Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: September 17, 2018 CITY HALL, ROOM 302A TIME: 11:00 A.M. Present: Doug Bagwell, Stan Chubinski, Tammy Giannunzio, Ed Guzzo, and Jake Martin. Absent: none. Also Present: Jeremy Tollas of Plante Moran Financial Advisors (PMFA); Nancy Mullett, Labor Attorney; and Kourtney Matuschka, Finance Officer/Police & Fire Retirement System Administrator. Matuschka welcomed new member Ed Guzzo to the Board. Vice Chair Chubinski asked for approval of the agenda. Motion Bagwell, seconded Martin to approve the agenda. On a voice vote, motion carried. Presented minutes of the regular meeting on August 15, 2018. Motion Martin, seconded Bagwell to approve the minutes as presented. On a voice vote, motion carried. Presented the summary of assets prepared by Comerica Bank. As of 8/31/18 the market value of the portfolio was $147,881,084, a gain of $1,432,000 since 7/31/18. As of today, the portfolio market value is $147,052,008, which is a loss of $829,076 since the prior month end. Motion Bagwell, seconded Giannunzio to accept the financial report as submitted. On a voice vote, motion carried. Board Reports Bagwell – Announced resignation of Sgt. Chris Hug. Doug will be presenting the history of the Police & Fire Retirement System during the Neighborhood Planning Council next Wednesday, September 26th at 7:00 pm at Central Christian Church on Capital Ave SW. He will also provide board members with a copy of information presented. Chubinski – none. Giannunzio – none. Guzzo – none. Martin – mentioned hiring of new Fire Chief. Matuschka:  Retiree, Edward Beaver died 7/9/18, an overpayment of $1,643.12 was returned to the pension fund. Surviving spouse, Myrna receiving surviving spouse benefit payments effective 7/10/18.  Former member, Erick Hegelmann, requested withdrawal of his contributions. On 9/11/18 lump sum payment of $11,503.75 was issued and $10,000 roll over payment was issued. The combined total of $21,503.75 included interest earned through 6/30/18.  Arthur (David) Schmaltz resigned effective 8/5/18. A letter regarding his options for withdrawal and deferred status was sent 9/11/18. September 17, 2018 Page 2 of 2 - Official Old Business Disability Policy review:  Matuschka shared an email from legal counsel regarding pension calculation for duty disability recipients upon reaching age 55.  Matuschka clarified there is not a requirement for disability retirees to have a medical evaluation once the retiree exceeds the age of 55. MAPERS Fall Conference: Giannunzio and Matuschka are scheduled to attend conference held September 23 -25, 2018. Travel reimbursement and a report from the conference will be submitted at next meeting. New Business PMFA Update – Tollas gave a general economic update. He mentioned the GDP increased to 4.2%, which is the highest it has been since 2015. Unemployment rates are at a 20-year low of 3.9% in July. The manufacturing sector has had 20 consecutive months of expansion. This is the longest consecutive time of expansion since the 1970s. These are all good indicators the economy is still showing signs of growth and potential for future growth. During the time of rising interest rates bond interest rates fall. Richmond, Loomis and Earnest are the three primary bond investment managers in the portfolio on average holding a bond for 5-6 years. Time weighted returns as follows:  Calendar year to date through 8/31/18 – 3.88% in comparison to benchmark of 3.26%; annualized to 5.88%; benchmark 4.94%  Fiscal year to date through 8/31/18 – 1.93% in comparison to benchmark of 1.73%; annualized to 25.25%; benchmark 22.44%  No recommended change in asset allocation  Asset Manager – Earnest Partners is reducing their fees from 30 basis points to 25. Public Comment – Nancy Mullett inquired about the disability retirement process. She wanted to confirm that the process would not be different if an employee separates employment after the disability application has been received. She wanted an estimate of how long the process should take and what steps follow the application process. The board believes the member must still be an active employee to submit the disability application. The process would follow the Disability Policy and the process can take several months to complete. After additional discussion, the board asked for clarification from the legal counsel to determine if a terminated member can file for disability benefits and if so for how long after separation from service. Next regular meeting: Monday, October 15, 2018 at 10:00 a.m. Meeting adjourned at 11:50 a.m. Respectfully submitted, Kourtney Matuschka, Recording Secretary __________________________________ _________________________________ Board Member signature Board Member signature