Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: November 15, 2021 Electronic Zoom Meeting TIME: 1:30 P.M. Present: Stan Chubinski from Battle Creek, MI; Tammy Giannunzio from City Hall in Battle Creek, MI; Ed Guzzo from Battle Creek, MI; and Jake Martin from Battle Creek, MI; and Chris Rabbitt from BCPD in Battle Creek, MI. Also Present: Jeremy Tollas, CAPTRUST; Sarah VanWormer, IT Director; Cassandra Cooper, Communications Specialist; Linda Morrison, Revenue Services Director; Tracy Hovarter and Kourtney Matuschka, Finance Services Manager/Police & Fire Retirement System Administrator. Chair Chubinski asked for approval of the agenda. Motion Giannunzio, seconded Guzzo to approve the agenda. On a voice vote, motion carried. Presented minutes of the regular meeting from October 14, 2021. Motion Rabbitt, seconded Martin to approve the regular meeting minutes from October 14, 2021. On a voice vote, motion carried. Bank Summary of Assets & Expense Report: As of 10/31/2021, the market value of the portfolio was $189,525,993 a gain of $5,315,649 from the 9/30/2021 balance. As of 11/12/2021, the portfolio market value was $190,702,715, a gain of $1,176,722 since 10/31/21. For the month of October, the following expenses were deducted. Additional Expense Type Payee Amount Frequency Details Investment Fees Loomis Sayles & Co 44,948.38 Quarterly 7/1 - 9/30/21 Total Investment Fees 44,948.38 Consulting Services CAPTRUST 23,750.00 Quarterly 7/1 - 9/30/21 Invoice Fee Comerica Bank 13,788.18 Quarterly 7/1 - 9/30/21 Legal Fees VanOverbeke, Michaud & Timmony, P.C. 152.00 Quarterly 7/1 - 9/30/21 Total Admin. Fees 37,690.18 Additional Notes: Attorney's invoice contained $152.00 for EDRO review. Motion Guzzo, seconded Giannunzio to accept the financial report and quarterly bank summary submitted. On a voice vote, motion carried. November 15, 2021 Page 2 of 3 - Official Board Reports Chubinski – none. Giannunzio – none. Guzzo – none. Martin – none. Rabbitt – none. Matuschka • Mariah Erard, Police Officer, terminated 9/10/21. A letter regarding her option for withdrawal was sent on 10/14/2021. • Joe Wilder, Police Officer, retired effective 10/16/21. • Scott Eager, Police Sergeant, retired effective 10/16/21. • Lorraine Wonderly, surviving spouse of Howard Wonderly, died 10/5/2021. A request to return the full payment issued 11/1/2021 was requested on 11/10/2021. Once this payment is refunded, her final payment for 5 days in October will be paid. • Clay Hoggard, former Police Officer, withdrew his contributions totaling $10,643.97. This total consisted of $10,427.77 in pre-tax contributions and $216.20 in interest. A payment was issued to Mr. Hoggard on 10/1/21. • Joan Tuttle, died 11/4/2021, her 12/1/21 benefit payment was reduced to reflect 4 days in November. A letter was sent to her surviving spouse, Ronald on 11/4/21. • Robert Broxholm, passed away 10/3/21. His 11/1/21 payment was returned and replaced with a pro-rated portion for 3 days in October. This final payment of $129.60 was paid on 11/2/21. His surviving spouse, Shirley has completed the necessary paperwork and received her pro-rated October benefit payment in the amount of $725.78 on 11/8/21. Her regular benefit payments of $803.55 will begin on 12/1/21. • Yoshimitsu Fujita, Firefighter, hired on 10/18/21. New Business 2022 Meeting Schedule: Matuschka presented the scheduled meeting dates for 2022. Motion Rabbitt, seconded Martin to accept the 2022 Meeting Schedule as presented. On a voice vote, motion carried. CAPTRUST – Asset Manager Portfolio Update: Tollas provided 3rd quarter investment reports as well as October month results: • Economic standpoint: upcoming challenges related to logistics, supply chain, job shortages and unknown policy outlook. Positive outlook on US household balance sheets are the strongest in history. • 3rd quarter performance was flat and year to date returns as of 9/30/21 were 6.59% vs. benchmark of 6.95%. This slight lag was due to the transition of investments in June/July. • October month end, no rebalancing needed at this time. • Total portfolio 3.10% for October vs. benchmark of 2.99%, YTD returns are 9.89% vs. 10.15% well above the average rate of return. November 15, 2021 Page 3 of 3 - Official Public Comment – Morrison introduced Tracy Hovarter as the nominated replacement taking over the Administration responsibilities. Tracy is a retiree from the city and will become a part-time employee to fulfill the Administration needs. Members are encouraged to schedule appointments with Tracy as her office hours have not yet been confirmed. Motion Rabbitt, seconded Giannunzio to accept Tracy Hovarter as the new Police & Fire Retirement System Administrator. On a voice vote, motion carried. Morrison also provided a brief update on the Actuarial Valuation Report from GRS. She worked with another firm, Watkins Ross, on the OPEB Valuation Report and received great response with a large cost savings. She would like to request an estimate for the 6/30/22 Actuarial Valuation Report for the pension fund. Chubinski proposed the question of how many Act 345 plans does Watkins Ross work with. Morrison will follow up. Martin requested a general overview of crypto currency and if it is allowable from an investment stance. CAPTURST will prepare information for next meeting. Next regular meeting: Tuesday, December 14, 2021 at 1:30 p.m. Meeting adjourned at 2:14 p.m. Respectfully submitted, Kourtney Matuschka, Recording Secretary __________________________________ __________________________________ Board Member signature Board Member signature