HomeMy Public PortalAbout2022-08-30_Meeting_MinutesCITY OF CRESTVIEW GENERAL EMPLOYEES' PENSION TRUST FUND
PENSION BOARD OF TRUSTEES
QUARTERLY MEETING MINUTES
198 N. Wilson Street
Crestview, FL 32536
TRUSTEES PRESENT:
Tuesday, August 30, 2022, at 1:O0pm
Joe Carr
Jerry Maughon
Chuck Powell
David Williams
TRUSTEES ABSENT: Gene Strickland
OTHERS PRESENT:
Tyler Grumbles, AndCo
Stu Kaufman, Klausner, Kaufman, Jensen, & Levinson
Lindsey Garber, Klausner, Kaufman, Jensen, & Levinson
Drew Ballard, Foster & Foster
Joe Griffin, Foster & Foster
Kim Kilgore, Foster & Foster
Billy Gilliam, City Comptroller
Tim Bolduc, City Manager
1. Call to Order — Chair Jerry Maughon called the meeting to order at 1:05pm.
2. Roll Call — As reflected above.
3. Public Comments
a. Tim Bolduc commented he was unaware of a cost study performed on retirement
benefit enhancements for the General Employees until today. Tim further
commented that the impact for the first year would be $100,000, plus the Tong -term
cost impact for the future. Tim commented that the General Employees received
a mid -year COLA this year and to approve this benefit would be fiscally
irresponsible at this point. Tim commented in the future for the Board to invite City
management for these types of discussion before any money was spent on cost
studies.
b. Stu Kaufman reviewed the purpose of the cost study would allow for employees
who started working for the City at a younger age to not have to work over 30 years
to reach normal eligibility.
4. Approval of Minutes
a. June 7, 2022, quarterly meeting
The minutes from the June 7, 2022, quarterly meeting were approved as presented, upon
motion by David Williams and second by Joe Carr: motion carried 3-0.
5. Reports (Attorney/Consultants)
a. Foster & Foster, Drew Ballard and Joe Griffin, Board Actuary
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i. Drew Ballard announced he had moved to California to oversee a new
Foster & Foster office. Drew introduced Joe Griffin to the Board as his
replacement. Joe Griffin commented he had over 25 years of experience
in the actuary field and was looking forward to working with the Board.
ii. Actuarial analysis
1. Drew Ballard reviewed the cost study of adding the provision of a
normal retirement eligibility of 30 years regardless of age. Drew
stated the cost for adding this provision would increase the
minimum required contribution by 1.7% of the projected payroll.
Chuck Powell arrived at 1:12PM
b. AndCo Consulting, Tyler Grumbles, Investment Consultant
i. Quarterly report as of June 30, 2022
1. Tyler Grumbles reviewed the market environment during the past
quarter.
2. Tyler Grumbles reviewed the trailing returns for the past 15 years
and fiscal returns for the past 7 years, noting the good return years
versus the not so good years.
3. As of June 30, 2022, the market value of the Fund was
$22,018,215.
4. The asset allocation by asset class for the fund was Domestic
Equity at 42.50%, International Equity at 13.30%, Domestic Fixed
at 20.30%, Non -Core Fixed at 4.00%, Infrastructure at 5.90%, Real
Estate at 13.10%, and Cash at 0.9%.
5. Tyler Grumbles commented there was no need to rebalance the
Fund at this time since all allocations were in line with policy.
6. The gross earnings for the quarter were-9.23%, outperforming the
benchmark of-9.88%. The trailing returns for the FYTD, 1, 3, 4, and
5-year periods were-9.52%,-9.36%, 6.23%, 6.47%, and 6.91%.
Since inception (07/01/1998) returns were 6.38%, outperforming
the policy benchmark of 5.98%.
7. Tyler Grumbles reviewed each of the investment managers' returns
during the past quarter.
c. Klausner, Kaufman, Jensen, & Levinson, Stu Kaufman, Board Attorney
i. Stu Kaufman introduced Lindsey Garber as an additional attorney with his
firm who worked on their Plan.
ii. Proposed Ordinance — 30 Year Normal Retirement
1. Stu Kaufman commented the City was not able to move forward
with this provision change at this time.
iii. IRS mileage rate
1. Stu Kaufman commented the IRS released its updated standard
mileage rate for the final 6 months of 2022 would be 62.5 cents per
mile.
iv. Stu Kaufman reviewed investments in Environmental, Social and
Governance (ESG) funds and commented that the Board needs to focus
on receiving the highest max return.
6. New Business
a. Proposed 2023 meeting dates
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i. By consensus the Board approved the proposed 2023 meeting dates.
7. Old Business — None.
8. Consent Agenda
a. Payment ratification — Warrants #23 and #24
b. Invoices for approval — None
c. Fund activity report for June 1, 2022 — August 23, 2022
The Board voted to approve the Consent Agenda as presented, upon motion by David
Williams and second by Joe Carr: motion carried 4-0.
10. Staff Reports, Discussion and Action
a. Foster & Foster, Kim Kilgore, Plan Administrator
i. Senate Bill 534 posting requirements
1. Kim Kilgore commented that the required posting per SB534 had
been added to the City's website.
ii. Upcoming educational opportunities
1. Kim Kilgore reviewed the upcoming educational opportunities
available to the Board. Kim commented that the FPPTA Fall Trustee
School would be held October 2-5, 2022, in Orlando, Florida.
11. Trustee Reports, Discussion and Action — None.
12. Adjournment - The meeting adjourned at 2:26pm.
13. Next Meeting — November 29, 2022, at 1:OOpm.
R5spectfully ubmitted by:
m Kilgore, P n Administrator
Date Approved by the Pension Board:
Approved by,
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Chairm
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