, Administrator
2
From: PeteStrong@gabrielroedercom
Sent: Thursday, November 19, 2015 4:59 PM
To: Adam Levinson
CG c100560@gabdelroeder.com
Subject Boynton Fire - Use of Excess State Reserve
Hi Adam,
Based on our phone conversation this morning, it is my understanding that the City of Boynton Beach and the
Firefighters' Union have mutually consented to keep the annual amount of State money to be used towards the
City's contribution requirement the same at $704,322 until it is recalculated (per the once every three years
cycle to reflect the current cost of the COLA). This recalculation is due this upcoming year, incidentally (to
recalculate the amount of State money to be used in FY 2016).
The parties have also agreed to apply $1,000,000 of the Accumulated Excess State Reserve towards reducing
the unfunded actuarial liability in increments of $333,333 per year for three years. The first $333,333 will be
applied to the unfunded actuarial liability as of the October 1, 2015 actuarial valuation date. The second and
third increments ($333,333 and $333,334) will be applied as of October 1, 2016 and October 1, 2017 actuarial
I
aluation dates, respectively.
These reductions in the Accumulated Excess State Reserve will not result in direct offsets to the City
contribution requirement, but will instead be applied to directly reduce the unfunded actuarial liability. They
will in turn have a small decreasing impact on future years' required City contributions because the
amortization payments on the (reduced) unfunded liability will be somewhat lower.
The Accumulated Excess State Reserve balance was $2,723,916 as of October 1, 2014. We do not yet know
how much of this was used for ad hoc benefit payments in 2015. The actual amount of State money received in
August 2015 was $963,573, which is $259,251 higher than the base amount of $704,322. Therefore, the
Accumulated Excess State Reserve as of October 1, 2015 will be increased by $259,251 and then reduced by
$333,333 (used to reduce the Plan's unfunded actuarial liability at October 1, 2015), for a net decrease in the
Accumulated Excess State Reserve of $74,082.
Please let me know if my understanding is correct or if you have questions.
Thank you!
-Pete Strong
;'Peter N. Strong, FSA, EA, FCA, MAAA
Senior Consultant and Actuary
Gabriel, Roeder, Smith & Company
One East Broward Boulevard
Suite 505
Fort Lauderdale, FL 33301-1804
Telephone: (954) 527-1616 (ext. 2102)
Direct: (954) 713-2102
Fax: (954) 525-0083
pete.stroneMeabrielroeder.com
The above communication shall not be construed to provide tax advice, legal advice or investment advice.
Notice ofCanfidendall y,
This tnunsmLuton contains information that may be confidential and dial may also be privileged. Untessyou are the intended reciplent of the message (or authorized to
receive i►for the intended recipient), you nary not ropy, forward, or otherwise use It, or disclose its contents to anyone else. D'you have received this transmission in
error, please notify the sender immediately and delete it from your system.
APlease consider the environment before printing this e-mail.
TO:
FROM:
RE:
DATE:
n�
Alis IR'
MEMORANDUM
ALL 175-185 PLANS
KLAUSNER KAUFMAN JENSEN & LEVINSON
INSURANCE PREMIUM TAX (IPT) DATABASE REMINDER
DECEMBER 5, 20015
Following the adoption of SB 172 and the renewed focus on premium taxes, it is useful to update
clients on the ways of maximizing your receipt -of revenue, whether the premium taxes are used to
offset City contributions or are being paid into a share plan. In other words, the purpose of this
memorandum is to provide a friendly reminder about low hanging fruit, the collection of which is
mutually beneficial for the retirement system and the city/plan sponsor,
This memo will describe what can be done to improve the collection of Insurance Premium Tax
(IPT) revenue, which is dedicated for Chapter 175 and Chapter 185 pension plans, and
communications services tax (CST) revenue which is payable to cities. Our informal sampling
of cities in the IPT/CST database suggests that many cities have not updated the database for several
years.
In particular, we have determined that IPT database shortcomings often arise in the following three
instances: 1) municipal annexations, 2) new construction on previously undeveloped land, and 3)
areas under which police or fire services are being contractually provided by inter -local agreement.
In sum, it is not safe to assume that the database is automatically registering your recent annexations,
new construction or inter -local service boundaries. This is particularly true if there has been tuinover
in your city in the positions responsible for working with the Department of Revenue, as the IPT
database contact person.
00064947. WPD; l
7050 NORTHWEST 4TH STREET, PLANTATION, FLORIDA 33317
PHONE: (954) 916-1202 o FAX: (954) 916-1232
www.robertdklausner, com
What can you do?
1) Provide a copy of this memo to your city's assigned IPT database contact person. A copy of
the Department of Revenue's contact list is attached, which should contain the name,
telephone number and email address for your city's assigned IPT contact person.
2) Pay attention to any annexations during the past several years. Our office is happy to help
verify that the new properties have been properly added into the database;
3) Periodically use the https://pointmatch.state.fl.us website to independently verify that city
addresses are included in the database. A copy of the online "tax and address lookup" tool.
is attached.
4) Explain to your city that the proper registration of correct municipal boundaries, addresses
and police/fire codes is in the mutual interest of your pension plan and the city. Because the
identical database is used to allocate CST taxes to cities, as well as IPT taxes to the pension
plans, it is in the collective interest of both the plans and plan sponsors that the database is
being correctly updated and periodically monitored.
If the attached list doesn't provide a contact for your city, it is important to make sure that
a contact person is assigned and trained to work with the database;
Our office is available to answer any questions on this subject.
00064947.WPD;1
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Raducci
305-466-8920
braducci@cityofaventura.com
AVON PARK
Allison
Jacobs
863-452-4409
ajacobs@avonpark.cc
BAL HARBOUR
Christopher
Wallace
305-866-4633 x329
cwallace@balharbour.org
BALDWIN
Lula
Hill
904-266-5031
(hill@baidwinfl.com
BARTOW
Andrea
Henley -Pratt
863-S34-6816
apratt.finance@cityofbartow.net
BARTOW
DAVID
WRIGHT
863-534-0100 x1349
dwright.finance@cityofbartow.net
BASCOM
Chrystal
Bryan
850-569-2007
Townofbascom@centurylink.net
BAY HARBOR ISLANDS
Alan
Short
305-866-6241
ashort@bayharborislands.net
BELL
Dan
Cavanah
352-463-6288
townmanager@townofbellflorida.com
BELLEAIR BLUFFS
DEBRA
SULLIVAN
727-584-2151
DSULLIVAN@BELLEAIRBLUFFS-FL.GOV
BELLEAIR SHORE
Bonnie
Dhonau
727-593-9296
bonnie@myindianshores.com
BELLEAIRSHORE
John
Robertson
727-593-9296
jroberts@tampabay.rr.com
BELLEVIEW
Richard
Webb
352-671-8460
richard.webb@marioncountyfl.org
BEVERLY BEACH
DONNA
FRANCIS
386-439-6888
obeverlybeacht@cfl.rr.com
BLOUNTSTOWN
Traci
Hail
850-674-5488
thall@blountstown.org
BOCA RATON
Patricia
White
561-393-7853
pwhite@ci.boca-raton.fl.us
BONIFAY
Jeri
Gibson
850-547-4238
cityofbonifay.jeri@embargmaii.com
BONITA SPRINGS
Matt
Feeney
239-949-6246
matt.feeney@cityofbonitasprings.org
BONITA SPRINGS
Brenda.
Reetz
239-949-6271
brenda.reetz@cityofbonitasprings.org
BOYNTON BEACH
ZBOYNTON
John
McNally
561-742-6073
mcnallyj@bbfl.us
BEACH
Terri
Owens
561-742-6077
owenst@bbfl.us
BRADENTON
Sharon
Beauchamp
941-932-9442
sharon.beauchamp@cityofbradenton.com
BRADENTON
Tatiana
Gonzalez
941-932-9403
tatiana.gonzalez@cityofbradenton.com
BRADENTON BEACH
Shannon
Ansbro
941-748-4501 x3415
shannon.ansbro@mymanatee.org
BRANFORD
Donna
Hardin
386-935-1146
townofbranford@windstream.net
BRINY BREEZES
Carol
Lang
561-272-5495
brinytowncierk@yahoo.com
BRISTOL
Robin
Hatcher
850-643-2261
rmh.cityofbristol@fairpoint.net
BROOKSVILLE
JESSICA
HAYDEN
352-754-4190 x25015
jhayden@hernandocounty.us
BROOKSVILLE
Darlene
Marshall
352-754-4190 x25161
dmarshali@hemandocounty.us
.N
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,I
c w 174 Ip
V ,:,YPil
ORDINANCE NO. JO — O 1 G
AN ORDINANCE OF THE CITY OF BOYNTON BEACH,
FLORIDA, CREATING SECTION 18-184.2 OF THE
FIREFIGHTERS' RETIREMENT PLAN PROVIDING
FOR THE PAYMENT OF A ONE TIME
SUPPLEMENTAL BENEFIT FOR RECENT RETIREES
AND AN AD HOC BENEFIT FOR FUTURE RETIREES,
TO BE FUNDED WITH AVAILABLE CHAPTER 175
PREMIUM TAX REVENUE; PROVIDING FOR
CONFLICTS; CODIFICATION AND AN EFFECTIVE
DATE.
WHEREAS, the City of Boynton Beach Florida sponsors a retirement plan and trust
fund for firefighters pursuant to Chapter 175, Florida Statutes;
WHEREAS, the Board of Trustees of the Boynton Beach Firefighters' Retirement
Plan desires to amend the City Code to provide an annual ad hoc supplemental benefit for
future retirees and a lump sum supplemental benefit for recent retirees, funded exclusively
with available Chapter 175 premium tax revenue;
WHEREAS, the Board of Trustees of the Boynton Beach Firefighters' Retirement
Plan recognizes that Chapter 175 premium tax revenue can only be used for firefighter
pension benefits and cannot be used for any other purposes;
WHEREAS, payment of these supplemental payments will not create any actuarially
unfunded liabilities for the City; and
WHEREAS, the City Commission has determined this amendment will benefit the
citizens and firefighters of the City of Boynton Beach;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
THE CITY OF BOYNTON BEACH, FLORIDA:
Section 1: Section 18-184 is hereby created to read as follows:
Page 1 of 4
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Section 18-154.2 Ad Hoe Supplemental Benefit
(a) Supplemental Benefit
"Available funds" shall be used to nay an "extra benefit" as set forth in this Section from
"additional premium tax revenues" as defined by Section 175 351(1)(a) Florida Statutes An
Ad Hoc supplemental benefit shall be paid annually, following one full ear of retirement
(disability, early or normal DROP or deferred vested retirement) to eligible retirees who
have entered pay status. After the Board approves payment the distribution shall be made by
the end of the second calendar quarter.
(b) Using available funds an Ad Hoc supplemental benefit shall be paid to each eligible
retiree who retires after the adoption of this ordinance provided that additional premium tax
revenue is available. For purposes of this section eligible retiree shall mean any member who
is currently employed and future members who retire after earning ten or more years of actual
service, including DROP participants Any Ad Hoc supplemental benefits payable under this
Section to active DROP Darticipants shall be paid into a member's DROP account beginning
one year after entering DROP.
(c) Calculation of Ad Hoc Benefit
Each eligible retiree shall receive a distribution of available funds of up to five hundred
dollars ($500) per year of credited service for each year of credited service in the plannot to
exceed twenty years. The City delegates to the Pension Board the ability to adopt
administrative rules to implement this ordinance
(d) Calculation of available funds:
On the date of adoption of this ordinance the pension plan provides for a twelve percent
(12%) member contribution rate Any future increases in the member contribution rate over
Page 2 of 4
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twelve percent (12%), including but not limited to COLA costs described in Section 18-180.2,
shall first be deducted from available funds Prior to pang Ad Hoc supplemental benefits
the availability of additional premium tax revenues and available funds shall be confirmed in
writing by the Pension Board's actuary From time to time the Pension Board ma
recommend adiustments to the calculation formula based on the projected status of available
funds.
(e) Lump Sum Supplemental Benefit for Eligible Recent Retirees
Available funds shall also be used by the Board to gay a lump sum supplemental benefit to
recent retirees who separated from service on or after October 1 2005 but prior to the
ado tion of this ordinance. The lump sum benefit shall be calculated based on the number of
years of service between October 1 2005 and retirement The lump sum shall be paid in
annual installments corresponding to the number of years of service worked subsequent to
October 1, 2005. Such retirees shall not be eligible for future Ad Hoc supplemental benefits
(fl Non -Guarantee of Benefits
Prior to pavment of any benefit under this Section eligible retirees shall acknowledge in
writing that they have no right title or interest in Ad Hoc supplemental benefits in any future
year. Eligible retirees shall further acknowledge that they have no expectation in any future
Ad Hoc supplemental benefits since there may be years where no Ad Hoc supplemental
benefit is paid, based on the availability of additional premium tax revenue Eligible retirees
shall specifically acknowledge that available funds and additional premium tax revenues may
be used for other purposes in the future as determined by the collective bargaining Rrocess
Section 2: That all Ordinances or parts of Ordinances in conflict herewith be and
the same are hereby repealed.
Page 3 of 4
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Section 3: Should any section or provision of this Ordinance or portion hereof,
any paragraph, any sentence, or word be declared by a court of competent jurisdiction to be
invalid, such decision shall not affect the remainder of this Ordinance.
Section 4: Authority is hereby granted to codify this Ordinance.
Section 5: This Ordinance shall become effective immediately upon passage.
FIRST READING this 610 day of LL, , 2010.
Y A4
2010.SECOND, FINAL READING AND PASSAGE this a day of -r' ,
_
CITY OF
,,BOYNTON BEACH, FLORIDA
ATTEST:
/ .....- / 1 O r 4
Janit M. Prainito, MMC
— William Orlove
Page 4 of 4
zman
• j ,S. Gabriel Roeder Smith U Company One East Broward Blvd, 954.527,1616 phone
Consultants 8c Actuaries Suite 505 954.525.0083 fax
Ft. Lauderdale, FL 33301.1827 wwwgabrielroeder.com
May 12, 2010
Ms. Barbara La Due
Pension Administrator
Renaissance Executive Suites
1500 Gateway Blvd. Suite 220
Boynton Beach, Florida 33426
Re: City of Boynton Beach Municipal Firefighters' Pension Trust Fund
Dear Barbara:
We have reviewed the proposed ordinance received on May 12, 2010 pertaining toad hoc supplemental
benefits. In our opinion, this ordinance would have no significant actuarial impact on the Plan.
Under the proposed ordinance, certain retirees would be eligible to receive annual distributions based on a
non-discriminatory set of administrative procedures. The distributions would be paid from excess premium
tax revenue. Since the excess premium tax revenue is designated for plan improvements and is therefore not
considered as available to satisfy funding requirements, the use of these funds does not impact the funding
requirements for the Plan.
A copy of this letter along with the proposed ordinance should be sent to the Division of Retirement before
second reading of the ordinance.
We welcome your questions and comments.
Sincerely yours,
r
J. Stephen PalmquistIAA
Senior Consultant and Actuary
JSP/dh
Cc: Adam Levinson
MAY 4 2010
DSM CAPITAL PARTNERS LLC INVOICE
116 Radio Circle Drive, Suite 200, Mt. Kisco, NY 10549 Tel: (914) 242 -1900
19 -Jan -16
Invoice No: 16249
Luke Henderson
City of Boynton Beach Municipal Firefighters Pension
Trust Fund
1500 Gateway Boulevard, Suite 220
Boynton Beach, FL 33426
Billing Period: FROM 01/01/2016 TO 03/31/2016
Account Name
City of Boynton Beach Municipal Firefighters Pension Trust Fund
Portfolio Value
................................................
$10,992,505
Amount Due .....................................................
$23,735.95
FEE CALCULATION
% of
Annual Rate
Rate
Assets Under Management
Fee
1.0000%
0.25
On the first: 5,000,000
12,500.00
0.7500%
0.25
On the next: 5,992,505
11,235.95
Total
$23,735.95
To wire payment:
JP Morgan Chase
ABA #: 021000021
A/C Name: DSM Capital Partners LLC
A/C #:3241067005
Klausner, Kaufman, Jensen & Levinson
A Partnership of Professional Associations
Attorneys At Law
7080 N.W. 4th Street
Plantation, Florida 33317
Tel. (954) 916-1202
Fax (954) 916-1232
BOYNTON BEACH FIREFIGHTERS
Attn: MRS. BARBARA LA DUE, ADMIN.
1500 GATEWAY BOULEVARD, SUITE 220
BOYNTON BEACH, FL 33426
For Legal Services Rendered Through 12/31/15
CLIENT: BOYNTON BEACH FIREFIGHTERS PENSION FUND
MATTER: BOYNTON BEACH FIREFIGHTERS - GENERAL FILE
Professional Fees
www.robertdklausner.com
Tax I.D.: 45-4083636
December 31, 2015
Bill # 17633
BOYNTON
:900334
Date
Description
Hours
Amount
12/03/15
PREPARED MEMO RE IPT DATABASE
0.30
90.00
12/07/15
DRAFT JOINT RFP FOR ADMINISTRATOR
1.20
360.00
12/08/15
REVIEW AND REVISE RFP FOR ADMINISTRATOR
1.50
450.00
12/09/15
ATTENTION TO RFP; DRAFTED EMAILS
0.70
210.00
12/09/15
REVIEW AND REVISE RFP; REVIEW ACTUARIAL
1.50
450.00
VALUATION FOR DEMOGRAPHICS; EMAIL TO A.
LEVINSON
12/11/15
ATTENTION TO RFP; REVIEW FILE
0.50
150.00
12/15/15
REVIEW EMAIL RE HOOGART COORDINATION
0.50
150.00
ISSUES; REVIEW EMAIL RE RFP
12/15/15
REVIEW STATE REPORT AND SB 534 DATA
0.30
90.00
12/15/15
REVIEWAND REVISE RFP FOR ADMINISTRATOR
0.20
60.00
PER EMAILS
12/16/15
RECEIPTAND REVIEW EMAIL FROM STRONG RE
0.20
60.00
HOGGART
12/17/15
DRAFTED AUDITOR LETTER; REVIEW FILE
1.00
300.00
12/23/15
PREPARE LIST OF POTENTIAL ADMINISTRATORS
0.50
150.00
FOR RFP MAILING LIST
12/30/15
CALL TO CHAIR; REVIEW FILE RE RFP
0.50
150.00
12/30/15
ATTENTION TO FILE RE PENDING DISABILITIES
0.50
150.00
Total for Services
9.40
$2,820.00
Continued ...
Client: BOYNTON BEACH FIREFIGHTERS PENSION FUND December 31, 2015
Matter: 900334 - BOYNTON BEACH FIREFIGHTERS - GENERAL FILE Page 2
CURRENT BILL TOTAL AMOUNT DUE $ 2,820.00
Past Due Balance —®' 7,012.50
AMOUNT DUE $9,832.50
F' -7 -
Klausner,
.
Klausner, Kaufman, Jensen & Levinson
A Partnership of Professional Associations
Attorneys At Law
7080 N.W. 4th Street
Plantation, Florida 33317
Tel. (954) 916-1202 www.robertdklausnet.com
Fax (954) 916-1232 Tax I.D.: 45-4083636
BOYNTON BEACH FIREFIGHTERS November 30, 2015
Attn: MRS. BARBARA LA DUE, ADMIN. Bill # 17511
1500 GATEWAY BOULEVARD, SUITE 220
BOYNTON BEACH, FL 33426
For Legal Services Rendered Through 11/30/15
CLIENT: BOYNTON BEACH FIREFIGHTERS PENSION FUND :BOYNTON
MATTER: BOYNTON BEACH FIREFIGHTERS - GENERAL FILE :900334
Professional Fees
Date
Description
Hours Amount
11/02/15
REVIEW FILE RE PENDING ISSUES AND EMAILS
1.00 300.00
11/03/15
REVIEW FILE; DRAFTED EMAILS TO STRONG AND
0.50 150.00
LADUE RE PENDING MATTERS
11/03/15
PREPARATION FOR BOARD MEETING
0.70 210.00
11/04/15
ATTENDED BOARD MEETING
5.50 1,650.00
11/04/15
RESEARCH RE HAGGART; CONFERRED WITH
0.50 150.00
JENSEN
11/05/15
PHONE CONFERENCE WITH SMELTZER AND
2:00 60.0.00
WEST; REVIEWED.FILE; REVISING CONTRACT
11/06/15
DRAFTED EMAIL TO SMELTZER; REVIEW FEE
0.20 60.00
EXHIBIT
11/09/15
PHONE CONFERENCE WITH WEST AND
1.50 450.00
SMELTZER; DRAFTED EMAIL TO LUKE; REVIEW
CONTRACT AND DOCS
11/12/15
RECEIPTAND REVIEW EMAIL FROM LADUE; CALL
1.30 390.00
TO STRONG; REVIEW CALCULATIONS; DRAFTED
EMAIL TO BARBARA RE HOGGATT; REVIEW FILE
11/17/15
REVIEW EMAILS FROM LADUE AND WEST RE
0.10 30.00
CUSTODIAN TRANSFER
11/20/15
DRAFTED LEGAL OPINION RE PENDING MOU
1.00 300.00
11/20/15
RECEIPTAND REVIEW EMAIL FROM PETE
1.00 300.00
STRONG; CALL TO STRONG AND HENDERSON;
REVIEW EMAIL FROM.HENDERSON
Total for Ser ices ` ' . ' ...' ` '
r
15.30 $4,590.00
Continued ...
Client: BOYNTON BEACH FIREFIGHTERS PENSION FUND November 30, 2015
Matter: 900334 - BOYNTON BEACH FIREFIGHTERS - GENERAL FILE Page 2
Costs Continued...
Date Description Amount
PHOTOCOPIES thru 11/30/15 22.50
Total Costs $22.50
CURRENT BILL TOTAL AMOUNT DUE
Past Due Balance
AMOUNT DUE
$ 4,612.50
��-- 2,400.00
t
$7,012.50
C7""
Klausner, Kaufman, Jensen & Levinson
A Partnership of Professional Associations
Attorneys At Law
7080 N.W. 4th Street
Plantation, Florida 33317
Tel. (954) 916-1202 www.robertdklausner.com
Fax (954) 916-1232 Tax I.D.: 45-4083636
BOYNTON BEACH FIREFIGHTERS October 31, 2015
Attn: MRS. BARBARA LA DUE, ADMIN. Bill # 17368
1500 GATEWAY BOULEVARD, SUITE 220
BOYNTON BEACH, FL 33426
For Legal Services Rendered Through 10/31/15
CLIENT: BOYNTON BEACH FIREFIGHTERS PENSION FUND :BOYNTON
MATTER: BOYNTON BEACH FIREFIGHTERS - GENERAL FILE :900334
Professional Fees
Date
Description
Hours Amount
10/05/15
DRAFTED EMAIL TO LADUE; REVIEW FILE
0.50 150.00
10/05/15
FINALIZED LETTER TO CITY RE SB 172
2.00 600.00
10/07/15
DRAFTED EMAIL TO ACTUARY; REVIEW FILE
1.00 300.00
10/08/15
REVIEW REVISED LETTER; DRAFTED EMAIL;
1.00 300.00
REVIEWED RFP
10/09/15
REVIEW FILE; DRAFTED EMAILS
0.50 150.00
10/13/15
PREPARATION FOR PHONE CONFERENCE;
1.50 450.00
ATTENDED PHONE CONFERENCE WITH STRONG
AND HENDERSON
10/28/15
REVIEW AGENDAAND FILE
0.50 150.00
10/29/15
REVIEW EMAILS; REVIEW FILE
1.00 300.00
Total for Services
8.00 $2,400.00
CURRENT BILL TOTAL AMOUNT DUE
$ 2,400.00
Past Due Balance
.�.> 8,190.00
AMOUNT DUE
-$44-,690-00
dpl
C Gabriel, Roeder, Smith & Company
"XXaConsultants & Actuaries
One East Broward Blvd.
Suite 505
Ft. Lauderdale, Florida 33301-1804
(954) 527-1616
Invoice
12/10/2015 418262
Please Remit To:
Attention: Ms. Barbara La Due Dept. # 78009
City.of Boynton Beach Gabriel, Roeder, Smith & Company
Municipal Firefighters Retirement Fund PO Box 78000
Renaissance Executive Suites Detroit, Michigan 48278-0009
1500 Gateway Blvd., Suite 220
Boynton Beach, Florida 33426
Federal Tax ID
.:
Client 100560
For professional actuarial services rendered for the Boynton Beach
Municipal Firefighters Retirement Fund through 11/30/2015
Service purchase calculation for Gary Blocker 450.00
Charges since 9/30/2015 for initial work on the 10/1/2015 Actuarial Valuation; total 492.00
charges to date equal $776
Consulting charges during October and November, primarily concerning Chapter 175 1,582.00
state money, default treatment under Senate Bill 172, and collective bargaining
agreement to allocate a portion of the excess reserve toward the Plan's unfunded liability
Determination of cost impact of the transfer of Gregory Hoggatt from the General 2,948.00
Employees' Pension to the Firefighters' Pension, including the impact on the 10/1/2013
and 10/1/2014 actuarial valuations (impact on City contribution requirements), and the
amount of member contributions owed to the Plan by Mr. Hoggatt; including letter
summarizing calculations dated 11/12/2015 and associated emails/phone calls
Amount Due $5,472
PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU.
Page 1 of 1
Gabriel, Roeder, Smith & Company
Consultants & Actuaries
One East Broward Blvd.
Suite 505
Ft. Lauderdale, Florida 33301-1804
(954) 527-1616
Invoice
Date • ` ` Invoice #- •
1/6/2016 418997
r- P- -
-,-Bill To Please, Rema To
Attention: Ms. Barbara La Due
City of Boynton Beach
Municipal Firefighters' Pension Trust Fund
Renaissance Executive Suites
1500 Gateway Blvd., Suite 220
Boynton Beach, Florida 33426
:Cllent'100560, -. - -
For professional actuarial services rendered for the Boynton Beach
Municipal Firefighters' Pension Trust Fund through 12/31/2015
Service purchase calculation for Ian Finlayson
Divorce calculation (determination of amount payable to former spouse) for Brandon
Brescia (Note: total incurred time charges were $1,733)
Charges since 11/30/2015 for work on the 10/1/2015 Actuarial Valuation; total charges
to date equal $3,229
Amount Due
Dept. # 78009
Gabriel, Roeder, Smith & Company
PO Box 78000
Detroit, Michigan 48278-0009
Federal Tail ID •- -
PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU.
Page 1 of 1
450.00
750.00
2,453.00
$3,653
®\D® IAJVjliIUIN Z5
Post Office Box 12385
Birmingham, Alabama 35202-2385
STATEMENT OF TRUSTEES FEES
INVOICE DATE 01/08/2016
ACCOUNT # MXX696 ACCOUNT NAME: BBFD MASTER
LUKE HENDERSON
1550 GATEWAY BOULEVARD.
SUITE 220
BOYNTON BEACH FL 33426
INVOICE NUMBER 99655 $ 5,00.0.00
SUMMARY OF ACCOUNT
PREVIOUS BALANCE 0..00
CURRENT FEE: 5,000.00
BALANCE DUE $ 5,000.00
FEE CALCULATION DETAIL 10/01/2015 - 12/31/2015
DESCRIPTION/ RATE FEE TOTAL
BASIS
MARKET VALUE PERIOD ENDING 12/31/2015
31,761,589.75 0.0000025000
7,940.40 7,940.40
$ 7,940.40
FEE CALCULATION DETAIL 10/01/2015 - 12/31/2015
ITEM AMOUNT
-------------------------------- ------------
DISCOUNT:
PERIOD ENDING 12/31/2015• 5,756.79 -
TOTAL $ 5,756.79 -
FEE TO MEET REQUIRED MINIMUM:
PERIOD ENDING 12/31/2015 2,816.39
TOTAL $ 2,816.39
SUMMARY OF FEE CALCULATION DETAIL
ITEM AMOUNT
MARKET VALUE 7,940.40
DISCOUNT 5,756.79 -
FEE TO MEET REQUIRED MINIMUM 2,816.39
TOTAL AMOUNT DUE FOR CURRENT PERIOD $ 51000.00
AWT/Alk i 10� L' %-X b V 1 al ►S
Post Office Box 12385
Birmingham, Alabama 35202-2385
STATEMENT OF TRUSTEES FEES
INVOICE DATE 01/08/2016 2
FOR FEE CALCULATION PERIOD 10/01/2015 - 12/31/2015
CONSOLIDATED ACCOUNT PRORATION FOR MASTER ACCOUNT MXX696 BBFD MASTER
ACCOUNT
NAME
PERCENTAGE
AMOUNT CHARGE/BILL FEE
XXXXXX0731
BBFD
ANCHOR AC
34.79251397%
1,739.63 BILL
XXXXXX0740
BBFD
EQUITY MF
0.00000000%
0.00 BILL
XXXXXX0759
BBFD
DSM LCG
34.59266314%
1,729.63 BILL
XXXXXX0777
BBFD
INTL EQ MF
0.04146052%
2.07 BILL
XXXXXX0795
BBFD
SCH CORE FI
26.32163637%
1,316.08 BILL
XXXXXX0802
BBFD
SCH TIPS
3.57975296%
178.99 BILL
XXXXXX0811
BBFD
GLOBAL FI
0.00000000%
0.00 BILL
XXXXXX0839
BBFD
R & D
0.67197304%
33.60 BILL
ACCOUNT
NAME
PERCENTAGE
MARKET VALUE
XXXXXX0731
BBFD
ANCHOR AC
34.79251397%
11,050,655.55
XXXXXX0740
BBFD
EQUITY MF
- 0.00000000%
XXXXXX0759
BBFD
DSM LCG
34.59266314%
10,987,179.75
XXXXXX0777
BBFD
INTL EQ MF
0.04146052%
13,168.52
XXXXXX0795
BBFD
SCH CORE FI
26.32163637%
8,360,170.16
XXXXXX0802
BBFD
SCH TIPS
3.57975296%
1,136,986.45
XXXXXX0811
BBFD
GLOBAL FI
0.00000000%
XXXXXX0839
BBFD
R & D
0.67197304%
213,429.32
FEES ARE DUE
WITHIN 90 DAYS OF THE INVOICE DATE.
ANY FEE NOT
PAID WILL BE CHARGED TO THE TRUST.
IF YOU HAVE ANY QUESTIONS, PLEASE CONTACT
DAVID
R. SMELTZER AT 813-639-3359
Davidson, Jamieson & Cristini, P.L.
1956 Bayshore Blvd.
Dunedin, Fl 34698
Phone # 727-734-5437
Fax # 727-733-3487
Bill To
City of Boynton Beach Firefighters'
Pension Plan
1500 Gateway Blvd.
Suite 220
Boynton Beach, Florida 33426
Invoice
Date
Invoice #
1/4/2016
R7474
Description Amount
Audit of Financial Statements for the year ended September 30, 2015
Progress billing 65000.00
Total $6,000.00
Payments/Credits $0.00
Balance Due $6,000.00
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
i�
INTERCONTINENTAL REAL ESTATE CORPORATION
1270 SOLDIERS I'IELD ROAD
BOSTON, MASSACHUSETTS 02135-1003
TELEPHONE 617-782-2600
r'ACSIMILE 617-782-9442
www.intercontinental.net
November 18, 2015
Ms. Barbara LaDue, Pension Administrator
City of Boynton Beach Firefighters' Pension Fund
Renaissance Executive Suites
1500 Gateway Blvd., Suite 220
Boynton Beach, FL 33426
RE: U.S. Real Estate Investment Fund, LLC
Dear Ms. LaDue:
We are pleased to announce that U.S. Real Estate Investment Fund, LLC (US REIF) has made a
distribution to you in the amount of $53,485.78, which constitutes your pro rata gross share of an
overall distribution of $19,690,771.10. The -Fund has withheld, $9;039:75 for. payment of asset -
management fees for the third .quarter 201;.,resulting in a net distribution to you of $44,446.03.
As authorized by your executed Dividend Reinvestment Plan (DRIP) letter, Intercontinental has
reinvested your net distribution of $44,446.03 into US REIF.
If you have any questions or wish to change your method of payment, please contact Bart Weinstein at
617-779-0440.
Sincerely,
of
Paul J. Nasser
.,;
RFP- Pension Administrator
Contact
Location (main office)
Website
FF Online Account
Other 175/185 Plans
Fees (monthly)
Initial fee
Otherfees
DROP Amdin
P
ac
cyocQa
Qe
met
AQP
Dec
�ac�
Qie
Q'�'P
oJt`
�e5
Pete Prior
Gary Chapman
Bob Dorn
Doug Falcon
Scott Baur/ Kerry Dutton
Lauderhill
Boca Raton
Ft. Lauderdale
Ft. Lauderdale
Palm Beach Gardens.
http://benefits-usa.org
none
http://www.ppaff.com/
http://www.fhatpa.com/
http://www.resourcecenters.com
yes
via Resouce Center
yes
yes
yes
25+
none
25+
yes
25+
$ 2,100.00
$3750+
$3000- 3700*
$ 2,400.00
$ 2,675.00
$1500-2000
custom website fee
*TBA
$100 retirement app. fee
no
yes
*
Maintain existing
Fee proposals vary:
*Existing PAS (Pension
agreement with
1. $3333 (both Police &
Administrative Systems)
Resource Center,
Fire)- maintain Gateway
agreement
Would like to
office, additonal website
transistion data to a
fees
different "secured"
2.$3000 (both Police &
server
Fire)- no office, addtl
website fees
3. $3750 (fire only),
maintain Gateway
office, addtl website
fees
4. $3500 (fire only), no
office, addtl website
fees
Luke Henderson
10826 159th Court North
Jupiter, Fl. 33478
1/31/16
Boynton Beach Firefighters Pension Board
Renaissance Executive Suites
1500 West Gateway Blvd. Suite 220
Boynton Beach, Fl. 33426
Dear Pension Board Members and Trustees:
Please accept this letter as my formal notification that I will be stepping down from my position
as Pension Board Chairman on February 3rd 2016 and Pension Board Trustee effective April 30,
2016. 1 am honored to have served on this Board for many years. The knowledge I have gained,
the professionals I have met, and the friendships I have made throughout the years have come
as an unexpected. perk for the position. I would like to thank all of my fellow Trustees through-
out the years who have dedicated so much of their time and energy and the Professionals who
have guided us in our decision making process. I was not sure what to expect when I stepped
into the position of a Trustee; the numbers, the terms, the time commitment and just the sheer
complexity of it all was hard to understand, but with time and guidance I feel that I was able to
grasp most of the concepts. I know I am leaving this Board in good hands. The attacks on public
pension plans will continue, how you deal with them and the decisions you make will be
difficult. Good luck, and remember there are a lot of people out there that appreciate the job
you are doing.
Thank you again, for your commitment to the Board and the support you have given me over
the years,
Good Luck, Luke