|
Who Serves On The Pension Board?
The Pompano Beach General Employees Retirement System has
a Board of Trustees consisting of seven individuals. Three
of them are employees of the City of Pompano Beach and are
elected by their fellow employees. Each of these individuals
serves a three year term beginning in December. Their terms
are staggered. Each year one of these terms is up and the
incumbent may run for re-election in November for a new
three year term.
The City Commission has the obligation to appoint three
members to this Board. Each November the City will review
the attendance and participation of the individual whose
term is up. The City Commission may reappoint the incumbent
for a new three year term or consider someone who puts their
name up for consideration.
The seventh Board member is elected by the six elected
and appointed trustees.
Your trustees have a fiduciary responsibility. They are
entrusted with the responsibility of the fund, its growth
and management. They are fiscally responsible. The plan does
provide specific insurance coverage to cover losses which
may occur as a result of the actions of a trustee which are
made in good faith. These policies are ‘Directors and
Officers Liability Insurance’ and other policies protect the
trustee for other actions.
These persons do not necessarily require a stated
educational level, but they are expected to attend each
meeting, participate in discussions regarding investments
and the hiring of certain professionals to assist in the
management of the pension plan. There are ongoing
educational programs which trustees are expected to attend,
schools to go to and tests to take and pass. There is no
salary and no stipend payable to any trustee. Their service
is completely voluntary. Travel and accommodations are paid
by the fund for approved educational programs. The trustee
must have the flexibility to travel and participate in
educational events. Some of these educational programs are
from three to five days and most will be out of town. These
programs are specifically designed to help the trustee
better understand their role in overseeing the Boards
activities and participate in ensuring the ongoing
operations. The longer a trustee serves on the Board and the
more education that they acquire then the more valuable they
are to the Board and to you.
You are fortunate to have individuals who are willing to
serve, have done so for a number of years and bring
different perspectives to the Board. No matter the
background of the persons serving on the Board they come
together as one with the best of everything for the plan and
all plan participants.
The Board serves as a manager of the plan assets and
determines how those assets should best be invested. Towards
those ends they have the right and responsibility to hire
the appropriate money manager for each type of asset.
Generally a plan will seek the assistance of their
Investment Consultant to provide recommended managers in
each specialty. Through contacts made at educational
programs trustees may have met or become aware of a
particular manager thought to be an above average performer.
Those managers will be interviewed by the Board and
subsequently discussed with the Investment Consultant. A
determination of who should be hired will be made by the
Board. This process will be followed for each money manager
for each type of investment.
The same thought process is followed for each
professional hired by the Board for the professional
services required. Currently the Board utilizes the services
of several people in different fields, including:
Attorney
– serves as legal counsel to the plan for all pension
issues Fund Monitors – Specialty Attorneys who
monitor our portfolio for securities fraud and Class Action
litigation. Custodian – Bank or other similar
institution which holds securities, handles payments of
pension benefits, transfers funds between money managers,
handles transition management services and other services.
Actuary – Provides annual actuarial services and
interim consulting services. Annually the Actuary provides a
report which after presentation to the Board and approval of
the Board he makes a presentation to the City Manager and to
the City Commission. This report spells out the amount
required of the City for the following fiscal year, on an
actuarial basis, to properly fund the plan for the next
year.
Auditor
– Provides an annual review of the books and ledgers of the
pension plan and develops the annual Financial Statement in
accordance with all appropriate governmental rules and
regulation. Investment Consultant – Provides monthly
reporting on the plan’s investments, comparative reporting
for similar plans, recommends money managers and evaluates
money managers as needed. Investment Managers –
(Money Managers) Individuals and/or firms who specialize in
specific types of investments in the public pension world.
Transition Manager – A bank or brokerage firm with
the expertise to handle a money manager’s role in an
emergency, should a situation arise that the plan needs to
terminate one money manager and search for an appropriate
replacement.
Your trustees are acutely aware of who these individuals
are, where they are located, what each does and how they are
viewed by other plans and by their peers.
Your Board is and must always be familiar with their
performance and should some negative situation arise, be
able to quickly take appropriate action to ensure that
neither the plan nor its investments are at risk.
Respectfully Submitted
Reg Watkins, Chairman
March 31, 2011
Subsequent articles will be posted on our website
www.pompgers.org
from time to time.
|
