Fixed Income Taxable Intermediate $246,050,126 Emerging Markets $35,453,507 Cash & Equivalents $2,622,416
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Gwinnett County, Georgia Retirement Plans Management Committee August 23, 2012 Regular Meeting 8:00 AM Gwinnett Justice and Administrative Center, Conference Room C Agenda 1. Adoption of Agenda * Kenneth Poe 2. Approval of Minutes * Kenneth Poe May 24, 2012 Meeting 3. Electronic Agenda Review *** Aaron Bovos 4. Performance Reports – Fund Reports a. 2nd Quarter DB Plan *** UBS i. Institutional Perspectives ii. July Investment Strategy Guide iii. Investment Performance Report iv. Fee Schedule – 2nd Quarter v. Manager Watch List vi. Downgraded Bonds b. 2nd Quarter DC Plans *** Great West i. Fund Performance Review – AAG ii. Executive Summary 1) Plan Review 5. Investment Committee Reports *** Mike Ludwiczak a. Acceptance of recommendation to add * Sands Capital Management as a Large Cap Manager b. Acceptance of recommendation to remove * Janus Global Select T Fund from DC Plans Investment Fund Options c. Acceptance of the Proposal to conduct an * OPEB Experience Study by Cavanaugh MacDonald 6. Review of Forfeiture Assets and Revenue Sharing *** Aaron Bovos Account 7. Past Quarter Participation and Education *** Debbi Davidson Fred Minot a. Participation Numbers b. Education Update 8. Report on due diligence trip to Great West *** Kenneth Poe Mike Ludwiczak 9. Financial Advisor RFP Update *** Kenneth Poe 10. Deferred Vested Project Update *** Debbi Davidson 11. Proposed change to 457(b) eligibility * Debbi Davidson 12. Review 2012 Goals *** Kenneth Poe 13. Vendor Annual Review *** Kenneth Poe Mike Ludwiczak a. Contract Review b. Investment Committee Review c. Survey Results a. RPMC and Investment Committee Survey b. Participant Survey 14. Next Meeting – November 15, 2012 *** Kenneth Poe 15. Public Comments (Limited to 30 minutes) ** *Action Items **Speakers wishing to address the RPMC must report to the Clerk of the Committee prior to the meeting being called to order. Speakers are limited to 3 minutes or less. ***Information items requiring no action. NEXT SECTION Gwinnett County, Georgia Retirement Plans Management Committee May 24, 2012 Regular Meeting Minutes 8:00 AM Gwinnett Justice and Administrative Center, Conference Room C Members Present: Jim Underwood, Aaron Bovos, Glenn Stephens, Kenneth Poe, Ken Chadwick, David Crews, Ashley Stinson Chairman Kenneth Poe called the meeting to order at 8:10 AM. Adoption of Agenda Jim Underwood made the motion to approve the Agenda and David Crews seconded it. (Vote 7 – 0) Poe – Yes; Underwood – Yes; Bovos –Yes; Stephens – Yes; Chadwick – Yes; Crews – Yes; Stinson – Yes. Approval of minutes Aaron Bovos made the motion to approve the Minutes for the February 23, 2012 Regular meeting and Glenn Stephens seconded it. (Vote 7 – 0) Poe – Yes; Underwood – Yes; Bovos –Yes; Stephens – Yes; Chadwick – Yes; Crews – Yes; Stinson - Yes. Introduce new member of RPMC Kenneth Poe introduced Ashley Stinson, an attorney in Juvenile Court, as the new board member to complete the remainder of Stan Hall’s term. Electronic agenda and supporting document training Debbi Davidson presented the instructions for the electronic agenda and supporting documents. The RPMC agenda and supporting documents will be distributed through an electronic process beginning the next quarterly meeting. Performance Reports Executive Summaries First Quarter DB Plan Investment Performance Report- The report for the first quarter of 2012 was presented by Allen Wright and Scott Olsen of the consulting firm UBS Institutional Consulting. Gwinnett County is doing exceptionally well. The plan is in the top 1% for all plans in our comparable universe. The Market Value of the DB Plan as of 03/31/2012 was $721,375.376. This amount is invested in the following accounts (Gross of Fees). Large Cap Growth $94,214,765 Large Cap Value $92,461,936 Mid Cap $296,553 Mid Cap Core $18,773,276 Mid Cap Growth $18,785,216 Mid Cap Value $18,779,626 Small Cap Blend $60,011,041 REITS $33,777,570 Foreign Developed Blend $100,149,344 Fixed Income Taxable Intermediate $246,050,126 Emerging Markets $35,453,507 Cash & Equivalents $2,622,416 Third Quarter DC and 457 Plans Fund Performance- The report on the funds in these plans was presented by Mr. Bill Thornton of Advised Assets Group. There are no big concerns with current funds. Donald Erwin of Great West Retirement Services presented the Plan Review for April 1, 2011 through March 31, 2012. Plan assets were at $208,590,000 as of March 31, 2012. Plan assets grew by $ 12.95 million (6.6%) during this time period. The average account balance per participant was $32,644 for the 401(a) Plan and $23,932 for the 457(b) Plan. The County is doing very well compared to other governments on contributions by assets class. The average number of Investment Options per Participant was 8.0 for the 401(a) Plan and 6.7 for the 457(b) Plan. Past Quarter Education and Participation Information Participation Information – Current Active Participants DB Plan 2,107 DC Plan 2,263 Deferred Comp 2,882 Retirees Retirees Receiving DB Pensions 1,756 Retirees with Health Insurance 1,394 Use of Forfeiture Accounts and Revenue Sharing Assets- o The 401(h) forfeiture balances continues to be used to fund employer contributions for 2012. As of May 2012, $120,168.29 has been used from the Forfeiture Account for 401(h) employer contributions. A report was made on the Deferred Vested project. The project identified 960 Deferred Vested participants. Of the 960, 343 have been completed to date. The planned completion date for this project is the end of the year providing that the County has sufficient resources. Audit Committee Report Maria Woods, Audit Committee Chair, presented the minutes for the Audit Committee Meeting on May 22, 2012 regular meeting. Joel Black of Mauldin and Jenkins presented 2011 Audit Results. The Plans received an Unqualified (“clean”) opinion on the basic financial statements. Funds for both plans continue to grow and the funding status is stable for the Defined Benefit Plan and growing for the OPEB Plan. Glenn Stephens made the motion to accept the 2011 Audit Results and Aaron Bovos seconded it. (Vote 7 – 0) Poe – Yes; Underwood – Yes; Bovos –Yes; Stephens – Yes; Chadwick – Yes; Crews – Yes; Stinson - Yes. Actuarial Reports Todd Green of Cavanaugh Macdonald Consulting, LLC presented the Annual Valuation as of January 1, 2012. The Annual Required Contribution (ARC) for the County increased from 30.28% to 31.30% of covered payroll. The DB Plan experienced gains as a result of less than expected pay increases and additional contributions and the plan had losses from less than expected investment returns and demographic experience being different from assumptions. Alisa Bennett of Cavanaugh Macdonald Consulting, LLC presented the Health Insurance Plan 2012 Actuarial Valuation Results. The Unfunded Actuarial Liability amortization period remains at 30 years and a level percentage of pay. She recommended that the RPMC may want to discuss completing an experience study for the OPEB Trust. Update on progress of 2012 Goals Several of the goals for 2012 have been accomplished in the first quarter. For the goal of an RFP’s for Investment Consulting and Planning Services, an update was given on the RFP status of the goal to implementing Investment Consulting and Planning Services. There were four responses to the RFP. There will be three interviews of the proposers in the next few months. Investment Committee Recommendations and Reports- Mike Ludwiczak, Investment Committee Chair, presented the changes to the Statement of Investment Policy on Operating Cash and Targeted Cash Levels. Jim Underwood made the motion to approve the changes made to the Statement of Investment Policy and Glenn Stephens seconded it. (Vote 7 – 0) Poe – Yes; Underwood – Yes; Bovos –Yes; Stephens – Yes; Chadwick – Yes; Crews – Yes; Stinson - Yes. Fiduciary Training- Ed Emerson of Bryan Cave provided Fiduciary Training. Attendees receiving the training included members of the RPMC. Jim Underwood, Kenneth Poe, Ken Chadwick, Glenn Stephens, David Crews, Aaron, Bovos, Ashley Stinson; members of the Audit Committee: Maria Woods, Debbi Davidson, Tom Savage; members of the Investment Committee: Mike Ludwiczak, Bill Rodenbeck, Karen Karasinski, Beth Horacek, Paul Turner; and Staff: Sue Rooks. Next Meeting August 23, 2012, Gwinnett Justice and Administration Center, Conference Room C at 8:00 a.m. Public Comments (Limited to 30 minutes)- There were no public comments. Ken Chadwick made the motion to adjourn and David Crews seconded it. (Vote 7 – 0) Poe – Yes; Underwood – Yes; Bovos –Yes; Stephens – Yes; Chadwick – Yes; Crews – Yes; Stinson - Yes. The meeting adjourned at 11:20 a.m. NEXT SECTION New Electronic Agenda Distribution Process In an effort to create a more efficient process, as of the November 15, 2012 meeting, we will be switching to an electronic agenda distribution process. 1. One week in advance of the meeting, an e-mail containing the agenda as an attached Adobe PDF file will be sent to all members. 2. The agenda will include bookmarks that link directly to the documents that will be referenced during the meeting. Each document will coincide with a specific agenda item and when the link is selected the document will appear on the screen. 3. Members can access Adobe PDF files at any computer with Adobe software. 4. Members will be provided a laptop at meetings, or they can bring their own Provided laptops will be loaded with PDF file containing agenda NEXT SECTION Institutional Perspectives Market Performance Report June 30, 2012 2012 quarterly returns