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HomeMy WebLinkAbout12-14-2023 MinutesCITY OF SEBASTIAN POLICE PENSION BOARD MINUTES OF REGULAR MEETING DECEMBER 14, 2023 I. Call To Order -- Chairman Wood called the meeting to order at 5:00 p.m. II. Roll Call Present: Board Members: Mr. Puscher Ms. Ring Mr. Reeves Detective McDonough Chairman Wood Also Present: Bonni Jensen, Klausner, Kaufman, Jensen & Levinson, Attorney for the Board Of Trustees (Zoom) Ken Killgore, Plan Administrator Cynthia Watson, Human Resources Director Joseph Perez, AV Technical Assistant Janet Graham, Technical Assistant Doug Lozen, Foster & Foster Corporal Matthew Radock, IUPA Union Representative T.J. Loew, Graystone Consulting Steve Stack, Highland Capital III. A. Vote to Excuse Absent Members -- None B. Public Input -- None C. Approval of Minutes 1. September 14, 2023 Regular Quarterly Meeting Chairman Wood called attention to the misspelling of Mr. Puscher's name as follows: On Page C-3 in the last paragraph, on Page C-4 in the second paragraph, on Page C-4 in the fifth paragraph, and on Page C-5 in the second paragraph. Chairman Wood then called for a motion to approve the Minutes with the listed corrections. A motion was made by Mr. Puscher, seconded by Chairman Wood, and approved unanimously via voice vote. IV. Old Business A. Approval of Pavments -- Ken Killgore, Plan Administrator POLICE PENSION BOARD MINUTES OF REGULAR MEETING DECEMBER 14, 2023 i. Highland Capital -- July to September -- Value and ADR ii. Highland Capital -- July to September -- Fixed Income iii. Boston Partners -- July to September iv. Fiera Capital -- July to September V. ClearBridge Investments -- July to September vi. Polen Capital -- July to September vii. Genter Capital Management -- July to September viii. Graystone Consulting -- July to September ix. Klausner, Kaufmann, Jensen & Levinson —August to Oct. X. City of Sebastian -Administrative Services —Oct. to Dec. A. City of Sebastian - Travelers Liability Policy Reimbursement xii. Salem Trust -- July to September PAGE 2 $5,482.21 1,392.67 5,961.62 3,105.70 2,914.02 2,681.46 574.00 4,000.00 4,922.50 6,000.00 3,221.52 7,961.00 Mr. Killgore reviewed these payments, and Chairman Wood asked for a motion of approval. A motion to approve the payments as listed above was made by Mr. Puscher, seconded by Chairman Wood, and approved unanimously via voice vote. V. New Business i. Consideration of Request for Proposal to Provide Administrative Services Mr. Killgore stated that due to his pending retirement, he reached out to Foster & Foster as far as a consultant to handle all the administrative functions for the Board. They would basically prepare the agendas and all requests from employees, etc. --everything that Mr. Killgore has been handling. He added that it has gotten to be too much for him to handle. He stated that the Board does pay to the City's General Fund $24,000.00 a year. He stated the proposal is approximately $26,000.00. The advantage would be that the Board would have a specialist who could do what Mr. Killgore has been doing among his other responsibilities. Mr. Puscher stated that he would highly recommend Foster & Foster taking over these responsibilities. He added that he will be sad to see Mr. Killgore leave. A motion to go forward with Foster & Foster taking over the responsibilities of Plan Administrator was made by Chairman Wood, seconded by Detective McDonough. Vote was 4 in favor and 1 opposed. Motion carries. Mr. Puscher asked when they would be starting. Mr. Killgore stated that it would be as POLICE PENSION BOARD MINUTESOF REGULAR MEETING DECEMBER 14, 2023 PAGE 3 quickly as possible. He does not have a definite date. Mr. Puscher praised Foster & Foster highly. Mr. Lozen said the administrative team will do whatever is necessary to work with Mr. Killgore to get it up and running very quickly. Chairman Wood said that, since the Board has used Foster & Foster for some time, he is comfortable going forward with them. Ms. Jensen stated that one of the other advantages is having a local person who lives in Fort Pierce and would be the lead administrator on the plan. Mr. Killgore added that Foster & Foster have always been very responsive. Chairman Wood thanked Mr. Killgore for his time and hard work. Mr. Killgore said there is a meeting scheduled in January, and he may be coming back for that. ii. Presentation of October 1 st Annual Evaluation Report Mr. Lozen reviewed the Annual Evaluation Report in detail, for which copies were provided to all of the Board members. He explained the changes from last year that were contained in the report. He suggested waiting one more year before the Experience Study is updated. A motion accepting the Annual Evaluation Report was made by Mr. Puscher, seconded by Chairman Wood, and approved unanimously via voice vote. Ms. Jensen stated that the Board has just approved an Actuarial Evaluation which has a 7.1 % assumption rate of return. The Board is charged with the responsibility to determine an expected rate of return, and every year the Board needs to determine it over the short term, the mid-term, and the long term thereafter. iii. Flexibility of Provision for 25 Years of Service With No Age Limit There was a question as to when an officer can join the union. Mr. Lozen stated that in order to join the union a person must be a sworn law -enforcement officer. Ms. Jensen verified that. POLICE PENSION BOARD MINUTES OF REGULAR MEETING DECEMBER 14, 2023 PAGE 4 Corporal Matthew Radock identified himself as a representative for the local IUPA Union. He stated that a lot of agencies are changing the pension from 30 years to 25 years. He asked what the process is in changing that. He added that presently Sebastian's is 33- 1/2 years at 100%, 25 years at 75%, 20 years at 60%. They are trying to get those numbers down to 25 years at 100%, 20 years at 75%, at a minimum age of 52. Mr. Puscher suggested that the process would be an ordinance change by Ms. Jensen. Ms. Jensen stated that any changes in benefits are subject to collective bargaining. They are a mandatory subjective collective bargaining requirement, which means that either party can bring them to the table. If you are interested in amending the plan, you should start with the collective bargaining process and get a collective bargaining agreement, which includes whatever changes you are interested in. You could approach the City and the Union could approach the Board when you have something that you are interested in implementing to find out what the cost is. Corporal Radock said that he did speak to the Union, and they told him that the first step is coming here and speaking to the Board. They said that they do not get involved with the pension because it is a City ordinance. Ms. Jensen stated that the Pension Board cannot create benefits. It is the province of the City and the Union to decide what the pension benefits are through a collective bargaining process. She stated that the actuary for the pension plan would do the math and the calculations on how much needs to be put into the plan to pay for the benefits. He would be able to give what's called a cost impact of those benefit changes. Corporal Radock asked if he could approach the actuary himself. Ms. Jensen said the Pension Board would have to give him permission to speak to the actuary. There was a general discussion as to the amount the actuary would charge to do this work. Mr. Lozen explained what the process would be. Ms. Jensen also explained the process from her perspective. A motion allowing the Union representative to communicate with Mr. Lozen, the actuary, to arrive at the terms for negotiations of a retirement package was made by Mr. Puscher, seconded by Mr. Reeves, and approved unanimously via voice vote. Mr. Killgore recommended that this subject be addressed at the Board's next meeting in January of 2024. iv. Report from Investment Monitor. T.J. Loew introduced himself and reviewed the Investment Monitor's report. He described how the market has fluctuated over the last year. He also reviewed the benchmarks. POLICE PENSION BOARD MINUTES OF REGULAR MEETING DECEMBER 14, 2023 PAGE 5 There was general discussion regarding Polen, and Mr. Loew said that at the next meeting he will bring a search and have a discussion regarding this. He added that at the next meeting most of our time will be spent going through the Polen information. V. Update from Investment Manager Highland Capital Steve Stack introduced himself and reviewed that Highland Capital manages several different asset classes for the Pension Fund. He reviewed the report and explained several of the sections. VI. Legal Updates Ms. Jensen reminded the Board that its comprehensive report is due on Friday, December 15fh. She did receive the information from the State on the rules. They were light on direction. Her firm got with the other law firms who represent public sector pension plans across the state, and they designed a report that basically is a cover page to the Board's investment policy guidelines which were updated at the last meeting. They added that they had let their managers know that when voting proxies, they have to take into consideration the provisions per the Florida statute. Ms. Jensen stated that Mr. Killgore should have received some documentation about filing and getting registered to be an authorized user. He can use that portal then to file the report. Mr. Killgore stated he did file the report the day before yesterday. Ms. Jensen added that her firm was contacted by a family member on behalf of Ireland Grimmich, and she filled out all the paperwork that she needed to fill out. She still has not heard from Courtney for her son Jack. Mr. Killgore said he did file paperwork with Salem Trust to make the payment on the one that he had all the information on. VII. Plan Administrator Reports A. Budget vs. Actuals Report/Calendar of Board Activities/Other Administrative Matters Mr. Killgore reviewed that for the first quarter, the spending is hard to judge as to what it will be for the year. So far, it looks like everything is in line. He added that he has also provided the Board with the calendar of activities. This needs to be updated, but he did POLICE PENSION BOARD MINUTES OF REGULAR MEETING DECEMBER 14, 2023 PAGE 6 comply with everything that is normally scheduled for this time of the year and addressed the expected rate of return. Vill. Next Scheduled Quarterly Meetinos: A. January 16, 2024 — April 16, 2024 — July 16, 2024 — October 15, 2024 IX. Adiournment There being no further business, the meeting was adjourned by Chairman Wood at 6:21 p.m. By: r-"rJ J. � C [n' Date: of 12ta lzuzy A