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HomeMy WebLinkAbout09-21-2021 AgendaG", HOME OF PELICAN ISLAND PUBLIC NOTICE — POLICE PENSION BOARD VIRTUAL MEETING SEPTEMBER 21, 2021 THE POLICE PENSION BOARD WILL HOLD A REGULAR QUARTER MEETING TUESDAY, SEPTEMBER 21, 2021 AT 10:00 A.M. THE MEETING WILL BE CONDUCTED BY USING ZOOM TECHNOLOGY. THE PUBLIC CAN ACCESS THE MEETING VIRTUALLY VIA ZOOM BY FOLLOWING THE DIRECTIONS SHOWN AT THE BOTTOM OF THIS AGENDA. HOWEVER, THE PUBLIC IS ADVISED TO CHECK THE CITY WEBSITE FOR UP-TO-DATE INFORMATION ON ANY CHANGES TO THE MANNER IN WHICH THE MEETING WILL BE HELD AND THE LOCATION. AGENDA A. CALL TO ORDER Chairperson B. ROLL CALL Chairperson C. VOTE TO EXCUSE ABSENT BOARD MEMBER(S) Chairperson D. APPROVAL OF MINUTES: 1. December 15, 2020 Regular Quarterly Meeting Chairperson 2. June 15, 2021 Regular Quarterly Meeting Chairperson E. OLD BUSINESS 1. Approval of Payments: Ken Killgore, Plan Administrator a. Highland Capital — April to June — Value, ADR $ 6,695.05 b. Highland Capital — April to June —Fixed Income $ 3,404.91 C. Boston Partners — April to June $ 6,376.76 d. Fiera Capital — April to June $ 3,262.31 e. Renaissance — April to June $ 2,568.82 f Polen Capital Management — April to June $ 3,037.77 g. Morgan Stanley Consulting — January to March $ 3,375.00 h. Morgan Stanley Consulting — April to June $ 3,375.00 i. Klausner, Kaufman, Jensen & Levinson — June/July $ 2,397.50 j. Klausner, Kaufinan, Jensen & Levinson — August $ 127.50 k. City of Sebastian — Janet Graham 6/15/2021 Meeting $ 108.00 1. City of Sebastian — July to September $ 6,000.00 m. Salem Trust — April to June $ 7,510.00 2. Approval of March 16, 2021 Report from Investment Monitor Ken Killgore, Plan Administrator 3. Approval of March 16, 2021 Report from Investment Manager Ken Killgore, Plan Administrator F. PUBLIC INPUT Chairperson 1. The Public may comment or ask questions at this time. The Public can also submit questions and or comments to the Plan Administrator's email at kkillgore(d),cityofsebastian.org. Such questions or comments will be read aloud during this time. G. NEW BUSINESS 1. Approval of Budget for FY2021-2022 Ken Killgore, Plan Administrator 2. Report from Investment Monitor Andy Mcllvaine, Morgan Stanley 3. Report from Investment Manager Todd Wishnia, Highland Capital H. LEGAL UPDATES — Klausner, Kaufman, Jensen & Levinson Bonni S. Jensen, Board Attorney I. BOARD MEMBER REPORTS AND COMMENTS Chairperson J. PLAN ADMINISTRATOR REPORTS AND COMMENTS Ken Killgore, Plan Administrator 1. Meeting Dates for FY2022 are March 15, June 21, September 20, and December 13. 2. Receipt of Annual State Contribution 3. Budget Report for FY2020-2021, Review Calendar of Board Activities, Other Administrative Matters K. NEXT SCHEDULED QUARTERLY MEETING: December 14, 2021 Chairperson ADJOURN Please note: In accordance with Florida Statue 286.0105: any person who desires to appeal any decision at this meeting will need a record of the proceedings and for this purpose may need to ensure that a verbatim record of the proceedings is made which includes the testimony and evidence upon which the appeal is based. In accordance with Florida Statute 286.26: Persons with disabilities needing assistance to participate in any of these proceedings should contact the Administrative Services Department at least 48 hours prior to the meeting at kkill ore ci ofsebastian.or or telephone 772-388-8205. Join Zoom Meeting: httos://us02web.zoom.us/i/81014167559 Meeting ID: 810 1416 7559 One tap mobile +13126266799„81014167559# US (Chicago) +19294362866„81014167559# US (New York) Dial by your location +1 312 626 6799 US (Chicago) +1 929 436 2866 US (New York) +1 301 715 8592 US (Washington DC) +1 346 248 7799 US (Houston) +1 669 900 6833 US (San Jose) +1 253 215 8782 US (Tacoma) Meeting ID: 810 1416 7559 Find your local number: https://us02web.zoom.us/ulkerL8BU7zs CITY OF SEBASTIAN POLICE PENSION BOARD MINUTES OF REGULAR QUARTERLY MEETING DECEMBER 15, 2020 Call to Order -- Chairman Jason Gillette called the meeting to order at 10:00 a.m. II. Roll Call Present: Board Members: Jason Gillette Tim Wood Paul Williamson Andrea Ring Albert lovino (Zoom) Also Present: Bonni Jensen, Klausner, Kaufman, Jensen & Levinson, Attorney for the Board of Trustees (Zoom) Ken Killgore, Plan Administrator Andy Mcllvaine, Morgan Stanley Scott Owens, Morgan Stanley Douglas Lozen, Foster & Foster (Zoom) Todd Wishnia, Highland Capital (Zoom) Barbara Brooke -Reese, MIS Manager Janet Graham, Technical Writer (Zoom) III. Vote to Excuse Absent Board Member -- None IV. Approval of Minutes -- September 15, 2020 Chairman Gillette asked if there were any changes or corrections to the Minutes of September 15, 2020. No changes having been voiced by any Board member, Chairman Gillette called for a motion to approve the Minutes as presented. A motion approving the Minutes as presented was made by Officer lovino, seconded by Officer Wood, and approved unanimously via voice vote. V. Old Business A. Approval of Payments -- Ken Killgore, Plan Administrator i. Highland Capital -- July to September, Value, Growth, ADR $10,944.31 ii. Highland Capital -- July to September, Fixed Income 3,106.94 POLICE PENSION BOARD MINUTES OF REGULAR MEETING OF DECEMBER 15, 2020 iii. Boston Partners -- July to September, Fixed Income iv. Fiera Capital -- July to September V. Renaissance -- July to September vi. Brookfield Public Securities Group, July to September vii. Klausner, Kaufman, Jensen & Levinson, Sept/Oct/Nov viii. City of Sebastian, Janet Graham 9/15/2020 meeting ix. City of Sebastian, October to December X. City of Sebastian, Annual Fiduciary Liability Insurance Policy A. Salem Trust -- July to September PAGE 2 $1,821.93 1,908.87 1,701.10 434.27 3,610.00 126.00 6,000.00 2,991.00 4,025.00 Mr. Killgore reviewed these payments and asked for a motion for approval. A motion to approve the payments as listed above was made by Officer lovino, seconded by Mr. Williamson, and approved unanimously via voice vote. B. Report on Foster & Foster Cyber Liability Insurance Coverage Mr. Killgore stated that Foster & Foster sent him a notice saying that they are increasing their cyber insurance up to the $2 million level that was being asked for by this Board. VI. Public Invut -- None in Chambers or on Zoom. The public can submit questions and/or comments to the Plan Administrator's email at kkillgore@cityofsebastian.org. Mr. Killgore stated he had not received any emails from the public. VI 1. New Business A. Presentation of October 1, 2020 Actuarial Report -- Douglas Lozen, Foster & Foster Mr. Lozen reviewed the Actuarial Valuation Report as of October 1, 2020 (SEE ATTACHED). He reviewed the update on the City's funding requirements and why it changes from one year to the next and an update on its funded status. There were a couple of assumption changes, which he also reviewed. These were mandated by Florida statute. Mr. Killgore asked regarding the payroll change which in the current year added 1.7% to the City's contribution. Mr. Lozen stated it did, but at this point, now that it is down to 1.51 %, it is going to be less of an impact going forward. Mr. Lozen reviewed that the funded status for the Pension Plan is continuing to improve, and in the last year it grew from 79.6% to 81.7%. He expects this to continue to grow at POLICE PENSION BOARD PAGE 3 MINUTES OF REGULAR MEETING OF DECEMBER 15, 2020 a rate of 1 % to 2% in the future. He reviewed two new pages contained in his report, the first of which covers a history of the funded status going back to 2015. He stated that the State has its own ideas of what long-term assumption should be. They are not mandating it, but they are stating their thoughts, and it is 5.25% to 6.5%. He stated that a discussion probably needs to be had on lowering the assumption within the next couple of years. Mr. Killgore asked what assumption rate the State FRS is using now. Mr. Lozen stated it is 7%, and the City is at 7.2%. Mr. Williamson asked if this matter should be discussed now rather than putting it off. Mr. Lozen stated because he did not give the Board any notice that this would be discussed today, he opined that, because of some time constraints on his part and the fact that it will be a weighty discussion, he would like to address this matter at a future meeting. He offered to do a study for the next meeting in order to see what the 7% would look like. It was the consensus of the Board that that would be acceptable. Mr. Killgore asked what the fee would be for that study. Mr. Lozen said it would be $500.00. Mr. Williamson asked what the minimal acceptable funded ratio is. Mr. Lozen stated his main concern is what the trend is, what is the funded ratio doing from one year to the next. This Police Pension funded ratio being in the 80s is fine. Chairman Gillette called for a motion. A motion to have Mr. Lozen do a study that he will present at the next meeting was made by Officer lovino, seconded by Mr. Williamson, and approved unanimously via voice vote. Mr. Lozen then turned to the second new report, History of Asset Values, and explained that graph. There being no further questions/comments from the Board members, a motion to approve the report from Mr. Lozen was made by Mr. Williamson, seconded by Chairman Gillette, and approved unanimously via voice vote. As a point of clarification, Ms. Jensen reiterated that this Board has approved an actuarial evaluation that had an anticipated rate of return of 7.2%. The State requires an annual declaration of the Plan's expected rate of return over the short term, the midterm, and the long term thereafter. She stated it would be appropriate to make a motion to anticipate a 7.2% rate of return. That can be reconsidered next year along with the report Mr. Lozen was approved to do on the expected rate of return for purposes of the actuarial evaluation. Chairman Gillette called for a motion. A motion to approve the 7.2% anticipated rate of return was made by Ms. Ring, seconded by Mr. Williamson, and approved unanimously via voice vote. Ms. Jensen stated that information needs to be provided to the State. Mr. Killgore stated he typically does that. Mr. Williamson asked, if the Board looks at going from 7.2% to 7%, is that a big enough jump, since it is only 20 basis points. Mr. Lozen stated that this subject can be discussed when he makes the presentation at the next meeting. Mr. Killgore asked if that can be implemented to be effective with the next evaluation. Mr. Lozen stated it could. He would not be recommending revising what the Board has approved today. There being no further discussion, Mr. Lozen ended his presentation. POLICE PENSION BOARD PAGE 4 MINUTES OF REGULAR MEETING OF DECEMBER 15, 2020 B. Report from Investment Monitor/Continue Discussion on Search for International Growth and Large -Cap Growth Managers/Discussion and Action on Setting the Expected Rate of Return Mr. Scott Owens from Morgan Stanley talked about the market and the economy and what has happened, what is expected to happen, and stated he would then ask Mr. Mcllvaine to talk about some of the action items that took place since the Board's last meeting and some of the things that need to be done in order to implement some of those action items. Mr. Mcllvaine will then review the managers as well. Mr. Owens discussed the uniqueness of this past year, and how this affected the market. He reviewed that during the first quarter the market fell over 30%. There was discussion about the pandemic, there was discussion about the market shutting down, but nothing had happened in the first quarter, except for the fact that the market fell. That is because the market is a leading indicator, and the market and the economy are not on the same cycle. When the second quarter hit and the market actually shut down, the market was going through the roof, up 30+%. That happened because the Fed said it was going to provide fiscal stimulus of roughly $6 trillion to put into the economy. The market thus went up, even though the first dollar had not been paid out yet. The third quarter by historical standards is a good quarter, and the market is expecting things to be great six months to a year from now. However, if something negative happens such as a problem with the vaccine, that could have an effect on the market. There will certainly be some volatility going forward, but it should not be as much as there was in the second quarter of this year. He stated that most economists believe that with a Biden presidency, it would be more geared to a bigger stimulus. If there is a bigger stimulus, that will affect the market positively. The downside to providing that bigger stimulus is that, if the government is providing money to the economy that is not normal, that is great at that moment in time. But when that money stops, that could have a negative impact on the market. Then eventually, that money will have to be paid back in the form of reallocating assets. Mr. Owens then reviewed his report (SEE ATTACHED), which addressed small -cap and large -cap growth over the last year. He explained several pages in depth, and he then called for questions/comments from the Board. Officer Gillette asked whether the stimulus that the government provided during the pandemic will have an effect on inflation at some time in the future. Mr. Owens answered it will. Officer Gillette stated that a lot of people retire with their pension or their retirement plans in their mid-60s to late 60s, but a lot of the officers could qualify to retire in their early or mid-50s. So that retirement plan that they have could potentially have to last them 30 years or more. Right now, the cost -of -living increase on the pension plan is POLICE PENSION BOARD PAGE 5 MINUTES OF REGULAR MEETING OF DECEMBER 15, 2020 somewhere around 1 %. He questions that it might be important to bump that up because of inflation that might be coming in the future. Mr. Owens stated that is a very real concern. He further stated that inflation has been negligible for the last 10 years. It would be hard to think that the next 10 years in regard to inflation is going to look anything like the last 10 years, and he stated that future inflation is something this Board needs to be thinking about. Officer Wood suggested that the minimum wage increase will also have an effect on inflation, and Mr. Owens agreed. There being no further discussion on Mr. Owens' presentation, Mr. Mcllvaine presented information on action items that were taken between last quarter and this quarter. He reviewed that last quarter there was a review of the asset -allocation study and it was ultimately decided to bring on an infrastructure manager, which is a 5% allocation, and actually get rid of MLPs, which was also a 5% allocation. It was thus necessary to send over an updated investment policy statement, which was done. That has to be filed, but there is a 31-day waiting period before new managers can be implemented. Ms. Jensen stated that this document can be sent to Mr. Killgore for filing. Mr. Mcllvaine stated that in conjunction with that, a few letters were sent from his office: one to terminate MLPs, one to have Salem Trust purchase the Lazard Infrastructure Mutual Fund, and an additional letter to some managers that went along with the investment policy statement to rebalance. Mr. Mcllvaine stated there was an action item at the last meeting calling for searches in large -cap growth and international growth during the last quarter, and the Board decided to table those and agreed that those would be brought back if there was underperformance on the quarter. So a search was done for Highland large -cap growth, but the international growth manager, Renaissance, actually outperformed on the quarter. So Renaissance will continue to be watched. Mr. Mcllvaine stated that the portfolio did well on the quarter. It was a good quarter, 5.96% versus the policy index of 4.68%. He went through the report and explained the different pages (SEE ATTACHED). He also reviewed how the portfolio has grown since its inception. Mr. Owens asked how much of the cash is needed that is in the portfolio. Mr. Killgore stated regarding cash flow that the City makes the annual cities requirement in this quarter. Mr. Owens stated that about $50,000.00 will be left in the account, and the rest of the cash will be disbursed in equities. Mr. Mcllvaine reviewed the managers and stated a search will be done regarding Highland Capital. Regarding Boston Partners, it was a solid quarter. Fiera has had a stellar performance. They have been a great contributor to the portfolio. Renaissance POLICE PENSION BOARD PAGE 6 MINUTES OF REGULAR MEETING OF DECEMBER 15, 2020 International Growth had a good quarter, up 1.2%. Mr. Mcllvaine stated Renaissance is being watched closely, and if another bad quarter is seen, there will probably be a search performed. He stated Center Coast (MLPs) will be gotten rid of, so they will not be recorded in the next quarterly report. Intercontinental --Private Real Estate has outperformed their index and has been a good addition to the portfolio. Mr. Owens gave an in-depth review of the real estate market. Mr. Owens left the meeting at this point. In reviewing the IPS checklist, Mr. Mcllvaine related that the Plan is in compliance in each one of the sectors with the exception of a single issue, that being not to exceed 10% of the total portfolio. Actually, in the recent IPS language, a revision was made, as his company wants to give the managers the flexibility to make decisions. So the revised IPS that just came back actually has revised language that a single issue is not to exceed 5% of the total portfolio. He then reviewed each manager, their history, and information on their performance. Mr. Mcllvaine then addressed the large -cap growth situation in the portfolio. He reviewed the search that was done regarding Highland and explained how searches are done. He then called for questions/comments from the Board. Mr. Williamson asked if the Monitor has any suggestions. Mr. Mcllvaine stated that, if the goal is to mitigate risk, he would say Polen has the lowest standard deviation. They seem to protect the most. At the same time, they are the most concentrated. Officer Gillette questioned that, where all three managers are compared with the index, under Foreign Securities Highland has 10 max, Clearbridge has 10 max, Polen has 20 max. He asked if there is a reason for that and is that good or bad. Mr. Mcllvaine said he does not think it is something to be concerned about. Ms. Jensen asked if these companies use stocks that are traded on the American exchanges, and Mr. Mcllvaine said yes. Mr. Killgore asked if Highland would no longer have the large -cap growth.. Mr. Mcllvaine stated that is correct, they would no longer have the large -cap growth. Ms. Ring asked for an explanation about the 10%. If Polen has a maximum of 20%, is that allowable. Mr. Mcllvaine explained that Polen has a maximum of 20% in their portfolio, meaning they could invest up to 20% of foreign companies, but Clearbridge has a mandate up to 10% that they can invest in foreign securities, and Highland has the same mandate of up to 10%. Each company has a different strategy. Ms. Jensen added that it depends on how many securities are being held in relation to the number of securities each manager holds. POLICE PENSION BOARD PAGE 7 MINUTES OF REGULAR MEETING OF DECEMBER 15, 2020 Officer Gillette asked if fees are also considered since Highland's appear to be somewhat higher than the others. Mr. Mcllvaine stated that is correct. Mr. Killgore asked if the fees are negotiable. Mr. Mcllvaine stated that sometimes they are. Some of the managers have what is similar to "most favored nations," so if they lower the fees for one group, they have to do it across their whole portfolio, so they do not want to do that. Mr. Williamson stated his concern about the smaller number of holdings that Polen has. Following a lengthy discussion, it was the consensus of the Board that the funds now with Highland be diversified by blending half with the Russell 1000 growth index and half with the active manager Polen. Mr. Gillette called for a motion. A motion to move funds from Highland and split that portion of the portfolio, which after rebalancing is going to be 16% or so, split it 50/50 between Polen and the Russell 1000 index, was made by Officer lovino, seconded by Mr. Williamson, and approved unanimously via voice vote. Ms. Jensen reported that Salem Trust has implemented new procedures for trades. Since the rebalancing of part of this Plan's portfolio is coming up, she would encourage Mr. Mcllvaine and Mr. Killgore to be certain that the Plan in compliance with those changes. C. Report from Investment Manager -- Highland Capital Mr. Wishnia reviewed the report of Highland Capital and how the market has been affected by events of this past year (SEE ATTACHED). Basically, he agreed with the comments of Mr. Owens. He explained that one of the things Highland has done in their value portfolio is they have taken some of the larger -cap names and moved them out of the portfolio and added some names that have a smaller market cap, still staying within the index. He pointed out that the underperformance in value for the last quarter came from energy, which was down approximately 19%-20%, which was a complete reversal from the previous quarter, where energy was up approximately 20%. He stated that currently the international portfolio is performing solidly, being up about 14.15%, outperforming the index. Ms. Jensen reviewed that there was an executive order that was entered into by the President back in November which restricts U.S. citizens' ability to invest in China. So there are 31 stocks that beginning January 11th cannot be purchased by U.S. citizens. She asked that Mr. Wishnia plan for the next meeting to talk about what his thoughts are on it and how Highland is going to be dealing with that particular executive order. Mr. Wishnia said that he will do that. POLICE PENSION BOARD PAGE 8 MINUTES OF REGULAR MEETING OF DECEMBER 15, 2020 Mr. Wishnia addressed that fixed income was a solid quarter as well, over the index by 1.2%. He stated that Highland is typically neutral duration. They are anticipating at some point a rise in rates. Highland has about 42% in corporate bonds and about 45% in mortgages, which has helped the portfolio. The underper formance this fiscal year goes back to the first quarter. If you were not in treasuries in fixed income, you pretty much got crushed, and that is what happened to Highland, as they do not hold much in the way of treasuries. He called for questions or comments. Hearing no comments/questions from Board members, Mr. Wishnia also commented that, if Highland is underperforming and not doing what was expected, he does not want this Board to feel that there are any hard feelings. They want what is best for the Plan and appreciate the Pension Plan allowing Highland to hold their assets. VIII. Legal Updates A. Status of Proposed City Ordinance Amending the Plan for New IRS Rules Ms. Jensen stated her firm had been working with Manny Anon, City Attorney, to put together the IRS memorandum. The City is looking at a provision where it proposed a best practices, discretionary piece to allow the Board to incorporate IRS -required changes via policy so that it would always be in IRS compliance. The City does not like that provision. It feels it is outside of their ability to grant. She did provide the City with some information from the charter which she thought was helpful, but the City would prefer that she come back to them always and make sure that the Plan is kept in compliance. Mr. Anon is at the position where he has got to take a look at it one more time, and Ms. Jensen thinks it will be going onto the agenda at the beginning of 2021. She added that her firm has provided Mr. Killgore with the new, updated special tax notice, which incorporates the age 72 requirement provision language, which is what is being implemented through the IRS amendment. She will let the City know if there is an issue, but she thinks it will be going forward, and hopefully before the Board's next meeting it will be passed. B. Other Legal Matters Regarding upcoming conferences, she stated the conferences coming up will be virtual, and there are not any conferences that can be attended in person. She suggested that her firm along with Graystone, may be able to provide some educational pieces for the Board. If there is a particular thing anyone from the Board would like to know about from the law area, let her know, and she will put something together for the next meeting. IX. Board Member Reports and Comments -- None POLICE PENSION BOARD PAGE 9 MINUTES OF REGULAR MEETING OF DECEMBER 15, 2020 X. Plan Administrative Reports and Comments A. Notification of Intent to Enter DROP from Sergeant Steven Marcinik. Mr. Killgore stated that Patrol Sergeant Marcinik has put in for the DROP program. He has made his formal application. Mr. Killgore had gotten some initial numbers from the actuary. Mr. Killgore has to formalize those and give Sergeant Marcinik a schedule of what his future accumulation will be under the DROP. Also, Officer Greg Witt is already under the DROP program, so those are two who have taken advantage of that option. B. Review Budget Report and Annual Calendar of Board Activities Mr. Killgore stated the activities were on schedule according to what is in the Plan. Regarding the budget report, with the first quarter results in, almost $37,000.00 has been expended out of the $224,000.00. C. Other Administrative Matters -- None XI. Next Scheduled Quarterly Meetinc -- March 16, 2021 XII. Adiourn There being no further business, the meeting was adjourned by Chairman Gillette at 12:25 p.m. Date: 1g CITY OF SEBASTIAN POLICE PENSION BOARD MINUTES OF REGULAR MEETING JUNE 15, 2021 I. Call to Order -- Acting Chairman Tim Wood called the meeting to order at 10:03 a.m. II. Roll Call Present: Board Members: Ms. Andrea Ring Captain Tim Wood Detective Ken McDonough Mr. Paul Williamson Also Present: Bonni Jensen, Klausner, Kaufman, Jensen & Levinson, Attorney for the Board of Trustees Ken Killgore, Plan Administrator Cynthia Watson, Human Resources Manager Andy Mcllvaine, Morgan Stanley (Zoom) Doug Lozen, Foster & Foster Todd Wishnia, Highland Capital Joseph Perez, AV Technical Assistant Janet Graham, Technical Writer (Zoom) III. Vote to Excuse Absent Board Members Acting Chairman Wood announced that there are no absent Board members. IV. Vote to Certifv Election of Detective Ken McDonough Mr. Killgore stated that he has talked to Detective McDonough. The ballots were collected from the eligible voters, the result of which showed that Detective McDonough got the majority of the votes. Mr. Killgore stated that there needs to be a vote certifying the election results at this time. A motion certifying the election of Detective McDonough to the Police Pension Board was made by Mr. Williamson, seconded by Captain Wood, and approved unanimously via voice vote. V. Vote to Elect a Chairman Mr. Killgore reviewed that the ordinance requires this to be done every two years. Since the previous chairman resigned, there needs to be a new chairman appointed for the POLICE PENSION BOARD MINUTES OF REGULAR MEETING DATED JUNE 15, 2021 PAGE 2 next two years. Mr. Williamson nominated Captain Tim Wood as Chairman. Ms. Ring seconded the nomination. There being no further nominations, Captain Wood was elected as Chairman. VI. Vote to Elect a Secretary Ms. Jensen described the duties and responsibilities of the Secretary. Captain Wood nominated Mr. Williamson as Secretary. Ms. Ring seconded the nomination. There being no further nominations, Mr. Williamson was elected as Secretary. VII. Aooroval of Minutes: March 16. 2021 Workshop Meetinq Chairman Wood called for a motion to approve the Minutes from the March 16, 2021 workshop meeting. A motion to approve the Minutes from March 16, 2021 as presented was made by Mr. Williamson, seconded by Captain Wood, and approved unanimously via voice vote. Vi l l . Old Business Mr. Killgore reviewed the payments that have been made over the last quarter. He did have a late arrival that he has paid since compiling the Agenda, that being to Boston Partners in the amount of $4,919.61. A. Approval of Payments: i. Highland Capital -- January to March -- Fixed Income $3,341.48 ii. Highland Capital -- January to March -- Value, ADR 6,523.86 iii. Fiera Capital -- January to March 3,112.95 iv. Renaissance -- January to March 2,474.41 V. Polen Capital -- March 18, 2021- March 31, 2021 418.11 vi. Foster & Foster -- Annual State Report and Disclosures 7,075.00 vii. Klausner, Kaufman, Jensen & Levinson -- Mar/Apr/May 1,825.00 viii. City of Sebastian - Janet Graham 3-16-21 Meeting 126.00 ix. City of Sebastian -- :r'1er`�i �� Jv..� 6,000.00 x. Salem Trust -- January to March 8,865.00 Mr. Killgore reviewed these payments and asked for a motion for approval. Mr. Williamson asked if there was anything out of the ordinary on this list. Mr. Killgore stated there was not, and he reviewed some of the activity. A motion to approve the payments as listed above was made by Mr. Williamson, seconded by Captain Wood, and approved unanimously via voice vote. POLICE PENSION BOARD PAGE 3 MINUTES OF REGULAR MEETING DATED JUNE 15, 2021 B. Presentation of Study on the Anticipated Long -Term Rate of Return Mr. Lozen, Foster & Foster, explained why the capital market assumptions and inflation for the long term are reviewed. He pointed out that he is not asking for a decision regarding these items today. He reviewed the study that he delivered in March and explained those results. He then asked for comments/questions from the Board. Mr. Williamson clarified that in the Pension Plan's policy there is currently an expected rate of return of 7.2%, and other pensions like the Florida State are dropping their expected rate of return most likely to reflect the reality of the interest rate situation in the long term. So, to make sure the Pension is funded appropriately for the long term, we should probably be modeling that after what Florida State is doing and also lower our expected rate of return. Mr. Lozen stated that is a fair summary. Mr. Williamson asked if Mr. Lozen is recommending that this Pension Plan go right to 7% or do it incrementally. Mr. Lozen opined that the Pension Plan will be safe by doing a two-year phase -in. He does not expect any large decreases from the Florida Retirement System. He added that this Board should get some input from the City as well as far as budgeting, and he discussed budgeting. Mr. Killgore also stated that this does have an effect on the City's budgeting. He emphasized that the City is getting hit hard because the voters in Florida stated that we have to get to a $15.00-an-hour minimum wage, and that is over the next three years. There was an in-depth discussion regarding this matter, following which Mr. Lozen asked that the Board come to a decision on this subject by the meeting in September. He further stated that he will continue to bring this matter up to the Board in the future. Chairman Wood made a motion to decrease the amount from the 7.2% to 7.1 % for the fiscal year 2022-2023. Mr. Williamson seconded the motion. The motion was approved unanimously via voice vote. Mr. Lozen stated he will lower the percentage to 7.1 % at the next valuation, and he will plan to be here in December to go over the results, and there can be continued discussion regarding this matter going forward. IX. Public Inout There being no one in chambers who wished to speak and there being no one on Zoom who wished to speak, Chairman Wood moved to the next item on the agenda. POLICE PENSION BOARD PAGE 4 MINUTES OF REGULAR MEETING DATED JUNE 15, 2021 X. New Business A. Report From Investment Manager Mr. Mcllvaine, Morgan Stanley, stated that he agrees with everything that Mr. Lozen had reviewed. He thanked the Board for allowing him to attend via Zoom, and he plans to attend in person at the next meeting. He reviewed how the markets have reacted during the COVID-19 pandemic and how inflation will affect the economy in the future. He then reviewed and explained the Quarterly Performance Summary for the Pension Plan (SEE ATTACHED). He then called for questions/comments from the Board. There being none, Chairman Wood moved to the next item on the agenda. B. Report from Investment Manager Mr. Wishnia, Highland Capital reviewed what his company did this quarter to get the returns. The numbers look good. He went over the Pension Fund Investment Review (SEE ATTACHED), following which he called for questions/comments from the Board. Mr. Williamson inquired regarding Berkshire Hathaway. Mr. Wishnia stated they are looking at it more as a holdings company. When looking at the holdings within Berkshire, it could almost be an industrials company with what they hold. He opined that what is being looked at is more banks and companies that will react to interest rates and a reopening of businesses. He further opined that Berkshire has not performed well within the financial sector. He is uncertain as to what degree it will be reduced, as it has been the top one or two holdings for years, and they are cutting that back. Regarding International, it is kind of the same story as what is going on in the US. Markets rose on vaccine rollout, stimulus, central bank policies, etc. There was a nice quarter, up 5.5% over the index. XI. Leaal Updates A. Plan Amendment to Define Life with 10 Years of Benefits Guaranteed Ms. Jensen reviewed that during the quarter, in looking at the Pension Plan she noted that there was not a provision for the Plan's normal form. She is proposing an amendment to the Plan just to clarify that its normal form of benefit is a 10-year-certain benefit. A member gets their benefit for life, but if they die before they have received 120 payments, they can leave the remainder of those 120 payments to a beneficiary. This just describes the 10-year-certain benefit. It is the minimum benefit that is provided for under the state statute. She is proposing to provide an amendment to City Council so that it can be added to this Pension Plan. Chairman Wood called for a motion on this matter. A motion to POLICE PENSION BOARD PAGE 5 MINUTES OF REGULAR MEETING DATED JUNE 15, 2021 direct Ms. Jensen to draft the amendment to the Plan and present it to City Council was made by Ms. Ring, seconded by Chairman Wood. After added discussion, the motion was withdrawn. Mr. Killgore asked if there are other IRS changes in progress. Ms. Jensen stated she is not aware of any IRS changes that have occurred that need to be made other than the ones that have already been done. She will look at it to make certain that these are the only changes that are needed. Ms. Jensen reminded the Board that their Form 1s are due to the Supervisor of Elections by July 1st. There is a three-month grace period to September 1st before they begin to assess any penalties that are due as a result of someone not filing. She cannot give any advice about what to put on the form, but she can answer any questions that anyone has about the instructions. XII. Board Member Reports or Comments Ms. Ring stated she has sent her Form 1 in. XIII. Plan Administrator Recorts and Comments A. Sergeant Steve Marcinik Elected the Deferred Retirement Option Program (DROP) Mr. Killgore informed the Board that Sergeant Steve Marcinik has elected to go into the DROP program. The actuary did provide the numbers for this DROP. B. Budget Report, Calendar of Board Activities, and Other Administrative Matters Mr. Killgore stated he has updated all the costs through the first three quarters, including the Boston Partners invoice that was added to the payments. So far, approximately 64% of budgeted funds have been spent. He will bring any changes that the Board might need to approve to the meeting in September. He has provided a Calendar of Board Activities, and he opined that the Plan is on target for all of those. Chairman Wood asked if there was anything else the Board needs to do regarding the last meeting (workshop). Ms. Jensen stated that, if there are Minutes that needed to be approved, that should be done. That can be put on the agenda for the next meeting. Those are the Minutes from the December 15, 2020 meeting. She stated that the report POLICE PENSION BOARD PAGE 6 MINUTES OF REGULAR MEETING DATED JUNE 15, 2021 that was received from Graystone for the quarter should be approved at the next meeting. Mr. Killgore stated he will add those matters to the agenda for the next meeting. XIV. Next Scheduled Quarterly Meetina -- September 21. 2021 XV. Adiourn There being no further business, Chairman Wood adjourned the meeting at 11:13 a.m. By: Jg Date: i! h ana capital MANAGEMENT, LLC July 2, 2021 MANAGEMENT FEE: 6/30/2021 Portfolio Value: Invoice Number: 28175 SEBASTIAN POLICE OFFICERS'RETIREMENT Quarterly Fee Based On: $ 5,356,037 @ 0.50% per annutn Quarterly Fee: For the Period 411/2021 through 6/30/2021 Accoun (sebasti)1) SEBAS11AN POLICE; OFFICERS' RF11REMENT VALi1F (sebasti4) SEBASTIAN POLICE, OFFICERS' RL-.TIR.EMENT ADR 'I"otal Mailing Check: Highland Capital Management, LLC 6075 Poplar Ave, Suite 703 Memphis, TN 38119 $ 6,695.05 $ 5,356,037.09 $ 6,695.05 Paid by Debit Direct ($ 0.00) Please Remit _ _ . $ 6.695.05 Wiring Instructions: Arsnunt Value Ouarlerlv Fee $ 4,298,363.44 $ 5,372.96 S 1,057,673.65 $ 1,322.09 5,356,037.09 $ 6,695.05 Contact: sriniva.n(Zeiliiahlartdcal3.coni. *****Note new checking account number*""*"" e and Capital MANAGEMENT, LLC July 2, 2021 MANAGEMENT FEE: 6/30/2021 Portfolio Value: Quarterly Fee Based On: $ 4,539,880 @. 0.30% per annum Invoice Number: 28142 SEBASTIAN POLICE OFFICERS' RETIREMENT FIXED INCOME Quarterly Fee: For the Period 4/ 1/2021 through 6/30/2021 Mailing Check: Highland Capital Management, LLC 6075 Poplar Ave, Suite 703 Memphis; TN 38119 $ 3,404.91 $ 4,539,879.67 $ 3,404.91 Paid by Debit Direct ($ 0.00) Please Remit $ 3,404,91 Wiring Instructions: Contact: srunvanZahiablandcar.com *****Note new checking account number******* o r Ken Killgore City of Sebastian 1225 Main Street Sebastian, FL 32958 Invoice Date: 06/30/2021 Invoice Number: 20210630-690-A Billing Portfolio(s): 00844 - City of Sebastian Police Officers' Retirement System Billing Period: 04/01 /2021 to 06/30/2021 SUMMARY FOR INVESTMENT SERVICES QUARTEREND Fee Current Period Amount Due: Invoice City of Sebastian Police Officers' Retirement 20210630-690-A System Total Amount Due $ 6,376.76 Current Period Due 30-60 Days 60-90 Days Over90 Da;s Total 6,376.76 6,376.76 6.376 76 6,376.76 Please contact James Vitelli directly at 212-908-0149 with any billing inquiries. As always, you may also direct any questions to your Relationship Manager. We would appreciate receiving your payment along with the remittance slip within 30 days of recelpt of this Invoice. WIRE I TRANSFER FUNDS TO: JP Morgan Chase; ABA #021000021; ACCT #066-654610 REFERENCE: Boston Partners Ref Acct #: 00844 MAIL REMITTANCES TO: Accounts Receivable Boston Partners One Grand Central Place, 60 East 42nd Street, Suite 1550 New York, NY 10165 Email jvitelli@boston-partners.com Thank You ILICk 711412021 Ken Killgore 1225 Main Street Sebastian, FL 32958 City of Sebastian Police Officer's Retirement System - 0740001516 FIERA CAPITAL INC. SUMMARY OF MANAGEMENT FEES For The Period April 1st to June 30th, 2021 Portfolio Value as of 06-30-21 $ 1,739,898.96 1,739,899 @ 0.75 % per annum 3,262.31 Quarterly Management Fee $ 3,262.31 TOTAL DUE AND PAYABLE $ 3,262.31 3,a6a��l As per SEC Rule 206(4)-2, we urge you to compare this report with your custodian statements. It is the client's responsibility to verify the accuracy of the computation. The custodian will not do an independent verification of the accuracy of the computation of fees. ACH Instructions: BMO Harris Bank III West Monroe Chicago, IL 60603 ABA Number: 071000288 Swift Code: HATRUS44 Account Name: Fiera Capital Inc. Account Number: 2553816 To pay by check: Payable to Fiera Capital Inc. Attn: Myron Charas 10050 Innovation Dr, Suite 120 Dayton, OH 45342 Billing inquiries should be directed to: Myron Charas and BillingFCI@fieracapital.com 937-388-1437 enneth Killgore REMITTANCE COPY NA July 8, 2021 STATEMENT OF MANAGEMENT FEES Quarterly Fee calculated for assets under management as of June 30, 2021 for the billing period from April 1, 2021 to June 30, 2021. Custodian Account Number: 0740007216 Account Number: CITY0162 Account Name: CITY OF SEBASTIAN POLICE OFFICERS RETIREMENT SYSTEM Management Fee Calculation Detail Total Portfolio: Breakpoints Balance Annual Rate (%) 0.650 Account Assets $1,874,535 Fee $3,037.77 Please remit the total fee amount to Polen Capital at the address indicated below. Payment for this invoice can be sent via mail or wire: By Mail Overnight Address By Wire SunTrust Bank Check payable to: EIS Lockbox/Cust Svc 1000 Peachtree St., N.E., Atlanta, GA Polen Capital Management Attn: Polen Capital Management LLC #919766 ABA: 061 000 104 P.O. Box 919766 2290 Premier Row Account Name: Polen Capital Management Orlando, FL 32891-9766 Orlando, FL 32809 LLC Account #: 1000214295577 rr,o��� " '"" 7" vS' � SEC RULE 204.3 REQUIRES US TO OFFER IN WRITING TO DELIVER TO YOU UPON REQUEST A WRITTEN DISCLOSURE STATEMENT CONTAINING INFORMATION CONCERNING OUR BACKGROUND AND BUSINESS PRACTICES. Keep a copy of this invoice for tax purposes polencopital.com Boca Rciton I Goston I I._cndon 1625 NW CarporaLe Blvd- Suite 300 - Boca Rayon, FL 33431 Telephere: +1 (561)-241-242c ay 26, 2021 '111111111NJIIII1111111111'111111111111'�1�1"'I�1111 000005 MSHS9FA1 000000 745 070 CITY OF SEBASTIAN POLICE ATTN: KENNETH KILLGORE 1225 MAIN ST. SEBASTIAN FL 32958 Graystone Consulting - A business of Morgan Stanley Invoice Number: 10129921146 OWENS/WHEELER/PALMER Financial Advisor 813-227-2061 www.morganstanley.com IMPORTANT NOTICE INVESTMENT ADVISORY FEE PAYMENT REQUIRED ACTION REQUIRED — PLEASE REMIT PAYMENT IN THE ENCLOSED BUSINESS REPLY ENVELOPE We value you as a client and thank you for the opportunity to serve your investment needs. Please see below for the investment advisory fee(s) due. ACCOUNT CLIENT NAME 745-038962 CITY OF SEBASTIAN POLICE Tota I Fee: Prior Balance: Net Amount: For additional details please see Invoice Detail and Remittance Instructions on pages to follow. u Investments and services offered through Morgan Stanley Smitb Barney LLC. Member SIAC. Graystone Consulting is a business of Morgan Stanley TOTAL FEE AMOUNT $3,375.00 $3,375.00 $0.00 $3,375.00 lof5 8 000005 MSHS9FA1 000013 DVISORY INVOICE DETAILS Account. 745-038962 Billing Period Number of Days Hard Dollar Fee Fee Amount Graystone Consulting - A business of Morgan Stanley Invoice Number: 10129921146 01/01/2021 — 03/31/2021 90 Investments and services offered tbrougb Morgan Stanley Smitb Barney LLC. Member SIPC. Graystone Consulting is a business of Morgan Stanley. $13, 500.00 $3,375.00 3of5 000005 MSHS9FA1 000014 EMITTANCE INSTRUCTIONS Graystone Consulting - A business of Morgan Stanley Invoice Number: 10129921146 Payment Due: 6/25/2021 Please return payment using this page and include it with your check in the enclosed business reply envelope. Please note that cash payments cannot be accepted — wire and check information are below. If you have any questions, please contact your Financial Advisor. Account 745-038962 Total Fee: Prior Balance: Net Amount: Total Fee Amount $3,375.00 $3,375.00 $0.00 $3,375.00 By Wire Bank Name: Citibank, New York ABA:021000089 For Benefit Of Morgan Stanley & Co. Incorporated Beneficiary Account: 40611172 For Further Credit to: 980000163 Ref: Invoice 0101299 By Check Morgan Stanley Global Banking Operations ATTN: Advisory Fee Billing 1300 Thames Street Wharf, 4th Floor Baltimore, MD 21231-9907 Ref: Invoice 10129921146 Investments and services offered tbrougb Morgan Stanley Smitb Barney LLC, Member SIPC. Graystone Consulting is a business of Morgan Stanley 5of5 000005 MSHS9FA1 000015 E ugust 10, 2021 000012 MSHS90A1 000000 745 070 CITY OF SEBASTIAN POLICE ATTN: KENNETH KILLGORE 1225 MAIN ST. SEBASTIAN FL 32958 Graystone Consulting - A business of Morgan Stanley Invoice Number: 10129921222 OWENS/WHEELER/PALMER Financial Advisor 813-227-2061 www.morganstanley.com IMPORTANT NOTICE INVESTMENT ADVISORY FEE PAYMENT REQUIRED ACTION REQUIRED — PLEASE REMIT PAYMENT IN THE ENCLOSED BUSINESS REPLY ENVELOPE We value you as a client and thank you for the opportunity to serve your investment needs. Please see below for the investment advisory fee(s) due. ACCOUNT CLIENT NAME 745-038962 CITY OF SEBASTIAN POLICE Total Fee: Prior Balance: Net Amount: For additional details please see Invoice Detail and Remittance Instructions on pages to follow Investments and services offered tbrougb Morgan Stanley Smith Barney LLC. Member SIPC. INN Graystone Consulting is a business of Morgan Stanley. TOTAL FEE AMOUNT $3,375.00 $3,375.00 $3,375.00 $6,750.00 1of5 S 000012 MSH890Al 000034 .1 ADVISORY INVOICE DETAILS Account: 745-038962 Billing Period Number of Days Hard Dollar Fee Fee Amount Graystone Consulting - A business of Morgan Stanley Invoice Number: 10129921222 04/01/2021 — 06/30/2021 Investments and services offered through Morgan Stanley Smith Barney LLC. Member SIPC. Graystone Consulting is a business of Morgan Stanley, 91 $13, 500.00 $3,375.00 3of5 i 000012 MSHS90A1 000035 EMITTANCE INSTRUCTIONS Graystone Consulting - A business of Morgan Stanley Invoice Number: 10129921222 Payment Due: 9/9/2021 Please return payment using this page and include it with your check in the enclosed business reply envelope. Please note that cash payments cannot be accepted — wire and check information are below. If you have any questions, please contact your Financial Advisor. Account 745-038962 Total Fee: Prior Balance: Net Amount: Total Fee Amount $3,375.00 $3,375.00 $3,375.00 $6,750.00 By Wire Bank Name: Citibank, New York ABA:021000089 For Benefit Of Morgan Stanley & Co. Incorporated Beneficiary Account: 40611172 For Further Credit to: 980000163 Ref: Invoice 0101299 By Check Morgan Stanley Global Banking Operations ATTN: Advisory Fee Billing 1300 Thames Street Wharf, 4th Floor Baltimore, MD 21231-9907 Ref: Invoice 10129921222 I t ' . Investments and services offered through Morgan Stanley Smitb Barney LLC. Member SIPC. 11 Graystone Consulting is a business of Morgan Stanley. 5of5 000012 MSHS90A1 000036 E lausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 7080 N.W. 4th Street Plantation, Florida 33317 Tel. (954) 916-1202 www.klausnerkaufman.com Fax (954) 916-1232 Tax I.D.: 45-4083636 SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM July 31, 2021 Attn: KEN KILLGORE Bill # 28890 1225 MAIN STREET SEBASTIAN, FL 32958 CLIENT: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM :170042 MATTER: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM :170042 Professional Fees Date Attorney Description Hours Amount 07/08/21 BSJ EMAIL NEW TRUSTEE PACKET TO KEN 0.50 212.50 MCDONOUGH 07/14/21 BSJ NEW TRUSTEE EMAIL TO ANDREA RING 0.50 212.50 Total for Services 1.00 $425.00 CURRENT BILL TOTAL AMOUNT DUE $ 425.00 Past Due Balance 1,972.50 AMOUNT DUE $2,397.50 -I-? 7 5 r� lausner, Kaufinan, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 7080 N.W. 4th Street Plantation, Florida 33317 Tel. (954) 916-1202 www.kiausnerkaufman.com Fax (954) 916-1232 Tax I.D.: 45-4083636 SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM June 30, 2021 Attn: KEN KILLGORE Bill # 28708 1225 MAIN STREET SEBASTIAN, FL 32958 CLIENT: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM :170042 MATTER: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM :170042 Professional Fees Date Attorney Description Hours Amount 06/11/21 PARA REVIEW OF 6/9 EMAIL FROM KEN 0.50 62.50 KILLGORE ENCLOSING JUNE 15 2021 AGENDA PACKAGE; REVIEW AGENDA PACKAGE; REVIEW FILE; UPDATE QUARTERLY REPORTS IN FILE AND BASECAMP 06/14/21 BSJ PREPARE FOR MEETING; REVIEW 0.50 212.50 AGENDAAND MEETING BACK UP INCLUDING MINUTES 06/15/21 BSJ TRAVEL TO AND FROM MEETING ( 2.00 425.00 SHARED WITH PSL POLICE) 06/15/21 BSJ ATTEND MEETING 1.50 637.50 06/15/21 PARA PREPARATION OF MEETING MATERIAL 1.00 125.00 FOR UPCOMING MEETING. 06/16/21 CW REVIEW PLAN DOCUMENT AND DRAFT 1.00 425.00 NEW TRUSTEE HANDBOOK. 06/17/21 CW FINALIZE NEW TRUSTEE HANDBOOK 0.20 85.00 AND GATHER PLAN DOC AND FORM 1. Total for Services 6.70 $1,972.60 Continued .. . lausner, Kaufinan, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 7080 N.W. 4th Street Plantation, Florida 33317 Tel. (954) 916-1202 www.kiausnerkauftnan.com Fax (954) 916-1232 Tax I.D.: 45-4083636 SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM August 31, 2021 Attn: KEN KILLGORE Bill # 29071 1225 MAIN STREET SEBASTIAN, FL 32958 CLIENT: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM :170042 MATTER: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM :170042 Professional Fees Date Attorney Description Hours Amount 08/16/21 BSJ REVIEW STATE MONEY DISTRIBUTION 0.20 85.00 AMOUNTS; COMPARE WITH LAST YEAR; EMAIL TRUSTEES 08/31/21 BSJ TELEPHONE CALL WITH JOHN 0.10 42.50 GRIMMICH (LIM) Total for Services 0.30 $127.50 CURRENT BILL TOTAL AMOUNT DUE $ 127.50 Past Due Balance AMOUNT DUE M M $127.50 INVOICE 6-15-21 JANET M, GRAHAM 97 OVERLOOK- DRIVE SEBASTIAN, FL 32976 JUNE 17, 2021 POI1ce Pension Board 6 pages $108.00 ,*- k6J7-' 4,C YP-4��C*r CROF SE LAS HOME OF PELICAN ISLAND City of Sebastian 1225 Main Street Sebastian, Florida 32958 INVOICE TO: Sebastian Police Pension Trust Fund 1225 Main Street Sebastian, FL 32958 DESCRIPTION INVOICE: Date: Amount: Agreement With City of Sebastian Dated June 14, 2017 for Plan Administrator Services for July, August and September 2021. PAYMENT DUE UPON RECEIPT. PLEASE RETURN COPY OF INVOICE WITH PAYMENT THANK YOU. TOTAL AMOUNT DUE Remit To: City of Sebastian - Attention Ken Killgore 1225 Main Street Sebastian, Florida 32958 Account Code 001501-349620 8/5/2021 $6,000.00 AMOUNT DUE $6,000.00 $6,000.00 CITY OF SEBASTIAN, FLORIDA POLICE PENSION FUND - 2020/2021 BUDGET As of September 14, 2021 Proposed Amended Total Previous Year's Annual Totals 2021/2022 2020/2021 Actual/Estimated 2020/2021 Payments 2020/2021 2019/2020 2018/2019 2017/2018 2016/2017 2015/2016 Annual OperatinE Expenses Budget Budget 10/1-12/31 1 1- 3 31 4 1- 6 30 7 1- 9 30 Actual Est. Actual Actual Actual Actual Actual Investment Managers: Highland Capital $ 47,000 $ 55,000 $ 14,051.25 $ 11,346.84 $ 9,865.34 $ 10,099.96 $ 45,363.39 $ 52,688.82 $ 34,621.51 $ 67,754.39 $ 60,479.85 $ 42,352.99 Boston Parners 17,500 8,000 1,821.93 2,448.37 4,919.61 6,376.76 15,566.67 7,553.21 6,885.81 6,763.47 Fiera Capital (APEX) 13,000 6,500 1,908.87 2,969.75 3,112.95 3,262.31 11,253.88 6,056.53 5,943.76 5,386.84 Renaissance 11,000 7,000 1,701.10 2,445.13 2,474.71 2,568.82 9,189.76 6,489.11 6,874.16 6,451.11 Center Coast (Brookfield) - 3,000 434.27 537.98 Terminated 972.25 2,427.00 3,11351 2,909.69 Intercontinental - = Polen Capital (from March 18, 2021) 14,000 - 418.11 3,037.77 3,455.88 Performance Manager- Graystone 13,500 13,500 6,750.00 6,750.00 13,500.00 13,500.00 13,500.00 13,500.00 13,500.00 13,500.00 Salem Trust Company 30,000 26,000 4,025.00 7,470.00 8,865.00 7,510.00 27,870.00 24,655.00 26,480.00 28,250.00 7,245.00 6,265.00 ADR Agent Fee - Foreign Dividends - 1,500 - 1,140.85 1,643.74 581.24 451.80 Sub -total Investment Expense $ 246,000 $ 220,500 $ 23,942.42 $ 33,968.07 $ 29,655.72 $ 39,60S.62 $ 127,171.83 $ 113,369.67 $ 98,559.60 $132,659.24 $ 81,806.09 $ 62,569.79 Actuarial - Foster & Foster 15,000 18,000 14,415.00 575.00 14,990.00 17,464.00 16,756.00 17,834.00 13,331.00 14,765.00 Compliance Disclosures - Foster & Foster 3,500 - 3,500.00 3,500.00 7,500.00 - - _ _ State Reports Preparation - Foster $ Foster 3,000 3,000 j 3,000.00 3,000.00 3,000.00 3,000.00 - Legal Services 30,000 40,000 3,610.00 7,582.50 1,825.00 2,525.00 15,542.50 19,565.00 39,362.45 25,138.80 29,011.01 18,294.60 Administrative Fee to City 24,000 24,000 6,000.00 1,000,00 6,1100.00 6,000.00 24,000.00 24,000.00 24,000.00 24,000.00 Insurance 3,500 2,600 2,991.00 2,991.00 2,585.00 2,585.00 2,585.00 3,021.05 3,121.05 Miscellaneous: - - Minutes Preparation 1,000 1,000 126.00 162.00 126.00 108.00 522.00 636.00 694.00 1,042.00 Codification of Approved Ordinance(s) 600 600 Functional Capacity Assessments - - - - - 598.20 2,700.00 1,344.00 Travel - Contingency 15,000 15,000 _ 695.50 Sub -total Administrative Expense $ 95,600 $ 104,200 $ 12,727.00 $ 28,159.50 $ 15,026.00 $ 8,633.00 $ $ 74,750.00 $ 89,097.45 $ 72,542.00 45,363.06 $ 36,876.15 Total Operating Expenses ` $ 241,600 $ 224,700 $ 36,669.42 $ 62,127.57 $ 44,681.72 $ 48,238.62 :4,545.50 $ 191,717.33 $ 188,119.67 $ 187,657.05 $ 205,201.24 127,169.15 $ 99,445.94 Client Memorandum To: All Pension Plans From: Klausner, Kaufman, Jensen & Levinson Date: September 2021 Re: Federal and State COVID Benefits forPublic Safety Officers The coronavirus disease 2019 (COVID-19) has hitthe homes and hearts of nearly every American since mid -March 2020. Although some states have taken precautions to slow the spread of the disease, public safety officers have, and continue to provide, an essential service during this pandemic. Police officers and firefighters are contracting COVID-19 at a higher rate than the general public as a result of the essential services they provide ou r commu n ities. On August 14, 2020, "Safeguarding America's First Responders Act of 2020" (the "Act') was signed into law. This law provides presumptive line -of -duty death and disability benefits to qualifying police officers and firefighters. For the purposes of death and disability benefits, this law creates a general presumption that a public safety officer who dies from COVID-19 or related complications sustains a personal injury in the line- of-d u ty. Under the Act, a qualifying public safety officer who dies or who becomes permanently and totally disabled due to COVID-19 (or from complications thereof) in 2020-2021 is entitled to a presumptive benefit under the Public Safety Officer Benefits (PSOB) program. To qualify for federal benefits, a public safety officer must meet the following fourcriteria for line -of -duty death. • No competent medical evidence exists that the officer's death was directly and proximately caused by something otherthan COVID-19; Client Memorandum Re: Safeguarding America's First Responders Act of 2020- Presumptive Benefit for COVID-19 Becomes Law Page 2 • The public safety officer was engaged in a line -of -duty action or activity between January 1, 2020, and December 31, 2021; The public safety officer received a diagnosis of COVID-19 (or evidence indicates that the officer had COVID-19) during the 45-day period beginning on his or her last day of duty; and Evidence indicates that the public safety officer had COVID-19 (or complications therefrom) at the time of his or herdeath. There is also a presumption for eligibility for line -of -duty disability related to COVID-19 or complications from COVID 19. To qualify for federal benefits, a public safety officer must meet the following two criteria for line -of -duty disability: • The public safety officer was engaged in a line -of -duty action or activity between January 1, 2020, and December 31, 2021; and The pu bl ic safety officer received a diagnosis of COVID-19 (or evidence indicates that the officer had COVID-19) during the 45-day period beginning on his or her last day of duty We are all painfully aware that ou r pu blic safety officers work in a dangerou s profession; times are not getting any easier. This newly recognized federal death and disability benefit is intended to provide extra support to the families of our nation's essential public safety officers. Please contact our office if your retirement plan members need assistance filing a claim for PSOB benefits. KLAUSNER KAUFMAN JENSE f. LrVINSO ►1Idt►1[e7:;W=\0TI19lJ1 TO: Board of Trustees FROM: Bonni S. Jensen Anna K. Parish RE: Federal, State, and Local Death Benefits DATE: September 2021 As we are all painfully aware, first responders work in a dangerous profession. This memo provides a summary of the federal, state, and local benefits that are provided to support the families of first responders killed in the line of duty. Federal Public Safety Officer Benefits (PSOB) The PSOB Program provides death benefits in the form of a one-time lump sum payment to eligible survivors of public safety officers whose deaths are the direct and proximate result of a traumatic injury sustained in the line of duty. For deaths occurring on or after October 1, 2020, the PSOB benefit is approximately $370,000. Certain educational benefits are also available for eligible survivors if they meet a very fact specific set of criteria. The application process for these benefits is lengthy and requires the submission of a number of documents as well as personal information. The application and review process can span many months. These benefits can be applied for at www.r)sob.aov Additionally, the federal government offers the Public Safety Officers' Education Assistance (PSOEA) Program. This program provides financial assistance for the spouses and eligible children of local police, fire, and emergency public safety officers who have been killed or permanently disabled in the line of duty seeking higher education. The PSOEA benefit is available after the PSOB death or disability claim has been approved. 00196232.WPD;1 7080 NORTI-Iwr-sT 4TH STREET. PLANTATION, FLORIDA 33317 PHONE. (954) 91 G-1'U2 • FAX: (954) 916-1232 www.kiausnei-kaufman.coni Federal, State, and Local Death Benefits Page 2 State of Florida Death Benefits 1. Lump Sum Section112.19(2) & Section 112.191(2), Florida Statutes The following benefit(s) is payable to the first responder's named beneficiary for their life: a. $75,000 if the death is accidental. b. $150,000 if: (i) the death is accidental and the officer was in 'Yresh pursuit" or responding to an emergency; or (ii) the death is accidental and the firefighter was responding to an emergency involving the protection of life or property, or participation in a training exercise. C. $225,000 if unlawfully and intentionally killed. Effective July 1, 2019, twenty-one forms of cancer are presumed to be job related for firefighters under §112.1816, Fla. Stat. As a result of this amendment, the eligible firefighter's beneficiary is entitled to a $75,000 accidental death benefit, payable as a lump sum by the employing agency. Employers are solely responsible for paying the cost of benefits under §112.1816, but are permitted to purchase an insurance policy to cover some or all of these statutory benefits. Lump sum death benefits were lower prior to July 1, 2019, but were subject to adjustment based on the cost of living. Effective July 1, 2019, the higher lump sum death benefit is no longer subject to adjustment for inflation. 2. Funeral Benefits (Police Only) Section 112.19(f), Florida Statutes The following benefit(s) are payable if a law enforcement, correctional or correctional probation officer is killed in the line of duty while engaged in the performance of law enforcement duties or as the result of an assault under riot conditions: 1. $1,000 toward the funeral expenses of the decreased officer. 2. Up to $5,000 may be paid by the officer's employing agency toward 00156232.WP0;1 Federal, State, and Local Death Benefits Page 3 venue expenses associated with the funeral and burial of the officer. 3. Health Insurance Section 112.19(2)(g) & Section 112.191(f), Florida Statutes Any political subdivision of the state that employs a full-time law enforcement officer, corrections officer, or firefighter who is killed in the line of duty on after July 1, 1993, as a result of: (i) an act of violence inflicted by another person while the officer is engaged in the performance of law enforcement duties, or as a result of an assault against the officer under riot conditions; or (ii) an act of violence inflicted by another person while the firefighter is engaged in the performance of firefighter duties, or as a result of a fire which has been determined to have been caused by an act of arson, or as a result of an assault of the firefighter under riot conditions shall pay the entire health insurance premium for the employee's surviving spouse, until they remarry, and for each dependent child of the employee until the child reaches the age of majority or until the end of the calendar year in which the child turns 25 if. at the time of the employee's death, the child is dependent upon the employee for support; and the surviving child continues to be dependent for support, of the surviving child is a full-time or part-time student and is dependent for support. 4. Educational Benefits Section 112.19(3) & Section 112.191(3), Florida Statutes Benefits provide for waiver of certain educational expenses that the surviving spouse or child of the deceased first responder would incur while obtaining a career certificate, undergraduate or post graduate degree from a Florida public college or university. This benefit applies to first responders who were accidentally killed on or after June 22,1990 or unlawfully and intentionally killed on or after July 1,1980. Benefits under this section will continue until the child reaches age 25. Benefits for a surviving spouse must commence within 5 years after the death occurs, and the opportunity will remain available until the 101' anniversary of the death. 00196232.WP8;1 Federal, State, and Local Death Benefits Page 4 5. Pre -filed State Legislation HB 53 was filed on August 27, 2021. This bill proposes to extend the communicable disease provision to include a line of duty presumption for COVID 19 or an infectious disease (a condition or impairment of health caused by a disease that has been declared a public health emergency). (d) In the case of COVID-19, in the 14 days immediately preceding diagnosis he or she was not exposed, outside the scope of his or her employment, to any person known to have COVID-19. (e) In the case of an infectious disease, he or she contracted the infectious disease during a public health emergency declared in accordance with s. 381.00315 and was not exposed, outside of the scope of his or her employment, to any person known to have the infectious disease. Like the other communicable diseases in that section of the law, in order to be entitled to the presumption, the emergency rescue or public safety officer must take an available "vaccine, immunization, or prophylaxis" as "established by the Advisory Committee on Immunization Practices of the United States Public Health Service and if the vaccine, immunization, or prophylaxis has been approved by the United States Food and Drug Administration." Workers Compmnsation�en�fits Section 440.16, Florida Statutes Workers' Compensation Benefits are payable to law enforcement officers, firefighters, emergency medical technicians and paramedics who die while acting in the line of duty or as the result of an accident occurring in the line of duty. Benefits are payable if death results from the accident within 1 year or follows continuous disability and results in death within 5 years of the accident. Under this section, the following amounts shall be paid: a. Within 14 days of receiving a bill, the cost of actual funeral expenses not to exceed $7,500.00. b. Compensation not to exceed $150,000 or 66 2/3% of average wage payable to the following order of preference: 1) To the spouse, if no child, 50% of average weekly wage until the spouse's death. 00196232.wPD;1 2) To the spouse, if there is a child, compensation under (1), plus an Federal, State, and Local Death Benefits Page 5 additional 16 2/3%. 3) To the child(ren), if no spouse, 33 1/3% for each child to age 18 or remarriage. 4) To the parents, 25% each, during continuance of dependency. 5) To siblings and grandchildren, 15% for each brother, sister, or grandchild. C. Full waiver of Postsecondary student fees for instruction at any career center for up to 1,800 classroom hours or payment of student fees at any community college for up to 80 semester hours. The benefits are in addition to other benefits provided and shall terminate 7 years after the death of the deceased employee, or when the total payment in eligible compensation under paragraph b has been received. NOTE: Under Worker's Compensation Law, COVID claims are extremely difficult to prove. Absent a presumptive disease statute like that proposed, public safety officers are unlikely to be granted Workers' Compensation benefits. There was a state employee presumption regarding COVID, but it expired with the expiration of the declaration of emergency in Florida due to COVID in June of 2021. Pension Plan Benefits Please be sure to look at your local pension plan to determine the death benefits available from your jurisdiction's pension plan. 00186232MM I TATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES REMITTANCE ADVICE FLAIR ACCOUNT CODE OLD 1 SITE � DOCUMENT NUMBER 72-202532002-72750300-00-31009500 1720.00. 00 D2000069744 SEBASTIAN, CITY OF POLICE PENSION FUND 1225 MAIN ST SEBASTIAN FL-32958 OBJECT DATE PAYMENT 7100 08/17022438 PAYMENT AMOUNT $ 206,017.47 PLEASE DIRECT QUESTIONS TO: (890) 488-3053, DEPARTMENT OF MANAGEMENT SERVICES VENDORS NOW CAN VIEW PAYMENT INFORMATION AT HTTP://FLAIRiDBF.STATE.FL.US INVOICE NUMBER AMOUNT --------- ------------ POLICE $ 206,017.47 06 1 so I. 33520 0 2026 -(;ff h S'hare f 0 Pengiom - -- ----- DETACH CAREFULLY AND RETAIN FOR YOUR RECORDS BEFORE CASHING . . . .. ..... .. ... .......... .. OR DEPOSITING THE WARRANT AGENCY DOCUMENT NO V000945 FLAIR ACCOUNT 3F 5 CODE 1- • i:0W0N "OBJECT DATE WARRANT NO 72 -20293.20M -7215630.01-00-3 10109 3 00' 56-1544 .8 24-0224385-0 T4 -i OLD 720000 SITE 400 CONTACT VOID. AFTER 12 MONTHS t I Jf R -33.716 760 STAGE ollp", FT,Ln .7 0 DA' 4 _:S _PIMA NAL�� SERVICES DEPARTMENT OF!, ARTME T AMOUNT TWO -HUNDRED-SIX-THOUSAND-SEVENTE.-EN A 41 7� WARf2ANT PAY TO THE SEBASTIAN, CITY OF ORDER OF TO' DIVISION OF TREASURY POLICE PENSION FUND L3 AILLAtIASSEE I X, 122$ MAIN ST SEBASTIAN FL 32958 MY 4. II■ 240 2 24 313 SOom 1:044 & I SLA 31: 39 2793 13 rjis CITY OF SEBASTIAN, FLORIDA POLICE PENSION FUND - 2020/2021 BUDGET As of September 14, 2021 Amended Total 2020/2021 Actual/Estimated 2020/2021 Payments 2020/2021 Annual Operating Expenses Budget 10/1- 12/31 1 1- 3 31 4/1-6/3 7 1- 9 30 Actual Est. Investment Managers: Highland Capital $ 55,000 $ 14,051.25 $ 11,346.84 $ 9,865.34 $ 10,099.96 $ 45,363.39 Boston Parners 8,000 1,821.93 2,448.37 4,919.61 6,376.76 15,566.67 Fiera Capital (APEX) 6,500 1,908.87 2,969.75 3,112.95 3,262.31 11,253.88 Renaissance 7,000 1,701.10 2,445.13 2,474.71 2,568.82 9,189.76 Center Coast (Brookfield) 3,000 434.27 537.98 Terminated 972.25 Intercontinental - - _ _ Polen Capital (from March 18, 2021) - 418.11 3,037.77 3,455.88 Performance Manager -Graystone 13,500 - 6,750.00 6,750.00 13,500.00 Salem Trust Company 26,000 4,025.00 7,470.00 8,865.00 7,510.00 27,870.00 ADR Agent Fee - Foreign Dividends 1,500 - Sub -total Investment Expense $ 120,500 $ 23,942.42 $ 33,968.07 $ 29,655.72 $ 39,605.62 $ 127,171.83 Previous Year's Annual Totals 2019/2020 2018/2019 2017/2018 2016/2017 2015/2016 2014/2015 2013/2014 Actual Actual Actual Actual Actual Actual Actual $ 52,688.82 $ 34,621.51 $ 67,754.39 $ 60,479.85 $ 42,352.99 $ 64,402.32 $ 58,710.23 7,553.21 6,885.81 6,763.47 - - _ _ 6,056.53 5,943.76 5,386.84 6,489.11 6,874.16 6,451.11 2,427.00 3,113.51 2,909.69 13, 500.00 13, 500.00 13, 500.00 13, 500.00 13, 500.00 16,875.00 15,000.00 24,655.00 26,480.00 28,250.00 7,245.00 6,265.00 6,615.00 5,295.00 1,140.85 1,643.74 581.24 451.80 141.44 186.69 $ 113,369.67 $ 98,559.60 $ 132,659.24 $ 81,806.09 $ 62,569.79 $ 88,033.76 $ 79,191.92 Actuarial - Foster & Foster 18,000 14,415.00 575.00 14,990.00 17,464.00 16,756.00 17,834.00 Compliance Disclosures - Foster & Foster - 3,500.00 3,500.00 7,500.00 - State Reports Preparation - Foster $ Foster 3,000 3,000.00 3,000.00 3,000.00 3,000.00 - Legal Services 40,000 3,610.00 7,582.50 1,825.00 2,525.00 15,542.50 19,565.00 39,362.45 25,138.80 Administrative Fee to City 24,000 6,000.00 6,000.00 6,000.00 6,000.00 24,000.00 24,000.00 24,000.00 24,000.00 Insurance 2,600 2,991.00 2,991.00 2,585.00 2,585.00 2,585.00 Miscellaneous: Minutes Preparation 1,000 126.00 162.00 126.00 108.00 522.00 636.00 694.00 1,042.00 Codification of Approved Ordinance(s) 600 - - - 598.20 Functional Capacity Assessments - 2,700.00 1,344.00 Travel _ Contingency 15,000 _ _ - Sub -total Administrative Expense $ 104,200 $ 12,727.00 $ 28,159.50 $ 15,026.00 $ 9,633.00 $ 64,545.50 $ 74,750.00 $ 89,097.45 $ 72,542.00 Total Operating Expenses $ 224,700 $ 36,669.42 $ 62,127.57 $ 44,681.72 $ 48,238.62 $ 191,717.33 $ 188,119.67 $ 187,657.05 $ 205,201.24 13,331.00 14,765.00 21,398.00 15,544.00 29,011.01 18,294.60 17,189.16 7,623.64 3,021.05 3,121.05 3,121.05 3,000.00 1,222.07 1,646.76 695.50 101.90 45,363.06 $ 36,876.15 $ 43,032.18 $ 27,814.40 127,169.15 $ 99,445.94 $ 131,065.94 $ 107,006.32 CITY OF SEBASTIAN POLICE OFFICERS' PENSION PLAN CALENDAR OF BOARD ACTIVITIES — Updated December 2020 JANUARY: No Board activity. FEBRUARY: No Board activity. MARCH: 15` Quarter Board Meeting: • Update and Review Calendar of Activities. • Request update of Summary Plan Description (every two years). • Investment Report and Performance Review. • Receive Annual Report to Division of Retirement. APRIL: No Board activity. MAY: No Board activity. JUNE: 2"d Quarter Board Meeting: • Review Calendar of Board Activities. • Investment Report and Performance Review. • Select Board Chairperson and Secretary (every two years). • Approve and Distribute to Members the Summary Plan Description (if needed). JULY: Board Members should file Financial Disclosure forms by Julylst. AUGUST: Receive State premium tax monies. SEPTEMBER: • 3`d Quarter Board Meeting: • Establish Quarterly Meeting dates for following year. • Review Calendar of Board Activities • Approve Election Process for Police Officer Members (if needed). • Select Board appointed Member and request City Council confirmation (if needed). • Investment Report and Performance Review. • Report on year-to-date expenses and approve budget for the next year. OCTOBER: No Board activity. NOVEMBER: No Board activity. DECEMBER: • 4th Quarter Board Meeting: • Review Calendar of Board Activities. • Consider changes to Operating Rules (if needed). • Report on Actual Operating Expenses for the year. • Investment Report and Performance Review. • Update Investment Policy and Allocation Strategy. • Accept the Actuarial Report. • Approve Expected Rate of Return. • Confirm renewal of Liability Insurance Policy. Page 1 of 1