06-13-2022CITY OF EDGEWATER
GENERAL EMPLOYEES' PENSION BOARD
QUARTERLY MEETING MINUTES
City Council Chambers
Monday, June 13, 2022, at 10:30 AM
TRUSTEES PRESENT: Brenda DeWees
Bridgette Vaissiere (via phone)
Dilena Talley
Tyna Hilton
TRUSTEES ABSENT: Tim Sopko
OTHERS PRESENT: Bonni Jensen, Klausner, Kaufman, Jensen & Levinson
Frank Wan, Burgess, Chambers & Associates
Inez Garcia, Salem Trust (via phone)
Michelle Rodriguez, Foster & Foster
1. Call to Order — Brenda DeWees called the meeting to order at 10:36 AM.
2. Roil Call — As reflected above.
The Board voted to allow Bridgette Vaissiere to participate in this meeting via phone due to exigent
circumstances upon motion by Dilena Talley and second by Tvna Hilton; motion carried 3-0.
Public Comments — None.
Approval of Minutes
a. March 14, 2022, Quarterly Meeting Minutes
The Board approved the March 14 2022 quarterly meeting minutes as presented, upon motion by
Dilena Talley and second by Tvna Hilton; motion carried 4-0.
5. New Business
a. State of Florida Rate Assumption Recommendation
i. Bonni Jensen commented the State was sending these letters to a lot of plans and
added their plan's rate assumption was well within the range mentioned in the letter.
ii. Frank Wan commented the State was using the October 1, 2020 actuarial valuation
report and not the most recent report that included the plan's current 6.25% rate
assumption.
b. Joint Annuitant changes
i. Bonni Jensen commented Police and Fire plans were required under Florida Law to
allow retirees to change their joint annuitant twice in their lifetime and added the
General employee plan was modeled on these plans. Bonnie reviewed the proposed
language in the ordinance amendment that would allow retirees to change their joint
annuitant twice in their lifetime.
The Board voted to approve the proposed ordinance amendment as presented, upon motion by
Dilena Talley and second by Bridgette Vaissiere; motion carried 4-0.
c. Updated Summary Plan Description (SPD)
i. Bonni Jensen commented their SPD must be updated every two years and reviewed
the changes to the SPD.
The Board voted to approve the updated SPD as presented upon motion by Dilena Talley and
second by Bridgette Vaissiere; motion carried 4-0.
Old Business
a. Ordinance Amendment — Member Elected Trustees
i. Michelle Rodriguez commented the amendment passed first reading and was on the
next Commission meeting agenda for second reading.
Reports
a. Salem Trust, Inez Garcia, Plan Custodian
i. Inez Garcia introduced herself and commented she was looking forward to meeting
the Board in person.
b. Burgess, Chambers & Associates, Frank Wan, Investment Consultant
i. Quarterly Report as of March 31, 2022
1. Frank Wan reviewed the market environment and commented it was a
tough quarter marked by losses in both stocks and bonds. Frank
commented he was disappointed in the investment managers because they
did not do enough to protect the plan from losses.
2. The market value of the plan as of March 31, 2022, was $13,496,556. The
fund's total net returns for the quarter were -6.5%, underperforming the
policy benchmark of -3.9%. Trailing total fund gross returns for the 1, 3, and
5 -year periods were 1.30%, 9.80% and 8.50% respectively.
3. Frank commented some of the funds do need to be sold but wanted to wait
until they were doing better so they were not selling low and then buying
high instead of selling high and buying low.
4. Frank commented if Wells Fargo and Ceredex did not perform better as the
market got better in the next 6 to 9 months, they would start to sell them off.
5. Frank commented the market was still rocky with inflation causing
uncertainty and duress in the bond market. Frank commented real estate
was the bright spot in their portfolio with a quarterly return of 8.5%.
c. Klausner, Kaufman, Jensen, and Levinson, Bonni Jensen, Plan Attorney
i. Financial Disclosure Forms
1. Bonnie Jensen reminded the trustees their financial disclosure forms are
due July 1st.
ii. IRS Mileage Rate for 2022
1. Bonni Jensen advised the board the IRS mileage rate was increased to 62.5
cents per mile effective July 1, 2022.
iii. Generic Signature Authorization Form
1. Bonni Jensen commented signature authorization forms should be updated
annually or at least when new trustees join the board.
iv. Required Minimum Distributions (RMD) proposed regulations and Cryptocurrencies
guidance
1. Bonni Jensen commented on March 29, 2022, the House passed the
Securing a Strong Retirement Act of 2022 (SECURE 2.0), which included
additional changes to RMDs and added she would provide updates as
SECURE 2.0 moved through Congress.
2. Bonni Jensen commented the Department of Labor recently expressed
serious concerns about plans investing in cryptocurrencies and related
products due to the significant risks of fraud, theft, and loss because of their
speculative nature, custodial, recordkeeping, and valuation concerns, as
well as the evolving regulatory market.
8. Consent Aqenda
a. Ratification of Warrants
i. Warrants #79
b. New invoices for payment approval
i. Warrant #80
c. Fund Activity Report for March 8, 2022, through June 6, 2022
The Board approved the consent agenda as presented upon motion by Dilena Talley and second by
Tyna Hilton; motion carried 4-0.
Staff Reports, Discussion, and Action
a. Foster & Foster, Michelle Rodriguez, Plan Administrator
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i. Michelle Rodriguez commented she checked online, and all five trustees have
submitted their 2021 financial disclosure forms.
ii. Educational Opportunities
1. Michelle Rodriguez reviewed the educational opportunities available to the
board.
10. Trustee Reports, Discussion, and Action - None.
11. Adjournment - The meeting adjourned at 11:51 AM.
12. Next Meeting - September 19, 2022, at 10:30 AM.
Respectfully submitted by:
Michelle Rodriguez, Plan Admini6trato—
Approveed by:
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Date Approved by the Pension Board: -1 I I -1 d Z
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