Firefighters' Pension Investment Fund

The Elections Committee reviewed the draft 2020 Trustee Elections Rules, discussing amendments concerning deferred beneficiaries' voting/candidacy eligibility, electronic petitions, and third-party election materials. The Committee authorized solicitation of proposals for electronic signature services. Amendments were approved to structure the five-member election panel composition. The Committee also reviewed the draft 2020 Trustee Elections Schedule and discussed required inclusions for candidate packets, such as cover letters and relevant state statutes. A request for information was presented regarding a voter file vendor, with responses due shortly. Public comments were addressed, confirming no cost for database generation for local Article 4 pension boards, and other website-related inquiries.

The committee discussed the election of the Chairperson, with Vice Chair Sullivan being elected to the role. Key legislative updates were reviewed concerning House Bill 1248 regarding the FPIF Board of Trustees and Senate Bill 238 concerning Veteran Owned Businesses, with the committee noting that monitoring is ongoing. The committee considered and approved proposed FPIF legislation, including amendments related to the FPIF Oath of Office, Trustee Travel Expenses, Participant and Beneficiary Ballots, Trustee Vacancies, Publishing of FPIF Rules, and Custodian -- Corporate Surety Bond. An amendment regarding Trustee Vacancies was adopted to specify that an appointed trustee fills the term until a successor is elected. The responsibility for appointing a trustee to fill a vacancy was confirmed to rest with the FPIF Board of Trustees, with deference given to specific trustee groups for recommendations.

The Elections Committee meeting focused on vendor presentations for Voter File services from Foster and Foster and Lauterbach & Amen, LLP, including discussions regarding data submission requirements for local Pension Boards. The committee also reviewed and discussed amendments to the 2020 Trustee Election Rules concerning eligibility, petition format, and election panel makeup. Furthermore, amended drafts of the 2020 Trustee Election Schedule and the 2020 Trustee Election Candidate Packet were reviewed. The committee unanimously recommended utilizing electronic petitions for the election due to COVID-19 related health and safety concerns.

The key discussions focused on the Investment Policy and the presentation of finalists for two major Requests for Proposals (RFPs). For the Investment Policy, the committee reviewed asset allocation presentations, specifically inquiring about fixed income allocation compared to statutory guidelines, the expected rate of return for member funds, and proposed portfolio rebalancing frequency using allocation ranges. The draft Investment Policy Statement was presented, detailing investment objectives, philosophy, and risk management. In the Passive Investment Manager RFP segment, finalists State Street Global Advisors and Rhumbline Institutional Index Management presented their indexing capabilities, goals, fee structures, and best execution approaches. For the Actuary RFP segment, finalists Foster and Foster and GRS presented their experience with Article 4 pension plans, valuation methodologies, team credentials, and quality control procedures to ensure accurate valuations.

The Investments and Operations Committee meeting focused on several key operational and investment updates. The Portfolio Officer reported on market performance for October 2022, noting strong performance in the S&P 500, S&P 600, and Dow Jones, while emerging markets lagged and the bond market experienced rising rates. The committee reviewed the monthly performance report as of October 31, 2022, detailing asset allocation (30% fixed income, 63.6% equities, 5.2% real estate) and total market value. Updates were provided regarding the status of the Fixed Income Request for Proposal (RFP), with a formal recommendation anticipated at the next meeting. Furthermore, an update on the External Legal Counsel RFP indicated that eight responses were received, and a formal recommendation was provided for review at the subsequent meeting. Future discussions scheduled for the spring of 2023 include a review of FPIF job descriptions and an evaluation of Marquette Associates' performance as the investment consultant.