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Agenda 08-11-15 BOYNTON BEACH POLICE OFFICERS' PENSION FUND QUARTERLY BOARD MEETING Tuesday, August 11, 2015 @ 10:30 AM Renaissance Commons Executive Suites 1500 Gateway Blvd., Suite #220 Boynton Beach, FL 33426 REVISED 8 -10 -2015 AGENDA I. CALL TO ORDER — Toby Athol, Chair III. APPROVAL OF MINUTES — Quarterly Meeting 5 -12 -2015 IV. FINANCIAL REPORTS: A) Quarterly Investment Review — June 30, 2015 1) Russell Investment Group — MJ (Candioto) Serene, CFA a) Investment Review — 2.) Burgess Chambers & Associates - Head of Research Frank Wan a) Fund Performance review — V. CORRESPONDENCE: N/A VI. OLD BUSINESS: A) Disability Application: Update /Status 1) Gregory Kenny — Final Order LOD Disability — Approved 7 -21 -2015 VII. NEW BUSINESS: A. Invoices for review and approval: 1. Russell Investment Gp. — Quarter End 06 -30 -2015 - $136,783 2. Russell Payment Services — Quarter End 06 -30 -2015 - $1308.50 3. Bonni Jensen PA — Service May, Jun & Jul 2015 - $6,489.62 4. Burgess Chambers & Assoc — 2nd Qtr 2015 fee - $6,250 5. Gabriel, Roeder, Smith & Co- Service thru June 2015 - $3,593 B) Attorney Report - Bonni Jensen 1) 2015 IRS Determination Letter 7 -28 -2015 2) Amendment/Clarification to Disability Provision — Actuarial Impact Statement. 1 3) Pending Deadlines — New Reporting Requirements — Memo 7 -8 -2015 a) Required Reports /Disclosures for City's WebSite 6 -23 -15 b) Revised Chapter 112.664 by GRS 6 -26 -15 4) Memo To Interested Parties June 2015 — Reporting Requirements 5) Administrative Expense Budget — Sample 7 -15 -2015 a) Administrative Expenses for past years 2011, 2012, 2013 & 2014 C) Police & Fire Pension Board — RFP for Pension Administrator — Joint venture — Set-up and review process. D) Review and Verification of Retirement Benefits: a) Luis Rodrigues retirement into DROP b) Gregory Kenny LOD Disability VIII. PENSION ADMINISTRATOR'S REPORT 1. Benefits as of 08 -01 -2015 2. Review of Scheduled 2016 Quarterly Board Meetings IX. COMMENTS: X. ADJOURNMENT: Next Regular Meeting Date — Tuesday, November 10, 2015 @ 10:30 a.m. Renaissance Commons If you cannot attend, please call Barbara @ 561 - 739 -7972 NOTICE IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY THE POLICE OFFICERS' PENSION BOARD WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING, HE /SHE WILL NEED A RECORD OF THE PROCEEDINGS AND, FOR SUCH PURPOSE, HE/SHE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDING IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. (F.S. 286.0105) THE CITY SHALL FURNISH APPROPRIATE AUXILIARY AIDS AND SERVICES WHERE NECESSARY TO AFFORD AN INDIVIDUAL WITH A DISABILITY AN EQUAL OPPORTUNITY TO PARTICIPATE IN AND ENJOY THE BENEFITS OF A SERVICE, PROGRAM, OR ACTIVITY CONDUCTED BY THE CITY. PLEASE CONTACT CITY CLERK'S OFFICE, (561) 742 -6060 AT LEAST TWENTY -FOUR HOURS PRIOR TO THE PROGRAM OR ACTIVITY IN ORDER FOR THE CITY TO REASONABLY ACCOMMODATE YOUR REQUEST. S: \CC \WP \JANET\POLICE PENSION FUND.doc 2 MINUTES OF THE BOYNTON BEACH POLICE OFFICERS' PENSION FUND QUARTERLY MEETING HELD ON TUESDAY, MAY 12, 2015, AT 10:30 A.M. RENAISSANCE EXECUTIVE SUITES, SUITE 220, CONFERENCE ROOM 1 1500 GATEWAY BOULEVARD, BOYNTON BEACH, FLORIDA PRESENT: Toby Athol, Chair Barbara LaDue, Pension Administrator Jason Llopis, Secretary ,� 04 Scott Caudell d� wl ABSENT: Joe DeGiulio John Huntington I. CALL TO ORDER — Toby Athol, Chair Chair Athol called the meeting to order at 10:34 a.m. He announced Joe DeGiulio and John Huntington were sick and Ms. Serene would be present via telephone. II. AGENDA APPROVAL The following additions were made: • Item III - Approval of Minutes of the Special Meeting of March 17, 2015 • Item VII, B, 4 - Attorney Report, Amendment of Disability Section of the Ordinance to allow 30 days if terminated for medical reasons. (Proposed language in the backup material.) • Item VII, B, 5 - Legislative Review from Attorney Jensen. Motion Mr. Caudell moved to approve the agenda as amended. Mr. Llopis seconded the motion that unanimously passed III. APPROVAL OF MINUTES — March 17, 2015 Special Meeting Motion Mr. Llopis moved to approve the minutes. Mr. Caudell seconded the motion that unanimously passed. MEETING MINUTES POLICE PENSION BOARD BOYNTON BEACH, FLORIDA MAY 12, 2015 from 5% to 7% in private real estate. The 2% would be taken from the multi- manager bond fund. The total foreign exposure, including equities, fixed income and real assets, as of the end of March, had about a 20.7% exposure to non -U.S. assets. She noted the Board had been contemplating taking a percentage from the multi manager bond fund to the Absolute Return Fixed Income Fund. At the start of the year, the fund had $81.5 million in assets. Outflows were 1.1 million, and a market gain of about $1 million. At the end of the quarter, the portfolio had about $82.2 million in assets and as of May 11 had $82.3 million. There was $800,000 in outflows up to May 11 and the same type of return from market appreciation. On the total plan level, the portfolio had about an 8% return, net of fees, for the one - year period, just shy of 5% fiscal year -to -date and slightly more than 2% for the first quarter of this year. The positive returns were driven across all asset classes outside of commodities. Net of fees, the portfolio was 35 basis points ahead of the Russell Custom Benchmark for the period. For the one, three and five -year periods, the portfolio was flat net of fees. What drove the performance versus the benchmark was the return seeking MAC product. The portfolio was overweight in Europe and Japan and overweight in the U.S. dollar and underweight in commodities. One thing that did not work was the portfolio was underweight in interest -rate sensitive stocks. Ms. Serene had anticipated last year, interest rates would slowly rise and the opposite occurred which hurt the portfolio in the first quarter. Ms. Serene explained the real estate equity fund, for the quarter, was up 3.44% which would have added 16 basis points to the total portfolio. Part of the return from private real estate came from the income component and capital appreciation. She anticipated capital appreciation would be muted going forward. b) Absolute Return Fixed Income Fund (ARFI Fund) — Review and discussion — Ms. Serene recalled the Board was contemplating diversifying fixed - income exposure away from duration- sensitive portfolios and considering an appropriate time to do so. She explained at the high level, the Absolute Return Fixed Income (ARFI) fund was different than any Resolution Trust Corporation funds used in the past. It was structured in a private placement structure and the funds could only be invested in retirement assets. The RIFL product could invest in most retirement assets and non - profit assets. It is a co- mingled structure. They launched that fund in the RIFL complex to make it available to as wide of a client base as possible. After the last meeting the Board reviewed the documents for the fund. Mr. Wan reviewed the Investment Policy Statement and commented, generally they were interested in the fund, but needed further education. Attorney Jensen agreed with 3 • MEETING MINUTES POLICE PENSION BOARD BOYNTON BEACH, FLORIDA MAY 12, 2015 Attorney Jensen commented 2% did not seem like a lot, in terms of providing a level of stability, but it did not seem like they would get their bang for the buck. Ms. Serene agreed, but pointed out 2% of the entire fixed income portfolio was about 7 %. The main reason to hold fixed income was for P capital preservation and risk reduction. She did not P expect a lot of return from core fixed income in the future, especially in a slow rising rate environment, but it was important to reduce risk. She did not recommend a big change, but would find value in reallocating some assets to a product that would have similar returns, and have the potential to have a more positive return than the core portfolio in a rising rate environment. The portfolio also has bond exposure in the multi -asset core product, but in that product, it serves a different function. The existing multi- manager bond fund holds a very small piece of the absolute return fixed income fund. If the non -US piece was not a restriction, it would be recommended they move 5% from the multi- manager bond fund into absolute return fixed income. Regardless of the restriction, they were only talking about a small amount. Ms. Serene gave several examples of how the product had similar aspects from a risk - return view, while being very different than core fixed income. Chair Athol inquired who the typical clients in the fund were and what their typical q Yp Yp shares were. Ms. Serene responded investors in the fund were multi- manager bond managers. There was a similar strategy in the RIFL complex for non - profit clients. The majority of investors were their clients. Other investors are clients concerned they have large assets in fixed income and want to diversify in rising rate environments. So far, the majority of clients were non - profit and public plan clients. Chair Athol requested the performance, net of fees, be included in the report for the next two quarters. Ms. Serene commented they set up a call for Mr. Wan to become familiar with the product with the portfolio manager for the absolute return fixed income and multi- manager bond fund . He would also call into the next meeting for questions and answers. Attorney Jensen explained the product was very difficult to comprehend. From an investment perspective, Ms. Serene could answer questions, but could not from a fund structure or legal document perspective. Attorney Jensen explained she read a lot of the documents and commented it was not a transparent product. There are a lot of expenses and conflicts of interest in the product. It is a very different structure than the Board was familiar with. Attorney Jensen commented the product was not one she would stand in front of as the Trustees have the authority to conduct due diligence and invest in products that would be a benefit to the fund. She questioned if the Board, from a basic benefit cost analysis standpoint, wanted to pursue the product. It would be a 2% investment yielding a potential small gain for the fund. The one basis point increase would be at the total plan level. 2.) Burgess Chambers & Associates - Head of Research, Frank Wan a) Fund Performance review — 5 MEETING MINUTES POLICE PENSION BOARD BOYNTON BEACH, FLORIDA MAY 12, 2015 Resources should collaborate with them, but it was noted it was difficult to obtain feedback. Attorney Jensen explained the Board would review the records and make an initial determination. It was up to Mr. Kenny if they would make a presentation. Attorney Jensen suggested the members read the pension plan document pertaining to disabilities set forth in Section 18 -169C. She will send and give a copy of the disability process to the members. She commented the meeting was not a hearing. The meeting would be the members' first initial review of the documents and it is based on the Plan. The members would then determine if he sustained a medically substantiated service connected injury, disease or disability. At the meeting, the members would either grant the request, deny it or request additional information. B) Response in reference to media coverage on Pensions - update Attorney Jensen explained they were working with Sue Marden to prepare the information from the actuarial evaluation and audit. They have a cover memo to be included with the SB 534 information which will help explain it. This information is due to be filed at the end of June. Chair Athol advised they have the new computer hard and software installed and the cost was split with the Fire Department. The software is up and running and is working flawlessly. The program would shadow the process Ms. LaDue has for the next few months to ensure there were no issues. The next step was to coordinate with them with Dave Williams, who handles their quarterly mail out and have their own pension website where members can access their information. Attorney Jensen explained they need the most recent financial statement referring to documents the actuary has. They need to post the actuarial valuation, the chart showing five years of actual and assumed rates of return, and the actual asset allocation. There would be a link to the fact sheet the actuary has to put together. Chair Athol hoped in the future they could coordinate with Mr. Williams and send a flyer to send a link to reduce the mailer to 10% to 15% of the members because the others will be able to access the report online. Attorney Jensen suggested contacting I Retire or Scott Bauer. Chair Athol thought they could have a link from their website. Attorney Jensen will contact them to determine the cost. The Fire Department will be contacted regarding a generic website for the Police and the Fire Departments. It was important to have a secure server. VII. NEW BUSINESS: A. Invoices for review and approval: 1. Russell Investment Group — Quarter End 03 -31 -2015 - $137,952 2. Russell Payment Services — Quarter End 03 -31 -2015 - $ 921.87 7 MEETING MINUTES POLICE PENSION BOARD BOYNTON BEACH, FLORIDA MAY 12, 2015 3) HB 534 — Implementation requirements & Section 112.664, F.S. b p q Y Keith Brinkman, Bureau Chief GRS will put together a document and would contact the City when it is complete. The City has to post information on their website and the Police will post information on their site. Ms. LaDue had already contacted the City regarding this requirement. 4) Attorney Report, Amendment of Disability Section of the Ordinance to allow 30 days if terminated for medical reasons. (Proposed language in the backup material.) Attorney Jensen discussed the Disability Ordinance allows terminated people who were not eligible for disability benefits except for medical reasons to apply within 30 days after termination. She commented there was a question from the Finance Department they just received as they use the same 30 -day window for in- line -of -duty disabilities. Ms. LaDue inquired if Human Resources always gives a reason. Chair Athol did not know and thought if terminated for medical reasons, they could ask Human Resources. Attorney Jensen gave a legislative update and advised two bills had passed. One bill clarified the ability of the Firefighters to collect Chapter 175 funds for areas they provide services for through an Interlocal Agreement. The bill did not include Police which would impact Boynton Beach. Chair Athol explained they do not have ILAs with any of them and the service area has to be a municipality. Senate Bill 172 had passed. The newspaper reported the governor was unhappy with the bill and is in the 15 -day period to decide if he will sign it or not. This bill pertained to the use of future funds and how it would be used. The Police in the next collective bargaining need to say they set up the supplemental plans by mutual consent. Every plan has to set up a share plan, but it was unknown if the plan would be funded. Attorney Jensen advised they will know more on the 23 regarding whether they had to comply. If passed, they will have to create a budget. The budget does not have to be approved by the City. They have to post it and send it to the members. If there is mutual consent, they do not have to follow the process they set up. They have a collective bargaining agreement, and this provision would become effective October 1, 2015 for non - collective bargaining units or upon entering into a collective bargaining agreement on or after July 1, 2015. She suggested they indicate it was by mutual consent they created supplemental benefits and monthly benefits. Chair Athol noted they have agreed to match 1% of the 185 funds. Mutual consent was important because they cannot impose anything on the members. Attorney Jensen announced the State passed House Bill 1309 requiring the Board to use the FRS mortality tables in one of the two most recent years. She commented the Board had recently changed the table and had to change it again. She pointed out they cannot smooth the change in. They just have to drop it in. It was noted FRS makes their own tables. They use parts of the RP 2000 table and combine it with others. 9 MEETING MINUTES POLICE PENSION BOARD BOYNTON BEACH, FLORIDA MAY 12, 2015 Ms. LaDue provided benefits information from October through May 1, 2015, No action was needed on this item. 2. Pension Hardware /Software Update - Desktop /Monitor and All - purpose Printer - Existing program transfers completed and working with no problems March 23, 2015 Ms. LaDue advised all of her new hardware and software was installed and all of her old programs had been transferred. She will run the new program side by side in the next four to six weeks. Ms. LaDue pointed out Invoice #7, the Trustee Renewal Insurance was paid. She requested the members review it. It had to be paid by April 10 and the actual amount was $19,000. It was noted John Huntington will have to fill out both Form 1 and Form 1 F. IX. COMMENTS: None. X. ADJOURNMENT: There being no further business to discuss, Chair Athol properly adjourned the meeting at 12:50 p.m. C-CLWA-L 1- 0 1- Catherine Cherry Minutes Specialist 060415 11 THE BOARD OF TRUSTEES OF THE BOYNTON BEACH POLICE OFFICERS' PENSION FUND IN RE: GREGORY B. KENNY, Disability Claimant ORDER The Board of Trustees of the Boynton Beach Police Officers' Pension Fund, convened on July 21, 2015, to consider the application for disability pension of Claimant, Gregory B. Kenny. Having received representations of the Claimant's Attorney, and having reviewed the records, medical and otherwise, and the independent medical evaluations of Dr. Jeffrey Worth and Dr. Jonathan O. Harris, as well as the FCE from HealthSouth, and having a quorum, the Board has determined the following: A. Based on the medical records, the IMEs, and the FCE, Claimant is physically unable to perform the duties of a police officer to which he was assigned and such disability has existed for more than three months. B. Given the claimant's medical condition, the City of Boynton Beach Police Department does not have a position for the claimant as a certified police officer. Therefore, he is unable to render useful and efficient service as a police officer to the City. C. The physical injuries occurred in- the - line -of -duty and are total and permanent. D. Prior to the informal disability hearing, Claimant applied for both workers' compensation and social security disability benefits. THEREFORE, IT IS HEREBY ORDERED AND ADJUDGED, pursuant to Section 18- 169(c) of the Plan Document of the Boynton Beach Police Officers' Pension Fund, that: 1. Claimant Gregory B. Kenny is entitled to a duty disability pension. 2. Based on the foregoing, the disability pension shall be payable effective July 21, 2015, or the date that he stops being paid by the City of Boynton Beach Police Department, whichever is later. 3. The pension is subject to offset for workers' compensation and social security disability payments to the extent that the total of the pension , the workers' compensation and the social security benefits exceed the member's basic rate of earnings on the date of disability. Any reduction for social security terminates at 65. 4. At the discretion of the Board, the condition of the Claimant is subject to periodic review to determine if the Claimant is capable of performing the service of a police officer. DONE AND ORDERED in Boynton Beach, Florida, this day of 2015. Chairman Secretary C: \Users \pat \Soonr Workplace \PENSION \BB Police 0188 \Participants \Kenny 90121Final Order 7- 21- 15.wpd Pm • T 0 �-- Y` J0_, 5m City of Boynton Beach - Employee. Act Re ort Y Y ii Please type in your input or select from the drop down menus where applicabI cE D Employee: Greg Kenny Employee# 2863 RequesIUte2 4 ci9 4/'i5 Department: Police Division: Uniform Services -- Account # 001 - 2110 -521 . ; ' at v ..:1.,, 'Lo i EMPLOYEE ACTIVITY Effective r' (Please select one from dropdown): R etirement Date: 07/25/2015 r. Current Job c New Job Title Title Current rn New Department: L Dept.: Current Curr. Shift/ - New New Shift/ Dept. # Schedule: = Dept. # Schedule: Current Current Worker's w New New Worker's Step: Compensation #: Step : Compensation #: Current FLSA New FLSA Location Status : Location : Status : Current Current New New Barg. Supervisor : Barg. Unit 7 Supervisor : Unit 7 Current Emergency Current New Emergency New Designation : Position Type: Designation : Position Type: FROM : Current Salary TO: New Salary (Annually)/(Hourly)(A) I 1 (Hi Grad (Annually)/(Hourly) (A) I ` (H) i Grade New Employee info Or Change Of Name /Address /Phone To: • Name Home # Cell # (New): Address: City: State Zip Code Additional information: REQUIRED FOR TERMINARONS E -Mall: Birth Date ).ast Day Worked JiTE End Date Comments (Justification for action or additional information): 07/24/2015 07/25/2015 . Effective 07/25/15 retired through the pension board. . r Re • don • = etlrement: Attach letter /documentation. For all others, please attach justification for this request and forward to Human Resources 67.24 -15 i I-- ` 94 --31 Et' �'�" -- _ REC EIVE D O N . pf or D a t e Hu 1 r e s Di r e ctor Date l .:t_ 1 i JUL 27 15 �� 7 p • I, y � Date Emp ogee Da City manager's Office , Conditional Offer Approved - City Manager rre••. 030712 Request for Conditional Offer - HR Director r GA Russell Investments Invoice Invoice for: Invoice Number Russell Client ID Billing Period Ending City of Boynton Beach Police Retirement 50806 C04616001 06/30/2015 Fund 1500 Gateway Blvd #220 Invoice Date Payment Terms Total Amount Due Boynton Beach, FL 33426 07/27/2015 Net 30 Days $ 136,783.00 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 $ IIrIIIIIIIIIIIIIIIIIIIIIIIIIIIII — 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 $ 136,783.00 $ 0.00 $ 136,783.00 Current Period Fees $ 136,783.00 $ 0.00 $ 136,783.00 Balance Forward 137,952.00 (137,952.00) 0.00 Totai Amount Due $ 136,783.00 Invoice Number Invoice Date Russell Client ID Payment Terms Billing Period Ending 50806 07/27/2015 C04616001 Net 30 Days 06/30/2015 Current Period Over 30 Days Over 60 Days Over 90 Days Total Amount Due $ 136,783.00 $ 0.00 $ 0.00 $ 0.00 $ 136,783.00 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: 50806 Billing Period Ending: 06/30/2015 Russell Investments - FEE DETAIL Investment Management Fees City of Boynton Beach Police Retirement Fund Boynton Beach Police Officers Retirement Trust Funds Investment Account Account Number: QU7W Fund Name Average Rate% Fee Amount Market Value Russell Multi -Asset Core Fund 32,363,816 0.23000 74,437.00 Russell Large Cap Defensive 21,472,136 0.16500 35,429.00 Equity Fund Russell Multi- Manager Bond Fund 22,570,016 0.12250 27,648.00 Russell Real Estate Equity Fund 5,852,131 0.36250 21,214.00 Subtotal 82,258,099 $ 158,728.00 Russell Real Estate Equity Fund - Internal Fee Paid (21,945.00) Account Total $ 136,783.00 Total Investment Management Fees $ 136,783.00 Page 2 Russell Investments MANAGER 4525 - - INVOICE NO. 1506074706 -9997 NW 6327 DATE 2015/07/30 PO BOX 1450 PAGE 1 OF 1 Minneapolis, MN 55485 -6327 US TOTAL CHARGES CURRENT PERIOD USD 1,308.50 9BYM- Police Officer Retirement Trust Police Officer Retirement Trust FOR 3 MONTH PERIOD 4/01/15 to 6/30/15 City of Boynton Beach DB Boynton Police & Fire Pension Fnds, 1500 Gateway Blvd,Suite #220Account ID: BOYNTON POLICE Pension Administrator Pay Type 3 Boynton Beach, FL 33426 ATTENTION Barbara L. Ladue PLEASE DETACH THIS PORTION AND RETURN WITH YOUR PAYMENT CHARGES BENEFIT PAYMENT CHECK FEES ACH Benefit Payments 421 AT 1.25 526.25 Benefit Payments 13 AT 1.25 16.25 Lump Sum Payments 16 AT 10.00 160.00 BENEFIT PAYMENT: OTHER FEES Annual TEFRA Form 216 AT 0.50 108.00 State Tax Filing 9 AT 25.00 225.00 ** SUBTOTAL FEES ** 1,035.50 OUT OF POCKET CHARGES POSTAGE Advice of Deposit 237.69 Benefit Payment 7.41 Lump Sum 9.12 UPS DELIVERY UPS Charges 4/28/2015 6.26 UPS Charges 5/28/2015 6.26 UPS Charges 6/25/2015 6.26 18.78 ** SUBTOTAL OUT OF POCKET ** 273.00 CURRENT CHARGES USD 1,308.50 INV.# 1506074706 -9997 9BYM- Police Officer Retirement Trust 2015/07/30 LAW OFFICES OF BONN! JENSEN, P.A. July 22, 2015 Via Email Boynton Beach Police Officers' Pension Fund Toby Athol 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 Re: Legal Services Provided Invoice #73232 Dear Toby: Enclosed please find the Firm's invoice for services rendered for the period that ended 7/15/2015. Thank you for your payment of $1,512.50. Your current balance due is $6,489.62. vnli cv If you have any questions, please do not hesitate to contact me. Sincerely yours, r I r i B'onni S. Jen en BSJ /Ig Enclosure Copy to: Barbara LaDue Via Email Only 400 EXECUTIVE CENTER DRIVE, SUITE 207 ♦ WEST PALM BEACH, FLORIDA 33401 -2922 PHONE: (561) 686 -6550 + FAX: (561) 686 -2802 LAW OFFICES OF BONNI JENSEN, P.A. 400 Executive Center Drive Suite 207 West Palm Beach, FL 33401 -2922 bsjteam @robertdklausner.com & bonni @robertdklausner.com Invoice submitted to: Boynton Beach Police Officers' Pension Fund Attn: Chairman 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 Copy to: Barbara LaDue - Via Email July 21, 2015 In Reference To: FOR PROFESSIONAL SERVICES RENDERED AS FOLLOWS: Client / File No.: 0188 Invoice #73232 Professional Services Hrs /Rate Amount Budget Budget 7/15/2015 BSJ E -mail to Barbara LaDue 0.75 168.75 Draft Sample Expense Budget 225.00/hr Review SB172 Budget SUBTOTAL: [ 0.75 168.75] Disability Disability 6/29/2015 BSJ Review and revise Disability Decision Memorandum 1.00 225.00 Review Plan Document Disability Provisions 225.00/hr Disability Disability 6/30/2015 PH Revise Disability Decision Language per Bonni's mark up 0.30 22.50 E -mail to Toby Athol, Jason Llopis, Scott Caudell, Joe Degiulio, & 75.00 /hr Barbara LaDue re: Disability Decision & Pension Plan Disability Language Disability Boynton Beach Police Officers' Pension Fund Page 2 Hrs /Rate Amount SUBTOTAL: [ 1.30 247.50] IRS Determination Letter IRS Determination Letter 6/17/2015 BSJ Review & Respond to email from Barbara LaDue re: EIN 0.10 22.50 IRS Determination Letter 225.00/hr SUBTOTAL: [ 0.10 22.50] Meeting Notices and Agendas Meeting Notices and Agendas 7/14/2015 PH Prepare Attorney Report, Handouts, and Notebook for upcoming Meeting 1.50 112.50 - 7/21/15 75.00 /hr Meeting Notices and Agendas SUBTOTAL: [ 1.50 112.50] Miscellaneous Matters Miscellaneous Matters 7/7/2015 BSJ Review and revise Memorandum re: Reporting Deadlines 0.20 45.00 Miscellaneous Matters 225.00/hr SUBTOTAL: [ 0.20 45.00] Participant - Kenny Participant - Kenny 6/29/2015 PH E -mail to Barbara LaDue re: Invoice from Dr. Harris 0.05 3.75 Participant - Kenny 75.00 /hr Participant - Kenny 6/30/2015 BSJ Review and revise Disability Decision Memorandum 1,00 225.00 Review Pension Plan Document 225.00/hr E-mail to Barbara LaDue re: Filing for Social Security Participant - Kenny Boynton Beach Police Officers' Pension Fund Page 3 Hrs /Rate Amount Participant - Kenny 7/1/2015 BSJ Review & Respond to email from Barbara LaDue 0.50 112.50 Research Plan Document 225.00/hr Participant - Kenny Participant - Kenny 7/6/2015 BSJ Review Confirmation of Disability Filing 0.20 45.00 Participant - Kenny 225.00/hr Participant - Kenny 7/13/2015 BSJ Telephone call with Scott Baur re: Secure File Server 0.25 56.25 Review Agenda 225.00/hr Review emails from Scott Baur re: Secure Server Participant - Kenny Participant - Kenny PH Upload Kenny Disability Material to the Resource Centers Secure Server 1.50 112.50 Participant - Kenny 75.00 /hr Participant - Kenny PH E -mails to Trustees, Barbara LaDue, & Scott Baur re: Disability Material 0.50 37.50 is on Secure Server for Review 75.00 /hr Participant - Kenny SUBTOTAL: [ 4.00 592.50] Plan Document Plan Document 7/14/2015 BSJ Review email from Julie Oldbury & Attached Collective Bargaining 2.50 562.50 Agreements from 3 Bargaining Units 225.00/hr Research Plan for 3.5 Multiplier Draft Plan Amendment per Collective Bargaining Agreement with 3% Multiplier for New Hires after 10/1/15 E -mail to Toby Athol E -mail to Julie Oldbury E -mail to Pete Strong Plan Document Plan Document BSJ Review & Respond to email from Pete Strong 0.20 45.00 E -mail to Chair, Secretary, & Administrator re: Item for Agenda 225.00 /hr Plan Document Boynton Beach Police Officers' Pension Fund Page 4 Hrs /Rate Amount SUBTOTAL: [ 2.70 607.50] Policies - General Policies - General 6/29/2015 BSJ Review and revise Travel Policy re: Per Diem 0.25 56.25 Policies - General 225.00/hr SUBTOTAL: [ 0.25 56.25] Trustee Information Trustee Information 6/16/2015 PH E -mail to Administrator & Trustees re: HB 1309 Memorandum 0.10 7.50 Trustee Information 75.00 /hr Trustee Information 6/29/2015 PH E -mail to Barbara LaDue re: Form 1 & Form 1F for John Huntington 0,20 15.00 Trustee Information 75.00 /hr SUBTOTAL: [ 0.30 22.50] For professional services rendered 11.10 $1,875.00 Additional Charges : Bill File 7/15/2015 Copy Charges 20.70 Postage 0.49 SUBTOTAL: [ 21.19] Participant - Kenny 6/29/2015 Invoice from Dr. Harris re: IME & Medical Records Review 1,512.50 SUBTOTAL: [ 1,512.50] Total additional charges $1,533.69 Boynton Beach Police Officers' Pension Fund Page 5 Amount For professional services rendered 11.10 $3,408.69 Total amount of this bill $3,408.69 Previous balance $4,593.43 Accounts receivable transactions 7/1/2015 Payment - Thank You! (Dr. Harris / G. Kenny). Check No. 053562 ($1,512.50) Total payments and adjustments ($1,512.50) Balance due $6,489.62 LAW OFFICES OF BONNI JENSEN, P.A. June 22, 2015 Via Email Boynton Beach Police Officers' Pension Fund Toby Athol 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 Re: Legal Services Provided Invoice #73172 Dear Toby: Enclosed please find the Firm's invoice for services rendered for the period that ended 6/15/2015. Thank you for y ur payment of $3,636.16. Your current balance due is $4,593.43. IV p of L If you have any questions, please do not hesitate to contact me. Sincerely yours, (v,A Bonni S. Jensen BSJ /Ig Enclosure Copy to: Barbara LaDue Via Email Only 400 EXECUTIVE CENTER DRIVE, SUITE 207 • WEST PALM BEACH, FLORIDA 33401 -2922 PHONE: (561) 686 -6550 ♦ FAX: (561) 686 -2802 LAW OFFICES OF BONNI JENSEN, P.A. 400 Executive Center Drive Suite 207 West Palm Beach, FL 33401 -2922 bsjteam @robertdklausner.com & bonni @robertdklausner.com Invoice submitted to: Boynton Beach Police Officers' Pension Fund Attn: Chairman 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 Copy to: Barbara LaDue - Via Email June 19, 2015 In Reference To: FOR PROFESSIONAL SERVICES RENDERED AS FOLLOWS: Client / File No.: 0188 Invoice #73172 Professional Services Hrs /Rate Amount Miscellaneous Matters Miscellaneous Matters 5/21/2015 PH Revise Memorandum regarding New Florida Pension Reporting Under 0.30 22.50 F.S. 112.664 and Memorandum from Trustees to Interested Parties per 75.00 /hr Bonni's mark up E -mail to Board of Trustees & Administrator Miscellaneous Matters Miscellaneous Matters 5/22/2015 BSJ Review Enrolled Copy of SB172 0.25 56.25 Miscellaneous Matters 225.00/hr Miscellaneous Matters 5/27/2015 BSJ Draft Memorandum regarding Florida Statutes 175/185 0.25 56.25 Miscellaneous Matters 225.00/hr Miscellaneous Matters 5/28/2015 BSJ Review and revise Memorandum 0.25 56.25 Miscellaneous Matters 225.00/hr Boynton Beach Police Officers' Pension Fund Page 2 Hrs /Rate Amount Miscellaneous Matters 5/28/2015 PH E -mail to Board of Trustees & Administrator re: Memorandum on 0.10 7.50 Implementation of SB172 75.00 /hr Miscellaneous Matters Miscellaneous Matters 6/8/2015 BSJ Telephone call with Barbara LaDue re: Maiorino & Early Buy Out 0.35 78.75 Miscellaneous Matters 225.00 /hr Miscellaneous Matters 6/12/2015 BSJ Review SB1309 0.10 22.50 Miscellaneous Matters 225.00/hr Miscellaneous Matters 6/15/2015 BSJ Draft Memorandum re: HB 1309 0.20 45.00 Miscellaneous Matters 225.00/hr SUBTOTAL: j 1.80 345.00] Participant - Kenny Participant - Kenny 6/2/2015 BSJ Review Fax from Dr. Harris 0.25 56.25 Participant - Kenny 225.00 /hr Participant - Kenny 6/3/2015 BSJ Review & Respond to email from Toby Athol 0.25 56.25 Participant - Kenny 225.00/hr Participant - Kenny PH Fax to Toby Athol re: Dr. Harris Reports 0.20 15.00 Participant - Kenny 75.00 /hr Participant - Kenny PH Telephone call with Dr. Worth's Office (Left message) re: Updated IME 0.10 7.50 Report 75.00 /hr Participant - Kenny Boynton Beach Police Officers' Pension Fund Page 3 Hrs /Rate Amount Participant - Kenny 6/5/2015 PH Telephone calls with Dr. Harris & Dr. Worth re: MRI Disc 0.10 7.50 Participant - Kenny 75.00 /hr Participant - Kenny 6/8/2015 BSJ Review Dr. Worth Report 0.25 56.25 Participant - Kenny 225.00/hr Participant - Kenny PH Telephone call with Sharon at Dr. Worth's Office re: MRI Disc Received 0.10 7.50 from Dr. Harris' Office 75.00 /hr Participant - Kenny Participant - Kenny 6/11/2015 BSJ E -mail to Janel Stephens at Paul Kelley's Office re: Status and Reports 0.25 56.25 E -mail to Barbara LaDue re: Special Meeting 225.00 /hr Participant - Kenny SUBTOTAL: [ 1.50 262.50] Plan Document Plan Document 5/19/2015 BSJ Attend City Commission Meeting 1.50 337.50 Plan Document 225.00/hr Plan Document BSJ Correspondence with Pete Strong requesting Actuarial Impact Statement 0.50 112.50 Plan Document 225.00 /hr Plan Document PH E -mail to Pete Strong requesting Actuarial Impact Statement 0.20 15.00 Plan Document 75.00 /hr SUBTOTAL: [ 2.20 465.00] For professional services rendered 5.50 $1,072.50 Boynton Beach Police Officers' Pension Fund Page 4 Additional Charges : Amount Bill File 6/15/2015 Fax Charges 11.00 Copy Charges 8.25 SUBTOTAL: [ 19.25] Participant - Kenny 5/13/2015 United Parcel Service Invoice No.: 0000F49280205 10.97 Tracking #1ZF492804290181205 to Dr. J.O. Harris re: Medical Records - MRI United Parcel Service Invoice No.: 0000F49280205 10.97 Tracking #1ZF492804291054216 to Dr. Jeffrey B. Worth re: Medical Records United Parcel Service Invoice No.: 0000F49280205 7.07 Tracking #1ZF492804290181205 Pickup Request No.: 2924H30CE72 Re: Medical Records - MRI SUBTOTAL: [ 29.01] Total additional charges $48.26 For professional services rendered 5.50 $1,120.76 Total amount of this bill ✓$1,120.76 Previous balance $7,108.83 Accounts receivable transactions 6/1/2015 Payment - Thank You!. Check No. 053552 ($3,636.16) Total payments and adjustments ($3,636.16) Balance due v �4 $4,593.43 LAW OFFICES OF BONN1 JENSEN, P.A. May 21, 2015 Via Email Boynton Beach Police Officers' Pension Fund Toby Athol 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 Re: Legal Services Provided Invoice #73126 Dear Toby: Enclosed please find the Firm's invoice for services rend red for the period that ended 5/15/2015. Your current balance due is , . . nis., 0,6 ? ,-,-- 5g If you have any questions, please do not hesitate to contact me. Sincerely yours, 7) — /D.- ‘ __ Bonne S. Jensen BSJ /Ig Enclosure Copy to: Barbara LaDue Via Email Only 400 EXECUTIVE CENTER DRIVE, SUITE 207 ♦ WEST PALM BEACH, FLORIDA 33401 -2922 PHONE: (561) 686 -6550 • FAX: (561) 686 -2802 LAW OFFICES OF BONNI JENSEN, P.A. 400 Executive Center Drive Suite 207 West Palm Beach, FL 33401 -2922 bsjteam @robertdklausner.com & bonni @robertdklausner.com Invoice submitted to: Boynton Beach Police Officers' Pension Fund Attn: Chairman 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 Copy to: Barbara LaDue - Via Email May 21, 2015 In Reference To: FOR PROFESSIONAL SERVICES RENDERED AS FOLLOWS: Client / File No.: 0188 Invoice #73126 Professional Services Hrs /Rate Amount Actuary - GRS Actuary - GRS 4/30/2015 BSJ Review email from Keith Brinkman re: Implementation of HB 534 0.10 22.50 Actuary - GRS 225.00/hr SUBTOTAL: [ 0.10 22.50] Administrator Administrator 5/6/2015 BSJ Telephone call with Toby Athol re: Barbara LaDue Retirement 0.50 112.50 Telephone call with Adam Levinson re: Barbara LaDue Retirement 225.00/hr Administrator Administrator 5/8/2015 PH Revise Duties of Administrator per Bonni's mark up 0.30 22.50 Administrator 75.00 /hr SUBTOTAL: [ 0.80 135.00] Boynton Beach Police Officers' Pension Fund Page 2 Hrs /Rate Amount Attendance at Trustee Meetings Attendance at Trustee Meetings 5/12/2015 BSJ Attend Meeting 2.50 562.50 Attendance at Trustee Meetings 225.00/hr Attendance at Trustee Meetings 5/13/2015 LG Review Post Meeting Folder 0.30 22.50 Attendance at Trustee Meetings 75.00 /hr SUBTOTAL: [ 2.80 585.00] Inv Mgr - Frank Russell Inv Mgr - Frank Russell 5/3/2015 BSJ Review Russell Absolute Return Private Placement Memorandum 1.00 225.00 Inv Mgr - Frank Russell 225.00 /hr Inv Mgr - Frank Russell 5/5/2015 BSJ E -mail to Burgess Chambers re: Investment Guidelines for Absolute 0.25 56.25 Return Fixed Income 225.00/hr Inv Mgr - Frank Russell Inv Mgr - Frank Russell 5/6/2015 BSJ Review Documents for Absolute Return Fixed Income 1.00 225.00 Inv Mgr - Frank Russell 225.00/hr Inv Mgr - Frank Russell 5/12/2015 BSJ Review RFL Subscription Agreement 0.50 112.50 Inv Mgr - Frank Russell 225.00/hr SUBTOTAL: [ 2.75 618.75] Meeting Notices and Agendas Meeting Notices and Agendas 5/8/2015 PH Prepare Attorney Report, Handouts, and Notebook for upcoming Meeting 1.50 112.50 - 5/12/15 75.00 /hr Meeting Notices and Agendas SUBTOTAL: [ 1.50 112.50] Boynton Beach Police Officers' Pension Fund Page 3 Hrs /Rate Amount Minutes of Trustee Meetings Minutes of Trustee Meetings 5/7/2015 BSJ Review and revise Minutes of 3/17/15 Meeting 0.35 78.75 Minutes of Trustee Meetings 225.00/hr SUBTOTAL: [ 0.35 78.75] Miscellaneous Matters Miscellaneous Matters 4/16/2015 BSJ Review Rule 60T - 1.0035 0.10 22.50 E -mail to Actuary re: Effective Date 225.00/hr E -mail to Administrator Miscellaneous Matters Miscellaneous Matters 5/7/2015 BSJ Draft Memorandum re: 112.664 Reporting 0.25 56.25 Draft List of Items to Show on VVebsite 225.00/hr Research Requirements of 112.664 Miscellaneous Matters Miscellaneous Matters 5/12/2015 BSJ Review SB 172 0.10 22.50 Telephone call with Keith Brinkman 225.00 /hr Miscellaneous Matters Miscellaneous Matters BSJ Review and revise Memorandum re: §112.64 Reporting & Website 0.25 56.25 Review and revise Cover Memorandum to Fact Sheet 225.00/hr Miscellaneous Matters SUBTOTAL: [ 0.70 157.50] Participant - General Correspondence p Participant - General Correspondence 4/22/2015 BSJ Telephone call with Toby Athol re: Refund of Contributions and Operation 0.25 56.25 of 112.3173 225.00/hr Participant - General Correspondence Boynton Beach Police Officers' Pension Fund Page 4 Hrs /Rate Amount Participant - General Correspondence 4/29/2015 BSJ Telephone call with Toby Athol re: Refund for Arrested Member 0.20 45.00 Participant - General Correspondence 225.00/hr SUBTOTAL: [ 0.45 101.25] Participant - Kenny Participant - Kenny 4/16/2015 PH Review Records received from Dr. Richman - Compare to See What is 0.60 45.00 Needed for Disability Notebook 75.00 /hr Participant - Kenny Participant - Kenny 4/21/2015 PH Telephone call with Palm Beach Neurology re: Invoice for MRI Disc 0.05 3.75 Participant - Kenny 75.00 /hr Participant - Kenny 4/23/2015 PH Telephone call with Judy at HealthSouth re: Dates for Functional Capacity 0.10 7.50 Exam 75.00 /hr Participant - Kenny Participant - Kenny PH Redact Dr. Winner Medical Records 0.50 37.50 Insert into the Additional Disability Notebook 75.00 /hr Participant - Kenny Participant - Kenny 4/24/2015 PH Redact Second Set of Updated Medical Records from Dr. Richman 1.00 75.00 Insert into the Additional Disability Notebook 75.00 /hr Participant - Kenny Participant - Kenny 4/29/2015 PH Telephone call with Judy at HealthSouth re: Schedule FCE for Kenny 0.30 22.50 E -mail to Barbara LaDue re: Scheduled FCE on May 6th 75.00 /hr Participant - Kenny Participant - Kenny 4/30/2015 PH Telephone call with Judy at HealthSouth re: Medical Records on a Disc 0.10 7.50 Participant - Kenny 75.00/hr Boynton Beach Police Officers' Pension Fund Page 5 Hrs /Rate Amount Participant - Kenny 4/30/2015 BSJ E -mail to Paul Kelley re: FCE 0.20 45.00 Participant - Kenny 225.00/hr Participant - Kenny 5/1/2015 PH Prepare 2 Disks Containing Medical Records to Send to Paul Kelley & 0.50 37.50 HealthSouth 75.00 /hr Participant - Kenny Participant - Kenny BSJ Correspondence with HealthSouth re: Medical Records for FCE 0.50 112.50 Participant - Kenny 225.00/hr Participant - Kenny BSJ Correspondence with Paul Kelley re: Updated Medical Records 0.50 112.50 Participant - Kenny 225.00/hr Participant - Kenny PH E -mail to Trustees, Administrator, & Paul Kelley re: Sending Medical 0.30 22.50 Records to HealthSouth for FCE 75.00 /hr UPS to HealthSouth re: Medical Records Disc Participant - Kenny Participant - Kenny PH E -mail to Paul Kelley, Janel Stephens, Barbara LaDue, Toby Athol, & 0.30 22.50 Jason Llopis re: Sending Updated Medical Records 75.00 /hr UPS to Paul Kelley re: Medical Records Disc Participant - Kenny Participant - Kenny 5/4/2015 PH Telephone call with HealthSouth re: Payment for FCE Invoice and 0.30 22.50 Confirm Scheduled FCE for May 6, 2015 75.00 /hr E -mail to Janel with Paul Kelley's Office to confirm May 6, 2015 FCE at HealthSouth E -mail to Barbara LaDue requesting Confirmation that Mr. Kenny will Attend Scheduled FCE Participant - Kenny Participant - Kenny 5/6/2015 PH Telephone call with Judy at HealthSouth to Confirm Mr. Kenny's 0.30 22.50 Attendance at FCE & Request Receipt for Payment of FCE 75.00 /hr E -mail to Barbara LaDue & Toby Athol re: Receipt for Payment of FCE Participant - Kenny Boynton Beach Police Officers' Pension Fund Page 6 Hrs /Rate Amount Participant - Kenny 5/12/2015 PH Revise Letters to Dr. Harris & Dr. Worth 0.50 37.50 Participant - Kenny 75.00 /hr Participant - Kenny 5/13/2015 BSJ Correspondence with Dr. Harris re: FCE & Request an Updated Report 0.50 112.50 Participant - Kenny 225.00 /hr Participant - Kenny BSJ Correspondence with Dr. Worth re: FCE & Request an Updated Report 0.50 112.50 Participant - Kenny 225.00/hr Participant - Kenny PH E -mail to Trustees & Administrator re: Letter to Dr. Worth on the FCE & 0.30 22.50 Request for an Updated Report 75.00 /hr Ship via UPS to Dr. Worth Participant - Kenny Participant - Kenny PH E -mail to Trustees & Administrator re: Letter to Dr. Harris on the FCE & 0.30 22.50 Request for an Updated Report 75.00 /hr Ship via UPS to Dr. Harris Participant - Kenny Participant - Kenny PH Redact FCE 0.20 15.00 Participant - Kenny 75.00 /hr Participant - Kenny 5/14/2015 BSJ Telephone call with Toby Athol 0.25 56.25 Participant - Kenny 225.00/hr 7 SUBTOTAL: ( 8.10 975.00] ] Plan Document Plan Document 5/3/2015 BSJ Draft Amendment to the Plan to Clarify that Only Members Can Apply But 0.75 168.75 Employees who are Terminated for Medical Reasons can Apply within 30 225.00/hr Days Review Plan Document Plan Document Boynton Beach Police Officers' Pension Fund Page 7 Hrs /Rate Amount Plan Document 5/11/2015 BSJ Review & Respond to email regarding Amendment for Extended 0.75 168.75 Application for Members Terminated for Disability 225.00/hr Plan Document Plan Document 5/14/2015 BSJ Telephone call with Tim Howard re: Amendment for Applying for Disability 0.25 56.25 Benefit 225.00/hr Plan Document SUBTOTAL: [ 1.75 393.75] Trustee Form 1 Trustee Form 1 4/22/2015 BSJ Draft Memorandum on Form 1 Filing 0.25 56.25 Review Form 225.00/hr Trustee Form 1 Trustee Form 1 5/1/2015 LG E -Mail to Trustees & Administrator re: Memorandum on Form 1 Filing 0.20 15.00 Trustee Form 1 75.00 /hr SUBTOTAL: [ 0.45 71.25] For professional services rendered 19.75 $3,251.25 Additional Charges : Bill File 5/15/2015 Postage 0.49 Copy Charges 108.00 SUBTOTAL: [ 108.49] Participant - Kenny 4/22/2015 Medical Records from Palm Beach Neurology (Ck# 1063) 68.00 Boynton Beach Police Officers' Pension Fund Page 8 Amount 5/1/2015 United Parcel Service Invoice No.: 0000F49280185 7.05 Tracking #1 ZF492804293865159 Pickup Request No.: 2924539A0A2 Re: Kenny Medical Records United Parcel Service Invoice No.: 0000F49280195 26.92 Tracking #1 ZF492802490775161 to Judy Geiger with HealthSouth Sunrise re: Medical Records United Parcel Service Invoice No.: 0000F49280195 10.96 Tracking #1 ZF492804293865159 to Paul Kelley, Esquire re: Medical Records 5/6/2015 FCE from Healthsouth Sunrise (Mastercard) — g_s ' / 682.00 SUBTOTAL: [ 794.93] Total additional charges $903.42 For professional services rendered 19.75 $4,154.67 Total amount of this bill 1,7 $4,154.67 Previous balance, 7$2 b8c,/,0;)) Balance due depi ' >11 tp 7 e 2 (3; a xe BURGESS CHAMBERS & ASSOCIATES, INC. Invoice INVESTMENT ADVISORS S.E.C. REGISTERED 315 E. Robinson Street, Suite 690 Date Invoice # Orlando, Florida 32801 6/10/2015 15 -163 Bill To Boynton Beach Police Officers' Pension Barbara La Due, Administrator 1500 Gateway Blvd, Suite 220 Boynton Beach, Florida 33426 Description Amount Second Quarter 2015 Investment and Performance Monitoring and Advisory Fee per Contract 6,250.00 Total $6,250.00 Phone # Fax # (407) 644-0111 (407) 644-0694 GRS Gabriel, Roeder, Smith & Company Consultants & Actuaries One East Broward Blvd. Invoice Suite 505 Ft. Lauderdale, Florida 33301 -1804 Date Invoice (954) 527-1616 7/7/2015 415258 Please Remit To: Bill To: Dept. # 78009 Attention: Ms. Barbara La Due Dep.el, Roeder, Smith &Company Pension Administrator pO Box 78000 Municipal Police Officers' Retirement Fund PO oi, Michigan 48278 0009 City of Boynton Beach Renaissance Executive Suites 1500 Gateway Blvd., Suite 220 Boynton Beach, Florida 33426 Federal Tax ID 38- 1691268 Amount.__. Client 100550_ - -__. — _. _ _._ -_- • For professional actuarial services rendered for the Boynton Beach Municipal Police Officers' Retirement Fund through 6/30/2015 225.00 Vested termination benefit calculation for Justin Harris Review of proposed Ordinance regarding eligibility provisions for disability retirement and 368.00 preparation of an actuarial no impact letter 3,000.00 Preparation of Chapter 112.664 Actuarial Compliance Report, including upload of required information to the State database $3,593 Amount Due PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. Page 1 of 1 Barbara Ladue From: Bonni Jensen <bonni @robertdklausner.com> Sent: Tuesday, July 28, 2015 2:19 PM To: 'Athol, Toby'; 'Llopis, Jason'; CaudellS @bbfl.us; degiulioj @bbfl.us; fainer @bbfl.us Cc: bsjteam; Barbara Ladue Subject: Boynton Beach Police Pension Fund - IRS Favorable Determination letter Attachments: 2015 IRS Determination letter - Boynton Beach Police (00061282).pdf Trustees, I am pleased to report that the Plan has received a favorable determination letter from the Internal Revenue Service regarding the Plan's tax qualification. See attached letter from the IRS. The determination letter can be relied upon through January 31, 2016. As you can see, the letter states the date of January 31, 2014 but that date was extended to January 31, 2016, by the IRS based on Revenue Procedure 2012 -50. IRS Rev. Proc. 2012 -50 states: This revenue procedure modifies Rev. Proc. 2007 -44, 2007 -2 C.B. 54, to provide that the sponsor of an individually designed governmental plan within the meaning of §414(d) ( "governmental plan ") may elect Cycle E (instead of Cycle C) as the second remedial amendment cycle for the plan by filing a determination letter application for the Fund during the one -year submission period for the second Cycle E (February 1, 2015 through January 31, 2016) instead of the second Cycle C (February 1, 2013 through January 31, 2014). This modification applies only to the second remedial amendment cycle. Additionally: .04. A determination letter issued to a sponsor of an individually designed governmental plan for the initial remedial amendment cycle ordinarily expires at the end of the second Cycle C (January 31, 2014), regardless of whether the sponsor elected Cycle E as the Fund's initial cycle in accordance with Rev. Proc. 2009 -36. This expiration date is hereby extended to the end of the second Cycle E (January 31, 2016) if the sponsor elects Cycle E as the Fund's second remedial amendment cycle in accordance with this revenue procedure. To continue reliance on a determination letter the fund will need to file again before January 31, 2016. We will discuss this matter at your upcoming meeting. To make sure that your email is handled in a timely manner, please copy BSJTeam @robertdklausner.com. Bonni S. Jensen Klausner, Kaufman, Jensen & Levinson 400 Executive Center Drive, #207 West Palm Beach, Florida 33401 Telephone: 561 - 686 -6550 bonni anrobertdklausner.com 1 'INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. O. BOX 2508 CINCINNATI, OH 45201 MAY 1 3 2015 Employer Identification Number: Date: 59- 6000282 DLN: CITY OF BOYNTON BEACH 17007036073029 C/O HANSON PERRY & JENSEN PA Person to Contact: BONNI S JENSEN JENNIFER M THIMMADASIAH ID# 31316 400 EXECUTIVE CENTER DR STE 207 Contact Telephone Number: WEST PALM BEACH, FL 33401 (513) 263 -4613 Plan Name: BOYNTON BEACH POLICE OFFICERS PENSION FUND Plan Number: 002 Dear Applicant: We have made a favorable determination on the plan identified above based on the information you have supplied. Please keep this letter, the application forms submitted to request this letter and all correspondence with the Internal Revenue Service regarding your application for a determination letter in your permanent records. You must retain this information to preserve your reliance on this letter. Continued qualification of the plan under its present form will depend on its effect in operation. See section 1.401- 1(b)(3) of the Income Tax Regulations. We will review the status of the plan in operation periodically. The enclosed Publication 794 explains the significance and the scope of this favorable determination letter based on the determination requests selected on your application forms. Publication 794 describes the information that must be retained to have reliance on this favorable determination letter. The publication also provides examples of the effect of a plan's operation on its qualified status and discusses the reporting requirements for qualified plans. Please read Publication 794. This letter relates only to the status of your plan under the Internal Revenue Code. It is not a determination regarding the effect of other federal' or local statutes. This determination letter gives no reliance for any qualification change that becomes effective, any guidance published, or any statutes enacted, after the issuance of the Cumulative List (unless the item has been identified in the Cumulative List) for the cycle under which this application was submitted. This letter may not be relied on after the end of the plan's first five -year remedial amendment cycle that ends more than 12 months after the application was received. This letter expires on January 31, 2014. This letter considered the 2007 Cumulative List of Changes in Plan Qualification Requirements. This determination letter is based solely on your assertion that the plan Letter 2002 5y�s' d { 'NZ Z -2- CITY OF BOYNTON BEACH is entitled to be treated as a Governmental plan under section 414(d) of the Internal Revenue Code. This determination letter is applicable to the plan and related documents submitted in conjunction with your application filed during the remedial amendment cycle ending 1/31/09. This is not a determination with respect to any language in the plan or any amendment to the plan that reflects Section 3 of the Defense of Marriage Act, Pub. L. 104, 110 stat. 2419 (DOMA) or U.S. v. Windsor, 570 U.S. 12 (2013), which invalidated that section. We have sent a copy of this letter to your representative as indicated in the Form 2848 Power of Attorney or appointee as indicated by the Form 8821 Tax Information Authorization. If you have questions concerning this matter, please contact the person whose name and telephone number are shown above. Sincerely, X /L.6/n_ Karen D. Truss Director, EP Rulings & Agreements Enclosures: Publication 794 Letter 2002 Introduction • r/V-i This publication explains the I � significance of a determination letter, points out some features that may affect the qualified Favorable status of an employee retirement plan and nullify the determination letter Determination specific notice from us, and provides general information on the Letter reporting requirements for the plan. Significance of a Favorable Publication 794 Determination Letter (January 2013) An employee retirement plan qualified under Internal Revenue Code (IRC) section 401(a) (qualified plan) is entitled to favorable tax treatment. For example, contributions made in accordance with the plan document are generally currently deductible. However, participants will not include these contributions in income until the time they receive a distribution from _ the plan. In some cases, taxation • may be further deferred by rollover to another qualified plan or individual _.... ......__.........._.._......... _ ............. retirement arrangement. (See Publication 575, Pension and Annuity Income, for further details.) Finally, plan eamings may accumulate tax • free. Employee retirement plans that fail to satisfy the requirements under IRC section 401(a) are not - — entitled to favorable tax treatment. . _ Therefore, many employers desire advance assurance that the terms of their plans satisfy the qualification requirements. The Internal Revenue Service (IRS) provides such advance assurance through the determination letter -- — -- - -- - W - program. A favorable determination letter indicates that, in the opinion of the IRS, the terms of the plan conform to the requirements of IRC section 401(a). A favorable determination letter expresses the • IRS's opinion regarding the form of the plan document. However, to be _-- __ -___ __ J a qualified plan under IRC section — 401(a) entitled to favorable tax treatment, a plan must satisfy, in both form and operation, the requirements of IRC section 401(a), including nondiscrimination and coverage Publication 794 (Rev. 1-2013) Catalog Number 20630M Department of the Treasury Internal Revenue Service www.irs.gov Publication 794 (January 2013) requirements. If elected, a favorable (Cumulative List). The Cumulative for determination or not disclosed on determination letter may also provide List identifies changes in the each application, certain limitations assurance that the plan satisfies qualification requirements that and requirements will not have been certain of these nondiscrimination the IRS will consider in reviewing considered on an aggregate basis. requirements in form. See the determination letter applications Therefore, the employer may not rely following topic, Limitations and Scope that are filed during the 12 -month on the determination letter regarding of a Favorable Determination Letter, "submission period" that begins on the plans when considered as a total for more details. the February 1st following publication package. of the applicable list. Limitations and Scope of • A determination letter does not a Favorable Determination A determination letter for an on -going consider the special requirements Letter individually designed plan is based relating to: (a) IRC section 414(m) on the Cumulative List in effect for (affiliated service groups), (b) IRC A favorable determination letter is the submission period in which the section 414(n) (leased employees), limited in scope. A determination determination letter application is filed or (c) a partial termination of a plan letter generally applies to qualification (that is, the "applicable Cumulative unless the application includes requirements regarding the form of List "). See sections 4, 13, and 14 requests that the letter consider such the plan. of Revenue Procedure 2007-44 for requirements. further details. Generally no reliance for • A determination letter does nondiscrimination requirements. Generally, a determination letter not consider whether actuarial Generally, a favorable determination issued to an adopting employer of a assumptions . are reasonable for letter does -not consider, and may not pre - approved volume submitter -plan funding or deduction purposes or be relied on with regard to whether a with minor modifications is based on whether a specific contribution is plan satisfies the nondiscrimination the list for which the volume submitter deductible. requirements of 1RC section 401(a) practitioner filed its application for (4). an advisory letter for the volume • A determination letter does not submitter specimen plan (that is, the express an opinion whether disability However, if elected by the applicant, "applicable Cumulative List,' in the benefits or medical care benefits are a determination letter may be case of a volume submitter plan). accident and health plan benefits relied on with respect to whether under IRC section 105 or whether the terms of the plan satisfy one of For terminating plans, a contributions are contributions by the design -based safe harbors in determination letter is based on the an employer to accident and health Regulation sections 1.401(a)(4)- law in effect at the time of the plan's plans under IRC section 106. 2(b) and 1.401(a)(4) -3(b), pertaining proposed date of. termination. See to the requirement that either the section 8 of Rev. Proc. 2007 -44. • A determination letter does not contributions or the benefits under a express an opinion on whether the qualified plan be nondiscriminatory in A favorable determination letter plan is a govemmental plan defined amount. generally may - net -be - relied on-for- any— in IR -- section 4 {rl). guidance published, or any statutes No reliance for coverage enacted, after the issuance of the • A determination letter does not requirements. "applicable Cumulative List" or for express an opinion on whether A favorable determination letter does any qualification requirements that contributions made to a plan not consider, and may not be relied become effective in a calendar year treated as a governmental plan on with regard to whether a plan after the calendar year in which the defined in IRC section 414(d) satisfies the minimum participation submission period begins, except constitute employer contributions requirements of IRC section 401(a) for guidance that is included in the under IRC section 414(h)(2), nor (26) and the minimum coverage "applicable Cumulative List." See on whether a governmental excess requirements of IRC section 410(b). section 4.03 of Rev. Proc. 2007 -44. benefit arrangement satisfies the requirements or IRC section 415(m). No reliance for changes in law Other limitations. In addition, and guidance subsequent to the following apply generally to all • A determination letter does not publication of the applicable determination letters: express an opinion on whether the Cumulative List. plan is a c hurch plan within th e er maintain two or meaning of section 414(e). • I t he employer g Every year, the IRS publishes a p y Cumulative List of Changes in more retirement plans, any of which Plan Qualification Requirements, were either not submitted to the IRS Page 2 Publication 794 (January 2013) Become familiar with the terms the six -year remedial amendment Actual deferral percentage or of the determination letter. Call cycle„ conditioned upon the timely contribution percentage tests. the contact person listed on the adoption of any necessary interim If this plan provides for cash or determination letter if any of the terms amendments as required by section deferred arrangements, employer in the determination letter are not 5.04 of Rev. Proc. 2007 -44. matching contributions, or employee understood. Also see Rev. Proc. 2011 -49, 2011 -44 contributions, the determination I.R.B. 609 sections 5.01 and 15.05. letter considers whether the terms Retention of Information. of the plan satisfy the requirements Whether a plan meets the Plan Must Qualify in specified in IRC section 401(k)(3) qualification requirements is Operation or 401(m)(2), in form. However the determined from the information • determination letter does not consider in the written plan document, Generally, a plan qualifies in whether special nondiscrimination the application form, and the operation if it satisfies the coverage tests described in IRC section 401(k) supporting information submitted and nondiscrimination requirements (3) or 401(m)(2) have been satisfied by the employer. Therefore, the and is maintained according to its in operation. employer must retain a copy of the terms. However, a plan generally • application, information submitted must be operated in a manner Reporting Requirements with the application and all other that satisfies any change in the correspondence. qualification requirements for the period beginning when the change Most plan administrators or plan Other Conditions for Reliance. is effective, even if the plan has not sponsors /employers who maintain We have not verified the information yet been amended for the change. an employee benefit plan must file submitted with application. The Changes in facts on which the a Form 5500 series annual retum/ determination letter will not provide determination letter was issued may report. reliance if: mean that the determination letter may no longer be relied upon. A `Final° Form 5500 series annual (1) there has been a misstatement return/report must be filed if the plan or omission of material facts, (for Some examples of the effect of is terminated. example, the application indicated a plan's operation on a favorable that the plan was a govemmental determination are: Form 5330 for prohibited plan and it was not a transactions. Transactions govemmental ) lan ; Contributions or benefits in between a plan and someone p excess of the limitations under iRC having a relationship to the plan (2), the facts subsequently developed section 415. A retirement plan may (disqualified person) are prohibited, are materially different than the not provide retirement benefits or, unless specifically exempted from facts on which the determination in the case of a defined contribution this requirement. A few examples was made; or plan, contributions and other annual are loans, sales and exchanges additions, that exceed the limitations of property, leasing of property, - (3) - there - is - a - change - in specified- in-IRC section- 415. -T-he furnishing- goods- er- serviees; and — law plan contains provisions designed use of plan assets by the disqualified to provide benefits within these person. Disqualified persons who Amendments to the plan for limitations. The plan is disqualified if engage in a prohibited transaction changes in law and guidance. A these limitations are exceeded. for which there is no exceptions must favorable determination letter issued file Form 5330 by the last day of the for an individually designed plan Top heavy minimums under iRC seventh month after the end of the provides reliance up to and including section 416. If this plan is top heavy tax year of the disqualified person. the expiration date identified on the in according with iRC 416, the determination letter. This reliance plan must provide certain minimum Form 5330 for tax on is conditioned upon the timely benefits and vesting for non - key nondeductible employer adoption of any necessary interim employees. If the plan provides the contributions to qualified plans - If amendments as required by section minimum benefits and accelerated contributions are made to this plan in 5.04 of Rev. Proc. 2007 -44. A vesting only for years during which excess of the amount deductible, a favorable determination letter issued the plan is top heavy, failure to tax may be imposed upon the excess to an adopting employer of a pre- identify such years and to provide the contribution. Form 5330 must be filed approved volume submitter plan with accelerated vesting and benefits will by the last day of the seventh month minor modifications provides reliance disqualify the plan. after the end of the employer's tax up to and including the last day of year. Page 3 Publication 794 (January 2013) Form 5330 for tax on excess (4) The plans must not have an contributions to cash or deferred unamortized waiver or unallocated arrangements or excess employee suspense account. contributions or employer matching contributions - If a Penalties will also not apply if the plan includes a cash or deferred assets transferred are less than three arrangement (IRC section 401(k)) or percent of the assets of the plan provides for employee contributions involved in the transfer (spinoff), and or employer matching contributions the transaction is not one of a series (IRC section 401(m)), then excess of two or more transfers (spinoff contributions that would cause transactions) that are, in substance, the plan to fail the actual deferral one transaction. percentage or the actual contribution percentage test are subject to a tax The purpose of the above unless the excess is eliminated within discussions is to illustrate some of 2 months after the end of the plan the principal filing requirements that year. Form 5330 must be filed by the apply to pension plans. This is not due date of the employer's tax retum an exclusive listing of all returns and for the plan year in which the tax was schedules that must be filed. incurred. Form 5330 for tax on reversions of plan assets - Under IRC section 4980, a tax is payable on the amount of almost any employer reversion of Wan assets. Form 5330 must be filed by the last day of the month following the month in which the reversion occurred. Form 53'1O -A for certain transactions - Under IRC section 6058(b), an actuarial statement is required at least 30 days before a merger, consolidation, or transfer (including spin -off) of assets to another plan. This statement is required for all plans. However, - penalties for non-filing will not apply to defiljed contribution plans for which: (1) The sum of the account balances in each plan equals the fair market value of all plan assets, (2) The assets of each plan are combined to form the assets of the plan as merged, (3) Immediately after a merger, -- _..._.. -. - - - -- . the account balance of each participant is equal to the sum of the account balances of the • participant immediately before the merger, and GRs 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 June 8, 2015 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 — No Impact AIS Dear Barbara: As requested, we have reviewed the attached draft Ordinance for the City of Boynton Beach Municipal Police Officers' Retirement Fund (Plan). This Ordinance would amend the Plan to clarify that only may P members of the Plan ma apply for disability benefits and to require members who are terminated for medical reasons to apply for disability benefits within 30 days of termination. In our opinion, this Ordinance would not have an actuarial impact on the cost of the Retirement System, so a formal Actuarial Impact Statement is not required. However, we recommend that you send a copy of this letter and the ordinance to the Bureau of Local Retirement Systems. The undersigned is a member of the American Academy of Actuaries and meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. The undersigned actuary is independent of the plan sponsor. We welcome your questions and comments. Sincerely yours, eter N. S ron FSA Senior Consultant and Ac Enclosure Circular 230 Notice: Pursuant to regulations issued by the IRS, to the extent this communication (or any attachment) concerns tax matters, it is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax - related penalties under the Internal Revenue Code or (ii) marketing or recommending to another party any tax - related matter addressed within. Each taxpayer should seek advice based on the individual's circumstances from an independent tax advisor. This communication shall not be construed to provide tax advice, legal advice or investment advice. i y Qm i KLAUSNER KAUFMAN: JENSEN 8 . LEVINSON ili A PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS ATTORNEYS AT LAW Reply to: 400 Executive Center Drive Suite 207 West Palm Beach, Florida 33401 Telephone: (561)686 -6550 Facsimile: (561)686 -2802 bonniArobertdklausner.com May 19, 2015 VIA EMAIL TRANSMISSION Peter Strong, Senior Consultant & Actuary Gabriel, Roeder, Smith & Company One East Broward Boulevard, Suite 505 Fort Lauderdale, FL 33301 Re: Boynton Beach Police Officers' Pension Fund Actuarial Impact Statement Our File No.: 0188 Dear Pete: As you know, this office is the legal counsel to the Boynton Beach Police Officers' Pension Fund ( "Plan "). Attached please find an amendment to the plan allowing a member who is terminatedfor medical reasons to file for disability within 30 days and clarifying that terminated members are not eligible. Please prepare an impact statement. I am not anticipating that this will have a cost. If you have any questions, please do not hesitate to contact me. Sincerely yours, 3 0 (,) Bonni S. Jensen BSJ /pah Enclosure E -Copy: Chairman /Administrator Secretary H: \BB Police 0188 \Plan Doc\Amend\2015\2015 -05 -19 CvrLtr to GRS to request AIS.wpd 7080 NORTHWEST 4TH STREET, PLANTATION, FLORIDA 33317 PHONE: (954) 916 -1202 • FAX: (954) 916 -1232 www.robertdklausner.com 13.B. LEGAL 5/19/2015 rr- • CITY OF BOYNTON BEACH AGENDA ITEM REQUEST FORM COMMISSION MEETING DATE: 5/1912015 REQUESTED ACTION BY COMMISSION: PROPOSED ORDINANCE NO. 15 -014 - Approve Ordinance amending Article III of Chapter 18, Section 18 -169, Requirements for retirement - benefit amounts to provide for clarification to apply for disability benefit. EXPLANATION OF REQUEST: The City received a letter from Bonni S. Jensen, Attorney for the City of Boynton Beach Police Officers' Pension Fund requesting that the City Commission consider this amendment to the amend the Police Pension Plan Document, Section 18 -169. The Trustees of the Police Officers' Pension Fund requests that Section 18 -169 be amended to clarify that to apply for a disability benefit under the plan, an employee must be a member of the plan or within in 30 days from being terminated from employment for medical reasons. HOW WILL THIS AFFECT CITY PROGRAMS OR SERVICES? The Board of Trustees of the Boynton Beach Police Officers' Retirement Trust Fund recommends this language change to clarify that only members may apply for disability pension and to amend the Plan to provide that a member who is terminated for medical reasons can apply within 30 days of termination. FISCAL IMPACT: Non- budgeted According to the transmittal letter the pension plan will provide an impact statement from the actuary concerning this amendment. Per the Plan's attorney's transmittal letter it is expected that this language change will not have a cost impact. • ALTERNATIVES: Do not pass the requested amendment. STRATEGIC PLAN: STRATEGIC PLAN APPLICATION: CLIMATE ACTION: No CLIMATE ACTION DISCUSSION: Is this a grant? No Grant Amount: Page 425 of 445 1 ORDINANCE 15- 2 3 AN ORDINANCE OF THE CITY OF BOYNTON BEACH, FLORIDA, 4 AMENDING ARTICLE III, OF CHAPTER 18 OF THE BOYNTON 5 BEACH CODE OF ORDINANCES, ENTITLED "MUNICIPAL POLICE 6 OFFICERS' RETIREMENT TRUST FUND ;" AMENDING SECTION 7 18469 PROVIDING FOR CLARIFICATION THAT TO APPLY FOR 8 THE DISABILITY BENEFIT AN EMPLOYEE MUST BE A MEMBER 9 AND TO AMEND THE PLAN TO PROVIDE FOR A 30 DAY PERIOD 10 TO APPLY IN THE EVENT A MEMBER IS TERMINATED FROM 11 EMPLOYMENT FOR MEDICAL REASONS; PROVIDING FOR 12 CODIFICATION, CONFLICT, SEVERABILITY AND AN EFFECTIVE I3 DATE. 14 15 16 WHEREAS, the Board of Trustees ( "Trustees ") of the Boynton Beach Municipal 17 Police Officers' Retirement Trust Fund recommend that the Plan Document be amended to 18 clarify that the only members may apply for a disability pension and to amend the Plan to 19 provide that a member who is terminated for medical reasons can apply within 30 days of 20 termination; and 21 WHEREAS, the City Commission of the City of Boynton Beach, Florida, desires to 22 revise its Police Officers' Plan in order to provide this administrative change; 23 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE 24 CITY OF BOYNTON BEACH, FLORIDA: 25 Section 1. The foregoing "WHEREAS" clauses are hereby certified as being true 26 and correct and are incorporated herein by this reference. 27 Section 2. Section 18 -169 of Article III of Chapter 18 of the Boynton Beach Code 28 of Ordinances is hereby amended as follows: 29 Sec. 18 -169. Requirements for retirement- benefit amounts. 30 31 * * * 1 Page 427 of 445 55 only, and future increases, if any in the disabled member's social 56 security disability benefits shall not serve to reduce any further the 57 disability benefit from the fund. The reduction for social security shall 58 terminate upon the attainment of age 65. The pension benefit may only 59 be reduced to the extent that the total of the benefits from this fund, 60 workers' compensation and social security benefits exceed 100% of the 61 disabled member's basic rate of earnings on the date of disability. 62 However, in all cases the benefit will be at least 42% of average final 63 compensation. 64 J. , Terminated persons, either vested or non - vested, ar not el'gible for 65 disability benefits, except a. , • • • u • 4 : 9• I • • . It -14 • 66 reasons ma : + for a disability witki • - s • • 14 • , : • , I 67 X13 Any condition or impairment of health of a member caused by tuberculosis; 68 hypertension, heart disease, hardening of the arteries, hepatitis, or 69 meningococcal meningitis resulting in total or partial disability or death, shall 70 be presumed to be accidental and suffered in the line of duty unless the 71 contrary be shown by competent evidence. Any condition or impairment of 72 health caused directly or proximately by exposure, which exposure occurred in 73 the active performance of duty at some definite time or place without willful 74 negligence on the part of the member, resulting in total or partial disability, 75 shall be presumed to be accidental and suffered in the line of duty, provided 76 that such member shall have successfully passed a physical examination upon 77 entering such service, which physical examination including electrocardiogram 3 Page 429 of 445 101 that 1bose terminated by the city fox medical reasons may apply for a 102 disabili , ithin 30. ys after termination, 103 Section 3. It is the intention of the City Commission of the City of Boynton Beach 104 that the provisions of this Ordinance shall become and be made a part of the Code of 105 Ordinances of the City of Boynton Beach, Florida. The Sections of this ordinance may be 106 renumbered, re- lettered and the word "Ordinance" may be changed to "Section," "Article" or 107 such other word or phrase in order to accomplish such intention. 108 Section 4. All Ordinances or parts of Ordinances, Resolutions or parts of 109 Resolutions in conflict herewith be and the same are hereby repealed to the extent of such 110 conflict. 111 Section 5. If any clause, section, or other part or application of this Ordinance 112 shall be held by any court of competent jurisdiction to be unconstitutional or invalid, such 113 unconstitutional or invalid part or application shall be considered as eliminated and so not 114 effecting the validity of the remaining portions or applications remaining in full force and 115 effect. 116 Section 6. This Ordinance shall become effective when the following have 117 occurred: 118 (a) the City Commission has received and has accepted a report establishing the 119 actuarial soundness of these amendments; 120 (b) a copy of this Ordinance has been sent to the Florida Division of Retirement; 121 and 122 (c} when a collective bargaining agreement ratifying the foregoing changes to 123 pension benefits has been ratified by the City Commission and the Municipal 5 Page 431 of 445 KLAUSNER KAUFMAN JENSEN >) 1 q LEVINSON, ve A PARTNERS}!IF Of PROFESSIONAL. ASSOCIATIONS ATTORNEYS AT LAW Reply to: 400 Executive Center Drive Suite 207 West Palm Beach, Florida 33401 Telephone: (561)686 -6550 Facsimile: (561)686 -2802 bonni@robertdklausner.com May 5, 2015 VIA EMAIL TRANSMISSION Lori LaVerriere, City Manager City of Boynton Beach 100 East Boynton Beach Boulevard Boynton Beach, Florida 33425 Re: Boynton Beach Police Officers' Pension Fund Ordinance to Amend Plan Document Our File No.: 0188 Dear Lori: On behalf of the Board of Trustees of the Boynton Beach Police Officers' Pension Fund ( "Fund "), attached is an ordinance to amend the Pension Plan Document at Section 18 -169 to provide for clarification that to apply for a disability benefit, an employee must be a member and to amend the plan to provide for a 30 day period to apply in the event a member is terminated from employment for medical reasons. The Trustees would like to have this amendment considered by the City Commission. I will provide the impact statement upon receipt. It is expected that this language change will not have a cost impact. If you have any questions regarding this or any other matter, please do not hesitate to contact my office. Sin _ -rely yours, BSJ:pah Bonni S. Jensen Enclosure E -Copy to: Hoard of Trustees Administrator H :lBB Police 0188\Plan DOclAmend\201512015 - 05 - 05 Lb to City re amend.wpd 7080 NORTHWEST 4TH STREET, PLANTATION, FLORIDA 33317 PHONE: (954) 916 -1202 • FAX: (954) 916 -1232 www.robertdklausner.com Page 433 of 44 I I E KLAUSNER riFiL KALI N1AN IENSEN LEVIMON 1 1' .! I NI: Md :q ! 11)`.:1:. \ 111)1'I ` l T!)' -:, MEMORANDUM To: All Florida Pension Clients From: Klausner Kaufman Jensen & Levinson Re: Reminder of pending deadlines Date: July 8, 2015 The purpose of this update is to remind all Florida defined benefit pension plans of the pending deadlines to comply with recent legislation, including SB 534 (otherwise known as "Chapter 2013 - 100 "). Additional requirements for police and firefighter pension plans were adopted by SB 172. By way of background, SB 534 created Section 112.664, Florida Statutes, which contains extensive new reporting requirements. The regulations implementing SB 534 were finalized by the Division of Retirement on April 29, 2015 when Chapter 60T- 1.0035, Florida Administrative Code, went into effect. As a result, the following requirements apply to all Florida governmental defined benefit plans: • 112.664 Compliance Report (otherwise known as the "Rule 60T- 1.0035 Report") indicating number of years that the plan's current market value of assets can sustain payment of retirement benefits without additional contributions, along with other required data: I Prepared by: Actuary (who will load the Report onto the Division of Retirement's website); Due: 60 days after approval of actuarial valuation, or June 29 (for plans who approved their valuations prior to April 29) and annually thereafter; Post: on plan sponsor website and plan's website; Required by: Section 112.664(1)(a) -(d). 7080 NORTHWEST 4TH STREET, PLANTATION, FLORIDA 33317 PHONE: (954) 916 -1202 • FAX: (954) 916 -1232 www.robertdklausner.com • Investment history - Side -by -Side comparison of actual rate of return, assumed rate of return, and investment portfolio composition (cash, equity, bond, alternative investments) beginning with 2013 data: Prepared by: Investment consultant; Due: Annually; Post: on plan sponsor website and plan's website; Required by: Section 112.664(2)(b)(2). • Actuarial valuation (otherwise known as "actuarial report"): Prepared by: Actuary; Due: At least every three years (most plans perform annual valuations); Post: on plan sponsor website and plan's website; Required by: Section 112.63(2) and 112.664(2)(b)1. • Audited financial statements (otherwise known as "audit "): b Prepared by: Auditor; p Y Due: Annually for police and fire plans; Post: on plan sponsor website and plan's website; Required by: Section 112.664(2)(b)1. • Link to Division of Retirement's Summary Fact Sheet: Prepared by: Division of Retirement; Due: Updated annually by Division of Retirement; Post: on plan sponsor website and plan's website; Required by: Section 1112.664(2)(b)1 & 112.665(1)(e). Additional requirements for Police and Fire Plans under SB 172: • "Detailed Accounting Report ": Our office recommends treating the audited financial statements described above as the new detailed accounting report. We also recommend SfP amending your summary plan description to provide that the detailed accounting report and administrative expense budget are available upon request from the Administrator. kr d , • "Administrative Expense Budget ": Prepared by: Administrator; Due: Prior to beginning of the fiscal year (prior to October 1 for most plans); t „.� Post: Not required to be posted, but required to be "made available” to the plan ° � sponsor and plan membership; Required by: Section 175.061(8)(a)1 and 185.05(8)(a)2. Summary All Florida governmental defined benefit plans are reminded of the new reporting compliance deadlines under SB 534, which are codified in Section 112.664, Florida Statutes, and Chapter 60T- 1.0035, Florida Administrative Code. In particular, your 112.664 Compliance Report is due 60 days after approval of this year's actuarial valuation (or was due on June 29 for plans who approved their valuations prior to April 29). Our office is available to answer any questions. Barbara Ladue From: Barbara Ladue <ladueb @bbpdpension.com> Sent: Tuesday, June 23, 2015 10:16 AM To: karjalainena @bbfl.us Cc: 'Athol, Toby'; Bonni Jensen (bonni @robertdklausner.com); Pete.Strong @gabrielroeder.com; Richard Cristini; Pat Holt (bsjteam @robertdklausner.com) Subject: Boynton Police Pension - Required Reports /Disclosures for City's WebSite We need to place these Police Pension items on the City's website since we do not have a website for the Police Pension. There are 4 reports that pertain to the Police Pension (same as the Fire Pension) that I will forward under separate Emails with PDF files attached. These reports are as follo/yvs.3�, r " , �,` 1) Chapter 112.664, F.S. Compliance Report ,y.tti,a „t, � 0-1.'i 2) Actuarial Valuation Report 10 -01 -2014 3) Financial Statements — September 30, 2014 & 2013 4) Asset Allocation by Segments along with Five Year History of Returns (Growth of a Dollar Analysis) Four separate Emails will follow. These are new rules and regulations pertaining to Florida Pension Funds and need to be placed on the Website by June 29, 2015. Hopefully everything to process smoothly. Thanks. B rbLa, Pension Administrator Boynton Beach Police & Fire Pension Funds Phone: (561) 739.7972 1 Barbara Ladue From: Pete.Strong @gabrielroeder.com Sent: Tuesday, June 23, 2015 10:18 AM To: KarjalainenA @bbfl.us; ladueb @bbpdpension.com Cc: HendersonL @bbfl.us; adam @robertdklausner.com; rcristin @tampabay.rr.com Subject: RE: Boynton Fire Pension - Required Reports /Disclosures for City's WebSite There is one more thing to include on the website... a link to the Division of Retirement's fact sheet for the pension plan which shows this disclosure information. This cannot be completed until after the DOR posts the information though. Thanks! -Pete Strong From: Karjalainen, Alan [mailto:KarjalainenAC&bbfl.us] Sent: Tuesday, June 23, 2015 9:13 AM To: 'Barbara Ladue' Cc: Henderson, Luke; Adam Levinson; Strong, Pete (FLP1); Richard Cristini Subject: RE: Boynton Fire Pension - Required Reports /Disclosures for City's WebSite OK. Thank you. _ __ _ _____ Alan Karjalainen, Web Design Coordinator Information Technology Services City of Boynton Beach 100 E. Boynton Beach Blvd. 1 Boynton Beach, Florida 33435 o: 561 - 742 -6072 KarjalainenA®bbfl.us 1 www.boynton- beach.org America's Gateway to the Gulfstream Please be advised that Florida has a broad public records law and all correspondence to me via email may be subject to disclosure.Under Florida records law, email addresses are public records. Therefore, your e -mail communication and your e-mail address may be subject to public disclosure. From: Barbara Ladue [mailto:Iadueb@bbpdpension.com] Sent: Tuesday, June 23, 2015 9:11 AM To: Karjalainen, Alan Cc: Henderson, Luke; Adam Levinson; Pete.Strong©gabrielroeder.com; Richard Cristini Subject: Boynton Fire Pension - Required Reports /Disclosures for City's WebSite Allen: Since the Fire Pension does not have it's own website these required reports and disclosures will need to be placed on the City's website. There are 4 reports that I will forward under separate Emaiis with PDF files attached. The reports are as follows: Barbara Ladue From: Barbara Ladue <ladueb @bbpdpension.com> Sent: Tuesday, June 23, 2015 10:16 AM To: karjalainena @bbfl.us Cc: 'Athol, Toby'; Bonni Jensen (bonni @robertdklausner.com); Pete.Strong @gabrielroeder.com; Richard Cristini; Pat Holt (bsjteam @robertdklausner.com) Subject: Boynton Police Pension - Required Reports /Disclosures for City's WebSite ci e-1:" We need to place these Police Pension items on the City's website since we do not have a website for the Police Pension. There are 4 reports that pertain to the Police Pension (same as the Fire Pension) that I will forward under separate Emails with PDF files attached. These reports are as folio s• 1) Chapter 112.664, F.S. Compliance Report — ' 4 q- f 2) Actuarial Valuation Report 10 -01 -2014 3) Financial Statements — September 30, 2014 & 2013 4) Asset Allocation by Segments along with Five Year History of Returns (Growth of a Dollar Analysis) Four separate Emails will follow. These are new rules and regulations pertaining to Florida Pension Funds and need to be placed on the Website by June 29, 2015. Hopefully everything to process smoothly. Thanks. Barb La Due Pension Administrator Boynton Beach Police & Fire Pension Funds Phone: (561) 739.7972 1 Barbara Ladue From: Bonni Jensen <bonni @robertdklausner.com> Sent: Wednesday, July 15, 2015 12:29 PM To: ladueb @bbpdpension.com Cc: AtholT @bbfl.us; Llopisi @bbfl.us; bsjteam Subject: Boynton Beach Police Pension Fund - Administrative Expense Budget Attachments: sample adminstrative expense budget.xlsx Barbara, During the most recent legislative session, a new reporting requirement was established for the Board. The new law (SB 172) provides that the Board needs to create an administrative expense budget. The administrative expenses are defined in the statute as: "expenses relating to any legal counsel, actuary, plan administrator, and all other consultants, and all travel and other expenses paid to or on behalf of the members of the board of trustees or anyone else on behalf of the plan." See full text of the law below. The Board needs to adopt an administrative expense budget at the August 11, 2015 meeting. The budget is only expenses. Attached is a sample that was prepared for another fund. The actual fund expenses for last year should be a part of the annual report that was filed this year with the Municipal Police and Fire Pension Office and the last page of your 9/30/14 Financial Statements. I recommend that the budgeted amount be at least a 5 -10% increase over the last year's expenses. The miscellaneous category can be used to transfer to other budget line items since there can be unexpected expenses. The budget needs to be completed, filed with the Town, and made available to the members before October 1, 2015. Your Audit provides a detailed accounting of administrative expenses which meets the other reporting requirement under the law. Finally, both of these reports (detailed accounting of administrative expenses and the budget) need to be filed with the Town and "made available" to the members of the fund. Please give me a call if you want to discuss in further detail. 175.061/185.05 Board of trustees; members; terms of office; meetings; legal entity; costs; attorney's fees. — For any municipality, special fire control district, chapter plan, local law municipality, local law special fire control district, or local law plan under this chapter: (8)(a) The board of trustees shall: 1. Provide a detailed accounting report of its expenses for each fiscal year to the plan sponsor and the Department of Management Services and make the report available to each member of the plan and post the report on the board's website, if the board has a website. The report must include all administrative expenses that, for purposes of this subsection, are expenses relating to any legal counsel, actuary, plan administrator, and all other consultants, and all travel and other expenses paid to or on behalf of the members of the board of trustees or anyone else on behalf of the plan. 2. Operate under an administrative expense budget for each fiscal year, provide a copy of the budget to the plan sponsor, and make available a copy of the budget to plan members before the beginning of the fiscal year. If the board of trustees amends the administrative expense budget, the board must provide a copy of the amended budget to the plan sponsor and make available a copy of the amended budget to plan members. To make sure that your email is handled in a timely manner, please copy BSJTeam@ robertdklausner.com. Bonni S. Jensen Klausner, Kaufman, Jensen & Levinson 400 Executive Center Drive, #207 West Palm Beach, Florida 33401 Telephone: 561 -686 -6550 bonni KAUFMAN f JENSEN LE4 1i1lolll 7080 N.W. 4 Street Plantation, Florida 33317 Telephone: 954 - 916 -1202 Facsimile: 954 - 916 -1232 Disclaimer: This e -mail is intended only for the individual(s) or entity(s) named within the message. This e -mail might contain legally privileged and confidential information. If you properly received this e -mail as a client or retained expert, please hold it in confidence to protect the attorney - client or work product privileges. Should the intended recipient forward or disclose this message to another person or party, that action could constitute a waiver of the attorney - client privilege. If the reader of this message is not the intended recipient, or the agent responsible to deliver it to the intended recipient, you are hereby notified that any review, dissemination, distribution or copying of this communication is prohibited by the sender and to do so might constitute a violation of the Electronic Communications Privacy Act, 18 U.S.C. section 2510 -2521. If this communication was received in error we apologize for the intrusion. Please notify us by reply e -mail and delete the original message. Nothing in this e -mail message shall, in and of itself, create an attorney - client relationship with the sender. 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. 2 Prior Year % Total Next Fiscal % Total Account Description Actual Expense Admin Year Budget Budget Plan Expense: Service Providers: Actuary $$$$$$$ % $$$$$$ + %inc % Administrator $$$$$$$ % $$$$$$ + % inc % Auditor/ Accounting $$$$$$$ % $$$$$$ + % inc % Attorney/ Legal $$$$$$$ % $$$$$$ + % inc % Custodian $$$$$$$ /o $$$$$$ + % inc % Investment Consultant $$$$$$$ % $$$$$$ + % inc % Subtotal: Other Plan Expenses: $$$$$$$ % $$$$$$ + % inc % Dues and Subscriptions $$$$$$$ % $$$$$$ + % inc % Insurance $$$$$$$ % $$$$$$ + % inc % Miscellaneous Expenses $$$$$$$ % $$$$$$ + % inc % Travel & Education $$$$$$$ % $$$$$$ + % inc % Subtotal: TOTAL: 100% 100% Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.1616 phone GRs Consultants & Actuaries Suite 505 954.525.0083 fax Ft. Lauderdale, FL 33301 -1804 www.gabrielroeder.com June 26, 2015 Ms. Barbara LaDue Pension Administrator Renaissance Executive Suites 1500 Gateway Blvd., #220 Boynton Beach, FL 33426 Re: City of Boynton Beach Municipal Police Officers' Retirement Fund Dear Barbara: Enclosed is the REVISED Chapter 112.664, Florida Statutes Compliance Report for the City of Boynton Beach Municipal Police Officers' Retirement Fund in connection with the October 1, 2014 Funding Actuarial Valuation Report and the Plan's Financial Reporting for the Year Ending September 30, 2014. This report has been revised after receiving recent guidance from the Division of Retirement that the benefit payment projection should be based only on benefits accrued through the valuation date. A Zink to this report, as well as links to the October 1, 2014 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, eter N. Strong, FSA / Senior Consultant and Actuary PS /ib Enclosure G IR.S Gabriel Roeder Smith & Company Consultants & Actuaries CITY OF BOYNTON BEACH MUNICIPAL POLICE OFFICERS' RETIREMENT FUND Chapter 112.664, F.S. Compliance Report In Connection with the October 1, 2014 Funding Actuarial Valuation Report And the Plan's Financial Reporting for the Year Ending September 30, 2014 GRS I III I I i Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.1616 phone Consultants & Actuaries Suite 505 954.525.0083 fax 1 GRS Ft. Lauderdale, FL 33301 -1804 www.gabrielroeder.com June 26, 2015 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, 2014. 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, fmancial 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 m our October 1, 2014 actuarial valuation report. This report is also based on the Plan Provisions, census data, and fmancial information as summarized in our October 1, 2014 actuarial valuation report. Please refer to the October 1, 2014 actuarial valuation report, dated March 6, 2015, 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. The undersigned 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, ROEDER, SMITH AND COMPANY By /,off - ' .. • / By Peter N. Strong, FSA, FC / : , MAAA rey Amrose, AAA Enrolled Actuary No. 14,4.975 Enrolled Actuary No. 14 -06599 Senior Consultant & Actuary Senior Consultant & Actuary Gabriel Roeder Smith & Company it 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 1. Using funding assumptions 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, 2014 1. Total pension liability a. Service Cost $ 2,809,815 b. Interest 8,234,704 c. Benefit Changes - d. Difference between actual & expected experience & Other 126,019 e. Assumption Changes f. Benefit Payments (5,477,189) g. Contribution Refunds (42,665) h. Net Change in Total Pension Liability 5,650,684 i. Total Pension Liability - Beginning 106,132,387 j. Total Pension Liability - Ending $ 111,783,071 2. Plan Fiduciary Net Position a. Contributions - Employer $ 4,159,736 b. Contributions - Non - Employer Contributing Entity 645,579 c. Contributions - Member 911,375 d. Net Investment Income 7,154,203 e. Benefit Payments (5,477,189) f. Contribution Refunds (42,665) g. Administrative Expense (125,126) h. Other 28,186 i. Net Change in Plan Fiduciary Net Position 7,254,099 j. Plan Fiduciary Net Position - Beginning 69,027,966 k. Plan Fiduciary Net Position - Ending $ 76,282,065 3. Net Pension Liability / (Asset) 35,501,006 Certain Key Assumptions Valuation Date 10/01/2013 Measurement Date 09/30/2014 Investment Retum Assumption 7.75% Mortality Table 40% 83GAM, 60% 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, 2014 1. Total pension liability a. Service Cost $ 2,862,517 b. Interest 8,368,982 c. Benefit Changes - d. Difference between actual & expected experience & Other 126,019 e. Assumption Changes - f. Benefit Payments (5,477,189) g. Contribution Refunds (42,665) h. Net Change in Total Pension Liability 5,837,664 i. Total Pension Liability - Beginning 107,812,300 j. Total Pension Liability - Ending $ 113,649,964 2. Plan Fiduciary Net Position a. Contributions - Employer $ 4,159,736 b. Contributions - Non - Employer Contributing Entity 645,579 c. Contributions - Member 911,375 d. Net Investment Income 7,154,203 e. Benefit Payments (5,477,189) f. Contribution Refunds (42,665) g. Administrative Expense (125,126) h. Other 28,186 i. Net Change in Plan Fiduciary Net Position 7,254,099 j. Plan Fiduciary Net Position - Beginning 69,027,966 k. Plan Fiduciary Net Position - Ending $ 76,282,065 3. Net Pension Liability / (Asset) 37,367,899 Certain Key Assumptions Valuation Date 10/01/2013 Measurement Date 09/30/2014 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, 2014 1. Total pension liability a. Service Cost $ 4,411,069 b. Interest 7,854,344 c. Benefit Changes - d. Difference between actual & expected experience & Other 326,537 e. Assumption Changes - f. Benefit Payments (5,477,189) g. Contribution Refunds (42,665) h. Net Change in Total Pension Liability 7,072,096 i. Total Pension Liability - Beginning 134,874,171 j. Total Pension Liability - Ending $ 141,946,267 2. Plan Fiduciary Net Position a. Contributions - Employer $ 4,159,736 b. Contributions - Non - Employer Contributing Entity 645,579 c. Contributions - Member 911,375 d. Net Investment Income 7,154,203 e. Benefit Payments (5,477,189) f. Contribution Refunds (42,665) g. Administrative Expense (125,126) h. Other 28,186 i. Net Change in Plan Fiduciary Net Position 7,254,099 j. Plan Fiduciary Net Position - Beginning 69,027,966 k. Plan Fiduciary Net Position - Ending $ 76,282,065 3. Net Pension Liability / (Asset) 65,664,202 Certain Key Assumptions Valuation Date 10/01/2013 Measurement Date 09/30/2014 Investment Retum 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(1Xb), F.S. except 2% higher investment return assumption Fiscal year ending September 30, 2014 1. Total pension liability a. Service Cost $ 1,918,768 b. Interest 8,601,421 c. Benefit Changes - d. Difference between actual & expected experience & Other (74,499) e. Assumption Changes - f. Benefit Payments (5,477,189) g. Contribution Refunds (42,665) h. Net Change in Total Pension Liability 4,925,836 i. Total Pension Liability - Beginning 88,988,891 j. Total Pension Liability - Ending $ 93,914,727 2. Plan Fiduciary Net Position a. Contributions - Employer $ 4,159,736 b. Contributions - Non - Employer Contributing Entity 645,579 c. Contributions - Member 911,375 d. Net Investment Income 7,154,203 e. Benefit Payments (5,477,189) f. Contribution Refunds (42,665) g. Administrative Expense (125,126) h. Other 28,186 i. Net Change in Plan Fiduciary Net Position 7,254,099 j. Plan Fiduciary Net Position - Beginning 69,027,966 k. Plan Fiduciary Net Position - Ending $ 76,282,065 3. Net Pension Liability / (Asset) 17,632,662 Certain Key Assumptions Valuation Date 10/01/2013 Measurement Date 09/30/2014 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 the Plan's Latest Actuarial Valuation Market Value of Expected Projected Benefit Market Value of FYE Assets (BOY) Investment Return Payments Assets (EOY) 2015 65,652,095 4,884,563 5,250,941 65,285,717 2016 65,285,717 4,853,511 5,319,534 64,819,695 2017 64,819,695 4,808,376 5,552,269 64,075,802 2018 64,075,802 4,738,610 5,864,900 62,949,512 2019 62,949,512 4,642,321 6,097,190 61,494,643 2020 61,494,643 4,517,671 6,404,228 59,608,086 2021 59,608,086 4,362,613 6,632,617 57,33 8,082 2022 57,338,082 4,174,844 6,938,259 54,574,667 2023 54,574,667 3,950,960 7,189,081 51,336,546 2024 51,336,546 3,689,946 7,448,676 47,577,817 2025 47,577,817 3,384,126 7,823,352 43,138,591 2026 43,138,591 3,032,039 8,031,018 38,139,612 2027 38,139,612 2,633,954 8,306,206 32,467,360 2028 32,467,360 2,191,153 8,388,833 26,269,680 2029 26,269,680 1,705,838 8,517,736 19,457,782 2030 19,457,782 1,176,435 8,555,939 12,078,279 2031 12,078,279 605,324 8,535,282 4,148,322 2032 4,148,322 - 8,527,005 - 2033 - - 8,481,694 - 2034 - - 8,423,082 - 2035 - - 8,294,791 - 2036 - - 8,179,990 - 2037 - - 8,032,333 - 203 8 - - 7,876,251 - 2039 - - 7,707,739 - 2040 - - 7,530,138 - Number of years for which current market value of assets is 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: 17.50 Certain Key Assumptions Valuation Investment return assumption 7.75% Valuation Mortality Table 20% 83GAM, 80% RP2000 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 • 1• 6 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions required under 112.664(1)(a), F.S. Market Value of Expected Projected Benefit Market Value of FYE Assets (BOY) Investment Return Payments Assets (EOY) 2015 65,652,095 4,884,545 5,251,427 65,285,213 2016 65,285,213 4,853,382 5,321,862 64,816,733 2017 64,816,733 4,807,974 5,556,717 64,067,990 2018 64,067,990 4,737,741 5,871,690 62,934,041 2019 62,934,041 4,640,761 6,106,504 61,468,298 2020 61,468,298 4,515,159 6,416,375 59,567,082 2021 59,567,082 4,358,840 6,647,983 57,277,939 2022 57,277,939 4,169,442 6,957,363 54,490,019 2023 54,490,019 3,943,493 7,212,470 51,221,042 2024 51,221,042 3,679,922 7,476,357 47,424,606 2025 47,424,606 3,370,962 7,856,635 42,93 8,933 2026 42,938,933 3,015,078 8,069,396 37,884,616 2027 37,884,616 2,612,459 8,350,938 32,146,136 2028 32,146,136 2,164,258 8,440,448 25,869,946 2029 25,869,946 1,672,589 8,576,316 18,966,218 2030 18,966,218 1,135,781 8,621,957 11,480,043 2031 11,480,043 556,121 8,608,565 3,427,599 2032 3,427,599 - 8,608,570 - 2033 - - 8,571,182 - 2034 - - 8,521,046 - 2035 - - 8,402,300 - 2036 - - 8,296,166 - 2037 - - 8,158,024 - 2038 - - 8,010,821 - 2039 - - 7,851,887 - 2040 - - 7,683,466 - Number of years for which current market value of assets is 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: 17.42 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 expected to be able to sustain the benefit payment demands in the near -term and long -term future. GRS I 7 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions required under 112.664(1)(6), F.S. Market Value of Expected Projected Benefit Market Value of FYE Assets (BOY) Investment Return Payments Assets (EOY) 2015 65,652,095 3,624,017 5,251,427 64,024,685 2016 64,024,685 3,528,416 5,321,862 62,231,239 2017 62,231,239 3,418,541 5,556,717 60,093,063 2018 60,093,063 3,286,540 5,871,690 57,507,912 2019 57,507,912 3,131,143 6,106,504 54,532,552 2020 54,532,552 2,951,151 6,416,375 51,067,328 2021 51,067,328 2,745,242 6,647,983 47,164,587 2022 47,164,587 2,511,940 6,957,363 42,719,164 2023 42,719,164 2,248,993 7,212,470 37,755,688 2024 37,755,688 1,956,007 7,476,357 32,235,337 2025 32,235,337 1,627,654 7,856,635 26,006,355 2026 26,006,355 1,263,370 8,069,396 19,200,330 2027 19,200,330 863,929 8,350,938 11,713,321 2028 11,713,321 430,853 8,440,448 3,703,725 2029 3,703,725 - 8,576,316 - 2030 - - 8,621,957 - 2031 - - 8,608,565 - 2032 - - 8,608,570 - 2033 - - 8,571,182 - 2034 - - 8,521,046 - 2035 - - 8,402,300 - 2036 - - 8,296,166 - 2037 - - 8,158,024 - 2038 - - 8,010,821 - 2039 - - 7,851,887 - 2040 - - 7,683,466 - Number of years for which current market value of assets is 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: 14.42 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) 2015 65,652,095 6,145,072 5,251,427 66,545,740 2016 66,545,740 6,228,769 5,321,862 67,452,647 2017 67,452,647 6,305,743 5,556,717 68,201,673 2018 68,201,673 6,363,418 5,871,690 68,693,402 2019 68,693,402 6,399,915 6,106,504 68,986,812 2020 68,986,812 6,413,416 6,416,375 68,983,854 2021 68,983,854 6,401,837 6,647,983 68,737,708 2022 68,737,708 6,362,755 6,957,363 68,143,100 2023 68,143,100 6,292,344 7,212,470 67,222,974 2024 67,222,974 6,189,768 7,476,357 65,936,385 2025 65,936,385 6,045,787 7,856,635 64,125,536 2026 64,125,536 5,858,857 8,069,396 61,914,997 2027 61,914,997 5,629,604 8,350,938 59,193,662 2028 59,193,662 5,3 59,910 8,440,448 56,113 ,124 2029 56,113,124 5,052,934 8,576,316 52,589,742 2030 52,589,742 4,707,179 8,621,957 48,674,964 2031 48,674,964 4,326,141 8,608,565 44,392,541 2032 44,392,541 3,908,605 8,608,570 39,692,576 2033 39,692,576 3,452,181 8,571,182 34,573,576 2034 34,573,576 2,955,523 8,521,046 29,008,053 2035 29,008,053 2,418,673 8,402,300 23,024,426 2036 23,024,426 1,840,443 8,296,166 16,568,703 2037 16,568,703 1,217,745 8,158,024 9,628,424 2038 9,628,424 548,244 8,010,821 2,165,847 2039 2,165,847 - 7,851,887 - 2040 - - 7,683,466 - Number of years for which current market value of assets is 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: 24.25 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 112.664(1)(a) F.S. 112.664(1)(b) F.S. investment return Actuarial Valuation Assumptions Assumptions assumption A. Valuation Date October 1, 2014 October I, 2014 October 1, 2014 October 1, 2014 B. Actuarially Determined Contribution (ADC) to Be Paid During Fiscal Year Ending 9/30/2016 9/30/2016 9/30/2016 9/30/2016 C. Assumed Dates of Employer Contributions 10/1/2015 10/1/2015 10/1/2015 10/1/2015 D. Annual Payment to Amortize Unfunded Actuarial Liability 2 493 837 2 541 4 3,294,653 1 7 5 ty $ $ 2,541,014 $ 3,29 ,653 $ 1 , 337 E. Employer Normal Cost 2,214,983 2,241,229 3,806,095 1,283,850 F. Employer ADC if Paid on Valuation Date: D + E 4,708,820 4,782,243 7,100,748 2,999,187 G. Employer ADC Adjusted for Frequency of Payments 4,708,820 4,782,243 7,100,748 2,999,187 H. Employer ADC Adjusted for Frequency of Payments as % of Covered Payroll 42.26 % 42.92 % 63.72 % 26.92 % 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 * 11,491,698 11,491,698 11,491,698 11,491,698 K. Employer ADC for Contribution Year: H x J 4,856,392 4,932,237 7,322,510 3,093,565 L. Estimated State Revenue in Contribution Year 465,087 465,087 465,087 465,087 M. Net Employer ADC in Contribution Year 4 4 7 2,628,478 ,391,305 ,46 ,150 6,857,423 N. Net Employer ADC as % of Covered Payroll in Contribution Year: M _ J 38.21 % 38.87 % 59.67 % 22.87 % O. Expected Member Contributions 804,419 804,419 804,419 804,419 P. Total Contribution (including Members) 5,660,811 5,736,656 8,126,929 3,897,984 Q. Total Contribution as % of Covered Payroll in Contribution Year: P = J 49.26 % 49.92 % 70.72 % 33.92 % R. Certain Key Assumptions Investment Return Assumption 7.75% 7.75% 5.75% 9.75% Mortality Table 20% 83GAM, RP -2000 fully RP -2000 fully RP -2000 fully 80% RP2000 generational generational generational fully generational using Scale AA using Scale AA using Scale AA using Scale AA * Estimated payroll provided by the City. GRS MEMORANDUM To: Interested Parties From: Board of Trustees Boynton Beach Police Officers' Pension Fund Subject: New State of Florida Pension Reporting Requirements Date: June 2015 0 5 This Memorandum is intended to provide background and additional disclosures to accompany the new state reporting required by Section 112.664, Florida Statutes. The Board is pleased to provide this memorandum as a service to the active membership, retirees, beneficiaries, and interested members of the public in an effort to answer anticipated questions in connection with the Board's new Section 112.664 Report. Legal Protections Article X, Section 14, of the Florida Constitution specifically protects pension benefits for public employees and mandates that Florida governmental pension benefits are required to be funded "on a sound actuarial basis." According to state statute (Section 112.64(2)), the total contributions to a retirement system "shall be sufficient to meet the normal cost of the retirement system or plan and to amortize the unfunded liability." All Florida cities are required to make these mandatory employer contributions to the pension plan at least quarterly. The required contributions are actuarially determined by the independent actuary employed by the Board of Trustees. If a municipality fails to comply with its mandatory pension contributions, the Department of Management Services in Tallahassee is empowered to withhold state funds and tax revenue. See §112.63(4)(b), Florida Statutes. Thus, unlike widely reported examples of pension underfunding in other states, Florida law mandates "funding discipline" by the plan sponsor. Funding Discipline As a result of the legal protections for governmental pensions in Florida, by law the Retirement Plan will never become insolvent because it is required to be actuarially funded. The Retirement Plan is actuarially funded through a combination of investment earnings, municipal, member, and state contributions. Memo from Board of Trustees New State of Florida Pension Reporting Requirements Page 2 of 3 June, 2015 Discount Rate /Investment Earnings Assumption In order to properly fund the retirement system, the Board's actuary uses several assumptions and federally approved actuarial methods. One of the most important assumptions is the "discount rate," which is otherwise referred to as the Plan's "investment earnings assumption." Even though the discount rate is a long term projection, the Board reviews the investment assumption annually and works closely with independent plan fiduciaries to make sure that plan assets are invested consistent with a long term investment policy. Although investments fluctuate from year to year, the Board has purposely chosen a discount rate which is supported by long term investment performance and financial projections. Unrealized Gains Financial markets have performed well for the past several years, following the market correction in 2009. For example, the annualized rate of return by the Standard & Poor's 500 ( "S &P 500 ") index has been approximately 13% per year for the past several years. As a result of the strong equity returns for the past several years, most governmental pension plans have yet to recognize all of the resulting actuarial gains. Accordingly, it is noteworthy "unrealized" investment gains have not yet been recognized in the Board's Section 112.664 Report or the Board's FY 2014 valuation. Sensitivity Testing The new law requires the Board to provide hypothetical "run out" dates, assuming that the Board used a theoretical investment return assumption of 2.00% less than the Board's current discount rate. All things being equal, the use of a lower investment return assumption will lower the Plan's current funded ratio. The law also requires the Board to include in the new Section 112.664 Report additional "run out" dates, assuming that the plan sponsor stopped contributing to the Retirement Plan. As described above, Florida law mandates funding discipline by plan sponsors. Accordingly, the hypothetical run out dates in the required report are an academic exercise which do not impair the ability of the Board to pay constitutionally protected benefits. In addition to the "run out" dates required by the law, the Board also directed its actuary to project the Retirement Plan's valuation using an investment return assumption of 200% higher than the Board's current discount rate. In other words, the Board is of the view that proper "sensitivity testing" requires the evaluation of several possible investment return scenarios. For this very reason, new Governmental Accounting Standards Board ( "GASB ") requirements were recently implemented across the country. In fact, the Board's FY 2014 valuation contains a projection of benefit payments for the next 100 years. A copy of the Board's FY 2014 valuation containing the new GASB 67 100 year projection is available upon request, as are the additional sensitivity testing calculations performed by the Board's actuary. Memo from Board of Trustees New State of Florida Pension Reporting Requirements Page 3 of 3 June, 2015 Amortization schedule Defined benefit pensions are paid monthly over a retiree's or beneficiary's lifetime. As a result, pension trustees invest with a long term investment horizon. By law, Florida governmental plans are permitted to amortize their liabilities over thirty years. While the "funded ratio" of many Florida governmental plans is Tess than 100 %, it is anticipated if all assumptions are borne out that the Retirement Plan will be approximately 100% funded at the end of the 30 year amortization period. Many professionals consider the Board's amortization schedule to be similar to a 30 year mortgage. The remaining balance on one's mortgage is usually less important than the ability to make the full monthly payments. Portfolio diversification As long term investors, the Board employs a long term investment strategy which is based on a written investment policy. The Board retains a qualified investment consultant who monitors the Board's portfolio, as a fiduciary, consistent with the Board's investment policy. The Board's investments are diversified into several assets classes managed by different investment advisors in order to minimize volatility in the portfolio. The past five years of investment returns (along with the allocations of cash, equity, bond and alternative investments) are provided on this web site as well. A copy of the Board's quarterly investment reports are also available upon request. To see the Board's State produced fact sheet, see the following web site: https: / /www.rol.frs.state.fl.us /forms /BOYNTON_BEACHPolice.pdf H: \BB Police 0188 \Board \2015 \Pension Reporting Requirements.wpd BOYNTON BEACH POLICE OFFICERS' PENSION FUND STATEMENT OF POLICY FOR TRUSTEE EXPENSES WHEREAS, the Trustees of the Boynton Beach Police Officers' Pension Fund ( "Trustees ") attend conferences, seminars, and meetings ( "conferences ") and otherwise engage in services necessary to perform their duties for the Boynton Beach Police Officers' Pension Fund ( "Plan "); and WHEREAS, the Trustees desire to adopt a Statement of Policy regarding Trustee conference expenses consistent with their fiduciary duties and all applicable laws; NOW, THEREFORE, it is hereby resolved that the following Statement of Policy Regarding Trustee Expenses is hereby adopted. I. GENERAL CONSIDERATIONS A. A Trustee shall be reimbursed only for expenses properly and actually incurred in the performance of his or her duties with the Plan. B. A Trustee shall not be reimbursed for any expenses for which he or she had been paid or is due payment from any other source. A Trustee shall not be reimbursed for any expenses which would result in double payment. C. Trustee expenses shall be reasonable in amount and necessarily incurred, taking into account the area of the country where the expense is incurred and the standards for business expenses allowable by the Internal Revenue Code. 1 D. Rental Cars: Actual cost incurred for car rental plus reimbursement for gas expenditures, subject to the maximum payable if the Trustee could have traveled by air. No travel expenses shall be allowed if the Trustee is transported without charge. III. LODGING EXPENSES Trustees are entitled to reimbursement for actual costs incurred for lodging based on a single occupancy rate. IV. FOOD AND OTHER EXPENSES Trustees are entitled to reimbursement for actual costs incurred subject to the maximum amount allowable by this policy • :: • - 6 : - ; - - 66 : o . . Article I, Section 2 -15. The daily rate of reimbursement for out -of- pocket expenses and meals shall be $60 per day, exclusive of lodging, transportation, parking, tolls, or similar verified expenses. Included within the daily rate shall be reasonable gratuities, and telephone calls, but the per diem shall not include reimbursement for personal expenses such as recreation charges, movies, etc. This per diem shall be adjusted annually for inflation at a rate of 3% per year, beginning January 1, 2016. All expenditures shall require a receipt in order to be reimbursed. Breakfast - $ 0.00 Lunch - $12.00 Dinner - $20.00 V. OTI IER EXPENSES 3 VINE. ACCOUNTING FOR EXPENSES A. A Trustee must submit an expense voucher for all expenses incurred, including per diem, within thirty (30) days after incurring the expense, on a form approved by the Board of Trustees. The approved Trustee Expense Voucher form is attached hereto. A copy of the Program or Agenda of the conference must be attached to the completed Trustee Expenses Voucher. B. Except for reimbursement for per diem, a Trustee must attach invoices, receipts or other written documentation to the completed Trustee Expense Voucher. Receipts are required for each expense in excess of $25.00. If any receipt includes amounts not subject to reimbursement (e.g., for a Trustee's spouse), the receipt should so indicate and be reduced accordingly. C. For any conference where a certificate of attendance is issued, a Trustee must earn such a certificate in order to be reimbursed for expenses, unless the Trustee's absence is the result of illness or other good cause. D. The Certified Public Accountant for the Plan shall audit all Trustees expenses on an annual basis. The Certified Public Accountant shall notify the Board of Trustees if any expenses for Trustees do not comply with this Statement of Policy regarding Trustee Expenses. VIIIIXX. ADVANCES A. A Trustee may receive an advance to cover the expenses to be properly and actually incurred in the immediate future. However, a copy of the Program or Agenda for the conference must be provided before the advance is paid, itemizing the registration fee and any meals or lodging included in the registration fee. 5 a BOYNTON BEACH POLICE OFFICERS' PENSION FUND Investment Policy Statement 1. PURPOSE OF INVESTMENT POLICY STATEMENT The Pension Board of Trustees maintains that an important determinant of future investment returns is the expression and periodic review of the Fund's investment objectives. To that end, the Trustees have adopted this Investment Policy Statement to apply to all of the assets of the fund. In fulfilling their fiduciary responsibility, the Trustees recognize that the pension fund is an essential vehicle for providing income benefits to retired participants or their beneficiaries. The Trustees also recognize that the obligations of the Fund are long -term and that the investment policy statement should be made with a view toward performance and return over a number of years. The general investment objective then is to obtain a reasonable total rate of return — defined as interest and dividend income plus realized and unrealized capital gains and/or losses — that meets or exceeds the actuarial interest rate assumption net of fees to ensure the Fund is actuarially sound. This return is expected on a regular basis over rolling actuarial measurement periods. The Trustees, the Fund's investment manager(s), and investment monitor /consultant shall comply with the following fiduciary standard: A fiduciary shall discharge its duties with respect to the Fund solely in the interest of the participants and beneficiaries and a. for the exclusive purpose of providing benefits to participants and their beneficiaries and defraying reasonable expenses of administering the pension Fund; b. with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; c. by diversifying the investments of the Fund so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so. Reasonable consistency of return and protection of assets against the inroads of inflation are paramount. However, the volatility of interest rates and securities markets make it necessary to judge results within the context of several years rather than over short periods of one- or two - years or less. 2. INVESTMENT PERFORMANCE OBJECTIVES 1 8/11/2015 BOYNTON BEACH POLICE OFFICERS' PENSION FUND Investment Policy Statement attempt will be made to match investment maturities with known cash needs and anticipated cash -flow requirements. Custodian: The Board of Trustees has a retained and will continue to retain a third party to be custodian of the Fund's assets. All securities shall be designated as an asset of the Fund, and no withdrawal of securities -in whole or part-shall be made from safekeeping except by an authorized member of the Board of Trustees or the Board of Trustee's designee. Security transactions between a broker dealer and a custodian involving the purchase or sale of securities by transfer of money or securities must be made on a "delivery vs. payment" basis, if applicable, to ensure that the custodian will have the money or security, as appropriate, in hand at the conclusion of the transaction. Bid requirement: The Trustees shall determine the approximate maturity date based on cash flow needs and market conditions, analyze and select one or more optimal types of investment, and competitively bid the security in question when feasible and appropriate. Except as otherwise required by law, the most economically advantageous bid must be selected. Risk and Diversification: The investments held by the Fund shall be diversified to the extent practical to control the risk of loss resulting from over - concentration of assets in a specific maturity, issuer, issuer, instrument, dealer, or bank which financial instruments are bought and sold. A. Authorized Investments: 1. Commingled equity, fixed income, money market, and alternative (real estate, listed infrastructure, commodities) funds and institutional mutual funds whose investments are restricted to securities meeting the criteria outlined in Section 3B. B. Limitations 1. Illiquid investments, as described in Chapter 215.47, Florida Statutes, are prohibited. 2. Foreign investments are limited to 25% of the total pension fund, at market. 3. All repurchase agreement transactions shall adhere to the requirements of the Master Repurchase Agreement. 4. Under Protecting Florida's Investment Act ( "PFIA "), scrutinized companies published by the State Board of Administration are prohibited, unless an indirect investment is unable to divest, as provided for in Florida Statutes section 215.473. 5. The following investments are prohibited, unless authorized by the Trustees: a. Futures (exceptions are mutual and commingled funds) b. General obligations issued by a foreign government 3 8/11/2015 BO YNTON BEACH POLICE OFFICERS' PENSION FUND Investment Policy Statement performance of an investment manager may be made. With this in mind, the following are adopted: If, at any time, any one of the following is breached, the investment manager(s) will be warned of the Trustee's serious concern for the Fund's continued safety and performance. A. Four consecutive quarters of the investment manager's performance below the 40 percentile in appropriate performance rankings. B. Standard deviation for the Fund in excess of 120% of the market. C. Loss by the investment manager(s) of any senior investment personnel. D. Any change in basic investment philosophy by the investment manager(s). E. Failure to attain a majority vote of confidence by the Board of Trustees. F. Failure to observe the security quality restrictions in Section 3B. 6. INTERNAL CONTROLS The Fund shall be governed by a set of written internal controls and operational procedures, which shall be periodically reviewed by the Fund's certified public accountant (CPA). At the time of every financial audit, the CPA shall review the controls that should be designed to prevent loss of funds that might arise from fraud, error, or misrepresentation by third parties or imprudent actions by the Trustees or the employees of the City of Boynton Beach. 7. CONTINUING EDUCATION The Fund acknowledges the importance of continuing education for the Trustees. Ongoing education will be provided by the Fund's actuary, attorney, custodian, investment manager(s), investment monitor /consultant, and administrator. In addition, the Trustees are encouraged to attend educational conferences in connection with their duties and responsibilities as Trustees. Each Trustee is encouraged to attend a minimum of two conferences or seminars per year. Additional conferences or seminars are also encouraged. Each Trustee may attend up to six conferences in state and two conferences out -of- state, every year, without additional Board approval. 8. FLORIDA STATUTES 112, 185 AND APPLICABLE CITY OF BOYNTON BEACH ORDINANCES If at any time, this document found to be in conflict with Chapter 112.661 or Chapter 185, Florida Statutes, or the applicable City of Boynton Beach Ordinances, the Statutes and Ordinances shall prevail. 9. PROXY VOTING 5 8/11/2015 4- BOYNTON BEACH POLICE OFFICERS' PENSION FUND Investment Policy Statement Strategic Allocation Policy Range Allocation Asset Class /Strategy ( %) ( %) World Equities 30 20 — 40 US Equities 25 15 - 35 Fixed Income 32 30 — 40 Cash/Money Market 2 0 — 5 Alternatives: 11 2 — 20 Total 100 ALTERNATIVES Private Real Estate 5 0 — 710 Public Real Estate (REITs) 2 0 — 7 Listed Infrastructure 2 0 — 5 Commodities (CCFs) 2 0 — 7 NOTE: Foreign securities are limited to 25% of the pension fund at market value. 12. PROCEDURE FOR REBALANCING ASSET ALLOCATION At the end of each month, Russell Investments will compare the Fund's asset values and their relative allocation percentages, to the rebalancing policy targets and ranges. Based on this comparison, Russell Investments will determine what trades are necessary in order to bring the investments as close to target as practical. BOYNTON BEACH POLICE OFFICERS' RUSSELL INVESTMENTS PENSION FUND By: By: As: Chairman, Board of Trustees As: Investment Manager Date: Date: BURGESS CHAMBERS & ASSOCIATES, INC. By: As: Registered Advisor Date: 7 8/11/2015 List of Plan Administration Duties Administration of Meetings: • Schedule meetings (including coordination with City) • Gather and distribute meeting materials • Prepare agenda • Prepare minutes Trustee Organization: • Have working knowledge of Plan Document • Maintain Board contact list (Trustees and Service Providers) • Maintain list of Trustee position type and date of term expiration • Maintain pending matter list o Timely implement motions and decisions of Trustees o Ensure service providers are aware of motions and decisions which impact their projects • Run Trustee elections • Coordinate Trustee appointments through the City • Ensure timely selection of 5 Trustee • Assist in creation of Board Policies including Internal Controls and Procedures • Familiarity with Sunshine laws, gift and ethics laws and public officer voting • Obtain quotes for fiduciary liability insurance and fidelity bonding • Keep Trustee memberships in Pension Organizations up to date • Assist in preparation of requests for proposals, as directed • Ensure that Trustees approve benefits and Fund expenses • Administer Travel Policy (including proper documentation and providing for reimbursements) • Assist in making reservations and arrangements Communication and Coordination: • Review correspondence, statements and documents from all service providers. • Distribute the documents as necessary Page 1 of 3 Plan Financials: • Assist in reconciliation of accounts • Compliance with Internal Controls and Procedures • Assist in maintenance of General Ledger • Assist in creation of Financial Statements • Oversee creation of System to maintain Share and DROP Accounts • Coordinate Annual Audit with Auditor to ensure completion by the City's deadline • Accounts Payable: o Review of Invoices , o Approval of Expenses by Board o Signed Warrant o Specific Reference to Minutes o Payment of Invoices • Employer Contributions: o Contribution Amounts o Monitor Deposits at least Quarterly • Direct Custodian to: o Process Tax Deposits o Prepare 1099Rs and IRS Reporting o Process and execute payment of Retiree Payroll, refund (Direct & Rollover) of Member Contributions, Payments for services, DROP loans as permitted or any other payments as deemed necessary so not to cause any inefficiency • Oversee and Coordinate o Annual Report Preparation - to ensure filing by March 15 each year Online Access to Members o Administer to oversee and coordinate online access for Members o Create, maintain, distribute newsletter BSJ:pah Revised 2015 C: \Users \pat \Soonr Workplace \PENSION \BB Police 0188 \vendors\Admin \RFP \list of admin duties.wpd Page 3 of 3 PENSION FUND REQUEST FOR PROPOSAL FOR ADMINISTRATIVE SERVICES This request for proposal seeks an Administrative Managerforthe Fund to provide the following functions for the Fund: 1. Establish a Fund office to be open to all interested parties for regularly scheduled business hours. The Fund office will also maintain all records of the Fund. 2. Attend all quarterly meetings of the Board of Trustees and special meetings as needed. 3. Prepare agendas and notices for, and attend all Board of Trustees meetings and records, transcribe and maintain minutes of those meetings. 4. Ensure that the administrative matters of the Board of Trustees are handled, i.e. correspondence, coordination of Fund service providers, travel reservations for seminars. 5. Establish systems and procedures to record participant service based upon years of service. 6. Establish systems and procedures to record participant salary and contribution information. 7. Be familiar with all plan documents and provisions to assist participants in applications for benefits and generally answer questions regarding the Fund. Administrator must be familiar with Florida laws governing public employee pensions, through a dedicated response team and toll -free number. 8. Assist service providers in obtaining data regarding the Fund. 9. Pay or oversee the payment of benefits and expenses from the Fund. Responsibilities in this area include reconciliation of accounts and preparation of financial statements. 10. Prepare and file necessary government reports and other documentation required by law (e.g., W2P's, withholding election forms, 1099's). 11. Assist in preparation of Summary Plan Description. 12. Develop website for access by participants, which includes online benefit calculations. 13. Other matters which may be delegated to the Administrative Manager by the Board of Trustees. Page 1 of 3 III. GENERAL INFORMATION ON THE SELECTION PROCESS: a) An oral presentation by the bidder may be required at a time and place scheduled by the Board. b) In evaluating the proposals, price will not be the sole factor. The Board may consider any factors it deems necessary and proper for • best value, including price, quality of services, response to this request and general reputation. The Board reserves the right to reject any or all proposals. c) To ensure fair consideration, the Board prohibits communication to or with any Pension Board member during the submission process. If you have specific questions requiring explanation of the content of these proposal specifications, submit a written request for interpretation or additional information to the Fund's legal counsel, Bonni S. Jensen, Hanson, Perry & Jensen, 400 Executive Center Drive, Suite 207, West Palm Beach, FL 33401 -2922. d) Submit seven (7) copies of your response for distribution to the Trustees. e) The Administrative Manager that is selected will be required to acknowledge fiduciary responsibility to the Fund. f) Applicants may be required to complete a sworn statement under Section 287.133(3)(a), Public Entity Crimes. g) The Board bears no responsibility for the costs of preparation of your response to this proposal. H: \AII Miscellaneous \R F P s \2010 Administrator RFP.wpd • Page 3 of 3 4 �i STIL o • Invest•Build•Manage 4 1.4 /14'' Date: August 4, 2015 To: Barbara LaDue Re: BB Police & Fire Pension Funds Suite: 207 Hi Barbara: I can't believe it's going to be a year since we renewed your agreement! The License Agreement (`agreement) on the above suite will terminate on September 30th, 2015. Since you have been a loyal tenant, we would like to enter into a new agreement on your suite for a term of one year. The current base rental amount of $821.40 will increase to $862.47. This amount does not include the Internet, phone package nor the 6% sales tax. -- /1/- If you decide to renew your agreement with us, please come see me as soon as convenient. If you decide not to renew your agreement, please give us notice of non - renewal as provided by law at least 30 days prior to the Termination Date. We hope we may continue to keep you as a tenant! If you need any additional information, please do not hesitate to contact me at evie.journet@stiles.com or , (561) 739 -7917. .5 Sly 6 . - Sincerely, I 0 6 ' j � .,,' I /®7/ Eve J. Jo ne / 3o " -- --,„; Executive Suites Manager -1 .--- -- ""' -'""' Tel (561) 739 -7917 1500 Gateway Blvd. Ste: 22.0 Fax:(5611 731 -2997 www ctilpC rnm Boynton Beach. FL 33426 GRs 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 August 5, 2015 ¢.7+ Ul' CONFIDENTIAL be; 0,444..4 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: RODRIGUES, Luis (DROP) Based on the information provided, we have determined the retirement benefit for the above participant has been calculated in accordance with plan provisions: Form of Benefit Option Factor Amount Modified Cash Refund Annuity 1.01050 $8,591.78 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, P er N. Strong, FSA, EA, F , MAAA Senior Consultant and Actu 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: Monday, July 27, 2015 11:49 AM To: Travis .Robinson @gabrielroeder.com Cc: Pete.Strong @gabrielroeder.com Subject: Boynton Police - Luis Rodrigues - Retirement Verification Attachments: D00072715.pdf Travis: Please review the attached retirement on Luis Rodrigues for verification for the Trustees: Luis Rodrigues retired on 6 -29 -2015 into the DROP. Initial DROP deposit effective 7 -1 -2015. Selected option is Life Only $8,591.78 Thank you. Barb La Due Pension Administrator Boynton Beach Police & Fire Pension Funds Phone: (561) 739.7972 e Original Message g From: Scanner [ mailto:faxexecsuites@gmail.com] Sent: Monday, July 27, 2015 11:29 AM To: BARBARA LADUE Subject: Send data from MFP07580425 07/27/2015 11:28 Scanned from MFP07580425 Date:07/27/2015 11:28 Pages:8 Resolution:200x200 DPI � 1 D.R.O.P. DEFERRED RETIREMENT OPTION PLAN for THE BOYNTON BEACH POLICE PENSION FUND I have received a copy of the provisions of the DROP contained in the Pension Plan. I am in full agreement with the terms set forth. I have been advised to seek the counsel of a qualified tax advisor regarding the tax consequences to me of entering the DROP. I fully understand that my participation in the DROP shall terminate at the end of five (5) years or thirty (30) years of service, whichever comes first. Failure to end DROP participation may result in penalties at the discretion of the Trustees, up to and including forfeiture of the DROP account. I, Z . . 1 / (S Ro t? i G u g 5 , have entered the Boynton (Print Name) Beach Police Officers' Pension Fund DROP on — • My pension (Enter Date) benefit and DROP participation is based on Ad Years 00 Months 00 Days of service. In compliance with Ordinance No. 08 -008, Sec. 18 -175 (passed 05- 06 -08) this will establish - ,7O ,z® as my irrevocable resignation date with the City of (Enter Date) Boynton Beach. MT10E li a >::.:r t ..`:. ee emeanor to make a tog or mAsleadwg statement to flbtaln dry Vi�ori a . rt e >a ,xtd <a :> appxcaGhe : ,.. :::.:.: .. .. ::i. >iVt.:..::nyM;zntho4.s�re0n00:board4}'0:1r b* *gacred'kfrfqzt zhe rt! lid to < rcve .a ' or atlben.e .rts:o;N�ch: foie' :ersoiaiiild.:atk:; r�vrse:be::enirfded under.:i�lais .lun: re) u.tO POORIG Witness: (Print Name) / 7flz Date: 6 —l3 — ev/S (Signature) * * * PENSION STATUS REPORT * * * CITY OF BOYNTON BEACH POLICE PENSION SYSTEM DATE PREPARED: July 20, 2015 FOR: RODRIGUES, LUIS SSN: 108 -66 -xxxx EMP NO: 1659 BIRTH DATE: 04/13/1966 AGE: 49 PLAN: PP DEPT: 21 HIRE DATE: 06/29/1995 PENSION HIRE DATE: 06/29/1995 VEST DATE: 06/29/2000 ADJUSTED HIRE DATE: 06/29/1995 EARLY RETIRE DATE: 00 /00 /0000 LENGTH OF SERVICE: 20 YR 0 MO NORMAL RETIRE DATE: 06/29/2015 TERMINATION DATE: 06/29/2015 BENEFICIARY: BENEFICIARY BIRTH DATE: 00 /00 /0000 * * VACATION /SICK ACCRUALS * * CURRENT: HOURLY RATE: 36.65 VAC HOURS: 205.07 SIC HOURS: 123.69 2013 CAP: HOURLY RATE: 42.50 VAC HOURS: 334.66 SIC HOURS: 374.37 * * ACCOUNT BALANCE * * POST -TAX CONTRIBUTIONS: $ .00 PRE -TAX CONTRIBUTIONS: $ 130,745.03 CONTRIBUTION BALANCE: $ 130,745.03 * * ELECTIVE BENEFITS * * PURCHASE PURCHASE SERVICE PLAN YEAR LIFETIME PLAN YEAR CODE START END YY -MM -DD CONTRIBUTION CONTRIBUTION REFUNDS P1 01/28/2002 00 /00 /0000 0 0 0 1,025.07 15,360.00 .00 M1 01/28/2002 00 /00 /0000 0 0 0 1,025.07 15,360.00 .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 Fite, CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL STATEMENT OF RETIREMENT BENEFITS July 20, 2015 Participant's Name: LUIS RODRIGUES Social Security #: 108 - 66 - xxxx You are eligible for a(n) NORMAL Retirement Benefit from the Plan. Your benefit is payable at the beginning of each month com- mencing July 1, 2015 . The amount of your monthly benefit depends on the optional form of annuity which you choose. Please indicate the o ne optional form listed below which you elect to recieve: V / 0 1. MODIFIED CASH REFUND ANNUITY: This option provides monthly pay- ments of $ 8591.78 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 $ 8502.50 to you as long as you live. If you should die before 120 monthly payments have been made, the monthly payment of $ 8502.50 will continue to be made to your beneficiary until a total of 120 monthly payments have been made in all. 3. 100% SURVIVOR ANNUITY: This option provides monthly payments of $ .00 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of $ .00 for as long as he /she lives. 4. 75% SURVIVOR ANNUITY: This option provides monthly payments of $ .00 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of $ .00 for as long as he /she lives. 5. 50% SURVIVOR ANNUITY: This option provides monthly payments of $ .00 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of $ .00 for as long as he /she lives. 6. 66 - 2/3% JOINT AND LAST SURVIVOR ANNUITY: This option provides monthly payments of $ .00 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 $ .00 will continue for the life of the remain- ing person. 7. 50% JOINT AND LAST SURVIVOR ANNUITY: This option provides monthly payments of $ .00 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 $ .00 will continue for the life of the remain- ing person. THESE AMOUNTS ABOVE ARE BASED UPON THE FOLLOWING INFORMATION: Your Date of Birth: 04/13/1966 Pension Hire Date: 06/29/1995 Date of Termination: 06/29/2015 Adjusted Hire Date: 06/29/1995 Avg Final Monthly Comp:$12,146.43 Years of Credited Service: 20 Beneficiary Name: Date of Birth: 00 /00 /0000 Page 2 . Participant's Name: LUIS RODRIGUES Social Security #: 108 -66 -xxxx Accumulated Contributions: $30,745.03 After -Tax Contributions: $.00 Pre -Tax Contributions: $30,745.03 Months Nontaxable Nontaxable Portion of Life Number of M o Annuity Monthly Benefit: $.00 Portion Continues: 0 Nontaxable Portion of Joint Number of Months Nontaxable Survivor Monthly Benefit: $.00 Portion Continues: 0 The Survivor Annuity benefit amounts shown above are based on the beneficiary named above and are payable only to this beneficiary. If you wish to change your beneficiary before your payments begin, new amounts will have to be calculated. BOARD OF TRUSTEES: By DATE: I accept the terms above, including my choice of annuity form, and confirm the information shown above to be correct. PARTICIPANT' S SIGNATU'40 0# DATE: 7,23. fc BENEFICIARY'S SIGNATURE: DATE: Calculation Date: • CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE 1 July 20, 2015 NAME RODRIGUES, LUIS # 1659 SSN 108 -66 -xxxx DEPT 21 ADDRESS 5018 PINE TREE DRIVE YTD CONTR. 5,074.87 DELRAY BEACH, FL 33484 CONTR(TAX) 130,745.03 BIRTH 04/13/1966 CONTR(NTX) .00 PEN HIRE 06/29/1995 BALANCE 130,745.03 ADJ HIRE 06/29/1995 RETIRE 06/29/2015 TYPE N LAST SERV 06/29/2015 60 MO EARN 728,785.56 ELIG NORM 06/29/2015 AVG MO EARN 12,146.43 ELIG EARLY 00 /00 /0000 SERV AT TERM 20 0 0 100% VEST 06/29/2000 AGE AT RETIRE 49 2 16 COMMENCE 07/01/2015 COM ANB /DIFF 49 0 LAST EARN 00 /00 /0000 VESTED TDY /RET 100 100 BEN NAME SERV OVERRIDE BEN BDAY 00 /00 /0000 PAY HIST FLAG IRREGULAR VAC HRS /CD 205.07/EK HOURLY RATE 36.650 SIC HRS /CD 123.69 S5 VAC SIC PAYOUT 19,050.20 ACCRUE PER .00 EARLY OPTION LAST PAY 20150629 - 20150712 METHOD H5N TERM -DATE 20150629 RATE .70000 BENEFIT 8,502.50 EARLY REDUCTION FACTOR: .00000 EARLY RETIRE BENEFIT .00 TEN YEAR CERTAIN & LIFE 8,502.50 LIFE ANNUITY FACTOR: 1.01050 MODIFIED LIFE ANNUITY 8,591.78 100% SURVIVOR FACTOR: .00000 100% SURVIVOR ANNUITY .00 SURVIVOR BENEFIT .00 75% SURVIVOR FACTOR: .00000 75% SURVIVOR ANNUITY .00 SURVIVOR BENEFIT .00 50% SURVIVOR FACTOR: .00000 50% SURVIVOR ANNUITY .00 SURVIVOR BENEFIT .00 66% JOINT & LAST FACTOR: .00000 66% JOINT & LAST ANNUITY .00 SURVIVOR BENEFIT .00 50% JOINT & LAST FACTOR: .00000 50% JOINT & LAST ANNUITY .00 SURVIVOR BENEFIT .00 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 July 20, 2015 LUIS RODRIGUES H I G H Y E A R O N E H I G H Y E A R T W O PAY EFF WEEKS WAGES PAY EFF WEEKS WAGES 11/03/14 2.0 7,165.34 03/11/13 2.0 5,171.25 10/20/14 2.0 4,824.24 02/25/13 2.0 5,112.54 10/06/14 2.0 5,096.91 02/11/13 2.0 5,809.51 09/22/14 2.0 5,038.24 01/28/13 2.0 6,429.35 09/08/14 2.0 5,910.90 01/14/13 2.0 4,947.25 08/25/14 2.0 4,831.17 12/31/12 2.0 7,030.40 08/11/14 2.0 4,102.75 12/17/12 2.0 6,647.28 07/28/14 2.0 4,695.88 12/03/12 2.0 5,836.11 07/14/14 2.0 5,915.33 11/19/12 2.0 6,923.58 06/30/14 2.0 6,159.44 11/05/12 2.0 4,465.55 06/16/14 2.0 5,580.33 10/22/12 2.0 3,421.95 06/02/14 2.0 13,612.82 10/08/12 2.0 5,942.82 05/19/14 2.0 5,766.61 09/24/12 2.0 5,739.09 05/05/14 2.0 4,054.32 09/10/12 2.0 11,134.41 1 04/21/14 2.0 7,174.56 08/27/12 2.0 7,101.37 04/07/14 2.0 3,614.19 08/13/12 2.0 7,216.17 03/24/14 2.0 2,783.90 07/30/12 2.0 6,667.25 03/10/14 2.0 4,918.36 07/16/12 2.0 5,891.21 02/24/14 2.0 4,295.56 07/02/12 2.0 7,365.72 02/10/14 2.0 4,244.01 06/18/12 2.0 5,493.16 01/27/14 2.0 4,962.57 06/04/12 2.0 7,302.69 01/13/14 2.0 5,669.75 05/21/12 2.0 4,824.94 12/30/13 2.0 7,151.89 05/07/12 2.0 5,617.87 12/16/13 2.0 6,124.11 04/23/12 2.0 5,993.71 12/02/13 2.0 4,757.91 04/09/12 2.0 5,207.06 11/18/13 2.0 6,317.92 03/26/12 2.0 7,019.22 TOTAL 52.0 144,769.01 TOTAL 52.0 160,311.46 CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE 3 July 20, 2015 LUIS RODRIGUES H I G H Y E A R T H R E E H I G H Y E A R F O U R PAY EFF WEEKS WAGES PAY EFF WEEKS WAGES 03/12/12 2.0 7,164.22 02/28/11 2.0 4,815.76 02/27/12 2.0 5,809.55 02/14/11 2.0 4,926.10 02/13/12 2.0 6,293.95 01/31/11 2.0 4,918.14 01/30/12 2.0 5,943.15 01/17/11 2.0 5,314.17 01/16/12 2.0 5,559.78 01/03/11 2.0 4,333.94 01/02/12 2.0 6,347.64 12/20/10 2.0 6,619.07 12/19/11 2.0 6,280.22 12/06/10 2.0 4,605.44 12/05/11 2.0 6,776.67 11/22/10 2.0 5,714.28 11/21/11 2.0 7,958.28 11/08/10 2.0 4,346.44 11/07/11 2.0 5,909.45 10/25/10 2.0 3,626.97 10/24/11 2.0 5,992.76 10/11/10 2.0 4,239.99 10/10/11 2.0 5,715.71 09/27/10 2.0 4,564.33 09/26/11 2.0 5,039.77 09/13/10 2.0 4,052.06 09/12/11 2.0 6,307.07 08/30/10 2.0 4,822.53 08/29/11 2.0 4,119.95 08/16/10 2.0 4,060.76 08/15/11 2.0 3,932.05 08/02/10 2.0 4,873.32 08/01/11 2.0 5,085.44 07/19/10 2.0 4,946.69 07/18/11 2.0 5,323.53 07/05/10 2.0 5,379.40 07/04/11 2.0 5,200.39 06/21/10 2.0 3,691.13 06/20/11 2.0 6,735.06 06/07/10 2.0 5,453.91 06/06/11 2.0 5,332.90 05/24/10 2.0 4,837.05 05/23/11 2.0 7,113.10 05/10/10 2.0 5,548.88 05/09/11 2.0 6,066.96 04/26/10 2.0 4,136.41 04/25/11 2.0 4,696.77 04/12/10 2.0 4,281.15 04/11/11 2.0 5,275.89 03/29/10 2.0 4,102.80 03/28/11 2.0 5,604.67 03/15/10 2.0 4,649.09 TOTAL 52.0 151,584.93 TOTAL 52.0 122,859.81 CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE 4 July 20, 2015 LUIS RODRIGUES H I G H Y E A R F I V E PAY EFF WEEKS WAGES 05/26/08 2.0 4,991.28 05/12/08 2.0 4,793.22 04/28/08 2.0 4,514.03 04/14/08 2.0 5,879.82 03/31/08 2.0 3,897.02 03/17/08 2.0 3,916.63 03/03/08 2.0 4,343.18 02/18/08 2.0 4,124.32 02/04/08 2.0 3,778.19 01/21/08 2.0 4,371.76 01/07/08 2.0 4,745.47 12/24/07 2.0 5,623.99 12/10/07 2.0 3,766.83 11/26/07 2.0 4,152.43 11/12/07 2.0 5,652.10 10/29/07 2.0 5,061.74 10/15/07 2.0 4,183.58 10/01/07 2.0 5,950.15 09/17/07 2.0 4,501.20 09/03/07 2.0 8,046.48 08/20/07 2.0 5,416.90 08/06/07 2.0 5,112.83 07/23/07 2.0 6,111.26 07/09/07 2.0 4,840.36 • 06/25/07 2.0 5,307.27 06/11/07 2.0 4,704.32 05/28/07 1.0 2,423.79 TOTAL 53.0 130,210.15 GRs 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 a August 5, 2015 -7171191 /0614:1,04141 CONFIDENTIAL CI) 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: KENNY, Gregory (LOD Disability) Based on the information provided, we have determined the following disability retirement benefit for the above participant has been calculated in accordance with plan provisions: Form of Benefit Option Factor Amount 100% Survivor Annuity 0.9448 $3,474.84 Since the disability benefit is based on 66 2/3% of the basic monthly earnings, it must be reduced for any disability income received from workers' compensation or Social Security. In no event; however, will his monthly benefit from this Plan fall below $2,815.04. 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, '4 // 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: Monday, August 03, 2015 9:53 AM To: Travis .Robinson @gabrielroeder.com Cc: Pete.Strong @gabrielroeder.com Subject: Boynton Police - Verification Benefit - Gregory Kenny - Disability LOD Attachments: D00080315.pdf Please review and verify the attached for LOD Disability for the Police Pension Board: Gregory Kenny, LOD Disability approved by the Board at Special Meeting of 7 -21 -2015, Effective 8 -01 -2015, 100% Survivor, $3,474.84. Thanks. Barb La Due Pension Administrator Boynton Beach Police & Fire Pension Funds Phone: (561) 739.7972 Original Message From: Scanner [ mailto:faxexecsuites@gmail.com] Sent: Monday, August 03, 2015 9:44 AM To: BARBARA LADUE Subject: Send data from MFP07580425 08/03/2015 09:44 Scanned from MFP07580425 Date:08/03/2015 09:44 Pages:7 Resolution:200x200 DPI 1 CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL STATEMENT OF DISABILITY BENEFITS PAGE 1 July 23, 2015 FOR: GREGORY B KENNY DEPT 21 # 2863 SSN 594 -30 -xxxx BIRTH DATE: 09/18/1971 ELIGIBLE FOR: PENSION HIRE DATE: 10/14/2002 NORMAL RETIREMENT: 09/18/2021 ACTUAL RETIREMENT: 08/01/2015 EARLY RETIREMENT: 00/00/0000 LAST DAY OF SERVICE: 07/25/2015 VESTED: 100% DATE OF INJURY: 10/22/2011 AGE AT RETIREMENT: 43 SERVICE INCURRED {Y /N}: Y YEARS OF CREDITED SERVICE: 12 9 CURRENT BIWEEKLY PAY: $ 2,546.24 FINAL AVERAGE MONTHLY EARNINGS: $ 6,660.78 ACCUMULATED CONTRIBUTIONS: $ 61,060.58 NON- TAXABLE PORTION OF CONTRIBUTIONS: $ .00 Having worked for the City of Boynton Beach until August 1, 2015 , upon final approval of the Board of Trustees, you are entitled to receive a service connected disability retirement benefit beginning on August 1, 2015 and continuing on the first of each month thereafter, in accordance with the form of benefit selected. DISABILITY BENEFIT Monthly Amount DISABILITY BENEFIT: $ 3,677.86 Approved by the Boynton Beach Police Officers' Pension Board at Special Meeting 7 -21 -2015 100% Survivor Factor (.94480) _100% Survivor Annuity This option provides monthly payments of $3,474.84 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of $3,474.84 for as long as he /she lives. Beneficiary Name: Judith L. Kenny Date of Birth: 04/21/1975 PARTICIPANT'S SIGNATURE DATE: 7(9',1/S BENEFICIARY'S SIGNATURE A - 0 _ „ DATE: l (2.3 ( ( Air CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL STATEMENT OF DISABILITY BENEFITS PAGE July 23, 2015 Participant's Name: GREGORY B KENNY Social Security #: 594 30 - xxxx You are eligible for a(n) DISABILITY Retirement Benefit from the Plan. Your benefit is payable at the beginning of each month com- mencing August 1, 2015 . 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 $ 3699.63 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 $ 3677.86 to you as long as you live. If you should die before 120 monthly payments have been made, the monthly payment of $ 3677.86 will continue to be made to your beneficiary until a total of 120 monthly payments have been made in all. 3. 100% SURVIVOR ANNUITY: This option provides monthly payments of 3474.84 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of $ 3474.84 for as long as he /she lives. 4. 75% SURVIVOR ANNUITY: This option provides monthly payments of $ 3528.54 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of $ 2646.41 for as long as he /she lives. 5. 50% SURVIVOR ANNUITY: This option provides monthly payments of $ 3583.71 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of $ 1791.86 for as long as he /she lives. 6. 66 - 2/3% JOINT AND LAST SURVIVOR ANNUITY: This option provides monthly payments of $ 3592.17 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 $ 2394.76 will continue for the life of the remain- ing person. 7. 50% JOINT AND LAST SURVIVOR ANNUITY: This option provides monthly payments of $ 3653.95 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 $ 1826.98 will continue for the life of the remain- ing person. THESE AMOUNTS ABOVE ARE BASED UPON THE FOLLOWING INFORMATION: Your Date of Birth: 09/18/1971 Pension Hire Date: 10/14/2002 Date of Termination: 07/25/2015 Adjusted Hire Date: 10/14/2002 Avg Final Monthly Comp: $6,660.78 Years of Credited Service: 12 Beneficiary Name: JUDITH L KENNY Date of Birth: 04/21/1975 Page 3 Participant's Name: GREGORY B KENNY Social Security #: 594 -30 -xxxx � The Survivor Annuity benefit amounts shown above are based on the beneficiary named above and are payable only to this beneficiary. If you wish to change your beneficiary before your payments begin, new amounts will have to be calculated. BOARD OF TRUSTEES: By DATE: I accept the terms above, including my choice of annuity form, and confirm the information shown above to be correct. PARTICIPANT'S SIGNATURE: DATE: BENEFICIARY'S SIGNATURE: `�� _� DATE: I -2.3 1 t s- Calculation Date: rh 1 CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL WORKSHEET OF DISABILITY BENEFITS PAGE 1 July 23, 2015 NAME GREGORY B KENNY # 2863 SSN 594 30 1238 dept 21 ADDRESS 824 #C LIGHTHOUSE DRIVE CONTR(TAX) 61,060.58 NORTH PALM BEACH, FL 33 CONTR(NTX) .00 BIRTH 09/18/1971 BALANCE 61,0.68 -58 PEN HIRE 10/14/2002 I9D.f7 ADJ HIRE 10/14/2002 RETIRE 07/25/2015 TYPE D ELIG EARLY 00 /00 /0000 60 MO EARN 399,647.01 ELIG NORM 09/18/2021 AVG MO EARN 6,660.78 INJURY DTE 10/22/2011 SERV INCUR Y BASIC MO EARN 5,516.85 DISABILITY 07/25/2015 LAST SERV 07/25/2015 RET SERV Y M D 12 9 11 100% VEST 10/14/2007 AGE AT RETIRE 43 10 7 COM ANB /DIFF 44 -4 VESTED TDY /RET 100 100 SERV OVERR PAY HIST FLAG IRREGULAR VAC HRS /CD 4.78/EI HOURLY RATE 31.828 SIC HRS /CD 1.93 S3 VAC SIC PAYOUT .00 ' ACCRUE WKS .00 BIWEEKLY WC .00 BENEFICARY JUDITH L KENNY MONTHLY SOCSEC .00 BENEF BDAY 04/21/1975 METHOD P5N 66 2/3% BASIC EARNING 3,677.86 RETIRE BENEFIT 3,677.86 1 WC OVERAGE .00 NET BENEFIT 3,677.86 TEN YEAR CERTAIN & LIFE 3,677.86 LIFE ANNUITY FACTOR: 1.00592 MODIFIED LIFE ANNUITY 3,699.63 100% SURV. FACTOR: .94480 100% SURV. ANNUITY 3,474.84 SURVIVOR BENEFIT 3,474.84 66 2/3% SURV. FACTOR: .97670 66 2/3% SURV. ANNUITY 3,592.17 SURVIVOR BENEFIT 2,394.76 50% SURV. FACTOR: .99350 50% SURV. ANNUITY 3,653.95 SURVIVOR BENEFIT 1,826.98 75% JOINT & LAST FACTOR: .96850 75% JOINT & LAST ANNUITY 3,528.54 SURVIVOR BENEFIT 2,646.41 50% JOINT & LAST FACTOR: .99350 50% JOINT & LAST ANNUITY 3,583.71 SURVIVOR BENEFIT 1,791.86 Prepared by CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL WORKSHEET OF DISABILITY BENEFITS PAGE 2 i July 23, 2015 GREGORY B KENNY H I G H Y E A R O N E H I G H Y E A R T W O PAY EFF WEEKS WAGES PAY EFF WEEKS WAGES 12/31/12 2.0 3,065.08 10/10/11 2.0 2,959.84 12/17/12 2.0 3,453.03 09/26/11 2.0 2,537.10 12/03/12 2.0 2,517.08 09/12/11 2.0 5,226.81 11/19/12 2.0 2,957.60 08/29/11 2.0 3,355.07 11/05/12 2.0 3,065.07 08/15/11 2.0 2,919.86 10/22/12 2.0 2,402.16 08/01/11 2.0 2,944.74 10/08/12 2.0 2,532.16 07/18/11 2.0 2,717.10 09/24/12 2.0 2,402.16 07/04/11 2.0 3,995.58 09/10/12 2.0 4,012.58 06/20/11 2.0 2,612.10 08/27/12 2.0 2,552.29 06/06/11 2.0 3,057.10 , 08/13/12 2.0 2,532.15 05/23/11 2.0 3,115.22 07/30/12 2.0 2,402.16 05/09/11 2.0 3,274.91 07/16/12 2.0 2,537.28 04/25/11 2.0 2,507.19 07/02/12 2.0 2,682.28 04/11/11 2.0 3,710.62 06/18/12 2.0 2,402.16 03/28/11 2.0 2,732.12 06/04/12 2.0 2,532.15 03/14/11 2.0 3,182.79 05/21/12 2.0 2,522.22 02/28/11 2.0 3,342.70 05/07/12 2.0 2,957.58 02/14/11 2.0 3,820.72 04/23/12 2.0 2,417.11 01/31/11 2.0 2,944.78 04/09/12 2.0 2,937.10 01/17/11 2.0 3,602.97 03/26/12 2.0 2,852.22 01/03/11 2.0 3,049.82 03/12/12 2.0 3,290.12 12/20/10 2.0 5,092.96 02/27/12 2.0 3,077.10 12/06/10 2.0 2,937.34 02/13/12 2.0 3,220.18 11/22/10 2.0 4,158.26 01/30/12 2.0 3,515.32 11/08/10 2.0 3,455.22 01/16/12 2.0 3,310.23 10/25/10 2.0 2,417.10 TOTAL 52.0 74,146.57 TOTAL 52.0 85,670.02 I I CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL WORKSHEET OF DISABILITY BENEFITS PAGE 3 k July 23, 2015 GREGORY B KENNY H I G H Y E A R T H R E E H I G H Y E A R F O U R PAY EFF WEEKS WAGES PAY EFF WEEKS WAGES 10/11/10 2.0 2,757.10 10/12/09 2.0 2,827.11 09/27/10 2.0 3,242.67 09/28/09 2.0 2,927.10 09/13/10 2.0 4,473.76 09/14/09 2.0 3,918.28 08/30/10 2.0 3,620.31 08/31/09 2.0 3,600.07 08/16/10 2.0 2,732.10 08/17/09 2.0 3,362.22 08/02/10 2.0 2,757.10 08/03/09 2.0 3,082.10 07/19/10 2.0 2,417.10 07/20/09 2.0 2,777.10 07/05/10 2.0 3,530.29 07/06/09 2.0 3,487.10 06/21/10 2.0 2,717.10 06/22/09 2.0 2,949.76 06/07/10 2.0 3,402.58 06/08/09 2.0 2,997.10 05/24/10 2.0 2,935.06 05/25/09 2.0 3,835.12 05/10/10 2.0 2,967.23 05/11/09 2.0 2,687.10 04/26/10 2.0 2,417.10 04/27/09 2.0 3,422.60 04/12/10 2.0 3,147.46 04/13/09 2.0 2,754.90 03/29/10 2.0 2,417.10 03/30/09 2.0 2,507.10 03/15/10 2.0 2,552.25 03/16/09 2.0 2,643.35 03/01/10 2.0 2,762.22 03/02/09 2.0 2,473.92 02/15/10 2.0 3,145.06 02/16/09 2.0 3,221.51 02/01/10 2.0 2,692.32 02/02/09 2.0 2,977.71 01/18/10 2.0 3,115.06 01/19/09 2.0 3,257.72 01/04/10 2.0 2,512.16 01/05/09 2.0 2,833.92 12/21/09 2.0 4,173.40 12/22/08 2.0 4,226.30 12/07/09 2.0 3,052.48 12/08/08 2.0 2,707.71 11/23/09 2.0 3,782.96 11/24/08 2.0 3,945.31 11/09/09 2.0 4,072.80 11/10/08 2.0 3,731.51 10/26/09 2.0 2,417.11 10/27/08 2.0 2,617.71 TOTAL 52.0 79,811.88 TOTAL 52.0 81,771.43 { CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM FINAL WORKSHEET OF DISABILITY BENEFITS PAGE 4 July 23, 2015 GREGORY B KENNY H I G H Y E A R F I V E PAY EFF WEEKS WAGES 10/13/08 2.0 3,144.84 09/29/08 2.0 2,257.71 09/15/08 2.0 4,550.32 09/01/08 2.0 3,546.45 08/18/08 2.0 3,079.03 08/04/08 2.0 3,190.36 07/21/08 2.0 2,280.46 07/07/08 2.0 2,641.98 06/23/08 2.0 3,201.69 06/09/08 2.0 2,881.98 05/26/08 2.0 3,324.21 fi 05/12/08 2.0 2,641.98 04/28/08 2.0 2,314.51 04/14/08 2.0 2,375.78 03/31/08 2.0 2,281.98 03/17/08 2.0 2,306.36 03/03/08 2.0 2,396.37 02/18/08 2.0 3,058.97 02/04/08 2.0 2,628.29 01/21/08 2.0 2,885.24 01/07/08 2.0 2,755.70 12/24/07 2.0 3,806.66 12/10/07 2.0 2,620.41 11/26/07 2.0 3,135.99 11/12/07 2.0 4,650.22 10/29/07 2.0 3,181.63 10/15/07 1.0 1,107.99 TOTAL 53.0 78,247.11 CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM * * ESTIMATED WORKSHEET OF DISABILITY BENEFITS * * PAGE 1 July 13, 2015 NAME GREGORY B KENNY # 2863 SSN 594 30 SIM dept 21 ADDRESS 824 #C LIGHTHOUSE DRIVE CONTR(TAX) 60,981.49 NORTH PALM BEACH, FL 33 CONTR(NTX) .00 BIRTH 09/.4/1971 BALANCE 60,981.49 PEN HIRE 10/14/2002 ADJ HIRE 10/14/2002 ✓RETIRE 06/28/2015 TYPE D ELIG EARLY 00 /00 /0000 60 MO EARN 399,647.01 ELIG NORM 09/18/2021 AVG MO EARN 6,660.78 INJURY DTE 10/22/2011 SERV INCUR Y BASIC MO EARN 5,516.85 DISABILITY 06/28/2015 LAST SERV 06/28/2015 RET SERV Y M D 12 8 14 100% VEST 10/14/2007 AGE AT RETIRE 43 9 10 COM ANB /DIFF 44 -4 VESTED TDY /RET 100 100 SERV OVERR PAY HIST FLAG IRREGULAR VAC HRS /CD 6.89/EI HOURLY RATE 31.828 SIC HRS /CD 3.83 S3 VAC SIC PAYOUT .00 ACCRUE WKS .00 BIWEEKLY WC .00 BENEFICARY JUDITH L KENNY MONTHLY SOCSEC .00 BENEF BDAY 04/4F/1975 METHOD P5N 66 2/3% BASIC EARNING 3,677.86 RETIRE BENEFIT 3,677.86 WC OVERAGE .00 NET BENEFIT 3,677.86 TEN YEAR CERTAIN & LIFE 3,677.86 LIFE ANNUITY FACTOR: 1.00592 MODIFIED LIFE ANNUITY 3,699.63 100% SURV. FACTOR: .94480 100% SURV. ANNUITY 3,474.84 SURVIVOR BENEFIT 3,474.84 66 2/3% SURV. FACTOR: .97670 66 2/3% SURV. ANNUITY 3,592.17 SURVIVOR BENEFIT 2,394.76 50% SURV. FACTOR: .99350 50% SURV. ANNUITY 3,653.95 SURVIVOR BENEFIT 1,826.98 75% JOINT & LAST FACTOR: .96850 75% JOINT & LAST ANNUITY 3,528.54 SURVIVOR BENEFIT 2,646.41 50% JOINT & LAST FACTOR: .99350 50% JOINT & LAST ANNUITY 3,583.71 SURVIVOR BENEFIT 1,791.86 Prepared by CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM * * ESTIMATED WORKSHEET OF DISABILITY BENEFITS * * PAGE 2 July 13, 2015 GREGORY B KENNY H I G H Y E A R O N E H I G H Y E A R T W O PAY EFF WEEKS WAGES PAY EFF WEEKS WAGES 12/31/12 2.0 3,065.08 10 /10 /11 2.0 2,959.84 12/17/12 2.0 3,453.03 09/26/11 2.0 2,537.10 12/03/12 2.0 2,517.08 09/12/11 2.0 5,226.81 11/19/12 2.0 2,957.60 08/29/11 2.0 3,355.07 11/05/12 2.0 3,065.07 08/15/11 2.0 2,919.86 10/22/12 2.0 2,402.16 08/01/11 2.0 2,944.74 10/08/12 2.0 2,532.16 07/18/11 2.0 2,717.10 09/24/12 2.0 2,402.16 07/04/11 2.0 3,995.58 09/10/12 2.0 4,012.58 06/20/11 2.0 2,612.10 08/27/12 2.0 2,552.29 06/06/11 2.0 3,057.10 08/13/12 2.0 2,532.15 05/23/11 2.0 3,115.22 07/30/12 2.0 2,402.16 05/09/11 2.0 3,274.91 07/16/12 2.0 2,537.28 04/25/11 2.0 2,507.19 07/02/12 2.0 2,682.28 04/11/11 2.0 3,710.62 06/18/12 2.0 2,402.16 03/28/11 2.0 2,732.12 06/04/12 2.0 2,532.15 03/14/11 2.0 3,182.79 05/21/12 2.0 2,522.22 02/28/11 2.0 3,342.70 05/07/12 2.0 2,957.58 02/14/11 2.0 3,820.72 04/23/12 2.0 2,417.11 01/31/11 2.0 2,944.78 04/09/12 2.0 2,937.10 01/17/11 2.0 3,602.97 03/26/12 2.0 2,852.22 01/03/11 2.0 3,049.82 03/12/12 2.0 3,290.12 12/20/10 2.0 5,092.96 02/27/12 2.0 3,077.10 12/06/10 2.0 2,937.34 02/13/12 2.0 3,220.18 11/22/10 2.0 4,158.26 01/30/12 2.0 3,515.32 11/08/10 2.0 3,455.22 01/16/12 2.0 3,310.23 10/25/10 2.0 2,417.10 TOTAL 52.0 74,146.57 TOTAL 52.0 85,670.02 CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM * * ESTIMATED WORKSHEET OF DISABILITY BENEFITS * * PAGE 3 July 13, 2015 GREGORY B KENNY H I G H Y E A R T H R E E H I G H Y E A R F O U R PAY EFF WEEKS WAGES PAY EFF WEEKS WAGES 10/11/10 2.0 2,757.10 10/12/09 2.0 2,827.11 09/27/10 2.0 3,242.67 09/28/09 2.0 2,927.10 09/13/10 2.0 4,473.76 09/14/09 2.0 3,918.28 08/30/10 2.0 3,620.31 08/31/09 2.0 3,600.07 08/16/10 2.0 2,732.10 08/17/09 2.0 3,362.22 08/02/10 2.0 2,757.10 08/03/09 2.0 3,082.10 07/19/10 2.0 2,417.10 07/20/09 2.0 2,777.10 07/05/10 2.0 3,530.29 07/06/09 2.0 3,487.10 06/21/10 2.0 2,717.10 06/22/09 2.0 2,949.76 06/07/10 2.0 3,402.58 06/08/09 2.0 2,997.10 05/24/10 2.0 2,935.06 05/25/09 2.0 3,835.12 05/10/10 2.0 2,967.23 05/11/09 2.0 2,687.10 04/26/10 2.0 2,417.10 04/27/09 2.0 3,422.60 04/12/10 2.0 3,147.46 04/13/09 2.0 2,754.90 03/29/10 2.0 2,417.10 03/30/09 2.0 2,507.10 03/15/10 2.0 2,552.25 03/16/09 2.0 2,643.35 03/01/10 2.0 2,762.22 03/02/09 2.0 2,473.92 02/15/10 2.0 3,145.06 02/16/09 2.0 3,221.51 02/01/10 2.0 2,692.32 02/02/09 2.0 2,977.71 01/18/10 2.0 3,115.06 01/19/09 2.0 3,257.72 01/04/10 2.0 2,512.16 01/05/09 2.0 2,833.92 12/21/09 2.0 4,173.40 12/22/08 2.0 4,226.30 12/07/09 2.0 3,052.48 12/08/08 2.0 2,707.71 11/23/09 2.0 3,782.96 11/24/08 2.0 3,945.31 11/09/09 2.0 4,072.80 11/10/08 2.0 3,731.51 10/26/09 2.0 2,417.11 10/27/08 2.0 2,617.71 TOTAL 52.0 79,811.88 TOTAL 52.0 81,771.43 • CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM * * ESTIMATED WORKSHEET OF DISABILITY BENEFITS * * PAGE 4 July 13, 2015 GREGORY B KENNY H I G H Y E A R F I V E PAY EFF WEEKS WAGES 10/13/08 2.0 3,144.84 09/29/08 2.0 2,257.71 09/15/08 2.0 4,550.32 09/01/08 2.0 3,546.45 08/18/08 2.0 3,079.03 08/04/08 2.0 3,190.36 07/21/08 2.0 2,280.46 07/07/08 2.0 2,641.98 06/23/08 2.0 3,201.69 06/09/08 2.0 2,881.98 05/26/08 2.0 3,324.21 05/12/08 2.0 2,641.98 04/28/08 2.0 2,314.51 04/14/08 2.0 2,375.78 03/31/08 2.0 2,281.98 03/17/08 2.0 2,306.36 03/03/08 2.0 2,396.37 02/18/08 2.0 3,058.97 02/04/08 2.0 2,628.29 01/21/08 2.0 2,885.24 01/07/08 2.0 2,755.70 12/24/07 2.0 3,806.66 12/10/07 2.0 2,620.41 11/26/07 2.0 3,135.99 11/12/07 2.0 4,650.22 10/29/07 2.0 3,181.63 10/15/07 1.0 1,107.99 TOTAL 53.0 78,247.11 The Disability Decision Participant makes application for disability benefits (either duty or non duty). II. Applicant submits relevant medical documentation supporting claim. • Applicant must sign release. • Applicant must attach medical information from doctor(s). NOTE: Member must also apply for social security and workers' compensation. III. Application and medical records reviewed by a qualified physician or surgeon. IV. A qualified physician or surgeon makes medical recommendations to Board. V. Board reviews medical documentation and recommendation. The following criteria must be considered: A. Is the participant totally disabled from performing the functions of a police officer? If no, see Item VI. If yes, go on to B. B. Are there positions available for the participant to perform either with or without a reasonable accommodation? If yes, see Item VIII. If no, go on to C. C. Is the disability permanent? If no, see Item VI. If yes, go on to D. NOTE: The disability must have existed for three months before the benefit can begin. D. Is the disability caused by employment? If no, see Item VII. If yes, go on to E. NOTE: Remember presumptive illnesses - tuberculosis, hypertension, heart disease, meningococcal meningitis and hepatitis. Fla. Stat. § §112.181 and 185.34. These illnesses are presumed to have occurred in the line of duty unless the contrary is shown by competent evidence. E. Did disability arise from excluded items: 1. Intentionally self inflicted wound, injury or ailment 2. Excessive and habitual use of drugs, intoxicants or narcotics. 3. Injury or disease arising from willful and illegal participation in a fight, riot, civil insurrection or while committing a crime. 4. Injury or disease sustained while in armed forces 5. Injury or disease sustained after employment terminated 6. Injury or disease sustained while working for anyone other than the City and arising out of such employment. If yes, see Item VII. If no, go on to F. F. Decision - Board makes motion to grant disability benefits that is seconded and passed. VI. If answers to A or C were no, or to E was yes, the benefits should be denied, the participant should be notified of denial of benefits, and given the opportunity to appeal Board decision. VII. If answer to D is no, does participant have ten years of service? If no, the benefits should be denied, the participant should be notified of denial of benefits and given the opportunity to appeal Board decision. If yes, grant a non -duty disability benefit. VIII. If answer to B is yes, are there vacant positions which participant can fill? If yes, participant is not disabled from performing useful and efficient service. If no, go on to C. NOTE: In deciding each step, the Trustees must remember: 1. The burden of proof is on the applicant. In other words, the applicant must prove that the disability exists, is permanent, was caused in the line of duty and was not caused by one of the exclusions. 2. The written evidence submitted by the applicant must be credible. 3. The decision of the Trustees must be based on a preponderance of the evidence (more evidence in favor of one side than the other). \\day.syncedtool.com @SSL \DavW W W Root \Data \PENSION\AII Miscellaneous \Disability \The Disability Decision.wpd Barbara Ladue From: Kenny, Greg <KennyG @bbfl.us> Sent: Monday, July 06, 2015 9:38 AM To: 'Barbara Ladue' (ladueb @bbpdpension.com) Subject: SSD completion Attachments: SKM_454e15070608370.pdf Confirmation. Step 4 of 4. Apply for Benefits. Social Security Page 1 of 2 Social Security The Official Website of the U.S- Social Security Administration Apply for Benefits 1. Provide Background Information 2. Provide Disability Information 3. Sign Medical Release 4. Confirmation I Thank you for applying for disability online. I Print this page Your Confirmation Number is 18355376 You can check the status of your application after 5 business days. Go to "www.socialsecurity.gov" select "Check Your Application Status and enter your Confirmation Number. I Please note that in some cases, the application status cannot be updated because we are still reviewing your application We will contact you with any updates or questions we may have about your information. What you need to do next: 1 Gather the following documents. • Any medical evidence you already have about your disability, • Award letters, pay stubs. settlement agreements or other proof of temporary or permanent workers' compensation type benefits you received 2 Print your personalized cover sheet. 3. Send all of these items to your local office. SOCIAL SECURITY 801 BANYAN BLVD WEST PALM BEACH , FL 33401 - If you do not have all the documents listed above we will help you get any documents you need. Caution: Do not mail foreign records or any Department of Homeland Security (DHS) documents to us - especially those you are required to keep with you at all times. These documents are extremely difficult, time- consuming and expensive to replace if lost. and some cannot be replaced Instead, bring them to your Social Security office where they will be examined and returned to you View & Print the following: • Your Receipt • Electronically Signed Medical Release Form We recommend that you keep a copy of each for your records. We May Need Additional Documents Please gather the following document(s) and keep them in a convenient place so you will have them ready when you are contacted by a Social Security representative: Wages from your employer for last year (e.g., copy of your W -2 form). We can accept a photocopy of this document • Proof of your marriage. if we determine that you qualify for benefits as a spouse. We will contact you if we need this document Useful Links Contact Us https://secure.ssa.gov/i3368/Mrf001Subrnit.do 7/6/2015 Confirmation, Step 4 of 4, Apply for Benefits, Social Security Page 2 of 2 • Reporting Responsibilities: What Needs to be Reported • Frequently Asked Questions - Internet Benefit Claim • Social Security Online: What You Can Do Online • Voluntary Tax Withholding • Helpful Health Information Online • Prescription Assistance Done https : / /secure.ssa.gov /i3368 /MrtOO1 Submit.do 7/6/2015 rage 6 of Ab (1) Early retirement date. An employee who has attained age 50 and completed at least ten years of credited service may elect to terminate employment and retire on an early retirement datewhich may be the first day of any month after ten years of service and attainment of age 50. (2) Early retirement benefit. The monthly amount of early retirement benefits payable to a police officer who retires on the early retirement date shall be determined in accordance with Section 18- 169(a) based on credited service to the early retirement date subject to an actuarial reduction of 1.5% per year of service to take into account the police officer's younger age and the earlier commencement of retirement benefits. The early retirement benefit shall be paid in accordance with Section 18- 169(a). (c) Disability retirement. (1) Service incurred a. Any member who receives a medically substantiated service connected injury, disease or disability which injury, disease or disability totally and permanently disabled him or her to the extent that in the opinion of the Board of Trustees, he or she is wholly prevented from rendering useful and efficient service as a police officer shall receive a monthly benefit equal to 662/3% of his or her basic rate of earnings in effect on the date of disability. Such benefit shall be payable on the first day of each month, commencing on the first day of the month following the latter to occur of the date on which the disability has existed for three months and the date the Board of Trustees approved the payment of such retirement income. A disability retiree may select from the optional forms of benefits available to service retirees in accordance with Section 18 -170. In the event of recovery prior to the otherwise normal retirement date, credit for service during the period of disability shall be granted for purposes of subsequent retirement benefits. Subsequent retirement benefits will be actuarially reduced to account for the benefits that were paid during the period of disability. The amount of the disability benefit payment from the fund shall be reduced by any amounts paid from worker's compensation and the federal social security system. The reduction for social security benefits shall be in the amount of the primary insurance amount (PIA) only, and future increases, if any, in the disabled member's social security disability benefits shall not serve to reduce any further the disability benefit from the fund. The reduction for social security shall terminate upon the attainment of age 65. The pension benefit may only be reduced to the extent that the total of the benefits from this fund, workers' compensation and social security benefits exceed 100% of the disabled member's basic rate of earnings on the date of disability. However, in all cases the benefit will be at least 42% of average final compensation. b. Any condition or impairment of health of a member caused by tuberculosis; hypertension, heart disease, hardening of the arteries, hepatitis, or meningococcal meningitis resulting in total or partial disability or death, shall be presumed to be accidental and suffered in the line of duty unless the contrary be shown by competent evidence. Any condition or impairment of health caused directly or proximately by exposure, which exposure occurred in the active performance of duty at some definite time or place without willful negligence on the part of the member, resulting in total or partial disability, shall be presumed to be accidental and suffered in the line of duty, provided that such member shall have successfully passed a physical examination upon entering such service, which physical examination including electrocardiogram failed to reveal any evidence of such condition. In order to be entitled to presumption in the case of hepatitis, meningococcal meningitis, or tuberculosis, the member must meet the requirements of F.S. Section 112.181. The final decision whether a member meets the requirements for duty disability pension rests with the board and shall be based on substantial competent evidence on the record as a whole. (2) Nonservice incurred Effective October 1, 2000, any member with ten years of continuous file: / //H:BB %20Police% 200188 /Plan %20Doc /Plan %20Doc %20... 8/16/2013 Page 9of26 service who receives a nonservice incurred injury, illness, disease or disability, and which illness, injury, disease or disability totally and permanently disables him or her to the extent that, in the opinion of the Board of Trustees, he or she is wholly prevented from rendering useful and efficient service as a police officer, shall receive from the fund in equal monthly installments an amount equal to 3.5% of his or her average final compensation for each year of continuous service until death or recovery from disability whichever shall first occur, provided, however, the maximum benefit to which a member may become entitled under this paragraph shall not exceed 60% of his or her average final compensation during said period, but in all cases the benefit will be at least 25% of average final compensation during said period. Such benefit shall be payable on the first day of each month, commencing on the first day of the month following the latter to occur of the date on which the disability has existed for three months and the date the Board of Trustees approved the payment of such retirement income. (3) Medical Board Whenever it becomes necessary for the Board to avail itself of the services of physicians in the case of an application for disability retirement, the Board shall designate a Medical Board to be composed of competent medical authorities and/or specialists, as needed. The Medical Board shall arrange for and pass upon the medical examinations required under the provisions of this section, shall investigate all essential statements or certificates made by or on behalf of a member in connection with an application for disability retirement and shall report in writing to the Board its conclusions and recommendations upon all matters referred to it. The payment for such services shall be determined by the Board. (4) Return to active duty from disability retirement. In the event a member who has been retired on a pension on account of permanent and total incapacity regains his or her health and is found by the Medical Board designated by the Board to be in such physical and mental condition as to meet the requirements of the personnel department for service as a police officer of the city, the Board shall order his or her pension discontinued, and he or she shall be ordered to resume active duty in the city at the same rate of compensation currently in effect for his or her pay grade. The Board shall review periodically, in its discretion, the condition of any member receiving a pension for disability and if there is substantial evidence that the retired member is capable of performing service acceptable to the city as a police officer, he or she shall be ordered to resume active duty and his or her pension shall be discontinued. (5) Disability exclusions. No member shall be granted a disability pension upon a showing to the satisfaction of the Board: a. That the disability resulted from an intentionally self wound, injury or ailment, or b. That the disability resulted from excessive and habitual use of narcotics, drugs, or intoxicants (alcoholic beverages); c. That the disability resulted from an injury or disease sustained by the police officer while willfully and illegally participating in fights, riots, civil insurrections or while committing a crime; d. That the disability resulted from an injury or disease sustained by the police officer while serving in any armed forces. This exclusion does not affect members who have become disabled as a result of intervening military service under the federal Heroes Earnings Assistance and Relief Tax Act of 2008 (H.R. 6081; P.L. 100 -245); e. That the disability resulted from an injury or disease sustained by the police officer after employment has been terminated; or file: / //H1BB %20Police% 200188 /Plan %20Doc /Plan%20Doc %20... 8/16/2013 rage l u of Lb f. That, in the case of a duty disability only, the disability resulted from an injury or disease sustained by the police officer while working for anyone other than the city and arising out of such other employment. (6) Further disability provisions. Each member applying for a service incurred disability benefit from this fund shall be required to apply for disability benefits under social security, and, if applicable, workers' compensation. Furthermore, each person granted a service incurred disability shall be required to submit to the Board, no later than March 1 of each year, a statement showing the monthly amount of social security (PIA only) and workers' compensation benefits received by him or her as of March 1. Willful refusal by such persons to comply with these regulations shall be grounds for the termination of or nonapproval of disability benefits from this system. However, the Board shall exercise its discretion in each case. (d) Death benefit. (1) If any member shall die prior to retirement or other termination of employment with the city and that death is found by the Board of Trustees to have occurred in the line of duty regardless of the years of service, a death benefit shall be payable to the deceased member's spouse. The benefit shall equal 3.5% of average final compensation for each year of continuous service; provided, however, the benefit will be at least 30% of average final compensation. It shall be payable in equal monthly installments commencing the first day of the month following the date of death and ceasing upon the death of the spouse. If there is no spouse, the benefit, if any, will be paid to the deceased participant's estate. (2) If any member with at least ten years of continuous service shall die prior to retirement or other termination of employment with the city, a death benefit shall be payable to the deceased member's spouse. The benefit shall equal 3.5% of average final compensation for each year of continuous service. It shall be payable in equal monthly installments commencing the first day of the month following the date of death and ceasing upon the death or remarriage of the spouse. If there is no spouse, the benefit, if any, will be paid to the deceased participant's estate. (3) If a member dies before being eligible to retire, the heirs, legatees, beneficiaries or personal representatives of such deceased member shall be entitled to a refund of 100% of the contributions made by the member to the fund, without interest. (e) Separation from service. (1) Effective for terminations on and after October 1, 2002, if a member leaves the service of the city before accumulating aggregate time of five years toward retirement and before being eligible to retire, such member shall be entitled to a refund of all of his or her contributions made to the fund, without interest. (2) If any member who had been in the service of the city for at least ten years elects to leave his or her accrued contributions in the fund, such police officer upon attaining age 50 years or more (without reaching what would have been 20 years of service had he or she not terminated his or her employment) may receive an early retirement benefit at the actuarial equivalent of the amount of such retirement income otherwise payable to him or her at early retirement or upon attaining what would have been normal retirement had he or she not terminated his employment, such police officer may receive his or her accrued normal retirement benefit. (3) Effective for terminations after October 1, 2002, if any member who had been in the service file: / //H1BB %20Police% 200188 /Plan %20Doc /Plan %20Doc %20... 8/16/2013 Barbara Ladue 1 From: Pat Holt <bsjteam @robertdklausner.com> Sent: Monday, July 13, 2015 3:17 PM To: Toby Athol; Jason Llopis; Scott Caudell; Joe Degiulio; Barbara LaDue Cc: BSJ Team; Bonni Jensen; Scott Baur Subject: Boynton Beach Police Officers' Pension Fund (Kenny) All: The Gregory Kenny disability notebook which includes medical records, IME and FCE reports, etc. has been uploaded to the secure server for The Resource Centers. It consists of three folders. This will be discussed at the special meeting scheduled for July 21, 2015. You can access these records by going to the website below. Website: www.ResourceCenters.com (select Secure File Exchange) Userid: boyntonpolice The password will be sent to you in a separate email. If responding to this email, do not reply to all. Thanks, Pat qo Legal Assistant — Pension Team of Bonni Jensen Klausner, Kaufman, Jensen & Levinson 400 Executive Center Drive, Suite 207 West Palm Beach, FL 33401 -2922 Phone: 561 - 686 -6550 Fax: 561 - 686 -2802 i ,,L'f ti,.AS, w8 \4�\ LL iN\(1N I El 7080 Northwest 4 Street Plantation, Florida 33317 Telephone: 954 - 916 -1202 Facsimile: 954 - 916 -1232 CONFIDENTIALITY NOTICE: This communication is confidential, may be privileged and is meant only for the intended recipient. If you are not the intended recipient, please notify the sender ASAP and delete this message from your system. IRS CIRCULAR 230 NOTICE: To the extent that this message (or any portion thereof) concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 1 Barbara Ladue >441414444,441, From: Bonni Jensen <bonni @robertdklausner.com> Sent: Tuesday, July 14, 2015 4:48 PM To: Oldbury, Julie Cc: 'LaVerriere, Lori'; Barbara Ladue; 'Athol, Toby'; 'Llopis, Jason'; bsjteam; gary@pbcpba.org Subject: RE: Boynton Beach Police Pension Fund RE: Request for PBA Pension Amendment Attachments: Ord amendment CBA 2015 3% for new hires (00060881- 2).pdf; Ord amendment CBA 2015 3% for new hires (00060882).doc Julie, Attached per your below email is an ordinance amendment to the Boynton Beach Police Pension Fund plan document provisions. This amendment provides for a 3% multiplier for police officers hired after October 1, 2015. Please let me know if you have any questions about the amendment. Please let me know when first reading is expected. The ordinance as considered at first reading and the impact statement need to be sent to the Municipal Police and Fire Pension Office between first and second reading. Thanks! To make sure that your email is handled in a timely manner, please copy BSJTeam @robertdklausner.com. Bonni S. Jensen Klausner, Kaufman, Jensen & Levinson 400 Executive Center Drive, #207 West Palm Beach, Florida 33401 Telephone: 561 - 686 -6550 bonni(a,robertdklausner.com i.t'. 1N \( )N 7080 N.W. 4 Street Plantation, Florida 33317 Telephone: 954 - 916 -1202 Facsimile: 954 - 916 -1232 CONFIDENTIALITY NOTICE: This communication is confidential, may be privileged and is meant only for the intended recipient. If you are not the intended recipient, please notify the sender ASAP and delete this message from your system. IRS CIRCULAR 230 NOTICE: To the extent that this message or any 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 From: Oldbury, Julie [mailto:OldburyJ @bbfl.us] Sent: Thursday, July 09, 2015 2:06 PM To: Bonni S. Jensen Cc: LaVerriere, Lori Subject: FW: Boynton Beach Police Pension Fund RE: Request for PBA Pension Amendment Hi Bonni, Has the amendment for the police pension plan been prepared yet? Do you know what the time frame is for this? Thank you for your help. Respectfully, Julie Oldbury, Director of Human Resources and Risk Management Human Resources and Risk Management City of Boynton Beach 100 E. Boynton Beach Blvd. Boynton Beach, Florida 33435 o: 561 - 742 -6277 OtdburyJ @bbfl.us 1 www.boynton- beach.org America's Gateway to the Gulfstream Please be advised that Florida has a broad public records law and all correspondence to me via email may be subject to disclosure.Under Florida records law, email addresses are public records. Therefore, your e-mail communication and your e-mail address may be subject to public disclosure. From: Bonni S. Jensen [ mailto :bsjensen @perryjensenlaw.com] Sent: Sunday, June 07, 2015 9:04 PM To: Oldbury, Julie Cc: bsjteam; 'Barbara Ladue'; Athol, Toby; Llopis, Jason Subject: Boynton Beach Police Pension Fund RE: Request for PBA Pension Amendment Julie, I can prepare such an amendment. If I have questions, I will be sure to contact you. To make sure that Y our email is handled in a timely manner, please copy thepensionteam (a�perryjensenlaw.com 2 Bonni S. Jensen The Law Offices of Perry & Jensen 400 Executive Center Drive, #207 West Palm Beach, Florida 33401 Telephone: 561 - 686 -6550 Fax: 561 - 686 -2802 bsjensen(cr�perryjensenlaw. com CONFIDENTIALITY NOTICE: This communication is confidential, may be privileged and is meant only for the intended recipient. If you are not the intended recipient, please notify the sender ASAP and delete this message from your system. IRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. From: Oldbury, Julie [mailto:OldburyJPbbfl.us] Sent: Thursday, June 04, 2015 11:54 AM To: bsjensen @perryjensenlaw.com Subject: Request for PBA Pension Amendment Importance: High Hi Attorney Jensen, On June 2, 2015, the City and the PBA ratified new contracts for our Police Officers & Detectives, Police Sergeants, and Police Lieutenants. Attached are the pension articles (identical in each contract), which provide that effective October 1, 2015, new hires will have a three percent (3 %) multiplier. Can you please process a pension amendment to reflect this change? If you have any questions, please let me know. Thank you! Respectfully, Julie Oldbury, Director of Human Resources and Risk Management Human Resources and Risk Management City of Boynton Beach 100 E. Boynton Beach Blvd. 1 Boynton Beach, Florida 33435 o: 561 - 742 -6277 OldburyJ®bbfl.us 1 www.boynton- beach.org America's Gateway to the Gulfstream Please be advised that Florida has a broad public records law and all correspondence to me via email may be subject to disclosure.Under Florida records law, email addresses are public records. Therefore, your e-mail communication and your e -mail address may be subject to public disclosure. 3 ORDINANCE , 2015 AN ORDINANCE OF THE CITY OF BOYNTON BEACH, FLORIDA, AMENDING ARTICLE III, OF CHAPTER 18 OF THE BOYNTON BEACH CODE OF ORDINANCES, ENTITLED "MUNICIPAL POLICE OFFICERS' RETIREMENT TRUST FUND;" AMENDING SECTION 18 -169 PROVIDING FOR A 3% MULTIPLIER FOR POLICE OFFICERS HIRED ON OR AFTER OCTOBER 1, 2015; PROVIDING FOR CODIFICATION; PROVIDING FOR CONFLICT; PROVIDING FORSEVERABILITY;AND, PROVIDING FOR AN EFFECTIVE DATE HEREOF. WHEREAS, the City of Boynton Beach and the Palm Beach County Police Benevolent Association have agreed in collective bargaining that the multiplier for police officers hired on or after October 1, 2015 will be 3 %; and WHEREAS, the City Commission of the City of Boynton Beach, Florida, desires to revise its Police Officers' Plan in order to provide this administrative change; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA: Section 1. The foregoing "WHEREAS" clauses are hereby certified as being true and correct and are incorporated herein by this reference. Section 2. Section 18 -169 of Article III of Chapter 18 of the Boynton Beach Code of Ordinances is hereby amended as follows: Sec. 18 - 169. Requirements for retirement benefit amounts. (a) Normal retirement. (2) Normal retirement benefit. The normal retirement benefit payable to a police officer who retires on or after the normal retirement date shall be an amount equal to the number of years of his or her credited service multiplied by 3.5% of his or her average final 00060880.WPD;1 Page 1 of 5 (d) Death benefit. (1) If any member shall die prior to retirement or other termination of employment with the city and that death is found by the Board of Trustees to have occurred in the line of duty regardless of the years of service, a death benefit shall be payable to the deceased member's spouse. The benefit shall equal 3.5 % of average final compensation for each year of continuous service; provided, however, the benefit will be at least 30% of average final compensation. It shall be payable in equal monthly installments commencing the first day of the month following the date of death and ceasing upon the death of the spouse. If there is no spouse, the benefit, if any, will be paid to the deceased participant's estate. Effective [insert effective date], for all police officers hired on or after October 1, 2015, the 3.5% multipIier .rovided for in this • ara • ra • h shall be 3.0 %. (2) If any member with at least ten years of continuous service shall die prior to retirement or other termination of employment with the city, a death benefit shall be payable to the deceased member's spouse. The benefit shall equal 3.5 % of average final compensation for each year of continuous service. It shall be payable in equal monthly installments commencing the first day of the month following the date of death and ceasing upon the death or remarriage of the spouse. If there is no spouse, the benefit, if any, will be paid to the deceased participant's estate. Effective [insert effective date], for all police officers hired on or after October 1, 2015, the 3.5% multiplier .rovided for in this paragraph shall be 3.0 %. Section 3. It is the intention of the City Commission of the City of Boynton Beach that the provisions of this Ordinance shall become and be made a part of the Code of 00060880 WPD;1 Page 3 of 5 . Ordinances of the City of Boynton Beach, Florida. The Sections of this ordinance may be renumbered, re- lettered and the word "Ordinance" may be changed to "Section," "Article" or such other word or phrase in order to accomplish such intention. Section 4. All Ordinances or parts of Ordinances, Resolutions or parts of Resolutions in conflict herewith be and the same are hereby repealed to the extent of such conflict. Section 5. If any clause, section, or other part or application of this Ordinance shall be held by any court of competent jurisdiction to be unconstitutional or invalid, such unconstitutional or invalid part or application shall be considered as eliminated and so not effecting the validity of the remaining portions or applications remaining in full force and effect. Section 6. This Ordinance shall become effective when the following have occurred: (a) the City Commission has received and has accepted a report establishing the actuarial soundness of these amendments; (b) a copy of this Ordinance has been sent to the Florida Division of Retirement; and (c) when a collective bargaining agreement ratifying the foregoing changes to pension benefits has been ratified by the City Commission and the Municipal Police Officers' Pension Board of Trustees, or their successor organization, or a letter from such union stating it accepts the terms of this Ordinance or otherwise does not object to its contents. Upon satisfaction of all of the above requirements, then in that event, the terms and 00060880.WPD;1 Page 4 of 5 provisions of this Ordinance shall become effective. FIRST READING THIS DAY OF , 2015. SECOND, FINAL READING and PASSAGE THIS DAY OF , 2015. PASSED AND ADOPTED THIS DAY OF , 2015. CITY OF BOYNTON BEACH, FLORIDA Mayor Vice Mayor Commissioner Commissioner Commissioner ATTEST: CITY CLERK W: \W docs\LLP\ 150046 \GM \00060880. W PD 00060880.W PD; 1 Page 5 of 5 Barbara Ladue From: Bonni Jensen <bonni @robertdklausner.com> Sent: Tuesday, July 14, 2015 10:30 PM To: 'Athol, Toby'; 'Llopis, Jason'; Barbara Ladue Cc: bsjteam Subject: FW: Boynton Beach Police Pension Fund - changes to the Pension Planper collective bargaining All, Please add this item to the agenda for the meeting on Tuesday. To make sure that your email is handled in a timely manner, please copy BSJTeam @robertdklausner.com. Bonni S. Jensen Klausner, Kaufman, Jensen & Levinson 400 Executive Center Drive, #207 West Palm Beach, Florida 33401 Telephone: 561 - 686 -6550 bonni(crobertdklausner.com K, t_A,M.R ).11' !1,t 9 7080 N.W. 4 Street Plantation, Florida 33317 Telephone: 954 - 916 -1202 Facsimile: 954 - 916 -1232 Disclaimer: This e - mail is intended only for the individual(s) or entity(s) named within the message. This e -mail might contain legally privileged and confidential information. If you properly received this e-mail as a client or retained expert, please hold it in confidence to protect the attorney - client or work product privileges. Should the intended recipient forward or disclose this message to another person or party, that action could constitute a waiver of the attorney - client privilege. If the reader of this message is not the intended recipient, or the agent responsible to deliver it to the intended recipient, you are hereby notified that any review, dissemination, distribution or copying of this communication is prohibited by the sender and to do so might constitute a violation of the Electronic Communications Privacy Act, 18 U.S.C. section 2510 -2521. If this communication was received in error we apologize for the intrusion. Please notify us by reply e-mail and delete the original message. Nothing in this e-mail message shall, in and of itself, create an attorney - client relationship with the sender. IRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. From: Pete.Strong @gabrielroeder.com [ mailto :Pete.Strong @gabrielroeder.com] Sent: Tuesday, July 14, 2015 4:13 PM To: Bonni Jensen 1 Cc: bsjteam; AtholT @bbfl.us; Llopisi @bbfl.us; ladueb @bbpdpension.com; c100550 @gabrielroeder.com in g RE: Boynton Beach Police Pension Fund changes to the Pension Plan per collective bargaining Subject: p g Y g Thanks Bonni! Since this amendment would only affect future employees hired after 10/1/2015, there would be no actuarial impact on the current year or next year's costs. The only way to measure the long -term actuarial impact would be to do projections before and after reflecting the amendment. While not required by the State, when an ordinance only affects future hires we often include projections to show the estimated future cost impact. Do you know if the Board /City is interested in including projections in this actuarial impact statement? Thank you, -Pete Peter N. Strong, FSA, EA, FCA, MAAA Senior Consultant and Actuary Gabriel, Roeder, Smith & Company One East Broward Boulevard Suite 505 Fort Lauderdale, FL 33301 -1804 Telephone: (954) 527 -1616 (ext. 2102) Direct: (954) 713 -2102 Fax: (954) 525 -0083 pete.strong@gabrielroeder.com The above communication shall not be construed to provide tax advice, legal advice or investment advice. Notice of Confidentiality: This transmission contains information that may be confidential and that may also be privileged. Unless you are the intended recipient of the message (or authorized to receive it for the intended recipient), you may not copy, forward, or otherwise use it, or disclose its contents to anyone else. If you have received this transmission in error, please note the sender immediately and delete it from your system. Please consider the environment before printing this e-mail. From: Bonni Jensen [ mailto :bonniCarobertdklausner.com] Sent: Tuesday, July 14, 2015 3:58 PM To: Strong, Pete (FLP1) Cc: bsjteam; 'Athol, Toby'; 'Llopis, Jason'; Barbara Ladue Subject: Boynton Beach Police Pension Fund - changes to the Pension Plan per collective bargaining Pete, Attached is a draft amendment to the Pension Plan which provides for a 3% multiplier for police officers hired on or after October 1, 2015. This has not yet been scheduled for first reading, but I am expecting that it will be. The collective bargaining agreements (Officers', Sergeants', and Lieutenants' units) were all ratified before July 1, 2015 so Chapter 2015 -39 (SB 172) was not taken into consideration for this amendment. Please let me know if you have any questions regarding this matter. To make sure that your email is handled in a timely manner, please copy BSJTeam @robertdklausner.com. Bonni S. Jensen 2 Russell , Investments AI Quarterly Inves Rev City of Boynton Beach Police Retirement Fund SECOND QUARTER 2015 •••••••••••••••••••••••••••••••••••••••••••• Quarterly t tR • City of Boynton Beach Police Retirement Fund Your Client Service Team Mary Jean Serene, CFA Karen Pheneger Jacqueline Pedraza Michael Auger Client Executive Client Service Analyst Senior Account Executive Regional Director (877) 500 -1298 (800) 426 -7969 (800) 455 -3782 (312) 780 -7124 (206) 505 -1972 (206) 505 -1939 (813) 288 -4624 mjserene @russell.com kpheneger @russell.com jpedraza @russell.com mauger @russell.com Russell Investments Russell Investments Russell Investments Russell Investments 71 S. 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Russell Investments AN M Russell 11/11 Investments Economic and Financial Markets Review Second Quarter 2015 ••••••••••••• ••••••••••••••••••••••• Capital markets Periods ending June 30, 2015 Capital Market Returns 20 17.7 17.5 15 111.6 11.6 10 8.7 8.2 8.6 Ill 7.3 5 4.7 4.5 3.8 .2 14.6 3.3 15.4 [4.4 5.5 0 ,.,.,.�.., � W ', -0. - 1 ! -0.4 ilit cc - -3.2 -3.9 -2.6 -5.1 p -10 -6.9 -8.8 w ■ U.S. Equity -15 ■ Non -U.S. Developed Equity -20 • Emerging Markets • U.S. Bonds - 25 • Global REITs -23.7 - 30 Commodities 2Q 2015 YTD 1 -Year 3 -Years 5 -Years 10 -Years Annualized U.S. Equity: (Russell 3000® Index) U.S. stock index which includes the Capital Markets: 3,000 largest U.S. stocks as measured by market capitalization > U.S. equity markets finished flat for the quarter. Large caps, as Non -U.S. Developed Equity: (Russell Developed ex -U.S. Large Cap measured by the Russell 1000® Index, posted a 0.1% return. Index) International market index that includes Western Europe, Japan, Small cap stocks, as measured by the Russell 2000® Index, Australia and Canada returned 0.4 %. Emerging Markets: (Russell Emerging Markets Index) Emerging > Developed non -U.S. equity markets returns were muted, hurt by markets index that includes S. Korea, Brazil, Russia, India and China economic uncertainty and choppy growth. U.S. Bonds: (Barclays U.S. Aggregate Bond Index) Broad index for > Emerging markets closed the quarter on a slight up note despite U.S. Fixed Income market pockets of volatility. Global REITs: (FTSE EPRA/NAREIT Index) Index for global publicly > U.S. bonds were down -1.7% due to rising interest rates. traded real estate securities > Global REITs finished down almost -7.0% as the rising interest Commodities: (Bloomberg Commodity Index Total Return) Broad rate environment hampered results. index of common commodities > Commodities was the top performing asset class during the quarter, benefiting from rising energy prices. Source: Russell, Barclays, Bloomberg, and FTSE NAREIT. Index returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. p.5 Russell Investments Central banks decoupling Regional central bank decisions reflecting economic progress Central bank activity Monthly bond purchases ($ billions) > U.S. Fed has stopped government bond 100.0 purchases, rate hike expected $65.0 $55.0 > European Central Bank purchasing bonds 50.0 at a rate of $65b per month $0.0 > Bank of Japan purchasing bonds at a rate 0.0 of $55b per month ■ Europe •Japan ■ U.S. Source: WSJ.com as of June 2015 GDP year over year growth % Unemployment % Inflation % > U.S. recovery continues > U.S. unemployment improving > U.S. inflation remains low > Europe showing improvement > European unemployment still high > European concerns remain in > Japanese coming off 2014 > Japan's rate low, but higher than regard to deflation recession historical norms > Japanese inflation non- existent 11.1 2.9 1.7 1.0 5.3 0.8 3.3 -0.9 0.1 •Europe •Japan ■ U.S. •Europe •Japan ■ U.S. •Europe •Japan ■ U.S. Data as of March 2015 Data as of May 2015 Data as of May 2015 Source: U.S. Bureau of Labor Statistics, EuroStat, Cabinet Office Japan. p.7 L] Russell Investments AO Russell , Investments Account Review Second Quarter 2015 ••••••••••••• ••••••••••••••••••••• Asset Summary Report City of Boynton Beach Police Retirement Fund As of June 30, 2015 Market Actual Policy Holding Value Holding Holding Variance Boynton Beach Police Officers Retirement Trust Investment Account - QU7W Total Assets $ 80,736,633 100.00 % 100.00 % -- RTC Multi -Asset Core Fund 31,214,835 38.66 39.00 -0.34 RTC Russell LC Defensive Equity Fd 20,859,556 25.84 26.00 -0.16 RTC Multi- Manager Bond Fund 22,424,022 27.77 28.00 -0.23 RTC Real Estate Equity Fund 1 5,852,120 7.25 7.00 0.25 Cash, Payable /Receivable 386,099 0.48 0.00 0.48 Please read the endnotes included with the report. Fndnotes 1 Market value is as of the quarter ending 03/31/15. PRELIMINARY 9 -Jul -2015 1:40:29 PM EDT Copyright (c) Russell Investments 2015. All rights reserved. p.10 LJ Russell Investments AN •••••• ••••••• ••••••••••••••••••••••••••••••• Performance Report City of Boynton Beach Police Retirement Fund As of June 30, 2015 Annualized Market One Three Year to FYTD One Three Five Ten Since Inception Value Month Months Date 09/30 Year Years Years Years Inception Date Boynton Beach Police Officers Retirement Trust Investment Account - QU7W Total Assets -Gross 1,2 $ 80,736,633 -1.60 % -0.38 % 2.03 % 5.15 % 5.09 % 10.57 % 11.00 % 6.31 % 6.80 % 07/01/2002 Total Assets -Net 1.2 80,736,633 -1.65 -0.55 1.67 4.57 4.31 9.71 10.13 5.52 6.01 07/01/2002 Russell Custom Benchmark 3 -- -1.81 -0.86 1.01 3.71 3.46 9.23 9.94 5.88 6.44 -- Consultant Benchmark ° -- -1.72 -0.72 0.92 2.92 2.09 7.41 9.18 5.81 6.26 -- Total Liquid Return Seeking 52,074,391 -1.96 0.08 2.62 6.39 5.73 -- -- -- 13.57 08/31/2012 RTC Multi -Asset Core Fund 31,214,835 -1.94 0.44 3.95 6.46 4.67 -- -- -- 12.54 08/31/2012 Multi -Asset Core Composite Bmk 5.6 -- -2.27 -0.44 2.25 3.76 1.72 -- -- -- 10.83 -- RTC Russell LC Defensive Equity Fd 20,859,556 -1.99 -0.48 0.65 6.25 7.29 -- -- -- 13.08 09/18/2013 Russell 1000 Defensive Index (Linked) -- -2.37 -0.85 -0.36 5.01 6.20 -- -- -- 12.43 -- Total Fixed Income 22,424,022 -1.17 -1.59 0.32 1.92 2.48 3.19 4.76 5.31 5.46 09/01/2002 Barclays U.S. Aggregate Bond Index -- -1.09 -1.68 -0.10 1.69 1.86 1.83 3.35 4.44 4.57 -- RTC Multi - Manager Bond Fund 22,424,022 -1.17 -1.59 0.32 1.92 2.48 3.19 4.76 -- 6.63 09/30/2008 Barclays U.S. Aggregate Bond Index -- -1.09 -1.68 -0.10 1.69 1.86 1.83 3.35 -- 4.64 -- Total Alternative Investments 2 5,852,120 0.00 0.00 3.44 7.25 10.84 12.51 13.32 - 4.38 07/01/2006 Please read the endnotes included with the report. PRELIMINARY 9 -Jul -2015 1:40:29 PM EDT Copyright (c) Russell Investments 2015. All rights reserved. Past performance is not indicative of future results. p.12 2 Russell Investments All � ll Invest Russell Multi- Asset Core Fund Rev Second Quarter 2015 ••••••••••••• ••••••••••••• •••••••••••••••••• Performance impact Description ++ Significantly positive RTC MuIti-Asset Core Fund + Positive - Fund positioning — second quarter 2015 Negative -- Significantly negative Strategic Positions Justification Quarterly Impact PM Action Small cap, value, and • Consistent with our strategic beliefs, we N/A Despite this long term strategic belief, after a strong momentum overweights in believe these factor biases have long run by small cap and value over the past 5 years, equity term excess return potential neutralized these factor biases in 2014 We remain 50% hedged Passive 50% currency hedge • Hedging currency helps reduce regret, - gives us ability to be tactical and can reduce overall volatility Tactical Tilts Justification Quarterly Impact PM Action Underweight interest rate • Expensive relative to their historical ++ Maintained view in Q2 sensitive equities (REITs, levels, not likely to perform well in a Utilities, high dividend yield) rising interest rate scenario Overweight Japan (hedged) • Abenomics and attractive valuation + Neutralized Japan exposure towards the end of the make Japan favorable equity opportunity quarter after a strong run Overweight Europe (hedged) • Low valuations, a supportive ECB and - Added to position from Japan on weakness earnings improving on a weak Euro surrounding the "Grexit" could lead to outperformance Overweight Growth • Expected long term mean reversion + Value managers have rebounded somewhat, but we Managers following value manager outperformance have not yet begun to increase weights there Overweight USD • Economic growth, rising rates and policy + Continue to maintain underweight to CAD and AUD divergence could lead to strong USD Underweight Commodities • Supply /demand imbalances and strong - Remain underweight but expect to slowly add on dollar would cause headwinds weakness to lock in gains on what has been a Selection Impact Justification Quarterly Impact PM Action Active manager stock • Idiosyncratic in nature; Russell has ++ Active managers continued to perform well in Q2 selection as the main driver differentiated research and managers primarily driven by growth managers of excess returns with skill Past performance is not indicative of future results. Any stock level commentary is specific to the impact on fund performance only and is not a recommendation to purchase or sell any specific security. This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund.. p.15 1] Russell Investments AM • •• 9••••••• RTC Multi -Asset Core Fund - period ending June 30, 2015 Global Equities Regional Exposure Sector Exposure Local USD 1 Local USD Index Return Index Return Index Return Index Return Utilities a -3.7% -2.7% US 0.2% 0.2% Telecom M., 2.1% 3.2% UK ■ -2.1% 3.6% IT -0.7% -0.6% Japan El 5.2% 3.1% Financials 0.8% 1.8% -- Health Care MINIMINIIIIIIIMM 0.9% 1.9% Canada ` -1.8% -0.4% Cons. Staples -1.8% -0.5% EMEA ex UK M. -3.8% -0.2% Cons. Disc. II.II 0.5% 1.1% Industrials IIIIIMIIINM1 -2.1% -1.5% Asia /Pacific Ex Japan ` 3.0 /o p -2.6% Materials i -1.9% -0.6% Emerging ! 1.0% 1.0% Energy -0.9% 0.3% 0% 20% 40% 60% 80% 0% 5% 10% 15% 20% 25% • Russell Multi -Asset Core Fund - Global Equities • Russell World Cap Index • Russell Multi -Asset Core Fund - Global Equities • Russell World Cap Index Real Assets Global Real Estate Exposure Global Infrastructure Exposure Commodities Exposure Hotel and Leisure Cash /Other alt k s 1 & 19% Specialized 507 ,..„- - 1% Residential tither 17 % Railiracks 15% Development 5,. % 11 Ill Livestock 5% Nz Operating 70 °/0 -- Railroads 5% _iii Sof[s 5% Industrial 3 %___/:: ': - Retail 24% Marine Ports Services 6% Electric Utilities 15% Health Care Gas Utilities 4% 5 %' Precious Metals 15% IA Airport Services 8% G rains Oil $Gas 17% Diversified 24%1 Office 12% Multi- Utilities 11 Storage l Industrial Transportation Meals 14% 13% The Russell Multi-Asset Core Fund is a dynamic, diversified portfolio designed to capture market opportunities. The underlying allocations to various asset classes will shift over time, but the overall strategic allocation will remain 75% global equity /15% marketable real assets /10% U.S. fixed income. The Russell Multi-Asset Core Fund invests in underlying funds of the Commingled Employee Benefit Funds Trust and /or separate accounts managed by Russell Trust Company. Prior allocations available upon request. Russell Multi -Asset Core Fund is an investment fund of the Russell Trust Company Commingled Employee Benefit Funds Trust. It is not a fund of Russell Investment Company, nor a mutual fund registered under the Investment Company Act of 1940. 5 Source: FactSet p.17 1] Russell Investments ••.••.•.•..•• •00.•••00•.•••••••.•• RTC Multi -Asset Core Fund Asset allocation and advisor lineup - as of June 30, 2015 ASSET CATEGORY Global Equity Real Diversifying Fixed Income 75.9% 12.9% 6.7% Global Equities Global ex US Equity US Large Cap Regional Small Cap Emerging Markets Global Real Estate Global Infrastructure Global Commodities US Agg Bonds Cash 48.0% 14.7% 7.7% 2.3% 3.2% 2.8% 5.1% 5.0% 6.7% 4.5% ADVISORS /STRATEGIES Hams Axiom SGA RTC Small Cap Fund RTC Emerging Markets RTC Global Real Estate RTC Global RTC Commodities Fund RTC Quantitative Bond Cash Fund Securities Fund Infrastructure Fund Fund 4.6% 3.6% 7.7% 2.3% 3.2% 2.8% 5.1% 4.2% 6.7% 4.5% Perkins MFS Ancora Advisors Alliance Bernstein Cohen & Steers Cohen & Steers CoreCommodity Neuberger Berman 8.3% 3.9% Sanders Polaris DePrince Axiom INVESCO Colonial First Credit Suisse 7.3% 4.0% • Wellington Pzena EAM Delaware Morgan Stanley Lazard Gresham 6.0% 3.2% Russell Positioning Russell Backwardation Strategies Falcon Point Harding Loevner Russell Trust Company Nuveen Strategy 21.8% Netols Genesis Mount Lucas Management 0.8% Robeco Numeric Snow Capital Oaktree Summit Creek Westwood Russell Positioning Strategies Allocations and Advisors /Funds /Strategies are as of June 2015. Current data may be different. The Russell Multi -Asset Core Fund is a dynamic, diversified portfolio designed to capture market opportunities. The underlying allocations to various asset classes will shift over time, but the overall strategic allocation will remain 75% global equity /15% marketable real assets /10% U.S. fixed income. This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. p.19 Russell Investments ■ El, Russell V /IJ Investments Russell U•S• Equity Review Second Quarter 2015 •• •••• ••• • ••• • ••••••••• • •••••• • •• RTC Large Cap Defensive Equity Fund Developments and outlook — second quarter 2015 Fund Outlook & Positioning > Continuing to sell out of the money index put options as a portion of the cash equitization program > The Fund has a tilt toward higher 12 -month momentum, higher value stocks, and higher beta > The Fund is underweight the largest stock by market capitalization and the highest dividend yielding stocks. As interest rates rise, higher yielding stocks are expected to lag the market > The Fund is overweight to the healthcare sector and underweight the technology sector Source: Russell There is no guarantee that any stated expectations will occur. This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. p.22 G2 Russell Investments AN F7, Russell V/IJ Investments Russell Fixed Income Review Second Quarter 2015 ••• •• • •• • •••• • ••• • •••••• • •••• ••• •• ••• • •••••• RTC Multi- Manager Bond Fund Developments and outlook — second quarter 2015 Fund Activity > Part -way through the quarter, we moved the fund's overall neutral duration position to slightly long (or from short to neutral for U.S. and European duration) as yields rose sharply Fund Outlook & Positioning > The Fund is positioned in a way that is cautious but opportunistic towards credit, with exposure in- line with our strategic overweight. Continued monetary policy support and stable corporate fundamentals affirm overweight, but we are wary of maturing credit cycle and limited scope for spread compression given lower market liquidity risk within corporate bond markets > We will continue to take advantage of and refine diversifying currency and country strategies as the credit cycle matures and rates are challenged > We expect sustained demand for high - quality sovereign bonds, even as central bank policies diverge. We anticipate broadly accommodative monetary policy around the world will anchor rates, while diverging economic cycles and policy dynamics will also create relative value opportunities Past performance is not indicative of future results. Any stock level commentary is specific to the impact on fund performance only and is not a recommendation to purchase or sell any specific security. Advisors listed are current as of June 2015. Russell has the right to engage or terminate an advisor at any time and without notice. This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. p.25 Russell Investments F7, Russell IMJ Investments R usse ll P r i vate Real Estate Fund R ev i ew First Quarter 2015 ••••••••••••• ••••••••••••••••••••• RTC Real Estate Equity Fund Developments and outlook — first quarter 2015 Fund Activity: > RTC -REEF produced a total gross return of 3.44% for 1Q 2015, comprised of 1.11% income and 2.34% appreciation; outperforming its benchmark by 4 basis points > Appreciation continued to surprise to the upside during the quarter due to continued strong demand from strategic foreign and domestic investors JPM Strategic and Clarion Lion outperformed the benchmark by margins of 56 and 9 basis points, respectively UBS Trumbull, MS PPF, and Invesco Core underperformed the benchmark by margins of 41, 19, and 12 basis points, respectively > Leverage ratio remained fairly steady at 23.1%; in line with guideline but slightly above benchmark of 23.3% Fund Outlook & Positioning: > Rent growth prospects shifting from apartments to industrial and office > Overweight Pacific region growth markets with favorable demographics and economic drivers > Expected strong capital market support for the asset class, supporting portfolio valuations > Final proceeds from Clarion Lion Properties Fund termination expected October 2015 > Seek to enhance performance through niche - oriented core /core plus fund (Addition of Morgan Stanley Prime Plus) > All eligible outstanding redemption requests funded in July 2015. Market continues to exhibit acceptable liquidity > Estimated 2Q15 gross total return of 4.31 % exceeds Benchmark preliminary gross total return of 3.91 % Indexes are unmanaged and cannot be invested in directly. Past performance is not indicative of future results. Advisors are current as of March 31, 2015. Russell has the right to engage or terminate an advisor at any time and without notice. This is a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust; it is not a mutual fund. "Benchmark is the NCREIF Fund Index Open -end Diversified Core Equity - Equal Weight (NFI- ODCE -EQ) p.28 2 Russell Investments MI Russell , Investments Appendix .. <" a ... Ir Absolute Return Fixed Income •••••••••••••• •••••••••••••••••••••••••••••• RIFL Absolute Return Fixed Income Fund What is it? > A combination of liquid Tong -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 placement. p.31 1] Russell Investments AI ••••••••••••• ••••••••••••••••••••••••••••••• RIFL Absolute Return Fixed Income Fund - period ending June 30, 2015 Strategy Annualized Performance Inception Seeks to outperform the 3 Month LIBOR Constrained Index 202015 Year to date One year Three years Five years to dater (USD Hedged) over an interest rate cycle. RIFL Absolute Return Fixed Income Fund - 0.88% • 1 09% ° � 9 ) Y 2.31 / -% - -% 1.52% Barclays 3 Month USD LIBOR Cash Index 0.07 0.14 0.26 -- -- 0.25 Quality Distributions 1 Inception 03/31/14. The date shown represents the date the index comparison began and may not be the actual index inception date. y Fund (%) Index ( %) 2 Source: Barclays 3 Month USD LIBOR Cash Index, used with permission. Barclays 3 Month USD LIBOR Cash Index is licensing the Barclays AAA 72.18 100.0 3 Month USD LIBOR Cash Index Indices "as is ", makes no warranties regarding same, does not guarantee the quality, accuracy, and/or com- pleteness of the Barclays 3 Month USD LIBOR Cash Index Indices or any data included therein or derived therefrom, and assumes no liability AA 1.73 _ 0.0 in connection with their use. A 3.30 0.0 202015 102015 BBB 13.97 0.0 Characteristicss Barclays 3 Month USD Barclays 3 Month USD BB 5.98 0.0 Fund LIBOR Cash Index Fund LIBOR Cash Index B 1.38 0.0 Total Net Assets 5115.93M $149.71T $116.09M 5149.60T CCC & Below 0.0 0.0 Weighted Average Yield to Maturity 0.14% 0.28% 0.48% 0.27% Unrated 1.46 0.0 Weighted Average Duration 0.74 0.25 0.94 0.25 1 Source: Wilshire Average Quality* Aa3 Aaa Aa3 Aaa • 1 Source: Wilshire 20 Currency Exposure ( +) Portfolio Sector Weightings ( %) Fund Manager Styles USD 28.12 Fund Target Weightings % 202015 102015 GBP 5 . 3 0 Cash 63.51 j Currency 55 55 i NZD 3.84 Govt 8.66 • Multistrat 45 45 KRW 1 , Govt related (Quasi) ! 5.75 SEK 0.11 .. Finance 9.78 Manager Diversification Industrial 9.05 Utility 1.88 2Q Currency Exposurel ( - Portfolio ABS 0.84 Mew Russell i EUR -10.67 Other 0.52 Currency Group Investments 5% JPY -5.44 1 The Other sector includes pooled investment vehicles, certain deriv- 50% BRL 5 37 atives, stocks and other investments not falling within one of the other listed sectors. CHF -3.92 Blue Bey CNY -6.69 Investment Grade 1 Source:Wilshire Absolute Return Bond Investment Fund 45% Managers listed are current as of June 30, 2015. Russell has the right to engage or terminate a manager at any time and without notice. This is a fund of Russell Institutional Funds, LLC; it is a private placement. It is not a mutual fund or a fund of the Russell Trust Company Commingled Employee Benefit Funds Trust. Performance is shown gross of fees. Fees will reduce the overall performance of the Fund. Indexes are unmanaged and cannot be invested in directly. Past performance is not indicative of future results. *The sum of the debt instrument quality ratings is based upon the Barclays index methodology, which reflects the ratings of S &P and Moody's such that if both S &P and Moody's rate an instrument, the lower of the two ratings is used, and if only one rates the instrument, that rating is used. If the debt instrument has not been rated by any of these two ratings agencies, the security is classified as "Unrated." p.33 1] Russell Investments ■ BCA Burgess Chambers & Associates, Inc. Institutional Investment Advisors www.burgesschambers.com r BOYNTON BEACH POLICE PENSION FUND INVESTMENT PERFORMANCE PERIOD ENDING JUNE 30, 2015 The following investment information was prepared by BCA, relying upon data from statements provided by the plan custodian and /or investment manager(s). BCA BCA reviews transactions provided by the custodian and uses reasonable care to ensure the accuracy of the data contained herein. However, BCA cannot guarantee the accuracy of the custodian's statement. Boynton Beach Police Pension Fund BCA Market Perspective Volatility Has Returned July 2015 The U.S. stock markets have seen a significant increase in volatility over the past several weeks with news out of Greece and China continuing to shake investor confidence. But why is this news having such a significant impact on our domestic markets? The Greek economy accounts for less than 0.38% of the world's Gross Domestic Product (GDP). Most major U.S. institutions divested themselves of Greek debt several years ago when the Greece debt crisis first surfaced in the global markets. So why then is Greece important to U.S. investors? The answer is the potential impact the Greece crisis could have on other countries, particularly countries in the Eurozone. This could then have a direct impact on the growth rates in Europe. With over 25% of the S &P 500 earnings coming directly from Europe, any significant slowdown in Europe would have an impact on earnings for many U.S. companies. In addition, many European banks own Greek debt. A default by Greece could have a major impact on many of these banks. While most U.S. banks do not have direct exposure to Greek debt, many do have indirect exposure through the European banks. In addition, other European countries with high debt exposure (i.e. Spain and Italy) will no doubt be watching closely and demanding similar treatment from the stronger countries, such as Germany and France. Another major contributor to the recent increase in volatility has been China. China's stock market has taken a significant dive after an extraordinary run over the previous several months. China's market is like no other and the government has stepped in with aggressive actions to limit sales and encourage additional investments in stocks. China's growth rate is expected to drop to 3 -5% by most economists over the next year. While still healthy, it is a significant drop from recent years and has caused commodity prices to drop as demand from China is expected to decline. With China's GDP representing approximately 16.7% of the world's economy, any slowdown could have an impact on earnings for any companies invested heavily in China. While these events have had a major role in increased volatility, the good news is that the U.S. economy appears to be improving, interest rates remain low, earnings have been strong and the valuations on stocks, while slightly above long term averages, appear to be attractive given the current low rate environment. There continues to be talk of a lending rate hike by the Federal Reserve, but given the problems in Greece and China and the strength of the dollar, we continue to believe any rate hike will be pushed out to the end of this year at the earliest. But even if we see a hike earlier than expected, it would most likely be .25% or less and should have a minimal and most likely a short term impact on stocks. Disclosure: All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. Content should not be regarded as a complete analysis of the subjects discussed or as personalized investment advice. All investment strategies have the potential for profit or loss. References to market performance in publications do not represent the returns achieved by Burgess Chambers & Associates or any of its advisory clients. 1 1 Boynton Beach Police Pension Fund Total Fund Investment Summary June 30, 2015 • For the quarter, the Fund experienced an investment loss of -0.1% gross (or -0.3% net; - $230K), which performed in line with the Policy Benchmark (- 0.3 %). The best performing asset category was the RTC Real Estate Equity Fund ( +4.3 %). • For the Fiscal year to date, the Fund earned $3.9 million or +5.5 gross ( +4.8% net). This exceeded the Policy Benchmark by approximately 1.9 %. • For the year, the Fund earned $3.7 million or +5.4% gross ( +4.6% net), exceeding the Policy benchmark ( +2.9 %) and ranking in the top 15th percentile. • The best performing asset category for the year was the RTC Real Estate Equity Fund ( +15.7 %). • For the three -year period, the Fund earned $19.9 million or +10.6% ( +9.8% net), which was above the Policy Benchmark ( +9.3 %) and above the actuarial investment return assumption rate ( +7.75 %). • For the five -year period, the Fund earned $30.1 million or +11.0% ( +10.2% net), which was in line with the Policy Benchmark ( +10.5 %) and above the actuarial investment return assumption rate ( +7.75 %). 2 BCA_ Boynton Beach Police Pension Fund Total Fund Investment Performance June 30, 2015 Dollars Quarter One Year Beginning Market Value 82,350,304 76,782,315 Ending Market Value 80,967,512 80,967,512 Net Contributions - 1,152,543 +493,587 Investment Gain /(Loss) - 230,249 +3,691,611 Investment Return, net -0.3% +4.6% Policy Benchmark -0.3% +2.9% Value Added (pts.) 0.0 +1.7 Fiscal Year: October 1st — September 30th 3 13(:\ Boynton Beach Police Pension Fund Total Fund Investment Policy Review June 30, 2015 3 L( :A Boynton Beach Police Pension Fund Total Fund Investment Policy Review June 30, 2015 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. ® ❑ The total Fund's annualized five -year performance achieved the +7.75% actuarial assumption rate. ® ❑ Multi Mgr Bonds annualized three -year performance achieved the fixed income benchmark. ® ❑ Multi Mgr Bonds annualized three -year performance ranked in the top 40th percentile of the universe. ® ❑ Multi Mgr Bonds annualized five -year performance achieved the fixed income benchmark. ® ❑ Multi Mgr Bonds annualized five -year performance ranked in the top 40th percentile of the universe. Z ❑ 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 56.8% which did not exceed 70% of Fund's assets at market value. ® ❑ Foreign equity investments were 21.0% (at market) and did not exceed the 25% of the total Fund's assets at market. ® ❑ Asset allocation among fixed income was 30.6% (at market) within the 30% minimum limitation. ® ❑ Asset allocation among alternatives was 12.1% (at market) within the 20% maximum limitation. ® ❑ 4 Ii( A Boynton Beach Police Pension Fund Total Fund June 30, 2015 Actual vs. Target Asset Allocation 2.0% 5.0% 2.0% 1.6% 7.5% 0.5% 2.0% 2.0% 2.0% • Global Equities 1.1% • Global Equities • Fixed Income • Fixed Income • Global REIT • Global REIT to Global Listed Infrastructure • Global Listed Infrastructure • Commodities • Commodities ®Private Real estate 30.6% 56.8% • Private Real estate m Cash • Cash MV($) Current Target Difference 56.8% 55.0% 1.8 0 0 Global Equities $ 45,986,606 873 30.6% 763 24 32.0% 1.4% $ , Fixed Income 1.1% 2 0% -0.9% 871,851 1.1 %0 Global REIT $ ° 2.0% p Commodities $ 1 , 579, 331 2.0% Global Listed Infrastructi $ 2 p% 0.4% 1,296,752 1.6% Private Real estate $ ° 5.0% 2.5% 6 ,083,000 7.5 %0 0.5% 2 p% -1.5% %o Cash $ 386,099 0.5 100,p• / 0.0% Total 80,967,512 100.0%° * Total International = 21.0% 5 BCA Boynton Beach Police Pension Fund 5 h .1. H( .A Boynton Beach Police Pension Fund Total Fund Asset Allocation June 30, 2015 RTC CASH RTC RUSSELL LO CAP OFFENSIVE EQ FD RTC MULTI M BOND FUND RTC REAL ESTATE EQUITY FD TC MULTI ASSET CORE FD VALUE PERCENT i� RTC MULTI ASSET CORE FD 31,214,835 38.55 RTC MULTI MGR BOND FUND 22,424,023 27.70 j RTC RUSSELL LG CAP DEFENSIVE EQ FD 20,859,556 25.76 RTC REAL ESTATE EQUITY FD 6,083,000 7.51 RTC CASH 386,099 0.48 TOTAL 80,967,512 100.00 I (:A 6 , Boynton Beach Police Pension Fund Total Fund Asset Distribution June 30, 2015 65.01 60.01 55.01 50.01 45.01 40.01 0 35.00 1 , 30.00 25.00 20.01 15.01 10.01 5.00 iii 0.00 - ■ - - ■ - -- - QUARTER TO DATE 1 YEAR 2 YEARS 3 YEARS 4 YEARS 5 YEARS EQUITY 64.32 64.53 65.50 54.13 55.27 59.75 FIXED INCOME 27.70 29.71 29.59 35.94 36.41 36.28 CASH 0.48 0.47 0.49 0.53 0.52 0.66 ALTERNATIVE 7.51 5.29 4.42 9.40 7.80 3.32 I( 7 �.._ Boynton Beach Police Pension Fund Total Fund June 30, 2015 Gross of Fees IiCA 7 1 - Boynton Beach Police Pension Fund Total Fund June 30, 2015 Gross of Fees QTD FYTD 1 Year 2 Year 3 Year 5 Year Name Market Values ROR ROR ROR ROR ROR ROR Equity RTC Multi Asset Core Fd 31,214,835 0.4% 6.4% 4.6% 11.0% N/A N/A RTC Russell Lg Cap Defensive Eq Fd 20,859,556 -0.5% 6.2% 7.3% N/A N/A N/A Total Equity 52,074,391 0.1% 6.3% 5.7% 12.3% 13.5% 13.5% Fixed Income RTC Multi Mgr Bond Fund 22,424,023 -1.6% 1.9% 2.5% 4.1% 3.2% 4.8% Total Fixed Income 22,424,023 -1.6% 1.9% 2.5% 4.1% 3.2% 4.8% Cash RTC Cash 386,099 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% Alternative RTC Real Estate Equity Fd 6,083,000 4.3% 11.9% 15.7% 14.1% 13.9% 15.2% Total Alternative 6,083,000 4.3% 11.9% 15.7% 14.1% 14.8% 13.5% TOTAL: (1, 2, 3, 4) 80,967,512 -0.1% 5.5% 5.4% 10.0% 10.6% 11.0% Policy Benchmark -0.3% 3.6% 2.9% 8.5% 9.3% 10.5% RTC Multi -Asset Core -0.4% 3.8% 1.7% 10.0% N/A N/A MSCI ACWI NR 0.3% 3.1% 0.7% 11.3% 13.0% 11.9% SP GI Infrastructure -2.1% -2.1% -5.9% N/A N/A N/A DJUBS Commodities 4.7% -13.5% -23.7% -9.1% -8.8% -3.9% Russell 1000 Index 0.1% 6.7% 7.4% 16.0% 17.7% 17.6% Fixed Income Bnch -1.7% 1.7% 1.9% 3.1% 1.8% 3.3% ML 3M TBill 0.0% 0.0% 0.0% 0.0% 0.1% 0.1% Real Estate Bnch 3.9% 10.8% 14.6% 13.5% 12.9% 14.3% NFI ODCE EQ 3.9% 10.8% 14.6% 13.5% 12.9% 14.3% NAREIT -9.1% 6.8% 4.1% 8.5% 9.1% 14.4% 1 Policy Benchmark (IPS hybrid benchmark objective): March '14 30% MSCI ACWI + 25% Russell 1000 + 32% BC Aggregate + 2% NAREIT + 2% S &P Global Infrastructure Index + 5% NFI ODCE EQ + 2% DJ UBS Commodities + 2% ML 3M T- Bills; prior from May'13 48% MSCI ACWI + 35% BC Aggregate + 5% NAREIT + 5% NFI ODCE EQ + 5% DJ UBS Commodities + 2% ML 3M T- Bills; Marl 2 is 34% Russell 1000 + 11% Russell Mid -Cap + 11% MSCI Net EAFE + 4% MSCI Net EM + 5% FTSE /NAREIT + 30% BC Aggregate + 5% BC TIPS; from Sep'09 was 34% Russell 1000 + 11% Russell Mid -Cap+ 11% MSCI Net EAFE + 4% MSCI Net EM + 5% Wilshire REIT + 30% BC Aggregate + 5% BC TIPS; from May'05 was 34% Russell 1000 + 16% Russell Mid -Cap+ 10% MSCI Net EAFE +5% Wilshire REIT '� + 30% LB lnterm Aggregate + 5% Lehman Interm TIPS; from Jul'02 was 60% S &P 500 + 35 LB Gov't/Credit. 2 The Multi -Asset Core Composite Benchmark is comprised of 75.0% Russell World Cap 50% Hedged Net Index / 7.5% Dow Jones UBS Commodity Index / 7.5% FTSE EPRA/NAREIT Developed Real Estate Index (Net) / 7.0% Barclays U.S. Aggregate Bond Index / 3.0% Barclays U.S. 1 -3 Month Treasury Bill Index. This benchmark is appropriate for evaluating the Russell Multi -Asset Core Fund over a 3 to 5 year horizon. 3 Fixed Income Bnch (IPS fixed income hybrid) Sep'09 is 100% BC Aggregate; from May05 was 100% LB Intermediate Aggregate; from Jun'02 was 100% Lehman Gov't/Credit. 4 Real Estate Bnch: from Sept'09 is 100% NFI ODCE EQ; prior was 100% NCREIF. BCA 8 Boynton Beach Police Pension Fund Total Fund Fiscal Year Rates of Return September 30, 2004 Through June 30, 2015 20.00 18.00 16.00- 14.00 12.00 - 10.00 8.00 6.00 4.00 p 2.00 - O g -4.00 aG -6.00 -8.00 - 10.00- -12.00- -14.00 -16.00 -18.00 FISCAL YTD 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 TF 5.46 10.99 10.28 18.47 0.29 11.73 0.25 -17.78 14.22 7.85 11.83 9 I ~ I BC& 9 Boynton Beach Police Officers' Retirement Plan Total Fund March 31, 2015 Performance Rankings March 31, 2015 Statistic Qtr 1 YR 2 YRS 3 YRS 5 YRS Boynton Beach Pol Return 2.40% 9.10% 9.70% 9.70% 9.70% Boynton Beach Pol Rank 35th 6th 71st 59th 29th RCA Note: Returns above are gross of fees. For illustrative purposes only. 10 *BCA Public Pension Universe contains of 51 clients. Boynton Beach Police Pension Fund Quartile Ranking Total Fund Versus BNY Mellon Public Funds Universe June 30, 2010 Through June 30, 2015 I 16.00- 14.00- 1 12.00 • O 10.00 Mia•MEM • 8.00. • 8.o F, 6 .00 - • ww 4.00 w IMMIIIIIILAIIIII 2.00 a4 0.00- -2.00 - -4.00 -6.00 - LATEST OUARTER ONE YEAR TWO YEARS THREE YEARS FIVE YEARS HIGHEST VALUE 2.24 7.71 15.83 15.78 13.04 FIRST QUARTILE 0.53 4.14 10.74 11.84 11.54 MEDIAN VALUE 0.16 3.08 9.85 10.80 11.03 THIRD QUARTILE -0.18 2.21 9.01 9.51 9.98 LOWEST VALUE -5.78 -3.10 -1.45 -0.58 1.62 MEAN -0.34 2.92 9.16 9.90 9.93 LATEST QUARTER ONE YEAR TWO YEARS THREE YEARS FIVE YEARS RETURN RANK RETURN RANK RETURN RANK RETURN RANK RETURN RANK A TF -0.07 68 5.40 15 10.02 42 10.60 52 10.99 52 • POLICY BENCHMARK -0.33 78 2.89 57 8.54 78 9.33 78 10.50 63 1 1 I Boynton Beach Police Pension Fund Total Fund Growth of a Dollar Analysis Itc \ I j 1 1 -- Boynton Beach Police Pension Fund Total Fund Growth of a Dollar Analysis June 30, 2010 Through June 30, 2015 180.00 - 170.00 168.41 164.75 160.00 150.00 -- - - -- 140.00- T Q N A 130.00 t 120.00 110.00 100.0 r i 90.00 . 6/2010 6/2011 6/2012 6/2013 6/2014 6/2015 LATEST QUARTER ONE YEAR THREE YEARS FIVE YEARS TF -0.07 5.40 10.60 10.99 POLICY BENCHMARK -0.33 2.89 9.33 10.50 , ■ 12 1 Boynton Beach Police Pension Fund Total Fund Capital Market Line Period Ending June 30, 2015 3 -Year Risk /Reward 5 -Year Risk /Reward i 22.00 MORE RETURN MORE RETURN / MORE RETURN MORE RETURN LESS RISK MORE RISK 20.00- LESS RISK MORE RISK zo.00- • 18.00 ♦ j 18.0o- D • • 16.00- 16.00- • p 14.00- 14.0a 12.00- • 12.Oo- 0 0 F10.0a a10.0o- • a 8.0o- � 8.0o- 6.00- a 6.Oa 1 4.00- 1 4.oa 2.00 • 2.00- 0.00 0.00- LESS RETURN LESS RETURN LESS RETURN LESS RETURN -2.00 LESS RISK MORE RISK -2.00- LESS RISK MORE RISK / / /, / -2.00 -1.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.0011.0012.0013.0014.0015.00 -2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 VARIABILITY OF RETURNS (RISK) VARIABILITY OF RETURNS (RISK) RETURN STD DEV BETA ALPHA R- SQUARED RETURN STD DEV BETA ALPHA R- SQUARED • TOTAL FUND 10.60 4.69 0.90 2.02 94.59 • TOTAL FUND 10.99 8.14 1.00 0.45 97.99 • POLICY BENCHMARK 9.33 5.05 1.00 0.00 100.00 • POLICY BENCHMARK 10.50 8.05 1.00 0.00 100.00 • RUSSELL 1000 INDEX 17.73 8.46 1.00 0.00 100.00 ❑ RUSSELL 1000 INDEX 17.58 12.11 1.00 0.00 100.00 • RUSSELL MIDCAP 19.26 9.22 1.00 0.00 100.00 • RUSSELL MIDCAP 18.23 13.60 1.00 0.00 100.00 • RUSSELL 2000 17.81 12.33 1.00 0.00 100.00 • RUSSELL 2000 17.08 16.65 1.00 0.00 100.00 • ML CNV X144A ALLQUAL 14.81 6.96 1.00 0.00 100.00 • ML CNV X144A ALLQUAL 12.19 9.04 1.00 0.00 100.00 • MSCI GROSS EAFE 12.45 10.37 1.00 0.00 100.00 • MSCI GROSS EAFE 10.03 15.58 1.00 0.00 100.00 • BC AGGREGATE 1.83 2.91 1.00 0.00 100.00 • BC AGGREGATE 3.35 2.79 1.00 0.00 100.00 C( \ 13 Boynton Beach Police Pension Fund Total Fund BCA 1 3 I Boynton Beach Police Pension Fund Total Fund Performance in Rising and Declining Markets June 30, 2010 Through June 30, 2015 UP MARKET PERFORMANCE DOWN MARKET PERFORMANCE / , 28.00- 0.004 26.00- -1.00- -2.00- 24.00- - 3 . 00- 22.00- -4.00- F 20.00 -5.04 18.00 -6.00- -7.00- 16.00- 14.00_ -s.oa w -9.00- w 12.00- 0 -10.00 oo- 10.00 Q ll. - 12.00 8.00- - 13. 0 - 6.00- --17.14.00- 4.00- -15.Oo- 2.00 - 16.00- 0.00 ,� i i ONE YEAR THREE YEARS FIVE YEARS ONE YEAR THREE YEARS FIVE YEARS TOTAL FUND POLICY BENCHMARK 10.03 21.07 28.39 TOTAL FUND -4.21 -9.18 -17.06 9.08 20.59 28.03 POLICY BENCHMARK -5.67 -11.53 -17.69 DIFFERENCE 0.95 0.48 0.36 DIFFERENCE 1.46 2.35 0.63 RATIO 1.10 1.02 1.01 RATIO 0.74 0.80 0.96 UP PERIODS 6 25 40 DOWN PERIODS 6 11 20 i i lit r 14 I 1 Boynton Beach Police Pension Fund RTC Multi Asset Core Fd Performance Profile Period Ending June 30, 2015 STD SHARPE 105.00 1 1 PERIOD RETURN BETA ALPHA DEV RATIO 104.61 ONE YEAR 4.61 1.03 2.77 7.04 0.65 104.00 r , 103.00 + - 1 102.00 1 _i 1 1 ONE 101.0r 1 QTD YEAR o 0 TOTAL FUND 0.45 4.61 100.01 MULTI -ASSET INDEX -0.44 1.72 EXCESS 0.89 2.89 99.00 - - - - RISKLESS INDEX 0.01 0.02 98.00 r REAL ROR -0.66 4.50 97.// 014 9/2014 12/2014 3/2015 6/2015 DOWN MARKET PERFORMANCE UP MARKET PERFORMANCE 0. .0 6 00 - , 14.00 1 13.00 1 12.00 -2.0 11.06 F 10.06 3.06 9.00 , 8.00 -4.00 a 7.00 LL 0 -5.00 0 6.00 e 5.00 a -6.06 ' 4.00 li -7.00 3.00 2.00 -8.06 1.00 QTD ONE YEAR QTD ONE YEAR TOTAL FUND -1.94 -7.96 TOTAL FUND 2.43 13.66 MULTI -ASSET INDEX -2.27 -8.76 MULTI -ASSET INDEX 1.87 11.49 DIFFERENCE 0.33 0.80 DIFFERENCE 0.56 2.17 RATIO 0.85 0.91 RATIO 1.30 1.19 DOWN PERIODS 1 6 UP PERIODS 2 6 15 Boynton Beach Police Pension Fund RTC Russell Lg Cap Defensive Eq Fd D n..1'„ s.n.. n n n n D....4;1. DOWN PERIODS 1 1 1 6 1 UP PERIODS 1 2 1 6 1 15 i 1 Boynton Beach Police Pension Fund RTC Russell Lg Cap Defensive Eq Fd Performance Profile Period Ending June 30, 2015 UNIVERSE STD SHARPE 109.00 PERIOD RETURN RANKING BETA ALPHA DEV RATIO 108.00 1 i ONE YEAR 7.28 51 0.91 0.53 8.23 0.88 107.00 r ' 106.00 1 J ' 1 105.00 r 1 ' 1 ONE 104.00 - - -- t , QTD YEAR c, I C 1 RTC RUSSELL LO CAP DEFEN - 0.48 7.28 i RUSSELL 1000 INDEX 0.11 7.37 102.00 i 1 EXCESS -0.59 -0.09 ' ' 101.00 7 RISKLESS INDEX 0.01 0.02 1 I REAL ROR -1.58 7.07 100.0 � � 99 03071 9/2014 12/2014 3/2015 6/2015 DOWN MARKET PERFORMANCE UP MARKET PERFORMANCE 19.00 0.00' 18.0 17... Ln 16.n 15... -2.00 14.. i a° E 13.i. 7y 3 12. 1 S li. 1,n ty3i l09.:: m p -5.00 O 8. . n 7.■ Zn 5.n 4 :0 0 -8.' 3.00 R 2.00 ■ Ln o. n � I QTD ONE YEAR QTD ONE YEAR RTC RUSSELL LG CAP DEFENSIVE EQ FD -8.14 RTC RUSSELL LG CAP DEFENSIVE EQ FD 1.55 16.79 RUSSELL 1000 INDEX -1.88 -9.12 RUSSELL 1000 INDEX 2.03 18.14 DIFFERENCE -0.12 0.98 DIFFERENCE -0.48 -1.36 0.93 RATIO 1.06 0.89 RATIO 0.76 DOWN PERIODS 1 6 UP PERIODS 2 6 16 Boynton Beach Police Pension Fund RTC Multi Mgr Bond Fund Performance Profile Period Ending June 30, 2015 UNIVERSE STD SHARPE 130.00 PERIOD RETURN RANKING BETA ALPHA DEV RATIO ' 126.22 ONE YEAR 2.50 12 0.99 0.65 3.11 0.80 125.00 L ' - - - THREE YEARS 3.19 33 1.05 1.25 3.12 1.00 FIVE YEARS 4.77 32 0.98 1.44 2.95 1.59 120.00 I * - - - - - - 115.01 ONE THREE FIVE 1 QTD YEAR YEARS YEARS $ 110.0 4 L -1 TOTAL FUND -1.58 2.50 3.19 4.77 1 FIXED INCOME BNCH -1.68 1.86 1.83 3.35 105. r EXCESS 0.10 0.64 1.36 1.42 RISKLESS INDEX 0.01 0.02 0.06 0.08 t 1 L 100.0 1 REAL ROR -2.69 2.34 1.91 2.89 95.1 ' 010 6/2011 6/2012 6/2013 62014 6/2015 DOWN MARKET PERFORMANCE UP MARKET PERFORMANCE 11.00 O. / 10.10 -1.00 -2.00 X 8.0 1 -3.00 g 7.00 -0.00 5.11 O g -5.00 4.1i 3.1i 2.n -7.00 Ln THREE THREE QTD ONE YEAR YEARS FIVE YEARS QTD ONE YEAR YEARS FIVE YEARS TOTAL FUND -1.58 -7.15 -6.19 TOTAL FUND N/A 5.66 10.37 10.72 FIXED INCOME BNCH -1.68 -3.51 -7.74 -6.96 FIXED INCOME BNCH N/A 5.56 8.43 8.92 DIFFERENCE 0.10 0.51 0.59 0.77 DIFFERENCE N/A 0.10 1.94 1.80 RATIO 0.94 0.85 0.92 0.89 RATIO N/A 1.02 1.23 1.20 DOWN PERIODS 3 6 14 20 UP PERIODS 0 6 22 40 17 Boynton Beach Police Pension Fund RTC Real Estate Equity Fd Performance Profile ' RATIO 0.94 0.85 0.92 0.89 RATIO N/A 1.02 1.23 1.20 ■ DOWN PERIODS 3 6 14 20 17 UP PERIODS 0 6 22 40 Boynton Beach Police Pension Fund RTC Real Estate Equity Fd Performance Profile Period Ending June 30, 2015 STD SHARPE 1 PERIOD RETURN BETA ALPHA DEV RATIO 200.00- ! 102.62 1 ONE YEAR 15.67 1.07 0.02 6.10 2.56 190.00- 1 r 1 THREE YEARS 13.86 1.08 -0.07 5.55 2.49 180.00 + y FIVE YEARS 15.17 1.06 -0.05 6.18 2.44 1 170.00- _t _I 160.00 - ONE THREE FIVE „ 150.00 QTD YEAR YEARS YEARS oo 1 TOTAL FUND 4.34 15.67 13.86 15.17 I40.00 REAL ESTATE BNCH 3.92 14.63 12.91 14.29 130.00 i - - + EXCESS 0.42 1.05 0.94 0.88 120.00 L J RISKLESS INDEX 0.01 0.02 0.06 0.08 � 110.00 - REAL ROR 3.21 15.57 12.48 13.14 100.0 7 r 1 6/2010 6/2011 6/2012 62013 62014 6/2015 DOWN MARKET PERFORMANCE UP MARKET PERFORMANCE 16.00 15.00 14.00 13.00 T 12.00 x moo P p 16.00 m 0.00- 9.00 ES' 8.00 E 8 7.00 a 6.00 ae 5.00 4.00 3.00 2.00 1.00 O. THREE THREE QTD ONE YEAR YEARS FIVE YEARS QTD ONE YEAR YEARS FIVE YEARS TOTAL FUND N/A N/A N/A N/A TOTAL FUND 4.34 15.67 13.86 15.17 REAL ESTATE BNCH N/A N/A N/A N/A J REAL ESTATE BNCH 3.92 14.63 12.91 14.29 0.88 1.06 DIFFERENCE N/A N/A N/A N/A DIFFERENCE 0.42 1.05 0.94 RATIO N/A N/A N/A N/A RATIO 1.11 1.07 1.07 DOWN PERIODS 0 0 0 0 UP PERIODS 3 12 36 60 18 Boynton Beach Police Pension Fund Glossary of Terms - ACCRUED INTEREST- Bond interest earned since the last interest payment, but not yet received. - ALPHA- A linear regressive constant that measures expected return independent of Beta. -ASSET ALLOCATION- The division of portfolio asset classes in order to achieve an expected investment objective. - BALANCED UNIVERSES - BNY Mellon Public Funds, Endowments & Foundations, Corporate peer groups, and PSN peer groups. -BETA- A measure of portfolio sensitivity (volatility) in relation to the market, based upon past experience. -BOND DURATION- A measure of portfolio sensitivity to interest rate risk. - COMMINGLED FUND - An investment fund which is similar to a mutual fund in that investors are permitted to purchase and redeem units that represent ownership in a pool of securities. - CONVERTIBLE BONDS - Hybrid securities' that offer equity returns during rising equity markets and improved down - market protection. - CORE - An equal weighting in both growth and value stocks. - CORRELATION COEFFICIENT- A measure of how two assets move together. The measure is bounded by +1 and -1; +1 means that the two assets move together positively, while a measure of -1 means that the assets are perfectly negatively correlated. - GROWTH MANAGER- Generally invests in companies that have either experienced above - average growth rates and/or are expected to experience above - average growth rates in the future. Growth portfolios tend to have high price /earnings ratios and generally pay little to no dividends. - INDEXES - Indexes are used as "independent representations of markets" (e.g., S &P 500). - INFORMATION RATIO- Annualized excess return above the benchmark relative to the annualized tracking error. -LARGE CAP- Generally, the term refers to a company that has a market capitalization that exceeds $10 billion. - MANAGER UNIVERSE- A collection of quarterly investment returns from various investment management firms that may be subdivided by style (e.g. growth, value, core). -MID CAP- Generally, the term refers to a company that has a market capitalization between $2 and $10 billion. - NCREIF - A quarterly time series composite total rate of return measure of investment performance of a large pool of individual commercial real estate properties acquired in the private market for investment purposes only. - NCREIF ODCE - Open End Diversified Core Equity index which consists of historical and current returns from 26 open -end commingled funds pursuing c stategy. This index is capitalization weighted, time weighted and gross of fees. 19 Boynton Beach Police Pension Fund Glossary of Terms p1UYc1UGJ 2lli 4UllcU 111 111c 1111V I 111G11\c1 lvl 111YCJULL JJL pWpUJGJ J1117. 1 1 - NCREIF ODCE' Open End Diversified Core Equity index which consists of historical and current returns from 26 open -end commingled funds pursuing c stategy. This index is capitalization weighted, time weighted and gross of fees. 19 rY` .i Boynton Beach Police Pension Fund Glossary of Terms - NET - Investment return accounts only for manager fees. - PROTECTING FLORIDA INVESTMENT ACT (PFIA) - SBA publishes a list of prohibited investments (scruntinized companies). -RATE OF RETURN- The percentage change in the value of an investment in a portfolio over a specified time period, excluding contributions. -RISK MEASURES- Measures of the investment risk level, including beta, credit, duration, standard deviation, and others that are based on current and historical data. -R- SQUARED- Measures how closely portfolio returns and those of the market are correlated, or how much variation in the portfolio returns may be explained by the market. An R2 of 40 means that 40% of the variation in a fund's price changes could be attributed to changes in the market index over the time period. - SHARPE RATIO - The ratio of the rate of return earned above the risk -free rate to the standard deviation of the portfolio. It measures the number of units of return per unit of risk. -SMALL CAP- Generally refers to a company with a market capitilation $300 million to $2 billion. - STANDARD DEVIATION- Measure of the variability (dispersion) of historical returns around the mean. It measures how much exposure to volatility was experienced by the implementation of an investment strategy. - SYSTEMATIC RISK- Measured by beta, it is the risk that cannot be diversified away (market risk). - TIME WEIGHTED (TW) RETURN - A measure of the investments versus the investor. When there are no flows the TW & DOLLAR weighted (DW) returns are the same and vice versa. - TRACKING ERROR- A measure of how closely a manager's performance tracks an index; it is the annualized standard deviation of the differences between the quarterly returns for the manager and the benchmark. - TREYNOR RATIO- A measure of reward per unit of risk. (excess return divided by beta) -UP AND DOWN - MARKET CAPTURE RATIO- Ratio that illustrates how a manager performed relative to the market during rising and declining market periods. - VALUE MANAGER- Generally invests in companies that have low price -to- earnings and price -to -book ratios and/or above - average dividend yields. BCA 20 l -- Boynton Beach Police Pension Fund Disclosure Advisory services are offered through or by Burgess Chambers and Associates, Inc., a registered SEC investment advisor. Performance Reporting: 1.Changes in portfolio valuations due to capital gains or losses, dividends, interest, income and management fees are included in the calculation of returns. All calculations are made in accordance with generally accepted industry standards. 2.Transaction costs, such as commissions, are included in the purchase cost or deducted from the proceeds or sale of a security. Differences in transaction costs may affect comparisons. 3.Individual client returns may vary due to a variety of factors, including differences in investment objectives, asset allocating and timing of investment decisions. 4.BCA does not have discretion or decision making authority over any investments. All decisions regarding investment manager selection and retention, asset allocation, and other investment policies were made by the client. While BCA provides recommendations and choices regarding suitable investments, not all clients take these recommendations or select from the choices offered. 5.Performance reports are generated from information supplied by the client, custodian, and/or investment managers. BCA relies upon the accuracy of this data when preparing reports. 6.The market indexes do not include transaction costs, and an investment in a product similar to the index would have lower performance dependent upon costs, fees, dividend reinvestments, and timing. Benchmarks and indexes are for comparison purposes only, and there is no assurance or guarantee that such performance will be achieved. 7.Performance information prepared by third party sources may differ from that shown by BCA. These differences may be due to different methods of analysis, different time periods being evaluated, different pricing sources for securities, treatment of accrued income, treatment of cash, and different accounting procedures. 8.Certain valuations, such as alternative assets, ETF, and mutual funds, are prepared based on information from third party sources, the accuracy of such information cannot be guaranteed by BCA. Such data may include estimates and maybe subject to revision. 9.BCA has not reviewed the risks of individual security holdings. 10.BCA investment reports are not indicative of future results. 11. For a free copy of Part II (mailed w/i 5 bus. days from request receipt) of Burgess Chambers & Associates, Inc.'s most recent Form ADV which details pertinent business procedures, please contact: 315 East Robinson Street Suite #690, Orlando, Florida 32801, 407 - 644 -0111, info @burgesshcambers.com. 21 C( _ \ ti Burgess Chambers & Associates, Inc. Institutional Investment Advisors www.burgesschambers.com 315 East Robinson Street, Suite 690, Orlando, Florida 32801 P: 407- 644 -0111 F: 407- 644 -0694 ti