HomeMy WebLinkAboutRetirement Committee - Minutes - 08/08/2019PfLottins
General Employees Betirement
Committee
215 N. Mason
2d Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
97O.221 .6782 - lax
fcgov.com
GerueRal Ennplovees' REfl REMENT CoMMITTEE
MlHures
Aucusr 8, 2019
215 N. Masoru - ConreReruce Room 1B - Frnsr Floon
- 1:15 pu
Committee Members Present: Clark Mapes, Chairman
John Voss, Vice Chairman
James Lathrop
John Lindsay
Ralph Zentz
Members Absent: Del Bernhardt
Others Present Kristin Stephens, Council Liaison
Blaine Dunn
Jenny Lopez Filkins
Joaquin Garbiso
Carolyn Koontz
Jared N/afiin and Peter Jt/ustian from lnnovest
IVeeting called to order at 1:15 pm
GERC Council Liaison Kristin Stephens attended the meeting. lntroductions were made
around the table.
1. Citizen Participation and Plan Member Comments - None made or noted
2. Consider approving the minutes from the meeting of June 13, 2019.
John Voss made a motion to approve the minutes as amended by Clark from the June
13th meeting as presented. Jim Lathrop seconded the motion. The minutes were
unanimously approved as amended below;
Added to sentence about 6 meetings per year; 'lnvestment reporl sometimes doesn't
merit a monthly meeting'.
[ins
3. Review Monthly Investment Report (Blaine Dunn)
Ganrrnl Employ..s' R.tiram.nt Plrn
Jur/ ll :0'9
I
,.,*.10,.,*. a,a. ia.{7,628.a1 s.5ri
21
r5 '3
IE
a rt
v,
n
:l
ll !
12
12
LS
-!g
:.ir
0g
ra
!74
4g
{31t
OG
1-A
1g
7.tA
1.01x
a.u
3ffi
r.s.&@
11@,rt.14
a&@.30
t.trr.Bt9
t.x,5a2
1.gar6.l,
1.6,&aq
1.S,8.61
r,0109.9!
{ i7r.B7_m
15&.t
as!.37a!
zgt
Ggr
t.M
2 7a\
]G
3.&r
21n
zTQq
4 ott
lg
gai
66
3
fffix
M
ffiu
rc
JSiYtbotuns
\=/r/---t
GERP members can request 2 computations per year as the benefit doesn't change
much. Active members will still receive a statement on a yearly basis and can also
request 2 additional computations.
HR will be in the know for all communications on behalf of the committee.
Transparency is key - easy to follow plan enables us to help retirees.
HR to direct potential retirees to take advantage of a free consultation with a certified
financial planner with ICMA or their own financial planner.
A question came up about whether there is a cost to the city for ICMA to provide
financial planning service to GERP members. HR responded that it depends if the
member has accounts / assets with ICMA, the record keeper. This is a very
underutilized benefit as of now. This benefit should be communicated to active
members.
5. Fiduciary Training (Jared Martin and Peter Mustian from lnnovest)
Follow process and document decision making governance.
Discussion took place about reducing the number of GERC meetings per year.
lnnovest said no issues as long as the GERP document or other gov6rning document
clearly defines and documents the number of meetings and the months they will take
place. Blaine Dunn has the authority delegated to him by the GERC to make decisions
using process and policy and the committee approved controls.
GERC is insured as long as we follow our rules and processes. Document decision
making process is key. GERC can engage / hire outside investment expertise as
needed. Due Diligence process should be reviewed annually as a best practice to
mitigate risk. Our lnveslment Policy Statement (lPS) lays out time horizon.
Asset allocation is key - asset classes, Domestic, lnt'|. Bonds and alternatives
Return expectation for portfolio, forward looking expectation - are we meeting our
goals?
Opportunity to optimize around fees - reduce fees by being in a different share classes
Blaine Dunn; GERP is a retail account as such there are certain share classes we are
not allowed to buy into. We are going to look at alternatives that would allow us to get
into a better share class (opportunity for lower fees). With the size of our portfolio
($47M) rt would be meaningful even if we could lower it a couple of points. This would
go directly to the bottom line.
CFO, Mike Beckstead signed off certain duties in writing to Blaine Dunn. Blaine's
C
ns
Fundlng Agent role is well defined. The Plan Document specifies duties lor the Funding
Agent and the Committee itself. City Council adopted and approved the Plan.
Kristin Stephens; Some PFA members elected to go back into a defined benefit plan.
Kristin asked the committee to let her know if the GERC needs assistance from her and
that she is available to assist.
Blaine Dunn; we do go to the Council Finance Committee once or twice a year for their
review and input on the GERP to make sure Council is informed of what the GERC is
doing. The Quarterly lnvestment Reports include fee information. We can take a
deeper dive during the next meeting. The City pays some custodial fees to US Bank
(GERP doesn't pay them).
Clark Ma es, Chairm
Carolyn Koontz, ff Liaison
C-
4
Meeting adjourned 2:42 pm
M
FM
ffi
lJgg
3
)
3r
3
XlE.frlhk
v*E6kn
25,286,295.r6 53.3.i
,.w,9.f7
1rl.ge
2.rte:!.00
.N
04
!st
7 .65A-107 -57 t6.t!i
32.93C{?.72 n9 5",
47.42{03l.rl
Two fund changes on report are highlighted in orange;
Blaine exchanged funds dollar for dollar with Fidelity
1) Fidelity Contrafund has better performance overall
2) Vanguard Total lnternational lndex used to be Artisan - changed their philosophy
to growth as opposed to blended - we are bringing an index fund into our
international porlfolio
YTD pedormance is calculated based on total value with adjusted market value
Blaine has the prerogative to act if he sees volatility and an opporlunity to reduce as
long as he stays within the guidelines / guardrails of the plan.
4. GERP / HR Administrative Support Update (Joaquin Garbiso)
Transitioning HR support for GERP members from Janie Appleton (retiring) to Joaquin
'Keen' Garbiso on an Interim basis while they bring on a new member. Finance and HR
continue to paftner - communication from retirees asking about plan design and
components. We need to reduce number of requests and are hoping to streamline
some processes and get rid of redundancies. Few changes related to calculation -
2
3
?
3