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Agenda 05-10-16 BOYNTON BEACH POLICE OFFICERS' PENSION FUND QUARTERLY BOARD MEETING Tuesday, May 10, 2016 @ 10:30 AM Renaissance Commons Executive Suites 1500 Gateway Blvd., Suite #220 Boynton Beach, FL 33426 AGENDA I. CALL TO ORDER — Toby Athol, Chair II. AGENDA APPROVAL — III. APPROVAL OF MINUTES — Quarterly Meeting 02 -09 -2016 Special Joint Police/Fire Meeting 03 -16 -2016 IV. FINANCIAL REPORTS: A) Quarterly & PYE Investment Review 43 -31 -2016 1) Russell Investment Group — MJ (Candioto) Serene, CFA a) Investment Review — 2.) Burgess Chambers & Associates - Head of Research Frank Wan a) Fund Performance review — 3) Gabriel Roeder Smith & CO — Pete Strong- Sr Consultant & Actuary a) GRS Announces New Relationship with Groom Law Group b) Actuarial Projection Study— 25 Year Projection dated 4 -29 -16 c) City's Requested Actuarial Projection dated 3 -3 -2016 d) Chapter 112.664 Flordia Statues Compliance Report dated 3 -31 -2016 4) Davidson, Jamieson & Cristini — a) Schedule of Pension Amounts, dated 3 -9 -2016 — GASB 68 requested by City's Auditor. V. CORRESPONDENCE: N/A VI. OLD BUSINESS: N/A VII. NEW BUSINESS: A. Invoices for review and approval: 1. Russell Investment Gp. — Quarter End 3 -31 -2016 - $132,272 1 2. Russell Payment Services — Quarter End 3 -31 -2016 - $994.75 3. Klausner, Kaufman, Jensen & Levinson — Service Jan ,Feb & Mar 2016 — $5794.20 4. Burgess Chambers & Assoc —1st Qtr 2016 fee - $6,250 5. Gabriel, Roeder, Smith & Co- Service Jan, 2016 - $9585, Feb 2016 - $6199 and Mar 2016 - $3550 6. Davidson, Jamieson & Cristini — Balance Audit Billing - $5,500, State Annual Report - $2,000 and GASB 68 - $1,500 PYE 9 -30 -2015 B) Attorney Report - Bonni Jensen 1) RFP for Pension Administrator — Status. 2) Ronald Davis — LOD Submission of Disability app, & HIPPA form — (Interrogatories app with additional 48 pgs med info & Dr. reports received 4 -28 -2016) 3) Robert Kellman - LOD Disability Benefit — Status 4) Upcoming Issues - Budget Review, Mutual Consent & Public Records 5) Re- employment after Retirement — 6) Normal Retirement Age Regulations — March 2016 C) Verification of Benefits — 1) Alfred Martinez — Deferred Vested VIII. PENSION ADMINISTRATOR'S REPORT 1. Benefits as of 05 -01 -2016 IX. PUBLIC AUDIENCE COMMENTS: (Limited to three (3) Minutes) X. ADJOURNMENT: Next Regular Meeting Date — Tuesday, August 9, 2016 @ 10:30 a.m. — Location to be Determined NOTICE IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY THE POLICE OFFICERS' PENSION BOARD WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING, HE/SHE WILL NEED A RECORD OF THE PROCEEDINGS AND, FOR SUCH PURPOSE, HE/SHE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDING IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. (F.S. 286.0105) THE CITY SHALL FURNISH APPROPRIATE AUXILIARY AIDS AND SERVICES WHERE NECESSARY TO AFFORD AN INDIVIDUAL WITH A DISABILITY AN EQUAL OPPORTUNITY TO PARTICIPATE IN AND ENJOY THE BENEFITS OF A SERVICE, PROGRAM, OR ACTIVITY CONDUCTED BY THE CITY. PLEASE CONTACT CITY CLERK'S OFFICE, (561) 742 -6060 AT LEAST TWENTY -FOUR HOURS PRIOR TO THE PROGRAM OR ACTIVITY IN ORDER FOR THE CITY TO REASONABLY ACCOMMODATE YOUR REQUEST. S:\CC\WPUANEIIPOLICE PENSION FUND.doc 2 MINUTES OF THE BOYNTON BEACH POLICE OFFICERS' PENSION FUND QUARTERLY BOARD MEETING HELD ON TUESDAY, FEBRUARY 9, 2016 AT 10:30 A.M., AT RENAISSANCE COMMONS EXECUTIVE SUITES 1500 GATEWAY BOULEVARD, SUITE NO. 220, BOYNTON BEACH, FLORIDA Present: Toby Athol, Chair Bonni Jensen, Board Counsel Jason Llopis, Secretary Barbara LaDue, Pension Administrator Scott Caudell Russell Faine Absent: Joe DeGiulio I. CALL TO ORDER — Chair Athol Chair Athol called the meeting to order at 10:30 a.m. II. AGENDA APPROVAL Ms. LaDue added the IRS mileage rate for 2016 as item VII. B.4. and Amended Disability Application for Officer Kellman as item VII. B.3. Ms. LaDue advised Officer Kellman would likely attend the meeting, and his attorney was available by phone. Item IV, Financial Reports will be heard in the reverse order. III. APPROVAL OF MINUTES —Quarterly Meeting 11 -10 -2015 Motion Mr. Caudell moved to approve the minutes. Mr. Faine seconded the motion that unanimously passed. IV. FINANCIAL REPORTS: A) Quarterly & PYE Investment Review —12 -31 -2015 4) Davidson, Jamieson & Cristini — Richard Cristini, CPA & Jeanine Bittinger, CPA a) Audit Report & Financial Statements for PYE 9 -30 -2015 Jeanine Bittinger, CPA Davidson Jamieson & Cristini, advised the Independent Auditor Report had a clean opinion which is the highest opinion they could give. The Plan grew and was up $2 million. Receivables from DROP loans and broker dealers were up and totaled $694,749. Total investments in the Plan at year end were Meeting Minutes Police Pension Board Boynton Beach, Florida February 9, 2016 $77,642,421 and last year was $75,783,083. The net position, restricted for pensions was $78,209,708 compared to $76,282,065 last year. Plan members increased, there were more buy -backs and roll overs to DROP this year. The employer contribution was $4,365,259, an increase from last year. The Plan also received almost $30,000 more in State monies than last year. The Plan's investment income reflected a positive net appreciation /depreciation of $1,996,000. Total additions to the Plan were $7,588,000. Deductions totaled $5,660,996 and the net increase was $1,927,643, compared to last year at $7,254,099. The asset allocations by class were in accordance with the Investment Policy Statement. The rate of return for the current year was 2.5 %. Ms. Bittinger noted most plans had a negative rate of return. Mr. Cristini pointed out they included a statement to note the disclosures related to Governmental Accounting Standards Board (GASB) 67 were accounting measurements, not actuarial measurements of the funded status of the Plan. They are not used to develop employer contribution rates. GASB 67 standards pertained to the Board. GASB 68 standards pertained to the City, and they will have to include them on the balance sheet. Ms. Bittinger noted there was a gain on investments sold of $1,752,200. If they liquidated the Plan there was money to be made. The total investments were $63,362.720 in 2015, and the market value was $77,642,421. The total Plan net position showed there was $9,570,232 designated for the DROP accounts. Supplemental plan distribution reserves were $2,463,259 totaling $12,033,491, and the undesignated net position was $66,176,217. Ms. Bittinger advised loan interest on DROP loans was $8,238. Rent expenses were split between the Fire and Police Pension Plans. The Plan was amended to show clarifications for disability benefits, but it had no actuarial impact on the Plan. The total pension liability as calculated by the actuary was $116,958,998. The Plan fiduciary net position was $78,209,708. The City's net pension liability was $38,749,280. The funding status, according to GASB 67, showed the Plan was 66.87% funded which was good for this year. The rate of return was 7.75°/x. which reflected the City's net pension liability was $38,749,280. If it were 1% less, it would be $51,391,148, and a 1% increase would make it $28,162,264. The City's Comprehensive Annual Financial Report (CAFR) will have 10 years of statistical data. The City's liability increased from last year due to lower market returns. Mr. Cristini commented the State mandated they could only count 300 overtime hours as pensionable income. The actuarial determined schedule of contributions was the same this year as last year. The schedule of investment and administrative expenses 2 Meeting Minutes Police Pension Board Boynton Beach, Florida Februa 9, 20 16 for the last two years reflected expenses were slightly higher than last year; however, the portfolio grew so the administrative expenses grew. Ms. Bittinger commented they do not like to see more than a 2% total expense and the Plan is well below the 1% in each category. She pointed out they did not issue a management memo because there were no issues to report. She explained the Plan received an A+ report card. 3) Gabriel Roeder Smith & Co. — Pete Strong- Staff recommended. Consultant & Actuary a) Updated GASB No. 67 Disclosure Information b) Actuarial Valuation for 10 -01 -2015 Pete Strong, Plan Actuary, commented the effective experience, due to the assumed rate and other changes resulted in an employer contribution increase from $4,391,305 for the fiscal year ending September 30, 2016, to $4,791,528 for the fiscal year ending 2017. He noted the contribution is made at the beginning of the year in October 2016. Ordinance 15 -022 was amended to reduce the benefit multiplier for those hired on or after October 1, 2015. Because that provision would affect future employees hired after this valuation, there was no impact on this year's valuation result. Mr. Strong explained for the last four years, they have phased in demographic assumption changes, 20% on the revised termination and withdrawal rates, and 20% per year on the mortality tables. The FRS Mortality table was less expensive than phasing in the RP2000 Mortality Table Scale AA and the Plan realized a slight savings by using the FRS table instead. Mr. Strong continued to recommend investment assumptions be reduced and noted the other two Boynton Beach plans are at 7.5 %. The gross return assumption was in the 8% range with a net return of 7.75 %. He distributed a handout from the latest FRS Valuation Report using a long -term average investment return of 7.65 %. It was materially above the 50 percentile average returns. The capital outlook models in the 6.8% to 6.9% range indicate there is a 35% likelihood of actual long -term future returns meeting or exceeding 7.65 %. The lower the selected investment return assumption, the higher the likelihood the Plan will meet or exceed its assumed rate in future years although the assumption would result in higher short-term actuarially calculated contribution rates. It would also lessen the magnitude of actuarially calculated contribution rate increases, in the event actual future investment performance failed to meet the assumption. FRS was taking the lead and showing what will happen if the forecast models are accurate. Mr. Strong thought the Plan was in a different situation with the markets than they were 20 years ago and having a 7.50% to 7.75% return was stretching the reigns of reasonability. He suggested they discuss phasing the rates in so it would not be an immediate shock to the contribution rates. Mr. Strong pointed out the Plan had an experienced loss and three years of gains in a row. About $1.1 million of the experienced loss was due to higher than expected salary increases. Average salary increases were expected to be 5.8 %, but this year was 8.6% due to the six -year pay freeze. The Plan had a disability retirement last year and zero 3 Meeting Minutes Police Pension Board Boynton Beach, Florida February 9, 2016 mortalities amongst retirees. All combined, the experienced loss was just under $1.9 million. A small part of the loss was due to the investment experience and smoothing. The return on the actuarial smooth value of assets was 7.54% this year, almost in line with the 7.75% rate of return. The net loss cost was about $105,000 due to the experience. (Mr. Llopis left the meeting at 11:17 a.m.) The funded ratio was higher this year due to smoothing and was at 66.3% versus 62.6% last year which changed the employer contribution. Last year, the actuarial value of assets was below the market value. This year, the actuarial values were more than the market creating a $700,000 shortfall. The unfunded liability is being amortized as a level percent of payroll. It increases 4% per year, and the payment amount goes up. The Florida Administrative Code says the Board cannot use a payroll assumption that exceeds the 10 -year trailing average, which is 4.16 %, but there would be a big drop off next year. Next year, they would have a 2.58 %, payroll growth assumption which would cause a $330,000 increase in the unfunded actuarial accrued liability payment. (Mr. Llopis returned at 11:20 a.m.) If payroll remains in the $12 to $13 million range, they would get to a flat 10 -year history. If there was zero payroll growth, they would go to a Level dollar amortization and it would increase the payment to nearly $1 million. Mr. Strong thought it would be prudent to lower the assumed rate in anticipation of a lower inflationary environment and lower investment returns. The breakdown of the annual determined contribution for the year was reviewed. Last year's payment on the unfunded liability was about $2.5 million and normal cost was $2.2 million. This year the annual payment was about $2.65 million. The normal cost increased because payroll went up. Chair Athol inquired how quickly they should lower the assumed rate. Mr. Strong responded if lowering the rate to 7.5 %, they could do so quickly. If lower than 7.5% it could be done by reducing the rate by 10 or 15 basis points a year. Mr. Wan commented California plans were at 7.5 %, then 7.25% with the goal of reaching 6.5 %, but they were only doing so during the years they surpassed an 11% return. Mr. Wan thought it was a good way to proceed. Attorney Jensen recalled the Board had been contemplating reducing the assumed rate of return. Attorney Jensen thought when reducing the rate of return, they could be more strategic around the expected increase in the contribution rate. Mr. Strong suggested taking some action effective October 1, 2016, maybe one basis point as a start, and recommended targeting over the long term, a 7% rate or below. FRS was using 6.8% 4 Meeting Minutes Police Pension Board Boynton Beach, Florida February 9, 2016 or 6.9% over the longterm. If the Plan came down 10 basis points a year fora while, the effect on the unfunded actuarial liability would be higher. Mr. Strong agreed to send calculations and projections for the Board to review in May. Mr. Strong explained the mortality rates were expected to be the same until the next experience study was done by FRS in 2019. He noted House Bill 1509 says to use the current or second most current mortality tables used by FRS. Motion Mr. Llopis moved to approve the valuation and for Mr. Strong to provide calculations showing a breakdown of 10 basis points per year at the May meeting. Mr. Faine seconded the motion that unanimously passed. Mr. Strong explained last fall, the Board approved him to work with the City for different scenarios, and they asked for scenarios for completion in March to see what the impact for reducing the benefit multiplier or future years of service would be. The City initially requested calculations across the Board to reduce the multiplier by 25 basis points and then asked for Fire and Police. Yesterday, Mr. Strong received an email from Commissioner Fitzpatrick who indicated the City wanted to look at 2.75% for future service across the Board. The other two plans were at 3 %, but they were just considering that multiplier for future service for current and new employees. The proposal had a few features. One component was to keep funding the Plan at the current benefit level with the excess going towards the unfunded liability. Once the Plan reached full funding, they would reinstate the prior benefit multiplier. Attorney Jensen explained the Board sets the rate over the short, mid and long term. Given the study being conducted, she suggested they put this off until May. Currently 7.75% was the approved rate of return, although it could change prospectively. Motion Mr. Faine moved to set the expected rate of return at 7.75 %. Mr. Llopis seconded the motion that unanimously passed. Mr. Wan will prepare the letter to send to the State. 2.) Burgess Chambers & Associates - Head of Research, Frank Wan a) Fund Performance review — Frank Wan, Head of Research, commented oil prices fluctuated and oil and the overall supply will move the economy out of the slow period as oil prices were currently low. He suggested letting volatility play out as it pertained to commodity prices including energy. Mr. Wan advised the calendar year ending 2015 was a volatile year. Many indices across the world were negative, but the US abroad markets were positive. The expectation for 2016 was the Federal Reserve would raise rates four more times. The 5 i Meeting Minutes Police Pension Board Boynton Beach, Florida February 9, 2016 dollar was so expensive, it was slowing down the economy because the US was exporting less and there will be a slowdown in tourism. Global markets were following and Mr. Wan did not think they would see as aggressive a rate hike plan as was announced by the Federal Reserve last year. The Plan was up 2.4% for the year, ranking the Plan in the top 5% percentile. The best performing asset class was private real estate, which was up nearly 15 %. Mr. Wan noted it was the only diversifier that really helped the overall Plan. Private real estate had a slightly higher allocation at 7.7% versus a target of 5 %. The Compliance Checklist, compared to the Investment Policy Statement, had most boxes checked which was a great report card. The overall performance of the Plan reflected the total fund was at $83.4 million. For the quarter, the fund had a 3.21 % gain, placing the Plan in the top 37 percentile for the quarter, in the top 5"' percentile for one -year period, in the top 40th percentile for the three -year period and top 29 percentile for the five -year period. Mr. Wan explained there are 500 plans of varying size in the peer universe, and BNY Mellon did very well. Mr. Wan explained the Plan was aging and was paying a lot in benefits and disbursements. Most of the growth came from investment earnings. The Plan did very well over the five -year period earning a 7.6% rate of return. Attorney Jensen inquired if there should be any changes in the asset allocations. Mr. Wan responded if this Plan were to be closed, changes should be made because the Plan would have a defined life, but because the Plan was an open plan, it could continue and have time to go through the market cycles. Mr. Wan pointed out 2008 was the only negative year on the books. All the other years were good. Last year, most plans were negative, but the Boynton Plan was up 2.3 %. The Pension Plan performance and rolling returns showed the Boynton Plan was a top performers for three and five -year periods having a downside market capture of 56.83% for the past three years, which was exceptional. It meant in a down market, the Boynton Plan lost less than half as much as the designated benchmark and when the benchmark is up, the Plan exceeded it. There were no recommendations from BCA. The defensive large cap position did very well due to low beta and a less volatile environment, so there was less risk associated with US equities. The multi -asset manager did well. The Plan scored a lot of outperformance and hedging currencies played a bit role. (Mr. Caudell left of 19:55 a.m.) 1) Russell Investment Group — MJ (Candloto) Serene, CFA 6 Meeting Minutes Police Pension Board Boynton Beach, Florida February 9, 2016 a) Investment Review — M.J. Serene, CFA, Russell Investment Group, announced the Russell Annual Client Conference will be in May and advised the fourth quarter did well. The one -year numbers were disappointing and they were largely driven by the third quarter which was challenging.. if using the net return after fees from all major publically reported asset classes, they were ahead of all of them, and she pointed out, diversification helped as did active management. The Plan was negatively impacted in August and by the end of the year, it recovered, but there was a flat return. Investors were fearing a higher probability of global recession and when economies transition, there will be fluctuations in economic indicators quarter -to- quarter. Russell Investments anticipated China would have some type of growth rate close to 6.5 %. Ms. Serene commented since January, there was a repeat of August. Dedicated US equity exposure was down about 6 %. Global equity markets down about 10 %, and the portfolio down 4.6 %. Russell Investments expected volatility, but thought there would be modest, positive, single - digit equity returns by the close of the calendar year. They had anticipated going into the year, the markets were fully valued, except for emerging markets which had cyclical concerns. Any type of incremental US equity market returns they thought they would receive would come from earning Improvements. Russell Investments was cautiously optimistic, but thought there would be some volatility along the way. (Mr. Caudell returned at 12:01 p.m.) Attorney Jensen inquired if Russell Investments thought the volatility was caused by people making decisions or the high speed trading impact on the market. Ms. Serene thought it was a combination of factors and pointed out Russell Investments was not expecting a global or US recession. The current market was different than the 2008 market. Ms. Serene reviewed the foundation of Russell Investments was manager research and how they rank investments that are included in various portfolios. Their funds are not just comprised of underlying managers. The portfolio managers design funds. Managers and markets change and Russell investments can make manager changes or tactical adjustments. They believe in active management and the underlying managers have full transparency in the total portfolio. Russell Investments does not pick stocks. As of January 1, 2016, the fund had $81.5 million. Net flows were zero because inflows and outflows netted each other. There was $1.8 million in market gains and the fund closed out for the year with $83.4 million. For the year, the fund earned 2.44% gross and 1.7% net of fees ahead of the benchmark. On an absolute basis, private real estate and defensive positioning helped. 7 Meeting Minutes Police Pension Board Boynton Beach, Florida February 9, 2016 It was a good year and they are continuing to position the fund to have a very specific underweight in commodities and to look at countries and currencies. The Multi -Asset Core fund has a 50% hedge which worked well, but in the long run would curb volatility. V. CORRESPONDENCE: 1) State Acceptance — All Reports through 10 -01 -2014 — Itr dated 11- 17-15 This was for information only. 2) Death Check/Mortality ID Services— RusselUBerwyn Gp = 11 -27 -15 Received and filed. VI. OLD BUSINESS: N/A Attorney Jensen suggested streamlining the Alive and Well process and advise the retiree if they do not respond by a date certain of their acceptance, they would not receive their check. The system has a deadline and the deadline cannot be extended. Chair Athol inquired when the October check does not go through, if it was easier to issue a double check the next month or a separate check during the month. Ms. LaDue thought it would be easier to issue a special check. Mr. Faine thought they should institute a $100 special processing fee or receive a double check in November. It was noted the checks are issued the first of the month. Chair Athol will review the letter before it is issued and commented letters will be sent June 1 and July 1 at . Chair Athol had spoken with Attorney Jensen regarding retirement age versus disability. Some plans include if one is eligible for a normal retirement, they cannot file for disability. Attorney Jensen had one plan with the provision, and there was only one person in that category. Attorney Jensen will email the language to the Trustees before the next meeting. The North Palm Beach Plan has an age 60 retirement. VII. NEW BUSINESS: A. Invoices for review and approval: 1. Russell Investment Gp. — Quarter End 12 -31 -2015 - $136,121 2. Russell Payment Services — Quarter End 12 -31 -2015 - $1,091.18 3. Klausner, Kaufman, Jensen & Levinson — Service Nov & Dec - $2,587.50 4. Burgess Chambers & Assoc — 4 th Qtr 2015 fee - $6,250 5. Gabriel, Roeder, Smith & Co- Service Dec 2015 - $1,942 6. Davidson, Jamieson & Cristini — Progress Audit Billing - $6,000 8 Meeting Minutes Police Pension Board Boynton Beach, Florida February 9, 2016 Motion Mr. Llopis moved to pay the bills. Mr. Faine seconded the motion that unanimously passed. B) Attorney Report - Bonni Jensen 1) Police & Fire Pension Board — RFP for Pension Administrator — Joint venture meeting for review process. Attorney Jensen sent out a Request for Proposal (RFP) and the responses were sent to the Trustees electronically. The next step was to discuss the responses with the Firefighters' Plan. Matthew Petty, Firefighter Trustee, advised they ruled out one pension administrator. He originally anticipated meeting in March to review the results. Attorney Jensen agreed to send a spreadsheet to be used to rank the respondents. After brief discussion, the Board decided to have a joint meeting with Police and Fire on March 16 at 9 a.m. Ms. LaDue will distribute hard copies of the responses for the members to review. Mr. Petty advised the firefighters wanted to hear five of the six respondents and presentations will last between 10 to 20 minutes. Mr. Petty would check for a location hopefully at Fire Station No. 5. 2) Insurance Premium Tax — Data Base — Chapter 1751185 memo 12- 5 -15 Attorney Jensen explained the State put together a database for the Insurance Premium Tax and noted the City contacts are Terry Owens and John McNally. The database also allows Trustees to see when the website was last updated. They could go to pointmatch.state.fl.us and download all of the addresses added within Boynton Beach. She noted the last time Boynton Beach updated the database was January 1, 2013. The database is also used for the City's Communication Services Tax the City receives from the State. 3) Robert Kellman LOD Disability Benefit Application & Interrogatories - Amended application Attomey Jensen advised they received a disability application from Robert Kellman and they will process it. She advised she received an amended application today. She sent out requests for documents and will keep Mr. Kellman posted. 4) IRS reduced mileage rate. Attorney Jensen advised the IRS reduced the mileage reimbursement rate from 57.5 cents to 54 cents. She noted the IRS increased the mileage rate when gas prices increased. 9 Meeting Minutes Police Pension Board Boynton Beach, Florida February 9, 2 016 VIII. PENSION ADMINISTRATOR'S REPORT 1. Benefits as of 02 -02 This item was for information only. 2. Plus Web Ms. LaDue explained she had been using an MBX benefit payment system that included refunds, withdrawals and loans, plus monthly benefits for eight years. In November, Ms. LaDue had a three -hour conference call with State Street introducing Plus Web, then she had no further contact until she contacted them on December 16 because in order to process the January benefit payments, she had to use the system and it was an ordeal. Ms. LaDue had been logging the time it takes her process two withdrawals, benefits and refunds and commented a 10 minute withdrawal took her an hour on the new program. A refund took 45 minutes to process. The benefit run for February took 1.5 hours and there were only two changes. This morning, she processed one DROP withdrawal and one loan, which would take her 10 minutes, but it took a half hour yesterday and one hour and five minutes with the assistance of someone at State Street today. Ms. LaDue thought the program was designed to encompass any type of benefit plan, but it was cumbersome. When she processes a DROP withdrawal she uses a code for early withdrawal with exceptions. When she looks through the program's selection, there was a code indicating early withdrawal, but did not indicate exceptions. Chair Athol suggested coordinating with Russell Investments to see if they could have specific options for the Plan. Transactions and benefits have several components. The program is a real time program. Chair Athol thought macro commands could be established and Ms. LaDue thought the program was not useful. Ms. Serene apologized for the program. Based on what Ms. LaDue said, she thought it was unacceptable and Russell will advocate for the Plan. She sent a note to her colleague to contact Ms. LaDue and they would go through the entire process. IX. PUBLIC AUDIENCE COMMENTS (Limited to three (3) Minutes) Steve Grant, 136 NE 3rd Avenue, Mayoral candidate, explained he is a local attorney and former financial advisor at Morgan Stanley. While serving on the Financial Advisory Committee, he conducted a pension review and he thanked the Trustees for what they do. He commented the Trustee's changed the pension multiplier to 3% and pointed out there was a vast difference between the FRS and the City's contribution rate. He did not know if there would be compromises in the future, but he wanted to ensure there was more money for the Police working today and the current pension fund is funded by 2040. Mr. Grant thought the City has not done a great job with the taxes they receive. The CRA has $10 million in land that was not being taxed and he would like to pursue the matter. 10 Meeting Minutes Police Pension Board Boynton Beach, Florida February 9, 2016 X. ADJOURNMENT There being no further business to discuss, Chair Athol properly adjourned the meeting at 12:54 p.m. 6 Q. - lU Catherine Cherry Minutes Specialist 030116 11 MINUTES OF THE BOYNTON BEACH POLICE OFFICERS' & FIREFIGHTERS' PENSION FUND SPECIAL JOINT BOARD MEETING HELD ON WEDNESDAY, MARCH 16, 2016 AT 9:00 A.M. AT FIRE STATION NO.5 2080 HIGH RIDGE ROAD, BOYNTON BEACH, FLORIDA PRESENT: Fire: Police: Matt Petty, Chair Toby Athol, Chair Luke Henderson Jason Llopis, Secretary Bob Taylor Scott Caudell Helen "Ginger" Bush Joe DiGuilio Jonathan Raybuck Russell Faine Also present: Adam Levinson, Board Counsel, Firefighters' Pension Board Bonni Jensen, Board Counsel, Police Officers' Pension Board Barbara LaDue, Pension Administrator, Fire and Police Pension Plans 1. CALL TO ORDER — Toby Athol, Chairman - Police Matt Petty, Chairman — Fire Chairmen Petty and Athol called the special meeting to order at 9:55 p.m. Self- introductions were made by all the Board members. Attorney Jensen announced Benefits USA was not making a presentation which was why the meeting started so late. Attorney Levinson commented the firm was given the opportunity to attend the meeting via phone, but they declined. He thanked the Boards for meeting collaboratively because there are economies of scale to use the same administrator and it gives purchasing power to the Boards, although neither Board is obligated to use the same administrator. Attorney Levinson pointed out Ms. LaDue planned to stay until December and provide assistance to her successor. Ms. LaDue has been the Pension Administrator for 21 years. II. AGENDA APPROVAL -- N/A 111. APPROVAL OF MINUTES — NIA IV. FINANCIAL REPORTS -- NIA V. CORRESPONDENCE — NIA VI. OLD BUSINESS — NIA VII. NEW BUSINESS: A. Interview Presentations for Administrative Services — RFP for Police & Fire Pension Funds: Meeting Minutes Special Meeting Fire and Police Pension Board Boynton Beach, Florida March 16, 2015 9:15 - Benefits USA - not present 9:45 — FHATPA Doug Falcon, Chief Operating Officer, explained he moved to Florida in 1982 with Blue Cross/Blue Shield and Boynton Beach was one of his accounts. In 1986, he worked for a third -party administrator handling health insurance plans. In 2000, the business started to change and he got involved in retirement plans in 2002. The first retirement plan he had was IBW in Orlando having up to 1,500 members. The first public pension plan he handled was the City of Lauderhill. They have since become administrators for six other pension plans. They still provide health and welfare and retirement services to union businesses and medical plans to corporate clients. The company had been handling the public pension plans for up to 12 years. Mr. Falcon advised he looked through the plan documents and did not see anything that would cause any difficulty. They are familiar with nearly all of the Plan's service providers. They are a licensed third -party administrator, subject to State review and scrutiny. The nature of the business is problem solving. This past week a client requested their 1095 filings. He ran 800 filings and they finished it in a day. The same level of service would be available to the Boynton plans. Mr. Falcone noted there was interest in online services and a visual of the Miramar Police website, which he handles, was viewed. It was a self - service site. Members could download forms, obtain resources and most plans they handle have something similar. Some plans do not want web access and for those, he takes a lot of phone calls because people want to speak to a person. Mr. Falcon explained they have not used online calculators, but he spoke to IT and one could be included on the website. It was his experience people often enter unrealistic numbers yielding incorrect information. Mr. Falcone explained most pension calculators are frequently used when an employee is hired and a few years away from normal retirement. Mr. Falcon introduced his colleague "Yolanda" and advised they both would be attending the quarterly meetings. FHATPA administers the Deerfield Fire and Miramar Police plans which are more active than the General Employee plan. He understood the need for staffing, but was unsure how many hours were needed and accounting and bookkeeping was priced separately. He commented there is a good deal of work involved with pension plans on a day -to- day basis. The fee included some consideration for staffing. Someone would be available two or three days a week to handle walk -ins. They still have the main office by Pembroke Pines and Mr. Falcone lives in Boca Raton. They are always available by phone or email. He commented he has been getting a lot of calls regarding divorce situations and they involve an attorney on those types of items. There would be some extraordinary expenses which would be built in. They use a trust fund accountant, and they could make some adjustment on the accounting fee, but Mr. Falcon did not want to offer any illusions and then come back and say they made a mistake. They have gone 10 years sometimes without a raise and the firm was a mom and pop entity. 2 Meeting Minutes Special Meeting Fire and Police Pension Board Boynton Beach, Florida March 16, 2015 The fee proposal is a monthly fee that would include some type of office personnel. Ultimately the office would be staffed with internal staff until they could determine the level of work. Ms. LaDue noted she puts in about 15 hours per week each for police and fire mostly handling loans, employees getting ready to retire, withdrawals from DROP accounts and divorces, and she has been getting a lot of phone calls lately. She has about 13 files of people who terminated, deferred vested and current drops which she processes for the actuary. Ms. LaDue explained it is always better to conduct business face to face so she can explain everything and the help the employee with determining when to retire. She likes to have the spouse come in when choosing a benefit option, and she always recommends speaking to a financial advisor. Mr. Falcon explained police and fire plans are high maintenance due to DROP accounts, earlier retirement ages and other considerations. He would have to ascertain the activity levels and then determine the need. Chair Athol asked for a ball park cost to staff the office Monday to Thursday 6 to 8 hours a day. Mr. Falcon responded if they staffed the office five or six hours a day, it would cost about $1,000 to $1,600 a month and they would probably have enough money in the fees to cover the employee. Without staffing and without accounting they would normally charge about $1,500 per plan. Miramar pays $1,350 to $1,400. The last person hired was the spouse of a Metro Dade fireman. She worked for FHATPA, left, had kids and came back. (Chair Petty left the meeting at 90:22 a.m.) Mr. Taylor asked about the sample of proposed services outlined under the scope of services and the appendix that would be covered under the fee structure. He requested confirmation all the services outlined would be covered under the monthly fee and learned they would. (Chair Petty returned to the meeting at 90:23 a.m.) Attorney Jensen explained the pension fund owns its system. She described the system they use for accounting and the Pension Resource Center (PRC) database that maintains all the information. When the actuary needs data, Ms. LaDue provides the calculations. The City sends payroll every other week which she downloads and she detailed what the City sends. Mr. Falcon explained they have a similar system and he described the equipment he uses. They rely on the custodian, but he also uses QuickBooks which lends itself to easy communication with the auditor. Ms. LaDue issues the benefit statements and the actuary reviews them. The thought would be there would be a transition and conversion. He did not think there were that many elements of data in terms of what is required. He explained he would have to review the system, but did not think it would be an issue. 3 Meeting Minutes Special Meeting Fire and Police Pension Board Boynton Beach, Florida March 16, 2015 Mr. Taylor questioned if the fees as stated, were good for three years. Mr. Falcon responded they were. Attorney Levinson asked how many times they have been terminated by a governmental plan and learned they were never terminated by any governmental retirement plan, but some firms were bought out. Mr. Falcon explained they had a few claims regarding health and welfare, usually on settlement of high dollar claims. They had a reinsurance carrier that tried to negotiate a hard bargain at Lake Wales and they got dragged into it. They tried a new approach to a third -party claim that was unsuccessful, and the hospital named everyone, but they were never involved in litigation in retirement plans. Mr. Taylor asked how many clients were added during the last three years. Mr. Falcon responded the firm just got two pension plans which were the Miami Shores General Employees Plan and a police plan, in addition to obtaining a contract to process prescription claims assistance for individuals who cannot afford to pay for prescriptions. Miami Shores has about 60 or 70 claims a month. About a third of the covered lives were contained in the list of references. He also spoke about his largest account. (Mr. Faine left at 90:30 a.m.) Mr. Taylor asked about the accounting fees and Mr. Falcon explained they were the maximum fees. He thought they could do better on the accounting fees. (Mr. Faine returned at 90:39 a.m.) Mr. Falcon noted there were quarterly meetings and quarterly financials, not monthly, which would be less money. He would speak to the auditor and find out what they want the CPA to do. Ms. LaDue explained she does monthly financials on both plans. She asked if Mr. Falcon's system creates the benefit statements for the retirees or if the actuary produces them. Mr. Falcon responded they have issued benefit statements, but he would want to look at the benefit statement. When someone retires Ms. LaDue runs a final statement, the member chooses an option and then the actuary reviews it Mr. Taylor asked if benefit statements were included in the RFP. Attorney Levinson commented that issue could be a separate discussion. Mr. Falcon explained they have nine full -time employees and they have an efficient office. 10:15 - Foster & Foster Ferrell Jenne, Head of the Plan Administration Division, Foster and Foster, thanked all for the opportunity to present and distributed a report. She explained the firm was founded in 1979 focused on actuarial service for public pension plans across the State. They service over 200 plans throughout the State on the actuarial side and provide plan administrative services for 18 plans across the State. Foster and Foster has 14 credentialed actuaries with over 225 years of public sector experience, and staff 4 Meeting Minutes Special Meeting Fire and Police Pension Board Boynton Beach, Florida March 16, 2015 is comprised of Fellows of Financial Accountants (FFA) and Enrolled Actuaries and 22 additional members consisting of specialists in plan administration, accounting, and data analysts. Ms. Jenne was hired in 2010 as the firm's operation manager to ensure deliverables go out on time and on budget, and provide support to trustees and members. She introduced "Tony" as part of plan administration services and she and Tony would be the main point of contact. Foster and Foster got into plan administration because clients came to them indicating they were best equipped to handle the Plan as they are familiar with the plans rules and financing and they are detail oriented and have established relationships with the stakeholders and other pension- related professionals. Ms. Jenne explained clients had indicated they wanted a faster tum-4round on benefit calculations. They wanted someone to sit down and describe the options available to members. They have administrators and research actuaries, data analysts and accountants which are included in plan administrative services. They have onsite experts they have access to, document security, a secure website and server; they have never been hacked and have encrypted emails. Their servers are backed up off site. They have a longstanding relationship with the plan's consultants and custodians and a dedicated website portal, with different sections for reports and agendas, forms, plan documents, summary plan descriptions, Investment Policy Statements and calculators. Foster and Foster carries a $4 million email policy and they do not limit their liability in this capacity. Ms. Jenne thought there would be a seamless transition process while working side -by -side with Ms. LaDue. (Ms. Bush left at 90:42 a.m.) (Mr. Caudell left at 10:42 a.m.) The annual retainer for the Firefighter Plan was $42,000 and the annual fee for the Police Plan was $46,000, both payable in monthly installments with a three -year fee guarantee. To date, Foster and Foster have not raised any plan administration fees. They try to price so a fee increase is not needed. If an increase is ever requested, they log hours for plans. There are no processing fees, or hidden costs. The fee includes attendance at four quarterly meeting including travel costs. (Mr. Caudell returned to the meeting at 10:44 a.m.) The online calculator, website portal and data transfer was included with the fee. Foster and Foster has a main office in Ft. Myers and she works in Ft. Myers and Tampa. If staffing is on site, they would have to provide a price. Chair Petty noted other services regarding DROP accounts and asked what Ms. LaDue does that someone else would have to do. 5 Meeting Minutes Special Meeting Fire and Police Pension Board Boynton Beach, Florida March 16, 20 15 (Ms. Bush returned at 10:45 a.m.) Ms. LaDue explained the Firefighters' Plan has their DROP account administration with Alerus, and Ms. LaDue handles the DROP administration for the Police Plan. The fire DROP account fees cost $500 a quarter. Chair Athol explained every calculation inquiry is a $60 fee. Ms. Jenne explained some plans provide quarterly or annual updates, and the fee is $50 per update, per person per statement. Ms. LaDue inquired if the actuarial work was extra and learned it was included in the fee. Mr. Taylor asked how many plans use third party /actuarial services and learned there were 18. Attorney Levinson commented they would still need an actuary for the plan's actuarial valuation and the fee would only be for administration. Chair Athol commented access to her for calculations would be via phone or online. She could also set up meetings before and after the quarterly meetings. Foster and Foster would give a quote if there were any special projects outside the retainer. Ms. LaDue commented there would be a lot of buy backs of service time and asked if that would be an extra charge and learned it would not. Mr. Taylor asked if the scope and appendix which had additional services would become part of the contract covered under the fee structure. Ms. Jenne had reviewed the annual share account statements and producing a certificate is an extra $2,000 per plan and the annual report is $3,000 per plan. Everything else was included in the fee. Currently, the auditor prepares the annual report. Attorney Levinson inquired what would happen if either Board wanted more face time on a monthly or weekly basis. Ms. Jenne would give a flat fee depending what was wanted. If someone was in the office once a week for eight hours, the fee would probably be $650. if they had meetings the same day as a Trustee meeting, there would be no extra fee. Mr. Taylor requested she send an email itemizing the services not covered including the incremental cost over and above the fee structure. Attorney Levinson asked if the firm was ever terminated by any Plan for administration. Ms. Jenne responded they have never been terminated, but if they ever would, they would turn over all files to whoever takes over the Plan. Attorney Jensen explained the Board owns its own pension system including downloads from the City's payroll system and the accounting system is tied to it. Ms. Jenne explained they would move from the current system to Foster and Foster's system. It could stay on the same system and they would maintain it. It was up to the Board. Attorney Jensen asked if Foster and Foster's system could take downloads on salary 6 Meeting Minutes Special Meeting Fire and Police Pension Board Boynton Beach, Florida March 16, 2015 information, or if they take annual information from the actuary. Ms. Ferrel responded they could use either. Ms. LaDue conducts biweekly downloads so she could provide current accrued benefits to the members. The calculator would not have the information embedded. Chair Petty asked if Ms. LaDue was doing anything that was not covered in the RFP. Ms. LaDue responded she does the benefit calculations and sends them to the actuary. She asked if Foster and Foster does the same thing. Ms. Jenne explained they could run the estimator, but the actuary signs off on the final estimate. Ms. LaDue commented she runs estimates and the final because the program is very accurate. When the member decides their benefit option, she sends it to the actuary. The actuary has to do the calculations anyway. In this case they are just reviewing the calculations are correct. Attorney Levinson requested Ms. Jenne make a case how she worked with plans without meeting face -to -face. Ms. Jenne explained when a member prepares to retire it could be done electronically with hard copies mailed to her and she sets up an appointment with the member to explain everything face -to -face. 11:15 - Precision Pension Administrative Service (Heard out of order) Dave Williams and Bob Dom, Precision Pension Administrative Service, explained in 1983 he was hired as a police officer in Sunrise. He spoke with long standing officers about the retirement system and was told no one retires. His career continued and after three years, he became involved with the pension, which was a General Employees, Firefighters and Police plan all under one umbrella. For the next three years, he learned, trained and educated himself about pensions and in 1989, the three categories of employees were separated into three plans. He became a Trustee and Chairman of the Police Pension Board, remaining in that position until he retired. In 2000, he transitioned from being the Chairman for the Police Pension Plan and became the pension administrator for Sunrise. He started his own company and administered the Sunrise plan for all those years by himself. In 2001, he administered the Hollywood Plan. He wanted to have a niche business and have a fair livelihood that was not too big. He met with Ms. LaDue and Mr. Dom to conduct due diligence to see if they would be a good fit and review the groundwork already in place. He thought it would be a perfect transition compared to other plans he administers. He handled the West Palm Beach plan and when they took over, the membership was hostile as they were unhappy with the administrator and the way things were done. It took Mr. Williams a year to get the West Palm Beach plan in order. Bob Dorn explained they are a professional firm. They are transparent, communicate, and post notices so all are aware what is occurring with the Plan. He commented they are dedicated and help the members with issues that arise. Both he and Mr. Williams have both been Chairmen, Trustees, Secretaries and Union representatives for the FOP and PBA and have over 20 years of experience as pension administrators. The service they provide is bar none compared to anyone and he invited the Trustees to contact any 7 I Meeting Minutes Special Meeting Fire and Police Pension Board Boynton Beach, Florida M arch 16, 201 of the actuaries, vendors or members. Messrs. Falcon and Dorn call right back if a member calls and they are busy. The latest they will respond is 24 hours. He encourages member questions and they can call him at any time. They also encourage members to use the website and Mr. Dorn thought both Plans were big enough to have their own website. When Precision Pensions takes over a plan, they meet with all the Trustees and see what they liked about the prior administrator, what is different and where they want to be one, three and five years down the road. They obtained a Government Finance Officers Association Certificate. The Comprehensive Annual Financial Report is done independently and they award certificates based on the review. The Board wanted to use a CAFR and second to the City of Orlando, Sunrise was awarded a Certificate of Achievement. They also belong to the Public Pension Coordinating Council. Satisfaction surveys for West Palm Beach and Hollywood were included in the meeting presentation. Mr. Dom explained sometimes they and the trustees want feedback from the retirees and members and occasional surveys could help identify a new service or level of member satisfaction. Financials were contained in the handout which detailed expenses that are paid are distributed a week before each meeting. Mr. Williams supported having an office so members would have a place to go locally and it provides a high level of service to the members. Mr. Williams gave a few proposals for on and off site. Chair Athol asked how many hours the office would be staffed. Mr. Dom responded it depended on what was needed for the Plan. He thought someone would be there every day for the first six months. Mr. Dom suggested one or two set days and then a flexible schedule to cover shift work. Mr. Dom could go to the Police Department or meet members at the office. Mr. Williams suggested they offered a higher standard of service than some of the other presenters. Information about the website was distributed. The West Palm Beach site had a log in requiring a Social Security number. Mr. Williams did not favor the use of the social security numbers. Members would come up with their own password to be used for access. The file uploaded on the intemet is not connected to their services, it is a standalone file and there is no data that could breach one's identify. Information is backed up on and off site. As to the Plan's computer system, Mr. Williams advised he would have to access it to determine if it needed to be upgraded. If the current software was working for the Plan and it was the best for the Board, they will keep it and adapt to that system. Mr. Williams explained their ITS department created customized software for each plan. The software has been tested and it helps with the State reports and statistical data. Mr. Taylor noted item 8 of the RFP pertained to a statement of bonding and /or insurance coverage carried by the bidder, and commented the firm did not have 8 Meeting Minutes Special Meeting Fire and Police Pension Board Boynton Beach, Florida M arch 16, 2015 separate insurance at this time. He asked if they would look to the Plan to provide it, with them named as insured and learned they would. There would be no additional expense and they would guarantee the final fee for three years. Mr. Taylor inquired if items in the RFP's Scope of Services and Appendix would be fully covered and incorporated into the fee structure. Mr. Williams responded they were. Mr. Taylor noted the proposal indicates that all IT costs would be separate from the administration of the Plan. Chair Petty asked about the cost of the website. Mr. Williams responded it would be no more than $1,500 to $2,000 to create and it would be the Plan's website. Monthly maintenance would be $25 to $50 per month. Either Mr. Williams or the IT department would upload and update the website. Mr. Dom explained their file system is secure, locked and has an alarm. There had been breaches with other administrators, and they wanted to address the issue. Attorney Levinson asked if the firm has ever lost any clients and learned they have not. The new plans they acquired were from administrators who were also making presentations. Mr. Dom emphasized he or Mr. Williams would handle the work. Mr. Williams noted Foster and Foster is an actuarial consulting firm. FHATPA are insurance adjusters or processers and Human Resource people. Precision Pensions has the proven history and knowledge to administer the Plan. 1.0:45 - Pension Resource Centers Scott Baur, Pension Resource Centers (PRC), introduced Kerry Dutton, Plan Administrator, and Sergio Giron, the IT Director, and explained they are already involved with the City's plans. He thanked the Boards for the opportunity to make the presentation about plan administration and the operation of a local office. Mr. Baur noted there are two different plans presently and both Boards may not make the same decision how to operate in the future. He was aware Gary Chapman made a proposal to provide administration services and commented if the Boards still want to operate a local office, there is no substitute for having an administrator available a member can see when they want. Mr. Chapman has an excellent background and does understand the Plans. If the Board's used Mr. Chapman, they could provide the same services they have now and provide operational continuity. The Pension Resource Center's (PRC) primary office is in Palm Beach Gardens and Mr. Baur explained they have the resources and understanding of the plans to back up the selected administrator. He thought Mr. Chapman would be the logical choice. Mr. Baur explained as administrators they are an acknowledged fiduciary to the Plan and they operate the Plan with the Board. As a systems provider, they host the systems and the data, and had taken the legacy systems and rewrote them to be more current. PRC provides online access to the data, and they were engaged for that type of specific support. They have the data, they understand the benefits and there would be 9 Meeting Minutes Special Meeting Fire and Police Pension Board Boynton Beach, Florida March 16, 2 015 no break in continuity if they stepped in and did the job. If the administrator got sick, they could step in without downtime. Mr. Baur explained he has been in pension administration for over 20 years and is passionate about the business and how they service the members. He commented they could administer everything in the RFP and they already do so on a large scale. PRC completes an annual Statement of Standards for Attestation Engagement (SSAE) 16 Report for their own internal controls, procedures and process. There is a people side of the job and information side of the job. A substantial part of the Plan is the maintenance of the information for the reporting process and for determining benefits for individual people. Ellen Schaffer wrote the programs used by the two Boynton Beach Plans. Mr. Baur has worked with Ms. Shaffer in 2002. She worked with a lot of separate plans and PRC now administers many of those plans, becoming the largest user of her systems. They created a partnership with her to provide continuity and they are capable of maintaining those systems without Ms. Schaffer. PRC can update the system allowing for online member access. Chair Petty asked what PRC was currently doing and why the switchover with the Firefighters' Plan had not been made yet. Mr. Baur explained the systems are available for use, but they are not really being used, only from the legacy side, and part of that is a transition issue. Ms. LaDue may not learn to use the new system and new interface since she is leaving. The systems are capable of doing everything that was offered, but it was a matter of getting the local office to use them. Mr. Baur explained they were keeping the new system up to date as well as the old system. The new system offers online benefits to members. Any slowness with the original implementation had to do with special benefits, but they are not talking about a year's time. Ms. LaDue asked if the system was set to go in the last month. Mr. Giron responded they have been polishing the features based on customer feedback. Boynton Beach's application is set to go in about three months. Ms. Dutton meets off and on site as the Plan is fairly busy. She would schedule the meetings, post the agendas, do minutes, act as liaison between the service providers and Trustees, maintain all records, statements and documents, handle the files, recordkeeping, communicate between the Trustees and work with the members on retirement, benefits, and more. Mr. Baur explained they provide interim financials for many different plans and interact with auditors, reconcile the accounts, provide reporting, process benefits up to and in addition to issuing checks and payments out of the office including reporting and payments to the IRS. They know the process for account and DROP statements. There will be online access for the members. If they have a local office, it will not replace the kind of individual interaction they have with the members of the plan. He thought if using an outside administrator PRC was the best fit. They will work with the Boards 10 Meeting Minutes Special Meeting Fire and Police Pension Board Boynton Beach, Florida March 16, 2 015 noting there are some economies of scale and he was confident in terms of their office. They have 21 people who work for them, two attorneys, and they use an outside accounting firm to oversee controls and procedures and complete the SSAE 16 audits. He commented this is what sets them apart from other firms and this was exclusively what they do. He invited all to go on the website. Currently, they provide systems for a fee. For the Firefighters Plan, they planned to add an additional fee for the additional services they were being offered in addition to the fees they already pay of $1,250 per month. They proposed to provide total plan administration for $2,875 for Police and $2,675 for firefighters. Chair Petty asked what the additional cost to staff the office for about 20 hours per week would be. Mr. Baur inquired if they created that arrangement, if it could be extended to the General Employees plan. Mr. Baur thought it would be about $500 if the General Employees Plan participated. The additional would be about $12,000 a year if hired to do total plan administrative services. The other choice is not to maintain the local office. The system they use is cloud based. (Ms. Bush left the meeting at 12:10 p.m.) Chair Athol commented they want an office somewhere for an administrator. Mr. Henderson asked if they schedule meetings or have an open door. Ms. Dutton explained it depended. Currently, she is very busy and days are booked when she comes. They would be available as much as the demand required. Mr. Henderson noted items like buy -back of service and divorce and asked if those were included in the fees. The only fee that was not included was related to retirement. He clarified they spend lots of time reviewing retirements with the members and it was a nominal fee. Ten or 12 people retiring is normal, but they had large cities offering buyouts and 300 or 400 employees were retiring at the same time. PRC employees were working 60 and 70 hours to keep up with the demand and the additional revenue was to compensate staff. Attorney Levinson inquired if they were ever terminated by a Plan and if so, what the circumstances were. Mr. Baur explained they do not lose people, but they had plans close, shutdown or transition to another plan. He read a list and commented they did lose West Palm Beach Police Pension Fund a number of years ago and there were many circumstances involved. Royal Palm Beach and Delray plans were specific situations that had to do with audits that were very political in 2008 which he explained. Those two plans had the same auditor. PRC has 14 separate auditors and they all have different requirements and interpretations regarding GASB as they applied to the plan, so they then managed those expectations to the greatest common factor, and if something is required, they will implement it across the Board. As a result, they engaged an outside audit and accounting firm to oversee the production of the financial statements to be more in conformance to the generally accepted accounting principles. Since then PRC has not lost anyone. 11 Meeting Minutes Special Meeting Fire and Police Pension Board Boynton Beach, F March 16, 2015 Mr. Baur explained PRC would be happy to continue the relationship in whatever capacity is selected. B. Additional Pension Auditors Report - 1) Discussion, review and fee quote on additional reporting requested by City auditor, Scott Porter, CPA. — various Emails. Attorney Jensen explained the City's auditor contacted the Police Plan auditor requesting additional information. She spoke with Tim Howard, Finance Director, and learned the City needed an opinion from the Plan's auditors to lift the work the auditors did for the Police Plan and put it in the City's Audit. Jeanine Bittinger, Jamieson, Cristini, advised it would cost $1,500 to do the letter for each Board. Chair Petty asked if it was expressed to the City they let the Board's know that the next time they need the information they let them know ahead of time before the Plan's audit was completed. Mr. Taylor agreed and recommended they advise the City the Plans were being gracious picking up the fees, and in the future, it was hoped they would do more timely planning so they do not have to incur these fees to the auditors. The City auditor should have notified the Fire and Police plans. Attorney Jensen agreed to convey the message. Attomey Levinson explained the issue was they just completed the audit and the City's Auditor wanted a reasonable assurance opinion. Had they asked for the information prior to the closing of the audit, it would not have been an issue. Since the audit was finished, the Plan's auditor is charging $1,500 to do the additional work. It was hoped next year it would not be an issue again. Motion Ms. Llopis moved to approve the cost for the additional work. Mr. DeGuilio seconded the motion that unanimously passed. Attorney Levinson commented they checked with other auditors and it would take them much longer to do the work and it would cost a lot more. Motion Mr. Henderson moved to pay the additional fee. Mr. Taylor seconded the motion that unanimously passed. Ms. LaDue commented the auditor advised her of the 30 or more plans they audit, they have not had a similar request from any other City. Discussion followed the members should think about the presentations. Mr. Henderson was leaving the Firefighters' Pension Board, but he would attend the April 29 meeting. 12 Meeting Minutes Special Meeting Fire and Police Pension Board Boynton Beach, Florida March 1 6, 2015 They will also have a Board member out of town. After discussion, Police and Fire agreed to meet the on Wednesday, April 13, 2016, at 9 a.m. at Renaissance Commons. Chair Petty asked about the status of Chief Hoggatt's pension membership. Attorney Levinson explained the General Employees plan talked about it, but the actuary was not present. They are still waiting on the verification of the calculations, and they pay interest. There will be a credit in the General Employee plan and an amount due in the other Plan. Ms. LaDue had already sent a letter to Ms. Dutton. VIII. PENSION ADMINISTRATOR'S REPORT: NIA IX. PUBLIC AUDIENCE COMMENTS: (Limited to three (3) Minutes) X. ADJOURNMENT: There being no further business, there was consensus to adjourn. 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Lauderdale, FL 33301 -1804 www.gabrielroeder.com March 3, 2016 Ms. Lori LaVerriere, City Manager City Manager's Office City of Boynton Beach 100 E. Boynton Beach Blvd. Boynton Beach, Florida 33435 Re: City of Boynton Beach Municipal Police Officers' Retirement Fund Actuarial Projection Study Dear Lori: As requested, we have prepared a study with 20 -year projections illustrating the impact of potential changes to the benefits and funding policy of the City of Boynton Beach Municipal Police Officers' Retirement Fund (Plan). The results are based on census and asset data as of October 1, 2015. As directed, we have prepared projections under the two alternative scenarios described below. We have compared these projections to a baseline projection of the current plan in order to determine their projected impact on the Plan's future funded status and required contributions. Scenario A No changes to the Plan, but assume the Market Value of Assets (MVA) is equal to the Actuarial Accrued Liability (AAL) of the Plan as of October 1, 2015. This scenario also assumes the Actuarial Value of Assets (AVA) is reset at the Market Value of Assets so that the Unfunded Actuarial Liability (UAL) equals zero. This is a hypothetical scenario intended to illustrate the projected ongoing cost of benefits earned each year under the Plan assuming the UAL has been eliminated. Scenario B Change the benefit multiplier for future service to 2.75% beginning October 1, 2016, but future City contributions are assumed to remain at a level sufficient to fund the current benefit levels (a 3.5% benefit multiplier for members hired prior to October 1, 2015, and a 3.0% benefit multiplier for members hired on or after October 1, 2015). City contributions in excess of the required contributions are used to pay down the UAL. Future excess Chapter 185 state money (in excess of $465,087 per year) is also assumed to be used as an extra UAL payment each year in lieu of funding supplemental benefits until the Plan becomes 100% funded under the prior benefit structure (a 3.5% benefit multiplier for members hired prior to October 1, 2015, and a 3.0% benefit multiplier for members hired on or after October 1, 2015). Ms. Lori LaVerriere March 3, 2016 Page 2 Once the Plan becomes 100% funded based on the prior benefit structure (a 3.5% benefit multiplier for members hired prior to October 1, 2015, and a 3.0% benefit multiplier for members hired on or after October 1, 2015), our understanding is that the prior benefit structure would be retroactively reinstated and would remain in effect for as long as the Plan remains at least 100% funded. In addition, the excess Chapter 185 state money (above $465,087) will once again be available to fund supplemental benefits. The actuarial projections for this scenario have been developed under the assumption that an agreement would exist between the City and the Police Officers for the current 3.5 %/3.0% benefit multiplier to be reinstated through a separate Ordinance at the time the Plan becomes 100% funded on that basis. Based on our understanding of Florida Statues, if the City Ordinance is amended to include specific language stating that the benefit multiplier will automatically increase to 3.5 0 /o/ 3.0% for all years of service once the Plan attains a 100% funded ratio on that basis, then we believe actuarial valuations will need to reflect an expectation of eventually becoming 100% funded (and the 3.5 %/3.0% benefit multiplier being granted retroactively). In this event, future annual required contributions would be approximately equal to what they would be if the Plan was never amended. Disclosures This report was prepared at the request of the City and is intended for use by the City and those designated or approved by the City, including the Plan's Board of Trustees. This report may be provided to parties other than the City or Board only in its entirety and only with the permission of the City. The purpose of this report is to describe the financial effect of potential changes to Plan benefits and the funding policy of the Plan. This report should not be relied on for any purpose other than the purpose described. The calculations in this report are based upon information furnished by the Plan Administrator for the October 1, 2015 Actuarial Valuation Report concerning Plan benefits, financial transactions, plan provisions and active 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 City or the Plan Administrator. Projections are deterministic, meaning that throughout the projection period, Plan experience is expected to exactly match the actuarial assumptions, including the assumed investment return on the market value of assets. Throughout the projections, new members are assumed to be hired each year at a rate sufficient to maintain a constant active headcount. New members are assumed to have the same average demographic characteristics (age, gender, salary — adjusted each year for inflation) at their dates of employment as those of current members hired between October 1, 2010 and October 1, 2015 (during the five -year period ending on the most recent actuarial valuation / census data collection date). Gabriel Roeder Smith & Company Ms. Lori LaVerriere March 3, 2016 Page 3 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 this report. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic 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. If you have reason to believe that the assumptions that were used are unreasonable, that the plan provisions are incorrectly described, that important plan provisions relevant to this proposal are not described, or that conditions have changed since the calculations were made, you should contact the author of the report prior to relying on information in the report. Peter N. Strong and Jeffrey Amrose are members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. The undersigned actuaries are independent of the plan sponsor. We welcome your questions and comments. Sincerely yours, x%LL�Ii eter N. Strong, FSA, I ary e Amrose, EA, MAAA Senior Consultant and ctu Senior Consultant and Actuary Enclosures This communication shall not be construed to provide tax advice, legal advice or investment advice. c: Barbara La Due, Pension Administrator Board of Trustees, City of Boynton Beach Municipal Police Officers' Retirement Fund Gabriel Roeder Smith & Company City of Boynton Beach Municipal Police Officers' Retirement Fund 20 -Year Projection of Required City Contributions Scenario A - What If There Was Current Plan (Baseline) 1 No Unfunded Liability? 2 Funded Funded Fiscal Required City Ratio on Required City Ratio on Year Valuation Pensionable Contribution Valuation Pensionable Contribution Valuation Ending Date Earnings $ Amount % of Pay Date Earnings $ Amount % of Pay Date 2017 10 /1 /2015 12,345,798 4,791,528 38.81% 66% 12,345,798 2,033,695 16.47% 100% 2018 10/1/2016 12,719,406 5,210,646 40.97% 67% 12,719,406 2,137,468 16.80% 100% 2019 10/1/2017 13,064,393 5,560,231 42.56% 69% 13,064,393 2,191,206 16.77% 100% 2020 10/1/2018 13,467,835 5,938,537 44.09% 70% 13,467,835 2,235,655 16.60% 100% 2021 10/1/2019 13,806,053 6,261,667 45.35% 72% 13,806,053 2,292,859 16.61% 100% 2022 10/1/2020 14,206,556 6,213,794 43.74% 74% 14,206,556 2,333,072 16.42% 100% 2023 10/1/2021 14,478,239 6,282,255 43.39% 76% 14,478,239 2,389,644 16.51% 100% 2024 10/1/2022 14,894,981 6,201,608 41.64% 78% 14,894,981 2,412,862 16.20% 100% 2025 10/1/2023 15,172,936 6,165,515 40.63% 80% 15,172,936 2,466,319 16.25% 100% 2026 10/1/2024 15,358,012 6,200,494 40.37% 82% 15,358,012 2,484,346 16.18% 100% 2027 10/1/2025 15,661,615 6,362,689 40.63% 83% 15,661,615 2,477,755 15.82% 100% 2028 10/1/2026 15,817,515 6,529,260 41.28% 85% 15,817,515 2,500,940 15.81% 100% 2029 10/1/2027 16,272,390 6,629,722 40.74% 86% 16,272,390 2,481,366 15.25% 100% 2030 10/1/2028 16,518,950 6,559,632 39.71% 88% 16,518,950 2,537,568 15.36% 101% 2031 10/1/2029 16,941,103 6,377,397 37.64% 90% 16,941,103 2,539,013 14.99% 101% 2032 10/1/2030 17,488,016 6,392,876 36.56% 91% 17,488,016 2,577,527 14.74% 101% 2033 10/1/2031 17,973,009 6,486,468 36.09% 93% 17,973,009 2,643286 14.71% 101% 2034 10/1/2032 18,477,404 6,583,436 35.63% 94% 18,477,404 2,694,668 14.58% 101% 2035 10/1/2033 19,046,233 6,689,073 35.12% 96% 19,046,233 2,751,759 14.45% 101% 2036 10/1/2034 19,834,097 6,633,613 33.45% 97% 19,834,097 2,836,892 14.30% 101% 2037 10/1/2035 20,396,569 4,550,167 22.31% 99% 20,396,569 2,899,701 14.22% 101% Total: 128,620,609 51,917,598 Total Present Value: 65,940,665 26,182,182 1 Assumptions Mortality Assumption Healthy: RP -2000 Mortality Table for annuitants with mortality improvements projected to all future years using Scale BB; 90% blue / 10% white collar adjustment for males; 100% white collar adjustment for females. Disabled: 60% of the RP -2000 mortality and 40% of the RP2000 Mortality with a White Collar adjustment for disabled annuitants, set -back 4 years for males and set - forward 2 years for females. Investment Return Assumption and Actual Return on Plan Assets: 7.75% Administrative Expenses and Total Annual Chapter 185 State Money: Projected to increase 2.5% annually No future actuarial experience gains or losses are assumed. 2 Description of Proposed Plan Changes Hypothetical scenario under which the market value of assets is assumed to be equal to the Accrued Liability as of October 1, 2015. 4 V> v: 211 q L' m ao O h O O\ 00 M M N Oo N h 0 0 N r 1D O eti y y_ W C o q � o y p • d 1D h D1 M V) t- O N V 00 07 -o h O, m ul r o1 � 0 0 0 R •� M � D �D � t- n r n o0 m o0 00 01 a C rn 2 V p O q C N G n •O O + e e o e o o e o e o o a w k e o 0 o a o 0 0 h O N 7 10 d, N 7 10 Q` M Vl oo O M. 1D r h r r h 00 00 0o m T 01 01 01 0 0 0 0 0 0 0 O w R p o 0 0 0 o e o e o 0 0 0 0 0 0 0 0 0 0 0 a` q C N o0 1D -' M O D\ O 01 O \o 1D M r M 00 O O 00 01 O O N M ct cp \D 1D a O O 0 00 01 --� -•� O O O e N N N N N N N N N N N N m m M m 0 0 Cl w b� R R C 3 p C 00 H V G M 0% r O T ID O1 .-. a, oo T m .-+ h C1 r O O q q N N Vl m n b C' h b N a\ d' T V1 M �••� N W y C O O M O N oo C1 V1 10 .-- N o0 0 an Oo N M O ry uj = 0 N t V N O o0 l t l- a0 Q, O M 'n w N r- N w O O O y U K R C N 1D oo m m V1 n 01 N-4 b 00 m 1D w �O N 'y W Iy N N N N N m m M m m � d V Vl V) kn V1 rj R C X. 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'cd o vi 0 4 � 1D o0 �t N oo M 01 N ao ' oo m v D o S R O OA q ° o v iD 1D o o r a h D r -. v oo n h c m a, o w q F O N !f 00 N V) a a 7 0 o0 M O O p U a r '3 e N a i •-- '. .�. .-. .-. •-- .-. .-. .� .. •-- •-- -- -- .-. .-. �F-'4.1 r�� yy y ' O N M 't ul \D n w O+ O N m d' In O N N N N N N N N N N M M M m m m s O ¢ V N d O o O O O O O O O O O 0 O O O O O O O O O 'b 7 Q N N N N N N N N N N N N N N N W X .0 w Cd 7 O O O O O O O O O o O O O O O o o O O o 0 C y vRi V V O W op R q q d O .5 . '. .. _. ... �. . ... . _.. . ... .. r. ^. .. as ''2'' R F• l,' n oD O1 O N m� N 1D h 00 0, O --� N m V V) 1D r F 'L •�. ' V R CD N = N N N N N N N N M m m m M M m m '• O '� C W q N N N N N N N N N N N N N O O O N O N O O O C ; O y v cl W FF sdz A�� Oe L 91 � � � � roe (U Q on P, PC U 0 -Ioz dot u O Cr 4 � ,�,' '] � ;4 ^� d GQ PG e 0 0 U L N 9 e , X0 I t N C) C> (M Q M CD CD C� C� C= CD C� C� C� C� CD CD 0 0 CD CD CD uopnq!.ijuoj Paiaafola �1 Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.1616 phone - . '' Consultants & Actuaries Suite 505 954.525.0083 fax Ft. Lauderdale, FL 33301 -1804 www.gabrielroeder.com April 29, 2016 Ms. Barbara LaDue Pension Administrator Boynton Police & Fire Pension Funds Renaissance Executive Suites 1500 Gateway Blvd., #220 Boynton Beach, Florida 33426 Re: City of Boynton Beach Municipal Police Officers' Retirement Fund Actuarial Projection Study Dear Barbara: As requested, we have prepared a study with 25 -year projections illustrating the impact of potential changes to the investment return assumption for the City of Boynton Beach Municipal Police Officers' Retirement Fund (Plan). The results are based on census and asset data as of October 1, 2015. As directed, we have prepared projections under the two alternative scenarios described below. We have compared these projections to a baseline projection of the current plan in order to determine their projected impact on the Plan's future funded status and required contributions. Under all scenarios we have assumed that actual investment returns are 7.25% per year, in order to have an "apples to apples" comparison. Scenario A No changes to the Plan, but assume that starting on October 1, 2016, the investment return assumption is lowered by 10 basis points each year, with the first such decrease being from 7.75% to 7.65 %. The investment return is similarly lowered each year until reaching the ultimate rate of 7.25 %. The actual investment return on the market value of assets throughout the projection period is assumed to be 7.25% per year. Scenario B No changes to the Plan, but assume the investment return assumption is lowered from 7.75% to 7.50% effective October 1, 2016, with no further reductions planned. The actual investment return on the market value of assets throughout the projection period is assumed to be 7.25% per year. Disclosures This report was prepared at the request of the Board of Trustees and is intended for use by the Board and those designated or approved by the Board. This report may be provided to parties other than the Board only in its entirety and only with the permission of the Board. The purpose of this report is to describe the financial effect of potential changes to Plan assumptions. This report should not be relied on for any purpose other than the purpose described. Ms. Barbara La Due April 29, 2016 Page 2 The calculations in this report are based upon information furnished by the Plan Administrator for the October 1, 2015 Actuarial Valuation Report concerning Plan benefits, financial transactions, plan provisions and active 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 City or the Plan Administrator. Projections are deterministic, meaning that throughout the projection period, Plan experience is expected to exactly match the actuarial assumptions, except for the actual investment return on the market value of assets, which is assumed to be 7.25% per year regardless of the actuarial assumption. Throughout the projections, new members are assumed to be hired each year at a rate sufficient to maintain a constant active headcount. New members are assumed to have the same average demographic characteristics (age, gender, salary — adjusted each year for inflation) at their dates of employment as those of current members hired between October 1, 2010 and October 1, 2015 (during the five -year period ending on the most recent actuarial valuation / census data collection date). 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 this report. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic 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. If you have reason to believe that the assumptions that were used are unreasonable, that the plan provisions are incorrectly described, that important plan provisions relevant to this proposal are not described, or that conditions have changed since the calculations were made, you should contact the author of the report prior to relying on information in the report. Peter N. Strong and Melissa Moskovitz are members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. They are independent of the plan sponsor. We welcome your questions and comments. Sincerely yours, 6L_ AeterStrong, FSA, E , AAA Melissa Moskovitz, FCA, EA, MA A Senior Consultant and A uary Consultant and Actuary Enclosures This communication shall not be construed to provide tax advice, legal advice or investment advice. Gabriel Roeder Smith & Company City of Boynton Beach Municipal Police Officers' Retirement Fund 25 -Year Projection of Required City Contributions Current Plan Design and Updated Assumptions' Scenario A Required City Required City Contribution Contribution Fiscal Funded Funded Year Valuation Pensionable Ratio on Pensionable Ratio on Change as Ending Date Pay $ Amount % of Pay Val Date Pay $ Amount % of Pay Val Date $ Amount 2017 10/1/2015 12,345,798 4,791,528 38.81% 63% 12,345,798 4,791,528 38.81% 63% 0 2018 10/1/2016 12,719,406 5,214,808 41.00% 66% 12,719,406 5,348,194 42.05% 65% 133,386 2019 10/1/2017 13,064,393 5,574,856 42.67% 67% 13,064,393 5,869,355 44.93% 65% 294,499 2020 10 /1/2018 13,467,835 5,972,690 44.35% 68% 13,467,835 6,451,042 47.90% 66% 478,351 2021 10/1/2019 13,806,053 6,325,160 45.81% 69% 13,806,053 6,994,448 50.66% 67% 669,288 2022 10/1/2020 14,206,556 6,308,717 44.41% 71% 14,206,556 7,124,966 50.15% 68% 816,249 2023 10/1/2021 14,478,239 6,415,737 44.31% 73% 14,478,239 7,235,746 49.98% 70% 820,009 2024 10/1/2022 14,894,981 6,367,657 42.75% 75% 14,894,981 7,138,835 47.93% 72% 771,178 2025 10/1/2023 15,172,936 6,363,121 41.94% 76% 15,172,936 7,087,043 46.71% 74% 723,922 2026 10/1/2024 15,358,012 6,437,914 41.92% 78% 15,358,012 7,122,898 46.38% 76% 684,984 2027 10/1/2025 15,661,615 6,663,941 42.55% 79% 15,661,615 7,322,456 46.75% 78% 658,515 2028 10/1/2026 15,817,515 6,899,497 43.62% 80% 15,817,515 7,523,681 47.57% 79% 624,183 2029 10/1/2027 16,272,390 7,073,406 43.47 82% 16,272,390 7,648,008 47.00% 81% 574,602 2030 10/1/2028 16,518,950 7,072,325 42.81% 83% 16,518,950 7,599,443 46.00% 83% 527,118 2031 10/1/2029 16,941,103 6,973,514 41.16% 84% 16,941,103 7,443,672 43.94% 85% 470,159 2032 10/1/2030 17,488,016 7,080,146 40.49% 85% 17,488,016 7,490,042 42.83% 86% 409,895 2033 10/1/2031 17,973,009 7,266,822 40.43% 87% 17,973,009 7,613,894 42.36% 88 347,072 2034 10/1/2032 18,477,404 7,458,469 40.37% 88% 18,477,404 7,735,228 41.86% 90 0 /0 276,759 2035 10/1/2033 19,046,233 7,675,703 40.30% 89% 19,046,233 7,872,253 41.33% 91% 196,549 2036 10/1/2034 19,834,097 7,732,494 38.99% 90% 19,834,097 7,850,439 39.58% 93% 117,945 2037 10 /1/2035 20,396,569 5,639,594 27.65% 92% 20,396,569 5,784,420 28.36% 95% 144,826 2038 10/1/2036 21,109,885 5,167,090 24.48% 93% 21,109,885 5,156,740 24.43% 96% (10,350) 2039 10/1/2037 21,847,105 5,272,088 24.13% 94% 21,847,105 5,122,669 23.45% 97% (149,419) 2040 10/1/2038 22,643,296 5,099,469 22.52% 94% 22,643,296 4,922,880 21.74% 98% (176,589) 2041 10/1/2039 23,451,883 4,915,607 20.96% 94% 23,451,883 4,728,542 20.16% 98% (187,065) 2042 10/1/2040 24,280,029 4,969,652 20.47% 94% 24,280,029 4,716,160 19.42 99% (253,493) Total 162,732,005 171,694,582 8,962,577 Total Present Value 73,479,176 78,509,567 5,030,391 ' Assumptions Mortality Assumption: Healthy: RP -2000 Mortality Table for annuitants with mortality improvements projected to all future years using Scale BB; 90% blue / 10% white collar adjustment for males; 100% white collar adjustment for females. Disabled: 60% of RP -2000 Mortality Table for disabled annuitants with 4 -year setback for males and 2 -year set - forward for females, and 40% of RP2000 Mortality Table for healthy annuitants with a 100% white collar Current Investment Return Assumption and Actual Return on Plan Assets: 7.75% assumed; 7.25% actual return earned each year Administrative Expenses and Total Annual Chapter 185 State Money: Projected to increase 2.5% annually No future actuarial experience gains or losses are assumed, except for actual investment returns being less than assumed (7.25% actual each year). Z Description of Proposed Assumption Change Investment Return Assumption is lowered by 10 basis points each year, starting with 7.65% on October 1, 2016, until reaching 7.25°/x. 3 City of Boynton Beach Municipal Police Officers' Retirement Fund 25 -Year Projection of Required City Contributions Current Plan Design and Updated Assumptions Scenario B Required City Required City Contribution Contribution Fis cal Funded Funded Year Valuation Pensionable Ratio on Pensionable Ratio on Change as Ending Date Pay $ Amount % of Pay Val Date Pay $ Amount % of Pay Val Date $ Amount 2017 10/1/2015 12,345,798 4,791,528 38.81% 63% 12,345,798 4,791,528 38.81% 63% 0 2018 10/1/2016 12,719,406 5,214,808 41.00% 66% 12,719,406 5,529,162 43.47% 64% 314,355 2019 10/1/2017 13,064,393 5,574,856 42.67% 67% 13,064,393 5,934,488 45.42% 65% 359,632 2020 10/1/2018 13,467,835 5,972,690 44.35% 68% 13,467,835 6,355,141 47.19% 67% 382,451 2021 10/1/2019 13,806,053 6,325,160 45.81% 69% 13,806,053 6,715,077 48.64% 68% 389,917 2022 10/1/2020 14,206,556 6,308,717 44.41% 71% 14,206,556 6,677,105 47.00% 70% 368,388 2023 10 /1 /2021 14,478,239 6,415,737 44.31% 73% 14,478,239 6,769,227 46.75% 72% 353,491 2024 10/1/2022 14,894,981 6,367,657 42.75% 75% 14,894,981 6,694,216 44.94% 74% 326,559 2025 10/1/2023 15,172,936 6,363,121 41.94% 76% 15,172,936 6,665,853 43.93% 76% 302,732 2026 10/1/2024 15,358,012 6,437,914 41.92% 78% 15,358,012 6,720,327 43.76 78 0 /6 282,413 2027 10/1/2025 15,661,615 6,663,941 42.55% 79% 15,661,615 6,927,833 44.23% 79% 263,891 2028 10/1/2026 15,817,515 6,899,497 43.62% 80% 15,817,515 7,142,130 45.15% 80 0 /0 242,632 2029 10/1/2027 16,272,390 7,073,406 43.47% 82% 16,272,390 7,287,719 44.79% 82% 214,313 2030 10/1/2028 16,518,950 7,072,325 42.81% 83% 16,518,950 7,262,051 43.96% 83% 189,726 2031 10/1/2029 16,941,103 6,973,514 41.16% 84% 16,941,103 7,133,159 42.11% 85 159,645 2032 10/1/2030 17,488,016 7,080,146 40.49% 85% 17,488,016 7,207,441 41.21% 86 127,295 2033 10/1/2031 17,973,009 7,266,822 40.43% 87% 17,973,009 7,361,098 40.96% 88% 94,276 2034 10/1/2032 18,477,404 7,458,469 40.37% 88% 18,477,404 7,516„561 40.68% 89% 58,093 2035 10/1/2033 19,046,233 7,675,703 40.30% 89% 19,046,233 7,692,591 40.39% 91% 16,888 2036 10/1/2034 19,834,097 7,732,494 38.99% 90 0 /0 19,834,097 7,711,148 38.88% 92% (21,346) 2037 10/1/2035 20,396,569 5,639,594 27.65% 92% 20,396,569 5,646,439 27.68% 94% 6,845 2038 10/1/2036 21,109,885 5,167,090 24.48% 93% 21,109,885 5,099,640 24.16% 95% (67,450) 2039 10/1/2037 21,847,105 5,272,088 24.13% 94% 21,847,105 5,142,298 23.54% 96% (129,790) 2040 10/1/2038 22,643,296 5,099,469 22.52% 94% 22,643,296 4,963,025 21.92% 96% (136,443) 2041 10/1/2039 23,451,883 4,915,607 20.96% 94% 23,451,883 4,781,591 20.39% 96% (134,016) 2042 10/1 /2040 24,280,029 4,969,652 20.47% 94 24,280,029 4,811,173 19.82% 97% (158,479) Total 162,732,005 166,538,023 3,806,018 Total Present Value 73,479,176 76,083,763 2,604,587 ' Assumptions Mortality Assumption Healthy: RP -2000 Mortality Table for annuitants with mortality improvements projected to all future years using Scale BB; 90% blue / 10% white collar adjustment for males; 100% white collar adjustment for females. Disabled: 60% of RP -2000 Mortality Table for disabled annuitants with 4 -year setback for males and 2 -year set - forward for females, and 40 of RP2000 Mortality Table for healthy annuitants with a 100% white collar Current Investment Return Assumption and Actual Return on Plan Assets: 7.75% assumed; 7.25% actual return earned each year Administrative Expenses and Total Annual Chapter 185 State Money: Projected to increase 2.5% annually No future actuarial experience gains or losses are assumed, except for actual investment returns being less than assumed (7.25% actual each year). Z Description ofProposed Assumption Change Investment Return Assumption is lowered to 7.50% on October 1, 2016. 4 City of Boynton Beach Municipal Police Officers' Retirement Fund - 25 -Year Projection of Required City Contributions 4,000,000 8,000,000 p 7,000,000 �f 6.000,000 L 5,000,000 V Z -*-Current Plan 2 4,000,000 -:,- Scenario A: 7.25% Ultimate Rate a -*r Scenario B. 7.50% Rate 3,000,000 2,000,000 1,000,000 0 Fiscal Year End City of Boynton Beach Municipal Police Officers' Retirement Fund - 25 -Year Projection of Funded Ratio 105% 100% 95% 90% • zs',JJ't� 80% 75% , � �• j —EI—Current Plan e . —Scenario A: 7.25% Ultimate Rate 70% —L— Scenario B: 7.50% Rate 60% ti � ti ti ti ti ti ti ti ti ti ti ti Fiscal Year End 6 Barbara Ladue a From: Pete.Strong @gabrielroeder.com Sent: Friday, April 29, 2016 4:57 PM To: ladueb @bbpdpension.com Cc: AtholT @bbfl.us; cl00550 @gabrielroeder.com Subject: Boynton Police - Actuarial Study Concerning Investment Return Assumption Attachments: Boynton Police Inv Return Assumption Study - 4- 29- 2016.pdf Good afternoon Barbara, Attached is an electronic (PDF) version of our actuarial projection study showing the impact of potential (recommended) changes to the investment return assumption for the City of Boynton Beach Municipal Police Officers' Retirement Fund. This study was requested during the February Pension Board meeting when I recommended a reduction in the investment return assumption to the Board. The original signed hard copy is being mailed to your attention. Please let me know if you have questions. Best regards, 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.stronp_@p,abrielroeder.com The above communication shall not be construed to provide tax advice, legal advice or investment advice. Notice of Confidentiality: This transmission contains information that may be confidential and that may also be privileged. Unless you are the intended recipient of the message (or authorized to receive it for the intended recipient), you may not copy, forward, or otherwise use it, or disclose its contents to anyone else. If you have received this transmission in error, please notify the sender immediately and delete it from your system. Please consider the environment before printing this e-mail. t 1`j r1 Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.1616 phone Consultants & Actuaries Suite 505 954.525.0083 fax Ft. Lauderdale, FL 33301 -1804 www.gabrielroeder.com March 31, 2016 Ms. Barbara LaDue Pension Administrator Renaissance Executive Suites 1500 Gateway Blvd., 4220 Boynton Beach, FL 33426 Re: City of Boynton Beach Municipal Police Officers' Retirement Fund Dear Barbara: Enclosed is the Chapter 112.664, Florida Statutes Compliance Report for the City of Boynton Beach Municipal Police Officers' Retirement Fund in connection with the October 1, 2015 Funding Actuarial Valuation Report and the Plan's Financial Reporting for the Year Ending September 30, 2015. A link to this report, as well as links to the October 1, 2015 Actuarial Valuation Report and the Plan's financial statement, will need to be placed on the City's website since the Pension Plan does not have its own website. The investment consultant will also need to provide certain information to be included on the City's website (the asset allocation and 5 -year history of actual versus assumed investment returns). We welcome your questions and comments. Sincerely yours, Peter N. Strong, FSA Senior Consultant and Actuary PS /ib Enclosure �D C Gabriel Roeder Smith & Company J Consultants & Actuaries CITY OF BOYNTON BEACH MUNICIPAL POLICE OFFICERS' RETIREMENT FUND Chapter 112.664, F.S. Compliance Report In Connection with the October 1, 2015 Funding Actuarial Valuation Report And the Plan's Financial Reporting for the Year Ending September 30, 2015 GRS 4 '� r Gabriel Roeder Smith &Company One East Broward Blvd. 954.527.1616 phone I 1 .' - 4 `+ Consultants & Actuaries Suite 505 954.525.0083 fax Ft. Lauderdale, FL 33301 -1804 www.gabrielroeder.com March 31, 2016 Board of Trustees City of Boynton Beach Municipal Police Officers' Retirement Fund Boynton Beach, Florida Dear Board Members: Gabriel, Roeder, Smith & Company (GRS) has been engaged by the City of Boynton Beach Municipal Police Officers' Retirement Fund (Plan) to prepare a disclosure report to satisfy the requirements set forth in Ch. 112.664, F.S. and as further required pursuant to Ch. 60T- 1.0035, F.A.C. This report was prepared at the request of the Board and is intended for use by the Retirement Board and those designated or approved by the Board. This report may be provided to parties other than the System only in its entirety and only with the permission of the Board. The purpose of the report is to provide the required information specified in Ch. 112.664, F.S. as well as supplement this information with additional exhibits. This report should not be relied on for any purpose other than the purpose described above. The findings in this report are based on data or other information through September 30, 2015. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic 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. The scope of this engagement does not include an analysis of the potential range of such measurements. This report was based upon information furnished by the City and the Board concerning Plan benefits, financial transactions, plan provisions and active members, terminated members, retirees and beneficiaries. We checked 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 City. Except as otherwise indicated as required for the disclosures contained herein, this report was prepared using certain assumptions selected by the Board as described in our October 1, 2015 actuarial valuation report. This report is also based on the Plan Provisions, census data, and financial information as summarized in our October 1, 2015 actuarial valuation report. Please refer to the October 1, 2015 actuarial valuation report, dated February 8, 2016, for summaries and descriptions of this information. The use of an investment return assumption that is 2% higher than the investment return assumption used to determine the funding requirements does not represent an estimate of future Plan experience nor does it reflect an observation of future return estimates inherent in financial market data. The use of this investment return assumption is provided as a counterpart to the Chapter 112.664, Florida Statutes requirement to utilize an investment return assumption that is 2% lower than the assumption used to determine the funding requirements. The inclusion of the additional exhibits showing the effect of using a 2% higher investment return assumption shows a more complete assessment of the range of possible results as opposed to showing a one -sided range as required by Florida Statutes. Peter N. Strong and Jeffrey Amrose are members of the American Academy of Actuaries 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. This report has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Retirement 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 Standards Board and with applicable statutes. With respect to the reporting standards for defined benefit retirement plans or systems contained in Section 112.664(1) F.S., the actuarial disclosures required under this section were prepared and completed by me or under my direct supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the results are complete and accurate, and in my opinion, meet the requirements of Section 112.664(1), F.S. and Section 60T- 1.0035, F.A.C. Respectfully submitted, GABRIEL, ROEDEI?, SMITH AND COMPANY By Atnz By Peter N. Strong, FSA, FC AAA e Amrose, MAAA Enrolled Actuary No. 14-06975 Enrolled Actuary No. 14 -06599 Senior Consultant & Actuary Senior Consultant & Actuary Gabriel Roeder Smith & Company TABLE OF CONTENTS Title page Ch. 112.664, F.S. Results Schedule of Changes in Net Pension Liability 1. Using financial reporting assumptions per GASB Statement No. 67 1 2. Using assumptions prescribed in Section 112.664(1)(a), F.S. 2 3. Using assumptions prescribed in Section 112.664(1)(b), F.S. 3 4. Using the mandated mortality and funding interest rate +2% 4 Assets Versus Benefit Payments Projections I. Using assumptions from the Plan's latest Actuarial Valuation 5 2. Using assumptions prescribed in Section 112.664(1)(a), F.S. 6 3. Using assumptions prescribed in Section 112.664(1)(b), F.S. 7 4. Using the mandated mortality and funding interest rate +2% 8 Actuarially Determined Contribution 9 GRS CH. 112.664, Florida Statutes RESULTS GRS 1 Schedule of Changes in the Employers' Net Pension Liability Using Financial Reporting Assumptions per GASB Statement No. 67 Fiscal year ending September 30, 2015 1. Total pension liability a. Service Cost $ 2,767,701 b. Interest 8,679,595 c. Benefit Changes - d. Difference between actual & expected experience & Other (1,380,913) e. Assumption Changes 617,426 f. Benefit Payments (5,438,713) g. Contribution Refunds (69,179) h. Net Change in Total Pension Liability 5,175,917 i. Total Pension Liability - Beginning 111,783,071 j. Total Pension Liability - Ending $ 116,958,988 2. Plan Fiduciary Net Position a. Contributions - Employer $ 4,365,259 b. Contributions - Employer (From State) 675,227 c. Contributions - Non - Employer Contributing Entity - d. Contributions - Member 1,040,875 e. Net Investment Income 1,428,464 f. Benefit Payments (5,438,713) g. Contribution Refunds (69,179) h. Administrative Expense (153,104) i. Other 78,814 j. Net Change in Plan Fiduciary Net Position 1,927,643 k. Plan Fiduciary Net Position - Beginning 76,282,065 1. Plan Fiduciary Net Position - Ending $ 78,209,708 3. Net Pension Liability / (Asset) 38,749,280 Certain Key Assumptions Valuation Date 10/01/2014 Measurement Date 09/30/2015 Investment Return Assumption 7,75% Mortality Table 20% 83GAM, 80% RP2000 fully generational using Scale AA GRS 2 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions required under 112.664(1)(a), F.S. Fiscal year ending September 30, 2015 1. Total pension liability a. Service Cost $ 2,905,696 b. Interest 8,666,995 c. Benefit Changes - d. Difference between actual & expected experience & Other 395,891 e. Assumption Changes - f. Benefit Payments (5,438,713) g. Contribution Refunds (69,179) h. Net Change in Total Pension Liability 6,460,690 i. Total Pension Liability - Beginning 111,482,500 j. Total Pension Liability - Ending $ 117,943,190 2. Plan Fiduciary Net Position a. Contributions - Employer $ 4,365,259 b. Contributions - Employer (From State) 675,227 c. Contributions - Non - Employer Contributing Entity - d. Contributions - Member 1,040,875 e. Net Investment Income 1,428,464 f. Benefit Payments (5,438,713) g. Contribution Refunds (69,179) h. Administrative Expense (153,104) i. Other 78,814 j. Net Change in Plan Fiduciary Net Position 1,927,643 k. Plan Fiduciary Net Position - Beginning 76,282,065 1. Plan Fiduciary Net Position - Ending $ 78,209,708 3. Net Pension Liability / (Asset) 39,733,482 Certain Key Assumptions Valuation Date 10/01/2014 Measurement Date 09/30/2015 Investment Return Assumption 7.75% Mortality Table RP -2000 Fully Generational using Scale AA GRS 3 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions required under 112.664(1)(b), F.S. Fiscal year ending September 30, 2015 1. Total pension liability a. Service Cost $ 4,470,562 b. Interest 8,099,766 c. Benefit Changes - d. Difference between actual & expected experience & Other 395,891 e. Assumption Changes f. Benefit Payments (5,438,713) g. Contribution Refunds (69,179) h. Net Change in Total Pension Liability 7,458,327 i. Total Pension Liability - Beginning 138,950,934 j. Total Pension Liability - Ending $ 146,409,261 2. Plan Fiduciary Net Position a. Contributions - Employer $ 4,365,259 b. Contributions - Employer (From State) 675,227 c. Contributions - Non - Employer Contributing Entity - d. Contributions - Member 1,040,875 e. Net Investment Income 1,428,464 f. Benefit Payments (5,438,713 g. Contribution Refunds (69,179) h. Administrative Expense (153,104) i. Other 78,814 j. Net Change in Plan Fiduciary Net Position 1,927,643 k. Plan Fiduciary Net Position - Beginning 76,282,065 1. Plan Fiduciary Net Position - Ending $ 78,209,708 3. Net Pension Liability / (Asset) 68,199,553 Certain Key Assumptions Valuation Date 10/01/2014 Measurement Date 09/30/2015 Investment Return Assumption 5.75% Mortality Table RP -2000 Fully Generational using Scale AA GRS 4 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions under 112.664(1)(b), F.S. except 2% higher investment return assumption Fiscal year ending September 30, 2015 1. Total pension liability a. Service Cost $ 1,948,317 b. Interest 8,939,747 c. Benefit Changes - d. Difference between actual & expected experience & Other 395,891 e. Assumption Changes - f. Benefit Payments (5,438,713) g. Contribution Refunds (69,179) h. Net Change in Total Pension Liability 5,776,063 i. Total Pension Liability - Beginning 92,297,399 j. Total Pension Liability - Ending $ 98,073,462 2. Plan Fiduciary Net Position a. Contributions - Employer $ 4,365,259 b. Contributions - Employer (From State) 675,227 c. Contributions - Non - Employer Contributing Entity - d. Contributions - Member 1,040,875 e. Net Investment Income 1,428,464 f. Benefit Payments (5,438,713) g. Contribution Refunds (69,179) h. Administrative Expense (153,104) i. Other 78,814 j. Net Change in Plan Fiduciary Net Position 1,927,643 k Plan Fiduciary Net Position - Beginning 76,282,065 1. Plan Fiduciary Net Position - Ending $ 78,209,708 3. Net Pension Liability / (Asset) 19,863,754 Certain Key Assumptions Valuation Date 10 /01 /2014 Measurement Date 09/30/2015 Investment Return Assumption 9.75% Mortality Table RP -2000 Fully Generational using Scale AA GRS 5 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions from Plan's most recent actuarial valuation Market Value of Expected Projected Benefit Market Value of FYE Assets (BOY) Investment Return Payments Assets (EOY) 2016 66,615,212 4,952,354 5,427,729 66,139,837 2017 66,139,837 4,904,576 5,709,973 65,334,440 2018 65,334,440 4,830,072 6,021,872 64,142,640 2019 64,142,640 4,727,701 6,280,085 62,590,256 2020 62,590,256 4,594,678 6,608,182 60,576,752 2021 60,576,752 4,428,257 6,875,891 58,129,118 2022 58,129,118 4,226,518 7,186,801 55,168,836 2023 55,168,836 3,987,816 7,426,283 51,730,369 2024 51,730,369 3,709,585 7,729,504 47,710,450 2025 47,710,450 3,384,060 8,090,316 43,004,194 2026 43,004,194 3,009,362 8,347,443 37,666,113 2027 37,666,113 2,584,553 8,634,090 31,616,576 2028 31,616,576 2,112,109 8,727,115 25,001,570 2029 25,001,570 1,594,246 8,861,317 17,734,498 2030 17,734,498 1,029,569 8,899,472 9,864,595 2031 9,864,595 420,063 8,888,862 1,395,796 2032 1,395,796 - 8,873,887 - 2033 - - 8,844,364 - 2034 - - 8,780,438 - 2035 - - 8,653,743 - 2036 - - 8,553,309 - 2037 - - 8,408,117 - 2038 - - 8,263,421 - 2039 - 8,101,741 - 2040 - - 7,936,254 - 2041 - - 7,764,752 - Number of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statues and Plan provisions 16.17 Certain Key Assumptions Valuation Investment return assumption 7.75% Valuation Mortality Table Florida Retirement System - Special Risk Mortality Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near -term and long -term future. �� 6 Asset and Benefit Payment Projection Not Reflecting Any Contributions fi-om the Employer, State or Employee Using Assumptions required under 112.664(1)(a), F.S. Market Value of Expected Projected Benefit Market Value of FVE Assets (BOV) Investment Return Payments Assets (EOY) 2016 66,615,212 4,952,538 5,422,985 66,144,765 2017 66,144,765 4,905,046 5,707,709 65,342,102 2018 65,342,102 4,830,615 6,023,168 64,149,549 2019 64,149,549 4,728,025 6,285,541 62,592,033 2020 62,592,033 4,594,383 6,619 ,338 60,567,078 2021 60,567,078 4,426,799 6,894,172 58,099,706 2022 58,099,706 4,223,159 7,214,658 55,108,207 2023 55,108,207 3,981,629 7,464,706 51,625,130 2024 51,625,130 3,699,498 7,779,351 47,545,276 2025 47,545,276 3,368,773 8,154,487 42,759,562 2026 42,759,562 2,987,412 8,424,610 37,322,364 2027 37,322,364 2,554,056 8,733,618 31,142,802 2028 31,142,802 2,070,736 8,847,250 24,366,288 2029 24,366,288 1,539,633 9,000,117 16,905,804 2030 16,905,804 959,225 9,057,420 8,807,609 2031 8,807,609 331,415 9,062,565 76,459 2032 76,459 - 9,064,779 - 2033 - - 9,047,924 - 2034 - - 8,996,814 - 2035 - - 8,883,039 - 2036 - - 8,791,937 - 2037 - - 8,653,426 2038 - - 8,508,651 - 2039 - 8,347,098 - 2040 - - 8,176,335 - 2041 - - 7,996,144 - Number of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statues and Plan provisions 16.00 Certain Key Assumptions Valuation Investment return assumption 7.75% Valuation Mortality Table RP -2000 Fully Generational using Scale AA Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is e xpe cte d to be able to s us tain the be ne fit payme nt de mands in the ne ar -te rm and to ng -te rm future. G147 7 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions required under 112.664(1)(b), F.S. Market Value of Expected Projected Benefit Market Value of FYE Assets (BOY) Investment Return Payments Assets (EOY) 2016 66,615,212 3,674,464 5,422,985 64,866,691 2017 64,866,691 3,565,738 5,707,709 62,724,720 2018 62,724,720 3,433,505 6,023,168 60,135,057 2019 60,135,057 3,277,056 6,285,541 57,126,573 2020 57,126,573 3,094,472 6,619,338 53,601,707 2021 53,601,707 2,883,891 6,894,172 49,591,425 2022 49,591,425 2,644,086 7,214,658 45,020,853 2023 45,020,853 2,374,089 7,464,706 39,930,236 2024 39,930,236 2,072,332 7,779,351 34,223,217 2025 34,223,217 1,733,393 8,154,487 27,802,123 2026 27,802,123 1,356,415 8,424,610 20,733,928 2027 20,733,928 941,109 8,733,618 12,941,419 2028 12,941,419 489,773 8,847,250 4,583,942 2029 4,583,942 4,823 9,000,117 - 2030 - - 9,057,420 - 2031 - - 9,062,565 - 2032 - - 9,064,779 - 2033 - - 9,047,924 - 2034 - - 8,996,814 - 2035 - - 8,883,039 - 2036 - 8,791,937 - 2037 - - 8,653,426 - 2038 - - 8,508,651 - 2039 - 8,347,098 - 2040 - - 8,176,335 - 2041 - - 7,996,144 - Number of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statues and Plan provisions 13.50 Certain Key Assumptions Valuation Investment return assumption 5.75% Valuation Mortality Table RP -2000 Fully Generational using Scale AA Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near -term and long -term future. GRS 8 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions under 112.664(1)(b), F.S. except 2% higher investment return assumption Market Value of Expected Projected Benefit Market Value of FYE Assets (BOY) Investment Return Payments Assets (EOY) 2016 66,615,212 6,230,613 5,422,985 67,422,840 2017 67,422,840 6,295,476 5,707,709 68,010,607 2018 68,010,607 6,337,405 6,023,168 68,324,843 2019 68,324,843 6,355,252 6,285,541 68,394,554 2020 68,394,554 6,345,776 6,619,338 68,120,993 2021 68,120,993 6,305,706 6,894,172 67,532,527 2022 67,532,527 6,232,707 7,214,658 66,550,575 2023 66,550,575 6,124,777 7,464,706 65,210,646 2024 65,210,646 5,978,795 7,779,351 63,410,090 2025 63,410,090 5,784,953 8,154,487 61,040,555 2026 61,040,555 5,540,754 8,424,610 58,156,700 2027 58,156,700 5,244,514 8,733,618 54,667,596 2028 54,667,596 4,898,787 8,847,250 50,719,133 2029 50,719,133 4,506,360 9,000,117 46,225,376 2030 46,225,376 4,065,425 9,057,420 41,233,381 2031 41,233,381 3,578,455 9,062,565 35,749,270 2032 35,749,270 3,043,646 9,064,779 29,728,137 2033 29,728,137 2,457,407 9,047,924 23,137,620 2034 23,137,620 1,817,323 8,996,814 15,958,130 2035 15,958,130 1,122,869 8,883,039 8,197,960 2036 8,197,960 370,694 8,791,937 - 2037 - - 8,653,426 - 2038 - - 8,508,651 - 2039 - - 8,347,098 - 2040 - - 8,176,335 - 2041 - - 7,996,144 - Number of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statues and Plan provisions 20.92 Certain Key Assumptions Valuation Investment return assumption 9.75% Valuation Mortality Table RP -2000 Fully Generational using Scale AA Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near -term and long -term future. GRS 9 ACTUARIALLY DETERMINED CONTRIBUTION 112.664(I)(b) F.S. except 2% Higher Plan's Latest Actuarial 112.664(1)(a) F.S. 112.664(1)(b) F.S. Investment Return Valuation Assumptions Assumptions Assumption A. Valuation Date October 1, 2015 October 1, 2015 October 1, 2015 October 1, 2015 B. Actuarially Determined Contribution (ADC) to Be Paid During Fiscal Year Ending 9/30/2017 9/30/2017 9/30/2017 9/30/2017 C. Assumed Dates of Employer Contributions 10/1/2016 10/1/2016 10/1/2016 10/1/2016 D. Annual Payment to Amortize Unfimded Actuarial Liability $ 2,656,247 $ 2,715,911 $ 3,513,938 $ 1,836,782 E. Employer Normal Cost 2,425,913 2,479,082 4,170,101 1,440,354 F. Employer ADC if Paid on Valuation 5,082,160 5,194,993 7,684,039 3277,136 Date: D + E G. Employer ADC Adjusted for Frequency 5,082,160 5,194,993 7,684,039 3,277,136 of Payments H. Employer ADC Adjusted for Frequency of Payments as % of Covered Payroll 43.16 % 44.12 % 65.26 % 27.83 % I. Assumed Rate of Increase in Covered Payroll to Contribution Year N/A N/A N/A N/A J. Covered Payroll for Contribution Year 12,179 ,367 12,179,367 12,179,367 12,179,367 K. Employer ADC for Contribution Year: H x J 5256,615 5,373,537 7,948,255 3,389,518 L. Allowable Credit for State Revenue in Contribution Year* 465,087 465,087 465,087 465,087 M. Net Employer ADC in Contribution Year 4,791,528 4,908,450 7,483,168 2,924,431 N. Net Employer ADC as % of Covered Payroll in Contribution Year: M - J 39.34 % 40.30 % 61.44 % 24.01 % O. Expected Member Contribution 852,556 852,556 852,556 852,556 P. Total Contribution (Including Members) in Contribution Year 6,109,171 6,226,093 8,800,811 4,242,074 Q. Total Contribution as % of Covered Payroll in Contribution Year: P - J 50.16 % 51.12 % 72.26 % 34.83 % R. Certain Key Assumptions Investment Return Assumption 7.75% 7.75% 5.75% 9.75% Mortality Table Florida Retirement RP -2000 Fully RP -2000 Fully RP -2000 Fully System - Special Generational Generational Generational Risk Mortality using Scale AA using Scale AA using Scale AA GRS CITY OF BOYNTON BEACH POLICE OFFICERS' PENSION FUND SCHEDULE OF PENSION AMOUNTS September 30, 2015 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 Member Members of the Firm American Institute of John N. Davidson, CPA, CVA Certified Public Accountants Harry B. Jamieson, CPA Florida Institute of Richard A. Cristini, CPA, CPPT, CGFM Certified Public Accountants Jeanine L. Bittinger, CPA, CPPT The Board of Trustees City of Boynton Police Officers' Pension Fund Renaissance Executive Suites 1500 Gateway Blvd., Suite #220 Boynton Beach, Florida 33426 Independent Auditor's Report We have audited the accompanying schedule of pension amounts ofthe City of Boynton Beach Police Officers' Pension Fund (Plan) as of and for the year ended September 30, 2015, and the related notes. We have also audited the columns titled net pension liability, total deferred outflows of resources, total deferred inflows of resources, and total pension expense (specified column totals) included in the accompanying schedule of pension amounts of the Plan as of and for the year ended September 30, 2015, and the related notes. Management's Responsibility for the Schedules Management is responsible for the preparation and fair presentation of this schedule 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 the schedule that is free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinion on the specified column totals included in the schedule of pension amounts based on our audit. We conducted our audit 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 specified column totals included in the schedule of pension amounts are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the specified column totals included in the schedule of pension amounts. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the pension amounts, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation 1 The Board of Trustees City of Boynton Beach Police Officers' Pension Fund Boynton Beach, Florida and fair presentation of the specified column totals included in the schedule of pension amounts. 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 entity'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 specified column totals included in the schedule of pension amounts. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the schedule referred to above presents fairly in all material respects, the net pension liability, total deferred outflows of resources, total deferred inflows of resources, and total pension expense for the Plan as of and for the year ended September 30, 2015, in accordance with accounting principles generally accepted in the United States of America. Other Matter We have audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements of the City of Boynton Beach Police Officers' Pension Fund as of and for the year ended September 30, 2015, and our report thereon, dated January 14, 2016, expressed an unmodified opinion on those financial statements. Restriction on Use Our report is intended solely for the information and use of the City of Boynton Beach Police Officers' Pension Fund Fund management, the City of Boynton Beach, Florida and its auditors and is not intended to be and should not be used by anyone other than these specified parties. j `mil March 9, 2016, 2 CITY OF BOYNTON BEACH POLICE OFFICERS' PENSION FUND SCHEDULE OF PENSION AMOUNTS As of and for the year ended September 30, 2015 Net Deferred Deferred Pension Outflows Inflows of Pension Liability of Resources Resources Expens Totals $ 33.852,000 $ - $ 2,748,175 $ 4,301.069 See Notes to Schedule of Pension Amounts. 3 CITY OF BOYNTON BEACH POLICE OFFICERS' PENSION FUND NOTES TO SCHEDULE OF PENSION AMOUNTS As of and for the year ended September 30, 2015 Net Penion Liability Valuation date: September 30, 2014 Measurement date: September 30, 2015 Methods and Assumptions Used to Determine Net Pension Liability: Actuarial cost method Entry age normal Inflation 4.0% Salary Increases 5.0% to 6.5% depending on age, including inflation Investment Rate of Return 7.75% Retirement Age Experience -based table of rates that are specific to the type of eligibility condition Mortality 60% RP -2000 Combined Healthy Partricipant Mortality Table for males and females with mortality improvements proj ected to all future years after 2000 using Scale AA; 4 40% 1983 Group Annuity Mortallity Table for males and females Other Information: Notes See Discussion of Valuation Results in the October 1, 2014 Actuarial Valuation Report. Deferred Outflows and Deferred Inflows of Resources by Years to be Recognized in Future Pension Expenses Year ending Net Deferred Outflows September 30 of Resources 2016 $ (669,942) 2017 (669,942) 2018 (669,942) 2019 (669,942) 2020 (68,407) Thereafter Total $ (2.748.1751 4 Barbara Ladue From: Jeanine Bittinger <jb @djcpl.com> Sent: Monday, March 21, 2016 11:14 AM To: Barbara LaDue Subject: City audit - special report Attachments: 2015 Boynton Beach Police Officers' Pension Schedule of Pension Amounts.pdf, ATT00001.txt Barbara, Attached is the second special report. Can you please forward it to Tim Howard? Thanks! Jeanine 1 Q Russell Investments Invoice Invoice for: Invoice Number Russell Client ID Billing Period Ending City of Boynton Beach Police Retirement 53151 004616001 03/31/2016 Fund 1500 Gateway Blvd #220 Invoice Date Payment Terms Total Amount Due Boynton Beach, FL 33426 04/19/2016 Net 30 Days $132,272.00 Mail to: City of Boynton Beach Police Retirement Specify Remittance Information Fund 1500 Gateway Blvd #220 ❑ Payment by check Boynton Beach, FL 33426 Make check payable to Russell Investments Check Amount $ ❑ Request payment by Direct Debit Authorized Signer See additional instructions on reverse side Please return upper portion with your check or direct debit request The following is a summary of your account(s). For more information, please review the enclosed detail. Direct Debit per Description of Service Fee Amount Standing instructions or Amount Due Payments Received Russell Investments Investment Management Fees $ 132,272.00 $ 0.00 $132,272.00 Current Period Fees $ 132,272.00 $ 0.00 $132,272.00 Balance Forward 136,121.00 (136,121.00) 0.00 Total Amount Due $132,272.00 Invoice Number Invoice Date Russell Client ID Payment Terms Billing Period Ending 53151 04/19/2016 C04616001 Net 30 Days 03/31/2016 Current Period Over 30 Days Over 60 Days Over 90 Days Total Amount Due $132,272.00 $ 0.00 $ 0.00 $ 0.00 $ 132,272.00 Invoice for: City of Boynton Beach Police Retirement Fund 1500 Gateway Blvd #220 Boynton Beach, FL 33426 (See reverse side for additional information) Invoice Invoice Number: 53151 Billing Period Ending: 03/31/2016 Russell Investments - FEE DETAIL Investment Management Fees City of Boynton Beach Police Retirement Fund Boynton Beach Police Officers Retirement Trust Funds Investment Account Account Number: QU7W Fund Name Average Rate% Fee Amount Market Value Russell Multi -Asset Core Fund 30,719,239 0.23000 70,654.00 Russell Large Cap Defensive 20,894,550 0.16500 34,476.00 Equity Fund Russell Multi- Manager Bond Fund 22,811,266 0.12250 27,944.00 Russell Real Estate Equity Fund 6,418,961 0.36250 23,269.00 Subtotal 80,844,036 $ 156,343.00 Russell Real Estate Equity Fund - Internal Fee Paid (24,071.00) Account Total $ 132,272.00 Total Investment Management Fees $ 132,272.00 Page 2 Russell Investments MANAGER 4525 - - INVOICE NO. 1603074706 -9997 PO BOX 556847 DATE 2016/04/28 Minneapolis, MN 55485 -6847 PAGE 1 OF 1 TOTAL CHARGES CURRENT PERIOD USD 994.75 9BYM- Police Officer Retirement Trust Police Officer Retirement Trust FOR 3 MONTE PERIOD 1101116 to 3/31/16 City of Boynton Beach DB Boynton Police & Fire Pension Fnds, 1500 Gateway B1vd,Suite #220Account ID: BOYNTON POLICE Pension Administrator Pay Type 3 Boynton Beach, FL 33426 ATTENTION Barbara L. Ladue PLEASE DETACH THIS PORTION AND RETURN WITH YOUR PAYMENT CHARGES BENEFIT PAYMENT CHECK FEES ACE Benefit Payments 329 AT 1.25 411.25 Benefit Payments 9 AT 1.25 11.25 Lump Sum Payments 6 AT 10.00 60.00 BENEFIT PAYMENT: OTHER FEES State Tax Filing 9 AT 25.00 225.00 ** SUBTOTAL FEES ** 707.50 OUT OF POCKET CHARGES POSTAGE 17 -2015 Tax Form 1099R Postage 9.69 113 -2015 Tax Form 1099R Postage 64.41 74.10 Advice of Deposit 185.82 Benefit Payment 5.13 Lump Sum 3.42 UPS DELIVERY UPS Charges 12/31/2015 6.26 UPS Charges 1/27/2016 6.26 UPS Charges 2/26/2016 6.26 18.78 ** SUBTOTAL OUT OF POCKET ** 287.25 CURRENT CHARGES USD 994.7 5 INVA 1603074706 -9997 9BYM- Police Officer Retirement Trust 2016/04/28 2015 Compensation Disclosure Report DDA. '..Enterest Zstimate 2015 Barbara L. Ladue City of Boynton Beach Boynton Police & Fire Pension Fnds, 1500 Gateway B1vd,Suite #220 Pension Administrator Boynton Beach, FL 33426 Dear Customer, Following is the annual estimated 2015 benefit payment float income for your plan(s). If you have any questions, please don't hesitate to contact your State Street Retiree Services client service manager. Sincerely, State Street Retiree Services Client Invoice Payment Type Interest Earned 9BYM LUMP SUM $0.29 9BYM PENSION $4.36 Total 2015 Estimated DDA $4.65 * This report discloses variable compensation paid directly or indirectly to State Street Bank and Trust Company (or its affiliates) in connection with recordkeeping, benefit payment or other services provided to your plan(s). The amounts indicated may be based upon average balances, allocated shares and/or a reasonable estimate of the revenue generated by your plan(s). To the extent State Street Affiliates perform services for your plan(s), such affiliates may share revenue received with State Street Bank and Trust Company or may credit State Street for such revenue against amounts due from State Street to such affiliate. Personal Sensitive Data Klausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations f � a Attorneys At Law t ' 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 POLICE OFFICERS' PENSION FUND March 31, 2016 Attn: CHAIRMAN Bill # 18004 1500 GATEWAY BLVD., SUITE 220 BOYNTON BEACH, FL 33426 For Legal Services Rendered Through 03/31/16 CLIENT: BOYNTON BEACH POLICE OFFICERS' PENSION FUND : BBPOLBSJ MATTER: BOYNTON BEACH POLICE OFFICERS' PENSION FUND :150046 Professional Fees Date Attorney Description Hours Amount 03/01/16 BSJ REVIEW KELLMAN MEDICAL RECORDS 0.50 112.50 03/01/16 BSJ REVIEW EMAILS FROM SCOTT 0.50 112.50 PORTER, SCOTT BAUR, JIM BURDICK, BARBARA LADUE AND JEANINE BITTINGER 03/02/16 BSJ REVIEW AGENDA FOR JOINT MEETING 0.30 67.50 WITH FIREFIGHTERS; TELEPHONE CALL WITH BARBARA LADUE; REVIEW AGENDA FOR MEETING TO REVIEW SEPARATE BIDDER FROM FIREFIGHTERS 03/03116 BSJ REVIEW EMAILS ON STATUS OF GASB 0.30 67.50 68 AUDIT WORK; TELEPHONE CALL WITH TIM HOWARD (UM) 03/07/16 BSJ REVIEW NEWS ARTICLE REGARDING 0.10 22.50 PENSION FUNDS 03/10/16 BSJ REVIEW MEDICAL RECORD SUMMARY 0.30 67.50 FROM MELISSA SCHWARTZ. LCSW, LM FT 03/10/16 BSJ DRAFT MEMORANDUM REGARDING 0.10 22.50 NORMAL RETIREMENTAGE; REVIEW IRS BULLETIN 2016 -7 03/16/16 BSJ ATTEND MEETING FOR 4.50 1,012.50 ADMINISTRATOR RFP PRESENTATIONS 03/24/16 BSJ TELEPHONE CALL WITH PAUL KELLEY 0.30 67.50 REGARDING KELLMAN MEDICAL RECORDS Continued .. . Client: BOYNTON BEACH POLICE OFFICERS' PENSION FUND March 31, 2016 Matter: 150046 - BOYNTON BEACH POLICE OFFICERS' PENSION Page 2 Professional Fees Continued... Date Attorney Description Hours Amount 03/30/16 BSJ RECEIVE MESSAGE FROM PAUL 0.50 112.50 KELLEY; RESEARCH FLORIDA STATUTES FOR PSYCHIATRIST RECORDS; EMAIL TO PAUL KELLEY 03/31/16 BSJ TELEPHONE CALL WITH TIM HOWARD 0.50 112.50 REGARDING REHIRE AFTER RETIREMENT 03/31/16 BSJ RESEARCH REQUIREMENT FOR 0.30 67.50 DISTRIBUTING PLAN TO VERIFY THAT RECEIVING PLAN CAN ACCEPT ROLLOVERS; TELEPHONE CALL WITH KERRY DUTTON; DRAFT AMENDMENT TO FORM Totai for Services 8.20 $'1;845.00 Costs Date Description Amount 02/22/16 FEDEX TO DR. SCHWARTZ RE KELLMAN 7.20 Total Costs $7.20 CURRENT BILL TOTAL AMOUNT DUE $ 1,852.20 Past Due Balance 3,942.00 AMOUNT DUE $5,794.20 ) Klausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations 0 Attorneys At Law t 7080 N.W. 4th Street C ICE Plantation, Florida 33317 Tel. (954) 916 -1202 www.robertdklausner.com Fax (954) 916 -1232 Tax I.D.: 45- 4083636 BOYNTON BEACH POLICE OFFICERS' PENSION FUND February 29, 2016 Attn: CHAIRMAN Bill # 17874 1500 GATEWAY BLVD., SUITE 220 BOYNTON BEACH, FL 33426 For Legal Services Rendered Through 02/29/16 CLIENT: BOYNTON BEACH POLICE OFFICERS' PENSION FUND : BBPOLBSJ MATTER: BOYNTON BEACH POLICE OFFICERS' PENSION FUND :150046 Professional Fees Date Attorney Description Hours Amount 02/07/16 BSJ REVIEW AGENDAAND BACK UP 0.50 112.50 02/08/16 BSJ RESEARCH FINES FOR 0.50 112.50 NON - COMPLIANCE 02/09/16 BSJ ATTEND MEETING 2.30 517.50 02/09/16 BSJ TELEPHONE CALL WITH PAUL KELLEY 1.00 225.00 REGARDING ROBERT KELLMAN APPLICATION; REVIEWAMENDED APPLICATION AND INTERROGATORIES 02/10/16 BSJ REVIEW EMAIL FROM MATT PETTY 0.70 157.50 REGARDING LOCATION OF THE ADMINISTRATOR RFP PRESENTATIONS; DRAFT LETTER TO PRESENTERS 02/11/16 BSJ RESEARCH NPB LANGUAGE 0.40 90.00 REGARDING ELIGIBILITY FOR DISABILITY RETIREMENT ONLY UP TO NORMAL RETIREMENT DATE 02/11/16 BSJ DRAFT SPREADSHEET FOR REVIEW 1.00 225.00 OF ADMINISTRATOR RFP RESPONSES 02/16/16 BSJ FOLLOW UP ON EMAILS OF SCHEDULE 0.20 45.00 TO BIDDERS AND CONFIRMATION OF TIMES 02/18/16 BSJ CORRESPONDENCE WITH MEDICAL 2.00 450.00 DIRECTOR REQUESTING MEDICAL RECORDS ON KELLMAN Continued ... Client: BOYNTON BEACH POLICE OFFICERS' PENSION FUND February 29, 2016 Matter: 150046 - BOYNTON BEACH POLICE OFFICERS' PENSION Page 2 Professional Fees Continued... Date Attorney Description Hours Amount 02/22/16 BSJ DRAFT SUMMARY OF FEES FROM 0.70 157.50 PROPOSERS FOR ADMINISTRATIVE SERVICES; EMAIL TO TRUSTEES 02/24/16 BSJ TELEPHONE CALL WITH TOBYATHOL 0.20 45.00 REGARDING PAYMENTS TO STATE DISBURSEMENT UNITAND COMPLAINT BY ALTERNATE PAYEE 02/24/16 BSJ TELEPHONE CALL WITH TOBYATHOL 0.20 45.00 REGARDING STATUS ON STATE DISBURSEMENT UNIT PAYMENT; REVIEW EMAIL CHAIN; DISCUSS THE RFP PRESETNATION 02/25/16 BSJ REVIEW EMAIL CHAIN REGARDING 0.50 112.50 STATE DISBURSEMENT UNIT MISSING PAYMENT; TELEPHONE WITH TOBY ATHOL REGARDING STATUS OF COMPLAINTAND RFP PRESENTATION REORDERING; EMAIL WITH BARBARA LADUE REGARDING AVAILABILITY OF TRUSTEES AND ROOM FOR EARLIER PRESENTATION BY BIDDER Total for Services 10.20 $2,295.00 CURRENT BILL TOTAL AMOUNT DUE $ 2,295.00 Past Due Balance 1,647.00 AMOUNT DUE $3,942.00 R 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 POLICE OFFICERS' PENSION FUND January 31, 2016 Attn: CHAIRMAN Bill # 17750 1500 GATEWAY BLVD., SUITE 220 BOYNTON BEACH, FL 33426 For Legal Services Rendered Through 01/31/16 CLIENT: BOYNTON BEACH POLICE OFFICERS' PENSION FUND : BBPOLBSJ MATTER: BOYNTON BEACH POLICE OFFICERS' PENSION FUND .150046 Professional Fees Date Attorney Description Hours Amount 01/04/16 BSJ RESEARCH EMAILADDRESSES FOR 0.50 112.50 ADMINISTRATORS 01/04/16 BSJ REVIEW AND RESPOND TO EMAIL 0.20 45.00 FROM POTENTIAL BIDDER SHEILA HUTCHESON WHO DECLINED TO BID; UPDATE RESPONSE LIST 01/05/16 BSJ REVIEW AND RESPOND TO EMAIL 0.20 45.00 FROM POTENTIAL BIDDER KARAN ROUNSAVALL WHO DECLINED TO BID; UPDATE RESPONSE LIST 01/07/16 BSJ REVIEW AND REPLY TO EMAIL FROM 0.20 45.00 MATT PETTY REGARDING RFP; FORWARD FINAL RFP AND ADMINISTRATOR RESPONSE LIST TO MATT PETTY 01/13/16 BSJ REVIEW AND RESPOND TO EMAIL 0.70 157.50 FROM BARBARA KELLEY REGARDING KELLMAN APPLICATION FOR DISABILITY RETIREMENT, TELEPHONE CALL WITH TOBYATHOL 01/13/16 BSJ REVIEW APPLICATION FOR DUTY 1.50 337.50 DISABILITYAND INTERROGATORIES; EMAIL TO PAUL KELLEY REGARDING INFORMATION NEEDED 01/13/16 BSJ REVIEW AND RESPOND TO EMAIL 0.30 67.50 FROM PAUL KELLEY REQUESTING CURRENT PENSION PLAN Continued Client: BOYNTON BEACH POLICE OFFICERS' PENSION FUND January 31, 2016 Matter: 150046 - BOYNTON BEACH POLICE OFFICERS' PENSION Page 2 Professional Fees Continued... Date Attorney Description Hours Amount 01/16/16 BSJ REVIEW MEDICAL REPORT FROM DR. 1.30 292.50 BRANNON AND DR. STOCK REGARDING KELLMAN DISABILITY 01/19/16 BSJ REVIEW EMAIL QUESTION FROM 0.40 90.00 BIDDER; RESEARCH RESPONSE; EMAIL TO BARBARA LADUE FOR CONFIRMATION 01/20/16 BSJ DRAFT RESPONSE TO THE 0.30 67.50 ADMINISTRATORS REGARDING A QUESTION FROM A POTENTIAL BIDDER; REVIEW EMAIL CONFIRM FROM BARBARA LADUE; EMAIL RESPONSE TO ADMINISTRATORS 01/21/16 BSJ TELEPHONE CALL WITH FERRELL 0.10 22.50 JENNE REGARDING THE ADMINISTRATOR RFP 01/22/16 BSJ REVIEW AND RESPOND TO EMAIL 0.20 45.00 FROM MARK E. SIMPSON SENDING RFP DOCUMENTS AND FOLLOW UP EMAIL 01/28/16 BSJ CORRESPONDENCE WITH DR. STOCK, 1.00 225.00 DR. BRANNON AND JULIE OLDVERY RE RECORDS FOR MR. KELLMAN 01/29/16 BSJ TELEPHONE CALL FROM DR. 0.10 22.50 BRANNON'S OFFICE - RECORDS MUST BE REQUESTED FROM THE CITY 01/29/16 BSJ CORRESPONDENCE WITH CITY RE DR. 0.30 67.50 BRANNON'S RECORDS Total for Services 7.30 $1,642.50 Costs Date Description Amount PHOTOCOPIES thru 01/31/16 4.50 Total Costs $4.50 Continued . . Client: BOYNTON BEACH POLICE OFFICERS' PENSION FUND January 31, 2016 Matter: 150046 - BOYNTON BEACH POLICE OFFICERS' PENSION Page 3 CURRENT BILL TOTAL AMOUNT DUE $ 1,647.00 Past Due Balance / 2,587.50 AMOUNT DUE P 0 4 #7;; R y� BURGESS CHAMBERS & ASSOCIATES, INC. Invoice INVESTMENT ADVISORS S.E.C. REGISTERED 315 E. Robinson Street, Suite 690 Date Invoice # Orlando, Florida 32801 3/23/2016 16 -75 Bill To Boynton Beach Police Officers' Pension Barbara La Due, Administrator 1500 Gateway Blvd, Suite 220 Boynton Beach, Florida 33426 Description Amount First Quarter 2016 Investment and Performance Monitoring and Advisory Fee per Contract 6,250.00 Total $6,250.00 Phone # Fax # (407) 644 -0111 (407) 644 -0694 S Gabriel, Roeder, Smith & Company -1; Consultants &Actuaries One East Broward Blvd. Suite 505 Invoice Ft. Lauderdale, Florida 33301 -1804 (954) 527 -1616 416/2016 421055 Please Remit Tot Attention: Ms. Barbara La Due Dept. # 78009 Pension Administrator Gabriel, Roeder, Smith & Company Municipal Police Officers' Retirement Fund PO Box 78000 City of Boynton Beach Detroit, Michigan 48278 -0009 Renaissance Executive Suites 1500 Gateway Blvd., Suite 220 Boynton Beach, Florida 33426 3& 1691268 C7 1 For professional actuarial services rendered for the Boynton Beach Municipal Police Officers' Retirement Fund through 3/31/2016 Preparation of Actuarial Confirmation of the Use of State Moneys Form (formerly page 550.00 6a) for inclusion in the 2015 Annual Report to the State Preparation of Chapter 112.664 Actuarial Compliance Report, including upload of 3,000.00 required information to the State database Amount Due $3,550 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. Page 1 of 1 G-7,,Ri Gabriel, Roeder, Smith & Company Consultants & Actuaries One East Broward Blvd. Suite 505 Invoice Ft. Lauderdale, Florida 33301 -1804 (954) 527 -1616 3/11/2016 420354 Attention: Ms. Barbara La Due Dept. # 78009 Pension Administrator Gabriel, Roeder, Smith & Company Municipal Police Officers' Retirement Fund PO Box 78000 City of Boynton Beach Detroit, Michigan 48278 -0009 Renaissance Executive Suites 1500 Gateway Blvd., Suite 220 Boynton Beach, Florida 33426 Federal Tax ID 38- 1691268 For professional.actuarlal services . rendered . for the. Boynton $each Municipal Police Officers' Retirement Fund through 2/29/2016 Final charges for preparation of the 10/1/2015 Actuarial Valuation Report, total fee of 3,699.00 $13,426* less previous charges of $9,727 Preparation of Governmental Accounting Standards Board (GASB) Statement No. 67 2,500.00 Projected 9/30/2016 disclosure exhibits in conjunction with the 10/1/2015 Actuarial Valuation Report Amount Due $6,199 * Equal to last year's fee (no increase because change in CPI from September 2014 to September 2015 was 0 %) PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. Page 1 of 1 Gabriel, Roeder, Smith & Company ,,L ,,Jl Consultants &Actuaries One East Broward Blvd. Suite 505 Invoice R. Lauderdale, Florida 33301 -1804 (954) 527 -1616 2112/2016 419930 Please Remit To; Attention: Ms. Barbara La Due Dept. # 78009 Pension Administrator Gabriel, Roeder, Smith & Company Municipal Police Officers' Retirement Fund PO Box 78000 City of Boynton Beach Detroit, Michigan 48278 -0009 Renaissance Executive Suites 1500 Gateway Blvd., Suite 220 Boynton Beach, Florida 33426 r 38- 1691268 For professional actuarial 6ervicesrendered for the Boynton Beach Municipal Police Officers'. Retirelnent.Fund through 1/31/2016 Calculation of the present value of remaining biweekly payments for Douglas Gilbert's 150.00 February 14, 2012 service purchase Charges since 12/31/2015 (through 1/31/2016) for preparation of the 10/1/2015 8,985.00 Actuarial Valuation Report ; total charges to date equal $9,727 GASB 67 true -up letter (dated 1/22/2016), with final GASB 67 disclosure information as 450.00 of 9/30/2015 Amount Due $9,585 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. Page 1 of 1 Davidson, Jamieson & Cristini, P.L. Invoice 1956 Bayshore Blvd. Date Invoice 4 Dunedin, Fl 34698 4/5/2016 R7492 Phone # 727 - 734 -5437 Fax # 727- 733 -3487 Bill To CITY OF BOYNTON BEACH POLICE PENSION PLAN 1500 Gateway Blvd. Suite 220 Boynton Beach, Florida 33426 Description Amount Audit of Financial Statements for the year ended September 30, 2015 Final billing 11 500.00 Less amount previously billed -6 000.00 Total $5,500.00 Payments /Credits $0.00 Balance Due $5,500.00 Terms: Invoices are due and payable upon receipt. Any amounts remaining unpaid after 30 days will be assessed a Service Charge equal to I% per month (12 % per annum). Minimum monthly service charge is $5.00 Davidson, Jamieson & Cristini, P.L. Invoice 1956 Bayshore Blvd. Date Invoice# Dunedin, Fl 34698 Phone # 727 -734 -5437 4/5/2016 R7502 Fax # 727- 733 -3487 Bill To CITY OF BOYNTON BEACH POLICE PENSION PLAN 1500 Gateway Blvd. Suite 220 Boynton Beach, Florida 33426 Description Amount Preparation of 2015 Annual Report for the Florida Division of Retirement 2,000.00 Total $2,000.00 Payments /Credits $0.00 Balance Due $200.00 Terms: Invoices are due and payable upon receipt. Any amounts remaining unpaid after 30 days will be assessed a Service Charge equal to 1% per month (12% per annum). Minimum monthly service charge is $5.00 Davidson, Jamieson & Cristini, P.L. Invoice 1956 Bayshore Blvd. Date Invoice # Dunedin, Fl 34698 4/5/2016 R7510 Phone # 727- 734 -5437 Fax # 727- 733 -3487 Bill To CITY OF BOYNTON BEACH POLICE PENSION PLAN 1500 Gateway Blvd. Suite 220 Boynton Beach, Florida 33426 Description Amount Preparation of your agreed upon procedures report under GASB 68 1,500.00 Total $1,500.00 Payments /Credits $0.00 Balance Due $1 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 BOYNTON BEACH POLICE PENSION FUND APPLICATION FOR DISABILITYIPENSION BENEFITS PLEASE PRINT OR TYPE 1. a. Name of Employee: 2S ✓, s ;?O „ 1d C (Last) (First) (MI) b. Social Security Number: /35 C. Date of Birth: 0 3 /57/ (Attach pr000 Month- Day -Year d. Home Telephone Number: 54r / (Area Code) Number e. Home Address: IMM16 Ad ras Street Eou M 70n Bea CA FL Cit State Zip Code f. Permanent address to which check and /or correspondence should be sent: 5G P, ti As 444 & Street Address City State Zip Code 2. a. Are you currently married: 1P Yes No If yes, please complete the following: I. Name of Spouse: is v ,s " (Last) (First) (MI) ii. Spouse's Social Security Number: _ y936 iii. Spouse's Date of Birth: 0 7- V (Attach proof Month- ay-Year iv. Date of Marriage: 03-17-.2007 (Attach proof) Month - Day -Year Page 1 of 4 3. Names and Dates of Birth of Child(ren): Name Date of Birth lo�c� C. l7o� oL. - za�a A i/. �a v,'s f 1d / 0 A114 (Attach additional page if needed) 4. Names of Your Living Parents:. a. Mother: D er e 4 s-e d b. Father: Sa na /d F - D4 ,, S 5. a. Date of Hire by the City of Boynton Beach, Florida, as a Swom Police Officer: 0 7- 0 /- .2002 Month- Day-Year 11 b. Current Position: Pd / /cz 6. 1 plan to retire on: Month- Day -Year 7. Type of retirement for which you are applying (check one): Normal Retirement Early Retirement Line -of -Duty Disability Non - Line -of -Duty Disability 8. If you are applying for a disability retirement, please complete the following: a. Date disability commenced: 03- 22- 20 /y Month - Day -Year b. Nature and cause of disability: �� f r tr�S�• tr ;c4 ��Sroh a•, d (on lI -ea �GMIfcsY �4�h r*"O di' o yler-ke, r* e. Page 2 of 4 C. Did your disability result from any of the following: Yes No (1) Use of drugs, intoxicants or narcotics? (2) Due to ' a fight, riot, civil insurrection, or crime? (3) From an injury or disease sustained while you were / serving in any armed forces? (4) After your employment with the City of Boynton Beach terminated? (5) While working for anyone other than the City of Boynton Beach and arising out of such employment? d. A copy of my doctor's medical opinion is attached. e. Please list any doctor's that have treated you within the last five years and their addres and phone number oo a separate sheet of paper. 1 f. Please indicate the name and address of your designated member of the medical committee: NOTE: If you are applying for a disability benefit, records must be filed to show that the disability is total and permanent. If application is made for a line -of -duty disability, copies of workers' compensation records must also be filed to show that the disability occurred in the line -of -duty. Also, the Board of Trustees may require you to be examined by a doctor selected by the Board. NOTICE: It is a first degree misdemeanor to make a false or misleading statements to obtain retirement benefits. In addition to any applicable criminal penalty, upon conviction a participant or beneficiary of this plan may, in the discretion of the board of trustees, be required to forfeit the right to receive any or all benefits to which the person would otherwise be entitled under this plan. Page 3 of 4 Acknowledgments I hereby certify that the above statements are true and correct to the best of my knowledge. I understand that a false statement may disqualify me for benefits. I have reviewed the Designation of Beneficiary Form filed with the Board of Trustees and I hereby certify its accuracy. If I desire to change my designated beneficiary(ies), I will file a new Designation of Beneficiary Form with this Application. I hereby authorize the release of any and all medical records including but not limited to the complete history records in possession of all doctors listed below concerning my illness and/or treatment. A copy of this document will be treated in the same manner and have the same effect as an original. I hereby waive my right of confidentiality of my medical records and other medical evidence in order that my application for disability benefits may be properly processed. I understand that in so doing, such records will be discussed during one or more public meetings and will become public record. I understand that the Board(s) will rely upon this waiver and that I will not be able to withdraw same at a later date. I agree to cooperate fully with the Board of Trustees of the Boynton Beach Police Pension Fund in making available to the Board, or authorized agents of the Board, information which reasonably relates to the initial payment of or continuing eligibility for payment of benefits from the Fund. I hereby agree to indemnify and hold harmless the City of Boynton Beach and the Pension Plan from and against any and all claims, demands, or causes of action of any kind or nature resulting from or in connection with the City of Boynton Beach's release of the results of the undersigned's annual physical to the Pension Plan and from and against any resulting losses, costs, expenses, reasonable attorneys' fees, liabilities, damages, orders, judgments, or decrees i connection therewith. Dated this / _ day of, ��r/ , 201 !- . Witness Signature of Participant RVV24IU G _D 4yi Witness Printed name of Participant STATE OF FLORIDA COUNTY OF PALM BEACH SWORN TO (or affirmed �ndsubscribed before me this /�' d`a of 20 16 by who i personally kno n. to m -or- who produced the following identification: e .y _ =# ol�otary Public iNco •e : Z� * mint, type or stamp name of Notary in addition to seal: Page 4 of 4 AUTHORIZATION TO USE OR DISCLOSE HEALTH INFORMATION Name: Rona 1 d C_ ">Q y "S _ Date of Birth: 47 1 HEREBY AUTHORIZE the disclosure to and the use of the above named individuars health irrilormation as described below. 1. The following individual(s) or organization(s) are authorize[ to make the disclosure: Any and all Physicians, Psyc hiatristlPsychologists, Facilities and/or Hospitals who have provided treatment. 2. The We of inibrMation to be used or disclosed is my entire medicalihealth record, including worker's compensation records. 3. 1 understand that the information in my medical/health rem may include information relating to sexlEly trarerl disease, acquired immunodeficiency syndrome (AIDS), or human de xy virus (HM, information about behavioral or mental health services, and beam nt far alcohol and drug abuse. 4. The inbrrnation identified above may be used by or disclosed to: Name of Fund: Address: 5. This information for which I am authorizing die will be used for the following purpose: To bMatee the Board of Tnustees of the Fund in the carrying out its duty to review, C1102M and deiermirre my applicatin. for dsabft retirement. I hereby waive the right of confidentiality of medical recoils and other medical evince in the custody of the Board of Trustees or elsewhere. I further understand that such rt rords will be discussed during one or more public meetings and will become public record. I understand that the Board of Trustees will rely upon this waiver. 6. 1 understand that I have a right to revoke this authorization at any time. I understand that if I mvoke this fir, I must do so in writing and present my wd t n revocation to the medical/health cam provider. I undersMand that the revocation will not apply to information that has already been released in response to this authonzation. I understand that the revocatin will not apply to my insurance company when the law provides my insurer with the right to contest a claim under my insurance policy. 7. This authodzation will expire at the and of my disability case before the Board. 8. 1 understand that once the above information is did, it may be re-disclosed by the recipient and the information may not be protected by federal privacy laws or regulations. 9. 1 understand authorizing the use or disclosure of the irrfomiation identified above is voluntary. 10. 1 also authorize the use of photocopy of this document in place of the original. 4ft�e%=� Signature of Patient or Legal Representative Date If sign by I representativ rel 'onship to patient: IV- he - Signature of Witness Date BSJ - October 22, 2013 C: 1Users\ OwnerlAppDataUcal %MicrosoMWindows\Temporary Internet Fled Content .OuGookICO31= 8BKOIHIPAA Auth disclose Health Info (updated 10-22 - 13).doc U d — MEMORANDUM To: Chapter 175/185 Administrators & Boards of Trustees From: Bonni S. Jensen Date: April 28, 2016 Subject: Upcoming Issues: Budget Review, Mutual Consent, & Public Records The upcoming quarterly meeting agenda should include the following items: 1. Budget Review Chapter 2015- 39/SB172 (hereinafter "SB 172 ") requires police or fire pension boards to operate under an administrative expense budget. This agenda item should contain as backup the current budget (approved before the end of FY 2015) compared to actual expenses year to date. Additionally, the Board should be prepared to discuss next year's budget, which must be finalized before 9/30/16. 2. Status of Mutual Consent SB 172 requires a defined contribution /share plan to be adopted (but not necessarily funded). The only exceptions are for plans which already have share accounts, are a Special Act plan, or were created before December 1, 2000. Additionally, the municipality and the Union must either reach mutual consent, or trigger the default provisions of the law. The default provisions would: • allow the municipality to use the amount of the Chapter 175/185 money that was received in 2003 (base amount) to offset the cost of minimum benefits; ® use the growth amount (which is the amount that the 2013 amount received exceeds the 2003 amount) to offset the cost of the benefits in excess of the minimums; • allocate the amount in excess of that received in 2013 - 50% to the members in share accounts and 50% to offset municipal costs; 7080 NORTHWEST 4TH STREET, PLANTATION, FLORIDA 33317 PHONE: (954) 916 -1202 • FAX: (954) 916 -1232 www.robertdklausner.com • allocate the accumulated 175/185 money, if any - 50% to the member share accounts and 50% to pay down the unfunded actuarial liability; and • require the plan to be amended to meet the minimum benefits. These items have specific dollar amounts associated with them for each pension plan. The purpose of this agenda item is to determine the status of these issues for the plan. The Division of Retirement will independently review this topic in connection with the annual state reports. 3. Public Records This item is just a reminder that all pension boards are subject to the public records law which requires prompt response and strict compliance with public records requirements. A recent court decision held that a board was responsible for imposing conditions on the inspection of public records that were later determined not to be authorized under the public records law. W.lWd XLLPISONNKCLTMBAOWoo7non.DOC Barbara Ladue From: Bonni Jensen <bonni @robertdklausner.com> Sent: Thursday, March 31, 2016 5:55 PM To: Howard, Tim Cc: bsjteam; Adam Levinson; Kerry Dutton; Barbara Ladue Subject: Boynton Beach General Employee Pension Fund - Rehire after Retirement Attachments: RE- employment after retirement (00069067).pdf Tim, As a follow up to our conversation today, attached is the draft document for our discussion. The IRS recently issued updated proposed regulations on this matter and so other sections of the Plan may need to be updated as well — particularly the normal retirement provisions. This will be able to get us started. This drafted is for the General Employees, but I have included the administrator for the Police and Fire as well as the attorney for the Fire fund as I understand this is something that may be added to all of the plans. To make sure that your email is handled in a timely manner, please copy BSJTeam @robertdklausner.com Bonni S. Jensen Klausner, Kaufman, Jensen & Levinson 7080 N.W. 4 Street Plantation, Florida 33317 Telephone: 954 - 916 -1202 Facsimile: 954 - 916 -1232 bon ni(d-robertdklausner.com ,,�amawxxx CONFIDENTIALITY NOTICE: This communication is confidential, may be privileged and is meant only for the intended recipient. If you are not the intended recipient, please notify the sender ASAP and delete this message from your system. IRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 1 Employees' Pension Plan of the City of Boynton Beach, Florida Strike all of current Section 18 -125 and insert in its place a new section as follows: Sec. 18 -125 Reemployment, election or appointment to the City after retirement. (a) Any retiree who is retired under this plan, except for disability retirement as previously provided for, may be reemployed by any public or private employer, except the City, and may receive compensation from that employment without limiting or restricting in any way the retirement benefits payable under this plan. Reemployment by the City shall be subject to the limitations set forth in this section. (b) After normal retirement. (1) Any retiree who is retired on normal retirement pursuant to this plan who is re- employed by the City and who is not at age 62 at date of retiremement, will, upon being re- employed, discontinue receipt of benefits. Re- employed for purposes of this section includes election or appointment to the City Commission. (2) However, if that normal retirement is bona fide, then the retiree who is re- employed by the City will upon being re- employed continue receipt of benefits. Re- employed for purposes of this section includes election or appointment to the City Commission. The Trustees are the sole determinant as to whether the normal retirement is bona fide based upon the facts and circumstances presented (3) If, upon re- employment, the re- employed retiree is eligible to participate in this plan, the retiree shall be deemed a new employee subject to any vesting and contribution requirements. a, The additional credited service accrued during the subsequent employment period shall be used in computing a second benefit amount attributable to the subsequent employment period, which benefit amount shall be added to the benefit determined upon the initial retirement to determine the total benefit payable upon final retirement. b. Calculations of benefits upon initial retirement shall be based upon the benefit accrual rate, average annual earnings, credited service and cost -of- living adjustment as of that date 00069067.WPD;1 Page 1 of 3 and the retirement benefit amount for any subsequent employment period shall be based upon the benefit accrual rate, average annual earnings (based only on the subsequent employment period), credited service and cost -of- living adjustment as of the date of the subsequent retirement. C. The optional form of benefit and any joint pensioner selected upon initial retirement shall not be subject to change upon subsequent retirement except as otherwise provided herein, but the member may select a different optional form and joint pensioner applicable to the subsequent retirement benefit. d. If a re- employed retiree does not re -vest during his re- employment period, he shall, upon termination of employment, receive a return of his contributions made during his re- employment period. (c) After early retirement. (1) Any retiree who is retired under early retirement pursuant to this plan and who subsequently becomes an employee of the City in any capacity, including election or appointment to the City, shall discontinue receipt of benefits from the plan upon rehire. a. If by virtue of that re- employment, the retiree is eligible to participate in this plan, the retiree shall be deemed to be one hundred (100) percent vested upon re- employment. b. The additional credited service accrued during the subsequent employment period shall be used in computing a second benefit amount attributable to the subsequent employment period, which benefit amount shall be added to the benefit determined upon the initial retirement to determine the total benefit payable upon final retirement. C. Calculations of benefits upon retirement shall be based upon the benefit accrual rate, average annual earnings, credited service, cost -of- living adjustment and early retirement reduction factor as of that date and the retirement benefit amount for any subsequent employment period shall be based upon the benefit accrual rate, average annual earnings (based only on the subsequent employment period), credited service, cost -of- living adjustment and early retirement reduction factor, 00069067.WPD;1 Page 2 of 3 if applicable, as of the date of subsequent retirement. d. The optional form of benefit and any joint pensioner selected upon initial retirement shall not be subject to change upon subsequent retirement except as otherwise provided herein, but the member may select a different optional form and joint pensioner applicable to the subsequent retirement benefit. Retirement pursuant to an early retirement incentive program shall be deemed early retirement for purposes of this section if the member was permitted to retire prior to the customary retirement date provided for in the plan at the time of retirement. (d) Re- employment of terminated vested persons. (1) Re- employed terminated vested persons, including those elected or appointed to the City Commission, shall not be subject to the provisions of this section until such time as they begin to actually receive benefits after termination of employment in accordance with Section 18 -117. (2) Upon receipt of benefits, terminated vested persons, including those elected or appointed to the City Commission, shall be treated as normal or early retirees for purposes of applying the provisions of this section and their status as an early or normal retiree shall be determined by the age they elect to begin to receive their benefit. (e) In addition to these provisions and in accordance with Code Section 401(a)(36), an in- service pension distributions may be made in the limited circumstance where a retiree is who retired on normal retirement at normal retirement age is re -hired by the City, including those elected or appointed to the City Commission. W:\Wdocs\LLP\150045\GM\00069067.WPD 00069067.WPD;1 Page 3 of 3 MEMORANDUM To: Board of Trustees From: Bonni S. Jensen Subject: Normal Retirement Age Regulation Date: March, 2016 A. The Background 1. IRS issues notice of proposed rule- making regarding normal retirement age rules for public plans. 2. The issue first arose in 2007 as part of the "definitely determinable requirement" in Section 401(a). 3. The issue was based on the application of Section 411 of the tax code which does not apply to governmental plans. 4. It quickly became clear that requiring a chronological age was inconsistent with many public plan designs. 5. The original regulations had a safe harbor age of 62 and a "facts and circumstances" exception from ages 55 to 62. Again, government plans permit younger retirement ages as many plans are based solely on service without regard to age. 6. After deferring application of the rule to public plans on several occasions, the IRS announced a modification to the rule in IRS Notice 2012 -29 by establishing a public safety safe harbor of age 50. 7. Per Notice 2012 -29 these normal retirement rules are only applicable if the plan allows in service distributions. B. IRS Bulletin 2016 -7 00069061.wPD;1 7080 NORTHWEST 4TH STREET, PLANTATION, FLORIDA 33317 PHONE: (954) 916 -1202 • FAX: (954) 915 -1232 www.robertdklausner.com Board of Trustees Normal Retirement Age Regulation March, 2016 Page 2 of 6 1. Announced in January and issued on February 16, 2016. This is a proposed rule but governments may rely upon rule pending final regulation. If final regulation are more restrictive the final regulations will not have retroactive effect. 2. Effective for hires on or after 111/17. 3. Maintains a general safe harbor age of 62 but added additional safe harbors for governmental plans. 4. Non Public Safe harbors a. Age 62 b. Age 60 with 5 years. C. Age 55 with 10 years d. Rule of 80 e. 25 years at any age (buff age must be state) 4. Public Safety a. Age 50 b. Rule of 70 C. 20 years at any age (but age must be state) 5. Facts and circumstances test still available C. Why Does this Matter 1. Large numbers of employers are rehiring retirees without a true break in service. 2. In such cases, where employees are also receiving retirement benefits, an "in service distribution" issue is presented exposing the rehired employees to early distribution penalties under Code Section 72. 00069061.WPD;i Board of Trustees Normal Retirement Age Regulation March, 2016 Page 3of6 D. The Full Text of the Proposed Regulation § 1.401(a )-1 Post -ERISA qualified plans and qualified trusts; in general. (b) (2) * ** (v) Rules of application for governmental plans —(A) In general. In the case of a governmental plan (within the meaning of section 414(d)) that provides for distributions before retirement, the general rule described in paragraph (b)(2)(1) of this section may be satisfied in accordance with paragraph (b)(2)(ii) of this section or this paragraph (b)(2)(v). In the case of a governmental plan that does not provide for distributions before retirement, the plan's normal retirement age is not required to comply with the general rule described in paragraph (b)(2)(1) of this section or this paragraph (b)(2)(v). (B) Age 60 and 5 years of service safe harbor. A normal retirement age under a governmental plan that is the later of age 60 or the age at which the participant has been credited with at least 5 years of service under the plan is deemed to be not earlier than the earliest age that is reasonably representative of the typical retirement age for the industry in which the covered workforce is employed. (C) Age 55 and 10 years of service safe harbor. A normal retirement age under a governmental plan that is the later of age 55 or the age at which the participant has been credited with at least 10 years of service under the plan is deemed to be not earlier than the earliest age that is reasonably representative of the typical retirement age for the industry in which the covered workforce is employed. (D) Sum of 80 safe harbor. A normal retirement age under a governmental plan that is the participant's age at which the 00069061.WPD ;l Board of Trustees Normal Retirement Age Regulation March, 2016 Page 4 of 6 sum of the participant's age plus the number of years of service that have been credited to the participant under the plan equals 80 or more is deemed to be not earlier than the earliest age that is reasonably representative of the typical retirement age for the industry in which the covered workforce is employed. For example, a normal retirement age under a governmental plan that is age 55 for a participant who has been credited with 25 years of service would satisfy the rule described in this paragraph. (E) Service -based combination safe harbor. A normal retirement age under a governmental plan that is the earlier of the participant's age at which the participant has been credited with at least 25 years of service under the plan and an age that satisfies any other safe harbor provided under paragraphs (b)(2)(v)(B) through (D) of this section is deemed to be not earlier than the earliest age that is reasonably representative of the typical retirement age for the industry in which the covered workforce is employed. For example, a normal retirement age under a governmental plan that is the earlier of the participant's age at which the participant has been credited with 25 years of service under the plan and the later of age 60 or the age at which the participant has been credited with 5 years of service under the plan would satisfy this safe harbor. (F) Age 50 safe harbor for qualified public safety employees. A normal retirement age under a governmental plan that is age 50 or later is deemed to be not earlier than the earliest age that is reasonably representative of the typical retirement age for the industry in which the covered workforce is employed if the participants to which this normal retirement age applies are qualified public safety employees (within the meaning of section 72(t)(10)(13)). (G) Sum of 70 safe harbor for qualified public safety employees. A normal retirement age under a governmental plan that is the participant's age at which the sum of the participant's age plus the number of years of service that have been credited to the participant under the plan equals 70 or more, is deemed to be not earlier than the earliest age that is reasonably 00065061.WPD;1 Board of Trustees Normal Retirement Age Regulation March, 2016 Page 5 of 6 representative of the typical retirement age for the industry in which the covered workforce is employed if the participants to which this normal retirement age applies are qualified public safety employees (within the meaning of section 72(t)(1 0)(B)). (H) Service -based safe harbor for qualified public safety employees. A normal retirement age under a governmental plan that is the age at which the participant has been credited with at least 20 years of service under the plan is deemed to be not earlier than the earliest age that is reasonably representative of the typical retirement age for the industry in which the covered workforce is employed if the participants to which this normal retirement age applies are qualified public safety employees (within the meaning of section 72(t)(1 0)(13)). For example, a normal retirement age that covers only qualified public safety employees and that is an employee's age when the employee has been credited with 25 years of service under a governmental plan would satisfy this safe harbor. (1) Reserved. (J) Other normal retirement ages. In the case of a normal retirement age under a governmental plan that fails to satisfy any safe harbor described in paragraph (b)(2)(ii) of this section or this paragraph (b)(2)(v), whether the age is not earlier than the earliest age that is reasonably representative of the typical retirement age for the industry in which the covered workforce is employed is based on all of the relevant facts and circumstances. (vi) Special normal retirement age rule for certain plans. See section 411(f), which provides a special rule for determining a permissible normal retirement age under certain defined benefit plans. (4) Effective /applicability date. * * * In the case of a governmental plan (as defined in section 414(d)), the rules in paragraph 00069069.WPD;t Board of Trustees Normal Retirement Age Regulation March, 2016 Page 6 of 6 (b)(2)(v) of this section are effective for employees hired during plan years beginning on or after the later of: January 1, 2017; or the close of the first regular legislative session of the legislative body with the authority to amend the plan that begins on or after the date that is 3 months after the final regulations are published in the Federal Register. However, a governmental plan sponsor may elect to apply the rules of paragraph (b)(2)(v) of this section to earlier periods. 00069061.WPD;1 n Gabriel Roeder Smith & Company One East Broward Blvd_ 954.527.1616 phone Consultants & Actuaries Suite 505 ,ra, 954.525.0083 fax Ft. Lauderdale, FL 33301 -1804 www.gabrielroeder.com April 8, 2016 CONFIDENTIAL Ms. Barbara LaDue Pension Administrator Boynton Police & Fire Pension Funds Renaissance Executive Suites 1500 Gateway Blvd., #220 Boynton Beach, Florida 33426 Re: Boynton Beach Municipal Police Officers' Retirement Trust Fund Dear Barbara: You have asked us to verify the retirement benefits for the following participant: MARTINEZ, Alfred (Deferred Vested) Based on the information provided, we have determined the retirement benefit for the above participant commencing November 1, 2024 has been calculated in accordance with plan provisions: Form of Benefit Option Factor Amount 100% Joint and Survivor 0.9301 $2,263.47 Please note that we did not perform a review of the average monthly salary. The actuarial equivalence assumptions used to compute optional forms were an 8.0% annual rate of return, and the 1983 GA Mortality Table blending 80% male rates and 20% female rates. We welcome your questions and comments. Sincerely yours, �), Peter N. Strong, FSA, EA CA, MAAA Senior Consultant and Actuary PS /tw This communication shall not be construed to provide tax advice, legal advice or investment advice. Barbara Ladue From: Barbara Ladue <ladueb @bbpdpension.com> Sent: Tuesday, March 22, 201611:26 AM To: Israel.Bichachi @gabrielroeder.com Cc: Pete.Strong @gabrielroeder.com Subject: Boynton Police - Alfred Martinez - Verification of Benefit Attachments: D00O32216.pdf Israel: Please review the attached for verification of benefit for the Police Pension Board that next meets on May 10, 2016 for the next scheduled quarterly meeting. Alfred Martinez term employment on 11 -02 -2015, left his employee contributions in the Plan for a deferred vested benefit. He has selected 100% Survivor Annuity option in the amount of $2263.47 to begin on November 01, 2024. Thanks. Barb La Due Pension Administrator Boynton Beach Police & Fire Pension Funds Phone: (561) 739.7972 - - - -- Original Message---- - From: Scanner f mailto :faxexecsuites @gmail.coml Sent: Tuesday, March 22, 2016 10:51 AM To: BARBARA LADUE Subject: Send data from MFP07580425 03/22/201610:50 Scanned from MFP07580425 Date:03/22/201610:50 Pages:7 Resolution:200x200 DPI ---------------------------------------- 1 CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINA WORKSHEET OF RETIREMENT BENEFITS PAGE 1 December 9, 2015 NAME MARTINEZ, ALFRED # 3124 SSN 593 -30 -xxxx DEPT 21 ADDRESS 10814 PASO FIND DRIVE YTD CONTR. 5,313.63 LAKE WORTH, FL 33449 CONTR(TAX) 51,857.19 BIRTH 04/28/1975 CONTR(NTX) .00 PEN HIRE 10/04/2004 BALANCE 51,857.19 ADJ HIRE 10/04/2004 RETIRE 11/02/2015 TYPE V LAST SERV 11/02/2015 60 MO EARN 376,540.61 ELIG NORM 10/04/2024 AVG MO EARN 6,275.68 ELIG EARLY 00 /00 /0000 SERV AT TERM 11 0 29 100% VEST 10/04/2009 AGE AT RETIRE 40 6 5 COMMENCE 11/01/2024 COM ANB /DIFF 49 -4 LAST EARN 00 /00 /0000 VESTED TD.Y /RET 100 100 BEN NAME ELIANA ARRAEZ SERV OVERRIDE BEN BDAY 12/12/1978 PAY HIST FLAG IRREGULAR VAC HRS /CD .00 /EI HOURLY RATE 30.296 SIC HRS /CD .00 S3 VAC SIC PAYOUT 9,204.84 ACCRUE PER .00 EARLY OPTION DEFERRED LAST PAY 20151102 - 20151115 METHOD H5N TERM -DATE 20151102 RATE •38778 BENEFIT 2,433.58 EARLY REDUCTION FACTOR: .00000 EARLY RETIRE BENEFIT .00 TEN YEAR CERTAIN & LIFE 2,433.58 LIFE ANNUITY FACTOR: 1.01050 MODIFIED LIFE ANNUITY 2,459.13 100% SURVIVOR FACTOR: .93010 100% SURVIVOR ANNUITY 2,263.47 SURVIVOR BENEFIT 2,263.47 75% SURVIVOR FACTOR: .94900 75% SURVIVOR ANNUITY 2,309.47 SURVIVOR BENEFIT 1,732.10 50% SURVIVOR FACTOR: .96860 50% SURVIVOR ANNUITY 2,357.17 SURVIVOR BENEFIT 1,178.59 66% JOINT & LAST FACTOR: .97170 66% JOINT & LAST ANNUITY 2,364.71 SURVIVOR BENEFIT 1,576.46 50% JOINT & LAST FACTOR: .99400 50% JOINT & LAST ANNUITY 2,418.98 SURVIVOR BENEFIT 1,209.49 EXCLUSION RATIO USING SAFE HARBOR METHOD: ANNUITY JOINT SRV NUMBER OF EXPECTED PAYMENTS 0 0 TAX -FREE PORTION OF MONTHLY BENEFIT .00 .00 DATE WHEN BENEFIT BECOMES FULLY TAXABLE 00 /00 /0000 00 /00 /0000 Prepared by * indicates manual override CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE 2 December 9, 2015 ALFRED MARTINEZ H I G H Y E A R O N E H I G H Y E A R T W 0 PAY EFF WEEKS WAGES PAY EFF WEEKS WAGES 10/05/15 2.0 5,205.44 12/17/12 2.0 3,100.93 09/21/15 2.0 2,377.96 12/03/12 2.0 3,140.54 09/07/15 2.0 3,179.02 11/19/12 2.0 3,250.75 08/24/15 2.0 2,367.82 11/05/12 2.0 2,440.28 08/10/15 2.0 2,677.82 10/22/12 2.0 2,469.66 07/27/15 2.0 2,637.82 10/08/12 2.0 2,518.66 07/13/15 2.0 2,466.64 09/24/12 2.0 3,250.42 06/29/15 2.0 2,919.33 09/10/12 2.0 5,170.30 06/15/15 2.0 2,367.82 08/27/12 2.0 2,587.58 06/01/15 2.0 5,287.44 08/13/12 2.0 2,259.92 05/18/15 2.0 2,712.44 07/30/12 2.0 2,261.54 05/04/15 2.0 2,398.64 07/16/12 2.0 2,433.60 04/20/15 2.0 2,358.64 07/02/12 2.0 2,440.28 04/06/15 2.0 2,273.77 06/18/12 2.0 2,261.54 03/23/15 2.0 2,233.77 06/04/12 2.0 2,783.92 03/09/15 2.0 2,690.00 05/21/12 2.0 2,701.37 02/23/15 2.0 2,233.77 05/07/12 2.0 2,620.65 02/09/15 2.0 2,877.31 04/23/12 2.0 2,386.41 01/26/15 2.0 2,580.62 04/09/12 2.0 2,343.16 01/12/15 2.0 3,168.66 03/26/12 2.0 2,261.54 12/29/14 2.0 2,837.31 03/12/12 2.0 3,115.66 12/15/14 2.0 4,065.20 02/27/12 2.0 2,219.92 12/01/14 2.0 2,440.26 02/13/12 2.0 2,797.77 11/17/14 2.0 3,315.98 01/30/12 2.0 2,426.41 11/03/14 2.0 2,877.31 01/16/12 2.0 3,655.75 10/20/14 2.0 2,539.00 01/02/12 2.0 3,134.00 TOTAL 52.0 75,089.79 TOTAL 52.0 72,032.56 CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE 3 December 9, 2015 ALFRED MARTINEZ H I G H Y E A R T H R E E H I G H Y E A R F 0 U R PAY EFF WEEKS WAGES PAY EFF WEEKS WAGES 05/09/11 2.0 2,585.96 05/10/10 2.0 2,384.79 04/25/11 2.0 2,573.70 04/26/10 2.0 2,408.15 04/11/11 2.0 2,469.92 04/12/10 2.0 2,523.16 03/28/11 2.0 2,543.16 03/29/10 2.0 2,733.25 03/14/11 2.0 2,719.39 03/15/10 2.0 2,261.54 02/28/11 2.0 3,224.91 03/01/10 2.0 2,987.16 02/14/11 2.0 2,959.39 02/15/10 2.0 3,146.15 01/31/11 2.0 2,468.03 02/01/10 2.0 2,301.54 01/17/11 2.0 3,007.95 01/18/10 2.0 2,723.11 01/03/11 2.0 2,301.54 01/04/10 2.0 2,431.98 12/20/10 2.0 2,963.10 12/21/09 2.0 2,636.14 12/06/10 2.0 3,475.93 12/07/09 2.0 2,915.72 11/22/10 2.0 2,722.40 11/23/09 2.0 3,444.97 11/08/10 2.0 2,983.26 11/09/09 2.0 3,182.19 10/25/10 2.0 2,344.78 10/26/09 2.0 2,350.36 10/11/10 2.0 2,473.60 10/12/09 2.0 2,661.54 09/27/10 2.0 2,335.77 09/28/09 2.0 3,066.41 09/13/10 2.0 4,155.39 09/14/09 2.0 4,207.66 08/30/10 2.0 3,440.15 08/31/09 2.0 3,241.77 08/16/10 2.0 2,636.15 08/17/09 2.0 2,344.79 08/02/10 2.0 2,728.66 08/03/09 2.0 2,606.41 07/19/10 2.0 2,693.16 07/20/09 2.0 2,920.33 07/05/10 2.0 3,052.63 07/06/09 2.0 2,436.54 06/21/10 2.0 2,317.04 06/22/09 2.0 2,745.78 06/07/10 2.0 3,042.66 06/08/09 2.0 2,992.03 05/24/10 2.0 3,249.10 05/25/09 2.0 2,766.59 TOTAL 52.0 73,467.73 TOTAL 52.0 72,420.06 CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE 4 December 9, 2015 ALFRED MARTINEZ H I G H Y E A R F I V E PAY EFF WEEKS WAGES 05/11/09 2.0 2,551.28 04/27/09 2.0 2,486.88 04/13/09 2.0 2,522.42 03/30/09 2.0 4,232.20 03/16/09 2.0 2,905.14 03/02/09 2.0 2,630.80 02/16/09 2.0 2,853.07 02/02/09 2.0 2,106.80 01/19/09 2.0 3,273.07 01/05/09 2.0 2,583.23 12/22/08 2.0 3,256.82 12/08/08 2.0 2,941.41 11/24/08 2.0 2,981.39 11/10/08 2.0 2,445.97 10/27/08 2.0 3,326.24 10/13/08 2.0 2,791.42 09/29/08 2.0 2,239.27 09/15/08 2.0 4,178.26 09/01/08 2.0 3,132.31 08/18/08 2.0 2,128.86 08/04/08 2.0 2,303.83 07/21/08 2.0 2,287.80 07/07/08 2.0 2,371.99 06/23/08 2.0 2,607.12 06/09/08 2.0 3,608.35 05/26/08 2.0 2,487.13 05/12/08 1.0 1,092.57 TOTAL 53.0 74,325.63 CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL STATEMENT OF RETIREMENT BENEFITS December 9, 2015 Participant's Name: ALFRED MARTINEZ Social Security #: 593 -30 -xxxx You are eligible for a(n) VESTED Retirement Benefit from the Plan. Your benefit is payable at the beginning of each month com- mencing November 1, 2024 The amount of your monthly benefit depends on the optional form of annuity which you choose. Please indicate the one optional form listed below which you elect to recieve: 1. MODIFIED CASH REFUND ANNUITY: This option provides monthly pay- ments of $ 2459.13 to you as long as you live. If you should die before you have received an amount equal to your own contributions to the Plan, payments will continue to your beneficiary until your own contributions have been used up. 2. TEN YEAR CERTAIN AND LIFE THEREAFTER: This option provides monthly payments of $ 2433..58 to you as long as you live. If you should die before 120 monthly payments have been made, the monthly payment of $ 2433.58 will continue to be made to your beneficiary until a total of 120 monthly payments have been made in all. -� 1100% SURVIVOR ANNUITY: This option provides monthly payments of $ 2263.47 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of $ 2263.47 for as long as he /she lives. 4. 75% SURVIVOR ANNUITY: This option provides monthly payments of $ 2309.47 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of $ 1732.10 for as long as he /she lives. 5. 50% SURVIVOR ANNUITY: This option provides monthly payments of $ 2357.17 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of $ 1178.59 for as long as he /she lives. 6. 66 - 2/31% JOINT AND LAST SURVIVOR ANNUITY: This option provides monthly payments of $ 2364.71 to you as long as both you and your bene- ficiary are living. After the death of either you or your beneficiary, monthly payments of $ 1576.46 will continue for the life of the remain- ing person. 7. 50% JOINTAND LAST SURVIVOR ANNUITY: This option provides monthly payments of $ 2418.98 to you as long as both you and your bene- ficiary are living. After the death of either you or your beneficiary, monthly payments of $ 1209.49 will continue for the life of the remain- ing person. THESE AMOUNTS ABOVE ARE BASED UPON THE FOLLOWING INFORMATION: Your Date of Birth: 04/28/1975 Pension Hire Date: 10/04/2004 Date of Termination: 11/02/2015 Adjusted Hire Date: 10/04/2004 Avg Final Monthly Comp: $6,275.68 Years of Credited Service: 11 Beneficiary Name: ELIANA ARRAEZ Date of Birth: 12/12/1978 Page 2 Participant Name: ALFRED MARTINEZ Social Security #: 593 -30 -xxxx Accumulated Contributions: $51,857.19 After -Tax Contributions: $.00 Pre -Tax Contributions: $51,857.19 Nontaxable Portion of Life Number of Months Nontaxable Annuity Monthly Benefit: $.00 Portion Continues: 0 Nontaxable Portion of Joint Number of Months Nontaxable Survivor Monthly Benefit: $.00 Portion Continues: 0 e The Survivor Annuity benefit amounts shown above are based on the beneficiary named above and are payable only to this beneficiary. If you wish to change your beneficiary before your payments begin, new amounts will have to be calculated. BOARD OF TRUSTEES: By DATE: I accept the terms above, including my choice of annuity form, and confirm the information shown above to be correct. PARTICIPANT'S SIGNATURE: DATE: �vZ BENEFICIARY'S SIGNATURE: I &4t DATE ralig 1 �s Calculation Date: * * * PENSION STATUS REPORT CITY OF BOYNTON BEACH POLICE PENSION SYSTEM DATE PREPARED: December 9, 2015 FOR: MARTINEZ, ALFRED SSN: 593 -30 -xxxx EMP NO: 3124 BIRTH DATE: 04/28/1975 AGE: 40 PLAN: PP DEPT: 21 HIRE DATE: 10/04/2004 PENSION HIRE DATE: 10/04/2004 VEST DATE: 10/04/2009 ADJUSTED HIRE DATE: 10/04/2004 EARLY RETIRE DATE: 00 /00 /0000 LENGTH OF SERVICE: 11 YR 0 MO NORMAL RETIRE DATE: 10/04/2024 TERMINATION DATE: 11/02/2015 BENEFICIARY: ELIANA ARRAEZ BENEFICIARY BIRTH DATE: 12/12/1978 * * VACATION /SICK ACCRUALS CURRENT: HOURLY RATE: 30.29 VAC HOURS: 0.00 SIC HOURS: 0.00 2013 CAP: HOURLY RATE: 27.74 VAC HOURS: 398.48 SIC HOURS: 195.85 * * ACCOUNT BALANCE * * `de POST -TAX CONTRIBUTIONS: $ .00 PRE -TAX CONTRIBUTIONS: $ 51,857.19 CONTRIBUTION BALANCE: $ 51,857.19 * * ELECTIVE BENEFITS * * 1 �1 PURCHASE PURCHASE SERVICE PLAN YEAR LIFETIME PLAN YEAR CODE START END YY -MM -DD CONTRIBUTION CONTRIBUTION REFUNDS P1 10/04/2004 /0000 0 0 0 195.75 7,408.22 .00 M1 10/04/2004 00 /00 /0000 0 0 0 195.75 7,408.22 .00 P1 - 1% HEALTH INSURANCE SUBSIDY M1 - 1% MATCHING FUNDS P2 - SERVICE BUY BACK PAYROLL DEDUCTION P9 - SERVICE BUY BACK PAYROLL DEDUCTION 1P - ARREARAGE 1% PA - ARREARAGE 7% L1 - SERVICE BUY BACK LUMP SUM - PRE -TAX L2 - SERVICE BUY BACK LUMP SUM - POST -TAX UL - UNPAID LEAVE SERVICE REDUCTION y Z (D Co H S✓ n O CJ � H N• m P- a .A OWIO LT ID U M 0NLTIMMUlMWMLnIDNMNk- 0614P Ia'M(TlM 1- t ( OWH- 7N0�70N(. n0001PN LT] N x, c nrjmcOI- -'LnJNH-.16l']� wI--'z k C OD Ln W(O dl OD 0) W1,DMH O 4�- �IX�O JOAF -'-100 H W Ul Cn(O H Ln M CQ -,j F-3 W.A NM CD .A lO W O O W Cn Ln O O dt J�-J O Ul Ln OH--I CO �NN.P l4 l0 G�G�GIG�G�roro( �t�r�dddrdnnnnnnnnnmr ;7r>yrdmmtn�� r xt"Iwroo Qamm t-I m (--000x�v� HnMrromZroF3rH�XOZro >M O r�U00Ha�rroH0 Z Cxmzll cyoHOry -300 zzfTJroxii Ljmnzow0Z9zl::)lJxlJ ( a co t-j Cnm d lz HCJNm ` H` (nN > ` H zoz C) 0 w �dHH� z n >co F� r �p r mJ �o` U]` U];dzC40 (D O` HO x` HZCJH3 x zC)0- r` Z0Z t i -301 01 -3 W W 0M'-CO 't7 CO ;d Cl) H 1 �u 0` � H • O co C -C J` G�` H � > C a - H • Cam]` H Z P- C�3x0WC -1 ` w Cf)F3CIC.l -3` �G)C�iC -O C r` C 3o- H LTJ ` xCl) d j0 H` x0t -]HC1 C- IC >7d >zrH m 0t-IN w un roH0 �v U]o w rJ 7d ox ml C7 xo H xo Z Lei 0mH :d 0:h �:d rt x l > r x z N C Z ft] � M t7 -C H r I-< U] r'7 � 7d C U` H H ` C r > > w co � � W 0 Z H r r H co Cn m U] H W H C7 r d L J n z z t r ?y FC H 'i1 C1 0 OH00 HOOH H 00000000H00CD CD CD O F- -'0000000 MP--INLnW O NI) OIONOD W- -7 x LTI M wI— - j - H H H H H H b7 a n 1010 C0(O(0 Q0 (O W Q0(0 CO IO(O 1010 QO W W Cfl l0 l4 l0 to l0 Cfl"0(0 o1.0 t0(Ow -o N-rt H W Ln g�- Ol Ln rn rn J� --1 x, J�. a, r:, r�. 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KURLANDER, N.D., F.A. 15D EAST SAMPLE ROAD SUITE 100 POMPANO BEACH, FL 33064 Phone Number: 954 --786 -2255 Fax Number: 954786 -7146 f ! FAX TRANSMITT FORM To: DI From: SHAREN RE: FEES Date Sent: 516116 Phone: Number of Pages: Fax: 954-9164232 f 1 STATEMENT I IME $1,200.00 I OM FEE OF PER INCH FOR REVIEW $200.00 i OF RECORDS C ANCELLATION ? WITHIN 24 HOURS 175.00 TAX ID #f65- 0466666 May 06 16 11:55a Ronald Kurlander 9547867716 p.2 RONALD H. KURLANDER, M.D., P.A. NORTH BROWARD PROFE551011AL CENTER, 150 EAITSAMPLE ROAD, SUITE i00, POMPANO BEACH, FL 33064 (954) 786 -2255, FAX (954) 786 -7146 PERSONAL: Born: February 13, 1948 Health: Excellent LICENSE: Florida State Board medical Examiners License ONNM33297 EDUCATION. TULANE UNIVERSITY B.S. in Biology and Chemistry (Pre -Med Major) Deans List New York State Regents Scholarship Editorial Staff - University Newspaper Student Senator Delegate, Student Health and Welfare committee Treasurer, Men's Residence Assn. Matriculated June 1970 UNIVERSITY AUTONOMA OF GUADALAJARA MEDICAL SCHOOL 4 years: then transferred to: STATE UNIVERSITY OF NEW YORK MEDICAL SCHOOL Stoney Brook - 5 Pathway Matriculated June 1976 CLLNIC AL E?[PERIENCE AND TRAINI G: 1977: JACKSON MEMORIAL HOSPITAL Internship - Internal Medicine and Psychiatry 1977 -1980: JACKSON MEMORIAL HOSPITAL 1 Residency - In Psychiatry Delegate to Resident Training Committee i Three consecutive years Delegate Representariae from Psychiatry To In -House Staff Steering Committee i 1980 -1981: Director Southeast Biosocial Institute 1981 -1993: Palm Beach County Comprehensive Community Mental Health Center In charge of inpatient services 1 f May 061611:56a Ronald Kurlander 9547867716 p.3 I CLINICAL E ERIENCE AND TRAP l G (Cont'd) 1981 -1933: Prison Health Services as psychiatrist for Broward County correctional facilities 1981-1994: Private Practice at 1500 East Hillsboro Blvd. Suite 205 Deerfield Beach, FL 33441 1998 -1999: Medical Director of Adolescent Services At Atlantic shores Hospital 1999 -2003; Chief of Staff at Atlantic Shores Hospital 2000 -2003; Medical Director of Adult Psychiatric Services at Atlantic Shores Hospital 2000 -2013 Director at Behavioral Health Services for Best Choice Plus North Bromerd Hospital District 1994- 2013: Private Practice 1 West Sample Road Suite 205 Pompano Beach, FL 33064 2013- Present: Private Practice 150 East Sample Road Suite 100 Pompano Beach, FL 33064 -3550 PROFESSIONAL ASSOCIATIONS AND COM1%U TEES: �� 1981 -1983: Broward County Mental Health Association - member of the Board of Directors 1981 -1983: Broward County medical Association 1981 - Present: Florida Medical Association 1981 - Present: South Florida Psychiatric Association 1987 -1989: Executive Committee of Ft- Lauderdale Psychiatric Hospital 1991 -1995: Executive Committee of Coral Ridge Psychiatric Hospital 1997 -2003: Executive C ommitt ee of Atlantic Shores Hospital 2000 -2013 Medical Director of Behavioral Health Senices For Best Choice Plus HMO and Best Choice Plus PPO 2 May 06 16 11:56a Ronald Kurlander 9547867716 p.4 I CLTNICAL — i ESTIGATIONS: 111/95- 9.'8/95: Bristol Meyers Squib Clinical Researcher for Serzone Protocol 4CNI 104-124 9,97 -6/98: Quest Study Phase III Study 5077US/0004:0059 For Quatrain (Seroquel) 3 /14 102- ongoing: Zodiac Study A Multicenter Comparative Cardiovascular Safety Study of ZiprosidDne and Olanzapine 111!03- 61]!03: Exceed Study Efficacy Study for Lexapro I 4 4 61;0:05 RESST Study Sleep Study comparing Lunesta to other Sleeping medications for Efficacy and Side Effects PUBLICATIONS: "Dangers of Medications Purchased Overseas Or on the Internet" In Primary Psychiatry June 2003: Vol. 12. No. 6 A -D S. ZAGER, M.D., P.A. 'SUITE 3810 HOLLYWOOD BOULEVARD HOLLYWOOD, FLORIDA 33021 TELEPHONE (954) 983 -85'11 FAX (954) 983 -8518 ATTENTION: FAX#: AT: DATE: RE: Number of pages including cover COMMENTS: l 'd 9Qc�9 '°Pl OJV9�: u l 9 '9 'A '4vj ARNOLD S._ZAGER, M.D -, P.R. SUITE 2 3810 HOLLYWOOD BOULEVARD HOLLY WOOD, FLORIDA 33021 TELEPHONE (954) 983 -6511 FAX (954) 983 -8518 OIPLOMATEAMERICAN BOARD OF PSYCHIATRY AND NEUROLOGY CURRICULUM VITAE OF ARNOLD S. ZAGER. M.D. EDUCATION: (A) College: Temple University, Philadelphia, PA, 1962 --1965 (B) Medical School: Temple University School of Medicine, 1965 —1969, Doctor of Medicine degree (C) Internship; Rotating Internship', Abington Memorial Hospital, Abington, PA, 1969 —1970 (D) Residency: Philadelphia Psychiatric Center, Philadelphia, PA 1970 —1973 CERTIFICAWN AND LICENSURE (A) Certified by the State of Florida, Division of Workers' Compensation, 1995 (B) Licensed to practice Medicine, State of Florida, 1973 (C) Certified by National Board of Medical Examiners, 1970 (D) Certified in Psychiatry as Diplomate of the American Board of Psychiatry and Neurology, 1975 CONSULTING AND COMMITTEE POSITIONS (A) Former Medical Director, The Retreat Psychiatric Hospital, Sunrise FL (B) Former consulting psychiatrist for the 17 Circuit of the Broward County Court (C) Formerof expert panel in psychiatry for Health and Rehabilitative Services, State of Florida (D) Former consulting psychiatrist, Goodwill Opportunity Center of Fort Lauderdale MEDICAL50CIETY MEMBERSHIPS (A) Broward County Psychiatric Society: General memberthrough present Secretary treasurer 1975 -1976 President elect 1976-1977 President 1977 —1.976 (8) American Psychiatric Association Florida Psychiatric Society American Academy of Psychiatry and the Law AWARDS Recipient of American Medical Association Physician's Recognition Award PRIVATE PRACTICE 1973 through present: General practice in Psychiatry Z 'd 90H 'I N VI!dWE 933 9 �� ARNOLD S.7AGER, M.D., P.A. 'SUITE 2 3810 HOLLYWOOD BOULEVARD 'HOLLYWOOD, FLORIDA 33021 TELEPHONE (954) 983.8551 FAX (954) 993 -8518 DIPLOMATS AMERICAN BOARD OF PSYCHIATRY AND NEUROLOGY FEE SCHEDULE IME (Dr. lagers Office independent Psychiatric Examination and report $975.00 DISRUPTION FEE if appointment is not kept or is cancelled In less than 5 business days $975.00 Review of Medical Records, per hour .......... $400.00 MINNESOTA MYLTIPHASIC•PERSONALITY INVENTORY $300.00 (MMPI — psychological testing) EXPERT TESTIMONY: Deposition, per hour .......... $400.00 Videotaped deposition, per hour .......... $600.00 Court testimony, per hour Portal to portal $400.00 PLEASE NOTE: 1. Prepayment is required 2. Upon receipt of medical records to be reviewed, approximate time will be estimated and prepayment will be requested. CONFERENCE one hour $450.00, , 1 /2 hour $400.00, 1 /4 hour $350.00 a TAX ID 591548510 i d M9 ON Avt� :Q! 9"E '9 APW ARNOLD S. ZAGER, M.D., P.A. SUITE 2 3810 HOLLYWOOD BOULEVARD HOLLYWOOD, FLORIDA 33021 TELEPHONE (954) 983 -8511 FAX (954) 983 -8518 DIPLOMATE AMERICAN BOARD OF PSYCHIATRY AND NEUROLOGY FEE SCHEDULE FOR INDEPENDENT PSYCHIATRIC EXAMINATION PERFORMED IN PALM BEACH COUNTY, FLORIDA Independent Psychiatric Examination and Report ............ $ 975.00 Travel time, total of 2 hours for location to be provided by Requesting attorney, preferably at a court reporting office in the Boca Raton area (travel time may be greater if appropriate) ......... 800.00 Disruption fee if appointment is not kept or is cancelled in less than 5 business days. If travel time is greater than 2 hours then charge will be appropriate for that time , $1775.00 Review of medical records, per hour .................... $ 400.00 Expert testimony: Deposition, per hour............ $ 400.00 Video deposition, per hour.... 600,00 Court testimony per hour, portal to portal ...... 400.00 ,Minnesota Multiphasic Personality inventory (Psychological testing) $ 300.00 PREPAYMENT OF IME FEE AND TRAVEL TIME IS REQUIRED $1775.00 Upon receipt of medical records to be reviewed, approximate time will be estimated and prepayment will be requested Tax ID 59 1548510 d 900 ' °�! AVL� :01 9101 '9 'A'N -aq �, Barbara Ladue From: Athol, Toby <AtholT @bbfl.us> Sent: Tuesday, May 03, 2016 3:21 PM t , To: Barbara Ladue j Subject: RE: Police Pension - Def Vested Benefit kin into that now and Bonnie believes it might have been "left out" unintentionally we are researching We are looking t g y g the change and if there was any reason for it? If so we will have to renegotiate it as we are in contracts now anyway and have to have it placed back into the ordinance as it is a NO COST issue anyway, more of a technicality Thanks Det Toby Athol Boynton Beach Police Department 561.742.6152 - - - -- Original Message---- - From: Barbara Ladue [ mailto:ladueb @bbpdpension.com Sent: Tuesday, May 03, 20161:55 PM To: Athol, Toby Subject: Police Pension - Def Vested Benefit Toby: When you have some time I would like your review: A member that terminates and leaves his contributions in Plan to receive a def vested benefit (the accrued benefit) at what would have been his NRD. This is how the Plan was programmed and we have operated under this assumption. Please see attached items for some background information on this. It appears that I completely missed a change in this assumption back in Oct 2002, that only allows for def vested benefit for what would have been NRD of 20 years, or Age 55 with 10 years - service.... completely leaving out the NRD of Age 50 with 15 years- service. This came to light recently with several terminations of older members leaving their contributions in the Plan for a def vested benefit at what would have been their NRD. Their NRD date is Age 50/15 years. To me this is discriminating against the members with Age 50 /15years as the NRD, it doesn't seem fair. What might be the reasoning on this? Thanks. Barb z Barbara Ladue From: Barbara Ladue <ladueb @bbpdpension.com> Sent: Tuesday, May 03, 20161:55 PM To: 'Athol, Toby' Subject: Police Pension - Def Vested Benefit Attachments: D00O50316.pdf Toby: When you have some time I would like your review: A member that terminates and leaves his contributions in Plan to receive a def vested benefit (the accrued benefit) at what would have been his NRD. This is how the Plan was programmed and we have operated under this assumption. Please see attached items for some background information on this. It appears that I completely missed a change in this assumption back in Oct 2002, that only allows for def vested benefit for what would have been NRD of 20 years, or Age 55 with 10 years - service.... completely leaving out the NRD of Age 50 with 15 years- service. This came to light recently with several terminations of older members leaving their contributions in the Plan for a def vested benefit at what would have been their NRD. Their NRD date is Age 50/15 years, To me this is discriminating against the members with Age 50 /15years as the NRD, it doesn't seem fair. What might be the reasoning on this? Thanks. Barb Barb La Due Pension Administrator Boynton Beach Police & Fire Pension Funds Phone: (561) 739.7972 - - - -- Original Message---- - From: Scanner [ mailto:faxexecsuites @gmaii.com Sent: Tuesday, May 03, 20161:35 PM To: BARBARA LADUE Subject: Send data from MFP07580425 05/03/2016 13:35 Scanned from MFP07580425 Date:05/03/2016 13:35 Pages:12 Resolution:200x200 DPI ---------------------------------------- Barbara Ladue From: Barbara Ladue <ladueb @bbpdpension.com> Sent: Thursday, April 14, 2016 11:34 AM To: Bonni Jensen (bonni @robertdklausner.com); Pete.Strong @gabrielroeder.com Cc: ellensch @bellsouth.net Subject: Boynton Police - Term of Employment - Vesting Attachments: D00041416.pdf I reviewed some of the past actuarial valuations and through October 2007 -- vesting on terminated participants was the accrued benefit payable at his NRD. NRD included 20 yrs, Age 55 with 10 yrs and Age 50 with 15 yrs. Sometime in 2008/2009 the wording was altered and NRD for Age 50 with 15 yrs service was not referenced in the rewording. Barb Barb La Due Pension Administrator Boynton Beach Police & Fire Pension Funds Phone: (561) 739.7972 - - - -- Original Message---- - From: Scanner fmailto :faxexecsuites @gmail.com Sent: Thursday, April 14,2016 10:31 AM To: BARBARA LADUE Subject: Send data from MFP07580425 04/14/201610:30 Scanned from MFP07580425 Date:04/14/201610:30 Pages:3 Resolution:200x200 DPI ---------------------------------------- a V Russell J Investments Quarterly Investment Review ff 'Mil City of Boynton Beach Police Retirement Fund FIRST QUARTER 2016 Quarterly Investment Review City of Boynton Beach Police Retirement Fund Your Client Service Team Mary Jean Serene, CFA Client Executive (877) 500 -1298 (312) 780 -7124 mjserene @russellinvestments.com Russell Investments 71 S. Wacker Drive, Suite 2040 Chicago, 11 60606 Fax (312) 780 -7159 Karen Pheneger Client Service Analyst (800) 426 -7969 (206) 505 -1972 kpheneger @russellinvestments.com Russell Investments 1301 Second Avenue, 18th Floor Seattle, WA 98101 Fax (206) 505 -1565 Jacqueline Pedraza Senior Account Executive (800) 455 -3782 (206) 505 -1939 jpedraza @russellinvestments.com Russell Investments 1301 Second Avenue, 18th Floor Seattle, WA 98101 Fax (206) 505 -1565 Michael Auger Regional Director (813) 288 -4624 mauger @russellinvestments.com Russell Investments 15310 Amberely Drive Tampa, FL 33647 Fax (813) 910 -7676 p . 2 VAI Russell Investments Important Information Russell Trust Company Funds are collective or commingled funds for which Russell Trust Company serves as trustee. They are not funds of Russell Investment Company, nor a mutual fund registered under the Investment Company Act of 1940. Russell Institutional Funds, LLC (RIFL) funds are not mutual funds, but are funds of the Russell Institutional Funds, LLC, they are private placements. An investment in the Russell Institutional Funds, LLC involves certain risks and considerations that prospective investors should evaluate before making a decision to invest. The information provided in this material is for the exclusive use of the recipient for the sole purpose of evaluating the Russell Institutional Funds, LLC private placement. The material may not be reproduced, provided or disclosed to others or used for any other purpose without prior written authorization. No investment may be made in any fund unless the investor has reviewed the Private Placement Memorandum ( "PPM ") and the PPM Supplement with respect to the particular fund(s) under consideration. Prospective investors should read all of the materials carefully before investing, and are advised to consult with their own legal, tax and financial advisers as to the consequences of an investment in any fund. Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns. Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors and size of companies preferred by the advisors. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. Indexes and /or benchmarks are unmanaged and cannot be invested in directly. Past performance is not indicative of future results. Performance is gross of fees unless otherwise noted. Fees will reduce the overall performance of the fund. Only client account performance is reflective of actual investments from the client's investment inception date. Fund performance shown does not reflect individual client investment inception dates or other client specific actions such as contributions. Russell Investments and Standard & Poor's Corporation are owners of the trademark, service marks, and copyrights relating to the Russell Indexes and the S &P 500, respectively. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI. Source: BofA Merrill Lynch, used with permission. BofA Merrill Lynch is licensing the BofA Merrill Lynch Indices "as is ", makes no warranties regarding same, does not guarantee the quality, accuracy, and /or completeness of the BofA Merrill Lynch Indices or any data included therein or derived there from, and assumes no liability in connection with their use. Copyright© Russell Investments 2016. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an "as is" basis without warranty. Russell Investments is a trade name and registered trademark of Frank Russell Company, a Washington USA corporation, which operates through subsidiaries worldwide and is part of London Stock Exchange Group. The Russell logo is a trademark and service of the Russell Investments. First used: August 2015; updated February 2016; updated May 2016 USI -22695 08 -16 p.s 51 Russell Investments V Russell Investments Russell Inv stments Update M First Quarter 2016 � Russell I,] Investments E and Financial Markets Review First Quarter 2016 Capital markets Periods ending March 31, 2016 15 10 4.8 5.2 5 3.0 p� Z 1.0 r 0.4 W 0 _E,® _ t -5 1.9 W -1 0 _, U.S. Equity ■ Non -U.S. Developed Equity -15 - ■ Emerging Markets ■ U.S. Bonds -20 Global REITs Commodities -25 2016 Q1 Capital market returns 11.2 5.5 2.0 2.2 2.5 0.4 -0.3 E -8.0 -10.5 1 -Year 3 -Years ANNUALIZED U.S. Equity: (Russell 3000 Index) U.S. stock index which includes the 3,000 largest U.S. stocks as measured by market capitalization Non -U.S. Developed Equity: (Russell Developed ex -U.S. Large Cap Index) International market index that includes Western Europe, Japan, Australia and Canada Emerging Markets: (Russell Emerging Markets Index) Emerging markets index that includes S. Korea, Brazil, Russia, India and China U.S. Bonds.: (Barclays U.S. Aggregate Bond Index) Broad index for U.S. Fixed Income market Global REITs: (FTSE EPRA/NAREIT Developed Real Estate Index) Index for global publicly traded real estate securities Commodities: (Bloomberg Commodity Index Total Return) Broad index of common commodities -3.3 -19.6 -16.9 11.0 7.7 3.8 - - ■ -3.3 6.9 3.7 4.9 AN 2.9 3.9 WE=AL p. -14.2 5 -Years 10 -Years I -6.2 > Q1 got off to a volatile start, but ended positive in most markets > U.S. Equity markets finished Q1 up almost 1 %, recuperating in March from double digit losses earlier in the quarter > Emerging markets rebounded in Q1 bolstered by improving commodity prices and slowing U.S. dollar trend > U.S. bonds saw declining yields in Q1 with reduced expectations of future rate hikes in 2016 > Global REITs finished up 5.2% for the quarter > Commodities moved slightly positive in March as oil prices stabilized and gold prices rose. Source: Russell, Barclays, Bloomberg, and FTSE NAREIT. �„, p.6 Index returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. 50 Russell Investments A nn 2015 vs. 2016 first quarter: DeIf ja vu all over again 2015 $105 $103 $93 s s y 1 1 r r ' k r ► r s t $91 0 2016 Q1 � 4 E6UITIES UP 13p4g r ► r' (�eb 11th — Mar 3154) ► r r l 1 ► EQUITIES UP 9% (Aug — Dec 31st) r 1 � � ► r 1 r 1 , It ► EQUITIES PULLBACK 10% ` 1 (Dec 31st — Feb 11th) i Y r s„ r 1 4 1� ^'0 b N o o`�' oN o'` P o` Represented by the S &P 500® Index. Morningstar. 1, Index returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Russell Inves P- Indexes are unmanaged and cannot be invested in directly. Russell's global economic &market outlook United Mates Eurozone Asia/ Emerging Markets > Foresee 2 0% U S GDP growth in 2016 > We now look for the Fed to hike two times in total in 2016 > The first two months of the year averaged 207k fob growth > Expect around 190k job growth through 2016 > Low recession risk despite the economic cycles mature age Expectation of the US 10 -year treasury yield to hit 2 3% by the end of 2016 Equity valuations remain expensive and we see this as a headwind to future market performance Earnings- per -share growth are under pressure from weak productivity growth, a strong US dollar, and sluggish growth in revenue > GDP growth in 2016 expected to be 1 5% > The ECB has cut interest rates Into negative territory turning the euro Into a funding currency, which should make it more attractive for investors > Consumer demand, positive credit - growth, and lower oil prices should keep Eurozone growth positive Equity valuations remain more attractive in comparison to the U S and opportunities remain available While corporate earnings growth is up year -to -date, the trend has been down this year > The global markets slowdown has had an effect on Eurozone growth, but negative impacts should continue to be restrained by strong fundamental growth and loose monetary policy Chinese GDP forecast has dropped to below 6 0% > Japan s real growth grew at a 0.5% rate with lackluster support from "Abenomics" which has led us to downgrade the countries cycle this quarter > The trade slump in emerging markets has deepened, where South Korea and China are both experiencing double- digit declines > Equity markets lack either positive momentum or convincing cyclical support, but currently offer acceptable value > Fixed income markets are at extremes of expensive valuation We expect China to continue the path of a "soft landing' regarding the slowdown currently underway > Property markets remain surprisingly well - behaved in both Australia and New Zealand There is no guarantee the stated expectations will be met. As of March 31, 2016. p.s G�li Russell Investments ,( �. V Russell Ixvestments Account review First Quarter 2016 Asset Summary Report City of Boynton Beach Police Retirement Fund As of March 31. 2016 Market Actual Policy Holding Value Holding Holding Variance Boynton Beach Police Officers Retirement Trust Investment Account - QU7W Total Assets $ 83,450,040 RTC Multi -Asset Core Fund 32,114,690 RTC Russell LC Defensive Equity Fd 21,576,452 RTC Multi- Manager Bond Fund 22,869,754 RTC Real Estate Equity Fund 6,512,047 Cash, Payable /Receivable Please read the endnotes included with the report. Endnotes: 1 Market value is as of the quarter ending 03/31/16. 4- May -2016 4:03:39 AM EDT Copyright (c) Russell Investments 2016. All rights reserved. 100.00% 100.00% -- % 38.48 39.00 -0.52 25.86 26.00 -0.14 27.41 28.00 -0.59 7.80 7.00 0.80 377,098 0.45 0.00 0.45 p.10 Russell Investments Market Value Reconciliation City of Boynton Beach Police Retirement Fund As of March 31, 2016 4- May -2016 4:03:39 AM EDT Copyright (c) Russell Investments 2016. All rights reserved. P .11 Imid Russell Investments L FYTD One Month Three Months Year to Date 09130 B(?vntnn Br;aah Police Officers Retirement Trust Investment Account - Qt17W Beginning Market Value $ 80,378,378 $ 83,370,726 $ 83,370,726 $ 78,037,730 Inflows 84,071 266,126 266,126 5,005,814 Outflows - 410,303 - 1,576,442 - 1,576,442 - 3,365,325 Net Inflows /Outflows - 326,232 - 1,310,316 - 1,310,316 1,640,490 Appreciation /Depreciation 3,397,894 1,389,630 1,389,630 3,771,789 Income Earned 0 0 0 31 Net Market Gain /Loss 3,397,894 1,389,630 1,389,630 3,771,820 Ending Market Value 83,450,040 83,450,040 83,450,040 83,450,040 4- May -2016 4:03:39 AM EDT Copyright (c) Russell Investments 2016. All rights reserved. P .11 Imid Russell Investments L Performance Report City of Boynton Beach Police Retirement Fund As of March 31, 2016 Annualized 4- May -2016 4:03:39 AM EDT Copyright (c) Russell Investments 2016. All rights reserved. Past performance is not indicative of future results. p 91 Russell Investments =- Market One Three Yearto FYTD One Three Five Ten Since Inception Value Month Months Date 09130 Year Years Years Years Inception Date Boynton Beach Police Officers Retirement Trust Investment Account - QU7W Total Assets -Gross 1.2 $ 83,450,040 4.24% 1.73% 1.73% 4.95% 1.75% 7.03% 7.18% 5.63% 6.58% 07/01/2002 Total Assets -Net 1.2 83,450,040 4.19 1.57 1.57 4.59 1.01 6.21 6.35 4.84 5.80 07/01/2002 Russell Custom Benchmark 3 4.52 2.27 2.27 5.58 1.38 6.45 6.55 5.34 6.25 - Consultant Benchmark 4 4.76 1.68 1.68 4.65 -0.62 4.58 5.16 4.85 5.93 Total Liquid Return Seeking 53,691,142 5.77 0.98 0.98 5.95 0.28 8.15 10.65 08/31/2012 RTC Multi -Asset Core Fund 32,114,690 5.74 -0.15 -0.15 3.76 -2.64 6.04 -• 8.84 08131/2012 Multi -Asset Core Composite Bmk 5,6 6.16 0.59 0.59 4.12 -4.44 4.83 7.24 RTC Russell LC Defensive Equity Fd 21,576,452 5.81 2.66 2.66 9.28 4.74 - 11.26 09/18/2013 Russell 1000 Defensive Index (Linked) 6.49 3.70 3.70 10.73 5.82 11.43 Total Fixed Income 22,869,754 1.58 3.44 3.44 2.66 2.01 3.09 4.56 5.72 5.43 09/01/2002 Barclays U.S. Aggregate Bond Index 0.92 3.03 3.03 2.44 1.96 2.50 3.78 4.90 4.59 RTC Multi- Manager Bond Fund 22,869,754 1.58 3.44 3.44 2.66 2.01 3.09 4.56 6.46 09/30/2008 Barclays U.S. Aggregate Bond Index 0.92 3.03 3.03 2.44 1.96 2.50 3.78 4.68 Total Alternative Investments 2 6,512,047 1.83 1.83 1.83 4.80 12.91 13.77 12.57 5.34 07/01/2006 Please read the endnotes included with the report. 4- May -2016 4:03:39 AM EDT Copyright (c) Russell Investments 2016. All rights reserved. Past performance is not indicative of future results. p 91 Russell Investments =- Performance Report City of Boynton Beach Police Retirement Fund As of March 31, 2016 Please read the endnotes included with the report. Endnotes: 1 Net of fee adjusted returns are estimated using basis point adjustments. Returns are geometrically linked and could experience compounding effects. 2 RTC Real Estate Equity Fund is valued quarterly. The market value shown is as of the quarter ending 03/31/16 while the performance is reported as of the date of the performance report. The market value is reported net of fees while returns are reported gross of fees unless otherwise noted. Fee adjusted returns are estimated using basis point adjustments. Returns are geometrically linked and could experience compounding effects. 3 Russell Custom Benchmark currently consists of: 39.0% Multi -Asset Core Composite Bmk, 26.0% R1000 Defensive, 28.0% Barclays Aggregate, 7.0% NFI - ODCE -EQ. 4 Consultant Benchmark currently consists of: 30.0% MSCI ACWI, 25.0% R1000, 32.0% Barclays Aggregate, 2.0% Wilshire US REIT, 2.0% S &P Gbl Infrastructure Net, 5.0% NFI -ODCE- EQ, 2.0% Bloomberg Commodity, 2.0% BofAML 3 -Month US T -Bill. 5 The Multi -Asset Core Composite Bmk is appropriate for evaluating the Fund over a 3 to 5 year horizon. 6 The Multi -Asset Core Composite Benchmark currently consists of: 75.0% Russell World Cap 50% Hedged Net Index, 5.0% Bloomberg Commodity Index, 5.0% FTSE EPRA/NAREIT Dev Real Estate Net, 5.0% S &P Global Infrastructure Index Net, 7.0% Barclays U.S. Aggregate Bond Index, 3.0% Barclays U.S. 1 -3 Month Treasury Bill Index. Allocation changes and underlying fund additions and deletions over time will be captured in the composite index. Prior allocations available upon request. 7 NCREIF Fund Index Open -End Diversified Core Equity -Equal Weight (NFI - ODCE -EQ). 4- May -2016 4:03:39 AM EDT Copyright (c) Russell Investments 2016. All rights reserved. Past performance is not indicative of future results. p.13 Q Russell Investments Annualized Market One Three Year to FYTD One Three Five Ten Since Inception Value Month Months Date 09130 Year Years Years Years Inception Date RTC Real Estate Equity Fund 2 $ 6,512,047 1.83% 1.83% 1.83% 4.80% 12.91% 13.77% 13.55% -- % 5.71 % 07/01/2006 NFI - ODCE -EQ 7 — 2.44 2.44 2.44 5.95 14.10 13.57 13.21 5.83 Please read the endnotes included with the report. Endnotes: 1 Net of fee adjusted returns are estimated using basis point adjustments. Returns are geometrically linked and could experience compounding effects. 2 RTC Real Estate Equity Fund is valued quarterly. The market value shown is as of the quarter ending 03/31/16 while the performance is reported as of the date of the performance report. The market value is reported net of fees while returns are reported gross of fees unless otherwise noted. Fee adjusted returns are estimated using basis point adjustments. Returns are geometrically linked and could experience compounding effects. 3 Russell Custom Benchmark currently consists of: 39.0% Multi -Asset Core Composite Bmk, 26.0% R1000 Defensive, 28.0% Barclays Aggregate, 7.0% NFI - ODCE -EQ. 4 Consultant Benchmark currently consists of: 30.0% MSCI ACWI, 25.0% R1000, 32.0% Barclays Aggregate, 2.0% Wilshire US REIT, 2.0% S &P Gbl Infrastructure Net, 5.0% NFI -ODCE- EQ, 2.0% Bloomberg Commodity, 2.0% BofAML 3 -Month US T -Bill. 5 The Multi -Asset Core Composite Bmk is appropriate for evaluating the Fund over a 3 to 5 year horizon. 6 The Multi -Asset Core Composite Benchmark currently consists of: 75.0% Russell World Cap 50% Hedged Net Index, 5.0% Bloomberg Commodity Index, 5.0% FTSE EPRA/NAREIT Dev Real Estate Net, 5.0% S &P Global Infrastructure Index Net, 7.0% Barclays U.S. Aggregate Bond Index, 3.0% Barclays U.S. 1 -3 Month Treasury Bill Index. Allocation changes and underlying fund additions and deletions over time will be captured in the composite index. Prior allocations available upon request. 7 NCREIF Fund Index Open -End Diversified Core Equity -Equal Weight (NFI - ODCE -EQ). 4- May -2016 4:03:39 AM EDT Copyright (c) Russell Investments 2016. All rights reserved. Past performance is not indicative of future results. p.13 Q Russell Investments Russell �i Investments Russell Investments "k w fu n d revi 00 M First Quarter 2016 RTC Multi -Asset Core Fund Fund positioning —first quarter 2016 Small cap, value, and ■ Consistent with our strategic beliefs, we momentum overweights in believe these factor biases have long equity term excess return potential Passive 50% currency hedge ■ Hedging currency helps reduce regret, gives us ability to be tactical and can reduce overall volatility Underweight interest rate Expensive relative to their historical sensitive equities levels, not likely to perform well in a rising interest rate scenario Overweight Europe (hedged) Low valuations, a supportive ECB and earnings improving on a weak Euro could lead to outperformance Underweight Commodities- Supply /demand imbalances and strong related countries (Canada dollarwould cause headwinds and Australia) Overweight Value Advisors I Expected long term mean reversion following growth advisor outperformance Overweight USD ■ Economic growth, rising rates and policy divergence could lead to strong USD Beta ■ Underweight due to anticipated volatility Active advisor stock selection • Idiosyncratic in nature; Russell has as the main driver of excess differentiated research and advisors with returns skill flat + flat Slowly adding to value. We remain 50% hedged Significantly positive Positive Negative Significantly negative Sold an additional 11% of REITs (added to Financials within equity). Added risk - adjusted exposure in January via options strategy. Maintained position in 1Q. New value advisor Kopernik, hired July 2015, was the strongest contributor to performance for the quarter. Neutralized CAD position in January; AUD underweight had modest impact on performance. Moved overweight risk mid- February on the sell -off; moderated position mid -March after participating in the rally and ended the quarter neutral on beta. Incrementally added to high conviction active advisors after periods of underperformance. Past performance is not indicative of future results. p.15 This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. V /�.1 Russell InveSftnents Any stork level commentary is specific to the impact on fund performance only and is not a recommendation to purchase or sell any specific security. 1Q16 DATA NOT YET AVAILABLE RTC Multi -Asset Core Fund — period ending December 31, 2015 Strategy The Russell Multi -Asset Core Fund has a strategic allocation of 75% global equity, 15% real assets (global REITs, listed infrastructure, and commodities), and 10% fixed income. The Fund is dynamic in nature and so the portfolio manager is allowed to deviate up to +/- 3% from the strategic targets to take advantage of market opportunities to enhance return and /or to manage risk. The Fund utilizes a combination of Russell asset class funds, separate manager accounts, and positioning strategies Excess Return Attribution 4Q 2015 Top three contributors to excess return Active Managers _ F — — — .] D 7/, EMEA ex UK o.1% Overweight CAD Underweight 0.0% Annualized Performance Year to Three Inception 40 2015 pate One Year Years to date' RTC Multi Asset Core Fund 3.91 0.91% 0.91 j 8.49% 7.84 % Multi -Asset Core Composite Index 3.51% - 2.43% 2.4 3% 6.7 - 1 6.49% 'Fund inception date is 0510711992. Effective Apri12, 2012 the Russell Global Equity Fund changed its name to the Russell Multi -Asset Core Fund and changes were made to the underlying allocationstinvestments. In addition, the Fund's primary benchmark changed fromthe Global Equity Composite Index to the Multi -Asset Core Composite Index. Historical performance of the Russell Multi -Asset Core fund is available upon request. Russell Multi -Asset Core Fund Composite Benchmark consists or: 75% Russell word Cap 50% Hedged Index, 5% Bloomberg Commodity Index Total Return (USD), 5% FTSE EPRAINAREIT Developed Real Estate Index (Net), 5% S &P Global Infrastructure Index Net (USD), 7% Barclays U.S. Aggregate Bond Index, 3% Barclays U.S. 1 -3 Month Treasury Bill Index. Strategic asset allocation changes overtime will be captured in the composite index. Characteristics Total Net Assets Global Equity Portfolio P/E Portfolio P/E — I /B /E /S 1 yr. Forecast EPS $ Weighted Average Market Capitalization Return Seeking Fixed Incomee Current Yield ( %) Weighted Average Duration Average Credit Quality Strategic Asset Allocation Actual Asset Allocation as of 12/31/2015 0.00% 0.20% 0.40% 0.60% 0.80% Aggregate Cash Aggregate Cash Income 3 % Fixed 5 Contribution to Excess Return Global c o Global Income Commodities Commodities_ 69 a \ Top three detractors from excess return 6% t 6% r Global Listed . Real Estate Global Listed Global Equity 5� Real Estate ,. y dy4; REITs underweight -0.1% 3% Globe Infrasti Global 5� Infrastruciure�` Commodities Neutral O.o% � 5% Emerging -J � Markets Australia Underweight 0.0% 3 % Regional -0.80% -0.60% -0.40% -0.20% OT D(1%: - Small Cap J i 2 °6 ■ Contribution to Excess Return US Large Global ex- Cap Equities 8% 13% 3 Positioning strategies - customized exposures directly managed by Russell for use within the total portfolio to effect the funds' investment strategies and /or to modify overall portfolio characteristics to seek to achieve the desired risk/return profile. ^Strategic allocations may vary based on tactical allocations made by the portfolio manager, which may allow the weightings of each asset class to take advantage of potential opportunities as market and economic conditions change. See next page for additional disclosures. p.16 'Source: FaclSet 52 Russell Investments t- 4Q2015 302015 $1.7513 $1.671 t Fund Russell Fund Russell I - -- World Cap _ - -. — World Cap 17.7 17.0 16.4 15.3 16.2 16.0 15.0 15.1 $90.03B $86.146 $81528 $79.008 Fund Barclays US I Fund Barclays US , Aggregate Aggregate 2.6 2.6 2.3 2.3 5.6 5.6 5.4 5.4 j Aa3 Aa2 Aa3 Aa2 Actual Asset Allocation as of 12/31/2015 0.00% 0.20% 0.40% 0.60% 0.80% Aggregate Cash Aggregate Cash Income 3 % Fixed 5 Contribution to Excess Return Global c o Global Income Commodities Commodities_ 69 a \ Top three detractors from excess return 6% t 6% r Global Listed . Real Estate Global Listed Global Equity 5� Real Estate ,. y dy4; REITs underweight -0.1% 3% Globe Infrasti Global 5� Infrastruciure�` Commodities Neutral O.o% � 5% Emerging -J � Markets Australia Underweight 0.0% 3 % Regional -0.80% -0.60% -0.40% -0.20% OT D(1%: - Small Cap J i 2 °6 ■ Contribution to Excess Return US Large Global ex- Cap Equities 8% 13% 3 Positioning strategies - customized exposures directly managed by Russell for use within the total portfolio to effect the funds' investment strategies and /or to modify overall portfolio characteristics to seek to achieve the desired risk/return profile. ^Strategic allocations may vary based on tactical allocations made by the portfolio manager, which may allow the weightings of each asset class to take advantage of potential opportunities as market and economic conditions change. See next page for additional disclosures. p.16 'Source: FaclSet 52 Russell Investments t- 1Q16 DATA NOT YET AVAILABLE RTC Multi -Asset Core Fund - period ending December 31, 2015 Global Equities Regional Exposure Sector Exposure US UK USD Index Return Japan - Canada 1 .5% EMEA ex UK -0.5 % Asia /Pacific Ex Japan 6.1% 6.1% Emerging _ 2.9% 0% 20% 40% ■ Russell Multi -Asset Core Fund - Global Equities Real AssetS Global Real Estate Exposure Self Storage 5 "" Retail 265" - Residentia 14% Local Index Return USD Index Return 5.8% 5.8% 4.4% 9.1% 1 .5% 8.4% -0.5 % -4.0% 6.1% 6.1% 8.2% 3.8% 2.9% 60% ■ Russell World Cap Index Utilities IIIIIIII Telecom �V IT Financials Health Care Cons. Staples Cons. Disc. Industrials Materials Energy 0°•° 5% 10% 15% 20% ■ Russell Multi -Asset Core Fund - Global Equities Global Infrastructure Exposure Other 14`, Highways & Railtracks 20" Diversified Raitroads 5 .._._ 29% 2.2% 6.0% Marine Ports &_. 6.7% services". 4.9% Gas Utilities 8.8% _ 5% lealth Care Airport 6 6% Services rial 4% 6.3 %a worts 1.5% -1.1% A4u1ti- Utilities 13 °.0. Local Index Return USD Index Return 3.1 2.2% 6.0% 4.9% 6.7% 6.5% 4.9% 4.0% 8.8% 8.1% 5.8 %n 4.9% 6.5% 5,6% 7.0% 6.3 %a 2.4% 1.5% -1.1% -2.5% 25°. o ■ Russell World Cap Index Commodities Exposure Livestock 4% Electric Utilities 17% Sorts 9% Oil & Gas Storage & Transportation 12° Precious ,.14% Metal 18% Grains 12% The Russell Multi -Asset Core Fund is a dynamic, diversified portfolio designed to capture market opportunities. The underlying allocations to various asset classes will shift over time, but the overall strategic allocation will remain 75% global equity/15 %, marketable real assets /10°/ U.S. fixed income. The Russell Multi -Asset Core Fund invests in underly funds of the Commin Employee Benefit Funds Trust and /or separate accounts managed by Russell Trust Company. Prior allocations available upon request Russell Multi -Asset Core Fund is an investment fund of the Russell Trust Company Commingled Employee Benefit Funds Trust. It is not a fund of Russell Investment Company, nor a mutual fund registered under the Investment Company Act of 1940. SSource: FactSot p G�li Russell Investments it ... v: ?o.. --.._...Offee92 % - --- .. RTC Multi -Asset Core Fund Asset class returns and average relative positioning 1 Q 2016 Asset Class Returns Average Relative Position Fund Return (- 0.15 %) - Benchmark Return (0.59 %) 10.0% -- - - - - -- -_. _ _ -___ .._ __._.- _ 8.5% -12.0% -14.0% 6.8% 6.4% 5.1% 4.8% 4.0% 2.5% 0 .1 %� L O A- %_, % -0.2% -0.6% .1 % -26% 8.0% -11.7% 6.0% CO tlJ -o U) N �_ o 5.2% N o. C CO O 14.0% N � N c m o Q Z) C 4.0% O 2.9% W 3.0% U Q W Y 2.0% 0.1 % 1.2% 0. %� O,rQ%,� 3 %� 0 ' O _ 4+11 0.0% % o Q 1% _ 1 o m C7 -2.0% -0.7% c .0 U -0.6 -1.6% -1.3% C L O re aI N W U -4.0% i -2.9% W -2.8% - 6.0% U U' Global Equities Real Assets Fixed Currencies -6.5 % -10.0% Income /Cash -12.0% -14.0% 6.8% 6.4% 5.1% 4.8% 4.0% 2.5% 0 .1 %� L O A- %_, % -0.2% -0.6% .1 % -26% t R a m 0 Average relative position is average of daily relative weights during the quarter. *Based on Russell Global Indices Local Market returns. * *MSCI Emerging Markets Currency Index. The Index weights each emerging market currency return vs. the dollar by its market cap in the MSCI Emerging Markets Index. All currency returns are spot returns vs. USD. Performance is gross of fees. Fees will reduce the overall performance of the fund. Indexes /benchmarks are unmanaged and cannot be invested in directly. Data is historical and is not indicative of future results. Russell Multi -Asset Composite Benchmark consists of 75% Russell World Cap Index 50% Hedged, 5.0% Bloomberg Commodities Index, 5.0% FTSE EPRA/NAREIT Developed Real Estate Index(Net), 5% S &P Global Infrastructure Index, 7% Barclays US Aggregate Bond Index and 3% Barclays US 1 -3 Month Treasury Bill Index. Russell Volatility Equivalent Benchmarks consists of 85% Russell World Cap Index 50% Hedged and 15% Barclays US Aggregate Bond Index. p.18 This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. D ;O Russell Investments -11.7% CO tlJ -o U) N �_ o f6 N o. C CO O N N � N c m o Q Z) C O W m U U Q W Y Cr Q m O o Q o m C7 c c .0 U Z) C L O L aI N W U W U U' Global Equities Real Assets Fixed Currencies Income /Cash t R a m 0 Average relative position is average of daily relative weights during the quarter. *Based on Russell Global Indices Local Market returns. * *MSCI Emerging Markets Currency Index. The Index weights each emerging market currency return vs. the dollar by its market cap in the MSCI Emerging Markets Index. All currency returns are spot returns vs. USD. Performance is gross of fees. Fees will reduce the overall performance of the fund. Indexes /benchmarks are unmanaged and cannot be invested in directly. Data is historical and is not indicative of future results. Russell Multi -Asset Composite Benchmark consists of 75% Russell World Cap Index 50% Hedged, 5.0% Bloomberg Commodities Index, 5.0% FTSE EPRA/NAREIT Developed Real Estate Index(Net), 5% S &P Global Infrastructure Index, 7% Barclays US Aggregate Bond Index and 3% Barclays US 1 -3 Month Treasury Bill Index. Russell Volatility Equivalent Benchmarks consists of 85% Russell World Cap Index 50% Hedged and 15% Barclays US Aggregate Bond Index. p.18 This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. D ;O Russell Investments Allocations and Advisors /Funds /Strategies are as of March 2016. Current data may be different. The Russell Multi -Asset Core Fund is a dynamic, diversified portfolio designed to capture market opportunities. The underlying allocations to various asset classes will shift overtime, but the overall strategic allocation will remain 75% global equity /15% marketable real assets /10% U.S. fixed income. This is a fund of the Russell Tru Company Commingled Employee Benefit Funds Trust it is not a mutual fund. Russell positioning strategies are customized exposures directly managed by Russell for use within the total portfolio and may include overlays, index replication, smart beta strategies, and custom quantitative strategies. 91 Russell Investments 2. RTC Multi -Asset Core Fund Asset allocation and advisor lineup as of March 31, 2016 RTC Multi -Asset Core Fund Developments and outlook —first quarter 2016 Fund Activity > JANUARY: Increased Europe exposure via risk - adjusted options strategy, closed underweight to CAD at 1.43, sold an additional 1 % REITs (now —3% underweight) and added to the Financials sector, added to the Energy sector by 75bps. > FEBRUARY: Added to risk via Emerging Markets options strategy near the lows towards the middle of the month, added to value advisor Kopernik, added to global equity exposure via futures. > MARCH: Neutralized risk and ended the quarter with beta of 0.99 -1.00. Fund Outlook & Positioning > Now neutral on risk with beta around 0.99 -1.00. > Quantitative easing and earnings improvement could lead to structural changes Europe resulting in potentially superior relative returns for equity investors; overweight Europe vs. US and commodity producing countries like Australia & Canada. > After several years of outperformance, valuations appear extended in the US and earnings have peaked. The US is now our largest underweight. > Underweight to commodities /energy sector /commodity countries has been accretive to portfolio. With recent extreme sell off, we have started to reduce the concentration of positions in this direction. > Rising interest rates, real estate valuations and turning sentiment from yield investors expected to lead to underperformance versus other real assets; continue to maintain our underweight. > The US dollar may be in a multi -year strengthening cycle, but currency volatility has increased sharply and the long USD trade has gotten very crowded; maintain our underweight to AUD (closed CAD underweight in 1 Q) but monitoring this position closely. Past performance is not indicative of future results. There is no guarantee that any stated expectations will occur. V /I.I Russell Investments p• This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. RTC Large Cap Defensive Equity Fund - period ending March 31, 2016 Strategy -- _ _ _ ' t - -- - - -- - - - - -- - -__- ._ _ ! Performance Annuahzed ' T Seeks higher long -term returns that exceed the Russell 1000 Defensive Index® by investing in common stocks that rank among the largest 1,000 companies in the U.S. stock market while maintaining volatility and diversification similar to the index over a full market cycle. (...__ t I Top 10 fund holdings t Fund % Index W Ap Inc. 2.95 4.27 _ Procter & Gamble Co. (The) 2.79 _ 2.09_ Johnson & Johnson 2.52 2.80 Pfiz Inc. 2.11 1.7 I nc. 2:04 1.91 _A lphabet, W e l ls Fargo Co. 2.0 2 _ Coc -Cola Co. (The) 1.72 1. Philip Morris International, Inc. 1.68 1.42 Ex Mobil Corp. 1. 3.26 H ome Depo Inc. 1.5 1.6 Total V �- _ 21.02 _ _ - 22.87 1 Source: BNY Mellon Asset Servicing except Total Net Assets. Sector weight!ngs & 1Q returns' ( ° Io) Fund advisor styles Target weightings % .'RTC Large Cap Defensive Eq oily Fund Return Market O riented 1 The top ten holdings list does not reflect the investment of cash Russell 10008 Defensive lydex® e reserves and cash collateral received in securities lending trans- I Advisor diversification actions in one or more of Russell Investment's money market funds. Consumer Discretionary � �- ! 393 z Source: BNY Mellon Asset Servicing t 1 1 Q greatest impact ( +) SA Over /under we ight % 1.06 Contribution to return % WU 0.09 � Vinci Acc enture PLC 1.09 0.08 Allergan, plc -0.50 0.07 Medtronic, PLC -0.52 0.05 Che C orp. 0.18 0.03 1 Over /under I Contribution ' 1Q greatest impact ( -) l weight % to return Pfizer, Inc 1.12 -0.09 Procter Gamb Co. (The) 1.60 -0.07 Amerisourc Corp. 0.90 -0.06 Dr Pepper Snapple Group, Inc. 0.44 - 0.04 Reynolds Ameri Inc. 0.62 - 0.04 1 Source: FactSet Consumer Staples Financial Servlces Health Care Materials and Processing Energy Producer Durables Technology Utilities 0 5 10 15 1 Source: BNY Mellon Asset Servicing j 5.94 1Q 2016 Year to date One year Th y ea rs Five years en years RTC Large Cap Defensive E Fund 2.66% 2 66 °% 1 4.74% r 12.14% 11.78% 6.5k. Rus sell 1000O lndeO(Llnked) 3.70 3.70 5.82 12.28 1131 707 1Q2016 I 4Q2015 j Characteristics' vase Russell 10001 Russell 1000 Fund Defensive Indexe Fund Defensive Inde)& Total Net A ssets $445.806 $10.71T $459.458 $16.47T _ P ortfolio P/E - I /B /E /S 1 yr. Forec EP 17.2 18.2 17.4 17.5 LT Growth Forecast I/B /E /S Medians 9.43% 10 .02% 9.12% 8.78% ® Pric e/Book Ratio 3.10 3.36 3.40 3.27_ $ We ighted Average Market Ca pitalization $132.54B $163.16B $134.47B $159.45B Portfolio Beta vs. Russell 3000 Inde 0.79 0 .76 0.80 0.77 Consumer Staples Financial Servlces Health Care Materials and Processing Energy Producer Durables Technology Utilities 0 5 10 15 1 Source: BNY Mellon Asset Servicing j 5.94 r- 0.63 9 i -128 ' 6.63 N M 7.59 E 5,95 Coho 2.60 vase 15.60 '. 20 Jacobslavy Russe01000 W nswrv° Ird- Rua -r Del ens i,. Equity Fund PanAg- JP Morgan RIMCo Market -0rlemed Growth Style 'Historical performance prior to July 2, 2012 is linked to the Russell 1000 Index. Advisors listed are current as of March 31, 2016. Russell Investments has the right to engage or terminate an advisor at any time and without notice. This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. Performance shown is gross of fees. Fees will reduce the overall performance of the fund. Indexes are unmanaged and cannot be invested in directly. Past performance is not indicative of future results. p.21 Gil Russell Investments _- 1Q2016 402015 100 100 1 Q16 DATA NOT YET AVAILABLE RTC Multi- Manager Bond Fund - period ending Decernuer 31, 2 Strategy Quality distribution',* AAA Annualized - Index ( %) 72.5 - -_ -- - - -- -- -_ -_ -- Seeks favorable returns comparable to the broad fixed income Performance L_ ..__ _. _ 402015 Year to date One year Three years Five years Vince Lion to date' market investing t b t' ng In on s represent ing b d t' ng / d' verse sectors and d RTC Multi- Manager Bond Fund -0.75 % 0.54% 0.54% 2.09% I 4.13% 5.03% maturities. Barclay US Aggregate Bond Index -0.57 0.55 0.55 1.44 I 3.25 4.24 Unrated 1 Inception date 4/30103. The date shown represents the date the index comparison began and may not be the actual index inception date. 402015 302015 i Characteristics' Barclays US Aggregate ' Barclays US Aggregate' Total Net Asset $3.10B Current Yield 2.93% 1 2.55% Quality distribution',* AAA Fund ( %) 53.6 - Index ( %) 72.5 AA 4.2 3.7 A 11.8 10.6 BBB 19 .3 13.1 BB 3.7 0.0 B 1.8 0.0 CC & Below 3 .5 2.1 0.0 0.0 Unrated 402015 302015 i Characteristics' Barclays US Aggregate ' Barclays US Aggregate' Total Net Asset $3.10B Current Yield 2.93% 1 2.55% 31.3 2.67% 2.27% Weighted Average Yield to Maturity 3.2% 2.6% 2.6% 2.3% Weigh Ave Life 7.9 yrs. 5.9 yrs. 7.6 yrs. 5.5 yrs. 6.7 yrs. 5.3 yrs. 7.5 yrs. 5.4 yrs. Weighted Average Duration Average Q uality* A2 Aa2 A2 Aa2 _ _....... - .......- - -- - - --- - - - - -- - -- - -- - ____ - i Maturity distribution' �... Source: FactSet except for Total Net Assets 0 to 3 Years 31.3 53.4 3 to 5 Years 14.2 15.0 5 to 7 Years 14.9 9.2 7 to 10 Years 20.3 8.8 10 to 15 Years 2.9 1.5 15 to 20 Years 2.0 1.5 F to 25 Years 1.8 3 .4 Years 12.6 7.2 1 Source: FactSet Credit qualilty exposures and/or maturity distributions may not equal 100 percent as a result of the fund's use of certain financial instruments such as Futures, forwards, options, swaps and when issued transac- tions or forward commitments. In the event short positions are created, they may be reflected as negative weightings in sector allocations, cred- it quality exposures and /or maturity distributions. Sector weightings( %) Fund Index Developed GovernmeW 23.3 43.0 u Government - Related Investm Grade Credit 25.2 6.1 23.8 0.0 High Yield Commercial Mort Backed 5.7 1.8 R esidential Mortg Backed 16.8 28.6 Asset Backed 5.9 0.6 Emerging Markets Debt 4.5 2.1 Net Cash & Equivalents 12.5 0.0 Derivative 0.0 0.0 1 Sector Allocations may not equal 100 percent as a result of the fund's use of certain financial instruments such as futures, forwards, options, swaps and when issued transactions or forward commit- ments. In the event short positions are created, they may be reflected as negative weightings in sector allocations. 2 Source: FactSet and BNY Mellon Asset Servicing Fund advisor styles Target weightings %' • Fully discretionary 72.5 72.5 Alpha Overlay 14.0 14.0 • Sector Specialist 5.0 5.0 • Russell Strategies 6.0 6.0 Adv isor diversification I Russell Currency Overlay Strategy Western Asset Russell Absolute Return 5.3% / rvtanagerrent Fixed Income Fund Corryany(Bank Loan) 07% 1% Macro Currency Group Western Asset 8.0% �� •� Management Conpany Colchester Global Investors Lirrited- 21.0% _ Logan Circle Scout hvestment Inc.j Partners, L.P. 18.5% 21.0% r 1 Brookfield Investrrent Wellington Managenent ` Managenent lnc. Conpanay 4.0% 12.0% Advisors listed are current as of December 31, 2015. Russell has the right to engage or terminate an advisor at any time and without notice. - This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. Performance shown is gross of fees. Fees will reduce the overall performance of the Fund. Indexes are unmanaged and cannot be invested in directly. Past performance is not indicative of future results. *The sum of the debt instrument quality ratings is based upon the Barclays index methodology, which reflects the ratings of Moody's, Fitch and S &P in such a way that if three different ratings exist for the same instrument, the median rating is used: if two different ratings exist, the lower of the two is used and if only one rating exists, then that rating is used. If the debt instrument has not been rated by any of the three rating agencies, the security is classified as'Unrated." p.22 0 Russell Investments �= 1 Q16 DATA NOT YET AVAILABLE Russell Real Estate Equity Fund - period ending December 31, 2015 S trateg y - - - -- -- - - -- - - -- Employs a Multi- advisor, multi -fund investment approach ap- plied to private core and enhanced core real estate funds. Focus on high current income. Manage risk through property type / regional diversification and generally limit portfolio lever- age to 30%. 1 RTC- REEF's leverage of 22.0% at 12/31/2015 was within the general guideline limit of 30% and below the Benchmark leverage of 23.2 %. Property type composition - - Industrial 11.1% Retail 20.0% rtments 24.7% Self Storage 1.8% Other 1.1% Hotels 0.4% Office 40.9% Performance _ Annualized Thre Five 1 Ten I Rus sell Real E Equity Fund - - 402015 3.28 One y ear years years years 15. 56% 13.96% 14.64% 6.50% T NFI-0DCE -EQ 3.63 14.81 1 13.22 13.87 6. 1 NCREIF Fund Index Open -End Diversified Core Equity- Equal Weight (NFI- ODCE -EQ). Characteristics Total gross returns Target Market value Market value Three ! One i Core funds - weighting % $ Millions % of t otal months % year Morgan Stanley Prime Property Fund 20 -30 2.45.9 31.5 3.37 15.84 J.P. Morgan Strategic Property Fund 30 -35 236.3 30.3 3.39 15.24 INVESCO Core Real Estate - USA 15 -25 179.9 23.1 2.50 1 14.73 UBS Trumball Property Fund 20 -30 65.2 8.3 3.02 1 12.94 Benchmark total return breakout % ■ PACIFIC 37.1% ❑ MOUNTAIN 5.2% ■ WEST NORTH CENTRAL 1.2% M SOUTHWEST 12.1% EAST NORTH CEN I*RAL 6.4% ■ NORTHEAST 20.2% ❑ MIDEAST 9.4% N SOUTHEAST 8.4% Funds listed are current as of December 31, 2015. Russell has the right to engage or terminate a fund at any time and without notice. T his is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. Performance is shown gross of fees. Fees will reduce the overall performance of the fund. Indexes are unmanaged and cannot be invested in directly. Past performance is not indicative of future results. p.23 91 Russell Investments i Regional composition �Russell All Investments Appendix Absolute Return Fixed Income RIFLAbsolute Return Fixed Income Fund What is it? > A combination of liquid long -short strategies across global interest rates, credit and currency, where manager skill tends to drive total returns rather than systemic benchmark risks. > Return and risk are designed to be a core fixed income substitute with bond -like volatility and mid single -digit returns over the long term. Benefits > Seeks to deliver positive returns independent of the market cycle. > Flexible strategy not tied to a benchmark. > Broad investment universe creates more opportunity. > Focus is on downside protection. > Liquid strategy. > Broad diversifier to equities and bonds. 'The Russell Absolute Return Fixed Income Fund is not a mutual fund, but is a fund of the Russell Institutional Funds, LLC; it is a private placeme p.25 5#1 Russell Investments 1 Q16 DATA NOT YET AVAILABLE RIFL Absolute Return Fixed Income Fund - period ending December 31, 2015 Strategy - - -_ Seeks to outperform the 3 Month LIBOR Constrained Index 1 (USD Hedged) over an interest rate cycle. Quality Distribution' Fund ( %) ' Index ( %1 AAA 67.8 100.0 AA 2.3 0.0 A 4.9 0.0 BBB 16.8 0.0 BB 3.8 0.0 B 3.2 0.0 CCC & Below -0.0 0.0 Unrated 1.2 0.0 1 Source: FactSet 3Q Currency Exposure ( +) p USD 22.82 JPY 11.40 CAD _- 4.87 NZD - I I 3.00 IL _ ( 1.96 R(3 r nrranr•_v Fynncnral !.1 -- - - - - KRW -3.96 G BP -4.32 TRY -4.55 -5.97 EUR AUD -12.46 1 Source:FactSet Performance - -- - - -- �- _. - -- - Annuallzed _ Inception 402015 Year to date One year Three years . Five years _ to date' L IFL Absolut Return Fix ed IncomFu 1.47% 2.38 % 2.38 % -% /0 1.81 % arcla 3 Month U SD LIBO Cash Index 0.10 0.32 0.32 0.28 1 Inception 03/31/14. The date shown represents the date the index comparison began and may not be the actual index inception date. 2 Source: Barclays 3 Month USD LIBOR Cash Index, used with permission. Barclays 3 Month USD LIBOR Cash Index is licensing the Barclays 3 Month USD LIBOR Cash Index Indices "as is ", makes no warranties regarding same, does not guarantee the quality, accuracy, and/or com- pleteness of the Barclays 3 Month LSD LIBOR Cash Index Indices or any data included therein or derived therefrom, and assumes no liability in connection with their use. _ ..- -- ' 402015 � T � - -- 302015 ' Characteristics' Barclays 3 Month USD Barclays 3 Month USD Fund LIBOR Cash Index Fund LIBOR Cash Index Total Net Assets $177.27M r $149.98T v $172.85M $149.83T Weighted Average Yield to Maturity 1.09% 0.61 1.17% 1 0.33% Weighted Average Duration 0.84 0.25 1.61 0.25 Average Qu ality' BAA2 AAA Aa3 AA I source: FactSet j Sector Weightings ( %),' Cash 64.05 Corporate High Yield 4.83 Corporate Investment Grade 9.31 Fx/Rates 0.20 Gove rnment Government Related 6.14 5.55 Securitiz 1.11 8.79 Other 1 The Other sector includes pooled investment vehicles, certain deriv- atives, stocks and other investments not falling within one of the other listed sectors. Fund Manager Styles Target Weightings % 402015 302015 - Currency 1 55 55 R Multistrat 45 45 Manager Diversification Vanro R. Ssel vune' zj, Investmerts Group Fay 50it Btue Bay Investment Grade Absolute Return Bond Investment Fund Managers listed are current as of December 31, 2015. Russell has the right to engage or terminate a manager at any time and without notice. This is a fund of Russell Institutional Funds, LLC; it is a private placement. It is not a mutual fund or a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust. Performance is shown gross of fees. Fees will reduce the overall performance of the Fund. Indexes are unmanaged and cannot be invested in directly. Past performance is not indicative of future results. "The sum of the debt instrument quality ratings is based upon the Barclays index methodology, which reflects the ratings of Moody's, Fitch and S &P in such a way that if three different ratings exist for the same instrument, the median rating is used: if two different ratings exist, the lower of the two is used and if only one rating exists, then that rating is used. If the debt instrument has not been rated by any of the three rating agencies, the security is classified as'Unrated.' p.26 O Russell Investments = Burgess Chambers &Associates, Inc, Institutional Investment Advisors unvw. burgesschambers. com March 31, 2oi 6 Boynton Beach Police Pension Fund Investment Performance Period Ending March 31, 2016 The following investment information was prepared by BCA, relying upon data from statements provided by the plan custodian and /or investment manager s). BCA reviews transactions provided by the custodian and uses reasonable care to ensure the accuracy of the data contained herein. FW7 However, BCA cannot guarantee the accuracy of the custodian's statement Boynton Beach Police Pension Fund BCA Market Perspective Interest Rates and Banks Burgess Chambers and Larry Cole April 2016 One of the most volatile sectors in our economy over the past several years has been the financial sector led by the major banks. Much of this volatility has been due to historically low interest rates and speculation on when the Fed would begin raising rates. As noted in a Wall Street Journal article (9/21/15), this unusually long period of low rates has compressed earnings margins at banks by more than 27% since 2010. Low interest rates can be both positive and negative for banks. On the positive side, it allows the banks to pay much less to their customers for their deposits. On the negative side, the banks get paid a lower rate on their loans. In simple terms, banks make money on the difference (or spread) between the rate they pay on deposits and the rate they receive from loans. Typically, banks can make a larger spread in a higher rate environment. And if longer term (lending) rates increase faster than shorter term (deposit rates), the banks should have an even wider spread. However, rising rates are not automatically good for banks. As mentioned above, banks normally pay their customers based on short term rates and lend the money at longer term rates. If short term rates rise significantly more than long term rates, you would see a flattening of the yield curve and pressure on the spread. A "steep" yield curve is when short term rates are significantly lower than long term rates. This is an attractive environment for banks. But rising short term rates with little or no rise in longer term rates could result in lower spreads and banks less willing to lend. vela % Steep Normal Flat Inverted 3 5 10 Term to Maturity (Years) Complicating this simple analysis of bank profiability is the fact that many larger banks rely less on the loan spread as a.source of revenue than they have in the past. They have numerous sources of revenue, many of which are not sensitive to interest rate movements. Knowing how each bank is impacted in various interest rate scenarios will make stock selction critical in this significant sector of the market. Disclosure: All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. Content should not be regarded as a complete analysis of the subjects discussed or as personalized investment advice. All investment strategies have the potential for profit or loss. References to market performance in publications do not represent the returns achieved by Burgess Chambers & Associates or any of its advisory clients. Quarterly Market Summary March 31, 2016 12.0 8.3 6.0 5.8 fl, 5.9 6.3 3.0 3.4n a? 1.3 1.7 1.5 E - - - 1 - - -y - , - - - 0.4 d I -2.9 -2.5 -6.0 . 1 6.4 -5.6 -12 > J O \Ca �� u �Ca NILa 00 � �� C ~ w �Q 4� a`tv Q �u 1 tea` v °a Q °' o� o 5 y d 4 4�- C3 a J a g aF ,) O S g � m �\ Source; Investment Metrics, LLC US Market Indices Performance 12.0 6.0 3.9 3.5 1.3 2.2 2.2 r° 1.7 0.0 -0.3 .� -3.4 ' s -6.0 -4.7 i 77 -9.8 -12.0 -11.8 -18.0 1 1 Quarter Year S &P 500 S &P 500 Growth S &P 500 Value Russell Midcap Index _� Russell Midcap Growth Index Russell Midcap Value Index ® Russell 2000 Index Russell 2000 Growth Index Russell 2000 Value Index Source: Investment Metrics, LLC US Market Sector Performance 30.0 16.8 18.7 1s.0 .16.0 15 0 11.4 - 6.7 8.1 5.6 - 1.6 4.0 5.0 2.5 3.6 3.2 - a o-.o -15 -0 155 .30.0 1 1 Quarter Year S &P 500 Consumer oi§cretionary S&P 500 Consumer staples 77 5 &P 500 Energy S &P 500 Financials S &P 500 Health Care ■ S &P 5001ndustrials S &P 500 Information Technology - S &P 500 Materials 7. 5 &P 500Telecom Services S &P 500 Utilities Source: Investment Metrics, LLC Copyright © 2016 In L_ `a Quarterly Market Summary March 31, 2016 Fixed Income Market Sector Performance 8.0 4 r 9.0 3.2 2.0 00 `a A.0 -8.0 3.9 2.0 1.4 2.0 2.4 2.4 11 1.9 1.7 7': itl 0.9 I 4.6 4.4 3.7 Barclays U.S. Aggregate __. Barclays U.S. ABS 1 Quarter Barclays U.S. Treasury ® Barclays U.S. Corp: Nigh Yield Barclays U.S. Agency Barclays Global Aggregate I Year Barclays U.S. Credit Index JPM EMBI Global (USD) u Barclays U.S. MBS Source: Investment Metrics, LLC Intl Equity Indices Performance 16.0 8.0 0.0 -16.0 -24.0 5.9 F 5.2 3A Intl Equity Region Performance 8.0 4.0 1.8 �- 0.0 a:D 9 x 6.4 •8.p -]29 -16.0 1 Quarter MSCI1apan ® MSCIPacPlicexlapan Source: Investment Metrics, LLC -7.6 - -8.8 •9.5 1 Year MSCI United Kingdom MSCI Europe ex U.K. Source: Investment Metrics, LLC Copyright (c) 2016 In I= 1 ] Quarter Year MSG SAFE Index MSG EME Small Cap Index _ MSCI EAFE Growth Index MSLI SAFE Value � MSCI Emerging Markets Boynton Beach Police Pension Fund Total Fund Investment Summary March 31, 2016 • Global equity markets sold -off sharply in January and early February amid plunging oil prices and stress in credit markets. The same concerns abated in late February and March, while oil prices seemed to have found a bottom at approximately $26 per barrel. Broad U.S. markets recovered their losses, whereas developed markets, particularly Japan suffered. It was a quarter when defensive stocks outperformed, as the best performing sectors of the S &P index were: telecom ( +16.6 %) and utilities ( +15.6 %) • For the quarter, the Fund experienced an investment gain of 4 -1.7% gross (or +1.5% net; +$1.4 million), in line with the Policy Benchmark ( +1.8 %). The best performing asset category was the Multi- Manager Bond fund ( +3.4 %). • For the fiscal year -to -date, the Fund earned $3.8 million or +4.9% gross (- I-4.6% net). This exceeded the Policy Benchmark by approximately 0.1% and ranked in the top 14th percentile. • The best performing asset category for the fiscal year -to -date was the Russell Large Cap Defensive Equity Fund ( +9.3 %). • For the three -year period, the Fund earned $15.4 million or +6.9% • For the five -year period, the Fund earned $24.5 million or +7.1% 4 Boynton Beach Police Pension Fund Total Fund Investment Policy Review March 31, 2016 Yes No The Total Fund's annualized three -year performance achieved the Policy Benchmark. ® ❑ The Total Fund's annualized three -year performance ranked in the top 40th percentile of the universe. ® ❑ The Total Fund's annualized five -year performance achieved the Policy Benchmark. ® ❑ The Total Fund's annualized five -year performance ranked in the top 40th percentile of the universe. ® ❑ The Total Fund's annualized three -year performance achieved the +7.75% actuarial assumption rate (Actual: +6.9 %). ❑ The Total Fund's annualized five -year performance achieved the +7.75% actuarial assumption rate (Actual: +7.1 %). ❑ Multi Asset Core annualized three -year performance achieved the multi -asset benchmark. ® ❑ Multi Mgr Bonds annualized three -year performance achieved the fixed income benchmark. ® ❑ Multi Mgr Bonds annualized three -year performance ranked in the top 40th percentile of the universe. ® ❑ Multi Mgr Bonds annualized five -year performance achieved the fixed income benchmark. ® ❑ Multi Mgr Bonds annualized five -year performance ranked in the top 40th percentile of the universe. ® ❑ Real Estate Equity's annualized three -year performance achieved the real estate benchmark. ® ❑ Real Estate Equity's annualized five -year performance achieved the real estate benchmark. ® ❑ PFIA Compliant ® ❑ Investments in equity securities were 56.4% which did not exceed 70% of Fund's assets at market value. ® ❑ Foreign equity investments were 19.4% (at market) and did not exceed the 25% of the total Fund's assets at market. ® ❑ Asset allocation among fixed income was 30.3% (at market) within the 30% minimum limitation. ® ❑ Asset allocation among alternatives was 12.9% (at market) within the 20% maximum limitation. ® ❑ Boynton Beach Police Pension Fund Investment Performance - Net March 31, 2016 6 [-E:l Q uarter Fiscal Year One Year Three Year Five Years Beginning Market Value 83,370,726 78,037,731 82,350,304 68,320,578 55,544,988 Contributions - 1,310,406 1,640,400 - 186,523 - 241,847 3,362,259 Gain /Loss 1,389,720 3,771,910 1,286,259 15,371,309 24,542,793 Ending Market Value 83,450,040 83,450,040 83,450,040 83,450,040 83,450,040 Total Fund ( %) 1.5 4.6 1.0 6.1 6.3 Policy Benchmark ( %) 1.8 4.8 0.0 5.3 6.4 6 [-E:l Boynton Beach Police Pension Fund Total Fund March 31, 2016 Actual vs. Target Asset Allocation 1.95% 2.08% = UL . ; . 1 A 0.5% F. Global Equities 0 Fixed Income Global REIT Global Listed Infrastructure Commodities Private Real estate Cash 2.0% ® Global Equities ® Fixed Income Global REIT Global Listed Infrastructure Commodities Private Real estate Cash Total International =19.4% (This calculation includes foreign equity, REIT, listed infrastructure, and fixed income) Note: For illustrative purposes only. 7 2.0%-\ � 5.0% r MV ($) Current Target Difference Global Equities $ 47,049,601 56.49/o 55.0% 1.49/o Fixed Income $ 25,259,156 30.3% 32.0% -1.7% Global REIT $ 954,621 1.149/o 2.0% -0.9% Global Listed Infrastruch $ 1,739,074 2.08% 2.0% 0.1% Commodities $ 1,624,737 1.95% 2.0% -0.1% Private Real estate $ 6,418,948 7.69% 5.0% 2.7% Cash $ 403,902 0.5% 2.0% -1.5% Total 83,450,040 100.0'% 100.0.0 0.0% Total International =19.4% (This calculation includes foreign equity, REIT, listed infrastructure, and fixed income) Note: For illustrative purposes only. 7 2.0%-\ � 5.0% r Boynton Beach Police Pension Fund Asset Allocation March 31, 2016: 83,450,040 Russell ST Inv Cash Sweep (CF) 0.45% Russell Real Estate Equity (CF) 7.80% Russell Large Cap Defensive Equity (CF) 25.86% Russell Multi- Manager Bond (CF) 27.41 % F9 Russell Multi -Asset Core (CF) Russell Multi- Manager Bond (CF) n Russell Large Cap Defensive Equity (CF) 7 Russell Real Estate Equity (CF) Russell ST Inv Cash Sweep (CF) Market Value $ 32,114,690 22,869,754 21,576,452 6,512,047 377,098 Russell Multi -Asset Core (CF) 38.48% Alloc M 38.48 27.41 25.86 7.80 0.45 IaC.'� Boynton Beach Police Pension Fund Asset Allocation & Performance March 31, 2016 1 Policy Benchmark (IPS hybrid benchmark objective): March '14 30% MSCI ACWI + 25% Russell 1000 + 32% BC Aggregate + 2% NAREIT + 2% S &P Global Infrastructure Index + 5% NFI ODCE EQ + 2% DJ UBS Commodities + 2% ML 3M T- Bills; prior from May'l3 48% MSCI ACWI + 35% BC Aggregate + 5% NAREIT + 5% NFI ODCE EQ + 5% DJ UBS Commodities + 2% ML 3M T- Bills; Mar'12 is 34% Russell 1000 + 11% Russell Mid -Cap + 11% MSCI Net EAFE + 4% MSCI Net EM + 5% FTSE / NAREIT + 30% BC Aggregate + 5% BC TIPS; from Sep'09 was 34% Russell 1000 + 11 % Russell Mid -Cap+ 11 % MSCI Net EAFE + 4% MSCI Net EM + 5% Wilshire REIT + 30% BC Aggregate + 5% BC TIPS; from May'05 was 34% Russell 1000 + 16% Russell Mid -Cap+ 10% MSCI Net SAFE +5% Wilshire REIT + 30% LB Interm Aggregate + 5% Lehman Interm TIPS; from Jul'02 was 60% S &P 500 + 35 LB Gov't/Credit. 2 The Multi -Asset Core Composite Benchmark: 75.0% Russell World Cap 50% Hedged Net Index / 7.5% Dow Jones UBS Commodity Index 17.5% FTSE EPRA/NAREIT Developed Real Estate Index (Net) / 7.0% Barclays U.S. Aggregate Bond Index / 3.0% Barclays U.S. 1 -3 Month Treasury Bill Index. This benchmark is appropriate for evaluating the Russell Multi -Asset Core Fund over a 3 to 5 year horizon. 3 Fixed Income Benchmark (IPS fixed income hybrid): Sep'09 is 100% BC Aggregate; from May05 was 100% LB Intermediate Aggregate; from Jun'02 was 100% Lehman Gov't/Credit. 4 Real Estate Benchmark: from Sept'09 is 100% NFI ODCE EQ; prior was 100% NCREIF. IBC. QTD FYTD 1 Year 3 Year 5 Year Market Value ROR - Rank ROR - Rank ROR - Rank ROR - Rank ROR - Rank I: Policy Benchmark 1.8 4.8 0.0 5.3 6.4 Russell Large Cap Defensive Equity (CF) 21,576,452 2.7 9.3 4.7 N/A N/A Russell 1000 Index 1.2 7.7 0.5 11.5 11.4 Russell Multi -Asset Core (CF) 32,114,690 -0.1 3.7 -2.7 6.0 N/A Multi -Asset Core Composite Index 0.6 4.1 -4.5 4.8 N/A Russell Multi- Manager Bond (CF) 22,869,754 3.4 (19) 2.7 (27) 2.0 (30) 3.1 (28) 4.6 (38) Fixed Income Benchmark 3.0 2.4 2.0 2.5 3.8 Russell ST Inv Cash Sweep (CF) 377,098 0.0 0.1 0.1 0.0 0.1 BofA Merrill Lynch 3 Month U.S. T -Bill 0.1 0.1 0.1 0.1 0.1 Russell Real Estate Equity (CF) 6,512,047 1.8 4.8 12.9 13.8 13.6 Real Estate Benchmark 2.5 6.0 14.2 13.6 13.2 1 Policy Benchmark (IPS hybrid benchmark objective): March '14 30% MSCI ACWI + 25% Russell 1000 + 32% BC Aggregate + 2% NAREIT + 2% S &P Global Infrastructure Index + 5% NFI ODCE EQ + 2% DJ UBS Commodities + 2% ML 3M T- Bills; prior from May'l3 48% MSCI ACWI + 35% BC Aggregate + 5% NAREIT + 5% NFI ODCE EQ + 5% DJ UBS Commodities + 2% ML 3M T- Bills; Mar'12 is 34% Russell 1000 + 11% Russell Mid -Cap + 11% MSCI Net EAFE + 4% MSCI Net EM + 5% FTSE / NAREIT + 30% BC Aggregate + 5% BC TIPS; from Sep'09 was 34% Russell 1000 + 11 % Russell Mid -Cap+ 11 % MSCI Net EAFE + 4% MSCI Net EM + 5% Wilshire REIT + 30% BC Aggregate + 5% BC TIPS; from May'05 was 34% Russell 1000 + 16% Russell Mid -Cap+ 10% MSCI Net SAFE +5% Wilshire REIT + 30% LB Interm Aggregate + 5% Lehman Interm TIPS; from Jul'02 was 60% S &P 500 + 35 LB Gov't/Credit. 2 The Multi -Asset Core Composite Benchmark: 75.0% Russell World Cap 50% Hedged Net Index / 7.5% Dow Jones UBS Commodity Index 17.5% FTSE EPRA/NAREIT Developed Real Estate Index (Net) / 7.0% Barclays U.S. Aggregate Bond Index / 3.0% Barclays U.S. 1 -3 Month Treasury Bill Index. This benchmark is appropriate for evaluating the Russell Multi -Asset Core Fund over a 3 to 5 year horizon. 3 Fixed Income Benchmark (IPS fixed income hybrid): Sep'09 is 100% BC Aggregate; from May05 was 100% LB Intermediate Aggregate; from Jun'02 was 100% Lehman Gov't/Credit. 4 Real Estate Benchmark: from Sept'09 is 100% NFI ODCE EQ; prior was 100% NCREIF. IBC. MKIN Boynton Beach Police Pension Fund Peer Universe Quartile Ranking March 31, 2016 IO 5.0 L a 2.0 a i • v ER,' 5[17 -7.0 o v �; I O Total Fund V Policy Benchmark 5th Percentile 1st Quartile Median 3rd Quartile 95th Percentile Parentheses contain percentile rankings. Calculation based on quarterly data. Quarter Fiscal Year One Yea Three Years Five Years 1.7 (13) 4.9 (14) 1.7 (1) 6.9 (22) 7.1 (27) 1.8 (11) 4.8 (15) 0.0 (15) 5.3 (76) 6.4 (49) 2.2 5.3 0.7 7.8 7.9 1.4 4.5 -0.5 6.8 7.1 0.9 3.8 -1.5 6.1 6.4 0.4 3.2 -2.6 5.3 5.8 -0.4 2.2 -4.1 3.8 4.8 10 - -_ Boynton Beach Police Pension Fund Growth of Investments April 1, 2011 Through March 31, 2016 $96.0 $90.0 $$4.0 $78.0 a $72.0 CD 7 m m $66.0 Y L 2 $60.0 $54.0 $48.0 $42.0 — 3/11 6/11 9/11 12/11 3112 6/12 9112 12/12 3113 6/13 9/13 12/13 3/14 6/14 9114 12/14 3/15 6/15 9/15 12/15 3/16 Total Fund Net Cash Flow Beginning M Ending M Annualized ROR $55,544 $83,450,040 7.1 if I� Boynton Beach Police Pension Fund Capital Market Line Period Ending March 31, 2016 5 Years Risk/Reward 7771 5 Years Statistics 20 18 15 12 9 6 3 0 O Total Fund Q Return Standard Deviation Beta Alpha © Policy Benchmark Total Fund 7.08 7.96 0.99 0.70 0 Policy Benchmark Policy Benchmark 6.44 7.91 1.00 0.00 o Russell 1000 Index Policy Benchmark 5.27 4.91 1.00 0.00 Russell 1000 Ind. Russell 1000 Index 11.35 12.77 1.54 1.55 0 Russell Midcap Index Russell 1000 Index 11.52 8.13 1.42 3.94 A & Russell Midcap Index Russell Midcap Index 10.30 14.57 1.79 -0.77 ® Russell 2000 Index Russell Midcap Index 10.45 8.72 1.62 1.92 Q Russell 2000 Index Russell 2000 Index 7.20 17.32 2.02 -4.70 0 ML All Conv Ex.144A Are Index ML All Conv Ex.144A AQ Index 6.24 10.15 1.19 -1.26 MSCI EAFE Index 2.76 14.41 1.61 -6.67 ° MSCI EAFE Index Barclays Aggregate Index 3.78 2.94 -0.09 4.46 0 2 4 6 8 10 12 14 16 18 20 0 Barclays Aggregate Index Risk (Standard Deviation %) 3 Years rf 20 - 18 15 12 9 6 3 0 0 Q Return 0 z Alpha - Total Fund Return Standard Beta Alpha Deviation 0 Policy Benchmark Total Fund 6.91 4.34 0.84 2.40 Policy Benchmark 5.27 4.91 1.00 0.00 Russell 1000 Ind. Russell 1000 Index 11.52 8.13 1.42 3.94 A & Russell Midcap Index Russell Midcap Index 10.45 8.72 1.62 1.92 Q Russell 2000 Index Russell 2000 Index 6.84 12.62 2.01 -3.12 ML All Conv Ex.144A Aa Index ML All Conv Ex.144A AQ Index 6.77 7.21 1.25 0.27 MSCI EAFE Index 2.68 11.35 1.90 -6.60 m MSCI EAFE Index Barclays Aggregate Index 2.50 3.07 0.17 1.65 0 2 4 6 8 10 12 14 16 18 20 Barclays Aggregate Index Risk (Standard Deviation %) 12 I. r Boynton Beach Police Pension Fund Fiscal Year Rates of Return March 31, 2016 3i 2 21 1'. U IR Cr o m w ir -5 -10 -15 -20 -25 18.47 11.01 11.74 0 2.33 0.29 0.25 -15.12 11.83 - - ._.7.85 - m FYTD FY FY FY FY FY FY FY FY FY FY FY 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 13 1 IIiJ Boynton Beach Police Pension Fund Total Fund March 31, • 5 Years Rolling Percentile Ranking - 5 Years e Growth of a Dollar 00 1 60 . 00 25.0 x c m D: E 50.0 75.0 100.0 • • • • • • 00 6111 12111 6112 12112 6/13 12113 6114 12114 6/15 3116 ■ Periods 5-25 25 - 50 50-75 75-95 1 J • Total Fund 20 0 (0 %) 10 (50 %) 10 (50 %) so:oo 0 (0 %) " u q Policy Benchmark 20 1 (5 °k) 13 (65%) 6 (30 %) 3111 9111 3/12 9112 3,13 9113 3114 9114 3115 9115 3116 0 (0 %) Ro lling 3 Years 0.0 25.0 Y c m E 50.0 75.0 100.0 140.00 Q D a! 120.00 0 a 100.00 r3 7.25 7.00 6 7S 5 50 6.25 0 80.00 7.80 8.00 8.20 8.4 n 8.60 Risk (Standard Deviation %) 6111 12111 6112 12/12 6113 12113 6114 12/14 6/15 3/16 Return Standard Deviation Periods 5-25 25 - 50 50-75 75-95 O Total Fund 7.08 7.96 0 Total Fund 20 6 (30 %) 5 (25 %) 8 (40 %) 1 (5%) v Policy Benchmark 6.44 7.91 Policy Benchmark 20 6 (30 %) 4 (20 %) 5 (25 %) 5 (25%) - Median 6.40 8.39 Historical Statistics - 5 Years Standard Sharpe Down Up Return Standard Alpha Beta Ratio Market Market Capture Capture Total Fund 7.08 7.96 0.70 0.99 `0,90 92.46 103.35 Policy Benchmark 6.44 7.91 0.00 1.00 0.83 100.00 100.00 Historical Statistics - 3 Years Standard Sharpe Down U Return Deviaton Alpha Beta Ratio Market Market _ Capture Capture Total Fund 6.91 4.34 2.40 0.84 1.56 56.83 107.77 Policy Benchmark 527 4. 91 0.00 1,00 1.06 100.00 100.00 14 �� ,, 7.80 8.00 8.20 8.4 n 8.60 Risk (Standard Deviation %) 6111 12111 6112 12/12 6113 12113 6114 12/14 6/15 3/16 Return Standard Deviation Periods 5-25 25 - 50 50-75 75-95 O Total Fund 7.08 7.96 0 Total Fund 20 6 (30 %) 5 (25 %) 8 (40 %) 1 (5%) v Policy Benchmark 6.44 7.91 Policy Benchmark 20 6 (30 %) 4 (20 %) 5 (25 %) 5 (25%) - Median 6.40 8.39 Historical Statistics - 5 Years Standard Sharpe Down Up Return Standard Alpha Beta Ratio Market Market Capture Capture Total Fund 7.08 7.96 0.70 0.99 `0,90 92.46 103.35 Policy Benchmark 6.44 7.91 0.00 1.00 0.83 100.00 100.00 Historical Statistics - 3 Years Standard Sharpe Down U Return Deviaton Alpha Beta Ratio Market Market _ Capture Capture Total Fund 6.91 4.34 2.40 0.84 1.56 56.83 107.77 Policy Benchmark 527 4. 91 0.00 1,00 1.06 100.00 100.00 14 �� Boynton Beach Police Pension Fund Russell Large Cap Defensive Equity (CF) March 31, 2016 1 Year Polling Percenfile Ranking - 5 Years Growth of a Doflar 0.0 25.0 Y Ir E 50.0 cr 75.0 100.0 • 6111 12/11 6112 12112 6113 12113 6/14 12J14 6/15 3116 I Periods 5-25 25 - 50 50-75 75-95 s0.0o 0 Russell Large Cap Defensive Equity (CF) 7 1 (14 °k; 3 (43%; 3 (43% 0 (0 %) ° u - - � -~ �•' Russell 1000 Index 20 0(0%) 13 (65 %; 7 (35 %; 0 (0 %) 8/13 11113 2J14 5/14 8114 11114 215 5/15 8/15 11/15 3116 Quarter 130111 g--Percentlle Rankin P ear G RiskJRewa Fd Ye 0.0 25.0 E 50.0 75.0 100.0 150.00 135.00 O O W G 120.00 O 105.00 6.00 4.00 5 2.00 ° 0.00 -2.00 N 11.05 11.70 12.35 13.00 13.65 14.30 14.95 Rbk (Standard Deviation %) 6111 12J11 6/12 12112 6113 12J13 6114 12/14 W15 3116 Return Standard Deviation Periods 5-25 25 - 50 50-75 75-95 & Russell Large Cap Defensive Equity (CF) 4.75 11.67 O Russell Large Cap Defensive Equity (CF) I t 2 (20 %; 4 (40 %; 3 (30 %; 1 (10 %; 0 Russell 1000 Index 0.50 14.12 Russell 1000 Index 20 0(0%) 11 (55 %; 9 (45 %; 0(0%) - Median -0.65 14.22 Retum N 11.05 11.70 12.35 13.00 13.65 14.30 14.95 Rbk (Standard Deviation %) 6111 12J11 6/12 12112 6113 12J13 6114 12/14 W15 3116 Return Standard Deviation Periods 5-25 25 - 50 50-75 75-95 & Russell Large Cap Defensive Equity (CF) 4.75 11.67 O Russell Large Cap Defensive Equity (CF) 10 2 (20 %; 4 (40 %; 3 (30 %; 1 (10 %; 0 Russell 1000 Index 0.50 14.12 Russell 1000 Index 20 0(0%) 11 (55 %; 9 (45 %; 0(0%) - Median -0.65 14.22 Retum Standard Deviation Historical Statistics - 1 Year Alpha Beta Sharpe Down Market up Market _ Ratio Capture Capture Russell Large Cap Defensive Equity (CF) 4.75 11.67 4.19 _ 0.81 0.45 68.51 90.75 Russell 1000 Index 14.12 0.00 0.10 100.00 iOU.00 Hist pOcal Q uarter Return Sta Alpha Beta Sharpe Ratio Down Market U Market Capture Capture Russell Large Cap Defensive Equity (CF) 2.67 3.63 0.58 _ 0.71 0.26 54.89 83.40 Russell 1000 Index 1.17 5.06 0.00 p. ark 0.10 100.00 100.00 is �' Boynton Beach Police Pension Fund Russell Multi -Asset Core (CF) March 31, 2016 '* D. 0.0 25.0 Y C N E 50.0 75.0 100.0 160.00 140.00 O Q c 120.00 t� 100.00 6111 12J11 6112 12112 6113 12/13 6/14 12114 6/15 3/16 Periods 5-25 25 - 50 50-75 75-95 80.00 Q Russell Multi -Asset Core (CF) 3 0 (0 %) 3 0 (0 %) 0 (0 °k) 0.44 5.98 `a 5.06 Cr 4.60 414 ° Multl -Asset Core Composite Index 3 0 (0 %) 0(0%) 3(100% 0 (0 %) 7112 1/13 7/13 1/14 7114 1/15 7/15 3/16 1 Year Rolling Percentile Ranking - 5 Years Peer Group Risk/Reward - 3 Years 0.0 25.0 c W E 50.0 m o! 75.0 1000 1 1 �; ..-- n.-w...+ra,.�. -�e ,: - /.•: � R' � r. ,.n:ssme+e�lw 4 V i ii 7.50 7.80 8.10 8.40 8.70 9.00 9.30 9.60 9.90 Risk (Standard Deviation %) 6111 12111 6/12 12/12 6113 12113 6114 1 ?114 6/15 3/16 Return Standard Deviation Periods 5-25 25 - 50 50-75 75-95 ® Russell Multi -Asset Core (CF) 6.02 9.05 ® Russell Multi -Asset Core (CF) 11 3(27%) 6(55%) 2(18%) 0(0%) 0 Mufti -Asset Core Composite Index 4.83 9.50 Multi -Asset Core Composite Index 11 0(0%) 5(45%) 3(27%) 3(27%) - Median 5.46 8.08 Return Standard Hist Alpha Beta Sharpe Down Market Up Market Deviation ai _ _ Capture Capture Russell Multi -Asset Core (CF) 6.02 9.05 1.38 0.95 0.69 91.44 101.01 Multi Asset Core Composite Index 4.83 950 0.00 1.00 0.54 100.00 100.00 Return HIst Alpha Beta Sharpe Down Market Up Market Deviation Deviation Ratio _ __ _ _ Cap Capture Russell Multi -Asset Core (CF) -2.65 11.46 1.51 0.93 -0.18 91.39 101.09 MiriteAsset Core Composite Yndex 1227 0.00 1.00 -0,32 100.00 rnz.r.xfa Imo ._.._._.._____.....,._. I ��I Boynton Beach Police Pension Fund Russell Multi- Manager Bond (CF) March 31, 2016 5, Years: Roiling Percentilei Ranking - S Years, Growth of a Dollar 0.0 140.00 25.0 Y C W E 50.0 D: 75.0 100.0 � � 000 000 r 000 V T f Y v V V V T r v 6/11 19J11 6/12 12112 6/13 12/13 6114 12/14 6115 3116 Periods 5-25 25 - 50 50-75 75-95 C1 Russell Multi- Manager Bond (CF) 11 0 (0 %) 11(100% 0(0%) 0 (0 %) Fixed Income Benchmark 20 0 (0 %) 2(10%) 18(90%) 0 (0 %) 3 Years Rolling Percentile Ranking 0.0 25.0 Y C cc c 50.0 Er `o 75.0 130.00 O O w 120.00 `o 0 110.00 F r7 100.00 90.00 4.93 4.64 4.35 m 4.06 OC 3.77 3.48 l_ I w __,_ 2.84 It 2.92 2.96 100.0 3/11 9/11 3112 9/12 3/13 9113 3/14 9114 3/15 9/15 3116 C ■ • 2.68 2.72 2.76 2.80 2.84 2.88 2.92 2.96 100.0 Risk (Standard Deviation %) 6111 12111 6/12 12112 6113 12113 6/14 12/14 6/15 3116 Return Standard Deviation Periods 5-25 25 - 50 50-75 75-95 O Russell Multi- Manager Bond (CF) 4.58 2.90 O Russell Multi Manager Bond (CF) 19 0 (0 %) 19(100% 0 ( 0 %) 0 (0 %) V Fixed Income Benchmark 3.78 2.75 Fixed Income Benchmark 20 0 (0 %) 0(0%) 20(100% 0 (0 %) Median 4.12 2.81 Return D�ation Historical Statistics Alpha - 5 Years Beta Sharpe Down Market Up Market Capture Capture Russell Multi- Manager Bond (CF) 4.58 2.90 0.86 0.98 1.54 95.63 111.45 Fixed Income Benchmark 2.75 0.00 1.00 1.35 100.00 100.00 Return Standard Historical Statistics Alpha - 3 Years Beta Sharpe Down Market Up Market Deviation Ratio Capture Capture Russell Multi- Manager Bond (CF) 3.10 324 - A 0.44 1.08 0.95 105.52 _ 113.67 Fixed Income Benchmark 2.50 O.00 1.00 0.83 100.00 !r`iaU -00 17 ,1 • 0.0 25.0 E 50.0 K 75.0 100.0 Boynton Beach Police Pension Fund Russell Real Estate Equity (CF) March 31, 2016 Growth of a Do llar 0 C1 6/11 12111 6112 12112 6/13 12113 6/14 12/14 6/15 3116 Periods 5-25 25 - 50 50-75 75-95 50.00 C+) Russell Real Estate Equity (CF) 20 0 (0 ° /n) 8 (40 %) 12 (60 %) 0 (07.) 3/11 9/11 3112 9/12 3113 9113 3114 9/14 3115 9/15 3/16 Real Estate Benchmark 20 10 (50 %) 2 (10 %) 7 (35 %) 1 (5 %) 3 Years Railing r o ■ Risk/Reward - 5 Years 0.0 25.0 Y m rr E 50.0 m rr 75.0 1000 MILIA 13.80 250.00 200.00 0 0 0 150.00 3 0 C7 100.00 E a " 13.60 E m 13.40 13.20 I V 13.00 0.80 1.00 120 1.40 1.60 1.80 Risk (Standard Deviation %) 6/11 12111 6112 12112 6/13 12/13 6/14 12/14 6115 3/16 Return Return Standard Deviation Periods 5-25 25 - 50 50-75 75-95 n Russell Real Estate Equity (CF) 13.60 1.53 0 Russell Real Estate Equity (CF) 20 0 (0 %) 5 (25 %) 15 (75 %) 0 (0 %) 0 Real Estate Benchmark 13.21 1.10 Real Estate Benchmark 20 3 (15 %) 2 (10%) 13 (65 %) 2 (10 %) - Median 13.74 1.67 Historical Statistics - 5 Years Down Up Retum DDeviation Alpha Beta Ratio Market Market Cap ture �NIA Capture Russell Real Estate Equity (CF) 13.60 1.53 -2.44 1.22 8.40 102.85 Real Estate Benchmark 13.21 1 -10 0.00 1-00 11.36 N/A 100.00 Return Standard Historical Statistics - 3 Alpha Years Beta Sharpe Down Market Up Market Deviation Ratio Captur C apture Russell Real Estate Equity (CF) 13.80 1.46 -4.29 1.35 8.88 NIA 101.71 Real Estate Benchmark 13.56 0.87 0.00 1.00 14.55 N/A i Boynton Beach Police Pension Fund Glossary March 31, 2016 - ACCRUED INTEREST- Bond interest earned since the last interest payment, but not yet received. - ALPHA- A linear regressive constant that measures expected return independent of Beta. -ASSET ALLOCATION- The division of portfolio asset classes in order to achieve an expected investment objective. - BALANCED UNIVERSES - Public Funds, Endowments & Foundations, Corporate peer groups, and PSN peer groups. -BETA- A measure of portfolio sensitivity (volatility) in relation to the market, based upon past experience. -BOND DURATION- A measure of portfolio sensitivity to interest rate risk. - COMMINGLED FUND- An investment fund which is similar to a mutual fund in that investors are permitted to purchase and redeem units that represent ownership in a pool of securities. - CONVERTIBLE BONDS - Hybrid securities' that offer equity returns during rising equity markets and improved down - market protection. -CORE- An equal weighting in both growth and value stocks. - CORRELATION COEFFICIENT- A measure of how two assets move together. The measure is bounded by +1 and -1; +1 means that the two assets move together positively, while a measure of -1 means that the assets are perfectly negatively correlated. - GROWTH MANAGER- Generally invests in companies that have either experienced above - average growth rates and /or are expected to experience above - average growth rates in the future. Growth portfolios tend to have high price/earnings ratios and generally pay little to no dividends. - INDEXES- Indexes are used as "independent representations of markets" (e.g., S &P 500). - INFORMATION RATIO- Annualized excess return above the benchmark relative to the annualized tracking error. -LARGE CAP- Generally, the term refers to a company that has a market capitalization that exceeds $10 billion. - MANAGER UNIVERSE- A collection of quarterly investment returns from various investment management firms that may be subdivided by style (e.g. growth, value,, core). -MID CAP- Generally, the term refers to a company that has a market capitalization between $2 and $10 billion. - NCREIF - A quarterly time series composite total rate of return measure of investment performance of a large pool of individual commercial real estate properties acquired in the private market for investment purposes only. - NCREIF ODCE - Open End Diversified Core Equity index which consists of historical and current returns from 26 open -end commingled funds pursuing core strategy. This index is capitalization weighted, time weighted and gross of fees. -NET- Investment return accounts only for manager fees. - PROTECTING FLORIDA INVESTMENT ACT (PFIA) - SBA publishes a list of prohibited investments (scrutinized companies). -RATE OF RETURN- The percentage change in the value of an investment in a portfolio over a specified time period, excluding contributions. -RISK MEASURES- Measures of the investment risk level, including beta, credit, duration, standard deviation, and others that are based on current and historical data. -R- SQUARED- Measures how closely portfolio returns and those of the market are correlated, or how much variation in the portfolio returns may be explained by the market. An R2 of 40 means that 40% of the variation in a fund's price changes could be attributed to changes in the market index over the time period. Boynton Beach Police Pension Fund Glossary March 31, 2016 - SHARPE RATIO- The ratio of the rate of return earned above the risk -free rate to the standard deviation of the portfolio. It measures the number of units of return per unit of risk. -SMALL CAP- Generally refers to a company with a market capitalization $300 million to $2 billion. - STANDARD DEVIATION- Measure of the variability (dispersion) of historical returns around the mean. It measures how much exposure to volatility was experienced by the implementation of an investment strategy. - SYSTEMATIC RISK- Measured by beta, it is the risk that cannot be diversified away (market risk). -TIME WEIGHTED (TW) RETURN - A measure of the investments versus the investor. When there are no flows the TW & DOLLAR weighted (DW) returns are the same and vice versa. - TRACKING ERROR- A measure of how closely a manager's performance tracks an index; it is the annualized standard deviation of the differences between the quarterly returns for the manager and the benchmark. - TREYNOR RATIO- A measure of reward per unit of risk_ (excess return divided by beta). -UP AND DOWN - MARKET CAPTURE RATIO- Ratio that illustrates how a manager performed relative to the market during rising and declining market periods. -VALUE MANAGER- Generally invests in companies that have low price -to- earnings and price -to -book ratios and /or above - average dividend yields. 20 Boynton Beach Police Pension Fund Disclosure March 31, 2016 Advisory services are offered through or by Burgess Chambers and Associates, Inc., a registered SEC investment advisor. Performance Reporting: 1.Changes in portfolio valuations due to capital gains or losses, dividends, interest, income and management fees are included in the calculation of returns. All calculations are made in accordance with generally accepted industry standards. 2.Transaction costs, such as commissions, are included in the purchase cost or deducted from the proceeds or sale of a security. Differences in transaction costs may affect comparisons. 3-Individual client returns may vary due to a variety of factors, including differences in investment objectives, asset allocating and timing of investment decisions. 4. Performance reports are generated from information supplied by the client, custodian, and /or investment managers_ BCA relies upon the accuracy of this data when preparing reports. 5.The market indexes do not include transaction costs, and an investment in a product similar to the index would have lower performance dependent upon costs, fees, dividend reinvestments, and timing. Benchmarks and indexes are for comparison purposes only, and there is no assurance or guarantee that such performance will be achieved. 6.Performance information prepared by third party sources may differ from that shown by BCA. These differences may be due to different methods of analysis, different time periods being evaluated, different pricing sources for securities, treatment of accrued income, treatment of cash, and different accounting procedures. 7.Certain valuations, such as alternative assets, ETF, and mutual funds, are prepared based on information from third party sources, the accuracy of such information cannot be guaranteed by BCA. Such data may include estimates and maybe subject to revision. 8.13CA has not reviewed the risks of individual security holdings. 9.13CA investment reports are not indicative of future results. 10. For a free copy of Part II (mailed w/i 5 bus. days from request receipt) of Burgess Chambers & Associates, Inc.'s most recent Form ADV which details pertinent business procedures, please contact: 315 East Robinson Street Suite #690, Orlando, Florida 32801, 407 - 644 -0111, info @burgesschambers.com. 21 Bu rgess Chambers & Associates, Inc. Institutional dnvestmentAdvisors usww. burgessehambers. com 315 East Robinson Street, Suite 690, Orlando, Florida 32801 P: 407 -644 -0111 F:407- 644.0694