Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: NOVEMBER 20, 2023 CITY HALL, ROOM 302B TIME: 1:30 P.M. Present: Jake Martin, Chris Rabbitt, Josita Todd, and Tammy Wolfersberger. Also Present: Lily Vardell (Police & Fire Pension Administrator) and Jeremy Tollas (CAPTRUST.) Wolfersberger asked for approval of the agenda. Motion Martin, seconded by Rabbitt. On a voice vote, motion carried. Presented minutes of the regular meeting from October 24, 2023. Motion Martin, seconded by Todd to approve the regular meeting minutes from October 24, 2023. On a voice vote, motion carried. Bank Summary of Assets & Expense Reports: As of 10/31/2023, the market value of the portfolio was $156,959,605.04, a loss of $2,930,773.58 from the 9/30/2023 balance. For the month of October, the following expenses were deducted: Expense Type Payee Amount Frequency Additional Details Investment Fees Loomis Sayles & Co 29,031.66 Quarterly 7/1/23-9/30/23 Total Investment Fees 29,031.66 Administrative Fee Loomis 76.59 Monthly 8/31/23-9/30/23 Consulting Services CAPTRUST 23,750.00 Quarterly 7/1/23-9/30/23 Administrative Fee Comerica Bank 11,878.88 Quarterly 7/1/23-9/30/23 Cash Management Fees Comerica Bank 628.45 Monthly 8/31/23-9/30/23 VanOverbeke, Michaud & Legal Fees Timmony, P.C. 1,849.20 As Needed Legislative Updates & EDRO Review MAPERS Fall Conference MAPERS 403.73 As Needed MAPERS Conf Hotel Charge Independent Medical Evaluations Medical Fees PC 2,412.50 As Needed Disability Exam Cost Actuarial Services Fee GRS 4,500.00 As Needed x3 EDRO calculations Total Admin. Fees 45,499.35 Motion Rabbitt, seconded by Martin to accept the financial reports and quarterly bank summaries submitted for October. On a voice vote, motion carried. pg. 1 Board Reports Chubinski – absent Martin – none Rabbitt – none Todd – none Wolfersberger – none Vardell – • New Firefighter hired on 10/30/23: o Collin Demankowski • New Firefighter hired on 9/20/23: o Andrew McElfresh o Terminated 9/29/23. A letter regarding his options for withdrawal was sent 10/6/23. o Update: Andrew returned all necessary paperwork 10/30/23, and a request was sent to Comerica 11/1/23 to issue him a lump-sum payout of contributions totaling $153.19. • Robert A. Miller, former Police Officer, has submitted his application for deferred service retirement benefits. He is eligible for retirement benefits as of 11/2/23. An actuarial calculation was submitted on 10/31/23. Resolution is below. • Iris Simpson, surviving spouse of Fire Dept retiree Larry Simpson, passed away 10/18/23: o Her 11/1/23 payment was returned and replaced with a pro-rated portion for 18 days in October. o This final payment of $876.65 was made on 11/15/23. • Updates to P&F webpage: o ‘Board Description and Board Members’ link at the top of the page. o Email and phone number contact info at the bottom of the page. o FOIA link added under the ‘Estimate Your Retirement’ section. • Question to the Board about retiree dollar amounts in minutes: We cannot publish a summary set of minutes that differs from the legal minutes. Dollar amounts can be included in the Admin Report that is given to the Board during the meeting, and then removed in the minutes. Dollar amounts would still need to remain in Resolutions. How would the Board like to proceed? o Decision from Board – leave dollar amounts in the minutes as they are and re- visit if there is ever a complaint in the future. • Question to the Board about scanning retiree records: If the Board decides to proceed with scanning in retiree records, IT has given an estimated cost for storage space of $500.00. The Board would also need to hire a temp from a temp agency to scan the files. How would the Board like to proceed? pg. 2  o Decision from Board – City Hall is supposed to get a new scanner that could potentially scan retiree records a lot faster than the machines we have currently. We will revisit this as an option once the new scanner is in place. • 2024 Meeting Calendar: o Vardell presented the 2024 Meeting Calendar to the Board. Motion Martin, seconded by Todd to accept the 2024 Meeting Calendar. On a voice vote, motion carried. • The following resolutions need approval: DAN R. WOLFE WHEREAS, the Board of Trustees is in receipt of an application for participation in the Deferred Retirement Option Plan (DROP) from Dan R. Wolfe requesting an effective retirement date of 9/29/23, and WHEREAS, Dan R. Wolfe is eligible for retirement based on his service credit 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, Dan R. Wolfe elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Dan R. Wolfe for participation in the DROP is approved, and RESOLVED, the DROP benefit for Dan R. Wolfe shall commence as of 9/29/2023, and RESOLVED, the gross monthly retirement benefit is $7,457.15 and shall be Dan R. Wolfe’s DROP benefit credited monthly to his DROP account and RESOLVED, Dan R. Wolfe’s participation in the DROP shall terminate on 9/28/2028. CHAD E. STUCK WHEREAS, the Board of Trustees is in receipt of an application for retirement from Chad E. Stuck requesting an effective retirement date of 1/25/22, and WHEREAS, Chad E. Stuck 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, Chad E. Stuck elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Chad E. Stuck for retirement is approved, and RESOLVED, the retirement benefit for Chad E. Stuck shall commence as of 12/1/23, and RESOLVED, the gross monthly benefit is $4,502.85 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $95,576.62 for benefits missed from 1/25/22- 10/31/23 was paid on 11/7/23 and the regular gross monthly benefit begins 12/1/23. pg. 3 ROBERT A. MILLER WHEREAS, the Board of Trustees is in receipt of an application for retirement from Robert A. Miller requesting an effective retirement date of 11/2/23, and WHEREAS, Robert A. Miller 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, Robert A. Miller elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Robert A. Miller for retirement is approved, and RESOLVED, the retirement benefit for Robert A. Miller shall commence as of 12/1/23, and RESOLVED, the gross monthly benefit is $2,320.48 subject to tax withholdings and any other elective deductions. JEFFERY CASE WHEREAS, the Board of Trustees is in receipt of an application for retirement from Jeffery Case requesting an effective retirement date of 7/15/23, and WHEREAS, Jeffery Case is eligible for retirement based on his service credit pursuant to Act 345 of the Public Acts of 1937, as amended, and retirement provisions of the union contract, and WHEREAS, the final actuarial calculations have been received, therefore be it RESOLVED, that the application of Jeffery Case for retirement is approved, and RESOLVED, the retirement benefit for Jeffery Case shall commence as of 7/15/23, and RESOLVED, the gross monthly benefit is $3,884.72 subject to tax withholdings and any other elective deductions. WHEREAS, the Board of Trustees is in receipt of an eligible domestic relations order (EDRO) for Jeffery Case and Jill Case, and WHEREAS, Jill Case, the alternate payee, is eligible for certain benefits pursuant to Public Act 46 of 1991, as amended, and WHEREAS, the EDRO has been accepted by the City of Battle Creek Police and Fire Retirement System Board of Trustees by resolution at its regular meeting on 9/15/2023, and WHEREAS, the final actuarial calculations have been received and paid for, therefore be it RESOLVED, the alternate payee EDRO benefit for Jill Case shall commence as of 10/1/23, and RESOLVED, the gross monthly EDRO benefit is $4,215.20 subject to tax withholdings. Motion Martin, seconded by Rabbitt to accept the DROP resolution for Dan Wolfe and the retirement resolution for Chad Stuck. On a voice vote, motion carried. pg. 4 Motion Rabbitt, seconded by Martin to accept the retirement resolution for Robert Miller and the retirement and EDRO resolution for Jeffery Case. On a voice vote, motion carried. New Business • Policy Review – Investment Policy o Policy was reviewed and no changes were made. • CAPTRUST: Tollas provided a Third Quarter investment report and an investment update for October: o Year-to-date, Large-Cap Stocks were up 13.1%, Small-Cap Stocks were up 2.5%. o Growth stocks continue to outperform value stocks. Technology and Energy sectors continue to perform well. o As of 9/30/23, interest rates have continued to rise. Average mortgage rate has risen to 7.31% (from 6.71% at 6/30/23.) o At the beginning of the quarter, the Market Value of the portfolio was $168,830,813. Ending market value as of 9/30/23 was $160,183,391. o At the end of the quarter, the overall pension plan was down 3.47%. Calendar year-to-date, the overall pension plan is up 6.20%. o P&F Fund PIMCO Low Duration still performed well relative to its objective. It is a less volatile fund and pairs well with Loomis. o As of 10/31/23, the total portfolio is down 2.25% for October, but up 3.82% Calendar Year-to-date. o As of 11/16/23, the market value of the portfolio was $165,798,849. Public Comment: none Closed session to discuss disability retirement application and disability retirement re- examination. Motion Martin, seconded by Todd to go into closed session. On a voice vote, motion carried. Motion Martin, seconded by Todd to exit closed session. On a voice vote, motion carried. Next regular meeting: Thursday, December 21st at 1:30 PM Meeting adjourned at 2:15pm pg. 5 Respectfully submitted, Lily Vardell, Recording Secretary __________________________________ __________________________________ Board Member signature Board Member signature pg. 6