HomeMy Public PortalAbout2023-06-06_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
TRUSTEES PRESENT:
Tuesday, June 6, 2023, at 2:30pm
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
Joe Griffin, Foster & Foster
Michelle Rodriguez, Foster & Foster
Justin Hildebrand, Agincourt
Ryon Acey, Agincourt
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. February 28. 2023, quarterly meeting
The minutes from the February 28. 2023, quarterly meetina were approved, upon motion
by Ellis Conner and second by Dan Krusenklaus: motion carried 5-0.
5. Reports (Attorney/Consultants)
a. Foster & Foster, Joe Griffin
i. October 1, 2022, Actuarial Valuation Report
1. Joe Griffin reviewed the report and commented the City's required
contribution increased due to an overall unfavorable plan
experience in part due to an investment return of 5.52% which fell
short of the 7.00% assumption and an unfavorable
disability/retirement experience. Joe commented the losses were
offset in part by a gain associated with lower than expected interest
crediting on Share Plan balances. Joe explained that the City had
access to a prepaid contribution of $99,447.25 that was available
to offset a portion of the required contributions for the fiscal year
ending September 30, 2023.
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The Board approved the October 1. 2022, valuation report as presented, upon motion by
Ellis Conner and second by Dan Krusenklaus: motion carried 5-0.
The Board voted the declaration of returns for the plan shall be 7.00% for the next year,
the next several vears,and the Iona -term thereafter net of investment related expenses.
upon motion by David Griacis and second by Corey Winkler; motion carried 5-0.
b. Agincourt Capital Management, Justin Hildebrand and Ryon Acey, Investment
Managers
i. Quarterly report as of March 1, 2023
1. Ryon Acey provided an overview of his firm and their investment
strategies.
c. AndCo Consulting, Tyler Grumbles, Investment Consultant
i. Quarterly report as of March 31, 2023
1. Tyler reviewed the market environment over the last quarter and
commented that even with the Federal Reserve increasing its rates,
longer term rates had gone down, and short-term rates had gone
up. Tyler added the real estate market experienced a downturn.
2. The market value of assets as of March 31, 2023, was $25,960,263.
3. The gross earnings for the quarter were 4.38%, slightly
underperforming the policy benchmark of 4.55%. The fiscal year-
to-date earnings were 9.94%, underperforming the policy
benchmark of 10.16%. The trailing returns for the 1, 3, 4, and 5-
year periods were -3.87, 10.97%, 6.84%, and 6.38% respectively.
Since inception (10/01/1994) returns were 7.53%, slightly
underperforming the policy benchmark of 7.62%.
4. Tyler reviewed the asset allocations of the fund and commented he
did not have any recommendations for rebalancing at this time,
however he would like the board to approve an auto rebalancing
letter.
5 Tyler commented this letter would allow the custodian to
automatically rebalance the fund in accordance with the Investment
Policy Statement.
The Board voted to approve the investment consultant prepare an auto rebalance letter
that will keep $275.000 in cash and the remainder of the fund in compliance with the
Investment Policy Statement. upon motion by Dan Krusenklaus and second by Ellis
Conner: motion carried 5-0.
6. Tyler commented Salem now offered share class exchange which
provided a lower cost for the TSW fund.
The Board voted to approve a share class exchange as presented by the investment
consultant. upon motion by David Griaas and second by Dan Krusenklaus: motion carried
5-0.
d. KKJL, Stu Kaufman and Sean Sendra, Board Attorneys
i. Proposed Ordinance Amendment — RMD Age
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1. Sean Sendra reviewed the proposed language and the board
agreed by consensus to request a no impact letter from the
actuary and send to the City for first reading
ii. Proposed Ordinance Amendment — 25 and out
1. Stu reviewed the proposed language and commented he has sent
it to the City and was waiting for their response.
hi. Legislative update
1. Sean reviewed the memo and commented House Bill 3 recently
passed the Florida House and Senate and went into effect July 1,
2023.
2. Sean commented the bill stipulates that only pecuniary factors
may be used when making investment decisions and specifically
prohibited trustees to consider Environmental, Social and
Governance (ESG) factors when making investment decisions.
Sean commented the legislation did not prohibit any specific
funds, but rather seeks to regulate the reason for choosing funds.
Sean commented this board was already in compliance because
they only used data points provided by their investment consultant
to make all of their investment decisions.
3. Sean commented the legislation would require additional reporting
requirements and added his firm was waiting for the State to issue
guidance on the process.
6. New Business — None.
7. Old Business — None.
8. Consent Aaenda
a. Payment ratification — Warrant-#28
b Invoices for approval — None
c. Fund activity report for February 22, 2023 through May 30, 2023
The Board voted to approve the Consent Aaenda as presented. upon motion by David
Griaas and second by Ellis Conner; motion carried 5-0.
10. Staff Reports. Discussion and Action
a. Foster & Foster, Michelle Rodriguez, Plan Administrator
i. Member Statements
1. Michelle commented she just received the member statements
from the actuary and asked the board how they were usually
distributed to the members. The board asked the plan administrator
to email the statements individually to the members.
ii. Annual Report
1. Michelle advised the board the annual report was submitted to the
state on May 15, 2023; however she was waiting for the audited
financial statement to be completed so it could be submitted to the
State as well.
iii. Financial Disclosure Forms
1. Michelle reminded the board to submit their financial disclosure
forms to the Supervisor of Elections in the County in which they
reside by July 1st.
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iv. Upcoming educational opportunities
1. Michelle reviewed education opportunities that were available to the
board.
11. Trustee Reports, Discussion and Action — None.
12. Adiournment - The meeting adjourned at 4:50pm.
13. Next Meeting — August 29, 2023, at 2:30pm.
Respectfully submitted by:
kildta
Michelle Rodriguez, Plan(dfinistrator / ndrew Schn='der, Chair
Appro
Date Approved by the Pension Board:
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