Loading...
06-09-2025CITY OF EDGEWATER FIREFIGHTERS' PENSION BOARD QUARTERLY MEETING MINUTES City Hall Council Chambers 104 N. Riverside Drive Edgewater, FL 32132 Monday, June 9, 2025, at 11:30AM TRUSTEES PRESENT: Kory Hayward Dominick Fede David Blair TRUSTEES ABSENT: James Daly OTHERS PRESENT: Pedro Herrera, Sugarman, Susskind, Braswell & Herrera (via phone) John Thinnes, Mariner Institutional David Kelly, Bowen Hanes Doug Lozen, Foster & Foster (via phone) Troy Jenne, Foster & Foster Trevor Barlow, Plan Member 1. Call to Order— David Blair called the meeting to order at 11:31AM. 2. Roll Call —As reflected above. 3. Public Comments a. Trevor Barlow who was in the DROP, asked about the DROP balance if he DROP exited before his normal October DROP date. Pedro Herrera responded to this question commenting he believed the plan restatement included that the interest was accrued through the end of the previous quarter. Mr. Barlow thanked him for answering the question. 4. Approval of Minutes a. March 10, 2025, Quarterly Meeting The Board approved the March 10, 2025, quarterly meeting minutes as presented, upon motion by Kory Hayward and second by Dominick Fede; motion carried 3-0. 5. New Business a. Election of 5th Trustee i. Troy Jenne asked Pedro Herrera if nomination of the 5th trustee could be held with only three trustees. Pedro recommended waiting until there was a total of four trustees to elect the 5th trustee. b. DROP extension to 8 years i. A discussion of the DROP extending to 8 years from 5 years was held at the Board's request. ii. Doug Lozen addressed this as to their not being a cost incurred. iii. Pedro Herrera discussed the formality of the process, to include the bargaining process between the City and the Union before the Board would get to a motion to approve the new ordinance. c. Member contribution discussion i. Dominick Fede asked Doug Lozen about the percent of payroll and specifically who was included in the process in the cost study. Doug advised it was only the firefighters that contributed to the pension. Doug said this did not include DROP participants. 6. Reports (Attorney/Consultants a. Foster & Foster, Doug Lozen, Plan Actuary i. October 1, 2024, actuarial valuation report 1. Doug Lozen explained the actuarial valuation and how the numbers were reflective of the four-year smoothing method used for their plan. 2. Doug Lozen advised the City's required contribution went from 19.9% to 19.6% this year. 3. Doug Lozen discussed the very strong investment performance which was helping to keep them on pace for another high funded status. The funding percentage was slightly over 100%. 4. David Blair asked Doug Lozen about adding a benefit improvement to the members, and how long would it take to get back to the 100% range. Doug answered the question for him, to include it was a two-pronged financial impact answer, which Doug explained to the understanding of the Board. 5. Doug Lozen reviewed the need to update the Experience Study (last one was 5 years ago), which would encompass the FRS Mortality Study, which Doug explained to the Board as well. The Board approved the actuary prepare an actuarial experience study, upon motion by David Blair and second Kory Hayward; motion carried 3-0. The Board voted to approve the October 1, 2024, actuarial valuation report as presented, upon motion by Kory Hayward and second by Dominick Fede; motion carried 3-0. The Board voted the declaration of returns for the plan shall be 7.00% for the next year, the next several years, and the long-term thereafter net of investment related expenses, upon motion by Kory Hayward and second by Dominick Fede; motion carried 3-0. b. Bowen Hanes & Company, David Kelly, Investment Manager Quarterly report as of March 31, 2025 1. David Kelly gave an update on the market environment and a review of the political moves by the US government, and its effect on the plan. 2. Current fiscal year to date MVA as of June 3, 2025, was $26,427,844.55. 3. David Kelly advised a total plan increase as of June 3, 2025 of 6.1 %. 4. David Kelly discussed the market bounce back since liberation day. c. Mariner Institutional, John Thinnes, Investment Consultant i. Quarterly report as of March 31, 2025 1. John Thinnes reviewed the overall performance over the past quarter. 2. John Thinnes reviewed the performance versus their peers which was very strong. 3. John Thinnes reviewed the asset allocation. As of March 31, 2025, the market value of assets was $24,761,733. 4. The total fund net returns for the quarter ending March 31, 2025, were -3.76%, underperforming the policy benchmark of -0.38%. The 1, 3, 5, 7 and 10 -year trailing returns were 5.73%, 6.79%, 13.11% 9.55% and 8.52%, respectively. Since inception (12/01/01), the net return was 6.78%, underperforming the benchmark of 7.11 %. 5. John Thinnes reviewed the policy compliance and advised it was still in balance. 6. John Thinnes did not have any recommendations for rebalance. d. Sugarman, Susskind, Braswell & Herrera, Pedro Herrera, Plan Attorney i. Legislative update 1. Pedro Herrera discussed the legislative update, to include the legislative session didn't end as expected, so the session was still open. Nothing that directly affected this plan. ii. Mariner Acquisition Agreement 1. Pedro Herrera discussed the consulting agreement with Mariner and said this was ready to be signed. iii. Pedro Herrera reviewed the financial disclosure for Trustees that was due to be electronically filed by July 1, 2025. 7. ®Id Business —None. 8. Consent Agenda a. Payment Ratification i. Warrant #108 9-15-2025