HomeMy Public PortalAbout2023-02-28_Police and Fire_Quarterly_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, February 28, 2023, at 2:30pm
TRUSTEES PRESENT:
Ellis Conner
David Griggs
Dan Krusenklaus
Andrew Schneider, Chair
Corey Winkler, Secretary
TRUSTEES ABSENT: None
OTHERS PRESENT:
Tyler Grumbles, AndCo Consulting
Stu Kaufman, Klausner, Kaufman, Jensen, & Levinson
Sean Sendra, Klausner, Kaufman, Jensen, & Levinson
Mark Rhein, Salem Trust
Tyler Grumbles, AndCo
Kim Kilgore, Foster & Foster
Michelle Rodriguez, Foster & Foster
1. CaII to Order — Andrew Schneider called the meeting to order at 2:30pm.
2. Roll CaII — As reflected above.
3. Public Comments — None.
4. Approval of Minutes
a. November 29, 2022, quarterly meeting
The minutes from the November 29, 2022, quarterly meeting were approved, upon motion
by Ellis Conner and second by Dan Krusenklaus; motion carried 5-0.
5. Reports (Attorney/Consultants)
a. Salem Trust, Mark Rhein, Custodian
i. Update on custodian transition
1. Mark Rhein provided an update of the custodial transition and
commented everything was in place to transition assets and benefit
payments on March 31, 2023.
2. Stu Kaufman asked if there would be any trade restrictions and
Mark Rhein said three or four days after the assets were moved.
3. Tyler Grumbles commented Agincourt was the only fund that was
not held by the custodian so the impact should be negligible.
ii. Introduction to the pensioner portal
1. Mark Rhein reviewed the features of the pension portal and
commented a big advantage was allowing retirees to change their
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direct deposit, address, and tax withholding online. Retirees would
also be able to download a 24 month pay history in addition to
copies of their 1099Rs. Mark commented there was no cost to the
plan for retirees to utilize the portal.
2. Mark Rhein commented his firm would take care of notifying retirees
of the portal and providing login instructions and assistance.
The Board approved the use of the pensioner portal with all available features, upon
motion by Dan Krusenklaus and second by David Griggs; motion carried 5-0.
3. Mark Rhein reviewed the monthly death audit process utilized by
Salem Trust.
b. Klausner, Kaufman, Jensen, & Levinson, Stu Kaufman, Board Attorney
i. Stu Kaufman introduced Sean Sendra as a new member of his firm.
ii. Maintaining Internal Controls to protect against fraud and abuse
1. Sean Sendra reviewed the background and recommendations
found in the memo including: all financial transactions should be
processed by more than one person, perform periodic reviews of
financial transactions and statements, implement layers of security
controls including dual signatures or multi factor authentication, use
a subscription -based service to conduct death audits, and use an
independent auditor.
iii. Secure 2.0 Act
1. Sean Sendra reviewed the different provisions of the legislation
including: an increase in the age for Required Minimum
Distributions (RMD) to age 73 through 1/1/2033 and then age 75
thereafter, a reduction in the tax penalty for missing an RMD,
extends tax free earnings for certain disability retirement benefits to
normal retirement, expands exemptions from tax penalties for first
responders by adding 25 years of service as a separate qualifying
condition for exemption, and repeals the requirement to deduct
health insurance premiums directly from a pension benefit in order
to receive a $3,000 tax break for health insurance premiums.
iv. Legislation/Legal update
1. Sean Sendra commented House Bill 3 was recently introduced in
the State legislature. Sean commented if passed, this bill would not
allow Environmental, Social and Governance (ESG) investing to
guide a trustee's investment decisions in public pension plans.
Sean commented this legislation would create additional reporting
requirements.
2. David Griggs asked about the status of the proposed ordinance that
would provide a 25 and out provision and Stu Kaufman commented
he would follow up with the City.
c. AndCo Consulting, Tyler Grumbles, Investment Consultant
i. Quarterly report as of December 31, 2022
1. Tyler Grumbles advised the board none of their managers were
ESG managers.
2. Tyler Grumbles reviewed the investment consultant's role to the
pension board and his firm's personnel history.
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3. Tyler Grumbles commented even though public sentiment had a
negative outlook on the economy, the stock market was up in the
equity, international and fixed income sectors. Tyler commented the
one sector that did not have a positive quarter was Real Estate.
4. The market value of assets as of December 31, 2022, was
$24,975,580.
5. The gross earnings for the quarter were equal to the benchmark of
5.33%. The trailing returns for the 3, 4, and 5 -year periods were
4.11%, 7.95%, and 5.45%. Since inception (10/01/1994) returns
were 7.43%, slightly underperforming the policy benchmark of
7.52%.
6. New Business
a. Election of board officers
The Board voted to keep their current roster of officers, Andrew Schneider as Chair and
Corey Winkler as Secretary, upon motion my David Griggs and second by Dan
Krusenklaus; motion carried 5-0.
b. Actual expenses as of September 30, 2022
i. Kim Kilgore reviewed the actual expenses and commented they did not go
over their budget.
The Board voted to accept the expense report as presented, upon motion by David Griggs
and second by Ellis Conner; motion carried 5-0.
7. Old Business — None.
8. Consent Agenda
a. Payment ratification — Warrants #25, #26, #27
b. Invoices for approval — None
c. Fund activity report for November 23, 2022, through February 21, 2023
The Board voted to approve the Consent Agenda as presented, upon motion by David
Griggs and second by Dan Krusenklaus; motion carried 5-0.
10. Staff Reports, Discussion and Action
a. Foster & Foster, Kim Kilgore, Plan Administrator
i. Kim Kilgore advised the board she would be retiring on April 1, 2023, and
introduced Michelle Rodriguez as their new plan administrator.
ii . Michelle Rodriguez commented she and Kim were working on sorting and
cataloging all of the plan documents left by the previous administrator.
Michelle commented all documents were being handled in accordance with
the State of Florida's GS -1 schedule. Michelle commented documents that
had passed their retention date would be shredded, and member files,
meeting minutes would be scanned and retained permanently.
The Board voted to approve shredding documents as allowed by Florida Statutes and
directed the plan administrator to report all records disposition annually to the State, upon
motion by David Griggs and second by Corey Winkler; motion carried 5-0.
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iii.Upcoming educational opportunities
1.Kim Kilgore reviewed the upcoming educational opportunities
available to the Board.
11.Trustee Reports, Discussion and Action
a.Dan Krusenklaus commented while at the recent FPPTA school he was made to
feel unwelcome by FPPTA representatives because he had not paid to become
CPPT certified.
12.Adjournment -The meeting adjourned at 3:33pm.
13.Next Meeting -June 6, 2023, at 2:30pm.
Respectfully submitted by:
Date Approved by the Pension Board:
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