Pension Board

MINUTES UNIFIED GOVERNMENT OF ATHENS-CLARKE COUNTY PENSION BOARD SPECIAL CALLED MEETING WEDNESDAY, May 9, 2018, 3:30 PM The Athens-Clarke County Pension Board held a meeting on Wednesday, May 9, 2018 in the Satula Avenue Government Building Training Room. The following were in attendance: ACCUG Pension Board Ordinance - Section 1-14-15 Members: 1. Mike Hamby, Commissioner and Pension Board Chair 2. Blaine Williams, Manager 3. David Boyd, Finance Director 4. Jeff Hale, Human Resources Director 5. Johnny Fowler, Retiree Representative 6. Kevin Gentry, General Employee Representative Ex Officio members: Bill Berryman, Attorney Laura Welch, Assistant Human Resources Director Traci Mason, Benefits and Wellness Administrator Other ACCUG Professionals: Robert Hiss, Assistant Manager Jestin Johnson, Assistant Manager Chris Caldwell, Assistant Finance Director Katherine Poss, Treasurer Mike Hamby, Commissioner and Pension Board Chair called the meeting to order at 3:36 p.m. David Boyd made a motion to approve the minutes of the February 7, 2018 meeting, seconded by Johnny Fowler. The Board unanimously approved the February 7, 2018 minutes. David Boyd made a motion to approve the minutes of the special called April 25, 2018 meeting, seconded by Jeff Hale. The Board unanimously approved the April 25, 2018 minutes. Laura Welch, Pension Board Secretary, informed the Board that the retirement of Captain Mark Sizemore from the Athens-Clarke County Police Department on May 15, 2018 created a vacancy of the Public Safety representative. She presented the following materials for the replacement of the public safety representative: 1. Athens-Clarke County Code of Ordinances Sec.1-14-15 Article XV—Pension Board; 2. Draft letter requesting applications from public safety employees; 3. Personal Synopsis Form for applicants. She stated that Human Resources would accept applications from May 15 to June 1, 2018. After verifying the eligibility of the applicants, all employees would be given the opportunity to vote in accordance with the ordinance. The vacancy should be filled for the unexpired term within 30 days, if possible, which would be June 15, 2018. Jeff Hale reported that AON has completed the experience study and will attend the August 8, 2018 meeting to report on the results. Laura Welch provided a report of the retirements and deaths that have occurred since the last Pension Board meeting on November 7. Cyril Theccanat and Brad Lyons of Consequent Investment provided the quarterly performance report for ACCGOV. The plan assets were at $239.10 million as of March 31, 2018. The plan return for the quarter was 0.5% and the return was 11.2% for the last 12 months. Mr. Theccanat also reviewed manager and fund performance for 2017, and over three, five, and ten years. Consequent provided highlights for the past year, May 2017 to May 2018:  Reported that ACCGOV has achieved a higher return with lower risk on a 3-year and 5-year basis.  Presented research and analysis of Rising Yield Implications for Fixed Income Asset allocation.  Recommended that the Pension Board replace Core Aggregate Fixed Income strategy with an Intermediate Aggregate Fixed Income strategy to mitigate the possibility of rising interest rates.  Recommended Pension Board engage current fixed income manager Galliard for Intermediate Fixed Income Strategy, which was adopted by the board.  Negotiated a lower fee for Galliard, which reduced fixed income management fees by $36,000 per year.  Worked with Galliard and the ACCGOV Treasurer’s Office to incorporate modifications in the Pension Plan investment policy statement to reflect changes in the plan’s fixed income asset allocation.  Recommended changing share class for American Funds EuroPacific Growth Fund, which saved the Pension Fund an estimated $94,000 per year.  Encouraged the Pension Board to increase the allocation to international equities; the board approved $545,000 in case to the international equity fund.  Recommended that the Pension Board place mid cap equity manager Seizert Captial Management on watch for significant underperformance and volatility. As a result of the board approving that at the February 7 meeting, they completed a comprehensive manager search and analysis for a Mid Cap Equity manager.  Reported that ACCGOV’s relative performance ranking compare to other public pension plans is high; top 12th percentile for 1st quarter of 2018. The next meeting is scheduled for August 8, 2018. The meeting was adjourned at 5:00 p.m. Respectfully submitted, Laura Welch, Assistant Human Resources Director Secretary to the Pension Board