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03-11-2024 CITY OF EDGEWATER GENERAL EMPLOYEES' PENSION BOARD QUARTERLY MEETING MINUTES City Hall Council Chambers 104 N. Riverside Drive Edgewater, FL 32132 Monday, March 11, 2024, at 10.30AM TRUSTEES PRESENT: Bridgette Vaissiere Dilena Talley Tim Sopko Tyna Hilton TRUSTEES ABSENT: Brenda DeWees OTHERS PRESENT: Bonni Jensen, Klausner, Kaufman, Jensen & Levinson Frank Wan, Burgess, Chambers & Associates Doug Lozen, Foster & Foster Siera Feketa, Foster & Foster 1. Call to Order— Bridgette Vaissiere called the meeting to order at 9:40AM. 2. Roll Call —As reflected above. 3. Education Session a. Klausner, Kaufman, Jensen, and Levinson, Bonni Jensen, Plan Attorney i. Bonni Jensen gave an educational presentation on Federal Pension Issues & Florida environmental, social, and governance (ESG) reporting rules. ii. The Board and Bonni Jensen discussed ESG and the requirements for investing. Bonni commented they could only invest based on pecuniary factors, which could be an ESG fund as long as their decision was based on pecuniary factors only. iii. Bridgette Vaissiere commented there were some discussions regarding changes or enhanced benefits and asked if that would fall in their grounds as a fiduciary. Bridgette and Bonni Jensen discussed what it meant to be a fiduciary for the plan. Bonni stated the Board could not make changes to the benefits, but they could make recommendations to the City. b. Burgess Chambers & Associates, Frank Wan, Investment Consultant i. Frank Wan gave an educational presentation on retirement savings. Frank gave an overview on Secure Act 2.0 ii. Frank Wan reviewed the defined contribution plans offered through the City of Edgewater. Frank reviewed the investment options and the fees associated with their investment options. 1 iii. Bridgette Vaissiere and Frank Wan discussed the requests for MissionSquare to attend on site. Bridgette commented he had been requested to attend quarterly. iv. Frank Wan reviewed the resources for the City to gauge the retirement readiness of their employees. 4. Public Comments — None. 5. Approval of Minutes a. December 11, 2023, Quarterly Meeting Minutes The Board approved the December 11, 2023, quarterly meeting minutes as presented, upon motion by Tim Sopko and second by Dilena Talley; motion carried 4-0. 6. Reports (Attorney/Consultants) a. Foster & Foster, Doug Lozen, Board Actuary i. October 1, 2023, actuarial valuation report 1. Doug Lozen reviewed the summary of the report. Doug commented the City required contribution increased to $959,544 applicable to fiscal year September 30, 2025 from $777,332 for fiscal year end September 30, 2024. Doug commented this was a result of the investment returns. 2. Plan experience was unfavorable overall on the basis of the plan's actuarial assumptions. Sources of actuarial loss include an investment return of 2.87% (Actuarial Asset Basis) which fell short of the 6.25% assumption and inactive mortality experience. There were no significant sources of actuarial gain. 3. Doug Lozen commented there was one retiree and one beneficiary that passed away during the year. 4. Doug Lozen reviewed the reconciliation of unfunded actuarial accrued liabilities. Doug discussed the benefits of consolidating the unfunded liability. 5. Doug Lozen commented he was comfortable with an investment return assumption of 6.25% and discussed the work the Board did to reduce the assumption. Bridgette Vaissiere asked if they should make any reductions now. Frank Wan and Doug Lozen agreed 6.25% was reasonable. The Board voted to approve the October 1, 2023, actuarial valuation report as presented, upon motion by Tvna Hilton and second by Dilena Talley; motion carried 4-0. The Board voted the declaration of returns for the plan shall be 6.25% for the next year, the next several years, and the long-term thereafter net of investment related expenses, upon motion made by Tim Sopko and second by Tvna Hilton; motion carried 4-0. b. Burgess Chambers & Associates, Frank Wan, Investment Consultant i. Quarterly investment performance report as of December 31, 2023 2 1. Frank Wan gave an overview of the market environment for the quarter. Frank reviewed the factors that impacted the market. 2. Frank Wan reviewed the historical asset allocation. 3. The market value of the plan as of December 31, 2023, was $11,798,604. The fund's total net returns for the quarter were 8.0%, outperforming the policy benchmark of 7.7%. Trailing total fund gross returns for the 1-, 3-, and 5-year periods were 11.8%, 0.9% and 7.3% respectively. 4. Frank Wan reviewed the performance of the managers and how they've impacted the portfolio. 5. Frank Wan reviewed the redemption they had pending with real estate. Frank gave an update on the queue to get the funds back. Frank discussed the real estate environment. c. Klausner, Kaufman, Jensen, and Levinson, Bonni Jensen, Plan Attorney i. IRS Mileage Rate for 2024 1. Bonni Jensen commented the mileage rate increased to 67 cents this year. ii. Electronic Form 1 filing requirement 1. Bonni Jensen commented the financial disclosure form filing was to be filed online this year. Bonni discussed the Form 6 commenting it did not apply to them. Bonni reviewed the EFDMS website for the filing of Form 1 s. 2. Bonni Jensen commented before you file Form 1 if you were eligible for any records exemption, they needed to file the records exemption first. 7. New Business a. Upcoming Trustee term expirations i. Brenda DeWees, member elected, April 11, 2024 1. Siera Feketa commented she would confirm if Brenda DeWees wanted to serve another term. ii. Tyna Hilton, Member elected, April 11, 2024 1. Tyna Hilton commented she would serve another term. 2. Siera Feketa commented she would proceed with handling the election once she confirmed with Brenda DeWees if she wanted to serve again. 3. Bridgette Vaissiere asked if the trustees could continue to serve past April 11, 2024. Bonni Jensen reviewed the holdover rules. 8. Old Business — None. 9. Consent Agenda a. Ratification of Warrants i. Warrant#92 b. New invoices for payment approval i. None. c. Fund Activity Report for December 5, 2023, through March 4, 2024 3 The Board approved the consent agenda as presented, on motion by Tim SoRko and second bv Dilena Tallev, motion carried 4-0. 10. Staff Reports, Dis;cus=sion,_& Action a. Foster & Foster, Siera Feketa, Plan Administrator i. Staff Update 1. Siera Feketa gave an update commenting Michelle Rodriguez was no longer with the firm, but there would be no impact to their services. 11. Trustee Reports, Discussion, and Action — one. 12. Adjournment— The meeting adjourned at 11:30AM. 13. Next Meeting — Monday, June 10, 2024, at 10:30AM. Respectfully submitted by: Approved by: Siera Feketa, Plan Administrator /'Brenda DeWees, Chair 141 Date Approved by the Pension Board: 4