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HomeMy WebLinkAbout2012 - Defined Contribution Plan Minutes PUBLIC MEETING NOTICE Following is the schedule of meeting dates of calendar year 2012 for the Defined Contribution Money Pension Plan: February 2, 2012 May 3, 2012 August 2, 2012 November 1, 2012 These meetings are regularly held in the Finance Conference Room on the 8t" Floor of City Hall at 9:00 a.m. CYTY Off'LANSING DEFINED CONTRIBUTION PENSION€LAN/ VEBA PLAN :' C=n .- r MEETING OF NOVEMBEl? 1. 201") The,Administrative Board was called to order at 9:09 a.m. CD Present: Members: Ei11 Barkyoumb, Angela.Bennett(9:35), Randy Endsley, Antonia Kraus, Faith Rach, Terri Taylor- 6. Absent: Randy Hannan ' Others: Anne Omiljan, Wells Fargo; Karen E. Williams, Finance; Attorney Don Kulhanek, Law; Felecia Ryan, Cornerica; Gary Bender, World Asset Management. It was moved by Ms. Kraus and supported by Mr. Endsley to approve the Administrative Board Cornrnittee Meeting Minutes for. August 2, 2019 :,A- th corrections. Adopted by the followi;lg vote: S -0. Ms. Annf., Omilian provided iari overview of the Defined. 6':htributicin flan assets. Ms. Omiljan ivvie�%-�qd the plan assets, exp�ained the fee breakdown of plan fund expenses, and perfornrance of'il1.e Hands for the third quarter of 2012. Mt -. Urdljan st:g,gested putting Eagie Capital and Wil.;iam-Blair mall Cap Growth on the watch list. Ms. Oniiljan reviewed the new investment fand added to the plan, and discussed the target date fonds. f Ms. Kraus inquired hov,,many people will be impacted if the Board decides to ,;hange the William Blair investment fitnd. Ms. Omiljan will report to the Board the number of people invested in the fund at the next meeting. Ms. Felecia Ryans of Comerica Bank.provided an overview of the City of Lansing Post Retirement Health Care Plan& Trust(VEBA)plan and the management of the'portfol o. Mr. Gary Bender'of World Asset Management discussed the administration and total assets under management. Mr. Bender provided an account valuation and investment review of the VEBA portfolio performance: Mr: Bender informed the Board that the portfolio is passively managed to meet the market index benchmarks. Ms..lt.raus inquired if"the I.nvestm' 6ht Policy regitired that fhe VE* BAA just match the index. Mr. Barkyotirrib provided background on the" initial furidin�y'of tiio NT"BA,Gird stated that at ttiL time, the amount of assets were small. The Administrative Board agreed to update the Authorized Signatires list for the VEB.A: fund and submit it to Cornerica. Ms. Ahoela Bcnndt arrived to the meeting. There were no reports. There were no public comments. It was moved by Ms. Rach and supported by Ms. Kraus to approve the amended 2013 Schedule of Meetings, changing August 8, 2013 date to August 1, 2013 date, for the Administrative Board. Adopted by the following vote: 6 - 0 Ms. Williams indicated that the Teamster 214 contract provides for new members to participate in the Defined Contribution Plan. The Plan would need to be amended, possibly before the next meeting in February 2013. Attorney Don Kulhanek updated the Administrative Board regarding the status of the Plan.. Attorney Kulhanek indicated that the City Attorney's Office is working with Foster Swift to amend the Defined Contribution Plan. The amendment would allow Teamster 214 contract members to be eligible for the Plan with different benefits. The Admini.-trative Board would meet to review and recommend the amendment to the Mayor's Office for approval. Ms. 13ennett explained that Defined Contribution Plan for Teamsters,214 would change the vesting schedule and the City would contribute 31,% and the employee would contribute 3%. Ms. Kraus suggested that the Defined Contribution Board and the Deferred Compensation Board get active in educating employees regarding these Plans. Ms. Kraus suggested that the Board investigate what the default fiend is for new employees. Ms. Kraus provided history to that Board that the money purchase plan had the stable value fund as the default plan, which may not be adequate for retirement planning. Ms. Kraus requested that the default fund for the Defined Contribution Plan and education for employees regarding the Plan be added to the agenda. Ms. Anne Oniiljan will review the current default fund and report back to the Administrative Board. Ms. Omiljan will also coordinate with Hum.n Resources to provide enrollment materials. Ms. Omiljan stated that she could draft educational material for the Defined Contribution Plan for new members. The Defined Contribution Pension Plan Administrative Board will request that Mr. Randy' Hamian have.the Mayor re--appoint Ms. Angela Bennett to the Board. Ms. Angela Bennett updated the Administrative Board that the OPEB Actuary Report will be provided to Definp.d Contribution Board for review upon its completion. It was moved by Ms. Kraus and supported by Ms. Taylor to adjourn the meeting. Adopted by following vote: 6—0. The meeting adjourned at 10:25 a.m. CITY OF LANSING DEFINED CONTRIBUTION PENSION PLAN/ VEBA PLAN MEETING OF AUGUST 2,2012 - corrected The Administrative Board was called to order at 9:10 a.m. Present: Members: Bill Barkyoumb, Angela Bennett, Randy Endsley, Terri Taylor- 4. Absent: Randy Hannan, Antonia Kraus, Faith Rach Others: Anne Omiljan, Wells Fargo; Karen E. Williams, Finance; Attorney Don Kulhanek, Law. It was moved by Ms. Taylor and supported by Ms. Bennett to approve the Administrative Board Committee Meeting Minutes for May 3, 2012, Adopted by the following vote: 4 -0. = Attorney Kulhanek reviewed the minutes regarding the forfeiture of Mr. Smith's contribution. Attorney Kulhanek inquired if the monies should be returned to the City of Lansing. Ms. Omiljan informed the Board that the monies could not be returned to the City under the Plan`' provisions. However, the forfeited monies can be used to pay the expenses of the Defined Contribution plan. The Board discussed the Forfeiture account and determined that the City Administration would determine how expenses are paid when the Forfeiture account was exhausted. Ms. Anne Omiljan provided an overview of the Defined Contribution plan assets. Ms. Omiljan reviewed the plan assets, explained the fee breakdown of plan fund expenses, and performance of the funds for the second quarter of 2012. Ms. Omiljan explained the new federal regulations regarding annual fee disclosure. Ms. Omiljan expressed concern that William Blair Small Cap Growth has not improved and suggested to keep it on watch list. Ms. Omiljan stated that she would bring alternatives for William Blair Small Cap Growth to the next meeting. Ms. Williams distributed the June 2012 VEBA statements for review. The Board reviewed the statements and requested that Ms. Felecia Relief and World Asset Management attend the next meeting to give a performance review. The Board discussed that the City of Lansing deposited its annual contribution and inquired how the deposit would be distributed between the investments. The Board reviewed its investment mix policy of 53%Equity, (50% domestic, 3% international) and 47% bond. Ms. Omiljan provided a Wells Fargo Index Managed Accounts presentation for Board consideration as an alternative to Comerica's World Asset Mangement. Ms. Omiljan provided an overview of the Wells Fargo Institutional Asset Advisors. Ms. Omiljan explained that Wells Fargo would provide active management of the portfolio, where Comerica has a directed passive management style. Ms. Omiljan reviewed the process of setting objectives, portfolio construction, dynamic asset allocation, sample portfolio for the City of Lansing VEBA and a financial review. It was moved by Ms. Bennett and supported by Ms. Taylor to excuse Ms. Kraus, Mr. Hannan and Ms. Rach from the Administrative Board Committee Meeting of August 2, 2012. Adopted by the following vote: 4 - 0 The Committee discussed the election of members for Ms. Angela Bennett's expired term. The Committee will request that Ms. Bennett be re-appointed by the Mayor's office. Ms. Bennett provided an update regarding the OPEB actuary report. Ms. Bennett informed the Administrative Board that the actuarial study is required for this year and will be prepared by the end of the year. It was moved by Ms. Taylor and supported by Ms. Bennett to adjourn the meeting. Adopted by following vote: 4—0. The meeting adjourned at 10:25 a.m. CITY OF LANSING DEFINED CONTRIBUTION PENSION PLAN/ VEBA PLAN MEETING OF MAY 3, 2012 The Administrative Board was called to order at 9:13 a.m. Present: Members: Bill Barkyoumb, Angela Bennett, Randy Endsley, Antonia Kraus, Faith Rach - 5. Absent: Randy Hannan, Terri Taylor Others: Anne Omiljan, Wells Fargo. It was moved by Ms. Bennett and supported by Ms. Kraus to approve the Administrative Board Committee Meeting Minutes for May 3, 2012. Faith Rach inquired about the forfeiture regarding Mr. Brigham Smith. The Committee explained the process regarding how monies were inadvertently contributed to the Defined Contribution Plan and then forfeited. Adopted by the following voter 5 -0. Ms. Anne Omiljan provided an overview of the Defined Contribution plan assets. Ms. Omiljan reviewed the assets of the plan, explained the fee breakdown of plan fund expenses, and, performance of the funds for the first quarter of 2012. Ms. Omiljan explained the new federdl regulations regarding annual fee disclosure. Ms. Omiljan suggested that the Committee move the William Blair Small Cap Growth to its watch list. - C It was moved by Ms. Bennett and supported by Ms. Rach to excuse Ms. Taylor and Mr.-HarMan from the Administrative Board Committee Meeting of May 3, 2012. -- Adopted by the following vote: 5 - 0 The Committee discussed the election of members, officers and subcommittee. The item will be pending until next meeting. The Administration may need to appoint a member for the current vacancy of Ms. Angela Bennett. Ms. Anne Omiljan informed the Administrative Board that the monies sent to the Defined Contribution plan on behalf of Mr. Smith has been forfeited into the Plan. Ms. Bennett requested that the Board add an agenda item to pending to discuss what options are available to pay fees of the plan when the forfeiture account has been exhausted. Ms. Omiljan provided alternatives that either the Administration could pay the fees or the fees could be charged to the participants balances. Mr. Barkyoumb suggested that the item be placed on the pending agenda for discussion. Ms. Kraus stated that the Administrative Board could provide a recommendation to the Administration, but the decision would be made by the Administration. Ms. Rach requested information regarding the actuarial study to be performed this year. Ms. Bennett informed the Administrative Board that the actuarial study is required for this year and will be prepared by the end of the year. Mr. Barkyoumb placed the item on pending. Ms. Rach requested that a quarterly report and performance review be provided by Comerica regarding the VEBA account. Ms. Omiljan stated that Wells Fargo also has managed index funds for VEBA accounts. The Administrative Board requested that Ms. Omiljan provide a presentation of the Wells Fargo managed funds accounts that could be used for the VEBA. It was moved by Ms. Kraus and supported by Ms. Rach to adjourn the meeting. Adopted by following vote: 5 —0. The meeting adjourned at 9:42 a.m.