MICHAEL A. HERMANSON Tel. (760) Retirement Administrator Fax (760)

Transcription

1 MICHAEL A. HERMANSON Tel. (760) Retirement Administrator Fax (760) KATHLEEN L. KUBLER Clerk of the Board 1221 State Street El Centro, CA BRIEF MINUTES REGULAR MEETING OF THE IMPERIAL COUNTY BOARD OF RETIREMENT December 16, :30 A.M. 940 W. Main Street County Administration Center, Second Floor El Centro, CA OPEN SESSION 1. The meeting was called to order by Vice Chairman Vogel at 8:30 a.m. A. Roll Call: MEMBERS PRESENT: VOGEL, LIZARRAGA, TERRAZAS, JAUREGUI, WILLIAMS, GARCIA, JERNIGAN, RHODES MEMBERS ABSENT: NONE MEMBERS ARRIVING AFTER ROLL CALL: RHODES ALTERNATES PRESENT: BUMGART LEGAL REPRESENTATIVES: Ryan D. Childers, Board Counsel CLERK: Kathleen L. Kubler, Retirement Specialist STAFF: Michael A. Hermanson, Retirement Administrator; Regina Rodrigues, Assistant Retirement Administrator; Scott W. Jarvis, Accountant/Auditor B. Pledge of Allegiance: The Pledge of Allegiance was led by Vice Chairman, Vogel. 2. Discussion of the Agenda: A. Items to be pulled from the Action Calendar: None B. Items to be pulled from the Discussion Calendar: None C. Items to be pulled from the Consent Agenda: None

2 December 16, 2015 BRIEF MINUTES PAGE 2 D. Emergency/Necessity Items to be added: None E. Approval of the Agenda: MOTION by Jauregui, Second by Lizarraga and carried by a unanimous vote of members present, the Board approved the Agenda. F. Approval of the Consent Agenda: MOTION by Jauregui, Second by Bumgart and carried by a unanimous vote of members present, the Board approved the Consent Agenda. 3. Public comments on items that are NOT on the Action or Discussion Calendars. (Public comments on items that are on the Action or Discussion Calendars shall only be made during the Board s discussion of these items): ACTION CALENDAR 4. Approval of the Minutes of the November 16, 2015, adjourned regularly scheduled meeting: MOTION by Jauregui, Second by Lizarraga and carried, with one abstention by Terrazas, due to absence, the board approved the Minutes of the regularly scheduled meeting of November 16, Nomination and Voting of Board Officers for MOTION by Jernigan, Second by Bumgart, and carried by the unanimous vote of members present, the board appointed Karen Vogel as the Retirement Board Chairperson for MOTION by Jernigan, Second by Vogel, and carried by the unanimous vote of members present, the board appointed Thomas Garcia as the Retirement Board Vice- Chairperson for MOTION by Jauregui, Second by Jernigan, and carried by the unanimous vote of members present, the board appointed Patricia Lizarraga as the Retirement Board Secretary for 2016.

3 December 16, 2015 BRIEF MINUTES PAGE 3 6. Presentation by Actuary: The Segal Company: Andy Yeung, Vice President and Actuary: Mr. Yeung presented both reports and discussed the methodology for determining the cost of the plan s benefits and expenses. Board members discussed their concerns with regard to decreased investment returns and the adverse effect on members, as their contribution rates, especially Tier 3 Safety Members, are subjected to a projected increase in next fiscal year. A. Discussion/Action: Approval of the GASB 67 Actuarial Valuation as of June 30, 2015: B. Discussion/Action: Approval of the Annual Actuarial Valuation & Review as of June 30, 2015: MOTION by Jernigan, Second by Terrazas and carried unanimously by members present, the board accepted both the GASB 67 Actuarial Valuation as of June 30, 2015 and the Annual Actuarial Valuation & Review as of June 30, 2015, subject to legal review and recommendation. C. Discussion/Action: Recommendation to the Imperial County Board of Supervisors for adoption of the Employer and Employee Contribution Rates for Fiscal Year July 1, 2016 through June 30, 2017: This item was tabled for Discussion/Action at the January 20, 2016 regular meeting. DISCUSSION CALENDAR 7. Reports/Correspondence/Announcements: A. Retirement Administrator: 1. Investment Graphs: a. Market Value Graph of the Retirement System s Assets for November 30, 2015: Mr. Hermanson reviewed the plan s portfolio performance for the period. He also reported that TimesSquare, T. Rowe Price and BlackRock Russell 1000 managers positions were in transition to the BlackRock Russell 3000, by December 17 th or 18 th, 2015.

4 December 16, 2015 BRIEF MINUTES PAGE 4 b. Book vs. Market Graph compares the Market Value of the system s assets to the Book Value of Assets for November 30, 2015: Mr. Hermanson reviewed the values associated with the plan s portfolio for the month ending November 30, 2015 and asked the Board to reflect on their information preferences for this report going forward, with further discussion at the January 20 th, 2016 Board meeting. 2. ICERS Board Election Update: Mr. Hermanson reviewed the election event calendar indicating that two petitions had been received for active member vacancy and reported the election is proceeding on schedule. Voting is scheduled to take place January 26, State Association of County Retirement Systems (SACRS) 2015 Fall Conference: Mr. Hermanson indicated that he was favorably impressed with the professionalism of the SACRS organization and found the information received at the fall conference to be timely and educational. 4. SACRS District Status/Operation Authority Legislation Proposal: Mr. Hermanson reported on discussions heard at the SACRS Conference Legislative Session. Voting on the subject proposed SACRS sponsored legislation was tabled at the conference until the May 2016 Spring Conference in an effort to afford all participating counties equal opportunity to consider its ramifications. Participants were requested to submit their support or opposition by December 31, The board directed Mr. Hermanson to submit ICERS support of the legislative proposal by December 31, Update on the status of the Domestic Equities transition: Mr. Hermanson advised the board that the transition process has proceeded on schedule. He will submit a report for the January 20 th board meeting that will detail the costs and fees. 6. Update on the status of the Internal Revenue Service (IRS) Determination Letter renewal: Mr. Hermanson indicated that he had completed the review of the IRS Determination Letter renewal with outside counsel and stated that the renewal would be filed with the IRS on December 21, 2015.

5 December 16, 2015 BRIEF MINUTES PAGE 5 B. Board Members: State Association of County Retirement Systems (SACRS) 2015 Fall Conference: Board members who attended the conference shared their positive experience, and individually noted their particular sessions favorites. C. ICERS Legal Counsel: 1. Legislative Review: Mr. Childers discussed the legislation signed by the Governor in State Association of County Retirement Systems (SACRS) 2015 Fall Conference: 8. Convene to Closed Session: Mr. Childers also reported a positive experience at the conference and noted several topics discussed during the Attorneys session. MOTION by Jauregui, Second by Garcia and carried by a unanimous vote of members present, the board convened to Closed Session. CLOSED SESSION A. Conference with Legal Counsel Existing Litigation (Government Code (a).) disability retirement applications relating to the following: Angela Moreno Nidia Quidachay Pompeyo Tabarez, Jr. Rosemary Jones Frank Cerda Ann McNay Emma Asuncion Maria Ransdell John A. Higgins Gilbert Ceja Gordon Johnson B. Conference with Legal Counsel Anticipated Litigation (Government Code (c) based on existing facts and circumstances, the board has decided to initiate or is deciding to initiate litigation (1 matter).

6 December 16, 2015 BRIEF MINUTES PAGE 6 OPEN SESSION 9. Announcement of Closed Session Action: The board discussed, but took no action regarding the disability retirement applications of Angela Moreno, Nidia Quidachay, Pompeyo Tabarez, Jr., Rosemary Jones, Frank Cerda, Ann McNay, Emma Asuncion, Maria Ransdell, and John A. Higgins, Gilbert Ceja, and Gordon Johnson. The board took the following action regarding the first matter of anticipated litigation (Government Code (c)) in that the board voted to reject a settlement offer received from Franklin Templeton. The action occurred as follows: MOTION by Williams, Second by Lizarraga and carried by a unanimous vote of members present. The board took the following action regarding the second matter of anticipated litigation (Government Code (c)) in that the board voted to reject a settlement offer received from the County of Imperial regarding a Public Records Act request. The action occurred as follows: MOTION by Jernigan, Second by Bumgart and carried by a roll-call vote (Yes: Vogel, Jauregui, Williams, Garcia, Jernigan, Rhodes, Bumgart; No: Lizarraga; Abstain: Terrazas The board also took the following action regarding the second matter of anticipated litigation (Government Code (c)) in that the board voted to make a counter proposal to the County s settlement offer, and authorized litigation against the County of Imperial if the counter proposal is not accepted by the County. The action occurred as follows: MOTION by Garcia, Second by Jernigan and carried by a roll-call vote (Yes: Vogel, Lizarraga, Jauregui, Williams, Garcia, Jernigan, Rhodes, Bumgart; Abstain: Terrazas) 10. BUDGET: CONSENT AGENDA Approval of the following Budget claims for the fiscal year, to include Board Members in attendance at the 12/16/2015 meeting, an Administrative Budget Expense Summary, and a Treasurer s Cash Account Summary per Govt. Code & 31521: A. Administrative Budget: B. Treasurer s Cash:

7 December 16, 2015 BRIEF MINUTES PAGE Administrative Agenda: A. Enrollment of New Members to ICERS (10): B. Terminations (4): C. Service Retirement: 1. Luis Verdugo Safety Member District Attorney Effective Date: 10/30/ Tania Betancourt General Member/Deferred Superior Court Effective Date: 11/05/ Ramona Magana General Member Social Services Effective Date: 10/30/ Della Miramontes General Member Superior Court Effective Date: 10/31/ Michael Rood General Member/Intersystem County Counsel Effective Date: 09/18/ Maria Ransdell General Member Social Services Effective Date: 08/24/ Kayleen Smith General Member ICERS Effective Date: 10/01/ John Guenther General Member Superior Court Effective Date: 11/12/ Ann Armstrong General Member Social Services Effective Date: 11/13/2015 D. Medical Leave Buyback: Socorro De La Torre General Member Social Services

8 December 16, 2015 BRIEF MINUTES PAGE 8 E. Make-Up Buyback: Olivia Delgado General Member Behavioral Health F. 60% Continuance of Service Retirement Allowance per Govt. Code Section & Death Benefit: 12. Special Training: CALAPRS: Leland Carson General Member Deceased: 10/19/2015 Administrators Roundtable January 22, 2016 Attorneys Roundtable Holiday Inn Burbank-Media Center Administrative Assistants Roundtable Advanced Principles of Pension January 27-29, 2016 Management for Trustees at UCLA UCLA Anderson School of Management Trustees Roundtable February 5, 2016 Benefits Roundtable Holiday Inn Burbank-Media Center Investment Officers Roundtable General Assembly 2016 March 5-8, 2016 Renaissance Indian Wells Resort Accountants Roundtable April 8, 2016 Information Technology Roundtable Holiday Inn Burbank-Media Center Administrative Assistants Roundtable Management Academy: Module 1 April 18-19, 2016 Westin Pasadena Overview Course in Retirement Plan May 6, 2016 Administration Doubletree San Jose, CA Management Academy: Module 2 May 16-18, 2016 Westin Pasadena Communications Roundtable June 9, 2016 Doubletree San Jose, CA Benefits Roundtable June 10, 2016 Trustees Roundtable Doubletree San Jose, CA Investment Officers Roundtable

9 December 16, 2015 BRIEF MINUTES PAGE 9 Special Training: (continued) CALAPRS: (continued) Administrators Roundtable June 24, 2016 Attorneys Roundtable Doubletree San Jose, CA SACRS: SACRS 2016 Spring Conference May 9-13, 2016 The Westin South Coast Plaza OTHER ITEMS 13. Previously Approved Seminars/Conferences (list available in Retirement office). ADJOURNMENT: Meeting was adjourned at 11:40 a.m. to January 20, 2016 at 8:30 a.m. KAREN VOGEL, Vice Chairman PATRICIA LIZARRAGA, Secretary