Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: JULY 29, 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), and Justin Cohen (CAPTRUST). Chair Chubinski asked for approval of the agenda. Motion Todd, seconded by Wolfersberger. On a voice vote, motion carried. Presented minutes of the regular meeting from May 27,2025. Motion Todd, seconded by Martin to approve the regular meeting minutes from May 27, 2025. On a voice vote, motion carried. Bank Summary of Assets & Expense Reports for May & June: As of 5/31/2025, the market value of the portfolio was $193,996,958.84, a gain of $6,050,048.48 from the 4/30/2025 balance. For the month of May, the following expenses were deducted: Expense Type Payee Amount Frequency Additional Details Actuarial Services Fee Gabriel Roeder Smith & Co. 1,400.00 As Needed Military Purchase Calc Cash Management Fees Loomis 107.38 Monthly 3/31/25-4/30/25 Cash Management Fees Comerica Bank 762.12 Monthly 3/31/25-4/30/25 Misc Fees Loomis 10.00 As Needed x1 Class Action Handling Fee Training/Travel MAPERS 519.93 As Needed MAPERS Reimb Medical Fees DayOne 81.05 One Time Disability Ret Med Records Total Admin. Fees 2,880.48 As of 6/30/2025, the market value of the portfolio was $200,268,045.58, a gain of $6,271,086.74 from the 5/31/2025 balance. For the month of June, the following expenses were deducted: Expense Type Payee Amount Frequency Additional Details Cash Management Fees Loomis 179.66 Monthly 4/30/25-5/31/25 Cash Management Fees Comerica Bank 746.25 Monthly 4/30/25-5/31/25 Total Admin. Fees 925.91 pg. 1 Motion Martin, seconded by Todd to accept the financial reports and quarterly bank summaries submitted for May and June. On a voice vote, motion carried. Board Reports Chubinski – none Martin – none Rabbitt – absent Todd – attended MAPERS Spring Conference and presented her report:  One session was dedicated to the outlook for MI businesses and highlighting the potential current and future impacts to the economy. The main themes discussed throughout the conference were tariffs, artificial intelligence, and stock concentration. Overall, a very informative conference. Wolfersberger – none Vardell –  Three new police officers hired on 6/6/25: o Abygail Gammons o Bryan Venton o Austin Dees-Hollis  Four new firefighters hired on 7/14/25: o Alexander Trim o Christian Mulholland o Alexander Bonk o Thomas Doyle  Thomas Burke, Police Officer, transitioned to a Firefighter position on 7/14/25: o According to the Board’s attorney, since he is still a ‘part of the same Retirement System, he will receive one pension benefit, and the total of all his credited years of service would accrue for one pension benefit.’  Brandon Hultink, duty disability retiree, turned age 55 on 6/4/25 and has transition to a regular retirement benefit. Resolution is below.  DROP statements and Deferred Benefit statements were mailed out 6/25/25.  Isaac Yonkers, former Police Officer who terminated 5/30/20, withdrew his contributions totaling $14,991.36 on 7/2/25.  Garrett Day, former Police Officer who terminated 7/3/22, withdrew his contributions totaling $32,016.94 on 7/17/25.  Firefighter Josh Hagen began the process of purchasing 12 months of military time. His request will be presented to Commission at their 8/5/25 meeting.  Military service purchase for Trevor Hegner: o On 6/3/25, Resolution 150 was accepted by City Commission to approve the purchase of 12 months of military time for Firefighter Trevor Hegner. o The actuarial cost of this purchase is $13,695.57, with Trevor’s cost being $8,581.75. o On 4/29/25, Trevor paid $1,400.00 to cover the actuarial calculation. pg. 2  o On 7/7/25, we received a rollover check from MissionSquare retirement in the amount of $8,581.75 to pay for Trevor’s military time purchase. This check was deposited into the Police & Fire Pension fund as an employee contribution.  Larry Roberts, Fire Dept retiree, passed away 6/16/25: o His 7/1/25 pension benefit was reversed and replaced with a prorated benefit of $1,567.69 (for benefits earned 6/1/25-6/16/25.) o Surviving spouse Jane Roberts received a 7/1/25 prorated of $823.04 (for benefits earned 6/17/25-6/30/25.) o Jane’s regular benefit payments begin 8/1/25 in the amount of $1,763.65.  GRS sent new fee schedule for Fiscal Year 2026. Changes: o Annual Actuarial Valuation increased from $12,900 to $13,300 o Annual GASB report increased from $8,300 to $8,500 o Additional benefit calculations increased from $360 to $375 o All other fees remained the same (EDRO/DRO, military purchase, etc.) RESOLUTION FOR BRANDON HULTINK DUTY DISABILTY RETIREMENT BENEFIT WHEREAS, the Board of Trustees received an application for duty disability retirement from Brandon Hultink on February 27, 2006, and WHEREAS, it was determined by independent medical examination that Brandon Hultink shall be deemed unable to perform the duties of Patrol Sgt making him eligible for retirement pursuant to Section 6(2)(e), Act 345 of the Public Acts of 1937, as amended, and WHEREAS, the final actuarial calculation has been received, therefore be it RESOLVED, that the application of Brandon Hultink for duty disability retirement is approved, and RESOLVED, the retirement benefit for Brandon Hultink of 50% of his FAC shall commence as of 2/27/2006, and RESOLVED, the gross monthly benefit payable to age 55 is $2,688.47, subject to tax withholdings and any other elective deductions, and RESOLVED, the gross monthly benefit payable at age 55 and thereafter is $3,981.55, calculated at a 3% multiplier for 25 years of service and a 1% multiplier for 9.1592 years of service to reach 55 years of age. Motion Rabbitt, seconded by Martin to approve the Duty Disability Retirement resolution for Brandon Hultink. On a voice vote, motion carried. New Business  Fiscal Year 2026 Budget Review: o The Board reviewed the budget for fiscal year 7/1/25-6/30/26. o 401h benefit update from Kuhn – this is a closed plan, so normally the budget for 401h decreases year over year. However, medical premiums increased in calendar year 2025, causing a higher 401h expense. This expense is factored into pg. 3  the P&F millage calculation. Comment from Chubinski: When this 401h plan was originally created, the City Commission agreed to fund this benefit up to a cost of $500,000.00 per year. o Administrator expense update from Kuhn – Budget reflects an administrator expense increase. This brings the administrator cost back to the rate it was at in 2022. Responsibilities for the administrator role have increased over time due to changes in plan benefits, addition of the DROP, and increased numbers of regular and disability retirements. Vardell will continue to track her time each fiscal year to monitor hours worked in this role. Motion Wolfersberger, seconded by Martin, to approve the Fiscal Year 2026 budget. On a voice vote, motion carried.  CAPTRUST: Cohen provided an investment update for June, 2025: o Across the board, positive market returns. Year-to-date, S&P 500 was up 6.20%, Russell 2000 was down 1.79%, Bond index was up 4.02%. o For June, the beginning market value of the portfolio was $194,462,902, with an ending value of $200,685,335. Calendar year-to-date, the beginning market value of the portfolio was $191,543,766, with an ending value of $200,685,335. o As of 6/30/25, the total portfolio was up 3.65%. o Duration of the total portfolio is typically 5 years or less. Loomis is typically 6 years or less. Pimco is typically 1-3 years. o As of 7/22/2025, the market value of the portfolio was $201,573,777. o CAPTRUST agreement: P&F plan is still on a legacy Plante Moran agreement from when the plan switched from Plante Moran to CAPTRUST. CAPTRUST will provide a new agreement for the Board to review. Board will review the agreement and the agreement will be discussed at the next Board meeting. Public Comment – none Next regular meeting: Monday, August 25th at 1:30pm. Meeting adjourned at 2:13pm Respectfully submitted, Lily Vardell, Recording Secretary __________________________________ __________________________________ Board Member signature Board Member signature pg. 4