03-13-2023CITY OF EDGEWATER
POLICE OFFICERS' PENSION BOARI
QUARTERLY MEETING MINUTES
City Hall Council Chambers
104 N. Riverside Drive
Edgewater, FL 32132
TRUSTEES PRESENT: Myles Lawler
Joe Mahoney
Charles Geiger
David Williams
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.
I Public Comment — None.
4Approval of Minutes
a. December 12, 2022, Quarterly Meeting Minutes
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5, New Business
a, Actual Expenses as of September 30, 2022
a. Michelle Rodriguez reviewed the expense report and commented the
plan did not go over budget.
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Williams and second by Myles Lawler; motion carried 4-0.
b. Share Plan Earnings
a. Doug Lozen commented the Share Plan roll forward balance for
September 30, 2022, reflected the actual plan earnings -15.44%. Doug
commented he understood there was an expectation of a 0% floor for the
share plan because the share plan policy provides for a 0% earning floor,
however the ordinance did not reflect this.
bJoe Mahoney commented the Share Plan earnings should include a 0%
floor, so that members did not lose money.
c. Joe Mahoney commented both the Police and Fire pension plans
amended their share plan provisions at the same time and an ordinance
amendment and policy was done for each plan.
clMichelle Rodriguez commented the Fire ordinance and policy, and the
Police policy all included the 0% floor, however that provision was left out
of the Police plan ordinance amendment.
e. Pedro Herrera commented this was oversight, an oversight and he would
draft language to retroactively add the 0% floor to the Police plan and
Doug Lozen commented he would provide an impact statement.
EVIM
a. Foster & Foster, Doug Lozen, Plan Actuary
a. October 1, 2022, actuarial valuation report
1. Doug Lozen reviewed the report and commented their funded
ratio increased and the City's required contribution decreased
primarily due to a larger than expected increase in payroll under
the Assumed Retirement Age.
2Doug Lozen commented plan experience was unfavorable
overall and added sources of actuarial loss included an
investment return of 4.46% which fell short of the 7.40%
assumption, an average salary increase of 13.03% which
exceeded the 6.32% assumption, and inactive mortality
experience. Doug added these losses were offset in part by
interest crediting on the Membership Share Plan balances and
favorable turnover experience.
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A Consulting, John Thinnes, lnvestment Consultant
a. Quarterly Report as of December 31, 2022
1 . John Thinnes gave a brief review of the recent bank crisis and
added the market was right around flat right now in this current
quarter.
2The market value of assets as of December 31, 2022, was
$13,229,690. The total fund gross returns for the quarter ending
December 31, 2022, were 5,18%, slightly underperforming the
policy benchmark of
trailing returns were -15.04%, 4.02%, 542%, 6,84% and 7.16%,
respectively. Since inception (10/11/00), the return was 5.26%,
slightly underperforming the benchmark of
3, John Thinnes reviewed individual allocations and did not have
any recommendations for rebalancing at this time. John
commented the Federal Reserve meets on March 221111 and so
far, the plan was off to a good start to the quarter.
c. Sugarman & Susskind, Pedro Herrera, Plan Attorney
a. Proposed Ordinance Amendment — Police Chief Membership
b. SECURE 2,0 Act
I . Pedro Herrera reviewed the different provisions of the legislati
including: an increase in the age for Required Minirnu
Distributions (RMD) to age 73 through January 1, 2033 and th
age 75 thereafter, a reduction in the tax penalty for missing
RMD, extends tax free earnings for certain disability retireme
benefits to normal retirement, expands exemptions from
penalties for first responders by adding 25 years of service as
separate qualifying condition for exemption, and repeals t
requirement to deduct health insurance premiums directly from
pension benefit in order to receive a $3,000 tax break for heal
insurance prerniurns,
c, House Bill 3
1, Pedro Herrera commented House Bill 3 was recently introduc
in the State legislature with bicameral support, Ped
commented if passed, this bill would not allow Environmen
Social and Governance (ESG) investing to guide a truste
2
investment decisions in public pension plans and would prohibit
fiduciaries from considering anything outside of empirical metrics
when making investment decision,
2. Pedro Herrera commented this legislation would create
additional reporting requirements and it may affect proxy voting
procedures as well.
Consent Agenda
a. Payment Ratification
a. Warrants #95 and #96
b. Invoices for payment approval
a. None
c. Fund activity report for December 6, 2022, through March 6, 2023
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Geicier and second by David Williams, motion carr . ied . 4- 1 0
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Respectfully submitted by, Approved by:
mile Roanigue4 Plan Administr Joe' 'M ah16iney, Chair
Date Approved by the Pension Board:
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