SPECIAL GENERAL EMPLOYEE PENSION MINUTES

SPECIAL GENERAL EMPLOYEE PENSION PLAN BOARD MEETING A Special Meeting of the General Employee Pension Plan Board was held on June 27, 2023, at 11:00 a.m. with Mr. Gedney, Chair of the General Employee Pension Plan Board, presiding. Members present were Ms. Courtney, Ms. Peddicord, Dr. Pillsbury, and Mr. Welch. Mr. Anderson was absent. ADOPTION OF AGENDA Mr. Welch moved for adoption of the agenda, seconded by Ms. Courtney, and unanimously carried. COST OF LIVING ADJUSTMENT (COLA) Responding to Mr. Gedney, Mr. Hugg stated that he would defer to the City Clerk’s Office in terms of how COLA was added to the agenda. Mr. Hugg stated that it was brought to his attention by way of a memo from the Pension Board stating that they recommended putting it on the agenda. Mr. Hugg stated that after having a conversation with Mr. Gedney he asked that it be pulled off the agenda that evening. Responding to Mr. Gedney, Ms. Peddicord stated that she recalls at the last pension board meeting there were a lot of opinions of what the COLA should be. There was a request for an actuary study, but there was no direct guidance as to what percentage was being requested. There is more information that is needed in guiding the process before spending unnecessary funds. Responding to Ms. Courtney, Ms. Peddicord stated that the expenses come out of the pension plan. Ms. Peddicord stated that she would ask for some clearer guidance because originally there was a conversation about providing the cost for a COLA increase anywhere from one percent to five percent, which was presented at the last meeting. There were also several other percentages such as six percent and ten percent. Ms. Peddicord requested more solid information on how many different scenarios the board is looking for. Mr. Gedney asked if they could get a study of one percent increments from three percent to ten percent. Responding to Ms. Courtney, Ms. Peddicord stated that she does not have a specific timeframe as she was not involved in the prior actuary studies with the retirees, and she is not sure how much information will need to be provided. Responding to Mr. Welch, Ms. Peddicord stated that she is not the expert because she was not there when the study was done before. Ms. Peddicord stated that there is an actuary that completes a study for the active employees that have not yet retired but believes that those individuals are considered in the actuary for the retirees. Responding to Mr. Welch, Ms. Peddicord stated that she is sure that they are included because the goal is to figure out what the future cost would be. Responding to Mr. Gedney, Ms. Peddicord stated that once the actuary study is back based on the request of a three to ten percent COLA increase, based on one percent increases, she can deliver that.

SPECIAL GENERAL EMPLOYEE PENSION PLAN BOARD MEETING ON JUNE 27, 2023 PAGE 2 Responding to Ms. Courtney, Ms. Peddicord stated that the city already has a current contract with an actuary, however, an RFP just went out for it. The cost of the study that is being asked for will decide if it must be put out for bid. Ms. Peddicord stated that it would not be Milliman doing the study. Responding to Mr. Welch, Ms. Peddicord stated that the contract was for a five-to-seven-year period and was at the end of its life. The suggested best practice would be that those be put out for bid. Ms. Peddicord suggested that it be reviewed in August at the next meeting after they can gather some data and get preliminary costs. Responding to Mr. Gedney, Ms. Peddicord stated that there was an RFP out and they got proposals back and should be awarding that in the next few months. Ms. Courtney moved to do a COLA actuary study based on three percent to ten percent with one percent increases, and include the salary adjustments that were just done, and have that back on August 3, 2023. The motion was seconded by Mr. Welch and unanimously carried. REVIEW OF ORDINANCES Ms. Courtney stated that some of the ordinance issues that they are having are that there is an ordinance that says prior to changes being made to the pension, the Pension Board should see them and review them. Ms. Courtney stated that they are under the impression that there have been significant changes to the pension without bringing it to the board for any review, input, or advisory comments. For example, there was a rumor of multiple people being added to the pension, based on a letter from the City Solicitor, Mr. Rodriguez, but the board members had no indication that this was being done. Ms. Courtney stated there are issues where people had retired or come and gone in the past and certain instances were brought to the board. For example, through the HR department, there have been times they have had to vote on certain things. Ms. Courtney stated that it may be the transition of new staff, and more research may need to be done to make sure that the ordinances are being followed and the Pension Board members are included so that they do not look like they do not know what is going on because they were not included in the decision. Ms. Courtney stated that maybe there should be a meeting between the Clerk’s Office and General Pension Board to talk about ordinances, and how staff can guide the board, or how the board can guide the staff through that. Responding to Ms. Courtney, Mr. Hugg stated that he made a note to sit down with the new HR Director and find out what the process is and if the board has some examples of what sort of things did not go through the board, he would like to look at them and find out why. Mr. Gedney moved to meet executively with the Pension Board and other members to discuss the ordinances in regard to specific individuals. The motion was seconded by Ms. Courtney and unanimously carried. DISCUSSION OF EXPENDITURES Ms. Courtney stated that one thing that the Pension Board has not seen is any of the expenses, there is no list of what is paid out of the pension fund. For example, if the pension had to pay company ABC to do a study, how much was the cost and where did it come from, or are there other

SPECIAL GENERAL EMPLOYEE PENSION PLAN BOARD MEETING ON JUNE 27, 2023 PAGE 3 expenditures? Ms. Courtney stated that if it was being considered that a group is brought into the pension and an actuary study is done for that who pays for it and where does the money come from? Ms. Courtney stated that the board would like to see a list of expenditures moving forward so that they are apprised of what is coming out of the pension fund, not just the investment side. Responding to Ms. Courtney, Ms. Peddicord stated that in the past that information has not been provided but it is included in the Annual Comprehensive Financial statement. Responding to Ms. Peddicord, Ms. Courtney stated that quarterly when the board meets would be sufficient. Ms. Courtney moved to receive the expenditure report quarterly out of the Pension Board funding. The motion was seconded by Mr. Welch and unanimously carried. Mr. Welch moved for adjournment, seconded by Ms. Courtney, and unanimously carried. The meeting adjourned at 11:30 a.m. Robert Gedney Chair, General Employee Pension Plan RG/AR