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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