HomeMy WebLinkAboutMinutes Fire Pension 102721CITY OF PALM BEACH GARDENS
FIREFIGHTERS' PENSION BOARD OF TRUSTEES
QUARTERLY MEETING MINUTES
City Hall, Council Chambers
10500 North Military Trail, Palm Beach Gardens, FL 33410
Wednesday, October 27, 2021, at 1:OOPM
TRUSTEES PRESENT: Mike Zingaro
Rick Rhodes
Jon Currier
Thomas Topor
Eric Bruns
TRUSTEES ABSENT: None
OTHERS PRESENT: Michelle Rodriguez, Foster & Foster
Siera Feketa, Foster & Foster
John Thinnes, AndCo Consulting
Pedro Herrera, Sugarman and Susskind
Janice Rustin, Lewis Longman Walker (City Representative)
1. Call to Order — Rick Rhodes called the meeting to order at 1:00pm.
2. Roll Call — As reflected above.
3. Public Comments
a. Rick Rhodes welcomed Thomas Topor to the Board. Thomas gave an overview of his
background and his experience serving on another board.
b. Janice Rustin introduced herself commenting she was there to speak about Keith Bryer.
Janice Rustin commented they would like him to be treated as any other member of the
plan.
4. Approval of Minutes
The Board approved the July 28, 2021, quarterly meeting minutes, upon motion by Jon Currier and
second by Eric Bruns; motion carried 5-0.
5. New Business
a. Proposed 2022 meeting dates
i. Rick Rhodes briefly reviewed the meeting dates. Siera Feketa commented she
sent them to the investment consultant and the plan attorney. The Board agreed
by consensus with the proposed 2022 meeting dates.
ii. Jon Currier commented he would plan on holding the seminar during the January
meeting so the consultants could attend. Jon commented he would work on
getting that together.
b. Keith Bryer — COLA and DROP interest
i. The Board agreed to move agenda item to later in the meeting so that the plan
attorney could be in attendance.
Consent Agenda
a. Payment ratification
i. Warrant #46 and #47
b. Payment approval
i. None
c. Fund activity report for July 22, 2021 through October 20, 2021
The Board approved the Consent Agenda as presented, upon motion by Eric Bruns and second by
Mike Zingaro; motion carried 5-0.
7. Old Business — None.
8. Reports
a. AndCo Consulting, John Thinnes, Investment Consultant
i. Quarterly report through September 30, 2021
1. John Thinnes gave a brief review of the market environment for the
quarter.
2. John Thinnes reviewed the schedule of investable assets.
3. The market value of assets as of September 30, 2021 was
$140,572,244.
4. John Thinnes reviewed the asset allocation by asset class. John
commented he had no recommended changes with the managers. John
reviewed some asset classes they could discuss adding in the future.
John commented they had about five million dollars in cash right now so
he would ask for a motion to rebalance in accordance the IPS.
5. John Thinnes reviewed the financial reconciliation.
6. The total fund gross returns for the quarter were-0.13%, slightly
underperforming the benchmark of .31%. The total fund trailing gross
returns for the 1, 3, 5, 7, and 10-year periods were 20.07%, 10.35%,
10.98%, 9.36% and 11.16% respectively. Since inception (May 01,
1998), total fund gross returns were 6.89%, slightly underperforming the
benchmark of 6.90%.
7. John Thinnes reviewed the returns of the investment managers.
8. John Thinnes and Eric Bruns discussed Garcia Hamilton.
9. Mike Zingaro commented he felt inflation was less transitory and asked if
there was anything they should do as a board to help with that. John
Thinnes briefly reviewed a couple additions they made to the portfolio to
help with the inflation. John commented at the next meeting they could
discuss some private debt options. Mike commented he would like to do
some research between meetings to be prepared. John commented he
would send the private debt primer out a week before the next meeting.
10. John Thinnes requested approval to invest the cash in accordance with
the IPS. Eric Bruns asked how much. John commented roughly five million
dollars, but it would depend on how much the benefit payments were.
11. Rick Rhodes asked if the large amount was the City's contribution. Siera
Feketa commented it was, in the amount of $4,800,000.
12. Eric Bruns and John Thinnes discussed AndCo's outlook on when they
could invest in cryptocurrency.
The Board approved investing the excess cash in accordance with IPS as recommended by
investment consultant, upon motion by Eric Bruns and second by Jon Currier; motion carried 5-0.
9. New Business (continued
a. Keith Bryer — COLA and DROP interest
i. Pedro Herrera gave a brief overview of the situation commenting he was in DROP
and during his DROP he was promoted to Chief. Pedro commented rather than
separating service at the end of his DROP he entered into an employment
agreement with the City stating he would not be earning anything further in the
plan while employed. Pedro commented he raised the question with the City that
he stayed past his DROP participation. The City attorney opined that in the City's
Ordinance it stated "a covered City employee" which they did not feel applied to
the Chief as he did not have member contributions. Pedro commented that was
how the City interpreted the Ordinance and that was fine if that was how they
wanted to interpret the Ordinance.
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ii. Siera Feketa commented the question was whether he could earn interest in
DROP and on his Share Plan account and if his COLA should be applied as if he
exited DROP. Pedro Herrera commented he would like clarification from the City.
iii. Janice Rustin reviewed commenting he had not taken a distribution and she was
asking that the Chief be treated just like any other retiree. Janice commented it
was the City's position that his COLA continue to be calculated and he continue to
earn interest in the DROP/Share Plan. Pedro Herrera commented with respect to
DROP he did not disagree, but he was having difficulty with the COLA as the
Ordinance spoke to the COLA commenting the COLA language did speak to
covered employment and asked Janice if the City used the same position with
covered employment with the COLA language. Janice commented that was
correct, they did not consider him a covered employee. Janice commented she felt
he should get the increase.
iv. Mike Zingaro asked Janice to discuss covered City employment. Janice Rustin
commented it was not defined in the plan, but the Fire chief could opt out of the
plan, so he was working in a position that he was not contributing to the plan or
earning benefits and they did not consider him a covered employee.
v. Pedro Herrera asked if DROP members would be considered covered members
of the plan. Janice Rustin commented she would have to look further into it.
vi. The Board discussed the COLA and if the Ordinance addressed this issue. The
Board discussed the language in the Ordinance commenting the plan mandated it
was given at the end. Rick Rhodes and Janice Rustin discussed the COLA and
what the amount should be as it should be given every year, but he was not
currently receiving a benefit.
vii. The Board and Pedro Herrera discussed if this had happened in other cities. Pedro
commented this was the City's Ordinance and that was the City's interpretation,
and he felt that was a reasonable interpretation. Pedro commented his only
concern was if DROP members were covered under City employment. The Board
discussed cleaning up that language.
viii. Eric Bruns and Pedro Herrera discussed if there was an actuarial impact on the
plan. Pedro reviewed commenting he did not think there would be an adverse
impact, but he was not the actuary.
ix. The Board discussed the tax status with the IRS and if that would be impacted.
Pedro Herrera commented no since he was not taking and had not taken any
distribution. Pedro commented he didn't see any adverse tax consequences.
x. The Board agreed to calculate the COLA as if he separated and he would continue
to earn interest on the DROP and Share Plan. Rick Rhodes commented the
member would have to pay for any calculations outside of the one calculation
covered by the plan. Siera Feketa commented the actuary may not bill for it unless
he specifically requested it on letterhead. The Board requested Foster & Foster
provide the amount to him as if he remained employed. Siera commented she
would work on getting that amount.
10. Reports (continued)
a. Sugarman and Susskind, Pedro Herrera, Plan Attorney
i. Pedro Herrera reviewed the laws regarding trustees receiving gifts and the
requirement to report gifts if they were over a specific value.
ii. Siera Feketa asked if Pedro Herrera had an update on the Ordinance. Pedro
commented he did not and suggested cleaning up some language with the City
since they were already working an amendment.
iii. Pedro Herrera reviewed the upcoming Division of Retirement from November 3-5,
2021, in Orlando, FL and the FPPTA Winter Trustee School from January 23-26,
2022, in Orlando, FL.
11. Staff Reports, Discussions and Action
a. Foster & Foster, Michelle Rodriguez/Siera Feketa, Plan Administrator
i. Update on State monies
1. Siera Feketa commented the State monies were received on August 26,
2021, in the amount of $719,467.24.
ii. Update on collection of contributions for leave time
1. Siera Feketa gave a brief update commenting there were about eight
members that still needed to pay their contributions on their leave
balances.
2. Pedro Herrera commented they could withhold the contributions from a
pension check eventually if they did not respond. Pedro commented the
Board could take action.
3. Siera Feketa commented they would continue to follow up.
4. Jon Currier asked at what point they could decide to take action. Pedro
Herrera commented since it was not on the agenda, they could place it
on a future agenda and discuss taking action then.
iii. Renewal of FPPTA membership
1. Siera Feketa briefly reviewed the FPPTA membership renewal.
The Board approved the 2022 FPPTA membership renewal, upon motion by Eric Bruns and
second by Jon Currier, motion carried 5-0.
2. Rick Rhodes commented they did not need to renew his CPPT
membership as it had already been paid.
3. Pedro Herrera reviewed other organizations the Board could join, such
as IFEBP and NCPERs, commenting it would be reasonable expenses.
iv. Upcoming educational opportunities
1. FPPTA Winter Trustee School, January 23-26, 2022, Orlando, FL.
a. Siera Feketa commented this was covered earlier in the meeting.
12. Trustee's Reports, Discussion and Action
a. Rick Rhodes briefly reviewed Thomas Topor's experience on another board.
b. Pedro Herrera and Thomas Topor discussed the Ordinance and the process to clean up
the language in the Ordinance, so they did not have any questions come up again if
someone else were to stay past their DROP participation period.
c. Thomas Topor asked if there were court cases and how the process would work. Pedro
Herrera reviewed the process. Thomas commented it could create a massive problem to
not close the loopholes. Pedro reviewed commenting it was generally only seen in the
Chief position.
Mike Zingaro left at 2:OOpm.
d. Rick Rhodes asked Pedro Herrera why he thought FRS required people to forfeit their
DROP if they work one day passed their max DROP period. Pedro reviewed commenting
he did not think it was a tax issue. Pedro reviewed the possible reasons.
e. John Thinnes asked Jon Currier what kind of presentation they would like for the workshop.
Jon Currier reviewed commenting he would send out a questionnaire to the membership
prior to the workshop so they knew what information to cover. Jon Currier commented the
actuary did not need to attend.
f. Jon Currier commented he planned on it starting at 9 or 10 am and Siera will notify the
Board of the time when it is confirmed.
13. Adiournment — The meeting was adjourned at 2:05pm.
14. Next Meeting — January 26, 2022, at 1:OOpm, quarterly meeting.
Respectfully submitted by: Approv d by:
Mic�Rodrig'u z� Plan Mministrator Jo urrier, Secre ary
Date Approved by the Pension Board: (� U I Z Z
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