HomeMy WebLinkAboutMinutes - Pension Advisory Committee - 01/16/2018Pension Advisory Commi ee (PAC)
Minutes
January 16, 2018
The South Burlington Advisory Commi ee held their quarterly mee ng on Tuesday, January 16, 2018, 2:00 p.m. at CityHall.
Members Present: T. Hubbard, Deputy City Manager; P. Nowak, City Councilor: T. Gregory City Hall/DPW, D. Boyer, PoliceDepartment; D. Kinville, City Clerk
From SEI: P. Blizzard
Minutes and Agenda
Minutes from October 24, 2017 were accepted as presented.There were no changes to the agenda.Donna Kinville was appointed to record minutes
SEI Review of January 16, 2018, Net Performance Report
P. Blizzard reviewed the performance o the Plan through the 4th quarter of the calendar year. Por olio value as ofDecember 31, 2017 was $33,593,062 and the value as of January 15, 2018 was $34.4 million. All categories hadno ceable gains with world equity, core fixed income and developed interna onal equity leading the way.
Capital Market Review
Labor markets have showed strength with a just under 4% unemployment rate
Rest of world reac ng to President Trumps tax plans but watching to see if the market will stabilize
Next shi possible in the por olio might be to do more equi es over fixed income.Should we lower our an cipated rate of return down to 7.0% from 7.25% as the expected 10 year view shows a possiblerate of return of 5.6%. No decision was made to reduce the an cipated rate of return. Update on approved changes to plan The city’s management is recommending that we consider buying out those individuals who le city employment withover $10,000 in their re rement plan. The City currently pays out anything less than $10,000 but the cost of maintainingthe fund of those who have less than $25,000 far outweighs the rate of return on the investments. It is believed thatthere could be around 7 employees that fall in that range. The commi ee agreed unanimously to recommend to thecouncil that any employee who has less than $25,000 in their re rement plan to be contacted to see if they want to bebought out. People’s United, our actuaries, approached the Newport Group about joining their firm and will merge with them onMarch 30, 2018.