07-13-2018CITY OF EDGEWATER
POLICE OFFICERS' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Friday, July 13, 2018 of 1:30PM
TRUSTEES PRESENT: Lawrence Leaf
Joe Mahoney
Aaron Soltz
TRUSTEES ABSENT: Larry Brinson
Alexander Penalta
OTHERS PRESENT: Ken Harrison, Sugarman & Susskind
Ferrell Jenne, Foster & Foster
John Thinnes, AndCo Consulting
Mindy Johnson, Salem Trust
1. Call to Order — Joe Mahoney called the meeting to order at 1:37 pm.
2. Roll Call — As reflected above.
3. Public Comment — None.
4. Approval of Minutes
The minutes from the March 19, 2018, quarterly meeting were approved upon motion by
Aaron Soltz and second from Lawrence Leaf, motion carried 3-0.
New Business
a. New member elected trustee, Aaron Soltz
i. Ferrell Jenne commented that Aaron Soltz ran unopposed and would fill
one of the member elected seats. Ferrell reminded the board that Aaron
is filling the seat that was left vacant when David Arcieri left the board.
ii. Ferrell Jenne reviewed the terms for Joe Mahoney and Aaron Soltz_
b. Discussion of the 51h trustee seat
i. Ferrell Jenne commented that the election of the 51" trustee would need
to be tabled until the next meeting, as Lawrence was part of today's
quorum.
6. Old Business None
7. Reports
a. Salem Trust, Mindy Johnson, Plan Custodian
i_ Mindy Johnson reviewed the quarterly service report and their
responsibilities as the plan's custodian. Mindy reviewed the policies and
procedures they have in place to prevent cybercrime and phishing.
ii. Mindy Johnson reviewed Salem Trust's cyber liability policy.
The board voted to accept Salem Trust's quarterly service report, upon motion b
Lawrence Leaf and a second by Aaron Soltz motion carried 3-0.
AndCo Consulting, John Thinnes, Investment Consultant
i, Quarterly report as of March 31, 2018
1. John Thinnes reviewed his role as the plan's investment
consultant.
2. John Thinnes reviewed the historical market pullbacks and how
the individual asset classes had performed.
3. John Thinnes gave a brief overview of the market environment
during the quarter, stating it had been a volatile first quarter.
4. John Thinnes reviewed the treasury yield curve.
5. The market value of assets as of March 31, 2018, was
$9,787,898.
6. John Thinnes advised the real estate allocation had been funded
and the performance would be included in the quarter two report.
7. The total fund net returns for the quarter were -0.15%
outperforming the benchmark of -0.97%. Trailing total fund net
returns for the 1, 3 and 5 -year periods were 10.07°/x, 5.34% and
7.48% respectively_ Since inception (1010112000) total fund net
returns were 5.02%, underperforming the benchmark of 5.20%.
8. John Thinnes reviewed the performance of each investment
manager.
9. John Thinnes reviewed the compliance checklist and didn't
recommend making any changes.
10. John Thinnes confirmed that no rebalancing was needed.
The board voted to accept the March 31. 2018 AndCo quarterly report, upon motion b
Aaron Soltz and a second from Lawrence Leaf, motion carried 3-0.
c. Sugarman & Susskind, Ken Harrison, Plan Attorney
1. Ken Harrison advised there were no pension reform bills that passed in
session. Ken reviewed a bill that passed allowing members to apply for a
PTSD disability under workers' compensation.
ii. Ken Harrison reviewed the Martha Miles situation and advised that
Tonya Oliver no longer represented Martha Miles. Tonya advised that
Martha was not planning on attending the meeting. Ken reviewed the
report from the actuary and commented that the issue could be
deferred.
The board voted to defer the discussion of Martha Miles until the member and the actuary
were present, upon motion by Lawrence Leaf and a second by Aaron Soltz motion carried
3-0.
iii. Ken Harrison reviewed the share plan, how allocations are determined,
and the distribution that occurred at termination. Ken commented that
most plans had a policy in place that held back a percentage on the
initial distribution, in case the return was negative. The board discussed
what percentage to hold back.
The board voted to have the attorney draft a policV to withhold 20% from the initial share
plan allocations, upon motion by Lawrence Leaf and a second from Aaron Soltz motion
carried 3-0
8. Consent Agenda
a. Payment Ratification
i. Warrant 446, #47, #48
b. Fund activity report for March 13, 2018 — July 6, 2018.
The board voted to approve the consent agenda as presented, upon motion by Lawrence
Leaf and a second from Aaron Soltz, motion carried 3-0.
Staff Reports, Discussion and Action
a. Foster & Foster, Ferrell Jenne, Plan Administrator
L Upcoming educational opportunities
1. Ferrell Jenne reviewed the upcoming FPPTA and Division of
Retirement conferences.
2
2. Ferrell Jenne reviewed the SB 534 requirement and commented
that all the calculations had been sent to the City for posting.
3. Ferrell Jenne advised the State Annual Report had been filed
and she would keep the board updated on the approval.
10. Trustee Reports, Discussion, and Action - None.
11. Adjournment - The meeting adjourned at 2:45 p.m.
12. Next Meeting - Monday, September 26, 2018, at 1:30 p.m.
�ectfully sut itte by_ Approved by:�_...___�._�
ell Jenne, Ian Ad inistrator Alexande�P-Qn3lk_a, firman
Date �pproved� the )ension Board: xy :� V i V