Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: MARCH 3, 2025 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), Aaron Kuhn (Revenue Services Director), Jeremy Tollas (CAPTRUST), Justin Cohen (CAPTRUST), and Derek Henning (GRS). Chair Chubinski asked for approval of the agenda. Motion Martin, seconded by Wolfersberger. On a voice vote, motion carried. Henning gave the GRS annual presentation of the Actuarial Valuation for the fiscal year ending 6/30/24:  The City portion of the contribution rate (expressed as a percent of payroll), lowered from 38.28% in 2024 to 37.52% in 2025. This percentage should not fluctuate much between years, so it is good that this percentage is stable.  Of this 38.28% contribution rate, 19.18% is the Amortization Payment for the Plan’s Unfunded Liability.  The Funded Ratio of the Plan has increased from 74.2% in 2023 to 77.5% in 2024.  The Recognized Rate of Return increased from 5.86% in 2023 to 7.25% in 2024. This is 1% more than the Plan’s Assumed Rate of Return of 6.25%.  The Derivation of Actuarial Gain (Loss) for 2024 was a 3.3% gain, compared to a 0.6% loss in 2023. Presented minutes of the regular meeting from January 27, 2025. Motion Todd, seconded by Martin to approve the regular meeting minutes from January 27, 2025. On a voice vote, motion carried. Bank Summary of Assets & Expense Reports for January: As of 1/31/2025, the market value of the portfolio was $195,861,821.74, a gain of $4,739,753.37 from the 12/31/2024 balance. For the month of January, the following expenses were deducted: Expense Type Payee Amount Frequency Additional Details Investment Fees Loomis Sayles & Co 35,178.64 Quarterly 10/1/24‐12/31/24 Total Investment Fees 35,178.64 pg. 1 Actuarial Services Fee Gabriel Roeder Smith & Co. 1,600.00 As Needed EDRO calculation Administrative Fee City of Battle Creek 3,300.00 Quarterly 7/1/24‐9/30/24 Cash Management Fees Loomis 100.22 Monthly 11/30/24‐12/31/24 Cash Management Fees Comerica Bank 1,008.89 Monthly 11/30/24‐12/31/24 Consulting Services CAPTRUST 23,750.00 Quarterly 10/1/24‐12/31/24 Administrative Fee Comerica Bank 11,018.36 Quarterly 9/30/24‐12/31/24 Administrative Fee Loomis 2,853.13 Quarterly 9/30/24‐12/31/24 Misc Fees Loomis 12.99 As Needed x2 Class Action Handling Fees Total Admin. Fees 43,643.59 Motion Martin, seconded by Wolfersberger to accept the financial reports and quarterly bank summaries submitted for January. On a voice vote, motion carried. Board Reports Chubinski – none Martin – none Rabbitt – none Todd – none Wolfersberger – none Vardell –  One resolution needs approval: CHAD FICKLE, POLICE SERGEANT – RETIREMENT WHEREAS, the Board of Trustees is in receipt of an application for retirement from Chad A. Fickle requesting an effective retirement date of 2/2/25, and WHEREAS, Chad A. Fickle 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, Chad A. Fickle elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Chad A. Fickle for retirement is approved, and RESOLVED, the retirement benefit for Chad A. Fickle shall commence as of 2/2/25, and RESOLVED, the gross monthly benefit is $10,619.93 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $10,240.65 for 27 days in February was paid on 3/1/25 and the regular gross monthly benefit shall begin 4/1/25. Motion Rabbitt, seconded by Martin to approve the retirement resolution for Chad Fickle. On a voice vote, motion carried. pg. 2 New Business  Annual Policy Review – P&F Pension Handbook: o The Board completed their annual review of the P&F Pension Handbook. No changes were made. Motion Martin, seconded by Rabbitt to accept the annual review of the P&F Pension Handbook with no changes made. On a voice vote, motion carried.  Annual Policy Review‐ Domestic Relations Order Policy: o The Board completed their annual review of the Domestic Relations Order Policy. No changes were made. Motion Rabbitt, seconded by Wolfersberger to accept the annual review of the Domestic Relations Order Policy with no changes made. On a voice vote, motion carried.  CAPTRUST: Tollas & Cohen provided an investment update for the Quarter Ending 12/31/24 (Q4): o No changes recommended to the Plan’s portfolio at this time. The expected rate of return is still around 6.5%, which is slightly higher than the 6.25% assumed rate of return used in the Actuarial Valuation. o For Calendar Year 2024, U.S. Large‐Cap Stocks were up 25%, U.S. Small‐Cap Stocks were up 11.5%, and U.S. Bonds were up 1.3%. o From a style‐perspective, growth continued to outperform value for 2024: Large‐Cap Growth was up 33.4% while Small‐Cap Value was up 8.1%. o For 2024, the beginning market value of the Portfolio was at $174,831,887, with a 2024 ending market value of $191,543,766. o For 2024, the total portfolio was up 12.63%. o As of 2/26/25, the market value of the portfolio was at $195,004,015. Public Comment ‐ none Next regular meeting: Friday, April 25th at 1:30pm. Meeting adjourned at 2:38pm Respectfully submitted, Lily Vardell, Recording Secretary __________________________________ __________________________________ Board Member signature Board Member signature pg. 3