Retirement Board

MINUTES OF REGULAR RETIREMENT BOARD MEETING Thursday, March 22, 2018 (rescheduled from February 15, 2018) City Hall, East Wing Oak Conference Room 6:00 p.m. 1. Call to Order: The meeting was called to order by Chair Connie Rydberg at 6:10 p.m. 2. Roll Call: Present: Connie Rydberg, Richard Campbell, Larry Little, Marshall Jarrett, Ryan Davis, Charles Collier and Jason Widstrom Staff Present: Cindy Mester, Kiran Bawa and Meaghan DeCelle Also Present: Howard Pohl and Mary Nye, AndCo Consulting 3. Staff welcome. 4. Review and approval of the November 17, 2017 minutes: Ryan Davis moved and Connie Rydberg seconded to approve the minutes of November 17, 2017 as amended. The motion passed 7-0 5. Receipt of Petitions: None 6. Review of fourth Quarter 2017 Basic, Police and OPEB Investment Performance-Howard Pohl and Mary Nye Howard and Mary discussed the 4th quarter fund performance. International markets were up for the 4th quarter, helped by the weakening dollar. Domestic markets showed even more positive return. In general, growth stocks out-performed value stocks. Surprisingly, long bonds outperformed short bonds in the rising interest rate atmosphere. Funds like the City of Falls Church plans benefited from being mostly equity based. In the Basic plan for the quarter, net flows were minimal at just under $90,000 coming into the plan and ROI was $5.1 million, finishing with a total market value of $108 million. For last 12 months, total ROI was just under $20 million. In terms of asset allocation, real estate is at 0 due to sale out of UBS. International equity is overweight from target with the funds from the sale of UBS real estate. The Basic plan is performing 3rd in the overall universe and is in top decile in all categories. The plans had a very good year, achieving 3x the actuarially assumed return rate. Reviewing the individual fund managers: SKBA carried the Domestic Equity sector for the quarter, ranking 4th in the universe. Other domestic fund managers were close to index. The international equity managers are performing above index with strong rankings.  The Police Plan had positive flows of $344,000 for the quarter and ROI of $1.6 million, ending with a total market value of almost $34 million. Policy allocation and performance is very similar to the Basic plan. The OPEB plans are close to policy targets and ranked overall 8th in the performance universe. ROI for the quarter was $622, 000 and ending market value was $14.6 million. Connie asked if there was any concern about any of the fund managers. Mary said no concerns. Summit Creek had expressed interest in speaking to the Board; the Board agreed to have AndCo coordinate a visit from Summit Creek for the May meeting. 7. Remote Meeting Call-in Policy: Ryan Davis moved and Charles Collier seconded to approve the resolution to adopt the State policy allowing for remote call-in of Board members. The motion passed 7-0. 8. Plan Administrator’s Report: Cindy Mester gave an update on HR reorganization and plans for the election for the Employee Representative for the Retirement Board. August meeting was discussed and rescheduled to August 2, 2018. Draft of Board training plan was presented and discussed. Discussion on implementation of a training schedule and types of trainings will continue at the next Board meeting. Real Estate subscription agreements have yet to be executed, pending review from outside counsel. Cindy Mester presented three proposed Pension Plan amendments: clarification on use of Water sale proceeds to offset the ARC, clarifying that the EDA and NVCJA are covered employers and clarification on refunded contributions to terminated non-vested participants. Marshal moved and Ryan seconded the pension plan amendments for covered employees and refunded contributions. The motion passed 7-0. Amendments to the water sale proceed endowment contribution requires additional analysis. 9. Other Business not on the agenda: Marshall Jarrett paid honor to the memory of recently deceased former Council member, Ira Kaylin. 10. Adjournment: Rick Campbell moved and Marshall Jarett seconded to adjourn the meeting at 8:06 pm. The motion passed 7-0 THIS LOCATION IS FULLY ACCESSIBLE TO PERSONS WITH PHYSICAL DISABILITIES. TRANSLATION SERVICES OR ASSISTANCE TO PERSONS WITH DISABILITIES MAY BE REQUESTED IN ADVANCE OF THE MEETING. CALL 703-248-5127, FOR THE HEARING IMPAIRED, TTY711.