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HomeMy WebLinkAbout2018 Deferred Compensation Committee Minutes OFFICIAL MEETING OF THE CITY OF LANSING DEFERRED COMPENSATION COMMITTEE Committee Meeting October 11, 2018 8th Floor Conference Room Thursday 9 : 00 a.m. City Hall Lansing, MI 48933 Upcoming Meeting Dates : January 10, 2019 . The meeting was called to order at 9 : 07a.m. Present : Bahr, Bennett, Cahill, Good, Sanchez-Gazella, - S . Absent: Harkins, Wohlfert Others : Karen Williams, Kaela Wagonschutz, Finance; Allen VanGorder, VOYA; Mr. Jeremy McCurdy, TRowe Price, via telephone . There were no public comments. There were no hardships reported. It was moved by Ms . Good and supported by Ms . Bennett to approve the Official Minutes of the Deferred Compensation Committee Meeting of July 12, 2018 . Adopted by the following vote : 5 - 0 . There were no hardships . It was moved by Ms . Good and supported by Ms . Sanchez-Gazella to excuse Ms . Harkins and Mr. Wohlfert from the October Deferred Compensation Committee Meeting. Adopted by the following vote : 5 - 0 . From September 30, 2017 - October 1, 2018, Mr. VanGorder handled 204 appointments, 830 phone calls, $482, 000 rollover from TRowe Price, 156 account reviews, 109 distributions, 3 death claims, 6 systematic withdrawal requests, 47 appointments with City of Lansing employees in City facilities and processed 630 increase/decrease contribution forms . Mr. VanGorder provided a Plan Review that summarized the plans current and prior period assets . He also explained the variety of services offered to participants . Mr. VanGorder highlighted the plans transaction activity and net cash flow in the Plan Activity review along with a summary of the various age groups that are contributing. Mr. Jeremy McCurdy, TRowe Price joined the Deferred Compensation Committee meeting via telephone to answer questions regarding 2019 Transaction Fees that will be implemented starting January 1, 2019. Ms . Williams distributed the 2019 meeting schedule for the Deferred Compensation Committee . It was moved by Ms . Good supported by Mr. Bahr to approve that Deferred Compensation Committee 2019 Meeting dates . Ms . Bennett discussed rescheduling a meeting with the committee in August to review sample RFPs of other recent investment vendor searches to use as a guide. It was moved by Ms . Good supported by Ms . Bennett to adjourn the meeting. Adopted by the following vote : 5 - 0 . The meeting adjourned at 10 : 11 a.m. OFFICIAL MEETING OF THE CITY OF LANSING DEFERRED COMPENSATION COMMITTEE Committee Meeting July 12, 2018 8th Floor Conference Room Thursday 9 : 00 a.m. City Hall Lansing, MI 48933 Upcoming Meeting Dates : October 11, 2018 . The meeting was called to order at 9 : 07a .m. Present : Bahr, Bennett, Cahill, Good, Sanchez-Gazella, Wohlfert - 6. Absent : Harkins Others : Kaela Wagonschutz, Finance, Allen VanGorder, VOYA. There were no public comments . There were no hardships reported. It was moved by Ms . Bennett and supported by Ms . Good to approve the Official Minutes of the Deferred Compensation Committee Meeting of April 12, 2018 . Adopted by the following vote : 6 - 0 . Ms . Bennett discussed rescheduling a meeting with the committee in August to review sample RFPs of other recent investment vendor searches to use as a guide. It was moved by Mr. Wohlfert supported by Ms . Good to adjourn the meeting. Adopted by the following vote: 6 - 0 . The meeting adjourned at 9 : 11 a.m. OFFICIAL MEETING OF THE CITY OF LANSING DEFERRED COMPENSATION COMMITTEE Committee Meeting April 12, 2018 8th Floor Conference Room Thursday 9: 00 a.m. City Hall Lansing, MI 48933 Upcoming Meeting Dates : July 12, 2018, October 11, 2018 . The meeting was called to order at 9 : 00 . Present: Bahr, Bennett, Cahill, Good ( 9 : 15) , Harkins, Sanchez- Gazella, Wohlfert - 7 . Absent: 0 . Others : Karen Williams, Finance; Jeremy McCurdy, Matt Garrity (via phone) T Rowe Price, Allen VanGorder, VOYA; Stephanie Robinson, Purchasing Department . There were no public comments . It was moved by Mr. Wohlfert and supported by Ms . Bennett to approve the minutes of the Deferred Compensation Committee Meeting of January 11, 2018 . Adopted by the following vote: 6 - 0 . Mr. Wohlfert reported that there was one hardship submitted. The hardship committee met and reviewed the application which did not meet the criteria to withdraw funds . Mr. Jeremy McCurdy introduced his colleague Mr. Matt Garrity, C. F.A to provide an economic overview. Mr. Garrity reviewed the executive summary and discussed the economic global markets for 2017 . Mr. Garrity updated the committee regarding adding TRowe Price Retirement Funds for 2050, 2055 and 2060 . Mr. McCurdy recommended that the City of Lansing amend its recordkeeping agreement to automatically add new target dates funds as they become available. The Deferred Compensation discussed having education sessions for employees . Ms . Linda Sanchez-Gazella noted that Human Resources were planning future education opportunities for employees . Ms . Cahill recommended that education sessions be held at different locations within the City of Lansing. Mr. McCurdy reviewed the ranking systems used to rate the TRowe Price investments . Mr. Garrity reviewed the City of Lansing portfolio and discussed the benchmarks used to evaluate the investments. Mr. McCurdy distributed an executive summary that reviewed the market and economic updates, City of Lansing plan cash flow, plan contribution allocation, and plan statistics. Mr. McCurdy discussed the communications and messaging that TRowe is using to educate participants . Mr. McCurdy discussed TRowe tools and resources available to participants . He reviewed the City of Lansing population of active and terminated members . He discussed money movement between investments and rollovers. Mr. McCurdy reviewed the plan cost analysis of the TRowe Price fees and the fund' s expense ratios . Mr. McCurdy also discussed investment revenue that goes back to the record keeping division. Mr. McCurdy reviewed a proposal to add an ERISA budget to the plan that would provide approximately $11, 000 annually that could be used for the City of Lansing expenses . Mr. McCurdy discussed the monies could be used for fees such as legal, education or investment advice. The monies could also be allocated back to the plan participants . The ERISA budget monies would be paid quarterly and the monies could be made effective July 1, 2017 with a fee guarantee period of five years . Mr. McCurdy discussed the performance of the investment funds. Mr. McCurdy submitted the attached supplemental report of City of Lansing discussion items . It was moved by Mr. Wohlfert and supported by Ms . Harkins to add the TRowe Price Retirement Funds for 2050, 2055 ad 2060 . Adopted by the following vote : 7 - 0 . It was moved by Ms . Bennett and supported by Mr. Wohlfert to add TRowe Price target date funds as they become available . Adopted by the following vote : 7 -0 Ms . Robinson explained the process for the Deferred Compensation Committee to add or change vendors for the City of Lansing. Ms . Robinson explained the request for proposals procedure. The City of Lansing has specific boilerplate for its RFP. The Committee would need to provide the scope and work and qualifications. The purchasing department would advertise it and post it on an online site that goes out nationally. It generally goes out for 30 days . The committee would review and score the proposals . The selected proposal would go to purchasing and then to the Mayor' s Office. Ms. Bennett recommending obtaining sample RFPs of other recent investment vendor searches to use as a guide. Ms . Robinson reported that she reviewed a recent 457 Plan request for proposal from Muskegon. The Committee discussed it due diligence to review the vendors periodically. a As a government agency, it is appropriate for due diligence and the competitive process to have a review periodically. Mr. Allen VanGorder inquired if the committee' s desire was to go to one vendor. Mr. McCurdy--noted that by moving to one vendor may reduce the amount of choices, but it would improve the cost structure. One vendor would by a change of philosophy and the committee would need to find its balance between choice and cost. It was moved by Ms . Good and supported Mr. Bahr to adjourn the meeting. Adopted by the following vote: 7 - 0 . The meeting adjourned at 9 : 54 a.m. OFFICIAL MEETING OF THE CITY OF LANSING DEFERRED COMPENSATION COMMITTEE Regular Meeting January 11, 2018 8th Floor Conference Room Thursday 9 : 00 a.m. City Hall Lansing, MI 48933 Upcoming Meeting Dates : April 12, 2018, July 12, 2018, October 11, 2018 . The meeting was called to order at 9 : 05 . Present : Barr, Bennett, Cahill, Good, Sanchez-Gazella (9 : 07) , Wohlfert - 6 . Absent : Harkins Others : Karen Williams, Finance; Allen VanGorder, VOYA. There were no public comments . It was moved by Ms . Good and supported by Mr. Wohlfert to approve the minutes of Deferred Compensation Committee Meeting of October 12, 2017 with corrections . Adopted by the following vote: 5 -0 . Mr. Wohlfert indicated that there was an employee that had submitted an application, but it had not been reviewed. Mr. Wohlfert requested information about the status . Karen Williams reviewed the process for reviewing hardship applications . Mr. Allen VanGorder added that participants sometimes contact VOYA offices regarding hardship. Mr. VanGorder reviewed what a hardship is and also discussed that participants had to stop their deferrals to the plan. The hardship subcommittee will meet and review the request . Karen Williams distributed the Defined Compensation Board Membership Organization chart for updates . Ms . Cahill approved the following subcommittee membership: Administrative : Bahr, Bennett, Cahill, Good Investment : Bennett, Cahill, Good , Wohlfert Education: Bennett, Cahill, Wohlfert Hardship: Cahill, Sanchez-Gazella, Wohlfert 7 Ms . Williams indicated that she contacted Stephanie Robinson, City purchasing to review the process for Request for Proposals for new vendors . Ms . Bennett suggested having Ms . Robinson come to the next meeting to review the process with the Deferred Compensation Committee. The Deferred Compensation Commmittee also discussed a review of the Investment Policy Statement. Ms . Cahill requested that the Investment Policy statement be added to the next meeting agenda. It was moved by Mr. Wohlfert and supported by Ms . Good to adjourn the meeting. Adopted by the following vote: 5 - 0 The meeting adjourned at 9 : 33 a.m.