HomeMy WebLinkAbout2006 08 14 Regular 301 Board of Trustees
COMMISSION AGENDA
ITEM 301
Public Hearing
Regular X
Consent
Informational
August 14. 2006
Regular Meeting
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Authorization
REQUEST:
Commissioner Joanne M. Krebs is requesting the City Commission consider
information related to Board of Trustees (Pension Board) issues, including
"fiduciary responsibility".
PURPOSE:
This Agenda Item has been requested by Commissioner Joanne M. Krebs who is
asking the City Commission to consider information related to Board of Trustees
(Pension Board) issues, especially "fiduciary responsibility".
CONSIDERATIONS:
The following is an excerpt from the October 24, 2005 Regular City Commission
Meeting related to the Board of Trustees (Pension Board):
With further discussion, Deputy Mayor Blake added, "This is a Board that we
probably ought to take a more specific interest in how it is formed, what the
operating rules and regulations are and also how it conforms to requirements of
Department of Labor rules and ERISA (Employee Retirement Income Security
Act). "
FUNDING:
CITY OF WINTER SPRINGS, FLORIDA
CITY COMMISSION
REGULAR MEETING - AUGUST 14,2006
REGULAR AGENDA ITEM 301
PAGE 2 OF 3
The following is an excerpt from the December 12, 2005 Regular City
Commission Meeting related to the Board of Trustees (Pension Board):
Deputy Mayor Blake stated, "When we discussed this previously, I mentioned that
there are some fairly weighty issues involved with serving as a Trustee, especially
a Defined Benefits Plan." Deputy Mayor Blake said, "Have we done any work on
that Ron [McLemore}, in terms of an educational program to assist the Trustees -
also a way for them to understand what their fiduciary responsibilities and
liability is for serving? "
Next, Deputy Mayor Blake mentioned that the Florida League of Cities - has "An
educational program that might be very appropriate for the new Board to go
through very early, right up front." Deputy Mayor Blake added, "I think it needs
to occur and I think it needs to be someone other than one of our current
providers. "
I would like the City Commission to consider the attached information and
whether the City obtain membership in the Florida Public Pension Trustee
Association (FPPT A); and whether we need to offer members of our Board of
Trustees (Pension Board) the opportunity to attend the October "Trustees School".
I would also like to suggest that at least one Commissioner also attend this
upcoming Florida Public Pension Trustee Association (FPPT A) "Trustees
School".
I would also like to have discussion about any concerns that anyone on the City
Commission may have related to the Board of Trustees (Pension Board).
Funds for the City to obtain an "Active" organizational membership ($450.00)
with the Florida Public Pension Trustee Association (FPPT A) from our current
Budget is not a problem, nor for the 'FY 2006-2007 Budget.
As noted in the 'FY 2006-2007 Tentative Budget, there are not enough funds to
send any of the five (5) Board of Trustees members to the October 2006 Florida
Public Pension Trustee Association (FPPT A) "Trustees School", so if we wanted
to do that, we would most likely need to approve a Supplemental Appropriation.
As noted in the 'FY 2006-2007 Tentative Budget, there are enough funds to send
someone on the City Commission to the October 2006 Florida Public Pension
Trustee Association (FPPTA) "Trustees School".
CITY OF WINTER SPRINGS, FLORIDA
CITY COMMISSION
REGULAR MEETING - AUGUST 14, 2006
REGULAR AGENDA ITEM 301
PAGE 3 OF 3
RECOMMENDATION:
I would like the City Commission to consider obtaining "Active Membership" for
the City of Winter Springs in the Florida Public Pension Trustee Association
(FPPT A).
I would also ask whether we want to offer members of our Board of Trustees
(Pension Board) the opportunity to attend the October 2006 Florida Public
Pension Trustee Association (FPPT A) "Trustees School" with expenses to be paid
by the City.
I would also like to know if anyone on the City Commission would also like to
attend this upcoming October 2006 Florida Public Pension Trustee Association
(FPPT A) "Trustees School"?
ATTACHMENTS:
A. Excerpt from the October 24, 2005 Regular City Commission Meeting.
B. Excerpt from the December 12,2005 Regular City Commission Meeting.
C. Information from Attorney Jim Linn.
D. A definition of "fiduciary responsibility".
E. email related to the Florida Public Pension Trustee Association (FPPT A).
F. email to the Institute of Government related to Pension Board training.
G. email with information from the Florida League of Cities related to the Florida
Public Pension Trustee Association (FPPT A).
H. Membership information for the Florida Public Pension Trustee Association
(FPPT A).
I. Tentative Agenda for the upcoming Florida Public Pension Trustee
Association's (FPPT A) "Trustees School".
COMMISSION ACTION:
ATTACHMENT
"A"
CITY OF WINTER SPRINGS, FLORIDA
MINUTES
CITY COMMISSION
REGULAR MEETING - OCTOBER 24, 2005
PAGE 7 OF 16
Deputy Mayor Michael S. Blake stated, "I think it would be appropriate to make sure that
on their Website that they change it from Longwood to Winter Springs."
Mayor Bush called a Recess.
The Regular Meeting was called back to order at 7:46 p.m.
REGULAR AGENDA
REGULAR
500. Not Used.
REGULAR
501. Office Of The City Clerk
Requesting The City Commission To Review The Information In This Agenda Item
Regarding Upcoming Appointments/Reappointments To The Board Of Trustees,
For Seat One, Seat Two, Seat Three, Seat Four, And Seat Five. Each Seat Is
Scheduled To Expire In January Of The Year 2006; And The City Commission Is
Being Requested To Advise Staff If They Desire Further Information And/Or
Decide When They Wish To Have An Agenda Item And Resolution Come Before
Them For These Respective Appointments.
Discussion ensued on the Advisory Board and Committee Application.
Commissioner Krebs spoke of the permitted absences and remarked, "What 1 have a
problem with for this Board [of Trustees] is they only meet quarterly so, you can go
through here and look at some of the absences, and even two (2) in a row seems
excessive to me, for this Board. So 1 would like the Board to look at that."
Commissioner Sally McGinnis remarked, "I agree. It is an issue." Commissioner Krebs
added, "To say three (3) consecutive, that is, well that is three-quarters of the year, three-
quarters of their meetings, seventy-five percent (75%) of it - that is ridiculous so, 1 -
think we should look at that issue." Commissioner McGinnis added, "I agree."
Commissioner Krebs noted, "For this Board."
Commissioner Gilmore said, "Let us review this and see if there are any changes we want
to make in the methods, primarily - in absences, and then probably, the last meeting in
November or first in December, make the Appointments. Commissioner McGinnis
stated, "That is fine." Commissioner Robert S. Miller remarked, "Fine." Commissioner
Krebs asked, "Will we bring back the absence issue also?" Commissioner Gilmore
responded, "Let us bring the absence issue up at the next Meeting, then the first Meeting
in December, make our Appointments."
CITY OF WINTER SPRINGS, FLORIDA
MINUTES
CITY COMMISSION
REGULAR MEETING - OCTOBER 24, 2005
PAGE 8 OF 16
Commissioner McGinnis then asked, "How long has it been since this Application has
even been reviewed, maybe that could be part of this process." Deputy Mayor Blake
suggested, "It might be helpful to review the record back to 200 I and 2002, because it is
quite lengthy." Commissioner McGinnis said, "I will." Mayor Bush said to City Clerk
Andrea Lorenzo- Luaces, "Could you get that information for the Commissioner?" City
Clerk Lorenzo-Luaces agreed to do this.
Mayor Bush summarized, "Commissioner Gilmore's recommendation was that at the
first Meeting in December, the Commission would be prepared to make their
appointments. Is everybody in agreement?" Discussion.
Deputy Mayor Blake then suggested, "I think that every Newsletter should have a call for
Volunteers - a quick listing - a listing of the different types of positions that come
available from time to time and what the Application process is for Volunteers." Mayor
Bush asked, "Commissioners, you are in agreement with Commissioner Blake's
recommendation?" Commissioner McGinnis said, "Yes." Mayor Bush added, "And
with the recommendation it should be in every Newsletter?" Commissioner McGinnis
said, "If possible." Deputy Mayor Blake commented, "I think the more often - I think
we should certainly have a link on the front page of the Website to go to Volunteer
positions available in the City." Mayor Bush then said, "Commissioners, in agreement?"
Commissioner McGinnis said, "Yes." Deputy Mayor Blake added, "In the meantime, if
something came up say in the [Seminole] Chronicle that says the City is looking for
V olunteers, specifically ones who have some expertise in the area of Retirement Plans or
Pension Management, that would be great."
Mayor Bush stated, "So, the first meeting in December, you should be prepared to make
your Appointments, on or before."
Regarding absences, Commissioner Krebs remarked, "Why would you allow three (3)
absences which is seventy-five percent (75%) of not being there, on this Board when you
don't allow it on any other Board?" Deputy Mayor Blake said, "Commissioner Krebs
touches on something that I think is very important and meaningful." With further
discussion, Deputy Mayor Blake mentioned that "Each of these individuals - who serve
on this Board, are actually named Fiduciaries of the Plan, which is something they may
not even be aware of."
With further discussion, Deputy Mayor Blake added, "This is a Board that we probably
ought to take a more specific interest in how it is formed, what the operating rules and
regulations are and also how it conforms to requirements of Department of Labor rules
and ERISA (Employee Retirement Income Security Act)."
CITY OF WINTER SPRINGS, FLORIDA
MINUTES
CITY COMMISSION
REGULAR MEETING - OCTOBER 24,2005
PAGE 9 OF 16
With further discussion, Mayor Bush said to Commissioner Krebs, "You are suggesting
the Code should be written a little differently for this?" Commissioner Krebs said, "Yes I
am." Mayor Bush then commented "That would be something we could put on an
Agenda at a future Meeting?" Deputy Mayor Blake noted, "I would agree with that."
Commissioner McGinnis remarked, "I agree..." Deputy Mayor Blake added, "... And
recommend it." Mayor Bush said to Commissioner Krebs, "Do you want to be the one
who sees that one through?" Commissioner Krebs said, "Certainly." Mayor Bush
concluded this Agenda Item discussion by saying, "On '501', by December the I S\ the
Commission is to be able to make their Appointments and before then - Commissioner
Krebs will work with the Manager to come up with some changes to the Code."
Commissioner Krebs added, "Be happy to, Mayor."
REGULAR
502. Not Used.
REGULAR
503. Utility Department
Providing Information Relative To The Fisher Road Water Main Extension.
Mayor Bush asked, "Is there anybody here - any of the property owners on Fisher
Road?" No one announced their presence.
Mr. Kip Lockcuff, P.E., Director, Public WorkslUtility Department presented this
Agenda Item for discussion.
With further discussion, Manager McLemore said, "We just need to establish what our
policy is going to be on future jobs." Commissioner Miller stated, "It appears to me we
should have billed them thirty thousand [dollars] ($30,000.00), but we haven't. And I
noticed nobody showed up tonight, but if they come back, I think that is what we ought to
do."
Mayor Bush stated, "I think what the Commission needs to do is to maybe direct the
Manager and Kip [Lockcuff] to come in with a Policy that would be adopted."
Commissioner Miller stated, "That is another issue."
Mayor Bush said, "Again, I think the Commission should have a Policy on this so we
don't have this happen again..." Commissioner McGinnis stated, ".. . Exactly, and
Contracts, Agreements." Manager McLemore noted, "We are going to bring all that to
you."
"I MOVE THAT WE UPHOLD THE ORIGINAL AGREEMENTS REGARDING
THE FISHER ROAD WATER MAIN EXTENSION." MOTION BY
COMMISSIONER McGINNIS. SECONDED BY COMMISSIONER GILMORE.
DISCUSSION.
ATTACHMENT
"B "
CITY OF WINTER SPRINGS, FLORIDA
MINUTES
CITY COMMISSION
REGULAR MEETING - DECEMBER 12,2005
PAGE 12 OF 23
VOTE:
COMMISSIONER McGINNIS: AYE
COMMISSIONER KREBS: AYE
COMMISSIONER GILMORE: AYE
DEPUTY MAYOR BLAKE: AYE
COMMISSIONER MILLER: AYE
MOTION CARRIED.
REGULAR
305. Office Of The City Clerk
Requesting The City Commission To Review The Information In This Agenda Item
Regarding Upcoming Appointments/Reappointments To The Board Of Trustees,
For Seat One, Seat Two, Seat Three, Seat Four, And Seat Five. Each Seat Is
Scheduled To Expire In January Of The Year 2006; And The City Commission Is
Being Requested To Make Appointments To This Advisory Board At This City
Commission Meeting.
Deputy Mayor Blake stated, "When we discussed this previously, 1 mentioned that there
are some fairly weighty issues involved with serving as a Trustee, especially a Defined
Benefits Plan." Deputy Mayor Blake said, "Have we done any work on that Ron
[McLemore], in terms of an educational program to assist the Trustees - also a way for
them to understand what their fiduciary responsibilities and liability is for serving?"
Next, Deputy Mayor Blake mentioned that the Florida League of Cities - has "An
educational program that might be very appropriate for the new Board to go through very
early, right up front." Deputy Mayor Blake added, "I think it needs to occur and 1 think it
needs to be someone other than one of our current providers."
DEPUTY MAYOR BLAKE STATED, "I WOULD LIKE TO APPOINT MARK
SARDO." MOTION. SECONDED BY COMMISSIONER MILLER.
DISCUSSION.
VOTE:
DEPUTY MAYOR BLAKE: AYE
COMMISSIONER GILMORE: AYE
COMMISSIONER MILLER: AYE
COMMISSIONER McGINNIS: AYE
COMMISSIONER KREBS: AYE
MOTION CARRIED.
CITY OF WINTER SPRINGS, FLORIDA
MINUTES
CITY COMMISSION
REGULAR MEETING - DECEMBER 12,2005
PAGE 13 OF 23
COMMISSIONER MILLER REMARKED, "I WOULD LIKE TO APPOINT MR.
ROBERT NIPPES." MOTION. SECONDED BY COMMISSIONER McGINNIS.
DISCUSSION.
VOTE:
COMMISSIONER MILLER: AYE
COMMISSIONER KREBS: AYE
COMMISSIONER McGINNIS: AYE
COMMISSIONER GILMORE: AYE
DEPUTY MAYOR BLAKE: AYE
MOTION CARRIED.
COMMISSIONER McGINNIS STATED, "I WOULD LIKE REAPPOINT VERN
ROZELLE." MOTION. SECONDED BY COMMISSIONER GILMORE.
DISCUSSION.
VOTE:
COMMISSIONER McGINNIS: AYE
COMMISSIONER KREBS: AYE
DEPUTY MAYOR BLAKE: AYE
COMMISSIONER GILMORE: AYE
COMMISSIONER MILLER: AYE
MOTION CARRIED.
COMMISSIONER GILMORE REMARKED, "I WOULD LIKE TO APPOINT
BYRON GILTZ." MOTION. MAYOR BUSH STATED, "SECONDED BY
COMMISSIONER McGINNIS." DISCUSSION.
VOTE:
COMMISSIONER GILMORE: AYE
COMMISSIONER MILLER: AYE
COMMISSIONER McGINNIS: AYE
COMMISSIONER KREBS: AYE
DEPUTY MAYOR BLAKE: AYE
MOTION CARRIED.
COMMISSIONER KREBS NOTED, "I WOULD LIKE TO APPOINT GUY
DeMAIO." MOTION. SECONDED BY COMMISSIONER McGINNIS.
DISCUSSION.
CITY OF WINTER SPRINGS, FLORIDA
MINUTES
CITY COMMISSION
REGULAR MEETING - DECEMBER 12,2005
PAGE 14 OF 23
VOTE:
COMMISSIONER KREBS: AYE
COMMISSIONER GILMORE: AYE
DEPUTY MAYOR BLAKE: AYE
COMMISSIONER MILLER: AYE
COMMISSIONER McGINNIS: AYE
MOTION CARRIED.
REGULAR
306. Office Of The City Clerk
Requests That The City Commission Consider Nominating The Next Deputy Mayor
As Stipulated In The Charter Of The City Of Winter Springs, Consistent With
Actions In The Past.
"I WOULD LIKE TO NOMINATE MICHAEL BLAKE TO SERVE AGAIN - HE
HAS BEEN A VERY EFFECTIVE VICE MAYOR." MOTION COMMISSIONER
McGINNIS. SECONDED BY COMMISSIONER GILMORE. DISCUSSION.
VOTE:
COMMISSIONER GILMORE: AYE
DEPUTY MAYOR BLAKE: AYE
COMMISSIONER MILLER: AYE
COMMISSIONER McGINNIS: AYE
COMMISSIONER KREBS: AYE
MOTION CARRIED.
Discussion for the Record ensued on the Deputy Mayor's parking space.
REGULAR
307. Office Of The City Attorney
Requests The City Commission Consider And Adopt Resolution Number 2005-48 -
Conservation Easement.
Attorney Garganese and Mr. Lockcuff presented opening c.omments related to this
Agenda Item.
Mayor Bush noted, "By the way, on that letter, I have not made any phone calls there. I
wanted to bring that to the Commission to look at. It says, you will be expecting a call
from me - I have not made any of those calls."
ATTACHMENT
"C"
DUTIES AND RESPONSIBILITIES OF A
GOVERNMENTAL PENSION BOARD OF TRUSTEES
James W. Linn
Lewis, Longman & Walker, P.A.
I. BASIC FIDUCIARY PRINCIPLES
A. A fiduciary shall discharge his duties with respect to a pension plan solely
in the interest of the participants and beneficiaries for the exclusive
purpose of providing benefits to participants and their beneficiaries and
defraying reasonable expenses of administering the plan. Section
112.656(1), Florida Statutes.
B. A fiduciary must act with the care, skill, prudence and diligence under the
circumstances then prevailing that a prudent man 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. 29 United States Code section
11 04( a) (1 ).
C. A fiduciary must administer the plan in accordance with the plan
documents so long as they are consistent with applicable law. A fiduciary
must be familiar with the provisions of the plan documents and local, state
and federal laws so as to avoid violations of law and breach of fiduciary
duty.
D. The Board of Trustees is responsible for administering the plan. Duties of
fiduciaries include but are not limited to the following:
1. Determination of issues involving eligibility for plan membership
and benefits.
2. Approval of benefits, service and compensation.
3. Maintenance of service and employment records.
4. Distribution to participants of a summary plan description and a
summary of financial and actuarial data pertaining to the plan.
Section 112.66, Florida Statutes.
5. Verification of collection and deposit of contributions and other
momes.
6. Contract for the preparation of actuarial studies.
7. Investment of Fund assets and adoption of an investment policy.
Section 112.661, F.S.
8. Hiring of consultants to assist and advise in the performance of the
duties. Section 112.656, Florida Statutes.
9. Familiarity with local, state and federal laws and pPlan provisions
and procedures (i.e. Section 112.66, Florida Statutes).
10. Filing plan documents and reports with the Division of Retirement.
Chapter 112, Florida Statutes.
11. Authorization of disbursements from the pension fund.
E. Recommendations to assist in avoiding fiduciary liability.
1.
Maintain accurate minutes of meetings and written records of
action taken, reports given, discussions and factors considered,
including all steps taken to acquire information bearing on the
issue to be decided. Because the approved minutes are the official
record of Board action, they should be reviewed carefully by each
fiduciary prior to approval.
2.
Periodic review of the Plan documents to assure that you are
familiar with the Plan provisions and that the Plan is amended as
necessary to reflect any changes in law or procedures as they
occur.
3.
Monitor the performance of all consultants.
4.
Periodic review of the contracts with the consultants to assure that
they reflect on a current basis the services being provided, the
amount and method of payment for such services and that they are
in compliance with rules, procedures and laws.
ATTACHMENT
"D"
Fiduciary responsibility
Page 1 of7
Andrea Lorenzo-Iuaces
From: Joanne Krebs [jmkrebs@natinstore.com]
Sent: Monday, July 31, 20069:04 AM
To: Andrea Lorenzo-Iuaces
Subject: Emailing: fiduciary
FIDUCIARY RESPONSIBILITY
IResume I Dailv Commentarvl Contact Us I Site Search I Home Paqe I
In the handling of money and when one acts as a corporate or individual trustee, there is a fiduciary
responsibility owed to the principal party. It is defined as a relationship imposed by law where someone
has voluntarily agreed to act in the capacity of a "caretaker" of another's rights, assets and/or well being.
The fiduciary owes an obligation to carry out the responsibilities with the utmost degree of "good faith,
honesty, integrity, loyalty and undivided service of the beneficiaries interest." The good faith has been
interpreted to impose an obligation to act reasonably in order to avoid negligent handling of the
beneficiary's interests as well the duty not to favor ANYONE ELSE'S INTEREST (INCLUDING THE
TRUSTEES OWN INTEREST) over that of the beneficiary. Further, if the agent should find him/herself
in a position of conflicting interests, the agent must disclose the dual agency (acting for two parties at
the same time) or risk being accused of constructive fraud in regards to both or either principals.
The principal is sound but has limited exposure to the fields of financial planning, real estate, securities
or life insurance since it is rarely taught in any pre-licensing courses nor as part of continuing education
courses as well. Even ethics codes from major organizations have avoided the fiduciary issue since
membership did not want to commit to the apparent extra legal exposure.
FIDUCIARY: In real estate, securities and, I submit, in insurance as well, your agent owes you a
fiduciary obligation in performing their duties for you. The duties include:
1. Utmost Care- The agent is bound to the higher standard of a professional in the field which extends
the standard of duty to investigate within the means of the profession, to ensure the maximum protection
and information be provided the principal.
2. Integrity- Defined as the soundness of moral principle and character. It means the agent must act with
fidelity and honesty
3. "Honesty and Duty of Full Disclosure" of all material facts, either known, within the knowledge of or
reasonably discoverable by the agent which could influence in any way the principal's decisions, actions
or willingness to enter into a transaction
4. Loyalty- An obligation to refrain from acquiring any interest adverse to that of a principal without full
and complete disclosure of all material facts and obtaining the principal's informed consent. This
precludes the agent from personally benefitting from secret profits, competing with the principal or
obtaining an advantage from the agency for personal benefit of any kind.
7/31/2006
Fiduciary responsibility
Page 2 of7
5. Duty of Good Faith- includes total truthfulness, absolute integrity and total fidelity to the principal's
interest. The duty of good faith prohibits any advantage over the principal obtained by the slightest
misrepresentation, concealment, threat or adverse pressure of any kind.
LEGAL LIABILITY: A financial planner has an obligation to provide a standard of care for/to his
clients. In ordinary cases the standard of care is whether or not the accused behaved as an ordinary,
reasonable prudent person would have behaved under the circumstances. When acting as a professional
however, the required standard of care changes. Such individual is required to use any special
knowledge he may have obtained through education, training or experience. Therefore, if a person or
entity offers professional services to the general public, it is presumed that the person possesses some
degree of special skill or knowledge. A professional negligence case imposes a certain level of skill and
knowledge on the accused whether or not he actually possesses that skill or knowledge. This is a
standard of minimum professionally acceptable conduct. Though the standards have not been applied
until most recently to financial planners, it would appear that the essence- for them as well as brokers at
least- is that the adviser put the clients interest first and acts with the best interest of the client in mind.
(Note that that is NOT the case with insurance agents. Even the California Department ofInsurance
states that everyone knows the agent is there to sell life insurance and not necessarily -or certainly
legally-to act in your best interests). Trust officers are also held to a higher level of responsibility, but
some trust companies attempt to reduce exposure by putting in an exculpatory clause- where they hold
themselves only to what a prudent, but inexperienced man would do. But that still does not exclude them
from acting recklessly, in bad faith, or willfully breaching their fiduciary duty to the trust beneficiaries.
After all said and done, let me ask you, does your planer have the skills and knowledge in the first
place? And has he or she put your interest first- or was it the commissions?
SECURITIES/BROKERAGE
The question initially asked is whether or not a broker acts in a fiduciary capacity in dealing with regular
retail customers. In view of the fact that the SRO's (Self Regulating Organizations) impose a
requirement upon brokers to provide only suitable investments, it would appear that a broker
unquestionably has a fiduciary responsibility (at least quasi- fiduciary since most brokers are not acting
with full discretionary authority) to their clients whether they want to accept the responsibility or not.
The underlying NYSE Rule 405 of "know thy client" along with the NASD's requirement to brokers for
suitable investments demands that brokers hold out their customers first in any transaction. This is true
even where the investor suggests- or even demands- a product that would be unsuitable for their
purposes. (The only time a broker could sell an "unsuitable" product might exist when an investor makes
an initial suggestion for an investment and where the broker subsequently informed the investor both
verbally and IN WRITING PRIOR to the sale that the investment did NOT fit the suitability standards
for the particular investor.)
Security arbitration panels should therefore impute a fiduciary responsibility on the part of brokers in
dealing with a customer's money. Investors "trust" brokers based upon a real or perceived level of
honesty, good faith, judgment and responsibility in looking after the money entrusted to him/her. The
broker, in accepting this money, assumes and accepts a responsibility to serve the best interests of the
investor. The broker MUST determine if an investment fits within the customers risk profile, income,
age, objectives (assuming correct), etc. and is also within the guidelines for proper diversification.
The Rules of Fair Practice set down by the NASD state that a broker has definitely breached his/her duty
if a broker
1. recommends speculative securities without finding the customer's financial situation and being
assured that the customer can bear the risk
7/31/2006
Fiduciary responsibility
Page 3 of7
2. does excessive trading (churning) in a customer's account (whether the account is discretionary or
not)
3. does short term trading (and switching) of mutual funds
4. set up fictitious accounts to transact business that would otherwise be prohibited
5. makes unauthorized transactions or use of funds
6. recommends purchases that are inconsistent with the customer's ability to pay.
7. makes unauthorized transactions or use of funds
8. commits fraudulent acts (such as forgery and the omission or misstatement of material facts).
This obligation for fair dealing is not removed through the simple completion of a one page new account
form required by brokerage firms. (Minimum information includes full name, address, phone number,
employer, social security number, citizenship, acknowledgment that customer is of legal age, spouse's
name and employer (if any) and investment objective.
Other information varies as to firm but might include bank and personal references, previous brokerage
accounts, and if the account was solicited, referred, walk in, etc.)
Nor is the liability removed by sending the completed form to the client since clients do not and cannot
be expected to know how a particular investment fits within individual and specific investment
guidelines. It does however relieve the broker of mistakes entered on the form by either party that would
be apparent to- and should have been corrected by-the client.
CALIFORNIA REGISTERED INVESTMENT ADVISER- FAIR, EQUITABLE AND ETHICAL: This
section 260.238 of the Corporate Securities Law, recently revised as of 6/11/92 by the California
Department of Corporations states that it is improper to "recommend to a client to whom investment
supervisory, management or consulting services are provided the purchase, sale or exchange of any
security without reasonable grounds to believe that the recommendation is suitable for the client on the
basis of information furnished by the clients after reasonable inquiry concerning the client's investment
objectives, financial situation and needs and any other information known or acquired by the adviser
after reasonable examination or such of the client's records as may be provided to the adviser". Though
this degree of emphasis is not provided in any instruction for those getting a securities license, it is the
level of conduct that I use in evaluating brokers in formal arbitrations. The section also states that it is a
DUTY of the adviser to inform the client "if lower fees for comparable services may be available from
other sources."
COMMISSIONS
Most brokers are compensated by commissions. This in itself creates a difficulty since there is an
inherent conflict of interest. But since literally all investors recognize the dilemma and the fact that they
may use a discount brokers, the problem is mitigated somewhat. That obviously does not excuse a
broker for churning an account to earn additional commission.
MARKUPS/DOWNS
7/31/2006
Fiduciary responsibility
Page 40f7
This problem will reoccur in the industry on a regular basis since investors cannot determine what the
amount of compensation was received by the broker by reviewing their confirmation statements. NASD
Over the Counter transactions are guided by the NASD 5% rule. It is "roughly" the amount that may be
added to purchases or subtracted from sales and reflects the compensation to the broker firm for acting
as a principal in the transaction. As differentiated from listed securities where the commissions are
clearly identified, only the net proceeds are identified on the confirmation (on agency and other
specialized trades, the compensation is shown).
Even if one assumes that a markup or markdown on a trade by THE FIRM fell within acceptable
guidelines, it still does not clarify what the BROKER actually received. In some cases, the amount of
the broker's total compensation would be nothing greater than what it had been on an agency trade and
where a commission had been imposed. However, many brokers also get a part of the overall spread on
the sale/purchase as well. The total compensation to the broker can therefore far exceed what would
have been made on a commissionable transaction- and yet cannot be discerned by any customer. A
pattern of abuse may be evident if the broker has a substantial amount of all income from OTC stock.
This pattern is most prevalent on lower priced securities since the markup/down may be greater as a
percentage versus higher price stock.
Should a broker show an excessive amount of sales in OTC stock, then a conflict of interest might be
indicated since he/she sold particular products primarily for the higher overall compensation.
PRUDENT MAN RULE
"Prudent Man" from a recent report I did:
Reference is made to what an ordinarily prudent man would have done given these same circumstances.
Unfortunately, the prudent man rule is a generalized dictate that lacks definition- none ofthe
fundamentals are included as reference. Further, all such descriptions fail to address the real life element
of the application of investments. This is not to say that generalized precepts do not have value. Many
do. "Not putting all your eggs on one basket," is a generally accepted tenet but has limited application
without a numerical validation. Part of the issue has to do with the fact that even experts- who are held
to higher standards- are seriously suspect in their understanding of diversification. Diversification is
defined as how many stock must you have in a portfolio in order to insulate it due to unsystematic risk.
Without this, it has been difficult (if not impossible) for (supposed) experts as well inexperienced
investors to know what to do given "XYZ" conditions. The fundamentals of investing have never been
even taught to brokers nor understood by the Broker Dealer firms. The NASD and SEC have never
offered such fundamentals to consumers. Add in the real life emotional and psychological elements that
impact investing (and more) and the prudent man rule becomes more confusing. This is not to say that
certain basic issues are not viable. Nor does it pardon inexcusable activity. But the rule- without proper
definition- has always missed the real world activity of the investor who has been provided nil direction
by the entities that are supposed to protect him.
Prudent Investment Practices - A Handbook for Investment Fiduciaries (Foundation for Fiduciary
Studies via BenefitsLink (May 2002) This guide from the Foundation for Fiduciary Studies will be of
interest to the professional who represents a fiduciary or serves as one. Excerpt: "The primary purpose
of this handbook is to outline the simple and straightforward practices that define a prudent investment
process for investment fiduciaries. ... The legal and practical scrutiny a fiduciary undergoes is
tremendous, and it comes from multiple directions and for various reasons. It is likely that complaints
and/or lawsuits alleging fiduciary misconduct will increase. Although some of these allegations may be
entirely justified, most can be avoided by following the investment practices outlined in this handbook.
Fiduciary liability is not determined by investment performance, but rather on whether prudent
7/3112006
Fiduciary responsibility
Page 5 of7
investment practices were followed."
Fiduciary Responsibility/Prudent Man/401(k) (CFO Kris Frieswick 2002): Once the debacle of Enron
hit, regulators finally took a look at what went wrong- the element of diversification.
Anyway, many are now looking at (or should be looking at) the elements of what was required as a
fiduciary. The article in CFO said that a continued risk lies in the interpretations and execution of the
most commonly misunderstood words in ERISA: Fiduciary Duty. "Most of the existing ERISA land
mines will main after approval of what reform legislation is enacted says the American Benefit Council.
Part of the problem lies in the interpretation and execution of the most commonly misunderstood words
in ERISA: fiduciary duty. "Most of the existing ERISA land mines will remain after approval of [reform
legislation]. The demands of being a fiduciary "are based on prudence in a given situation, and it's hard
to eliminate risk from this kind of fact-specific determination." Indeed, some observers say that Enron's
cardinal sin was not faulty 401(k) plan provisions, but rather its alleged breach of fiduciary duty when
its executives encouraged employees to hold on to their Enron stock even as the company was heading
into bankruptcy.
Most fiduciary breaches are the result of a lack of prudence. "The fiduciaries just don't understand what
their responsibilities are." What's more, managers are frequently unaware that they are, in fact,
fiduciaries. This misunderstanding leads to most of the violations that can lead to lawsuits.
ERISA states that a person is a plan fiduciary "to the extent that he exercises discretionary control or
authority over plan management or authority or control over management or disposition of plan assets,
renders investment advice regarding plan assets for a fee, or has discretionary authority or responsibility
in plan administration." As such, a person can be a fiduciary whether or not he has been formally named
one in the plan document. There are executives and human-resource managers in companies all over the
country, she adds, who may have no idea that they are fiduciaries.
Unfortunately, many companies operate under the misconception that by outsourcing plan
administration to third-party vendors and a plan trustee, they have off-loaded fiduciary responsibility.
Others think that by giving employees a slate of investment options, and letting employees self-direct
those investments, they are also off the hook. "Most companies think, 'We've given them these choices,
that's all we have to worry about.' That also shows a lack of prudence,"
ERISA mandates that when no plan administrator is designated in a plan document, the plan sponsor is
the plan administrator. In this case, the sponsor cannot insulate itself from ongoing responsibility to
another party, such as a third-party administrator, Also, where the sponsor or a committee of plan-
sponsor employees appoints the plan trustee or investment manager, responsibility for monitoring the
performance of the trustee or investment manager ultimately rests with the sponsor or committee making
the appointment.
ERISA roughly as the actions a prudent man in a similar capacity would take in similar circumstances.
Execution of fiduciary duty in this instance is not just a matter of picking good investment options or a
worthy manager (although the chances of anyone raising fiduciary issues are slim if investments are
doing well). The law requires that fiduciaries have a sound process in place to make the decisions.
"Fiduciary responsibility is assessed based on process. To meet the prudent-man standard, fiduciaries
must make themselves reasonably knowledgeable about the options available, investigate a variety of
options and compare choices with competing offerings, and keep detailed records showing how the final
7/31/2006
Fiduciary responsibility
Page 60f7
decision was made."
(Fiduciaries don't have a clue. Unless you know what diversification is, by the numbers, you are out to
lunch in developing any prudent plan).
The duties don't end there. Fiduciaries are also responsible for monitoring the performance of the
trustee, investment managers, or investments they have chosen to ensure that they meet certain
performance thresholds or match the investment policies outlined in plan documents. It's the failure to
execute on this requirement that causes problems for many companies. "A lot of companies say, 'If
there's a problem, we deal with it,'" says Turk-Meena. "That's a blatant ignoring of fiduciary duty. There
is a monitoring requirement as well."
Once fiduciaries are identified, they must be educated about exactly what their role entails. The general
rule is this: fiduciaries are expected to meet the prudent-man standard in the execution of their duties,
which must always be conducted for exclusive benefit of participants and beneficiaries. Obeying this
rule can be complicated, but companies can take some basic steps that will reduce the likelihood of
stepping on ERISA land mines, say experts.
"It's OK to appoint someone who doesn't have expertise and background in it, but you must make
available to that person the resources and people who can help them. If you don't do that, it's an
imprudent appointment."
Under ERISA regulations, a fiduciary is relieved of responsibility and liability for any loss resulting
from a participant's self-directed investment decision if the employee can choose from a broad range of
investment alternatives (at least three meeting certain verification requirements); give investment
instructions to buy or sell with a frequency that is appropriate in light of the market volatility of those
investment alternatives; and obtain sufficient information to make informed investment decisions.
Nowhere, however, does ERISA require or even encourage employers to educate their employees about
making good decisions. Quite to the contrary, ERISA restrictions on "prohibited transactions," or those
transactions that ERISA prohibits between a party-in-interest and the plan, have created an environment
in which employers are highly unlikely to provide real investment advice or meaningful education to
employees. Instead, investment education often involves a lecture on how important it is to diversify
your assets into a variety of asset classes, and to minimize risk as retirement approaches. Period.
This tends to result in employees who are, for better or worse, the ultimate buy-and-hold investors. A
study by the Employee Benefit Research Institute shows that even during 2000, when equities showed
their biggest declines in years, employees did not shift their plan asset allocation out of underperforming
stocks. One reason for this, say experts, is that some employees may still believe that their employer
would never provide them with a retirement vehicle that would lose money or put their personal assets at
risk. This is clearly a hangover from the days when the vast majority of companies offered defined
benefit plans, in which employees were guaranteed a retirement benefit of a specific amount upon
retirement, no matter what happened to the company or the market.
Some of the proposed legislative changes to ERISA seek to alter the fiduciary liabilities of plan sponsors
that arrange for investment advice for their employees. These changes face some of the stiffest
opposition of any of the reforms. There is serious concern among some observers that companies would
most likely seek this investment guidance from the same third-party investment managers they use for
investing plan assets, a situation ripe for conflict of interest--not to mention unintended consequences.
7/31/2006
Fiduciary responsibility
Page 70f7
BACK..IOHOME
7/31/2006
ATTACHMENT
"E"
Page 1 of 1
Andrea Lorenzo-Iuaces
From: Andrea Lorenzo-Iuaces
Sent: Monday, July 31, 20068:46 AM
To: Ron McLemore; Kevin Smith; Michelle Greco
Cc: _Mayor & Commission
Subject: Emailing: www.fppta.org
Ron,
On Thursday, at the Clerk's Meeting I attended, one of the Clerks there, (from Apoka) mentioned they have been
members of the
FPPTA (Florida Public Pension Trustees Association) and that they were working with one of their Attorneys on
another Seminar for their Pension Boards. I asked if they ever allowed other municipalities to attend such
workshops and she said that in the past they have done just that. This Clerk did not have a set date, as they
were working on the details, but said she would let me know.
I did check out the website for the FPPTA (Florida Public Pension Trustees Association - see link in this email)
she mentioned, and I don't believe we have been members of this organization. Is membership to this
organization something that might be helpful to this Board, especially since Deputy Mayor Blake and the
Commission had spoken of their fiduciary responsibilities and that we were to provide them with adequate
training? It looks like the membership is $450.00 per year.
Also, I noticed that the FPPTA (Florida Public Pension Trustees Association) has a "Trustees School" coming up
in early October in St. Petersburg, Florida. (Their Website doesn't note the costs for this as of today).
Thank you,
Andrea
8/212006
ATTACHMENT
"F"
Page 1 of7/
Andrea Lorenzo-Iuaces
From: Kathy Sittig [ksittig@fsu.edu]
Sent: Monday, July 31, 2006 10:03 AM
To: Andrea Lorenzo-Iuaces
Subject: RE: Pension Issues
We do not, but the League suggests checking this association out httR:LLv.,,~yJp-PJ~,g..1:g
Hear they are the best.
Kathy Jolly Sittig
The John Swtt Dailey
Florida Institute of Government at
Florida State University
325 John Knox Road, Building 300
Tallahassee, FL 32303
(850) 487 -1870
(850) 487-0041 (fax)
m--Original Message--m
From: Andrea Lorenzo-Iuaces [mailto:aluaces@winterspringsfl.org]
Sent: Monday, July 31, 2006 9:28 AM
To: Kathy Sittig
Subject: RE: Pension Issues
Thanks and I will check with the hotel.
On a separate note, does your organization offer any courses/seminars for Pension Trustees, or would
you happen to know of any organizations that do? At your earliest convenience, any help would be very
appreciated.
Thilnk you,
A-n~re(\,
Andreil Lorenzo-Luilces, CMC City Clerk
City oFWinter Springs
1126 Eilst Stilte ROild 434
Winter Springs, Floridil 32708
Telephone: (407) 327-5955
Filcsimile: (407) 327-4753
emil i I: 'lJl:iilCCS@..wi nt@!ln.SL~1:Qtg
From: Kathy Sittig [mailto:ksittig@fsu.edu]
Sent: Friday, July 28, 2006 9:03 AM
To: Andrea Lorenzo-Iuaces
Subject: RE:
I thought that you might want to have the hotel correct your reservation (name).
Great on the tech stuff. .. I know it is difficult to get evelJ'one on the same page. @ Let me know if I can
help.
7/31/2006
ATTACHMENT
"G"
Page I of2
Andrea Lorenzo-Iuaces
From: Danielle Harker
Sent: Monday, July 31,200612:51 PM
To: Andrea Lorenzo-Iuaces
Subject: RE: Inquiry
Andrea,
I received some information from Greg Hill at Florida League of Cities. He said that Florida League of
Cities does not offer any classes/conferences/seminars for Pension Boards. He said that the only place
in Florida that does is called Florida Public Pension Trustee Association (FPPTA).
I looked them up online and found out the following information so that you can see if you're
interested:
FPPT A is a not for profit organization whose primary goal is to educate public pension trustees in all
phasing of operating a pension fund. They are located at: 2946 Wellington Circle East
Suite A
Tallahassee, Florida 32309
Phone #: 1-800-842-4064
Fax #: 1-850-668-8514
Website: www.fppta.org
Memb~r:sll~
Active Memberships (Pension Boards and Organizations) - $450.00 per year
Individual Active Membership - $450.00 per year
Fees:
Registration for Schools and Conferences - $400.00 per attendee for school
$450.00 per attendee for conferences
They have a school coming up on October 8-11, 2006 at the Tradewinds Resort in St. Petersburg,
Florida.
If you would like me to receive anymore information, please let me know.
I hope this helps.
From: Andrea Lorenzo-Iuaces
Sent: Monday, July 31, 20069:32 AM
To: Danielle Harker
Subject: Inquiry
Danielle,
8/2/2006
Page 2 of2
Could you please call the Florida League of Cities and see if you can find out if they offer any Pension
Board seminars/classes etc. and get any details you can
wwwJlcities.com
Thqnk you,
A-n~re~
An~req Lmenzo-Luqces, CMC City Clerk
City of Winter Springs
1126 Eqst Stqte ROq~ 434
Winter Springs, Flori~q 32708
Telephone: (407) 327-5955
Fqcsimile: (407) 327-4753
emqil: qlUqccs@winterspringsA,mg
8/212006
ATTACHMENT
"H"
Membership
Page 1 of2
Membership
What kind of Membership is there?
. Active Membership: Any public organization or retirement system which is a legally
constituted retirement pension, or annuity and benefit system or any protective
association. By whatever name they are called, the primary purpose of these
organizations or retirement systems is that of promoting the rights and benefits of the
membership, present and future, of public employees who are members.
. Associate Membership: Organizations and individuals interested in the objectives of
this organization who are in the business of providing services for public retirement
system, vendors, and suppliers.
. Individual Members: Any individual, located either within or outside the boundaries
of the State of Florida, who maintains an interest in the preservation and protection of
Public Employee Pension Trust Funds and is not otherwise eligible for membership.
Individuals meeting such qualifications shall be admitted to membership upon the
making of an application and the payment of all membership class dues and
assessments, the intent of this class membership is to allow interested individuals the
opportunity to pursue the education or certifications offered by the corporation, such
membership shall have full rights and privileges except the right to vote, afforded by
this corporation.
Membership Dues
Active Membership - (pension boards and organizations)
$450.00 per year.
Individual Active Membership
$450.00 per year
Associate Membership - (vendors and suppliers)
$1,100.00 per year.
Individual Associate Membership
$1,100.00
How Can I Become a Member?
Membership is for pension boards and organizations. Fill out a membership form and mailing list,
mail them with your checks in a self -addressed envelope. In the case of pension boards
membership, it includes your board trustees, administrator, staff, and support personnel. A mailing
list of your pension board trustees and administrator or contact person must accompany your
membership form and should be updated as people are replaced so that we can maintain a current
http://www.fppta.org/Member/member.htm
8/2/2006
Membership
Page 2 of2
mailing list. If we do not have a current mailing listing on file, your board will not be eligible to
vote at the membership meeting or in the directors election. Your membership allows you to
attend Trustees Schools, and the Annual Conference and Membership meeting. Membership
affords you a great educational opportunity and the benefit of interaction with other trustees and
administrators.
Associate Membership gives your company the opportunity to be as actively involved as you
desire. We need speakers for our schools and conference, Newsletter articles, and sponsorship of
various events. Associate Advisory Board members run golf classic and the conference exposition
area along with editing our Newsletter. There are many areas of involvement available.
Associate Membership Forms
Active Membership Forms
Product Form
(For The W eb Site)
Fees
Registration for Schools and Conference:
Active - $400.00 per attendee for School
$450.00 per attendee for Conference
Associate - $600.00 per attendee for School
$650.00 per attendee for Conference
Florida Public Pension Trustees Association
2946 Wellington Circle East
Suite A
Tallahassee, FL 32309
Phone: 1-800-842-4064
Fax: 850-668-8514
Email: .fjJpta@fjJpta.org
http://www.fppta.org/Member/member.htm
8/2/2006
2000 Yearly Active Membership
Page 10f3
2006 Yearly Active Membership
Board Name:
Address:
City, State, Zip:
Contact Person:
Administrator:
Phone:
Fax:
Total fund assets as of
$
Membership Dues
2006 Yearly Active Members
$450 per year
Payment due upon receipt.
Please make checks payable to:
Florida Public Pension Trustees Association (FPPT A)
We Accept: Visa, Master Card, American Express
Account Number:
Signature:
Expiration Date:
Active Membership: Any public organization or retirement system which is a legally constituted
retirement pension, or annuity and benefit system or any protective association, by whatever
name called, whose primary purpose is that of promoting the rights and benefits of the
membership, present or future, of public employees who are members of such retirement systems.
Page 2
http://www.fppta.org/Member/actform.htm
8/2/2006
2000 Yearly Active Membership
Page 2 of3
2006 Trustee List
Board Name:
Contact Person:
Address:
Administrator:
Address:
Trustees
Name:
Address:
Name:
Address:
Name:
Address:
Name:
Address:
Name:
Address:
Name:
Address:
Name:
Address:
Name:
Address:
http://www.fppta.org/Member/actform.htm
8/2/2006
2000 Yearly Active Membership
Page 3 of3
Page 3
Information You Need to Know
Membership
Please be sure you fill out the forms in their entirety. Without a Trustee List your
board will not be in good standing and not eligible to vote in the election.
Payment-
For your convenience we now accept Visa, Master Card, and American Express. If
you wish to use one of these cards please circle which card you are using, Also, provide
the account number and expiration date.
Confirmation-
Due to the amount of registration and or membership payments we do not give
confirmations or receipts. Please use your cancelled check or credit card statement as
a receipt.
Certified Public Pension Trustee
CPPT
If you would like more information about a CPPT recipient please call 800-842-4064.
We would be happy to answer any question you may have.
Website
Our website is www.fppta.org. We have our CPPT information, newsletter, service
providers, Board of Directors, Advisory Board, Education Committee, upcoming
events, membership, state and federal government. We have added more information
to our web site. Please take some time to look us up and let us know what you think.
http://www.fppta.org/Member/actform.htm
8/212006
ATTACHMENT
"I"
@byFPPTA
FPPTA
Trustees School
Tentative Program Agenda
October 8 - 11, 2006
Tradewinds Resort
St. Pete Beach, Florida
800-808-9833
4:CJCJ
undav
ctober 8, 2006
A Planning Your Tomorrow
8:00 AM - 4:00 PM
Board of Dire
9:CJCJ - 1 CJ:CJCJ .m.
Orientation for New
3:CJCJ p.m.
School Registration
4:CJCJ p.m. to 5:CJCJ p.m.
Welcome Gathering
5:00 p.m. to 7:30 p.m.
Program Agenda
Monday, October 9,2006
7:00 a.m. School Registration
7:00 a.m. Continental Breakfast- Pre-Function Area
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8:00 -
8: 15 a.m.
8:15 -
9:00 a.m.
9:00 -
9:45 a.m.
9:45 -
10:30 a.m.
Introduction
Ga Clark
Wall Street, The Fed and
Others
Bob Morris 1
Basic Duties &
Responsibilities of Trustees
Steve Palmquist 2
Overview of Florida Law
112- 175 - 185
Attorney -
Ron Cohen
Introduction
Mike S encer
Economics of Investing
Mike 5. encer 20
Selecting a Money
Manager
Charlie Mulfin er 21
Developing &
Implementing an
Investment Policy
Geoli e Lin
Introduction
Grant McMur
Investment Definitions &
Benchmarks
Michael Welker 40
The Underperforming
Manager
John Reifsnider 41
Trustee
Paradigm. ..Chasing
Returns
David West
10:45 -
11:30 a.m.
11:30 -
12: 15 p.m.
Meeting Protocol
Steve Aspinall
Pete Prior 4
Introduction to Stocks
Market Cap/Style Cycles
Kevin Leonard 23
Drop Plans
Attorney-
Ron Cohen
Enhancing Your Equity
Allocation
TBA 43
Market Sectors
1:45 - Introduction to Bonds Investment Impact on Disability Panel
2:30 p.m. Your Actuarial Valuation Steve Aspinall - Moderator
Attorneys, Administrators,
Howard Bos 6 Ira Summer 25 Trustees, Medical Expert
2:30 - Asset Allocation International Investment
3:15 p.m. Options 45
Tim Nash 7 Paul De Leon 26
3:30 - Benchmarking Active vs. Passive Costing of Benefits
4: 15 p.m. Fundamentals Enhancements
EdEk
Mike Spencer 8 David West 27 Chad Little 46
+4:00 p.m. to 12:00 a.m. Hospitality Room and Study Hall.
Pizza and Beverages provided. Pizza will be ordered for 7:00 p.m.
@byFPPTA
~T 1\SSOCIATION
......p ~PE T\jNS :~~~TEES
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Program Agenda
Tuesday, October 10, 2006
7:00 a.m. School Registration
7:00 a.m. Continental Breakfast- Pre-Function Area
8:00 - Pension Fundamentals The Bond Market Risk Management
8:45 a.m. Panel Discussion Pat Kell 28 Lar. Cole 47
8:45 - Moderator-Gary Clark Stock Investing Military Entitlements
9:30 a.m. Bart McMurry Attorney-
Madelene Klein Jason Brandt 29 Ken Harrison 48
9:30 - Patrick Cox Portfolio Diversification & Active Fixed Income
10: 15 a.m. Ira Summer 9 Rebalancing Strategies
Jeff Swanson 30 John Milne 49
10:30 - Types of Pension Plans Portfolio Review Case Fixed Income Alternatives
11:15 a.m. Brad Armstrong 10 Study- Panel Presentation JoAnn Stoddard 50
Moderator - Steve Chase
Jeff Swanson
11:15 - Financial News Resources Mike Spencer Real Estate Alternatives
12:00 p.m. Mary Sweeney 11 Bart McMurry 31 Richard Cohen 51
1:30 -
2: 15 p.m.
Ethics For Pension
Trustees
Ken Harrison 12
Fiduciary Homework
A Trustee's View
Dennis Hole - Trustee
Coo er Ci Police 13
2:15 -
3:00 p.m.
Execution Costs
Kevin Byrnne 32
Equity AnalysisfGrowth-
Value
Disability Procedures
Attorney -
Ken Harrison 33
David Macey
Catherine Woodruff 52
3:15 -
4: 15 p.m.
Basic Review
Gary Clark, Pete Prior,
Dennis Hole
Intermediate Review
Mike Spencer,
Jeff Swanson, Jack Farland
Advanced Review
Grant McMurry,
George Farrell, Steve
As inall, Richard Wells
+4:00 p.m. to 12:00 a.m. Hospitality Room and Study Hall.
Pizza and Beverages provided. Pizza will be ordered for 7:00 p.m.
@by FPPTA
Program Agenda
Wednesday, October 11,2006
7:00 a.m. Continental Breakfast in the Pre-Function Area
8:45 - Social Security:
9:30 a.m. The Optional Tax
Conflicts of Interest
Basic Exam
Intermediate Exam
Advanced Exam
9:30 -
10: 15 a.m.
Lowell Walters
Plan Comparison to FRS
Steve 0 en
Chapter 112
Exam result letters will be
mailed out by October
20th.
10:30 - Attorneys Round Table
12:00p.m.
Moderator:
Attorney-
Ken Harrison
Attorneys -
Steve Cypen,
Bonni Spatara Jensen,
Bob Sugarman,
Matt Mierzwa
This will end our educational session.
FPPTA
2946 Wellington Circle East, Suite A
Tallahassee, FI 32309
800-842-4064
Fax 850-668-8514
www.fppta.org
Email-
fppta@fppta.org, Lois@fppta.org, Kim@fppta.org
@byFPPTA