12-13-2021 CITY OF EDGEWATER
FIREFIGHTERS' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Monday, December 13, 2021, at 4:00pm
TRUSTEES PRESENT: Justin Nickels
David Blair
Ron Hayward
James Binder
Herb Epstein
TRUSTEES ABSENT: None
OTHERS PRESENT: Mindy Johnson, Salem Trust
Pedro Herrera, Sugarman & Susskind (via phone)
John Thinnes, AndCo Consulting
David Kelly, Bowen Hanes & Company
Michelle Rodriguez, Foster& Foster
1. Call to Order—Justin Nickels called the meeting to order at 4:02pm.
2. Public Comments—None.
3. Approval of Minutes
a. September 14, 2021, Quarterly Meeting Minutes
The Board approved the September 14, 2021,quarterly meeting minutes as presented, upon motion
by Herb Epstein and second by David Blair; motion carried 5-0.
4. New Business
a. Member Elected Trustee Seats—Justin Nickels and James Binder
i. Michelle Rodriguez advised the board James Binder's trustee term expired on
March 2, 2022, and Justin Nickels'term expired on April 7, 2022. Justin and James
said they would like to continue to serve, and Michelle commented she would send
out a request for nomination on February 1, 2022.
5. Old Business—None.
6. Reports(Attorney/Consultants)
a. Salem Trust, Mindy Johnson, Custodian
i. Salem Trust Proposed fee increase
1. Mindy Johnson reviewed the services provided by Salem Trust and
proposed a change to their fee structure from a flat rate fee of$5,500.00
to 3 basis points with a minimum of$6,250.00. Mindy commented the
basis points are charged in arrears on the balance each quarter.
The Board voted to approve Salem Trust's proposed fee increase as presented, upon motion by
David Blair and second by Herb Epstein; motion carried 5-0.
b. Bowen, Hanes & Co., David Kelly, Investment Manager
i. September 30, 2021, Quarterly Report
1. David reviewed the market environment and the plan's performance over
the last quarter.
c. AndCo, John Thinnes, Investment Consultant
i. September 30, 2021, Quarterly Report
1. John Thinnes commented the plan was in compliance across all sectors
and did not recommend any changes in the portfolio at this time.
2. The market value of assets as of September 30, 2021, was$20,666,855.
3. The total fund net returns for the quarter ending September 30, 2021,were
0.81%, outperforming the policy benchmark of-0.09%. The 1-, 3-, 5-, 7-,
and 10-year trailing returns were 18.15%, 11.88%, 12.82%, 9.95% and
11.46%, respectively. Since inception (12/01/01), the return was 6.89%,
slightly underperforming the benchmark of 7.50%.
4. Justin Nickels asked if the board should consider investing in
cryptocurrency and John Thinnes commented he would send the trustees
a research "white" paper on the topic so they could discuss at their next
meeting.
d. Sugarman & Susskind, Pedro Herrera, Plan Attorney
i. Pedro Herrera reviewed recently introduced State legislation that would make
COVID-19 a presumptive disease for disability and death benefits.
ii. Pedro Herrera reviewed reporting requirements for gifts received by the trustees.
iii. Pedro Herrera commented in lieu of giving their clients holiday gifts this year, his
firm donated to the Dr. Marilyn Seskin Gynecologic Oncology Research Fund in
their client's names.
iv. Disability calculation method discussion
1. Michelle Rodriguez commented Gregory Swets was awarded a service-
connected disability on 8/13/21. The plan provision allows for the accrued
normal benefit or a minimum of 42% of the member's compensation. Mr.
Swets had 18.3 years of service, so his accrued normal benefit was
54.9%. Michelle commented the question was whether to use the
member's average final compensation (highest 3 of the last 5 years)or the
average monthly compensation (26 pay periods prior to date of injury).
2. Justin Nickels commented if the average final compensation was used it
would penalize the member because partial salaries would be included.
3. Pedro Herrera commented he would ask the actuary to provide an opinion
on the impact of the different calculation methods.
7. Consent Agenda
a. Payment Ratification
i. Warrants#84 and #85
b. Invoices for payment approval
i. None
c. Fund activity report for September 8, 2021, through December 6, 2021
The consent agenda was approved as presented, upon motion by David Blair and second by James
Binder; motion carried 5-0.
8. Staff Reports, Discussion, and Action
a. Foster& Foster, Michelle Rodriguez, Plan Administrator
i. FPPTA 2022 Board Membership Renewal
1. Michelle Rodriguez advised the board their FPPTA annual board
membership was up for renewal at a cost of$750.00.
The Board voted to renew their FPPTA annual membership as presented, upon motion by Herb
Epstein and second by David Blair; motion carried 5-0.
b. Educational Opportunities
i. Michelle reviewed upcoming education opportunities for the board.
9. Trustees' Reports, Discussion, and Action — None.
10. Adiournment— Meeting adjourned at 5:17pm.
11. Next Meeting— March 14, 2022, at 4,00pm.
Respectfully submitted by: Approved by:
Michelle Rodriguez, Plan dnOistrator in Nickels, Chairman
Date Approved by the Pension Board: J ✓ �Uy / �, '_� g