Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: December 21, 2020 Electronic Zoom Meeting TIME: 10:00 A.M. Present: Doug Bagwell, Stan Chubinski, Tammy Giannunzio & Ed Guzzo. Also Present: Justin Cohen and Jeremy Tollas, CAPTRUST; Sarah VanWormer, IT Director; Chris Rabbitt, Police Sergeant and Kourtney Matuschka, Finance Officer/Police & Fire Retirement System Administrator. Chair Chubinski asked for approval of the agenda. Motion Bagwell, seconded Guzzo to approve the agenda. On a voice vote, motion carried. Presented minutes of the regular meeting on November 16, 2020. Motion Bagwell, seconded Giannunzio to approve the regular session minutes. On a voice vote, motion carried. Bank Summary of Assets & Expense Report: As of 11/30/2020, the market value of the portfolio was $171,632,162, a gain of 12,191,415 from the 10/31/2020 balance. As of 12/17/2020, the portfolio market value was $174,711,838, which is a gain of $3,079,676 since 11/30/2020. For the month of November, the following expenses were deducted. Additional Expense Type Payee Amount Frequency Details Investment Fees Loomis Sayles & Co 27,002.89 Quarterly 7/1 - 9/30/20 Investment Fees Harding Loevner International 28,030.00 Quarterly 10/1 - 12/31/20 Investment Fees Richmond Capital Management 2,513.00 Quarterly 7/1 - 9/30/20 Investment Fees Robeco Boston Partners SCV 21,934.65 Quarterly 7/1 - 9/30/20 Investment Fees Westfield Capital Management 18,787.09 Quarterly 7/1 - 9/30/20 Investment Fees Lazard Intl Equity 13,929.15 Quarterly 10/1 - 12/31/20 Investment Fees Robeco Boston Partners LCV 13,689.05 Quarterly 7/1 - 9/30/20 Investment Fees Earnest Partners Intermediate 15,542.91 Quarterly 7/1 - 9/30/20 Investment Fees Loomis Sayles Large Cap Growth 14,375.00 Quarterly 7/1 - 9/30/20 Total Investment Fees 155,803.74 Misc Fees (asset manager) Misc Admin fees - non investment 828.68 Monthly 11/1 - 11/30/20 Consulting Services CAPFinancial Partners, LLC 23,750.00 Quarterly 7/1 - 9/30/20 Legal Fees VanOverbeke, Michaud & Timmony, P.C. 355.30 Quarterly 7/1 - 9/30/20 Total Admin. Fees 24,933.98 Additional Notes: Attorney's invoice contained $168.30 for Legislative/CARES Act updates; $187 review & comment on Disability Policy, re-examination section. December 21, 2020 Page 2 of 3 - Official Motion Guzzo, seconded Bagwell to accept the financial report and quarterly bank summary as submitted. On a voice vote, motion carried. Board Reports Bagwell – two upcoming retirements, also introduced Chris Rabbit, newly elected Police Representative for the Board. Chubinski – none. Giannunzio – none. Guzzo – thanked Doug for his time served on the Board. Martin – none. Matuschka  Chris Rabbitt was the sole nomination for the Police Representative. Consistent with the Election Policy, Chris is appointed as the Police Representative to complete the four year term of 1/1/21 through 6/30/22.  Richard Teinert exited the DROP with a retirement date effective 12/13/20. Total benefits and interest totaled $82,827.47 less 5% of interest earned ($44.04), less early withdrawal penalty of 75% of interest earned ($660.53). The remaining balance of $82,122.90 was requested to be payable to Mr. Teinert. This payment was issued on 12/17/20 and his regular monthly benefit payments will begin in January 2021, with a pro-rated portion for December.  Michael McKenzie, Emergency Services Administrator, terminated 12/4/2020. He is eligible for deferred pension effective 10/17/25.  The following resolution needs approved: MARK A. KUSLER WHEREAS, the Board of Trustees is in receipt of an application for retirement from Mark A. Kusler requesting an effective retirement date of 8/22/20, and WHEREAS, Mark A. Kusler is eligible for retirement based on his service pursuant to Act 345 of the Public Acts of 1937, as amended, and retirement provisions of the union contract, and WHEREAS, the final actuarial calculation was received and, WHEREAS, Mark A. Kusler elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Mark A. Kusler for retirement is approved, and RESOLVED, the retirement benefit for Mark A. Kusler shall commence as of 8/22/20, and RESOLVED, the gross monthly benefit is $7,302.49 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $2,355.65 for 10 days in August was paid on 9/16/20 and the regular gross monthly benefit shall begin 10/1/20. Motion Bagwell, seconded Giannunzio to accept the retirement resolution for Mark A. Kusler. On a voice vote, motion carried. December 21, 2020 Page 3 of 3 - Official Old Business Disability Re-examination: No suspension of benefits needed. Retiree scheduled an appointment for February. New Business 2021 Meeting Schedule: Matuschka presented 2021 meeting dates. Dates are subject to change due to scheduling of attendees. Motion Guzzo, seconded Giannunzio to accept the proposed 2021 meeting schedule. On a voice vote, motion carried. CAPTRUST – Asset Manager Portfolio Update: Tollas presented an economic update through November.  November was strong month and December continues to be positive.  US stocks up 12.17% during November and 15.68% YTD.  International stocks lagging US stocks for YTD, showed strong returns for November.  Looking ahead, COVID continues to be a challenge, but second stimulus on the horizon.  Housing prices up 14%, highest since 2007. Cohen discussed portfolio and asset allocations as of November.  Current variances for domestic equities and fixed income, they do not exceed the 5% threshold for rebalance.  Total portfolio returns month to date 7.85% vs. benchmark of 7.68%, year to date 12.48% vs. 10.22%. Public Comment – none. Next regular meeting: Tuesday, January 19, 2021 at 10:00 a.m. Meeting adjourned at 10:22 a.m. Respectfully submitted, Kourtney Matuschka, Recording Secretary __________________________________ __________________________________ Board Member signature Board Member signature