HomeMy WebLinkAboutMinutes_Pension Public Safety_2/7/2022TEQUESTA PUBLIC SAFE
REGULAR BOARD MEETING MINUTES
March 7, 2022
CALL TO ORDER
was held at the Village Hall Council Chambers, 345 Tequesta Drive, Tequesta, Florida, on Monday February 7, 2022.
The meeting was called to order at 8:35AM.
SWARING IN OF TRUSTEE PETER ALLEN
Lori McWilliams, Village Clerk for the Village of Tequesta Swore Peter Allen in as Trustee to the Tequesta Public
ROLL CALL
A roll call was taken by Pension Administrator Scott Baur. In attendance at the meeting were: Chairman Kirstopher
Cowles, Secretary Ray Korkowski (Electronically), Trustee Zachary Wichert. Trustee Rick Sartory, and Trustee Peter
Allen
Also, in attendance were Attorney Bonni Jensen, Pension Administrators A.C. Lovingood, Scott Baur, Actuary
Jeffrey Amrose (electronically), Investment Monitor Jennifer Gainfort, and Village Accounting Manager Michelle
Gload.
EXTRAORDINARY CIRCUMSTANCES FOR TRUSTEES TO ATTEND ELECTRONICALLY
Attorney Bonni Jensen reviewed the Extraordinary Circumstances for Trustees joining the quarterly Board Meeting
electronically. Mrs. Jensen stated that she believed that the COVID-19 Pandemic qualifies as an extraordinary
circumstance to allow Trustees to join electronically.
MOTION:
Trustee Rick Sartory made a motion to approve the ability for Trustee Ray Korkowski to join the Board
Meeting electronically due to the Extraordinary Circumstances of the COVID-19 Pandemic. Trustee
Zachary Wichert seconded the motion, which carried by a 4-0 vote.
APPROVAL OF AGENDA
The Board reviewed the agenda.
MOTION:
Trustee Rick Sartory made a motion to approve the Meeting Agenda as presented. Trustee Ray Zachary
Wichert seconded the motion, which carried by a 5-0 vote.
PUBLIC COMMENT
There was no public comment at this time.
APPROVAL OF MINUTES
1. Tequesta Public Safety
November 1, 2021.
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The Board reviewed the Quarterly Meeting Minutes for November 1, 2021.
MOTION:
Trustee Rick Sartory made a motion to approve the Meeting Minutes for November 1, 2022 as presented.
Trustee Peter Allen seconded the motion, which carried by a 5-0 vote.
PRESENTATION
2. Actuarial Valuation Report Jeffrey Amrose, GRS
Mr. Amrose reported that the Plan remains in excellent shape with a healthy funded ratio of 104.9% on smoothed
value compared to the previous year and the Plan is 115% funded at market value of assets. The Village has a
comparatively low contribution rate of about 10% of pay. Mr. Amrose reviewed the required contributions with the
Board in detail. There were no changes in the Benefit Provisions or in the Actuarial Assumptions and Methods for
the Plan. The overall experience since the last valuation was more favorable than expected, resulting in an actuarial
gain of $662,955. Mr. Amrose stated that the gains are primarily due to a great return on investments than
expected and less than expected pay increase. The funded ratio increased to 104.9% from 100.2% at the last
valuation and Mr. Amrose noted that the Village contributions will decrease further if the Pension Fund meeting its
return assumptions.
Mr. Amrose then reviewed the premium tax receipts with the Board in detail, noting that the Village uses the full
Village will have a
$512,395.00 reserve remaining to offset Police contributions. Mr. Amrose then reviewed the derivation of
contribution requirements for both Police and Fire with the Board, noting that the required contribution for Police
decreased as a percentage of covered payroll; however, due to an increase in pay, the dollar amount also increased.
and a dollar amount. Mr. Amrose then reviewed the historical experience gains and losses with the Board along
with the smoothing of assets.
The board noted that they have a March 10, 2022 Scheduled Meeting with the Village Council to give a presentation
of how the Pension Plan is performing and discussed in great detail the return assumptions and the Assumed Rate of
Return. It was noted that FRS uses a 6.8% Assumed Rate of Return, and the average is now below 7%. Trustee
Zachary Wichert asked about a projection of future required contribution requirements for the Village Council
Presentation.
MOTION:
Chairman Kristopher Cowles made a motion to approve the 2021 Actuarial Valuation Report as presented.
Trustee Zachary Wichert seconded the motion, which carried by a 5-0 vote.
MOTION:
Chairman Kristopher Cowles made a motion based on the advice of Mr. Amrose to state the Board expects to
achieve 7% Assumed Rate of Return for the next year, the next several years, and the long term thereafter.
Trustee Zachary Wichert seconded the motion, which carried by a 5-0 vote.
3. Quarterly Performance Report as of December 31, 2020 Jennifer Gainfort, AndCo Consulting
Jennifer Gainfort started her presentation by introducing herself and the role of AndCo. Ms. Gainfort reported that
AndCo now advises $123 Billion in Client Assets. The firm reinvests 100% of profits back into the company, which
now has a total of 87 employees and Ms. Gainfort reported that that her Firm made Brian Green and Kerry
Richardville Partners. Ms. Gainfort reported the economy remained strong through December 31, 2021, worker
turnover and a shortage of labor, along with persistent inflation continue to have a negative effect. The Federal
Reserve will likely increase interest rates several times this year because of rising inflation in attempt to slow it
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rebalance the plan due to being overweight in equities
MOTION:
Trustee Rick Sartory made a motion based on the advice of the Investment Monitor to Rebalance 3% of domestic
equities to domestic and global fixed income. Trustee Zachary Wichert seconded the motion, which carried by a
4-0 vote. (Ray Korkowski was absent for vote)
The Pension Fund assets had a total market value of $23,835,231 on September 30, 2021, increasing to $25,119,595
as of December 31, 2021. For the fourth quarter, the Plan had a total of $186,556 in contributions, $50,170 in
distributions, management fees of $7,414, other expenses of $16,897, income totaling $138,548, and capital gains of
$1,033,743 resulting in an ending balance of $25,119,595 as of December 31, 2021. For the quarter ending
December 31, 2021 the Plan earned a net 4.87% compared to the benchmark of 5.70%. For the One-Year trailing
returns, the Plan earned 14.82% compared to the benchmark rate of 15.64%. The Three-Year trailing returns were
16.28%, compared to the 17.30% benchmark, the Five-Year returns were 11.87%, compared to the benchmark rate
of 12.55%, and since inception, the Plan has earned 7.52%, trailing the benchmark rate of 8.11%.
Ms. Gainfort then reviewed the individual managers performance with the Board, noting that FMS performed lower
than the benchmark due to the concentration of some holdings in the corresponding index. Ms. Gainfort then
informed the Board that Wells Fargo sold their Asset Management, rebranding the small cap equity allocation to
Allspring Special Smal Call Value R6. ASB Real Estate continues the real estate portfolio, reallocating assets from
retail and office space to industrial, multifamily, and self-storage. ASB Real Estate lowered their management fee
from 1.25% down to 1%. The Board discussed the underperformance of ASB Real Estate and Ms. Gainfort stated
that AndCo has kept the manager under close watch. As of Friday, the Plan had a total balance of $23.78 Million due
to recent market losses.
MOTION:
Chairman Kristopher Cowles made a motion to approve the AndCo Quarterly Investment Report dated December
31, 2021 as presented. Trustee Rick Sartory seconded the motion, which carried by a 4-0 vote. (Ray Korkowski
was absent for vote)
CONSENT AGENDA:
4. Ratification of Invoices Paid Since Last Quarterly Meeting
5. Reporting of New Applicants for Participation in the Pension Plan
There were no new applicants to report to the Board.
6. Terminated Employees Who have Not Yet Taken Their Contributions
There were no new applicants to report to the Board.
7. Benefit Approvals for Retirements
There were no Benefit Approvals to report to the Board.
MOTION:
Chairman Kristopher Cowles made a motion to approve the Consent Agenda as presented. Trustee Peter
Allen seconded the motion, which carried by a 4-0 vote. (Ray Korkowski was not available)
NEW BUSINESS:
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8. ATTORNEY UPDATE Attorney Bonni Jenson, Klausner, Kaufman, Jenson & Levinson
A. Cancer Presumption IRS Ordinance
Attorney Bonni Jensen addressed proposed changes to the Ordinance for the Secure Act Updates, the addition of
the Pre-retirement Death Cancer Presumption State Statutes, and the IRS Tax Code changes regarding minimum
distribution requirement commencement age change from 70.5- to 72-year-old. Mrs. Jensen also informed the
Board that she has requested that the Village of Tequesta add the entire Penson Plan Ordinance on Municode as to
make future changes more streamline and negate the need for the ordinance to be restated each time a change
needs to be done.
B. New Trustee Handbook
Mrs. Jensen presented the Board with the New Trustee Handbook that her firm created to cover the provisions
contained with the Plan, Operating Procedures, Administrative Rules, along with the provisions of the various State
Statutes, Federal Laws, and IRS Tax Codes that the Plan is governed by.
C. Firefighter Service Purchase Prior Firefighter and Miliary Service 2022
Mrs. Jensen reviewed the proposed ordinance to adopt new service purchase provisions per the IAFF Collective
Bargaining Agreement for Firefighters within the Plan in detail with the Board Members and Mr. Amorese explained
the considerations for the service purchase cost. Mrs. Jensen stated that she will add this service purchase
agreement to the Ordinance Restatement and that she needs Board Authorization to add the Firefighter Service
Purchase Ordinance Restatement. Trustee Zachary Wichert asked if the Firefighters could
purchase part-time Firefighters Service, as he was a part-time Firefighter for the Village before he was hired on as a
fulltime Firefighter. Mrs. Jensen clarified the state definition of qualifying service purchase does not allow for the
purchase of part-time service. Trustee Wichert raised several questions regarding his employment status with the
Village as an intern or interim firefighters under a prior village program that he and several other current Firefighters
were a part of for multiple years. There was a detailed discussion regarding the program which resulted in Trustee
Wichert choosing to abstain rom the vote to add the firefighter buyback provisions to the Ordinance Restatement.
MOTION:
Chairman Kristopher Cowles made a motion to approve Attorney Bonni Jensen to send the proposed
Ordinance Restatement as presented to the Village for consideration. Trustee Rick Sartory seconded
the motion, which carried by a 3-0 vote. (Trustee Zachary Wichert abstained from voting and Trustee Ray
Korkowski was not available)
Mrs. Jensen then reviewed the updated Special Tax Notice with the Board, explaining the updates that
were made and how the Special Tax Notice is useful and informative for any Plan Member that is retiring
or taking an early retirement with regards to their DROP and/or Share funds and the possible tax
implications of their distribution choice could have on those funds. Mrs. Jensen reported that her firm
need to be documented on the Audit Report. Mrs. Jensen concluded that the COVID-19 Bill that the was
she has not heard any additional chatter about it. Mrs. Jensen concluded with an update on the March
the Board that she will start creating the Presentation for Chairman Kristopher Cowles
9. ADMINISTRATIVE REPORT:
A. Resource Centers System Update
Mr. Baur informed the Board that his firm has implemented a new automatic notification system that will notify
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members who submits an application to enter into the DROP, retirement, or a refund of contributions that will give
the member updates as to the status of the processing of their application. Mr. Baur went on and explained that if
there is a delay in the processing of the application, the member would be notified by email, detailing what has
caused the delay and revise the expected completion date.
B. Trustee Conferences
Mr. Baur informed the Board that the various Trustee conferences have changed how they allow Trustees to reserve
their hotel rooms. In the past, the Trustee had to register for the event before obtaining the hotel reservation code,
now the Trustee Conferences post the reservation code which allows for the Trustees to reserve the room before
registration for the event opens.
10. ANY OTHER MATTERS:
There were no other matters to discuss at this time.
PUBLIC COMMENT
Mr. Lovingood informed the Board that no public comments or questions.
ADJOURNMENT
There being no other busines to discuss the meeting was adjourned at 11:29am.
Respectfully submitted,
________________________
Board Member
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