2018-05-09PENSION COMMITTEE MEETING MINUTES
MAY 9, 2018
0 Quarter Review
Attendees: Pension Committee members: Jack Healy, Gail Erickson, Denise Parsons, Kevin
Delaney; Union representative: Paula Poplawksi (White Collar), Billy DeBlasio (Blue Collar),
Kate Wall (Top Managers), Debbie Dennis (Mid Managers); Mark LeShawn (ICMA), Tyler
Polk (FIA)
Absent: Patty Murphy (Nursing), Tammy Wright (Dispatchers), Ryan Gould (Police)
I. Kevin Delaney called the meeting to order at 10:05am.
IL Kate Wall moved to approve the minutes from the February 2, 2018 meeting. Billy
DeBlasio seconded and the motion was approved unanimously.
111. Mark LeShawn (New England Regional Manager for ICMA-RC) provided an overview
of the ICMA-RC Visual Analytics tool for plan sponsors. The tool provides interactive
data for ongoing management of the plan. Mark focused on the 457 plan because it's a
voluntary plan and easier to see the characteristics of the tool. He utilized data from
January 2013 through April 2018. The review included: average balances (a good
measure of education that participants receive), characteristics by age groupings (50-59 &
60-69 are the largest groups in the plan and that is consistent with other municipal
employers), asset allocation (showing a good mix which reflects good practice and
successful education).
The data shows that younger age groups have migrated towards target date funds. This is
consistent with investment decisions that ICMA-RC is seeing the marketplace. The tool
also shows ways participants interact with ICMA-RC (contact center, mobile, self-service
line and account access (computer)). Finally, Mark reviewed annualized returns for all of
the Town's plan offerings: 5.1%-8.2%. The Town Manager's plan had the lowest return
and the highest return was in the Robert Wolf & IRA plans.
IV. Tyler Polk reviewed the annual fee disclosure. The Town completed a fee project a year
ago, and changes were made at that time to lower participant fees. The plan utilizes an
asset-based fee structure. When benchmarked against other institutional plans, the
Town's plans are at or below average for both investment expense and recordkeeping.
Tyler mentioned that some plans are moving to a per participant fee structure. That
structure benefits plans with established participants who have larger balances, but
charges more than an asset-based structure for new participants with lower balances. The
argument against this approach is that those with large balances had smaller balances at
one time. The Town will continue to monitor the fee structure, but no change will be
made at this time.
V. Tyler provided a review capital market performance over the recently completed quarter.
There is fair amount of market volatility which is reflected in market performance. Tyler
pointed out that YTD April average daily returns for the S&P 500 are more consistent
with the long-term average than 2017. Recent increases in interest rates have caused the
bond markets to decline. This relationship between interest rates and performance is
consistent with normal bond market results.
VI. Tyler reminded the group that the international fund will change effective May 18, 2018.
Tyler showed performance of both the old & new funds, and FIA continues to
recommend replacing the Harbor International fund.
V11. The Q2 meeting was setup for August 8d' at I Oarn in the "Doc" McIntosh room.
VIII. Paula Poplawski made a motion to adjourn the meeting. Gail Erickson seconded and the
motion was approved unanimously. The meeting adjourned at 11:05am.
Submitted by: Kevin Delaney
'<iCLOVED FOR RECORD, BERLIN TOWN CLERK
0
Kathryn J. Wall
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