03-13-2023A
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TRUSTEES PRESENT: Bridgette Vaissiere
Dilena Talley
Tim Sopko
Brenda DeWees
Tyna Hilton
OTHERS PRESENT: Bonni Jensen, Klausner, Kaufman, Jensen & Levinson (via phone)
Frank Wan, Burgess, Chambers & Associates (via phone)
Katie Lamp, Burgess, Chambers & Associates
Doug Lo en, Foster & Foster
Michelle Rodriguez, Foster & Foster
I Call to Order/Roll Call — Brenda DeWees called the meeting to order at 9,130 AIVI�
2Education �2ssion
a. Bonnie Jensen, Katie Lamp and Frank Wan provided an education session for the board.
The Board reconvened at 10:31 AM
4. Approval of Minutes
a. December 12, 2022, Quartedy Meeting Minutes
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a. Foster & Foster, Doug Lo en, Plan Actuary
L October 1, 2022, actuarial valuation report
1. Doug Leven reviewed the report and commented the City's required
contribution increased primarily due to a net unfavorable actuarial
experience.
2. Doug Lo en cornmented the plan experience was unfavorable overall on the
basis of the plan's actuarial assumptions and added sources of actuarial
loss included an investment return of 3.86% which fell short of the 6,25%
assumption and an inactive mortality experience.
3, Doug Lown commented the negative impact was mitigated by the
smoothing methodology.,
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Vaissiere and second by T,na Hilton-, motion carried 5-0.
The Board voted the declaration of returns for the Dian shall be 6.26% for the next yea , the ne,,
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b. Burgess, Chambers & Associates, Frank Wan and Katie Lamp, Investment Consultants
i. Quarterly Report as of December 31, 2022
1. Frank Wan reviewed the market environment over the last quarter and
commented the American Funds Euro Pacific fund was one of the best
performers.
2, Frank Wan commented he stood by this team given their strong track
performance.
1 Frank Wan reviewed the value versus growth aspects of the market and
commented the FTSE Russell reconstitutes indices annually.
4. The market value of the plan as of December 31, 2022, was $11,404,648.
The fund's total net returns for the quarter were 3.3%, underperforming the
policy benchmark of 4.5%. Trailing total fund gross returns for the 1, 3, and
5 -year periods were -16r 8%, 2.3% and 4.1 % respectively.
5. Katie Lamp commented in comparison to their peers, the long-term
prospects of the plan looked good.
6. The board discussed the real estate market,
Klausner, Kaufman, Jensen, and Levinson, Bonni Jensen, Plan Attorney
i. Internal Controls rnemo
1Bonni Jensen reviewed the background and recommendations found in the
memo includingons should be processed by more than
one person, perform periodic reviews of financial transactions and
statements, implement layers of security controls including dual signatures
or multi factor authentication, use a subscription- based service to conduct
death audits, and use an independent auditor,
ii. SECURE 2.0 Act
I , Bonni Jensen reviewed the different provisions of the legislation including:
an increase in the age for Required Minimum Distributions (RMD) to age 73
through January 1, 2033 and then age 75 thereafter, a reduction in the tax
penalty for missing an RMD, extends tax free earnings for certain disability
retirement benefits to normal retirement, expands exemptions from tax
penalties for first responders by adding 25 years of service as a separate
qualifying condition for exemption, and repeals the requirement to deduct
health insurance premiums directly from a pension benefit in order to
receive a $3,000 tax break for health insurance premiums,
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a, Ratification of Warrants
i. Warrant #84
b. New invoices for payment approval
i. Warrant #85
c. Fund Activity Report for December 6, 2022, through March 3, 2023
IMI . .. ... .....
Dilena Talley; motion carried 5-0.
Respectfully submitted by:
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Wkhe�HiLeRoddguez', Plan Ad-mini�—s�tr *r
Date Approved by the Pension Board-
Approved by:
Bridgette VaisiMere, Vice -Ch ir