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Home My Public Portal About2021-11-30_Pol Fire Meeting_MinutesCITY OF CRESTVIEW POLICE OFFICERS' & FIREFIGHTERS' 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 2:30pm Andrew Schneider, Chair Corey Winkler, Secretary Ellis Conner David Griggs TRUSTEES ABSENT: None OTHERS PRESENT: Tyler Grumbles, AndCo Consulting Stu Kaufman, Klausner, Kaufman, Jensen, & Levinson (via phone) Drew Ballard, Foster & Foster Kim Kilgore, Foster & Foster Gina Toussaint, City Finance Director 1. Call to Order — Andrew Schneider called the meeting to order at 2:30pm. 2. Roll Call — As reflected above. 3. Public Comments — None. 4. Approval of Minutes The minutes from the August 31. 2021. quarterly meetinei were approved. upon motion by Corey Winkler and second by Ellis Conner: motion carried 4-0. 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 increasing the assumption on several age groups to better align with the plan experience. The impact of the recommended change to the salary increase assumption would decrease the required City contribution by 1.60% and increase the funded ratio by 1.30%. 3. Drew Ballard commented he retirement rate assumption was the probability at a specific point in time when a member would retire. Drew presented the adjustments to the normal retirement age table to better align with experience. The effect of the recommended change would increase the City's contribution by .10% with no change to funded ratio. 4. Drew Ballard reviewed the withdrawal rates or termination rate was the probability a member would separate employment from cause other than 1 disability, death, or retirement. Drew commented we had more termination than expected for members with fewer years and Tess terminations than expected with more years of service. Drew reviewed the recommended changes to the withdrawal rate table to bring closer to experience. The effect of the recommended changes would increase the City's contribution by .90% and decrease the funded ratio by 1.00% 5. Drew Ballard reviewed the dissability, rate assumption was the probability of a member becoming disabled while an active member of the plan. Drew commented the plan assumed 1.89 disabilities over the past 10 years and there were 2 disabilities during this time. Drew recommended no change for assumed disability rates at this time. 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 1.30% and decrease the funded ratio by 3.90%. Drew further commented with the fund's investment gain for this year it would be a good year to make these adjustments. The Board voted to approve all the Actuary's recommended actuarial valuation assumption chanaes with a 7.00% assumed rate of return. motioned bv Corey Winkler and second by David Grinnc• motionPrl carried 4-0. 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 makeup of the team at Dana Investments. 2. The portfolio value as of September 30, 2021 was $2,723,320.34. There was a $783,762.95 gain for the fiscal year. 3. The gross total fund earnings for the quarter were -.49%, underperforming the S&P 500 Index of .58%. Trailing total fund gross returns for the 1, 3 and 5-year periods were 15.95%, 15.39%, and 17.09% respectively. Since inception total fund gross return earnings were 10.01%, underperforming the S&P 500 Index of 10.04%. 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 Quarterly report as of September 30, 2021 1. Tyler Grumbles reviewed the market environment during the past quarter commenting the past quarter had flat performance. 2. Tyler Grumbles reviewed the Treasury Yield Curve showing the bound market was not concerned about inflation. 3. The asset allocation by asset class for the fund was Domestic Equity at 41.40%, International Equity at 14.30%, Domestic Fixed at 26.50%, Non - Core Fixed at 5.00%, Infrastructure at 3.80%, Real Estate at 8.20%, and Cash at .80%. 4. Tyler Grumbles recommended rebalancing the portfolio back to the Investment Policy Statement (IPS) ranges by selling Domestic Fixed Income and purchasing $350,000 in Infrastructure and $500,000 in Real Estate. The Board approved rebalancina the portfolio back to the IPS by sellina Domestic Fixed Income and purchasina $350.000 in Infrastructure and $500.000 in Real Estate as recommended. upon motioned by Ellis Conner and second by David Griaas: motioned carried 4-0. 5. Tyler Grumbles reviewed the financial reconciliafion of the Fund for the past quarter and fiscal year end. 6. Gross earnings for the quarter were .08% underperforming the benchmark of .33%. The trailing returns for the FYTD, 3, 4, and 5-year periods were 19.78%, 10.75%, 10.18%, and 10.75%. Since inception (10/01/1994) returns were 8.13%, slightly outperforming the policy benchmark of 8.18%. 7. Tyler Grumbles reviewed each of the investment managers performance. d. Klausner, Kaufman, Jensen, & Levinson, Stu Kaufman, Board Attorney 1. Stu Kaufman informed the board the auditor Saltmarsh Cleaveland & 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 hi dget fnr this year. The Board voted to approve to retain the City's auditor to perform the annual audit and to pay any, additional cost to complete. upon motion by Ellis Conner and second by Corev Winkler: motion carried 4-0. 4. Stu Kaufman commented SB774 and HB53 were pre -filled bills that would amend COVID-19 and other infectious diseases during a State of Emergency into the presumption list. 5. Stu Kaufman asked if the Board was interested in him pulling together an educational session for the trustees to attend. By consensus the Board would be interested in attending the training. 6, New Business a. Proposed 2022 meeting dates i. The board voted by consensus to approve the proposed 2022 meeting dates b. Actual expenses as of September 30, 2021 i. Kim Kilgore reviewed the total actual expenses for the fiscal year ending was $86,251.54 which was below the total budget amount of $300,300.00. The Board approved the actual expenses as presented upon motion by Corev Winkler and second by Ellis Conner: motion carried 4-0. c. Kim Kilgore commented Carr, Riggs and Ingram were way behind on completing the financial statements for the plan. Kim commented we currently had the financial reports through January 2021. Conversation ensued amongst the Trustee on cancelling the service with the accountant once the financial reports through 9/30/2021 were received. The Board voted to approve to cancel the services with Carr. Riaas and Inaram once the September 30. 2021. financials have been received upon motion by Corev Winkler and second by Ellis Conner; motioned carried 4-0. 7. Old Business a. Online member portal i. Conversation ensued amongst the trustees on the use of the portal by the members compared to purchase price. 3 The Board voted not to purchase the Foster & Foster online portal at this time. but may want to revisit in the future. motioned by Corev Winkler and second by David Griggs; motion carried 4-0. b. Vacant city appointed trustee seat i. Kim Kilgore commented the City Commission was still searching for a trustee to fill the vacant position on the Board. 8. Consent Agenda a. Payment ratification — Warrants #14, #15 and #16 b. Invoices for approval — None c. Fund activity report for August 25, 2021 through November 23, 2021 The Board voted to approve the Consent Agenda as presented. upon motion by Ellis Conner and second by Corev Winkler: motion carried 4-0. 10. Staff Reports. Discussion and Action a. Foster & Foster, Kim Kilgore, Plan Administrator i. Kim Kilgore stated the required SB534 posting had been sent to the City to publish on their website. ii. Kim Kilgore stated the fiduciary liability insurance was due for renewal for a three- year policy period beginning November 30, 2021 for a premium of $4,932.00 annually. The Board voted to approve the fiduciary liability insurance renewal as presented. upon motion by David Griggs and second by Corey Winkler: motion carried 4-0. iii. 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. Adioumment - The meeting adjourned at 3:55pm. 13. Next Meeting — March 1, 2022, at 2:30pm. Res •ectfully submitted by: Appro Y! n Administrator Date Approved by the Pension Board: ndrew Sc eider, Chairman /i /olO,) 4