HomeMy WebLinkAboutMinutes - Pension Advisory Committee - 07/11/2023
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Pension Advisory Committee (PAC)
Quarterly Meeting
Tuesday, July 11, 2023 | 2:00 p.m.
City Hall Conference Room 301, 180 Market Street
Attend Virtually: https://meet.goto.com/SouthBurlingtonVT/pensionadvisorycommitteemeeting07-11-
2023
You can also dial in using your phone. Access Code: 413-534-901: +1 (408) 650-3123
Minutes
Attendees: Martha Machar, Daisy Brayton, Steve Locke, Dan Chappell, Erik Schait, Tim Barrit, Dan Boyer,
Spencer Baker, Matt Sleeman, Pat Blizzard, John Waite, Brad Datillio, Donna Kinville Absent: Todd
Gregory
1) Welcome & Introductions
2) Appoint member to record minutes – Daisy Brayton
3) Additions, deletions, or changes to agenda - None
4) *** Approve prior meeting minutes from April 25, 2023 PAC Meeting – Meeting minutes were
approved
5) SEI review of Q2 Net Performance Report.
General overview of the investment plan-Dan Cappell
Executive summary – Inflation will trend back and SEI predict 3%.
Portfolio perspectives – Q2 the City of South Burlington Pension Plan generated a positive
balance OF 3.51% YTD return 9.85%. Plans assets were $43M as of June 30, 2023 representing a
$3,151,859 increase.
Market Performance Overview – All markets are positive except for Commodities. U.S. Large Cap
is the outlier at +16.7. Diversification continues to be the best option.
Portfolio Review- Across equities consistent across the board. Overall, well ahead of the
assumption rate.
De-Risking – John Waite
How do we go about de-risking the plan and when do we consider it? We are currently in the mid
80’s of complete 100% funding. His recommendation is we do not look at de-risking the plan. As
the plan approaches 100%, then we will want to focus on what types of returns we want and
reduce our risk.
The de-risking process will take several years and we will want to begin the process several years
before reaching 100%.
Advice Study – John Waite recommendations, add to move to Portfolio A. The Committee voted
to approve moving to Portfolio A.
Plan Overview
Market Value of Assets: $40.2M, Actuarial Value of Assets: $42.7M, Entry Age of Accrued
Liability: $48.6M
6) South Burlington pension plan overview – Erik Schait, Newport Group
Defined Benefit Plan based on services and pay. The return on plan assets does not affect
benefits. The City is responsible to ensuring the funds are available to pay benefit. Plan is closed
to new entrants.
Retirement Benefit Formula – X% of Average Monthly Pay times Total Years of Service
Contribution
7) Other business
8) Next scheduled meeting- October 24, 2023, at 2pm
9) Adjourn
*** Attachments Included