official publication of the sergeants benevolent ...tered by new york life investment management...

FRONTLINE April 2010 An NYPD Sergeant—The Toughest Job In the World www.sbanyc.org1

Official Publication of the Sergeants Benevolent Association, Police Department, City of New York

Vol. 9 No. 3 www.sbanyc.org April 2010

ED MULLINSPRESIDENT

FRO M THE PRESIDENT’S DESK

T he following is the financial report for the SBA Annuity Fund, which I’m happy to report is very strong and projections for the future are extremely positive and sound. The information contained in this newsletter is a sum-

mary of the Fund’s audited financial statements for the past 8 years. Once again, aswe have always promised, the financial statements for the period ending June 30,2009, received a fully-approved certified opinion from our independent auditors. Ofthis, I am extremely proud.

The past 27 months have been the most tumultuous in the investment communitysince the 1930s. Many portfolios that are structured like ours have lost 30 to 50 per-cent of their value. The Dow Jones Average and the S&P 500 have both lost morethan 40 percent of their value. At the market’s lowest point, in March 2009, theAnnuity Fund as a whole was down approximately 25 percent from its highest pre-vious value.

Since the market’s lowest point, the Fund has recovered most of the sustained loss-es and is now approximately 5 percent off from its previous highs. In fact, in theperiod from July 1, 2005 through March 31, 2010, the Fund has had a cumulativereturn of 10.4 percent compared to the Standard & Poor’s return of 0.97 percent.

The trustees of the Fund have been proactive in managing the both the Core Fundand the options available for those members choosing to manage their accountsthemselves. Over the past 18 months the trustees have changed investment man-agers in four of the six components of the Core Fund. On the advice of our invest-ment counselor, we had also elected to re-weigh the Core Fund from a 60/40 equi-ty/stable-based portfolio to a 50/50 equity/stable-based portfolio when the marketwas spiraling downward.

Once the recovery picked up momentum, the trustees reverted to the original 60/40allocation. I am confident that as the economy recovers, the investment managersnow in place will be in position to take advantage of a multitude of financial oppor-tunities.

Over the past years there have been a number of additional choices added to theFund’s investment options. If you have not done so recently, I encourage you toreview your quarterly statement or go online to ensure that your investment selec-tions are right for you.

Please take the time to carefully read the enclosed financial information and materi-al describing the Fund. As always, please feel free to contact me or any member ofthe board if we can be of help to you in any way.

Fraternally,

Ed MullinsPresident

��&'�� *(#)'��&'��! ��

EDWARD D. MULLINSPresident

ROBERT GANLEYVice President

ROBERT W. JOHNSON, ESQ.Treasurer

MAUREEN E. MURPHYRecording Secretary

GARY DEROSAFinancial Secretary

JERRY LEARYHealth & Welfare Secretary

PAUL A. CAPOTOSTOCity-Wide Secretary

JOHN DORSTSergeant-at-Arms

VINCENT VALLELONGMarshal

DIRECTORS

MICHAEL PERUGGIAE.M.D./Headquarters

COSMO LUBRANO23 Precinct/Manhattan North

ARTHUR SMARSCHPBMS/Manhattan South

ANTHONY AUGELLOTD-33/Transit Bureau

STEPHEN O’HAGANSOD/Housing Bureau

EDWARD CONROYCiti Field/Queens North

ANTHONY BORELLIMNND/OCCB Director

RAYMOND BRICKLEY42 Precinct/Bronx

PETER MCCORMACKDBBX/Detective Bureau

GERALD WALSH84 Precinct/Brooklyn North

PATRICK LOGAN67 Precinct/Brooklyn South

VINCENT GUIDASITF/Staten Island

KEVIN KERRIGANHwy District/PBQS


SBA ANNUITY FUND

The SBA Annuity Fund is an Internal Revenue Service recognized 401a Retirement Plan adminis-tered by New York Life Investment Management Company. All sergeants become participants inthe Fund immediately upon promotion. Sergeants currently receive $1,119.69 annually, but thatwill increase to $1,380.69 effective September 1, 2010.

Sergeants S/A-SDS currently receive $1,197.99, but that will increase to $1,458.99 effectiveSeptember 1, 2010. These payments are pro-rated into 28 day payment cycles and are entereddirectly into each sergeant’s account as per our collective bargaining agreement.

The Trustees monitor all investment options and with the recommendation of the Fund’s invest-ment consultant, Reynolds Securities Ltd., institute changes to the investment options.Members may select from a menu of 25 investment options, which vary from the Trustee-man-aged Core Fund, a Stable Value option, individual mutual funds, and age-based portfolios calledLifecycle Funds, which are managed by T. Rowe Price.

Please see the accompanying list of investment options. Members may go online (www.bcomplete.com) or use the phone system (1-800-294-3575) to select their choices and maychange selections as often as they like. Some other highlights of the Fund include the following:

• As a New York State government sponsored 401a retirement plan, distributions are exemptfrom New York State and New York City income taxes, in addition to being non-taxable in anyother state that exempts government pensions from income tax.

• The Fund accepts rollovers from other New York tax exempt retirement plans such as thePension Fund’s “final loan” and the banked Variable Supplement, thus preserving theirexempt status.

• The Fund accepts rollovers from any other qualified retirement plans such as NYC DeferredCompensation, 401k, or any other current or future retirement plan that you may join.

• The Fund provides for Daily Account Valuation.

• The Fund can process any distribution that the member may choose. These include RequiredMinimum Distributions, Periodic Installments, or early IRS Section 72(t) Distributions, whichprovides for no federal penalty under certain conditions.

• If a member retires from the Department after the age of 50, they can receive theDistribution as a normal retirement payment not subject to the 10 percent federal penalty.

• Beneficiaries may maintain an account with full member privileges in the event of a member’s death.

SBA ANNUITY FUNDINVESTMENT OPTIONS

Percentage ofInvestment Options Investment Styles Total Fund InvestmentStable Value . . . . . . . . . . . . . . . . . . . . . . . Stable Value . . . . . . . . . . . . . . . . . . . . . 7.01%SBA Core Fund. . . . . . . . . . . . . . . . . . . . . . Core Fund . . . . . . . . . . . . . . . . . . . . . . . 72.07%American Century Equity Inc.. . . . . . . . . . . . Mid Cap Value . . . . . . . . . . . . . . . . . . . . 1.72%Mainstay Indexed Equity . . . . . . . . . . . . . . . S&P 500 Index . . . . . . . . . . . . . . . . . . . 1.60%Oakmark Equity & Income. . . . . . . . . . . . . . Balanced(Allocation). . . . . . . . . . . . . . . . 2.81%Van Kampen Growth & Inc . . . . . . . . . . . . . Large Cap Value . . . . . . . . . . . . . . . . . . 1.20%AIM Real Estate . . . . . . . . . . . . . . . . . . . . . Real Estate . . . . . . . . . . . . . . . . . . . . . . 0.09%The Growth Fd of America . . . . . . . . . . . . . . Large Cap Growth . . . . . . . . . . . . . . . . . 0.58%Artisan Mid Cap . . . . . . . . . . . . . . . . . . . . . Mid Cap Growth. . . . . . . . . . . . . . . . . . . 1.89%Davis NY Venture . . . . . . . . . . . . . . . . . . . . Large Cap Blend . . . . . . . . . . . . . . . . . . 0.67%Mainstay MAP Equity . . . . . . . . . . . . . . . . . Mid Cap Blend. . . . . . . . . . . . . . . . . . . . 0.94%JP Morgan Mid Cap Value . . . . . . . . . . . . . . Mid Cap Value . . . . . . . . . . . . . . . . . . . . 0.73%MFS Core Growth . . . . . . . . . . . . . . . . . . . . Large Cap Growth . . . . . . . . . . . . . . . . . 0.37%Royce Low Priced Stock . . . . . . . . . . . . . . . Small Cap Blend . . . . . . . . . . . . . . . . . . 2.80%Artisna International . . . . . . . . . . . . . . . . . . International . . . . . . . . . . . . . . . . . . . . . 2.81%T.Rowe Price Global Tech . . . . . . . . . . . . . . Technology . . . . . . . . . . . . . . . . . . . . . . 0.45%T.Rowe Price Retirement 2010 . . . . . . . . . . Target Retirement . . . . . . . . . . . . . . . . . 0.05%T.Rowe Price Retirement 2015 . . . . . . . . . . Target Retirement . . . . . . . . . . . . . . . . . 0.15%T.Rowe Price Retirement 2020 . . . . . . . . . . Target Retirement . . . . . . . . . . . . . . . . . 0.22%T.Rowe Price Retirement 2025 . . . . . . . . . . Target Retirement . . . . . . . . . . . . . . . . . 0.19%T.Rowe Price Retirement 2030 . . . . . . . . . . Target Retirement . . . . . . . . . . . . . . . . . 0.21%T.Rowe Price Retirement 2035 . . . . . . . . . . Target Retirement . . . . . . . . . . . . . . . . . 0.16%T.Rowe Price Retirement 2040 . . . . . . . . . . Target Retirement . . . . . . . . . . . . . . . . . 0.07%T.Rowe Price Retirement 2045 . . . . . . . . . . Target Retirement . . . . . . . . . . . . . . . . . 0.05%T.Rowe Price Retirement Inc . . . . . . . . . . . . Target Retirement . . . . . . . . . . . . . . . . . 0.02%NYL Portfolio Income . . . . . . . . . . . . . . . . . Lifecycle(Conservative) . . . . . . . . . . . . . . 0.08%NYL Portfolio Income & Growth . . . . . . . . . . Lifecycle(Moderate) . . . . . . . . . . . . . . . . 0.21%NYL Portfolio Growth . . . . . . . . . . . . . . . . . Lifecycle(Aggressive) . . . . . . . . . . . . . . . 0.84%

��&'�� *(#)'��&'��! ��


SBA ART CALENDAR CONTEST

For the seventh year in a row the SBA is sponsoring itspopular Art Calendar Contest for the schoolchildren ofALL active and Lifetime members. Children in gradesK-12 are urged to submit a drawing with a policetheme and/or a theme related to the month that corre-sponds with their grade, to be used in the 2011 SBAcalendar. The 13 winners from each respective gradewill be featured during the following months:

Kindergarten: Dec. 2010 7th Grade: July 20111st Grade: Jan. 2011 8th Grade: August 20112nd Grade: Feb. 2011 9th Grade: Sept. 20113rd Grade: March 2011 10th Grade: Oct. 20114th Grade April 2011 11th Grade: Nov. 20115th Grade: May 2011 12th Grade: Dec. 20116th Grade: June 2011

Examples of themes related to the entrants correspon-ding grade might be: 2nd Grade (February) entrantsincorporating a police and Valentine’s Day theme; 7thGrade entrants (July) incorporating a police andIndependence Day theme; 12th Grade entrants(December) incorporating a police and holiday theme.

Entrants must include their name, address, phonenumber, age, grade, and school attended, as well asthe name, command and tax number of their parent orguardian who is an SBA member. Both active andretired members must submit their tax number.Addresses will not be used on the calendar. Winnerswill receive new computers from corporate sponsorsand runner-ups will receive U.S. Savings Bonds.

All entries will be evaluated by an independent judge.Past judges have included esteemed artists Peter Max,LeRoy Neiman and Ray Michael “Bubba” Sorensen. Allof the proceeds will be donated to the SBAScholarship Fund. Entries MUST be submitted on an 81/2 by 11 landscape side (horizontal) sheet of whitepaper. They must be a HORIZONTAL line drawing andNO oil or charcoal drawings are allowed.

Entries must be postmarked no later than Friday, July 2, 2010. They should be mailed to Robert W. Johnson, Treasurer, 35 Worth Street, New York, NY 10013.

For the Benefit of theWidows & Children’s Fund

1st Prize 2010 BMW 328i2nd Prize 2010 Harley-Davidson Dyna3rd Prize Bose Home Theater4th Prize MacBook Pro Laptop5th Prize 50" Plasma TV

FOR TICKETS CALLROBERT W. JOHNSON, TREASURER

(212) 226-2180 SBA OFFICE

Drawing to be held on 12/16/10At the Delegate Luncheon

ONLY 3000 T ICKETS WILL BE SOLD

Raffle Ticket $50

NEWS & NEWSMAKERS

NOMINATIONS FOR SBA BOARD

In accordance with the SBA’s Constitution and By-Laws, nomi-nations for the Board of Officers will take place at the Maymeeting.

Requirements for nomination are as follows:

1 Active member in good standing and seeking the office.

2 A Delegate of the Association and has been a Delegatefor at least one (1) year prior to the nomination.

3 Nominations for the office shall be made at the regularmeeting in the month of May, by petition to the RecordingSecretary. The petitions for citywide offices must containat least ten (10) Delegates’ signatures. The petitions forBoro Director must contain two (2) Delegates’ signaturesfrom the Boro Command represented.

4 A candidate not present may be placed in nomination foroffice providing that the nominating petition has the writ-ten consent of the candidate who is placed in nominationfor the office.

5 A notice that nominations are in order for officers in theAssociation shall be placed in the newsletter prior to theMay meeting.

NEXT DELEGATE MEETINGWhen: Tuesday, May 11, 2010Where: Antun’s Restaurant

96-43 Springfield BlvdQueens Village, NY 11429

Phone: 718-468-6400

NYC Police Pension Fund web site:www.nyc.gov/nycppf

There is a link from the SBA web site.

CONTACT US:SBA: 212-226-2180/fax: 212-431-4280

Health & Welfare: 212-431-6555/fax: 212-431-6487Editor/Writer: Robert MladinichE-mail: [email protected]

Phone: 212-343-5674www.sbanyc.org

��&'�� *(#)'��&'��! ��


SBA ANNUITY FUNDSTATEMENT OF NET ASSETS

Year Ended Year Ended Year Ended

6/30/09 6/30/08 6/30/07

ASSETS

Investments at fair market value $134,363,056 $159,646,383 $175,141,096

Employer contributions receivable 1,058,420 1,018,897 593,700

Transfers from other plans 14,063 245,604 302,488

Lawsuit settlement receivable

Investment income 25,204 48,036 53,069

Commission rebate receivable 55,252 56,888 52,111

Prepaid expenses 1,933 4,091 1,926

Fixed Assets—net of depreciation 8,083

TOTAL ASSETS $135,526,011 $161,019,899 $176,144,390

LIABILITIES

Checking overdraft

Due to other plans 70,226 571,972

Accrued expenses payable 77,234 77,234 162,335

Benefits payable

Due to affiliated organizations 237,210 164,181 410,653

TOTAL LIABILITIES 384,670 241,415 1,144,960

NET ASSETS AVAILABLE FOR BENEFITS $135,141,341 $160,778,484 $174,999,430

��&'�� *(#)'��&'��! �


Year Ended Year Ended Year Ended Year Ended Year Ended

6/30/06 6/30/05 6/30/04 6/30/03 6/30/02

$155,177,092 $140,918,584 $126,659,115 $107,625,267 $108,840,981

607,617 974,534 984,700 990,809 1,399,349

150,094 357,747 25,175 818,456 423,781

250,000

56,713 51,164 58,408 68,003 480,288

50,104 52,111 52,340 141,353

1,943 1,943 1,378 451 291

$156,043,563 $142,606,083 $127,781,116 $109,644,339 $111,144,690

247,042 1,115,986 59,638 752,411 100,376

68,483 815,092 475,882 118,582 200,013

40,472 2,466,395

351,189 293,973 219,733 192,348 87,508

666,714 2,225,051 755,253 1,103,813 3,754,292

$155,376,849 $140,381,032 $127,025,863 $108,540,526 $107,390,398

��&'�� *(#)'��&'��! �


SBA ANNUITY FUNDSTATEMENT OF CHANGES IN NET ASSETS

Year Ended Year Ended Year Ended 6/30/09 6/30/08 6/30/07

ADDITIONS TO NET ASSETS

Investment income:Interest and dividends 3,888,367 8,158,667 5,974,781 Net appreciation/(depreciation) in fair value (29,666,773) (19,433,341) 15,827,483 Total Investment Income/(Loss) (25,778,406) (11,274,674 ) 21,802,264

Less—Investment fees 283,285 476,897 492,211 Net Investment gain/(loss) (26,061,691) (11,751,571) 21,310,053

Contributions:Transfers from other plans 1,222,398 2,404,237 2,873,397 City of New York 5,287,362 5,157,915 5,217,236 Total Contributions 6,509,760 7,562,152 8,090,633 Other income 3,782 464 219 Total Additions/(Reductions) (19,548,149) (4,188,955) 29,400,905

DEDUCTIONS FROM NET ASSETS

Benefits:Paid to participants 5,218,061 7,265,566 7,316,591 Transfers to other plans 617,206 2,533,387 2,286,946 Total Benefits Paid 5,835,267 9,798,953 9,603,537

Administrative expenses:Professional fees 119,916 108,215 88,262 Overhead allocation 116,102 106,627 61,385 Ofiice & administrative expenses 17,197 18,196 25,140 Depreciation expense 512 Total Administrative Expenses 253,727 233,038 174,787 Total Deductions 6,088,994 10,031,991 9,778,324 Net Increase/(decrease) (25,637,143) (14,220,946) 19,622,581

Net Assets Available for Benefits:Beginning of year 160,778,484 174,999,430 155,376,849 End of Year 135,141,341 160,778,484 174,999,340

��&'�� *(#)'��&'��! ��


Year Ended Year Ended Year Ended Year Ended Year Ended6/30/06 6/30/05 6/30/04 6/30/03 6/30/02

4,497,281 3,569,768 2,635,370 $2,512,215 $2,930,362

8,703,566 6,772,705 15,515,204 1,386,577 (19,050,079) 13,200,847 10,342,473 18,150,574 1,125,638 (16,119,717)

460,557 408,878 489,578 292,748 669,034 12,740,290 9,933,595 17,660,996 832,890 (16,788,751)

4,700,829 3,533,428 1,590,554 3,623,602 4,657,272 5,245,305 5,264,683 5,497,723 5,479,797 5,806,148 9,946,134 8,798,111 7,088,277 9,103,399 10,463,420 0 196 81,298 50,326 913 22,686,424 18,731,902 24,830,571 9,986,615 (6,324,418)

5,732,646 5,647,541 5,075,381 6,265,747 11,239,486 1,782,408 3,073,793 387,894 2,219,885 4,751,640

7,515,054 8,721,334 5,463,275 8,485,359 15,991,126

97,668 81,262 64,218 239,023 57,735

59,160 76,182 78,310 103,773 87,302 18,725 17,451 12,234 8,332 4,052

175,553 174,895 154,762 351,128 149,089 7,690,607 8,896,229 5,618,037 8,836,487 16,140,215 14,995,817 13,355,169 18,485,337 1,150,128 (22,464,633)

140,381,032 127,025,863 108,540,526 107,390,398 129,855,031

155,376,849 $140,381,032 $127,025,863 $108,540,526 $107,390,398

��&'�� *(#)'��&'��! ��

SERGEANTS BENEVOLENT ASSOCIATION

35 WORTH STREETNEW YORK, NY 10013

PRESORTEDFIRST CLASS MAILU.S. POSTAGE

PAIDNEW YORK, NYPERMIT NO. 9881

PLEASE PRINT CLEARLY

LAST NAME FIRST NAME

TAX NUMBER PHONE CELL PHONE

ADDRESS CITY STATE ZIP

ACTIVE RETIREDCURRENT OR LAST COMMAND

LAST NAME FIRST NAME

NAME OF COLLEGE ATTENDING

MEM

BER’S

INFORMATION

APPLICANT’S

INFORMATION

SBA SCHOLARSHIP APPLICATION(DEADLINE EXTENDED)

Applicants must be a dependent child of an active orLifetime member, and a high school graduate not previ-ously enrolled in college.

The selection process is based on SAT scores. Thosewith the 20 highest scores will be eligible for a $2,500scholarship. Applications must be submitted by Friday, June 25, 2010. A copy of the SAT scores must be included.

A Letter of Consideration will be sent to those candi-dates selected. Upon receipt they will be given 30 days to return an official copy of their SAT scores and college enrollment verification.

Upon verification, an official Letter of Congratulationsand an invitation to attend a luncheon in their honor willbe mailed to the winners. The certificate and a checkwill be presented at the luncheon.

If you have any questions or would like to make a dona-tion to the SBA Scholarship Fund, please call CitywideSecretary Paul Capotosto at the SBA office. The numberis 212-226-2180.

Mail Application to: Paul Capotosto, Citywide Secretary Sergeants Benevolent Association35 Worth StreetNew York, NY 10013

��&'�� *(#)'��&'��! �

official publication of the sergeants benevolent ...tered by new york life investment management...

Documents