Loading...
06-10-2019CITY OF EDGEWATER FIREFIGHTERS' PENSION BOARD QUARTERLY MEETING MINUTES City Hall Council Chambers Monday, June 10, 2019 at 4:00pm TRUSTEES PRESENT: Herb Epstein Richard D. Calabrese Sr. Justin Nickels TRUSTEES ABSENT: David Blair Ron Hayward OTHERS PRESENT: Ken Harrison, Sugarman & Susskind John Thinnes, AndCo Consulting David Kelly, Bowen Hanes and Company Michelle Rodriguez, Foster & Foster Tracey Barlow, Retiree of the plan 1. Call to Order — Justin Nickels called the meeting to order at 4:06pm. 2. Roll Call — As reflected above. 3. Public Comments — None. 4. Approval of Minutes The March 11, 2019 quarterly meeting minutes were approved, upon motion by Herb Epstein and second from Richard Calabrese; motion carried 3-0. New Business a. New City Appointed Trustee i. Michelle Rodriguez advised the board that Ron Hayward was appointed by the City Commission at their meeting on April 1, 2019. Justin Nickels commented he knew Ron Hayward had previously served on the board and would bring knowledge and experience. b. Officer Elections i. Justin Nickels was nominated as Chairman and accepted the position. The board appointed Justin Nickels as Chairman, upon motion by Herb Epstein and second by Richard Calabrese; motion carried 3-0- c. The board agreed by consensus to table the vote for the position of secretary until the next meeting. 6. Old Business — None. 7. Reports a. Bowen Hanes investment, David Kelly, Investment Manager i. Investment Summary, March 31, 2019 1. David Kelly reviewed the current market environment and commented being heavy in stocks and light in fixed income had made the plan successful the last few years. 2. David Kelly commented investment decisions should not be a knee jerk reaction to bad returns and felt the current political environment would settle. 3. David Kelly reviewed the report as of June 5, 2019, including the investment holdings and returns_ 4. The market value as of June 5, 2019, was $14,475,394.24. The total portfolio return from September 30, 2018 to June 5, 2019, was -0.5%. Since inception (6120107), the plan assets had doubled. Justin Nickels asked about the strong bond returns and David Kelly attributed it to inflation adjustment. AndCo, John Thinnes, Investment Consultant i. March 31, 2019, Quarterly Report 1. John Thinnes reviewed the quarterly report through March 31, 2019. The 5 -year number beat 97% of the thousands of peer plans. Despite the last couple of quarters, the 5 -year number was strong. Because of the 4 -year smoothing from the actuary, a bad number would be dropping off and would reflect positively in the actuarial valuation. 2. The market value assets as of March 31, 2019, were $14,341,777. 3. The quarter -to -date total fund gross performance was 9.39%, slightly overperforming the policy benchmark of 9.38%. The 1, 3, and 5 -year trailing returns were 7.34°/x, 10.49%, and 7.55%, respectively. Since inception (1211101), the return was 6.31%, slightly underperforming the benchmark of 6.64%. 4. John Thinnes reviewed the compliance checklist and commented there were no recommendations for changes at this time. The board voted to approve the AndCo report as presented, upon motion bV Richard Calabrese and second by Herb Epstein; motion carried 3-0. c. Sugarman & Susskind, Ken Harrison, Board Attorney i. Legislative update 1. Ken Harrison commented the cancer bill finally passed after ten years and would be effective July 1, 2019. Ken commented the legislature was still working through some of the details, including the $25,000 up -front payment and Workers' Compensation. Justin Nickels asked for details and Ken commented he would send the administrator a memo to disseminate to the board and would give a presentation at the next meeting on the subject. Herb Epstein asked how a cancer bill insurance policy might affect someone's eligibility and Ken commented he was not sure. ii. 300 Hour Overtime Proposed Ordinance Amendment update 1. Ken Harrison advised the board he had been in contact with the City Manager and was told the City was in the process of providing additional information to the Attorney General. Ken commented he had sent information to the Attorney General's office as well and would provide an update at the next meeting. iii. AFC Ordinance Amendment update 1. Ken Harrison advised the board the Ordinance was passed. iv. Fire Chief Opt -Out Deadline 1. Justin Nickels asked why this board chose a 90 -day deadline instead of a one-year deadline. Ken Harrison commented it was more beneficial to the board to have a shorter time period; a longer period was better for the individual. Ken directed the administrator to remind Chief Lariscy to speak to a financial advisor. The board discussed the advantages of a one-year opt -out period. v. Disability Recertifications 1. Tracey Barlow commented there was only one disability retiree in the firefighter's pension plan and asked the board to consider implementing a recertification policy now in order to treat everyone the same if there were more disability retirees in the future. A disability retiree was now eligible for city benefits in addition to the pension benefit and he felt it was the board's responsibility to protect the financial health of the plan. 2. Justin Nickels asked how other plans implemented the provisions for disability recertification and Ken Harrison said he would bring examples from other plans to the next meeting for the board to consider. 3. Justin Nickels asked if the cancer presumption bill would increase the amount of disability applications and Ken Harrison said if the Post Traumatic Stress Disorder (PTSD) presumption was any indication, the applications would increase. Richard Calabrese commented in the public sector it was normal to require disability retirees to recertify and they were usually sent to a company physician. Richard commented he would like to see the board implement a recertification policy. Ken commented they tried to send the member to a specialist for their disability, and they tried to use teaching hospitals. The board agreed by consensus to table this discussion until the next meeting. vi. Board of Trustee versus Union Roles 1. Ken Harrison advised the board the Union negotiated benefit changes with the City and the board implemented those changes. The board was responsible for administering benefits that had already been established. The board was also charged with making recommendations, directing the actuary to complete cost studies, monitoring costs and making investment decisions. 2. Justin Nickels commented he was a union executive as well as a board trustee, so he needed to wear separate hats depending on the situation. Ken Harrison commented Justin's position as trustee had vary narrow responsibilities. Tracey Barlow asked the board if the current Contract Bargaining Agreement (CBA) had sole jurisdiction to amend the Ordinance and if the City Council wanted to make a change, would they need the approval of the Union? Ken commented he believed the Union would have to ratify the change moving forward and the State had directed the City to have a mutual consent agreement with the Union regarding Share Plan monies. 8. Consent Agenda a. Payment ratification i. Warrant #52, ##53 and #54 h. Fund activity report for March 5, 2019 through June 03, 2019 The board voted to approve the consent agenda as presented, upon motion by Richard Calabrese and second by Herb Epstein; motion carried 3-0. 9. Staff Reports, Discussion, and Action a. Foster & Foster, Michelle Rodriguez, Plan Administrator i. Travel Policy 1. Michelle Rodriguez reviewed the City's Travel Policy and reimbursement process. Ken Harrison commented he thought the meal reimbursements were low and advised the board they could adopt their own travel policy. ii. Update on State Annual Report 1. Michelle Rodriguez informed the board that the Annual Report had been submitted to the State and she would let them know when it was approved. iii. Financial Forms 1. Michelle Rodriguez reminded the board their financial forms needed to be submitted by July 15t iv. Upcoming Educational Opportunities 1. Michelle Rodriguez reviewed upcoming educational opportunities available to the board. Ken Harrison reviewed the annual schedule of events for the Division of Retirement and the FPPTA. Ken also reviewed the FPPTA's Certification Program. 10. Trustees' Reports, Discussion, and Action - None. 11. Adjournment —Meeting adjourned at 5:21 pm. 12. Next Meeting — September 16, 2019, at 4:00pm. RespWectfully submitted by_ Approved by: /uLia k Michelle Rodriguez, Plan Ad' ini, ator 4tin Nickels, Chairman Date Approved by the Pension Board: '