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Home My WebLink AboutRetirement Committee - Minutes - 10/10/2019iytb"tuns General Employees Reliaemenl Committee 215 N. Mason 2 d Floot PO Box 580 Fort Collins, CO 80522 970.221.6788 970 .221 .6782 - tax lcgov.cofi GerueRel EMpLoyEES' BETTREMENT Corvrmrrree MINUTES Ocroeen 10,2019 215 N. MASoN - CoupeReruce RooM 1 B - F|RST FLooR - 1 :15 prvr Committee Members Present: Clark ti/apes, Chairman Del Bernhardt John Lindsay Ralph Zentz Members Absent: Others Present: John Voss, Vice Chairman James Lathrop Blaine Dunn Jenny Lopez Filkins Joaquin Garbiso Nikki Daniels Carolyn Koontz Meeting called to order at 1 :15 pm Joaquin Garbiso introduced Nikki Daniels who is the new HR contact who will be supporting the GERC replacing Janie Appleton who retired. 1. Citizen Participation and Plan Member Comments - None made or noted. 2. Consider approving the minutes from the meeting of August 8,2019. Motion to approve the minutes made by John Lindsay Motion seconded by Del Bernhardt. August Bth meeting minutes approved as presented 3. Beview Quarterly lnvestment Report (Blaine Dunn) Tech Sector is a|24.5"k of the total portfolio - Equity Sector limit is 25% - iI il goes over 25% rebalancing will be done before end of quarter. lVlutual fund analysis is done quarterly. So much volatility in market right now makes it difficult to benchmark. c GERP Portfolio at a little over $47lVl It/lore lump sums being taken - 4 lump sums and 3 terminations JSlYtbouns V-.-- Admin lees paid by GERC include $25.5K to Milliman. Blaine will ask Milliman if they have any benchmark information for fees. Review the fees being paid by the plan. Less risk and better return realized by spreading assets across more categories - expense ratio is new on mutual fund analysis. Sold some international funds to cover lump sum payments and to keep cash 4. Review lnvestment Policy Statement IPS (Blaine Dunn) Iins Purpose of Policy . Stating Committee's expectations, objectives and guidelines for investments . .assets Setting Providing investment guidelines structure for investment for the portfolio plan controlling overall risk and liquidity . Establish criteria to monitor, evaluate, and compare performance results Objectives of Policy . Achieve and maintain a fully-funded status . Have ability to pay all benefit and expense obligations when due . Meet or exceed actuarial investment earning assumptions '\-FSPfbouins =.--- Current Assets - $47,129,041 Currently Closed to New Members Purpose & Objective of lnvestment Policy Planning Horizon - Over 5 years 2 Participants . .Active 45 69 - - . 270 - Terminated Retired Members Vested Overview of Plan '\--FSlYtbo[r-- rns On track to overachieve 6.257o no new employees - no influx of cash to offset market returns lmpact of adoption of new life expectancy tables 80-85% funded range is the goal - this year we are at 67% - dropped quite a bit Discussions in Jan / Feb based on what the market does at the end of the year - including the possible need to discuss requesting an increase in the City contribution- next budget cycle - Milliman's projections go out to 2067 Asset Classes Approved for the Plan 1. Cash and Cash Equivalents 2. Domestic Fixed lncome 3. Bond Mutual Funds 4. Domestic Equities 5. lnternationalEquities Committee has elected to use mutual funds to achieve equity portion 'L-fSiYfbo[-= ins Cash & Domestic Fixed Inmme Bond Mutual Funds Cash & Domestic Fixed lncome Bond l\rutual Funds 30% o% 35% 5.h 4OYo wA 45% '15% 50% 200/0 55o/5 25vo 32.0o/o oo/o 53.3% 14.70/o Domestic Equity lnternational Equity Domestic Equity lnternational Equity lnvestment Policy allows to be +/-'10% from strategic allocation GERP Asset Allocation Lower Limit Strategic Allocation Upper Limit J '!:3ifbouins ---- Strateqic Asset Allocation Current Asset Allocation Asset Allocation Restraints Blaine is using the guardrails of plus or minus 10% to the plan's advantage / creating better returns CFO of the City, currently Mike Beckstead, is the {unding agent for the plan. He has delegated some responsibilities to Blaine including investments. The IPS was last changed in 2011 and this was due to a legal concern. lt is the committee's prerogative to update or change. Clark Mapes asked about the other investment options lnnovest mentioned. Blaine indicated some options are less liquid than mutual funds - would need to do additional research and a good amount of due diligence would need to be done. Something to be said about diversilying across the asset classes but we would need to be larger to see gain tor diversifying and this would involve additional fees. 5. Discuss thoughts and comments regarding items covered in the Fiduciary Training at the August 8th meeting (Blaine Dunn) Clark lVlapes would like for this training to be part of onboarding new GERC members. It is lmportant for this board to have fiduciary training once a year. At a minimum share the lnnovest deck with new members. We will try to schedule Fiduciary Training for April 201h GEBC meeting. Blaine will check on the cost of the training. Process for all new members should include an overview of what we do as well as sharing the website information. Jenny Lopez Filkins mentioned that the lnnovest Fiduciary Training delivered to the GERC was the best she has attended. Blaine Dunn: we are a retail account with Fidelity - based on our plan - we are not able to move off of a retail account - Blaine is having additional discussions with lnnovest on other ways fees could be lowered - theory is if we brought lnnovest on as advisor - could result in reduced fees. GERP funds are in the lowest fee classes they can be in. It's possible that if lnnovest acts as advisor on account, GERP could get different share classes. Jenny Lopez Filkins asked the committee if any members have any ideas about changes to the GEBP IPS they would like to make. lt could be updated with current information such as population and there may be other things the Committee wants updaled. The process would involve a committee member making a motion regarding a requested update to the IPS and the motion passing. Jenny Lopez Filkins would draft a resolution lor the committee to consider at the next scheduled meeting. No committee member mentioned any specific revision to be made to the GERp lps or made a motion to change the Policy. 4 fSiYtboums V/.-'-- ltns Blaine Dunn took an action ior the committee to bring suggested updates to the IPS back to the committee for consideration. The objective is to make it more accurate and up to dale. John Lindsay will not be able to attend the November meeting Meeting adjourned at 2:1 5 PM Clark IVIapes, hai l2 Itrlr t Carolyn Koontz, Staff Liaison 5 I