Becky Van Wyk Interim Retirement Administrator

FRESNO COUNTY EMPLOYEES' RETIREMENT ASSOCIATION ' ~`' BOARD OF RETIREMENT Dr. Rod Coburn, III, Chair ~ ~ Robert Dowell, Vice Chair ~, r , '. ~ ~ Marion Austin Laura P. Basua Judith Case McNairy Vicki Crow Becky Van Wyk Eulalio Gamez Interim Retirement Administrator Steven J. Jolly

DATE: November 5, 2014

TO: Trustees, Board of Retirement

FROM: Becky Van Wyk Interim Retirement Administrator

SUBJECT: Public Records Requests and/ar Retirement Related Information Requests

have attached far your review public records requests and/or retirement related information received from Ron Madsen, FCERA Member; Les Jorgensen, REFCC~; and Hank Retfard.

Please note that when the information requested has been presented to your Board at a previous Board meeting or if the amount of information is sizeable, the requested documentation is not included with the responses. If you would like a hard copy of any of these documents, please contact the FCERA office and one will be provided to you.

Please contact me if you have any questions. Thank you.

1111 H Street, Fresno, CA 93721, Tel 559.457.0681 Fax 559.457.0318 Avalos, Elizabeth

From: Hinds, Conor Sent: Friday, October 31, 2014 12:52 PM To: Ron Cc: Van Wyk, Becky; Avalos, Elizabeth Subject: FW: PRA - RE: 2004 POB proceeds and settlement reserves

Attachments: POB Journal Entry and DETLEGEN (Reserves)from 6-30-2004.pdf

POB Journal Entry and DETLEGEN... Hello Ran,

I am providing the documentation that I have available regarding the journal entry created for the June 30, 2004 POB transfers. Included you will find the journal entry report listing Entry Number 00011 Reclass POB Contrib June 2004. In addition, I have included a work document showing the T accounts of the balances of the POB being reclassed within the other reserve accounts.

The work document does not take into account the regular required contributions that were paid by the County and Special Districts at that time, so you will notice a variance between the balances on the work paper and the final amounts on the DETLEGEN (Reserve Schedule). For example, the work paper shows an ending balance of $151,416,736.49 for General Current Service ER contribution account but you will see a contributions balance of $181,314,970.27 on the DETLEGEN. The $151,416,736.49 represents the amounts determined to be POB for this account, the difference $29,988,233.78 represents the regular annual contribution paid by employers.

Please let me know if you have any questions about the documentation I have provided.

Thank you,

Conor Hinds Supervising Accountant Fresno County Employees' Retirement Association 1111 H Street Fresno, CA 93721-2515 {559) 457-0681 (559) 457-0318 fax www.fcera.org -----Original Message----- From: Van Wyk, Becky Sent: Monday, October 27, 2014 9:53 AM To: Hinds, Conor Subject: FW: PRA - RE: 2004 POB proceeds and settlement reserves

Conor, Would you please provide the requested documents to Ron? Thank you!

Please call (559.457.0681) or email me if you have further questions.

Sincerely,

Becky Van Wyk, CPA Interim Retirement Administrator Fresno County Employees' Retirement Association 1111 H Street Fresno, CA 93721

1 -----Original Mss ----- From: Ron [ Sent: Sunday, October 26, 2014 2: To: Van Wyk, Becky Subject: RE: PRA - RE: 2004 POB proceeds and settlement reserves

Hi Becky,

Thanks for dou3~le checking. Please send me t3~ose copies of the reserve schedules and journal entries.

Ron

-----Original Message----- From: Van Wyk, Becky [mailto:[email protected]] Sent: Thursday, October 23, 2024 2:46 PM To: 'Ron' Cc: Avalos, Elizabeth Subject: PRA - RE: 2004 POB proceeds and settlement reserves

Hello Ron, I apologize for the delay in responding. We were reviewing old accounting records to confirm the transactions. With the exception of the health benefit reserve, the funds were recorded appropriately in the reserves in 2004. I can provide copies of the reserve schedules and journal entries if you wish.

However, during our review we discovered an accounting error that occurred in 2004 which overfunded the non-vested health benefit with proceeds from the POB. I am meeting with County representatives tomorrow to discuss the issue. Letters will be mailed to all retirees this week notifying them of the error and alerting them to a discussion that will take place at the November 5th Board meeting on the continuation of the non-vested health benefit.

Please call {559.457.0681) or email me if you have further questions.

Sincerely,

Becky Van Wyk, CPA Interim Retirement Administrator Fresno County Employees' Retirement Association 1111 H Street Fresno, CA 93721

-----Original Mess - From: Ron Sent: Tue , L 4 12:15 PM To: Van Wyk, Becky Subject: 2004 POB proceeds and settlement reserves

Hi Becky,

Several years ago you sent me this email showing how the 2004 POB proceeds where distributed among the reserve accounts. It looked right to me at the time.

But now I am looking at Note 7 of the 2004 CAFR. I do not see any big increases in any of the settlement reserves. The only reserves that show big increases are the Current Service Reserve and the COLA Reserve.

Are you sure the bond proceeds went into the reserves they were supposed to go into?

Ron Madsen

-----Original Message----- From: Van Wyk, Becky [mailto:[email protected]] Sent: Monday, September 15, 2008 5:23 PM To: '[email protected]' 2 Subject: RE: PRA - Distribution of Pension Obligation Bond Proceeds

Dear Mr. Madsen,

The following information is provided In response to your recent phone message requesting the distribution of proceeds from the 2004 Pension Obligation Bond.

Reserve Account Name Amount General Current Service $ 151,416,736.49 Safety Current Service $ 29,553,818.56 Cost of Living $ 51,432,937.85 Supp Annuity - General $ 122,021,308.13 Supp Annuity - Safety $ 22,406,708.58 Supplemental Benefit $ 8,284,555.11 Retiree Health Insurance Reserve (Section 9) $ 13,024,663.28 $ 398,140,728.00

Please call me at 559.457.0681 if you have any questions. Thank you.

Becky Van Wyk Assistant Retirement Administrator FCERA - Stop 40 1111 H Street Fresno, CA 93721 Phone - 559.457.0681 Fax - 559.457.0318

3 pate: Friday, October 15, 20Q4 10:DSAM ASSOCiB~It)[1 Pa9~ a G!l Batah l.Psting -Functional Currency Only (Cil~BCHL01}

Trans Srce. Date Reference Description Accoun#Number Debiks Credits GL-G.J 6/30/2004 GJE 443-47 ACTUARY FEES tNOPI iNVE5TMENT) 7295-4200 2,5Q0.00 G!-GJ 6/30/2004 GJE 443-07 ACTUARIAL SERVICES 756410Q0 2,sao.00 Commen#: RECLASS ACTUARY RETAINER FEE TQ DESIGNATEp ACCOUNT, NOT INVESTMENT EXPENSE. Entry Total: 2,5flQ.Q0 2,50Q,00

Entry Number: OOt~08 RECLASS PAYRO~l. FEES 2004 Entry Date, 6130(2004 Year-Prd.: ZOQ412 GL-GJ si3ot2aa4 GJE 443-oa PAYROII FEES 7295-4100 69,025.68 GL-GJ 6I3of2004 ~JE 443-08 PAYROLL FEES WRO~lG ACCT 7295-4300 69,025.68 Comment. R~CLASS FIFTH THIRD MONTHLY PAYROLL FEES TO DESfGNATED HISTORYACCOUNT, Entry Totaf: 69,025.68 69,Q25,s8

Entry Number: p0009 HEAE.TH ENS RESERVE {VS} Entry Date: Bt30/2004 Year-Prd.: 2004!2 GL-GJ 6I30I2004 GJE 443-9 HEALTH !NS RESERVE(BOR) 3062 33,286,99424 Gl,-GJ 6/34!2004 CJE 443-9 HEALTH tNS RESERVE(VS) 3064 33,286,994.24 Comment: TO RECORD THE TRANSFER OF THE VENTURA SETTLEMENT PORTIdN OF THE HEALTH INSURANCE RESERVES TO THE NEWLY ESTABUSh1ED ACCOUNT NUMBER SOLELY FOR HEALTH INSURANCE RESERVE FUNt?S FOR VS {PER THE ACi'UARI~. Entry Total: 33,286,984.24 33,286,994.24

Entry Number: 0001 D RECLASS HEALTH RES INTEREST Entry Date: 6/3Ql2004 Year-Prd.: 2044-12 Gl-GJ 6/30/2004 GJE 4A3-14 RET4RE HEALTH GENE RES(NT BOR 4062-0001 337,468.$2 GL-GJ 6130!2004 GJE 443-1d RETIRE HEALTH SENE RES !NT VS 4462-1400 337,468.82 Comment: Tq RECORD THE ADJUSTMENT TQ THE RETIRE HEALTH BENEFIT RESERVES INTEREST BOR TO CORRECTLY APPORTION }NTERES7 FROM DEC 24g3 TO THE RETfRE HEALTH BENEFIT RESERVES VS (U~NTURA SETTt~MENT}, Entry Totai: 337,468.82 337,468.82 5 entry Number: OC+tl17 R~CL,4S9 POD GON7RI6 Jl1NE 2004 Entry Date: B/30/2004 Year-Frd.: 200412 GL-GJ 6!3012004 GJE 443-1 Z ER Ct~NTRfB T2CVQ GEN- C!S 4021-0500 147,188,809.51 51,932,937.85 Gl-GJ 6/3012004 GJE 443-11 ER CONTRiB RCVD COL 4051-12p0 8,284,555.11 GL-GJ 6130/2004 GJE 443-17 ER CC~NTRi~ RCVD SUPPBEN 4053 8,682,24Q.54 GL-GJ 6/30/2004 G3E 4~3-11 ER CONTRIB RCVD HLTH BEN (BOR) 4062 4,342,422.74 G~-GJ 6/30/2004 GJE 443-11 ER GONTRIB RCVO HLTH BEN (VS) 4Q63 22,406,?08.58 6l30I20o4 GJE 443-11 ER CONTRIB RCVD SAFSUPPANNUITY A025-0250 GL-GJ 52,039,944.69 Gl.-GJ 6/3Q120D4 GJE 443-1 T ER CDNTRfB RCVD GENSUPPANNUtTY 4d24Q24U 69,981,363.44 GL-GJ 6/34/2004 GJE 443-11 ER CONTRIB RCVD SAFE - CiS 4022-0600 69,981,363.44 GL-GJ 6/30/2Q04 GJE d43-i 1 ER CONTRlB RCVb GEi~15UPPANNUITY 4024-0240 Comment: TO RECORD "~H~ PROPER ALLOCATION of Pd8 FUNDS PER ACTUARY EMAIL ON 8!09/2004. Entry Totat: 21T,17Q,172.95 247,170,172.96 _.,: FRESNO couNTv EMPLovEEs~ RETtREMENr assoc~AT1aN ~=~~ Lam"~1 IAL~ DATE COMMENTS 4N1 f

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G`~i~~~U~~G~~ ~. ~ t~'lJ 33.3`x% 4~ 342 ~ t~22•'73755 t ~z, ~- June 30. 2004

119,!72.741.93 236 H75 808.61

6F.298Sa6271 ~ i31,~98 348 2 .' '. SS,738,6(529

l7A.fi76,I81,64

t~ 4~ ~ ~ ~ ~ TOTAL NET ASSETS AYA[LABLE POR $SSlSF7T5 ~ ~ p,550.639.9R7.i4)~ ~ (276.875.808.fi1)~ ~ C451.L89,498.60I~ ~ 10T,993,351.90 , ~ fS40.a71.94931}~ ~ O.W ~ ~ ( ~ ____.____._-._ J ~"_ I 9_~.r

rva {BOR)acxt # 3061. FCERA aplk the HeaRh Sane(it Reserve at 6l3o/aoo4, ing acd# 3664 Retiree HeaHh Benefit Reserve (Section 9 VSj. POB alboatlons made in aa»rdanca with the percentage splH allocated to the new Reserve.

(compam to IY,

wouns)SsmnoFn~- cccounuminus ~

GUatiremartt\SharedlRETIRMNTACC'f~INSTMTSWUNE' 041Reserve Schedule(DETLEdEN) with POB Transtere to HB Reserve 2004 1 W9/20141:13 PM Page 1 of2

Avalos, Elizabeth

From: Van Wyk, Becky Sent: Tuesday, October 28, 2Q14 9:28 AM To: Avalos, Elizabeth Subject: PRA - FW: Health Benefit 2 reserve Attachments: 20060519 Special Agenda Minutes.doc; 20060814 Reserve transfers.pdf

Please call (559.457.0681} or email me if you have further questions.

Sincerely,

Secky Van Wyk, CPA Interim Retirement Administrator Fresno County Employees' Retirement Association 1111 H Street Fresno, CA 93721

From: Van Wyk, Becky Sent: Tuesday, October 28, 2014 9:27 AM To: '[email protected]' Subject: RE: Health Benefit 2 reserve

~.es, Attached are the minutes from the 5119106 meeting on this topic. The oration is on page 4. Also attached is the email from Ira with the estimated amount. The actual amount available was determined when the journal entries were recorded into the accounting system.

Please ca11 (559.457.0681) or email me if you have further questions.

Sincerely,

Becky Van Wyk, CPA Interim Retirement Administrator Fresno County Employees' Retirement R,ssociation 1111 H 5fireet Fresno, CA 93721

From: [email protected] [mailto:[email protected]] Sent: Monday, October 27, 2014 6:17 PM To: Van Wyk, Becky Subject: Re: Health Benefit 2 reserve

Hello Becky, Thank you for the spread sheet.

10/28/2014 Page 2 of2

My files include the $5.0 million transfer to the Supplemental COLA (Loss of Purchasing Power} for retirees and the $3.956 million transfer to the Temporary Annuity Option COLA for retirees.

f do not have any info on the $5.167 transfer. Please provide whatever info, discussion and minutes, etc., you have on this Board approval. Thanks.

Les

In a message dated 10/27/2014 4:35:41 P.M. Pacific Daylight Time, [email protected] writes: Les, have attached the schedule we prepared to track the error and correction. Please note that the bracketed amounts are actually money in the fund. The second column is the original reserve balance including the $8.6 million posted in error and the earnings on that amount. The third column is the balance after the error and interest are reversed. The Health Benefit 2 payout is about $6.2 million per month.

Please call (559.457.0681) or email me if you have further questions.

Sincerely,

Becky Van Wyk, CPA Interim Retirement Administrator Fresno County Employees' Retirement Association 1111 H Street Fresno, CA 93721

10/28/2014 Avalos, Elizabeth from: Van Wyk, Becky Sent: Tuesday, October 28, 2014 9:27 AM To: Avalos, Elizabeth Subject: PRA FW: Heaith Benefit 2 reserve

Attachments: INTEREST RECALCULATION OF HB RESERVE (VS).xls

Please call (559.457.0681) ar email me if you have further questions.

Sincerely,

Becky Van Wyk, CPA {nterim Retirement Administrator Fresno County Employees' Retirement Association 1111 H Street Fresno, CA 93721

t~~om: Van Wyk, Becky Sent: Monday, October 27, 2014 4:36 PM To:'[email protected]' Subject: Health Benefit 2 reserve

Les, i have attached the schedule we prepared to track the error and correction. Please note that the bracketed amounts are actually money in the fund. The second column is the original reserve balance including the $8.6 million posted in error and the earnings on that amount. The third column is the balance after the error and interest are reversed. The Health Benefit 2 payout is about $6.2 million per month.

___~ INTEREST ~LCULATION OF H

Please call (559.457.0681) or email me if you have further questions.

Sincerely,

Becky Van Wyk, CPA Interim Retirement Administrator Fresno County Employees' Retirement Association 1111 H Street Fresno, CA 93721 l~~lo~. Elizabeth

~~~sr~: van Wyk, Becky on behalf of FCERAwebmail ~~nt: Monday, October 27, 2014 8:07 AM To: 'Hank Retford'; Avalos, Elizabeth Subiect: PRA - Your letter of 1 0/2312 0 1 4 non-vested health benefi#

Dear Mr. Retforct, Thank you for the email. FCERA's policy is to not have mail forwarded to subsequent addresses. Letters that contain personal information or information specific to the __ ~~i~nt is mailed usina first class bostaae. That wav, FCERA is assured that your N~rsonal in=ormazion is not received by someone else. however, bulk letters that do not ~untaiii personal inrarmation or information that is specific to the recipient is mailed in this fashion, yes, as a way to save money for the system.

{559.QJ7.~6R 1 ~ pr Am~il mA i f ~rnn... t;~~rr~ f~~rt'_n_Ar rn~octi,nT-,c Please C~l~ S i...... ,_ ~_ __" "

-Becky Van Wyk, CPA Interim Retirement Administrator Fresno County Employees' Retirement Association 1l 11 H ~trr~Pt Fresno, CA 93721

-----Qriginal Messa e----,. M ~~, From: Hank Retford ~ ~ ~7 ~;. Sent: Saturday, October 25, 20].4 2:50 ~PM To: FCERAwe}~mail Subject: Your letter of 10123/2014 non-vested health benefit

Attention: Ms. Becky Van Wyk, Interim Retirement Adm.

Ms. Van Wyk;

I wonder why you would address subject letter to "CURRENT RESIDENT" as an alternative delivery. Is it a way to avoid paying for returned letters? I think it is personal business and since it is addressed to me personally it should not be read by a second unknown party. I hope you can find a more appropriate way to address letters to Fresno County retirees. Thant yca.

Hank Retford {only, please}