Pension Board

MINUTES UNIFIED GOVERNMENT OF ATHENS-CLARKE COUNTY PENSION BOARD SPECIAL CALLED MEETING THURSDAY, OCTOBER 11, 2018, 2:00 PM The Athens-Clarke County Pension Board held a meeting on Wednesday, August 8, 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 7. Mike Hunsinger, Public Safety Employee Representative Ex Officio members: Bill Berryman, Attorney Laura Welch, Assistant Human Resources Director Traci Mason, Benefits & Wellness Administrator Other ACCUG Professionals: Robert Hiss, Assistant Manager Jestin Johnson, Assistant Manager The meeting was called to order at 2:02 p.m. Jeff Hale reviewed the findings of the Experience Study and Preliminary Valuation Results of the Pension Fund:  The assumptions currently used by the Pension Board are no longer valid as they are 20 years old;  ACCGOV is experiencing more turnover, and therefore withdrawals from the pension, than expected;  ACCGOV has experienced an increase in retirements;  Standard table will be used for disability rates, rather than a specific ACCGOV table;  Standard table will be used for mortality rates; If all of the recommendations put forth by Aon are adopted, there will be a budgetary impact of $2.4 million. David Boyd discussed the discount rate:  Impact of reducing the rate from 8%: each .25 percentage point reduction represents a 3% reduction in the funded amount.  Aon would like to recommend a lower discount rate but the Pension Fund has operated in the top tenth percentile for many years.  A lower discount rate assumption increases the annual contribution or increases the liability on the balance sheet, which could affect ACC’s bond rating.   Setting the discount rate between 5.5% and 7.2% is recommended by Aon in order for them to certify the experience study.  Rates of return are expected to go up. The board reached consensus that there should be a dialogue between Aon, David Boyd, Blaine Williams and Mike Hunsinger to finalize the assumptions. November 1: Interview mid cap candidates to replace Seizert. November 7: Regular Pension Board Meeting. The Board reached consensus that representatives from Finance (David Boys and Chris Caldwell) and Human Resources (Jeff Hale and Laura Welch) will review the 17 proposals submitted by investment consulting firms and provide a short list to the Board. Selection will be made in late November or early December. The meeting adjourned at 2:48 p.m. Respectfully submitted, Laura Welch, Assistant Human Resources Director Secretary to the Pension Board