Police and Fire Retirement Board

Item 4. September 22, 2022 CENTER LINE POLICE & FIRE RETIREMENT COMMISSION MINUTES REGULAR MEETING August 9, 2022 Page 1 of 6 The regular meeting of the Center Line Police and Fire Retirement Commission was called to order at 2:34 p.m. by Chairperson Stys. Members Present: Richard Stys, Gregory Suma, Jorge Bermudez and Gregory Pearl who entered at 2:39 p.m. Members Absent: Bernadette Helkowski. Also, Present: None. AGENDA ITEM 2A. – Approval of the Agenda: A. Motion by Trustee Suma to approve the agenda was supported by Trustee Bermudez. AYES: 3 NAYS: None Motion carried 3 - 0. ABSENT: Pearl and Helkowski. AGENDA ITEM 3 – Public Comment Seeing there was no one in the audience this item was closed. AGENDA ITEM 4 – Approval of the minutes A. Approval of the Regular Meeting minutes held on July 12, 2022. Motion by Trustee Suma to approve the July 12, 2022 minutes supported by Trustee Bermudez. AYES: 3 NAYS: None Motion carried 3 - 0. ABSENT: Pearl and Helkowski. AGENDA ITEM 5 – Remembrances: A. None. AGENDA ITEM 6 – Presentations:  Item 4. September 22, 2022 CENTER LINE POLICE & FIRE RETIREMENT COMMISSION MINUTES REGULAR MEETING August 9, 2022 Page 2 of 6 A. Shana Neeson from Gabriel, Roeder, Smith & Co. presenting the Sixtieth Annual Actuarial Valuation dated: December 31, 2021. Mrs. Neeson said the goal of the plan is collect contributions over a period of time that will meets its annual obligations currently and into the future. Contributions come from active members, city contributions and investment income. The report is completed annually to determine the contributions for the next fiscal year. The first cost is the “Normal cost” which is the current year of service for active members future benefits. The second piece is the cost for the unfunded liability which is being amortized over a fourteen period. The recommended city contribution is based upon data submitted by the City on active members and retired members, plan provisions and the actuarial assumptions. The actuarial assumptions are reviewed about every five years. The plan has forty-six individuals receiving a pension or survivor benefit at an annual expense nearly $ 1.4 million. In 1997 there were thirty-two recipients receiving a benefit. As of December 31, 2021 there were sixteen active members contributing to the Retirement system with an active payroll over $ 1.5 mil. Average age was 40.7 with 8.5 years of service. The majority of the active members have less then 15 years of service. The Trust had nearly $ 14 mil of assets at January 1, 2022 and at December 31, 2021 the plan had assets of about $ 15.9 mil. Mrs. Neeson went into detail about the funding value of the plan assets where gains and losses are “smoothed” over a four-year time frame. This reduces the volatility of the plan assets from year to year. Mrs. Neeson asked the Board to turn to tab C 1. This page lists the benefits provided by the plan and the qualifications needed to earn the benefits. Age and years of service are an example. Mrs. Neeson did mention the two tiers of benefits. Those hired prior to 2012 and those hired after 2012. Mrs. Neeson did mention that Trustee Suma conveyed to her that the POAM and COAM unions agreed to contractual language that will impact the 2022 Actuarial Valuation. As of December 31, 2021 the actuarially unfunded liability is $ 20.7 mil and the funded value is $ 14.7 mil. On a funding valuation the plan is 69.30% funded. On a market valuation the plan is 76.80% funded. Mrs. Neeson talked about the contribution rate development. The normal cost contributed by the city is 22.30% of payroll, employees’ contribution of 6.92% for a net normal cost of 14.71%. For Fiscal Year 2023 an annual contribution of  Item 4. September 22, 2022 CENTER LINE POLICE & FIRE RETIREMENT COMMISSION MINUTES REGULAR MEETING August 9, 2022 Page 3 of 6 $ 941,866.00 is required. For Fiscal Year 2024 the annual contribution will be $ 872,464.00. Trustee Suma made a motion to adopt the recommendations from Gabriel, Roeder, Smith and Co. which was seconded by Trustee Pearl. AYES: 4 NAYS: None Motion carried 4 - 0. ABSENT: Helkowski. B. Timothy Brice, Morgan Stanley Graystone Group discussion on: i. On the Markets for August 2022 – That Was Easy? ii. Money Managers performances through June 30, 2022. iii. Market value as of August 5, 2022 $ 12,573,595.21. With Mr. Brice not being able to attend today’s meeting, Trustee Suma entertained a motion to table this item to the September 13, 2022 monthly meeting. It was seconded by Trustee Bermudez. AYES: 4 NAYS: None Motion carried 4 - 0. ABSENT: Helkowski. AGENDA ITEM 7 - For Your Information: A. Summary Annual Report for the City of Center Line Police and Fire Retirement System as of December 31, 2021. Trustee Suma said this is a condensed version of what the actuarial valuation report. It is required by law to be posted to the City’s website. Trustee Suma mad the motion to approve and have it posted to the City’s website. It was seconded by Trustee Bermudez. AYES: 4 NAYS: None Motion carried 4 - 0. ABSENT: Helkowski. B. Story from Route Fifty ~ State and Local Pensions Post Worst Losses since Great Recession by Liz Ramer dated: August 2, 2022.  Item 4. September 22, 2022 CENTER LINE POLICE & FIRE RETIREMENT COMMISSION MINUTES REGULAR MEETING August 9, 2022 Page 4 of 6 Trustee Suma added this item to let the Board know how bad other retirement systems Performed through the end of June 30, 2022. Public pension plans lost anywhere from 7.00% to 10.00% for the fiscal year ending June 30, 2022 but for the six months ending June 30, 2022 the stock markets have lost 20.00% wiping out most of the gains in 2021. Trustee Suma made a motion to receive and file which was seconded by Trustee Bermudez. AYES: 4 NAYS: None Motion carried 4 - 0. ABSENT: Helkowski. AGENDA ITEM 8 – Old Business: A. None. AGENDA ITEM 9 – New Business: A. MAPERS 2022 FALL CONFERENCE – Saturday, September 17, 2022 through Tuesday September 20, 2022 at The Grand Hotel, Mackinaw Island, MI. A motion by Trustee Suma to allow any member who meets the requirements in our travel policy to be allowed to attend the MAPERS conference was seconded by Trustee Pearl. AYES: 4 NAYS: None Motion carried 4 - 0. ABSENT: Helkowski. AGENDA ITEM 10 – Retirements: A. None. AGENDA ITEM 11 – Annuity Withdrawals: A. None. AGENDA ITEM 12 – Approval of Pension Figures: A. None.  Item 4. September 22, 2022 CENTER LINE POLICE & FIRE RETIREMENT COMMISSION MINUTES REGULAR MEETING August 9, 2022 Page 5 of 6 AGENDA ITEM 13 – Vouchers: A. July 25, 2022 pensions paid: Pay Report 469 ~ $ 128,179.76. A motion by Trustee Pearl to pay the July 25, 2022 pensions was seconded by Trustee Bermudez. AYES: 4 NAYS: None Motion carried 4 - 0. ABSENT: Helkowski. B. Second Quarter 2022 Money manager fees ~ April 2022 - $ 2,601.76, May 2022 - $ 2,629.13 June 2022 - $ 2,404.89, Total: $ 7,635.78. A motion by Trustee Suma to pay the money manager fees was seconded by Trustee Bermudez. AYES: 4 NAYS: None Motion carried 4 - 0. ABSENT: Helkowski. C. Graystone Consulting Second Qtr. 2022 Consulting fees Invoice # 10062022189 Dated: July 8, 2022 ~ $ 14,878.05. A motion by Trustee Pearl to pay the Graystone Consulting fees was seconded by Trustee Bermudez. AYES: 4 NAYS: None Motion carried 4 - 0. ABSENT: Helkowski. 14. Commission Members Comments: Trustee Suma stated he sent a letter to Sean O’Donnell about returning his refunded contributions from his prior employment here. Mr. O’Donnell has returned his contributions and his prior service is now reinstated. Trustee Pearl stated that Mr. O’Donnell is trying to get service credit for his employment at the County. Trustee Suma said Mr. O’Donnell needs to speak to the retirement administrator at St. Clair County to see if they are a “Reciprocal retirement system”. If they are, then he would continue that service credit here.  Item 4. September 22, 2022 CENTER LINE POLICE & FIRE RETIREMENT COMMISSION MINUTES REGULAR MEETING August 9, 2022 Page 6 of 6 AGENDA ITEM 15 – Adjournment: As there was no further business to discuss, a motion by Trustee Suma and supported by Trustee Bermudez that the meeting be adjourned at 3:16 p.m. AYES: 4 NAYS: None Motion carried 4 - 0. ABSENT: Helkowski.