Defined Contribution Committee

Defined Contribution Committee Meeting Minutes 3-22-2024 1 of 3 3_ TOWN OF PALM BEACH DEFINED CONTRIBUTION PLAN COMMITTEE MINUTES OF THE DEFINED CONTRIBUTION PLAN COMMITTEE MEETING HELD ON FRIDAY, MARCH 22, 2024, AT 1:00 P.M. I. CALL TO ORDER & ROLL CALL The Defined Contribution Plan Committee was called to order on Friday, March 22, 2024, at 1:00 p.m. in the Town Council Chambers. In attendance were Members Barth, Guelli, Marx, and Miracle. Chairman Debrincat was absent. II. APPROVAL OF AGENDA Motion was made by Member Barth, seconded by Member Marx, to approve the agenda as presented. The motion passed unanimously, 4-0. III. APPROVAL OF MINUTES 1. Minutes from November 28, 2023 Meeting Motion was made by Member Guelli, and was seconded by Member Marx, to approve the Minutes for the November 28, 2023 meeting as presented. The motion passed unanimously, 4-0. IV. COMMITTEE MEMBER COMMENTS There were no comments from Committee members. V. PUBLIC COMMENTS There were no comments from the public. VI. PRESENTATION BY ANDCO CONSULTING Dave West, AndCo Consulting • Market and Investment Performance Review • Fiduciary Education Mr. West provided an overview of the market conditions and spoke regarding the concentration of the “Magnificent Seven” stocks. He warned about potential normalization of the market. He spoke regarding the impact of the dramatic pace of the interest rate increases by the Fed. He spoke briefly about the AndCo acquisition by Mariner and assured the committee that the firm will be keeping the same level of service.

Defined Contribution Committee Meeting Minutes 3-22-2024 2 of 3 3_ Mr. West provided a snapshot of the balances for the 457 and 401a plans, which were $69,863,743, up from $64,705,000 the previous quarter. He reported that that the total RHS plans were $6,599,000. He spoke regarding the asset allocations and reviewed the investment compliance spreadsheet. He spoke regarding specific funds that were flagged, such as the Neuberger Berman High Yield Fund and Inflation Focus Fund. He stated that they have no fund change recommendations at this time. He spoke specifically regarding the MissionSquare Stable Value Fund and the nature of the fund. He stated that a potential remedy of these issues is the addition of a money market fund, specifically a U.S. Treasury backed fund, such as the Goldman Sachs money market fund. He explained the “equity wash rule”, which requires stable value fund investors to wait 90 days to move from the stable value fund into the money market fund. Mr. West responded to a question from Mr. Miracle about where the funds could be transferred prior to moving it into the money market to avoid the wash rule. Mr. Miracle discussed recent developments from the Fed and spoke regarding the money market being a useful tool for employees. Mr. West stated that offering this option for long-term planning for participants and recommended that this would be a permanent addition to the plans. Mr. Brezak spoke regarding the importance of providing education to participants about the differences between the stable value fund and money market fund. Mr. West provided further fiduciary considerations about the money market fund option. Motion was made by Member Marx, and was seconded by Member Guelli, to proceed with the research and ultimate addition of a Money Market option, specifically the Goldman Sachs Money Market Fund. The motion passed unanimously, 4-0. VII. MISSIONSQUARE UPDATE Howard Brezak, MissionSquare Mr. Brezak provided an overview of the 2023 plan and key metrics. He stated that the value of all of the plans in November was $70 million and in December, they were valued at over $77 million. He spoke regarding the average account balance of participants in 457 being nearly $130,000. He provided an overview of the net investments vs. the market value and the contributions and distributions. He shared an exhibit that showed a list of the firms that are receiving the rollover distributions from the plan. He spoke regarding the asset allocation of the participants and spoke regarding the top five holdings by individuals. He spoke about the team of individuals who are working for the Town of Palm Beach, including the addition of a dedicated support staff person for the Town of Palm Beach. Mr. Brezak provided an overview of the goals for education and promotion of the plan for the upcoming year. He stated that participants are also supported once they have retired. He provided an update on the missing beneficiaries project. Jody Justice, People & Culture Generalist, spoke regarding the efforts by staff and Mr. Miracle requested a report at the next meeting with the number of those participants who are still missing beneficiaries. Mr. Brezak explained the benefits of the Financial Wellness website and spoke regarding

Defined Contribution Committee Meeting Minutes 3-22-2024 3 of 3 3_ encouraging participants to visit the website and utilize the calculators. He provided an update on the 2024 Webinar program and spoke regarding efforts to educate employees about April being Financial Literacy Month. Mr. Brezak spoke regarding Plan Sponsor toolkits and what resources can be provided to employees. He reviewed the new MissionSquare Employer Bulletin, ‘exchange’. He also spoke regarding the benefits of the MissionSquare CFP Professionals program to the participants. Mr. Miracle inquired about the questions that they have been receiving from employees to which Mr. Brezak and Ms. Justice responded. She provided additional information on outreach to the Public Works department and spoke regarding participation from the various divisions in response to a question from Ms. Barth. Ms. Barth emphasized the importance of Directors encouraging their staff to attend the MissionSquare events. Mr. Marx spoke about the financial education events that are hosted by the Police and Fire Foundation and Mr. Miracle expressed support of the possibility of the Town partnering with the Foundation on future events. VIII. REVISED MEETING SCHEDULE 1. Friday, May 10, 2024 (Change in original date) 2. Friday, August 16, 2024 (Change in original date) 3. Thursday, November 14, 2024 IX. ANY OTHER MATTERS There were no other matters discussed. X. ADJOURNMENT Motion was made by Member Marx, and was seconded by Member Guelli, to adjourn Defined Contribution Plan Committee meeting of March 22, 2024 at 2:00 p.m. Meeting audio is located at: https://townofpalmbeach.granicus.com/player/clip/2969?view_id=5&redirect=true