Retirement Board

APPROVED MINUTES RETIREMENT BOARD MEETING Thursday, February 12, 2015 City Hall Dogwood Room 6:00 p.m. 1. Call to Order: The meeting was called to order by Chair Connie Rydberg at 6:05 p.m. 2. Roll Call Present: Connie Rydberg, Richard Campbell, Charles Collier, Elizabeth Hanson, Larry Little, and Jason Widstrom Absent: Ryan Davis Staff Present: Richard Parker, Richard LaCondre, Persephone Robinson and Beverly Reich. 3. Review and approval of the November 13, 2014 draft minutes. Elizabeth Hanson moved and Rick Campbell seconded to approve the minutes of November 13, 2014. The motion passed 6-0 with Ryan Davis absent. 4. Receipt of Petitions There were none but Richard Parker informed the Board that there is a possibility of a Disability Retirement request coming soon. A special meeting will be called, if appropriate. 5. Retirement Board’s Annual Report to City Council on January 26, 2015 and Council’s Comments. Connie Rydberg discussed with the Board the presentation of the Annual Report to City Council. She told the Council that 50% of the water funds were invested in December 2014 and the other 50% will be invested in May 2015. The City Council asked the Board to report back in six months on how the water funds are doing and whether all the water funds should be invested now rather than waiting until May. (The Board voted at its November 13, 2014 meeting to invest 50% of the water funds then and the remainder after the May 14, 2015 meeting). The Board decided they remained committed to the decision made in November and no further action was necessary at this time. 6. Review of the Investment Performance for the Fourth Quarter of 2014 for the Basic and Police Pension Plans by Howard Pohl and Mary Nye of the Bogdahn Group. Overall the stock market in the 4th Quarter did very good with the Small caps outperforming the Large caps for the first time in the past few years. Bonds also had a positive return but the International and emerging markets produced negative returns. The Basic Plan’s assets increased from $80.9M to $89M during  the quarter ($6.2 million was the addition of the water funds). The Police Plan increased from $22.6M to $26M during the quarter ($2.9 million was the addition of water fund proceeds). The Basic Plan had an overall return of 2.77% during the quarter while the Police Plan returned 2.72%; both returns were in the top quartile of all investment managers in Bogdahn Group’s database. Mr. Pohl suggested inviting UBS to the next Retirement Board meeting and the Board agreed. 7. Review of the Retirement Board’s Ethics Policy. Richard Parker and Charles Collier researched and met with the City Attorney on the policy. The City Attorney made some changes to the Board’s Ethics Policy. The Board discussed the changes and best practices moving forward to review the policy once a year and for new members and investment managers to review the policy. Rick Campbell moved and Jason Widstrom seconded to adopt the revised Ethics Policy. The motion passed 6-0 with Ryan Davis absent. 8. Brief Reports from Board Members Richard Campbell and Larry Little about Information Learned from their Attendance at the International Foundation Conference in October 2014. 9. Plan Administrator’s Report Richard Parker distributed the Retirement Board’s expenses for FY15 and reported that the fiduciary review of the managers’ fees found most of them less than average. Chair Rydberg asked about the $15,000 charged to the Basic Plan and $5,000 to the Police Plan for Human Resources services. Mr. Parker said that the amount of time HR staff spends on the pension plans exceeds $20,000 per year so it is a valid number. He also told the Board’s attention that the OPEB account will need the same oversight and review as the retirement plans. This could be piggybacked with the current plans or it might need a separate contract. Mr. Parker also brought to the Board’s attention that there are 3 Board members’ terms are expiring April 30th. Liz Hanson has decided not to seek another term on the Board and Mr. Parker and Board members thanked her for her service. Ryan Davis is the City Manager appointed representative and has agreed to remain on the Board and Connie Rydberg has also agreed to remain on the Board. Jason Widstrom is filling an employee elected position and an election will be held on April 15th. 10. Other business not on the agenda: None 11. Adjournment Richard Campbell moved and Elizabeth Hanson seconded to adjourn the meeting at 8:45PM. The motion passed 6-0. THE CITY OF FALLS CHURCH IS COMMITTED TO THE LETTER AND SPIRIT OF THE AMERICANS WITH DISABILITIES ACT. TO REQUEST A REASONABLE ACCOMMODATION FOR ANY TYPE OF DISABILITY, CALL 703-248-5128, TTY711.