Charles County Pension Plan Committee Meeting - November 6, 2025

The Charles County Pension Plan Committee met on November 6, 2025 to discuss the quarterly investment review and consider two proposed amendments to the pension plan. The committee approved previous meeting minutes, reviewed a positive portfolio performance, and voted to study an early retirement enhancement for non-public safety participants. A second proposal for service credit purchase was also advanced to a subcommittee for parameter development.

Consent Calendar

• Unanimously approved the minutes from the previous meeting.

Quarterly Investment Review

• Lazaro Buseman, from the investment advisor, presented a market overview noting significant volatility in early 2025 due to tariffs, a quick recovery, and year-to-date S&P 500 returns of approximately 18% prior to early November. The Federal Reserve cut rates in September and October.
• Total portfolio ended the quarter at approximately $375 million, up 4.2% net of fees for the quarter. One-year return was 10%, three-year 13.8%, five-year 8.5%, and ten-year 8.2%, all exceeding the long-term target of 7.05%.
• Current asset allocation is 55% equity, 5% real estate, 40% fixed income, no rebalancing needed.
• Discussed manager performance: Ivy fund on formal watch list due to underperformance from not owning certain high-flying stocks like Palantir. Small-cap managers lagged in the quarter. International manager performed strongly.
• Wes Adams asked about the process for replacing underperforming managers. The advisor explained they typically watch for 6–12 months and have a short list ready.

Plan Amendment Discussions

Proposal 1: Early Retirement Without Penalty for 31+ Years

• Trisha Tufle, an employee with over 32 years of service, requested that employees with 31 or more years of service be allowed to retire without the early retirement penalty (currently 3% per year before age 60). She noted that such employees no longer contribute to the plan.
• The committee discussed options including a "rule of85" (age + service years ≥85) or "rule of 90". David Papilardo, plan actuary, estimated a rule of 85 would affect roughly 30 individuals.
• The committee directed Papillardo to study the cost of rule of 85, 87, and 90, and the impact of requiring continued 4% contributions past 31 years. Study cost estimated at $10,000–$20,000.
• Vote: Motion to authorize the study for non-public safety participants passed unanimously.

Proposal 2: Purchase Up to 3 Years of Public Service Credit

• Wes Adams proposed allowing vested employees to purchase up to 3 years of previous public service credit at cost-neutral terms (employee pays both shares). This would help workers unable to port pensions from prior employers.
• Parameters discussed: only for non-public safety, must be prior public service, must already be vested. Purchase would use benefit multiplier at time of purchase. Employee may use funds from a 457 plan.
• The committee decided to form a subcommittee (Dan, Jake, Kathy) to develop specific parameters, then circulate for email vote (open meeting). Wes Adams will be recused from that vote.
• Action: Motion to authorize subcommittee to develop parameters passed (Adams recused).

Other Business

• Joyice Smith raised the possibility of a COLA enhancement for retirees similar to one being considered for the Sherif’s Office plan. Jake Dyer argued against enhancing benefits for former employees. No action taken.

Key Outcomes

• Approved previous meeting minutes.
• Authorized study of early retirement enhancement (rule of85, etc.) for non-public safety employees.
• Authorized subcommittee to develop parameters for service purchase provision.
• No action on retiree COLA.