HomeMy WebLinkAboutRetirement Committee - Minutes - 10/08/2020
General Employees Retirement
Committee
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
GENERAL EMPLOYEES’ RETIREMENT COMMITTEE
MINUTES
OCTOBER 8, 2020
ZOOM
11:00 AM
Committee Members Present: Clark Mapes, Chair
Kelley Vodden, Vice Chair
Del Bernhardt
James Lathrop
Ralph Zentz
Members Absent: Jackie Darner
Others Present: Lauren Albanese, Financial Investment News
Joel Stewart, Milliman
Blaine Dunn
Jenny Lopez Filkins
Carolyn Koontz
___________________________________________________________________
Meeting called to order at 11:02 am
1. Citizen Participation and Plan Member Comments - none made or noted.
2. Plan Participant Updates (Blaine Dunn)
We do have one member with a beneficiary status question.
Estimated cost of legal fees is under $1K – resolution to be discussed at next meeting.
3. Consider approving the minutes from the meeting of July 9, 2020.
A motion to approve the minutes was made by Del Bernhardt.
Jim Lathrop seconded the motion. Minutes approved as presented.
Minutes approved via rollcall, verbal approval by James Lathrop, Ralph Zentz, Del Bernhardt,
Clark Mapes.
4. Quarterly Investment Report (Blaine Dunn)
6 new annuity payments, 5 lump sum payments and 11 terminations so far this year.
36 active members
61 terminated vested
268 retired plan members
DocuSign Envelope ID: A6998304-1A2A-45E6-AA65-6A252861E1C0
2
The General Employees’ Retirement Plan (the “Plan”) had a total market value of $46,306,204 as
of September 30, 2020 with a year-to-date return of 2.55%. Fixed income investments accounted
for 28% of the portfolio’s market value. Domestic and foreign equity funds represented 55% and
17% respectively. The asset allocation targets are fixed income: 40%, domestic mutual funds:
45%, and foreign mutual funds: 15%. The Plan investment policy allows for a variance of 10%
above or below each of the stated targets.
QUARTERLY PERFORMANCE & PORTFOLIO REVIEW
Portfolio
Portfolio
Return YTD
Benchmark
Return YTD Difference
Market Value of
Portfolio
Fixed Income 1.65% 0.48% 1.17% $13,163,129
Domestic Mutual Funds 6.77% 2.62% 4.14% 25,343,833
International Mutual
Funds
2.39% -3.58% 5.98% 7,799,242
QUARTERLY ECONOMIC INDICATORS
Economic reports provided the following information regarding the strength of the economy and
the pace of inflation.
• National Unemployment rate is 7.9%, down from 11.1% at the end of the previous quarter.
• Consumer Confidence increased to 101.80 from 98.30 at the end of last quarter.
• Gross Domestic Product for the 2nd quarter 2020 was -31.4%, down from -5.0% at the end
of the previous quarter.
• Core CPI year over year is at 1.3%, up from 0.6% at the end of the previous quarter Inflation
is a concern because it erodes the purchasing power of fixed income.
Blaine Dunn; we did get below in cash which will be fixed today. We are back in alignment with
fixed income – within 30% selling off some mutual funds to bring cash number back up.
5. Other Business:
Baine Dunn; the city has issued an RFP for actuarial services. Responses are due back by
October 16th. 5-year term is up with Milliman. Decision should be made before the end of the
year.
Hoping to complete proposed updates to the plan before the end of the year. The proposed
updates will be brought to the Committee prior to Council.
Meeting adjourned at 11:28 am
Clark Mapes, Chair
Carolyn Koontz, Staff Liaison
DocuSign Envelope ID: A6998304-1A2A-45E6-AA65-6A252861E1C0