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HomeMy WebLinkAbout03-10-2022 MinutesPOLICE PENSION BOARD MINUTES OF REGULAR MEETING MARCH 10, 2022 Call to Order — Chairman Tim Wood called the meeting to order at 5:05 p.m. Roll Call Present: Board Members: Mr. Puscher Detective McDonough Captain Wood Ms. Ring Also Present: Bonni Jensen, Klausner, Kaufman, Jensen & Levinson, Attorney for the Board of Trustees Ken Killgore, Plan Administrator Andy Mcllvaine, Morgan Stanley Doug Lozen, Foster & Foster Cynthia Watson, Human Resources Director Gary Vicars, AV Technical Analyst Janet Graham, Technical Writer III. Vote to Excuse Absent Board Members -- None IV. Aooroval of Minutes A. December 14, 2021 Regular Quarterly Meeting Mr. Killgore referred to Page 3 of the Minutes of December 14, 2021, in the next -to -the - bottom paragraph, the first sentence should read "...police officers" instead of police "offers," A motion approving the Minutes of December 14, 2021 as corrected by Mr. Killgore was made by Mr. P er, seconded by Chairman Wood, and approved unanimously via voice vote. Pu5-ede2 V. Old Business A. Approval of Payments 1. Highland Capital — October to December — Value, ADR $7,040.54 2. Highland Capital — October to December -- POLICE PENSION BOARD MINUTES OF REGULAR MEETING OF MARCH 10, 2022 Fixed Income 3. Boston Partners — October to December 4. Fiera Capital -- October to December 5. Renaissance — October to December 6. Polen Capital -- October to December 7. Graystone Consulting -- October to December 8. Klausner, Kaufman, Jensen & Levinson -- December/January 9. City of Sebastian — Janet Graham 12/14/2021 Meeting 10. Salem Trust — October to December PAGE 2 $ 3,411.78 6,282.49 3,413.77 2,590.29 3,277.40 3,375.00 1,220.00 90.00 5,915.00 A motion approving the payments listed above was made by Mr. Puscher, seconded by Detective McDonough, and approved unanimously via voice vote. VI. Public Input — None VII. New Business A. Report on 2021 Actuarial Valuation — Doug Lozen, Foster & Foster Mr. Lozen reviewed his Valuation Report (SEE ATTACHED) for October 21, 2021. This report tells the City how much they need to fund the pension plan for the next two fiscal years once approved today. He discussed the funding requirements as well as one assumption change that was made, which was essentially the same as what the City had to put in last year, which was $687,000.00. He does not expect any big change this year. For next fiscal year, 2022-2023, the City should budget at 22.9%. He pointed out that it might be a good idea to budget 25% this year and next. Smoothing was also discussed. The funding status is on track. Mr. Lozen called for questions/comments from the Board. Chairman Wood asked what the cause was for the decline in unfunded liability. Mr. Lozen stated the unfunded liability previously was frozen, and it was being paid down with the rest being absorbed. The cost method was changed, so the unfunded liability initially increased, but that helped stabilize the City's budget where we weren't getting a lot of volatility. That is an actuarial method that is commonly used. Ms. Jensen stated that regarding Mr. Grimmich, there were some questions, and no action has yet been taken at the Board level. There are two children, one of whom is a minor. The other one has not been able to be reached. Mr. Lozen referred everyone to Page 36 of his report where there is some reconciliation that might address this question and further explained this report. Mr. Lozen asked that the Board approve this report. A POLICE PENSION BOARD PAGE 3 MINUTES OF REGULAR MEETING OF MARCH 10, 2022 motion approving this Actuarial Valuation was made by Mr. Puscher, seconded by Chairman Wood, and approved unanimously via voice vote. Mr. Lozen explained the form "Declaration of Returns." It is a letter that must be filled out every year that. Once you approve the Valuation, it gets sent on to Tallahassee. He asked for a motion. A motion that the letter as set forth above be sent to Tallahassee was made by Mr. Puscher, seconded by Ms. Ring, and approved unanimously via voice vote. Regarding death benefits, Mr. Puscher asked if a letter is sent out to everyone in the plan asking if they are still alive. Mr. Killgore stated his office does not do that. Ms. Jensen said her firm has restarted that process, as the data base that is available is not very accurate. Chairman Wood referred to where the DROP benefits are listed, and it states there is one. He understood there are three at this point. Mr. Lozen stated that the other two entered after September 30'h, and Mr. Killgore agreed. B. Report from Investment Manager — Andy Mcllvaine, Morgan Stanley Mr. Mcllvaine reviewed the report from the Investment Manager (SEE ATTACHED). He explained how much has changed since the last meeting. He also reminded the Board that Clearwater Analytics, which is a third -party risk -and -compliance company, is now being used by Morgan Stanley. Their job is to look at each one of your managers on a daily basis. Morgan Stanley does this also, but Clearwater is just another level of service that Morgan Stanley is providing at no additional cost to the Pension Plan. He also reminded the Board regarding Renaissance, the international growth manager. There was talk about bringing them in to speak at last quarter, but it was eventually decided to address this again this quarter and decide whether or not they would be brought in at the June meeting. It was the general attitude of the Board that more managers should be brought in, in person, to provide updates. Mr. Puscher spoke about a document that he wished to add to the reports which showed an overall view of how the different managers were performing, and he suggested that this report could be added to the quarterly reports. Ms. Ring did not think it was necessary. Chairman Wood and Detective McDonough thought it would be a good idea to have that report. A motion to add the report was made by Detective McDonough, seconded by Mr. Puscher, and a voice vote was taken. The vote was 3 in favor, 1 opposed. Motion carried. Mr. Mcllvaine spoke about the market and the economy at the end of the fourth quarter. It was a very strong quarter. He does not project that this type of economy will be present going forward, and he reviewed several reasons for that, inflation being the most concerning. The situation overseas, which is relatively recent, is also a large reason for the market volatility. POLICE PENSION BOARD PAGE 4 MINUTES OF REGULAR MEETING OF MARCH 10, 2022 Mr. Mcllvaine reviewed the section of the report reviewing the individual managers. Ms. Jensen asked if there is any Russian exposure for any of these managers. Mr. Mcllvaine said he did not think so, but he would look into that. A discussion ensued again about having Renaissance come in to give their report in person. It was generally the opinion that this should happen. C. Selection of New Board Member Mr. Killgore reported that Mr. Williams' term ended in January, and the Board needs to select a replacement to submit to the City Council for their approval. He stated that the City Clerk's office has done some recruiting, and there are three applicants. He sent out information on these applicants as an attachment to this evening's agenda. There was general discussion regarding this matter. Ms. Ring recommended Harry Marshall. Chairman Wood suggested having the applicants come in so that the Board can interview them. Mr. Puscher suggested having a special meeting in order to meet the three applicants. It was the consensus of the Board to have the special meeting. Mr. Killgore said he would arrange it. D. Report from Salem Trust Mindy Johnson spoke about the fee adjustment that is being proposed, and she referred to the document that she had provided regarding this matter (SEE ATTACHED). She asked for questions/comments from the Board. Ms. Ring questioned whether the Board could look for a different custodian. Mr. Killgore answered yes. There was a general discussion among Board members, Ms. Jensen, and Mr. Killgore regarding the fee adjustment. After discussion, a motion to approve the fee schedule adjustment by Salem Trust was made by Mr. Puscher, seconded by Detective McDonough, and approved unanimously via voice vote. Ms. Johnson announced that she will be retiring from Salem Trust, and she introduced Karen Russo, who will be working on the Police Pension account, as she did for some years in the past. Ms. Russo introduced herself and reviewed a new service that Salem Trust will be rolling out towards the end of this month. She described the service as being a pension portal that will allow the retirees to go on-line in order to see their benefits, including growth, deductions, and other financial information. They will also be able to see the history of their account as well as some other information that will be helpful as well as being able to edit some of the information. Ms. Russo answered questions from the Board members and left documents for the Board members which further explained the service. After discussion, a motion approving Salem Trust's advanced benefit package was made by Mr. Puscher, seconded by Chairman Wood, and approved unanimously via voice vote. POLICE PENSION BOARD PAGE 5 MINUTES OF REGULAR MEETING OF MARCH 10, 2022 Vill. Lecal Uodates Ms. Jensen stated that they have updated the special tax notice. She reviewed that preceding the pandemic there was an act passed which required minimum distribution date or age from 70-1/2 to 72 years. This is required information that must be given to the pension members. She referred to the COVID bill, which has not been to a single committee or had any bill analysis done. The legislative session ends in a few days, so she stated the COVID bill is done for this year. Ms. Jensen spoke regarding the Grimmich matter. She stated she has lost touch with Ireland. She is aware that one of her relatives works for the City. She also has not heard from the son's mother. She would like to bring this matter to a conclusion. Detective McDonough offered to get in contact with the brother who works for the City. Chairman Wood also offered to get in touch with the brother. Ms. Jensen reviewed the history of this matter. Chairman Wood suggested bringing this matter up going forward until the situation is taken to its completion. IX. Board Members Reoorts and Comments Mr. Puscher announced that the FPPTA will have their summer conference, which is being held from June 261h to the 29rh. Mr. Killgore stated he has registered the Pension Board for the $750.00 fee. Mr. Killgore will get the forms out to the Board members who need them. Ms. Ring stated she will not be going. Captain Wood asked regarding Mr. Williamson's position on the Board. Mr. Killgore stated Mr. Williamson had been the elected Secretary. Mr. Puscher and Ms. Ring both nominated themselves, and Chairman Wood and Detective McDonough voiced their support of Mr. Puscher as Secretary. Chairman Wood called for a vote for Mr. Puscher, which was 3 in favor and 1 opposed. Mr. Puscher will serve as Secretary. Chairman Wood stated that Mr. Chance Reardon, one of the retirees who is currently collecting, reached out to him. He was a police officer from 1987 to 2001. According to him, he is getting a 2% multiplier, and he feels he should be receiving a 3% multiplier, and he asked for clarification. Ms. Jensen said that in 2002 the ordinance was changed to increase the multiplier from 2% to 3%. It was effective for retirements after May 31, 2002 with a 3% multiplier. Mr. Reardon left service in January of 2001. Mr. Puscher thanked Mr. Killgore for how helpful he has been in getting Mr. Puscher up to speed and answering his questions. X. Plan Administrator ReDorts and Comments POLICE PENSION BOARD PAGE 6 MINUTES OF REGULAR MEETING OF MARCH 10, 2022 A. Budget Report and Calendar of Board Activities Mr. Killgore stated he has provided the normal budget schedule showing all the expenses that have been made for the quarter. He made a note of the Summary Plan Description. Ms. Jensen said her firm will update the Summary Plan Description, as it is required every two years. Mr. Puscher inquired how that report is disseminated to the members. Mr. Killgore stated it is normally sent out via email by the secretary in the Police Department. Ms. Jensen reviewed that it was discussed using a return receipt or using a computer system where an email could be sent out so that we know that it was actually received. B. Other Administrative Matters Mr. Killgore stated we will be following up on some of the items that came up this evening. XI. Next Scheduled Ouarteriv Meetina: JUNE 9, 2022 XII. Adjourn There being no further business, Chairman Wood adjourned the meeting at 7:05 p.m. By. Z-, ig -* iPpcoved QS 0-MUVA" Date: & A7, /Z z