HomeMy Public PortalAbout2021-11-30_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, November 30, 2021, at 1:00pm
Joe Carr
Jerry Maughon
David Williams
Chuck Powell
Gene Strickland
TRUSTEES ABSENT: None
OTHERS PRESENT:
Tyler Grumbles, AndCo
Greg Peters, Dana Investments
Stu Kaufman, Klausner, Kaufman, Jensen, & Levinson (via phone)
Kim Kilgore, Foster & Foster
Drew Ballard, Foster & Foster
Gina Toussaint, City Finance Director
1. Cali to Order — Chair Jerry Maughon called the meeting to order at 1:04pm.
2. Roll Call — As reflected above.
3. Public Comments — None.
4. Approval of Minutes
a. August 31, 2021, quarterly meeting
i. Chuck Powell would like to note on the minutes under audit section that the Board
had always maintained minutes as required and would follow up on the one
missing.
The minutes from the August 31, 2021, quarterly meetinq were approved with statement added
above, upon motion by Gene Strickland and second by Chuck Powell: motion carried 5-0.
5. Reports (Attorney/Consultants)
a. Foster & Foster, Drew Ballard, Board Actuary
i. Actuarial Experience Study
1. Drew Ballard commented the study included plan experience from
10/1/2010 through 9/30/2020 along with a review of the plan's
demographic and economic experience. Drew further commented the
recommended changes in assumptions or methods for consideration
would be effective for the October 1, 2021 actuarial valuation.
2. Drew Ballard commented the salary increase assumption was used to
project a member's compensation while actively employed to retirement
date. Drew commented on lowering the assumptions for the greater than
1 year service member since the actual increase experience was lower
than the assumptions. The impact of the recommended change to the
salary increase assumption would decrease the required City contribution
by .90% and increase the funded ratio by .70%.
3. Drew Ballard commented the retirement rate assumption was the
probability at a specific point in time when a member would retire. Drew
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recommended adjustments to the normal retirement rates, due to less
earlier retirements than assumed. The effect of the recommended change
would be a slight decrease in the City's contribution by .20% and slight
increase to funded ratio by .20%.
4. Drew Ballard reviewed the withdrawal rates or termination rate was the
probability a member would separate employment from cause other than
disability, death, or retirement. Drew commented the actual termination
experience relative to the assumption vaned but was close. Drew
recommended slight changes to each assumption to bring closer to
experience. The effect of the recommended changes would increase the
City's contribution by .70% and decrease the funded ratio by .40%
5. Drew Ballard reviewed the disability rate assumption was the probability
of a member becoming disabled while an active member of the plan. Drew
commented the plan assumed 2.24 disabilities over the past 10 years and
there were none. Drew recommended on lowering the disability rate by
33% for ail ages. The impact of this recommended change would be a
slight increase to City contribution by .10% and slight decrease to funded
ratio by .10%.
6. Drew Ballard commented to change all assumptions as recommended
along with a 7.00% assumed investment return would increase the City's
contribution by 1.20% and decrease the funded ratio by 3.90%. Drew
further commented with the investment gain for this year the City's
contribution could remain flat with these changes.
The Board voted to approve all of the Actuary's recommended actuarial valuation assumption
chanaes with a 7.00% assumed rate of return. motioned by David Williams and second by Joe Carr:
motioned carried 5-0.
b. Dana Investment, Greg Peters, investment Manager
i. Quarterly report as of September 30, 2021
1. Greg Peters introduced himself and gave a brief overview of the S&P 500
Index sector performance.
2. The portfolio value as of September 30, 2021 was $2,799,249.61. There
was a $676,023.58 gain for the fiscal year.
3. The gross total fund earnings for the quarter were -.51%, underperforming
the S&P 500 Index of .58%. Trailing total fund gross returns for the 1, 3
and 5-year periods were 15.93%, 15.24%, and 17.04% respectively. Since
inception total fund gross return eamings were 9.84%, underperforming
the S&P 500 Index of 9.97%.
4. Greg Peters discussed growth versus value and commented value was
now showing signs of leadership and had outperformed growth in Q4 2020
and year-to-date 2021.
5. Greg Peters reviewed sector contributors and detractors for the quarter.
Greg reviewed the characteristics of the portfolio.
6. Greg Peters commented their disciplined process had led to consistent
excess returns over time through various market cycles and levels of
volatility.
c. AndCo Consulting, Tyler Grumbles, Investment Consultant
i. Quarterly report as of September 30, 2021 (Preliminary without Infrastructure)
1. Tyler Grumbles reviewed the market environment during the past quarter.
2. The asset allocation by asset class for the fund was Domestic Equity at
45.50%. International Equity at 15.20%, Domestic Fixed at 22.00%, Non-
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Core Fixed at 4.00%, Infrastructure at 4.10%, Real Estate at 8.60%, and
Cash at 0.50%.
3. As of September 30, 2021, the market value was $24,622,813.
4. Gross earnings for the quarter were 0.10% underperforming the
benchmark of 0.33%. The trailing retums for the FYTD, 3, 4, and 5-year
periods were 19.71%, 11.12%, 10.50%, and 10.99%. Since inception
(07/01/1998) retums were 7.05%, outperforming the policy benchmark of
6.59%.
5. Tyler Grumbles reviewed each asset allocation and stated real estate was
below target ranges.
6. Tyler Grumbles recommended rebalancing the portfolio back to the
Investment Policy Statement (IPS) selling Domestic Equity and
purchasing $250,000 in Infrastructure and $350,000 in Real Estate.
The Board approved rebalancing the portfolio back to the IPS by sellina Domestic Eauity
investments and purchasing $250.000 in Infrastructure and $350.000 in Real Estate as
recommended. upon motioned by David Williams and second by Chuck Powell: motioned carried
5-0.
7. Tyler Grumbles reviewed the fund reconciliation for the quarter and fiscal
year end.
8. Tyler Grumbles reviewed each investment manager's performance during
the past quarter.
d. Klausner, Kaufman, Jensen, & Levinson, Stu Kaufman, Board Attorney
i. Legislation/Legal updates
1. Stu Kaufman informed the board the auditor Saltmarsh Cieaveland &
Gund had cancelled service for the plan.
2. Stu Kaufman informed the board they had two options, they could be part
of the City's audit, or ask for Request for Proposals (RFP).
3. Gina Toussaint stated the pension fund would have to pick up any
additional charges by the Auditor to have the plan included in their annual
audit since it had not been added to the City's budget for this year.
The Board voted to approve to retain the City's auditor to perform the annual audit and to oav any
additional cost to complete. upon motion by Chuck Powell and second by David Williams: motion
carried 5-0.
6. New Business
a. Proposed 2022 meeting dates
i. The board voted by consensus to approve the proposed 2022 meeting dates.
7. Old Business
a. Online member portal
i. The board voted by consensus not to purchase the portal at this time due to cost.
8. Consent Aaenda
a. Payment ratification — Warrants #14, #15 and #16
b. Invoices for approval — None
c. Fund activity report for August 25, 2021 — November 23, 2021
The Board voted to approve the Consent Agenda as presented, upon motion by David Williams and
second by Chuck Powell: motion carried 5-0.
10. Staff Reports. Discussion and Action
a. Foster & Foster, Kim Kilgore, Plan Administrator
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i. Fiduciary Liability insurance renewal
1. Kim Kilgore stated the fiduciary liability insurance was due for renewal for
a three year policy period for a premium of $5,432.00 annually.
The Board voted to approve the fiduciary liability insurance renewal as presented, upon motion by
Gene Strickland and second by David Williams: motion carried 5-0.
ii. Upcoming educational opportunities
1. Kim Kilgore reviewed the upcoming educational opportunities available to
the Board. Kim commented the FPPTA Winter Trustee School would be
held January 23-26, 2022, in Orlando, Florida.
11. Trustee Reports. Discussion and Action — None.
12. Adiournment - The meeting adjourned at 2:08pm.
13. Next Meeting — March 1, 2022, at 1:OOpm.
ectfully ubmitted by:
Kil�ofe, aPi" n Administrator
Date Approved by the Pension Board:
ApproL" d by:
aughor�/, Chairman
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