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Home My Public Portal About2022-11-29_Pol and 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 Tuesday,November 29,2022,at 2.30pm TRUSTEES PRESENT:Ellis Conner David Griggs Dan Krusenklaus Corey Winkler,Secretary TRUSTEES ABSENT:Andrew Schneider,Chair OTHERS PRESENT:Tyler Grumbles,AndCo Consulting Stu Kaufman,Klausner,Kaufman,Jensen,&Levinson Joe Griffin,Foster &Foster Kim Kilgore,Foster &Foster Michelle Rodriguez,Foster &Foster 1.Call to Order -Ellis Conner called the meeting to order at 2:33pm. 2.Roll Call -As reflected above. 3.Public Comments -None. 4.Approval of Minutes a.August 30,2022,quarterly meeting The minutes from the August 30,2022,quarterly meeting were approved,upon motion by David Griggs and second by Dan Krusenklaus;motion carried 3-0. Note:Trustee David Griggs arrived. 5.Reports (Attorney/Consultants) a.Foster &Foster,Joe Griffin,Board Actuary i.Actuarial cost study 1.Joe Griffin reviewed the actuarial study providing a proposed benefit change for 25 years regardless of age and Age 55 with 10 years for normal retirement eligibility. 2.Joe Griffin reviewed the impact of this proposed benefit change on the contribution requirements.Joe commented it would increase the City’s required contribution from 13.20%to 16.20%.Joe further commented that the impact was 3.00%of projected payroll.Joe stated either the members could increase their contributions by 3% or the State money could be used towards the increase instead of members receiving an allocation. 1 3.Stu Kaufman commented that the Firefighters were unionized,and this would need to possibly be a negotiated item between the Fire and City. 4.Joe Griffin commented that currently the members were contributing 6.40%and this proposed change would increase member contribution to 9.40%. 5.Conversation ensued on this benefit change and adding a Cost-of- Living Adjustment (COLA). 6.Stu Kaufman commented they could allow only the individuals who wanted to pay the additional contributions to get the COLA. 7.Joe Griffin reviewed the impact to the unfunded actuarial accrued liability and funded ratio with the proposed benefit change. 8.Corey Winkler commented he was concerned for the upcoming members who would be retiring soon and were looking forward to receiving their Share Plan balance. 9.Joe Griffin commented that using the Share Plan money would work to cover the increase contribution at this time,but if the State money decreased in the future the additional contributions needed would need to be made either by the City or the members. 10.David Griggs commented he would get with the Union and members to discuss options on COLA and change in normal retirement eligibility. b.AndCo Consulting,Tyler Grumbles,Investment Consultant i.Quarterly report as of September 30,2022 1.Tyler Grumbles reviewed the market environment during the past quarter. 2.The market value of assets was $23,351,380 at quarter end. 3.The asset allocation by asset class for the fund was Domestic Equity at 40.60%,International Equity at 14.50%,Domestic Fixed at 19.40%,Non-Core Fixed at 5.10%,Infrastructure at 6.10%,Real Estate at 13.40%,and Cash at 0.80%. 4.The gross earnings for the quarter were equal to the benchmark of -4.21%.The trailing returns for the FYTD,3,4,and 5-year periods were -12.96%,4.23%, 4.29%,and 5.12%.Since inception (10/01/1994)returns were 7.30%,slightly underperforming the policy benchmark of 7.39%. 5.Tyler Grumbles reviewed the investment manager’s performance in the portfolio. ii.Brookfield Korean Tax Treaty 1.Tyler Grumbles reviewed the Brookfield Korean Tax Treaty commenting it required a tax residency certificate to receive the tax exemption which would save around $200 per year.Tyler asked the board if they would want the pension attorney to draft a tax exemption or just pay the additional amount annually.Tyler commented that the plan attorney fee to draft would run more than the $200 savings. 2.By consensus the board would like to go ahead and pay the taxes and not to file exemptions due to the attorney fee being more than the taxes which were to be paid. 2 c.Klausner,Kaufman,Jensen,&Levinson,Stu Kaufman,Board Attorney i.Public Safety Officer Support Act of 2022 1.Stu Kaufman stated the Public Safety Officer Support Act of 2022 had added post-traumatic stress disorder (PTSD)as line of duty death or disability for public safety officers. ii.Custodial Request for Proposal (RFP)responses 1.Stu Kaufman reviewed the custodial service responses received from the RFP which was sent out. 2.Stu Kaufman commented that the following companies to be considered were Comerica Wealth Management,Fiduciary Trust International,First State Trust Company,Salem Trust Company, Trustmark Tailored Wealth,and Fifth Third Institutional Services. 3.The Board reviewed the fee schedule for each custodian presented. The fee schedule for each were as follows:Comerica at 5 basis points for first $50,000 of assets and 2.5 basis points for remaining assets plus additional transaction fees;Fiduciary Trust at 4.5 basis points of assets,First State Trust at 4.5 basis points of assets plus additional transaction fees,Salem Trust at 4.5 basis points of assets,and Trustmark at 9 basis points of assets and the current custodian Fifth Third at 4 basis points of assets with minimum fee of $7,500. 4.Stu Kaufman commented Fiduciary,Salem and Fifth Third had the best fees which were all around the same amount with no additional transaction fees. 5.Conversation ensued with the consultants on their recommendation between Salem and Fiduciary Trust. 6.The board requested to ask Salem if they could lower the basis points for the fee.Stu Kaufman would contact Salem and ask about reducing the fee and request for a five-year contract instead of the three-year offered. The Board voted to hire Salem Trust as the Fund’s Custodian,upon motion by David Griggs and second by Corey Winkler;motion carried 4-0. 6.New Business a.Overtime hours subject to pension contributions i.Kim Kilgore commented that the Ordinance for Police &Fire plan does not have language under the definition of salary for the State Law changes on the overtime limit of 300 hours per calendar year as pensionable.Kim further commented that the City had been collecting pension contributions on overtime over 300 hours and should not be.Kim stated the General plan made this Ordinance change in July 2014,but not Police &Fire.Stu Kaufman commented he would research and draft an Ordinance if needed. 7.Old Business -None. 8.Consent Agenda a.Payment ratification -Warrant #24 b.Invoices for approval -None c.Fund activity report for August 24,2022,through November 22,2022 3 The Board voted to approve the Consent Agenda as presented,upon motion by David Griggs and second by Dan Krusenklaus;motion carried 4-0. 10.Staff Reports,Discussion and Action a.Foster &Foster,Kim Kilgore,Plan Administrator i.Kim Kilgore commented that the State money in the amount of $252,262.00 for Police and $170,880.96 for Fire had been received in deposited into the Pension Fund. ii.Upcoming educational opportunities 1.Kim Kilgore reviewed the upcoming educational opportunities available to the Board.Kim commented that the Division of Retirement Conference would be held December 13-15,2022,in Orlando,FL and the FPPTA Winter Trustee School would be held January 29-February 1,2023,in Orlando,Florida. 11.Trustee Reports,Discussion and Action 12.Adjournment -The meeting adjourned at 3:30pm. 13.Next Meeting -February 28,2023,at 2:30pm. Respectfully submitted by: Kim Kilgore,Plan Administrator Date Approved by the Pension Board: Approved by:—// Andrew Schneider,Chair 4