03-08-2021CITY OF EDGEWATER
GENERAL EMPLOYEES' PENSION BOARD
QUARTERLY MEETING MINUTES
City Council Chambers
Monday, March 8, 2021, at 10:30am
TRUSTEES PRESENT: Brenda Dewees
Bridgette Vaissiere
Tyna Hilton
Dilena Talley
Tim Sopko
TRUSTEES ABSENT: None
OTHERS PRESENT: Bonni Jensen, Klausner, Kaufman, Jensen & Levinson (via phone)
Frank Wan, Burgess, Chambers & Associates
Chris Caputo, Integrity Fixed Income Management (via phone)
Doug Lozen, Foster & Foster
Michelle Rodriguez, Foster & Foster
EDUCATION SESSION: Bonni Jensen and Chris Caputo provided two education sessions for the trustees.
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Call to Order Brenda DeWees called the meeting to order at 10:31am.
Roll Call -As reflected above.
Public Comments None.
Approval of Minutes
a. December 14, 2020 Quarterly Meeting Minutes
The December 14. 2020. quarterly meeting minutes were approved, upon motion by Bridgette
Vaissiere and second by Dilena Talley; motion carried 5-0.
5. New Business -None.
6. Old Business None.
7. Reports
a. Foster & Foster, Doug Lozen, Plan Actuary
i. October 1, 2020 Actuarial Valuation Report
1. Doug Lozen reviewed the role of the plan actuary and commented funding
numbers for the plan would change each year based on the previous and
future expected plan experience. Doug Lozen commented the City's
required contribution decreased this year mainly because of a State
mandated change on mortality tables and an investment return of 7.94%
(actuarial asset basis) which exceeded the plan's 6.75% rate assumption.
Doug commented they would need to start thinking about lowering the
assumption rate in keeping a statewide trend.
2. Doug reviewed the history of the plan's funding status and commented it
had remained steady since 2015.
3. Bridgette Vaissiere asked what the average rate of assumption was for
other pension plans around the State and Frank Wan commented it was
currently 7.4% but trending downward.
4. Bridgette asked if the rate of assumption affected closed plans differently
and Doug commented the assumption rate was very important in closed
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plans because they were cash flow negative and investment losses had a
much bigger impact.
The Board voted to approve the October 1. 2020 Actuarial Valuation Report. upon motion by Tyna
Hilton and second by Bridgette Vaissiere; motion carried 5-0.
5. Frank Wan commented he agreed with the actuary's rate assumption
recommendation of 6.75%
The Board voted the Declaration of Returns for the Plan shall be 6.75% for the next year. the next
serval years. and the long-term. thereafter net of investment related expenses. upon motion by
Bridgette Vaissiere and second by Tim Sopko; motion carried 5-0.
b. Burgess, Chambers & Associates, Frank Wan, Investment Consultant
i. Quarterly Report as of December 31, 2020
1. Frank Wan reviewed factors that went into the decision to lower the plan's
rate assumption and commented since the life of the plan was well over 30
years, a long-term investment projection should be assumed.
2. Frank commented the market environment over the last quarter was driven
by big tech companies and the announcement of the vaccine rollout had
pushed the airline and restaurant industries to the forefront.
3. The market value of the plan as of December 31, 2020, was $14,016,017.
4. The fund's total gross returns for the quarter were 9.9%, outperforming the
policy benchmark of 7.6%. Trailing total fund gross returns for the 1, 3, and
5-year periods were 17.2%, 10.5% and 10.1 % respectively. Frank reviewed
the individual asset allocation of the plan.
5. Frank reviewed the plan's individual asset allocations and commented
American Core Realty was expected to collect 92% of all expected income.
Frank commented their international equity fund had a 20.1 % return and
even their fixed income category outperformed the market by far.
6. Brenda DeWees asked Frank to explain the FTSE Pension Discount Curve
handout. Frank explained it reflects the discount rate that could be used to
value liabilities and was simply used as a reference point.
c. Klausner, Kaufman, Jensen, and Levinson, Bonni Jensen, Plan Attorney
i. IRS 2021 Mileage Rate
1. Bonni Jensen advised the Board the IRS mileage rate for 2021 was $0.56
per mile.
ii. Missing Participant Memo
1. Bonni reviewed the memo that outlined a list of best practices for finding
missing participants that was put together by the Department of Labor.
Michelle Rodriguez commented there were still a few participants she had
not been able to contact. Brenda Dewees asked Michelle to send a list to
the trustees to see if they knew any of the missing participants.
iii. Registration and Use of E-Verify System
1. Bonni reviewed the new law which would require all public employers to
register their employees with the federal E-Verify System and added it had
been determined that public pension plans must comply. Michelle Rodriguez
advised the Board Foster & Foster was working to register all the service
providers they did business with and continue to maintain their status.
Brenda DeWees asked Michelle to provide the Board with a progress report
at their next meeting.
iv. Policy re: Contractual Provisions for Investment Managers
1. Bonni commented this policy contained all the information she would want to
be included in an investment contract and reviewed each provision for the
Board.
2. Bridgette Vaissiere asked if they needed to amend existing contracts, Bonni
stated this provision would only be applied prospectively.
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The Board voted to approve the policy as presented, upon motion by Bridgette Vaissiere and second
by Dilena Talley: motion carried 5-0.
8. Consent Agenda
a. Ratification of Warrants
i. Warrants #68 and #69
b. New invoices for payment approval
i. None
c. Fund Activity Report for December 8, 2020 through March 1, 2021
The Board approved the consent agenda as presented, upon motion by Tim Sopko and second by
Bridgette Vaissiere; motion carried 5-0.
9. Staff Reports, Discussion, and Action -None.
10. Trustee Reports, Discussion. and Action
a. Doug commented he would like to perform an actuarial study to determine the impact of
lowering the assumption rate. Doug commented the cost of the study would not exceed
$500.
The Board voted to approve the study as proposed by the actuary. upon motion by Tim Sopko and
second by Tyna Hilton. motion carried 5-0.
11. Adjournment -The meeting adjourned at 11 :52am.
12. Next Meeting -June 14, 2021, at 10:30am.
Respectfully submitted by:
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Date Approved by the Pension Board:
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