03-14-2022 CITY OF EDGEWATER
POLICE OFFICERS' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Monday, March 14, 2022, at 1:30pm
TRUSTEES PRESENT: Aaron Soltz
Myles Lawler
Joe Mahoney
David Williams
TRUSTEES ABSENT: None
OTHERS PRESENT: Pedro Herrera, Sugarman &Susskind (via phone)
Doug Lozen, Foster& Foster
Michelle Rodriguez, Foster& Foster
John Thinnes, AndCo Consulting
1. Call to Order—Joe Mahoney called the meeting to order at 1:35pm.
2. Roll Call —As reflected above.
3. Public Comment—None.
4. Approval of Minutes
a. December 13, 2021, Quarterly Meeting Minutes
The Board approved the December 13, 2021, quarterly meeting minutes as presented,
upon motion by David Williams and second by Aaron Soltz; motion carried 4-0.
5. New Business
a. Actual Expenses as of September 30, 2022
a. Michelle Rodriguez reviewed the individual expenditures and advised the
board they did not go over budget.
The Board approved the actual expenses as presented, upon motion by Aaron Soltz and
second by David Williams; motion carried 4-0.
6. Old Business—None.
7. Reports
a. Foster& Foster, Doug Lozen, Plan Actuary
a. October 1, 2021, Actuarial Valuation Report
1. Doug Lozen commented the City's required contribution
decreased due mainly to the 18% plan return. Doug commented
the funding status of the plan had steadily increased since 2012.
The Board approved the October 1, 2021, actuarial valuation report as presented, upon
motion by David Williams and second by Aaron Soltz; motion carried 4-0.
2. Doug Lozen recommended that the board incrementally lower
the rate assumption to 7.00% over the next few years and John
Thinnes agreed.
3. The Board agreed by consensus to have the actuary conduct an
investment study to look at a 7.2% and 7.00% rate assumption,
at a cost not to exceed $750.00.
1
The Board voted the declaration of returns for the plan shall be 7.40%for the next year, the
next several years, and the long-term thereafter net of investment related expenses, upon
motion by David Williams and second by Myles Lawler; motion carried 4-0.
b. AndCo Consulting, John Thinnes, Investment Consultant
a. Quarterly Report as of December 31, 2021
1. John Thinnes commented the current environment included
inflation, geopolitical unrest, and potentially increased interest
rates and that was creating volatility in the market.
2. John Thinnes reviewed the plan's assets allocation and did not
have any recommendations for rebalancing.
3. The market value of assets as of December 31, 2021, was
$15,221,769.
4. The total fund gross returns for the quarter ending December 31,
2021, were 4.87%, underperforming the policy benchmark of
5.23%. The 1-, 3-, 5-, 7-, and 10-year trailing returns were
14.03%, 16.82%, 12.05%, 9.26% and 10.27%, respectively.
Since inception (10/1/00), the return was 6.33°/x, slightly
underperforming the benchmark of 6.38%.
c. Sugarman & Susskind, Pedro Herrera, Plan Attorney
a. Proposed ordinance Amendment, 51h Trustee Residency Requirement
1. Pedro reviewed the proposed amendment and advised the board
a no impact letter has already been completed. Michelle
commented she would send both documents to the City Clerk for
first reading.
b. Proposed Ordinance Amendment, Enhanced Multiplier
1. Pedro Herrera reviewed the current language.
2. Joe Mahoney asked for the 15-to-20-year language to be
removed and to remove the 90-day deadline after vesting.
3. Doug Lozen commented the benefit would be costed out as any
other buyback, and the cost of both the benefit and the
calculation would be borne by the member.
4. Joe Mahoney asked if this would need to be negotiated through
the bargaining process and Pedro Herrera commented he
strongly recommended it was.
5. Michelle commented it would be good to add the ability to
purchase the service via payroll deduction.
6. Joe asked if members could roll over money from their Share
Plan and Pedro said they could not.
7. Pedro commented he would make the requested changes and
send them to the plan administrator to distribute.
8. Consent Agenda
a. Payment Ratification
a. Warrants#90 and #91
b. Invoices for payment approval
a. None
c. Fund activity report for December 7, 2021, through March 7, 2022
The Board voted to approve the consent agenda as presented, upon motion by Aaron
Soltz and second by David Williams; motion carried 4-0.
9. Staff Reports, Discussion, and Action
a. Educational Opportunities
a. Michelle Rodriguez reviewed upcoming educational opportunities with
the board.
10. Trustee Reports, Discussion, and Action—None.
11. Adiournment—The meeting adjourned at 2:21 pm.
2
12. Next Meeting— Monday, June 13, 2022, at 1:30pm.
Respectfully submitted by: Approved by:
Michelle Rodriguez, Plan A&Ki rator Aaron Soltz, e e
Date Approved by the Pension Board: �iV• "� 1,3
3