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BOARD MEMBERS PRESENT:
Jim Freeman, Chair
Allen Tusing, Vice Chair
Cheryl Miller, Secretary
Ana Rodgers
Robert Schofield
STAFF AND OTHERS PRESENT:
Lindsey Garber, Board Attorney
Scott Owens, Graystone Consulting
TJ Loew, Graystone Consulting
Cassi Bailey, Assistant City Clerk/Plan Administrator
Doug Lozen, Foster & Foster Actuary (Entered the meeting at 9:16 pm)
Chair Freeman called the meeting to order at 8:30 am. and conducted a roll call.
1. AGENDA APPROVAL
MOTION: Mr.Tusing moved, Mr. Schofield seconded, and the motion
carried 5-0 to approve the February 24th, 2025 General Employees’ Pension Board Agenda.
2. PUBLIC COMMENT
No public comment.
3. CERTIFICATION OF BALLOTS FOR THE TWO ELECTED TRUSTEE SEATS
MOTION: Mr. Tusing moved, Mr. Freeman seconded, and the motion
carried 5-0 to approve the Clerk’s certification of the election of Cheryl Miller and Robert Schofield for the General Employees’ Pension Board of Trustees.
4. REAPPOINTMENT OF ANA RODGERS TO THE GENERAL EMPLOYEES’ PENSION BOARD FOR A TERM ENDING DECEMBER 31, 2026 (INFORMATIONAL ONLY)
The City Commission reappointed Ana Rodgers to the General Employees' Pension Board for a term ending December 31, 2026.
5. ELECTION OF OFFICERS
MOTION: Mr. Tusing moved, Mr. Schofield seconded, and the motion
carried 5-0 to elect James Freeman as Chair for a term ending January 2027.
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MOTION: Mr. Freeman moved, Mr. Schofield seconded, and the
motion carried 5-0 to elect Allen Tusing as Vice-Chair for a term ending January 2027.
MOTION: Mr. Schofield moved, Mr. Tusing seconded, and the motion
carried 5-0 to elect Cheryl Miller as Secretary for a term ending January 2027.
6. APPROVAL OF MINUTES
MOTION: Ms. Miller moved, Mr. Schofield seconded, and the motion
carried 5-0 to approve the November 18, 2024 minutes.
7. APPROVAL OF EXPENSES
a.) First State Invoices dated: 1/9/25, received 2/17/25 and dated: 10/11/24, received 11/24/24
b.) Foster & Foster Invoice dated 01/31/25
c.) Klausner, Kaufman, Jensen & Levinson invoices dated: 12/31/24 & 11/30/24
MOTION: Mr. Tusing moved, Ms. Miller seconded, and the motion
carried 5-0 to ratify the paid expenses as presented.
8. INVESTMENT REVIEW
Scott Owens and TJ Loew, Graystone Consulting, presented the end of the quarter investment review, which was included in the Agenda.
TJ Loew shared that it was overall good news for the quarter. Right after the election, the market took off. The market, in anticipation of possible tariffs and higher growth, has pulled back starting in December. A diversified portfolio did not work this quarter.
International funds were highlighted. The fixed income market is trying to figure out what the FED is going to do. The FED stated it will be data dependent. Cash is about 4 ¼%. This is the first time in a while that we have seen volatility in the bond asset class. The FED is trying to get inflation to 2%, but we are still stuck around 3%.
Global Yield Differentials were discussed. The US is paying higher interest rates than other currencies.
The stock market was highlighted. Price to earnings, we’re 22% above earnings.
Mr. Owens shared that our fund is down 1.39% for the quarter. Our 1-year number is 8.97%, the benchmark is 12.34%. We’re a little underweight international, we’re a little overweight large cap-growth. He thinks we should take international underweight down to 4% rather than 5%. We’re still trying to get out of UBS (real estate). They think it will be a very volatile year. They’re hoping we will still end up ahead at the end of the year. Individual managers were discussed. Sawgrass was specifically discussed. We took half the
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money from Sawgrass at the last meeting and put it in the benchmark (Vanguard). This report only shows about 30 days of data for that adjustment. Congress didn’t do what they were supposed to do. He recommended bringing in a search at the next meeting for a mid-cap growth manager. Genter is a short-term fixed income manager, they hit it out of the park. It has done exactly what we wanted it to do. This was a homerun from an allocation standard.
UBS still believes in the 5-year timeline for full redemption. We’ve gotten about 30% of our money back since we put in for a full redemption.
Nothing is out of compliance, so there is nothing mandatory that needs to be changed.
Mr. Freeman questioned Anchor. Why not take it out and put it in cash until we find a manager we want? Procedurally, that is exactly what Mr. Owens wants to do. Defensive managers were discussed. Some of them did what we wanted them to. Mr. Owens said over the last ten years, if the market has gone down 10%, they have gone down 8.3%, which is exactly what we want. In general, they have absolutely gone down less. Those are the actual events that have taken place. Over the entire timeframe, they have done what we wanted them to. Mr. Freeman was satisfied with that explanation. This quarter, the market with diversification, did not work. The only thing that worked was the growth managers. Congress was a huge miss. Mr. Freeman would’ve liked to see a search today and not wait another 3 months to see that happen. Mr. Owens agreed that it was a huge miss. We can take this money and put it in cash, or we can put it in a passive option (mid cap growth) until we do a search.
Ms. Miller asked for an example of the passive growth manager that he was suggesting. Mr. Owens answered Russel mid cap growth, would be a passive option that would’ve been about 8% for the quarter. It follows the benchmark. Cash is around 4%.
Mr. Freeman thought this was a good recommendation to keep the same allocation and put these funds in the passive growth manager. Ms. Miller asked if we have a cap on how much cash we can have on hand. The answer was 5%. We currently have 1%.
Mr. Tusing was ok with his suggestion. He talked about the updated total fund allocation page. The breakdown of page 35 of the packet was questioned.
Ms. Rodgers asked if these percentages are net of fees. Mr. Owens answered, yes. Is there a view we can see how they are comparing against the benchmark? Mr. Owens answered, yes, on page 40 of the packet shows the overall plan summary. This is a return measure only. Ms. Rodgers asked about risk. Mr. Owens clarified this page does not show risk; it shows returns.
Mr. Tusing clarified that we have always chosen not to be too risky with the plan. We are dealing with a lot of people’s money, and the overall goal is to protect that money.
Mr. Loew reiterated that this plan’s target return is 6.75%. Mr. Owens and Mr. Loew continued to discuss the plan’s decision to be more conservative with our fund.
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Mr. Owens suggested taking the assets from Congress and putting them into the passive mid cap growth option until a search is done.
MOTION: Mr. Schofield moved, Ms. Miller seconded, and the motion
carried 5-0 to approve our investment consultant moving the assets from Congress and putting them into the passive mid cap growth option until a search is completed.
Mr. Owens also suggested bringing both international managers down to 4% and dispersing those funds into the 2 mid cap funds and 2 small cap funds.
MOTION: Ms. Miller moved, Mr. Tusing seconded, and the motion carried
5-0 to approve our investment consultant to bring both international managers down to 4% and dispersing those funds into the 2 mid cap funds and 2 small cap funds.
Ms. Rodgers asked how much the investment consultant fees were on page 39. They were a total of $25,053.56.
MOTION: Ms. Miller moved, Ms. Rodgers seconded, and the motion carried
5-0 to approve the investment consultant and manager fees as presented.
9. 2024 ACTUARIAL VALUATION REPORT
Doug Lozen, Actuary with Foster & Foster, presented the 2024 actuarial valuation report, which was included in the agenda packet. For the general employees’ plan, we will need to increase the City’s contribution to 13.60% from 12.59%. They use a 4-year average to determine this number. Members of the plan continue to contribute 5%. Investment returns and salary increases are the biggest contributing factors to what the City must increase. Our four-year average was 5.56%. The salary increase was 6.61% for the four-year average. He discussed future projections. The history of funding progress was discussed. From 2015-2020 we increased our funded status from 70% up to 100%. After 2020 we have declined to the mid 80%. He has no concerns with the plan. There is nothing shocking in this report. Next year, they will do a complete review of our plan. We will have to align with the updated mortality rate, increasing 1-2% to match the Florida Retirement System, FRS. He can run a study ahead of time, if we would like him to.
Mr. Freeman questioned the mortality study. Does it have to be done before the year’s assumption review? Yes, they have to adopt it with the 10/1/25 report. The mortality study would be incorporated in the following year’s percentage. Do they want to move up the entire experience study with the mortality study? It was suggested that we stagger the reports.
MOTION: Mr. Tusing moved, Mr. Schofield seconded, and the motion
carried 5-0 to accept the 2024 Actuarial Valuation Report.
MOTION: Mr. Schofield moved, Ms. Miller seconded, and the motion
carried 5-0 to instruct Mr. Lozen to conduct the mortality report and present it at the next meeting.
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Mr. Owens stated that they’re in agreement that 6.75% is a reasonable rate of return for the next year, next several years, and the long term thereafter.
MOTION: Mr. Tusing moved, Ms. Miller seconded, and the motion carried
5-0, based upon the advice of the investment consultant, the Board expects to get a 6.75% investment return for the next year, the next several years, and the long term thereafter.
Ms. Miller questioned looking at the retirees getting a cost-of-living adjustment, COLA. It was decided that the Board would look at a COLA at a minimum every 5 years. The last one was done in 2022. It would have to be looked at before October 1, 2026.
10. BENEFITS DISBURSEMENT APPROVAL
a. DROP PARTICIPANT
· None
b. SEPARATED NON-VESTED EMPLOYEE
· None
c. SEPARATED VESTED EMPLOYEE
· None
d. RETIRED EMPLOYEES
· None
e. DECEASED RETIREES
· None
f. DECEASED ACTIVE EMPLOYEE PAYOUT
· None
11. NEW MEMBER ACKNOWLEDGEMENT (Informational Only)
· Jose Santiago-Alvarado (01/02/2025)
· Candace Muckefuse (01/29/2025)
12. SEPARATED MEMBER ACKNOWLEDGEMENT (Informational Only)
· Mildred Norris (11/20/2024)
· Marisa Marthinwz (11/26/2024)
· Eurica Engram (02/21/2025)
· Antoinette Kilgore (01/08/2025)
13. 2025 SUMMARY PLAN DESCRIPTION (ATTORNEY GARBER)
Ms. Garber went through the updates in the summary plan, which were included in the agenda.
MOTION: Mr. Schofield moved, Ms. Rodgers seconded, and the motion
carried 5-0 to approve the March 1, 2025 Summary Plan Description.
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14. ATTORNEY GARBER’S REPORT
Ms. Garber discussed the new withholding requirements memo, which was also included in the agenda. This will only affect members that live outside the US.
15. PLAN ADMINISTRATOR’S REPORT
Nothing additional to report.
Mr. Freeman questioned Form PF 29 for pre-retirement elections. He wondered if this also includes early retirement. Ms. Garber will look at it and let him know.
Chair Freeman adjourned the meeting at 10:13 am.
Minutes approved: JUNE 2, 2025
CASSI L. BAILEY
CASSI L. BAILEY
ASSISTANT City Clerk/PENSION PLAN ADMINISTRATOR