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HomeMy WebLinkAboutDefined Contribution Minutes 02.05.26CITY OF LANSING DEFINED CONTRIBUTION PENSION PLAN/ VEBA PLAN MEETING OF FEBRUARY 5, 2026 The Administrative Board was called to order at 10:01 a.m. Present: Members: Cahill, Mumby, O’Leary, Sorrells, Wright – 5 Absent: Randall Others: Karen Williams, Retirement Administrator, Thomas Lindemann: Human Resources, Ben Bakken, Dewey Doyle, TriStar; Lisa Hagen-Lawrence, City Attorney’s Office At the request of chairperson Cahill, each member, staff introduced themselves to familiarize the committee with new members. Mr. Ben Bakken reviewed the TriStar team, and each member provided a short description of their role within the VEBA and Defined Contribution plans. It was moved by Ms. Oleary and supported by Ms. Sorrells to approve the Administrative Board Committee Meeting Minutes of November 6, 2025. Adopted by the following vote: 5 – 0 Mr. Dewey Doyle provided an economic outlook of City of Lansing VEBA plan. He noted that inflation is trending downward, 2025 economic markets were volatile but ended the year in positive territory. The 2026 outlook indicated positive returns expected with continued volatility. Mr. Doyle provided market insights and discussed that prior year performance was driven largely by the “Magnificent Seven” technology stocks. Mr. Doyle believed a shift was underway toward broader market participation, with value stocks outperforming in early 2026. Mr. Doyle reviewed the City of Lansing VEBA plan performance. He reported a beginning value of approximately $47 million and an ending value of approximately $54.7 million for 2025, representing an annual return of 14.9% against a benchmark of 14.2%. Mr. Doyle explained the portfolio’s asset allocation: approximately 36% U.S. equities, 38% fixed income, 15% international equities (which returned approximately 32% in 2025), 8% alternatives (which significantly outperformed at approximately 16% versus the ~4% T-bill benchmark), and 2–3% cash. He emphasized diversification as the committee’s key strategy. Defined Contribution Plan February 5, 2026 Page 2 Mr. Doyle reviewed the performance of the Defined Contribution Plan. He noted that the vesting project had been completed. Total plan assets stand at approximately $9.94 million. He noted that 64% of assets are invested in target-date funds, which was identified as a positive indicator of diversification. Approximately 8% of assets are held in stable value funds, which were flagged for monitoring due to declining rates. He also noted $17,000 in forfeitures available to offset plan costs. City of Lansing There were no public comments. Karen Williams reported on the ongoing difficulty filling the third committee seat due to restrictions limiting representation to one member per bargaining unit. The committee approved the following strategy: targeted outreach to underrepresented groups, extension of the nomination deadline by one week, and continued evaluation of eligibility rules with consideration of rule changes if the vacancy persists. A posting was approved for committee nominations and election dates and time for a committee seat. The Committee agreed to defer discussion of officer elections and subcommittee membership to the next meeting. It was moved by Mr. Mumby and supported by Ms. O’Leary to excuse Ms. Thomas and Ms. Gill from the February meeting. Adopted by the following vote: 5 – 0 Karen Williams presented the requirement for an actuarial audit under Public Act 202, which is required every eight (8) years. Foster & Foster was recommended to conduct the engagement at a Level 3 (review-based) scope. It was moved by Ms. O’Leary and supported by Mr. Mumby to approve Foster & Foster for the actuarial audit (Level 3), pending review of timing and logistics. Adopted by the following vote: 5 – 0 It was moved by Mr. Mumby and supported by Ms. O’Leary to excuse Mr. Randall from the meeting. Adopted by the following: 5 -0. It was moved by Ms. O’Leary and supported by Mr. Mumby to adjourn the February meeting of the Defined Contribution/VEBA Plan Committee. Adopted by the following: unanimous The meeting adjourned at 10:49 a.m.