Loading...
HomeMy WebLinkAbout2015-02-10 NEERB MINUTESNONEMERGENCY EMPLOYEES RETIREMENT BOARD MEETING February I 0, 2015 '-../ Board Member Hagan called the regular meeting of the Englewood NonEmergency Employees Retirement Plan Board to order at 3:00 p.m. in the Public Works Conference Room of the Civic Center, 1000 Englewood Parkway, Englewood, Colorado. Members Present: Members Absent: Others Present: A quorum was present. Frank Gryglewicz, Director of Finance and Administrative Services Bradley Hagan, Employee Representative John Moore, Council Appointee Mahendra Patel, Employee Representative James Phelps, Council Appointee Jim Woodward, Chairperson, Council Appointee Steven Yates, Council Member None Wendy Dominguez, lnnovest Portfolio Solutions Joe Herm, Gabriel Roeder Smith and Company Seating of Council Citizen Reaimointed Jim Woodward The Board congratulated the Mr. Woodward. Election of President/Chairperson Mr. Hagan informed the Board he is resigning from the Board and will not be at the next meeting. MR. GRYGLEWICZ NOMINATED JIM WOODWARD AS PRESIDENT/CHAIRPERSON. MR. PHELPS SECONDED. Ayes: Gryglewicz, Phelps, Patel, Hagan, Moore Yates Nays: None Absent: None Abstention: Woodward The motion carried. Chairperson Woodward requested that Mr. Hagan conduct the meeting. Approval of Minutes MR. GRYGLEWICZ MOVED TO APPROVE THE MINUTES OF THE NOVEMBER 18, 2014 REGULAR MEETING. CHAIRPERSON WOODWARD SECONDED. Ayes: Nays: Absent: The motion carried. Gryglewicz, Hagan, Moore, Patel, Phelps, Woodward, Yates None None Innovest Portfolio Solutions. LLC A. Approval of Thornburg Transfer At the November meeting the Board agreed to transfer the Thornburg holdings from one share class to another with a lower cost. The transfer was completed in a timely manner and requires formal Board approval. MR. GRYGLEWICZ MOVED TO APPROVE THE TRANSFER OF THORNBURG SHARE CLASSES PROVIDING A LOWER FEE. MR. PHELPS SECONDED. Ayes: Nays: Absent: The motion carried. Gryglewicz, Hagan, Moore, Patel, Phelps, Woodward, Yates None None B. Consideration of S&P 500 Index Fund Change The Board discussed transferring the Wells Fargo BlackRock S&P 500 Index Fund. Wells Fargo will not provide transaction confirmations for this fund and charges 10 basis points as a custodial and management fee for a total expense ratio of0.142 percent. Innovest provided information on the Vanguard S&P 500 Index Fund which has a total expense ratio of 0.095 percent. It is the same investment with a different fund family. She also explained that although it does not sound like a lot, but the difference will save about $12,000 per year. MR. GRYGLEWICZ MOVED TO APPROVE THE TRANSFER FROM THE WELLS FARGO BLACKROCK S&P 500 INDEX FUND TO THE VANGUARD S&P 500 ADMIRAL INDEX FUND. MR. PA TEL SECONDED. Ayes: Nays: Absent: The motion carried. Gryglewicz, Hagan, Moore, Patel, Phelps, Woodward, Yates None None C. Performance Evaluation Ms. Dominguez reviewed the 2014 performance of the funds. She reviewed 2014 market conditions and highlighted factors impacting markets during the year. Ms. Dominguez presented the lnnovest brochure "Why Commodities." She explained the reasoning for previously adding commodities to the asset allocation and the current commodity funds the Board has chosen. Commodities are seen as a hedge against inflation and a diversifier in the portfolio. lnnovest is recommending keeping commodities and rebalancing to be closer to the five percent asset allocation target. Ms. Dominguez explained the differences between the PIMCO Commodities and the Credit Suisse Commodities Funds the funds that Plan currently holds. lnnovest recommends selling PIMCO and add more to the Credit Suisse and rebalance the assets. She also explained that the Credit Suisse is based on the Bloomberg Commodities Index and Innovest likes the allocation of this index. Discussion ensued regarding the commodity funds. lnnovest will present the usual capital market report and asset allocation study at the May meeting. NonEmergency Employees Retirement Board Meeting 2 of4 u MR. MOORE MOVED TO SELL THE PIMCO COMMODITIES FUND AND REBALANCE THE CREDIT SUISSE COMMODITIES TO A FIVE PERCENT ALLOCATION. CHAIRPERSON WOODWARD SECONDED. Ayes: Nays: Gryglewicz, Hagan, Moore, Patel, Phelps, Woodward, Yates None Absent: None The motion carried. Discussion ensued regarding the diversification of the portfolio and the timing of the rebalance as it relates to Innovest's monthly rebalance evaluations, quarterly reporting, and annual asset allocation study with the capital market report. Gabriel Roeder Smith and Company <ORS) a. Update Optional Factor Assumptions Mr. Herm provided an update about the new mortality tables as discussed at the last Board meeting. He commented that large plans typically wait to update the tables until after the next experience study is completed and that happens every five year. He was not aware of any GRS plans changing to the new tables. GRS recommends waiting before making the change. Mr. Moore would like to request a study with the actuarial report to see the impact of moving to the new mortality tables to allow the Board to continue discussion related to the tables. MR. MOORE MOVED TO INCLUDE A STUDY OF THE NEW MORTALITY TABLES WITH THE JANUARY 1, 2015 ACTUARIAL REPORT. MR. GRYGLEWICZ SECONDED. Ayes: Nays: Gryglewicz, Hagan, Moore, Patel, Phelps, Woodward, Yates None Absent: None The motion carried. b. Discussion of Studies to include with the January I, 2014 Actuarial Report No additional studies were discussed. The Board discussed the history of the amortization changes that was included in the packet. Mr. Moore requested the information at the last Board meeting. Discussion followed regarding each of the amortization assumptions. Prior actions clearly demonstrate the Board's intent to reduce the unfunded liability of the Plan. The information presented was informational only. Review of2014 Board Attendance The Board reviewed the 2014 attendance. The Board agreed the attendance was satisfactory. '-..I Retirement Approvals and Notifications: a. Consideration of Retirement Benefit for Kenneth Watts NonEmergency Employees Retirement Board Meeting 3 of4 b. Notification of DROP App li cation for Thomas Cable c. Not ification of DROP Application for Michae l Renner d. Notification of DROP App li cation for James Denter e . Bene fit Approval fo r the Beneficiary of J. Ma rilyn Irons MR. GRYGLEWICZ MOVED TO APPROVE THE BE NEF IT A PPROVA LS AND NOTIFI CAT IONS. C HAIRP ERSON WOODWARD SECONDED. Ayes: Nays: Gryglewicz, Hagan , Moore, Pate l, Phe lps, Woodward, Yates None Ab sent: None The motion carri ed. 3RD A nnua l Mountain States Institutional In ves to rs For um Th e Bo ard wa s provided information regarding th e 3RD An nu a l Mountain States Instituti o nal In vestors Forum. Th ere is no registration fee . If the Board me mb e rs wis h to attend, they wi ll make re servations as provided in th e informati on . Me mber Choic e Mr. Phe lp s thanked the Brad Hagan for hi s service to t he NERP Boa rd. The Board acknowledged Mr. Hagan 's contributio n. Cha irperso n Woodward commented o n the accolades that have been g iven to Ms. Dominguez on a nat ional basis. Ms. Dom in g uez said t he team worki ng be hind the scenes do es not always receive the recog nition they deserve, but they make Innove st and he r succ essful. Th e nex t Board me eting wi ll be May 12, 20 15. T he start t ime may be adjusted based on th e estimated time ne eded to compl ete the age nd a. T he Board a dj o urn ed at 4:30 p.m. & ~ idh<!<'~ Caro l Wescoat Recordin g Secretary NonEmcrgency Employees Ret irement Bonrd Meet in g 4 of4