Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: January 14, 2019 CITY HALL, ROOM 112 TIME: 10:02 A.M. Present: Doug Bagwell, Stan Chubinski, Tammy Giannunzio, Ed Guzzo, and Jake Martin. Absent: none. Also Present: Dori Drayton of Plante Moran Financial Advisors (PMFA); Linda Morrison, Finance Director; Nancy Mullett, Labor Attorney; and Kourtney Matuschka, Finance Officer/Police & Fire Retirement System Administrator. 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 December 11, 2018. Motion Bagwell, seconded Guzzo to approve the minutes as presented. On a voice vote, motion carried. Bank Summary of Assets & Expense Report: As of 12/31/2018, the market value of the portfolio was $136,061,390.17, a loss of $4,887,602.57 since 11/30/2018. As of 1/8/2019, the portfolio market value was $137,082,983.70, which is a gain of $1,021,593.53 since 12/31/2018. Quarterly summary of bank statements was provided to Board. For the month of December, the following invoices were authorized by Giannunzio and paid from the Cash Account: Cash Account - Detail Amount Actuarial Services Fee Administrative Fee 2,020.00 Auditing Fee Consulting Services 23,750.00 Invoice Fee Legal Fees Medical Fees 1,100.00 Misc Fees Motion Bagwell, seconded Giannunzio to accept the financial report as submitted. On a voice vote, motion carried. Board Reports Bagwell – none. Chubinski – none. January 14, 2019 Page 2 of 3 - Official Giannunzio – none. Guzzo – none. Martin – none. Matuschka  New Hire: Emily Tuyls, Police Officer hired 12/17/2018.  New Hire: Rebeca Tani, Police Officer hired 12/27/2018.  Retiree: Warren Jorena, Fire Department died 12/10/2018. Reversed 1/1/19 payment and a prorated final benefit of $989.66 (for 10 days in December) paid in January 2019. Surviving spouse, Susan will receive $1,246.98 for remaining 21 days in December. Regular surviving spouse benefits of $1,840.77 will begin with 2/1/19 payment. Old Business Disability Policy review: Board reviewed revisions to the Disability Policy. The Board requested to have legal counsel review the new section regarding Workers Compensation Offset. Matuschka will bring the attorney’s opinion to February meeting. Meeting Schedule 2019: Matuschka presented the Board with the meeting schedule for 2019. Motion Bagwell, seconded Guzzo to accept the 2019 Meeting Schedule as submitted. New Business Election Policy Review: Board reviewed suggested changes and discussed transitioning the process to paperless election process. Matuschka will make additional revisions and the Board will review again at February meeting. Handbook Review: Board reviewed suggested changes and additional revisions are needed. Matuschka will update handbook based on suggestions and the Board will review again at February meeting. Election of Officers: Motion Bagwell, seconded Martin to nominate Stan Chubinski as Chairman of the Board. Motion Bagwell, seconded Giannunzio to nominate Ed Guzzo as Vice Chair. Stan and Ed both accepted. On a voice vote, motions carried. PMFA – Asset Manager Portfolio Update: Drayton presented an overview of the portfolio as of the quarter ending 12/31/18.  Markets down double digits for 4th quarter 2018.  Small Cap Value was hit extremely hard in 2018.  Because of volatility of the market, PMFA does not recommend any adjustments at this time.  Difference between Comerica and PMFA December 31 market value due to how Comerica records accrued interest and PMFA rolls interest into returns.  Time weighted returns as follows: o Calendar year to date through 1/4/19: 0.70% in comparison to benchmark of 0.69%. o Fiscal year to date through 1/4/19: -4.04% in comparison to benchmark of - 3.51%, annualized to -7.69%; benchmark -6.71% January 14, 2019 Page 3 of 3 - Official Public Comment – Linda Morrison shared the FY 18 Audit and discussed GASB 67 & 68. The retirement fund has a funding ratio of 75.29% as of 6/30/2018. Next regular meeting: Monday, February 11, 2019 at 10:00 a.m. Meeting adjourned at 11:13 a.m. Respectfully submitted, Kourtney Matuschka, Recording Secretary __________________________________ __________________________________ Board Member signature Board Member signature