The workshop, deemed critical for a unified understanding of the multiplier structure and the handling of state monies, is expected to bring together the members of the Palatka Pension Board and the fire pension board, along with the city manager and finance director. The goal is to reach a consensus on these issues before presenting a recommendation to the city commission. There was a clear sense of urgency from some board members to hold the workshop without delay, emphasizing the importance of not wasting time and the need for the city staff to have a solid grasp of the pension plans before the city’s budget process begins.

In addition to the workshop, the meeting touched on the performance of the pension plan, which has seen positive returns and highlighted the strategic changes made last August. These changes included an increase in the allocation target to large cap stocks and a decrease in the allocation to international stocks. The board reported the pension plan’s positive earnings and noted the impact of US tech stocks on the performance, which outperformed international stocks. Furthermore, the board discussed the stability of industrial assets, the refinancing market’s impact on net operating income, and the strong performance of high-yield corporate bonds.

The meeting also included a presentation on the bond market, with a rebound noted and a 6% total return for the fiscal year to date. With inflation expected to moderate, the board was advised that the portfolio had been strategically positioned to benefit from this trend by increasing sensitivity to lower rates and decreasing exposure to credit risk. The potential benefits of a 5% yield in the bond market were also highlighted, along with the overweighting of mortgages in the portfolio.

Another topic covered in the meeting was the recent IRS changes regarding disability annuity payments for First Responders and other disabled taxpayers. The board reviewed these changes, with the tax implications of disability payments clarified, stating that benefits calculated based on age or years of service would be taxable. This information is particularly relevant for current and future pension plan beneficiaries.

The board’s fiscal prudence was on display as they discussed controlling extraordinary expenses and reviewed the quarterly expenditures. The approved budget for the next fiscal year included expected expenses for the pension administrator and an upcoming conference. Additionally, the meeting featured a motion to reaffiliate existing signature authorizations and add a new signer, reflecting ongoing administrative adjustments.

Lastly, the board addressed the need for a special meeting in October to prepare for the December workshop. The board also considered the recovery of overpayments made to two retired members due to a clerical error, ultimately deciding to accept the overpayment as a loss rather than pursue recovery.