03-19-2018CITY OF EDGEWATER
GENERAL EMPLOYEES' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Monday, March 19, 2018 at 10:30AM
TRUSTEES PRESENT: Bridgette King
Brenda DeWees
Tim Sopko
Tyna Hilton
Tiana Dewees
TRUSTEES ABSENT: None
OTHERS PRESENT: Paul Daragjati, Klausner, Kaufman, Jensen & Levinson
Julie Christine, Director, Human Resources, City of Edgewater
Frank Wan, Burgess Chambers & Associates
Drew Ballard, Foster & Foster
Ferrell Jenne, Foster & Foster
Call to Order — Brenda DeWees called the meeting to order at 10:37 a.m.
2. Roll Call — As reflected above.
Public Comments — None.
4. Approval of Minutes
The minutes from the December 11, 2017, quarterly meeting were approved upon motion
by Tyna Hilton and second by Tim Sopko, motion carried 5-0.
New Business — None.
Reports
a. Burgess Chambers & Associates, Frank Wan, Investment Consultant.
i. Presentation of the December 31, 2017, quarterly report.
1. Frank Wan gave a brief overview of the market environment
during the quarter.
2. Frank Wan reviewed the discount curve for the bond market and
the respective yields.
3. The Market Value of Assets as of December 31, 2017, were
$12,537,556, up from $12,504,816 at the end of the previous
quarter. The total fund quarterly return was 3.2%. The 3 and 5 -
year total fund trailing returns were 5.8% and 8.4%, respectively.
4. Frank Wan reviewed the asset allocations and explained the
rebalancing that takes place in between quarters.
5. Frank Wan reviewed the performance of each manager. Frank
commented that they were monitoring the Wells Fargo portfolio
as half of the portfolio was tech -based.
6. Frank Wan didn't recommend making any changes.
b. Foster & Foster, Drew Ballard, Actuary.
i. Presentation of October 1, 2017, actuarial valuation report.
1. The total required contribution increased from $752,365 to
$785,421. The balance due from the City increased from
$744,629 to $781,161.
2. Drew Ballard commented that experience since the prior
valuation had been less favorable than expected, relative to the
plan's actuarial assumptions. The primary sources of
unfavorable experience included a 5.80% investment return
(Actuarial Basis, net of fees), falling short of the 6.75%
assumption, average increases in pensionable compensation
that exceeded the 4% assumption, and no inactive mortality.
There were no material sources of actuarial gain. Additionally,
this valuation of the Plan incorporated the state -mandated
mortality assumption under Chapter 2015-157, Laws of Florida.
3. Drew Ballard commented that there was a City shortfall
contribution of $11,098 for the fiscal year ended September 30,
2017. An interest charge of $62 was payable for each full month
after September 30, 2017, until this shortfall contribution was
deposited.
4. Drew Ballard reminded the board the contribution amounts in the
October 1, 2017 valuation were applicable to Fiscal Year Ending
September 30, 2019.
5. Drew Ballard reviewed the assets and liabilities, commenting that
four members commenced a benefit during the Fiscal Year.
6. Drew Ballard reviewed the UAAL and the biggest drivers that
cause experience gains and losses.
The board voted to approve the October 1, 2017 actuarial valuation as presented upon
motion by Tim Sopko and second bV TVna Hilton, motion carried 5-0.
The board voted the declaration of returns for the plan shall be 6.75% for the next year, the
next several years, and the long-term thereafter, net of investment -related expenses, upon
motion bV TVna Hilton and second bV Bridgette King, motion carried 5-0.
c. Klausner, Kaufman, Jensen, Levinson, Paul Daragjati, Attorney.
i. Legislative Session.
1. Paul Daragjati stated that no pension bills passed, but
commented that a PTSD bill passed that would allow Police and
Fire members to claim PTSD under Workers' Compensation
without an incident.
ii. Update of Summary Plan Description (SPD).
1. Paul Daragjati commented that he tried to make it user-friendly.
Paul commented that he didn't include the in-service distribution
language in the SPD since there were no active members that
would be eligible for this.
2. Paul Daragjati recommended the board of trustees to review the
SPD and it could be adopted at the next meeting.
3. Paul Daragjati commented that he would be submitting a revised
invoice #21404 with lower hours.
7. Consent Aaenda
a. Ratification of Warrants.
i. Warrant #32, #33 and #34
b. Payment Approval of Warrants
i. Warrant #35
ii.The invoice for Klausner, Kaufman, Jenson, Levison would be removed
from the Warrant and would be added to next warrant with revised, lower
hours.
c. Fund Activity Report for December 7, 2017 — March 12, 2018
The board voted to approve the consent agenda, with the removal of the Klausner,
Kaufman, Jenson, Levison invoice from Warrant #35, upon motion bV Bridgette King and
second bV Tim Sopko, motion carried 5-0.
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8. Staff Reports. Discussion. and Action
d. Foster & Foster, Ferrell Jenne, Plan Administrator.
i. Upcoming educational opportunities.
1. Ferrell Jenne commented that the FPPTA 341' Annual
Conference would be held on June 24-27, 2018, in Orlando,
Florida.
2. Ferrell Jenne commented that the Division of Retirement
conference, would be held on June 4, 2018 -June 6, 2018 in
Tallahassee, Florida.
ii. Ferrell Jenne reviewed upcoming Council appointed trustee term
expirations, advising Tim Sopko and Bridgette King's terms would expire
in July. Tim and Bridgette commented they would let Ferrell Jenne know
if they wished to continue serving.
9. Trustee Reports, Discussion, and Action — None.
10. Adiournment — The meeting adjourned at 11:35 a.m.
11. Next Meeting — July 13, 2018, at 10:30 a.m.
Respectfully submitted by: Approved by:
me` : Ferrell Jenne Name: C)U& A )N
` i
"', PIanlAdministrator Title:
Date Approved by the Pension Board:
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