Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: FEBRUARY 20, 2024 CITY HALL, ROOM 302A TIME: 1:30 P.M. Present: Stan Chubinski, Jake Martin, Chris Rabbitt, Josita Todd, and Tammy Wolfersberger. Also Present: Lily Vardell (Police & Fire Pension Administrator), Jeremy Tollas (CAPTRUST), and Jill and Michael Wood (Public) Chair Chubinski asked for approval of the agenda. Motion Martin, seconded by Wolfersberger. On a voice vote, motion carried. Presented minutes of the regular meeting from January 17, 2024. Motion Rabbitt, seconded by Todd to approve the regular meeting minutes from January 17, 2024. On a voice vote, motion carried. Bank Summary of Assets & Expense Reports: As of 1/31/2024, the market value of the portfolio was $175,389,127.56, a gain of $898,105.61 from the 12/31/2023 balance. For the month of January, the following expenses were deducted: Expense Type Payee Amount Frequency Additional Details Investment Fees Loomis Sayles & Co 30,873.96 Quarterly 10/1/23-12/31/23 Total Investment Fees 30,873.96 2023 Actuarial Valuation-Final Actuarial Services Fee Gabriel Roeder Smith & Co. 1,650.00 Annually Pmt Consulting Services CAPTRUST 23,750.00 Quarterly 10/1/23-12/31/23 Administrative Fee Comerica Bank 12,676.02 Quarterly 10/1/23-12/31/23 Cash Management Fees Comerica Bank 583.87 Monthly 11/30/23-12/31/23 Misc Fees Comerica Bank 10.00 As Needed x1 Class Action Handling Fee Total Admin. Fees 38,669.89 Motion Rabbitt, seconded by Wolfersberger to accept the financial reports and quarterly bank summaries submitted for January. On a voice vote, motion carried. pg. 1 Board Reports Chubinski – none Martin – none Rabbitt – none Todd – none Wolfersberger – none Vardell – • One new firefighter hired 2/19/24: o Daniel Kersting • Zachary Burgess, Police Officer, was rehired on 5/15/23. He had previously withdrawn his member contributions. On 2/6/24, we received a check from Zack in the amount of $28,663.92 to pay back his previously withdrawn member contributions plus interest. The breakdown of this check is as follows: o $15,375.74 to reinstate his after tax contributions. o $10,756.57 to reinstate his pre-tax contributions. o $2,531.61 for interest owed to the P&F Pension Fund. o Zack’s prior service credit of 5 years, 3 months, and 20 days will now count towards his 25 years of service. • Two Police Department employees have submitted their retirement applications: o Andrew Horn, Police Officer, has requested a retirement date effective 3/23/24. On his date of retirement, he will have 25 years and 14 days of service. o Aaron E. Smith, Police Detective, has requested a retirement date effective 3/10/24. On his date of retirement, he will 25 years and 1 day of service. New Business • Budget – 6 month review o The Board reviewed the budget so far for Fiscal Year 2024 (7/1/23-12/31/23.) No adjustments need to be made to the budget at this time. Motion Wolfersberger, seconded by Martin to accept the six-month review of the Budget. On a voice vote, motion carried. • Policy Review – P&F Pension Handbook o The Board completed their annual review of the P&F Pension Handbook. The only changes made were grammatical corrections. Motion Martin, seconded by Todd to accept the grammatical revisions to the P&F Pension Handbook. On a voice vote, motion carried. • Policy Review – Domestic Relations Order o The Board completed their annual review of the Domestic Relations Order Policy. The only changes made were grammatical corrections. pg. 2 Motion Martin, seconded by Wolfersberger to accept the grammatical revisions to the Domestic Relations Order Policy. On a voice vote, motion carried. • CAPTRUST: Tollas provided a 2023 4th Quarter/year-end investment update: o Year-to-date for 2023, U.S. Large-Cap Stocks were up 26.3%, International Stocks were up 18.9%, U.S. Small-Cap Stocks were up 16.9%, and bonds were up 5.5%. Many substantial gains occurred in the 4th quarter. o For 2023, Growth Performance outperformed Value Performance, with Growth up 42.7% and Value up 11.5%. o Technology, Consumer Discretionary, and Communication Services sectors performed the best in 2023. o At the end of the 4th Quarter, interest rates declined for the first time in a while. Mortgage rates lowered from 7.31% at the end of the 3rd Quarter to 6.61% at the end of the 4th Quarter. o For 2023, there were positive returns for all Asset Classes, with Cash at a 5.01% return. o For the 4th Quarter, the Beginning Market Value of the portfolio was $160,183,391 with an ending value of $174,831,887. o For 2023, the Beginning Market Value of the portfolio was $155,476,934 with and ending value of $174,831,887. o For the 4th Quarter, the total portfolio was up 9.55%. For 2023, the total portfolio was up 16.35%. • CAPTRUST: Tollas provided a January investment update: o For the month of January, the Beginning Market Value of the portfolio was $174,831,887 with an ending value of $175,723,323. o For January, the total portfolio was up 0.40%. o As of 2/14/24, the Market Value of the portfolio was at $178,912,055. Public Comment: none Closed session to discuss disability retirement application. Motion Wolfersberger, seconded by Martin to go into closed session. On a voice vote, motion carried. Motion Martin, seconded by Todd to accept the duty-disability retirement application. On a voice vote, motion carried. Motion Wolfersberger, seconded by Todd to exit closed session. On a voice vote, motion carried. Next regular meeting: Monday, March 18th at 1:30 PM. pg. 3 Meeting adjourned at 2:19pm Respectfully submitted, Lily Vardell, Recording Secretary __________________________________ __________________________________ Board Member signature Board Member signature pg. 4