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HomeMy WebLinkAboutDefined Contribution Minutes 05.07.26CITY OF LANSING DEFINED CONTRIBUTION PENSION PLAN/VEBA PLAN ADMINISTRATIVE COMMITTEE MINUTES OF REGULAR MEETING Thursday, May 7, 2026 The Administrative Committee for the Defined Contribution Pension Plan/VEBA Plan met in regular session on Thursday, May 7, 2026, at 10:01 a.m., in the 8th Floor Conference Room, Lansing City Hall, Chairperson Irene Cahill presiding. Ms. Williams reported that the deadline for filing nominating petitions for the two open terms on the City of Lansing Defined Contribution Pension Plan Governing Committee was 4:00 p.m., Thursday, March 5, 2026. Two petitions were received and certified by the Retirement Office: Irene Cahill, representing Teamsters 243 Supervisory, and Courtney Roberts, representing Non- Bargaining Supervisory. As the number of candidates equaled the number of vacancies, no primary or general election was required, and both nominees were declared elected unopposed. It was moved by Ms. O’Leary and supported by Mr. Wright. to accept and place on file the certified election results declaring Irene Cahill and Courtney Roberts elected to the City of Lansing Defined Contribution Pension Plan Governing Committee. Adopted by the following vote: 6 – 0. The Chairperson welcomed Ms. Roberts to the Committee. Present: Cahill, Mumby, O’Leary, Randall, Roberts, Sorrells, Wright – 7. Absent: None. A quorum was declared present. Also Present: Karen E. Williams, Retirement Administrator (Recording Secretary); Tom Lindemann, Retirement Technician; Human Resources; Crystal Thomas, Finance; Daniel DuChene, Deputy City Attorney; Bill Christensen, City Trust Administrator, TriStar; Dewey Doyle, Portfolio Manager, TriStar; Jane Hagan, Director of the Retirement Plan, TriStar; and Jordan Weier, TriStar Trust. Introductions were made for the benefit of newly seated members and guests. It was moved by Ms. O’Leary and supported by Mr. Wright to approve the Minutes of the Administrative Board Committee Meeting of February 5, 2026, as presented, and as corrected. Adopted by the following vote: 7 -0 Mr. Doyle (TriStar) reviewed capital markets conditions for the first quarter of 2026, noting significant volatility in March followed by a recovery, with positive domestic and international returns expected to continue into 2027. He discussed the portfolio performance for the most recent month, the portfolio returned -3.9% versus a benchmark of -4.2%. Defined Contribution Pension Plan/VEBA Plan Administrative Committee Minutes – May 7, 2026, Page 2 Ms. Williams inquired about the absence of visible City contributions for 2025 and 2026 in the cash flow report. Mr. Doyle and Mr. Weyer clarified that the figures reflect net cash flow, and that withdrawals have exceeded contributions during the period; the only funds received into the account were transferred from the prior recordkeeper, Principal. TriStar agreed to follow up to confirm whether a contribution may have been misdirected. Ms. Hagan reviewed the quarterly fund scoring report, noting that approximately 99% of funds in the lineup scored in the satisfactory range. The Vanguard Target Retirement Income Fund is in the watch category (score of approximately 50) because of Vanguard’s standard practice of rolling a target-date fund into its Income Fund approximately seven years after the fund’s target date. The Plan holds no assets in the affected fund, and none are anticipated; the fund is expected to be removed from the watch list within the next year. Mr. Weier (TriStar) reported on the vesting review project completed with the assistance of Ms. Williams and Ms. Thomas. Seventy (70) terminated participants were identified with vested balances below $7,000, which are eligible to be rolled out of the Plan to an IRA. Staff will coordinate with the Third-Party Administrator (ERP) contact to begin distribution processing, with vesting verification required for each individual prior to distribution. Mr. Waier reported that one participant was identified as due for a required minimum distribution in 2026. Staff will attempt to contact the individual; if no action is taken, Transamerica will process the distribution automatically to avoid IRS penalties. Mr. Waier also reported 48 of 450 participants with an account balance have an online beneficiary designation on file (approximately 10.7%). Mr. Weier noted that beneficiary data does not transfer between recordkeepers when a plan changes providers, as occurred with the transition from Principal to Transamerica, which is common industry practice and accounts for the low participation rate. Ms. Hagan noted TriStar also sends quarterly reminders. Mr. Weier reported the forfeiture account balance was $0.00 as of April 20, 2026. There were no public comments. Ms. Williams reported that officer elections were not conducted at the February 2026 meeting as the administrative committee wanted to wait until the election of members were completed. It was moved by Mr. Wright and supported by Ms. Sorrells to nominate and elect Irene Cahill as Chairperson of the Committee. Ms. Cahill accepted the nomination. Adopted by the following vote: 7 -0 It was moved by Ms. O’Leary and supported by Mr. Mumby to nominate and elect Erica Sorrells as Vice Chairperson of the Committee. Ms. Sorrells accepted the nomination. Adopted by the following vote: 7 -0. Defined Contribution Pension Plan/VEBA Plan Administrative Committee Minutes – May 7, 2026, Page 3 Current subcommittee assignments, prepared by Mr. Lindemann, were reviewed and distributed to the Committee: Administrative: Mumby, O’Leary, Cahill, Ex-officio, City Attorney Investment: Cahill, Wright, Randall Education: Sorrells, O’Leary, Randall, Roberts It was moved by Ms. O’Leary and supported by Mr. Wright to adjourn the meeting. Adopted by the following vote: unanimous The meeting was adjourned at 11:05 a.m. Next Meeting: August 6, 2026.