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HomeMy WebLinkAbout2015-08-11 NEERB MINUTESNONEMERGENCY EMPLOYEES RETIREMENT BOARD MEETING August 11, 2015 Board Member Moore called the regular meeting of the Englewood NonEmergency Employees Retirement Plan Board to order at 3:04 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. Approval of Minutes Kevin Engels, Ex Officio City Treasurer John Moore, Council Appointee Mahendra Patel, Secretary, Employee Representative James Phelps, Council Appointee Jim Woodward, Chairperson, Council Appointee (arrived at 3:05 p.m.) Steven Yates, Council Member (No Notice) David Henderson, Employee Representative (Notice) Wendy Dominguez, Innovest Portfolio Solutions Rick Rodgers, Innovest Portfolio Solutions Diane Hunt, Gabriel Roeder Smith and Company (GRS) Joe Herm, ORS Dan Brotzman, City Attorney (Arrived at 3:45 p.m.) V Chairperson Woodward arrived at 3:05 p.m. MR. MOORE MOVED TO APPROVE THE MINUTES OF THE MAY 12, 2015 REGULAR MEETING. MR. PATEL SECONDED. Ayes: Nays: Absent: Abstention: The motion carried. Moore, Patel, Phelps, Woodward None Yates, Henderson Engels Innovest Portfolio Solutions, LLC Revised Investment Policy Statement The Board approved making changes to the Investment Policy Statement at the May meeting. Innovest provided a redlined document for the Board's approval. Ms. Dominguez highlighted the changes that were made. MR. PHELPS MOVED TO APPROVE THE JUNE 2015 REVISED INVESTMENT POLICY STATEMENT. MR. PATEL SECONDED. Ayes: Nays: Absent: The motion carried. Engels, Moore, Patel, Phelps, Woodward None Henderson, Yates Performance Evaluation Ms. Dominguez reviewed the capital markets information for the past quarter. Mr. Rodgers reviewed second quarter portfolio performance. He reviewed fund performance and some of the variables that impacted the performance. Mr. Rodgers referred to the Manager Report Card page noting changes that occurred during the quarter, the funds Innovest is concerned about and the reasons for the concern. Innovest is not recommending any changes. Innovest has added new colors to indicate when there has been a change upwards from the last quarterly report. Light orange indicates a change from red to yellow and light green equates to yellow to green. The Board discussed the prior decision to stay with PIMCO and the frequency of rebalancing the funds. Gabriel Roeder Smith and Company Ms. Hunt said they have no items to discuss at this time. Retirement Approvals and Notifications: a. Consideration of DROP Benefit for Ladislav Vostry b. Consideration of DROP Benefit for Tara Sue Micheli c. Consideration of DROP Benefit for Felix Tony Soto d. Consideration of Retirement Benefit for Walter Withers e. Consideration of Early Retirement Benefit for Stephen Lasley f. Notification of DROP Benefit Application for Stanley McClung g. Notification of Retiree Adeline Czarny Adam's Death h. Consideration of Accumulated Contributions Rollover for Susan Schnell MR. PHELPS MOVED TO APPROVE THE ITEMS LISTED ON THE BENEFIT APPROVALS AND NOTIFICATIONS. MR. MOORE SECONDED. Ayes: Nays: Absent: The motion carried. Engels, Moore, Patel, Phelps, Woodward None Henderson, Yates Mr. Brotzman arrived at 3:45 p.m. Consideration of Benefit for Charlotte Pritchard: Ms. Wescoat explained the Board's option available when considering approval of the benefit for Charlotte Pritchard who is Normal Retirement Age. The Board reviewed the Plan provision of providing monthly benefits or a lump sum payment to Member. The Board discussed the Plan provision, Section 3-4-8-8, which allows for lump sum distribution of a benefit of less than $100 per month and determined that it is more prudent, in the case of Ms. Pritchard's benefit, to provide the monthly benefit. The Pension Benefit Guaranty Corporation interest rate that must be used for the lump sum distribution currently is so low that it provides very little discount from the monthly benefit. The lump sum distribution amount Ms. Pritchard would receive equates to an amount equivalent to more than nineteen years of monthly benefits. The Board discussed reasoning for discretion when providing a lump sum option distribution to Members. Mr. Brotzman commented that the Board has the choice to make this distribution a lump sum. The precedent that the Board has typically done a lump sum on a small monthly payment to a Member does not carry over to this situation. The Board determined that protecting Plan assets at this volatile time is their fiduciary responsibility. NonEmergency Employees Retirement Board Meeting 2 of3 V MR. MOORE MOVED TO APPROVE CHARLOTT E PR ITC HA RD 'S 100% JO INT AND SURVIVOR MON THLY BENEF IT OF $48.74 BEG INN ING JUN E I, 2015 AN D THERE WILL NOT BE A LUMP SUM DIST RIBUTION. MR. PH ELP S SECONDED. Ayes: Nays: Absen t: The motio n ca rried . Engels, Moo re, Patel , Phelps , Woodward None He nd e rson , Yates Ms . Wescoat commented that the IR S gove rnm ent re tirement plan newsletter contained in fo rmat ion about the possibi lity o f di sco nti nuing d e fin e d benefit plans the a bility to include lump s um di stribu tio ns in the futu re. Mr. Moore sa id t ha t the pu rpose of t his Plan is to provide li fetime income so that sh ifting to a lump sum d istr ib ut ion is genera lly no t co ns istent with th e Pla n 's purpose . Membe rs' Cho ic e Th e Board discussed t he lnn ovest fidu c iary train in g that wi ll be he ld prior to the Board meeting for new members is resched uled to Novemb e r I 0, 20 15. Me mb er's that wou ld like to atten d sho uld le t Ms. Weseoat know of their in tent. Ms. Dominguez remind ed th e Board o f the Co lorado Pub lic Plan Coa lition Annual Co n ference . MR. PHELPS MOV E D TO A DJ OU RN. MR . PAT EL SECONDE D. Ayes: Nays: Absent: Th e motion carr ied. Enge ls, Moore, Pate l, Phelps, Woo dwa rd No ne Henderson , Yates Th e Board adjourned at 4:07 p.m. dru~ w.M<'~ Caro l We scoat Record ing Secreta ry 3 o f 3 NonEmcrgcncy Employees Retirement Board Mcc1 ing