HomeMy Public PortalAbout2022-08-30_Pol Fire Meeting_MinutesCITY OF CRESTVIEW
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POLICE OFFICERS' & FIREFIGHTERS' 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 2:30pm
Andrew Schneider, Chair
Ellis Conner
David Griggs
Dan Krusenklaus
TRUSTEES ABSENT: Corey Winkler, Secretary
OTHERS PRESENT:
Tyler Grumbles, AndCo Consulting
Stu Kaufman, Klausner, Kaufman, Jensen, & Levinson
Lindsey Garber, Klausner, Kaufman, Jensen, & Levinson
Drew Ballard, Foster & Foster
Joe Griffin, Foster & Foster
Kim Kilgore, Foster & Foster
Members of the Plan
Members of the Public
1. Call to Order — Andrew Schneider called the meeting to order at 2:30pm.
2. Roll Cali — As reflected above.
3. Public Comments — None.
4. Approval of Minutes
a. June 7, 2022, quarterly meeting
The minutes from the June 7. 2022, quarterly meeting were approved, upon motion by Ellis Conner
and second by David Griaas: motion carried 4-0.
5. Reoorts (A`tornev!Consultantsl
a. Foster & Foster, Drew Ballard and Joe Griffin, Board Actuary
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' experience in the actuary field and was
excited to be working with the Board.
b. AndCo Consulting, Tyler Grumbles, Investment Consultant
i. Quarterly report as of June 30, 2022
. Tyler Grumbles reviewed the market environment during the past quarter.
Tyler commented it was a rough quarter driven by higher inflation and the
feds raising interest rates to combat inflation, hopefully not to overdo.
2. The market value of assets was $24,375,498 at quarter end.
3. Tyler Grumbles re„1ewed the fiscal year ending returns for the past 6 years
looking for long term performance to be at more normalized levels.
4. The asset allocation by asset class for the fund was Domestic Equity at
36.40%, International Equity at 14.10%, Domestic Fixed at 25.10%, Non-
more Fixed at js, 0% infrastructure at 5.80%, Real Fstate at 12.80 °, and
Cash at 1.0%.
5. Tyler Grumbles commented the portfolio was rebalanced after last
meeting, so now in compliance with required allocation ranges.
6 The gross ea nmas for q after mere p 99°i e, rming the
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benchmark of—9.49%. The trailing returns for the FYTD, 1, 3, 4, and 5-
year periods were-9.30%,-9.15%, 6.09%, 6.27%, 6.72%, and 7.53%.
Since inception (10/01/1994) returns were 7.53%, underperforming the
policy benchmark of 7.63%.
Tyler 4rjrbtes c _.i e-tec the ::r's fie -:mGn e had do"ebetter then
most plans. Tyler reviewed each of the manager's returns in the portfolio.
c. Klausner, Kaufman, Jensen, & Levinson, Stu Kaufman, Board Attorney
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.
ii. Initial disability hearing — Frank Van Schmidt
t. St0i Kaufman reviewed the questionnaire completed by Juan Carlos
Zarate, M.D., who performed the Independent Medical Evaluation (IME)
on the disability applicant. Stu noted question #4 asked if the applicant
suffered from heart disease or hypertension that would afford the line of
duty presumption affoorded Minder section 112.18, FloridaStatutes (the
heart bill), in which the doctor noted the applicant had hypertension.
2. Stu Kaufman reviewed the preemployment physical examination of
disability applicant which notes no heart disease or high blood pressure at
the time of hire. Stu commented he believed the heart bill would apply in
this situation.
3. Stu Kaufman reviewed Frank Van Schmidt had his first stroke on July 16,
2021. Stu reviewed the interrogatories from the neurologist and other
doctors stating Mr. Van Schmidt's prognosis was not to return to work in
law enforcement.
4. Stu Kaufman commented he believed there was evidence to support Mr.
Van Schmidt could not fulfil all the duties as a police officer. Stu stated
either the Board could make decision today on ILOD disability retirement
benefit for the applicant or request further medical records to review.
to Kaufman commented the applicant had a hearing on worker's comp
case at end of October, but the Trustees were not bound on the outcome
of that decision.
6. Stu Kaufman stated an Ordinance change was made in 2017 or 2018
which would retro pay benefits beginning on the date when the application
was received which was February 7, 2022.
7. The Board reviewed and discussed the medical documentation presented
on the disability applicant.
The Board aonroved to :antrirant .LO retirement hr,hPfit to Frank Var Schmidt to be
effective February 7, 2022, upon motion by David Griaas and seconded by Ellis Conner: motion
carried 4-0.
Stu Kaufman commented Frank Van Schmidt would receive a lifetime
benefit of 42% of his average final compensation.
iii. Stu Kaufman introduced Lindsey Garber as an additional attorney who worked on
their Plan with his firm.
2t •, Business
Proposed FY2022-2023 budget
i. Kim Kilgore reviewed each expenditure type and the amount proposed to budget
for next year's expenditures.
The Board voted to approve the FY2022=2023 oronosed budget as presented for a total of S156,000,
upon motioned by David Griaas and seconded by Dan Krusenkiaus: motion carried 4-0.
b_ Proposed 2023 meeting dates
i. By consensus, the Board approved the proposed 2023 board meeting dates.
7. Reports (cont'd)
a. AndCo Consulting, Tyler Grumbles, Investment Consultant
i. Tyler Grumbles recommended to rebalance the portfolio since the Domestic Equity
allocation was outside of compliance.
The Board voted to approve a full rebalance of the portfolio to bring asset allocations back into
compliance. upon motioned by Ellis Connor and seconded by David Griaa; motion carried 4-0.
8. Old Business — None.
9. Consent Agenda
a. Payment ratification — Warrants #22 and #23
b. fnvoices for approval— None
c. Fund activity report for June 1, 2022, through August 23, 2022
The Board voted to approve the Consent Aaenda as presented, upon motion by David Griaas and
second by Ellis Connor; motion carried 4-0.
10. Staff Reports. Discussion and Action
a. Foster & Foster, Kim Kilgore, Plan Administrator
i. SB534 posting requirements
1. Kim Kilgore commented the required financial reports and link have been
posted to the City's website per Florida Senate Bill 534.
ii. State annual report update
1. Kim Kilgore commented the State annual report was approved today.
ill. Upcoming educational opportunities
1. Kim Kilgore reviewed the upcoming educational opportunities available to
the Board. Kim commented the Division of Retirement Conference would
be held September 26-28, 2022, in Orlando, FL and the FPPTA Fall
Trustee School would be held October 2-5, 2022, in Orlando, Florida.
The Board voted to approve to renew the FPPTA rnembershio when a trustee attends school or
conference. upon motion by David Griaas and seconded by Ellis Conner; motion carried 4-0.
11. Trustee Reports, Discussion and Action
a. Plan provision change
i. David Griggs reviewed the current normal retirement eligibility was Age 52 with 25
years of service and would like to know the cost for changing eligibility to 25 years
of service regardless of age.
ii. Stu Kaufman commented discussion needed to happen with City management or
with the Union to see if they would be open to minimal or no cost for this benefit
change. Stu commented the City manager would not approve a normal eligibility
change to 30 years regardless of age for General employees due to recent benefit
increases already given to employees and the City could not afford at this time.
iii. David Griggs commented if the members absorbed the cost and there was not a
cost to the City it may be considered.
iv. Drew Ballard suggested of either renegotiating the State money to the Fund or
increasing the member contribution to make the City's cost lower. Drew
commented he couki provide a cost study on this benefit change if the Board would
like.
The Board voted to aomrove to have the Actuary perform a cost study on normal retirement eligibility
at 25 years of service reaardless of aae. upon motioned by David Griaas and seconded by Dan
Krusenklaus: motion carried 4-0.
h
Custodian review
i. Tyler Grumbles addressed the Board on his concerns with the current custodian
and their rigid process on moving investments. Tyler commented trade tickets had
to be sent on day of trade and with signature/authorization needed could allow
investment to be out of market for day(s). Tyler stated the current custodian would
not take a standing rebalance letter of direction, instead he would need to manually
rebalance with cash build up happening if not monitoring closely.
ii. Stu Kaufman commented he could send out request for proposals (RFP) on
custodial service for the Board to review at the next meeting.
The Board voted to approved for the Attorney to send out RFP on custodial service for the Fund,
upon motioned by Dan Krusenklaus and seconded by David Griaas: motion carried 4-0.
12. Adiournment - The meeting adjourned at 3:37pm.
13. Next Meeting — November 29, 2022, at 2:3.0pm.
ctfuliy s bmitted by:
m Kilg re Pia Administrator
Date Approved by the Pension Board:
Approved by:
Andrew Schneider, Chair
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