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HomeMy WebLinkAbout2010 - Defined Contribution Plan Minutes CITY OF LANSING MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN VEBA PLAN MEETING OF FEBRUARY 4, 2010 The Administrative Board met in regular session and was called to order at 9:05 a.m. Present: Members: Jerry Ambrose (9:09), Angela Bennett, Bill Barkyoumb, Thomas Korkoske, Antonia Kraus (9:13), Faith Rach - 6. Absent: Terri Singleton Others: Karen E. Williams, Finance Department; Jack Roberts, Don Kulkanek, Law Department. It was moved by Mr. Korkoske and supported by Ms. Rach to approve the Governing Committee's Minutes for December 3, 2009 with amendments. Ms. Faith questioned the official name of the Governing Committee and it was agreed that Governing Committee would replace Administrative Board in the minutes. _ Adopted by the following vote: 4— 0. Mr. Ambrose and Ms. Kraus entered the meeting. Ms. Cam Honer provided a memo to the Governing Committee stating that Comerica decided not to continue the Standard and Poor's (S &P) fund in the City's Portfolio. Wells Fargo did not pick up the fund for investment. Ms. Honer explained that the Standard and Poor's options will not be available'for the portfolio. Therefore, the portfolio investments need to be updated. Ms. Honer suggested to update the Investment Policy statement and to add target-date funds. Ms. Honer distributed and provided an overview of the sample Investment Fund Reports. Ms. Honer reviewed the investment bond fund in the portfolio that was not doing as well as other funds. Ms. Kraus requested that Ms. Honer bring a suggested portfolio matrix and investment policy for the Investment subcommittee to consider. Ms. Rach requested that Ms. Honer bring a template of the Investment Policy for the subcommittee to review. It was moved by Mr. Ambrose and supported by Ms. Bennett to refer the Investment Policy to the Investment subcommittee of Mr. Korkoske, Ms. Rach and Ms. Kraus, and have the City Attorney as ex-officio. Adopted by the following vote: 6 — 0. CITY OF LANSING MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN VEBA PLAN MEETING OF APRIL 8, 2010 The Administrative Board met in regular session and was called to order at 9:05 a.m. Present: Members: Bill Barkyoumb, Thomas Korkoske, Antonia Kraus, Faith Rach, Singleton - 5. Absent: Jei7y Ambrose, Angela Bennett Others: Karen E. Williams, Finance Department; Jack Roberts, Don Kulkanek, Law Department. It was moved by Ms. Rach and supported by Ms. Kraus to approve the Governing Committee's Minutes for February 4, 2010 with amendments. Adopted by the following vote: 5 - 0 Attorney Jack Roberts reported that the Investment subcommittee met and reviewed the proposed investment policy for the Defined Contribution Pension Plan. Ms. Cam Honer reviewed the Wells Fargo criteria for measuring investment performance. The Investment subcommittee selected investment to replace the discontinued Standard and Poor's funds. It was moved by Ms. Kraus and supported by Mr. Korkoske to approve the proposed Investment Policy for Defined Contribution Pension Plan. Adopted by the following vote: 5 — 0. Ms. Rach reviewed the status of the proposed changes to the VEBA Investment Policy. It was moved by Ms. Kraus and supported by Ms. Singleton to approve the VEBA Investment Policy. The Defined Contribution Governing Committee discussed the membership and titles in the document. The Governing Committee discussed several issues and the description of the fund. The Governing Committee requested additional time to review the policy. Ms. Kraus withdrew her motion. The proposed changes to VEBA Investment Policy were tabled. Attorney Jack Roberts reported that he received an invoice for $532.12 for Sherry Stein's work on the Restatement of the Define Contribution Plan, per prior approval. The Invoice was forwarded to Cam Honer by the Retirement Office. Attorney Roberts also reported that the Restatement was submitted to the IRS and the IRS should respond within 145 days. CITY OF LANSING MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN VEBA PLAN MEETING OF JULY 1, 2010 The Administrative Board met in regular session and was called to order at 9:04 a.m. Present: Members: Jerry Ambrose, Bill Barkyoumb, Angela Bennett, Antonia Kraus, Faith Rach, Terri Singleton - 6. Absent: Others: Karen E. Williams, Finance Department; Don Kulkanek, Law Department; Anne M. Omiljan, Wells Fargo; Felecia Relief, Comerica. It was moved by Ms. Rach and supported by Ms. Kraus to approve the Governing Committee's Minutes for April 8, 2010. Adopted by the following vote: 6 - 0 Karen Williams introduced Anne Omiljan as the new Wells Fargo representative. Ms. Omiljan provided a performance update of the Defined Contribution Plan. Ms. Omiljan reviewed the replacement funds for the discontinued Standard and Poor's' funds. It was moved by Ms. Kraus and supported by Ms. Singleton to approve the move from the discontinued Standard and Poor's funds to the Perkins Small Cap Value A fund, and the Goldman Sachs Mid Cap Growth Fund. Adopted by the following vote: 6 —0. Ms. Omiljan provided documents for the chairperson to sign and execute the replacement fund additions to the Lansing Defined Contribution Plan. Ms. Felecia Relief provided a performance update for the VEBA Plan. Ms. Relief inquired about a timeframe to provide international funds to the asset mix. The Governing Committee informed Ms. Relief that the VEBA investment policy had not been approved. The Governing Committee also reviewed the City's annual contribution of$690,000.00 to the VEBA. Ms. Faith Rach distributed an updated VEBA document for the Governing Committee's review. Ms. Rach explained the amendments and the inclusion of international stocks. Ms. Rach worked with legal counsel to amend the document and correct typographical errors. It was moved by Ms. Kraus and supported by Ms. Bennett to approve the Post Employment Health Care Plan (VEBA) Investment Policy. Adopted by the following vote: 6—0. Mr. Barkyoumb thanked Ms. Rach for her hard work on updating the plan. CITY OF LANSING DEFINED CONTRIBUTION PENSION PLAN/ VEBA PLAN MEETING OF AUGUST 5, 2010 The Administrative Board was called to order at 9:02 a.m. Present: Members: Bill Barkyoumb (9:14), Angela Bennett, Antonia Kraus, Faith Rach - 4. Absent: Jerry Ambrose, Teri Singleton Others: Karen E. Williams, Finance Department; Don Kulhanek, Law Department; Anne Omiljan, Wells Fargo; Felecia Relief, Comerica; Robert Kay, World Asset Management. Ms. Rach amiounced that the Governing Committee did not have a quorum and requested that the committee move to the Wells Fargo report. Ms. Anne Omiljan provided an overview of the Defined Contribution plan assets. Ms. Omiljain reviewed the funds in the portfolio, explained the fee structure and returns for the funds., Ms. Kraus inquired regarding the balance of the forfeiture account and the annual fees paid to,the plan. Ms. Omiljan explained that the forfeiture accounts had $7,000 and plan fees are approximately$5,000 per year. Ms. Omiljan suggested sending a letter to plan participates who have been terminated with a balance under $5,000 to notify participants that they can take, rollover or money their monies. . It was moved by Trustee Kraus and supported by Trustee Singleton to have Wells Fargo send a letter to terminated inactive participants with balances less than $5,000, to notify them that they can take their monies. This reduction in participants would reduce plan fees. Adopted by the following vote: 4— 0. Ms. Kraus informed the Committee that because the Defined Contribution is a wasting plan. When the Forfeiture account runs out, the City of Lansing administration will need to pay the plan fees. Mr. Barkyoumb arrived at the meeting. It was moved by Ms. Faith Rach and supported by Ms. Angela Bennett to approve the Governing Committee minutes for July 1, 2010. Adopted by the following vote: 4—0. Ms. Felecia Relief presented the July 2010 Account Statement for the City of Lansing Post Retirement Health Care Plan and Trust (VEBA). CITY OF LANSING DEFINED CONTRIBUTION PENSION PLAN/ VEBA PLAN MEETING OF OCTOBER 7, 2010 The Administrative Board was called to order at 9:15 a.m. Present: Members: Bill Barkyoumb, Angela Bennett, Antonia Kraus, Terri Singleton- 4. Absent: Jerry Ambrose, Faith Rach Others: Karen E. Williams, Finance Department; Don Kulhanek, Law Department; Anne Omiljan, Wells Fargo. It was moved by Ms. Kraus and supported by Ms. Singleton to approve the Administrative Board Committee Meeting Minutes for August 5, 2010 with corrections. Adopted by the following vote: 4—0. Ms. Anne Omiljan provided an overview of the Defined Contribution plan assets. Ms. Omiljan reviewed the funds in the portfolio, explained the fee structure and returns for the funds. Ms. Omiljan reviewed the forfeiture account of approximately$7,800 and discussed the plan fees. Ms. Kraus inquired about how long the forfeiture account would last given the plan expenses. Ms. Omiljan suggested writing to participants with low balances. Participants may redeem their monies or rollover the balances to another account. It was moved by Ms. Kraus and supported by Ms. Singleton to have Wells Fargo send a letter to terminated inactive members with balances under$5,000 to notify them that they may redeem their money or rollover their balances to another account. Adopted by the following vote: 4- 0 Ms. Kraus informed the Governing Committee that when the forfeiture account is depleted,the administration would need to pay the expenses of the plan. Ms. Kraus requested the number of participants that are inactive, terminated and have balances under $5,000. Ms. Omiljan reported to the Committee that Wells Fargo Stable Value fund has a better return and smaller fees than the Comerica Stable Value fund. Ms Omiljan stated that the Governing Committee would need to submit a request to Comerica to redeem the fund for transfer. Comerica requires one year put option. Ms. Omiljan provided a letter for the Governing Committee to submit to Comerica to have the option to transfer the fund. The Governing Committee requested Ms. Omiljan to send the appropriate letter to Karen Williams to place on City of Lansing letterhead. It was moved by'Ms. Kraus and supported by Ms. Bennett for the Defined Contribution Governing Committee send a letter to Comerica to have the option to transfer the Stable Value Fund to another provider. Adopted by the following vote: 4—0. DEFINED CONTRIBUTION PLAN VEBA PLAN—MEETING OF OCTOBER 7, 2010 Page 2 Attorney Don Kulhanek updated the Governing Committee regarding the approval of the Individual Retirement Account (IRA) for balances between $1,000 and $5,000. Attorney Jack Roberts is reviewing the documents provided by Wells Fargo. Ms. Omiljan reviewed the requirements regarding distribution of Comerica Plan assets to inactive members. Ms. Omiljan will have Wells Fargo legal counsel review the Plan document to determine if active member can be forced out who have balances under $5,000. Ms. Bennett inquired if participants can rollover their monies into the Deferred Compensation 457 accounts. Ms. Omiljan stated that she did not believe active employees could rollover their monies unless one of the four distributive events occurred, death, disability, retirement, termination. The Governing Committee received and reviewed the September 2010 Account Statement for the City of Lansing Post Retirement Health Care Plan and Trust (VEBA). There were no public comments. It was moved by Ms. Kraus and supported by Ms. Bennett to excuse Mr. Ambrose and Ms. Rach from the Defined Contribution Pension Plan/VEBA Plan October meeting. Adopted by the following vote: 4 - 0 Karen Williams distributed the 2011 Meeting Date Schedule. It was moved by Ms. Kraus and supported by Ms. Bennett to accept the 2011 Meeting Date Schedule. Adopted by the following vote: 4 -0. Attorney Don Kulhanek updated the Governing Committee regarding the pending items. Attorney Jack Roberts are working on the pending items for future meetings. The Governing Committee agreed to keep the Accounting Manager vacancy on the board on pending until the administration replaced the position or reorganized. It was moved by Ms. Kraus and supported by Ms. Bennett to adjourn the meeting. Adopted by following vote: 4— 0. The meeting adjourned at 9:54 a.m.