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HomeMy WebLinkAbout12-14-2021 MinutesCITY OF SEBASTIAN POLICE PENSION BOARD MINUTES OF REGULAR MEETING DECEMBER 14, 2021 Call to Order -- Chairman Tim Wood called the meeting to order at 5:00 p.m. II. Roll Call Present: Board Members: Captain Tim Wood Mr. Williamson Ms. Ring Detective McDonough Mr. Puscher Also Present: Bonni Jensen, Klausner, Kaufman, Jensen & Levinson, Attorney for the Board of Trustees Ken Kiligore, Plan Administrator Andy Mcllvaine, Morgan Stanley Steve Stack, Highland Capital Joseph Perez, AV Technical Assistant Janet Graham, Technical Writer III. Vote to Excuse Absent Board Members Chairman Wood announced that there are no absent Board members. IV. Aooroval of Minutes A. September 21, 2021 Regular Quarterly Meeting A motion approving the Minutes of September 21, 2021 as presented was made by Mr. Williamson, seconded by Captain Wood, and approved unanimously via voice vote. B. October 29, 2021 Affirmation of Elected Member Meeting Start Times Captain Wood called attention to those Minutes on page 3 where it says, "The meeting was adjourned at 6:25 p.m.," he stated that was a daytime meeting, so that should be changed to "The meeting was adjourned at 10:25 a.m. POLICE PENSION BOARD PAGE 2 MINUTES OF REGULAR MEETING OF DECEMBER 14, 2021 A motion approving the Minutes of October 29, 2021 with the above correction was made by Captain Wood, seconded by Ms. Ring, and approved unanimously via voice vote. V. Old Business Mr. Killgore listed the payments that he has made since the last meeting as follows: A. Approval of Payments 1. Foster & Foster — June 15, 2021 Meeting/Calculation Funding $1,353.74 2. Klausner, Kaufman, Jensen & Levinson — September 1,730.00 3. City of Sebastian — Janet Graham 9-27-21 Meeting 126.00 A motion approving the payments listed above was made by Mr. Williamson, seconded by Captain Wood, and approved unanimously via voice vote. B. Approve 2022 Meeting Dates: March 10, June 9, September 8, December 8 -- All to start at 5:00 p.m. A motion approving the meeting dates and time for 2022 as set forth above was made by Captain Wood, seconded by Detective McDonough, and approved unanimously via voice vote. VI. Public Input — None VII. New Business A. Report from Investment Monitor and Explanation of Terminology Mr. Mcllvaine reviewed at the last meeting some education by the Investment Monitor was suggested. He presented a document called "Education Workshop." He went through that document page -by -page explaining the terminology (SEE ATTACHED). He also reviewed the markets during 2021 and how inflation affects the markets. Mr. Mcllvaine then focused on the City of Sebastian Police Officers' Retirement Plan reports (SEE ATTACHED). He also reviewed the individual managers and their performances. Regarding Renaissance International Growth, they are being watched very closely. He is not recommending a search yet, but the negative alpha figure is a concern. If this is not turned around in the next couple quarters, a search will probably be recommended. He then called for questions/comments from the Board. POLICE PENSION BOARD PAGE 3 MINUTES OF REGULAR MEETING OF DECEMBER 14, 2021 Detective McDonough addressed how the stock market reacted when the feds talked about raising interest rates. Taking that Into consideration, he asked if there is a plan or school of thought as to how to manage a pension fund. Would it be a major overhaul or change, or would it be more of a subtle adjustment. Mr. Mcllvaine stated that there is always an attempt to hit the target returns. It is hard to time when a market correction is going to happen. Market corrections occur approximately every 1.8 years. A correction is defined as a 10% pullback In the market. They have made some small adjustments already to try to stay ahead of this. Ms. Jensen added that there are managers in the portfolio who are making decisions about what to buy. As new money is coming in, they can make decisions about where to allocate it or what to buy. Mr. Mcllvaine agreed. B. Report from Investment Manager and Discussion of China Restrictions (Including Comments About Executive Order on China Restrictions) Mr. Stack stated he was asked to talk about China and what is going on with the US Government and the newest regulation that came out. He reviewed how the US markets as well as the global markets have reacted to China's activities with regard to Chinese companies that are traded on the global exchanges. Currently, his firm does not have a lot of concerns about it. This is something, however, that they monitor daily. Regarding the question on Inflation and interest rates, he reviewed the history of interest rate hikes and how they affected the markets. It Is his belief that this Inflation is not going to be transitory; it is going to be with us for a while. Vill. Leval Updates Ms. Jensen updated the Board on the new legislation that was proposed in Florida regarding COVID-19 and developing a presumption around that. That bill actually merged into another bill. There Is a senate companion now, which is House Bill 117 and Senate Bill 774. They are slated to go through three committees. She does not know how the COVID situation Is going to end up at the end of the legislative session, but she does think it is going to get some discussion by the legislators. Mr. Puscher asked if that was regarding the mandatory vaccinations for police officers. Ms. Jensen said it is a presumption that COVID-19 was job related, that it was con- tracted in the line of duty. In order to be entitled to the presumption, one must get the vaccinations that are available. Ms. Jensen also addressed the public safety officer benefit. That presumption was slated to end on December 3181 of 2021. On November 18'h it was extended to 2023 or until the end of the pandemic, whichever is later. The public safety officer benefit for death and POLICE PENSION BOARD PAGE 4 MINUTES OF REGULAR MEETING OF DECEMBER 14, 2021 disability also increased due to a cost -of -living adjustment. It went from $370,000.00 to $390,000.00. IX. Board Member Reports and Comments Mr. Puscher asked when training is available for the Board. He is certified through the FPTTA as a trustee, and he would like to be able to continue that. He asked if that is something that the Board would be interested in and going through that certification process. Captain Wood said that he would not be opposed to that and asked if Mr. Killgore had any information regarding training for this certification. Mr. Killgore said that the City has always encouraged and supported training programs for Board members. His office manages the registrations and travel reimbursements. The City would then be reimbursed from the Pension Fund for those costs. Ms. Jensen stated that in order for members of the Board to go to conferences, the Board would need to join the FPTTA. She suggested that the fee for the Board to join is in the $700.00 range. She feels that all of their conferences from now on will be in Orlando because they have gotten so big. Ms. Ring stated she was allowed to go in November, and Mr. Killgore stated that at that conference she was registered as a non-member. Captain Wood stated that it was discussed at the prior meeting to have one of the managers at each meeting in the future to speak to the Board about matters pertaining to the Pension Fund. Mr. Williamson stated rotating managers was discussed in order to get different viewpoints from the different managers. After general discussion, it was the consensus of the Board that that would be beneficial. Mr. Williamson requested that the Renaissance manager be brought in, and Mr. Mcllvaine stated he would follow up on that. X. Plan Administrator Reports and Comments A. Budget Report, Calendar of Board Activities Actuarial Report Status B. Other Administrative Matters Mr. Killgore stated that contained in the agenda packets is a financial report of the budget to actual comparison. He realized today that the most recent three expenses that were approved tonight were In the wrong column. He will move those to the right column. He also had printed out the calendar of activities. The investment policy was updated on September 15th, 2021. The expected rate of return of 7.1 % was approved on June 151", 2021. The actuary at the next meeting may have some information on that. The liability insurance policy was renewed and was effective November 161, 2021 for fiduciary liability insurance on the Board members POLICE PENSION BOARD PAGE 5 MINUTES OF REGULAR MEETING OF DECEMBER 14, 2021 XI. Next Scheduled Quarterly Meetina: March 10, 2022 XII. Adjourn There being no further business, Chairman Wood adjourned the meeting at 6:35 p.m. By�-y 61— Date: o31,1z'