03-27-2017CITY OF EDGEWATER
GENERAL EMPLOYEES' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Monday, March 27, 2017 at 10:30AM
TRUSTEES PRESENT: John McKinney
Tim Sopko
Tyna Hilton
TRUSTEES ABSENT: Brenda Dewees
OTHERS PRESENT: Lee Dehner, Christiansen & Dehner
Ferrell Jenne, Foster & Foster
John Thinnes, &Co Consulting
Doug Lozen, Foster & Foster
Julie Christine, City of Edgewater
1. Call to Order John McKinney called the meeting to order at 10:30AM.
2. Roll Call - As reflected above.
3. Public Comments None.
4. Approval of Minutes
The minutes from the December 12, 2016 quarterly meeting were approved upon motion
by Tyna Hilton and second by Tim Sopko, motion carried 3-0.
5. New Business and Reports
a. Christiansen & Dehner, Lee Dehner, legislative update.
i. SB306-Deals when trustees need to abstain from a vote when there is a
gain/loss to the trustee.
ii. SB632-Attempts to put collars on the investment return assumption and
the long range expected return.
iii. Lee Dehner advised that there are a few more pending Bills, but they
pertain to Chapter 175/185 plans.
iv. Lee Dehner reminded the board to file their financial disclosure forms
prior to July 1 st to avoid fines.
b. Review and discussion of vendor RFQs.
i. By consensus, the board agreed to table the discussion until all
members of the board were present. John McKinney asked Ferrell Jenne
to facilitate a special meeting
The board voted to table the discussion and review of vendor RFQs and hold a special
meeting to be scheduled by Ferrell Jenne upon motion by Tim Sopko and second by !Ina
Hilton motion carried 3-0.
c. &Co Consulting, Jon Thinnes, quarterly report as of December 31, 2016.
i. John Thinnes advised that Jack Evatt was sick and he was attending in
his place.
ii. John Thinnes introduced the firm's new name and commented the
philosophy behind the name change was to always put clients first. John
confirmed that the firm was not acquired.
iii. John McKinney asked that future quarterly reports have a one page
executive summary.
iv. John Thinnes briefly reviewed the market environment during the year.
v. Market value of assets as of December 31, 2016 were $11,998,481.
vi. Gross earnings for the quarter were -0.54% underperforming the
benchmark of 0.08%. John Thinnes reminded the board that they are
50% allocated in fixed income. The gross trailing 1, 3, and 5 year returns
were 5.35%, 3.62%, and 8.37%. Since inception (10/112000), returns
were 4.51 %.
vii. John Thinnes reviewed the performance of each manager. John
discussed Wells Fargo and commented that they have been recently
hired and fired in other plans. John advised that they are reviewed at the
next quarterly meeting.
viii. Lee Dehner reminded the board about the SB534 calculation
requirements. Lee commented that John Thinnes will provide the 60T
report.
d. Foster & Foster, Doug Lozen, October 1, 2016 actuarial valuation report.
i, Doug Lozen reminded the board that the contribution requirements are
applicable for the fiscal year ending September 30, 2018.
ii. Doug Lozen reminded the board that the investment return assumption
was lowered to 6.75%.
iii. Doug Lozen commented that the experience since the prior valuation
has been less favorable than expected due to no retiree mortality and the
new FRS mortality tables that were mandated to be used.
iv. The total required contribution increased from $673,060 to $752,365.
The balance due from the City increased from $667,440 to $744,629.
v. Doug Lozen reviewed the changes since the last valuation report and
reminded the board that they had two new members enter the plan.
vi. Doug Lozen commented that he will revise the summary page of the
valuation report to reflect the correct dates on the left column.
The board voted to approve the October 1 2016 actuarial valuation report with discussed
chancres to page 5 upon motion by Tyna Hilton and second by Tim Sopko, motion carried
3.0.
The board voted the declaration of returns for the plan shall be 6.75% for the next year, the
next several years and the long-term thereafter net of investment related expenses, upon
motion by Tyna Hilton and second by Tim Sopko, motion carried 3-0.
vii. John McKinney asked about the OPER valuation report and asked if
Foster & Foster has looked at the actual utilization of the insurance by
the retirees. Doug Lozen commented that he pass along the question to
Aimee Strickland.
6. Old Business -- None.
Consent Agenda
The board voted to approve the consent agenda as presented upon motion by Tim Sopko
and second by Tyna Hilton, motion carried 3-0.
8. Staff Reports, discussion, and Action
a. Fund activity report for December 7, 2016 -March 10, 2017.
The board voted to approve the fund activity report as presented upon motion by Tim
Sopko and second by Tyna Hilton, motion carried 3-0.
b. Educational opportunities.
i. Ferrell Jenne informed the board that the Division of Retirement
conference will be held in Tallahassee, FL from May 31, 2017 -June 2,
2017. Ferrell reminded the board that they are FPPTA members and the
OA
next conference will be held in Orlando from June 25, 2017 -June 28,
2017.
John McKinney asked Ferrell Jenne to copy the City Clerk on all future
meeting dates. Ferrell advised that the City Clerk requested that she
coordinated all meeting dates with Jordan Church and this has been
done for all meetings. Ferrell stated that she will start including the City
Clerk as well on any future meeting dates.
9. Trustee Reports, Discussion, and Action —None.
10. Adjournment The meeting adjourned at 11:00am
11. Next Meeting June 19, 2017, at 10:30am.
Approved by:
Name:
Title:
_SUNE 19 ,
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