Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: May 13, 2019 CITY HALL, ROOM 302A TIME: 10:00 A.M. Present: Doug Bagwell, Stan Chubinski, Tammy Giannunzio and Ed Guzzo. Absent: Jake Martin Also Present: Justin Cohen and Jeremy Tollas of Plante Moran Financial Advisors (PMFA); Linda Morrison, Finance Director; Nancy Mullett, Labor Attorney and Kourtney Matuschka, Finance Officer/Police & Fire Retirement System Administrator. Chair Chubinski asked for approval of the agenda. Motion Bagwell, seconded Giannunzio to approve the agenda. On a voice vote, motion carried. Presented minutes of the regular meeting on April 24, 2019. Motion Bagwell, seconded Giannunzio to approve the minutes as presented. On a voice vote, motion carried. Bank Summary of Assets & Expense Report: As of 4/30/2019, the market value of the portfolio was $149,492,403.50, a gain of $3,143,344.51 since 3/31/2019. As of 5/9/2019, the portfolio market value was $147,289,408.31, which is a loss of $2,202,995.19 since 4/30/2019. For the month of April, the following invoices were authorized by Giannunzio and paid from the Cash Account: Cash Account - Detail Amount Actuarial Services Fee 10,200.00 Consulting Services 23,750.00 Invoice Fee* 16,875.98 *Invoice Fees were not approved by Giannunzio. Invoices are quarterly bank charges deducted directly by Comerica Bank. Motion Guzzo, seconded Bagwell to accept the financial report and quarterly bank summary as submitted. On a voice vote, motion carried. Board Reports Bagwell – One resignation, as a result one new cadet should be hired in before Memorial Day. Chubinski – none. Giannunzio – none. Martin – none. Matuschka  Zachary Burgess, Police Officer, resigned effective 3/29/19, withdrew his contributions including interest totaling $26,132.31 paid 4/18/19. April 24, 2019 Page 2 of 3 - Official  Tanya Wilt, Police Officer, resigned effective 5/3/19. Met with her to discuss reciprocating options if she were to become employed with another unit of government.  Michael Lind, retired Police Officer, passed away 5/1/19. His final benefit payment dated 6/1/19 will be adjusted to reflect payment for 1 day in May in the amount of $62.11. A letter was sent to his surviving spouse, Dee. Her monthly benefit amount will be $1,155.17 and will begin upon receipt of tax and direct deposit forms. New Business Purchase of Military Time Policy Review: In addition to providing the resolutions approved by the city, the policy now lists the procedure to follow when requesting purchase of Military Time. Revision needed to explain FAC and board appointed actuarial firm. Membership Form & Other Governmental Service Credit Form: Membership form modified to add the question regarding other governmental service credit. Revision needed for clarify of who completes “Other Governmental Service Credit Form”. Matuschka also added the need for a full version of Adobe to complete monthly board packets and create fill-able forms. Provided the board with a quote from Information Technology Department for $373.32. Motion Guzzo, seconded Bagwell to allow the purchase of Adobe Acrobat. On a voice vote, motion carried. Motion Bagwell, seconded Giannunzio to accept the Purchase of Military Time Policy, Membership Form and Other Governmental Service Credit Form with revisions. On a voice vote, motion carried. HUB International: John Avery presented the board with a quote for Fiduciary Insurance. The board discussed the need to have fiduciary insurance coverage on the Administrator and Trustees. Further discussion is needed with the City Attorney’s office to determine if the city would cover employees serving on the board. PMFA also has stated their fiduciary responsibility regarding the investments of the fund. No action taken at this time. PMFA – Asset Manager Portfolio Update: Tollas and Cohen presented the economic update and portfolio update for quarter ending 3/31/19 and month ending 4/30/19.  As of 3/31/19 the S&P 500 was up 13.65% and 50% funds out performed and 50% underperformed for the first quarter.  For quarter ending 3/31/19 the total portfolio up 8.35% compared to benchmark 8.41%.  Robeco Large Cap is invested heavily in financial and health related industries and didn’t perform as well due to those underperforming industries.  Westfield stock selection in technology has helped them out perform in the last qtr.  No manager changes to report and still monitoring changes from previous month.  Equity and fixed income strong 4 months of 2019  Returns for the total portfolio thru 4/30/2019 were 10.96%, compared to the blended benchmark of 10.61%. April 24, 2019 Page 3 of 3 - Official  Time weighted returns as follows: o Calendar year to date through 5/2/19: 10.21% in comparison to benchmark of 10.05%. o Fiscal year to date through 5/2/19: 5.02% in comparison to benchmark of 5.46%, annualized to 6.02%; benchmark 6.55%.  No rebalancing needed at this time and overall the 1st quarter of 2019 was very strong. Public Comment – Next regular meeting: Tuesday, June 11, 2019 at 10:00 a.m. Meeting adjourned at 11:25 a.m. Respectfully submitted, Kourtney Matuschka, Recording Secretary __________________________________ __________________________________ Board Member signature Board Member signature