HomeMy WebLinkAboutDraft Minutes - Pension Advisory Committee - 07/23/2024
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Pension Advisory Committee (PAC)
Quarterly Meeting
Tuesday, July 23, 2024, 2:00 p.m.
City Hall Conference Room 301, 180 Market Street MINUTES
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Attendees: Martha Machar, Steve Locke, Daisy Brayton, Dan Chappell, John Waite,
Maddie Sousa, Spencer Baker, Tim Barrit, Mike Scanlan and .
Absent: Jason Morin and Brad Dattilio
1) Welcome & Introductions – Meeting called to order at 2:00 p.m.
2) Additions, deletions, or changes to agenda – None, agenda approved.
3) *** Approve prior meeting minutes from April 23, 2024. – No changes, minutes
approved.
4) *** SEI Review of Q2 Net Performance Report –
Positive across the board. As interest rates reset – positive across the board.
Overall strong investment results. Everything is within target.
John Waite – What does it look like to de-risk the pension fund?
Looking at assets and liabilities, the market value of assets = 43MM, Actuarial
value of asset = $44.2MM and Actuarial Accrued Liability = $50.5MM. The
valuation rate = 7.25% Liabilities are estimated growth at 3.4% and benefit
payments/assets at 6.6%. It is premature to look at de-risking the plan. We are
not completely out of line, we don’t want to seek more risk.
Current portfolio has a total return enhancement at 68. Equity is very well
diversified. He is very comfortable with our current portfolio. Current portfolio
expected short term return distribution is at 7.1%.
Market value projections in the next 10 years, current portfolio = $63.9MM.
His recommendation would be to stay the course. The committee agreed.
De-risking potential – consider funding policy, assume fund maintains current
return/risk level in the short term and as fund approaches 100% we will want to
talk more about how to de-risk the plan.
Public Plan de-risking – once we get to 100% funded, we will want to consider
portfolio A and begin the de-risking process. De-risking will be in small steps.
5) Update on Newport Group joining Ascensus – Erik Schait
Nothing has changed from Newport to Ascensus. No change in anything else.
Martha will get the updated census to Erik in the next few weeks.
6) Other business – no other business.
7) Next scheduled meeting- October 22, 2024, at 2pm.
8) Adjourn – meeting was adjourned at 3:20 p.m.