Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: MAY 13, 2024 CITY HALL, ROOM 302A TIME: 10:30 A.M. Present: Stan Chubinski, Chris Rabbitt, Josita Todd (attended virtually), and Tammy Wolfersberger. Also Present: Lily Vardell (Police & Fire Pension Administrator) and Jeremy Tollas (CAPTRUST). Chair Chubinski asked for approval of the agenda. Motion Martin, seconded by Rabbitt. On a voice vote, motion carried. Presented minutes of the regular meeting from April 15, 2024. Motion Rabbitt, seconded by Wolfersberger to approve the regular meeting minutes from April 15, 2024. On a voice vote, motion carried. Bank Summary of Assets & Expense Reports: As of 4/30/2024, the market value of the portfolio was $178,131,523.69, a loss of $6,854,641.46 from the 3/31/2024 balance. For the month of April, the following expenses were deducted: Expense Type Payee Amount Frequency Additional Details Investment Fees Loomis Sayles & Co 34,465.85 Quarterly 1/1/24‐3/31/24 Total Investment Fees 34,465.85 Actuarial Services Fee Gabriel Roeder Smith & Co. 1,550.00 As Needed EDRO calculation Cash Management Fees Loomis 150.23 Monthly 2/29/24‐3/31/24 Consulting Services CAPTRUST 23,750.00 Quarterly 1/1/24‐3/31/24 Cash Management Fees Comerica Bank 536.88 Monthly 2/29/24‐3/31/24 Total Admin. Fees 25,987.11 Motion Wolfersberger, seconded by Rabbitt to accept the financial reports and quarterly bank summaries submitted for April. On a voice vote, motion carried. Board Reports Chubinski – none Martin – none Rabbitt – none Todd – none Wolfersberger – none pg. 1 Vardell –  Jasmine McLemore, Police Officer, terminated 2/14/24. o A letter regarding her options for withdrawal was sent 2/22/24. o Update: Jasmine withdrew her contributions totaling $8,624.14 on 4/18/24.  Michele Hughey, Battalion Chief, entered the DROP effective 4/6/24. Benefit calculation request submitted to GRS 4/22/24.  Holly Vansickle, Fire Lieutenant, entered the DROP effective 4/28/24. Benefit calculation request submitted to GRS 5/8/24.  Elwood Priess, Police Dept retiree, passed away 4/22/2024. o His 5/1/24 pension payment was reversed and replaced with a partial payment of $1,701.01 (for benefits earned 4/1/24‐4/22/24.) o There is no surviving spouse.  Marilyn Frost, surviving spouse of deceased Fire Dept retiree Michael Pennock, passed away 4/9/24. o Her 5/1/24 pension payment was reversed and replaced with a partial payment of $475.43 (for benefits earned 4/1/24‐4/9/24.)  Four resolutions to approve below: ANDREW HORN, POLICE OFFICER – RETIREMENT WHEREAS, the Board of Trustees is in receipt of an application for retirement from Andrew M. Horn requesting an effective retirement date of 3/23/24, and WHEREAS, Andrew M. Horn 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, Andrew M. Horn elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Andrew M. Horn for retirement is approved, and RESOLVED, the retirement benefit for Andrew M. Horn shall commence as of 5/1/24, and RESOLVED, the gross monthly benefit is $5,725.74 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $1,662.31 for 9 days in March and the regular gross monthly benefit shall begin 5/1/24. AARON SMITH, POLICE DETECTIVE – RETIREMENT WHEREAS, the Board of Trustees is in receipt of an application for retirement from Aaron E. Smith requesting an effective retirement date of 3/10/24, and WHEREAS, Aaron E. Smith 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, pg. 2 WHEREAS, Aaron E. Smith elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Aaron E. Smith for retirement is approved, and RESOLVED, the retirement benefit for Aaron E. Smith shall commence as of 5/1/24, and RESOLVED, the gross monthly benefit is $5,068.91 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $3,597.29 for 22 days in March and the regular gross monthly benefit shall begin on 5/1/24. MICHAEL BRADLEY, RETIRED POLICE OFFICER ‐ DRO WHEREAS, the Board of Trustees is in receipt of a domestic relations order (DRO) for Michael Bradley and Tammy Bradley, and WHEREAS, Tammy Bradley, the alternate payee, is eligible for certain benefits pursuant to Public Act 46 of 1991, as amended, and WHEREAS, the DRO 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 DRO benefit for Tammy Bradley shall commence as of 10/1/23, and RESOLVED, the gross monthly DRO benefit for Tammy Bradley is $3,505.18 subject to tax withholdings, and RESOLVED, the reduced gross monthly benefit for Michael Bradley is $4,223.99 subject to tax withholdings. TROY GILLEYLEN, RETIRED DEPUTY POLICE CHIEF – EDRO & RETIREMENT WHEREAS, the Board of Trustees is in receipt of an application for retirement from Troy Gilleylen requesting an effective retirement date of 9/2/23, and WHEREAS, Troy Gilleylen 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 Troy Gilleylen for retirement is approved, and RESOLVED, the retirement benefit for Troy Gilleylen shall commence as of 10/1/23, and RESOLVED, the gross monthly benefit is $6,473.02 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 Troy Gilleylen and Lori Stayner, and pg. 3 WHEREAS, Lori Stayner, 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 4/6/2010, and WHEREAS, the final actuarial calculations have been received and paid for, therefore be it RESOLVED, the alternate payee EDRO benefit for Lori Stayner shall commence as of 10/1/23, and RESOLVED, the gross monthly EDRO benefit is $1,088.65 subject to tax withholdings. Motion Rabbitt, seconded by Martin to approve the retirement resolution for Andrew Horn, the retirement resolution for Aaron Smith, the Domestic Relations Order resolution for Michael Bradley, and the retirement and Eligible Domestic Relations Order for Troy Gilleylen. On a voice vote, motion carried. New Business  Policy review – Correction of Errors, Over or Underpayments: o The Board completed the annual review of this policy and no changes were made. Motion Martin, seconded by Wolfersberger to accept the annual review of the Correction of Errors, Over or Underpayments policy with no changes made. On a voice vote, motion carried.  CAPTRUST: Tollas provided a quarterly investment update for the quarter ending 3/31/24: o U.S. Bonds were down 0.8% for Quarter 1 of 2024, compared to being up 5.5% for 2023. o U.S. Small Cap Stocks were up 5.2% for Quarter 1 of 2024, compared to being up 16.9% for 2023. o U.S. Large Cap Stocks were up 10.6% for Quarter 1 of 2024, compared to being up 26.3% for 2023. o Growth stocks continue to outperform value stocks. o The leading sectors in performance continue to be Technology and Communication Services. o There was a slight increase in interest rates in Quarter 1. Mortgage rates increased from 6.61% last quarter to 6.97%. o As of 3/31/24, the beginning market value of the portfolio was $174,831,887, with an ending market value of $185,349,150. o Over the last three months, the total portfolio performance was up 6.27%, exceeding the total portfolio benchmark of 5.44%.  CAPTRUST: Tollas provided an April investment update: pg. 4  o April has been a difficult month. The beginning market value of the portfolio was $185,349,150 with an ending market value of $178,506,519. o As of 4/30/24, the total portfolio was down 3.25%. o May has been a better month. As of 5/8/24, the market value of the portfolio was at $182,627,478. Public Comment: none Closed session to discuss non‐duty disability retirement re‐examination. Motion Martin, seconded by Rabbitt to go into closed session. On a voice vote, motion carried. Motion Todd, seconded by Wolfersberger to accept the non‐duty disability retirement re‐ examination. On a voice vote, motion carried. Motion Rabbitt, seconded by Todd to exit closed session. On a voice vote, motion carried. Next regular meeting: Monday, June 3rd at 1:30pm. Meeting adjourned at 11:06am Respectfully submitted, Lily Vardell, Recording Secretary __________________________________ __________________________________ Board Member signature Board Member signature pg. 5