Police Officers' Retirement System Pension Board of Trustees Meeting

CITY OF BRADENTON POLICE OFFICERS' RETIREMENT SYSTEM BOARD OF TRUSTEES QUARTERLY MEETING MINUTES CITY HALL, COUNCIL CHAMBERS 101 OLD MAIN STREET, BRADENTON, FL 34205 Thursday, February 6, 2025, at 9:30AM TRUSTEES PRESENT: Brian Thiers David Grantham Ross Hodges John Booth Adam Wollard TRUSTEES ABSENT: None OTHERS PRESENT: Blanca Greenwood, Klausner, Kaufman, Jensen, & Levinson Burgess Chambers, Burgess Chambers & Associates Ferrell Jenne, Foster & Foster Jeff Amrose, GRS 1. Call to Order- Ross Hodges called the meeting to order at 9:30AM. 2. Roll Call - As reflected above. 3. Public Comments - None. 4. Approval of Minutes a. November 7, 2024, quarterly meeting The Board approved minutes from the November 7 1 2024 1 quarterly meeting, upon motion by Brian Thiers and second by David Grantham; motion carried 5-0. 5. New Business a. Update on Trustee terms i. Ferrell Jenne stated the term for Brian Thiers expires on 6/1/2025. Brian confirmed he would like to serve another term. Ferrell stated they will send out a nomination notice to the membership to determine if anyone would like to run against Brian. 6. Reports (Attorney/Consultants) a. GRS, Jeff Amrose, Board Actuary 1. October 1, 2024, valuation report 1. Jeff Amrose reminded the Board the contributions set forth in the October 1, 2024, valuation report were applicable to fiscal year-ending September 30, 2026. 2. As of October 1, 2024, the required employer contribution lowered to 30.20% of covered payroll, which was almost a 1% 1

decrease. Jeff explained the required employer contribution increased if you look at the dollar funding . 3. Jeff Amrose stated the funded ratio of the plan was approximately 86% and reviewed the growth in the active member population and associated increase in the covered annual payroll. 4. Jeff Amrose reminded the Board they adopted a glidepath to slowly reduce the investment return assumption by 5 basis points each fiscal year until the plan reached 7.00%. 5. Jeff Amrose stated the plan would need to adopt the new mortality table, which would likely cause an increase in the funding requirements. 6. Jeff Amrose reviewed the State Monies and reminded the Board this was a funding source in the valuation report. The City could use up to $600,000 to offset their funding requirements and then everything over this amount goes into the share plan. 7. Jeff Amrose reviewed the unfunded actuarial accrued liability (UAAL) and the 30-year amortization period. Jeff reminded the plan used a 5-year smoothing technique to realize all gains and losses. The Board approved the October 1 1 2024, valuation report as presented, upon motion by David Grantham and second by John Booth; motion carried 5-0. The Board voted the declaration of returns for the plan shall be 7.25% for the next year, the next several years, and the long-term thereafter net of investment related expenses, upon motion by Brian Thiers and second by David Grantham; motion carried 5-0. b. Burgess Chambers & Associates, Burgess Chambers, Investment Consultant i. Quarterly report as of December 31, 2024 1. Burgess Chambers discussed the high yields they were seeing in the bond market. Burgess discussed the convertibles managers and stated he recommended terminating the managers and moving some of that asset class to the index. Burgess stated this represented approximately $4 million or 4.00% of the portfolio. Burgess commented this would save the plan approximately $30,000 in management fees per year. The Board discussed the performance of each manager and the possibility of terminating Advent first and then SSI thereafter. The Board approved terminating Advent and moving the funds into the ICVT index, upon motion by David Grantham and second by John Booth; motion carried 5-0. 2. Burgess Chambers briefly reviewed the market environment during the quarter and reviewed the redemption requests the 2

plan had placed with the real estate managers. The Board discussed the real estate market outlook and Burgess recommended the plan to get out of the redemption queue as he thought this asset class would begin having stronger returns again. The Board voted to rescind the redemption queue for Barings and American Realty, upon motion by David Grantham and second by John Booth: motion carried 5-0. 3. The market value of assets (MVA) as of December 31, 2024, was $103,432,765. The total fund net returns were -0.2% for the quarter compared to the benchmark of 0.3%. The trailing total fund net returns for the 1, 3, 5 and 10-year periods were 13.6%, 3.5%, 7.3%, and 6.6% respectively, compared to the benchmarks of 13.8%, 4.4%, 8.3%, and 7.4% for the same respective periods. a. Klausner, Kaufman, Jensen, & Levinson (KKJL), Blanca Greenwood, Board Attorney i. Blanca Greenwood reviewed a memo from their office regarding retirees who lived outside the U.S. These retirees were no longer permitted to elect no withholding per the IRS. ii. Blanca Greenwood stated the last Summary Plan Description (SPD) was done almost two years ago, so it was time to update this document. Blanca reminded the Board there had been a handful of benefit changes since the last SPD was done. The Board approved KKJL to update the SPD, upon motion by Brian Thiers and second by David Grantham; motion carried 5-0. iii. Blanca Greenwood stated they prepared a new trustee handbook. 7. Old Business - None. 8. Consent Agenda a. Invoices for ratification i. Warrants #117 and #118 b. New invoices for payment i. None c. Fund activity report for November 1, 2024 - January 30, 2025 The Board approved the consent agenda as presented, upon motion by Brian Thiers and second by David Grantham; motion carried 5-0. 9. Staff Reports a. Foster & Foster, Ferrell Jenne, Plan Administrator i. Actual expenses as of September 30, 2024 3

1. Ferrell Jenne reviewed the actual plan expenses as of September 30, 2024, and the requirement to report this information to the state. Ferrell reminded the Board they did not need to track the fees of the investment managers. The Board voted to approve the September 30, 2024, actual expenses as presented, upon motion by Brian Thiers and second by John Booth; motion carried 5-0. ii . Educational Opportunities 1. Ferrell Jenne reviewed the upcoming FPPTA conference available to the Board. 10. Trustees' Reports, Discussion, and Action - None. 11. Adjournment - The meeting adjourned at 10:37AM 12. Next Meeting - May 1, 2025, Quarterly Meeting at 9:30AM R . Hodges, Chairman Date Approved by the Pension Board: _ _,Q__.\---\.....\-'J..piUJ-0.,..,dw...,,5-'--------- 4

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CITY OF BRADENTON POLICE OFFICERS’ RETIREMENT SYSTEM

PENSION BOARD OF TRUSTEES QUARTERLY MEETING

CITY HALL, COUNCIL CHAMBERS

101 OLD MAIN STREET, BRADENTON, FL 34205

AGENDA

Thursday, February 6, 2025 – 9:30AM

Pursuant to Chapter 286, F.S., if an individual decides to appeal any decision made with respect to any

matter considered at a meeting or hearing, that individual will need a record of the proceedings and will

need to ensure that a verbatim record of the proceedings is made. In accordance with the Americans with

Disabilities Act, persons needing assistance to participate in any of these proceedings should contact City of

Bradenton ADA/Title VI Coordinator at (941) 932-9400 or adacoordinator@cityof bradenton.com prior to

the meeting.

I. CALL TO ORDER/ROLL CALL/DETERMINATION OF A QUORUM

II. PUBLIC COMMENTS

III. APPROVAL OF MINUTES

1\. November 7, 2024, quarterly meeting

IV. NEW BUSINESS

1\. Update on Trustee terms

a. Brian Thiers, member appointed, expires 6/1/2025

V. REPORTS (ATTORNEY/CONSULTANTS)

1\. GRS, Jeff Amrose, Board Actuary

a. October 1, 2024 valuation report

2\. BCA, Burgess Chambers, Investment Consultant

a. Quarterly report as of December 31, 2024

3\. KKJL, Blanca Greenwood, Board Attorney

a. New Withholding Rule

b. Updated Summary Plan Description, last done 2/1/2023

VI. OLD BUSINESS

VII. CONSENT AGENDA

1\. Invoices for ratification

a. Warrant #117, #118

2\. New invoices for payment approval

a. None