Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: MARCH 18, 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), Justin Cohen (CAPTRUST), Aaron Kuhn (Revenue Services Director), Amanda Woodin (Assistant Revenue Services Director), and Derek Henning (GRS‐attended virtually) Chair Chubinski asked for approval of the agenda. Motion Rabbitt, seconded by Wolfersberger. On a voice vote, motion carried. Henning gave the GRS annual presentation of the Actuarial Valuation for the fiscal year ending 6/30/23:  The Pension Plan saw an increase in 20 active members in Fiscal Year 2023, which caused payroll to increase for the year. This was the cause for the Percent of Payroll Contribution rate increasing from 16.28% for Fiscal Year 2022 to 19.96% for Fiscal Year 2023.  The overall Funded Ratio of the Pension Plan remained steady for Fiscal Year 2023 at 74.20%.  The Recognized Rate of Return for Fiscal Year 2023 is 5.86%, up from 5.49% for Fiscal Year 2022. The assumed Rate of Return is still at 6.25%.  The computed City contribution rate as of 6/30/2022 was 41.34%. The computed City contribution rate as of 6/30/23 was 38.28%.  GRS is recommending that the Board update the option factor used to calculate optional forms of payment (anything other than a Straight‐Life benefit.) The current option factors are based on 7% interest and 1983 Mortality Tables. GRS will send additional information to the Board outlining this potential change. Presented minutes of the regular meeting from February 20, 2024. Motion Rabbitt, seconded by Todd to approve the regular meeting minutes from February 20, 2024. On a voice vote, motion carried. Bank Summary of Assets & Expense Reports: As of 2/29/2024, the market value of the portfolio was $180,833,870.15, a gain of $5,444,742.59 from the 1/31/2024 balance. For the month of February, the following expenses were deducted: pg. 1  Expense Type Payee Amount Frequency Additional Details Cash Management Fees Loomis 98.51 Monthly 12/31/23‐1/31/24 Cash Management Comerica Fees Bank 521.86 Monthly 12/31/23‐1/31/24 Total Admin. Fees 620.37 Motion Martin, seconded by Todd to accept the financial reports and quarterly bank summaries submitted for February. On a voice vote, motion carried. Board Reports Chubinski – none Martin – none Rabbitt –  The new contract for the POLC NON SUP union was agreed upon by the Union and the City and will be sent to Commission for approval. Todd – none Wolfersberger – none Vardell –  Jasmine McLemore, Police Officer, terminated 2/14/24. o A letter regarding her options for withdrawal was sent 2/22/24.  David Wuis, Firefighter, terminated 2/26/24. o A letter regarding his options for withdrawal was sent 3/8/24.  Caleb Skaggs, Police Officer, terminated 2/19/24. o A letter regarding his options for withdrawal was sent 3/8/24.  One employee has submitted an application to enter the DROP: o Michele Hughey, Battalion Chief, has submitted her application for entering the DROP effective 4/6/24. Upon entering the DROP, she will have 25 years and 1 day of service. New Business  Policy Review – Purchase of Military Time o The Board completed their annual review of the Purchase of Military Time policy. No changes were made.  CAPTRUST: Tollas & Cohen provided a February investment update: o As of 2/29/24, U.S. Large‐Cap Stocks up 5.34%, Year‐to‐Date up 7.11%. U.S. Small‐ Cap Stocks up 5.65%, Year‐to‐Date up 1.54%. U.S. Bonds down 1.41%, Year‐to‐ Date down 1.68%. o For February, the beginning market value of the Portfolio was $175,723,323. The ending market value was $181,119,887. Calendar year‐to‐date, the beginning pg. 2  market value of the Portfolio was $174,831,887 with the ending market value at $181,119,887. o For the month, the total Portfolio was up 3.21%. Calendar year‐to‐date, the total Portfolio was up 3.62%. o As of 3/15/24, the total portfolio value was at $183,040,521. o CAPTRUST is recommending rebalancing at this time. Proposing to sell $8.5M out of Equities, rebalance cash by buying $3.5M, and buying $5M in Loomis Fixed Income. This will put the P&F Pension Plan back in line with its target allocations. Motion Rabbitt, seconded by Wolfersberger to accept CAPTRUST’s proposed re‐balancing schedule. On a voice vote, motion carried. Public Comment: none Next regular meeting: Monday, April 15th at 10:00 AM. Meeting adjourned at 2:23pm Respectfully submitted, Lily Vardell, Recording Secretary __________________________________ __________________________________ Board Member signature Board Member signature pg. 3